PARK HILL SCHOOL DISTRICT FINANCIAL STATEMENTS with ...

PARK HILL SCHOOL DISTRICT 

FINANCIAL STATEMENTS 

with 

INDEPENDENT AUDITOR’S REPORT 

and SUPPLEMENTARY INFORMATION 

For Fiscal Year Ended June 30, 2011

TABLE OF CONTENTS 

Page 

List of Principal Officers 1 

Independent Auditor’s Report 2-3 

REQUIRED SUPPLEMENTARY INFORMATION 

Management’s Discussion and Analysis 4-11 

BASIC FINANCIAL STATEMENTS 

Government-Wide Financial Statements: 

Statement of Net Assets - Modified Cash Basis 12 

Statement of Activities - Modified Cash Basis 13 

Fund Financial Statements: 

Balance Sheet - Modified Cash Basis - Governmental Funds 14 

Combined Statement of Revenues, Expenditures and Changes in 15 

Fund Balances - Modified Cash Basis 

Notes to Basic Financial Statements 16-32 

REQUIRED SUPPLEMENTARY INFORMATION 

Fund Financial Statements: 

Budgetary Comparison - Modified Cash Basis - General Fund 34 

Budgetary Comparison - Modified Cash Basis - Special Revenue Fund 35 

Notes to Required Supplementary Information 36 

ADDITIONAL SUPPLEMENTARY INFORMATION 

Budgetary Comparison - Modified Cash Basis - Debt Service Fund 38 

Budgetary Comparison - Modified Cash Basis - Capital Projects Fund 39 

Schedule of Revenues Collected by Source 40 

Schedule of Expenditures Paid by Object 41 

Schedule of Bonded Indebtedness 42 

FEDERAL COMPLIANCE SECTION 

Report on Internal Control Over Financial Reporting and on Compliance 44-45 

and Other Matters Based on an Audit of Financial Statements Performed 

in Accordance with Governmental Auditing Standards. 

Independent Auditors’ Report on Compliance with Requirements that Could Have 46-47 

a Direct and Material Effect on Each Major Program and on Internal Control Over 

Compliance in Accordance with OMB Circular No. A-133 

Schedule of Expenditures of Federal Awards 48 

Notes to Schedule of Expenditures of Federal Awards 49 

Schedule of Findings and Questioned Costs 50-51 

Schedule of Resolutions of Prior Year Audit Findings 52 

STATE COMPLIANCE SECTION 

Independent Auditor’s Report on Management’s Assertions About 54 

Compliance with Specific Requirements of Missouri Laws and Regulations 

Schedule of Selected Statistics 55-56 

Schedule of Transportation Costs Eligible for State Aid 57 

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Kansas City, Missouri 

BOARD OF DIRECTORS 

Denise Schnell, President 

Todd Fane, Member 

David Cox, Member 

Rick Turley, Member 

Janice Bolin, Vice President & Treasurer 

Boon Lee, Member 

Susan Newburger, Member 

ADMINISTRATION 

Dr. Dennis Fisher 

Superintendent 

Dr. Mark Frost 

Asst. Superintendent, Human Resources 

Dr. Mark Miles 

Deputy Superintendent 

Della Wooddell, Board Secretary 

Dr. Paul Kelly, Asst. Superintendent 

for Business Services and Technology 

Dr. Jeff Klein 

Asst. Superintendent, Academic Services 

Dr. Jeanette Cowherd 

Asst. to the Superintendent 

Mary Carrier, Accounting Coordinator 

BUILDING PRINCIPALS 

Dr. Brad Kincheloe 

Park Hill High School 

Dr. Becky Kiefer 

Lakeview Middle School 

Lezlee Ivy 

Plaza Middle School 

Diane Simpson 

Southeast Elementary 

Dr. Jay Niceswanger 

Prairie Point Elementary 

Sandra Hemaya 

Hawthorn Elementary 

Dr. Kerry Roe 

English Landing Elementary 

Stephanie Amaya 

Park Hill Day School 

Dr. Dale Longenecker 

Park Hill South High School 

Dr. Tim Todd 

Congress Middle School 

Dr. Steve Archer 

Union Chapel Elementary 

Dr. Teresa Tulipana 

Renner Elementary 

Betsy Greim 

Line Creek Elementary 

Dr. LuAnn Halverstadt 

Graden Elementary 

Shawn Fitzmorris 

Chinn Elementary 

Dr. Angela Currey 

Early Childhood Education Center 

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Board of Education 

Park Hill School District 


We have applied certain limited procedures to the required supplementary information in accordance with 

auditing standards generally accepted in the United States of America, which consisted of inquiries of 

management about the methods of preparing the information and comparing the information for consistency 

with management’s responses to our inquiries, the basic financial statements, and other knowledge we 

obtained during our audit of the basic financial statements. We do not express an opinion or provide any 

assurance on the information because the limited procedures do not provide us with sufficient evidence to 

express an opinion or provide any assurance. 

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively 

comprise the District’s basic financial statements. The other supplementary information is presented for 

purposes of additional analysis and is not a required part of the basic financial statements. The schedule of 

expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office 

of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit 

Organizations, and is also not a required part of the basic financial statements. The other supplementary 

information and the schedule of expenditures of federal awards are the responsibility of management and 

were derived from and relate directly to the underlying accounting and other records used to prepare the 

financial statements. The information has been subjected to the auditing procedures applied in the audit of 

the basic financial statements and certain additional procedures, including comparing and reconciling such 

information directly to the underlying accounting and other records used to prepare the financial statements 

or to the financial statements themselves, and other additional procedures in accordance with auditing 

standards generally accepted in the United States of America. In our opinion, the information is fairly stated 

in all material respects in relation to the basic financial statements as a whole. 


October 21, 2011 

Marr and Company, P.C. 

Certified Public Accountants 

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PARKHILL SCHOOL DISTRICT 


MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 

June 30, 2011 

The discussion and analysis of the Park Hill School District financial performance provides an overview 

of the district's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and 

analysis is to look at the district's performance as a whole. Readers should also review the basic financial 

statements which begin on page 12, and notes to the basic financial statements which begin on page 16 to 

enhance their understanding of the district's performance. 

The Management's Discussion and Analysis (MD&A) is an element of the reporting model adopted by the 

Governmental Accounting Standards Board (GASB) in their latest Statement No. 34, Basic Financial 

Statements and Management's Discussion and Analysis for State and Local Governments, issued in 1999. 

FINANCIAL HIGHLIGHTS 

Revenue 

Total district revenues amount to $142.9 million. 

· Operating and Bond revenues accounted for $128.9 million or 90.2% of the total revenue. 

· Debt service revenue accounted for $14.0 million or 9.8% of the total revenue. 

Primary district revenue sources include: 

· Local revenues, primarily tax receipts, totaled $96.3 million or 67.3% of the total revenue. 

· County revenues, primarily from state assessed utilities, totaled $3.4 million or 2.4% of the total revenue. 

· State aid, primarily basic foundation formula, entitlements and grants totaled $21.0 million or 14.7% of the 

total revenue. 

· Federal revenue, primarily IDEA, title funds and food service funds totaled $7.6 million or 5.3% of the total 

revenue. 

· Other revenue, primarily the sale of general obligation bonds within the capital projects fund, and the 

refinancing of debt within the debt service fund totaled $14.6 million or 10.2% of the total revenue. 

Expenditures 

District expenses totaled $130.5 million. Primary district expenditures include: 

· Instruction expenditures totaled $63.3 million or 48.5% of the total expenses. 

· Support services (Instructional) expenditures totaled $47.3 million or 36.3% of the total expenses. 

· Non-Instructional Support Services totaled $5.3 million or 4.1% of the total expenses. 

· Debt Service expenditures totaled $14.5 million or 11.1% of the total expenses. 

Net Assets 

Net assets at the end of the year totaled $44.5 million. This was an increase in net assets from the prior year 

by $12.5 million. This increase was primarily due to the sale of $10 million in general obligation bonds in 

June, 2011 and the receipt of $1.3 million in Federal Jobs Bill funds in May, 2011. 

Balances 

Unrestricted operating reserves totaled $21.1 million as of June 30, 2011 and represented a decrease of 

9.6% from June 30, 2010. Unrestricted operating reserves as a percentage of the operating expenditures 

equaled 19.1% as of June 30, 2011. 

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June 30, 2011 

Unrestricted capital reserves totaled $4.2 million as of June 30, 2011, an increase of 37.4% from June 30, 

2010. This increase was primarily due to efficiencies identified during the 2010-2011 school year. 

USING THIS ANNUAL REPORT 

This annual report is presented in a format consistent with the presentation requirements of the GASB 

Statement No. 34. GASB Statement 34 implements a new model of financial reporting for state and 

local governments designed to enhance the usefulness of the district's annual report as modified by the 

prescribed format established by the Department of Elementary and Secondary Education (DESE). 

Report Components 

This annual report consists of seven parts as follows: 

Government-wide Financial Statements: The statement of net assets and the statement of activities 

provide information about the activities of the school district as a whole and present a long-term view 

of the district's finances. 

Fund Financial Statements: Fund financial statements focus on the individual funds of the district. 

DESE specifies the funds that must be maintained. Fund financial statements also report the district's 

operations in more detail than the government-wide statements by providing information about the four 

primary district funds. 

Notes to the Basic Financial Statements: The notes to the financial statements are an integral part of 

the government-wide and fund financial statements and provide expanded explanation and detail 

regarding the information reported in the statements. 

Required Supplementary Information: This MD&A and general fund budgetary comparison schedule 

represent financial information required to be presented by the GASB, DESE and government auditing 

standards. Such information provides users of this report with additional data that supplements the 

government-wide statements, fund financial statements and notes (referred to as "the basic financial 

statements"). 

Additional Supplementary Information: This part of the annual report includes optional financial 

information such as a schedule of federal and state awards and schedules of revenues collected by 

source, expenditures paid by object and detail bonded indebtedness. This additional supplementary 

financial information is provided to address certain specific needs of various users of the district's 

annual report. 

Federal Compliance Section: This part of the independent auditor’s report includes reports on the 

district’s internal control over financial reporting, internal control over compliance with requirements 

of laws, regulations, contracts and grants applicable to federal programs, a schedule and notes of 

expenditures of federal awards, and findings and/or questioned costs of federal monies. 

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June 30, 2011 

State Compliance Section: This part of the report includes the report on district compliance with 

specified requirements of Missouri laws and regulations. In addition, a schedule of selected statistics 

used by the state is included. 

