BOARD OF EDUCATION MEETING Owego Apalachin Central … · 2014-01-26 · November 17, 2011 OAMS Café 6:30 PM Executive Session 7:00 PM Regular Session I. CALL TO ORDER II. ROLL CALL

BOARD OF EDUCATION MEETING Owego Apalachin Central School District

AGENDA

November 17, 2011

OAMS Café

6:30 PM Executive Session 7:00 PM Regular Session

I. CALL TO ORDER II. ROLL CALL III. ADOPTION OF THE AGENDA IV. CONSIDERATION OF THE NEED FOR EXECUTIVE SESSION A. Committee on Special Education Placement Recommendations (7) B . Committee on Special Education 504 Accommodation Plans (4) C. Committee on PreSchool Special Education Placement Recommendations (8) V. PUBLIC FORUM A. Recognition of Visitors VI. CONSENT AGENDA A. Approval of Minutes of Previous Meetings

1. October 27, 2011 Board Meeting

B. Consent Business 1. Personnel a) Resignation

(1) Darl Benjamin – Substitute Food Service Driver b) Retirement

(1) Tony Clark – Supervisor of Facilities

c) Appointments (1) Trista Broughton – Substitute Teacher Aide (2) Stephen Hackett – Substitute Teacher (3) Allison Williams – Substitute Teacher/Substitute Teacher Aide (4) Michelle Kilpatrick – Substitute Food Service Helper (5) Andrea Watkins – Substitute Teacher/Substitute Teacher Aide (6) Joan Fitch – Interpreter (7) Lynette Cole - Interpreter (8) Stephanie Jaros – Varsity Basketball Co-Cheerleading (9) Leanna Steffler – Varsity Basketball Co-Cheerleading (10) Rosa Chaluisant – Extra Duty – Asst. Drama Advisor (11) Extended Season – 2011-2012 Fall Sports Coaches (see attached) (12) Jamie Garrett – Substitute Teacher d) Change in Hours (1) James Miller – Teacher Aide – From 6 to 6.5 hrs/day (2) Charmaine Harbst – Teacher Aide – From 5 to 4 hrs/day (3) Karen Hogg – Bus Driver – From 5.5 to 6 hrs/day (4) Barbara Watson – Teacher Aide/Bus Monitor Aide – From 5.25 to 5.75 hrs/day (5) Kelly Whittemore – Bus Driver – From 5.5 to 6.75 hrs/day e) Change in Classification (1) Scott Sanguinito – Custodial Worker – From 8-52 Week Probationary Appointment to Permanent Appointment f) Leaves of Absence - Unpaid (1) Diane Tavelli – Teacher (2) Jeannie VanVorce – Food Service Helper (3) Yvonne Eastman – Bus Driver 2. Financial a) October Financials 3. Special Needs a) Committee on Special Education Placement Recommendations b) Committee on Special Education 504 Accommodation Plans c) Committee on PreSchool Special Education Placement Recommendatons d) Universal Pre-K, Abide-in-the Vine and Franziska Racker Agreements e) Interpreter Service Agreements 4. Facilities

a) Transportation Requests to Private Schools VII. PRESIDENT’S REPORT VIII. SUPERINTENDENT’S REPORT

A. Update on OA Flood Recovery B. Donation of Buses C. Bus Conversion D. Tax Collection E. Music Award F. Linnaeus West Lease Agreement

IX. DISTRICT BUSINESS A. External Audit B. Budget Calendar C. Adoption of District Goals X. BOARD COMMITTEE REPORTS XI. DISTRICT COMMITTEE OF THE WHOLE XII. ACTION ITEM SUMMARY XIII. CONSIDERATION OF THE NEED FOR EXECUTIVE SESSION XIV. ADJOURNMENT

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT OWEGO, NEW YORK

November 17, 2011

MOTION IN SUPPORT OF CONSENT AGENDA

RESOLVED, that the minutes of the October 27, 2011 Regular Board Meeting be approved as presented;

AND BE IT FURTHER RESOLVED that the Resignation, Retirement, Appointments,

Change in Hours, Change in Classification, and Leaves of Absence be approved according to

Schedule A; that the October Financials be approved according to Schedule B; that the

Committee on Special Education Placement Recommendations be approved according

to Schedule C; that the Committee on Special Education 504 Accommodation Plans

be approved according to Schedule D; that the Committee on Preschool Special

Education Placement Recommendations be approved according to Schedule E; that the

