Popular Annual Financial Report - Howard County Public Schools
Popular Annual Financial Report - Howard County Public Schools
Popular Annual Financial Report - Howard County Public Schools
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A Component Unit of <strong>Howard</strong> <strong>County</strong>, Maryland<strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>Fiscal Year Ended June 30, 2008Prepared By:The Department of Finance10910 State Route 108Ellicott City, Maryland 21042-6198(410) 313-1530Raymond H. BrownChief <strong>Financial</strong> OfficerBeverly Davis, CPADirector of FinanceIris Ritter, CPAAccounting ManagerAccountantsTerry W. BrukiewaSusan Daly, CPAJanet HeiserJane MetzlerGina PetrickBarbara PindellTechnical SpecialistCristian Bellagamba
Table of ContentsLetter to Community.......................................................................................................................................2Board of Education........................................................................................................................................3Organizational Chart......................................................................................................................................4About <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System................................................................................................5HCPSS Achievements...................................................................................................................................6Additional Facts.............................................................................................................................................7Enrollment......................................................................................................................................................8Food and Nutrition Services...........................................................................................................................9<strong>Financial</strong> Information....................................................................................................................................10Net Assets.................................................................................................................................................10Governmental Funds................................................................................................................................. 11Revenues..................................................................................................................................................12Expenditures.............................................................................................................................................13School Construction ....................................................................................................................................15Glossary.......................................................................................................................................................16Contacting <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> <strong>Schools</strong> (HCPSS)Questions Concerning any of the information provided in this report or requests for a copy of the Comprehensive <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> (CAFR)should be addressed to the Department of Finance, 10910 Route 108, Ellicott City, Maryland 21042-6198 or by calling 410-313-1530This report and the CAFR can also be found on the HCPSS website at www.hcpss.org/aboutus/annualreports.shtml.<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
<strong>Howard</strong> <strong>County</strong> Board of Education10910 Route 108Ellicott City, Maryland 21042-6198Telephone (410) 313-6600Fax (410) 313-6789www.hcpss.orgBoard of EducationFrank AquinoChairperson<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> <strong>Schools</strong> OfficialsSuperintendent of <strong>Schools</strong>Ellen Flynn GilesVice ChairpersonDr. Sydney L. CousinLarry CohenMemberSandra EricksonDeputy SuperintendentMamie J. PerkinsChief of StaffTheresa AlbanChief Operating OfficerSandra FrenchMemberRaymond BrownChief <strong>Financial</strong> OfficerLinda WiseChief Academic OfficerPatricia S. GordonMemberDiane MikulisMemberJanet Siddiqui, M.D.Member<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