Basis of Accounting 

The district has elected to present its financial statements on a cash basis of accounting. The basis of 

accounting is a reference to when financial events are recorded, such as the timing for recognizing 

revenues, expenses and their related assets and liabilities. The district's cash basis accounting results 

in revenues and expenditures being recorded with the results from cash transactions. 

As a result of the use of this cash basis of accounting, certain assets and their related revenues (such as 

accounts receivable or revenue not yet received) and certain liabilities and their related expenses (such as 

accounts payable and expenses for goods or services received but not yet paid) are not recorded in these 

financial statements. Therefore, when reviewing the financial information and discussion within this 

report, the reader should keep in mind the limitations from the use of the cash basis of accounting. 

The District-Wide Statement of Net Assets and Statement of Activities 

One of the more important questions asked about the district's finances is "Is the district as a whole better 

off or worse as a result of the year's activities?" The statement of activities reports information about the 

district as a whole and about its activities in a way that helps answer this question. These statements 

include all of the district's governmental activities. Of course, the main function of the district is public 

school education. 

These two statements report the district's net assets and changes in them. One can think of the district's net 

assets as one way to measure the district's financial health or financial position. Over time, increases or 

decreases in the district's net assets are one indicator of whether its financial health is improving or 

deteriorating. One will need to consider other factors, however, such as state budgetary issues and long-term 

changes in assessed valuation. 

Table 1 

Condensed Statement of Net Assets (in millions of dollars) 

Governmental 

Activities 

Increase/ 

Decrease 

2011 2010 

Assets 

Current Assets: 

Cash and Cash Equivalents 22.7 22.6 0.1 

Investments 10.5 9.4 1.1 

Restricted Cash 11.3 0.0 11.3 

Total Assets 44.5 32.0 12.4 

Net Assets 

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June 30, 2011 

Table 1 (continued) 

Governmental 

Activites 

2011 2010 

Increase/ 

Decrease 

Assets Restricted For: 

Debt Service 9.2 10.0 (0.8) 

Scholarship 0.0 0.0 0.0 

Bond Construction 9.9 0.0 9.9 

Unrestricted Assets 25.4 22.0 3.4 

Total Net Assets 44.5 32.0 12.5 

Table 2 

Long-Term Debt (in millions of dollars) 

Long-term debt as listed below is not recorded in the Statement of Net Assets. 

Governmental 

Activities 

Increase/ 

Decrease 

2011 2010 

Long-term Debt 

Long-term Bonded Debt Outstanding 70.5 67.3 3.2 

Other 2.6 3.0 (0.5) 

Total Long-term Debt 73.1 70.3 2.7 

Table 3 

Changes in Net Assets (in millions of dollars) 

Revenue 

Governmental 

Activities 

2011 2010 

Increase/ 

Decrease 

Local 96.3 93.2 3.1 

County 3.4 3.4 0.0 

State 21.0 20.4 0.6 

Federal 7.6 9.1 (1.5) 

Other 14.6 0.0 14.6 

Total Revenue 142.9 126.1 16.8 

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June 30, 2011 

Table 3 (continued) 

Expenditures 

Governmental 

Activities 

2011 2010 

Increase/ 

Decrease 

Instruction 63.3 63.7 (0.4) 

Support Services 47.3 52.1 (4.8) 

Non-Instructional Support 5.3 4.4 0.9 

Debt Service 14.5 9.3 5.2 

Total Expenditures 130.5 129.5 0.9 

Increase in Net Assets 12.5 (3.5) 

Instruction expenses include activities directly dealing with teaching of pupils and the interaction 

between teacher and pupil. 

Support services includes guidance and counseling, health services, the cost of student attendance, 

general administration, operation of plant, transportation and food service. 

Non-instructional support includes community education including Parents as Teachers, facilities 

acquisition and construction. 

Debt Service expenditures include principal and interest payments on general obligation bond debt. 

The revenues from these bonds are recorded in prior years. 

THE FUND FINANCIAL STATEMENTS 

The analysis of the district's major funds begins on page 14. The fund financial statements provide 

detailed information about all district funds. Some funds are required to be established by state law 

and by bond covenants. However, the district's board of education may establish certain other funds to 

help it control and manage money for particular purposes or to show that it is meeting legal 

responsibilities for using certain taxes, grants and other money. The district's governmental funds use the 

same accounting approaches. 

Most of the district's basic services are reported in governmental funds which focus on how money 

flows into and out of these funds and the balances left at year end that are available for spending. The 

governmental fund statements provide a detailed short-term view of the district's general governmental 

operations and the basic services it provides. 

Governmental fund information helps determine, through a review of changes to fund balance, whether 

there are more or fewer financial resources that can be spent in the near future to finance the district's 

programs. 

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June 30, 2011 

The relationship or differences between governmental activities as reported in the Statement of Net 

Assets and the Statement of Activities and governmental funds is described in a reconciliation at the 

bottom of the fund financial statements. The district considers the General Fund, Teachers' Fund, Debt 

Service Fund and Capital Projects Fund to be its significant or major governmental funds. 

CHANGES IN NET ASSETS 

For the year ended June 30, 2011, net assets of the district (resulting from cash basis transactions) 

changed as follows: 

June 30, 

2011 2010 

Beginning Net Assets 32,035,327 35,553,440 

Increase in Net Assets 12,470,573 (3,518,113) 

Ending Net Assets 44,505,900 32,035,327 

GOVERNMENT ACTIVITIES 

To aid in the understanding of the Statement of Activities, some additional explanation is given. 

Of particular interest is the format that is significantly different than typical Statement of Revenues, 

Expenses and Changes in Fund Balance. You will notice that expenses are listed in the first column 

with revenues from that particular program reported to the right. The result is a net (expense) revenue. 

The reason for this kind of format is to highlight the relative financial burden of each of the functions on 

the district's programs. It also identifies how much each function draws from the general revenues or if 

it is self-financing through fees and grants or contributions. All other governmental revenues are 

reported as general. It is important to note that all taxes are classified as general revenue even if 

restricted for a specific purpose. 

BUDGETARY HIGHLIGHTS 

The Park Hill School District budget is prepared according to Missouri law and is based on 

accounting for transactions on a basis of cash receipts, disbursements and encumbrances. 

During the final month of the fiscal 2011 year, the district amended the budget which resulted in the 

budgeted expenditures increasing by $3,735,529 a 2.9% increase. The majority of this increase in 

budget was in the debt service and bond funds where expenditures related to an unbudgeted debt 

refinancing and projects associated with the April, 2011 No-Tax-Increase bond issue occurred midyear. 

In the General, Special Revenue, Food Service and Community Education Funds, the district 

was able to identify efficiencies during the course of the fiscal year which resulted in a budget 

reduction. The Activity Fund was amended upward due to increased student participation in selected 

activities; these funds have a corresponding revenue increase to reflect the increased participation. 

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June 30, 2011 

The budget adjustment was required due to conservative budgeting, and changes to the operational 

plan of the district. Overall, the district spent less in operational funds (non-debt and non-bond 

funds) than the amended budgets. 

Actual revenues in all operating and capital funds combined $128,939,433 an increase of 

$12,010,632 or 10.3% over final revenue in fiscal year 2010. Actual expenditures in all operating 

and capital funds combined were $116,004,128 a decrease of $4,209,279 or 3.5% over actual 

expenses in fiscal year 2010. 

For all operating funds and capital combined in fiscal year 2011, actual expenditures exceeded revenue 

by $12,935,305, which was primarily due the sale of $10 million of general obligation bonds in 

June, 2011. 

DEBT ADMINISTRATION 

On June 30, 2011, the Park Hill School District had $70,510,000 in general obligation bonds due in 

varying amounts with interest charges over twenty years. The purpose of each general obligation bond 

was to construct, equip, furnish and renovate all of the buildings in the district. 

In addition, the district has a loan with the Missouri Department of Natural Resources for the upgrade 

of energy efficiencies in existing facilities with a remaining balance of $2,575,554. 

CURRENT FINANCIAL ISSUES AND CONCERNS 

The Park Hill School District is financially stable. The district is proudly supported by the community. 

The community supports the academic and instructional programs with daily involvement and also with 

necessary funding initiatives over the years. In 2002, the voters overwhelmingly supported a tax levy 

increase to maintain competitive salaries, maintain facilities and increase fund balances. In April, 

2011, the voters overwhelmingly supported a $49.5 million No-Tax-Increase Bond Issue for the 

construction of a tenth elementary school, classroom additions at selected secondary schools, upgrades 

to district technology and safety entrances, and several maintenance projects. 

Despite the economic conditions throughout the nation and state of Missouri, there continues to be 

some retail/commercial development occurring in the Park Hill School District. This construction will 

increase the local assessed values, and serves to offset some of the decreases in assessed valuation 

realized over the last three years in residential and existing commercial property. The school district 

is mindful of the potential impact of decreased assessed valuation of real property in the district. With 

the district relying on over 73% of revenues from local sources, economic trends that could impact real 

property values could have a substantial impact on the district. 

A concern that remains in the forefront of the minds of the administration and Board of Education 

surrounds the further implementation of a state foundation formula approved by the state in the spring, 

2005, for implementation beginning in July, 2006. Recalculation or proration of key variables within the 

formula, as has been done for the 2011-2012 school year, could adversely affect state revenue to the 

district despite the district’s increasing enrollment. 

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June 30, 2011 

Since the Park Hill School District receives approximately 18% of its total operating revenue from the 

state, a drop in funding can adversely impact the district. The district must be mindful of potential 

reductions in other state categorical expenditures as well (i.e. transportation, special education 

funding). Staff will monitor and follow these developments. 

An additional concern held by the administration and Board of Education is the increasing cost of 

maintaining competitive salaries and employee benefit packages. During fiscal year 2011, the district 

spent $88.7 million in employee compensation including insurance, retirement, Medicare, and other 

benefits. 

Also, increasing enrollment of diverse populations will continue to create service and financial demands 

on the district. Programs to support these diverse populations, such as English as a Second Language 

(ESL), school social workers, and Early Childhood Special Education are expected to continue their 

growth in future years. 

Economic conditions, service demands, increasing enrollments, implementation of a new state 

funding formula, and local growth all require management to plan carefully and prudently to provide 

the resources to meet student needs over the next several years. 

