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Home My WebLink About95-06938 ," " ~ ' t' \, .'i I , , , . , , , , I' "I' , " " , " , ' , I I , , I,' " ,I .' , , , ';t I , , ,j, , " 'I , I I ;1 I I: I, " , ,'j .. I' " Iq , I I, ," , I I', " " " ,it 'I 'I , , , ;1; ,I ," , I, " " " I , I " '1' I, . I ~ i'-.! ' " " "I " " " " " , , " I' " , ." ii' , ' " 'I, , , , I;' j,' , " ,,' , " " , 'I ", , .1 " " , "I' " '! " '\1 I:, I' J/ <'7'1 - u,,r(i8 ."r"._ , . - . .. . . . , "","Iri', .,,,,,,,~,.It,'i"f,Il-I"~""'I"""lIl'"'r1 "IoWlt;l"'....t,...,.'.I,I.'.,llf...."th..,' '"'' ,,'j'~'"'' .,. "" ,L '. ," ,.,,,' , , , , , , , , (l.f.e". (j fCC/faWlllt ~ tOlllpllllU. J~(? " -,,- " ------...-..---+._,.._... ._--,. (",./0~'/ ,':I;#/.(,f' ,CV:,',.,.,,,,':O,/'J CD o " mIX , P..~ NUl1l.b.~ . " 1 Independent auditora' rep~rt combined balance aheet . all fur.d typea and account group a June 30, 1995 2 . combined atatement of revenue, expenditurea and changea in fund balances . All Covernmental Fund Typea . year ended June 30, 1995 3 Statement of revenue, expenditures and changes in fund balances . actual and budget . General and Athletic Funds. year ended June 30. 1995 4 . .5 Statement of revenue, expensss and changes in fund balance/retained earnings ' Food Ser.vice Fund . year ended June 30. 1995 6 Statement of cash flows . Food Service Fund . year ended June 30. 1995 7 8 17 Notea to financial statements' June 30, 1995 GREENAWALT & COMPANY, P.C. C, UW;.ll) 100I." I. ,...UY,*I HOWAlD t. OIlllNAWALT C_L-.. _11I.1,1_1 IClIIlIIl WIIOLII.II, - DIIOlAM', klLLY .. A, DUIN"WALTCI'Mo.tI'. A, ..IIIDCNOP (UTII1DI lJIIIlTl'IID 'UILle ACCOUHTANTS PO Bm e 400 Wu' M"N S,o.... MlcHANlr.aaUfto, Pl:NN..,.I.VANIA 1701515 17171 7iBe 4'13 ,,,,,;171717I1a731 llANCHomC.' IJ ...."o....nlTw' CAUIILI, '" 1"" (mU"...,1 'AlllTl'IU...1TI INDEPENDENT AUDITORS' REPORT Board of School Directors 8ig Spring School District Newville. pennsylvania We have audited th" accompanying genaral.purpose financial statemants of Big Spring School District as of June 30, 1995 and for the year then ended. These general-purpose financial atatem.nts ora the responslbIllty of the DIstrlct's management. Our responslbillty Is to express an opinion on these general.purpose financial statements basad on our audit. We conducted our audit In sccordance with generally accapted auditing standards and Govenunent Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain raasonable assurance about whother the genaral-purpose financial stataments ara free of material misstatement. An audit Includas examining. on a ta.t basis, avldence supporting the amounts and disclosures In tho general- purpoae financial statements. An audit also Includes assessing the accounting principles used and significant estimates Inade by manageml'nt, as wel1 as evaluating the overall general'purpose financial statement pr.santatlon. We bellave that our audit providas a reasonable basis for our opinion. In our opinion, the accompanying general-purposa flnandal statements present falrly. In all material respects, the financial position of Big Spring School District as of June 30. 1995. the results of Its operations and tha cash flows of its Food Servica Fund for the year then ended. in conformity wlt.h genarally accepted accounting principles. As discussl',d In Note 11.. the District changed Its method of accounting for taxpayer-assessed revenues. In accordance with Governmant Auditing Standards, we have also issued reports dated October 13. 1995 on our consideration of 81g Spring School District's internal control structure and on Its compliance with laws and regulations. ~'~/?(!, GREENAWALT 6 COMPANY, P.C. October 13, 1995 Mechenlcsburg, Pennsylvania . I . WIMI_ _ A14aJCAN INITITUTll ". C.......IID PIIIUC AccotOOA!rII - PIIINIYLVA)lIA 1N11TII1I1I Of Cla1lftID ruauc ACCllUNTA!rII '. BIG SPRING SCHOOL DISTRICT COMBINED BALANCE SHEET - ~LL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1995 Go".rnmental Fund TY9.. Capital Capital General Athletlc Reserve Pro1ectR A..eU Cuh $ 90/,,2B5 $ 3,287 $ 102,100 $ 60,030 Investment. . at cost 2,483.516 1,147,9119 Due from otheX' funds 85,914 200,000 Account. recaivable 695,575 Dellnquent taxa. 'receivable (net of $ 225,499 allowance for uncollectlble.) 