Comprehensive Annual Financial Report - Harford County Public ...

Harford County Public Schools
Management's Discussion and Analysis (MD&A)
June 30, 2012
District-wide Financial Analysis
Net assets over time may serve as a useful indicator of a district’s financial position. In the case
of HCPS, assets exceeded liabilities by $452.6 million at the close of the fiscal year, which
represents a decrease from the prior year of $7.4 million. Although capital assets increased by
$8.0 million, the results of operations for the year were diminished by increasing liabilities
associated with other post-employment benefits (OPEB).
By far, the largest portion of HCPS’ net assets reflects the investment in capital assets (i.e., land,
buildings, machinery, and equipment), less any related debt used to acquire those assets that are
still outstanding. These capital assets are used to provide services to the students and citizens of
Harford County and are not available for future spending. Although HCPS’ investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these related liabilities. Minimal debt for assets is carried by HCPS. As previously
explained, we are fiscally dependent and nearly all capital debt is carried by the County and State
governments.
HCPS’ net assets as of June 30, 2012, are illustrated in the below table and Exhibit 2.
Harford County Public Schools
Net Assets
June 30, 2012 June 30, 2011 $ Change % Change
Current and other assets $ 47,663,667 $ 53,748,445 $ (6,084,778) -11.32%
Capital assets 578,887,101 570,807,038 8,080,063 1.42%
Total assets 626,550,768 624,555,483 1,995,285 0.32%
Current and other liabilities 8,409,531 16,158,505 (7,748,974) -47.96%
Long-term liabilities 165,523,299 148,378,114 17,145,185 11.56%
Total liabilities 173,932,830 164,536,619 9,396,211 5.71%
Net assets
Capital assets 568,870,454 560,834,110 8,036,344 1.43%
Restricted assets 11,834,170 9,862,937 1,971,233 19.99%
Unrestricted (128,086,686) (110,678,183) (17,408,503) 15.73%
Total net assets $ 452,617,938 $ 460,018,864 $ (7,400,926) -1.61%
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