Universal Pre-K Program & Agreement with Abide in the Vine Fellowship and Franziska

Racker Centers, Inc. be approved according to Schedule F; that the Interpreter Service Agreements

be approved according to Schedule G; and that the Transportation Requests to Private Schools be

approved according to Schedule H

BOARD OF EDUCATION MINUTES

BOARD OF EDUCATION OWEGO APALACHIN CENTRAL SCHOOL DISTRICT

Owego, NY 13827

MINUTES October 27, 2011

The Owego Apalachin Board of Education held a Regular Meeting at the Owego Apalachin Middle School Cafeteria, 3 Sheldon Guile Boulevard, Owego, NY, on Thursday, October 27, 2011, at 7:00 PM.

I. CALL TO ORDER

Vice-President Cvik called the meeting to order at 6:30 PM

II. ROLL CALLMembers Present:Mrs. Rebecca Goodrich Mr. Lee Dunham Mr. John Gatto Mr. Gene Cvik Mrs. Linda Frisbie Mr. John Crosby

Members Absent:Mr. David Barton

Others Present:Mr. Randy Pryor Mr. Bob Farrell Mr. Tom Comerford Mrs. Laurie McKeveny Mr. Joe DiCosimo Mr. Tony Quaranta Mr. Jim Miller Mr. Heath Georgia Mrs. Pam Donovan Mrs. Donna Signs Ms. Laura Coppens Mr. Joe Chartrand Mrs. Marion Chartrand Ms. Candy Sweppenheiser Mr. Andrew Pointeck Ms. Kala McPherson Mr. Nate Skiff Ms. Ashley Weidman Mr. Jerry Jones Ms. Anan Gardner Mr. Keith Gardner Mr. Haig McNamee

Dr. William Russell, Superintendent, and Mrs. Marcy Hill, Clerk of the Board, were also present.

III. ADOPTION OF THE AGENDA

A motion was made by Mrs. Becky Goodrich and seconded by Mrs. Linda Frisbie that the Board of Education adopt the agenda of the meeting.

Ayes: 6 Nayes: 0 Carried (Cvik –Aye; Dunham-Aye; Frisbie-Aye; Crosby–Aye; Gatto – Aye; Goodrich-Aye)

IV. EXECUTIVE SESSION

A motion was made by Mrs. Linda Frisbie and seconded by Mr. Crosby to convene into Executive Session at 6:30 PM. Ayes: 6 Nayes: 0 Carried

(Cvik –Aye; Dunham-Aye; Frisbie-Aye; Crosby–Aye; Gatto – Aye; Goodrich-Aye)

The Board reconvened into Regular Session at 7:15 PM.


Mr. Cvik stated that there was not a need for another executive session.

V. PUBLIC FORUMHaig McNamee – Owego: Mr. McNamee reiterated his hope that his foil requests will be handled before he has to go to the State regarding this.

Linda Brisson – Owego: Thank you to the BOE and staff for the wonderful job that was done during the flood.

Laura Coppens – Owego: Thank you to Mr. Georgia for his leadership during these trying times this week.

Jim Miller – OAEA: SRP Conference in Saratoga Springs was recently attended by the OAEA union representatives. The representatives are here tonight to donate books that were donated from other unions to replace what we lost in the flood.

Joe Chartrand – Owego: Mr. Chartrand attended the recent “town hall” meeting with Senator Libous. Mr. Libous will take the list of unfunded mandates to Albany if we provide him with an exact list. Dr. Russell explained to Mr. Chartrand that the Chief School Officers have already created this list and shared it with Senator Libous; however, Dr. Russell will email it to him.

VI. CONSENT AGENDA

RESOLVED, that the minutes of the October 11, 2011, Special Board Meeting, and the October 13, 2011, Regular Board Meeting be approved as presented;

AND BE IT FURTHER RESOLVED that the Resignations, Appointments,

Change in Classification, Change in Effective Date, Change in Hours, and Leave

of Absence be approved according to Schedule A; that the School Bus Rental –

Nazarene Church be approved according to Schedule B; that the September

Financial Reports be approved according to Schedule C; that the Corrections to

the Tax Rolls be approved according to Schedule D; that the Budget Transfers be

approved according to Schedule E; that the Bid Award – Meat & Cheese - be

approved according to Schedule F; that the Committee on Special Education

Placement Recommendations be approved according to Schedule G; that the

Committee on Special Education 504 Accommodation Plans be approved

according to Schedule H; that the Committee on Preschool Special Education

Placement Recommendations be approved according to Schedule I

A motion was made by Mrs. Linda Frisbie and seconded by Mr. John Crosby that the Board of Education adopt these resolutions:

