HomeMy WebLinkAbout95-06579
GREENAWALT & COMPANY, P.C.
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C"U'P1ID 'UILIC ACCOUNTANTS
P.O. 80. 6 400 WEST MAIN STREET
MrCHANICSBURO, PrNNSYLVolNlA 17055
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INDEPENDENT AUDITORS' REPORT
Iloard of School Dlrectors
Hechanlcsburg Area School Dlstrlct
Hechanlcsburg, Pennsylvania
We have audlted tho accompanying general purpose financial statements of
Hechanicsburg Area School District as of June 30, 1995, and for the year thon
ended. Theae fLnanclal statements are the responslbil1ty of the District's
management, Our responsibility is to express an opinion on these financial
.t.tement. based on our audlt.
We conducted our audit in accordance with generally accepted auditing
.tandards and Government Auditing Standards issued by the Comptroller General
of the Unlted Statu. Those standards require t:hat we plan and perform the audit
to obtain reasonable assurance about: whether the financial st:atements are free
of ..aterialmilltatement. An audit includes exemining, on a test: basis, evidence
.upporting the amounts and disclosures in the financial statements. An audit
al.o include. as.essing t:h. accounting principles used and significant estimates
made by management, aa w.ll as evaluat:ing t:he overall financial statement
pre.entation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the accompanying general purpose financial stat:ements
pre..nt fairly, in all matsrisl respscts, t:he financial position of Hechanicsburg
Area School Di.trict at: June 30, 1995, t:he results of its operations and t:he
ca.h flows of its Food Service Fund for t:he year then ended, in conformit:y with
.anerally accepted account:ing principles.
Our audit for the year ended June 30, 1995 was conducted for the purpose
of for..ing an opinion on the general purpose financial stat:ement:s of
Hechenicsburg Area School District taken as a whole. The supplementary
information is presented for purposes of additional analysis and is not a
required part of the general purpose fLnancial statements. Such information has
been subjected to the same audit:ing procedures appl1ed in the audit of the
general purpose financial statements and, in our opinion, is fairly stated in
all material respects in relation to the general purpose financial statements
taken as a whole.
In accordance with Government Auditing Standards, we have also issued a
report dated July 20, 1995. on our consideration of Hechanicsburg Area School
District's internal control structure and a report dat:ed July 20, 1995, on its
complianca with laws and regulationa.
~4~.fJ.t,
GREENAWALT & COHPANY, P.t (J
Hechanicsburg, Pennsylvania
July 20, 1995
. 1 -
MltoIlIElI- AM1!lICAN INSTI1UT1lOF cERnmo PUBLIC ACCOUNTANTS - PENNSYLVANIA INSTITUTl!OP C1!Rl1F1ll0 PUBLIC ACCOUNTANTS
MECHANICS BURG AREA SCHOOL DISTRICT
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT CROUPS
JUNE 30, 1995
Governmental Fund 'rvnes
Athletic Capital
General Association Construc.tion Re..rve
Aa.et.
Ca.h and ca.h equivalents $ 1,820,522 $ 5,128 $ 1,069 $
Inve.l:lIent. , at cost 2,704,292 2,845,591 661,485
Due from other funds 82,877
Account. receivable 234,728 6,687 2,929
Delinquent taxes receivable
(net of allowance for
uncollectible. , $ 235,572) 293,200
Invantory
Property, plant and equipment
Amount to be provided for
long- term debt
Total $ 5.135.619 $ 5.128 $ 2.853.347 $ 664.414
Liabilitie.
Accrued .alarie. and
benafit. $ 1,294,096 $ $ $
Account. payable 245,439 302,881 15,951
Deferred revenue 219,800
Due to other fund.
Due to .tudent organizations
Bond. payable
Compen.ated absences 28.059
Total liabilities 1. 787.394 -0- 302.881 15.951
Fund equity
Inve.ted in general fixed
a..et.
Ret.ined e.rnings
Fund balance. 3.348.225 5.128 2.550.466 648.463
Total fund equity 3.348.225 5.128 2.550.466 648.463
Total $ 5.135.619 $ 5.128 $ 2.853.347 $ 664.414
The .ccompanying notes are an integral part of these financial statements.
- 2 -
Proprietary
Fund TVDe
Food
Service
Fiduciarv Fund ~vnes
Trust snd
A,encv Activities
Account GrOUDS
General General Long-
Flxed Assets ~rm Debt
$
91,332 $
$
189,914 $
49,523
$
3,213
31,830
44,386 17,126,538
19.701. 920
$ 170.761 $ -0- $ 239.437 $ 17.126.538 $ 19.701.920
$
$
$
$
$
26,274
82.877
239,437
11,255,818
8.446.102
18.123
127.274
-0-
239.437
-0-
19.701.920
17,126,538
43,487
43.487 -0- -0- 17.126.538 -0.