350.000 Inventories of supplies 50.000 Food service equipment (net of $ l6l.923 accumulated depreciatlon) Land, bul1dings and equipment Amount to be provldad for general long-term debt --- Total $ 4.569.290 $ 3.287 $ 1.450,049 $ 60.030 Liabilities Payroll and benefits payable $ 720,534 $ ~ $ Accounts payable 152,441 22,723 Deferred revenue 328,507 Due to ott>er funds 200,000 57,:,6B Due to student organizatlons General ob1igatlon bonds payable Compensated absence s 'lctal liabilities 1.401.482 -0- 80,191 .0- Fund equi ty Invested in inventories 50,000 Inves,ted in general fixed aueU Fund balances/ retained earnings Ile..rved 60,030 Unreserved 3,117.808 3,287 1. 369.858 Total fund aqui ty 3.167.808 3.2~7 1. 369,858 60,030 Total $ 4.569.290 $ 3.287 $ 1. 4~O. 049 $ 60.030 The accompanying notes are an integral part of the.e financial statament. . - 2 <{) 18, SOO, 000 ..;;1. nO,on 148.147 268.198 -0- ..0- 18. ~oo .000 '.0. ..:;; $- 372 077 $ 29.162 $ 115 269 $ }8. ~oo 000 $ 6 ~]8. 800 () 00 <:I BIG SPRING SCHOOL DISTRICT COHBINED STATEHENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 199~ Capital Capital Geueral Att,18 t ic Re.e~v. Pro'.c~. Revenua Local .ource. ~ 9,131.346 $ 42,793 ~ 7B,373 $ 1,800 St.te .ource. 8,662,642 Feder.l .ource. 304,918 Other finencing .ourae. 1. ~19 266.874 200.000 Total revenue 18.100,42~ 309.667 278,373 1,800 Expendltures In.tructlon 10.786,266 Support .ervlces 5.451,183 72,021 Operation of nonlnstructlonsl .ervices 282,777 310.346 Facl1itles acqulsltlon, constructlon and improvement service. 174. 79~ 1,~00 Other flnanclng USAS 887.807 Tot.l expendltures 17.408,033 310,346 246.B16 1.~00 Exce.s of revenue over (under) expendltures 692,392 (679) 31.~57 300 Fund balances, July 1, 1994 2,425,41~ 3,966 1. 33B, 301 ~9. 730 Fund b.lllnces. June 30, 1995 $ 3.117.808 $ 3.287 $ 1.369.858 $ 60.03q The accompanying note. are an lntegral part of the.a financial atatement.. . 3 . 8IG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND 8ALANCE~ . ACTUAL AND BUDGET GENERAL AND ATHLETIC FUNDS YEAR ENDED JUNE 30, 1995 General Varlance Favorable Actual Budll.et lUnfavorab 1.) Revenue Local Bources $ 9,131,346 $ 8,67B,482 $ 452,B64 State source. 8,662,642 B.574,912 B7,730 Federal sources 304,918 2'72.300 32,618 Other financing sources 1.519 -0- 1.519 Total revenue 18.100.425 17.525.694 574.731 Expendi tures Inetruction Regular programs 8,049,565 8.102.043 52.478 Special programs 2,153,739 2,182,999 29,260 Vocational education programs 307.993 3Bl.221 73.228 Other instructional programs 274.969 285.739 10.770 Adult education programs -0. 1.000 1. 000 Total instruction 10.7B6.266 llL.2 5 3, (J02 166.736 Support services Pupil personnel 455,300 467,223 11.923 Instructional staff 549,lB5 558.154 8,969 Adminiatrat10n l,183,6B6 1,193,19B 9,512 Pupil health 193,300 194,176 876 8us iness 266,BB7 277,517 10,630 Operation and maintenance of plant services 1.579,BB2 1,610.506 30,624 Student transportation aervices 1.180,362 1.193.000 12,638 Central s~rvices 19 I 384 22.205 2,821 Other support services 23,197 23,198 1 Total support services 5,451.183 5.539.177 87,994 ( Continued) ,4- I' Cl) 10 Atbletl.c Variance Favorable Actual Budit8t lUnfavor..ble) $ 42.793 $ 41,000 $ 1.793 266.874 277 ,025 110,151) 309 . 667 31~ .025 18.358) .0. -0- - .0. .0. ..0- ,0- ' BIG SPRING SCHOOL DISTRICT STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES . ACTUAL AND BUDGET GENERAL AND ATHLETIC FUNDS (Cont' d. ) YEAR ENDED JUNE 30, 1995 "'" Gen,ral Variance Favorable Actual Rudist (Unfavorable) Expenditures (Cont'd. ) Operation of noninstructional services Student activities $ 268,172 $ 283,922 $ 15.750 Community services 14.605 15.565 960 Total operation of non. instructional servicee 2B2.7.ll 299,487 16.710 Other financing uses Debt service 613.307 613,307 -0- Fund transfers 274,500 274,500 -0. Budgetary res~rve ..0. 15 , 164 15,164 Total other financ ing uses B87.807 902.971 15.16/, Total expenditures 1.L.!tQ.!l...lli 17.694.637 286.604 Excess of revenue over (under) expenditures 692,392 (168,943) 861,335 Fund balances, July 1, 1994 2.425.416 2.500.000 174.534) Fund balances, June 30, 1995 $ 3 . 117 , 808 $ 2.331.057 $ 786.751 The accompenying notee are an integral part of these financial atatements. I ..:.. . 5 . '. ~thl.t:iQ , Variance Favorable (Unfavorable) Aatual Bud.. t $ 310, 346 $ -0- 318,025 $ ..0.. 7,679 ..0.. 310.346 318.025 7.679 ..0- _-=-2..:. ..0.. 