Comprehensive Annual Financial Report - Harford County Public ...

Harford County Public Schools
Management's Discussion and Analysis (MD&A)
June 30, 2012
It is critical for the reader to understand that local and state revenues account for 96.23% of the total
General Fund unrestricted revenue. Until recently, both have been stable and highly predictable. In
the past few years, as state and local revenues declined with the general condition of the economy,
mid-year legislative and executive initiatives resulted in the reduction of revenues.
Interest earnings continue to fall well below budget as a result of historic low rates and aggressive
cash management by the County in matching our cash demands with their payment schedule to us.
Other revenue exceeded projections. Included are tuition, facility rental, e-rate rebates, Medicare Part
D receipts, dividends from MABE’s insurance programs, and payments from health and dental
insurance carriers. Major receipt amounts in the miscellaneous revenue account are from the
following:
Health/Dental Insurance rebates & settlements $1,370,919
Medicare Part D* 1,000,008
Other Miscellaneous 1,528,158
*Part of the Contribution to the OPEB Investment Trust Fund appropriated for FY12
Always frugal, over the past two years hiring, conference, and other expenditure restrictions
implemented early in the fiscal year helped achieve spending 1.89% below budget in FY12.
Capital Asset and Debt Administration (See Notes 2 and 7)
At June 30, 2012, HCPS had over $728.0 million invested in a broad range of capital assets
including land (over 1,891 acres), buildings (over 6.175 million square feet) and improvements,
furniture, vehicles and other equipment. Capital assets increased by just over $20.5 million from
the same time last year, excluding the effect of depreciation as shown in the table below.
June 30, 2011 June 30, 2012 $ Change % Change
Construction in progress $ 139,089,104 $ 119,955,865 $ (19,133,239) -13.76%
School properties 536,382,485 573,025,303 36,642,818 6.83%
Furniture, fixtures and
equipment 32,046,680 35,080,258 3,033,578 9.47%
Total capital assets $ 707,518,269 $ 728,061,426 $ 20,543,157 2.90%
26