Comprehensive Annual Financial Report - Harford County Public ...

Harford County Public Schools
Management's Discussion and Analysis (MD&A)
June 30, 2012
The unrestricted deficit at June 30, 2012 of $128.0 million is the result of reducing the fund
balance from the General Fund (Exhibit 3) of $25.8 million by the compensated absences longterm
liabilities of $26.47 million and other post-employment benefits of $127.4 million. We are
committed by employee agreements to pay employees at retirement twenty-five percent (25%) of
their earned but unused sick leave. For administrators the limit is 250 days, all others are up to
200 days, plus any earned and unused vacation. The long-term portion is the amount we expect
to pay beyond June 30, 2012. A total of $28.0 million exists at June 30, 2012 with $4.8 million
due within one year. The amount attributable to vacation leave is $4.2 million and $23.9 million
for sick leave. Historically, this liability was funded on a "pay-as-you-go" basis from available
current financial resources. This method is expected to continue. The remaining $10.0 million
long-term liability balance represents our obligations under the capital lease for the construction
of the administration building.
Results of operations for HCPS as a whole are presented in Exhibit 2, the Statement of
Activities. Approximately $543.9 million in expenses are reported. To the extent possible,
revenue directly attributed to the function or program is reported against the appropriate expense.
Included in such revenues are charges for services and grants. $377.5 million in expenses were
paid using other general revenue sources not specifically attributed to a function or program.
The Food Services program is designed to be self-funded. Allocation of program revenues to
expenses produced a net gain for this program.
Harford County Public Schools
Statement of Activities
Total Cost of
Services
Net Cost of
Services
% Net Cost to
Total
Instruction $371,555,181 $246,405,711 66.32%
Pupil personnel 2,322,350 2,163,913 93.18%
Health services 5,254,923 5,254,923 100.00%
Pupil transportation 37,331,566 25,449,424 68.17%
Operation and maintenance of plant 57,256,239 49,297,768 86.10%
Food services 15,829,476 151,063 0.95%
All others 54,305,442 48,801,826 89.87%
Total $543,855,177 $377,524,628 69.42%
All others
Administration $16,113,511 $14,540,200 90.24%
Mid-level administration 37,070,005 33,496,099 90.36%
Community services 420,776 64,377 15.30%
Depreciation - unallocated 85,824 85,824 100.00%
Interest on debt 615,326 615,326 100.00%
Total $54,305,442 $48,801,826 89.87%
The above table summarizes the district-wide cost of services for each program or function.
About 87.10% of the total costs of services are directly related to students' instruction and
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