Mamie PerkinsChief of StaffFunctions:Policy ManagementCharter <strong>Schools</strong>Human ResourcesBusiness, Community,Government RelationsCommunications<strong>Public</strong> InformationStaff RelationsBusiness Partnerships &FoundationsEquity Assurance<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School SystemOrganizational Chart(as of July 2008)Board of EducationSydney CousinSuperintendentMark BlomLegal CounselSandra EricksonDeputy SuperintendentTerry AlbanChief Operating OfficerLinda WiseChief Academic OfficerRay BrownChief <strong>Financial</strong> OfficerFunctions:School PlanningConstructionFacilitiesRisk ManagementCommunity ServicesStrategic PlanningStudent AssessmentSystem Performance<strong>Report</strong>ingResearchProgram EvaluationTechnologyTestingTransportationFunctions:School AdministrationElementary, Middle, High<strong>Schools</strong>AthleticsSchool SecurityAlternative EducationStudent ServicesProfessional DevelopmentCurricular ProgramsSpecial EducationStudent, Family, &Community ServicesOut of District PlacementsFunctions:BudgetLegislative ServiceFood ServiceFinance & AccountingServicesPayrollBusiness SystemsIntegrated <strong>Financial</strong> &Administrative SystemsPurchasingInternal AuditingPerformance Auditing<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
About <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School SystemHCPSS Profile<strong>Howard</strong> <strong>County</strong>, Maryland is a suburban community of over274,000 situated midway along the Baltimore-Washington corridor.It is a county of contrasts - a blend of old and new, urban andrural, historical and progressive. The county’s borders encompassEllicott City, one of the country’s oldest towns, and Columbia, aplanned community conceived and designed 40 years ago by TheRouse Company.A great community deserves great schools, and the <strong>Howard</strong><strong>County</strong> <strong>Public</strong> School System is a recognized source of localpride. The school system consistently ranks among Maryland’s topschool districts based on student performance on the MarylandSchool Assessments. <strong>Howard</strong> <strong>County</strong> students score abovethe national averages on standardized tests and over 90% ofgraduates continue their education beyond high school.72 <strong>Schools</strong>39 elementary schools1 preK - grade 8 school18 middle schools12 high schools2 special schoolsFast FactsTotal Enrollment (K-12): 49,543PreK - 948Elementary (K-5) - 20,544Middle (6-8) - 11,764High (9-12) - 16,191Special School - 96Student Mobility 2007-087.4% Entrants5.1% WithdrawalsEthnicityWhite 54.5%African American 21.3%Asian 15.6%Hispanic 5.5%Native American 0.3%Unidentified 2.8%Students Receiving Special Services 2007-08Title I (Elementary only) 2.4%Ltd. English Proficient 3.7%Free/Reduced Lunch 11.8%Special Education 9.0%Our Staff••••4,563 teachers, 61% of whom hold a master’sdegree or aboveAverage teacher has taught 12.4 yearsAverage age is 41Total staff: 7,796Attendance RateElementary: 96.3%Middle: 96.0%High: 95.0%Graduation Rate: 94.9%Dropout rate: 1.4%**State Satisfactory standard is 3% or lessWhat Others Are Saying...The <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System is proud to have been recognized as 2008 Large Business of the Year by the<strong>Howard</strong> <strong>County</strong> Chamber of Commerce.<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
HCPSS Achievements<strong>Howard</strong> <strong>County</strong> residents value a high quality education and provide<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> <strong>Schools</strong> with the financial resources to providean excellent education to every <strong>Howard</strong> <strong>County</strong> student. Our test resultsare one measure of our success in utilizing these resources effectively.Maryland School AssessmentThe Maryland School Assessment (MSA) is an annual assessmentprogram that tests grades 3 through 8 in reading and mathematics. Twotests are also required at the high school level to measure reading andmathematics. The MSA results are used in the calculation of whether aschool met the Adequate Yearly Progress (AYP) target.100MSA - Math ScoresPercentage of Students80604020SAT Score ComparisonsPercentage of Students0100806040200Advanced Proficient Basic2005-2006 2006-2007 2007-2008MSA - Reading ScoresAdvanced Proficient Basic2005-2006 2006-2007 2007-2008SAT ScoresDistrictCombinedMeanScore<strong>Howard</strong> 1643Montgomery 1616Carroll 1544Frederick 1539Harford 1516Anne Arundel 1514National 1511State 1498Baltimore <strong>County</strong> 1482Prince George’s 1283Baltimore City 1145SchoolYearN*PercentParticipatingCriticalReadingMathematicsWriting2005-2006 2,739 72.3 537 557 5362006-2007 2,815 74.2 537 556 5372007-2008 2,834 70.4 541 557 545* Number of tests taken.<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