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT 

This financial report is designed to provide our citizens, taxpayers, investors and creditors with a 

general overview of the district's finances and to show the district's accountability for the money it 

receives. If you have questions about this report or need additional financial information, contact Dr. 

Paul Kelly, Assistant Superintendent at Park Hill School District, 7703 NW Barry Road, Kansas City, 

Missouri 64153. 

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STATEMENT OF NET ASSETS - MODIFIED CASH BASIS 

June 30, 2011 

ASSETS 

Governmental 

Activities 

Current Assets: 

Cash and Cash Equivalents $22,752,584 

Investments 10,457,749 

Restricted Cash 11,266,551 

TOTAL ASSETS $44,476,884 

LIABILITIES AND NET ASSETS 

Net Assets: 

Restricted for: 

Debt Service $ 9,177,845 

Scholarship 1,537 

Construction Projects 9,923,110 

Unrestricted 25,374,392 

TOTAL LIABILITIES AND NET ASSETS $44,476,884 

See Accompanying Notes to the Basic Financial Statements. 

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STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS 

June 30, 2011 

Net (Expenses) 

Revenue and 

Changes in 

Program Revenues 

Net Assets 

Charges for Operating Capital 

Services & Grants & Grants & Government 

Functions (Programs) Expenses Sales Contributions Contributions Activities 

Governmental Activities: 

Regular Instruction $ 44,731,307 $ 786,422 $ 5,466,137 $ 0 $(38,478,748) 

Special Education 14,708,451 0 4,088,075 71,799 (10,548,577) 

Student Activities 3,884,408 2,226,130 0 0 (1,658,278) 

Pupil Services 6,713,158 0 7,843 0 (6,705,315) 

Instructional Staff Services 3,086,259 0 246,640 0 (2,839,619) 

General Administrative 1,754,338 0 0 0 (1,754,338) 

Building Level Admin 6,151,971 224,972 0 0 (5,926,999) 

Central Office/Support 5,853,043 26,586 0 0 (5,826,457) 

Operation of Plant 13,808,663 0 0 0 (13,808,663) 

Transportation 5,289,532 0 1,032,605 0 (4,256,927) 

Food Services 4,681,742 3,287,007 1,411,168 0 16,433 

Community Services 3,674,800 3,217,941 94,735 0 (362,124) 

$114,337,672 $9,769,058 $12,347,203 $71,799 (92,149,612) 

General Revenues 

Taxes: 

Property taxes, levied for general purposes 67,501,043 

Property taxes, levied for debt services 8,665,186 

Property taxes, levied for capital projects 642,759 

Non-restricted Intergovernmental Revenues: 

Proposition C - Sales Tax 7,546,778 

Payments in Lieu 372,831 

Financial Institution Tax, M&M surtax 822,895 

State Assessed Railroad & Utility 2,936,535 

County - fines 502,324 

Basic Formula 16,198,706 

Interest & Investment Earnings 938,971 

Subtotal - General Revenues 106,128,028 

Excess (deficiency) of revenues over expenses before special items 13,978,416 

Special Items: 

Bond Issuance 14,595,000 

Acquisition & (1,071,703) 

Debt Payments (principal, interest, fees) (14,919,907) 

Other Expenses (135,093) 

Sale of Property 20,451 

Subtotal - Special Items (1,511,252) 

Changes in Net Assets 12,467,164 

NET ASSETS - BEGINNING OF YEAR 32,009,720 

NET ASSETS - END OF YEAR $ 44,476,884 


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BALANCE SHEET - MODIFIED CASH BASIS 

GOVERNMENTAL FUNDS 

June 30, 2011 

Special Debt Capital 

General Revenue Service Projects Totals 

Fund Fund Fund Fund (Memo Only) 

ASSETS 

Cash & Cash Equivalents $11,384,039 - $7,115,941 $ 4,252,604 $22,752,584 

Investments 9,737,749 - 720,000 0 10,457,749 

Restricted Cash 1,537 - 1,341,904 9,923,110 11,266,551 

TOTAL ASSETS $21,123,325 - $9,177,845 $14,175,714 $44,476,884 

FUND EQUITY 

Restricted $ 1,537 - $9,177,845 $9,923,111 $19,102,493 

Assigned 0 - 0 4,252,603 4,252,603 

Unassigned 21,121,788 - 0 0 21,121,788 

TOTAL EQUITY $21,123,325 - $9,177,845 $14,175,714 $44,476,884 


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COMBINED STATEMENT OF REVENUES, EXPENDITURES 

AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS 

ALL GOVERNMENTAL FUND TYPES 

For the Year Ended June 30, 2011 




REVENUES 

Local $77,689,888 $ 7,546,886 $ 9,042,951 $ 1,979,794 $ 96,259,519 

County 2,543,704 502,324 354,154 38,678 3,438,860 

State 3,058,958 17,955,487 0 7,366 21,021,811 

Federal 4,957,810 2,573,653 0 64,434 7,595,897 

Other 0 0 4,595,000 10,020,452 14,615,452 

Total Revenues 88,250,360 28,578,350 13,992,105 12,110,724 142,931,539 

EXPENDITURES 

Regular Instruction 1,592,900 42,482,616 0 655,791 44,731,307 

Special Education 3,294,586 11,333,235 0 80,630 14,708,451 

Student Activities 2,064,628 1,743,836 0 75,944 3,884,408 

Pupil Services 3,677,687 3,017,818 0 17,653 6,713,158 

Instructional Staff Services 1,006,516 2,077,017 0 2,726 3,086,259 

General Administration 1,162,527 578,516 0 13,295 1,754,338 

Building Level Administration 2,188,502 3,963,469 0 0 6,151,971 

Central Office/Support 4,613,237 517,619 0 722,187 5,853,043 

Operation of Plant 12,101,950 99,052 0 1,607,661 13,808,663 

Transportation 5,218,607 0 0 70,925 5,289,532 

Food Service 4,285,668 0 0 396,074 4,681,742 

Community Services 3,313,292 248,712 0 112,796 3,674,800 

Facilities/Equipment 0 0 0 1,071,703 1,071,703 

Debt Service 0 0 14,403,154 516,753 14,919,907 

Other Expense 0 0 57,093 78,000 135,093 

Total Expenditures 44,520,100 66,061,890 14,460,247 5,422,138 130,464,375 

Revenue Over (Under) Expenditures 43,730,260 (37,483,540) (468,142) 6,688,586 12,467,164 

Transfers In (Out) (41,876,140) 37,483,540 0 4,392,600 0 

Revenues & Other Financing Sources Over 

(Under) Expenditures & Other Uses 1,854,120 0 (468,142) 11,081,186 12,467,164 

FUND BALANCE - JULY 1, 2010 19,269,205 0 9,645,987 3,094,528 32,009,720 

FUND BALANCE - JUNE 30, 2011 $21,123,325 $ 0 $ 9,177,845 $14,175,714 $ 44,476,884 


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NOTES TO BASIC FINANCIAL STATEMENTS 


INDEX 

NOTE 1: 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Entity 

B. Principles Used to Determine Scope of Entity 

C. Basis of Presentation 

D. Measurement Focus 

E. Basis of Accounting 

F. Assets, Liabilities and Equity 

G. Revenues and Expenditures 

H. Use of Estimates 

I. Program Receipts 

NOTE 2: 

COMPLIANCE AND ACCOUNTABILITY 

A. Compliance with Laws 

B. Fund Accounting Requirements 

C. Uninsured and Uncollateralized Deposits 

D. Property Tax Requirements 

E. Net Asset/Fund Equity Restrictions 

F. Budgetary Compliance 

NOTE 3: 

DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS 

A. Deposits and Investments 

B. Long-Term Debt 

C. Inter-fund Transfers 

D. Fund Balance Reporting 

NOTE 4: 

OTHER NOTES 

A. Employee Pension Plans 

B. Deferred Compensation Plan 

C. COBRA Benefits 

D. Section 125 Cafeteria Plan 

E. Post-employment Benefits 

F. Risk Management 

G. Operating Lease 

H. Lease Purchase 

I. Missouri Department of Natural Resources Energy Loan 

J. Self-Insured Risk Pool for Insurance 

K. Claims and Adjustments 

L. Litigation 

M. Subsequent Events 

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NOTE 1: 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Entity 

Park Hill School District (the “District”) operates under the regulations pursuant to Section 162.092 

RSMo of the Public School Laws of Missouri which designates a board of education to act as the 

governing authority. The District provides educational services to children of the district, 

kindergarten through twelfth grade. The District operates 15 attendance centers, has approximately 

10,162 students and approximately 1,305 full time employees. 

B. Principles Used to Determine Scope of Entity 

In determining the financial reporting entity, the District complies with the provisions of 

Governmental Accounting Standards Board Statement No. 14, “The Financial Reporting Entity” and 

includes all component units of which the District appointed a voting majority of the units’ board and 

the District is either able to impose its will on the unit or a financial benefit or burden relationship 

exists. 

The District has developed criteria to determine whether outside agencies with activities which 

benefit the citizens of the District, including joint agreements which serve students from numerous 

districts, should be included within its financial reporting entity. The criteria include, but are not 

limited to, whether the District exercises oversight responsibility, which includes financial 

interdependency, selection of governing authority, designation of management, ability to 

significantly influence operations, and accountability for fiscal matters, scope of public service and 

special financing relationships. 

The District has determined that no other outside agency meets the above criteria and, therefore, no 

other agency has been included as a component unit in the District's financial statements. In 

addition, the District is not aware of any entity which could exercise such oversight which would 

result in the District being considered a component unit of the entity. 

C. Basis of Presentation 

Except for the use of the modified cash basis of accounting as discussed in Note 1-E, the lack of 

fixed asset accounting as discussed in Note 1-F, and long-term debt accounting as discussed in Note 

1-F, the District complies with accounting principles generally accepted in the United States of 

America. Generally Accepted Accounting Principles (GAAP) include all relevant Governmental 

Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework 

and the more significant accounting policies are discussed in this and subsequent footnotes. 

Government-Wide Financial Statements 

The statement of net assets and statement of activities display information about the District as a 

whole. They include all funds of the District. The District has only governmental activities which 

are financed through taxes, intergovernmental revenues and other non-exchange revenues. 

-17-





NOTE 1: 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 

C. Basis of Presentation (continued) 

Fund Financial Statements 

Fund financial statements of the District are organized into funds, each of which is considered to be a 

separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing 

accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. An emphasis is 

placed on major funds within the governmental categories. The District has designated that all funds 

are considered major funds. The funds of the District are described as follows. 