$ 170.761 $ ..0- $ 239.437 $ 17.126.538 $ 19.701.920
HECHANICSBURG AREA SCHOOL DISTRICT
COHBINED STATEMENT OF REVENUE AND EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1995
Athletic Capital
General Association Construction R...rve
Revenue
Local .ource. $ 16,288,782 $ 91,724 $ 169,309 $ 36,274
State .ourcee 5,960,852
Federal .ourc.. 165,062
Refund of prior year.'
expenditure. 8,224
Incoming tranefers 90.255 30.000
Total revenue 22.513.175 121. 724 169.309 36.274
Expenditures
In.truction 13,305,383
Support .ervice. 6,116,495
Operation of noninstructional
.ervice. 499,072 116,867
Facilitie. acqui.ition,
con.truction and improvement
.ervicee 1,529,189 112,213
Other financing uee. 1,269,349
Tran.fer. to other fund. 175.383
Total expenditures 21.365.682 116.867 1.529.189 112.213
!xce.. (deficiency) of revenue
ovar expanditure. 1,147,493 4,857 (1,359,880) (75.939)
Fund balance, July 1, 1994 2.200.732 271 3.910.346 724.402
Fund balance, June 30, 1995 $ 3.348.225 $ 5.128 $ 2.550.466 $ 648.463
The accompanying note. are an integral part of these financial atatements,
. 3 .
MECHANICS BURG AREA SCHOOL DISTRICT
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1995
General Fund
Variance
Favorable
Actual Bud,et (Unfavorable~
Revenue
Local sources $ 16,288,782 $ 15,979,871 $ 308,911
State sources 5,960,852 5,876,227 84,625
Federal sources 165,062 156,120 8,942
Refund of prior years' expenditures 8,224 -0- 8,224
Incoming transfers 90.255 55.000 35.255
Total revenue 22.513.175 22.067.218 445.957
Expenditures
In.truction 13,305,383 13,926,865 621,482
Support services 6,116,495 6,368,486 251,991
Operation of noninstructional
.ervices 499,072 528,481 29,409
Other financing uses 1,269,349 1,269,658 309
Tran.fers to other funds 175.383 181. 000 5.617
Total expendit\1res 21. 365.682 22.274.490 90B.808
Exce.s of revenue over (under)
expenditures 1,147,493 (207,272) 1,354,765
Fund balance, July 1, 1994 2.200.732 1. 627 . 774 572.958
Fund balance, June 30, 1995 $ 3.348.225 $ 1.420.502 $ 1.927.723
The accompanying notes are an integral part of these financlal statements.
. 4 -
.
Athletic A.sociation
Actual
Budllet
Variance
Favorable
lUnfavorab Ie)
$
91,724 $
44,450 $
47,213
30.000
35.000
15.000)
121 724
79.450
42.273
116,867
79,450
(37,416)
116.867 79.450 137.416)
4,857 -0- 4,857
271 -0- 271
$ 5.128 $ ...0. $ 5.128
o
HECHANICSBURG AREA SCHOOL DISTRICT
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30, 1995
Food
s.rvlce
Operating revenue
Sate.
$
559.776
Operating expen.es
Food and lIilk
Labor
Cuatodian wages
Supplies and services
'epair. and lIaintenance
Employae benefits
Utilities and fuel
Administrative salaries
Depreciation
349,870
307,927
11, 590
17,615
2,710
104,939
50,046
70,460
5.507
"
920.664
Total operating expenses
1360.811)
Operating loss
Nonoperating revenue
State source.
Meal .ubsidies
Social .ecurity and retirement subsidy
Federal sources
Meal subsidies
Government commodities
Interest eamed
Total nonoperating revenue
25,263
15,118
125,316
57.589
8.969
232.255
Lo.s before transfers
Services contributed by General Fund
Equip.ent purcha.e. by Capital Reserve Fund
(128,633)
145,383
12.403
29,153
14.334
Net inco.e
Fund balance/retained earnings, July 1, 1994
$
43.487
Fund balance/retained earnlngs, June 30, 1995
The accompanying notes are an integral part of the.e financial .tatements.
. 5 .
HECHANICSBURC AREA SCHOOL DISTRICT
STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30, 1995
N.t ca.h used ln operatlng actlvltles
Food
S.rvlce
$ (360.888)
5.507
57,589
145 , 383
19.793
4,651
(11,147)
(1,290)
9,390
(4,930)
1.106
l134.8!6)
165.691
8.969
39.831
51.501
$ 91.332
Operatlng actlvltles
Operatlng 10..