Additional FactsCost Per PupilThe cost per pupil reflects the averagecost of providing educational andrelated services to the students ineach local school system. Cost perpupil amounts provide an overall viewof the cost of instructional programs.It includes both the direct as wellas the indirect costs of programs.The cost per pupil is often used forcomparison purposes. The table tothe left compares the cost per pupilfor the local school systems in theState of Maryland. These figuresare taken from the Maryland StateDepartment of Education (MDSE)Fact Book.Class Size TargetsGrade LevelThe cost per pupil amountsinclude the following expenditurecategories: administration, midleveladministration, instructionalsalaries and wages, textbooks andother instructional materials, otherinstructional costs, special education,student personnel services, healthservices, student transportation,operation of plant, maintenance ofplant, fixed charges, and state-paidteachers’ retirement. Expendituresfor equipment, tuition payments, andinterfund transfers are excluded.Teacher/student ratioKindergarten 1:22Grades 1-2 1:19Grades 3-5 1:25Middle 1:20.5High 1:23.5Gifted and Talented ProgramStudents who have participated in a variety of Giftedand Talented Education Program offerings.Grade Level% ParticipatingK to Grade 5 43%Grades 6 to 8 43%Grades 9 to 12 41%ESOL ProgramSchool SystemCost PerPupilMontgomery $ 13,536Worcester $ 12,966Baltimore City $ 12,542Kent $ 12,274Somerset $ 12,117<strong>Howard</strong> $ 11,940Total State $ 11,398Allegany $ 11,212Prince George’s $ 11,189Baltimore $ 11,038Dorchester $ 11,032Anne Arundel $ 10,847Garrett $ 10,679Wicomico $ 10,611Talbot $ 10,364Harford $ 10,247Charles $ 10,237Carroll $ 10,108Frederick $ 10,033Calvert $ 10,021Cecil $ 9,867Caroline $ 9,864St. Mary’s $ 9,771Queen Anne’s $ 9,662Washington $ 9,632Over 2,000 students participate in the English forSpeakers of Other Languages (ESOL) program,representing 77 different languages (primarily Spanishand Korean) and 88 countries.Documented Decisions/Class of 2008Attend a 4-year college 64%Attend a 2-year college 26%Attend trade or technical school 1%Enter employment 3%Military 1%Other or unreported plans 4%<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
Enrollment5 1 ,0 0 05 0 ,0 0 04 9 ,0 0 04 8 ,0 0 04 7 ,0 0 0T o ta l E n ro llm e n t4 6 ,0 0 04 5 ,0 0 04 4 ,0 0 04 3 ,0 0 04 2 ,0 0 04 1 ,0 0 01 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8Y e a rThe enrollment for FY 2008was 49,543 students in 73schools and centers. Thisrepresents an increase of495 students over the fiscalyear 2007 actual, and 7,634students in the last decade.The English for Speakers ofOther Languages (ESOL)program is one of the fastestgrowing programs for studentswith special needs in theschool system. Over the pastfive years ESOL has increasedfaster than special educationservices and significantly fasterthan the general educationmembership.<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
Food and Nutrition ServicesThe Food and Nutrition Services Programprovides appealing, nutritious, high quality,safe food at minimum cost in accordance withfederal law, state regulation, and local policy. Itis operated under the federally funded NationalSchool Lunch and Child Nutrition Acts. Specialemphasis is placed on creating a positive image offood at school through an established marketingprogram and involvement of students in foodselection, menu planning, and nutrition education.A variety of salads and lunch options are availablein all elementary, middle, and high schools. Thechart to the right presents the number of lunchesserved in HCPSS’ schools each day by the Foodand Nutrition Services Program.Student Lunches Served DailyLast Four Fiscal Years2005 2006 2007 2008Free lunches served 2,784 3,040 3,175 3,473Reduced lunches served 1,063 1,000 1,147 1,174Regular lunches served 15,204 15,225 14,580 13,540Total lunches served 19,051 19,265 18,902 18,187The <strong>County</strong> is one of the most affluent counties in the nation,yet the population of students eligible for free or reducedpricelunch has remained relatively stable. To qualify for freelunch, the income must not exceed $27,560 for a familyof four, and the maximum family income for reduced-pricelunches is $39,220.The <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School Food and NutritionService Department has earned four USDA Best PracticesAwards.They provide breakfast and lunch to students each daythat school is in session, including early dismissal days, aswell as a la carte items consistent with federal and stateregulations.Percentage of Free and Reduced-Price Lunches to Total Lunches Served Daily100%80%60%R egular lunches servedFree and R educed -Price Lunches40%20%0%2005 2006 2007 2008<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
