Pennsylvania Department of Education

Transcription

1 ft LEA Name: WEST CHESTER AREA S Address 829 Paoll Pike City West Chester, PA 1938 Class Size: 2 County: AIJN Number: Chester Pennsylvania Department of Education Comptroller s Office Local Education Agency Annual Financial Report PDE267 For 6/3/ FIscal Year End This report is a complete and accurate statement of the financial operations and status of the local education agency toj the fiscal year, and has been prepared In accordance with generally accepted accounting principles and established Corrwnonwealth of PA reporting guidelines Chief School Admini tar Date /~2 c~?~7~ CC Board Secretary /c o22~ô Date John 1 Scully Contact Person (61) 436J129 Telephone Number 1/26/5:9:31 PM jscuily~wcasdk12paus Address

2 19992 Annual FInancial Report (PDE257) 8/3/ Fiscal Year End COMBINED BALANCE SHEET All Funds, Account Groups and Component Units School: WEST CHESTER AREA S D Page STi PrInted 1/26/5:9:35 PM Special Capital Debt General Revenue Projects Service (1) (2) (3) (4) ASSETS AND OTHER DEBITS Assets 1 Cash and Cash Equivalents 7,8, Investments 5,48, ,47 12 Taxes Receivable (Net) 4,44, Due From Other Funds 5,44,63 14,286, Due from Other Governments (Include Accounts ) 53, Due From Primary Governments 147 Due From Component Units 15 Other Receivables (Include Bond Proceeds Receivable) 152,53 193, Advances to Other Funds (LongTerm Loans) 17 Inventories 18 Prepaid Expenses / Expenditures 439, Other Current Assets 21 Land and Site Improvements 22 Building & Building Improvements 23 Machinery & Equipment 24 Less: Accumulated Depreciation 25 Construction in Progress 26 LongTerm Prepayments 27 Less: Accumulated Amort LongTerm Prepayments Other Debits 33 Amount Available In Debt Service Funds 34 General LongTerm Debt 35 Lease Obligations 34 Amount to be Provided for Comp Abs 22,7124$ 14,419,42 ~1,35647

3 19992 Annual Financial Report (PDE257) 6/3/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:35 PM Proprietary Fund Types Fiduciary Fund Types Enterprise (5) COMBINED BALANCE SHEET All Funds, Account Groups and Component Units Page ST2 Account Groups Internal General Fixed General Long Discrete Service Trust Agency Assets (91) Temi Debt (92) Component (6) (7) (8) Units Total (Memorandum Only) Report Entity 318,815 4,38 138,826 29, ,4 277,273 61,7 281, ,677 1,194,92 1,458 7,767,391 56,975,78 4,44,839 2,82,354 56,125 Assets , , , , ,384, ,364, ,971 23, Other Debits ,229, 136,229, ,423,53 2,423,53 34

4 19992 Annual Financial Report (PDE257) 6/3/ Fiscal Year End COMBINED BALANCE SHEET All Funds, Account Groups and Component Units School: WEST CHESTER AREA S D Page ST3 Printed 1/26/5:9:36 PM Special Capital Debt General Revenue Projects Service (1) (2) (3) (4) LIABILITIES, EQUITY, AND OTHER CREDITS Liabilities 4 Due to Other Funds 1256,566 5,42,759 14,313, Due to Other Governments 412 Due to Primary Government 413 Due to Component Units 42 Accounts Payable 4,29, , , Contracts Payable 44 Current Portion of LongTerm Debt (eg ST Comp Abs) 45 ShortTerm Payables 461 Accrued Salaries and Benefits 5756, Payroll Deductions and Withholdings 47 Advances from Other Funds 48 Deferred Revenues 49 Other Current Liabilities 3,338, Bonds Payable 52 Extended Term Financing Agreements Payable 53 Lease Purchase Obligations 54 LT Portion of Comp Abs (Acct Group & Component Units Only) 55 Authority Lease Obligations 59 Other LongTerm Liabilities roraluabiuties 14 56R ~22Q 14~,756~55 Equity and Other Credits 71 Investments in Fixed Assets 72 Contributed Capital 73 Reserved Retained Eamings 74 Unreserved Retained Earnings 75 Standard Fund Balance Reserves 76 Specific Fund Balance Reserves 771 Unreserved Designated 2,924, Unreserved Undesignated 5,287,329 9,39,422 36,59,964 TOTAL EQUITY AND OTHER CREDITS S21t5T? TOTAL UABILITIES, EQU~TYAM ØThER~REDlTS ~2,712,426 14,419, ~4T

5 19992 Annual Financial Report (PDE257) 6/3/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:36 PM Proprietary Fund Types Enterprise (5) internal Service (6) Trust Agency (7) (8) COMBINEDBALANCE SHEET All Funds, Account Groups and Component Units Page ST4 General Fixed General Long Assets (91) Term Debt (92) Total (Memorandum Only) Report Entity Liabilities 189,697 2,82, ,927 85,33 5,749, ,756, ,37 565, ,338, ,229, 136,229, ,53 2,423, IU,927 1,~ ,662, , ,8 Equity and Other Credits , ,8 281, ,618, , ,7 2t1,311 1,68,37 161,816, ,662, TOTAL

