Comprehensive Annual Financial Report - Harford County Public ...

HARFORD COUNTY PUBLIC SCHOOLS
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgets and Budgetary Accounting (continued)
The expenditures under special state and federal programs may exceed budgeted amounts. The
grants included in this category are not part of budget categories subject to the spending
limitations of the operating budget. Expenditures under these programs are limited to the
amounts of the respective grants.
Food Service Fund Budget (Special Revenue Fund)
The Food Service Fund Budget is not a legally adopted budget and, therefore, a budget to actual
presentation is not included in the basic financial statements. The comparison with actual
revenues and expenditures is presented as a supplementary schedule to these financial
statements. Revenue from Federal sources in the Food Service Fund includes $847,618 of
donated commodities from the United States Department of Agriculture.
Capital Budget - School Construction Fund (Capital Projects Fund)
Annual budgetary comparisons to actual expenditures are not presented in the financial
statements for the capital projects fund.
School construction is budgeted on a project basis with funds primarily provided by Harford
County and the State of Maryland. State funds are approved by the State’s interagency
committee.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation, is employed as an extension of formal budgetary integration in the General Fund,
Special Revenue Fund, and Capital Projects Fund. Encumbrances outstanding at year-end are
reported as assignments of fund balances since they do not constitute expenditures or liabilities.
Cash and Investments
Cash on Hand
At year end, cash on hand for petty cash and change funds was $131.
Deposits
As of June 30, 2012, the book and bank balances of cash were $13,778,874 and $17,979,873,
respectively. The bank balance of $17,979,873 was 100% covered by Federal Depository
Insurance and or collateralized with federal government backed securities held in the pledging
bank’s trust department in the Board’s name.
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