<strong>Financial</strong> Information<strong>Financial</strong> information in this report is derived from the Comprehensive <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> (CAFR). The CAFR isprepared in conformity with GAAP, as applicable to governmental units and includes detailed information of significantfinancial and non-financial events. This report is prepared consistent with GAAP, but does not include the level of detailpresented in the CAFR. It presents summarized assets and liabilities on a government-wide basis and presents anoverview of HCPSS’ governmental funds, as well as revenues and expenditures highlighting key revenue and expenditureinformation that occurred during the fiscal year.Statement of Net AssetsAs <strong>Report</strong>ed in Government-Wide <strong>Financial</strong> StatementsThis Statement of Net Assets is aimed at citizens who are interested in a government’s finance, but do not have directaccess to the detailed accounting data. The government-wide financial statements are designed to provide readers witha broad overview of the school district’s finances in a manner similar to a private sector business. Government-Wide<strong>Financial</strong> Statements are available in HCPSS’ CAFRThe Statement of Net Assets presents information on all HCPSS’ assets and liabilities, with the difference between thetwo reported as net assets. Increases or decreases in net assets may serve as a useful indicator whether the financialposition is improving or deteriorating.Consolidated Statement of Net Assets(Thousands of Dollars)2008 2007 2006 2005 2004Current Assets $ 126,164 $ 98,246 $ 95,272 $ 86,963 $ 78,318Capital Assets, Net $ 828,790 $ 782,514 $ 714,950 $ 639,146 $ 573,924Total Assets $ 954,954 $ 880,760 $ 810,222 $ 726,109 $ 652,242Long-term Liabilities $ 15,832 $ 17,757 $ 16,194 $ 9,810 $ 5,702Other Liabilities $ 90,331 $ 66,106 $ 72,819 $ 67,437 $ 60,132Total Liabilities $ 106,163 $ 83,863 $ 89,013 $ 77,247 $ 65,834Net Assets:Invested in Capital Assets $ 815,849 $ 765,233 $ 05,330 $ 635,383 $ 573,924Restricted for Capital Projects $ 2,585 $ 5,311 $ 6,454 $ 7,412 $ 5,134Restricted for Food Service $ 2,274 $ 1,120 $ 1,484 $ 1,415 $ 1,852Unrestricted $ 28,083 $ 24,986 $ 7,941 $ 4,652 $ 5,499Total Net Assets $ 848,791 $ 796,650 $ 721,209 $ 648,862 $ 586,408<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> 10
Governmental FundsAs <strong>Report</strong>ed in the Fund <strong>Financial</strong> StatementsHCPSS uses fund accounting to ensure and demonstratecompliance with government accounting and legalrequirements.HCPSS’ governmental fund financial statements provide adetailed short-term view that determines how much fundingis available in the near future to finance HCPSS’ programs.HCPSS’ governmental funds consist of the followingactivities and programs:• Operating—provides for the day-to-day operationsand maintenance of the schools and is funded primarilyby the <strong>County</strong> and State funds.• Grants and Self-Supporting Programs—consists ofFederal, State, non-profit, and private industry grantfunds that support instructional programs. In addition,it also includes the summer school program.• Capital Projects—activities involving the acquisitionconstruction or renovation of school sites, buildings,and other major capital improvements. The primaryrevenue source is funding from the <strong>County</strong>’s issuanceof general obligation bonds.