dallastown area school district

Transcription

DALLASTOWN AREA SCHOOL
DISTRICT
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2012
700 New School Lane
Dallastown, PA 17313
DALLASTOWN AREA
SCHOOL DISTRICT
700 New School Lane, Dallastown, PA 17313
www.dallastown.net
Comprehensive Annual Financial Report
For the
Fiscal Year Ended June 30, 2012
Prepared by the Business Office
Miranda Hoefler-Weaver, CPA, MBA, PRSBO,
Director of Accounting Services
Donna Devlin, MBA, PRSBO, Business Manager
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Dallastown Area School District
For the Fiscal Year Ended June 30, 2012
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
2
Board of School Directors
15
District Administration
16
Consultants and Advisors
17
Dallastown Area School District Organization Chart
18
Certificates
19
FINANCIAL SECTION
Independent Auditor’s Report
22
Management’s Discussion and Analysis
24
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
50
Statement of Activities
52
Fund Financial Statements:
Balance Sheet - Governmental Funds
53
Reconciliation of the Governmental Funds Balance
Sheet to the Statement of Net Assets
54
Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds
55
Reconciliation of the Governmental Funds
Statement of Revenues, Expenditures and Changes
in Fund Balances to the Statement of Activities
56
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual General Fund
57
Statement of Net Assets - Proprietary
Fund - Food Service
59
TABLE OF CONTENTS
Statement of Revenues, Expenses and Changes in
Net Assets - Proprietary Fund - Food Service
60
Statement of Cash Flows - Proprietary
Fund - Food Service
61
Statement of Fiduciary Assets and Liabilities
62
Notes to Financial Statements
63
REQUIRED SUPPLEMENTARY INFORMATION
Required Supplementary Information - Other
Post-Employment Benefit Plan
95
SUPPLEMENTARY INFORMATION
General Fund
Schedules of Revenues and Other Financing Sources Budget to Actual
97
Schedules of Expenditures and Other Financing Uses Budget to Actual
99
Statement of Changes in Assets and Liabilities Fiduciary Fund - Student Activities Agency Fund
104
STATISTICAL SECTION
Net Assets by Component
107
Changes in Net Assets
109
Governmental Activities Tax Revenue by Source
113
Fund Balance of Governmental Funds
114
Changes in Fund Balances of Governmental Funds
115
TABLE OF CONTENTS
General Fund Revenues and Other Financing Sources
By Source
117
General Fund Expenditures and Other Financing Uses
By Function
119
General Fund Expenditures per Pupil
121
Assessed Value and Estimated Actual Value of Taxable
Property
122
Property Tax Rates - Direct and Overlapping
Governments
123
Principal Property Taxpayers
124
Property Tax Levies and Collections
125
Gross Principal Debt Outstanding
126
Ratios of Outstanding Debt by Type
127
Ratios of General Bonded Debt Outstanding
128
Direct and Overlapping Governmental Activities Debt
129
Legal Debt Margin Information
130
Demographic and Economic Statistics
131
Principal Employers
132
Dallastown Area Education Association Eligible Staff
133
Summary of Active Employees by Job Class
134
School Building Information
135
National School Lunch Program Free and Reduced Data
136
Miscellaneous Statistics
138
Enrollment Statistics and Projections
139
TABLE OF CONTENTS
Millage Rates of York County School Districts
140
Building Construction
141
SINGLE AUDIT SECTION
Independent Auditor’s Report on Internal Control over
Financial Reporting and on Compliance and Other
Matters Based on an Audit of the Financial Statements
Performed in Accordance with Government Auditing
Standards
143
Independent Auditor’s Report on Compliance with
Requirements that Could Have a Direct and Material
Effect on Each Major Program and on Internal Control
over Compliance in Accordance with OMB Circular A-133
145
Schedule of Findings and Questioned Costs
147
Schedule of Expenditures of Federal Awards
149
Notes to Schedule of Expenditures of Federal Awards
153
Summary Schedule of Prior Year’s Audit Findings
154
INTRODUCTORY SECTION
JUNE 30, 2012
1
DALLASTOWN AREA SCHOOL DISTRICT
700 New School Lane
Dallastown, PA 17313-9242
(717) 244-4021 Telephone
(717) 246-0597 Facsimile
December 18, 2012
To the Board of School Directors and the Citizens of the Dallastown Area School District:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) for Dallastown Area
School District, York County, Pennsylvania (the “District”) for the fiscal year ended June 30, 2012. The
District Business Office prepared this report. Responsibility for both accuracy and presented data and the
completeness and fairness of the presentation, including all disclosures, rests with management of the
District. We believe that the data as presented is accurate in all material respects. It is presented in a
manner designed to fairly set forth the financial position and results of operations of the District as
measured by the financial activity of its various funds. All disclosures that are necessary to enable the
reader to gain a clear understanding of the District’s financial affairs have been included.
Boyer and Ritter, Certified Public Accountants and Consultants, have issued an unqualified opinion on
the Dallastown Area School District’s financial statements for the year ended June 30, 2012. The
independent auditors report is located at the front of the financial section of this report.
Generally accepted accounting principles require that management provide a narrative introduction,
overview and analysis to accompany the basic financial statements in the form of Management’s
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The Dallastown Area School District’s MD&A can be found
immediately following the report of the independent auditors.
The CAFR is organized into four sections: introductory, financial, statistical and the single audit. The
introductory section includes this transmittal letter, organization of the governing board and
administration, the consultants and advisors to the District, and the organization chart.
The financial section contains an opinion of the independent auditors, the MD&A, basic financial
statements, required supplementary information and individual fund schedules. The statistical section
presents selected financial and demographic data, generally over a ten year time span, if available, and
helps the readers to understand trends and changes in the major activities of the District and the single
audit section details the Federal awards received by the District and the outcome of the compliance audit
preformed in accordance with Circular A-133 issued by the U.S. Office of Management and Budget.
The organization, form and contents of this CAFR, the accompanying financial statements, and the
statistical tables were prepared in accordance with the standards established by the Governmental
Accounting Standards Board (GASB), the Government Finance Officers Association (GFOA), the
International Association of School Business Officials (ASBO), the American Institute of Certified Public
Accountants (AICPA) and the Public School Code of 1949, as amended, of the Commonwealth of
Pennsylvania.
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Brief District History and a Profile of the Government
Dallastown, PA was named in honor of George M. Dallas who hailed from Philadelphia. He was the
Vice-President under the James K. Polk Administration from 1845-1849.
The Dallastown Area School District, incorporated in 1966, is located in York County, which is
considered south Central Pennsylvania. It currently occupies 52.5 square miles of the Susquehanna
Valley countryside with a population of approximately 40,000. The Dallastown Area School District is
located approximately 34 miles south of the state capital, Harrisburg, and approximately 50 miles from
Baltimore, Maryland, which makes the location a prime area for commuters. The District includes
Springfield Township, York Township and the Boroughs of Dallastown, Jacobus, Loganville and Yoe.
The first school building, a log structure, was built prior to 1834 on West Main Street. The doors of this
school were open only to children of wealthier classes due to the cost associated to attend the school
which was 12 cents per child.
A second building, a two story framed structure, was damaged by fire and replaced with a two-story brick
building. The two story brick building was then demolished to make room for a one story three roomed
school building in which the first class graduated from in 1898; there were eleven students in this class.
The Charles Street building, currently known as Dallastown Elementary, was opened in 1912, and
originally started out with four rooms. It started out as a fourth, fifth and sixth grade school but in the
school year 1913-1914, graduated to a high school building with Professor U.J. Daugherty serving as the
High School Principal until 1938. An attempt was made to increase coursework to meet state
requirements and in 1915, The State Department of Public Instruction, officially decreed that Dallastown
was classified as a first class high school. The traditional royal blue and white Dallastown colors date
back to this year, with blue a symbol of truth, loyalty, and courage, and white a symbol of purity.
During 1929-1930, additional classrooms, bathrooms and office space were added. The building was
enlarged again in 1941 to include additional classrooms and was deemed a Junior- Senior High School.
In 1945, additional land was purchased to add a playground to the building and a separate gymnasium and
cafeteria built were built in 1961.
York Township was built in 1949 with an addition added in 1953. This was prior to the incorporation of
Dallastown Area School District. Addition renovations were completed in 1993.
During the early 1950’s, the York County Plan reorganized the school districts, placing the school
districts of the boroughs of Dallastown, Loganville, and Yoe, as well as, Springfield and York Township
in one central administration area. In September 1952, the school boards of the districts agreed to adopt
Articles of Agreement as a basis for Joint Operation which took effect during the 1953-1954 school year
and included a High School and four elementary attendance areas which were located in Dallastown,
Loganville-Springfield, Yoe and York Township.
Loganville-Springfield was constructed in 1953, prior to the incorporation of Dallastown Area School
District. Subsequently, an addition was completed in 1971.
Effective with the 1958-1959 school year; the school districts of Loganville-Springfield and York
Township became the York Imperial Union School District. Accordingly, the Dallastown Area School
System, which operated all of the schools in the area, grades 1 to 12, was composed of three member
districts: Dallastown Borough, Yoe Borough and York Imperial Union.
Realizing an immediate need for a building for secondary school purposes, a site was selected and
construction of a 167,262 square foot building began. On September 1, 1958, the doors of the new
Dallastown Area Junior-High School opened. An enrollment of 1,158 pupils walked the hallways of the
secondary campus, grades 7 through 12. Renovations took place in 1975 and 2000 and this building is
currently known as the High School.
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Due to increasing enrollment, in 1963 an additional wing for seventh and eight grade students was added
with renovations completed in 1969 and 2000. This building is currently known as the Middle School.
Secondary enrollment today totals 2,820 students, with 1,862 enrolled in the high school and 958 at the
Middle School.
Ore Valley Elementary started construction during 1961 and opened for the 1962-1963 school year.
Renovations took place during 1993.
During the 1965-1966 school year, Leaders Heights elementary was opened. During this momentous
year, the members of the Dallastown Borough, Yoe, and York Imperial school boards decided to become
one district and on July 1, 1966, became known as Dallastown Area School District.
The District has five elementary schools that educate students from kindergarten through third grade, one
intermediate school that educates students from fourth through sixth grade, one middle school which
educates children in seventh and eighth grade and one high school educating children in grades ninth
through twelfth.
The construction of the Intermediate School was completed during the summer of 2010 school opened for
the 2010-2011 school year which allowed the elementary schools that were over capacity to return to a
less than 100% student per square foot ratio.
The District is a second class district organized under state law. The District is governed by a nine
member Board of School Directors (the “Board”), whom are elected to four year terms. The
Superintendent is the chief administrative officer of the District with the overall responsibility for all
aspects of operation. The Business Manager is responsible for budget and financial operations.
The mission of the Board of School Directors and the staff of the Dallastown Area School District, in
partnership with family and community, is to provide a safe and appropriate student-centered learning
environment that will enable each student to become a successful, responsible, and contributing citizen of
this changing world.
The District provides a comprehensive education curriculum from kindergarten through grades twelve,
including regular instruction, special instruction, vocation educational, alternative educational and
necessary support services. Students are also encouraged to participate in school-sponsored extracurricular activities to include interscholastic athletics, clubs and organizations at both the elementary and
secondary levels.
Dallastown Area School District launched the Dallastown Area Cyber Academy for grades seventh
through twelfth. This program is a comprehensive curriculum delivered in an on-line format designed as
an alternative for families interested in another learning option for their students or for current cyber
charter students who reside in the Dallastown Area School District. Students who graduate from
Dallastown Area Cyber Academy receive a Dallastown Area Cyber Academy diploma and students
enrolled will have access to the district’s extracurricular activities and interscholastic athletic options.
Dallastown Are Cyber Academy educated 20 students during the 2011-2012 school year.
For the 2012-2013 school year, the Dallastown Area Cyber Academy increased the enrollment
possibilities by opening the program up to grades fourth through sixth.
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The District also maintains the STRIVE program, which is an Alternative Education Program. The
STRIVE program provides a quality educational option for students in grades seventh through twelfth
whom the traditional school setting is not currently effective. This program assists students in developing
the necessary skills to successfully return to the regular school setting. 56 students participated in the
STRIVE program during the 2011-2012 school year.
District students in grades ninth through twelfth may attend the York County School of Technology
(YCST) which is a separate legal entity serving fourteen districts in York County through a joint venture
agreement. The District participants in the York County School of Technology Authority that was
formed to provide YCST with the ability to acquire land and construct facilities for the YCST programs.
The District also maintains a partnership with the York Adams Academy (YAA). The YAA mission is to
give eligible students the opportunity to obtain a high school diploma.7 students were educated by the
YAA during 2011-2012.
During 2011-2012, the District educated 6,029 children in eight buildings with 7 additional students being
educated at the York Adams Academy which is a less than a 1% decrease from 2010-2011.
The District staff, both part-time and full-time, include approximately: 401 teachers, 16 guidance
counselors, 6 librarians, 4 nurses, 172 support staff to include administrative and classroom aids, 25
Administrators, 65 custodians and maintenance staff, 1 crossing guards and 116 athletic, coaching, pool
and intramural personnel.
Economic conditions and local economy
Dallastown Area School District is located in York County, PA. According to the York County Economic
Development Corporation, it is currently the third fastest growing county in new home construction and
population.
York County is grounded in a diverse manufacturing based economy that remains steady despite drastic
national fluctuations, according to the York County Economic Development Corporation (YCEDC).
Some of these manufacturing firms include Starbucks, Johnson Controls, Harley-Davidson, and York
Barbell. York County ranks as the sixth most significant county in the state. On top of manufacturing,
the following industries are doing well in York County, to include, life sciences, technology and
information systems, logistics and transportation and agriculture and food processing.
Dallastown Area School District is listed as the 26th largest employer of York County according to
YCEDC.
Over the last ten years, York County has consistently been less than the state unemployment average. The
State average since 2001 is approximately 5.9% while York County’s is 5.4%.
York County did see a decrease of 9% in the unemployment rate from 2010 to 2011, which is indicative
of the recovering economy. The unemployment rate was 8.6% for 2010, the highest in over 10 years.
The Per Capita Personal Income for York County for 2010 was $36,427, a 3% increase over the 20009
Per Capital Personal Income of $35,490. The increase for York County was consistent with the states,
which saw an increase of 3% as well.
In response to the long-term financial impact that ACT 1 legislation placed on the District and the millage
rate cap (known as the index) that is has been placed on the District, the Board of School Directors along
with management, prudently decided to commit and assign funds in excess of the 8% rule for future
expenditures.
5
Part of the fund balance approval included usage of $1.045 million to assist in balancing the budget for
fiscal year ended 2013. This usage, along with service and supply cuts, allowed the District to keep the
milage rate the same for fiscal year ended 2013 as it was for fiscal year ended 2011 and 2012.
Refer to the MD&A for additional details regarding the General Fund classifications.
Due to implementation of GASB 54 - Fund Balance Reporting and Governmental Fund Type Definitions
during fiscal year ended 2011, fund balance classifications on the “Fund Balances of Governmental
Funds” schedule located in the Statistical Section were updated according to the principals applied during
the current fiscal year in order to present comparable data.
On behalf of the YCST, during 2010-2011, the Dallastown Area School District Board of School
Directors agreed to assist in obtaining funding for the replacement of the roof through issuing General
Obligation Bonds, Series B of 2010. District management felt it was their “fiduciary responsibility” to
assist in keeping the costs of construction down by obtaining a lower interest rate. The lower interest rate
was obtainable due to the “AA” rating issued to the district from Standards & Poor’s. The debt service
payments on these bonds will be paid by the member districts who utilize the services of the YCST.
Recent Legislation
The American Recovery and Reinvestment Act (ARRA) was signed into law by President Obama on
February 17, 2009.
The goal of the ARRA was to assist in boosting the economy by spending funds quickly to save and
create jobs and to raise student achievement through school improvement and reform while ensuring
transparency, reporting and accountability of the funds. This was done by investing the ARRA funds
thoughtfully with the understanding that this is a temporary influx of money that should not be used to
pay for operating expenses that cannot be included in the entity’s budget at a later date.
Dallastown’s total funding was $3.192 million, of which $1.884 thousand was State Fiscal Stabilization
Funds (SFSF) or Basic Education Funding (BEF), $249 thousand was additional Title I, and $1.059
million was additional IDEA.
The ARRA funds were utilized to increase instruction time with regards to full-day kindergarten, aided in
the reduction of debt service, assisted with payment of special education costs from Lincoln Intermediate
Unit #12, used to purchase technology, classroom supplies, equipment and infrastructure, as well as,
assisted in the cost of additional instruction from specialists.
For 2010-2011, Dallastown received $930 thousand State Fiscal Stabilization Funds (SFSF) or Basic
Education Funding (BEF) which was used in the reduction of debt service. The District also spent the
remaining IDEA funds during 2010-2011 and 2011-2012 not spend during 2009-2010 on IDEA academic
initiatives.
The Pension Reform Legislation Act of 2010-120 (the Act) was signed into law by the Governor on
November 23, 2010. The purpose of the Act was to assist in reducing the funding issue that PSERS is
currently facing which in turn will help keep the employer contribution rate from increasing to
unmanageable levels. The Act included setting employer contribution rate caps, changing the actuarial
funding methodology and the implementation of additional benefit classes for new members with reduced
benefits. The Act took effect July 1, 2011.
6
Act 32 was signed into law by the Governor on July 2, 2008. This Act greatly changes the Local Tax
Enabling Act by restructuring of earned income tax agencies into county-wide tax collection districts,
creation of tax collection committees and requirement of uniform policies, procedures and forms.
This Act will reduce the number of collectors in Pennsylvania from 560 to no more than 69. It is
anticipated that the new regulations and standards will increase tax revenues for all municipalities and
school districts. For fiscal year 2011-2012, Dallastown received increased tax revenues of $721 thousand
above what was expected due to the implementation of Act 32. It is expected that the District will have
additional EIT revenues of approximately $300 thousand for fiscal year 2012-2013 as well.
Implementation deadlines started effective September 15, 2009, with full implementation of Act 32 on
January 1, 2012.
Major Initiatives
During 2011-2012, the District put into practice the Cognitive Abilities® Test. It measures both general
and specific cognitive abilities in verbal, quantitative, and non-verbal areas. Second graders participated
in this testing with the results being reported to the students’ parents.
During 2010-2011, Dallastown implemented full day kindergarten in all five of the elementary schools
and began the implementation of the Keystone Exams.
Implementation of the Keystone Exams will continue being phased in until 2016-2017.
For 2012-2013, the Algebra I, Literature, and Biology Keystone exams will replace the 11 th grade PSSA
tests in math, reading, and science for the purposes of fulfilling No Child Left Behind (NCLB)/Adequate
Yearly Progress (AYP) requirement.
For years ended 2014 through 2016, students in grades 8th through 11th who are enrolled in specific
courses will take the Keystone exams with the score counting towards the graduation requirement.
For 2014-2015, Composition will be added as an exam for field test purposes only and for 2015-2016,
Civics and Government will be added as an exam for field test purposes only.
Beginning with the class of 2016-2017, students will need to demonstrate proficiency in two English
courses, two math courses, one science and one social studies course.
The Keystone Exams will be similar to the current final exams used and will be subject-specific
assessments that students take at the end of a course. Students will be able to retake the assessment all
together or in parts and students who do not test well can complete a project-based alternative assessment.
During the 2008-2009 school year the Strategic Plan for years 2008-2009 through 2013-2014, was
submitted and approved by PDE. The Strategic Plan includes statements of mission, vision, and beliefs
that were developed by input from many school-community members. The goals are crafted with the
desire that our students are equipped for a future in a complex world of changing societal, economic,
technological, and political trends and pressures. The Strategic Plan was updated in January 2011 to
include the changes necessary for inclusion of the Intermediate School.
7
Developing the District's Strategic Plan offers participants a unique opportunity to assess the attainment
of the current District goals, to collect data about the future needs, and then to craft the future. Dallastown
Area School District is proud of its past and is excited about its future. The District motto guides all
decisions: "Dedication to Excellence." Through the Strategic Plan development, we examine our past,
affirm our traditions, and prepare for the future. The District prides itself on hiring excellent professionals
and staff members, implements a rigorous curriculum supported by a state-of-the-art technology system,
exercise prudent fiscal management, and maintain excellent facilities, despite the challenges of growth.
The Dallastown Area School District faculty, staff, and administration have been focused on goals that
are relevant to increasing student achievement and providing relevant staff development, that are
grounded in data, and that are focused and measureable. Goals are focused on articulation, training, and
coordination of a K-12 curriculum and instructional program; developing and revising curriculum maps
for courses, areas, and grades; data management and analysis; attracting and retaining a highly qualified
teaching staff and administrators; integrating technology; developing a wellness policy and guidelines;
and, implementing state and federal grants for instructional enhancements.
Dallastown Area School District's goals are aligned with state goals for improvement. Under the No Child
Left Behind Act, certain goals are prescribed for school districts in the areas of student achievement and
proficiency, graduation rate, performance of total school populations and subgroups, attendance, and
participation in testing. The Pennsylvania System of State Assessment tests provide the framework for
assessing the Pennsylvania Academic Standards in each academic area.
The faculty, staff, and administration are focused on continuing to meet and exceed the state benchmarks
in reading, mathematics, writing, graduation rate, and attendance. DASD's student achievement has
shown improvement within subgroups and/or as a total population each year. To assist each student in
meeting these benchmarks, interventions, resource teachers, and supplemental approaches are in use.
Student achievement and performance data are analyzed and used to determine revisions to the
instructional program. These data are examined at team meetings, faculty meetings, grade level
discussions, and at professional development days. Tools utilized to examine data are contained within
programs such as Study Island, Acellus, Plato, and others; are secured from PDE (such as PVAAS and
eMetric); and, district developed data charts. Cognitive Abilities® Test and the Measures of Academic
ProgressTM tests have been added to the elementary program in second grade to assist with district
benchmark assessments. These tests have replaced the Terra Nova InView tests that were previously
used.
Students who are not meeting the standards or who are achieving below grade level receive specifically
designed interventions and resources. At the middle and high school levels, interventions may also
include participation in courses designed to accomplish increasing students' understanding of and
proficiency with the state standards. Special education resources are available to those who meet
eligibility requirements, as are English Language Learning, Reading Recovery, and other interventions as
appropriate.
The following are a list of goals as detailed in the Strategic Plan:
Curricular revisions to include educational technology enhancements, a phase-in of Full Day
Kindergarten programs, expanded World Language, science, and mathematics programs, revised
social studies curriculum, redesigning of the gifted education program, curriculum mapping and
teacher professional development.
Diversity Awareness initiatives’ through a Committee established in 2008. Committee members
intend to examine both quantitative and qualitative data from various district and community
sources in forming goals, strategies, and activities.
Graduate rate will meet an 80% threshold and/or show growth.
Implementation of DHS' Middle States Evaluation Goals.
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One hundred (100%) of all students will be proficient in Mathematics, as measured by the annual
state-wide PSSA assessments.
One hundred percent (100%) of all students will be proficient in Reading, as measured by the
annual state-wide PSSA assessments
Restructuring K-8 Education.
Student attendance at the elementary schools, intermediate school and middle school will meet a
90% threshold and/or show growth.
At least 95% of eligible students will participate in required state-wide assessments.
Additional technology systems and structures to include administrative and management software
and support to enhance productivity, increased communications and access for the public and
parents, continuing to enhance stable and secure Wide Area Network and implementation of a
Virtual Private Network to enhance information access through Technology.
In connection with the Strategic Plan, there are initiatives at all grade levels that positivity effecting
student achievement. Funded through the state’s PA Pact/Accountability Block Grant, the full day
kindergarten program continues to provide assistance to a target population of students. With support
from the federal government’s Title I program, the elementary program includes a transitional first grade
classroom and Reading Recovery strategies are implemented for first graders needing assistance in
learning to read. Through district funding, middle and high school students receive additional intensive
remediation or intervention instruction to increase achievement levels for state standards. Remediation
takes the form of assistance through the Study Island software at Dallastown Middle School, the Plato
Learning Labs on the high school campus, and ongoing tutoring and special assistance provided by
teachers and teacher assistants at all grade levels.
The emphasis on increasing student achievement is not limited to any one grade level. Teachers at various
grade levels are piloting the use of many instructional approaches and methods to increase spelling
achievement (such as Word Study in the elementary and middle schools), reading comprehension (such as
Reading Apprenticeship in middle and high school classes), and math and reading skills (such as Study
Island at the middle school, and the Acellus Learning Program and the Compass Learning Lab supplemented by dual enrollment opportunities at local colleges and universities for approved students at
the high school level).
For the middle school’s Algebra Initiative, course sequences and content have been established, and the
program is ready for implementation. The goal of the Initiative is to increase the number of students
successfully completing Algebra I by the end of eighth grade, with a goal of 80% completion rate. As a
result, the high school is examining additional math courses to extend students’ academic programs with
higher level courses.
The District is pleased to report that Dallastown students performed above the Pennsylvania average on
all Pennsylvania System of School Assessment (PSSA) tests for 2011-2012. Below are the result
highlights:
85.2% of Dallastown students met or exceeded proficiency in Mathematics, compared to 75.6%
of Pennsylvania students.
PSSA results for Reading show that 84.7% of Dallastown students met or exceeded proficiency
compared to 72% of Pennsylvania students.
Writing PSSA results indicate that 85.5% of Dallastown students met or exceeded proficiency
compared to 75.5% of Pennsylvania students.
Dallastown students displayed 74.5% proficiency in the area of science as compared to 65.2% of
Pennsylvania students.
9
Internal control Structure
The objective of a system of internal controls is to provide reasonable, but not absolute, assurance that the
District’s assets are properly protected and to ensure that financial transactions, which are relied on in the
preparation of the financial reports, are accurately reported. The concept of reasonable assurance
recognizes that the cost of the system on internal controls should not exceed the benefits that are likely to
be derived. It also recognizes that the evaluation of these factors required management to make
reasonable estimates and judgments. The Board of School Directors and management have established
policies and procedures to effectively implement and maintain a system of internal accounting controls to
safeguard the District’s financial integrity. The Board of School Directors, management and the
independent auditors continually evaluate these policies and procedures to insure the adequacy and
effectiveness of the internal control structure.
Also, the Pennsylvania Department of the Auditor General examines the records of school districts,
intermediate units, and area vocational-technical schools. Auditors establish whether school districts
received the state subsidies and reimbursements to which they were entitled, and whether state laws and
regulations were followed. They also determine whether teachers and administrators are properly
certified for the positions they hold. In September 2012, the Auditor General concluded the audit for
years ended June 30, 2009 and June 30, 2010, however, results have not yet been released.
Budgetary Controls
The District budgets and expends funds following Pennsylvania Public School Code and according to
procedures mandated by the Pennsylvania Department of Education. The District General Fund budget
must be approved prior to the start of the fiscal year on a modified accrual basis of accounting. The
Board of School Directors is required to make this budget available for public inspection at least twenty
days prior to its adoption. The approved budget is required to be filed with the Pennsylvania Department
of Education within twenty days of approval.
The Board of School Directors may, during any fiscal year, make additional appropriations or increase
existing appropriations to meet emergencies. The Board of School Directors shall also have power to
authorize the transfer of any unspent budget balances from one budget line item to another, but such
action shall be taken only during the last nine months of the fiscal year.
The budgeting cycle starts each November, with the budgets worksheets being distributed to the
leadership team. Once the budgets are completed, the budgets are reviewed by the Superintendent and the
Business Manager. The budget data is compiled and presented for review by the Board of School
Directors and citizens at public meetings. Preliminary adoption takes place in February with final
adoption in May or June.
Once approved, the budget is managed through a decentralized accounting system which is monitored by
administrators throughout the year. The administrators have access to review the budgets they are
responsible for at any time with use of the accounting software.
In order to insure the budget is not overspent, a number of procedures were put in place. When a
requisition is entered into the system, it will alert the individual completing the requisition if the account
is over budget. Before a purchase order is signed, the administrator in charge of that budget is made
aware that the account is over budget. The administrator then instructs the Business Office which account
to transfer the funds from in order to avoid the account going into the red. The budgetary transfers are
then presented to Board of School Directors for approval.
10
Cash Management
The District’s main depository as of June 30, 2012 was Susquehanna Bancshares, Inc. Each year, the
Board of School Directors approves a list of depositories to investment with as cash flow allows. A cash
flow estimate is preformed monthly to determine the short-term and long-term financial needs of the
District. If the District is able to invest funds, the approved depositories are contacted by either the
Business Manager or the Director of Accounting Services for terms and yields. The data is then reviewed
and a financial institution is chosen based on the current collateral held, diversification of the funds, the
terms and the yield.
All real estate taxes are deposited into individual tax collector accounts at Susquehanna Bancshares and
then transferred into the District’s investment account to maximize returns on District funds. The District
only invests in authorized types of temporary investments for school entities as specified by the
Pennsylvania School Code. Please see Note 2 of the Basic Financial Statements for further detail
regarding the District’s cash and investments.
The District also utilizes the services of Lawlace Consulting LLC. The District consults with Lawlace
Consulting LLC to ensure the safekeeping of District funds which includes, but is not limited to
monthly/quarterly collateral review and credit analysis review of financial institutions that hold District
funds.
Risk Management
The District utilizes The Glatfelter Agency as the broker of record for the majority of the insurance
policies held by the District.
The District’s business package includes property insurance, special property coverage, business
interruption, crime insurance, commercial general liability and business auto which are written with
Indemnity Insurance Company of North America. The 2011-2012 premiums for the business package
and equipment protection are $132,657, an 8% decrease over 2010-2011.
The total insured property value for 2011-2012 is $239,111,695, which is subject to a $5 thousand
deductible per property loss. The value of the district’s property increased 2% over 2010-2011.
The property insurance is written on a comprehensive basis including the following highlights:
Earthquake has a blanket limit of $3 million subject to $50 thousand deductible
Flood coverage has a limit of $1 million subject to $50 thousand deductible
Building Ordinance Coverage has a limit of $5 million
The District also purchases special property coverage for Marine Corps Junior ROTC equipment and
musical equipment. Each property loss is subject to a deductible of $500 with limits of $150 thousand
and $250 thousand, respectively. This insurance is an extension of the above mentioned property
insurance and covers said items when they are located on or off District premises.
The business interruption insurance reimburses the District for income due to a loss resulting from
interruption caused by destruction of property and provides extra coverage for additional costs incurred
during a loss. The business interruption and extra expense coverage limit is $1.2 million with an
additional $500 thousand provided by PSBA Property Extension Endorsement for a total of $1.7 million.