Adju.t..nt. to reconcl1e operatlng loss to net
ca.h u..d ln operatlng actlvltles
D.predatlon
Donated commodltles consumed
S.rvlc.. contrlbuted by General Fund
Decr.... (lncrease) ln
Accounts recelvabl.,
Inventory
Increa.e (decrease) ln
Accrued salarles and benefits
Accounta payable
Due to other funds
D.ferred revenue
Compensated absen~es
Noncapltal financing actlvltles
Subddles
lov.atins actlvities
Earninsa on lnvestments
N.t lncr.aae ln cash and cssh equlvalenta
Caah and cash equivalents, beglnnlng
Ca.h and caah equlvalents, endlng
The accompanylng notes are an lntegral part of these flnancial statements.
.6.
MECllANICSBURG AREA SCllOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
1. Reporting entity
Mechanicsburg Area School District is the level of government which has oversight
responsibility and control over activities related to public school education.
The report includes services provided by the District to residents within its
boundaries: the Cumberland County communities of Upper Allen Township,
Shiremanstown and Mechanicsburg Borough. 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, stste and federal sources and must comply with the requirements of these
funding sources.
Criteria established in Governmental Accounting Standards Board Statement Number
14 were used in determining the lntities to be included in the reporting entity.
These criteria include basic items such as financial interdependency, selection
of governing authority, designation of management, ability to significantly
influence operations, accountability for fiscal matters, scope of public service
and specisl financing relationships. All operations of the District are included
in the reporting entity. There are no other component unite that meet the..
criteria for inclusion in the reporting entity.
2. Summary of significant accounting policies
The accounts of Mechanicsburg Area School District are maintained on the basis
of accounting practicea prescribed or permitted by the Manual of Accounting and
Related Financial Procedures for Pennsylvania School Systems, issued by the
Pennsylvania Department of Education in accordance with the provisions of the
School Laws of Pennsylvania. These practices, as applied by the District, are in
conformity with generally accepted accounting principles. A summary of the more
significant accounting policies is as follows:
Fund accounting
The accounts of the District are organized on the basis of fund types and account
groups. Each fund type may consist of several different funds. Each fund is a
aeparate entity accounted for by a separate set of self-balancing accounts which
comprise its assets, liabilities, fund balance, revenues and expenditures.
The fund types and the account groups utilized by Mechanicsburg Area School
District are as foll\llJs:
Governmental Fund 'ryoes - These are the funds through which most
governmental functions ere furnished. The funds included in this
category are:
General Fund . The General Fund is used to account for all
financial resources except those required to be accounted for
in another fund.
Construction Funds . The Construction Funds are used to account
for the proceeds of bond issues and their corresponding
expenditures. The fund balances at June 30, 1995 will be used
for capital improvements.
- 7 -
HECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
2. Summary of significant accounting policies (Cont'd.)
Baais of accounting
The District uses the accrual method of accounting for transactions. Revenues
are recolnized when they are earned, measurable and available to financa current
expenditures. Expenditures are generally recognized when the liability is
incurred. Exceptions to this general rule include: (1) inventoriea of materials
and supplies received in advance of the budget year authorizing such purchases
are not accrued, and (2) interest on general long-term debt which is recognized
when due. Expenditures which may benefit future periods (prepeid expenses) are
charged to expense wh~n paid.
Budgets
The District adopts, prior to the beginning of each fiscal year, an annual budlet
for the General Fund and Athletic Fund. A part of this budget process is the
adoption of local tax rates, subject to various legal restrictions. The District
approves subsequent budget revisions (primsrily transfers between expenditure
categories), as necessary.
Revenue - Local sources
Real estate, residence and occupation taxes are levied as of July 1 with a lelal,
enforceable cle!m against the taxpayer and/or property. These taxes are
recognizable as current revenue when received by the District during the fiscel
year snd alao eatimated to be received by the District within sixty days after
the close of the fiscal year.
TholS currently levied taxes which are not estimated to be rece1ved by the
District within sixty days after the close of the current fiscal year ere recorded
aa deferred revenue.
An allowance for. uncollectibles is recorded for taxes levied for the current
fiscal year and deemed to be of doubtful collection in the current and aubaequent
fiscal years.
Property, plant and equipment
Property, plant and equipment are recorded in the General Fixed Assets Group of
Accounts at estimated historical cost.