Ayes: 6 Nayes: 0 Carried


(Cvik –Aye; Dunham-Aye; Frisbie-Aye; Crosby–Aye; Gatto – Aye; Goodrich-Aye)

VII. PRESIDENT'S REPORT

NONE VIII. SUPERINTENDENT’S REPORT

A moment of silence for Jaryd Farnhnam. Mr. Georgia, Mr. Beatty and the crisis team did a wonderful job this week during our difficult time. Our district continues to grieve.

BOE Recognition - Introduction of Mr. Finnessey. Mr. Finnessey is the 2011-2012 student representative.

Flood Updates – Dr. Russell stated that we are still progressing with flood clean up. Owego Elementary is being cleaned and many items are being taken to Linnaeus West so that they can be used. We are continually in contact with the Lend Lease, our contract manager, regarding what is being done district wide.

Bus Purchases – When to buy busses and how that issue affects transportation aid was discussed.Last year after the first vote failed, we moved to a second vote in December; the Board had agreed to stay on a winter vote schedule. However, that was a pre-flood commitment; at this time we don’t feel we should go out for a vote within the next month. However, corrosion and body work become an issue; we have busses that are 11 years old and have 162,000 miles on them. By buying annually we keep our replacement debt in balance and maintain a regular rotation cycle which allows us to have efficient running busses.

We would most likely ask for three 65 passenger busses and a wheel chair accessible bus or a suburban. Everyone agrees to putting the bus vote back on the budget vote in May; it is important that we keep on a bus replacement schedule.

Board GoalsDr. Russell stated that he didn’t want to have extended conversation at this time, but wanted to touch on the goals and bring them up for our annual review. He is requesting that the goals be reviewed and, if there are suggestions/modifications, communicate them to Dr. Russell so that we could make some proposed revisions at the next meeting. The Leadership Team will also be reviewing the goals.

Our next meeting is November 17th. . There is only one meeting in November.

Sale of PaintingsDr. Russell shared that the third painting was recently auctioned off at Christie’s Auction House. The Ralston Crawford painting sold for $22,500. The total for the three paintings was $105,500.00.

Hooker Foundation – Dr. Russell has received word from Mr. Mark Dixon, who now resides in Alaska, but remains the Executive of the Vic Hooker Foundation. The district applied for and was approved for two grants. Mrs. Kristin Barton applied for a grant of $25,000 to help OES refresh and restore classroom supplies from the flood. Mr. Andrew Goodrich applied for a$125,000 Fitness Center grant to replace equipment that was flooded.

This is terrific news; thank you to Kristen and Andrew for submitting proposals on behalf of the district.


Dr. Russell shared some rankings that had been sent to him today. It’s a piece of good news; these scores are what we are aiming for.

IX. DISTRICT BUSINESS

X. BOARD COMMITTEE REPORTS

XI. PUBLIC COMMENTS

Haig McNamee – Audit committee meeting is on the agenda today; is that a closed meeting?

Jerry Jones – Do we have a measurement and/or time tables for the goals?

XII. COMMITTEE OF THE WHOLEAES – Trunks of Treat at AES tomorrow night. It’s a safe place for trick or treat. Thank you to Apalachin Fire Department for what they do for our community and schools. AIS support has started.

OES– BOCES cosmetology students will be coming to school this week. They will be providing a fun environment for the students to receive “make-overs”. It’s a special time for fall parties this year; the classes have made masks in art class for this. Mrs. Julie McEvoy’s husband will be donating his time as a DJ for the fall parties.

Student Representative – Homecoming and Pep Rally held. Club activities have started.

OFA- We have been recovering over the past few days. The faculty and staff did a wonderful job coming together. Thanks to Dr. Russell and Mr. Dolan for having extra resources brought in for us. The student body is still struggling, but coming together. Our hearts and prayers go out to the Farnham family.

XIII. ADJOURNMENT

A motion was made by Mr. John Gatto and seconded by Mrs. Linda Frisbie that the Board of Education adjourn the meeting.