Governmental Fund Types - Governmental funds are those through which most governmental 

functions of the District are financed. The acquisition, use and balances of the District’s 

expendable financial resources and the related liabilities are accounted for through governmental 

funds. The measurement focus is upon determination of changes in financial position, rather 

than upon net income determination. The following are the District’s governmental fund types. 

D. Measurement Focus 

General Fund 

Accounts for general activities of the District, including student activities, community 

education, food service, and transportation which are not required to be accounted for in 

a separate fund. 

Special Revenue Fund 

Accounts for expenditures for certified employees who are involved in administration 

and instruction. It includes revenues restricted by the state and local tax levy for the 

payment of teacher salaries and certain employee benefits. 

Debt Service Fund 

Accounts for the accumulation of resources for, and the payment of, principal, interest 

and fiscal charges on long-term debt. 

Capital Projects (Building) Fund 

Accounts for the proceeds of bond issues, taxes and other revenue restricted for 

acquisition or construction of major capital assets. 

Measurement focus is a term used to describe which transactions are recorded within the various 

financial statements. In both the government-wide statements and the fund financial statements, the 

current financial resources measurement focus or the economic resources measurement focus is used 

as appropriate. 

All governmental funds utilize a “current financial resources” measurement focus. Only current 

financial assets and liabilities are generally included on their balance sheets. Their operating 

statements present sources and uses of available spendable financial resources during a given period. 

These funds use fund balance as their measure of available spendable financial resources at the end 

of the period. 

-18-





NOTE 1: 


E. Basis of Accounting 

In the government-wide statement of net assets and statements of activities and the fund financial 

statements, governmental activities are presented using a modified cash basis of accounting. This 

basis recognizes assets, liabilities, net assets/fund equity, revenues and expenditures/expenses when 

they result from cash transactions. This basis is a comprehensive basis of accounting other than 

accounting principles generally accepted in the United States of America. 

As a result of the use of this modified cash basis of accounting, certain assets and their related 

revenues (such as accounts receivable and revenue for billed or provided services not yet collected) 

and certain liabilities and their related expenses (such as accounts payable and expenses for goods or 

services received but not yet paid, and accrued expenses and liabilities) are not recorded in these 

financial statements. 

If the District utilized the basis of accounting recognized as generally accepted, the fund financial 

statements for governmental funds would use the modified accrual basis of accounting. All 

government-wide financials would be presented on the accrual basis of accounting. 

F. Assets, Liabilities and Equity 

Cash and Cash Equivalents 

For the purpose of financial reporting, cash and cash equivalents include all demand and savings 

accounts and certificates of deposit and investments maturing within 60 days of year end. 

Certain cash resources of the general, special revenue and capital projects funds are combined to 

form a pool of cash which is managed by the Distict. 

Investments 

Investments include federal securities maintained at UBS. Interest earned is allocated to 

contributing funds based upon investment balances within each fund. 

Capital Assets 

Capital assets are recorded as expenditures in the General (Incidental) and the Capital Projects 

(Building) Funds at the time the expenditures are incurred. The District has not maintained 

capital asset records on a historical basis; therefore, capital assets are not included in the 

financial statements, which does not conform with accounting principles generally accepted in 

the United States of America. 

Other Assets 

The modified cash basis of accounting directs that all assets are expensed as purchased. 

Long-Term Debt 

Long-term debt is not included in these financial statements but long-term debt information is 

provided in a subsequent footnote and detailed in other supplementary information. 

-19-





NOTE 1: 


F. Assets, Liabilities and Equity (continued) 

Accounts Payable 

The District has an established purchase order and payable system which insures bill payment 

within an adequate time frame. 

Compensated Absences 

As a result of the use of the modified cash basis of accounting, compensated absences are not 

reported in these financial statements. Compensated absences were not estimated as of year end. 

OPEB Liabilities 

As the District uses the modified cash basis of accounting, OPEB liabilities are not reported in 

these financial statements. The District has not provided for an estimate of this liability to be 

performed. 

Restricted Net Assets 

Net assets are restricted for the payment of debt service and the usage of bond construction for 

the specified purpose of building construction and furnishing. 

Impact of Recently Issued Accounting Principles 

In February 2009, GASB issued Statement 54, Fund Balance Reporting and Government Fund 

Type Definitions. GASB 54 substantially alters the categories and terminology used to describe 

the components of fund balance while leaving the total amount reported as fund balance 

unchanged. The Statement establishes fund balance classifications, provides for a hierarchy of 

spending constraints for spendable resources and requires disclosure of nonspendable and 

spendable resources. The requirements for this Statement are effective for financial statements 

for periods beginning after June 15, 2010. 

G. Revenues and Expenditures 

Revenues are classified by their source as follows: 

Local Revenues 

Includes property taxes that are levied and collected at the county level for the District, a 

percentage sales tax collected by local merchants and collections for services provided to 

students and patrons. 

County Revenues 

The county by-law collects and passes through to the District specified revenues. 

State Revenues 

The District receives state aid money from the state based upon the state basic formula and 

for various other state educational programs. 

-20-





NOTE 1: 


G. Revenues and Expenditures (continued) 

Federal Revenue 

The District receives federal aid for various educational programs and grants in which they 

participate. 

Investment Income 

Interest earned on invested funds is a material amount annually. 

Other Sources 

The issuance of bonds is a source of revenue in the year of issuance. 

Expenditures are classified by their use as follows: 

Instruction 

This category includes the payment of salaries to and benefits for all instructional staff along 

with needed supplies and aides. Payroll checks written and dated in May 2011, for July and 

August 2011 payrolls from 2010-2011 contracts, are included in the financial statements as 

an expenditure paid in the month of May. This practice has been consistently followed in 

previous years. 

Support Services 

This category includes all the services that are provided for the support of the students and/or 

teachers, the management team, the facilities expenses and the transporting of students. 

Acquisition/Construction 

This category represents the expenditures of major new construction or furnishing and the 

upgrading of existing facilities. 

Debt Service 

The payment of principal and interest on bonds payable or long-term capital leases. 

H. Use of Estimates 

The preparation of financial statements in conformity with the modified cash basis of accounting, 

requires management to make estimates and assumptions that affect the amounts reported in these 

financial statements and accompanying notes. Actual results could differ from these estimates. 

I. Program Receipts 

Amounts reported as program receipts include 1) charges to students or others for goods, services or 

privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. All 

other governmental receipts are reported as general receipts. All taxes are classified as general 

receipts even if restricted for a specific purpose. 

-21-





NOTE 2: 

COMPLIANCE AND ACCOUNTABILITY 

A. Compliance with Laws 

By its nature as a local government, the District is subject to various federal, state and local laws and 

regulations. An analysis of the District’s compliance with significant laws, regulations, grants and 

contracts over District resources follows. 

B. Fund Accounting Requirements 

The District complies in all material respects with state and local laws and regulations requiring the 

use of separate funds. The legally required funds used by the District include the following: 

General (Incidental) Fund 

Special Revenue (Teachers) Fund 

Debt Service Fund 

Capital Projects Fund 

Required by State Law 




C. Uninsured and Uncollateralized Deposits 

In accordance with state law, all uninsured deposits of municipal funds in financial institutions must 

be secured with acceptable collateral. Acceptable collateral includes certain U.S. governmental 

agency securities and certain state or political subdivision debt obligations. At June 30, 2011 all of 

the District’s uninsured deposits were collateralized. 

D. Property Tax Requirements 

Property taxes attach as an enforceable lien on the property each year as of January 1. Taxes are 

levied on November 1 and payable by December 31. The county collects the property tax and remits 

it to the District on a monthly basis. 

The District also receives sales tax collected by the state and remitted based on eligible students. 

The District is required to reduce its property tax levy by one-half the amount of sales tax estimated 

to be received in the subsequent calendar year. District voters have approved a full waiver of 

this rollback. 

The assessed valuation of the tangible property for calendar year 2010 for purposes of local taxation, 

including tax increment financing assessed valuation, is as follows. 

Residential $ 782,208,041 

Agricultural 1,061,663 

Commercial 373,371,740 

Personal Property 290,477,463 

Total $1,447,118,907 

-22-





NOTE 2: 

COMPLIANCE AND ACCOUNTABILITY (continued) 

D. Property Tax Requirements (continued) 

The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 

2010, for purposes of local taxation, follows. 

General/Incidental Fund $4.7573 

Capital Project Fund .0453 

Debt Service Fund .6107 

Total $5.4133 

The receipts of current and delinquent property taxes during the fiscal year ended June 30, 2011, 

aggregated approximately 98% of the current assessment computed on the basis of the levy as shown 

above. 

E. Net Asset/Fund Equity Restrictions 

State law prohibits the creation of a deficit fund balance in any individual fund. For the year ended 

June 30, 2011, the District incurred no fund balance deficits in any individual fund on the modified 

cash basis of accounting. 

F. Budgetary Compliance 

State law requires that expenditures not exceed final budgeted expenditures as approved by the Board 

of Education. For the fiscal year ended June 30, 2011, no budgets had been exceeded using the 

modified cash basis of accounting. 

NOTE 3: 

DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS 

The following notes present information to support the amounts reported in the basic financial statements 

for its various assets, liabilities, equity, revenues and expenditures/expenses. 

A. Deposits and Investments 

Deposits 

Missouri statutes require that all deposits with financial institutions be collateralized in an 

amount at least equal to uninsured deposits. The funds of the District must be deposited and 

invested under the terms of a contract, contents of which are set out in the Depository Contract 

Law. The depository bank places approved pledged securities for safekeeping and trust with the 

District’s agent bank in an amount sufficient to protect District funds on a day-to-day basis 

during the period of the contract. The pledge of approved securities is waived only to the extent 

of the depository bank’s dollar amount of Federal Deposit Insurance Corporation (the “FDIC”) 

insurance. 

-23-





NOTE 3: 

DETAIL NOTES - TRANSACTION CLASSES/ACCOUNTS (continued) 

A. Deposits and Investments (continued) 

Custodial Credit Risk 

Custodial credit risk for deposits is the risk that in the event of a failure of a depository financial 

institution, the District’s deposits may not be returned or the District will not be able to recover 

collateral securities in the possession of an outside party. The District’s policy required deposits 

to be 100 percent secured by collateral valued at market less the amount covered by the FDIC. 

