Little Rock School District of Pulaski County, Arkansas

Combined financial statements and supplemental information with independent auditors' reports by Thomas and Thomas, certified accountants
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THE LifflE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Financial Statements and Supplemental Information (With Independent Auditors' Reports Thereon) June 30, 1992 CEFmr lEO i"VBI.IC ACCOIJNTA '"'J ,. l THE LimE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Financial Statements and Supplemental Information (With Independent Auditors' Reports Thereon) June 30, 1992 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Table of Contents June 30, 1992 INDEPENDENT AUDITORS' REPORT ON COMBINED FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES COMBINED FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types Combined Statement of Revenues and Expenditures - Budget and Actual - All Governmental Fund Types Notes to Combined Financial Statements SUPPLEMENTARY SCHEDULES Combining Schedule of Revenues and Expenditures - Special Revenue Funds Revenues of Salary, Operating and Debt Service Funds (Basis of Accounting as prescribed by Handbook II) Expenditures of Salary, Operating and Debt Service Funds (Basis of Accounting as prescribed by Handbook II) Reconciliation of General and Debt Service Fund Balances - Generally Accepted Accounting Principles and Handbook II Basis of Accounting Schedule of Long-Term Debt Reconciliation of Fund Equity - State Report and Financial Statements OTHER REPORTS AND SUPPLEMENTAL INFORMATION Independent Auditors' Report on Internal Control Structure Based on a Study and Evaluation Made as a Part of an Audit of the Basic Financial Statements Performed in Accordance with Government Auditing Standards and the Additional Tests Required by 0MB Circular A-128 1 4 6 8 12 30 31 32 33 34 37 39 THE LiffiE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Table of Contents (Continued) June 30, 1992 Independent Auditors' Report on Compliance Based on an Audit of the Basic Financial Statements Performed in Accordance with Government Auditing Standards 43 Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs 44 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs 45 Schedule of Findings and Questioned Costs 47 Independent Auditors' Report on Schedule of Federal Financial Assistance 48 Schedule of Federal Financial Assistance 49 ~cvtd~ CERTIFIED PUBLIC ACCOUNTANTS Little Rock Office 201 E. Markham Suite 500 Little Rock, AR 72201 (501) 375-2025 FAX (501) 375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana, AA 75502 (501) 773-2168 FAX (501) n4-72 INDEPENDENT AUDITORS' REPORT ON COMBINED FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the combined financial statements of The Little Rock School District of Pulaski County, Arkansas (the School District) as of, and for the year ended, June 30, 1992, as listed in the accompanying table of contents. The financial statements are the responsibility of the School District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, Audits of State and Local Governments. Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described more fully in Note l(F) of the combined financial statements, the School District does not record the valuation base of its property, buildings, and equipment at historical cost in the general fixed asset group of accounts as required by generally accepted accounting principles. In our opinion, except for the effect of the failure to record the general fixed asset account group at historical cost, as discussed in the preceding paragraph, the combined financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the Little Rock School District of Pulaski County, Arkansas as of June 30, 1992, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. 1 Members American Institute of Certified Public Accountants Private Compan,es Practice Section and S.E.C. Practice Sact,on The Board of Directors The Little Rock School District of Pulaski County, Arkansas Page Two Our audit was made for the purpose of forming an op1n1on on the combined financial statements taken as a whole. The supplemental information included at pages thirty through thirty-seven is presented for purposes of additional analysis and is not a required part of the basic combined financial statements. The information has been subjected to the procedures applied in the audit of the basic combined financial statements of the Little Rock School District of Pulaski County, Arkansas and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. November 20, 1992 Little Rock, Arkansas 2 ~ ef ~ Certified Public Accountants COMBINED FINANCIAL STATEMENTS 3 ASSETS AND AMOUNTS TO BE PROVIDED General Assets: Cash (Note 9) $ 2,198,349 Investments (Note 9) 7,967,389 Property taxes receivable (Note 2, 4 and 11) 2,789,594 Accrued interest and other receivables 156,799 Due from other governments (Notes 7 and 10) 8,471,471 Due from other funds 2,099,269 Inventories 445,366 Fixed assets (Notes 1 (Fl and 3) Prepaids and deferred charges 13,885 Total assets 24,142,122 Amounts to be provided for retirement of general long-term debt (Note 4) Total assets and amounts to be provided s 24,142,122 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Balance Sheet - All Fund Types and Account Groups June 30, 1992 Fiduciary Governmental Fund TYJ!es Fund TYJ!e Account General Special Debt Capital Fixed Revenue Service Projects Agency Assets $ $ $ $ 119,128 $ l, 346,553 24,341,447 786,957 790,002 6,769 74,902 11,682 2,359,706 34,954 225,863 170,233 115,610 157,152,108 384,157 3,828,638 1,209,113 24,642,212 1,088,000 157,152,108 s 3,828,638 s 1,209,113 s 24,642,212 $___1_,_QJ38,000 s 157,152,108 The accompanying notes are an integral part of this financial statement. 4 GrOUJ:!S General Total Long-term (Memorandum Debt Only) $ $ 2,317,477 34,442,346 3,579,596 250,152 11,091,994 2,269,502 560,976 157,152,108 398,042 212,062,193 88,713,241 88,713,241 s 88,713,241 s 300,775,434 (Continued) LI'rrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Balance Sheet - All Fund Types and Account Groups (Continued) June 30, 1992 Fiduciary Governmental Fund Tvt>es Fund TYl!e Account Grou11s General General Total Special Debt Capital Fixed Long-Term (Memorandum LIABILITIES AND FUND EQUITY General Revenue Service Projects Agency Assets Debt Only} Liabilities: Bank overdrafts (Note 9) $ $ 437,665 $ $ 189,553 s $ s s 627,218 Accounts payable 4,007,998 127,338 489,281 6,320 4,630,937 Accrued payroll taxes and withholdings 3,534,812 3,534,812 Accrued interest payable 74,000 33,048 107,048 Retainage payable (Note 3) 154,195 154,195 Estimated claims liability (Note 13) 230,295 230,295 Deferred revenues 643,181 643,181 Due to school activity groups and other agencies (Note 8) 1,081,680 1,081,680 Due to other funds 170,233 2,099,269 2,269,502 Notes payable (Note 11) 13,815,000 13,815,000 Long-term debt payable (Note 4) 88,713,241 88,713,241 Total liabilities 21,832,338 1,208,184 33,048 2,932,298 1,088,000 88,713,241 115 I 807 I 109 Commitments and Contingencies (Notes 3, 4, 6, 7, 10, 12 and 13) Fund Equity: Investment in general fixed assets (Notes l(f) and 3) 157,152,108 157,152,108 Fund Balance: Reserved for prepaids and deferred charges 13,885 384,157 398,042 Reserved for inventories 445,366 115,610 560,976 Unreserved: Board designated: Debt service 791,908 791,908 Capital projects 21,709,914 21,709,914 New Futures 245,834 245,834 Risk management (Note 13) 838,007 838,007 Food services and other 2,504,844 2,504,844 Undesignated 766,692 766,692 Total fund equity 2,309,784 2,620,454 1,176,065 21,709,914 157,152,108 184,968,325 Total liabilities and fund equity $ 24,142,122 $ 3,828,638 $ 1,209,113 $ 24,642,212 $ 1,088,000 $ 157,152,108 $ 88 I 713 I 241 $ 300,775,434 The accompanying notes are an integral part of this financial statement. 5 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types REVENUES Local Sources: Property taxes (Notes 2 and 11) Tuition Interest Food sales Food services and other Magnet schools funding (Note 10) Total local sources State Sources: Minimum foundation programs (Note 7) Desegregation settlement (Note 7) Magnet schools funding (Note 10) Handicapped children aid Vocational aid Transportation aid Compensatory education Other Total state sources Federal sources: Elementary and Secondary Education Act Vocational Education Act Food services Energy conservation Other Total federal sources Total revenues s Year Ended June 30, 1992 General 49,462,903 337,261 559,379 860,839 51,220,382 27,971,570 8,637,482 824,870 1,187,062 2,645,763 858,743 1,993,962 44,119,452 9 385 9 385 95,349,219 s Special Revenue 28,813 85,146 1,382,381 1,210,367 3,205,253 5,911,960 6,943,921 795 781 7,739,702 4,039,242 362,342 3,981,422 191,146 666,004 9,240,156 22 I 891,818 The accompanying notes are an integral part of this financial statement. 