- 9 -
o
HECHANICSBURC AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
2. Summary of significant accounting policies (Cont'd.)
Accumulated sick and vacation leave
Sick leave is granted as appropriate, and
Provision is msde annually in the budget for
There is limited payment for accumulated sick
The gross amount of uncompensated abaences is
Debt group of accounts, Ceneral Fund and Food
Unused vacation leave is minimal.
medical evidence may be required.
the cost of substitute personnel.
leave at the time of retirement.
recorded in the Ceneral Long-Term
Service Fund (See Note 11).
Food Service Fund
The Food Ssrvice Fund is accounted for as an enterprise fund and usea the full
accrual basis of accounting. Equipment is recorded in the Food Service Fund and
is depreciated using the straighe-Une method. Donaeed cOllU1lodieies are
inveneoried ee case figures provided by ehe Federal government when received.
Ueilieies, salaries, eec. paid by ehe Ceneral Fund for ehe benefiC of ehe Food
Service Fund amounc1ng co $ 145,383 have been refleceed on ehe rupeceive
seeeemenes of revenue and expenditures for th6 year ended June 30, 1995, baaed
on managemene's eseimaees. The Districe does not attempt to allocate all costs
which benefic the Food Service Fund due to the difficulties associated with the
measurement of such benefits.
Hateriels and supplies
Ceneral Fund materials and suppUes are expensed as paid. Food Service Fund
materiala and supplies are expensed as used. Food Service Fund inventories at
June 30 are reflected on the balance sheet at cost, first-in, first-out method.
3. Cssh and temporary investments
Cash and cash equivalents at June 30, 1995 are categorized as follows:
Carrying Bank
Value Balance
Cash on hand $ 60 $ -0-
Insured 100,000 100,000
Collateral held in Distrlct's name -0- -0-
Collateral not held in District's name 41. 354 263.747
141,414 363,747
Pooled investment (treasury management account) 1.966.551 1. 966.551
$ 2.101.965 $ 2.330.298
- 10 -
MECHANICS8URG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
6. Property, plant and equipment
The schedule below presents estimated h1storlcal cost of property, plant and
equipment. These amounts were obtained, in the most part, from a valuation report
prepared as of June 30, 1994. !t includes equipment held in the Food Service
Fund.
Land
Land improvements
Buildings
Equipment
$ 400,963
1,059,340
10,479,168
5.262.98~
$ 17.202.456
7. Long-term debt
A summsry of changes 1n general long-term debt for the year ended June 30, 1995
is as follows:
8eRtnninJ Additions Payments Endin,
General Obligation
Bonds:
Serles of 1992 $ 7,664,791 $ -0- $ 923,973 $ 6,740,818
Serles of 1993 4.515.000 -0- -0- 4.515.000
$ 12.179.791 $ ..0.. $ 923.973 $ 11.255.818
The Serles of 1993 General Obligation Bonds are due semi-annually throuah
September 1, 2009, and have an average coupon rate of 4.8581. The Serles of 1992
General Obligation Bonds are due semi-annually through September I, 2005, and have
an average coupon rate of 6.231.
Maturities due in future years are as follows:
Xul:
General
Obligation
Bonds
1995-96
1996-97
1997-9B
1998-99
1999-2000
2000-2010
$ 1,088,500
1,021,328
974,661
933,910
899,460
6.337.959
Totals
$ 11.255.818
- 12 -
HECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEHENTS (Cont'd.)
JUNE 30, 1995
7. Long-term debt (Cont'd.)
Future debt service requirements are as follows:
:xut
Totals
$ 1,476,451
1,449,623
1,446,888
1,448,243
1,448,738
10.348.069
$ 17.618.012
1995.96
1996-97
1997.98
1998-99
1999-2000
2000-2010
In Jenuary of 1992, the general obligation bonds, Seriea of 1992, were issued for
the refunding of the principal amount of $ 6,055,000 remaining on the general
obligetion bonds, Series of 1980, 1987 and 1989 and certain building renovations.
Debt service for the now Series, which includes approximately $ 1,500,000 of new
capital funds, is $ 12,775,000. Remaining debt service on the defeased Series
1980, 1987 and 1989 was $ 8.956,248. The estimated economic gain from the
defeasance of the three Series was $ 53,483.
In September of 1993. the general obligation bonds totaling $ 4,515,000 ware
issued for the purpose of funding certain capital improvements. The net proceeds
of $ 4,398,055 is being accounted for in the Construction Fund of the Dietrict.
8. Contribution to Food Service Fund
.Contribution to Food Service Fund" for the year ended June 30, 1995 includ.. the
following estimated expenses charged to the Food Service Fund and paid through
the General Fund:
Cus todian wages
Hauling and cleaning
Employee benefits
Utilities and fuel
Administrative salaries
Social security subsidy
$
11 , 590
7,058
9,755
49,659
70,460
(3.139)
$ 145.383
. 13 .
HECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
9. Inter.fund trensfers
The combined statement of revenue and expenditures for the year ended June 30,
1995 includes the following inter- fund transfers and contributions from the
General Fund to the Food Service Fund and Athletic Association which are recorded
in the General Fund as budgetary expenditures:
Food services
Student activities (Athletic Association)
$
145,383
30,000
10. Inventory
Inventory, stated at cost, at June 30, 1995 in the Food Service Fund consists of
the following:
Purchased food
Donated food
SuppUes
$
2,152
26,274
3.404
$ 31. 830
11. Compansated absences
The Ganeral Long-Term Debt group of accounts includes a liability of $ 8,446,102
which represents the gross amount of compensated absences, primarily sick l.av.,
which would be payable to all District employees if they were to us. this
accumulated leave prior to retirement. It was calculated by multiplying .ach
employee's accumulated leave time by their per diem rate. If an employee r.tir.s
with unused compensated absences, the payout policy is as follows:
Emarg.ncy and personal
No payout.
Vacation (Administrative personnel)
Paid at per diem rate.
Sickne..
Paid at the per diem rate paid to a substitute
teacher at time of retirement, based on a formula
involving a percentage of accumulated sick days
and years of service. The maximum is 50t of
accumulated sick days after 20 years of service.
. 14 -
HECHANICSBURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
11. Compensated absences (Cont'd.)
Historically, significant uncompensated absencss have been accrued at employee.'
retirements and have been satisfied at a rate substantially lower than the
calculation referred to in arriving at the liability recorded on the balance
sheet. While no percentsges are available to determine this difference, it i.
anticipated that the ultimate liability of the District for these uncompen.ated
.b.ence. will be materially less than $ 8,446,102. They are, of course,
liquidated through General Fund expenditures in the year the absence i. taken or
the employee retires.
The District has also r.ecorded liabilities for compensated absences in the General
Fund and Food Service Fund as follows:
General Fund
Unpaid aick leave and early retirement bonuses are accrued for
employees retiring prior to July 1, 1995.
Food Service Fund
Accrued sink leave has been recorded for all Food Service Fund
employees at J~ne 30, 1995.
12. Contingent liabilities
The District is contingently liable for outstanding lease rental debt of the
Harrisburg Area Community College.
The District's contract with its teaching staff expires June 30, 1997.
13. Pension plan
All Hechanicsburg Area School District full-time employees participate in The
Public School Employees' Retirement System of Pennsylvania ("System"), a co.t.
sharing, multiple-employer public employee retirement system.
All District full. time employees are eligible to participate in the Sy.tem.
Employees who retire at age 62, or age 60 with 30 years of service, or with 35
years of service rolgardless of age, are entitled to a retirement benefit, payable
monthly for life, equal to 2' of their final average salary time. years of
service. Benefits vest on reaching 10 years of service. The System al.o provide.
for early retirement at age 55 and for death and disability benefits. Effective
July 1992, health insurance premium assietance of $ 55 per month is provided for
retirees receiving a disability benefit or credited with at least 24.5 ye.rs of
service.
- 15 .
MECHANICS8URG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEMENTS (Cont'd.)
JUNE 30, 1995
13. Pension plen (Cont'd.)
Covered employees sre required by Stste statute to contribute a percentage of
their salary to the plan. Thie percentage is 5.25' for employees hired on or
before July 22, 1983, and 6.25' for employees hirer! after that: date. The
District's and the Commonwealth's percentages sre equsl at 5.53' for the year
ended June 30, 1995. The District's contribution for the year was $ 758,856. The
accrued retirement at June 30, 1995, based on the July and Auguat payout of
teachars' contracts, was calculated at the rate of 11.72' which is the rate in
effect for 1995-1996. From July I, 1995, the District will pay the gross
retirement contribution, and will be reimbursed by the Commonwealth for its share
in tha form of a subsidy.
The pension benefit obligation, which is the actuarial present value of credited
projected benefits, is a standardized disclosure measure of the present value of
penaion benefits, adjusted for the effects of projected salary increases and any
step-rate benefits, estimated to be payable in the future as a result of employe
service to date. The measure is intended to help users assess the retirement
system's funding status on a going-concern basis, assess progress made in
eccumulating suffici.nt assets to pay benefits when due, and make comparisons
8III0ng public employe retirement systems and among employers. As of June 3D,
1993, the most recent actuarial valuatIon date, PSER' s total pension benefit
obligation, as calculated in accordance with GAS8 Statement No.5, totalled
$ 23.86 billion. Net assets available for benefits as of the same date totalled
$ 21.72 billion. The unfunded pension obligation under GASB Statement No.5
totalled $ 2.14 billion.