6 19992 Annual Financial Report (PDE257) 613/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:37 PM COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units Page STS REVENUES AND OThER FINANCING SOURCES REVENUES: 6 Local Sources 7 State Sources 8 Federal Sources OTHER FINANCING SOURCES: 911 Bond Proceeds (Do not include Refunded Bonds) 912 Refunding Bond Proceeds 92 Proceeds From Extended Term Financing ~1hDCfl~::: 93 Interfund Transfers (From Other Funds) 2,397, Sale / Compensation for Fixed Assets 95 Refunds of Prior Year Expenditures 12,1 96 Operating Transfers In (From Other LEA5) 173, Operating Transfers From Component Units 972 Operating Transfers From Primary Government 1 TOTALREVENUESANVOTERF)NANC1NGSOURE~ES 11478~8$6 EXPENDITURES AND OTHER FINANCING USES EXPENDITURES: 1 Instruction 2 Support Services 3 Noninstructional Services 4 Facilities Acquisition / Constr /imp Serv 511 Debt Service (Principal & Interest Do Not Include Ref Debt) OTHER FINANCING USES: 512 Debt Service (Payment to Refunded Bond Escrow Agent) 52 Fund Transfers (To Other Funds) 531 Operating Transfers to Component Units 532 Operating Transfers to Primary Government 2 TOTAL EXP AM) OTHERF~USES ,455 3 REV AND OTHER SOURCES OVER (UNDER) EXP AND OTHER USES 3,112,41 4 Fund Balance Beginning of Fiscal Year 5,99,176 5 Chg in lnv / RS Equity Trans / Prior Year Adj ~ :::::::: ~ : : ~ ~ ~ :::::::::~:: ::::::5~2ji~577: If [ General (1) 91,687,75 18,894,84 1,595,658 67,427,687 32,469,433 1,982, ,135 9,555,848 Special Revenue (2) ,97,94 Z1 ~19 95,81 2,397,631 Z492,71 2 (31,193) 9,61,615 :: :9,39,422 Capital Projects (3) 2,633,769 25,245, 195,484 3,758, ,289 27,347, (4,64,295) 4,655,259 38,59,964 Debt Service (4) 2525, 2$,25, 25,25, 26,25,

7 19992 Annual Financial Report (PDE257) 613/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:37 PM Fund Types ~ExpendabIe Discrete Trust Component (7) Units Total (Memorandum Only) Report Entity COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units Page ST6 14,414 94,556,313 18,894,84 1,595,658 REVENUES: OTHER FINANCING SOURCES: 25,245, ,744, , , ,417,42 1 EXPENDITURES AND OTHER FINANCING USES EXPENDITURES: 69,67 67,427,687 32,469,433 2,146,5 3,971,3 35,839, OTHER FINANCING USES: ,744, ~7 171,598, ,347 (1,181,74) 3 29,966 55,575,16 4 (2) (2) 5 281, ,274 7

8 19992 Annual Financial Report (PDE257) 6/3/ FIscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:38 PM STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANC Budget and Actual General and Special Revenue Funds Page ST7 REVENUES AND OTHER FINANCING SOURCES Revenues 6 Local Sources 87,552,258 7 State Sources 18,417,718 8 Federal Sources 1595,658 Other Financing Sources 91 Sale of Bonds 92 Proceeds From Extended Term Financing 93 Interfund Transfers 2,464,4 94 Sale / Compensation for Fixed Assets 95 Refunds of Prior Year Expenditures 96 Operating Transfers In 15, 97 Operating Transfers from Camp Unit I Primary Gov TOTAL REVENUES AND OTHER FINANCING SOURCES tlo,18 34 EXPENDITURES AND OTHER FINANCING USES Expenditures 11 RegularProgramsE/S 12 SpecialProgramsE/S 13 Vocational Education Programs 14 Other Instructional Programs E / S 16 Adult Education Programs 17 Community / Junior College Education Programs Total Expenditures Support Services 21 Pupil Personnel 22 Instructional Staff 23 Administration 24 Pupil Health 25 Business Operation and Maintenance of Plant Services Student Transportation Services Central Other Support Services Total Support Services Variance Favorable Budget Actual j (Unfavorable) 52,28,815 11,3,461 3,333,119 1,564,431 22,745 68,132,571 3,434,2 3,211,816 5,858,46 1,174, ,499 9,179,9 8,174,196 1,26, ,953 33,216,349 91,687,75 18,894,84 1,595,656 2,397,631 12,1 173,12 51,636,237 1,96,53 3,286,41 1,521,765 22,744 67,427,686 3,348,151 3,128,586 5,83,558 1,164, ,573 9,173,211 8,131, , ,814 32,469,432 4,135, ,122 (66,769) 12,1 23,12 ~I147G$ ,578 42,931 46,79 42,666 74,885 85,869 83,23 27,92 9,858 9,926 5,879 43,33 48,81 1, ,917

9 19982 Annual Financial Report (PDE267) 613/ FIscal Year End STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE School: WEST CHESTER AREA 5 D Budget and Actual General and Special Revenue Funds Printed 1/26/ 5:9:38 PM Page ST8 Special Revenue Fund Variance Favorable Budget Actual (Unfavorable) 94,425 94, ,97,94 2,97, ,191,519 2,191,