11
The District’s equipment protection insurance is written with Indemnity Insurance Company of North
America. This type of insurance provides protection for the explosion, breakdown, and arcing of
designated objects that are standard exclusions under the property policy. This insurance also provides
protection for equipment loss involving damage to goods in the District’s care, custody, and control that
are excluded under the liability policy. The coverage includes combined property damage, business
interruption and extra expense with a value limit of the property insured amount. This insurance is
subject to a deductible of $5 thousand.
Crime insurance covers loss of cash, checks and other negotiable instruments which are specifically
excluded under Business Property insurance. These items can be lost due to burglary, robbery, fire or
embezzlement. This coverage includes employee dishonesty, employee forgery, and money and
securities, with limits of $200 thousand, $10 thousand, and $50 thousand, respectively. All three
coverage’s are subject to deductibles of $500. Also, included in this coverage is $50 thousand employee
dishonesty coverage for all PTO/PTA/Booster clubs and organizations sanctioned by the School Board.
The commercial general liability policy agrees to pay on behalf of the insured all sums to which the
insured shall become legally obligated to pay from occurrences resulting in bodily injury or property
damage which occur at the insured’s premises or due to operations at or away from the insured’s
premises.
The policy is written with a $1 million limit per occurrence and a $3 million dollar aggregate limit.
Personal and advertising injury limits are $1 million, fire damage liability is $300 thousand and medical
expenses per person, excluding students, but including volunteers is limited to $15 thousand. Coverage
provides for Professional Liability, Employee Benefits Liability and Multi-media Professional Liability.
This policy also includes Board sanctioned PTO/PTA and Booster organizations as insured.
The business automobile policy protects the insured if held legally liable for bodily injury to others and/or
damages to property of others caused by an accident arising out of the ownership, maintenance, or use of
the automobile. The limits of liability are $1 million per occurrence and includes coverages for all
owned, non-owned and lease vehicles. As another risk management measure to ensure safety of the
students, the district reviews all motor vehicles records annually for those that drive on behalf of the
district.
The District purchases Terrorism coverage that applies to property, general liability and autos lines of
business.
Volunteer accident coverage is purchased to cover all unpaid volunteers while they are providing services
to the District. This coverage pays without regards to other coverage the volunteer may have and covers
$5 thousand of medical expenses, $500 of dental expenses and is subject to a small deductible of $25.
The premium for 2011-2012 is $1,275, which is no increase over 2010-2011.
The District’s School Leaders Legal Liability (SLLL) coverage is written with School Boards Insurance
Co. of PA through the Pennsylvania School Boards Association (PSBA) Insurance Trust program. This
insurance provides coverage against wrongful acts which might include actual or alleged errors,
omissions, misleading statements, and neglect or breach of duty on the part of the Board of Directors and
other insured persons.
It also covers Employment practices liability insurance which is insurance that provides coverage for
claims arising out of employment practices.
12
SLLL coverage is subject to a deductible of $10 thousand with a $1 million limit. For non-monetary
claims, the coverage includes up to $125 thousand per claim with a $250 thousand limit per policy period.
The premium for 2011-2012 is $35,291, which is a 16% increase over 2010-2011. The higher premium is
due to an increase in loss frequency.
The District’s Commercial Umbrella Liability Insurance coverage is written with Old Republic Insurance
Company. The function of this coverage is to provide additional liability coverage above the other
liability policies in place. This type of insurance also provides broader liability coverage subject to
certain retention levels and policy exclusions where no other insurance exists. This policy is excess over
the general liability, auto, employers’ liability and school leaders’ coverage. The policy is written at a
limit of $5 million per occurrence with a $5 million aggregate. The premium for 2011-2012 is $8,080,
which is a 17% decrease over 2010-2011.
The District’s Workers Compensation coverage is written with PMA Insurance Company. The rate is
based on the District’s anticipated payroll for the fiscal year and the experience mod or claims history.
The District maintains a safety committee charged to assist in mitigating risk. The safety committee also
reduces the workers compensation premium by 5% for 2011-2012.
The premium for 2011-2012 is $191,186, a 13% decrease over the 2010-2011 premium. The 13%
premium decrease is due primarily to the decrease in the experience mod. The experience mod decreased
15% from 1.04 in 2010-2011 to .881 in 2011-2012.
The District’s Foreign Coverage is written by ACE American Insurance Company. It covers all Officers,
Directors and Employees of Dallastown Area School District while travelling worldwide, except for
certain countries named within the policy. The Foreign Coverage includes Commercial General Liability,
Contingent Auto Liability and Commercial Property/Business Income, Accidental Death and
Dismemberment and Medical, as well as, Kidnap and Extortion Coverage. It also includes emergency
medical aid and travel assistance. The premium for 2011-2012 is $3,353, which is no increase over 20102011.
The District maintains student accident insurance for all students participating in interscholastic sports.
Parents and/or guardians have the option to purchase additional insurance for their children. For schooltime only coverage it is $22 a child and for 24-hour coverage it is $88 a child.
The District also provides health insurance benefits to employees as specified in negotiated agreements
though commercial insurance programs. For the 2011-2012 school year; the District’s medical carrier is
Capital Blue Cross and the District’s dental carrier is United Concordia.
Please see Note 13 of the Basic Financial Statements for additional detail regarding the District’s risk
management.
Independent Audit
The District’s statements are audited annually by a firm of independent certified public accountants that
conducts a comprehensive audit of the District’s financial affairs. The Board of School Directors has
retained Boyer & Ritter, Certified Public Accountants and Consultants, to complete the audit of the
financial position and results of its operations and cash flow of its business-type activities in accordance
with audit standards generally accepted in the United States and with Governmental Auditing Standards
for the Year Ended June 30, 2012. The auditor’s unqualified opinion rendered on the District’s basic
financial statements is included in the financial section of this Comprehensive Annual Report.
13
BOARD OF SCHOOL DIRECTORS
June 30, 2012
Kenneth (Butch) A. Potter, Jr.
Ronald J. Blevins
Ronald E. Dyer, Ed.D.
Sue A. Heistand
Margaret F. Ibex
Donald E. Jasmann
William A. Lytle
Michael D. Noll, Jr.
Kristen Phillips-Hill
Lauren L. Rock
President
Vice-President
Superintendent of Schools
Member
Member
Member
Member
Member
Member
Member
15
DISTRICT ADMINISTRATION
June 30, 2012
District-wide
Ronald E. Dyer, Ed.D.
Donna M. Devlin, MBA, PRSBO
Miranda J. Hoefler-Weaver, CPA, MBA, PRSBO
Jeanne Pocalyko
Susan A. Brousseau
Sandy K. Ness
Scott Shirey
Jason N. Harrison
Beth H. Deitz
Duane A. Bahn
John G. Sanford
Superintendent
Business Manager
Director of Accounting Services
Director of Human Resources
Director of Special Education
Assistant Director of Special Education
Coordinator of Curriculum and Federal Programs
Director of Information Systems and Technology
Database Manager
Director of Buildings & Grounds
Assistant Director of Buildings & Grounds
Building Level
Dallastown Area High School
Alan L. Fauth, Ed.D.
Erin M. Heffler
Kevin A. Molin
Stanley T. Weinstein
Principal
Assistant Principal
Assistant Principal
Assistant Principal
Dallastown Area Middle School
Joshua A. Doll, Ed.D.
Sue E. Cathcart, Ed.D.
Principal
Assistant Principal
Dallastown Intermediate School
Paula R. March
Alison R. Roperti
Faithe A. Rotz
Principal
Community Principal - Red
Community Principal - Yelllow
Dallastown Elementary
Charles E. Patterson
Principal
Leaders Heights Elementary
Charles E. Patterson
Principal
Loganville-Springfield Elementary
Scott A. Carl
Principal
Ore Valley Elementary
Greg W. Anderson
Principal
York Township Elementary
Stephanie A. Ferree
Principal
Alternative Education and Cyber Academy
Wayne P. Senft, Ed.D.
Program Director
16
CONSULTANTS AND ADVISORS
June 30, 2012
AUDIT FIRM
Boyer & Ritter, CPAs
211 House Avenue
PO Box 8300
Camp Hill, PA 17001
ATTORNEY
CGA Law Firm
135 North George Street
York, PA 17401
FISCAL AGENT
RBC Dain Rauscher
One Logan Square, 17th floor
130 North 18th Street
Philadelphia, PA 19103
OFFICIAL DEPOSITORY
Susquehanna Bancshares, Inc.
26 North Cedar Street
PO Box 1000
Litiz, PA 17543
ARCHITECTS
Crabtree, Rorhbaugh & Associates
Suite 800
20 North Market Street
Harrisburg, PA 17101
17
DALLASTOWN AREA SCHOOL DISTRICT ORGANIZATION CHART
Board of School
Directors
Superintendent
Executive Secretary,
Board Secretary &
Open Records Officer
Business
Manager/Board
Treasurer
Director of
Accounting Services
Assistant
Superintendent
Coordinator of
Curriculum and
Federal Programs
Director of Buildings
& Grounds
Business Office Staff
Assistant Director of
Buildings & Grounds
Transportation/Child
Accounting
Central Registrar
Custodial Staff
Food Services
Director of Human
Resources
Secretary
Secretary
Director of Information
Systems and Technology
Database Manager
Tech Support
Specialists/Staff
Secretaty to the
Assistant
Superintendent
18
Director of Special
Education
Principals
Human Resources
Coordinator
Assistant Director of
Special Education
Assistant/Community
Principals
Benefits Specialist
Secretary
Professional Staff
Support Staff
19
20
FINANCIAL SECTION
JUNE 30, 2012
21
INDEPENDENT AUDITOR'S REPORT
Dallastown, Pennsylvania
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Dallastown Area School
District, as of and for the year ended June 30, 2012, which collectively comprise the Dallastown Area
School District’s basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the Dallastown Area School District's management. Our responsibility is to
express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the Dallastown Area School District’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall, financial statement presentation. We believe our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of Dallastown Area School District, as of June 30, 2012,
and the respective changes in financial position and cash flows, where applicable, thereof and the
respective budgetary comparison for the General Fund for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated November 26,
2012, on our consideration of Dallastown Area School District’s internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
Accounting principles generally accepted in the United States of America, require that the Management’s
Discussion and Analysis on pages 24 through 49 and the Required Supplementary Information on page 95
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Government Accounting Standards Board who considers it
to be an essential part of the financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management’s response to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express and opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Dallastown Area School District’s basic financial statements. The Statement of Changes in
Assets and Liabilities - Fiduciary Fund - Student Activities Agency Fund, and the Schedules of Revenues
and Other Financing Sources - Budget to Actual, and Schedules of Expenditures and Other Financing
Uses - Budget to Actual of the General Fund, as listed in the table of contents as Supplementary
Information are presented for purposes of additional analysis and are not required parts of the basic
financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for
purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit
of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to
the basic financial statements taken as a whole.
Camp Hill, Pennsylvania
November 26, 2012
23
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2012
The Dallastown Area School District’s management discussion and analysis provides an overview of the District’s
financial performance for fiscal years ended on June 30, 2012 and June 30, 2011. The intent of the Management
Discussion and Analysis (MDA) is to look at the school district’s financial performance as a whole. Please read it
in conjunction with the District’s financial statements and notes to the financial statements, which immediately
follows this section.
The MDA is a component of the new reporting model specified in the Governmental Accounting Standards Board
(GASB) Statement No. 34 - Basic Financial Statements - and Management’s Discussion and Analysis - for State
and Local Governments issued in June 1999.
The Dallastown Area School District adopted GASB Statement No. 34 for fiscal year ended 2003.
The Dallastown Area School District also adopted GASB 54 - Fund Balance Reporting and Governmental Fund
Type Definitions for fiscal year ended 2011.
FINANCIAL HIGHLIGHTS
For fiscal year ended 2012, the Board of School Directors adopted a balanced General Fund budget with the
utilization of $2.544 million of fund balance. The millage rate remained the same for 2012 as it was for 2011,
which is 22.26. The actual results of operation showed that budgeted expenditures were approximately 2% less
than budget and that budgeted revenues were approximately 1% over budget.
At June 30, 2012, the Governmental Activities total net assets were $51.087 million of which $9.404 million were
unrestricted and available to meet the School District’s ongoing obligations to employees and creditors. This
amount indicates that the School District has a strong financial condition.
The Governmental Activities total net assets increased $1.253 million from $49.834 million in 2011 to $51.087
million in 2012. Refer to the section Financial Analysis of the District as a Whole for explanations regarding the
net asset increase.
At June 30, 2012, the total fund balance for the General Fund was $13.358 million. Of the $13.358 million,
$674 thousand was allocated as nonspendable due to it representing the amount of prepaids on the balance sheet.
The prepaids account is comprised of medical and dental health insurance premiums paid in advance.Total funds
in the amount of $4.342 million were committed as health insurance and PSERS reserves and $39 thousand was
committed for various high school projects. $1.045 million was assigned for 2012-2013 budget utilization to
assist in eliminating the need for a millage increase and $57 thousand was assigned for athletic fund activities.
The remaining $7.201 million is unassigned and represents 8% of the General Fund budget for the year ended
2013.
24
JUNE 30, 2012
USING THE ANNUAL FINANCIAL REPORT
This annual report consists of three parts - management’s discussion and analysis, the basic financial statements,
and the required supplementary information. The basic financial statements include two kinds of statements that
present different perspectives of the District:
The first two basic financial statements are government-wide financial statements that provide both short-term and
long-term information about the District’s overall financial status.
The remaining basic financial statements are fund financial statements that focus on individual parts of the
District, reporting the District’s operations in more detail than the government-wide statements. The governmental
statements tell how general School District services were financed in the short-term as well as what remains for
future spending. Property fund statements offer short-term and long-term financial information about the
activities that the School District operates like a business. For Dallastown, this is the Food Service Fund.
Fiduciary fund statements provide information about financial relationships where the School District acts solely
as the trustee or agent for the benefit of others such as the Middle School and High School Student Activity Funds.
The financial statements also include notes that explain certain data in the statements and provide more
comprehensive information.
Figure A-1 shows how the required parts of the Financial Section are arranged and relate to one and other:
Figure A-1
Required Components of Dallastown Area School District's Financial Report
Management's
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-Wide
Financial Statements
Basic Fund
Financial
Statements
Notes to
Financial
Statements
25
JUNE 30, 2012
Figure A-2 summarizes the major features of the District’s financial statements. The remainder of this overview
section of Management’s Discussion and Analysis highlights the structure and contents of each statement.
Figure A-2
Major Features of
Dallastown Area School District’s
Government-wide and Fund Financial Statements
Scope
Required Financial
Statements
Government-wide
Statements
Statements
Entire
District
(except fiduciary
funds)
•
Statement of net
assets
• Statement of
activities
Fund Financial Statements
Governmental Funds
Proprietary Funds
Activities of the
Activities
the
District that is not
District operates
proprietary
or
similar to private
fiduciary, such as
businesses, such as
general operating
food service.
and
capital
projects.
• Balance sheet
• Statement
of
revenues,
expenditures, and
changes in fund
balances
Fiduciary Funds
Instances in which the
District is the trustee or
agent for someone else's
resources - Student
Activity Funds.
• Statement of net • Statement
of
assets
fiduciary net assets
• Statement
of • Statement
of
revenues,
changes in fiduciary
expenditures, and
net assets
changes in net
assets
• Statement of cash
flows
Accounting Basis & Accrual accounting Modified
accrual Accrual accounting Accrual accounting and
Measurement Focus and
economic- accounting and current and
economic- economic-resources
resources focus.
resources focus.
focus.
financial focus.
Types of
assets/liability
information
All
assets
and
liabilities,
both
financial and capital,
and short-term and
long-term.
Generally
assets
expected to be used up
and liabilities that come
due during the year or
soon thereafter; no
capital assets or longterm liabilities included.
All
assets
and All assets and liabilities,
liabilities,
both both short-term and
financial and capital, long-term.
and short-term and
long-term.
Types of
inflow/outflow
information
All revenues and
expenses during
the year, regardless
of when cash is
received or paid.
Revenues for which cash
is received during or
soon after the end of the
year; expenditures when
goods or services have
been
received
and
payment is due during
the year or soon
thereafter.
All revenues and
expenses during
the year, regardless
of when cash is
received or paid.
26
All
revenues
and
expenses during the year,
regardless of when cash
is received or paid.
JUNE 30, 2012
OVERVIEW OF THE FINANCIAL STATEMENTS
Government-Wide Statements
The Government-wide statements report information about the District as a whole using accounting methods
similar to those used by private sector companies. The Statement of Net Assets includes all of the District’s net
assets and how they have changed. Net assets are the difference between the District’s assets and liabilities and
are considered one way to measure the District’s financial health. The Statement of Activities accounts for all of
the current year’s revenues and expenses, regardless of whether the cash is received or paid.
Over time, increases or decrease in the District’s net assets is an indicator of whether its financial position is
improving or deteriorating, respectively.
To assess the overall financial condition of the District’s additional non-financial factors, such as changes in
the District’s property tax base and condition of school buildings and other facilities, should be considered.
In the government-wide financial statements, the District’s activities are divided into two categories:
Governmental activities: Most of the District’s basic services are included here such as regular, special and
adult education, transportation, administration, and community services. Property taxes and state subsidies
finance most of the activities that occur in the General Fund.
Business-type activities: The District charges fees to help it cover the costs of the District’s food service
program.
27
JUNE 30, 2012
Fund Financial Statements
The fund financial statements provide more detailed information about the District’s funds, not the District as a
whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending
on particular programs.
Some funds are required by State law and by bond covenants. The District established other funds to control and
manage money for particular purposes (like repaying its long-term debts) or to show that it is properly using
certain revenues (like Federal grants).
The District has three types of funds:
Government funds: Most of the District’s basic services are included in governmental funds, which generally
focus on (1) how cash and other financial assets can be readily converted to cash flow in and out; (2) the
balances left at year-end are available for spending. Consequently, the governmental funds statements provide
a detailed short-term view that helps the reader determine whether there are more or fewer financial resources
that can be spent in the near future to finance the District’s programs. Because this information does not
encompass the additional long-term focus of the government-wide statements, we provide additional
information at the bottom of the governmental funds statements that explain the relationship (or difference)
between them.
Proprietary funds: These funds are used to account for District activities that are similar to business operations
in the private sector. When the District charges fees for services provided to customers, the services are usually
reported as proprietary funds. The Food Service Fund is the District’s proprietary fund and is the same as the
business-type activities reported in the government-wide statements, but provide more detail and additional
information, such as cash flows.
Fiduciary funds: The District is the trustee, or fiduciary, for assets that belong to others, such as the student
activities agency funds. The District is responsible for ensuring that those to whom the assets belong use them
only for their intended purpose. The District excludes these activities from the government-wide financial
statements because they cannot use these assets to finance its operations.
28
JUNE 30, 2012
FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE
The District’s total net assets were $152.223 million at fiscal year ended 2012, which includes $151.680 million in
Governmental Activities and $543 thousand in Business Type Activities, an decrease of $5.840 million or 4% over
fiscal year ended 2011.
Figure A-3
Fiscal Years Ended June 30, 2012 and June 30, 2011
Net Assets
Current and other assets
Noncurrent assets
Total assets
Current and other liabilities
Noncurrent liabilities
Total liabilities
Governmental Activities
6/30/2012
6/30/2011
$
23,329,550 $
24,940,087
128,350,192
132,848,388
$ 151,679,742 $ 157,788,475
Business-Type Activities
6/30/2012
6/30/2011
$
263,349 $
86,521
280,224
188,010
$
543,573 $
274,531
Total School District
6/30/2012
6/30/2011
$
23,592,899 $
25,026,608
128,630,416
133,036,398
$ 152,223,315 $ 158,063,006
$
$
$
$
$
$
Restricted
Investment in capital assets (net of
related debt)
Unrestricted
Total net assets
Total liabilities and
net assets
$
81,196,541
19,395,918
100,592,459
$
$
86,644,321
21,309,890
107,954,211
1,104,467
$
789,184
40,579,133
9,403,683
51,087,283
151,679,742
$
39,780,125
9,264,955
49,834,264
$
157,788,475
438,421
51,000
489,421
-
$
$
$
280,224
(226,072)
54,152
$
543,573
231,569
231,569
-
$
$
81,634,962
19,446,918
101,081,880
$
86,875,890
21,309,890
108,185,780
$
1,104,467
$
789,184
188,010
(145,048)
42,962
$
274,531
40,859,357
9,177,611
51,141,435
$
152,223,315
39,968,135
9,119,907
49,877,226
$
158,063,006
During fiscal year ended 2012, total assets decreased 4% over fiscal year ended 2011. Within the asset categories,
the current and other assets decreased 6% or $1.434 million while noncurrent assets decreased 3% or $4.406
million. The majority of the change in the current and other assets is reflected in a 4% decrease in cash and
investments due to timing of invoice payments and a 39% decrease in receivables from other governments. The
39% decrease in receivables can be attributed to better timing of EIT (Earned Income Tax) payments and the
expiration of ARRA funding.
The decrease in noncurrent assets is primarily due a reduction of the value of the fixed assets. During fiscal year
ended 2012, approximately $1.573 million in technology assets and $91 thousand in food service assets were
removed from inventory due to obsolesce. This, coupled with adding $5.318 million in depreciation expense but
only adding $1.441 million additional in fixed assets lead to the overall decrease.
The three largest current assets are cash and investments representing 13% of the total assets, property taxes
receivable which is 1% and state subsidy receivable which is slightly less than 1%.
Capital assets, which consist of the district’s land, buildings, building improvements, furniture and equipment, and
construction in progress, represent 84% and 83% of the total assets in fiscal years ended 2012 and 2011,
respectively.
On the other side of the balance sheet, liabilities decreased 7% over fiscal year ended 2011.
The current and other liabilities category and the noncurrent liabilities decreased approximately 6% and 9%,
respectively.
29
JUNE 30, 2012
The decrease in current liabilities is due to debt service principal payments made on the general obligation bonds
and notes, as well as, a 25% decrease in accounts payable and a 22% decrease in accrued salaries and benefits.
The decrease in accrued salaries can be attributed to fewer accruals because of staff furloughs and a reduction of
staff hours. It can also be credited to a drop in the number of days accrued for support staff due to timing of
payroll. The majority of the decrease in accounts payable is due to the completion of Capital Reserve Fund
projects that were started during fiscal year ended 2011 and completed in 2012 which led the Capital Reserve
Fund having very few vendor accruals and the end of fiscal year 2012. There was also a decrease of
approximately 22% in General Fund vendor accruals which is strictly due to timing of invoices.
The noncurrent liability decrease is predominantly due to principal payments made on general obligation bonds
and notes. Refer to Footnote 8 for details regarding the principal payments made on the bonds and notes during
fiscal year ended 2012.
The results of this year’s operation as a whole are reported in the Statement of Activities. All expenses are
reported in the first column. Specific charges, grants, revenues and subsidies that directly relate to specific
expense categories are represented to determine the final amount of the School District’s activities that are
supported by other general revenues. The two largest general revenues are the local taxes assessed to community
taxpayers and the basic education subsidy provided by the State of Pennsylvania.
30
JUNE 30, 2012
Figure A-4 takes the information from that statement and rearranges it slightly in an effort to show the reader the
district’s total revenues and expenses for the year.
Figure A-4
Change in Net Assets
6/30/2012
6/30/2011
Revenues
Program revenues
Charges for services
Operating grants and contributions
Capital Grants and Contributions
General revenues
Property taxes
Other taxes
Grants, subsidies and contributions
not restricted
Investment earnings
Miscellaneous income
Transfers
Total revenues
$
355,575
10,101,620
-
$
334,629
12,661,423
1,000,000
6/30/2012
6/30/2011
$ 1,663,058
934,390
-
$ 1,999,136
1,095,510
-
2,018,633 $
11,036,010
-
2,333,765
13,756,933
-
60,848,750
5,832,754
60,478,773
6,206,666
8,101,973
309,729
66,709
91,254,548
60,478,773
6,206,666
8,101,973
309,664
66,709
89,159,837
181
162,648
2,760,277
3,094,711
9,264,089
203,764
206,256
89,410,256
Expenses
Instruction
Instructional student support
Administrative and financial support
Operation and maintenance of plant
Pupil transportation
Student activities
Community services
Interest on long-term debt
Food service
Total expenses
58,420,619
6,032,681
6,848,520
6,432,257
3,782,620
1,677,635
87,496
2,115,132
85,396,960
58,897,241
6,230,885
7,698,756
6,635,209
3,697,160
1,761,159
89,186
1,428,216
86,437,812
2,749,087
2,749,087
3,177,441
3,177,441
58,420,619
6,032,681
6,848,520
6,432,257
3,782,620
1,677,635
87,496
2,115,132
2,749,087
88,146,047
58,897,241
6,230,885
7,698,756
6,635,209
3,697,160
1,761,159
89,186
1,428,216
3,177,441
89,615,253
Increase (Decrease) in net assets
1,253,019
2,722,025
11,190
(82,730)
1,264,209
1,639,295
49,834,264
51,087,283
47,112,239
$ 49,834,264
125,692
42,962
49,877,226
$ 51,141,435 $
47,237,931
49,877,226
$
31
$
42,962
54,152
-
$
60,848,750
5,832,754
9,264,089
203,583
206,256
(162,648)
86,649,979
Net assets - beginning
Net assets - ending
-
District Total
6/30/2012
6/30/2011
65
$
JUNE 30, 2012
The majority of the $2.510 million or 3% decrease in governmental revenues from fiscal year ended 2011 to fiscal
year ended 2012 was due to a 20% decrease or $2.560 million in operating grants and contribution and the loss of
the $1 million in capital grants and contributions offset by a 14% increase or $1.162 million in unrestricted grants
and subsidies.
The $2.510 million or 3% decrease was primarily driven by following:
Removal of the reimbursement to school districts for charter school costs, which represents a loss of $191
thousand
$1.002 million is due to the expiration of the American Reinvestment and Recovery Act (ARRA) funding
Receipt of a one-time payment during fiscal year ended 2011 of $213 thousand from Lincoln Intermediate
Unit (LIU) 12 for ACCESS transportation due to the dissolution of the transportation fleet maintained by
the LIU
Reduction of $283 thousand in funding for the PA Accountability Block (PA Pact) Grant
 Reduction of rental and sinking fund payments of $873 thousand. During fiscal year ended 2011, the
District received PDE approval and payment for the 2006 and 2010 bonds, which netted a significant
“catch-up”. During fiscal year ended 2012, the District received PDE approval and payment for only the
2011A bonds and the YCST bonds.
The majority of the $1.041 million or 1% decrease in governmental expenses from fiscal years ended 2011 to
2012 can be attributed to a decrease of $477 thousand in instruction, $203 thousand in instructional student
support, $850 thousand in administration and financial services and $203 thousand in operation and maintenance
of plant services offset by an increase of $687 thousand in interest on long-term debt category.
Figure A-5 below presents the expenses of both the Governmental Activities and the Business-type Activities of
the District. Figure A-5 shows the District’s eight largest functions - instruction, instructional student support,
administrative and financial support, operation and maintenance of plant, pupil transportation, student activities,
community services and interest on long-term debt as well as each program’s net cost (total cost less revenues
generated by the activities). This table also shows the net costs offset by the other unrestricted grants, subsidies
and contributions to show the remaining financial needs supported by local taxes and other miscellaneous
revenues.
Figure A-5
2012
Total Cost of
Net Cost of
Services
Services
Functions/Programs
Instruction
Administrative and financial support
Student activities
Community services
Total Governmental Activities
Less:
Unrestricted grants, subsidies
2011
Total Cost of
Net Cost of
Services
Services
$
58,420,619
6,032,681
6,848,520
6,432,257
3,782,620
1,677,635
87,496
2,115,132
$ 52,177,954
4,430,487
6,573,321
6,213,582
2,594,656
1,449,799
36,117
1,463,849
$
58,897,241
6,230,885
7,698,756
6,635,209
3,697,160
1,761,159
89,186
1,428,216
$
50,567,130
5,832,594
7,449,001
5,430,177
2,577,499
1,570,946
40,844
(1,026,431)
$
85,396,960
$ 74,939,765
$
86,437,812
$
72,441,760
9,264,089
Total Needs from Local
Taxes and Other Revenues
$ 65,675,676
32
8,101,973
$
64,339,787
JUNE 30, 2012
Figure A-6 reflects the activities of the Food Service Fund, the only Business-Type activity of the District.
Figure A-6
2012
Total Cost of
Net Cost of
Services
Services
Functions/Programs
Food Service
Less:
Investment Earnings & Transfers
Total Business Type Activities
$
2,749,087
$
(151,639)
$
162,829
11,190
2011
Total Cost of
Net Cost of
Services
Services
$
3,177,441
$
(82,795)
$
65
(82,730)
Revenues of the District’s business-type activities (food and nutrition services) were comprised of charges for
services, federal and state reimbursements and investment earnings.
Business-type revenues exceeded expenses by $11 thousand in fiscal year ended 2012 and for 2011 business-type
expenses exceeded revenues by $83 thousand. Fiscal year end 2012 is the first time in five years that the Food
Service Fund has shown a profit. During fiscal year ended 2012, operating expenses decreased $428 thousand or
13% over 2011 and revenues decreased $334 thousand or 11% over 2011. The student lunch prices increased 5
cents and the adult lunch prices increased 30 cents for fiscal year ended 2012 with no increase in the cost of school
breakfast prices.
The drop in revenue is primarily due to a $193 thousand or 18% decrease in National School Lunch Program
(NSLP) sales and an $86 thousand or 11% decrease in a la carte sales. The Food Service Fund also saw a drop of
federal and state revenue from the NSLP and NSBP of $43 thousand and a drop in revenue from social security
and retirement reimbursement of $70 thousand. The reduction in social security and retirement reimbursement is
due to no longer having food service employees. Fiscal year ended 2012 is the first year the District choose to
outsource the operations of the Food Service Program.
The reductions in revenue were offset by a General Fund transfer of $163 thousand which funded the
unemployment compensation expenses. Unemployment costs were incurred during fiscal year ended 2012 due to
outsourcing the food service operations.
Revenue for charges for services was $1.663 million and $1.999 million in fiscal years ended 2012 and 2011,
respectively. This revenue is the amount paid by students and district personnel for daily food service, including
breakfast, lunch, beverages, a la carte purchases and catering services. Charges represent 60% and 65% of total
revenue, respectively.
Federal reimbursement for meals, including payment for free and reduced lunches, was $751 thousand and $777
thousand for the fiscal years ended 2012 and 2011, respectively. State reimbursement for meals, including
payment for free and reduced lunches, was $99 thousand and $117 thousand. Federal and state reimbursement for
meals decreased 5% over fiscal year 2011.
33
JUNE 30, 2012
During fiscal year ended 2012, the District served 620,376 (National School Lunch Program) NSLP meals, which
is a 15% decrease over the 727,663 NSLP meals served during fiscal year ended 2011. Of the meals served in
2012, 24% were free meals, 7% were at reduced prices and 69% were paid at full price.
The District also served 129,901 National School Breakfast Program (NSBP) meals, which is a 6% decrease from
the 138,038 NSBP meals served during 2011. Of the meals served in 2012, 49% were free meals, 9% were at
reduced prices and 42% were paid at full price.
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
Governmental Funds
The focus of the District’s governmental funds is to provide information on relatively short-term cash flow and
future basic services. Such information is useful in assessing the Dallastown Area School District financing
requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available
for spending at the end of the year.
As of June 30, 2012, the District’s governmental funds reported a combined fund balance of $16.025 million,
which is an increase of $168 thousand over fiscal year ended 2011. Refer to Figure A-7 for a breakdown of
governmental fund balances and the total change from fiscal year ended 2011 to 2012.
The majority of the overall total fund balance increase lies in the increases of the committed and restricted
categories offset by the large decrease in assigned.
Figure A-7
Fund Balances
2012
General Fund:
Nonspendable
Committed
Assigned
Unassigned
Capital Projects Fund:
Restricted
Total
$
2011
673,760
4,380,684
1,102,213
7,201,135
2,667,397
$ 16,025,189
$
622,442
3,042,434
2,621,133
7,064,477
2,506,523
$ 15,857,009
$ Change
$
$
51,318
1,338,250
(1,518,920)
136,658
160,874
168,180
% Change
8%
44%
-58%
2%
6%
1%
The General Fund is the main operating fund of the Dallastown Area School District. For fiscal year ended 2011,
the fund balance of the General Fund was $13.358 million as compared to $13.350 million for fiscal year ended
2011, an increase of $7 thousand or less than 1%.
34
JUNE 30, 2012
The General Fund balance of $13.358 million is comprised of $674 thousand in nonspendable funds, $4.381
million in committed, $1.102 million in assigned and $7.201 million in unassigned. For planning purposes, the
Board set aside part of the district’s fund balance for future uses. During fiscal year ended 2012, the Board of
School Directors committed $1 million for health insurance reserves, $3.342 million to assist with the expected
future PSERS rate increase and $39 thousand for various High School projects. The Board of School Directors
also assigned $1.045 million to be utilized to balance the budget for fiscal year ended 2013.
Overall revenues in the General Fund were $86.671 million and $88.444 million in fiscal years ended 2012 and
2011. Revenues decreased $1.773 million or 2% over last year. Refer to Figure A-8 below for distribution of
General Fund revenues.
Figure A-8
Comparison of General Fund Revenues
Local Revenues
State Revenues
Federal Revenues
Other Financing Sources
2012
$ 68,572,849
17,525,602
561,852
10,968
$ 86,671,271
2011
$ 68,815,318
17,118,156
2,133,892
376,542
$ 88,443,909
$ Change
% Change
(242,469)
-0.35%
407,446
2.38%
(1,572,040)
-73.67%
(365,574)
-97.09%
$ (1,772,638)
-2.00%
$
The majority of the 2% fall in revenues from fiscal year ended 2011 to 2012 can be credited to the following:
Local revenues:

$570 thousand or 1% growth in regular real estate tax revenue which is primarily due to an increase in
property assessments. The increase in regular real estate tax revenue was offset by a decrease of $295
thousand or 52% in interim real estate taxes.