6 Debt Capital Service Projects s 14,379,338 s 59,717 864,251 34,727 123,462 14,562,517 898,978 14,562,517 898,978 s Total (Memorandum Only) 63,842,241 366,074 1,568,493 1,382,381 2,105,933 3,328,715 72,593,837 27,971,570 8,637,482 6,943,921 824,870 1,187,062 2,645,763 858,743 2,789,743 51,859,154 4,039,242 362,342 3,981,422 191,146 675,389 9,249,541 133,702,532 (Continued) THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues, Expenditures and Changes in Fund Balance All Governmental Fund Types (Continued) EXPENDITURES Instructional services: Basic programs Exceptional child programs Vocational-technical programs Adult continuing education programs Compensatory education programs Other instructional programs Total instructional services Instructional support services Pupil transportation services Operation and maintenance of plant School administration General administration Capital outlay (Note 3) Principal retirement of long-term debt (Note 4) Interest charges (Notes 4 and 11) Fiscal agent's fees Debt issuance costs (Note 5) Food services Community services Indirect and other (Note 10) Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Contributed assets Proceeds of long-term debt (Note 4) Operating transfers in (Notes 2 and 10) Operating transfers out (Notes 2 and 10) Proceeds from refunding bonds (Notes 4 and 5) Payment to refunded bond escrow agent (Notes 4 and 5) Total other financing sources (uses) Excess of revenues and other financing sources over (under) expenditures and other uses Fund equity, beginning of year Fund equity, end of year Year Ended June 30, 1992 General $ 43,242,212 5,347,249 4,829,699 30,596 2,537,077 1,326,910 57,313,743 9,854,068 5,685,460 9,516,578 5,992,218 6,384,798 4,023,313 429,104 123,344 1,202,394 32,450 100,557,470 (5,208,251) 71,478 6,709,905 6,743,250 (6,184,919) 7,339,714 2,131,463 178,321 $ 2,309,784 Special Revenue $ 8,994,938 576,253 1,089,353 793,166 3,144,831 207,537 14,806,078 1,736,879 1,055,206 1,315,748 763,400 5,897,064 298,553 618,612 26,491,540 (3,599,722) 3,738,667 3,738,667 138,945 2,481,509 $ 2,620,454 The accompanying notes are an integral part of this financial statement. 7 $ Debt Service 5,541,372 4,966,579 65,518 405,834 10,979,303 3,583,214 2,446,252 (6,388,642) 7,499,000 (7,265,000) (3,708,390) (125,176) 1,301,241 $ 1,176,065 s Capital Projects 6,904,569 408,450 7,313,019 (6,414,041) 15,433,600 40,067 (394,675) 15,078,992 8,664,951 l3 I 044 I 963 $ 21, 709 I 914 Total {Memorandum Only) $ 52,237,150 5,923,502 5,919,052 823,762 5,681,908 1,534,447 72,119,821 11,590,947 5,685,460 10,571,784 5,992,218 7,700,546 11,691,282 5,541,372 5,395,683 65,518 937,628 5,897,064 1,500,947 651,062 145,341,332 (11,638,800) 71,478 22,143,505 12,968,236 (12,968,236) 7,499,000 (7,265,000) 22,448,983 10,810,183 17,006,034 $ 27,816,217 REVENUES Local Sources: Property taxes (Notes 2 and 11) Tuition Interest Food sales Food services and other Magnet schools (Note 10) Total local sources State Sources: Minimum foundation programs (Note 7) Desegregation settlement (Note 7) Magnet schools funding (Note 10) Handicapped children ai d Vocational aid Transportation aid Compensatory education Other Total state sources Federal Sources: Elementary and Secondary Education Act Vocational Education Act Food service Energy conservation Other Total federal sources Total revenues THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues and Expenditures - Budget and Actual $ All Governmental Fund Types Year Ended June 30, 1992 General Fund Variance - Favorable Budget ,Actual (Unfavorable) 54,331,079 $ 49,462,903 $ (4,868,176) 300,000 337,261 37,261 700,000 559,379 (140,621) 814,936 860,839 45,903 56,146,015 51,220,382 (4,925,633) 28,118,907 27,971,570 (147,337) 8,637,482 8,637,482 629,752 824,870 195,118 1,174,485 1,187,062 12,577 2,983,190 2,645,763 (337,427) 874,311 858,743 (15 , 568) 2,022,134 1,993,962 (28,172) 44,440,261 44,119,452 (320,809) 668,744 9 385 (659,359) 668 744 9 385 (659,359) 101,255,020 95,349,219 (5,905,801) The accompanying notes are an integral part of this financial statement. 8 S11ecial Revenue Funds Variance - Favorable Budget Actual (Unfavorable) $ $ $ 28,000 28,813 813 62,240 85,146 22,906 2,216,066 1,382,381 (833,685) 628,568 1,210,367 581,799 3,149,037 3,205,253 56,216 6,083,911 5,911,960 (171,951) 6,887,705 6,943,921 56,216 115,538 795,781 680,243 7,003,243 7,739,702 736,459 4,111,426 4,039,242 (72,184) 344,945 362,342 17,397 3,656,587 3,981,422 324,835 191,146 191,146 753,316 666,004 (87,312) 8,866,274 9,240,156 373,882 21,953,428 22,891,818 938,390 (Continued) THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues and Expenditures - Budget and Actual All Governmental Fund Types (Continued) Year Ended June 30, 1992 General Fund S~ecial Revenue Funds Variance - Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual ~Unfavorable) EXPENDITURES Instructional services $ 58,590,221 $ 57,313,743 $ 1,276,478 $ 14,304,440 $ 14,806,078 $ (501,638) Instructional support services 11,104,163 9,854,068 1,250,095 1,842,200 1,736,879 105,321 Pupil transportation services 5,794,189 5,685,460 108, 729 Operations and maintenance of plant 10,453,402 9,516,578 936,824 1,140,670 1,055,206 85,464 School administration 5,804,622 5,992,218 (187,596) General administration 6,688,708 6,384,798 303,910 1,211,821 1,315,748 (103,927) Capital outlay (Note 3) 890,963 4,023,313 (3,132,350) 712,375 763,400 (51,025) Principal retirement of long term debt (Note 4) Interest charges (Notes 4 and 11) 429,104 (429,104) Fiscal agent's fees Debt issuance costs 123,344 (123,344) Food service 8,229,194 5,897,064 2,332,130 Community services 900,750 1,202,394 (301,644) 467,626 298,553 169,073 Indirect and other (Note 10) 636,437 32,450 603,987 478,143 618,612 (140,469) Total expenditures 100,863,455 100,557,470 305,985 28,386,469 26,491,540 1,894,929 Excess of revenues over (under) expenditures 391,565 (5,208,251) (5,599,816) (6,433,041) (3,599,722) 2,833,319 OTHER FINANCING SOURCES (USES) Contributed assets 71,478 71,478 Proceeds of long-term debt (Note 4) 4,500,000 6,709,905 2,209,905 Operating transfers in (Notes 2 and 10) 911,453 6,743,250 5,831,797 3,738,667 3,738,667 Operating transfers out (Notes 2 and 10) (6,407,083) (6,184,919) 222,164 Proceeds from refunding bonds (Notes 4 and 5) Payment to refunded escrow agent (Notes 4 and 5) Total other financing sources (uses) (995,630) 7,339,714 8,335,344 3,738,667 3,738,667 Excess of revenues and other financing sources over (under) expenditures and other financing uses (604,065) 2,131,463 s 2,735,528 (2,694,374) 138,945 s 2,833,319 Fund equity, beginning of year 634,842 178,321 2,725,577 2,481,509 Fund equity, end of year s 30,777 s 2,309,784 s 31,203 s 2,620,454 (Continued) The accompanying notes are an integral part of this financial statement. 9 REVENUES Local sources: Property taxes (Notes 2 and 11) Tuition Interest Food sales Food services and other Magnet schools and other (Note 10) Total local sources State Sources: Minimum foundation programs (Note 7) Desegregation settlement (Note 7) Magnet schools funding (Note 10) Handicapped children aid Vocational aid Transportation aid Compensatory education Other Total state sources Federal Sources: Elementary and Secondary Education Act Vocational Education Act Food service Energy conservation Other Total federal sources Total revenues THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues and Expenditures - Budget and Actual All Governmental Fund Types (Continued) Year Ended June 30, 1992 $ 8,828,760 8,828,760 8,828,760 Debt Service Fund Actual $14,379,338 59,717 123,462 14,562,517 14,562,517 Variance - Favorable (Unfavorable) $ 5,550,578 59,717 123,462 5,733,757 5,733,757 $ The accompanying notes are an integral part of this financial statement. 10 Capital Projects Fund $ Actual 864,251 34,727 898,978 898,978 Variance - Favorable (Unfavorable) $ 864,251 34,727 898,978 898,978 (Continued) EXPENDITURES Instructional services Instructional support services Pupil transportation services Operations and maintenance of plant School administration General administration Capital outlay (Note 3) Principal retirement of long-term debt (Note 4) Interest charges (Notes 4 and 11) Fiscal agents' fees Debt issuance cost (Note 5) Food service Community services Indirect and other (Note 10) Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Contributed assets Proceeds of long-term debt (Note 4) Operating transfers in (Notes 2 and 10) Operating transfers out (Notes 2 and 10) Proceeds from refunding bonds (Notes 4 and 5) THE LIHLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combined Statement of Revenues and Expenditures - Budget and Actual s All Governmental Fund Types (Continued) Year Ended June 30, 1992 3,457,525 5,254,171 6,500 8,718,196 110,564 Debt Service Fund s 5,541,372 4,966,579 65,518 405,834 10,979,303 3,583,214 Variance - Favorable (Unfavorable) s (2,083,847) 287,592 (59,018) (405,834) (2,261,107) 3,472,650 s Payment to refunded escrow agent (Notes 4 and 5) ____ _ Total other financing sources (uses) 2,446,252 (6,388,642) 7,499,000 (7,265,000) (3,708,390) 2,446,252 (6,388,642) 7,499,000 (7,265,000) (3,708,390) Excess of revenues and other financing sources over (under) expenditures and other financing uses Fund equity, beginning of year Fund equity, end of year s 110,564 110,564 (125,176) 1,301,241 $ 1,176,065 The accompanying notes are an integral part of this financial statement. 