10 19992 Annual Financial Report (PDE257) 6/3/ FIscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:38 PM STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANC Budget and Actual General and Special Revenue Funds Page ST9 Budget Operation of Noninstructional Services 32 Student Activities 33 Community Services 34 Scholarships and Awards Total Operation of Noninstructlonal Services Facilities Acquisition, Construction and Improvement Services 4 Facilities Acquisition / Constr I Imp Serv Total Facilities Acquistlon, Construction and Improvement Services Other Financing Uses 51 Debt Service 52 Fund Transfers 53 Transfers to Component Unit and Primary Government 59 Budgetary Reserve Total Other Financing Uses 6 Appropriation of Prior Year Encumbrances TOTAL EXPENDITURESAND OTHER FINANCING USES Revenues and Other Fin Sources Over (Under) Expenditures and Other Fin Uses 4 5 Fund Balance Beginning of Fiscal Year Chg in lnv / RS Equity Trans I Prior Year Adj Fund Equity 8t3w2 Actual Variance Favorable (Unfavorable) 1,938,235 64,711 1,917,641 64,711 2,2,946 1,982,352 2,594 2, , , , ,135 3,228 3,228 9,556,51 9,555,848 1,469,352 11,25,853 9,555, l1,54L ,469,352 1,47,5 2, (4,414,48) 3,112,43 7,528,451 4,414,48 5,99,176 * 8,211,4Th 685, ,519

11 19992 Annual Financial Report (POE257) 6/3/ Fiscal Year End School: WEST CHESTER AREA S Printed 1/26/5:9:38 PM Budget STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Budget and Actual General and Special Revenue Funds Page STb Variance Favorable (Unfavorable) Actual o 6 2,397,631 (2,397,631) (2,397,631) o 2,397,631 (2,397631) o (26,112) (26,112) 2,397,631 9,61,615 9,61,615 9,44,53 9,44,43 4 5

12 19992 Annual Financial Report (PDE267) 6/3/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/ 5:9:39 PM COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units Page STli Proprietary Fund Types Fiduciary Fund Types Food Service Other Enterprise Internal Nonexpendable Fund Funds Service Trust (51) (59) (6) (71) A,snoit~r*~ E~~re3s~ m W~rn4eVollars OPERATING REVENUE: 651 Earnings on Investments Operating Revenue 66 Food Service Revenue 69 Charges for Services 6999 Other Operating Revenues 1 1,66,589 TOTAL OPERA1NG REVENUE 1, OPERATING EXPENSES: 1 Salaries 2 Employee Benefits 3 Purchased Professional and Technical Service 4 Purchased Property Services 5 Other Purchased Service 6 Supplies 7 Depreciation 81 Dues and Fees 82 Claims and Judgements 89 Other Operating Expenditures 2 1 OPERA P4ME~OS~S} : NONOPERATING REVENUES (EXPENSES): 83 Interest Expenses 652 Earnings on Investments Nonoperating Revenue 692 Contributions and Donations Private Sources 693 Gain / Loss on Sale of Fixed Assets 7 State Sources 8 Federal Sources 95 Refunds of Prior Year Expenditures 4 TOTAL NONOPERATING REVENUES (EXPENSES) 5 NET INCOME ~LOSS1 BEFORE TRANSFERS 9997 Operating Transfers From (To) Primary Government 9998 Operating Transfers From (To) Component Units 9999 Operating Transfers In (Out) ,417 TOtAL O~ERA1~NG EXPENSES 3::: 53 1,873,864 73,379 NET INCOME (LOSS) Ret Erngs / Fund Bal at Beginning of Fiscal Yr Accounting Changes / Residual Equity Transfers Prior Period Adjustment RETEARNINGSi~UNDRAI6/3W2Qfl(NoCeitfrOap~ ~G3S 66 : 1 :~ :: : : : (3*71): 13,979 47,14 394, ~ 375,11 4S5 8 : ::

13 19992 Annual Financial Report (PDE257) 6/3/ FIscal Year End School: WEST CHESTER AREA S o Printed 1/26/ 5:9:39 PM Total Discrete Component Units I I J COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units Page ST12 (Memorandum Only) ReportEntity OPERATING REVENUE: ,66,589 COMBINED STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR END SCHEDULE OF NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES OPERATING EXPENSES: ,864 73,379, 88,417,,2,38,56 2* ~3~,7i) 3 13,979 47,14 394, ,979 Amount,,, NONOPERATING REVENUES (EXPENSES): , Explanation of Transaction and Balance Sheet Effect

14 19992 Annual Financial Report (PDE267) 6/3/ Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:4 PM COMBINED STATEMENT OF CASH FLOWS (CCF) All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units Page ST 13 Fiduciary Proprietary Fund Types Internal Enterprise Service (5) (6) I Cash Flows From Operating Activities 9937 Cash Received From Users 9938 Cash Received From Assessments Made to Other Fund 9939 Cash Received From Earnings on Investments 994 Cash Received From Other Operating Revenue 9941 Cash Payments to Employees For Services 9942 Cash Payments For Insurance Claims 9943 Cash Payments to Suppliers For Goods and Services 9944 Cash Payments For Other Operating Expenses Not Ci~It Prnvtdad By ((Med For)Operatln~Ac*lvlties Total I j (Memorandum Discrete Component Units I Only) Reporting Entity ~j 1,58,578 1,58,578 1,975,81 1,975,81 ~3962~2) Cash Flows From NonCapital Financing Activities 6 Local Sources 7 State Sources 8 Federal Sources 9917 Notes and Loans Received (Repaid) 9918 Interest Paid on Notes/Loans (5183) 9919 Operating Transfers In (Out)/Residual Equity Trans 992 Operating Transfers In (Out) Primary Government 9921 Operating Transfers In (Out) Component Units 9922 Refund of Prior Year Expenditures (95) 9923 Inc (Dec) in Contributed Capital NetC*st, Pmv By (Used for) NonCapItalFInancing Acttvthes Cash Flows From Capital and Related Financing Activities 4 Facilities Acquisition / Constr, / Imp Serv 593 Gain I Loss on Sale of Fixed Assets 92 Proceeds From Extended Term Financing 9925 Principal Paid on Financing Agreements 9926 Interest Paid on Financing Agreements (5183) 9927 (Inc) Dec in Contributed Capital NetOath Activities PrcwBy (Used tot)oapltal and Related FInancing I Fund Type Nonexpendable Trust (71) (395232) 47,14 394, ,14 394, ~71