Decrease of $350 thousand in unallocated Earned Income Tax (EIT) collections due to the implementation
of Act 32 offset by an increase of $67 thousand in regular EIT collections. The implementation led to
better tracking mechanisms for the tax bureau which has allowed the funds to be allocated monthly to the
applicable organization.

Decrease of $213 thousand in federal IDEA pass-through revenue due to a one-time payment from
Lincoln Intermediate Unit (LIU) 12 for ACCESS transportation that was received during fiscal year ended
2011.
35
JUNE 30, 2012
State revenues:

An increase of $1.162 million in basic education subsidy. During fiscal year ended 2011, there was
redistribution of Basic Education dollars to ARRA federal funding for SFSF and Education Jobs which
did not take place during fiscal year ended 2012.

An increase of $493 thousand in state share of retirement contributions which is due to the 53% increase
in the rate. The rates for fiscal years ended 2012 and 2011 were 8.65% and 5.64%, respectively. The
additional reimbursement received from the 53% PSERS rate increase was offset slightly by the staff
reductions that were effective with fiscal year ended 2012.

A decrease of $873 thousand in rental and sinking fund payments. During fiscal year ended 2011, the
District received PDE approval and payment for the 2006 and 2010 bonds, which netted a significant
“catch-up”. During fiscal year ended 2012, the District received PDE approval and payment for only the
2011A bonds and the YCST bonds.

A decrease of $283 thousand in the PA Accountability Block Grant funding.
Federal revenues:

Fiscal year ended 2011 was the last year for ARRA federal funds which caused a decrease of $1.002
million. The decrease in ARRA funding included Title I and State Fiscal Stabilization Funding. This
coupled with the decrease of $543 thousand in Education Jobs Funding is the predominate reason there
was a 74% decrease in federal revenues.
Other financing sources:

A decrease of $352 thousand in the Extended Term Financing Proceeds category because no equipment
was purchased during fiscal year ended 2012 through capital leases.
36
JUNE 30, 2012
Figure A-9 below details the percentage of each revenue category that the General Fund receives. The largest
source of revenue is real estate tax which is 89% of local sources and 70% of total revenue.
Figure A-9
2011-2012 General Fund Revenues
2%
1%
19%
Local Revenues
State Revenues
Federal Revenues
78%
Total expenditures from the General Fund were $86.664 million and $89.393 million in fiscal years ended 2012
and 2011, respectively. Expenditures decreased $2.729 million or 3% from last year.
Refer to Figure A-10 below for classifications of expenses by program type and the change from 2011.
Figure A-10
Comparison of General Fund Expenditures
Current:
Instructional
Support Services
Operation of noninstructional services
Refund of prior year's receipts
Capital outlay
Debt Service
Other Financing Uses
2012
2011
$ Change
$ 54,538,394
21,749,902
1,672,221
78,019
7,845,604
779,825
$ 86,663,965
$ 55,597,017
22,843,406
1,763,470
79,262
15,900
7,754,291
1,340,100
$ 89,393,446
$ (1,058,623)
(1,093,504)
(91,249)
(1,243)
(15,900)
91,313
(560,275)
$ (2,729,481)
37
% Change
-1.90%
-4.79%
-5.17%
-1.57%
-100.00%
1.18%
-41.81%
-3.05%
JUNE 30, 2012
Figure A-11 displays a comparison of expenditures by major object.
Figure A-11
Comparison of General Fund Expenditures by Major Object
100
Salaries
200
300
Benefits
Purchased Prof. & Tech
Services
400
Purchased Property Services
500
Other Purchased Services
600
Supplies
700
Equipment
800
Other Objects
900
Other Uses of Funds
2012
$ 45,527,963
14,966,404
2011
$ 47,098,532
13,914,005
$ Change
(1,570,569)
1,052,400
% Change
-3.33%
7.56%
3,790,763
4,036,404
(245,641)
-6.09%
1,901,432
8,179,995
2,761,351
704,072
2,784,324
6,047,661
$ 86,663,965
2,340,841
7,626,417
3,289,212
1,689,452
2,784,158
6,614,426
$ 89,393,446
(439,409)
553,578
(527,861)
(985,380)
166
(566,765)
(2,729,481)
-18.77%
7.26%
-16.05%
-58.33%
0.01%
-8.57%
-3.05%
$
$
The majority of the 3% increase in expenditures from fiscal year ended 2011 to 2012 can be credited to:
A decrease of $1.571 million or 3% in salaries that is primarily due to:
o
o
o
o
o
o
Elimination of paraprofessional staff and staff hours that equated to $733 thousand or a 34%
decrease over fiscal year ended 2011.
A reduction of 7% or $96 thousand due to a cutting of support staff positions and hours.
Elimination of the Audiovisual Technician at the High School.
A decline of $174 thousand or 38% in personal leave payouts due to the reduction of staff.
A decrease of $335 thousand or 10% in Administrative salaries to include elimination of the
Public Relations department, reduction of one Assistant Principal at the Middle School and one at
the Intermediate School, elimination of the Director of Auxiliary Services and elimination of the
Supervisor of Curriculum and Instruction.
A decrease of $267 thousand or 27% in classroom instruction substitutes.
An increase of $1.052 million in benefits which is due to:
o
o
o
A growth of 47% or $1.242 million in retirement expenditures which is due to the rate increase.
The rates for fiscal years ended 2012 and 2011 were 8.65% and 5.64%, respectively. The 53%
PSERS rate increase was offset slightly by the staff reductions that were effective with fiscal year
ended 2012.
An increase of 153% or $276 thousand in unemployment compensation due to staff reductions.
A 6% decrease or $389 thousand in medical and dental insurance premiums due to staff
reductions.
38
JUNE 30, 2012
A cutback of $528 thousand in supplies and books due to:
o
o
o
A reduction of $52 thousand in Intermediate School classroom supply purchases due to fiscal year
ended 2011 being a year of transition because it was the first year the Intermediate School was
opened.
A decrease of $177 thousand or 41% in energy costs.
A 55% decline or $339 thousand in the purchase of books due to the following:

$194 thousand in library books for the Intermediate School that were ordered and
budgeted for during fiscal year ended 2010 but not received until fiscal year ended 2011.

$77 thousand in books that were purchased during fiscal year ended 2011 using ARRA
funding.

A decrease of $27 thousand in textbooks purchased at the High School.

A reduction of $49 thousand at the Intermediate School in textbook purchases during
fiscal year ended 2012 due to opening of the school in fiscal year ended 2011.
A decrease of $986 thousand or 58% in equipment purchases due to:
o
o
o
$570 thousand for laptops purchased for the Intermediate School. These laptops were purchased
during fiscal year ended 2010 but were held up in customs and not received until fiscal year ended
2011. These laptops were purchased in anticipation of the opening of the Intermediate School
during fiscal year ended 2011.
$310 thousand for the fair market value of the HP laptops that were purchased through a capital
lease. The purchase was completed during fiscal year ended 2011 to avoid having to re-lease the
equipment.
$43 thousand for a capital lease purchase of driver’s education cars during fiscal year ended 2011.
The other use of funds (900) object codes saw a decrease of $567 thousand due to a cutback of $723
thousand in Capital Reserve Fund transfers which was offset by a Food Service Fund transfer of $163
thousand to cover unemployment costs.
39
JUNE 30, 2012
Figure A-12 displays the percentage make-up of each major object. Since the District is a service organization,
salaries and benefits comprise 70% of all expenditures.
Figure A-12
2011-2012
General
Fund
Expenses
by Major Object
7%
1%
3%
3%
Salaries
Benefits
Purchased Prof. & Tech Services
10%
2%
53%
4%
Supplies
Equipment
Other Objects
Other Uses of Funds
17%
The Capital Projects Fund had a total fund balance of $2.667 million for fiscal year ended 2012 and $2.507
million for fiscal year ended 2011, all of which is restricted for continuing costs related to capital projects as
approved by the Board of School Directors and costs related to Intermediate School.
40
JUNE 30, 2012
Refer to Figures A-13 and A-14 for a balance sheet and a statement of revenues, expenses and changes in fund
balance comparison from fiscal year 2011 to 2012.
Figure A-13
Capital Projects Balance Sheet
Cash and Cash Equivalents
Investments
Other Receivables
Total assets
$
$
6/30/2012
1,108,497
1,844,896
4
2,953,397
Accounts Payable
Total liabilities
$
$
Restricted Fund Balance
Total fund balance
Total liabilities and fund balance
$
6/30/2011
1,164,315
2,016,753
3,181,068
286,000
286,000
$
$
674,545
674,545
$
2,667,397
2,667,397
$
2,506,523
2,506,523
$
2,953,397
$
3,181,068
$
Figure A-14
Statement of Revenues, Expenses and Changes in Fund Balance - Capital Projects Fund
6/30/2012
Revenues
Local Sources
Total revenues
Expenditures
Current:
Instructional
Support services
Capital outlay
Debt service
Total expenditures
$
$
4,789
4,789
$
$
1,106,026
1,106,026
$
227,492
646,409
408,768
1,282,669
$
447,265
7,344,019
289,399
8,080,683
$
Other Financing Sources (Uses)
Transfers in (out)
Refunding bonds
Payment to refunded bond escrow agent
Premium
Total other financing sources
6/30/2011
$
$
Net changes in fund balance
617,177
72,865,000
(72,865,000)
821,577
1,438,754
$
$
$
160,874
Fund Balances:
July 1, 2012 and 2011
June 30, 2011 and 2010
$
41
2,506,523
2,667,397
1,340,100
88,485,000
(89,325,000)
1,708,965
2,209,065
(4,765,592)
$
7,272,115
2,506,523
JUNE 30, 2012
During fiscal year ending 2013 the District plans to complete renovations of the Administration offices and
complete the paving at Ore Valley Elementary. All other projects have been put on hold due to budget restraints.
During fiscal year ended 2012, capital projects that were completed included the following: roof replacement at
York Township, the solar panel project, Ore Valley energy management upgrade, front entrance door replacement
and lighting replacements, the sprinkler system for the server room and renovations to the Support Services
building.
Refer to Figure A-15 for a status of the current capital projects as of the fiscal year ended 2012.
Figure A-15
Status of Major Capital Reserve Fund
Projects
2011-2012 cost
Total Project Cost as of June 30, 2012
3,0 00,000
Expected Cost
2,5 00,000
2,0 00,000
1,5 00,000
1,0 00,000
500,000
Roof Replacement at
York Township
Sprinkler System
Administ rative
Off ices
Ore Valley Energy
Management
Upgrade
42
Ore Valley Paving
Solar Panels
JUNE 30, 2012
GENERAL FUND BUDGETARY HIGHLIGHTS
The Dallastown Area School District’s fiscal year ended 2012 original budget anticipated that expenses would
equal revenues, with a $2.544 million dollar utilization of fund balance. The actual results for the year were that
revenues were over budget by $909 thousand and expenses were less than budget by $1.642 million for a total use
of fund balance of $7 thousand.
Refer to Figure A-16 for a comparison of Budget to Actual by revenue source type.
Figure A-16
Fiscal Year Ended June 30, 2012
Comparison of General Fund Revenues - Budget to Actual
Local Revenues
State Revenues
Federal Revenues
Budget
$ 67,870,411
16,698,099
797,550
396,300
$ 85,762,360
Actual
$ 68,572,849
17,525,602
561,852
10,968
$ 86,671,271
$ Change
702,438
827,503
(235,698)
(385,332)
$ 908,911
$
% Change
1.02%
4.72%
-41.95%
-3513.24%
1.05%
In fiscal year ended 2012, total actual to budgeted revenues were $909 thousand more than expected primarily due
to the following:
Local revenues:

$721 thousand more in EIT taxes. The implementation of Act 32 has led to better tracking mechanisms
for the tax bureau which has increased EIT revenues.

$379 thousand more in IDEA funding, predominately due to the remaining ARRA IDEA funds that were
received in the beginning of fiscal year ended 2012, as well as, a “true-up” entry for the services provided
by the LIU that is deducted from the pass through monies. There is an offsetting expense incurred for
these services creating a zero effect budget entry.

$354 thousand less in delinquent real estate tax collections. Over the last four yours (fiscal years ended
2008 through 2011) the average delinquent tax collection was approximately $1.790 million. The revenue
received during fiscal year ended 2012 has not been this low since fiscal year ended 2007.
State revenues:

$341 thousand more in basic education subsidy funding due to timing of budget adoption for the District
as compared to the final funding amount approved by the Governor.

$183 thousand for the PA Accountability Block Grant funding that was cut from the Governor’s budget at
the time the District’s budget was adopted but ultimately was funded.

An additional $166 thousand in rental and sinking fund payments due to unanticipated YCST debt
payment reimbursements.

$113 thousand more in tuition reimbursement for Section 1305 and 1306 children due to an increased
number of children who were orphaned or court placed into private residences.
43
JUNE 30, 2012
During fiscal year ended 2012, the District started the implementation process of applying for Access
reimbursement and hopes to have it completed by the end of fiscal year ended 2014. This resulted in a difference
of $200 thousand in federal revenues budget to actual.
During fiscal year ended 2012, the District did not receive the note premium through the General Fund on the
2012 refinanced bonds. The money was set aside in the bond sinking fund to be used to make debt payments until
the cash is gone. This resulted in a difference of $395 thousand in revenues from budget to actual in other
financing sources. On the expenditure side, there is an equal savings for debt payments that were paid out of the
bond sinking fund which netted the loss of revenue to zero.
Refer to Figure A-17 for a comparison of Budget to Actual by major object.
Figure A-17
Fiscal Years Ended June 30, 2012
Comparison of General Fund Expenditures by Major Object - Original Budget to Actual
100
Salaries
200
300
Benefits
Purchased Prof. & Tech
Services
400
500
600
Supplies
700
Equipment
800
Other Objects
900
Other Uses of Funds
$
$
Budget
45,675,759
15,339,549
Actual
$ 45,527,963
14,966,404
4,277,375
3,790,763
(486,612)
-11.38%
2,135,850
7,536,325
3,181,985
767,600
4,628,525
4,763,000
88,305,968
1,901,432
8,179,995
2,761,351
704,072
2,784,324
6,047,661
$ 86,663,965
(234,418)
643,670
(420,634)
(63,528)
(1,844,201)
1,284,661
(1,642,003)
-10.98%
8.54%
-13.22%
-8.28%
-39.84%
26.97%
-1.89%
$
$
$ Change
% Change
(147,796)
-0.32%
(373,145)
-2.43%
The actual expenses were $1.642 million less than budgeted in fiscal year ended 2012 due to the following:

Purchased professional and technical services were $487 thousand less than budget primarily due to a
savings of $430 thousand in alternative education LIU costs. During fiscal year ended 2012 the District
was able to provide in-house alternative education to children who were educated by the LIU in previous
years.

Within the purchased property services budget category the District saved $151 thousand in electricity
costs due to the underutilization of expected usage at the Intermediate School.
44
JUNE 30, 2012

Other purchased services were $644 thousand more than budgeted due to:
o
$261 thousand additional spent on transportation costs due to unanticipated costs for activity runs,
non-public runs and alternative education mid-day runs.
o
$146 thousand additional spent on transportation provided the LIU. Over the last two fiscal years
the District has seen significant increases in the cost of transportation provided by the LIU due to
an increased number of students being transported and an increased number of days that children
are being transported, coupled with an increase in the District’s pro-ration share of the cost of the
LIU transportation program.
o
$334 thousand more spent on charter school students. When budgeting for fiscal year ended
2012, there were approximately 70 charter and cyber school students, however, during the year
the District saw enrollment reach 90, lending to the $334 thousand additional spent on those
students.
o
Savings of $213 thousand for students placed in private residential rehabilitation facilities and
detention centers. For fiscal year ended 2012, it was expected that there would be approximately
20 students placed at River Rock Academy but there ended up being half that, creating a savings
of about $183 thousand. The District was able to transition the students into the Alternative
Education Program on site.

Supplies expense was $421 thousand less budgeted largely due to the significant savings of $436 thousand
in energy costs. The energy cost savings were due to the unseasonably warm and mild winter, along with
the Intermediate School usage being notability less than anticipated.

Savings of $1.352 million in bond interest costs. The bond interest rates on the General Obligation Bonds,
Series 2010A, Series 2011A and Series 2011AA, were 1% - 2%, respectively. The lower interest rates
along with $409 thousand of debt payments being paid out the bond sinking fund netted the substantial
savings (reflected in the Other Objects category).

Reclassing of the $200 thousand budgetary reserve to ensure that the adjusted final budget to actual is
positive by major function, major object.

The overage in the Other Use of Funds category is primarily due to a Board approved Capital Reserve
Fund transfer of $617 thousand and a Food Service Fund transfer of $163 thousand. The Food Service
Fund transfer was to cover the cost of the unemployment benefits.
45
JUNE 30, 2012
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
In fiscal years ended 2012 and 2011, the Dallastown Area School District invested $127.252 million and $131.044
million (net of accumulated depreciation) in capital assets including land, buildings and improvements, furniture
and equipment and construction in progress. Refer to Figure A-18 for a comparison of fiscal years ended 2012
and 2011.
Figure A-18
Capital Assets (net of depreciation)
2012
Land
Buildings and building improvements
Furniture and equipment
Construction-in-progress
Total governmental activities - capital assets
$
2011
Change
4,310,857
116,882,419
5,767,479
11,498
$ 126,972,253
$
4,310,857
116,896,449
6,925,730
2,910,627
$131,043,663
$
$
$
$
280,224
188,010
(14,030)
(1,158,251)
(2,899,129)
$ (4,071,410)
92,214
During fiscal year ended 2012, the district purchased approximately $908 thousand in furniture and equipment,
retired $1.664 million in obsolete technology and food service equipment, purchased $534 thousand in
construction in progress and moved $3.331 million from construction in progress to buildings and building
improvements or furniture and equipment. Of the furniture and equipment, $771 thousand was paid through the
General Fund and $137 thousand through the Food Service Fund.
The District invested in a gas water heater and a heat pump, notebooks, servers, iPads, desktop computers, a
Gator, athletic equipment, musical equipment, a sound system for the stadium, as well as, food service equipment
and a new software application for the Food Service Fund.
During fiscal year ended 2013 the District plans to complete renovations of the Administration offices and
complete the paving at Ore Valley Elementary. All other projects have been put on hold due to budget restraints.
During fiscal year ended 2012, capital projects that were completed included the following: roof replacement at
York Township, the solar panel project, Ore Valley energy management upgrade , front entrance door replacement
and lighting replacements, the sprinkler system for the server room and renovations to the Support Services
building.
Additional information about capital assets can be found in Note 7 of this report.
46
JUNE 30, 2012
Long-Term Debt
In fiscal year ended 2013, the district had outstanding debt of $87.963 million consisting of $87.890 million in
bond principal and $73 thousand in lease obligations. In fiscal year ended 2011, the district had outstanding debt
of $93.286 million consisting of $93.010 million in bond principal and $276 thousand in lease obligations.
The district made payments against principal during fiscal year ended 2012 of $4.790 million on bonds and $203
thousand on lease purchase obligations.
Refer to Figure A-19 for a comparison of the long-term debt outstanding for fiscal years ended 2012 and 2011.
Figure A-19
Long-Term Debt
2012
General Obligation Bonds
Series 2010A
Series 2010B
Series 2011A
Series 2011AA
Series 2012
$
Capital Lease Obligations
Koch Leasing - SANS server
Ford Motor Credit - Driver's Education Vehicles
HP Financial Services - HP laptops
Total
$
1,895,000
1,380,000
11,750,000
72,865,000
45,294
27,439
87,962,733
2011
$
$
2,815,000
1,710,000
76,325,000
12,160,000
-
88,328
35,191
152,302
93,285,821
The District also made $478 thousand in annual lease payments (principal and interest) to the York County School
of Technology for the General Obligation Bonds, Series 2007. As of fiscal year ended 2012, the financial
obligation due by the Dallastown Area School District to the York County School of Technology is $5.026
million.
During fiscal year ended 2011, the district issued $1.710 million in General Obligation Bonds on behalf of the
York County School of Technology. The district will share in a pro rata portion of interest and principal payments
for this debt as it does for the General Obligation Bonds, Series 2007. Refer to Note 9 for more information
regarding this transaction.
Other long-term obligations include accrued personal and sick leave for specific employees of the school district,
swap payments associated with the variable rate debt on the 1998 and 2000 bonds and other post- employment
benefits.
More detailed information about the District’s long-term debt can be found in Note 8 of this report.
47
JUNE 30, 2012
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
2012-2013 Budget
The General Fund revenue budget for fiscal year ended 2013 is $88.969 million which is $3.207 million or 4%
more than the fiscal year ended 2012 budget of $85.762 million.
The three largest revenue source increases are current real estate taxes and social security and retirement
reimbursement subsidies, capturing 70% of the total expected increase.
The general fund expenditure budget for fiscal year ended 2013 is $90.014 million which is $1.708 million or 2%
more than the fiscal year ended 2012 budget of $88.306 million. In order to subsidize the budget so that revenues
equaled expenditures $1.045 million of fund balance is to be utilized.
The following highlights the largest categories where increases and decreases are expected:

Benefits - $1.987 million or 13% more than budgeted for fiscal year ended 2012. Retirement expense
captures the largest piece of the benefit increase with $1.678 million or 43%. The significant increase is
due to the PSERS rate increase from 8.65% to 12.36%.

Other Objects - $577 thousand less than budgeted for fiscal year ended 2012 which is predominantly due
to a decrease in interest expense of $604 thousand