11 $ (235,740) Capital Projects Fund Budget 28,586,236 346,966 28,933,202 (28,933,202) 15,058,276 15,058,276 (13,874,926) 13,874,926 s 6,904,569 408,450 7,313,019 (6,414,041) 15,433,600 40,067 (394,675) 15,078,992 8,664,951 13,044,963 $ 21,709,914 Variance - Favorable (Unfavorable) $ 21,681,667 (61,484) 21,620,183 22,519,161 375,324 40,067 (394,675) 20,716 $ 22,539,877 THE Lli'l'LE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements June 30, 1992 Note 1: Summary of Significant Accounting Policies The accounting policies of The Little Rock School District of Pulaski County, Arkansas (the School District) conform to generally accepted accounting principles (GAAP) applicable to governmental units, except for the practice of recording various components of its general fixed assets at appraised values rather than at cost (Note l(F)). The following is a summary of the more significant accounting policies. (A) Fund Accounti.ng The accounts of the School District are organized on the basis of funds or groups of accounts, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues and expenditures. The following paragraphs describe the fund types and account groups used by the School District. Governmental Fund Types: - The General Fund is the primary operating fund of the School District. All general tax revenues and other revenues that are not allocated by law or contractual agreement to another fund are accounted for in this fund. The general operating expenditures, the fixed charges, and the capital improvement costs that are not paid through other funds are paid from this fund. The Special Revenue Funds are used to account for the proceeds of specific revenue sources, other than major capital projects, requiring separate accounting because of legal or regulatory provisions or administrative action. The Debt Service Funds are used to account for the accumulation of resources for the payment of principal, interest, and fees on long-term general obligation debt. - The Capital Projects Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities. Fiduciary Fund Type: The Agency Fund is used to account for the funds of school activity groups and other agencies. The assets in this fund are held by the School District in a fiduciary capacity. 12 THE LimE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 1: Summary of Significant Accounting Policies (Continued) (A) Fund Accounting (Continued) Account Groups: - The General Fixed Asset Account Group is established to account for the fixed assets of the School District. - The General Long-Term Debt Account Group is established to account for the long-term debt that is guaranteed by the full faith and credit of the School District. (BJ Basis of Accounting The modified accrual basis of accounting is utilized by all funds. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, except for unmatured interest on general long-term debt which is recognized when the interest is due. Resources from special grants are generally recognized as revenues to the extent of expenditures made under the provisions of the grants. Significant funds received before the revenue recognition criteria have been met are reported as deferred revenue. (C) Budgetary Accounting Certain revenues and expenditures are budgeted in accordance with various legal .requirements which govern the School District's operations. The annual budget is submitted to the Arkansas State Department of Education (the State) for approval. Revisions by subsequent budget amendments, if any, are not submitted to the State. Budgeted revenues and expenditures were approved by the Board of Directors at their June 22, 1991 meeting. A final revision was adopted January 23, 1992. The budgets formally approved by the Board of Directors include the General Fund (salary, desegregation and other operating) and the Debt Service Fund, as required by the State (Handbook II), and certain construction and special revenue expenditures. The budgets of the School District utilized in its internal budgetary accounting systems and for financial reporting vary in some regards from those required by applicable state statutes to be formally approved by the Board of Directors. 13 THE Lli'rLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 1: SUD1111ary of Significant Accounting Policies (Continued) (CJ Budgetary Accounting (Continued) The budgets approved by the Board of Directors are utilized in the preparation of the Combined Statement of Revenues and Expenditures - Budget and Actual. However, the approved budgets in some cases reflect beginning fund balance as revenue whereas these financial statements do not. In addition, certain budgeted items have been reclassified for financial statement presentation to facilitate comparison to the classifications required in reporting the related actual amounts. Such reclassifications relate primarily to operating transfers and proceeds of long-term debt. In addition, certain amounts (primarily property tax revenues and food service expenditures) are budgeted in accordance with accounting methods required by applicable state regulations with the related actual amounts being reflected in accordance with generally accepted accounting principles. (DJ Investments Investments are stated at cost, which approximates market value. Investments consist of certificates of deposit, repurchase agreements, and treasury bills. (E) Inventories Inventories are stated at the lower of cost (first-in, first-out) or market (net realizable value). Inventories are recorded as expenditures when transferred to schools and departmental offices for utilization. (F) General Fixed Assets In the general fixed asset group of accounts, land is valued at historical cost. Certain other assets are stated at costs estimated by independent appraisers and by School District employees at various appraisal dates. Valuations of land improvements and buildings are intended to approximate fair market values at the latest appraisal dates (1965 and 1971, respectively)
furniture and fixtures are stated at appraisal values determined for insurance purposes in 1975. Additions since the date of the last appraisals are recorded at cost. The amount that such valuations vary from historical cost has not been determined. 14 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 1: Summary of Significant Accounting Policies (Continued) (G) Property Taxes Property taxes are recognized and recorded as current period revenues in accordance with the provisions of Interpretation 3 of the National Council of Governmental Accounting's (NCGA) Statement 1, which states that such revenues should be recognized when they become "measurable and available." The School District defines "measurable and available" to mean property tax collections received by the School District within sixty days after its year end. (HJ Interfrmd Transactions Quasi-external transactions are accounted for as revenues or expenditures. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. (I) Accumulated Vacation and Sick Leave School District employees do not receive vacation pay as such. Certain employees receive additional compensation if they work more than their contracted days in any particular year. These employees are paid upon termination for any unpaid days accumulated in this manner. The School District's liability for this type of compensated absence is not considered material and, therefore, has not been recorded in the accompanying financial statements. Accumulated sick pay or personal leave days are not paid upon termination. Accordingly, the School District has not recorded a liability in the accompanying financial statements since payment is not probable and the amount of ultimate payment, if any, is not determinable. (J) Encumbrances Encumbrances for goods or purchased services are documented by purchase orders or contracts. Encumbrances outstanding at year end are not reported as expenditures for financial statement purposes as the related goods have not been received or the services performed. 15 THE LI'rrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 1: Summary of Significant Accounting Policies (Continued) (K) Total Columns on Combined Statements Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in fund equity in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. (L) Tax Exempt Status The School District is a tax exempt organization since its revenues are nontaxable under Section 115 of the Internal Revenue Code. Note 2: Property Taxes Pulaski County, Arkansas (the County) levies a property tax each February on the assessed value listed as of January 1 of the prior year for all real and personal property located in the County. Assessed values are established by the County Assessor's office. All taxes are due from property holders on an installment basis by October 10. Taxes to be levied upon January 1, 1992 assessment values are as follows: Rea,l Estate Personal property Utilities Valuation (Millions) $1,100 379 68 $ 1,547 Millage General Debt Fund Service 34.0 34.0 35.6 9.9 9.9 10.1 Property tax revenues of the Debt Service Fund totaling approximately $6,349,000 (the excess of funds necessary to meet current debt service requirements) have been transferred to the General Fund during the year ended June 30, 1992 as provided for under the statutes of the State of Arkansas. 