15 19992 Annual Financial Report (PDE257) 6/31 Fiscal Year End School: WEST CHESTER AREA S D Printed 1/26/5:9:4 PM COMBINED STATEMENT OF CASH FLOWS (CCF) All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units Page ST 14 Fiduciary Amounts Expressed ~nwhole Ooliars Proprietary Fund Types Internal Enterprise Service I (5) Cash Flows From Investing Activities 65 Earnings on Investments 9929 Purchase of lnv Securities / Deposits to mv Pools 993 Withdrawls from Investment Pools 9931 Proceeds from Sale and Maturity of mv Securities 9932 Loans Received (Paid) Net Oath Prov By (Used for) Investing ActivitIes Net Inc ~DecJ rn Cash and Cash Flow 9935 Fund Type Nonexpendable Trust I 6 Total Discrete ~ (Memorandum Component Only) I _J Units Reporting Entity 13,979 (7,463) $2 355 Cash and Cash Equivalents Beginning of Year 266,46 Cash and Cash Equivalents at Year End ,979 (7,463) M1~ 266, ~1$ ~ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for): 991 Depreciation and Net Amortization 992 Provision for UncollectibIe Accounts 993 test 994 (mc) Dec In Accounts Recewable (1 215) 995 Advances to Other Funds (16) 996 (Inc) Dec In Inventories (17) 997 (mc) Dec in Prepaid Expenses (18) 998 (lnc) Dec in Other Current Assets (19) 999 Inc (Dec) in Accounts Payable (445) 991 Inc (Dec) in Accrued Salaries/Benefits (461) 9911 Inc (Dec) in Payroll Deductions/Withholding (462) 9912 Inc (Dec) in Advances from Other Funds (47) 9913 Inc (Dec) in Deferred Revenue (48) 9914 Inc (Dec) in Other Current Liabilities (49) Total Adjustments Cash Provided by (Used for) TOtal (2,161) (114,69) 34,58 59,85 (2,161) (395,232) ~395~232) (114,69) 34,58 59,85

16 7WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Summary of Significant Accounting Policies The financial statements of West Chester Area School District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles The more significant of the government s accounting policies are described below A Reporting Entity The School District is governed by an elected Board of Directors, Generally accepted accounting principles require that the financial statements present the School District and its component units, entities for which the School District is considered to be financially accountable Blended component units, although legally separate entities, are, in substance, part of the School District s operations and so data from these units are required to be combined with data of the primary School District Each discretely presented component unit, on the other hand, is required to be reported in a separate column in the combined financial statements to emphasize it is legally separate from the School District Based on the application of these principles, there are no component units presented in the School District s financial statements B Fund Accounting The School District uses funds and account groups to report on its financial position and the results of its operations Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities A fund is a separate account entity with a selfbalancing set of accounts An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources Funds are classified into three categories: governmental, proprietary and fiduciary Each category, in turn, is divided into separate fund types Governmental Funds: General Fund The General Fund is the general operating fund of the School District It is used to account for all financial resources except those required to be accounted for in another fund All general tax revenues, federal, state and other receipts that are not allocated to another fund are accounted for in this fund From this fund are paid the general operating expenditures, the fixed charges and the capital improvement costs that are not paid through other funds special Revenue Funds: Athletic Fund The Athletic Fund is used to account for the receipts generated by the School District s athletic events and the related expenditures of those events Capital Reserve Fund The Capital Reserve Fund is used to account for proceeds of specific revenue sources that are legally restricted to expenditures for future capital projects

17 8WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Summary of Significant Accounting Policies (Continued) Capital Project Fund The Capital Project Fund is used to account for financial resources to be used for the acquisition or construction of major capital assets other than those financed by enterprise operations Debt Service Fund debt The Debt Service Fund is used to account for the payment of general longterm Proprietary Funds: Enterprise Funds The Food Service Fund (an Enterprise Fund) is used to account for the operations of the School District s school cafeterias that are financed and operated in a manner similar to a private business enterprise where the intent of the governing body is that the cost of providing goods or services to the school population on a continuing basis will be recovered or financed primarily through user charges Fiduciary Funds: Trust Funds These funds are used to account for assets held by the School District in a trustee capacity or as an agent for individuals and private organizations Agency Funds Agency Funds are used to account for assets held by the School District as an agent for other funds and student clubs and other activities Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of the results of operations The School District s Agency Funds consist of the Payroll Fund and the Student Activities Fund C Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus With this measurement focus, only current assets and current liabilities generally are included on the balance sheet Operating statements of these funds present increases (ie, revenues and other financing sources) and decreases (ie, expenditures and other financing uses) in net current assets All proprietary funds, nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet Fund equity (ie, net total assets) is segregated into contributed capital and retained earnings components Proprietary fundtype operating statements present increases (eg, revenues) and decreases (eg, expenses) in net total assets The School District applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds; Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (ie, when they become both measurable and available) Measurable means the amount of the transaction can be determined and available~means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period Expenditures are recorded when the related fund liability is incurred Principal and interest on general longterm debt are recorded as fund liabilities when due