Other Use of Funds - $915 thousand more than budgeted for fiscal year ended 2012 due to an increase in
debt service principal payments
Act 1
Fiscal year ended 2008 was the first year that Session Act I of 2006, known as the Taxpayer Relief Act, was in
place. The law stated that school districts may not increase the real estate tax rate above the adjusted index
percentage as determined by the state. The adjusted index for Dallastown for fiscal years ended 2007, 2008, 2009,
2010, 2011, 2012, 2013 and 2014 are 4.5%, 3.9%, 5.2%, 4.8%, 3.4%, 1.6%, 2.0% and 2.1%, respectively.
School Districts that wish to increase millage beyond the index to maintain or improve existing programs must
either apply for exceptions from the Department of Education or receive voter approval for an increase via a tax
increase referendum question.
The law intends to cap the financial burden of home ownership by providing school districts the means to lower
property taxes to homeowners, especially senior citizens. The legislation is complex, setting rules for gaming
revenue allocations, requiring front-end voter referenda on tax shifting, mandating new school district budget
restrictions, and requiring back-end voter referenda on future real estate tax increases above the index.
The state is still anticipating gaming will generate $1 billion each year for local property tax relief. The intent of
Act 1 is that school districts will receive property tax reduction allocations when the gaming revenues reach $500
million and the Lottery Fund is repaid. Once the minimum level is obtained, allocations to school districts will be
State formula driven. The State will in rank order, assign each school district a numerical rank and assign a lax
reduction index in order to calculate the properly tax reduction allocation. The district is eligible to receive the
allocation unless its Board of School Directors, by resolution, rejects the allocation. If the school board rejects the
allocation, a referendum is submitted to the voters to determine whether they favor the school district receiving a
property tax reduction allocation.
48
JUNE 30, 2012
There is referendum exceptions built into Act I should the district need to raise taxes beyond the adjusted index.
The exception categories provide partial relief for increase in the cost of special education, retirement and health
care expenses, emergencies and disasters and some school construction projects. It is anticipated that most school
districts will be requesting relief through some of the exceptions.
The Court of Common Pleas will make decisions on some referendum exceptions, but most will require approval
from the Department of Education. As a result, the budget timeline for all schools needing to go above the
adjusted index has been accelerated to provide the Department with a preliminary proposed budget by the
beginning of February each year along with the proposed exceptions so that the Department has time to act upon
the requested exception.
PSERS
The Pennsylvania School Employees Retirement System (PSERS) set the rate for fiscal year ended 2013 at
12.36%, a 43% increase over the 2012 rate of 8.65%. According to actuarial projections, the rate is expected to go
up to 16.73% and 21.25% in fiscal years ended 2014 and 2015.
REQUESTS FOR INFORMATION
The financial report is designed to provide our citizens, taxpayers, investors and creditors, with a general overview
of the district’s finances and to demonstrate the district’s accountability. If you have any questions about this
report or need additional information, please contact Miranda Hoefler-Weaver, CPA, MBA, Director of
Accounting Services or Donna Devlin, MBA, Business Administrator, at (717) 244-4021 or by mail at the
Dallastown Area School District, 700 New School Lane, Dallastown, PA, 17313.
49
GOVERNMENT-WIDE STATEMENT OF NET ASSETS
June 30, 2012
Governmental
Activities
ASSETS
Current Assets
Cash and cash equivalents
Investments
Due from other governments
Other receivables
Prepaids
Inventories
Taxes receivable
Long-term receivable - current portion
$
Total current assets
Noncurrent Assets
Furniture and equipment - net
Building and building improvements - net
Land
Deferred charges - net
Long-term receivable - net of current portion
Total noncurrent assets
Total assets
11,646,219
7,843,915
1,347,697
79,537
673,760
1,408,422
330,000
50
$
Total
233,264
8,283
720
21,082
-
$ 11,879,483
7,843,915
1,355,980
80,257
673,760
21,082
1,408,422
330,000
23,329,550
263,349
23,592,899
5,767,479
116,882,419
11,498
4,310,857
327,939
1,050,000
128,350,192
280,224
280,224
6,047,703
116,882,419
11,498
4,310,857
327,939
1,050,000
128,630,416
543,573
$ 152,223,315
$ 151,679,742
See Notes to Financial Statements.
Business-Type
Activities
$
Governmental
Activities
LIABILITIES AND NET ASSETS
Liabilities
Current Liabilities
Accounts payable
Accrued salaries and benefits
Payroll deductions and withholdings
Internal balances
Current portion of long-term debt
Current portion of lease purchase obligations
Current portion of compensated absences
Current portion of long-term liabilities
Other current liabilities
$
Total current liabilities
Noncurrent Liabilities
Long-term debt - net of current portion
Pay-fixed, interest-rate swap liability
Lease-purchase obligations - net of current portion
Compensated absences - net of current portion
Other post-employment benefit obligations
Other long-term liabilities
Total noncurrent liabilities
Total liabilities
Net Assets
Restricted
Invested in capital assets - net of related debt
Unrestricted
Total net assets
Total liabilities and net assets
1,646,598
4,286,458
169,705
(307,597)
75,327,039
53,582
5,421
15,335
$
56,071
307,597
17,000
57,753
Total
$
1,702,669
4,286,458
169,705
75,327,039
53,582
5,421
17,000
73,088
81,196,541
438,421
81,634,962
13,936,278
3,186,876
19,151
1,622,080
631,533
19,395,918
51,000
51,000
13,936,278
3,186,876
19,151
1,622,080
631,533
51,000
19,446,918
100,592,459
489,421
101,081,880
1,104,467
40,579,133
9,403,683
51,087,283
280,224
(226,072)
54,152
1,104,467
40,859,357
9,177,611
51,141,435
$ 151,679,742
51
Business-Type
Activities
$
543,573
$ 152,223,315
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
Year Ended June 30, 2012
Functions/Programs
Governmental Activities:
Instruction
Administration and financial services
Operation and maintenance of plant services
Student activities
Community services
Total governmental activities
Business-Type Activities:
Food Service
Total primary government
Expenses
$
$
Net (Expense) Revenues and
Changes in Net Assets
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions
Contributions
58,420,619
6,032,681
6,848,520
6,432,257
3,782,620
1,677,635
87,496
2,115,132
85,396,960
$
205,015
105,873
44,687
355,575
$ 6,037,650
1,602,194
275,199
218,675
1,187,964
121,963
6,692
651,283
10,101,620
2,749,087
88,146,047
1,663,058
$ 2,018,633
934,390
$ 11,036,010
General Revenues:
Property taxes, levied for general purposes, net
Public Utility Realty, Transfer, Earned Income, and Per Capita for General Purposes, net
Grants, subsidies and contributions not restricted
Investment earnings
Transfers
Miscellaneous income
Total general revenues and transfers
Changes in net assets
Net assets - July 1, 2011
Net assets - June 30, 2012
52
$
$
-
Governmental
Activities
$
$
$
$
(52,177,954)
(4,430,487)
(6,573,321)
(6,213,582)
(2,594,656)
(1,449,799)
(36,117)
(1,463,849)
(74,939,765)
(74,939,765)
60,848,750
5,832,754
9,264,089
203,583
(162,648)
206,256
76,192,784
1,253,019
49,834,264
51,087,283
Business-Type
Activities
$
$
$
$
(151,639)
(151,639)
181
162,648
162,829
11,190
42,962
54,152
Total
$ (52,177,954)
(4,430,487)
(6,573,321)
(6,213,582)
(2,594,656)
(1,449,799)
(36,117)
(1,463,849)
(74,939,765)
(151,639)
$ (75,091,404)
$
$
60,848,750
5,832,754
9,264,089
203,764
206,256
76,355,613
1,264,209
49,877,226
51,141,435
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2012
ASSETS
Investments
Other receivables
Due from other funds
Prepaids
Taxes receivable
Total assets
LIABILITIES AND FUND BALANCES
Accounts payable
Accrued salaries and benefits
Payroll deductions and withholdings
Deferred revenue
Total liabilities
$
$
$
Fund Balances
Nonspendable
Restricted for
Committed to
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
Major Funds
Capital
General
Projects
Fund
Fund
Non-Major Fund
Debt
Service
Fund
10,537,722
5,999,019
1,347,697
79,533
307,597
673,760
1,408,422
20,353,750
$
1,108,497
1,844,896
4
2,953,397
$
1,360,598
4,286,458
169,705
1,179,197
6,995,958
$
286,000
286,000
$
$
673,760
4,380,684
1,102,213
7,201,135
13,357,792
$
20,353,750
53
$
2,667,397
2,667,397
$
2,953,397
-
-
Total
Governmental
Funds
$
$
$
$
-
11,646,219
7,843,915
1,347,697
79,537
307,597
673,760
1,408,422
23,307,147
1,646,598
4,286,458
169,705
1,179,197
7,281,958
673,760
2,667,397
4,380,684
1,102,213
7,201,135
16,025,189
$
23,307,147
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2012
Total fund balances - governmental funds
$ 16,025,189
Amounts reported for governmental activities in the Statement of Net
Assets are different because:
Capital Assets used in governmental activities are not financial resources,
and therefore, are not reported as assets in governmental funds. The cost
of assets is $170,088,492 and the accumulated depreciation is $43,116,239.
126,972,253
Property taxes and earned income taxes receivable will be collected this
year, but are not available soon enough to pay for the current period's
expenditures, and therefore, are deferred revenues in the funds.
1,163,862
Governmental funds report bond-issuance costs as expenditures.
However, in the Statement of Activities, costs of the issuance are
allocated over the lives of related debt issues. This is the amount by
which bond issuance costs exceed accumulated amortization.
327,939
Long-term receivables are not available for current use and are
recorded in the Statement of Net Assets.
Long-term liabilities; including bonds payable, swap liability, compensated
absences, and other post-employment benefits; are not due and payable in
the current period, and therefore, are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of:
Bonds payable, net of bond discount, premium, and
refunding loss
Lease-purchase obligations
Other post-employment benefit obligations
Compensated absences
1,380,000
(89,263,317)
(3,186,876)
(72,733)
(631,533)
(1,627,501)
(94,781,960)
Total net assets - governmental activities
54
$ 51,087,283
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS
Revenues
Local sources
State sources
Federal sources
Total revenues
$
Expenditures
Current:
Instructional
Support services
Refunds of prior year's receipts
Total Current
Non-Major Fund
Debt
Service
Fund
68,572,849
17,525,602
561,852
86,660,303
$
$
54,538,394
21,749,902
1,672,221
78,019
78,038,536
Capital outlay
Debt service
Principal
Interest
Total expenditures
5,267,833
2,577,771
85,884,140
Excess (deficiency) of revenues over
expenditures
Transfers in
Transfers out
Sale of capital assets
Issuance of refunding bonds
Premium
Issuance of long-term debt
Transfers to joint venture
Total other financing sources (uses)
Net changes in fund balances
Fund Balances:
July 1, 2011
June 30, 2012
Major Funds
Capital
General
Projects
Fund
Fund
55
365,400
365,400
$
68,943,038
17,525,602
561,852
87,030,492
227,492
227,492
-
54,538,394
21,977,394
1,672,221
78,019
78,266,028
646,409
-
646,409
408,768
1,282,669
330,000
35,400
365,400
5,597,833
3,021,939
87,532,209
776,163
(1,277,880)
-
(501,717)
(779,825)
10,968
(768,857)
617,177
72,865,000
(72,865,000)
821,577
1,438,754
-
617,177
(779,825)
10,968
72,865,000
(72,865,000)
821,577
669,897
7,306
$
4,789
4,789
Totals
Governmental
Funds
13,350,486
13,357,792
160,874
$
2,506,523
2,667,397
-
$
-
168,180
$
15,857,009
16,025,189
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE
STATEMENT OF ACTIVITIES
Net changes in fund balances - governmental funds
$
168,180
Amounts reported for governmental activities in the Statement of
Activities are different because:
Capital outlays are reported in governmental funds as expenditures. However, in
the Statement of Activities, the costs of those assets is allocated over their useful
lives as depreciation expense. This amount is the amount by which the capital outlay
exceeds depreciation and dispositions in the period.
Capital outlays
Loss on sale of capital assets
Less depreciation expense
1,201,675
(348)
(5,272,737)
(4,071,410)
Because some property taxes will not be collected for several months after the
District's fiscal year ends, they are not considered as "available" revenues in the
governmental funds. Deferred tax revenue increased by this amount this year.
136,567
The repayment of notes receivable provides current resources, however, it does not
have any effect on the net assets.
(330,000)
Interest on long-term debt in the Statement of Activities differs from the amount
reported in the governmental funds because interest is recognized as an expenditure
in the funds when it is due, and thus requires the use of current financial resources
In the Statement of Activities, interest expense is recognized as the interest accrues,
regardless of when it is due. In addition, refunding losses, bond premiums,
discounts, and changes in swap liabilities are recognized as interest throughout the lives
of the related obligations. The additional interest accrued in the Statement of Activities
over the amount due is shown here.
871,407
Some expenses reported in the Statement of Activities do not require the use of current
financial resources, and therefore, are not reported as revenues in governmental funds.
73,550
The issuance of long-term debt provides current financial resources to governmental
funds, while the repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net assets. Also, governmental funds report the effect of issuance costs,
premiums, discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the Statement of Activities. This
amount is the net effect of these differences in the treatment of long-term
debt and related items.
Issuance of long-term debt, including bond premium
Repayment of long-term debt
Payment of bond issuance costs
Amortization of bond issuance costs
Changes in net assets of governmental activities
56
(73,686,577)
78,188,088
227,552
(324,338)
4,404,725
$
1,253,019
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
General Fund
Budgeted Amounts
Original
Final
Revenues
Local sources
State sources
Federal sources
Total revenues
$
Expenditures
Current
Instructional
Support services
Refunds of prior year's receipts
Total Current
67,870,411
16,698,099
797,550
85,366,060
$
67,870,411
16,698,099
797,550
85,366,060
Actual
$
68,572,849
17,525,602
561,852
86,660,303
55,586,443
21,980,775
1,419,250
450,000
79,436,468
55,310,668
22,522,450
1,697,350
450,000
79,980,468
54,538,394
21,749,902
1,672,221
78,019
78,038,536
8,607,500
88,043,968
7,482,500
87,462,968
7,845,604
85,884,140
Excess (deficiency) of revenues over
expenditures
(2,677,908)
(2,096,908)
Transfers in
Transfers out
Sale of capital assets
Budgetary reserve
Proceeds from issuance of long-term debt
Total other financing sources (uses)
395,300
(62,000)
1,000
(200,000)
134,300
395,300
(843,000)
1,000
(446,700)
Capital outlay
Debt service
Total expenditures
Net changes in fund balances
$
Fund Balances - July 1, 2011
Fund Balances - June 30, 2012
(2,543,608)
$
776,163
(779,825)
10,968
(768,857)
(2,543,608)
7,306
$
57
13,350,486
13,357,792
Variance
with Final
Budget
$
702,438
827,503
(235,698)
1,294,243
772,274
772,548
25,129
371,981
1,941,932
(363,104)
1,578,828
2,873,071
(395,300)
63,175
9,968
(322,157)
$
2,550,914
58
STATEMENT OF NET ASSETS - PROPRIETARY FUND - FOOD SERVICE
June 30, 2012
ASSETS
Current Assets
Other receivables
Inventories
Total current assets
$ 233,264
8,283
720
21,082
263,349
Noncurrent Assets
Furniture and equipment - net
280,224
Total assets
$ 543,573
LIABILITIES AND NET ASSETS
Liabilities
Accounts payable
Deferred revenues
Due to other funds
Total current liabilities
$
Noncurrent Liabilities
56,071
57,753
307,597
17,000
438,421
51,000
Total liabilities
489,421
Net Assets
Investment in capital assets
Unrestricted
Total net assets
280,224
(226,072)
54,152
Total liabilities and net assets
$ 543,573
59
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUND - FOOD SERVICE
Operating Revenues
Food service revenues
$
Operating Expenses
Supplies
Salaries
Employee benefits
Purchased property services
Other purchased services
Depreciation
Other operating expenses
Total operating expenses
1,663,058
129,715
15,846
196,562
51,249
2,310,476
45,056
183
2,749,087
Operating loss
(1,086,029)
Nonoperating Revenues
Investment earnings
State sources
Federal sources
Transfers in
Total nonoperating revenues
181
99,362
835,028
162,648
1,097,219
Changes in net assets
11,190
Net Assets - July 1, 2011
Net Assets - June 30, 2012
$
60
42,962
54,152
STATEMENT OF CASH FLOWS - PROPRIETARY FUND - FOOD SERVICE
Cash Flows From Operating Activities
Cash received from meal sales
Cash payments for goods and services
Cash payments to employees for services
Net cash used in operating activities
$
Cash Flows From Noncapital Financing Activities
State sources
Federal sources
Operating transfers in
Net cash provided by noncapital financing activities
1,788,724
(2,266,252)
(212,408)
(689,936)
101,797
767,695
162,648
1,032,140
Cash Flows From Capital and related Financing activities
Purchase of capital assets
(137,270)
Cash Flows From Investing Activities
Investment earnings
181
Net increase in cash and cash equivalents
205,115
Cash and Cash Equivalents:
July 1, 2011
June 30, 2012
$
Reconciliation of Operating Loss to Net Cash Used
in Operating Activities
Operating loss
Adjustments to reconcile operating loss to net
cash used in operating activities
Depreciation
Value of donated commodities
Changes in assets and liabilities:
(Increase) decrease in:
Receivables
Inventories
(Decrease) increase in:
Accounts payable
Deferred revenues
Internal balances
Net cash used in operating activities
$
28,149
233,264
(1,086,029)
45,056
84,068
(87)
9,204
$
61
49,742
57,753
82,357
17,000
51,000
(689,936)
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
June 30, 2012
Agency Fund
Student Activities
ASSETS
Investments
Total assets
$
LIABILITIES
Due to student groups
Total liabilities
62
$
237,691
12,810
250,501
$
$
250,501
250,501
NOTES TO FINANCIAL STATEMENTS
Note 1.
Summary of Significant Accounting Policies
Dallastown Area School District (the District) was formed in 1966 under the provisions of P.L. 564, the
School District Reorganization Act of 1963 of the Commonwealth of Pennsylvania. The District operates
a public-school system that encompasses six municipalities in York County. The governing body of the
District is a board of nine school directors who are each elected for a four-year term. The daily operation
and management of the District is carried out by the administrative staff of the District, headed by the
Superintendent of Schools who is appointed by the Board of School Directors. Funding for the District is
received from local, Commonwealth, and Federal sources and must comply with the requirements of the
various funding-source agencies.
The District assesses the taxpayers of these municipalities based upon taxing powers at its disposal. The
ability of the School District’s taxpayers to pay their assessments is dependent upon economic and other
factors affecting the taxpayers.
The financial statements of the District have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the authoritative, standard-setting body for the
establishment of governmental accounting and financial-reporting principles. The more significant of
these accounting policies are as follows:
A. Reporting Entity
In evaluating the District as a reporting entity, management has addressed all potential component units
which may or may not fall within the District’s financial accountability. The criteria used to evaluate
component units for possible inclusion as part of the District’s reporting entity are financial accountability
and the nature and significance of the relationship. This report presents the activities of the District. The
District is not a component unit of another reporting entity, nor does it have any component units. The
District does, however, participate in jointly-governed organizations which are described in Note 9.
63
Note 1.
Summary of Significant Accounting Policies (Continued)
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government. The
significant effect of interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function, or
segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenue are reported instead as general revenues.
Separate fund financial statements are provided in the report for all of the governmental, proprietary, and
the fiduciary funds of the District, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and the major proprietary fund are reported as
separate columns in the fund financial statements. Non-major funds are also presented in a single
column. Fiduciary funds are reported by fund type.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The District complies with accounting principles generally accepted in the United States of America
(GAAP) and applies all relevant GASB pronouncements. Private-sector standards of accounting and
financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide
and proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the GASB. Governments also have the option of following subsequent privatesector guidance for their business-type activities and proprietary funds, subject to this same limitation.
The District has elected not to follow subsequent private-sector guidance.
The government-wide financial statements are reported using the economic-resources measurement focus
and the accrual basis of accounting, as is the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the
provider have been met. Net assets (total assets less total liabilities) are used as a practical measure of
economic resources and the operating statement includes all transactions and events that increased or
decreased net assets. Depreciation is charged as expense against current operations, and accumulated
depreciation is reported in the Statement of Net Assets.
64
Note 1.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Governmental fund financial statements are reported using the current financial-resources measurement
focus and the modified-accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Revenues from Federal, state and other grants designated for payment of specific
District expenditures are recognized when the related expenditures are incurred; accordingly, when such
funds are received, they are recorded as deferred revenues until earned. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt-service expenditures,
as well as expenditures related to compensated absences and claims and judgments, are recorded only
when payment is due.
When both restricted and unrestricted (including committed, assigned, and unassigned) resources are
available for use, it is the School District’s policy to generally use the resources with the most stringent
restrictions first, followed by resources in decreasing order of restriction, as funds are needed. However,
the District does use unassigned monies at times to pay for expenditures that may have been board
committed.
Governmental funds are those through which most governmental functions of the District are financed.
The acquisition, use, and balances of the District’s expendable financial resources and the related
liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds.
The District reports the following major governmental funds:
General Fund - The General Fund is the District’s primary, operating fund. It accounts for all
financial resources except those required to be in another fund. Revenues are primarily derived
from local property, earned income, and per capita taxes, and state and Federal distributions.
Many of the more important activities for the District, including instruction, administration of the
District and certain non-instructional services are accounted for in this fund.
Capital Projects Fund - The Capital Projects Fund is used to account for and report financial
resources that are restricted, committed, or assigned to expenditure for the acquisition,
construction, or improvement of major capital facilities (other than those financed by proprietary
funds).
Proprietary Fund - The District operates one enterprise fund, the Food Service Fund. This fund
accounts for the activities of the District’s food-service program.
65
Note 1.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Proprietary funds are used to account for activities that are similar to those often found in the private
sector. The measurement focus is upon determination of net income and capital maintenance. The
District operates one proprietary fund, the Food Service Fund. This fund accounts for the activities of the
District’s food-service program. Proprietary funds distinguish operating revenues and expenses from
non-operating items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with the proprietary fund’s principal, on-going operations.
The principal operating revenues of the District’s proprietary fund are food-service charges. Operating
expenses for the District’s proprietary fund include food-production costs, supplies, administrative costs,
and depreciation on capital assets. All revenues or expenses not meeting this definition are reported as
non-operating revenues and expenses. The District allocates certain building-related costs, such as
extermination and custodial fees, to the Food Service Fund.
The District maintains the following fiduciary fund type:
Agency Fund - Student Activities - The Student Activities Fund accounts for assets held by the
District as an agent for various student groups.
The Activity Fund accounts for the resources authorized by Section 511 of the Public School Code of
1949 for school publications and organizations. A portion of the Activity Fund is an agency fund which
is separate from other agency funds because of legal requirements. Agency funds are custodial in nature
(assets equal liabilities) and do not involve measurement focus of results of operations. Agency funds are
also accounted for using the accrual basis of accounting.
D. Budget and Budgetary Accounting
The School Board approves, prior to the beginning of each year, an annual budget on the modifiedaccrual basis for the General Fund. This is the only fund for which a budget is required and for which
taxes may be levied. The General Fund is the only fund that has an annual budget that has been legally
adopted by the School Board. The School Board does not legally adopt the Food Service Fund budget;
however, it is approved. The Public School Code allows the School Board to authorize budget-transfer
amendments during the last nine months of each fiscal year.
The School District may not legally exceed the revised budget amounts by function and object. Function
is defined as a program area such as instructional services, and object is defined as the nature of the
expenditure such as salaries or supplies. Amendments require School Board approval. All appropriations
lapse at the end of each fiscal year.
66
Note 1.
E. Assets, Liabilities and Net Assets or Equity
Cash and Cash Equivalents: For purposes of the Statement of Cash Flows presented for the proprietary
fund, the District considers all highly-liquid investments with maturities of three months or less when
purchased to be cash equivalents.
Investments: Investments are stated at fair value.
Inventories: Inventories in the proprietary fund are generally presented at the lower of cost or market on a
first-in, first-out basis, and are expensed when used. Inventories consist of certain government-donated
commodities which were valued at estimated fair market value, as well as purchased commodities and
supplies.
Prepaids: Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items (consumption method) in both the government-wide and fund financial
statements.
Capital Assets and Depreciation: Capital assets; which include property, plant, and equipment, and
infrastructure assets; are reported in the applicable governmental or business-type activities column in the
government-wide financial statements. Capital assets are capitalized in accordance with board policy at
the discretion of management. Management considers various factors in the capitalization of assets,
including the assets’ estimated useful lives, costs, and the extents to which the assets are part of larger
capital projects. The established procedures state that individual assets with costs greater than $2,500 and
group assets costing greater than $10,000 are to be capitalized. Buildings and land improvements are
capitalized at a cost of $25,000 or greater and modular classrooms are capitalized at $10,000. The
donated capital assets are recorded at their estimated fair market values on the dates of donation.
The costs of normal maintenance and repairs that do not add to the values of the assets or materially
extend assets’ lives are not capitalized.
Depreciation is provided for capital assets on the straight-line basis over the following estimated useful
lives:
Estimated Lives ( in years)
Governmental
Business-Type
Activities
Activities
Land improvements
20
N/A
Buildings and improvements
15-50
N/A
Machinery and equipment
5-20
5-20
67
Note 1.
E. Assets, Liabilities and Net Assets or Equity (Continued)
Long-Term Obligations: In the government-wide financial statements, and proprietary-fund types in the
fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental or business-type activities columns in the Statement of Net Assets. Bond
premiums and discounts, as well as issuance costs, are deferred and amortized over the lives of the related
bonds. Bond-issuance costs are reported as deferred charges and amortized over the terms of related debt.
In the fund financial statements, governmental-fund types recognize bond premiums and discounts, as
well as bond-issuance costs, during the current period. The face amount of the debt issued is reported as
other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt-service expenditures.
Compensated Absences: The District provides for the accumulation and payout of sick pay upon the
retirement of employees who retire under the terms of the District’s collective-bargaining agreements.
Teachers, administrators, and support employees are eligible to receive a per diem amount for all
accumulated sick days.
Post-Employment Benefits: In the government-wide financial statements, the District recognizes the
costs and liabilities associated with post-employment benefits other than pension compensation, which is
funded through the District’s contribution to the statewide Public School Employees’ Retirement System,
a governmental, cost-sharing, multiple-employer defined-benefit pension plan. The District provides