16 THE LI'.l'rLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 3: Fixed Assets The following is a summary of the major components of fixed assets of the School District: Balance Balance June 30, 1991 Additions Transfers June 30, 1992 Land s 2,861,085 s $ s 2,861,085 Land improvements 925,255 925,255 Buildings ll0,329,255 3,005,659 2,503,834 ll5,838,748 Furniture and equipment 28,841,397 4,595,568 33,436,965 Construction-in- progress 2,503,834 4,090,055 (2,503,834) 4,090,055 Totals s 145,460,826 s 11,691 c 282 s s 157,152,108 The School District has entered into contracts for the construction or renovation of various facilities as shown below. Retainage payable in relation to these contracts totaled approximately $154,000 at June 30, 1992. June 30, 1992 Balances Project Expended/ Co111R1itment Authorization Accrued Remaining Cloverdale Elementary and Junior High s 2,824,881 s 2,800,630 s 24,251 Forrest Heights Elementary 4,168,501 658,297 3,510,204 Other projects 1,114,369 631,128 483,241 s 8,107,751 s 4,090,055 s 4,017,696 The commitments shown above reflect only those balances for contracts that had been entered into as of June 30, 1992. The entire fund balance for the Capital Projects Fund is designated for renovations and additions to currently held fixed assets, as well as for acquisitions of new assets. 17 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 4: Long-Term Debt On September 24, 1990, the School District received $6,000,000 of desegregation loan proceeds from, and executed a promissory note to, the State of Arkansas. On March 10, 1992, the School District received an additional $4,500,000 of desegregation loan proceeds from the State of Arkansas (see Note 7). The principal of each note will bear interest beginning on the seventh anniversary of the date of the note at the rate of 3% per annum and is to be repaid in twenty equal annual installments beginning seven years after the execution of the loan. The notes are secured by liens in favor of the State on certain new and existing millages. Under terms of the desegregation settlement agreements, if at any time prior to December 31, 2000, the composite scores of the School District's black students (excluding special education students) on a standardized test agreed upon by the State and the School District are 90% or greater of the composite scores of the School District's white students (excluding special education students), any principal or interest payments previously paid on the desegregation loan will be repaid to the School District and any outstanding loan balances forgiven. A summary of all long-term debt transactions of the School District for the year ended June 30, 1992, is as follows: Balance at July 1, 1991 New debt issued: Construction school bonds - Capital Projects Fund Desegregation loan - General Fund Present value of capital lease obligations related to purchases of equipment and buses - General Fund Refunding school bonds (Note 5) - Debt Service Fund Total new debt issued Debt retired: School bonds principal payments Capital lease obligations Revolving loan Pulaski County, Arkansas Special School District (Note 7) Refunded school bonds (Note 5) Total debt retired Balance at June 30, 1992 18 $ 71,877,108 15,433,600 4,500,000 2,209,905 22,143,505 7,499,000 29,642,505 2,196,000 2,083,847 60,000 1,201,525 5,541,372 7,265,000 12,806,372 $ 88 I 713 I 241 - THE Lli'l'LE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 4: Long-Term Debt (Continued) Long-term debt at June 30, 1992 is comprised of the following: School bonds, construction and refunding issues Pulaski County Special School District (Note 7) Arkansas State Department of Education revolving loan Arkansas State Department of Education desegregation loans Capital lease obligations, secured by transportation, computer and other equipment Principal Balance $ 64,475,150 8,750,798 120,000 10,500,000 4,867,293 $ 88,713,241 Interest Rates 3.25% - 7.2% 4.2% - 10% 9% 3% 6.6% - 8.9% Maturities Semiannually
through 2020 Semiannually
through 2003 Semiannually
through 1994 Annually
1998-2018 Various
through 1995 The annual requirements to amortize all principal balances of long-term debt outstanding at June 30, 1992 are as follows: Year Ending June 30 Alllount 1993 s 6,230,799 1994 5,138,449 1995 4,983,375 1996 4,206,277 1997 4, 243,878 Thereafter 63 . 910,463 s 88,713,241 Total interest payable in the future on debt outstanding at June 30, 1992, excluding amounts for the desegregation loan, is approximately $54.2 million. Interest on the desegregation loans, assuming twenty year amortizations beginning in 1998 and 1999, would approximate $3 million. 19 II 11 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 5: Advance Bond Refunding On May 27, 1992, the School District issued $7,499,000 in refunding bonds to advance refund $7,265,000 of outstanding 1987 construction bonds ("refunded bonds"). The net proceeds of approximately $7,269,000 (after payment of underwriting fees, insurance, and other issuance costs) were used to satisfy the trustee of the refunded bonds, which were called on June 1, 1992. As a result of the advance refunding, the School District reduced its total debt services payments over the next 15 years by approximately $587,000, which resulted in an economic gain (difference between the present values of the debt service payments on the old and new debt) of approximately $386,000. The balance of unamortized deferred bond issuance cost related to the 1987 bonds of approximately $179,000 was written off resulting in a loss for financial statement purposes in that amount. Note 6: Retirement Plans Most School District employees are required by law to be covered by the Arkansas Teacher Retirement System (ATRS) except for certain bus drivers, cafeteria workers and janitors, who are covered by the Arkansas Public Employees Retirement System (APERS) . Effective July 1, 1991, all new employees of the School District, including part-time employees, must be members of the Arkansas Teacher Retirement System. Both systems are multiple-employer, cost-sharing public employee retirement systems which also provide death and disability benefits. Benefits for both systems are established by state statute. ATRS employees who retire under the system are entitled to a retirement benefit, payable monthly for life, equal to 1.95 percent of their final average salary for each contributory year of credited service and 1. 23 percent of their final average salary for each non-contributory year of credited service. APERS employees who retire are entitled to a retirement benefit, payable monthly for life, equal to 1.872 percent for contributory employees and 1.55 percent for non-contributing employees of average pay for each year of credited service, or a minimum of $150. Under both ATRS and APERS, benefits fully vest upon reaching 10 years of service. Employees electing early retirement receive reduced retirement benefits. 20 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 6: Retirement Plans (Continued) Contribution requirements are established by State statute for both systems. For the year ended June 30, 1992, employees covered by the system had the option to contribute a portion (generally 6%) of their salary. Federal funds of the School District were used to provide the matching contribution for all eligible ATRS employees who are paid through Federal programs, while the state provided the matching contribution for other ATRS employees. The School District provides for the matching for APERS employees. The payroll for employees covered by the ATRS for the year ended June 30, 1992, was approximately $85,000,000 and the payroll for employees covered by APERS for the same period was approximately $6,000,000. The School District's total payroll was approximately $91,000,000. For the year ended June 30, 1992, retirement and matching contributions for School District employees, and the related percentages of covered payroll, are as follows: $ In Thousands ATRS APERS Total Employee contributions $ 1,970 2.32% s 18 .30% $ 1,988 2.62% Matching Contributions: School District 230 3.83 230 3.83 State 9,634 11. 33 9,634 11. 33 Federal 417 ______,_j_2 417 ______,_j_2 $ 12,021 14.14% $ 248 4.13% $ 121269 18.27% The pension benefit obligation (PBO) is a standard disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess each system's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make certain comparisons. Neither ATRS or APERS make separate measurements of assets and PBO for individual employers, thus such information is not available as it relates to the School District. 21 THE LI'rfLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 6: Retirement Plans (Continued) The total PBO, net assets available for benefits and funded status at June 30, 1991, the date of the latest actuarial valuation, is as follows. In Thousands ATRS APERS Total Pension benefit obligation $ 2,543,856 $ 1,263,582 $ 3,807,438 Net assets available for benefits 2,434,314 11516,777 3,951,091 Unfunded (overfunded) pension benefit obligation $ 109,542 $ (253,195) $ (143,653) Ten year historical trend information showing each system's progress in accumulating sufficient assets to pay benefits when due is presented in each system's June 30, 1991 comprehensive annual financial report. Note 7: Desegregation and Related Funding Issues During 1982, the School District brought litigation to consolidate the three school districts in Pulaski County, Arkansas. This was an interdistrict school desegregation case involving complex federal litigation in both trial and appellate courts. In relation to the remedy issues of this litigation, the Pulaski County Special School District (PCSSD) and the Little Rock School District entered into agreements, which were approved by the Courts, for the transfers of certain schools, buildings and related personal property between the districts. The Little Rock School District assumed approximately $14. 