Fillmore Central Public Schools'
MANAGEMENT'S DISCUSSION AND ANALYSIS
October 31, 2007
This section of the Fillmore Central Public Schools' annual audit report presents our discussion and analysis of the school District's financial performance during the fiscal year that ended on August 31, 2007.
This annual report is presented in a format consistent with the presentation requirements of GASB Statement NO. 34--Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. This statement implements a new model of financial reporting for state and local governments designed to enhance the usefulness of the District's annual report.
A. Report Components
- Government-Wide Financial Statements: The Statement
of Net Assets - Cash Basis and The Statement of Activities - Cash
Basis provides information about the activities of the District as
a "whole".
- Fund Financial Statements: Fund financial statements focus on the individual parts of the District. Fund financial statements also report the District's operations in more detail than the government-wide statements by providing information about the most significant funds. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending.
The District has elected to present the government-wide and fund financial statements using the cash basis of accounting. This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Basis of accounting is a reference to when financial events are recorded, such as the timing for recognizing revenues and expenses. Under the District's cash basis of accounting, revenues are recognized when the District receives cash and expenditures are recognized when the District disburses cash. Only cash and investment balances are reported as assets; liabilities are not recorded. Therefore, when reviewing the financial information and discussion within this annual report, the reader should keep in mind the limitations resulting from the use of the cash basis of accounting.
The Fund Financial Statements: The District's fund financial statements provide detailed information about the District's most significant funds - not the District as a whole. Major individual funds are reported as separate columns in the fund financial statements. Major funds include the General Fund and other funds whose total assets, liabilities, receipts or disbursements are at least 10% of the total for all funds of that type and at least 5% of the corresponding element for all governmental and proprietary funds combined.
B. Summary of Significant Accounting Policies
Government Fund Types
General Fund - The General Fund is the general operating fund of the District and accounts for all receipts and disbursements of the District not encompassed within other funds. All property tax receipts and another receipts that are not allocated by law, budgetary requirement, or contractual agreement to some other fund are accounted for in this fund. General operating expenditures and the new and replacement capital outlay costs that are not paid through other funds are paid from the General Fund.
Depreciation Fund - The Depreciation Fund is money reserved for future capital outlay and is considered a component of the general fund.
Employee Benefit Fund - The Employee Benefit Fund is money reserved for the benefits of district employees and is considered a component of the general fund.
Qualified Capital Purpose Undertaking Fund - The Qualified Capital Purpose Undertaking Fund is established for the removal of environmental hazards, the reduction or elimination of accessibility barriers in school district buildings, the repayments of a qualified zone academy bond issued for a qualified capital purpose, modifications for life safety code violations, indoor air quality projects, and mold abatement and prevention projects.
Special Building Fund - The Special Building Fund is established for acquiring or improving sites and buildings, including the construction, alteration or improvements of buildings.
Proprietary Fund Type
School Lunch Fund - The School Lunch Fund is used to accommodate all aspects of the school lunch program and accounts for all receipts and disbursements of all child nutrition programs. Receipts in this fund include the federal and state program cost reimbursements received by the District and general fund support of the lunch program. All food purchases and other supplies are accounted for as expenses of the school lunch fund.
Fiduciary Fund Types
Activities Fund - The Activities Fund is used to account for the assets that are held in a trustee or fiduciary capacity such as the school's Activities and Student Fee funds. We exclude these activities from the District's other financial statements because the District cannot use these assets to finance its operations
Student Fee Fund - The Student Fee Fund accounts for fees collected pursuant to the Public Elementary and Secondary Student Fee Authorization Act. Disbursements must be used for the purposes for which the fees are collected.
Long Term Debt
Fillmore Central Schools has a current principal plus interest debt of $760,322 for Hazardous Material Bonds Issued in July of 2007. A principal plus interest payment that averages $89,000 is paid yearly out of our Qualified Capital Purpose Undertaking Fund, and our debt will be paid off in December of 2015.
Fillmore Central Schools has a current debt of $93,767 interest free with Geneva State Bank. This was an Energy Efficiency Loan and an US Environmental Protection Agency Loan that is being repaid through our Special Building Fund. We pay $18,753,56 each year, and this debt will be repaid in November of 2010.
General Fund Budgetary Highlights
During the 2006-2007 school year, Fillmore Central Schools had total general fund disbursements of $5,932,426 and had total general fund receipts of $6,180,637. We received a $30,198 Title II competitive grant and a $27,582 REAP grant that helped in the purchase of technology equipment and software for the district.
Economic Factors and Next Year's Budget
The Board of Education and the Administration closely monitor the budget. With an increase in State Aid, and a 3.3% valuation increase, we will efficiently operate at the $1.05 levy limit for the 2007-2008 budget year. This past year, our revenue did exceed our expenses, however that is not always the case. Health Insurance costs, increasing Special Education costs, and salaries of our staff increase at a rate that makes budgeting beyond the 2007-2008 school year impossible. Changes created by the legislature may also impact future budgets.
| 2006-2007 | 2007-2008 | Levy | |
| Fund | Levy | Levy | Change |
| General Fund | 1.0762 | 1.0652 | (-.0110) |
| Building Fund | .0114 | .0151 | .0037 |
| Quality Cap. Fund | .0164 | .0248 | .0084 |
| District Total | 1.1040 | 1.1052 | .0012 |
2006-07
Year-End
General Fund
Budget
Actual
Receipts
Local Receipts
4,150,000
4,259,846
County Receipts
75,000
79,207
State Receipts
1,280,000
1,351,993
Federal Receipts
415,000
422,681
Non Revenue Receipts
10,000
66,910
Total Receipts
5,930,000
6,180,637
Expenditures
Regular Instruction
2,500,000
2,434,874
Special Education
1,210,000
1,088,960
Support Services
2,050,000
1,972,368
State Programs
15,000
13,511
Federal Programs
300,000
397,896
Transfers
20,000
25,000
Total Disbursements 6,095,000
5,932,427
Depreciation Fund
Receipts
14,300
Disbursements
37,696
Ending Balance
224,370
Employee Benefit Fund
Receipts
76,065
Disbursements
71,255
Ending Balance
81,542
Activities Fund
Receipts
304,756
Disbursements
291,981
Ending Balance
89,513
School Lunch Fund
Receipts
233,709
Disbursements
256,720
Ending Balance
1,770
Qualified Capital Purpose Fund
Receipts
435,049
Disbursements
270,717
Ending Balance
192,952
Special Building Fund
Receipts
46,489
Disbursements
70,377
Ending Balance
151,974
Student Fee Fund
Receipts
8,100
Disbursements
6,545
Ending Balance
6,172
Contacting the
District's Financial Management
This financial report is designed to provide our patrons with a
cursory overview of the District's finances and overall financial
health. If you have any questions about the report or with
additional information contact the Office of the Superintendent,
Fillmore Central Schools, 1410 L Street, Geneva, NE 68361.
Our telephone number is (402)759-4955.