retiree health, and dental-care benefits, including prescription-drug coverage, to eligible retired employees
and qualified spouses/beneficiaries. The District has estimated the cost of providing these benefits
through an actuarial valuation.
Derivative Financial Instruments: Derivatives instruments used by the District are swap contracts that
have a variable or fixed payment based on the price of an underlying interest rate or index. Hedging
derivative instruments is used to reduce financial risks, such as offsetting increases in interest costs by
offsetting changes in cash flows of the debt, the hedged item. These derivative instruments are evaluated
to determine if the derivative instruments are effective in significantly reducing the identified financial
risk at year end. If the derivative instrument is determined to be an effective hedge, its fair value is an
asset or liability with a corresponding debit or credit to deferred outflows or inflows on the Statement of
Net Assets. Deferred outflows or inflows constitute changes in fair value of effectively-hedged derivative
instruments. This account is neither an asset nor a liability. If the derivative instruments are determined
to be an ineffective or when there is no hedgeable item, the derivative instruments are considered to
investment derivatives; their fair values is are either assets or liabilities on the Statement of Net Assets
and the changes in their fair values are recognized against investment income in the Statement of
Activities.
Interfund Transfers: Advances between funds that are not expected to be repaid are accounted for as
transfers. In those cases when repayment is expected, the advances are accounted for through the various
due from and due to accounts. Transactions and balances between governmental activities have been
eliminated in the government-wide financial statements. Residual amounts due between governmental
and business-type activities are indicated on the Statement of Net Assets as internal balances.
68
Note 1.
E. Assets, Liabilities and Net Assets or Equity (Continued)
Fund Balance
The School District’s fund balance classifications are defined and described as follows:
Nonspendable: Represents fund balance amounts that cannot be spent because they are not in a
spendable form or are contractually required to be maintained intact.
Restricted: Represents fund balance amounts that are constrained for a specific purpose through
restrictions of external parties, through constitutional provisions, or by enabling legislation.
Committed: Represents fund balance amounts that can only be used for specific purposes pursuant to
the constraints imposed by formal action of the Board of School Directors, the District’s highest level
of decision-making authority. The Board of School Directors is required to also take formal action to
modify or rescind the commitment.
Assigned: Represents fund balance amounts that are constrained by the government’s intent to be used
for a specific purpose but are neither restricted nor committed. Through Board Policy 620, the Board
has delegated the authority to express intent to the District’s Business Manager.
Unassigned: Represents fund balance amounts that have not been restricted, committed, or assigned to
specific purposes within the general fund. A negative unassigned fund balance may be reported in
other governmental funds, if expenditures incurred for specific purposes exceeded the amounts
restricted, committed, or assigned to those purposes.
The District has a board policy which prescribes fund balance guidelines. The District will strive to
maintain an assigned and unassigned general fund balance of not less than 5 percent and not more than 8
percent of the budgeted expenditures for that year.
When an expenditure is incurred for purposes for which both restricted and unrestricted (committed,
assigned, or unassigned) amounts are available, the District will reduce the committed balance first,
followed by the assigned balance, and then the unassigned balance.
Restricted Net Assets: Restricted classifies certain assets which were imposed by law through
constitutional provisions or enabling legislation and were to be used for specific purposes, and are
therefore, restricted.
Use of Estimates: Management uses estimates and assumptions in preparing financial statements. These
estimates and assumptions affect the reported amounts of assets and liabilities and the reported revenues
and expenditures.
Subsequent Events: In preparing these financial statements, the District has evaluated events and
transactions for potential recognition or disclosure through November 26, 2012, the date the financial
statements were available to be issued.
69
Note 2.
Deposits and Investments
Under Section 440.1 of the Public School Code of 1949, as amended, the District is permitted to invest
funds consistent with sound business practices in the following types of investments:
●
●
●
●
●
U.S. Treasury Bills
Short-term obligations of the U.S. Government or its agencies or its
Instrumentalities
Deposits in savings accounts or time deposits or share accounts of institutions insured by either:
1.
The Federal Deposit Insurance Corporation (FDIC), or
2.
The Federal Savings and Loan Insurance Corporation (FSLIC), or
3.
The National Credit Union Share Insurance Fund (NCUSIF)
to the extent that such accounts are so insured, and for any amounts above
maximum insurable limits, provided that approved collateral as provided by law
shall be pledged by the depository
Obligations of (a) the United States of America or its agencies or instrumentalities backed by
the full-faith and credit of the United States of America, and (b) the Commonwealth of
Pennsylvania or instrumentalities thereof backed by the full-faith and credit of these political
subdivisions
Shares of investment companies whose investments are restricted to the above categories
The deposit and investment policies of the District adhere to state statutes and prudent business practices.
There were no deposit or investment transactions during the year that violated either state statutes or
District policies.
Deposits: Custodial-Credit Risk
Insured (FDIC)
Insured (FDIC)
Insured (FDIC)
Insured (FDIC)
Uninsured, collateralized in accordance
with Act 72
Uninsured, collateralized in accordance
with Act 72
$
$
Carrying
Amount
101,510
4,419
250,000
250,000
Bank
Balance
107,443
4,420
250,000
250,000
Financial
Institution
Citizens Banks
People's Banks
Susquehanna Bank
PNC Bank
14,644,560
17,622,805
Susquehanna Bank
2,838,014
18,088,504
2,838,014
21,072,682
PNC Bank
$
$
Act 72 is an act standardizing the procedures for pledges of assets to secure deposits of public funds with
banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and
valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be
pledged against deposits on a pooled basis and authorizing the appointment of custodians to act as the
pledgors of the assets.
70
Note 2.
Deposits and Investments (Continued)
Investments
As of June 30, 2012, the District had the following investments:
Pennsylvania School District Liquid Asset Fund (PSDLAF)
M&T Bank - Federated Treasury Obligations
Weighted-Avg
Maturities
Fair Values
38 days
$ 1,290,885
42 days
594,535
$ 1,885,420
Portfolio Assets
PSDLAF - This fund invests in U.S. treasury securities, U.S. government securities, its agencies and
instrumentalities, and repurchase agreements, collateralized by such securities and contracted with highlyrated counterparties. Weighted-average portfolio maturity for the fund is expected to be kept at or below
60 days. The District’s position in the investment pool is presented at fair value. PSDLAF is not subject
to any regulatory oversight.
Weighted-Average Maturity
The weighted-average maturity (WAM) method expresses investment time horizons - the time when
investments become due and payable - in years or months, weighted to reflect the dollar-size of individual
investments within an investment type. WAMs are computed for each investment type. The portfolio’s
WAM is derived by dollar-weighting the WAM for each investment type.
Interest-Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of
managing its exposure to fair-value losses arising from increasing interest rates.
Credit Risk
As indicated above, Section 440.1 of the Public School Code of 1949, as amended, limits the composition
of the District’s investments, and the District has no investment policy that would further limit its
investment choices. As of June 30, 2012, the District’s investments in PSDLAF and in Federated
Treasury Obligations were rated AAAm by Standard & Poor’s.
Concentrations-of-Credit Risk
The District places no limit on the amounts invested in any one issuer. The District’s investments in
PSDLAF represent 68.47% of the District’s total investments.
71
Note 3.
Taxes Receivable, Deferred Revenues and Estimated Uncollectible Taxes
Summaries of taxes receivable and related accounts of the General Fund at June 30, 2012, are as follows:
Amount
Uncollected taxes - Real Estate
$
1,408,422
Taxes to be collected within 60 days
Deferred revenues - delinquent taxes
$
244,560
1,163,862
1,408,422
$
Deferred Revenues
Delinquent taxes
Miscellaneous
Total Deferred Revenues
$
$
72
1,163,862
15,335
1,179,197
Note 4.
Intergovernmental Receivables
Amounts due from other governments represent receivables for revenues earned by the School District.
At June 30, 2012, the following amounts are due from other governmental units:
General
Fund
PA Department of Education
Social Security
Retirement
Transportation
York Adams Tax Bureau - EIT
Mainstreaming for various LEA's
County of York - Realty Transfer Tax
Federal Subsidies - Title I
Federal Subsidies - Title II A
Federal Subsidies - Ed. Jobs
Federal Subsidies - Food Program
State Subsidies - Food Program
$
$
73
199,019
554,235
43,953
237,759
158,147
41,714
75,089
29,235
8,546
1,347,697
Proprietary
Fund
$
$
7,373
910
8,283
Note 5.
Internal Balances and Interfund Transfers
Individual fund receivable and payable balances at June 30, 2012, are as follows:
Interfund
Receivables
Fund
Governmental Funds
General
Total Governmental
$
Proprietary Fund
Food Service
$
307,597
307,597
307,597
Interfund
Payables
$
$
-
307,597
307,597
The outstanding balance between funds results mainly from a time lag between the dates that the goods
and services are provided, recorded in the accounting system and the payments are made. The Food
Service Fund Payable is for chargebacks for utilities and services, salaries and a loan from the General
Fund. The balance above is expected to be collected in the subsequent year.
Individual fund transfers during the fiscal year ended June 30, 2012, are as follows:
Fund
Governmental Fund Types
General
Capital Projects
Total Governmental Fund Types
Transfers In
$
Proprietary Fund Types
Food Service
$
617,177
617,177
162,648
779,825
Transfers Out
$
$
779,825
779,825
779,825
Transfers and payments within the District are substantially for the purposes of subsidizing operating
functions, funding capital projects, and asset acquisition. Resources are accumulated in a fund to support
and simplify the administration of various projects or programs. For the year ended June 30, 2012,
amounts were transferred to the Capital Projects Fund to fund various future improvements and
acquisitions and transferred to the Food Service Fund for the payment of unemployment compensation for
former employees of the District.
74
Note 6.
Property Taxes
Based upon assessed valuations provided by York County, the municipal tax collector bills and collects
property taxes on behalf of the District. The schedule for property taxes levied for 2011-2012, is as
follows:
July 1, 2011
Through September 1, 2011
Through November 1, 2011
Starts November 2, 2011
January 1, 2012
Tax Levy Date
2% Discount
Face payment period
10% Penalty Period
Lien Filing Date
The District’s tax rate for all purposes in 2011-2012, was 22.26 mills ($22.26 per $1,000 assessed
valuation). Refunds on payments of prior-year taxes are classified as Other Debt Service items under the
Commonwealth of Pennsylvania accounting system.
75
Note 7.
Capital Assets
Capital asset activity for the year ended June 30, 2012, was as follows:
July 1,
2011
Capital assets not being depreciated
Land
Total capital assets not being
depreciated
$
4,310,857
2,910,627
Increases
$
534,210
June 30,
2012
Decreases
$
(3,433,339)
$
4,310,857
11,498
7,221,484
534,210
(3,433,339)
4,322,355
143,027,394
20,210,988
3,330,087
770,717
(1,573,049)
146,357,481
19,408,656
163,238,382
4,100,804
(1,573,049)
165,766,137
Less accumulated depreciation
Total accumulated depreciation
26,130,945
13,285,258
39,416,203
3,344,117
1,928,620
5,272,737
(1,572,701)
(1,572,701)
29,475,062
13,641,177
43,116,239
Total capital assets being
depreciated, net
123,822,179
(1,171,933)
(348)
122,649,898
$ 126,972,253
Capital assets being depreciated
Total capital assets being depreciated
Total Governmental Activities,
Capital Assets - Net
Capital assets being depreciated,
equipment
Less accumulated depreciation
for equipment
Total Business-Type Activities,
Capital Assets - Net
$ 131,043,663
$
(637,723)
$
(3,433,687)
$
$
137,270
$
(90,455)
381,128
193,118
$
188,010
76
45,056
$
92,214
$
(90,455)
$
-
427,943
147,719
$
280,224
Note 7.
Capital Assets (Continued)
Depreciation expense was charged to the functions/programs of the District as follows:
Amount
Instruction
Administration and financial support
Student activities
Community services
$
Food Service
Total Primary Government
$
77
3,989,673
349,703
580,747
240,557
5,587
100,777
5,694
5,272,737
45,056
5,317,793
Note 8.
Long-Term Obligations
A summary of the reporting entity’s long-term obligations as of June 30, 2012, and transactions during
the year then ended follows:
July 1,
2011
General Long-Term Obligations
General Obligation Bonds/Notes
Series of 2010A
Series of 2010B
Series of 2011A
Series of 2011AA
Series of 2012
Refunding loss, net
of amortization
Bond premium (discounts), net
of amortization
Total bonds payable
Lease-purchase obligations
Compensated absences
Other post-employment benefits
Total General Long-Term Obligations
$
2,815,000
1,710,000
76,325,000
12,160,000
-
Increases
$
72,865,000
(166,619)
-
June 30,
2012
Decreases
$
920,000
330,000
76,325,000
410,000
-
$
(27,627)
1,895,000
1,380,000
11,750,000
72,865,000
(138,992)
Due within
one year
$
940,000
330,000
430,000
72,865,000
(27,627)
1,571,675
94,415,056
821,577
73,686,577
880,943
78,838,316
1,512,309
89,263,317
789,666
75,327,039
3,204,967
275,821
1,786,190
546,394
72,931
827,810
18,091
203,088
231,620
742,671
3,186,876
72,733
1,627,501
631,533
53,582
5,421
-
$ 100,228,428
$ 74,587,318
$ 80,033,786
94,781,960
$ 75,386,042
$
General Obligation Bonds - Series A of 2010 - On March 23, 2011, the District issued General
Obligation Bonds - Series A of 2011 in the principal amount of $4,360,000. The proceeds of the bonds
are being used to refund the General Obligation Bonds - Series of 2004. The bonds bear annual interest
rates ranging from 1.00% to 2.00%. Interest is payable semi-annually, and the bonds mature serially in
amounts ranging from $645,000 to $955,000 through 2014. The economic gain on the refunding of the
2004 Bonds was $148,230.
General Obligation Bonds - Series B of 2010 - On July 14, 2011, the District issued General Obligation
Bonds - Series B of 2011 in the principal amount of $1,710,000. The proceeds of the bonds are being
used to fund the costs of design and construction of roof replacements to the York County School of
Technology. The bonds bear annual interest rates ranging from 1.00% to 3.50%. Interest is payable
semi-annually, and the bonds mature serially in amounts ranging from $330,000 to $360,000 through
2015.
General Obligation Notes - Series A of 2011 - On March 30, 2012, the District issued General
Obligation Notes - Series A of 2011 in the principal amount of $76,325,000. The proceeds of the notes
were used to refinance the General Obligation Bonds - Series of 2010. The bonds bore interest at
annual rates that could not exceed 6.00%; the initial rate is 1.50%. Interest was payable quarterly and
on the date of maturity. There was no economic gain or loss on this transaction. On March 30, 2012,
the District issued General Obligation Bonds - Series of 2012 to refinance this obligation.
78
Note 8.
Long-Term Obligations (Continued)
General Obligation Notes - Series AA of 2011 - On March 30, 2012, the District issued General
Obligation Notes - Series AA of 2012 in the principal amount of $12,160,000. The proceeds of the
notes are being used to refinance the General Obligation Bonds - Series of 2006. The notes bear annual
interest rates ranging from .70% to 5.00%. Interest is payable semi-annually and on the date of
maturity. The notes mature serially in amounts ranging from $140,000 to $4,850,000 through 2019.
There was no economic gain or loss on this transaction and the future debt service requirements cannot
be determined as the 2006 General Obligation Bonds were variable rate instruments.
General Obligation Notes - Series of 2012 - On March 30, 2012, the District issued General Obligation
Notes - Series A of 2011 in the principal amount of $72,865,000. The proceeds of the notes are being
used to refinance the General Obligation Bonds - Series of A of 2011, which was due to be paid in full
on April 15, 2012. The notes bear interest at annual rates that shall not exceed 6.00%; the initial rate is
1.50%. Interest is payable quarterly and on the date of maturity. There was no economic gain or loss
on this transaction. As noted in Footnote 13, the District intends to refinance this debt prior to the
scheduled due date; therefore, any expected cost savings may not be realized. Each year, it is the
District’s intent to refinance the debt that is secured to pay-fixed, receive-variable interest-rate swaps
until the swap termination dates of February 1, 2018 and May 1, 2020, respectively.
The future debt-service requirements of the fixed and variable general obligation long-term debt issues
are as follows, assuming current rates:
Years
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2018-2020
$
$
Principal
74,565,000
1,715,000
1,820,000
1,855,000
1,525,000
6,410,000
87,890,000
$
$
Interest
1,656,003
560,275
524,125
458,150
396,750
563,000
4,158,303
$
$
Total
76,221,003
2,275,275
2,344,125
2,313,150
1,921,750
6,973,000
92,048,303
All debt service payments for general obligation notes and bonds are funded by the General Fund. As
required by the Pennsylvania Department of Education Financial Accounting and Reporting Manual,
debt-issuance costs are reported on the Statement of Revenues, Expenditures, and Changes in Fund
Balances as Support Services Expenditures.
The District has no outstanding in-substance defeased debt.
79
Note 8.
Swap Payments and Associated Debt
As of June 30, 2012, debt service requirements of the variable-rate debt and net interest-rate swap
payments, assuming current interest rates remain constant, were as follows.
Year
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2018-2020
Principal
$ 72,865,000
$ 72,865,000
Variable-Rate Bonds
Interest
Swaps, net
1,065,713
$
627,838
545,451
458,950
367,984
272,325
240,135
1,065,713
$ 2,512,684
$
$
$
$
Total
74,558,551
545,451
458,950
367,984
272,325
240,135
76,443,396
The fair value of the interest-rate swap liability is presented in the Government-Wide Statement of Net
Assets.
Lease-Purchase Obligations
The government has entered into a lease agreement as the lessee for financing the acquisition of
computer software and hardware, and vehicles. These lease agreements qualify as capital leases for
accounting purposes and, therefore, have been recorded at present value of their future minimum lease
payments as of the inception date.
The assets acquired through capital leases are as follows:
Amount
Asset:
Vehicles
Less: Accumulated Depreciation
Total Buildings and Improvements
$
$
Furniture and Equipment
Less: Accumulated Depreciation
Total Furniture and Equipment
$
$
80
42,090
(9,646)
32,444
469,477
(241,513)
227,964
Note 8.
The future minimum lease obligations and the net present value of these minimum lease payables as of
June 30, 2012, were as follows:
Years
2012-2013
2013-2014
2014-2015
2015-2016
Total minimum lease payments
Less: amount representing interest
Total present value of net minimum lease payments
$
$
Amount
57,546
9,875
9,875
823
78,119
(5,386)
72,733
Operating Leases
The government leases copiers and printers under noncancelable operating leases. Total costs for the
leases were $188,464 for the year ended June 30, 2012. The future minimum lease payments for these
leases are as follows:
Years
2012-2013
2013-2014
2014-2015
2015-2016
Total minimum lease payments
$
$
81
Amount
179,286
35,219
6,904
6,904
228,313
Note 8.
Compensated Absences
The School District administrators and support staff are granted vacation time in varying amounts
depending on their years of service. Accumulated vacation days from one fiscal year shall be used by
December 31st of the following year unless an extension is granted by the Superintendent. Unused
accumulated vacation days are transferred to sick leave.
The School District allows employees to accumulate their unused sick leave as specified in negotiated
labor contracts, the support staff handbook and the administrative compensation plan. Sick leave used
is based on last-in, first-out (LIFO) method. Twelve-month employees are granted twelve sick days per
year. Support staff and DAEA-eligible staff working ten months per year are granted ten days. Parttime employees are granted sick days based on the number of hours/days worked.
Upon retirement, accumulated sick leave is paid out of the General Fund as follows:
Administrators: Upon meeting normal retirement standards as set forth by PSERS, 25% over the DAEA
contract rate as long as policy provisions are met, or $62.50 a day for 2011-2012.
DAEA-eligible staff and support staff: Upon meeting normal retirement standards as set forth by
PSERS, or $50.00 a day for 2011-2012.
Superannuation retirees with twenty years, but less than normal retirement as set forth by PSERS, shall
receive 75% of the amounts detailed above.
$5,421 in compensated absences will be due within one year due to retirements of staff known to be
retiring during the year ended June 30, 2012.
All compensated absences are funded by the General Fund.
82
Note 9.
Affiliates
York County School of Technology (YCST)
York County School of Technology is a separate legal entity. The YCST provides vocational, technical
and career education to the students in its participating School Districts. The District is one of fourteen
member school Districts of the YCST. Member school Districts are responsible for funding the major
portion of YCST’s operating budget. The District’s financial obligation to YCST for the year ended
June 30, 2012, was $1,200,268 which has been reported in the general fund. YCST has separate
financial statements available for further review of financial standing.
During 2010-2011, the District issued General Obligation Bonds - Series B of 2011, in the aggregate
amount of $1,710,000 for the purpose of providing funds to the YCST for the purposes of designing and
constructing roof replacements at the YCST. The debt service on these bonds will be paid by the
member school district to the YCST. Accordingly, the District has recorded a long term receivable on
its government-wide statement of net assets to reflect the total amount due. The remaining principal
payments are scheduled to be made as follows.
Years
2012-2013
2013-2014
2014-2015
2015-2016
$
$
Amount
330,000
340,000
350,000
360,000
1,380,000
The District anticipates, based on current enrollment, which it will make payments to the YCST to assist
in the funding of this debt service.
Years
2012-2013
2013-2014
2014-2015
2015-2016
$
$
83
Amount
44,948
45,360
45,419
45,397
181,124
Note 9.
Affiliates (Continued)
York County School of Technology Authority
The District is also a member of the York County School of Technology Authority (Authority). The
Authority was created as a financing medium for construction, improvement and maintenance relative to
the operation of the York County School of Technology.
The Authority issued Lease Revenue Bonds - Series of 2007, in the aggregate amount of $42,330,000
for the purpose of providing funds for the advance refunding of the Authority’s Lease Revenue Bonds Series of 2003 and to pay for the costs of the bonds’ issuance. The Lease Revenue Bonds - Series of
2003, were used to pay for the costs of design and construction improvements, renovations and
extraordinary repairs to and the acquisition and installation of related equipment for the facilities of
York County School of Technology. The District is required, under terms of the lease, to pay lease
rentals in connection with the Lease Revenue Bonds - Series of 2003, as follows:
Years
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2018-2022
2022-2023
$
$
Amount
456,953
457,301
456,961
457,325
456,488
2,284,425
456,331
5,025,784
The District’s financial obligation to the Authority for the year ended June 30, 2012, was $478,267
which has been reported in the General Fund. The Authority has separate financial statements available
for further review of financial standing.
84
Note 10.
Defined-Benefit Pension Plan
Plan Description
Name of plan: The Public School Employees’ Retirement System (the System)
Type of plan: Governmental, cost-sharing, multiple-employer defined-benefit plan
Benefits: Retirement and disability, legislatively-mandated ad hoc cost-of-living adjustments, healthcare
insurance-premium assistance to qualifying annuitants
Authority: The Public School Employees’ Retirement Code (Act No. 96 of October 2, 1975, as amended)
(24 Pa. C.S. 8101-8535)
Annual Financial Report: The System issues a Comprehensive Annual Financial Report (CAFR) that
includes financial statements and required supplementary information for the plan. A copy of the report
may be obtained by writing to Diane J. Wert, Office of Financial Management, Public School Employees’
Retirement System, PO Box 125, Harrisburg PA 17108-0125. The CAFR is also available on the
Publications page of the PSERS website.at http://www.psers.state.pa.us/publications/general/cafr.htm.
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
Member Contributions: Active members who joined the System prior to July 22, 1983, contribute at
5.25% (Membership Class T-C) or at 6.50% (Membership Class T-D) of the member’s qualifying
compensation. Members who joined the System on or after July 22, 1983, and who were active or
inactive as of July 1, 2001, contribute at 6.25% (Membership Class T-C) or at 7.50% (Membership Class
T-D) of the member’s qualifying compensation. Members who joined the System after June 30, 2001 and
before July 1, 2011, contribute at 7.50% (automatic Membership Class T-D). For all new hires and for
members who elected Class T-D membership, the higher contribution rates began with service rendered
on or after January 1, 2002. Members who joined the System after June 30, 2011, automatically
contribute at the Membership Class T-E rate of 7.5% (base rate) of the member’s qualifying
compensation. All new hires after June 30, 2011, who elect Class T-F membership contribute at 10.3%
(base rate) of the member’s qualifying compensation. Membership Class T-E and T-F are affected by a
“shared risk” provision in Act 120 of 2010 that in future fiscal years could cause the Membership Class
T-E contribution rate to fluctuate between 7.5% and 9.5% and Membership Class T-F contribution rate to
fluctuate between 10.3% and 12.3%.
Employer Contributions: Contributions required of employers are based upon an actuarial valuation. For
fiscal year ended June 30, 2012, the rate of employer’s contribution was 8.65% of covered payroll. The
8.65% rate is composed of a pension contribution rate of 8.00% for pension benefits and 0.65% for
healthcare insurance premium assistance.
85
Note 10.
Defined-Benefit Pension Plan (Continued)
The School District is required to pay the entire contribution and will be reimbursed by the
Commonwealth in an amount equal to the Commonwealth’s share as determined by the income-aid ratio
(as defined in Act 29 of 1994), which is at least one half of the District’s total rate. The District's
contributions to the Plan, net of state aid reimbursements, for the years ended June 30, 2012, 2011, and
2010, were $2,093,295, $1,488,691, and $1,064,077, respectively. These amounts are equal to the
required contributions for each year. The District contributions are funded and paid through the District’s
general and food service funds.
The amount recognized for revenues and expenses for on-behalf payments relating to fringe benefits for
the year ended June 30, 2012 was $3,822,901.
This includes $1,729,606 paid to the federal government for social security and Medicare taxes for the
year ended June 30, 2011 as well as the pension contributions paid to the Public School Employees’
Retirement System (PSERS) listed above. The School District pays these on-behalf payments directly to
PSERS and the government and is reimbursed by the Commonwealth for their appropriate share.
86
Note 11.
Other Post-Employment Benefits
The District maintains a single-employer, post-employment, defined-benefit healthcare plan. The plan
description and funding policy for the District is summarized in the chart below:
GROUP
I. ADMINISTRATORS
ELIGIBILITY
Upon completion of 20
years of credited service.
COVERAGE AND PREMIUM SHARING
Coverage: Medical, Prescription-drug, and Dental
coverage for retirees
Premium Sharing: The District pays 40.00% of
single-rate premium plus an additional 4.00% of
premium for each year of service above 20 years, up
to total of 76.00% with 29 years of service, and
retirees pay remainder of premium. The District
pays 100.00% of single-rate premium for 30+ years
of service.
DURATION
Coverage is provided until
retirees are eligible for Medicare
or until retirees die, whichever is
earlier. Spousal coverage ends
with Spousal-Medicare eligibility
if earlier than above.
Spousal Coverage: Available if paid by retirees.
II. TEACHERS
A) Retired prior to 7/1/2002
N/A - Already retired
Act 110/43
Same as I.
B) Retire between 7/1/2002 Upon completion of 20
and 6/30/10
years of service.
Coverage: Medical, Prescription-drug, and Dental Same as I.
for retirees
C) Retiree 7/1/10 and later
years of service.
Premium Sharing: The District pays $4,000
Same as I.
towards single-rate premium for 35 years of service
and 4.00% less for each year of service less than 35
years. No retiree may be eligible to receive
employer contribution for more than 10 years.
III. SUPPORT STAFF
A) Retired prior to 7/1/2010
years of service.
Coverage: Medical, Prescription-drug, and Dental Same as I.
for retirees
B) Retiree 7/1/10 and later
years of service.
Premium Sharing: The District pays $4,000
Same as I.
towards single-rate premium for 35 years of service
