Comprehensive Annual Financial Report - Harford County Public ...

Harford County Public Schools
Management's Discussion and Analysis (MD&A)
June 30, 2011
As Management of the Harford County Public Schools (HCPS), we offer readers of the HCPS
financial statements this narrative overview and analysis of the financial activities of HCPS for
the fiscal year ended June 30, 2011. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found on pages 3 – 9 of this report. All amounts, unless otherwise
indicated, are expressed in thousands of dollars.
Management's Discussion and Analysis (MD&A) is an element of the reporting model adopted
by the Governmental Accounting Standards Board (GASB) in their Statement No. 34 Basic
Financial Statements - and Management's Discussion and Analysis - for State and Local
Governments issued June 1999. Certain comparative information between the current and prior
fiscal years is required to be presented in the MD&A.
The goal of MD&A is for the HCPS’ financial managers to present an objective and easily
readable analysis of its financial activities based on currently known facts, decisions, or
conditions.
Financial Highlights
The assets for Harford County Public Schools exceeded its liabilities at the close of the
most recent fiscal year by $460.0 million. Net assets at June 30 2010 were $458.6 million
and increased slightly to $460.0 million for the year ended June 30, 2011.
The final unrestricted General Fund budget changed by a reduction of $6.1 million or
1.45% during the year from the originally adopted budget.
The General Fund unrestricted, unassigned fund balance on a budgetary basis decreased
from $8,819,623 to $6,096,029, a reduction of approximately $2.7 million which was the
product of spending containment strategies enacted during the year in response to funding
reductions by the state and County governments. Accumulating fund balance was also a
strategic decision to prepare for additional funding reductions or cost shifting by the state
government, notably the threat to move some portion of teacher pension costs to the local
school systems.
The unrestricted General Fund actual revenues were less than the amended budget by
$93,648 or two hundredths of a percent (0.02%), and expenditures were $7,616,270, or
one and eighty-three hundredths of a percent (1.83%), under the amended budget.
The HCPS total debt increased by $27.0 million during the current fiscal year. The key
factor in this change was the increase of $27.7 million in the OPEB Obligation.
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