6 million in long-term debt (see Note 4) related to the properties transferred to them. The transfer of property also resulted in approximately $300 million in property assessment values being transferred to the Little Rock School District effective with the January 1, 1987 assessments. The litigation also resulted in the courts ordering the School District to initiate certain desegregation programs with the Arkansas Department of Education (the State) being liable for certain aspects of funding the programs. All major financial aspects of this litigation have been settled and accepted by the courts. 22 THE LlrrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 7: Desegregation and Related Funding Issues (Continued) Under the terms of the settlement agreements, the Arkansas Department of Education agreed to pay the School District a total of $71 million, net of $2 million in legal fees awarded the NAACP Legal Defense and Education Fund, Inc. This amount included approximately $57,130,000 for compensatory education and other desegregation programs and $13,870,000 for cash equivalent payments in lieu of formula guarantees. In addition, the State agreed to loan the School District up to $20 million between July 1, 1989 and July 1, 1999. The loan proceeds are to be used for desegregation purposes and are secured by liens in favor of the State on certain new and existing millages. As of June 30, 1992, $10,500,000 has been received in regard to the loan provisions of the agreement (see Note 4). During the year ended June 30, 1992, the School District recorded settlement proceeds of $8,637,482 in the general fund for compensatory education programs and other desegregation expenses. Included in this amount is a receivable of $4,889,954 due the School District on July 1, 1992 for reimbursement of desegregation expenditures made prior to year end. In addition, the School District received and recorded additional cash equivalent payments in lieu of Minimum Foundation Program Aid (HFPA) formula guarantees totaling $2,000,000 which are recorded as HFPA revenue in the general fund. Net amounts of future funding expected to be received under the above described agreements (excluding potential loan proceeds) at June 30, 1992 are as follows: MFPA Year Ending Desegregation Guarantees Total June 30, 1993 $ 8,926,606 $ 2,000,000 $ 10,926,606 June 30, 1994 8,094,112 2,000,000 10,094,112 June 30, 1995 6,042,591 2,000,000 8,042,591 June 30, 1996 3,829,942 1,870,114 5,700,056 Future years 683,125 683,125 Total $ 27,576,376 $ 7,870,114 $ 35,446,490 23 THE LITI'LE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements {Continued) June 30, 1992 Note 8: Agency Funds As the School District serves only in a fiduciary capacity for the school activity funds and other agency funds, related transactions are not reflected in the combined statement of revenues, expenditures and changes in fund balance. A summary of transactions in these school activity and other agency funds during the year ended June 30, 1992, and the resulting change in amounts due to the school activity groups and other agencies, is as follows: Due to school activity groups and other agencies at June 30, 1991 Transactions during the year ended June 30, 1992: School activities and other agencies revenues Interest on investments School activities and other agencies expenditures Due to school activity groups and other agencies at June 30, 1992 Note 9: Cash and Investments s 1,008,865 3,587,373 37,043 {3,551,601) $ 1,081,680 Arkansas statutes authorize school districts to deposit their funds in any bank located in the State of Arkansas. In addition, they may invest in bonds of the United States of America, general obligation bonds of the State of Arkansas, and bank certificates of deposit or repurchase agreements from a bank or savings and loan that has pledged direct obligations of, or obligations which are fully guaranteed by, the United States of America. At June 30, 1992, the total "carrying amount" of deposits with financial institutions was $2,317,477 {exclusive of $627,218 reflected as bank overdrafts for financial statement purposes). The related "bank balance" was $3,596,590 and is categorized as follows: Amount insured by the FDIC Amount collateralized with securities held by the Federal Reserve Bank in the School District's name Uncollateralized Total bank balance 24 $ 151,884 1,300,000 2,144,706 $ 3,596,590 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 9: Cash and Investments (Continued) Investments of the School District (including Agency Funds) at June 30, 1992, are summarized below. Investments, which are all represented by specific identifiable investment securities, are classified as to credit risk by the three categories described as follows: Category l - Insured or registered, or securities held by the School District or its agent in the School District's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the School District's name. Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. Total Category Carrying l 2 3 Amount Certificates of deposit $ 150,000 $ 300,000 $ ..:. $ 450,000 Treasury bills 30,442,346 30,442,346 Repurchase agreements 3,550,000 3,550,000 $ 30,592,346 $ 300,000 $ 3,550,000 $ 34,442,346 Note 10: Maqnet School Funding As a part of its desegregation program (see Note 7), the Federal court directed the School District to participate in a "Magnet School'' system and has vested control of these schools in a Magnet Review Committee (MRC). Six schools from the Little Rock School District are organized as a separate reporting group under the control of the MRC. During the year ended June 30, 1992, the approved funding level of these schools ("the Magnets") totaled $3,682 per average daily membership (ADM). The State contributes one half of the cost ($1,841 per ADM) with Pulaski County Special School District (PCSSD), North Little Rock School District (NLRSD) and Little Rock School District (LRSD) sharing the balance of the cost. The State pays its portion of the NLRSD and PCSSD contributions directly to the respective districts for subsequent remission to the LRSD. 25 II II II II I I I I I I THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 10: Magnet School Funding (Continued) Average daily membership: LRSD NLRSD PCSSD Total ADM Contribution rate - local sources Total schools' contributions Less operating transfers from General Fund to Magnet Fund Total magnet revenue - local sources Total magnet revenue - state sources 2,304.2 508.0 959.6 3,771.8 $ 11841 $ 6,943,920 (31 7381667) $ 312051253 $ 6,9431921 The Little Rock School District accounts for the Magnet School's operating revenues and expenses within its Special Revenue Fund since these funds are restricted to the operations of the Magnets. The Little Rock School District's portion of the total costs consists of $3,738,667 recorded as an operating transfer from the General Fund with the balance of $503,365 being indirect administrative cost contributions. ' ~ In addition to the above discussed operating revenues, the School District is also reimbursed by the NLRSD and PCSSD for debt service payments for capital improvements to the Magnets. The total of such reimbursements (which are reflected in revenues of the Debt Service Fund) for the year ended June 30, 1992 are as follows: North Little Rock School District Pulaski County Special School District Total Note 11: Note Payable $ 34,954 881508 $ 1231462 On April 14, 1992, the School District issued $13,815,000 of tax and revenue anticipation promissory notes (TRANS). The TRANS were issued to provide moneys needed to meet the School District's anticipated operating cash flow needs. The principal, plus accrued interest at a rate of 4.125% per annum , is payable in full December 31, 1992. Security for the TRANS is a pledge of revenue of the School District for the year ended June 30, 1992. Total interest charges incurred on notes payable, including balances under previous TRANS, for the year ended June 30, 1992 were approximately $429,000. 26 THE LITrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued) June 30, 1992 Note 12: Other Litigation and Contingencies At June 30, 1992, the School District is a defendant in various legal actions. Several actions involve claims by former employees asserting discriminatory hiring practices. The School District intends to vigorously contest these claims. Management and legal counsel are of the opinion that the likelihood of an unfavorable outcome is small and, thus, no provision has been made in the financial statements for any potential liabilities. During the year ended June 30, 1991, judgments were entered against the School District totaling approximately $580,000 to be paid to the District's former attorneys for services performed on behalf of the School District in the Pulaski County school desegregation case. The School District estimated and recorded a liability and related expenditure for $580,000 in the June 30, 1991 combined financial statements. The School District appealed the judgement and in January, 1992 the courts reduced the judgement to approximately $267,000 plus interest. This resulted in a change in accounting estimate of approximately $293,000 which is reflected as a reduction in legal expense for the year ended June 30, 1992. Note 13: Risk Management The School District is exposed to various risks of loss related to torts
theft of, damage to, and destruction of assets
errors and omissions
injuries to employees and students