and 4.00% less for each year of service less than 35
years. No retiree may be eligible to receive
employer contribution for more than 10 years.
Retired employees who elect coverage remit payments quarterly as calculated by the Business Office.
For the year ended June 30, 2012, the retiree-premiums paid by the District were $623,911.
87
Note 11.
Other Post-Employment Benefits (Continued)
Funding Policy
The contribution requirements of plan members are established by contractual obligations and may be
amended by the Board of School Directors. Required contributions are based on projected pay-as-you-go
financing requirements. Plan members receiving benefits contributed $221,260 through their required
monthly contributions. Costs related to the funding of the District’s OPEB obligation are budgeted and
paid for through the District’s general fund.
Annual OPEB Cost
For 2012, the District funded 90.00% of its annual OPEB cost of $827,810 for the District’s employees.
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2012 and the preceding year are as follows:
Fiscal Year Ended
6/30/2009
6/30/2010
6/30/2011
6/30/2012
$
$
$
$
Annual
OPEB Cost
780,715
776,810
829,985
827,810
Percentage of
Annual OPEB Cost
Contributed
69.00%
77.00%
84.00%
90.00%
Net OPEB
Obligation
$
238,271
$
413,676
$
546,394
$
631,533
Funding Progress
For the year ended June 30, 2012, the District has estimated the cost (annual expense) of providing retiree
health, and dental-care benefits through an actuarial valuation as of January 1, 2010. In accordance with
GASB Statement No. 45, the valuation computes an annual required contribution, which represents a
level of funding that, if paid on an o-going basis, is projected to cover normal cost each year and amortize
any unfunded actuarial liabilities over a period of thirty years. This valuation’s computed contribution
and actual funding are summarized as follows:
Annual required contribution
Interest on Net OPEB Obligation
Adjustment to ARC
Annual OPEB cost
Amounts contributed
Payments of current premiums and claims
Advance funding
Increase in net OPEB obligation
OPEB obligation - beginning of the year
OPEB obligation - end of year
$
$
88
Amount
836,766
24,588
(33,544)
827,810
(742,671)
85,139
546,394
631,533
Note 11.
Other Post-Employment Benefits (Continued)
The required schedule of funding progress immediately following the notes to the financial statements
presents information about whether the actuarial value of plan assets is increasing or decreasing relative
to the actuarial accrued liability for benefits.
The annual OPEB cost, the percentage contributed to the plan, and the net OPEB obligation for the
current year are as follows:
For Fiscal Year Ended June 30, 2011:
Annual OPEB cost
Percentage contributed
Net OPEB obligation
$
$
Amount
827,810
90%
631,533
Actuarial Methods and Assumptions
Actuarial valuations of an on-going plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the health-care cost trend. Amounts are determined
regarding the funded status of the plan, and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
Projections of benefits for financial-reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2011, actuarial valuation, the Entry-Age Normal cost method was used. The actuarial
assumptions include a 4.50% investment rate of return (net of administrative expenses), which is a
blended rate of the expected long-term and short-term investment returns on the District’s own assets to
be used for funding the current liability, and an annual health-care cost trend rate of 7.50% initially,
reduced by decrements to an ultimate rate of 5.50% by 2014. Both rates include a 4.50% inflation
assumption. The UAAL is being amortized over a 30-year open period as a level-dollar amount.
A separate, audited GAAP-basis post-employment benefit plan report is not issued.
All other postemployment benefits obligations are funded by the General Fund.
89
Note 12.
Derivative Financial Instruments
Objective of the Interest-Rate Swaps
As a means to manage interest-rate exposure, the District entered into two separate pay-fixed, receivevariable interest-rate swaps in connection with its Series of 1998 and 2000 General Obligation Bonds.
The swap contracts remained in effect after the refunding of the 1998 and 2000 bonds. The intention of
the swaps was to effectively change the District’s variable-interest rates on the bonds to lower syntheticfixed rates.
Terms, Fair Value, and Credit Risk
The terms, fair values, and credit risks of the outstanding swaps as of June 30, 2012, were as follows.
The notional amounts of the swaps matched the principal amounts of the original associated debt rather
than the 2008 Series. The District’s swap agreements contain scheduled reductions to outstanding
notional amounts that are expected to approximately follow scheduled or anticipated reductions in the
associated “bonds payable” category.
GO Bonds
Series of 2012
GO Bonds
Series of 2012
Notional
Amounts
Effective
Date
Fixed Rate
Paid
Variable Rate
Received
$ 21,125,000
5/1/2006
3.816%
67% of LIBOR
4,485,000
$ 25,610,000
5/1/2006
3.836%
67% of LIBOR
Fair
Values
Swap
Termination
Date
$
(2,579,233)
2/1/2018
(607,643)
(3,186,876)
5/1/2020
$
For the year ended June 30, 2012, the derivative instruments are considered to investment derivatives,
with their fair values recorded as noncurrent liabilities on the Statement of Net Assets and the changes in
their fair values are recognized against investment income in the Statement of Activities. During the year
ended June 30, 2012, $18,091 was recorded as an interest expense reduction in the Statement of Activities
to reflect the change in fair value of the derivatives from July 1, 2011.
90
Note 12.
Derivative Financial Instruments (Continued)
Fair Value
Because interest rates have declined, all swaps had a negative fair value as of June 30, 2012. The
negative fair values may be countered by reductions in total interest payments required under the
variable-rate bonds, creating lower synthetic-fixed interest rates. Because the coupons on the
government’s variable-rate bonds adjust to changing interest rates, the bonds do not have corresponding
fair-value increases. The fair values were estimated using the zero-coupon method. This method
calculates the future net settlement payments required by the swap, assuming that the current forward
rates implied by the yield curve correctly anticipate future spot-interest rates. These payments are then
discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due
on the date of each future net settlement on the swaps.
Credit Risk
As of June 30, 2012, the District was not exposed to credit risk because the swaps had negative fair
values. However, should interest rates change and the fair values of the swaps become positive, the
District would be exposed to credit risk in the amount of the derivatives’ fair values.
The swap agreements contain a collateral agreement with the counterparty. The swaps require full
collateralization of the fair value of the swap should the counterparty’s credit rating fall below A as issued
by Standard & Poor’s Rating Service or A3 as issued by Moody’s Investors Service. Collateral on all
swaps is to be in the form of U.S. Government securities held by a third-party custodian.
The District also enters into master-netting agreements when the District has entered into more than one
derivative transaction with one counterparty.
Under the terms of these agreements, should one party become insolvent or otherwise default on its
obligations, close-out netting provisions permit the non-defaulting party to accelerate and terminate all
outstanding transactions and net the transactions’ fair values so that a single sum will be owed by, or
owed to, the non-defaulting party.
The District has executed two swap transactions with one counterparty. That counterparty is rated AAby Standard & Poor’s Rating Service and Aaa by Moody’s Investors Service.
Basis Risk
The swap exposes the District to basis risk should the relationship between the LIBOR BBA and the
variable rates charged on the loan change the synthetic rate on the bonds. The effect of the difference in
basis is indicated by the difference between the intended synthetic rate (3.816% for Series of 1998 Bonds
and 3.836% for Series of 2000 Bonds) and the actual synthetic rate as of June 30, 2012 (5.188% for Series
of 1998 Bonds and 5.208% for Series of 2000 Bonds). If a change occurs that results in the rates moving
to convergence, the expected cost savings may not be realized.
91
Note 12.
Derivative Financial Instruments (Continued)
Tax Risk
Tax risk is a specific type of basis risk. Tax risk is a permanent mismatch between the interest rate paid
on the District’s underlying variable-rate bonds and the rate received on the swap caused by a reduction
or elimination in the benefits of the tax exemption for municipal bonds (e.g., a tax cut that results in an
increase in the ratio of tax exempt to taxable yields). The District is receiving 67% of LIBOR (a taxable
index) on the swap and would experience a shortfall relative to the rate paid on its bonds if marginal
income-tax rates decrease relative to expected levels, thus increasing the overall cost of its synthetic-fixed
rate debt.
Termination Risk
The derivative contracts use the International Swap Dealers Association Master Agreement, which
includes standard termination events, such as a failure to pay and bankruptcy. The District or the
counterparty may terminate the swap if the other party fails to perform under the terms of the contract. If
the swap is terminated, the variable-rate bonds would no longer carry synthetic interest rates. Also, if at
the time of termination the swap has a negative fair value, the District would be liable to the counterparty
for a payment equal to the swap’s fair value.
Note 13.
Commitments and Contingencies
Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets
and errors or omissions. Significant losses are covered by commercial insurance for all major programs.
For insured programs, there have been no significant reductions in settlement coverage. Settlement
amounts have not exceeded insurance coverage for the current year or the three prior years.
Grant Programs
The District participates in numerous state and Federal grant programs, which are governed by various
rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject
to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied
with the rules and regulations governing the grants, refunds of any money received may be required, and
the collectability of any related receivables at June 30, 2012, may be impaired. In the opinion of the
District, there are no significant contingent liabilities relating to compliance with the rules and regulations
governing the respective grants; therefore, no provision has been recorded in the accompanying financial
statements for such contingencies.
92
Note 13.
Commitments and Contingencies (Continued)
Construction Contracts
The District has one active construction contract, completion of the HVAC system at the Intermediate
School, as of June 30, 2012.
At the year end the government's commitments with contractors are as follows:
Project
Intermediate School building, furniture and equipment
Spent-to-Date
$
59,944,077
Remaining
Commitment
$
5,690
General Obligation Bonds - Series A of 2012
The Board of School Directors and the District’s management team anticipate the refinancing of the
General Obligation Bonds - Series of 2012, prior to their maturity on April 16, 2013.
Note 14.
Fund Balance Classifications
The District has classified certain portions of the General Fund and Capital Projects fund balance as
follows:
General
Capital Projects
Fund
Fund
Nonspendable, reported in:
Prepaids
$
673,760
$
Restricted for, reported in:
Capital Projects Fund
-
2,667,397
Committed to, reported in:
Health insurance reserve
Various high school projects
PSERS reserve
1,000,000
38,876
3,341,808
-
Assigned, reported in:
Budget utilization for 2012-2013
Athletic Fund
1,045,472
56,741
-
Unassigned, reported in:
General Fund
$
93
7,201,135
13,357,792
$
2,667,397
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION - OTHER POST-EMPLOYMENT
BENEFIT PLAN
Actuarial
Valuation
Date
1/1/2008
1/1/2010
Actuarial
Value of
Assets
(a)
$
$
-
Actuarial
Accrued
Liability
(AAL)Entry Age
(b)
$ 6,708,692
$ 7,258,535
Unfunded
AAL
(UAAL)
(b-a)
$ 6,708,692
$ 7,258,535
95
Funded
Ratio
(a/b)
0.00%
0.00%
$
$
Covered
Payroll
(c)
37,304,072
43,160,439
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
17.98%
16.82%
SUPPLEMENTARY INFORMATION
GENERAL FUND
SCHEDULES OF REVENUES AND OTHER FINANCING SOURCES - BUDGET TO ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2012
Final Budget
Actual
Variance with
Final Budget
Positive (Negative)
58,998,664
$
LOCAL REVENUE SOURCES
Current Real Estate Tax
$
Interim Real Estate Tax
Public Utility Realty Tax
Payments in Lieu of Current Taxes
58,817,407
$
450,000
267,778
88,000
89,568
-
181,257
(182,222)
1,568
753
753
4,050,000
5,071,438
1,021,438
Real Estate Transfer Tax
650,000
585,655
Unallocated EIT
300,000
Earned Income Taxes - Act 511
Delinquent Real Estate Taxes
(64,345)
-
(300,000)
1,800,000
1,445,740
(354,260)
Delinquent Earned Income Taxes
215,000
85,340
(129,660)
Interest on Investments
275,000
198,794
(76,206)
105,873
105,873
379,250
Admissions
-
Federal IDEA Revenue Received as Pass-Through
800,250
1,179,500
Federal Revenues from Other Sources
59,500
70,747
11,247
Rentals
60,000
42,295
(17,705)
Contributions from Private Sources
713
713
10,000
-
14,477
4,477
Summer School Tuition
4,500
52,092
47,592
Adult Education Tuition
37,000
30,591
140,000
158,147
Revenue from Community Service Activities
40,000
44,687
4,687
Miscellaneous Revenue
28,754
83,677
54,923
Energy Incentives/Credits
45,000
45,416
416
67,870,411
904
68,572,849
Regular Day School Tuition
Receipts from Other LEAs in Pennsylvania
Refunds of a Prior Year's Expenditures
TOTAL REVENUES FROM LOCAL SOURCES
$
97
$
(6,409)
18,147
$
904
702,438
GENERAL FUND
SCHEDULES OF REVENUES AND OTHER FINANCING SOURCES - BUDGET TO ACTUAL (Continued)
Variance with
Final Budget
Positive (Negative)
Actual
Final Budget
STATE REVENUE SOURCES
Basic Instructional Subsidy
$
Tuition - Section 1305/1306
7,545,911
$
7,886,770
$
340,859
100,000
212,535
Vocational Education
Special Education
Early Intervention
2,431,168
-
3
2,431,071
10,290
3
(97)
10,290
Transportation (Regular & Additional)
1,200,000
1,185,940
(14,060)
Rentals & Sinking Fund Payments
485,000
651,283
Health Services
112,251
111,884
1,377,319
1,377,319
State Property Tax Reduction Allocation
Pa Accountability Grant
-
112,535
166,283
(367)
-
183,342
183,342
State Share Soc Security and Medicare Tax
1,492,400
1,694,390
201,990
State Share of Retirement Contributions
1,954,050
1,780,775
(173,275)
TOTAL STATE REVENUE SOURCES
$
16,698,099
$
17,525,602
$
827,503
$
443,800
$
388,653
$
(55,147)
FEDERAL REVENUE SOURCES
Title I - Basic Program
Title II - Improving Teacher Quality
Title III - ESL
ARRA - Education Jobs Fund
136,850
110,467
16,900
41,537
24,637
8,546
12,649
8,546
12,649
-
IDEA, Section 619
School Based Access Medical Reimbursement
TOTAL FEDERAL REVENUE SOURCES
$
200,000
797,550
$
$
395,300
$
561,852
(26,383)
$
(200,000)
(235,698)
$
(395,300)
OTHER REVENUE SOURCES
Proceeds from Extended Term Financing
Sale of Capital Assets
1,000
10,968
9,968
TOTAL OTHER REVENUE SOURCES
$
396,300
$
10,968
$
(385,332)
TOTAL LOCAL, STATE, FEDERAL AND OTHER
REVENUES
$
85,762,360
$
86,671,271
$
908,911
98
GENERAL FUND
SCHEDULES OF EXPENDITURES AND OTHER FINANCING USES BUDGET TO ACTUAL (Continued on next page)
Original
Budget
EXPENDITURES
INSTRUCTION
REGULAR PROGRAMS
Salaries
Employee Benefits
Purchased Professional Services
Supplies and Material
Property
Other Objects
TOTAL REGULAR PROGRAMS
SPECIAL PROGRAMS
Salaries
Employee Benefits
Property
Other Objects
TOTAL SPECIAL PROGRAMS
VOCATIONAL EDUCATION
Salaries
Employee Benefits
Other Objects
TOTAL VOCATIONAL EDUCATION
OTHER INSTRUCTIONAL PROGRAMS
Salaries
Employee Benefits
Property
Other Objects
TOTAL OTHER INSTRUCTIONAL
NONPUBLIC SCHOOL PROGRAMS
TOTAL NONPUBLIC SCHOOL PROGRAMS
ADULT EDUCATION PROGRAMS
Salaries
Employee Benefits
TOTAL ADULT EDUCATION
TOTAL INSTRUCTIONAL
$
$
$
$
$
$
Transfers
Increase
(Decrease)
30,938,659
9,973,749
201,775
300,350
1,048,025
1,327,260
593,900
5,600
44,389,318
$
3,998,150
1,470,650
3,069,775
840,575
36,075
500
9,415,725
$
1,094,500
1,094,500
$
154,700
41,500
219,500
193,900
37,300
3,000
649,900
$
$
$
$
$
$
$
Final Revised
Budget
Actual
(581,700) $
(10,600)
(164,850)
(32,800)
249,850
(172,425)
(42,200)
3,100
(751,625) $
30,356,959
9,963,149
36,925
267,550
1,297,875
1,154,835
551,700
8,700
43,637,693
$
$
(150,000)
400
300
56,950
135,650
1,000
44,300 $
3,998,150
1,320,650
3,070,175
300
897,525
171,725
1,000
500
9,460,025
$
$
500
(9,950)
9,450
$
500
1,084,550
9,450
1,094,500
$
351,600 $
78,600
300
(5,700)
600
425,400 $
506,300
120,100
219,500
300
193,900
31,600
3,000
600
1,075,300
$
Variance with
Final Budget
Positive
(Negative)
30,356,879
9,700,494
36,787
207,983
1,297,868
1,153,881
514,422
6,901
43,275,215
$
3,988,524
1,278,920
2,935,736
274
897,282
170,864
9,271,600
$
1,055,706
8,659
1,064,365
$
$
$
506,208
120,005
82,109
222
157,468
21,928
525
888,465
$
92
95
137,391
78
36,432
9,672
3,000
75
186,835
$
$
$
$
$
$
80
262,655
138
59,567
7
954
37,278
1,799
362,478
9,626
41,730
134,439
26
243
861
1,000
500
188,425
500
28,844
791
30,135
$
$
-
$
$
5,050
5,050
$
$
5,050
5,050
$
$
5,002
5,002
$
$
48
48
$
$
$
3,131
448
21,691
8,477
33,747
$
$
3,150
450
25,000
9,200
300
38,100
$
$
1,000
100
1,100
$
$
2,150
350
25,000
9,200
300
37,000
$
19
2
3,309
723
300
4,353
$
55,586,443
$
(275,775) $
55,310,668
$
54,538,394
$
772,274
99
GENERAL FUND
SCHEDULES OF EXPENDITURES AND OTHER FINANCING USES BUDGET TO ACTUAL (Continued)
Original
Budget
EXPENDITURES
SUPPORT SERVICES
PUPIL PERSONNEL
Salaries
Employee Benefits
Property
Other Objects
TOTAL PUPIL PERSONNEL
INSTRUCTIONAL STAFF
Salaries
Employee Benefits
Property
Other Objects
TOTAL INSTRUCTIONAL STAFF
ADMINISTRATION
Salaries
Employee Benefits
Property
Other Objects
TOTAL ADMINISTRATION
PUPIL HEALTH
Salaries
Employee Benefits
Property
TOTAL PUPIL HEALTH
Transfers
Increase
(Decrease)
Final Revised
Budget
Actual
Variance with
Final Budget
Positive
(Negative)
$
1,916,425
677,400
2,425
17,150
73,300
500
875
$
80,000 $
12,100
90,950
300
(1,100)
(11,000)
-
1,996,425
689,500
93,375
300
16,050
62,300
500
875
$
1,995,473
689,416
93,288
145
10,566
36,692
-
$
952
84
87
155
5,484
25,608
500
875
$
2,688,075
$
171,250
$
2,859,325
$
2,825,580
$
33,745
$
989,650
401,250
170,550
9,300
27,725
152,300
27,500
4,450
1,782,725
$
248,700 $
13,100
(32,250)
2,575
14,750
18,600
24,350
2,050
291,875 $
1,238,350
414,350
138,300
11,875
42,475
170,900
51,850
6,500
2,074,600
$
1,238,339
414,307
47,119
4,043
42,393
162,994
39,882
6,088
1,955,165
$
11
43
91,181
7,832
82
7,906
11,968
412
119,435
2,523,450
890,450
181,225
6,600
193,425
29,400
300
26,000
3,850,850
$
$
(500)
9,250
30,350
1,300
6,550
25,600
72,550 $
2,523,450
890,450
180,725
15,850
223,775
30,700
6,850
51,600
3,923,400
$
2,367,882
878,859
113,764
10,507
223,519
23,288
51,068
3,668,887
$
574,900
213,900
106,500
1,350
4,750
13,500
6,000
920,900
$
$
76,000
(1,050)
(4,250)
12,900
(6,000)
77,600 $
574,900
213,900
182,500
300
500
26,400
998,500
$
533,650
201,375
182,416
105
75
17,427
935,048
$
$
$
$
$
$
100
$
$
$
$
$
$
$
$
$
155,568
11,591
66,961
5,343
256
7,412
6,850
532
254,513
41,250
12,525
84
195
425
8,973
63,452
GENERAL FUND
Original
Budget
EXPENDITURES
BUSINESS
Salaries
Employee Benefits
Property
Other Objects
TOTAL BUSINESS
$
$
425,000
152,250
43,750
1,100
3,300
41,900
6,900
674,200
OPERATION AND MAINTENANCE OF PLANT SERVICES
Salaries
$
2,396,850
Employee Benefits
1,017,900
116,975
1,725,150
472,400
1,136,950
Property
11,400
Other Objects
4,950
TOTAL OPERATION AND
MAINTENANCE OF PLANT SERVICES
STUDENT TRANSPORTATION SERVICES
Salaries
Employee Benefits
Property
Other Objects
TOTAL STUDENT TRANSPORTATION
SERVICES
CENTRAL
Salaries
Employee Benefits
Property
Other Objects
TOTAL CENTRAL
Transfers
Increase
(Decrease)
$
Final Revised
Budget
4,700
10,850
6,900
(4,250)
1,300
19,500
$
$
(85,000)
3,100
500
(151,000)
(304,500)
6,000
4,700
$
Actual
425,000
152,250
48,450
11,950
10,200
37,650
8,200
693,700
$
$
2,311,850
1,021,000
117,475
1,574,150
472,400
832,450
17,400
9,650
$
Variance with
Final Budget
Positive
(Negative)
399,879
149,893
48,355
11,894
10,179
36,851
8,119
665,170
$
$
2,308,341
1,020,922
84,492
1,572,102
438,646
758,749
12,926
9,628
$
3,509
78
32,983
2,048
33,754
73,701
4,474
22
$
$
25,121
2,357
95
56
21
799
81
28,530
$
6,882,575
$
(526,200)
$
6,356,375
$
6,205,806
$
150,569
$
24,750
15,600
3,330,500
500
400
$
1,800
3,500
401,000
-
$
26,550
19,100
3,731,500
500
400
$
26,491
18,989
3,731,063
435
-
$
59
111
437
65
400
$
3,371,750
$
406,300
$
3,778,050
$
3,776,978
$
1,072
$
$
5,200
3,650
11,200
3,950
(36,600)
40,850
550
28,800
$
$
833,849
318,163
58,298
53,144
44,680
167,327
116,172
2,206
1,593,839
$
$
896,625
318,200
86,050
53,200
50,675
183,700
118,850
7,350
1,714,650
$
$
896,625
313,000
82,400
42,000
46,725
220,300
78,000
6,800
1,685,850
$
62,776
37
27,752
56
5,995
16,373
2,678
5,144
120,811
$
$
123,850
123,850
$
$
$
$
123,850
123,850
$
$
123,429
123,429
$
$
421
421
$
21,980,775
$
$
22,522,450
$ 21,749,902
$
772,548
$
OTHER SUPPORT SERVICES
TOTAL OTHER SUPPORT SERVICES
TOTAL SUPPORT SERVICES
101
541,675
GENERAL FUND
Original
Budget
EXPENDITURES
OPERATION OF NON-INSTRUCTIONAL SERVICES
STUDENT ACTIVITIES
Salaries
$
Employee Benefits
Property
Other Objects
TOTAL STUDENT ACTIVITIES
$
COMMUNITY SERVICES
Salaries
Employee Benefits
Other Objects
TOTAL COMMUNITY SERVICES
TOTAL OPERATION OF
NON-INSTRUCTIONAL SERVICES
Transfers
Increase
(Decrease)
768,900
160,450
57,500
50,000
130,300
112,900
47,000
5,600
1,332,650
$
$
$
65,550
11,100
9,950
86,600
$
1,419,250
$
$
$
$
Final Revised
Budget
Actual
137,500 $
5,900
27,150
(8,350)
10,860
88,290
(16,750)
32,050
276,650 $
906,400
166,350
84,650
41,650
141,160
201,190
30,250
37,650
1,609,300
$
$
200
100
1,600
(450)
1,450 $
65,550
11,100
200
100
1,600
9,500
88,050
$
1,697,350
278,100
$
905,388
166,316
81,533
41,013
138,584
200,683
20,670
36,350
1,590,537
$
$
$
63,929
8,297
175
60
1,573
7,650
81,684
$
1,621
2,803
25
40
27
1,850
6,366
$
1,672,221
$
25,129
$
$
-
$
-
$
FACILITIES ACQUISITION, CONSTRUCTION AND IMPROVEMENT SERVICES
EXISTING BUILDING IMPROVEMENT SERVICES
$
$
$
Property
TOTAL
EXISTING BUILDING
IMPROVEMENT SERVICES
$
$
$
-
$
$
-
TOTAL FACILITIES ACQUISITION,
CONSTRUCTION AND
IMPROVEMENT SVC.
-
$
-
$
-
$
-
$
OTHER EXPENDITURES AND FINANCING USES
DEBT SERVICE AND OTHER EXPENDITURES/FINANCING USES
Interest
$
3,906,500 $ (1,700,000) $
Redemption of Bonds or Capital Leases
4,701,000
575,000
Refund of Prior Year's Receipts
450,000
TOTAL DEBT SERVICE AND OTHER
EXPENDITURES/FINANCING
USES
$
9,057,500 $ (1,125,000) $
INTERFUND TRANSFERS - OUT
BUDGETARY RESERVE
TOTAL OTHER EXPENDITURES AND
FINANCING USES
TOTAL GENERAL FUND EXPENDITURES
$
$
2,577,771
5,267,833
78,019
$
7,932,500
$
7,923,623
$
8,877
843,000
$
779,825
$
63,175
$
-
8,703,448
$
72,052
$ 86,663,965
$
1,642,003
62,000
$
$
200,000
$
(200,000) $
$
9,319,500
$
(544,000) $
8,775,500
$
88,305,968
$
-
88,305,968
$
$
1,012
34
3,117
637
2,576
507
9,580
1,300
18,763
2,206,500
5,276,000
450,000
$
102
781,000
Variance with
Final Budget
Positive
(Negative)
-
$
$
-
(371,271)
8,167
371,981
STATEMENT OF CHANGES IN
ASSETS AND LIABILITIES FIDUCIARY FUND - STUDENT
ACTIVITIES AGENCY FUND
JUNE 30, 2012
The Agency Fund accounts for assets held by the District as an agent for various
student groups within the Middle and High Schools.
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES STUDENT ACTIVITIES AGENCY FUND
Beginning Balance,
7/1/11
Additions
ASSETS
$
Reductions
189,734
$ 468,675
$ 420,718
12,810
81
81
Ending Balance,
6/30/12
$
237,691
Investments
TOTAL ASSETS
$
202,544
$ 468,756
$ 420,799
$
250,501
LIABILITIES
Due to student groups
TOTAL LIABILITIES
$
$
202,544
202,544
$ 468,756
$ 468,756
$ 420,799
$ 420,799
$
$
250,501
250,501
104
12,810
STATISTICAL SECTION
JUNE 30, 2012
105
STATISTICAL SECTION
Unaudited
This part of the Dallastown Area School District’s comprehensive financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the District’s
overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader
understand how the District’s financial performance and well-being
have changed over time.
107
Revenue Capacity
These schedules contain information to help the reader assess the
District’s most significant local revenue source, property tax.
121
Debt Capacity
These schedules contain information to help the reader assess the
affordability of the District’s current levels of outstanding debt and
the District’s ability to issue additional debt in the future.
126
Demographic and Economic Information
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
District’s financial activities take place.
131
Operating Information
These schedules contain service and infrastructure data to help
the reader understand how the information in the District’s financial
report relates to the services the District provides and the activities
it performs.
133
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual reports for the relevant year. The District implemented GASB Statement
34 with the fiscal year beginning fiscal year 2003.
106
NET ASSETS BY COMPONENT (continued on the next page)
LAST TEN FISCAL YEARS
ACCRUAL BASIS OF ACCOUNTING
Unaudited
Fiscal Years Ending June 30,
2011
2010
2009
2008
20071
$39,780,125
10,054,139
$ 49,834,264
$35,685,642
11,426,597
$ 47,112,239
$33,079,273
16,577,989
$ 49,657,262
$31,087,931
15,748,860
$ 46,836,791
$ 28,384,087
11,030,085
$ 39,414,172
$
$
2012
Governmental activities
Invested in capital assets, net
of restricted debt1
$40,579,133
Restricted
1,104,467
Unrestricted
9,403,683
Total governmental activities net assets $ 51,087,283
Business-type activities
of restricted debt1
$
Unrestricted
Total business-type activities net assets $
280,224 $
(226,072)
54,152 $
Total primary government
of restricted debt1
$ 40,859,357
Restricted
1,104,467
Unrestricted
9,177,611
Total primary government net assets
$ 51,141,435
188,010 $
(145,048)
42,962 $
$ 39,968,135
9,909,091
$ 49,877,226
205,509 $
(79,817)
125,692 $
$ 35,891,151
11,346,780
$ 47,237,931
196,166
5,563
201,729
$ 33,275,439
16,583,552
$ 49,858,991
$
194,453
180,296
374,749
$ 31,282,384
15,929,156
$ 47,211,540
$
$ 28,521,065
11,362,433
$ 39,883,498
Source: District Audited Financial Statements
1
As restated for a prior period adjustments noted below by fiscal year:
During Fiscal Year 2006, it was discovered that certain capital assets on the government-wide financial statements
were not being depreciated. Cumulative effect of the restatement on the prior year was to decrease total capital assets,
net of related debt by $2,367,741.
During Fiscal Year 2007, it was discovered that the total government-wide fixed assets were understated, as well as,
the compensated absences, which lead to a net effect of $217,088. This prior period adjustment
caused an increase of $1,168,119 to the invested in capital assets net of related debt and a decrease of unrestricted net assets
by $951,031.
It was also discovered that the business-type fixed assets were overstated by $15,825, which lead
to an decrease of $15,825 to the invested in capital assets net of related debt.
107
136,978
332,348
469,326
20061
2005
2004
2003
$28,924,692
2,981,931
$ 31,906,623
$24,886,463
3,724,997
$ 28,611,460
$24,160,164
1,913,509
$ 26,073,673
$21,704,497
345
3,126,028
$ 24,830,870
$
$
$
$
94,584
293,121
387,705
$ 29,019,276
3,275,052
$ 32,294,328
$
107,002
200,058
307,060
$ 24,993,465
3,925,055
$ 28,918,520
$
132,887 $
175,798
308,685 $
$ 24,293,051
2,089,307
$ 26,382,358
119,599
200,050
319,649
$ 21,824,096
345
3,326,078
$ 25,150,519
108
CHANGES IN NET ASSETS (continued on the next page)
Unaudited
2012
Expenses
Instruction
Instructional Student Support
Administrative and financial services
Operation and maintenance of plant services
Student Activities
Community Services
Unallocated Depreciation Expenses
Fiscal Years Ending
Fiscal
June
Years
30, Ending June 30,
2010
2009
2008
2007
$ 58,420,619 $ 58,897,241 $ 55,934,160 $ 51,629,450 $ 48,404,997
6,032,681
6,230,885
5,695,243
5,756,443
5,195,389
6,848,520
7,698,756
7,316,163
6,602,613
6,188,731
6,432,257
6,635,209
6,166,019
5,613,029
5,495,986
3,782,620
3,697,160
3,031,740
3,139,890
3,057,655
1,677,635
1,761,159
1,572,326
1,508,364
1,392,076
87,496
89,186
83,651
97,065
87,516
2,115,132
1,428,216
3,929,371
5,363,700
3,182,818
85,396,960
86,437,812
83,728,673
79,710,554
73,005,168
Food Services
Total Primary Government Expenses
2011
$45,539,366
4,813,271
5,860,659
5,250,511
2,761,395
1,346,380
83,311
3,062,133
68,717,026
2,749,087
3,177,441
2,930,583
2,930,330
2,786,373
2,440,732
$ 88,146,047
$ 89,615,253
$ 86,659,256
$ 82,640,884
$ 75,791,541
$ 71,157,758
$
$
$
$
$
$
Program Revenues
Charges for Services1
Charges for Athletic Activities
Receipts from Other Leas in PA
Charges for Community Services Activities
Charges for Tuition
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Program Revenues
Charges for Services
Charges for Daily Sales Reimbursable Programs
Charges for Daily Sales Non-Reimbursable Programs
Charges for Special Functions
Other Food Service Revenue
Operating Grants and Contributions
Total Business-Type Program Revenues
Total Primary Government Program Revenues
Net Revenues (Expenses)
Business-type Activities
Total Primary Governmental Expense
105,873
158,147
46,868
44,687
10,101,620
10,457,195
132,814
118,649
42,577
40,589
12,661,423
1,000,000
13,996,052
108,706
120,788
47,293
52,936
11,140,031
11,469,754
110,279
142,339
40,460
48,210
8,610,230
8,951,518
124,820
137,399
36,510
65,063
9,878,121
10,241,913
120,862
104,935
39,641
64,477
9,019,248
9,349,163
869,267
1,130,422
1,008,400
989,524
1,026,473
1,011,914
732,996
53,520
7,274
934,390
2,597,448
823,250
32,406
13,058
1,095,510
3,094,646
851,674
35,832
4,701
953,458
2,854,065
827,696
32,322
10,875
895,734
2,756,151
830,182
27,971
9,725
784,279
2,678,630
749,009
30,064
9,351
699,662
2,500,000
$ 13,054,643
$ 17,090,698
$ 14,323,819
$ 11,707,669
$ 12,920,543
$ 11,849,163
$ (74,939,765) $ (72,441,760) $ (72,258,919) $ (70,759,036) $ (62,763,255) $ (59,367,863)
(151,639)
(82,795)
(76,518)
(174,179)
(107,743)
59,268
$ (75,091,404) $ (72,524,555) $ (72,335,437) $ (70,933,215) $ (62,870,998) $ (59,308,595)
Source: District Audited Financial Statements, District Business Office Records
1
For Fiscal Years Ended 2003 through 2006, certain charges for services data was reallocated from the operating grants and contributions
line and detailed under the charges for services line item. This was done to provide comparable data across fiscal years.
109
2006
2005
2004
2003
$42,329,791
6,937,278
4,004,277
6,186,868
2,472,211
1,153,720
62,419
2,027,766
65,174,330
$36,202,932
5,988,728
2,736,998
5,817,891
2,225,459