310.346 318.025 7.m (679) -0- (679) 3.966 .0. 3.966 $ 3,287 $ -0. $ 3.281 o o BIG SPRING SCHOOL. DISTRICT STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE/RETAINED EARNINGS FOOD SERVICE FUND ytAR ENDED JUNE 30. 1995 o $ 515.463 Opereting revenue Seles o Operating expenses Selsries snd wages Employee benefits Food snd milk General supplies Repairs and maintenance Utilities and fuel Oepreciation 266,969 110,733 296,764 7,578 12,053 33,000 21. 374 Total operating expenses 748.471 (233 008) Operating 1088 Nonoperatlng revenue State sources Heal suba idies Social security and retirement subsidies Federal sources Heal subsidies Donated commodities Interest ea1'ned 16,764 9.888 \31,867 43,992 2,183 total nonoperating revenue _ 204.694 Loss before transfers (28,314) Fund transfers General Fund contributed services 33 . 000 Net income 4,686 263,512 Fund balance/retained earnings. July 1. 1994 Fund balance/retained earnings. June 30, 1995 $ 268.198 The accompanying not.s are an integral part of these financial seetements. . 6 . <:) o B~G SPRING SCHOOL DISTRICT STATEKENT OF CASH FLOWS FOOD SERVICE FUND YEAR ENDED JUNE 30, 1995 o Operetlng ectlVltle. Operatlng Iou Adjuetment. to reconcile operatlng loas to net ca.h uaed ln operatlng actlvltles Depreciatlon Decrease (lncrsase) ln asaets Due from othsr funds Accounts recelvable Inventories Increase (decrease) ln 11abllltles Payroll and beneflts payable Accounts payable Deferred revenue Due to other funds Compensated absences 2,93~ 10.532 (7,886) (1,172) 427 4,955 28,447 5,813 $ (233,008) 21,374 Net cash used ln operatlng activltlel 1167,5P3) Non capital financlng actlvltles Granta and subsldles State sources Federal eources Fund transfers (General Fund contrlbutad sarvlces) 26,652 175.859 33.000 Net cash provlded by non capltal flnanclng activities 235,511 Inveating activlties Incr.ase ln investments Interest earned (102,183) 2.1B3 Net cash used ln investlng activltle.' _.000.000) . (32,072) Net decrease ln cash Ca.h, July 1, 1994 73,291 Calh. June 30. 1995 I) 41 219 The .ccompanying note. are an lntesraI'part of ,the.e financlal atatement.. . 7 BIG SPRING SCHOOl, DISTRICT NOn:S TO FINANCIAL STATEMENTS JUNE 30, 1995 1. Reporting entity Big Spring School Dlstrict ls the levol of goverrunent which hu oversight responsl.bility and control over activities rolated to publlc school education. The report includes services provided by the District to residents within its boundaries: the Cwnberland County Townshlps of Cooke, Lowar Frankford, Upper Frankford, Lower Mifflin. Upper Mifflin, North Newton, South Newton, Penn and West Pennsboro. and the Borough of Newvllle, Servlces provided include a comprehensive curriculum for primary and secondary education as well as special education and vocational education programs. The Dlstrict receives revenue from local, state and federal sources and must comply with the requirements of these funding sources. ") Criteria established in Goverrunental Acc~utltlng Standards Board Statement Number 14 were used in determining the entities to be included in the reporting entity. These criteria include basic ltems such as flnancial lnterdependency. selection of governing authodty, deslgnation of manllgement, ability to significantly influence operations, accountabl.llty for flscal matters. scope of publlc servico and special fl.nancl,ng relationships. All operations of the District are included in the reporting entlty. There are no component units that meet the above criteria for inclusion in this reporting entity. However. the District is a partlcipant in two jointly-governed operations. each of which is a separote legal entity that offers educational services to tho District and lts residants, Each entity serves several schoo 1 districts. so the following entities are not included in this reporting entity. Capital Area Intermediate Unit provldes special education services and programs, Cumberland-Perry Area Vocational-Technlcal School provides vocational and technical educatlon services and programs. 