As of June 30, 2011, none of the District’s bank balances with financial institutions of 

$9,968,843 was exposed to custodial credit risk. 

Investments 

Authorized Investments 

The District is authorized to invest in U.S. obligation, U.S. government agency securities and 

instrumentalities of government sponsored corporations. 

Interest Rate Risk 

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair 

value of an investment. Generally, the longer the maturity of an investment, the greater the 

sensitivity of its fair value to changes in market interest rates. As a means of limiting its 

exposure to fair value losses arising from rising interest rates, the District’s investment policy 

requires operating funds to be invested to coincide with projected cash flow needs. 

As of June 30, 2011, the District had the following investments. 

Investment Maturities 

Investment Type Cost Fair Value





NOTE 3: 


B. Long-term Debt 

Bonds payable at June 30, 2011, consisted of the following. 

On April 29, 2003, the District issued $9,950,000 in General Obligation Refunding Bonds to 

refund the Series 1997 Issue. The issue was used for the purpose of crossover refunding Series 

1997 bonds due in March 2007. These bonds are being liquidated through the Missouri Direct 

Deposit Program (Intercept). 

On February 12, 2004, the District issued $27,090,000 in General Obligation Refunding Bonds. 

The issue was used for the purpose of crossover refunding $12,875,000 Series 1997 Issue Bonds 

due after March 2009 and $13,985,000 Series 1999 Issue Bonds due after March 2007. 

On May 23, 2006, the District issued $33,000,000 in General Obligation Building Bonds. Series 

2006 bonds are due in annual installments through 2018 with interest rates between 4.125% and 

5.250%. 

On December 20, 2010, the District issued $4,595,000 in General Obligation Refudning Bonds, 

Series 2010. The issue was used to return $4,635,000 of Series 2001 General Obligation 

Refunding Bonds at March 1, 2011. The Series 2010 bonds are due in annual installments 

through 2020 with interest rates between 2.375% and 4%. 

On June 14, 2011, the District issued $10,000,000 in General Obligation Building Bonds, Series 

2011. These bonds are due in annual installment through 2030 with interest rates between 2.75% 

and 3.75%. 

The following is a summary of bond transactions for the year ended June 30, 2011. 

Bonds Payable, July 1, 2010 $ 67,295,000 

Bonds Issued 14,595,000 

Bonds Retired (11,380,000) 

Bonds Payable, June 30, 2011 $ 70,510,000 

General obligation bond debt service requirements at June 30, 2011, follows. 

Total Principal Total 

Fiscal Year Due & Interest Principal Total Interest 

2011-12 $ 8,697,522 $ 5,735,000 $ 2,962,522 

2012-13 9,591,988 6,745,000 2,846,988 

2013-14 9,362,101 6,760,000 2,602,101 

2014-15 9,911,038 7,560,000 2,351,038 

2015-16 10,271,963 8,255,000 2,016,963 

2016-21 29,389,265 25,455,000 3,934,265 

2021-26 5,549,238 4,005,000 1,544,238 

2026-30 6,578,063 5,995,000 583,063 

$89,351,178 $70,510,000 $18,841,178 

-25-





NOTE 3: 


B. Long-term Debt (continued) 

Article VI, Section 26(b) Constitution of Missouri, limits the outstanding amount of authorized 

general obligation bonds of a district to 15% of the assessed valuation of a district (including 

state-assessed railroad utilities). The legal debt margin, computed excluding the assessed valuation of 

state-assessed railroads and utilities, of the District at June 30, 2011, is as follows. 

C. Inter-fund Transfers 

Constitutional Debt Limit $217,067,836 

General Obligation Bonds Payable (70,510,000) 

Amount Available in Debt Service Fund 9,177,845 

Total Legal Debt Margin $155,735,681 

Exchange transactions between funds are reported as receipts in the seller funds and as expenditures/ 

expenses in the purchaser funds. Flows of cash or goods from one fund to another without a 

requirement for repayment are reported as inter-fund transfers. Inter-fund transfers are reported as 

other financing sources/uses in governmental funds. 

Repayments from funds responsible for particular expenditures/expenses to the funds that initially 

paid for them are not presented on the financial statements. Those transfers made by the District at 

June 30, 2011, are as follows. 

“Zero” Teachers’ Fund 

This transfer allows the District to transfer from the General Fund an amount necessary to bring 

a negative Special Revenue Fund balance to “zero”. 

7% x SAT x WADA 

This is a legal transfer from the general fund to the capital projects fund for specified projects as 

approved by the board of education. The maximum amount is the amount calculated by the 

formula. 

Energy Conservation Loans 

This transfer is used to pay the current principal and interest on the Missouri Department of 

Natural Resources Energy Loan. 

The detail of transfers is as follows. 

Special 

Capital 

General Fund Fund Fund 

“Zero” Teachers Fund $(37,483,540) $37,483,540 $ 0 

7% x SAT x WADA (4,031,696) 0 4,031,696 

Energy Conservation (360,904) 0 360,904 

$(41,876,140) $37,483,540 $4,392,600 

-26-





NOTE 3: 


D. Fund Balance Reporting 

The District has adopted GASB 54 as part of its 2010-11 fiscal year reporting. Implementation of 

GASB 54 is required for fiscal years beginning after June 15, 2010. The intention of the GASB is to 

provide a more structured classification of fund balance and to improve the usefulness of fund 

balance reporting to the users of the District’s financial statements. The reporting standard 

establishes a hierarchy for fund balance classifications and the constraints imposed on the uses of 

those resources. 

GASB 54 provides for two major types of fund balances which are nonspendable and spendable. 

Nonspendable fund balances are balances that cannot be spent because they are not expected to be 

converted to cash or they are legally or contractually required to remain intact. An example of this 

classification is the principal (corpus) of an endowment fund. In addition to the nonspendable fund 

balance, GASB 54 has provided a hierarchy of spendable fund balances based on a hierarchy of 

spending constraints. 

Restricted 

Fund balances that are constrained by external parties, constitutional provisions or enabling 

legislation. 

Committed 

Fund balances that contain self-imposed constraints of the government from its highest level 

of decision making authority. 

Assigned 

Fund balances that contain self-imposed constraints of the government to be used for a 

particular purpose. 

Unassigned 

Fund balance of the general fund that is not constrained for any particular purpose. 

The District has classified its fund balances with the following hierarchy. 

Nonspendable 

The District did not have any items that are considered nonspendable as of June 30, 2011. 

Spendable 

The District has classified the spendable fund balances as Restricted, Assigned and 

Unassigned and considered each to have been spent when expenditures are incurred. The 

District currently has no funds classified as Committed. 

-27-





NOTE 3: 


D. Fund Balance Reporting (continued) 

Restricted 

Missouri statutes and local ordinances require that certain revenues be specifically designed 

for the purposes of debt service and capital projects. The funds have been included in the 

restricted category of fund balance. At year end, the restricted fund balances totaled 

$19,102,493 with $1,537 restricted for student scholarship, $9,177,845 for debt repayment 

and $9,923,111 for bond construction projects. 

Assigned for Capital Projects 

The District has set aside certain spendable fund balance for capital projects which totaled 

$4,252,603 at year end. 

Unassigned 

The unassigned fund balance for the General Fund was $21,121,788. 

NOTE 4: 

OTHER NOTES 

A. Employee Pension Plans 

The District contributes to The Public School Retirement System of Missouri (PSRS), a cost-sharing 

multiple-employer defined benefit pension plan. PSRS provides retirement and disability benefits to 

certificated employees and death benefits to members and beneficiaries. Positions covered by the 

Public School Retirement System are not covered by social security. PSRS benefit provisions are set 

forth in Chapter 169.010 - .141 of the Missouri Revised Statutes. The statutes assign responsibility 

for the administration of the system to a seven-member Board of Trustees. PSRS issues a publicly 

available financial report that includes financial statements and required supplementary information. 

That report may be obtained by writing to: The Public School Retirement System of Missouri, P.O. 

Box 268, Jefferson City, Missouri 65102, or by calling 1-800-392-6848. 

PSRS members are required to contribute 14% of their annual-covered salary and the District is 

required to contribute a matching amount. The contribution requirements of members and the 

District are established and may be amended by the PSRS Board of Trustees. The District's 

contributions to PSRS for the year ending June 30, 2011, were equal to the required contributions. 

The District also contributes to the Public Education Employee Retirement System of Missouri 

(PEERS), a cost-sharing multiple-employer defined benefit pension plan. PEERS provides 

retirement and disability benefits to employees of the District who work 20 or more hours per week 

and who do not contribute to the Public School Retirement System of Missouri. Certain part-time 

certificated employees may be covered by this plan. Positions covered by the Public Education 

Employee Retirement System are also covered by social security. Benefit provisions are set forth in 

Chapter 169.600 - .715 of the Missouri Revised Statutes. 

-28-





NOTE 4: 

OTHER NOTES (continued) 

A. Employee Pension Plans (continued) 

The statutes assign responsibility for the administration of the system to the Board of Trustees of The 

Public School Retirement System of Missouri. PEERS issues a publicly available financial report 

that includes financial statements and required supplementary information. That report may be 

obtained by writing to: The Public School Retirement System of Missouri, PO Box 268, Jefferson 

City, Missouri 65102, or by calling 1-800-392-6848. 

PEERS members are required to contribute 6.63% of their annual-covered salary and the District is 

required to contribute a matching amount. The contribution requirements of members and the 

District are established and may be amended by the Board of Trustees. The District's contributions 

to PEERS for the year ending June 30, 2011, were equal to the required contributions. 

B. Deferred Compensation Plan 

The District adopted a 457(b) deferred compensation plan on March 22, 2002, for eligible 

employees. An eligible employee is any employee of the District who irrevocably elects to reduce 

and defer compensation, which would otherwise be receivable, during a period of employment 

subsequent to the effective date of the Salary Reduction Agreement. 

The District makes no contribution to this plan and reserves the right to amend or cancel the plan. 

The District has no responsibility for loss due to investment or failure of investment of funds and 

assets in the plan but does have the duty of due care that would be required of an ordinary prudent 

investor. 

All amounts of compensation deferred under the plan, all property and rights purchased with those 

amounts, and all income attributable to those amounts, property or rights are (until paid or made 

available to the employee or other beneficiary) solely the property and rights of the District (without 

being restricted to the provisions of benefits under the plan), subject only to the claims of the 

District’s general creditors. Participants’ rights under the plan are equal to those of general creditors 

of the District in an amount equal to the fair market value of the deferred account for each 

participant. 