18 9WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Summary of Significant Accounting Policies (Continued) The accrual basis of accounting is utilized by proprietary fund types Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred The School District reports deferred revenue on its combined balance sheet Deferred revenues arise when a potential revenue does not meet both the measurable and available criteria for recognition in the current period Deferred revenues also arise when resources are received by the School District before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures In subsequent periods, when both revenue recognition criteria are met, or when the School District has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized D Budgets and Budgetary Accounting Budgets are adopted on a basis consistent with generally accepted accounting principles An annual appropriated budget is adopted for the general fund All annual appropriations lapse at fiscal year end Projectlength financial plans are adopted for all capital projects funds The School District follows these procedures in establishing the budgetary data reflected in the financial statements: 1 The Business Manager submits to the School Board a proposed operating budget for the fiscal year commencing the following July 1 The operating budget includes proposed expenditures and the means of financing them 2 Public hearings are conducted at the School District offices to obtain taxpayer comments 3 Prior to July 1, the budget is legally enacted through passage of an ordinance 4 The Business Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the School Board 5 Formal budgetary integration is employed as a management control device during the year for the General Fund 6 Budgeted amounts are as originally adopted, or as amended by the School Board The School District s General Fund Budget includes federal programs in which revenues are equal to qualifying expenditures The School District s formally adopted budget filed with the State includes estimated amounts for Federal program revenues and expenditures The accompanying Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual includes amounts from the formally adopted budget and an adjustment to reflect the Federal program budgets at actual amounts as follows:

19 1WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Summary of Significant Accounting Policies (Continued) D Budgets and Budgetary Accounting (Continued) Federal and State Programs Adjustment Formally Adopted Budget Revenues and Other Financing Sources: Local Sources State Sources Federal Sources Other Financing Sources TOTAL REVENUES AND OTHER FINANCING SOURCES $ 87,386,189 $ 166,69 18,87,24 1,23,853 2,614,4 33, ,85 87,552,258 18,417,718 1,595,658 2,614,4 19,318, ,352 11,18,34 861, ,594,82 (4,414,48) Total Expenditures and Other Financing Uses 113,732,73 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES Budgeted Fund Balance July 1, 1999 BUDGETED FUND BALANCE JUNE 3, 2 Total $ (4,414,48) 4,414,48 4,414,48 $ $ $ E ShortTerm Interfund ReceivableslPayables During the course of operations, transactions may occur between individual funds for goods provided or services rendered These receivables and payables are classified as due from other funds or due to other funds on the balance sheet Shortterm interfund loans are classified as interfund receivables/payables F Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them Instead, capital acquisition and construction costs are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group Assets in the general fixed assets account group are not depreciated Depreciation of equipment in the proprietary fund types is computed using the straightline method G LongTerm Obligations Longterm debt is recognized as a liability of a governmental fund when due For other longterm obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund The remaining portion of such obligations is reported in the general longterm debt account group Longterm liabilities expected to be financed from proprietary fund operations are accounted for in those funds

20 11WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Summary of Significant Accounting Policies (Continued) H Fund Eguity Reserves of fund equity represent those portions of fund equity not appropriable for expenditures or legally segregated for a specific future use Designated fund balances represent tentative plans for future use of financial resources I Cash Equivalents For purposes of the statement of cash flows, the Food Service Fund considers all highly liquid investments, with a maturity of three months or less when purchased, to be cash equivalents J Memorandum Only Total Columns Total columns on the general purpose financial statements are captioned memorandum only to indicate that they are presented only to facilitate financial analysis Data in these columns do not present financial position, results of operations or changes in cash flows in conformity with generally accepted accounting principles Neither are such data comparable to a consolidation Interfund eliminations have not been made in the aggregation of this data NOTE 2 Property Tax Property taxes attach as an enforceable lien on property as of July 1 Taxes are levied on July 1 and payable in the following periods: Discount Period July 1 to August 31 2% of Gross Levy Flat Period September 1 to October 31 Penalty Period October 31 to Collection 1% of Gross Levy The following is a detailed analysis of current year tax revenues: Chester County Assessed Valuation, Adjusted by Authorized Revisions Approved Tax Rate in Mills GROSS LEVY Plus Penalties Applied Deductions: Discounts Taxes Receivable Refunds NET TAXES COLLECTED $5,987,971, ,226,968 Delaware County Total $7,681, ,32,23 $5,995,653,47 216,554 2, ,28 1,114,817 1,389,234 14,62 51, ,953 1,166,62 1,56,187 14,62 $ $ 63,924,851 $3,171,939 $ 69,546,991 67,96,79