Total contributions to the Syatem from all participating employers for the fiscal
years ended June 3D, 1994 and 1993 were $ 0.93 billion and $ 0.97 billion,
respectively.
Ten-year historical trend information showing the System's progress in
accumulating auffic1ent assets to pay benefits when due is presented in the
System's Comprehensive Annual Financial Report.
14. Other post-employment retirement benefits
The District does not offer any post-employment benefits to retired employa..
other than pension benefits as discussed in Note 13. The District will, howevar,
allow retired employees to remain in its group medical insurance plan upon pa)'lllent
by the retired employee of the cost of such coverage. In addition, an early
retirement bonus of $ 10,000 is available to employees under certain conditions.
This bonus can increase to $ 15,000 if the employee allows the funds to ba
ratained by the District for payment of future medical insurance premiums.
- 16 -
KECHANICSaURG AREA SCHOOL DISTRICT
NOTES TO FINANCIAL STATEKENTS (Cont'd.)
JUNE 30, 1995
15. Rlsk Kanagament
The Dlstrlct ls exposed to varlous rlsks of loss related to torts; theft of,
demage to, end destructlon of assets; errors and omlsslona; lnjurles to employees;
and nstural dlsasters. The Dlstrict malntalns cOl1llllerclal lnsuranca coverage
covedng each of those risks of loss. Kanagement belleves auch coveuge la
sufflclent to preclude eny slgnlflcant unlnsurbd losses to the Dlstrlct. Settled
clalms have not exceeded thls cOl1llllerclal coverage ln any of the past three flacal
years.
16. COllUllltments
At June 30, 1995, the Dlstrlct was commltted to constructlon contracts totallng
approxlmately $ 1,721,000. These emounts wlll be pald from the Constructlon and
Capltal Reserve Funds.
o
. 17 .
.
KECIIANICSBURC AREA SCIIOOL DISTRICT
CENERAL FUND
STATEI1ENT OF REVENUE
YEAR ENDED JUNE 30, 1995
Variance
Favorable
Revenue BudlZ8 t (Unfavorable)
Taxea
Current real estete taxes $ 10,399,353 $ 10,351,716 $ 47,637
Public utility realty tax 199,325 208,150 (8,825)
Current per capita taxeb 76,381 77,670 (1,289)
Current Act 511 taxes 76,381 77 ,670 (1,289)
Occupation privilege taxes 57,816 47,180 10,636
Current occupation caxes 2,421,120 2,501,924 (80,804)
Real eatate transfer taxes 261,739 242,568 19,171
Earned income taxes 1,901,004 1,794,593 106,411
Delinquent taxea, all levies 338.405 290.000 48.405
15.731. 524 15.591.471 140.053
State appropriations
Baalc inatructional sub~~.dy 3,989,689 3,952,937 36,752
Homebound instruction 296 275 21
Vocational education -0- 3,820 (3,820)
Special education 943,584 918,615 24,969
Transportation 190,298 190,000 298
Rentals end Sinking Fund payments 160,5U3 160,580 3
Driver education 6,445 7,000 (555)
Kedical and dental services 10,857 5,500 5,357
Nursing services 69,633 66,500 3,133
Social security 484,949 500,000 (15,051)
Retirement 53,047 -0- 53.047
Extra grants 2,000 58,000 (56,000)
Instructional support teams 29,000 -0- 29,000
Tuition - court placed students 20.471 13.000 7.471
5.960.852 5.876.227 84.625
Federal appropriations
Impacted areas 13,832 5,000 8,832
Disadvantaged children 105,380 115,620 (10,240)
Federal block grants, Chapter II 12,001 13,500 (1,/.99)
Drug free schools 23,935 15 ,000 8,935
EESA, Title II 9.914 7.000 2.914
165.062 156.120 8.942
(Continued)
. 19 -
HECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEKENT OF REVENUE (Cont'd.)
YEAR ENDED JUNE 30, 1995
Variance
Fevoreble
Revenue Bud,et (Unfavorable)
Other
Tuition and other payments
froll patrons $ l4, 350 $ 29,000 $ (14,650)
Earnings from temporary
deposits and investments 4l6,783 245,000 171,783
Student activities 14,l94 l6,300 (2,l06)
Rent from School and other
facUities l3,809 ll,900 l,909
GOllllunity services activities 97,553 85,000 12,553
Hiscellaneous revenue 569 l,200 (631)
Refund of prior years'
expenditures 8,224 -0- 8,224
Transfers from other local
education agencies 90.255 55.000 35.255
655.737 443.400 212.337
Total revenue $ 22.513.175 $ 22.067.218 $ 445.957
See accompanying report on supplementary information.