1,032,870
62,659
1,220,268
55,287,805
$34,436,226
5,363,848
2,296,973
4,924,962
2,008,405
985,480
56,075
598,993
50,670,962
$31,079,590
3,123,617
3,963,259
4,304,735
2,086,846
974,885
60,334
932,611
1,650,908
48,176,785
2,329,295
2,223,092
1,997,735
1,829,265
$ 67,503,625
$ 57,510,897
$ 52,668,697
$ 50,006,050
$
$
$
$
60,945
125,674
28,638
58,303
8,271,347
8,544,907
88,204
135,487
35,888
57,489
5,246,848
5,563,916
74,706
130,731
27,483
28,012
4,697,647
4,958,579
103,728
149,330
28,236
66,988
4,662,113
5,010,395
1,024,032
981,687
840,431
778,215
696,555
32,280
15,592
643,979
2,412,438
636,978
34,477
20,903
575,233
2,249,278
601,631
57,695
4,767
480,207
1,984,731
593,547
60,285
4,389
390,319
1,826,755
$ 10,957,345
$
7,813,194
$
6,943,310
$
6,837,150
$ (56,629,423) $ (49,723,889) $ (45,712,383) $ (43,166,390)
83,143
26,186
(13,004)
(2,510)
$ (56,546,280) $ (49,697,703) $ (45,725,387) $ (43,168,900)
110
CHANGES IN NET ASSETS (continued)
Unaudited
General Revenues
Property Taxes, levied for
general purposes, net
Public Utility Realty, Transfer, Earned
Income, and Per Capita for General
Purposes, net
Grants, Subsidies and contributions
not restricted
Investment Earnings
Gain (Loss) on disposal of assets
Transfers
Miscellaneous Income
Investment Earnings
Loss on disposal of assets
Transfers
Miscellaneous Income
Total Business-Type Activities
Change in Net Assets
Prior Period Adjustments1
Prior Period Adjustments1
Fiscal Years Ending
FiscalJune
Years
30,Ending June 30,
2010
2009
2008
2011
$ 60,848,750
$ 60,478,773
$ 58,302,927
$ 56,189,372
$ 53,933,592
$ 51,032,863
5,832,754
6,206,666
5,405,557
5,727,422
6,410,146
6,068,470
9,264,089
203,583
(162,648)
206,256
76,192,784
8,101,973
309,664
66,709
75,163,785
8,485,667
849,175
65,266
73,108,592
9,255,118
2,335,616
71,979
73,579,507
7,654,609
2,120,800
66,727
70,185,874
7,505,613
2,251,960
16,506
66,875,412
181
162,648
162,829
65
65
481
481
1,062
97
1,159
9,958
3,208
13,166
22,153
200
22,353
$ 76,355,613
$ 75,163,850
$ 73,109,073
$ 73,580,666
$ 70,199,040
$ 66,897,765
$ 1,253,019
$ 2,722,025
$
$ 2,820,471
$ 7,422,619
$ 7,507,549
11,190
$ 1,264,209
(82,730)
$ 2,639,295
849,673
(3,394,696)
(76,037)
(173,020)
$ (2,621,060) $ 2,647,451
(94,577)
$ 7,328,042
1
2007
2012
As restated for a prior period adjustments noted below by fiscal year:
During Fiscal Year 2006, it was discovered that certain capital assets on the government-wide financial statements
were not being depreciated. Cumulative effect of the restatement on the prior year was to decrease total capital assets,
net of related debt by $2,367,741.
During Fiscal Year 2007, it was discovered that the total government-wide fixed assets were understated, as well as,
the compensated absences, which lead to a net effect of $217,088. This prior period adjustment
caused an increase of $1,168,119 to the invested in capital assets net of related debt and a decrease of unrestricted net assets
by $951,031.
It was also discovered that the business-type fixed assets were overstated by $15,825, which lead
to an decrease of $15,825 to the invested in capital assets net of related debt.
During Fiscal Year Ended 2010, GASB 53 was implemented which caused a prior period adjustment
of $3,394,696 to record the cumulative fair value of the District's swap agreements as they relate
to the General Obligation Bonds.
111
217,088
81,621
(15,825)
$ 7,806,258
2006
2005
2004
2003
$ 45,197,956
$ 40,253,175
$ 33,951,077
$ 31,268,365
6,058,900
5,491,986
5,057,287
4,683,420
7,183,846
1,140,139
58,889
67,768
59,707,498
8,817,911
487,930
(506,228)
84,643
54,629,417
8,265,168
131,625
140,016
47,545,173
7,686,668
212,208
176,863
44,027,524
13,327
13,327
4,565
(32,376)
(27,811)
2,040
2,040
3,151
3,151
$ 59,720,825
$ 54,601,606
$ 47,547,213
$ 44,030,675
$ 3,078,075
$ 4,905,528
$ 1,832,790
$
(2,367,741)
96,470
$
806,804
(1,625)
$ 4,903,903
(10,964)
$ 1,821,826
861,134
641
$
861,775
112
GOVERNMENTAL ACTIVITIES - TAX REVENUES BY SOURCE
Unaudited
Fiscal Year
Ended
Property Tax
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
$ 59,266,442
58,992,197
56,458,540
54,457,725
52,208,990
49,230,659
44,591,914
39,141,649
32,973,873
29,602,629
Public Utility
Realty Transfer
Payment In Earned Income
Lieu of Taxes
Tax
$
$
89,568
88,797
85,102
75,024
75,855
74,833
61,836
47,140
62,225
52,598
753
856
457
288
353
444
-
$
5,071,438
5,004,495
4,161,764
4,400,515
4,255,139
4,069,280
3,904,394
3,600,400
3,493,828
3,287,740
Real Estate
Transfer
$
585,655
552,811
621,940
722,831
1,139,764
1,469,188
1,850,660
1,518,719
1,003,077
776,186
Delinquent
Unallocated
Delinquent Delinquent Per Earned Income
EIT 1
Real Estate Tax
Capita2
Tax
$
350,456
350,460
322,349
287,340
-
$
1,445,740
1,524,649
1,932,473
1,861,825
1,837,345
959,856
736,995
1,196,870
1,112,715
815,246
$
11
106
482
586
Source: District Financial Reports
1
Unallocated Earned Income Taxes was separated from Earned Income Taxes for better tracking purposes in fiscal year ended 2008.
Fiscal year ended 2011 was the last year that the District received Unallocated EIT revenue due to implementation of Act 32.
2
The District stopped collecting Per Capita Taxes after fiscal year 2000, but continued to receive delinquent payments through fiscal year 2006.
All amounts above listed include any applicable discounts and penalties.
113
$
85,340
209,251
185,835
206,703
651,760
454,816
186,209
325,621
497,697
566,310
Total
$ 66,544,936
66,723,512
63,796,571
62,046,972
60,456,481
56,258,985
51,332,463
45,830,505
39,143,897
35,101,295
FUND BALANCES OF GOVERNMENTAL FUNDS1
MODIFIED ACCRUAL BASIS OF ACCOUNTING
Unaudited
2012
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
2011
2010
2007
2006
2008
2009
2005
2004
2003
$
673,760
4,380,684
1,102,213
7,201,135
$ 13,357,792
$
622,442
3,042,434
2,621,133
7,064,477
$ 13,350,486
$
609,409
2,505,627
2,326,116
8,858,871
$ 14,300,023
$
527,637
5,316,195
2,420,300
6,358,009
$ 14,622,141
$
555,336
3,371,834
2,255,945
6,045,140
$ 12,228,255
$
446,039
2,737,231
1,841,205
5,824,443
$ 10,848,918
$
432,280
701,652
39,806
5,206,035
$ 6,379,773
$ 400,349
34,205
3,176,968
$ 3,611,522
$ 290,825
24,748
1,440,543
$ 1,756,116
$
7,936
345
5,290
2,661,180
$ 2,674,751
$ 2,667,397
$ 2,667,397
$
$
$ 7,272,115
$ 7,272,115
$ 41,636,091
$ 41,636,091
$ 58,230,152
$ 58,230,152
$ 12,701,465
$ 12,701,465
$ 15,214,830
$ 15,214,830
$ 5,698,053
$ 5,698,053
$
$
$
$
All Other Governmental Funds
Restricted for, reported in:
2
Capital Projects Fund
Total All Other Governmental Funds
2,506,523
2,506,523
1
The fund balance designations are explained in Management's Discussion and Analysis,
Financial Analysis of the District's Funds - Governmental Funds.
Due to the adoption of GASB 54: Fund Balance Reporting and Governmental Fund Type Definitions for Fiscal Year Ended 2011
the Fund Balances for Fiscal Years Ended 2003 through 2010 were reclassified according to the principals applied during Fiscal Year
Ended 2011 in order to present comparable data.
2
The significant increase in the Capital Projects Fund Balance for 2008 was due to the issuance of the General Obligation Bonds,
Series 2008. $38.475 million was used to refund the 1998 and 2000 Series, and the remaining $44.280 million is to be used
in the construction of the Intermediate School and the costs of issuance of the bonds.
The significant decrease for 2009 and 2010 is due to progression of the Intermediate School as it relates to payment of contractors.
The Intermediate School will open with the 2010-2011 school year.
114
74,884
74,884
294,469
294,469
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS (continued on the next page)
Unaudited
2012
Revenues
Local Sources
State Sources
Federal Sources
Total Revenues
Expenditures
Current:
Instructional
2011
$ 68,943,038 $ 68,941,619
17,525,602
18,118,156
561,852
2,133,893
87,030,492
89,193,668
2010
2007
2009
2008
$ 66,619,758 $ 65,649,136 $ 63,818,529 $ 59,658,408
16,279,795
16,446,385
16,135,751
15,200,480
1,760,459
563,501
582,123
521,086
84,660,012
82,659,022
80,536,403
75,379,974
2006
2005
2004
2003
$ 53,508,896
14,363,367
563,961
68,436,224
$ 47,297,118
13,023,100
470,226
60,790,444
$ 40,048,023
12,154,996
428,329
52,631,348
$ 36,033,291
11,847,048
299,698
48,180,037
54,538,394
55,597,017
53,133,403
49,315,145
47,015,944
43,720,179
40,266,841
36,543,719
33,899,841
30,780,994
21,422,128
1,672,221
78,019
77,710,762
22,090,690
1,763,470
79,262
79,530,439
20,447,811
1,680,334
101,713
75,363,261
19,448,569
1,585,782
61,553
70,411,049
19,208,158
1,351,987
1,412
67,577,501
17,357,277
1,318,809
927
62,397,192
18,990,830
1,162,286
38,592
60,458,549
14,919,038
1,096,638
3,664
52,563,059
4,445,951
10,116,777
64,310
48,526,879
13,038,533
1,030,402
44,849,929
Capital Outlay
Facilities, Acquisition, Construction & Improvement
2
Services
Total Capital Outlay
1,201,675
1,201,675
8,559,900
8,559,900
36,882,213
36,882,213
20,736,671
20,736,671
2,788,794
2,788,794
4,257,192
4,257,192
4,536,534
4,536,534
3,134,402
3,134,402
931,924
931,924
1,616,012
1,616,012
Debt Services
Principal
Interest and Fiscal Charges
Total Debt Service
5,597,833
3,021,939
8,619,772
5,214,326
2,849,639
8,063,965
4,762,733
3,299,174
8,061,907
1,636,608
5,010,088
6,646,696
4,547,741
2,960,276
7,508,017
3,862,157
2,849,905
6,712,062
4,732,276
1,844,839
6,577,115
4,233,730
1,244,950
5,478,680
3,737,989
598,993
4,336,982
3,791,043
932,611
4,723,654
87,532,209
96,154,304
120,307,381
97,794,416
77,874,312
73,366,446
71,572,198
61,176,141
53,795,785
51,189,595
(6,960,636)
(35,647,369)
(15,135,394)
2,662,091
2,013,528
(3,135,974)
(1,164,437)
(3,009,558)
Support Services2
Operation of Non-Instructional Services
Refund of Prior Years' Receipts
Total Current Expenditures
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
(501,717)
115
(385,697)
CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS (continued)
Unaudited
2012
2011
2007
2009
2008
2010
2006
2005
2004
2003
3
Operating Transfers
Operating Transfers
Sale of Capital Assets
Issance of refunding bonds
Preium on Bond Issuance
Issuance of Long-Term Debt
Transfers to Joint Venture
Total Other Financing Sources (Uses)
617,177
(779,825)
10,968
72,865,000
(72,865,000)
821,577
669,897
Net Changes In Fund Balance
$
Ratio of Debt Service to Noncapital Expenditures2
168,180
9.98%
1,340,100
(1,340,100)
24,518
88,485,000
(89,325,000)
1,708,965
2,062,024
(1,710,000)
1,245,507
1,170,766
(1,170,766)
6,422
87,115,000
(87,115,000)
853,440
101,413
961,275
1,885,180
(1,885,180)
2,179
83,519,656
(82,755,000)
168,384
935,219
2,580,422
(2,642,422)
4,128
39,117,865
(38,475,000)
43,660,940
44,245,933
$ (5,715,129) $ (34,686,094) $ (14,200,175) $ 46,908,024
9.21%
9.66%
8.63%
10.00%
133,688
(193,688)
2,252
(57,748)
$ 1,955,780
9.71%
226,700
(226,700)
58,889
15,362,113
15,421,002
$ 12,285,028
9.81%
2
The difference between the capital outlay in the Statement of Revenue, Expenditures and Changes in Fund Balance - Governmental Funds and the Reconciliation to the
the Statement of Activities is due to allocation of capital assets to the various expenditure functions.
3
For Fiscal Year Ended 2008, Other Financing Sources (Uses) debt line items were reallocated to provide comparable data with Fiscal Year Ended 2009.
Refund of Prior Years' Receipts was also reallocated under Current Expenditures.
116
574
7,863,698
7,864,272
$ 7,478,575
9.44%
57,216
(57,216)
700
25,517
26,217
3,500
(53,500)
2,370
5,022
(42,608)
$ (1,138,220) $ (3,052,166)
8.20%
9.53%
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY SOURCE
(continued on the next page)
Unaudited
2010
2009
2012
2011
$58,998,664
267,778
89,568
753
5,071,438
585,655
1,531,080
198,794
1,829,119
68,572,849
$58,428,982
563,215
88,797
856
5,354,951
552,811
1,733,900
203,876
1,887,930
68,815,318
$56,142,037
316,503
85,102
457
4,512,224
621,940
2,118,308
281,021
1,865,306
65,942,898
$53,908,037
549,688
75,024
4,722,864
722,831
2,068,528
730,651
1,156,269
63,933,892
$ 51,254,041
954,949
75,855
288
4,542,479
1,139,764
2,489,105
1,330,488
1,116,428
62,903,397
7,886,770
651,283
2,431,071
1,185,940
1,780,775
1,694,390
1,377,319
518,054
17,525,602
6,725,138
1,524,454
2,431,137
1,111,773
1,743,237
1,288,244
1,376,835
917,338
17,118,156
7,110,629
217,964
2,498,619
1,012,524
1,351,997
1,670,686
1,375,040
1,042,336
16,279,795
7,881,946
304,611
2,415,539
1,147,862
770,313
1,567,660
1,373,172
985,282
16,446,385
7,654,609
751,998
2,396,569
993,002
1,712,782
1,464,695
1,162,096
16,135,751
FEDERAL SOURCES:
Title I - Reading First
Title IIA - Improving Teacher Quality
Title IID - Enhancing Education
Title II - Other Grants for ESEH
Title III - ESL
Title V - Innovative Programs
Title VI - Basic
Class Size Reduction
Safe and Drug Free Schools
Active School Grant
ARRA- Title I, Part A
ARRA - State Fiscal Stabilization Fund
Education Jobs Fund
Other Federal Grants
Total Federal Sources
388,653
110,467
41,537
8,546
12,649
561,852
403,115
131,494
31,739
9,139
5,000
72,089
930,193
551,124
2,133,893
448,208
144,171
15,537
176,320
952,953
23,270
1,760,459
411,981
130,906
20,614
563,501
430,749
124,627
6,228
5,600
5,359
9,560
582,123
OTHER FINANCING SOURCES, NET
10,968
376,542
570,601
567,596
27,933
$ 86,671,271
$ 88,443,909
$ 84,553,753
$ 81,511,374
$ 79,649,204
LOCAL SOURCES:
Current Real Estate Taxes
Interim Real Estate Taxes
Current Per Capita Taxes, Section 679
Earned Income Taxes
Realty Transfer Tax
Delinquent Taxes
Earnings from Investments
Other Local Sources
Total Local Sources
STATE SOURCES:
Rental and Sinking Fund Payments
Special Education Subsidy
Transportation Subsidy
Retirement Reimbursement
Social Security Reimbursement
Property Tax Relief Subsidy
Other State Revenue
Total State Sources
TOTAL REVENUES
Source: Annual Financial Reports of the Dallastown Area School District
117
2008
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES BY SOURCE (continued)
Unaudited
2006
2005
2004
2007
LOCAL SOURCES:
Current Real Estate Taxes
Interim Real Estate Taxes
Earned Income Taxes
Realty Transfer Tax
Delinquent Taxes
Earnings from Investments
Other Local Sources
Total Local Sources
STATE SOURCES:
Rental and Sinking Fund Payments
Special Education Subsidy
Transportation Subsidy
Retirement Reimbursement
Social Security Reimbursement
Property Tax Relief Subsidy
Other State Revenue
Total State Sources
$ 47,685,789 $ 42,576,953
1,544,870
2,014,961
74,833
61,836
353
444
4,069,280
3,904,394
1,469,188
1,850,660
1,414,672
923,215
1,475,451
954,308
1,026,601
972,940
58,761,037
53,259,711
2003
$ 38,783,561
358,088
47,140
3,600,400
1,518,719
1,522,597
370,180
887,376
47,088,061
$ 32,786,816
187,057
62,225
3,493,828
1,003,077
1,610,894
130,331
697,850
39,972,078
$ 29,434,896
167,733
52,598
3,287,740
776,186
1,382,142
203,771
616,060
35,921,126
7,505,613
1,163,953
2,301,754
1,110,672
964,720
1,364,644
789,124
15,200,480
7,183,846
1,155,446
2,247,990
1,100,573
745,312
1,305,921
624,279
14,363,367
7,010,242
474,521
2,213,904
940,369
640,704
1,166,965
576,395
13,023,100
6,718,228
686,040
2,156,590
841,646
450,288
1,089,508
212,696
12,154,996
6,497,688
845,100
2,179,868
814,546
147,966
1,034,554
327,326
11,847,048
FEDERAL SOURCES:
Title I - Reading First
Title IIA - Improving Teacher Quality
Title IID - Enhancing Education
Title II - Other Grants for ESEH
Title III - ESL
Title V - Innovative Programs
Title VI - Basic
Class Size Reduction
Safe and Drug Free Schools
Other Federal Grants
Total Federal Sources
358,694
130,294
17,701
5,364
5,651
3,382
521,086
354,744
131,125
5,833
26,731
10,066
6,713
28,749
563,961
243,539
134,982
11,563
20,694
36,449
22,999
470,226
246,974
156,934
4,446
19,975
428,329
175,716
91,388
12,704
19,890
299,698
OTHER FINANCING SOURCES, NET
20,040
431,002
342,295
26,217
10,892
$ 74,502,643
$ 68,618,041
$ 60,923,682
$ 52,581,620
$ 48,078,764
TOTAL REVENUES
118
GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY FUNCTION (continued on next page)
Unaudited
2011
2010
2009
2012
CURRENT:
Instruction:
Regular Programs, Elementary & Secondary
Special Programs, Elementary & Secondary
Vocational Education Programs
Other Instructional Programs, Elementary & Secondary
Nonpublic School Programs
Adult Education Programs
Support Services:
Pupil Personnel
Instructional Staff
Administration
Pupil Health
Business
Operation and Maintenance of Plant Services
Student Transportation Services
Central
Other Support Services
Non-Instructional Services:
Student Activities
Community Services
Refund of Prior Years Receipts
Facilities Improvements
Debt Services
Total Expenditures
$ 43,275,215
9,271,600
1,064,365
888,465
5,002
33,747
OTHER FINANCING USES, NET
TOTAL EXPENDITURES AND OTHER FINANCING USES
119
$ 39,095,912 $ 37,005,170
7,911,130
8,027,122
1,078,980
1,181,525
984,319
974,626
36,345
35,960
43,835,112
9,633,663
1,060,212
1,026,839
7,430
33,761
$ 41,827,957
8,938,130
1,213,956
1,102,314
14,098
36,948
2,825,580
1,955,165
3,668,887
935,048
655,170
6,205,806
3,776,978
1,593,839
123,429
2,609,146
2,548,092
4,223,108
936,760
689,096
6,398,483
3,683,022
1,632,573
123,126
2,402,279
2,197,526
3,843,642
858,512
671,577
6,004,495
3,019,899
1,772,082
124,205
2,298,239
2,078,347
3,743,253
844,711
660,470
5,497,721
3,128,717
1,757,538
104,438
2,165,411
2,016,215
3,545,268
800,353
664,568
5,351,182
3,072,000
1,614,414
49,083
1,590,537
81,684
78,019
78,028,536
7,845,604
85,874,140
1,679,903
83,567
79,262
80,283,155
15,900
7,754,291
88,053,346
1,504,590
79,604
101,713
75,713,527
497,292
7,969,618
84,180,437
1,364,300
92,558
61,553
70,946,990
17,010
6,646,696
77,610,696
1,171,844
82,063
1,412
67,549,757
596,411
7,508,017
75,654,185
779,825
1,340,100
708,000
1,488,147
2,642,422
89,393,446
$ 84,888,437
$ 79,098,843
$ 78,296,607
$ 86,653,965
$
2008
$
GENERAL FUND EXPENDITURES AND OTHER FINANCING USES BY FUNCTION (continued)
Unaudited
2007
CURRENT:
Instruction:
Regular Programs, Elementary & Secondary
Special Programs, Elementary & Secondary
Vocational Education Programs
Other Instructional Programs, Elementary & Secondary
Adult Education Programs
Support Services:
Pupil Personnel
Instructional Staff
Administration
Pupil Health
Business
Operation and Maintenance of Plant Services
Student Transportation Services
Central
Other Support Services
Non-Instructional Services:
Student Activities
Community Services
Refund of Prior Years Receipts
Facilities Improvements
Debt Services
Total Expenditures
2006
2005
2004
$ 34,620,100 $ 32,198,135 $ 29,267,852
7,156,812
6,510,002
5,214,628
1,092,212
945,712
962,971
815,180
577,312
1,065,072
35,561
35,680
33,196
OTHER FINANCING USES, NET
TOTAL EXPENDITURES AND OTHER FINANCING USES
120
2003
$ 27,399,753 $ 24,981,334
4,453,051
4,047,786
1,057,656
908,025
962,433
804,266
26,948
39,583
1,937,887
1,893,390
3,313,659
755,730
638,960
4,968,296
2,750,702
1,703,213
46,762
2,016,557
1,872,030
3,233,563
604,654
694,521
4,945,275
2,472,211
1,600,637
44,424
1,646,595
1,570,872
2,694,466
608,874
833,806
4,735,452
2,225,459
1,032,396
43,586
1,418,171
1,469,295
2,541,959
544,474
696,935
4,567,922
2,008,405
844,399
46,305
1,392,571
1,275,856
2,521,184
472,553
865,630
4,333,412
2,086,846
748,783
41,333
1,123,484
78,862
927
62,931,737
206,198
6,712,062
69,849,997
998,207
62,419
38,592
58,849,931
211,645
6,577,115
65,638,691
914,427
62,659
3,664
52,915,975
643,078
5,478,680
59,037,733
874,862
56,075
64,310
49,032,953
106,994
4,386,982
53,526,929
854,514
72,224
45,445,900
264,348
4,723,654
50,433,902
175,900
216,700
55,000
42,784
50,000
$ 70,025,897
$ 65,855,391
$ 59,092,733
$ 53,569,713
$ 50,483,902
GENERAL FUND COST PER PUPIL FOR EXPENDITURES AND OTHER FINANCING USES
Unaudited
2012
2009
2007
2006
2008
2005
2004
2003
80,283,155
$ 75,713,527
$ 70,946,990
$ 67,549,757
$ 62,931,737
$ 65,638,691
$ 59,037,733
$ 53,526,929
$ 50,433,902
6,029
6,040
5,944
5,941
5,895
5,879
5,761
5,455
5,287
5,177
12,942
13,292
12,738
11,942
11,459
10,704
11,394
10,823
10,124
9,742
$ 86,653,965
$ 89,393,446
$ 84,888,437
$ 79,098,843
$ 78,296,607
$ 70,025,897
$ 65,855,391
$ 59,092,733
$ 53,569,713
$ 50,483,902
6,029
6,040
5,944
5,941
5,895
5,879
5,761
5,455
5,287
5,177
Current Expenditures per Pupil
Number of pupils
Total Expenditures per Pupil
2010
78,028,536
Number of pupils
Total Expenditures and Other
Financing Uses
2011
$
14,373
$
14,800
$
14,281
$
13,314
Sources: District Financial Reports and district enrollment data as of October 1st.
121
$
13,282
$
11,911
$
11,431
$
10,833
$
10,132
$
9,752
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN CALENDAR YEARS
Unaudited
Assessed Values 1
Estimated Actual
Taxable Value
62,828,107
62,532,162
60,228,766
57,678,787
Total Market
Value
2,960,466,876
2,942,969,853
2,816,717,593
2,783,172,407
Assessed Value
as a percentage
of Market
Value
95.34%
95.45%
99.32%
99.44%
Residential
Property
2,172,245,958
2,169,441,412
2,119,470,397
2,087,423,887
Lots
19,805,980
21,245,160
53,734,360
53,734,360
Industrial
52,490,260
53,042,590
54,127,380
53,963,910
Commercial
486,380,372
474,064,475
479,792,120
481,786,810
Agriculture
91,544,070
91,378,050
90,310,320
90,787,130
Total Assessed
Taxable Value
2,822,466,640
2,809,171,687
2,797,434,577
2,767,696,097
Total Direct
Tax Rate
)1
(Mills
22.26
22.26
21.53
20.84
1
2,009,476,233
57,362,720
54,201,390
477,108,580
89,250,910
2,687,399,833
19.81
53,237,391
2,412,011,700
111.42%
1
1,912,929,000
1,452,068,010
1,383,349,850
1,321,971,980
1,278,042,300
54,247,830
43,145,580
38,000,510
37,753,350
29,509,000
54,786,380
49,763,260
49,180,630
47,995,320
48,246,310
440,904,805
387,490,410
377,641,880
381,836,940
374,137,090
88,013,980
69,049,620
70,436,790
69,873,950
69,841,250
2,550,881,995
2,001,516,880
1,918,609,660
1,859,431,540
1,799,775,950
18.81
21.74
20.24
17.76
16.51
47,982,090
43,512,977
38,832,660
33,023,504
29,714,301
2,264,459,500
1,947,537,400
1,856,092,100
1,688,746,900
1,627,228,500
112.65%
102.77%
103.37%
110.11%
110.60%
Calendar
Year
Ended
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Source: Pennsylvania State Tax Equalization Board
1
Effective January 1, 1998 and January 1, 2006, County-wide reassessments went into effect.
These reassessments affected the District millage July 1, 1998 and July 1, 2006 and the
County January 1, 1998 and January 1, 2006.
122
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
1
LAST TEN YEARS
Unaudited
Direct Debt
Year
Overlapping Debt
Total Direct
Dallastown
and
Area School County of Dallastown Jacobus Loganville
Springfield York Overlapping
District
York
Borough Borough Borough Yoe Borough Township Township Debt
2012
22.260
4.150
1.650
1.700
2.000
3.455
0.500
0.700
36.415
2011
22.260
4.150
1.650
1.700
2.000
3.455
0.300
0.700
36.215
2010
21.530
4.150
1.650
1.500
2.000
2.955
0.300
0.700
34.785
2009
20.840
4.150
1.650
1.300
2.000
2.955
0.300
0.700
33.895
2008
19.810
4.000
1.650
1.300
2.000
2.955
0.260
0.600
32.575
20072
18.810
3.910
1.650
1.300
1.500
1.914
0.260
0.600
29.944
2006
2
21.740
3.800
1.650
0.923
1.500
0.914
0.260
0.600
31.387
2005
20.240
4.510
2.000
1.300
1.700
1.153
0.330
0.700
31.933
2004
17.760
4.200
2.000
1.300
1.200
1.153
0.330
0.800
28.743
2003
16.510
4.200
1.580
1.300
1.200
1.153
0.330
0.800
27.073
Source: York County Assessment Office
1
County, Townships and Boroughs operate on a calendar year, whereas, the District operates
on a Fiscal Year. Data for the District is based on the Year Ended June 30th and
data for the County, Township and Boroughs are based on the Calendar Year Ended December 31st.
2
These reassessments affected the District millage July 1, 1998 and July 1, 2006 and the
County January 1, 1998 and January 1, 2006.
123
PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND EIGHT YEARS PRIOR1
Unaudited
2011-2012
Taxpayer
Waterford Associates
OSS Realty Company
Wellspan Health Care
Kinsley Graham LP
Queensgate Associates
HP Altman York LP
Powder Mill Associates
HCR Manorcare Properties LLC
Country Meadows Associates
Adhesives Research Inc.
York Plaza Limited Partnership
York Hills
Total
Total taxable assessed values
Taxable Assessed
Value
Rank
$35,875,260
26,174,340
20,773,520
17,677,600
12,542,220
12,409,780
11,714,740
10,437,130
10,229,870
9,645,330
167,479,790
$ 2,769,796,189
2003-2004
Percentage of
Total Taxable
Assessed Value
1
2
3
4
5
6
7
8
9
10
1.30%
0.94%
0.75%
0.64%
0.45%
0.45%
0.42%
0.38%
0.37%
0.35%
$
6.05%
2
Taxable Assessed
Value
22,790,180
31,655,350
8,157,530
7,354,770
11,020,020
9,274,040
9,846,100
9,779,840
6,751,170
6,777,810
$123,406,810
$ 1,966,188,520
Source: District Real Estate Tax Records
1
The District did not have the records for nine years prior but did have the data for eight years prior which is included.
2
This value includes the Homestead-Farmstead reduction, thus is the true collectible assessed value.
The actual assessed value is $2,831,678,680.
124
Rank
2
Percentage of
Total Taxable
Assessed Value
1.16%
0.00%
1
7
8
3
6
4
5
0.37%
0.56%
0.47%
0.50%
0.50%
10
9
0.00%
0.34%
0.34%
4.25%
PROPERTY TAX LEVIES AND COLLECTIONS
Unaudited
Collection within the Fiscal Year of the Levy
Fiscal
Year
Ended
2012
2011
2010
2009
2008
20073
2006
2005
2004
2003
Millage
1
Rate
22.26
22.26
21.53
20.84
19.81
18.81
21.74
20.24
17.76
16.51
Total Tax Levy
for Fiscal Year
(at face)
$61,655,612
61,219,898
59,144,892
56,654,881
54,019,943
State Property
Tax Reduction
4
Allocation
Face amount
$1,377,319 $ 60,413,710
1,376,835
59,939,124
1,374,917
57,573,954
1,373,155
55,264,209
52,683,948
49,623,295
44,333,645
39,596,764
33,527,788
30,173,571
-
48,522,362
N/A
N/A
N/A
N/A
Exonerations
Discounts
Penalties
$ (115,811) $ (1,037,613) $ 106,802
(205,263)
(1,016,173) 122,427
(200,294)
(963,996) 117,649
(149,057) $ (930,571) $ 102,167
(159,006)
(862,149) 111,876
(101,854)
N/A
N/A
N/A
N/A
(838,674)
N/A
N/A
N/A
N/A
Total amount
$ 59,367,088
58,840,116
56,527,313
54,286,748
51,774,669
Percentage
of Levy
98.0%
97.9%
97.3%
97.5%
97.5%
Regular Real
Estate Taxes
Liened (at face)
$
1,201,076
1,224,306
1,537,485
1,320,980
1,332,932
47,685,789
42,576,953
38,783,561
32,786,816
29,434,896
97.8%
96.0%
97.9%
97.8%
97.6%
1,057,523
722,932
992,875
N/A
N/A
103,955
N/A
N/A
N/A
N/A
2
Source: District Financial Reports unless otherwise noted
1
One mill of tax is equal to $1.00 for every $1,000.00 of assessed valuation of real estate property.
2
Starting with the 2006-2007 fiscal year, separate codes for discounts and penalties were created for tracking purposes
however, prior to 2006-2007, all current collections, discounts and penalties were allocated to one current real estate tax revenue code.
3
4
Starting with the 2008-2009 fiscal year, per Taxpayer Relief Act, Act 1 of Special Session 1 of 2006, revenue is received from the
Commonwealth of PA for school property tax reduction.
5
Source is Dallastown Area School District Tax Collectors and York County Department of Assessment and Tax Claim.
125
Total Tax
Percentage of
Collections
Levy
$ 61,614,786
99.9%
61,163,430
99.9%
59,111,439
99.9%
56,585,189
99.9%
54,016,880
100.0%
49,579,885
43,299,885
39,776,436
32,786,816
29,434,896
99.9%
97.7%
100.5%
97.8%
97.6%
GROSS PRINCIPAL DEBT OUTSTANDING
Unaudited
G.O. Bond
Series A of
2010
Fiscal Year
Ended
2013
2014
2015
2016
2017
2018
2019
Total
$
940,000
955,000
$ 1,895,000
G.O. Bond
Series B of
2010
$
330,000
340,000
350,000
360,000
$ 1,380,000
G.O. Bond
Series AA of G.O. Bond Series
2011
of 20121
$
430,000
420,000
1,470,000
1,495,000
1,525,000
1,560,000
4,850,000
$ 11,750,000
$ 72,865,000
$ 72,865,000
Source: Official Statement for each General Obligation Bond listed above.
1
The General Obligation Bond, Series of 2012, is a one year bond that matures
on April 16, 2013. The District intends to refinance this note prior to the
scheduled maturity date.
126
Total
$
$
74,565,000
1,715,000
1,820,000
1,855,000
1,525,000
1,560,000
4,850,000
87,890,000
RATIO OF OUTSTANDING DEBT BY TYPE
Unaudited
Fiscal Year
Ended
2012
2011
2010
2009
20081
2007
20062
20053
2004
2003
General
Obligation
Bonds/Notes
$87,890,000
93,010,000
96,835,000
101,170,000
102,465,000
62,310,000
65,795,000
55,145,000
51,850,000
55,565,000
Mortgage
Payable
81,250
162,500
243,750
325,000
Capital Leases
$72,733
275,821
179,000
243,235
157,141
336,527
522,101
358,505
46,345
43,817
Total Primary
Government
Debt Outstanding
as a Percentage
of Personal
Income (York
County)5
$87,962,733
93,285,821
97,014,000
101,413,235
102,622,141
62,646,527
66,398,351
55,666,005
52,140,095
55,933,817
0.55%
0.59%
0.63%
0.65%
0.69%
0.45%
0.50%
0.45%
0.44%
0.50%
Debt Outstanding
Per Capita
(York County)5
4
Source: District Audited Financial Statements unless otherwise noted
Note: Details regarding the District's outstanding debt can be found in notes to the financial statements.
1
During 2008, the District issued $82.755 million in General Obligation Bonds, Series 2008,
of which, $31.960 million was used to refund the 1998 and $6.515 was used to refund the 2000 bonds.
2
During 2006, the District issued $15 million in General Obligation Bonds, Series 2006.
The increase in capital leases debt was due to the purchase of Finance and Student software.
3
During 2005, the District issued $7.5 million in General Obligation Bonds, Series 2004.
The increase in capital lease debt was due to the purchase of modular classrooms.
4
Refer to the Schedule of Demographic and Economic Statistics on page 131 for personal income and population data.
5
The York County Personal Income used in the calculation was as of December 31, 2010
due to the December 31, 2011 data not being available at the time of this report.
127
201.39
214.46
226.17
238.19
243.42
150.97
163.32
139.34
132.46
143.83
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Unaudited
Fiscal Year
Ended
General
Obligation BondsGeneral Bonded
Debt
Percentage of
Estimated Actual
Taxable Value of
Property4
General Bonded
Debt Per Capita
(York County)5
20126
2011
2010
$87,890,000
93,010,000
96,835,000
1.40
1.49
1.61
$201.23
213.83
225.76
2009
101,170,000
1.75
237.62
1
2008
2007
102,465,000
62,310,000
1.92
1.30
243.04
150.16
20062
65,795,000
1.51
161.84
3
55,145,000
51,850,000
55,565,000
1.42
1.57
1.87
138.04
131.73
142.88
2005
2004
2003
Source: District Audited Financial Statements unless otherwise noted
Note: Details regarding the District's outstanding debt can be found in notes to the financial statements.
1
During 2008, the District issued $82.755 million in General Obligation Bonds, Series 2008,
of which, $31.960 million was used to refund the 1998 and $6.515 was used to refund the 2000 bonds.
2
During 2006, the District issued $15 million in General Obligation Bonds, Series 2006.
3
During 2005, the District issued $7.5 million in General Obligation Bonds, Series 2004.
4
Refer to the Schedule of Demographic and Economic Statistics on page 131 for personal income and
and population data. Estimated Actual of Taxable Value of Property based on Calendar Years Ended.
5
Refer to the Assessed Value and Estimated Actual Value of Taxable Property on page 122 for
property value data.
6
The York County Per Capita data used in the calculation was as of 2011 due to the 2012 data
not being available at the time of this report.
128
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Unaudited
Gross General
Obligation debt
outstanding
Estimated
percentage
applicable
Estimated share of