and natural disasters. Effective October 1, 1990, the School District established a Risk Management Fund within the General Fund to account for and finance its uninsured risks of loss. Under this program, the Risk Management Fund provides coverage up to a maximum of $100,000 for each property damage, general liability or other covered claim. The School District purchases commercial insurance for claims in excess of coverage provided by the Fund and for all other risks of loss. Settled claims did not exceed loss fund or other commercial coverage during the past two fiscal years. The claims liability of $230,295 recorded in the General Fund at June 30, 1992 is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The claims liability includes an amount for claims that have been incurred but not reported. 27 I II I 11 I THE LlrrrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Notes to Combined Financial Statements (Continued} June 30, 1992 Note 13: Risk Management (Continued) Claims liability activity, by "loss year," for the year ended June 30, 1992 is as follows: Loss Year 1990-1991 1991-1992 Total Claims liability, beginning of year $ 252,068 $ $ 252,068 Claims paid (183,516} (141,496} (325,012} Current year claims and changes in estimates (291885) 333,124 303,239 Claims liability, end of year $ 381667 $ 191,628 $ 2301295 28 - -- --- J 1, I II 11 II I I SUPPLEMENTARY SCHEDULES 29 Schedule 1 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Combining Schedule of Revenues and Expenditures - Special Revenue Funds Year Ended June 30, 1992 Total Federal Food Other Magnet (Memorandum Programs Service Programs Schools Only) REVENUES Local assistance $ 28,813 $ 2,280,718 $ 397,176 $ 3,205,253 $ 5,911,960 State assistance 795,781 6,943,921 7,739,702 Federal financial assistance 5,258,734 3,981,422 9,240,156 Total revenues 5,287,547 6,262,140 1,192,957 10,149,174 22,891,818 EXPENDITURES Basic programs 1,750 103,650 8,889,538 8,994,938 Exceptional child programs 300,055 276,198 576,253 Vocational-technical programs 316,806 199,873 572,674 1,089,353 Adult continuing education programs 92,640 700,526 793,166 Compensatory education programs 3,119,617 19,881 5,333 3,144,831 Other instructional programs 13,349 12,286 181,902 207,537 Instructional support services 667,046 1,069,833 1,736,879 Operation and maintenance of plant 4,792 1,050,414 1,055,206 General administration 83,344 25,014 1,207,390 1,315,748 Capital outlay 274,348 322,154 35,704 131,194 763,400 Food services 5,897,064 5,897,064 Community services 298,553 298,553 Indirect and other 115 I 247 503,365 618,612 Total expenditures 5,287,547 6,219,218 i ,096,934 13,887,841 26,491,540 Excess of revenues over (under) expenditures 42,922 96,023 (3,738,667) (3,599,722) OTHER FINANCING SOURCES (USES) Operating transfer in for LRSD portion of Magnet funding 3,738,667 3,738,667 Total other financing sources 3,738,667 3,738,667 Excess of revenues over expenditures and other financing uses $ $ 42,922 $ 96,023 $ 138,945 30 LI'ITLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule 2 Rev.enues of Salary, Operating and Debt Service Funds (Basis of Accounting as Prescribed by Handbook II) Year Ended June 30, 1992 REVENUE - LOCAL SOURCES Current taxes Delinquent taxes 40% pullback Excess treasurer's fee Depository interest Revenue in lieu of taxes Miscellaneous and rents Interest on investments Athletic receipts REVENUE - COUNTY SOURCES County General Severance tax REVENUE - STATE SOURCES MFPA Apportionment Vocational Handicapped children Early childhood Orphan children Transportation Compensatory education Incentive fund Adult education Desegregation settlement Desegregation loan REVENUE - OTHER SOURCES Total General and Debt Service Funds (Memorandum Only) Unadjusted Adjusted Handbook II Net Handbook II Budget Revenues Adjustments Revenues $ 38,196,979 $ 3,600,000 21,222,860 140,000 400,000 224,667 420,850 300,000 85,000 64,590,356 73,419 11,000 84 419 28,118,907 73,419 1,474,485 629,752 147,050 3,000 2,983,190 874,311 1,798,665 624,119 8,637,482 4, 500,000 49,864, 380 38,196,979 $ 4,250,186 21,081,833 140,858 241,476 224,667 458,044 356,198 100,857 65,051,098 73,419 15,350 88 769 27,264,460 73,426 1,513,699 824,870 147,050 3,000 2,379,879 858,743 1,770,486 697,589 8,637,482 21,422 21,422 265,884 4,500,000 ---- 48,670,684 ----=2=6-=-5,L..
,8:....:8:....:4'- $ 38,196,979 4,250,186 21,081,833 140,858 241,476 224,667 458,044 377,620 100,857 65,072,520 73,419 15 350 88 769 27,264,460 73,426 1,513,699 824,870 147,050 3,000 2,645,763 858, 743 1,770,486 697, 589 8, 637,482 4,500,000 48, 936,568 Public Law 874 44,625 9,385 129,428 394,675 9,385 129, 428 2,800,860 2,9 39, 673 Transfer from federal grant 111,453 Transfer from bond account --~8~00~,~0~0-"-0 956,078 533,488 2,406,185 2,406,185 Total revenues $115,495,233 $114,344,039 $ 2,693,491 $117,037,530 31 ..... LITI'LE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Expenditures of Salary, Operating and Debt Service Funds (Basis of Accounting as Prescribed by Handbook II) Year Ended June 30, 1992 Schedule 3 Total General and Debt Service Funds (Memorandum Only) Unadjusted Adjusted Handbook II Net Handbook II Budget Ext>enditures Adjustments Ex~enditures Certified salaries $ 56,475,397 $ 56,324,205 $ $ 56,324,205 Non-certified salaries 16,616,953 16,867,007 16,867,007 Employee benefits 9,247,100 8,992,742 152,964 9,145,706 Purchased services 10,240,766 9,036,188 280,823 9,317,0ll Supplies and materials 5,805,355 4,010,761 4.010,761 Capital outlay 3,709,961 3,959,731 226,109 4,185,840 Debt service 8,718,196 7,950,100 2,442,525 10,392,625 Other objects 4,786,843 5,402,198 (441,726) 4,960,472 Contingency 388,163 Total expenditures $ ll5,988,734 $ 112,542,932 $ 2,660,695 $ ll5,203,627 32 I I I I I I I I I ..... LITrLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule 4 Reconciliation of General and Debt Service Fund Balances - Generally Accepted Accounting Principles and Handbook II Basis of Accounting June 30, 1992 Fund balances at June 30, 1991 - Handbook II Basis Handbook II revenues (Schedule 3) Handbook II expenditures (Schedule 4) Fund balances at June 30, 1992 - Handbook II Basis Adjustments to convert to generally accepted accounting principles (GAAP): Property taxes - debt services Property taxes - general fund Special revenue fund adjustments Fund Balances at June 30, 1992 - GAAP Basis General fund Debt service fund Total 33 $ 990,117 s $ s 117,037,530 (115,203,627) 2,824,020 4,886,537 {4,209,896) {14,812) 3,485,849 2,309,784 1,176,065 3,485,849 i I I I School Bonds: THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule of Long-Term Debt June 30, 1992 $4,485,000 December, 1965 Construction School Bonds
payable in annual installments through 1995
interest at 3.25% to 3.6% $2,051,000 June, 1973 Construction School Bonds
payable in annual installments through 1993
interest at 4.7% to 5.0% $6,482,700 June, 1977 Construction School Bonds
payable in annual installments through 1996
interest at 4.25% to 5.1% $6,134,565 March, 1979 Construction School Bonds
payable in annual installments through 1999
interest at 5.4% to 6.0% $4,889,200 March, 1980 Surplus Revenue Construction School Bonds
payable in annual installments through 1994
interest at 5.75% to 6.0% $5,512,750 May, 1988 Construction School Bonds
payable in annual installments through 2007
interest at 6.2% to 7.2% $3,371,000 June, 1988 Refunding School Bonds
payable in annual installments through 1999
interest at 5.6% to 6.6% $8,164,100 September, 1989 Construction School Bonds
payable in annual installments through 2008
interest at 6.1% to 6.75% $17,197,450 September, 1990 Construction School Bonds
payable in annual installments through 2020
interest at 6.25% to 7.2% $15,433,600 October, 1991 Construction School Bonds
payable in annual installments through 2020
interest at 6.1% to 7.0% $7,499,000 May, 1992 Refunding Bonds
payable in annual installments through 2007
interest at 5.6% to 6.50% Total bonds 34 Schedule 5 $ 966,000 305,000 2,405,000 3,285,000 1,490,000 5,215,000 2,535,000 8,144,100 17,197,450 15,433,600 7,499,000 64,475,150 (Continued) THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS schedule of Long-Term Debt (Continued) June 30, 1992 Capital lease obligations: Lease payable in annual installments through September 1992, interest at 7.9% Lease payable in annual installments through October 1992, interest at 7.0% Lease payable in annual installments through April 1993
interest at 8.0% Lease payable in monthly installments through July 1993
interest at 7.8% Lease payable in semi-annual installments through July 1994
interest at 8.5% Lease payable in annual installments through February 1993
interest at 5.9% Lease payable in annual installments through April 1994
interest at 8.9% Lease payable in annual installments through October 1993
interest at 7.62% Lease payable in annual installments through October 1994
interest at 7.99% Lease payable in annual installments through March 1995
interest at 7.95% Lease payable in monthly installments through February 1994
interest at 7.42% Lease payable in monthly installments through July 1994
interest at 7.9% Lease payable in annual installments through July 1996
interest at 6.7% Lease pay.able in annual installments through July 1996