- 20 .
HECHANICSBURG AREA SCIIO'lL DISTRICT
GENERAL f1JND
STATEMENT OF EXPENDITURES
YEAR ENDED JUNE 30, 1995
Variance
Favorable
EXDenditures BudRet (Unfavorable)
Regular programs
Per.onal services salaries $ 8,159,801 $ 8,308,422 $ 148,621
Per.onal services ,employeu
benefits 1,955,531 2,107,085 151,554
Purchksed professional and
technical services 86,862 93,648 6,786
Other purchased services 60,555 60,946 391
Supplies 381,715 415,746 34.031
Property 35,699 35,750 51
Other objects 30 .477 35.160 4.683
10.710.640 11.056.757 346 . 117
Special programs
Personal services . salaries 944,707 964,168 19,461
Per.onal services . employee benefits 257,118 257,262 144
Purchaaed professional and
technical services 613,539 692,065 78.526
Other purchased services 64,360 79,600 15.240
Supplies 9.681 14.683 5.002
1. 889.405 2.007.778 118.373
Vocational education programs
Other purchased services 202.159 240.600 ]8.441
Other in.tructional programs
Personal services . salaries 131,482 192,133 60.651
Personal services . employee bene fi ts 27,850 47,034 19.184
Purchaaed professional and
technical services 1,991 2,000 9
Supplies 19,464 20,028 564
Property 139 1.500 1.361
180.926 262.695 81.769
Adult educatf.on programs
Personal services salaries 5,320 5,400 80
Per.onal services . employee benefits 743 793 50
6.063, 6.193 130
(Continued)
. 21 .
HECHANICSBURC AREA SCHOOL DISTRICT
CENERAL FUND
STATEMENT OF EXPENDITURES (Cont'd.)
YEAR ENDED JUNE 30, 1995
Exoenditures
Bud,et
Variance
Favorable
(Unfavorable)
Community College education programs
Other purchased services $ 316.190 $ 352.842 $ :)6.652
Support .ervices . Pupil personnel
Paraonal .ervicea . .alaries 624,078 630,933 6,855
Par.onal service. . employee benefits 144,072 161,703 17 ,631
Purchased professional and
technical services 42,562 70,453 27,891
Other purchased services 2,614 2,634 20
Supplies 10,521 13,728 3,207
Other objects 862 950 88
824.709 880.401 55.692
Support services . instructional staff
Per.onal services . salaries 536,695 537,683 988
Per.onal service. . employee benefits 137,233 137,520 287
Purchaaed profe.sional and
technical services 22,535 28,200 5,665
Other purchased serviceli 3,283 3,383 100
Supplies 68,286 68,473 187
Property .0. 13,500 13,500
Other objects 22.272 22.415 143
790.304 811.174 20.870
Support .ervices . administration
Per.onal services . salaries 980,153 984,817 4,664
Peraonal aervices . employee benefits 240,335 255,635 15,300
Purcha.ed professional and
technical services 140,880 156,250 15,370
Purchased property services 22,243 25,200 2,957
Other purchased services 31,050 37,297 6,247
Supplies 23,808 26,106 2,298
Other objects 22.196 24.436 2.240
1. 460.665 1. 509.741 49.076
(Continued)
. 22 .
.
HECHANICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF EXPENDITURES (Cont'd.)
YEAR ENDED JUNE 30, 1995
o
Support services . pupil health
Personal services . salaries $
parsonal services . employee beneflts
Purchased professional and
technical servlces
Othar purchased services
Supplies
Support services . business
Personal aervices . salaries
Personal services . employee benefits
Purchased profesaional and
technical services
Other purchased services
Supplies
Other objects
Operation and maintenance o~
plant services
Personal aarvices . salaries
Personal services . employee benefits
Purchased professional and
technical services
Purchased property services
Other purchased services
Supplies
Property
Other objects
Exoenditures
194,239
46,098
650
623
4.487
246.097
139,271
41,071
18,792
4,974
18,394
4.786
227.288
jlud,et
Variance
Favorable
(Unfavorable)
$
195,012 $ 773
48,397 2,299
1,200 550
815 192
4.861 374
250.285 4.188
139,815 544
41,141 70
18,875 83
7,166 2,192
27,031 8,637
7.700 2.914
241.728 14.440
625,062 634,714 9,652
206,009 206,669 660
347 500 153
483,319 498,524 15,205
62,029 68,773 6,744
391,630 439,613 47,983
15,231 15,300 69
7.774 7.775 1
1. 791. 401 1. 871. 868 80.467
(Continued)
. 23 .