21 12WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 3 Deposits and Investments Under Section 441 of the Public School Code of 1949, as amended, the School District is permitted to invest funds consistent with sound business practices in the following types of investments: Obligations of (a) the United States of America or any of its agencies or instrumentalities backed by the full faith and credit of the United States of America, (b) the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth, or (c) any political subdivision of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision Deposits in savings accounts or time deposits or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation to the extent that such accounts are so insured and, for any amounts above the insured maximum, provided that approved collateral as provided by law therefore shall be pledged by the depository Deposits At year end, the total carrying amount of the School District s checking, savings and money market deposits was $7,753,354, and the corresponding bank balance was $1,395,788 Of the bank balance, $1, was covered by federal depository insurance, and $1,295,788 was collateralized through pools of securities held by the respective depository institutions Investments The School District investments are categorized under GASB Statement No 3 as either (1) insured and registered or securities are hold by the School District or its agent in the School District s name, (2) uninsured and unregistered, with securities held by the counterparty s trust department or agent in the School District s name, or (3) uninsured and unregistered with securities held by the counterparty, or by its trust department or agent but not in the School District s name All funds in the Pennsylvania School District Liquid Asset Fund, Pennsylvania Local Government Investment Trust, and Pennsylvania Treasurer s Investment Program are invested in accordance with Section 441 of the School Code These funds operate and are authorized under the Intergovernmental Cooperation Act of 1972 Each school district owns a prorata share of each investment or deposit which is held in the name of the Fund Since the Fund has the characteristics of a mutual fund, it would not be reported by risk category in accordance with Governmental Accounting Standards Board Statement #3 Certificates of deposit or other fixed term investments purchased by the School District through the Fund s administrator are purchased in the name of the School District Certificates of deposit purchased are federally insured up to $1,, collateralized with US Government Securities at 1% market value, or 1% collateralized (principal and interest) by irrevocable letters of credit issued by the Federal Home Loan Bank

22 13 WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 3 Deppsits and Investments (Continued) The School District s investments at June 3, 2 consisted of the following: Pooled Investments: Pennsylvania School District Liquid Asset Fund: General Fund Accounts Capital Project Fund Account TOTAL $ 323,6 5,587,281 5,91,341 Pennsylvania Local Government Investment Trust: Capital Project Fund Account 13,49,389 Pennsylvania Treasurer s Investment Program: General Fund Account Capital Project Fund Account Food Service Fund Account TOTAL 5,157,424 5,864, ,826 11,16,81 TOTAL POOLED INVESTMENTS 3,561,531 Capital Protect Fund Investments: FHLB Note Maturing August 13,21 (At Market) GASB Statement No 3 Risk Category #2 FHLB Note Maturing November 15,21 (At Cost) GASB Statement No 3 Risk Category #2 FNMA Notes Maturing September 1, 2 (At Cost) GASB Statement No 3 Risk Category #2 FHLB Note Maturing May 1,22 (At Market) GASB Statement No 3 Risk Category #2 TOTAL CAPITAL PFOJECT FUND INVESTMENTS 5,986,125 3,75,469 1,563,199 15,159,456 26,414,249 TOTAL INVESTMENTS $56,975,78 NOTE 4 General Fixed Assets A summary of changes in general fixed assets is as follows: Balance Land Buildings Machinery and Equipment Balance July 1, 1999 $ 3,26, ,12,595 19,515,774 Additions 2,282,353 4,455,226 June 3, 2 $ 3,26, ,384,948 23,971, $154,878,99 $ 6,737,579 $161,616,569 $

23 14 WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 5 Changes in General LongTerm Debt The following is a summary of debt transactions of the School District for the year ended June 3, 2: Principal Outstanding July 1, 1999 General Obligation Bonds, Series of 1993 General Obligation Bonds, Series A of 1993 General Obligation Bonds, Series of 1995 General Obligation Promisssory Note, Series A of 1995 General Obligation Note, Series of 1996 General Obligation Bonds, Series of 1996 General Obligation Note, Series B of 1996 General Obligation Note, Series of 1997 General Obligation Bonds, Series of 1998 General Obligation Note, Series A of 1998 General Obligation Bonds, Series A of 1998 General Obligation Bonds, Series of 1999 General Obligation Bonds, Series of 2 General Obligation Note, Series of 2 Maturities/ Refinancing 17, $ 16,275, 19,44, 2,44, 17,, 1,695, 535, 1,16, 3,1,75 62,75 3,38, 6,48, 214, 5,834, 12,915, 9, 12,825, 4,838, 171, 4,667, 15,25, 15,25, 24,, 45, 23,55, 1,, 1,, 17,, 17,, 9,82, 185, 9,635, $16,445, $ Additions Bonds Payable June 3, 2 9,995, 9,995, 15,25, 15,25, $14,551,75 $ 29,567,75 $25,245, $136,229,