• Food and Nutrition Services—include the procurement,preparation, and serving of student breakfasts, snacks,and lunches. The primary revenue sources are receiptsderived from food sales and funding from the Federalgovernment.Statement of Revenues and Expenditures2008Actual2007Actual2006Actual2005Actual2004ActualREVENUESLocal $ 495,390,757 $ 479,537,888 $ 446,120,714 $ 412,225,442 $ 359,753,360State 233,546,019 189,849,746 183,370,380 155,152,901 146,298,916Federal 21,677,833 17,777,417 17,093,315 22,574,037 18,159,011Earnings on investments 1,917,248 2,367,743 1,138,297 455,971 173,263Charges for services 13,413,320 14,377,109 11,450,235 10,399,486 10,612,236Miscellaneous revenues 611,842 654,092 2,518,058 1,292,902 1,264,339Total revenues $ 766,557,019 $ 704,563,995 $ 661,690,999 $ 602,100,739 $ 536,261,125EXPENDITURESAdministration $ 10,443,150 $ 9,239,779 $ 8,465,579 $ 7,871,988 $ 6,900,503Mid level administration 48,737,380 45,347,057 43,490,314 35,251,073 33,276,800Instruction 277,497,957 250,110,401 248,244,194 218,808,217 207,222,026Special education 88,837,048 82,168,134 79,623,349 71,118,059 65,163,831Pupil personnel services 2,668,751 2,396,003 2,464,745 2,019,538 1,805,760Health services 5,094,983 4,532,204 4,354,620 3,556,692 3,208,167Pupil transportation 31,537,502 28,860,804 27,137,829 23,651,362 22,905,236Operation of plant 38,503,601 35,522,498 31,478,024 28,070,566 26,257,189Maintenance of plant 19,555,736 15,410,378 16,246,891 12,885,002 12,375,933Fixed charges 153,117,232 120,870,686 83,280,099 98,665,790 91,204,394Community services 6,010,478 4,914,429 4,780,476 5,176,463 3,847,949Food Service 11,398,874 11,374,869 11,041,317 10,397,964 9,619,546Capital outlay 76,929,988 91,374,597 104,787,715 85,967,059 50,671,370Total expenditures $ 765,716,796 $ 702,121,839 $ 665,395,152 $ 603,439,773 $ 534,458,70411<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
RevenuesAs <strong>Report</strong>ed in the Fund <strong>Financial</strong> StatementsHow is <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System FundedThe School System is a component unit of <strong>Howard</strong><strong>County</strong>, Maryland, and is fiscally dependent onthe <strong>Howard</strong> <strong>County</strong> Government and the Stateof Maryland to appropriate funding for the SchoolSystem.$800$750$700Revenues By SourcesEssentially all of the School System’s fundingfor governmental activities is derived from thesesources. The School System has no authority tolevy taxes or issue bonded debt. Accordingly, thefinancial condition of the School System is directlyrelated to the financial condition of the fundingauthorities - the county and state.Total revenues for the fiscal year ended June 30,2008 totaled $766.6 million.The School Systemreceives 58.9% of its funding from the <strong>County</strong>,and 21.4% from the State. Additionally, the SchoolSystem receives federal entitlement grants andcompetitive grants from the state and federalgovernments.In millions$650$600$550$500$450$400$350$300$250MiscellaneousRevenuesC harges forservicesE arnings onInvestmentsFederal sourcesHCPSS generates revenues from activities andservices provided by HCPSS. The largest ofthese revenues is charges for services. Chargesfor services include fees charges for food sales,primarily student breakfasts, lunches, and snacks;facility use fees, summer school tuition and othermiscellaneous fees.$200$150$100$50$02008 2007 2006 2005 2004S tate sourcesLocal sources2008 Revenue - Governmental FundsS tates ourc es30.47%Federals ourc es2.83%E arnings oninves tm ents0.25%O ther2.08%Charges fors ervic es1.75%M is c ellaneousrevenues0.08%Loc als ourc es64.63%<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> 12
ExpendituresAs <strong>Report</strong>ed in the Fund <strong>Financial</strong> StatementsHow is <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System Allocating its FundsThese graphs display fiscal year 2008 expenditures acrossspecific program areas. Detailed Fund <strong>Financial</strong> Statementsare available in HCPSS’ Comprehensive <strong>Annual</strong> <strong>Financial</strong><strong>Report</strong> (CAFR).Administration includes the Board of Education,Superintendent’s Office, and central support servicesto operate the School System. Services provided by thiscategory include: financial, assessment, legal, planning,personnel, payroll, and other support services.Instruction includes wages for most classroom personneland the materials and other direct costs required to supportinstructional programs. Instruction consists of three relatedsubcategories: Instructional Salaries, Supplies, and OtherInstructional Costs.Special Education provides services for students — frombirth through age 21 — who have disabilities. SpecialEducation serves students with intellectual or physicallimitations, emotional problems, learning disabilities,language delays, autism, traumatic brain