2. Swnmary of significant accounting pollcles The accounting records of Big Spring School Dlstrlct are maintalned on the basis of accounting practlces prescrlbed or permltted by the Manual of Accounting and Related Financial Procedures for Pennsylvanla School Systems. lssued by the Pennsylvania Department of Education in accordance with the provisions of the School Laws of Pennsylvania. These practlces are in conformity with generally accepted accounting principles as applicable to governmental units, A summary of the more significant accountlng policies ls as follows: Fund accounting The accounting records of the District are organized on the basis of fund types and acc,ount groups, Each fund type may conslst of se,veral different funds. Each fund is a separate entity with self-balanclng accounts which comprise its assets. liabilities, fund balance/retained earnings, revenues and expenditures/expenses as appropria,e. The fund r,ypes and the account groups utilized by Big Spring Schoo 1 District are as follows: - 8 - BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1995 '0 2. Summary of aignificant accounting pollciea (Cont'd.) Fund aocounting (Cont'd.) .. Governmental Fund Tveea . These are the funds through which moat 80vernmental functiona are provided. The acquisltion, use and balances of the Dlatrict' s expendable flnancial resources and the ralated llllbllities (except those accounted for in proprietary funds) are accounted for through governmental funds The messurement focua is upon determination of changes in financial resources, rather than upon net incolne determination. . The General Fund accounts for aIL flnancial resources except those requlred to be accounted for in other funda. The majority of District activitiea, including instruction, administration and other services ere accounted for in this fund. . The Athletic Fund is a special revenue fund that accounts for the revenues and expenditure a for athletic purposes. The Capltal Reserv" Fund was established as part of the District's construction program. These funds are available for renovatlons, lmprovements and equlpment acquisitions. The Capital Projects Fund accounts for bond proceeds and the expenditure of those funds to construct an elementary school. Remaining funds will be available for renovations, improvements and equipment acquisitions. Proerietary Fund Tyees . Proprietary Funds account for operations that are flnanced and operated in a manner similar to private business enterprises. The Food Service Fund accounts for the financlal transactions associated with the operations of the cafeterias. Fiduciary Fund TVDes (Trust end A~encv Funds) . These funds account for assets held in a trustee capacity or as an agent for other funds or entities. The Payroll Fund accounts for salaries earned by District employees. It handles the disburslng of such am')unts to the employees and to taxing and other agencies on their behalf. The Activity Fund accounts for programs operated and sponsored by various clubs and organizations wlthin the schools. They are only and are not Account GrouDs . These account groups are not funds. concerned with the measurement of financial position involved with the measurement of results of operstion. . 9 . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT (Cont'd.) JUNE 30, 1995 2. Summary of significant accounting polic1es (Cont'd.) Fund accounting (Cont'd.) General F1xed Assets accounts for land, build1ngs and eqllipment. General Long.Term Debt accollOts for general obUgation bonds and comp4nsated absencea payable in future Y4ars. Basis of accounting The accounting and f1nanc1al reporting treatment epplied by the different fund types 1s based on the1r measurement focus. wh1ch determines when revenues and expenditures are recognized. Governmental Fund Tvoes . These funds are accQunted for us1ng a "current financial resources" measurement focus (a modified accrual basis of accounting). Revenues are recorded when suscept1ble to accrual (both measurable and aVeilable). Available means col1ected within tho current per10d or soon enough thereafter to pay current 11abilities. Expandi tures are general1y recogn1zed when the related fund l1abili ty is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. Dhbllrsements for inventory type items and prepaid expenses are considered expenditures at the time of purchase. ProDrietarv Fund Tyoes . The Food Service Fund is accounted for using a "flow of economic resources" measurement f.ocus (a full accrual method of accounting)', Donated commodities are inventoried at an estimated value when received. Inventories (valued on the first-in, first.out method) are recorded as an asset, and the port10n represented by donated commodities is recorded as deferred revenue. Food service equipment is capitalized, w1th depreciation (computed on the straight. line method using an est1mated useful life of 12 years) recorded as an operating expense. The equipment (net of accumulated depreciation) is offset by a reserved portion of retained earnings. Compensated absences ar~ recorded ss operating expenses and the cumulative amount is recorded as a l1ability w1thin the Fund. The liability 1& offset by a reduct10n in the reserved portion of retained earnings. - to . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENT (Cont'd.) JUNE 30. 1995 2. Summary of .ignificant accounting policies (Cont'd.) Baaia of accounting (Cont'd.) Fiduciary Fund Tyoee (Trust snd Allency Funds) - These funds are cuatodial in neture (assets equal l1abillties), which doe. not involve lIIeasut'ement. of results of operations. and utillze the modified accrual baais of accounting. Account Groues - Land, buildings and equipment are recorded at cost. Depreciation is not computed on these assets. Long-term debt is offset by an amount to be provided by future taxation or other revenue sources. General obllgation bonds payable in future years are recorded as District debt. Interest on these bonds is recorded when such interest i. due. Compensated absences (those for which e"ployees receive pay) are rllcorded using the terminstion payment method. A liability is rllcorded through the use of estimates which apply historicsl data to current factors. The District maintains records of Ulluaed leave and applies the contracted rate for amployees eligible for termination payments. The District allows only restricted sabbatical leave and therefore has no recorded l1.ability in advance of the sabbatical. Budgets The District adopts. prior to the beginning of each fiscal year. an annual budget for the General Fund and Athletic Fund. A part of this budget process is the adoption of local tax rates. subject to various lega! restrictions. The District approves subsequent budget revisions (primarily transfers between expenditure categories) as necessary. Unused appropriations expire at the end of each year. Revenue . Local aources Real estate. occupation, residence and per capita taxes are levied as of July 1 witb a legal. ellforceable claim against the taxpayer and/or property. These taxes are recognized liS revenue wben received during the fiscal year and aleo estimated to be received within sixty days after the end of the fiscal year. Amounts estimated to be received between sixty days and one year after the end of the fiscal year are recorded as deferred revenue. An allowance for uncollectib1es i. recorded for taxes estimated not to be col1ectible within one year after the end of the fiscal year. Other tax revenues. including taxpayer.assessed r.evenues such as earned income taxes. are recognize!! a9 revenue when received during the fiscal year or soon enough thereafter to be susceptible to accrual. . 11 . . IlIG SPRING SCHOOl. DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30, 1995 . 3. Caah and investmenta (Cont'd.) Tha inveatmenta, whose market value approximates cost due to the short t.rm nature of the investments. are categorized sa followa: Inaured (FDIC) Collat.ral held in the Diatrict's name Collateral not hald in the District's name $ -0- -0- 5.431 5,431 ~. 728,217 Pooled inveatments $ 3.733,648 The types of authorized investments are limited by state regulations, Investment policies followed during the year did not aignificantly alter the categorization of investments shown above. 4. Accounta receivable Accounts receivable are as follows: Food Service General Fund Fund Local sources Earned income taxes $ 501.134 $ Other governmental uni ts 34,641 Other items 46,606 738 Stat. sources B8.930 2,043 Federal sources ..-l!i...lll 15,296 $ 695.575 $ 18.077 5. Delinquent taxes receivable Delinqusnt taxes receivable and the relatad deferred revenue are as follows: Real sstate taxas Occupation. residence and per capita taxes Delinquent taxes receivsble Allowance for taxes estimated not to be col1ectible within one year Estimated to be collectlble within one year Eatlmated to be col1ectible within sixty days $ 329,528 245,971 575.499 - 225,499 350.000 30,000 $ 320.000 Deferred revenue, delinquent taxes . 