24 15WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 5 Changes in General LongTerm Debt (Continued) Longterm debt at June 3, 2 consisted of: Current Outstanding Principal General Obligation Bonds, Series A of 1993 Original principal amount of $23,23,, maturing December 1, 1994 through December 1, 25, bearing interest from 385% to 475% Interest is paid semiannually on December 1 and June 1 General Obligation Bonds, Series of 1993 Original principal amount of $17,21,, maturing January 15, 1994 through January 15, 211, bearing interestfrom45% to 55% Interest is paid semiannually on January 15 and July 15 General Obligation Bonds, Series of 1995 Original principal amount of $15,,, maturing September 1, 1996 through September 1, 214, bearing interest from 5% to 62% Interest is paid semiannually on September 1 and March 1 General Obligation Promissory Note, Series A of 1995 Original principal amount of $3,14,, maturing July 25, 216, bearing interest at a variable rate The maximum interest rate will be the lesser of the maximum rate allowed by Pennsylvania statute or 15%, adjusted on a monthly basis Interest is paid monthly General Obligation Note, Series of 1996 Original principal amount of $6,25,, maturing April 25, 216, bearing interest at a variable rate not to exceed 25% Interest is paid monthly General Obligation Bonds, Series of 1996 Original principal amount of $13,7,, maturing September 1, 214, bearing interest from 415% to 51% Interest is paid semiannually on March 1 and September 1 General Obligation Note, Series B of 1996 Original principal amount of $5,,, maturing December 25, 21 5, bearing interest at a variable rate The maximum interest rate will be the lesser of the maximum rate allowed by Pennsylvania Statute or 15%, adjusted on a monthly, basis Interest is paid monthly General Obligation Bonds, Series of 1998 Original principal amount of $24,,, maturing May 15, 1999 through November 15, 216, bearing interest from 4% to 52% Interest is paid semiannually on May 15 and November 15 BALANCE (CARRIED FORWARD) $ 17,, 16,275, 1,16, 3,38, 5,834, 12,825, 4,667, 23,55, 84,349,

25 16WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 5 Changes in General LongTerm Debt (Continued) Current Outstanding Principal $ 84,349, BALANCE (BROUGHT FORWARD) General Obligation Bonds, Series A of 1998 Original principal amount of $17,,, maturing November 15, 2 through November 15, 217, bearing interest from 4% to 52% Interest is paid semiannually on May 15 and November 1 5 General Obligation Bonds, Series of 1999 Original principal amount of $9,82,, maturing November 15, 1999 through November 15, 216, bearing interest from 35% to 45% Interest is paid semiannually on May 15 and November 1 5 General Obligation Bonds, Series of 2 Original principal amount of $9,995,, maturing November 15,21 through November 15,22, bearing interest from 425% to 585% Interest is paid semiannually on May 15 and November 15 General Obligation Note, Series of 2 Original principal amount of of $15,25,, maturing June 1, 24, bearing interest from 525% to 15% Interest is paid semiannually on June 1 and December 1 TOTAL 17,, 9,635, 9,995, 15,25, $136,229, The annual requirements to amortize all debts outstanding as of June 3, 2, including interest payments of $64,566,891, are as follows: Year Ending June 3, Subsequent $ 13,23,615 TOTALS $2,795,891 13,356,214 14,814,932 3,38,368 12,5,35 116,882,457

26 17 WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 6 Refinancing of Debt On July 1, 1993, the School District issued $17,21, of nonelectoral general obligation bonds Upon issuance of the bonds, a portion of the proceeds were invested in US Government Investments which are held in trust by an Escrow Agent and irrevocably pledged for the purpose of defeasing (paying and redeeming, solely from the principal and interest proceeds of such investments) all of the School District s General Obligation Bonds, Series A of 1991 The proceeds of such investments, together with interest to be earned thereon, will be sufficient to pay interest and principal of these bond issues through the call dates of the outstanding bonds The School District advance refunded the Series A of 1991 bonds to reduce its total debt service payment over the next eighteen years by approximately $539, and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $537, On February 29, 1996, the School District issued $13,7, of nonelectoral general obligation bonds Upon issuance of the bonds, a portion of the proceeds were invested in US Government Investments which are held in trust by an Escrow Agent and irrevocably pledged for the purpose of defeasing (paying and redeeming, solely from the principal and interest proceeds of such investments) a portion of the School District s General Obligation Bonds Series of 1995 The School District advance refunded part of the 1995 bonds to reduce its total debt service payment over the next eighteen years by approximately $419,819 On March 1, 1999, the School District issued $9,82, of nonelectoral general obligation bonds Upon issuance of the bonds, a portion of the proceeds were invested in US Government Investments which are held in trust by an Escrow Agent and irrevocably pledged for the purpose of defeasing (paying and redeeming, solely from the principal and interest proceeds of such investments) all of the School District s General Obligation Bonds, Series of 1997 The proceeds of such investments, together with interest to be earned thereon, will be sufficient to pay interest and principal of these bond issues through the call dates of the outstanding bonds The School District advance refunded the Series of 1997 bonds to reduce its total debt service payment over the next eighteen years by approximately $329, Escrow accounts were established to provide for future debt service The escrow account assets and the liabilities for the above defeased debt are not included on the School District s financial statements A summary of defeased debt of the School District at June 3, 2 is as follows: Outstanding Principal at June 3, 2 Final Maturity Interest Rates General Obligation Bonds, Series A of /15/ % $15,15, General Obligation Bonds, Series of /1/ % 11,85, General Obligation Bonds, Series of 199] 11/15/ % 9,35,