injuries, anddevelopmental delays.Mid-Level Administration contains instructional supportservices. The category includes central office instructionalpersonnel, professional development, school-based officestaff, school administration, media processing, cable TV/video production, and temporary employee services.Pupil Personnel Services includes programs to improvestudent attendance and to solve pupil problems involvingthe home, school, and community. Pupil Personnel tracksattendance, identifies problems and works to providesolutions.Health Services includes programs to prevent healthproblems in county schools. Health Services staffs schoolhealth rooms, maintains student health records, identifieshealth problems, enforces immunization laws, and providesother services.Transportation provides contracted bus transportation foreligible students. The Transportation Office plans schedules,monitors contractors, and operates safety programs.This category includes regular bus transportation, specialeducation transportation, instructional field trips, andathletic transportation.2008 Expenditures - Governmental FundsO peration of plant5.55%Pupil transportation4.55%Fixed charges22.08%Adm inistration1.51%Special education12.81%Pupil personnel services0.38%H ealth services0.73%O ther7.96%M aintenance of plant andequipm ent2.82%C om m unity services0.87%Instruction40.02%M id level adm inistration7.03%Food Service1.64%13<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
ExpendituresAs <strong>Report</strong>ed in the Fund <strong>Financial</strong> StatementsOperation of Plant provides custodial, utilities, trashcollection and other costs to operate school facilities.Operation of Plant includes the school system’s warehouse,courier mail services, and risk management functions.Maintenance of Plant includes programs to maintainand repair school facilities. This category providesbuilding maintenance, computer/electronics repairs, andenvironmental maintenance (water systems, indoor airquality, etc.) Grounds keeping services are included hereand in the Community Services category.Fixed Charges includes funds for employee benefits andprovides insurance coverage for the school system. Thiscategory contains social security, retirement, and theGeneral Fund’s share of employee insurance costs.Community Services allows community groups to useschool buildings and grounds. User fees offset some ofthese costs. Community Services provides custodial andmaintenance services for community school use, nonpublictransportation, teen parenting transportation, and otherservices.Capital Outlay includes the operating budget costsassociated with planning, constructing, and renovatingschool facilities, as well as the costs of school construction,renovation, and site acquisition.Food Service includes all costs of providing schoolsbreakfast and lunches.Expenditures by Category$800In millions$700$600$500$400$300$200$100Capital outlayFood S ervic eCom m unity s ervic esFix ed c hargesM aintenanc e of plant and equipm entO peration of plantP upil trans portationHealth s ervic esP upil pers onnel s ervic esS pec ial educ ationIns truc tionM id level adm inis trationA dm inis tration$02008 2007 2006 2005 2004Fiscal Year<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> 14
School ConstructionThe <strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System prepares an annual Capital Budget, a five-year Capital ImprovementProgram (CIP), a ten-year Long-Range Master Plan, and a six-year Systemic Renovation Plan designed to addressprojected student capacity needs by providing capital projects where and when they are needed as well as programmaticrenovations in facilities with greatest need.During FY 2008, HCPSS expended $76 million on capital projects. These funds were used for the following plannedprojects:• Expended $5.1 million for additional technology in ourclassrooms.• Completed construction of the parking lots to LongFellow Elementary, Running Brook Elementary andAtholton High.• Completed the construction of Veterans Elementaryand Bushy Park Elementary.• Completed Phase II systemic renovation to ClarksvilleMiddle and Worthington Elementary.• Completed the relocation of the InformationTechnology Offices.• Continued construction on Phase V of Full DayKindergarten and planning for the final Phase VI.• Completed construction of the administrativeexpansion and renovations to Clarksville Elementary.• Completed construction of additions and renovationsto Centennial Lane Elementary.