overlapping debt
Overlapping Debt:
York County
York County School of Technology (YCST)
York Township
Springfield Township
Total overlapping debt
191,141,023
10.54%1
34,650,000
3,790,000
953,265
2
12.13%
100.00%
100.00%
4,203,045
3,790,000
953,265
29,821,350
72,865,000
11,750,000
1,895,000
100%
100%
100%
72,865,000
11,750,000
1,895,000
1,380,000
100%
1,380,000
$
21,828,305
Direct Debt:
Series of 2012 Bond
Series AA of 2011 Bond
Series A of 2010 Bond
Series B of 2010 Bond
3
Total direct debt
87,890,000
Total Direct and Overlapping Debt
$
Sources: Districted Audited Financial Statements, York County Controller's Office,
York County School of Technology and Pennsylvania Department of Community and Economic
Development.
Note: Overlapping governments are those that coincide, at least in part, with the geographic
Boundaries of the School District. This schedule estimates the portion of the outstanding debt
of those overlapping governments that is borne by the residents and businesses. This schedule
does not imply that every taxpayer is a resident, and therefore, responsible for repaying the debt, of
each overlapping government.
1
Pro rata share of the County of York's debt based on 2011 assessed values as
reported by the State Tax Equalization Board.
2
YCST debt is shared by fourteen districts. The annual debt service
payments can fluctuate each year due to change in each District's percentage which is
determined by the District's market value and market value aid ratio.
12.13% is the District's share of the debt for 2011-2012.
3
Series B of 2010 was issued by the District on behalf of York County School of
Technology. The annual debt service payments will be prorated between
fourteen districts in the same manner as the York County School of Technology
debt noted above in footnote 2.
129
117,711,350
LEGAL DEBT MARGIN INFORMATION
Unaudited
2012
Total borrowing base revenues1
Average borrowing base
(total revenues divided by 3)
Debt limit percentage2
Total debt applicable to limit3
Total net debt applicable to the
limit as a percentage of the debt
total
$
2010
2009
2007
2008
$257,233,324
$252,428,888
$244,427,029
$233,434,100
$ 219,633,222
85,744,441
84,142,963
81,475,676
77,811,367
73,211,074
225%
Debt Limit
Legal Debt Margin
2011
225%
225%
225%
$
225%
2006
2005
2004
2003
201,056,067
$ 179,614,509
$ 159,442,097
$ 145,386,839
$ 137,076,659
67,018,689
59,871,503
53,147,366
48,462,280
45,692,220
225%
225%
225%
192,924,993
189,321,666
183,320,271
175,075,575
164,724,917
150,792,050
134,710,882
119,581,573
109,040,129
102,807,494
$136,010,000
$139,835,000
$144,170,000
145,465,000
105,310,000
108,795,000
55,145,000
51,850,000
55,565,000
45,482,050
$ 25,915,882
$ 64,436,573
$ 57,190,129
$ 47,242,494
62,034,993
67.85%
$
53,311,666
71.84%
$
43,485,271
$
30,905,575
76.28%
82.35%
$
19,259,917
$
88.31%
69.84%
Total General Fund revenues less the required deductions of rental and sinking fund reimbursement, revenues for self-liquidating debt,
interest on sinking funds, grants and gifts for projects and sale of equipment and non-recurring items of the last three fiscal years.
2
According to The Local Unit Debt Act (Act 52 of 1978, reenacting and amending Act 185 of 1972), combined net non-electoral debt and net lease rental debt
incurred on behalf of the school district may not exceed 225% of the School District's Borrowing Base.
3
225%
$130,890,000
Sources: District Audited Financial Statements, District Financial Reports
1
225%
During 2005-2006, an additional $43 million was authorized by the Board of School Directors but not issued.
130
80.76%
46.11%
47.55%
54.05%
DEMOGRAPHIC AND ECONOMIC STATISTICS
1
LAST TEN YEARS
Unaudited
Amount in thousands
Year
Population State of
Pennslyvania2
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
12,742,886
12,702,379
12,604,767
12,566,368
12,522,531
12,471,142
12,418,161
12,388,368
12,357,524
12,326,302
Population York
County2
436,770
434,972
428,937
425,766
421,589
414,969
406,555
399,490
393,622
388,885
Population Dallastown
Area School
District2
Personal Income State of
Pennslyvania3
Personal
Income - York
County3
Per Capita
Personal Income State of
Pennslyvania3
Per Capita
Personal
Income - York
County3
Unemployment
Rate - State of
Pennsylvania4
N/A
41,142
39,187
38,648
38,326
37,893
37,152
37,208
36,554
35,944
N/A
516,390,019
499,700,440
512,992,347
489,076,073
462,703,547
432,247,998
417,790,457
399,547,298
387,663,837
N/A
15,871,983
15,367,752
15,538,070
14,820,570
13,864,298
13,207,137
12,489,918
11,731,571
11,201,924
N/A
40,604
39,449
40,674
38,927
36,984
34,719
33,664
32,288
31,438
N/A
36,427
35,490
36,186
34,879
33,165
32,286
31,116
29,693
28,746
7.9%
8.5%
8.0%
5.4%
4.4%
4.5%
5.0%
5.4%
5.7%
5.6%
1
The State and County data is based on a calendar year (December 31st) , whereas, the District
data is based on the District's Fiscal Year End (June 30th).
2
Population amounts are based on Population Estimates Program and the 2010 Census. Source is US Census Bureau.
3
Source is the Bureau of Economic Analysis, Regional Economic Accounts.
4
Source is U.S. Department of Labor, Bureau of Labor Statistics.
5
Source is District enrollment data as of October 1st.
131
Dallastown
Unemployment Area School
Rate - York District
County4
Enrollment5
7.8%
8.6%
8.0%
4.7%
3.8%
4.0%
4.2%
4.5%
4.9%
4.8%
6,040
5,944
5,941
5,895
5,879
5,761
5,455
5,287
5,177
5,263
PRINCIPAL EMPLOYERS
FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2011
Unaudited
1
Employees
Percentage of
Total County
Employment
York Hospital
Federal Government
York County
Giant Food Stores LLC
Wal-Mart Associates, Inc.
BAE Systems
UTZ Quality Foods, Inc.
Kinsley Construction, Inc.
Harley-Davidson Motor Company
Hanover General Hospital
8,500
3,444
2,542
2,318
1,902
1,720
1,368
1,320
1,200
771
4.09%
1.66%
1.22%
1.11%
0.91%
0.83%
0.66%
0.63%
0.58%
0.37%
Total
25,085
12.07%
Total employees in York County3
207,900
Employer2
1
Obtained from the County of York, Comprehensive Annual Financial Report
For The Year Ended December 31, 2011.
Data is not available for The Year Ended December 31, 2002.
2
Source is the Pa Department of Labor and Industry, Center for Workforce
Information and Analysis.
3
Source is the www.paworkstat.state.pa.us website.
132
DALLASTOWN AREA EDUCATION ASSOCIATION ELIGIBLE STAFF
AS OF JUNE 30, 2012
Unaudited
Degree Type
Bachelor's
Bachelor's + 24
Master's or Master's Equivalent
Master's + 15
Master's + 30
Master's + 45
Masters + 60
Base Salary Range
Number of
Employees
$47,883 - $49,099
$64,012 - $72,624
$69,775 - $78,387
$72,479 - $81,091
$75,379 - $83,991
$79,063 - $87,675
$83,243 - $91,855
32
27
70
39
37
38
184
$48,307
$67,488
$71,660
$76,853
$81,422
$85,280
$90,809
427
$79,253
Total average salaries
Source: Business Office Records
133
Average Base
SUMMARY OF ACTIVE EMPLOYEES BY JOB CLASS
AS OF JUNE 30, 2012
Unaudited
Full-Time
Job Class
Part-Time
Total
Custodians and Maintenance - 10 months
1
3
4
Custodians and Maintenance - 12 months
61
-
61
Administrators
25
-
25
Aides
22
98
120
Athletics, Coaching, Pool & Intramurals
2
114
116
Support staff-administration 10 months
4
2
6
Support staff-administration 12 months
44
2
46
-
1
1
401
-
401
6
-
6
16
-
16
4
-
4
586
220
Crossing Guards
Classroom Teachers
Librarians
Guidance Counselors
Nurses
Source: Human Resources Records
134
806
SCHOOL BUILDING INFORMATION
Unaudited
2012
2011
2010
2009
2007
2006
2008
2005
2004
2003
Building
Dallastown Area High School (Built in 1958 with an addition in 1975 and renovations in 2000)
Square Feet2
290,985
290,985
290,985
290,985
290,985
Building FTE2
1,551
1,551
1,551
1,551
1,551
1
Enrollment
1,862
1,869
1,896
1,841
1,817
Grades
9-12
9-12
9-12
9-12
9-12
290,985
1,551
1,830
9-12
290,985
1,551
1,773
9-12
290,985
1,551
1,700
9-12
290,985
1,551
1,638
9-12
290,985
1,551
1,540
9-12
Dallastown Area Middle School (Built in 1963 with an addition in 1969 and renovations in 2000)
2
Square Feet
257,405
257,405
257,405
257,405
257,405
Building FTE2
1,187
1,187
1,187
1,187
1,187
Enrollment1
958
921
1,380
1,467
1,486
Grades
7-8
7-8
6-8
6-8
6-8
257,405
1,187
1,485
6-8
257,405
1,187
1,460
6-8
257,405
1,187
1,386
6-8
257,405
1,187
1,391
6-8
257,405
1,187
1,355
6-8
Dallastown Elementary (Built in 1912 with additions in 1929 and 1941. A separate building for the gym and cafeteria built in 1961)
Square Feet2
43,790
43,790
43,790
43,790
43,790
43,790
43,790
43,790
Building FTE2
325
325
325
325
325
325
325
325
Enrollment1
170
175
260
243
238
249
241
226
Grades
K-3
K-3
K-5
K-5
K-5
K-5
K-5
K-5
43,790
325
232
K-5
43,790
325
241
K-5
Leaders Heights Elementary (Built in 1965)
Square Feet2
33,857
Building FTE2
300
Enrollment1
169
Grades
K-3
Dallastown Area Intermediate School School (Construction completed in 2010)
Square Feet2
310,000
310,000
2
Building FTE
2,925
2,925
Enrollment1
1,412
1,455
Grades
4-6
4-6
33,857
300
268
K-5
33,857
300
264
K-5
33,857
300
274
K-5
33,857
300
270
K-5
33,857
300
269
K-5
33,857
300
259
K-5
33,857
300
250
K-5
Loganville-Springfield Elementary (Built in 1953 with additions in 1971 and 2001)
Square Feet2
63,987
63,987
63,987
63,987
Building FTE2
775
775
775
775
1
Enrollment
414
420
623
619
Grades
K-3
K-3
K-5
K-5
63,987
775
605
K-5
63,987
775
592
K-5
63,987
775
569
K-5
63,987
775
496
K-5
63,987
775
480
K-5
63,987
775
491
K-5
Ore Valley Elementary (Built in 1961 with an addition and renovations in 1993)
Square Feet2
90,057
90,057
90,057
90,057
Building FTE2
600
600
600
600
1
Enrollment
558
539
801
801
Grades
K-3
K-3
K-5
K-5
90,057
600
816
K-5
90,057
600
780
K-5
90,057
600
803
K-5
90,057
600
695
K-5
90,057
600
639
K-5
90,057
600
650
K-5
York Township Elementary (Built in 1949 with additions in 1953 and 1993)
2
Square Feet
101,495
101,495
101,495
Building FTE2
850
850
850
Enrollment1
486
495
728
Grades
K-3
K-3
K-5
101,495
850
669
K-5
101,495
850
669
K-5
101,495
850
645
K-5
101,495
850
683
K-5
101,495
850
648
K-5
101,495
850
650
K-5
1
District enrollment data as of October 1st.
2
Obtained from District records.
33,857
300
166
K-3
33,857
300
256
K-5
101,495
850
702
K-5
135
NATIONAL SCHOOL LUNCH PROGRAM FREE AND REDUCED DATA (continued on the next page)
Unaudited
2012
Number of
lunches
Percent
2011
Number of
lunches
Percent
2010
Number of
lunches
Percent
2009
Number of
lunches
Percent
2007
2008
Number of
lunches
Percent
Number of
lunches
2006
Percent
Number of
lunches
Percent
2005
Number of
lunches
Percent
2004
Number of
lunches
2003
Percent
Number of
lunches
Percent
Building
Dallastown Area High School
Free
27,455
17.05%
Reduced
8,986
5.58%
Paid
124,570
77.37%
Total
161,011 100.00%
32,678
9,095
159,819
201,592
16.21% 25,608
4.51% 11,682
79.28% 162,960
100.00% 200,250
12.79% 20,891
5.83% 11,682
81.38% 167,697
100.00% 200,270
10.43% 18,677
9.29% 16,101
5.83%
8,183
4.07%
7,010
83.74% 174,128 86.64% 171,712
100.00% 200,988 100.00% 194,823
8.26%
3.60%
88.14%
100.00%
14,117
6,397
151,252
171,766
8.22% 12,963
3.72%
5,784
88.06% 143,010
100.00% 161,757
8.01% 11,095
3.58%
5,972
88.41% 135,935
100.00% 153,002
7.25%
3.90%
88.85%
100.00%
8,158
3,879
115,316
127,353
6.41%
3.05%
90.55%
100.00%
Dallastown Area Middle School
Free
24,576
25.29%
Reduced
6,963
7.17%
Paid
65,635
67.54%
Total
97,174 100.00%
23,387
7,108
87,064
117,559
19.89% 32,344
6.05% 13,349
74.06% 136,230
100.00% 181,923
17.78% 26,111
7.34% 13,409
74.88% 152,518
100.00% 192,038
13.60% 24,163 11.78% 21,301
6.98% 14,323
6.98% 11,458
79.42% 166,595 81.23% 156,195
100.00% 205,081 100.00% 188,954
11.27%
6.06%
82.66%
100.00%
19,773
10,355
154,210
184,338
10.73% 17,563
5.62% 10,338
83.66% 135,339
100.00% 163,240
10.76% 14,515
6.33%
8,353
82.91% 120,819
100.00% 143,687
10.10%
5.81%
84.08%
100.00%
13,129
7,702
110,134
130,965
10.02%
5.88%
84.09%
100.00%
Dallastown Area Intermediate School1
Free
41,809
24.96%
42,279
Reduced
13,143
7.85%
12,100
Paid
112,537
67.19% 147,662
Total
167,489 100.00% 202,041
20.93%
5.99%
73.09%
100.00%
Dallastown Elementary
Free
9,145
Reduced
1,865
Paid
10,724
Total
21,734
42.08%
8.58%
49.34%
100.00%
8,352
1,897
12,079
22,328
37.41%
8.50%
54.10%
100.00%
8,319
3,075
19,743
31,137
26.72%
9.88%
63.41%
100.00%
6,179
3,145
19,382
28,706
21.53%
10.96%
67.52%
100.00%
7,284 25.08%
2,723
9.37%
19,041 65.55%
29,048 100.00%
5,644
2,283
21,144
29,071
19.41%
7.85%
72.73%
100.00%
4,820
2,620
22,851
30,291
15.91%
8.65%
75.44%
100.00%
3,665
3,565
22,493
29,723
12.33%
11.99%
75.68%
100.00%
3,692
3,367
23,217
30,276
12.19%
11.12%
76.68%
100.00%
3,915
1,836
26,090
31,841
12.30%
5.77%
81.94%
100.00%
Leaders Heights Elementary
Free
3,291
17.20%
Reduced
227
1.19%
Paid
15,613
81.61%
Total
19,131 100.00%
3,555
620
15,828
20,003
17.77%
3.10%
79.13%
100.00%
1,332
2,649
23,014
26,995
4.93%
9.81%
85.25%
100.00%
2,634
919
26,695
30,248
8.71%
3.04%
88.25%
100.00%
2,372
7.43%
1,465
4.59%
28,098 87.98%
31,935 100.00%
2,055
1,123
27,747
30,925
6.65%
3.63%
89.72%
100.00%
1,431
1,880
28,710
32,021
4.47%
5.87%
89.66%
100.00%
1,677
1,032
29,902
32,611
5.14%
3.16%
91.69%
100.00%
2,341
894
28,306
31,541
7.42%
2.83%
89.74%
100.00%
970
632
27,496
29,098
3.33%
2.17%
94.49%
100.00%
Sources: District Food Service Department
1
Dallastown Area Intermediate School opened during the 2010-2011 school year, therefore, there is no data prior to 2010-2011.
136
NATIONAL SCHOOL LUNCH PROGRAM FREE AND REDUCED DATA (continued)
Unaudited
2012
Number of
lunches
Percent
2011
Number of
lunches
Percent
2010
Number of
lunches
Percent
2009
Number of
lunches
Percent
2007
2008
Number of
lunches
Percent
Number of
lunches
Percent
2006
Number of
lunches
Percent
2005
Number of
lunches
Percent
2004
Number of
lunches
Percent
2003
Number of
lunches
Percent
Building
Loganville-Springfield Elementary
Free
4,325
10.64%
Reduced
2,399
5.90%
Paid
33,920
83.46%
Total
40,644 100.00%
7,412
2,144
37,874
47,430
15.63%
4.52%
79.85%
100.00%
8,791
3,783
52,464
65,038
13.52%
5.82%
80.67%
100.00%
8,674
2,788
55,495
66,957
12.95%
4.16%
82.88%
100.00%
6,941 10.54%
3,901
5.92%
55,028 83.54%
65,870 100.00%
5,683
2,545
58,054
66,282
8.57%
3.84%
87.59%
100.00%
4,332
6.50%
3,327
4.99%
58,964 88.50%
66,623 100.00%
5,127
3,865
52,216
61,208
8.38%
6.31%
85.31%
100.00%
5,878
1,871
49,565
57,314
10.26%
3.26%
86.48%
100.00%
4,716
8.01%
2,848
4.84%
51,321 87.15%
58,885 100.00%
Ore Valley Elementary
Free
19,744
Reduced
4,247
Paid
32,433
Total
56,424
34.99%
7.53%
57.48%
100.00%
18,975
3,120
37,831
59,926
31.66%
5.21%
63.13%
100.00%
21,142
5,541
58,830
85,513
24.72%
6.48%
68.80%
100.00%
17,901
6,725
66,683
91,309
19.60%
7.37%
73.03%
100.00%
13,723 14.63%
6,648
7.09%
73,414 78.28%
93,785 100.00%
13,918
5,054
68,594
87,566
15.89%
5.77%
78.33%
100.00%
12,674 14.03%
5,009
5.54%
72,678 80.43%
90,361 100.00%
8,796
4,686
69,131
82,613
10.65%
5.67%
83.68%
100.00%
6,983
5,043
65,584
77,610
9.00%
6.50%
84.50%
100.00%
7,699 10.24%
5,767
7.67%
61,722 82.09%
75,188 100.00%
York Township Elementary
Free
17,991
31.75%
Reduced
5,451
9.62%
Paid
33,227
58.63%
Total
56,669 100.00%
17,055
4,527
40,071
61,653
27.66%
7.34%
64.99%
100.00%
18,113
7,173
65,140
90,426
20.03%
7.93%
72.04%
100.00%
15,419
5,813
65,534
86,766
17.77%
6.70%
75.53%
100.00%
13,345 15.64%
4,579
5.37%
67,387 78.99%
85,311 100.00%
10,910
4,549
63,771
79,230
13.77%
5.74%
80.49%
100.00%
9,374 12.70%
5,920
8.02%
58,489 79.27%
73,783 100.00%
8,087
7,038
67,824
82,949
9.75%
8.48%
81.77%
100.00%
4,351
4,476
68,097
76,924
5.66%
5.82%
88.53%
100.00%
6,958
8.60%
4,040
4.99%
69,895 86.40%
80,893 100.00%
20.98% 115,649
5.54% 47,252
73.48% 518,381
100.00% 681,282
16.98%
6.94%
76.09%
100.00%
97,809
44,481
554,004
696,294
14.05%
6.39%
79.56%
100.00%
District Totals
Free
148,336
Reduced
43,281
Paid
428,659
Total
620,276
23.91%
6.98%
69.11%
100.00%
153,693
40,611
538,228
732,532
86,505 12.15% 75,612
41,822
5.87% 34,022
583,691 81.98% 567,217
712,018 100.00% 676,851
Sources: District Food Service Department
137
11.17% 66,521 10.25% 57,878
5.03% 35,508
5.47% 36,308
83.80% 547,154 84.28% 519,915
100.00% 649,183 100.00% 614,101
9.42% 48,855
5.91% 29,976
84.66% 491,523
100.00% 570,354
8.57% 45,545
8.53%
5.26% 26,704
5.00%
86.18% 461,974 86.48%
100.00% 534,223 100.00%
MISCELLANEOUS STATISTICS
Unaudited
2011
Average Daily
Membership1
N/A
6,243.385
6,182.593
6,142.247
6,194.204
6,131.585
Weighted Average Daily
Membership1
N/A
7,310.831
7,102.085
7,056.169
7,113.340
7,027.634
Market Value/Personal
Income Aid Ratio
0.4343
0.4247
2010
2007
2006
2008
2012
0.4296
2009
0.4182
0.4216
0.4073
2005
2004
2003
6,052.377
5,664.441
5,553.163
5,356.260
6,929.916
6,481.286
6,403.944
6,148.846
0.4085
0.3972
Source: Pennsylvania Department of Education
Notes:
Average Daily Membership (ADM) is the term used for all resident pupils of the School District for whom the school district is financially responsible.
It is calculated by dividing the aggregate days membership for all children on active rolls by the number of days the school is in session.
Weighted Average Daily Membership (WADM) is the term used for the assignment of weight by grade level to ADM.
The current weighting is half-time kindergarten at .5 mills, full-time kindergarten and elementary (grades 1-6) at 1.0, and
secondary (grades 7-12) at 1.36.
The Market Value/Personal Income Aid Ratio (MV/PI) is compromised of two separate ratios, the market value aid ratio and the personal income aid ratio.
The ratio takes into account the District estimated market value and the District's total personal income as a proportion of state market
value and state personal income in proportion to the number of students in the District. The basic formula is 60% property weighted and
40% income weighted.
Aid ratios higher for less wealthier School Districts and lower for those with greater local wealth.
1
ADM and WADM not available for the Fiscal Year Ended June 30, 2012, as of the report date.
138
0.3881
0.4057
ENROLLMENT STATISTICS AND PROJECTIONS
Unaudited
Fiscal Year
Kindergarten
1st grade
2nd grade 3rd grade
4th grade
5th grade
6th grade 7th grade
8th grade
9th grade 10th grade 11th grade 12th grade Total
Ten Years of Historical Data 1
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
303
295
351
396
388
401
398
389
461
431
392
357
357
447
466
453
435
425
439
463
388
383
373
362
438
454
467
451
440
449
393
407
415
411
374
454
460
476
456
455
407
408
434
448
433
398
460
457
491
463
399
408
439
464
465
432
413
470
473
484
424
440
461
480
504
477
451
429
490
464
474
447
477
469
503
500
484
467
446
501
457
504
448
511
478
509
532
484
475
453
445
471
491
439
501
496
525
508
498
490
356
416
447
477
424
495
469
484
461
442
383
355
422
445
459
379
451
429
472
458
356
396
340
412
446
447
396
475
438
476
5,177
5,287
5,455
5,761
5,879
5,895
5,941
5,944
6,040
6,029
502
472
536
546
557
568
579
590
601
448
480
452
513
522
533
543
554
565
375
463
496
468
531
540
551
562
573
463
383
472
506
477
542
551
562
573
460
475
393
484
519
489
556
565
576
479
471
486
402
495
531
500
569
578
521
497
489
504
417
514
551
519
590
510
542
517
508
524
434
534
573
540
521
522
555
529
520
536
444
546
586
471
538
539
573
546
537
554
459
564
446
427
488
489
520
495
487
503
417
441
435
416
476
477
507
483
475
491
460
451
445
426
487
488
519
494
486
6,097
6,156
6,284
6,424
6,592
6,714
6,852
6,971
7,140
Projected Data 2
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
1
2
October 1st enrollment reports as submitted to Pennsylvania Department of Education.
Pennsylvania Department of Education projections as of July 2011
139
MILLAGE RATES OF YORK COUNTY SCHOOL DISTRICTS
Unaudited
Central York SD
Dallastown Area SD
Dover Area SD
Eastern York SD
Hanover Public SD
Northeastern York SD
Northern York County SD
Red Lion Area SD
South Eastern SD
South Western SD
Southern York County SD
Spring Grove Area SD
West Shore SD
West York Area SD
York City SD
York Suburban SD
2012
2011
2010
2009
17.76
22.26
20.53
19.05
19.07
23.72
14.61
22.06
20.85
16.55
16.84
19.67
11.78
19.81
31.08
20.45
17.76
22.26
20.33
18.85
19.07
23.28
14.37
22.06
20.48
16.28
16.62
19.13
11.10
19.81
29.54
20.17
17.26
21.53
19.57
18.34
18.69
22.39
13.87
21.23
19.73
15.62
16.22
18.45
10.30
19.12
29.54
19.51
16.81
20.84
18.87
18.34
18.49
21.74
13.87
20.44
18.83
15.02
15.75
18.34
10.50
18.27
29.54
18.74
Source: Pennsylvania Department of Education
140
2007
2006
2008
16.31
19.81
17.82
17.38
17.72
21.74
13.87
18.69
17.83
14.24
15.08
17.20
10.20
17.33
29.54
17.69
15.32
18.81
16.80
16.10
16.92
20.79
13.30
16.84
16.91
13.66
14.39
15.89
10.10
16.65
27.19
16.83
17.47
21.74
18.77
19.20
19.05
22.81
16.40
19.50
21.35
16.50
17.77
18.20
11.97
19.09
27.96
18.57
2005
2004
2003
15.83
20.24
18.77
17.50
17.55
20.73
15.40
17.55
16.72
15.55
16.80
16.70
18.42
24.00
17.50
11.30
14.33
17.76
17.42
16.60
16.95
19.78
14.15
16.05
16.23
15.05
15.98
15.23
18.04
22.25
16.22
11.50
13.29
16.51
16.05
15.70
16.55
18.83
13.38
14.80
14.33
14.10
15.19
14.00
16.69
21.78
14.90
11.50
BUILDING CONSTRUCTION
LAST TEN CALENDAR YEARS
Unaudited
Calendar Year
Ended
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Number of
Permits
89
64
114
160
283
340
438
284
222
169
178
Residential
$13,579,952
8,563,907
15,467,202
27,730,138
51,757,031
74,238,478
70,459,414
45,808,571
32,559,877
24,909,911
27,502,528
Commercial
$47,689,783
24,506,845
3,546,000
1,926,500
32,925,931
6,297,371
12,856,000
3,692,215
1,277,077
4,716,050
Source: York County Planning Commission
141
Industrial
$
5,700,000
1,500,000
-
Public
$
49,742,000
1,800,000
1,741,448
125,000
6,298,474
Total
$61,269,735
33,070,752
68,755,202
27,730,138
61,183,531
108,905,857
78,381,785
58,664,571
36,252,092
26,186,988
38,517,052
SINGLE AUDIT SECTION
JUNE 30, 2012
142
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Dallastown Area School District as of
and for the year ended June 30, 2012, which collectively comprise Dallastown Area School District’s
basic financial statements and have issued our report thereon dated November 16, 2012. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control over Financial Reporting
Management of the Dallastown Area School District is responsible for establishing and maintaining
effective internal control over financial reporting. In planning and performing our audit, we considered
the Dallastown Area School District's internal control over financial reporting as a basis for designing our
auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of Dallastown Area School District’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of
Dallastown Area School District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was made for the limited purpose described
in the first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as
defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Dallastown Area School District's financial
statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial-statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the Board of School Directors, management
and Federal awarding agencies and pass-through entities, and is not intended to be, and should not be, used
by anyone other than these specified parties.
November 16, 2012
144
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH
REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT
ON EACH MAJOR PROGRAM AND
ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
Compliance
We have audited the compliance of Dallastown Area School District with the types of compliance
requirements described in OMB Circular A-133 Compliance Supplement that could have a direct and
material effect on each of the District’s major Federal programs for the year ended June 30, 2012.
Dallastown Area School District's major Federal programs are identified in the Summary of Auditor's
Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is
the responsibility of Dallastown Area School District's management. Our responsibility is to express an
opinion on Dallastown Area School District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on
a major Federal program occurred. An audit includes examining, on a test basis, evidence about
Dallastown Area School District's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on Dallastown Area School
District's compliance with those requirements.
In our opinion, Dallastown Area School District complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major Federal
programs for the year ended June 30, 2012.
Internal Control over Compliance
Management of Dallastown Area School District is responsible for establishing and maintaining
effective internal control over compliance with the requirements of laws, regulations, contracts and
grants applicable to Federal programs. In planning and performing our audit, we considered Dallastown
Area School District's internal control over compliance with requirements that could have a direct and
material effect on a major Federal program to determine the auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of Dallastown Area School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a Federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance requirement
of a Federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of the Board of School Directors, management
and Federal awarding agencies and pass-through entities, and is not intended to be, and should not be,
used by anyone other than these specified parties.
November 16, 2012
146
Schedule of Findings and Questioned Costs
Section I -- Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:
● Material weakness (es) identified?
● Significant deficiency(ies) identified that are not
considered to be a material weakness (es)?
Noncompliance material to financial statements
noted?
Yes
X No
Yes
X No
___ Yes
X No
Yes
X No
Yes
X None Reported
Federal Awards
Internal control over major programs:
● Material weakness (es) identified?
● Significant deficiency(ies) identified that are not
considered to be a material weakness (es)?
Type of auditor's report issued on compliance for the major programs: Unqualified
● Any audit findings disclosed that are
required to be reported in accordance
with Section .510(a) of Circular A-133?
Yes
147
X No
Schedule of Findings and Questioned Costs (Continued)
Identification of the major programs:
CFDA Number(s)
10.555
10.553
Name of Federal Programs/Cluster
National School Lunch Program
School Breakfast Program
Dollar threshold used to distinguish between
type A and type B programs
Auditee qualified as low-risk auditee?
$300,000
X
Yes
No
Section II -- Financial Statement Findings
A. Significant Deficiency(ies) in Internal Control
There were no findings relating to the financial statement audit required to be reported.
B. Compliance Findings
There were no compliance findings relating to the financial-statement audit required to be
reported.
Section III -- Federal Award Findings and Questioned Costs
A. Compliance Findings
There were no findings relating to the Federal awards required to be reported in
accordance with Section .510(a) of OMB Circular A-133.
B. Significant Deficiency(ies) in Internal Control
There were no findings relating to the Federal awards required to be reported in
accordance with Section .510(a) of OMB Circular A-133.
148
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued on the next page)
Source
Code
Federal
C.F.D.A.
Number
Pass-Through
Grantor's
Number
I
I
84.010
84.010
013-120112
013-110112
11-12
I
I
84.367
84.367
020-120112
020-110112
11-12
Title III - Language Instruction
Title III - Language Instruction
I
I
84.365
84.365
010-120112
010-110112
11-12
ARRA-Fiscal Stabilization - Basic Ed
I
84.394
Education Jobs Fund
I
Passed through Lincoln Intermediate Unit
Special Education - Grants to States
ARRA - Special Education - Grants to States
Early Intervention - Special Education Preschool Grants
Passed through Shippensburg University
I3 Reading Recovery Grant
I3 Reading Recovery Grant
Grantor Program Title
Program
or Annual
Award
Grant
Period
U.S. Department of Education
Passed through the PA Dept. of Education
Title I - Grants to Local Educational Agencies
Title I - Grants to Local Educational Agencies
Total U.S. Department of Education
149
$
$
388,653
403,115
$
$
110,467
131,494
10-11
$
$
35,919
23,381
ARRA-126-11011
10-11
$
930,193
84.410
140-12-0112
11-12
$
8,546
I
I
I
84.027
84.391
84.173
N/A
N/A
N/A
11-12
09-11
11-12
$
$
$
1,022,528
1,059,231
12,649
I
I
84.411
84.411
N/A
N/A
11-12
11-13
$
$
15,000
6,000
10-11
10-11
Accrued or
(Deferred)
Revenue at
July 1, 2011
Total
Received for
the Year
$
313,565
26,578
$
26,578
Revenue
Recognized
$
388,653
-
Expenditures
Recognized
$
388,653
-
81,232
34,727
34,727
110,467
-
110,467
-
35,919
16,701
11,083
35,919
5,618
35,919
5,618
465,096
465,096
1,022,528
178,983
12,649
15,000
6,000
2,208,978
22,011
559,495
Accrued or
(Deferred)
Revenue at
June 30, 2012
-
-
8,546
8,546
1,022,528
156,972
12,649
1,022,528
156,972
12,649
15,000
-
15,000
-
1,756,352
1,756,352
150
$
75,088
29,235
8,546
(6,000)
106,869
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
Grantor Program Title
Source
Code
Federal
C.F.D.A.
Number
Pass-Through
Grantor's
Number
I
I
10.555
10.555
N/A
N/A
11-12
I
I
10.553
10.553
N/A
N/A
11-12
10-11
N/A
N/A
I
10.555
N/A
11-12
N/A
/ $ 2,591,380 =
32.22%
U.S. Department of Agriculture
Passed through PA Department of Education
Passed through the PA Department of Agriculture
National School Lunch Program - Food Donations
Grant
Period
10-11
Total U.S. Department of Agriculture
Total Expenditures of Federal Awards
Test of 25% rule:
Total Federal Expenditures
Programs selected for testing major programs
National School Lunch Program - Food Donations
$ 2,591,380
$
Source Codes:
D - Direct Funding
I - Indirect Funding
See Notes to Schedule of Expenditures of Federal Awards.
151
625,155
84,068
125,805
835,028
Program
or Annual
Award
N/A
N/A
Accrued or
(Deferred)
Revenue at
July 1, 2011
Total
Received for
the Year
Expenditures
Recognized
619,018
17,484
17,484
625,155
-
625,155
-
6,137
-
124,568
5,400
5,400
125,805
-
125,805
-
1,237
-
84,068
84,068
835,028
835,028
84,068
-
850,538
$
Revenue
Recognized
Accrued or
(Deferred)
Revenue at
June 30, 2012
3,059,516
22,884
$
582,379
$
2,591,380
$
152
2,591,380
7,374
$
114,243
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Note 1.
Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant
activity of Dallastown Area School District under programs of the federal government for the year ended
June 30, 2012. The information in this schedule is presented in accordance with the requirements of the
Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the
Dallastown Area School District, it is not intended to and does not present the financial position, changes
in net assets or cash flows of the Dallastown Area School District.
Note 2.
Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost
Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Revenue is recognized when earned, and expenses are
recognized when incurred. Negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business to amounts reported as expenditures in prior years. Pass-through
entity identifying numbers are presented where available.
153
SUMMARY SCHEDULE OF PRIOR YEAR’S AUDIT FINDINGS
There were no prior-year audit findings.
154

dallastown area school district

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