HECI~NICSBURG AREA SCHOOL DISTRICT
GENERAL FUND
STATEMENT OF EXPENDITURES (Cont'd.)
YEAR ENDED JUNE 30, 1995
Vartanca
Favorable
EXDenditures Bud Ile t lUnfavorabl.\
Student transportatlon servlces
Personal servlces . salades $ 14,469 $ 14,554 $ 85
Personal services . employee bene f1 ts 3,159 3,254 95
Other purchaaed servlces 632,261 654,240 21,979
SuppU.. 39,581 42,859 3,278
Property -0- 750 750
689.470 715.657 26.187
Central servlces
SuppUes 2.520 2.550 30
Other support servlces
Other purchased servlce~ 84.041 85.082 1~O41
Student actlvlties
Personal services - salarles 214,336 219,520 5,184
Peraonal servlces . employee beneflts 31,845 37,300 5,455
Purcha.ed professlonal and
technlcal servlces B,lOO 8,100 -0-
Other purchased servlce. 15,750 16,688 938
SuppUe. 38,771 39,278 507
Property 424 2,000 1,576
Other objects 20.887 21.533 646
330.113 344.419 14.306
Community .ervices
Pereonal service. - salades 92,796 98,523 5,727
Per.onal servlces - employee beneflts 16,758 18,531 1,773
Purchased professlonal and
technlcal servlces 43,265 43,404 139
Other purchased servlces 8,977 14,276 5,299
SuppUe. 1,448 3,611 2,163
Other objects 5.715 5.717 2
168.959 184.062 15.103
(Contlnued)
. 24 -
HECHANICS8URG AREA SCHOOL DISTRICT
G.:NERAL FUND
STATEMENT OF EXPENDITURES (Cont'd.)
YEAR ENDED JUNE 30, 1995
Varianca
Favorable
EXDenditures Bud..t IUnfavorabl. )
Dabt ..rvlca
Intareat $ 340,676 $ 340,778 $ 102
land and nota prlnclpa1 923,973 924.180 207
Rafund of prlor year's receipts 4.700 4.700 .0.
1.269.]49 1.269.658 ~O9
Tranafara to othar funds 175.383 181.000 5.617
8udsatary Reaerve -0- -0. .0.
Total expenditures $ 21.]65.682 $ 22.274.490 $ 908.808
Saa accompanylng report on supplementary lnformatlon.
- 25 -
,......,.....
HECHANICSBURG AREA SCHOOL DISTRICT
CONSTRUCTION AND CAPITAL RESERVE FUNDS
STATEMENT OF REVENUE AND EXPENDITURES
YEAR ENDED JUNE 30, 1995
Serles Series Capltal
1993 1992 R...rv.
P.evenue
Inveet.ent lncome $ 165.880 $ 3.429 $ ]6.274
Expendlture.
Cepital expenditures 1,448,044 79,219 112,213
Inve.t.ent fees 1,026 900
Tran.fer to Genersl Fund
Total expenditures 1. 449.070 80.119 112.213
Exce.. of revenue aver
(under) expenditures $ (1. 283 .190) $ (76.690) $ l75.939)
See accompanying report an supplementary information.
. 26 .
'e,
e
KECI\ANICSIlURC AREA SCHOOL DISTRICT
SPECIAL REVENUE FUND . ATHLETIC ASSOCIATION
STATEKENT OF REVENUE AND EXPENDITURES
YEAR ENDED JUNE 30, 1995
Revenue
e Seeeon tlcketa $ 5,855
Football late 27,570
Jr. "lab lete 2,033
Baaketball lata 18,452
Soccer late 2,497
Volleyball late 806
e WraatUnl lete 2,478
Prolrllll ..lea 982
Loat equlpllent 1,646
Dlatrlct III and atate playoffa 24.567
Prolrllll ad. 4,790
"laeellaneoua 48
e Cenual Fund 30.000
Total revenue 121 724
Expendlturea
Football 15,847
. Jr. "lab 13,310
Clda' .porta 21,312
Ba.ketball 5,489
Wr..tUnl 3.599
Swl_lnl 2,999
B..eb.ll 7,745
Soccer 3,713
. Tr.ck and cross country 4.565
Calf and tennh 2.443
Wal.abt rooll 801
Dl.trlct III .nd .t.te playoffs 21,039
State tournament allowance 1,409
. Tralnlnl eupplle. 3.178
Duee, .ubacrlptlona end l1leetlnga 4,276
Furcha.ed .ervlcea 4.455
Klacellaneoua 687
Totel expendltures 116.167
. Exee" of revenue over expendltures $ 4.157
See accoapanylng report on supplementary lnformatlon.
.
. 27 .
.