interest at 6.7% Lease payable in annual installments through July 1996, interest at 6.97% Total capital lease obligations 35 $ Schedule 5 (Continued} 24,105 6,698 20,852 58,783 450,471 1,007,820 29,917 100,038 903,651 71,085 62,123 66,226 981, 725 496,384 587,415 4,867,293 (Continued) Other: THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule of Long-Term Debt (Continued) June 30, 1992 Debt payable to the Pulaski County Special School District
payable semi-annually through 2003
varying interest rates Revolving loan
payable in semi-annual installments through January 1994 at 9% Desegregation loan
payable in 20 annual installments beginning September, 1997
interest at 3% Desegregation loan
payable in 20 annual installments beginning March, 1998
interest at 3% Total Long-Term Debt 36 Schedule 5 (Continued) $ 8,750,798 120,000 6,000,000 4,500,000 S 88,713,241 THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Reconciliation of Fund Equity - State Report and Financial Statements June 30, 1992 Governmental Fund Tvpes Fund equity per State Report*: Salary, Operating and Debt Service Funds $ 2,321,666 Building Funds 22,156,036 Federal Programs 607,079 Student Activity Fund 25,084,781 Current period adjustments, net: Handbook II - revenues and expenditures (413,325) Handbook II - fund equity 315,335 Other 18,647 Fund balances not included in State Report: Revolving Funds 373,726 Food Service Fund 2,246,728 KLRE-FM/KUAR-FM Cumulative effect of prior years differences 190,325 Fund equity per financial statements $ 27,816,217 Due to school activity groups and other agencies per financial statements Schedule 6 Fiduciary Fund rypes $ 802,950 802,950 181,915 96,815 $ 1,081,680 * Unaudited financial report issued to the Arkansas State Department of Education on August 28, 1992 37 OTHER REPORTS AND SUPPLEMENTAL INFORMATION 38 ~and~ CERTIFIED PUBLIC ACCOUNTANTS Little Rock Office 201 E. Markham Suite 500 Little Rock, AR 72201 (501) 375-2025 FAX (501) 375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana. AR 75502 1501) 773-2168 FAX 1501) 774-7244 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE BASED ON A STUDY AND EVALUATION MADE AS A PART OF AN AUDIT OF THE BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVEllNHENT AUDITING STANDARDS AND THE ADDITIONAL TESTS REQUIRED BY 0MB CIRCULAR A-128 The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the combined financial statements of The Little Rock School District of Pulaski County, Arkansas (the School District), as of and for the year ended June 30, 1992, and have issued our report thereon dated November 20, 1992. We have also audited the School District's compliance with requirements applicable to major federal financial assistance programs and have issued our report thereon dated November 20, 1992. We conducted our audits in accordance with generally accepted auditing standards
Government Auditing Standards, issued by the Comptroller General of the United States
and Office of Management and Budget (OHB) Circular A-128, Audits of State and Local Governments. Those standards and OHB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement and about whether the School District complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audits for the year ended June 30, 1992, we considered the School District's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the combined financial statements and on its compliance with requirements applicable to major federal financial assistance programs and to report on the internal control structure in accordance with OHB Circular A-128, and not to provide assurance on the internal control structure. The management of The Little Rock School District of Pulaski County , Arkansas is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure polici es and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of combined financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal 39 Members American Institute of Certified Public Accou ntants Private Companies Practice Section and S.E.C. Practice Section Board of Directors The Little Rock School District of Pulaski County, Arkansas Page Two control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: 1. Accounting Controls - Cash - Fund balances - Revenues/receivables - Payrolls - Cash receipts - Fixed assets - Expenditures/payables - Investments - Cash disbursements 2. Controls Used in Administering Federal Programs General Requirements: Specific Requirements: Political activity Davis-Bacon Act Civil rights Cash management Federal financial reports Allowable costs/cost principles Drug-free workplace act Administrative requirements Types of services Eligibility Matching, level of effort, or earmarking Reporting Special tests and provisions For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1992, the School District expended 89% of its total federal financial assistance under major federal financial assistance programs. We performed tests of controls, as required by the 0MB circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of the School District's major federal financial assistance programs, which are identified in the accompanying schedule of federal financial assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. 40 The Board of Directors The Little Rock School District of Pulaski County, Arkansas Page Three We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the School District's ability to record, process, summarize, and report financial data consistent with the assertions of management in the combined financial statements or to administer federal financial assistance programs in accordance with applicable laws and regulations. FIXED ASSETS The School District does not have a complete inventory or detail subsidiary ledger of all fixed assets which can be agreed or reconciled to total general fixed assets as reported in the combined financial statements. The School District's fixed asset tracking system should be expanded to include all of its assets and to provide for a complete periodic physical inventory count of capital assets. The inventory should be used to determine that all assets purchased are still in possession of the School District and that assets are being utilized in an effective and efficient manner. In addition, the "Common Rule" issued by the Office of Management and Budget outlines equipment management guidelines for property purchased with federal funds having a useful life of more than one year and an original acquisition cost of $5,000 or more per unit. These guidelines require that a physical inventory of the property be taken and the results reconciled with the property records at least once every two years. INSURANCE PAYROLL WITIIlIOLDING Our review of the controls related to the payroll disbursements cycle revealed weakness in relation to the timely flow of information regarding notice of employee terminations from the personnel department to the payroll department. Due to the untimely exchange of information necessary to facilitate removal of terminated employees from insurance records and billings, premiums were inadvertently paid for persons who were no longer employees of the School District. We recommend that the School District implement procedures to facilitate a more timely exchange of information between departments to ensure accuracy of payroll records and the payment of billings for employee insurance premiums. 41 The Board of Directors The Little Rock School District of Pulaski County, Arkansas Page Four * * * * * * A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the combined financial statements being audited or that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe the reportable conditions described above are not material weaknesses. This report is intended for the information of the Board of Directors, management, and all applicable Federal and State agencies. However, this report is a matter of public record and its distribution is not limited. November 20, 1992 Little Rock, Arkansas 42 ~ {~o,oJ Certified Public Accountants !7/wma& tmd !7/wma& CERTIFIED PUBLIC ACCOUNTANTS Little Rock Office 201 E. Markham Suite 500 Little Rock, AR 72201 15011 375-2025 FAX 15011375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana, AR 75502 15011773-2168 FAX 1501) 774-7244 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF THE BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNHENT AUDITING STANDARDS The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the combined financial statements of The Little Rock School District of Pulaski County, Arkansas (the School District), as of and for the year ended June 30, 1992, and have issued our report thereon dated November 20, 1992. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to The Little Rock School District of Pulaski County, Arkansas is the responsibility of the School District's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the School District's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the combined financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, The Little Rock School District of Pulaski County, Arkansas complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Scho<