C. COBRA Benefits 

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), the District offers healthcare 

benefits to eligible former employees and eligible dependents. Certain requirements are outlined by 

the federal government for this coverage. The premium is paid in full by the insured on or before the 

th 

(5 ) day of the month for the current month’s coverage. 

This program is offered for a duration of 18 months after the termination date (36 months for 

dependents and those who are disability qualified; for social security, 29 months). There is no 

associated cost to the District under this program. 

-29-





NOTE 4: 


D. Section 125 Cafeteria Plan 

On November 1, 1988, the District implemented a Section 125 Cafeteria Plan. Under the Plan, 

District employees may elect to withhold from their payroll amounts which can be used to pay for 

various medical and dependent care expenses not covered by insurance. Any balance that remains in 

the employee account at April 30 of each year (plan year end) is not carried over to the subsequent 

plan year. The employee forfeits all rights with respect to the balance, and the forfeited balance 

reverts to the District. 

E. Post-employment Benefits 

In addition to the pension benefits described in Note A, the District makes available postemployment 

healthcare benefits to all employees who retire from the District. Participation by 

retirees in the District health plan is subjected to terms and conditions set forth in the Board policy. 

The cost of the coverage is charged to the retiree at a blended rate for all employees. The District has 

not made a formal evaluation or projection on the future cost of the existing healthcare plan in 

relation to retirees. 

F. Risk Management 

The District is exposed to various risks of loss from torts, theft of, damage to and destruction of 

assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters; 

and employee health, dental and accident benefits. Commercial insurance coverage is purchased for 

claims arising from such matters. Settled claims have not exceeded this commercial coverage in any 

of the three preceding years. 

G. Operating Lease 

Parkville Commercial Underground Facility 

On January 1, 2007, the District renewed the lease with Park College for space in the Parkville 

Commercial Underground Facility. The District utilizes the leased facility for office space and 

warehousing maintenance through December 31, 2016. The following is a schedule of future lease 

expense under this agreement. 

Year Ending June 30, 

Amount 

2012 

2013 

$10,531 

10,531 

2014 

2015 

10,531 

10,531 

2016 10,531 

$52,655 

-30-





NOTE 4: 


H. Lease Purchase 

The District entered into a lease purchase agreement with Commerce Bank for 42 Konica Bushub 

copiers. The monthly payment is $11,292.99 and is for 60 months. The following is a schedule of 

future lease expense under this agreement. 

Year Ending June 30, 

2012 $135,516 

2013 135,516 

2014 135,516 

2015 135,516 

2016 101,637 

$643,701 

I. Missouri Department of Natural Resources Energy Loan 

On November 20, 2003, the Board approved a loan of approximately $4,118,251 for which the 

construction maximum amount will be $4,077,711. These funds are to be used to upgrade current 

energy issues within existing facilities. As of June 30, 2011, the District had received all funding 

from this loan. The energy loan will be retired as follows. 

School Year Principal Interest Total Payments 

2011-12 $ 269,332 $ 91,572 $ 360,904 

2012-13 279,252 81,652 360,904 

2013-14 289,538 71,366 360,904 

2014-15 300,202 60,702 360,904 

2015-16 311,260 49,644 360,904 

2016-20 1,125,970 80,662 1,206,632 

$2,575,554 $435,598 $3,011,152 

J. Self-Insured Risk Pool for Insurance 

The District participates in a public entity self-insured risk pool for insurance coverage. Workers' 

compensation, property, liability, and treasurer’s bond coverage is provided by the Missouri Unified 

School Insurance Council (MUSIC). Deposits are made to the pool by the District to cover 

anticipated losses. These deposits are reported as insurance expense. The pool purchases reinsurance 

to further protect against large losses. In the event that the deposited amounts and reinsurance 

proceeds are insufficient to pay claims, the District can be assessed for additional amounts. No 

provision has been made for this contingency as it appears improbable that assessments would be 

needed. All deposits are charged to insurance expense when made. 

-31-





NOTE 4: 


K. Claims and Adjustments 

The District participates in a number of federal and state programs that are fully or partially funded 

by grants received from other governmental units. Disbursements financed by grants are subject to 

audit by the appropriate grantor government. If disbursements are disallowed due to noncompliance 

with grant program regulation, the disetrict may be required to reimburse the grantor government. As 

of June 30, 2011, disbursements have not been audited by grantor governments, but the District 

believes that disallowed disbursements, if any, based on subsequent audits will not have a material 

effect on any of the individual government funds or the overall position of the District. 

L. Litigation 

As of June 30, 2011, the District had several unsettled due process claims. At this point in time, the 

outcomes cannot be predicted. The District is vigorously defending these claims. There has been no 

provision for possible loss included in these financial statements. 

M. Subsequent Events 

Dr. Dennis Fisher, Superintendent of Schools, announced his retirement from the District effective 

June 30, 2012. 

-32-

REQUIRED SUPPLEMENTARY INFORMATION



BUDGETARY COMPARISON - MODIFIED CASH BASIS 

GENERAL FUND 

June 30, 2011 

Original Final Actual Over 

Budget Budget Actual (Under) Budget 

REVENUES 

Local $ 77,206,633 $ 77,206,633 $ 77,689,888 $ 483,255 

County 2,511,064 2,511,064 2,543,704 32,640 

State 2,946,834 2,946,834 3,058,958 112,124 

Federal 5,873,018 5,873,018 4,957,810 (915,208) 

Total Revenues 88,537,549 88,537,549 88,250,360 (287,189) 

EXPENDITURES 

Regular Instruction 2,089,137 1,800,000 1,592,900 (207,100) 

Special Education 4,066,674 3,550,000 3,294,586 (255,414) 

Student Activities 1,957,758 1,957,758 2,064,628 106,870 

Pupil Services 3,949,653 3,750,000 3,677,687 (72,313) 

Instructional Staff Services 1,289,455 1,289,455 1,006,516 (282,939) 

General Administration 1,252,241 1,252,241 1,162,527 (89,714) 

Building Level Administration 2,195,601 2,195,601 2,188,502 (7,099) 

Operation of Plant 12,539,818 12,139,818 12,101,950 (37,868) 

Transportation 5,368,421 5,268,421 5,218,607 (49,814) 

Food Service 4,790,393 4,365,000 4,285,668 (79,332) 

Community Service 3,624,757 3,400,000 3,313,292 (86,708) 

Central Office/Support 4,339,389 4,563,706 4,613,237 49,531 

Total Expenditures 47,463,297 45,532,000 44,520,100 (1,011,900) 

Revenues Over (Under) Expenditures 41,074,252 43,005,549 43,730,260 724,711 

Transfers In (Out) (42,288,765) (42,288,765) (41,876,140) 412,625 

Revenues & Other Financing Sources 

Over (Under) Expenditures & Other Uses (1,214,513) 716,784 1,854,120 1,137,336 

FUND BALANCE, JULY 1, 2010 19,230,963 19,230,963 19,269,205 38,242 

FUND BALANCE, JUNE 30, 2011 $ 18,016,450 $ 19,947,747 $ 21,123,325 $ 1,175,578 


-34-




SPECIAL REVENUE FUND 

June 30, 2011 



REVENUES 

Local $ 7,143,760 $ 7,143,760 $ 7,546,886 $ 403,126 

County 500,260 500,260 502,324 2,064 

State 16,624,466 16,624,466 17,955,487 1,331,021 

Federal 2,824,634 2,824,634 2,573,653 (250,981) 

Total Revenues 27,093,120 27,093,120 28,578,350 1,485,230 

EXPENDITURES 

Regular Instruction 44,075,065 43,000,000 42,482,616 (517,384) 

Special Education 11,085,465 11,200,000 11,333,235 133,235 

Student Activities 1,691,142 1,691,142 1,743,836 52,694 

Pupil Services 3,037,481 3,037,481 3,017,818 (19,663) 

Instructional Staff Services 1,487,604 1,800,000 2,077,017 277,017 

General Administration 531,843 531,843 578,516 46,673 

Building Level Administration 4,627,847 4,300,000 3,963,469 (336,531) 

Operation of Plant 0 100,000 99,052 (948) 

Central Office/Support 311,604 500,000 517,619 17,619 

Community Services 33,834 243,534 248,712 5,178 

Total Expenditures 66,881,885 66,404,000 66,061,890 (342,110) 

Revenues Over (Under) Expenditures (39,788,765) (39,310,880) (37,483,540) 1,827,340 

Transfers In (Out) 39,788,765 39,310,880 37,483,540 (1,827,340) 

Revenues & Other Financing Sources 

Over (Under) Expenditures & Other Uses 0 0 0 0 

FUND BALANCE, JULY 1, 2010 0 0 0 0 

FUND BALANCE, JUNE 30, 2011 $ 0 $ 0 $ 0 $ 0 


-35-



NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 

BUDGETARY COMPARISON 

For the Fiscal Year Ended June 30, 2011 

BUDGETARY ACCOUNTING 

Park Hill School District prepares its budget for all governmental funds on the modified cash basis of 

accounting. This basis is consistent with the basis of accounting used in preparing and presenting the 

basic financial statements. All unexpended appropriations lapse at year end. 

The District follows these procedures in establishing the budgetary data reflected in the financial 

statements: 

1. In accordance with Chapter 67, RSMo, the District adopts a budget for each fund. 

2. Prior to July, the superintendent, who serves as the budget officer, submits to the Board of Education 

a proposed budget for the fiscal year beginning on the following July 1. The proposed budget 

includes estimated revenues, proposed expenditures and transfers for all District governmental type 

funds. Budgeted expenditures cannot exceed beginning available monies plus estimated revenues for 

the year. 

3. A public hearing is conducted to obtain taxpayer comments. Prior to its approval by the Board of 

Education, the budget document is available for public inspection. 

4. Prior to July 1, the budget is legally enacted by a vote of the Board of Education. 

5. Subsequent to its formal approval of the budget, the Board of Education has the authority to make 

necessary adjustments to the budget by formal vote of the board. Adjustments made during the year 

are reflected in the budget information included in these financial statements. Budgeted amounts in 

the financial statements are as originally adopted or as amended by the Board of Education. 

6. Budgets for District governmental funds are prepared and adopted on the modified cash basis 

(budget), recognizing revenues when collected and expenditures when paid. 

