Comprehensive Annual Financial Report - Harford County Public ...

Relevant financial policies
Primary funding is provided by the State of Maryland and Harford County Government. The
budget is approved by the Board of Education and the Harford County Council in accordance
with State laws. The Board has no authority to levy and collect taxes or increase the budget.
Formal budgetary integration, including encumbrance accounting, is employed as a management
control device during the year for the governmental fund types. Management is authorized to
transfer funds within major categories of expenditure, as defined by statute. Transfers between
categories of expenditure during the fiscal year require approval of both the Board of Education
and Harford County Council.
By statute, in order to receive any increase in State basic school aid, each county must
appropriate an amount equal to, or greater than, the prior year per pupil appropriation. Referred
to as the ‘maintenance of effort’ calculation, it provides that if there is no enrollment growth
county funding will remain the same as that of the prior year in terms of total dollars. Counties
often appropriate far in excess of the minimum amount stipulated in the law.
Capital projects are funded by Harford County Government and the State of Maryland. The
Board of Education has no authority to issue general obligation debt. Funds are budgeted and
appropriated on both a project and annual basis. Capital projects funds do not lapse at the end of
each year and may be expended until completion of the project. Budget transfers between
projects require the approval of both the Board of Education and the Harford County Council.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to Harford County
Public Schools for its comprehensive annual financial report for the fiscal year ended June 30,
2011. This was the eighth consecutive year that the school system has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a school system must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
In addition, HCPS also received the GFOA’s Distinguished Budget Presentation Award for its
annual budget document for the Year Beginning July 1, 2011. In order to qualify for the
Distinguished Budget Presentation Award, the budget document was judged to be proficient in
several categories, including as a policy document, a financial plan, an operations guide, and a
communications device.
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