>l District had not complied, in all material respects, with those provisions. This report is intended for the information of the Board of Directors, management, and all applicable Federal and state agencies. However this report is a matter of public record and its distribution is not limited. November 20, 1992 Little Rock, Arkansas Certified Public Accountants 43 Members American Institute of Certified Public Accountants Private Companies Practice Section and S.E.C. Practice Section ~@d~ CERTIFIED PUBLIC ACCOUNTANTS little Rock Office 201 E. Markham Su ite 500 Little Rock, AR 72201 1501) 375-2025 FAX 15011375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana, AR 75502 1501 ) 773-2168 FAX 1501) 774-7244 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the financial statements of the Little Rock School District of Pulaski County, Arkansas (the School District) as of and for the year ended June 30, 1992, and have issued our report thereon dated November 20, 1992. We have applied procedures to test the School District's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance for the year ended June 30, 1992: Political activity Davis-Bacon Act Civil rights Cash management Federal financial reports - Allowable costs/cost principles - Drug-free Workplace Act - Administrative requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the School District's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not te sted, nothing came to our attention that caused us to believe that the School District had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are des cribed in the accompanying Schedule of Findings and Questi oned Costs . This report is intended for the information of the Board of Directors , management, and all applicable Federal and state agencies. However, this report is a matter of public record and its distribution is not limited. November 20, 1992 Little Rock, Arkansas ~o./U ,J_ ~a.A) Certified Pu' bli c Accountants Members American Institute of Certified Pu blic Accountants Private Companies Practice Section and S.E.C. Practice Section 44 f?bma&cmd f7bma& CERTIFIED PUBLIC ACCOUNTANTS Little Rock Office 201 E. Markham Suite 500 Little Rock, AR 72201 (5011 375-2025 FAX (5011375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana, AA 75502 (5011773-2168 FAX (SQ
J 774-7244 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the combined financial statements of the Little Rock School District of Pulaski County, Arkansas (the School District), as of and for the year ended June 30, 1992, and have issued our report thereon dated November 20, 1992. We also have audited the School District's compliance with the requirements governing types of services allowed or unallowed
eligibility
matching, level of effort, or earmarking
reporting
levels of service
carryover of grant funds
parent involvement
program evaluations
services provided to children enrolled in private schools
commitment of funds
and schoolwide projects that are applicable to each of its major federal assistance programs, which are identified in the accompanying schedule of federal financial assistance for the year ended June 30, 1992. The management of the School District is responsible for compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards
Government Auditing Standards, issued by the Comptroller General of the United States
and 0MB Circular A-128, Audits of State and Local Governments. Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Little Rock School District of Pulaski County, Arkansas complied, in all material respects, with the requirements governing types of services allowed or unallowed
eligibility
matching, level of effort, or earmarking
reporting
levels of service
carryover of grant funds
parent involvement
program evaluations
services provided to children enrolled in private schools
commitment of funds
and schoolwide projects that are applicable to each of its major federal financial assistance programs for the year ended June 30, 1992. 45 Members American Institute of Certified Public Accountants Private Companies Practice Section and S.E C. Practice Section The Board of Directors The Little Rock School District of Pulaski County, Arkansas Page Two This report is intended for the information of the Board of Directors, management, and all applicable Federal and state agencies. However, this report is a matter of public record and its distribution is not limited. November 20, 1992 Little Rock, Arkansas 46 ~~~~ Certified Public Accountants Program Various Federal Programs THE LITfLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule of Findings and Questioned Costs June 30, 1992 Findings/Noncompliance The "Common Rule" requires that detailed property records be maintained identifying pertinent information related to equipment purchased with federal funds. Also, a physical inventory of this equipment should be performed at least every two years and the results reconciled with the detailed records. The School District does not maintain detailed property records, nor has a physical inventory of the property been performed. Questioned Costs NIA There are no unresolved findings or questioned costs from prior audit periods. 47 !7lwma& and !7lwma& CERTIFIED PUBLIC ACCOUNTANTS Little Rock Office 201 E. Markham Suite 500 Little Rock, AR 72201 1501) 375-2025 FAX 1501) 375-8704 Texarkana Office: 701 Arkansas Blvd. Texarkana, AR 75502 1501 ) 773-2168 FAX 1501 ) 774-7244 INDEPENDENT AUDITORS' REPORT ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE The Board of Directors The Little Rock School District of Pulaski County, Arkansas Little Rock, Arkansas We have audited the combined financial statements of The Little Rock School District of Pulaski County, Arkansas (the School District) as of and for the year ended June 30, 1992, and have issued our report thereon dated November 20, 1992. These combined financial statements are the responsibility of the School District's management. Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Audi ting Standards issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A- 128, Audits of State and Local Governments. Those standards and 0MB Circular A- 128 require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the combined financial statements of The Little Rock School District of Pulaski County, Arkansas taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analys i s and is not a required part of the combined financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. November 20, 1992 Little Rock, Arkansas 'Tfv~cw 1 ~a.Al Certified Public Accountants 48 Members American Institute of Certified Public Accountants Private Companies PracUce Section and S.E .C. Practice Section MAJOR PROGRAMS U.S. Department of Education Passed Through State Department of Education: CHAPTER I Compensatory Title VI-B Handicapped Vocational Education Act (Carl Perkins): 7/01/91 - 6/30/92 7/01/90 - 6/30/91 U.S. Department of Agriculture Passed Through State Department of Education: National School Lunch Program Passed Through State Department of Human Services: National School Lunch Program - Commodities Total Major Programs OTHER FEDERAL PROGRAMS U.S. Department of Education Passed Through State Department of Education: EESA TITLE II Public Law 874 ECIA CHAPTER II CHAPTER I Handicapped Drug Free Schools and Communities Act of 1986 Adult Basic Education U.S. Department of Labor Passed Through State Department of Education: CETA/Vocational Job Training Partnership Act U.S. Department of Energy Passed Through Arkansas Energy Office: Institutional Conservation Program Institutional Conservation Program THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule of Federal Financial Assistance Year Ended June 30, 1992 Federal CFDA Number 84.010 84.027 84.048 84.048 10.555 10.555 84.164A 84.041 84.151 84.009 . 84.186A 84.002 17.250 17.250 81.052 81.052 49 $ Program or Award Amount 3,500,025 653,866 344,945 372,269 N/A N/A 100,671 279,862 63,615 274,469 92,893 47,938 114,013 623 ,854 196,120 Federal Funds Revenues Recognized Expenditures $ 3,248,136 $ 3,248,136 517,152 517,152 271,574 271,574 90,768 90 768 4,127,630 4,127,630 3,492,855 3,492,855 466,875 466,875 3,959,730 3,959,730 8,087,360 8,087,360 57,122 57,122 9,385 9,385 223,948 223,948 50,007 50,007 216,333 216,333 92,893 92,893 649,688 649,688 47,233 47,233 66,547 66 547 113, 780 113,780 108,760 108,760 82,386 82,386 191,146 191,146 (Continued) THE LITTLE ROCK SCHOOL DISTRICT OF PULASKI COUNTY, ARKANSAS Schedule of Federal Financial Assistance (Continued) Year Ended June 30, 1992 OTHER FEDERAL PROGRAMS (CONTINUED) U.S. Department of Agriculture Passed Through State Department of Education: Nutritional Education U.S. Department of Health and Human Services Passed Through State Department of Human Services: Child Care and Development Block Grant Developmental Disabilities Planning Council - Basic Support Grant Social Services Block Grant - Contract Social Services Block Grant - Vouchers Total Other Federal Programs Total Federal Financial Assistance Note: Medicaid reimbursements paid to providers are defined as contracts for services and not federal assistance
therefore, $128,263 of Medicaid reimbursements received during the year ended June 30, 1992 are not covered by the reporting requirements of 0MB Circular A-128. Federal CFDA Number 10.564 93.037 93.630 93.667 93.667 50 Program or Award Amount $ NIA NIA 3,500 44,475 NIA $ $ Federal Funds Revenues Recognized 21,692 29,165 1,750 4,442 22,255 57,612 1,033,918 9,121,278 Expenditures $ 21,692 29,165 1,750 4,442 22,255 57,612 1,033,918 $ 9,121,278
This project was supported in part by a Digitizing Hidden Special Collections and Archives project grant from The Andrew W. Mellon Foundation and Council on Library and Information Resources.

<dcterms_creator>Little Rock School District</dcterms_creator>