Comprehensive Annual Financial Report - Harford County Public ...

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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. 43
HARFORD COUNTY PUBLIC SCHOOLS NOTES TO FINANCIAL STATEMENTS June 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and Investments (continued) Investments Statutes authorize the Board to invest in obligations of the United States Government, federal government agency obligations, secured time deposits in Maryland banks, bankers’ acceptances, the Maryland Local Government Investment Pool (MLGIP), money market mutual funds, commercial paper and repurchase agreements secured by direct government or agency obligations. The Board is a participant in the Maryland Local Government Investment Pool, which is under the administration of the State Treasurer. The MLGIP was established in 1982 under Article 95 Section 22G of the Annotated Code of Maryland and is rated AAAm by Standard and Poors, their highest rating for money market funds. Unit value is computed using the amortized cost method. In addition, the net asset value of the pool, marked-to-market, is calculated and maintained on a weekly basis to ensure a $1.00 per unit constant value. The investment objectives of the Pool are: to preserve the capital value of the dollars invested; to provide a competitive rate of return; and to provide a readily available source of daily liquidity. At June 30, 2012 the Board’s investment balances were as follows: Fair Value Maryland Local Government Investment Pool $ 20,126,776 Total Investments $ 20,126,776 Interest Rate Risk Fair value fluctuates with interest rates, and increasing interest rates could cause fair value to decline below original cost. To limit the Board’s exposure to interest rate risk arising from increasing interest rates, the Board’s investment policy limits the term of investment maturities, except in the fiduciary funds, for which longer term maturities are allowed to match the cash flow of liabilities. The Board’s management believes the liquidity in the portfolio is adequate to meet cash flow requirements and to preclude the Board from having to sell investments below original cost for that purpose. The investments at June 30, 2012, complied with the Board’s investment policy as of that date. Investment income includes the following for the year ended June 30, 2012: Net interest and dividends $ 32,894 Less: Restricted net investment income - Total Net Investment Income Per Statement of Activities $ 32,894 44
Page 1 and 2: Comprehensive Annual Financial Repo
Page 3 and 4: Comprehensive Annual Financial Repo
Page 5 and 6: Harford County Public Schools Table
Page 7 and 8: Introductory Section Katerina Lomis
Page 9: Board of Education of Harford Count
Page 12 and 13: actual enrollment of 38,222 student
Page 14 and 15: Relevant financial policies Primary
Page 17 and 18: Financial Section Christian Moriart
Page 19 and 20: Our audit was conducted for the pur
Page 21 and 22: Harford County Public Schools Manag
Page 33 and 34: Harford County Public Schools Exhib
Page 39 and 40: Exhibit 7 Harford County Public Sch
Page 41 and 42: Exhibit 9 Harford County Public Sch
Page 43 and 44: HARFORD COUNTY PUBLIC SCHOOLS NOTES
Page 45: HARFORD COUNTY PUBLIC SCHOOLS NOTES
Page 63 and 64: Required Supplemental Information K
Page 65 and 66: Other Supplemental Information Kale
Page 67 and 68: Schedule B Harford County Public Sc
Page 69 and 70: Harford County Public Schools Sched
Page 71 and 72: Schedule E Harford County Public Sc
Page 73 and 74: Statistical Section This part of HC
Page 75 and 76: Table 2 Harford County Public Schoo
Page 83 and 84: Table 10 Harford County Public Scho
Page 89 and 90: Independent Public Accountants’ R

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