13 - . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30. 1995 . 6. Land, buildings and equipment Changea 1n land, buildings and equipment were as follows: July 1. 1994 Addi t Lons DlsDOII.lll. June 30, 199~ Land and buildLngs Equipment $ 12,250.000 $ 6.000.000 50.000 $ 245.00Q $ 12. 300 , 000 6.200.000 45 ,000 General fixed assets $ 18.250.000 $ 295.000 $ 45 .000 $ 18. 5JO. 000 Food service equipment $ 342,756 $ -0.. $ ..0- $ 342.756 7. General obligation bonds payable Changes in genersl obligation bonds payable. Series of 1992, were as follows: Bonds payable, July 1, 1994 Redemptions during the year $ 5 .675 .000 265.000 Bonds payable. June 30. 1995 $ 5.410.000 The bonds, with interest rates of 4.00% to 6.15'. are callable in whole or in part, on or after September 1. 1997. Scheduled debt sArvice requirements are as follows: Year Ending June 30 Prindoal Interest :MAl 1996 $ 275,000 $ 297.342 $ 572.31,2 1997 290,000 286.342 576,342 1998 300,000 273,72B 573,728 1999 315,000 259,77B 574,778 2000 330,000 244,500 574,500 2001 2005 1,920,000 941.752 2.861.752 2006 . 2009 L.llQ...QQ.Q 311. 250 2.291. 250 $ 5.410.000 $ 2.614.692 $ 8.024,692 . 14 . BIG SPRING SCHOOl_ DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30. 1995 . 8. Compenseted absences Changes in compensated absences were as follows: JUIV 1. 1994 Net ChallU $ 14,495 6,270 1,696 5,732 (7.993) $ 20.200 $ 5.813 June 30. 199~ General Long-Term Debt Teachers $ 601,697 Custodians 70,l,B4 Secretaries 64,186 Aides 9,877 Administrstors 62.356 $ 808.600 Food Service Fund $ 54,969 $ 616,192 76,754 65,882 15,609 54.363 $ 82B.800 $ 60,782 Payments for compensated absences recorded in General Long-Term Debt are made through General Fund expendi tures in the year the absence is taken or the employee retires. At retIrement or death. while in School DIstrict service. employees (with at least 10 years service in the School District) or their beneficiaries shall choose one of the following options (subject to a maximum of $ B.OOO for administrators and $ 6,500 for all other employees): 1. Accwnulated unused sick leave daya time. $ 50 per day 2. Nwnber of ful~ years of service in the District times $ 150 per year 9. Pension pIan All full time District employees and part time employces with at least BO days or 500 hours of service year.ly, are eligiole to participate in The Public School Employes' Retirement System of Pennsylvania ("System"), a cost-sharing, multiple- employer defined benefit pension plan. Employees who retire at age 62. or age 60 with 30 years of service, or with 35 years of service regardless of age. are entitled to a retirement benefit. payable monthly for life, equal to 2\ of their final average salat.y times years of service. Benefits vest on reaching 10 years of service. The System also provides for early retirement at age 55 and for death and disability benefits. Effective July 1992, health inaurance premium assistance of $ 55 per month is provided for retirees receiving a disability benefit or credited wIth at least 24.5 years of service, Covered employees are requireoJ by State statute to contribute a percentage of their salary to the pIan. This percentage is 5.25\ for employees hired before July 1983, and 6.25\ for employees hired after that date. The District and State contribution percentages were equal at 5.53\ for the year ended June 30, 1994. The District's contribution for the year was $ 571.959. Effective .luly 1995. the District percentage will be 11.'12\ and the District will receive a subsidy from the State for a portion of the District contribution. . 15 . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 10, 1995 9. Penaion plan (Cont'd.) The pend on benefit obligation. which Is the actuarial present value of credited projected benefits, IS a standardized measure of the present value of penaion b'lOefits, adjusted for the effects of projected salary Increases and sny step- rate benefits, estimated to be payable In the future ss s r.sult of employee aervice to dllte. Tho measure is Intonded to help usors assess the retirement system's funding statlls on a going-concern bads, assess progren msde in accumulating sufficient assets tll psy benefits whon duo, and make comparlBona among public employee retirement systems. As of June 30, 1993, the most recent actusrlal valuation date. the Systom's pension benefit obligation, as calculated In accordsnce with GASB Statement No.5. totalled $ 23.B7 billion. Net assets avallable for benefits as of the same date totalled $ 21. 