District School Board - Seminole County Schools

Management’s Discussion and AnalysisAs management of the District School Board of Seminole County, Florida, (the District),we offer readers of the District’s financial statements this Management’s Discussion andAnalysis (MD&A) of the financial activities of the District for the fiscal year ended June30, 2009. We encourage readers to consider the information presented here inconjunction with our financial statements found on pages 35 to 147 and with additionalinformation that we have furnished in our letter of transmittal, which can be found onpages 3 to 14 of this report.Financial HighlightsKey financial highlights for the 2008-09 fiscal year are as follows:‣ The assets of the District exceeded its liabilities at June 30, 2009 by$606,869,714. Of this amount, $405,464 may be used to meet the government’songoing obligations to citizens and creditors.‣ The District’s total net assets increased by $2,321,881.‣ At June 30, 2009, the District’s governmental funds reported combined fundbalances of $118,438,937, a decrease of $11,443,074 over the prior year.‣ At June 30, 2009, the unreserved fund balance for the General Fund was$40,191,070 or 8.9 percent of total General Fund expenditures. The unreservedfund balance is available for spending at the District’s discretion.‣ The District’s total bonded debt (Bonds Payable and Certificates of Participation)increased by $5,880,000 or 2.3 percent during the current fiscal year. The keyfactor in this increase was the issuance of $20,675,000 in Certificates ofParticipation, Series 2009A.Overview of the Financial StatementsThis discussion and analysis is intended to serve as an introduction to the District’s basicfinancial statements. The District’s basic financial statements are comprised of threecomponents: 1) government-wide financial statements, 2) fund financial statements, and3) notes to the basic financial statements.Government-Wide Financial Statements. The government-wide financial statementsare designed to provide readers with a broad overview of the District’s finances, in amanner similar to a private-sector business.The statement of net assets presents information on all of the District’s assets andliabilities, with the difference between the two reported as net assets. Over time,increases or decreases in net assets may serve as a useful indicator of whether thefinancial position of the District is improving or deteriorating.The statement of activities provides information showing how the government’s netassets changed during the most recent fiscal year. All changes in net assets arePage 21