Comprehensive Annual Financial Report - Harford County Public ...

Harford County Public Schools
Management's Discussion and Analysis (MD&A)
June 30, 2012
welfare. Of the remaining 12.90%, all but about 3.64% is used for the direct administration of
schools and instructional support. It is important to note that in this report format, costs for
employee benefits and depreciation on fixed assets are allocated to the appropriate program or
function.
Total revenues decreased by 2.46% from the prior year, as shown in the table below. This
decrease is attributable to decreases in operating grants as well as decreases in contributions and
capital grants and contributions. HCPS is fiscally dependent on local and state aid to fund its
daily operations. State aid is largely formula driven based on student population and wealth.
Local revenue, provided by the Harford County Government, is dependent upon the economic
condition of the County. However, the education statute requires a minimum level of funding
equal to the prior year’s per pupil contribution times the current year projected enrollment. Most
of the operating grant funding is from the State and County governments as well.
Expenses decreased by 0.85%. The bulk of the decrease, in terms of dollars, occurred in the
instruction categories reflecting decreased costs from lower operating costs for school-based
positions.
Harford County Public Schools
Change in Net Assets
June 30, 2011 June 30, 2012
Revenues
Charges for services $ 9,694,002 $ 9,420,543
Operating grants and contributions 136,195,979 128,526,812
Capital grants and contributions 47,666,945 28,383,194
Local appropriations 211,067,388 217,782,344
State aid 140,638,081 143,455,592
Federal aid 695,554 1,345,207
Miscellaneous 3,960,060 7,507,665
Unrestricted investment earnings 43,075 32,894
Total revenues 549,961,084 536,454,251
Expenses
Instruction 383,639,311 371,555,181
Administration 15,340,652 16,113,511
Mid-level administration 36,620,721 37,070,005
Pupil personnel services 2,222,690 2,322,350
Health services 4,849,562 5,254,923
Pupil transportation 35,423,950 37,331,566
Operation of plant 38,716,053 40,267,000
Maintenance of plant and equipment 15,789,251 16,989,239
Community services 451,022 420,776
Food services 14,848,019 15,829,476
Interest on long-term debt 512,108 615,326
Depreciation - unallocated 87,419 85,824
Total expenses 548,500,758 543,855,177
Change in Net Assets 1,460,326 (7,400,926)
Net assets - beginning of year 458,558,538 460,018,864
Net assets - end of year $ 460,018,864 $ 452,617,938
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