Comprehensive Annual Financial Report 2012 - Kettering City ...

KETTERING CITY SCHOOL DISTRICT
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Basis of Presentation - Fund Accounting (Continued)
Governmental Funds - These are funds through which most governmental functions typically are
financed. The acquisition, use and balances of the District’s expendable financial resources and
the related current liabilities (except those accounted for in the proprietary funds) are accounted
for through governmental funds. The measurement focus is upon determination of “financial
flow” (sources, uses and balances of financial resources). The following are the District’s major
governmental funds:
General Fund - This fund is the general operating fund of the District and is used to account for
all financial resources except those accounted for in another fund. The general fund balance is
available to the District for any purpose provided it is expended or transferred according to the
general laws of Ohio.
Bond Retirement Fund - This fund is used for the accumulation of resources for, and the payment
of, general long-term debt principal and interest.
The other governmental funds of the District account for grants and other resources whose use is
restricted to a particular purpose.
Proprietary Funds - The proprietary funds are accounted for on a “economic resources”
measurement focus. This measurement focus provides that all assets and all liabilities associated
with the operation of the proprietary funds are included on the balance sheet. The proprietary
funds operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net
total assets.
Internal Service Funds - The internal service funds are used to account for the financing of goods
or services provided by one department or agency to other departments or agencies of the District
or to other governments on a cost-reimbursement basis. The Dental Insurance and Health
Insurance Funds account for the premiums and claims payments applicable to the employee
dental and health plans.
Fiduciary Funds – Fiduciary fund reporting focuses on net assets and changes in net assets. The
fiduciary category is split into four classifications: pension trust funds, investment trust funds,
private-purpose trust funds and agency funds. Trust funds are used to account for assets held by
the District under a trust agreement for individuals, private organizations or other governments
and therefore not available to support the District’s own programs. The District’s agency funds
account for various student-managed activity programs, deposits to be utilized for background
checks and for the employee’s cafeteria benefits plan. The agency funds are custodial in nature
(assets equal liabilities) and do not involve the measurement of results of operations.
DRAFT - 27 - 12/18/2012