72 billion. The unfunded pension obllgatlon under GASB Statement No.5 totalled $ 2.15 bllllon, Total contributions to the System from all participating employers for the years ended June 30, 1994 and 1993 were $ 0.93 billion and $ 0.97 billion, respectively. Ten-year historical trond Information showing the System's progress In accumulating sufflclent assets to pay benefits when due Is presented In the System's Comprehensive Annual Financial Report. 10. Postemployment benefits other than pension benefits Under the negotiations agreement with Big Spring Education Association. the District shall provide for continuance of health care insurance after retirement until age 65. This health care Insurance shall be at the retiree's expense, except that employees who retire after thirty or more years with the District. shall have up to five years of health care Insurance boneflts provided on the basis of the District paying 50\ of the cost and the retiree paying 50\ of the cost. The District finances chis benefit on a pay-as-you-go basis. For the year .ndsd June 30. 1995 the District incurred a total cost of $ 23.329 to provide this benefit to 15 participants. 11. Inter-fun4 transactions General Fund expenditures includes contributed services and fund transfers as follows: Student activities Athletic Fund Activity Fund fund trans fers Capital Reserve Fund Food Service Fund Athletlc Fund $ 225,374 42,798 200.000 33.000 41,500 . 16 . BIG SPRING SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS (Cont'd.) JUNE 30. lq9~ 12. Riak managament The Oiatrlct ie expoaed to vadous risks of 101S l'elated to torta; thl,ft of, damllge to, and destruction of assets; errors and omlaaions; injuriaa to employa..; and natural diaaatsu. The Diatrict mBlntain. commerclal inauranee cava rage covering each of those risks of 101S. Management belIeves .uch covsrage la aufficiant to precluds any signiUcant uninsursd lossos to ths Diatrict. Settlad claims heve not exceeded this commerclal coverage in any of the past three Uscal years . For State unemployment cOl"pensation lsws. the DIstrict is self-Insured, which la a common practice for local governmental units, Any unemployment claims are pdd by ths DIstrIct on a quarterly basis as Incurred. For worksr,' compensation insurancs, over 50 Districte particlpate in s publlc entIty rIsk aharIng pool (School DistrIcts Insurance ConsortIum) for processIng claims and obtaining reInsurencs through commerclal Insurance carrIers. Under thIs plan, the District's annual coet should not: sxcesd standard commerclal InKurance rates. For dental insurancs covsrage, the OletrIct pays claims plus an admInistration fee of 10.50t of claims. Claims coverage ia llmited to n maxlmum of $ 1.000 par person per contract year, 13. Commitments and contIngencIes The District'a contract wIth Its teaching staff Is scheduled to expIre In June 1997. In the normal course of busIness, the DistrIct is subject to legal dIsputes and cldms. The DIstrict does not antIclpate any material losses from any pentiIng or threatened litIgation. In the normal course of preparing for the subsequent school year, the DistrIct has awarded bIds for various supplies, fuel contracts, etc. No major commitments In excess of routIne requIrements have been mcde by the DistrIct, The District Is also audIted by the State's Department of the AudItor General. FIndIngs, If any. from these audits could result in the repayment of funda, or the receipt of addI t Ional funds. 14. Change In accountIng method Governmental Accounting Standards Board Statement Number 22, "AccountIng for Taxpnyer-Aasessed Revenues In Governmental Funds". became effectIve for Uscal year. beginnIng after June 15. 1994. Taxpayer-assessed revenulls are now on the modIfied accrual basis of accounting. PrevIously. the cas" basIs was used to account for taxpayer-assessed revenues. The DistrIct changed Its accountIng method. by recording the cumulatIve effect adjustment to the July 1, 1994 fund balance of the General Fund. as follows: Fund balance, as previously reported CumulatIve effect adjustment $ 2,310.416 115.000 Fund balance. as restated $ 2.425.416 . 17 -