27 18WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 7 Pensions School districts in the Commonwealth of Pennsylvania participate in a stateadministered pension program Under the program, contributions are made by each of three parties the School District, the state and the employee All fulltime employees of the School District, and parttime employees who meet certain minimum employment requirements, participate in the program The School District s contributions for the year ended June 3, 2 totaled $2,72,217 Total covered payroll was $58,616,416 and total payroll was $59,935,363 for the current year The following is a summary of plan benefit and asset information: Plan Description: Name of Plan The Public School Employees Retirement System of Pennsylvania (the System) Type of Plan Governmental cost sharing multipleemployer defined benefit plan Benefits Retirement and disability, legislative mandated ad hoc costofliving adjustments, health care insurance premium assistance to qualified annuitants Authority The Public School Employee s Retirement Code (Act No 96 of October 2, 1975, as amended) (24 Pa CS ) Annual Financial Report 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 Public School Employees Retirement System, PO Box 125, Harrisburg, PA Funding Policy: Authority The contribution policy is established in the Public School Employees Retirement Code and requires contributions by active members, employers, and the Commonwealth Contribution Rates Most active members contribute at 525 percent of their qualifying compensation Members joining the System on or after July 22, 1983 contribute at 625 percent Contributions required of employers are based upon an actuarial valuation For the fiscal year ended June 3, 2, the rate of employer contribution was 461 percent of covered payroll NOTE 8 Deferred Revenue The noncurrent portion of real estate taxes receivable is recorded as a deferred revenue until such time as it becomes available Program grants received prior to the incurrence of qualifying expenditures are recorded as deferred revenue

28 19WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 8 Deferred Revenue (Continued) The components of deferred revenue at June 3, 2 are as follows: Delinquent Taxes Receivable Other Deferred Revenue TOTAL $ 3,24, ,649 $ 3,338,212 NOTE 9 PostRetirement Health Care Benefits The School District provides postretirement health care benefits to Administrative, Instructional, Secretarial and Support personnel Administrative personnel who retire under the normal PSERS guidelines are covered to age 7 The School District pays 1% of the premium for the following coverage: group medical, which includes medical/surgical and major medical, vision and prescription drug for the retiree and their dependents In addition, the School District provides retirees with group term life insurance to age 7 in a principal amount equal to two or three times annual salary plus $1 5, and universal life insurance to age 7 in a principal amount equal to annual salary Instructional personnel who retire under the normal PSERS guidelines with at least 15 years of service and at least fifty years of age receive coverage to age 65 The School District will provide for 1% of the following coverage: group medical, which includes medical/surgical, and major medical and prescription coverage for the retirees Secretarial and Support personnel who retire under the normal PSERS guidelines with at least 15 years of service and at least fifty years of age receive coverage to age 65 The School District will provide for 1% of the following coverage: group medical, which includes medical/surgical and major medical coverage for the retirees The School District has funded $ 1,61,1 18 of this obligation with expendable available financial resources Therefore, accrued postretirement health care benefits of $1,61,118 is reflected as a liability in the General Fund The School District had an actuarial valuation performed As of July 1, 1996, the actuarial present value of expected future benefits was $9,546,579 This includes retirees, active employees eligible to retire, and active employees not yet eligible to retire At this time, the Government Accounting Standards Board (GASB) has not issued a statement concerning accounting for accruals of post employment benefits other than to require certain disclosures for other post employment benefits under GASB Statement No 12 The School District currently expenses post retirement benefits on a payasyougo basis in addition to accruing a portion of its liability, noted above, for current retirees The annual budget includes premium costs of the benefit programs for the projected retiree population during the twelve month period

29 2 WEST CHESTER AREA SCHOOL DISTRICT Notes to Financial Statements June 3, 2 NOTE 1 Accrued Compensated Absences School District employees who are required to work on a twelvemonth schedule are credited with vacation at rates which vary with length of service or job classification Vacation must be taken in the year subsequent to when it was earned If separation of service occurs in the year subsequent to earning, then the unused balance of what was earned in the prior year is paid at separation The liability at June 3, 2 represents vacation earned at that date that will be taken in the subsequent year The School District has funded this obligation with expendable available financial resources Therefore, accrued compensated absences of $544,34 is reflected as a liability in the General Fund NOTE 11 Accrued Severance Pay Administrative, Instructional, Secretarial and Support personnel that have completed at least fifteen years of credited School District service, that retire under the normal PSERS guidelines, receive severance pay in the form of compensation Administrative personnel receive $3 for each year of service in the District Instructional personnel receive $2 for each year of service in the District Secretarial and Support personnel receive $25 for each year of service in the District The School District has funded $427,597 of this obligation with expendable available financial resources Therefore, accrued severance pay of $427,597, is reflected as a liability in the General Fund Accrued severance pay not funded with current resources, which amounts to $2,423,53, is recorded in the General LongTerm Debt Account Group NOTE 12 SelfInsurance The School District selfinsures worker s compensation through the School District s Insurance Consortium The School District s Insurance Consortium is an association consisting of school districts, intermediate units, and vocationaltechnical schools of the Commonwealth of Pennsylvania The School District obtained a selfinsurance exemption from the Commonwealth of Pennsylvania, Department of Labor and Industry, Bureau of Worker s Compensation, which allows the School District to selfinsure workers compensation Each year the School District is required to deposit funds into the central fund The School District is then billed monthly for actual claims for the current year paid during the previous month up to the level of retention After the level of retention is reached, claim payments are made from the central fund At the end of each fiscal year, reserves are established or adjusted on all outstanding claims Funds in the central fund at the end of the fiscal year are not refunded Additionally, the School District self insures group dental, vision and prescription coverage The School District has accrued a three month value for potential claims under dental, vision and prescription coverage