• Continued construction planning for the additionsand renovations of Mt. Hebron High, CentennialLane Elementary, Running Brook Elementary, andOld Cedar Lane.• Started construction planning for Elkridge Elementaryand Glenelg High.• Started construction planning for a green building atNorthfield Elementary.HCPSS FY 2009 capital budget proposes spending $16.5 million for systemic renovations, $27.0 million for the Mt. HebronHigh School Renovations, $6.8 million for Full Day Kindergarten, and $6.3 million for the Elkridge Elementary. Other majorprojects include technology projects and roofing projects.HCPSS submitted proposed capital spending totaling $540.0 million over the FY 2010-2014 period which has beensubmitted to the <strong>Howard</strong> <strong>County</strong> Council for its approval. This will fully fund all of the capital projects requested by HCPSS.Cost estimates will need to be monitored closely to ensure the request is sufficient with regards to changes in the economyand materials pricing.15<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong>
GlossaryGovernmental accounting uses unique financial terms.Some of the terms used in this PAFR are described below:Capital Improvement Program (CIP)—used as a basis fordetermining the timing and size of proposed bond referendato be placed before the voters of the <strong>County</strong>.Capital Outlay—a functional expenditure, which includespurchases of assets that cost more than $5,000 that resultin the acquisition of or addition to HCPSS’ capital assets(e.g., equipment, library collections, buildings).Comprehensive <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> (CAFR)—athorough, detailed presentation of FCPS’ financial positionand activities for the fiscal year. The CAFR is divided intothree sections, namely: 1) introductory section, 2) financialsection, and 3) and statistical section. The financial sectionof the CAFR consists of the independent auditors’ report;management’s discussion and analysis; basic financialstatements; required supplementary information; and othersupplementary information.English for Speakers of Other Languages (ESOL)—aprogram that helps limited English proficient studentslearn literacy and content concepts in order to functionsuccessfully in the general education program.Free and Reduced-Price Meals—a program required forparticipation in the federally funded school lunch programunder the National School Lunch and Child Nutrition Acts.This program provides free or reduced-price meals tochildren determined to be eligible under the program, andsupports the belief of the School Board that every schoolagechild should have an adequate lunch.Generally Accepted Accounting Principles (GAAP)—thestandard framework of guidelines for financial accountingmainly used in the United States of America. It includesthe standards, conventions, and rules accountants followin recording and summarizing transactions and in thepreparation of financial statements.Gifted and Talented Program—provides opportunities forall students to develop academic strengths through morerigorous and challenging instruction. Learning experiencesare differentiated in order to strengthen critical and creativethinking, problem-solving, and decision-making skills.Governmental Funds—records accounting transactionsfor activities which must be separately reported basedon legal or regulatory requirements. The primary fundingsource for these activities is government entities i.e., the<strong>County</strong>, State, and Federal government.Government Finance Officers Association (GFOA)—thepurpose of the association is to enhance and promote theprofessional management of governments for the publicbenefit by identifying and developing financial policies andpractices, and promoting them through education, training,and leadership.<strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> (PAFR)—this reportprovides an overview of the schools system’s financialoperation, and highlights key accomplishments of interestto parents and community members.SAT—a widely used college admission test. The SATmeasures verbal and mathematical reasoning abilities thatstudents develop over time, both in and out of school, whichare related to successful performance in college.<strong>Howard</strong> <strong>County</strong> <strong>Public</strong> School System - 2008 <strong>Popular</strong> <strong>Annual</strong> <strong>Financial</strong> <strong>Report</strong> 16
10910 Route 108Ellicott City, Maryland 21042410-313-6600