7. Actual expenditures may not legally exceed the budgeted expenditures in any budgeted fund. For the 

fiscal year ended June 30, 2011, no budgets had been exceeded using the modified cash basis of 

accounting. 

-36-

ADDITIONAL SUPPLEMENTARY DATA




DEBT SERVICE FUND 

June 30, 2011 



REVENUES 

Local $8,978,064 $ 8,978,064 $ 9,042,951 $ 64,887 

County 341,384 341,384 354,154 12,770 

Other 0 0 4,595,000 4,595,000 


EXPENDITURES 

Principal 6,745,000 10,006,322 11,380,000 1,373,678 

Interest 3,004,845 4,457,739 3,023,154 (1,434,585) 

Other 2,655 3,939 57,093 53,154 


Revenues Over (Under) Expenditures (433,052) (5,148,552) (468,142) 4,680,410 


FUND BALANCE, JUNE 30, 2011 $9,134,991 $ 4,419,491 $ 9,177,845 $4,758,354 


-38-




CAPITAL PROJECTS FUND 

June 30, 2011 



REVENUES 

Local $ 1,822,738 $ 1,822,738 $ 1,979,794 $ 157,056 

County 52,076 52,076 38,678 (13,398) 

State 0 0 7,366 7,366 

Federal 0 0 64,434 64,434 

Other 15,488 15,488 10,020,452 10,004,964 


EXPENDITURES 

Regular Instruction 550,840 650,000 655,791 5,791 

Special Education 22,869 80,000 80,630 630 

Student Activities 19,856 75,000 75,944 944 

Pupil Services 2,080 20,000 17,653 (2,347) 

Instructional Staff Services 25,250 5,000 2,726 (2,274) 

General Administration 8,946 8,946 13,295 4,349 

Operation of Plant 2,617,400 1,617,400 1,607,661 (9,739) 

Central Office/Support 693,282 693,283 722,187 28,904 

Transportation 70,000 70,000 70,925 925 

Food Service 0 385,000 396,074 11,074 

Community Services 0 110,000 112,796 2,796 

Facility Projects 247,511 1,898,616 1,071,703 (826,913) 

Debt Services 516,755 516,755 516,753 (2) 

Other Expense 1,000 75,000 78,000 3,000 


Revenues Over (Under) Expenditures (2,885,487) (4,314,698) 6,688,586 11,003,284 

Transfers In (Out) 2,500,000 2,500,000 4,392,600 1,892,600 

Revenues & Other Financing Sources Over/ 0 

(Under) Expenditures & Other Uses (385,487) (1,814,698) 11,081,186 12,895,884 


FUND BALANCE, JUNE 30, 2011 $ 2,333,415 $ 904,204 $14,175,714 $13,271,510 


-39-



SCHEDULE OF REVENUES COLLECTED BY SOURCE 





LOCAL: 

Current/Delinquent Taxes $67,501,043 $ 0 $ 8,665,186 $ 642,759 $ 76,808,988 

School Dist Trust Fund (Prop C) 0 7,546,778 0 0 7,546,778 

Financial Institutions Tax 0 0 0 157,515 157,515 

M&M, in lieu of City & Sales 0 0 0 1,038,211 1,038,211 

Earnings on Investments 551,585 108 377,765 9,513 938,971 

Food Services 3,287,007 0 0 0 3,287,007 

Student Activities 2,146,130 0 0 0 2,146,130 

Community Services 3,217,941 0 0 0 3,217,941 

Other 986,182 0 0 131,796 1,117,978 

Total Local 77,689,888 7,546,886 9,042,951 1,979,794 96,259,519 

COUNTY: 

Fines, Escheats 0 502,324 0 0 502,324 

State Assessed Utilities 2,543,704 0 354,154 38,678 2,936,536 

Total County 2,543,704 502,324 354,154 38,678 3,438,860 

STATE: 

Basic Formula 0 13,794,755 0 0 13,794,755 

Transportation Aid 1,032,605 0 0 0 1,032,605 

Career Ladder 0 94,000 0 0 94,000 

Vo-Tec 2,137 0 0 0 2,137 

Classroom Trust 0 4,066,732 0 0 4,066,732 

High Need Fund 137,750 0 0 0 137,750 

Food Services 29,510 0 0 0 29,510 

Early Childhood Special Ed 1,749,117 0 0 7,366 1,756,483 

Educational Screening Program 94,735 0 0 0 94,735 

Other 13,104 0 0 0 13,104 

Total State 3,058,958 17,955,487 0 7,366 21,021,811 

FEDERAL: 

Medicaid 88,619 0 0 0 88,619 

Title I - ESEA 584,288 0 0 0 584,288 

Title II 152,640 0 0 0 152,640 

Food Services 1,381,658 0 0 0 1,381,658 

Individuals w/Disabilities Ed 1,641,583 0 0 1,695 1,643,278 

Title IV - Drug Free Schools 3,955 0 0 0 3,955 

English Language Requisition 77,742 0 0 0 77,742 

Early Childhood Special Ed 174,736 0 0 44,824 219,560 

Stablization 0 757,912 0 0 757,912 

ARRA 792,223 463,376 0 17,915 1,273,514 

Job's Bill 0 1,352,365 0 0 1,352,365 

Other 60,366 0 0 0 60,366 

Total Federal 4,957,810 2,573,653 0 64,434 7,595,897 

Bonds Issued 0 0 4,595,000 10,000,000 14,595,000 

Sale of District Property 0 0 0 20,452 20,452 

TOTAL REVENUES $88,250,360 $28,578,350 $13,992,105 $12,110,724 $142,931,539 


-40-



SCHEDULE OF EXPENDITURES PAID BY OBJECT 





Salaries $18,488,378 $52,467,762 $ 0 $ 0 $ 70,956,140 

Fringe Benefits 5,157,743 12,592,464 0 0 17,750,207 

Tuition 74,495 1,001,664 0 0 1,076,159 

Audit & Accounting 18,998 0 0 0 18,998 

Legal 199,811 0 0 0 199,811 

Other Services 4,425,939 0 0 0 4,425,939 

Transportation 4,625,206 0 0 0 4,625,206 

Travel 349,098 0 0 0 349,098 

Insurance 669,019 0 0 0 669,019 

Purchased Services 1,773,548 0 0 0 1,773,548 

Supplies 4,020,033 0 0 0 4,020,033 

Books & Periodicals 427,667 0 0 0 427,667 

Food 1,830,975 0 0 0 1,830,975 

Energy Supplies 2,459,190 0 0 0 2,459,190 

Capital Improvements 0 0 0 2,775,862 2,775,862 

Equipment 0 0 0 2,051,523 2,051,523 

Debt Service 0 0 14,403,154 516,753 14,919,907 

Other Expense 0 0 57,093 78,000 135,093 

$44,520,100 $66,061,890 $14,460,247 $5,422,138 $130,464,375 


-41-



SCHEDULE OF BONDED INDEBTEDNESS 

June 30, 2011 

Bonded Indebtedness Series Series Series Series Series 

Fiscal Year Totals 2003 2004 2006 2010 2011 

2011-12 $ 5,735,000 $2,360,000 $ 1,670,000 $ 1,100,000 $ 605,000 $ 0 

2012-13 6,745,000 2,670,000 1,725,000 1,725,000 625,000 0 

2013-14 6,760,000 700,000 4,130,000 1,930,000 0 0 

2014-15 7,560,000 0 5,625,000 1,935,000 0 0 

2015-16 8,255,000 0 6,015,000 2,240,000 0 0 

2016-17 10,510,000 0 2,000,000 8,510,000 0 0 

2017-18 11,580,000 0 0 11,580,000 0 0 

2018-19 1,650,000 0 0 0 1,650,000 0 

2019-20 1,715,000 0 0 0 1,715,000 0 

2020-21 0 0 0 0 0 0 

2021-22 295,000 0 0 0 0 295,000 

2022-23 750,000 0 0 0 0 750,000 

2023-24 865,000 0 0 0 0 865,000 

2024-25 980,000 0 0 0 0 980,000 

2025-26 1,115,000 0 0 0 0 1,115,000 

2026-27 1,255,000 0 0 0 0 1,255,000 

2027-28 1,410,000 0 0 0 0 1,410,000 

2028-29 1,575,000 0 0 0 0 1,575,000 

2029-30 1,755,000 0 0 0 0 1,755,000 

$70,510,000 $5,730,000 $21,165,000 $29,020,000 $4,595,000 $10,000,000 

Interest Obligation Series Series Series Series Series 

Totals 2003 2004 2006 2010 2011 

2011-12 $ 2,962,522 $198,190 $ 867,081 $1,466,650 $ 191,570 $ 239,031 

2012-13 2,846,988 117,950 814,106 1,419,900 149,444 345,588 

2013-14 2,602,101 24,500 758,325 1,339,088 134,600 345,588 

2014-15 2,351,038 0 622,750 1,248,100 134,600 345,588 

2015-16 2,016,963 0 375,750 1,161,025 134,600 345,588 

2016-17 1,608,038 0 75,000 1,052,850 134,600 345,588 

2017-18 1,086,263 0 0 606,075 134,600 345,588 

2018-19 480,188 0 0 0 134,600 345,588 

2019-20 414,188 0 0 0 68,600 345,588 

2020-21 345,588 0 0 0 0 345,588 

2021-22 345,588 0 0 0 0 345,588 

2022-23 337,475 0 0 0 0 337,475 

2023-24 314,975 0 0 0 0 314,975 

2024-25 289,025 0 0 0 0 289,025 

2025-26 257,175 0 0 0 0 257,175 

2026-27 218,150 0 0 0 0 218,150 

2027-28 174,225 0 0 0 0 174,225 

2028-29 124,875 0 0 0 0 124,875 

2029-30 65,813 0 0 0 0 65,813 

$18,841,178 $340,640 $3,513,012 $8,293,688 $1,217,214 $5,476,624 


-42-

FEDERAL COMPLIANCE SECTION




Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the District’s financial statements are free of 

material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, 

contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts. However, providing an opinion on compliance with those 

provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests disclosed no instances of noncompliance or other matters that are required to be 

reported under Government Auditing Standards. 

This report is intended solely for the information and use of the Board of Education, management, 

federal awarding agencies, Missouri Department of Elementary and Secondary Education and other passthrough 

entities and is not intended to be and should not be used by anyone other than these specified 

parties. 





-45-




A deficiency in internal control over compliance exists when the design or operation of a control over 

compliance does not allow management or employees, in the normal course of performing their assigned 

functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a 

federal program on a timely basis. A material weakness in internal control over compliance is a 

deficiency, or combination of deficiencies, in internal control over compliance, such that there is a 

reasonable possibility that material noncompliance with a type of compliance requirement of a federal 

program will not be prevented, or detected and corrected, on a timely basis. 

Our consideration of internal control over compliance was for the limited purpose described in the first 

paragraph of this section and was not designed to identify all deficiencies in internal control over 

compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not 

identify any deficiencies in internal control over compliance that we consider to be material weaknesses, 

as defined above. 

This report is intended solely for the information and use of the Board of Education, management, 

Missouri Department of Elementary and Secondary Education, federal awarding agencies and other passthrough 

entities and is not intended to be and should not be used by anyone other than these specified 

parties. 





-47-



SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 


Federal Agency or 

Federal Grantor/Pass-through CFDA Pass-through Federal 

Grantor/Program Title Number Number Expenditure 

U.S. Department of Agriculture 

Pass-through Missouri Dept. of Elementary & Secondary Education: 

Child Nutrition Cluster: 

School Breakfast Program 10.553 083-005 $ 260,674 

National School Lunch Program 10.555 083-005 1,436,661 

Total Child Nutrition Cluster 1,697,335 

Total U.S. Department of Agriculture 1,697,335 

U.S. Department of Education 


Title I - Part A Cluster: 

Title I, Part A Grants to LEAs 84.010A 083-005 691,081 

Title I, Part A Grants to LEAs (ARRA) 84.389A 083-005 267,909 

Total Title I, Part A Cluster 958,990 

ESEA-Title II, Part A Improving Teacher Quality 84.367A 083-005 232,429 

Title III, Part A, Immigrant & LEP 84.365A 083-005 72,920 

Title IV, Part A, Subpart 1 Safe & Drug-Free Schools 84.186A 083-005 3,955 

State Fiscal Stabilization Fund Cluster (SFSF): 

SFSF Education Stabilization Fund (ARRA) 84.394 083-005 757,912 

SFSF Government Services (ARRA) 84.397 083-005 463,376 

Total State Fiscal Stabilization Fund Cluster 1,221,288 

Federal Education Jobs Fund (ARRA) 84.410A 083-005 1,352,365 

Special Education Cluster (IDEA): 

IDEA, Part B - Special Education 84.027A 083-005 1,589,760 

IDEA, Part B - Special Education (ARRA) 84.391A 083-005 720,840 

Early Childhood Special Education 84.027A 083-005 219,560 

IDEA, Preschool-Special Education (ARRA) 84.392A 083-005 63,990 

Total Special Education Cluster 2,594,150 

Total U.S. Department of Education 6,436,097 

U.S. Department of Labor 


Workforce Investment Act (WIA) 17.259 W09915 10,474 

TOTAL EXPENDITURES OF FEDERAL AWARDS $8,143,906 

-48-



NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 


NOTE 1: 

GENERAL 

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal 

awards programs of Park Hill School District. The Park Hill School District School Board (the “school 

board”) reporting entity is defined in Note 1-A to the school board’s financial statements. Federal 

awards received directly from federal agencies, as well as federal awards passed through other 

government agencies, are included on the schedule. 

NOTE 2: 

BASIS OF ACCOUNTING 

The accompanying Schedule of Expenditures of Federal Awards is presented using the cash basis of 

accounting, which is described in Note 1E to the school board’s financial statements. 

NOTE 3: 

RELATIONSHIP TO FINANCIAL STATEMENTS 

Federal awards are reported in the school board’s financial statements as follows: 

Federal Sources 

General Fund $ 4,957,810 

Special Revenue 2,573,653 

Capital Projects 64,433 

$ 7,595,896 

NOTE 4: 

RELATIONSHIP TO FEDERAL FINANCIAL REPORTS 

Amounts reported in the accompanying schedule agree with the amounts reported in the related federal 

financial reports except for changes made to reflect amounts in accordance with accounting principles 

generally accepted in the United States. 

NOTE 5: 

MATCHING REVENUES 

For those funds that have matching revenues and state funding, federal expenditures were determined by 

deducting matching revenues from total expenditures. 

NOTE 6: 

NON-CASH PROGRAMS 

The commodities received, which are noncash revenues, are valued using prices provided by the United 

States Department of Agriculture. The total value included in the National School Lunch Program was 

$315,678 for the year ended June 30, 2011. 

-49-

Summary of Auditor’s Results 

Financial Statement Audit 



SCHEDULE OF FINDINGS AND QUESTIONED COSTS 


1. Type of auditor’s report issued? Unqualified Opinion 

2. Internal control over financial reporting: 

a. Material weakness(es) identified? Yes X No 

b. Significant deficiency(ies) identified that are not considered to be material weaknesses? 

Yes No X None Reported 

3. Noncompliance material to financial statements noted? Yes X No 

Federal Awards 

1. Internal control over major programs: 

b. Material weakness(es) identified? Yes X No 

b. Significant deficiency(ies) identified that are not considered to be material weakness(es)? 

Yes No X None Reported 

2. Type of auditor’s report issued on compliance for major programs. Unqualified Opinion 

3. Any audit findings disclosed that are required to be reported in accordance with section 510(a) of 

OMB Circular A-133? Yes X No 

4. The District’s major federal programs were: 

CFDA Number(s) 

Name of Federal Program or Cluster 

84.010A, 84.389A Title I, Part A Cluster 

84.027A, 84.391A, 84.392A Special Education Cluster 

84.394, 84.397 State Fiscal Stabiliation Fund Cluster 

84.410A Federal Education Jobs Fund 

5. Dollar threshold used to distinguish between type A and type B programs. $300,000 

6. Auditee qualified as low-risk auditee? X Yes No 

-50-



SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued) 


Financial Statement Findings 

No financial statement findings were reported. 

Federal Award Findings and Questioned Costs 

No federal award findings and questioned costs were reported. 

-51-



SCHEDULE OF RESOLUTIONS OF PRIOR YEAR AUDIT FINDINGS 


There were no findings or questioned costs to be resolved in the prior year's audit report. 

-52-

STATE COMPLIANCE SECTION



SCHEDULE OF SELECTED STATISTICS 


TYPE OF AUDIT PERFORMED: YELLOW BOOK SINGLE AUDIT X 

1. Calendar (Sections 160.041 and 171.031, RSMo) 

A. The number of actual calendar hours classes were in session and pupils were under the direction 

of teachers during this school year was as follows: 

Kindergarten - full day 

Grades 1-5 

Grade 6-8 

Grades 9-12 

Park Hill Day School 

1,119.84 Hours 

1,119.84 Hours 

1,155.04 Hours 

1,186.72 Hours 

1,104.00 Hours 

B. The number of days classes were in session and pupils were under the direction of teachers 

during this school year was 178 days for grades K-12. 

2. Average Daily Attendance (ADA) 

Full-time/ 

Regular Term Part-time Remedial Total 

Grades K-5 4393.47 8.06 4401.53 

Grades 6-8 2255.97 .02 2255.99 

Grades 9-12 2934.86 .00 2934.86 

Subtotal Regular Term 9584.30 8.08 9592.38 

Summer School Subtotal 100.09 

Total Regular Term Plus Summer School ADA 9692.47 

3. September Membership 

Full-Time & Part-Time 

September Membership FTE Count: 10,161.62 

4. Free and Reduced Priced Lunch FTE Count (Section 163.011(6), RSMo) 

Full-Time & Part-Time 

State FTE Total 

Free 2,052.28 

Reduced 479.00 

Total 2,531.28 

5. Finance 

A. As required by Section 162.401, RSMo, a bond was purchased for the 

District's treasurer in the total amount of 

$25,000 per 

occurrence 

B. The District’s deposits were secured during the year as required by Sections 

110.010 and 110.020, RSMo. True 

C. The District maintained a separate bank account for the Debt Service Fund in 

accordance with Section 165.011, RSMo. 

True 

-55-



SCHEDULE OF SELECTED STATISTICS 


5. Finance (continued) 

D. Salaries reported for educators in the October Core Data Cycle are supported 

by payroll/contract records. 

E. If a $162,326 or 7% x WADA transfer was made in excess of adjusted 

expenditure, the board approved a resolution to make the transfer, which 

identified the specific projects to be funded by the transfer and an expected 

expenditure date for the projects to be undertaken. 

F. The District published a summary of the prior year’s audit report within 30 

days of the receipt of the audit pursuant to Section 165.121, RSMo. 

True 

N/A 

True 

G. All above “false” answers must be supported by a finding or management 

letter comment. Finding # N/A 

Management Letter Comment # N/A 

6. Transportation (Section 163.161, RSMo) 

A. The school transportation allowable costs substantially conform to 5 CSR 

30-261.040, Allowable Costs for State Transportation Aid. True 

B. The District’s school transportation ridership records are so maintained as to 

accurately disclose in all material respects the average number of regular 

riders transported. 

True 

C. Based on the ridership records, the average number of students (non-disabled 

K-12, K-12 students with disabilities and career education) transported on a 

regular basis (ADT) was: Eligible ADT 5596.0 

Ineligible ADT 1290.5 

D. The District’s transportation odometer mileage records are so maintained as 

to accurately disclose in all material respects the eligible and ineligible 

mileage for the year. 

True 

E. Actual odometer records show the total district-operated and contracted 

mileage for the year was: 1,101,068 

Of this total, the eligible non-disabled and students with disabilities route 

miles and the ineligible non-route and disapproved miles (combined) was: 

Eligible miles 972,656 

Ineligible miles (non-route/disapproved) 128,412 

F. Number of days the District operated the school transportation system during 

the regular school year. 179 

G. All above “false” answers must be supported by a finding or management 

letter comment. Finding # N/A 

Management Letter Comment # N/A 

-56-



TRANSPORTATION COSTS ELIGIBLE FOR STATE AID 


Pupil 

Transportation 

Disabled 

Transportation 

Contracted Contracted Totals 

Noncertified Salaries $ 44,808 $ 0 $ 44,808 

Employee Benefits 11,483 0 11,483 

Purchased Services 3,551,330 1,073,876 4,625,206 

Supplies 400,131 136,978 537,109 

Capital Outlay 70,925 0 70,925 

$4,078,677 $1,210,854 $5,289,531 

-57-

PARK HILL SCHOOL DISTRICT FINANCIAL STATEMENTS with ...

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