Ayes: 6 Nayes: 0 Carried (Cvik –Aye; Dunham-Aye; Frisbie-Aye; Crosby–Aye; Gatto – Aye; Goodrich-Aye)

Vice-President Cvik adjourned the meeting a 8:25PM. Respectfully submitted,

Marcy Hill, Clerk Board of Education


November 17, 2011

SUBJECT: Universal Pre-Kindergarten Program (UPK) and Agreement with Abide in the Vine Fellowship and Franziska Racker Centers (FRC), Inc.

BOARD ACTION REQUESTED: Authorization for the President of the Board of Education

to sign the attached agreements with Abide in the Vine Fellowship Inc. and FRC.

COMMENT: The Owego Apalachin Central School District has arranged to lease off-campus space from Abide in the Vine Fellowship for the purpose of securing an alternative education site for preschool students. Also, the agreement with FRC and our District will allow us to cooperate in UPK/integrated preschool programs pursuant to Education Law 4410.

PREPARED BY: Thomas E. Comerford, III, Director Pupil Personnel Services

RECOMMENDED BY:

Dr. William Russell Superintendent of Schools

LEASE

Made this 14th, day of September, 2011.

BY AND BETWEEN

Owego Apalachin Central School District existing under and by virtue of the Laws of the State of New York, with an office and place of business at 36 Talcott Street, Owego, New York, hereinafter referred to as Lessee.

AND

Abide in the Vine Fellowship, an organization existing under and by virtue of the Laws of the State of New York, hereinafter referred to as the Lessor.

RECITALS

1. The Lessee is organized under the Laws of the State of New York and is responsible for the operation of programs for in its school districts including, but not limited to, those for preschool students through the Lessee’s universal preschool program.

2. In order to achieve the goals of the Lessee as described above, it is necessary that classrooms in the Lessor’s building be available for the needs of Owego Apalachin Central School District. Further, the support facilities of the Lessor, that is, toilets, hallways, recreation areas, and other areas of a like or similar nature must also be available for Lessee’s use.

3. The Lessor understands and appreciates the needs of Lessee in achieving these goals and agrees, to make available two (2) classrooms for the Lessee’s use.

4. It is understood and agreed that the Lessor shall have the right not more than once annually to designate the classrooms to be leased under this agreement.

5. The Lessor and the Lessee have reached an agreement as set forth in this lease.

ARTICLE 1 AGREEMENT

The Lessor hereby leases to the Lessee two (2) classrooms, together with the right to use in common with all students, support facilities defined as but not limited to toilets, gymnasiums, hallways, recreation areas, and other areas of a like or similar nature.

ARTICLE II TERM

The term of this lease shall commence September 14, 2011 and shall continue until June 30, 2012 year.

ARTICLE III RENT

The annual rent shall be up to $16,000 and/or prorated according for 2011-2012.

Rent shall be paid in ten (10) monthly installments beginning on September 14th and continuing on the 1st day of each month through June 1st during the term of this lease.

ARTICLE IV CLASSROOM SIZE

All space leased to Lessee under this agreement shall comply with the regulations of the Commissioner of Education applicable to facilities for the education of students.

ARTICLE V OBLIGATIONS OF LESSOR

The lessor will provide the Lessee with heat, light, and maintenance. The Lessor shall also equip the classrooms with furniture and other instructional equipment comparable to that in other classrooms for the use of students and teachers.

ARTICLE VI DEFAULT

In the event that either of the parties hereto shall fail to perform any duty required to be performed or breach any warranty or representation, including Lessee’s covenant to pay rent, made herein, and such failure to perform or breach shall continue unremedied and uncorrected for a period of thirty (30) days after the service of written notice upon such party by the other party hereto specifying such failure or breach, this Lease may be terminated on grounds of default at the option of the party serving such notice at the expiration of such thirty (30) day period; provided, however, that such termination shall not relieve the party so failing or breaching, from liability to the other party for such damages as may be suffered by reason of such failure.

Any other provision of this Lease to the contrary notwithstanding, in the event that there occurs a default by Lessor the Lessee at its option may elect to cure the default and deduct the cost thereof from rental payments subsequently falling due.

ARTICLE VII LIABILITY INSURANCE

See Addendum I

ARTICLE VIII DESTRUCTION OF SCHOOL BUILDING

The Lessor shall maintain at its cost fire insurance upon the buildings containing the Lessee’s classrooms and support facilities. In the event of a fire, the Lessee and Lessor will mutually agree to rebuild the facility or use another facility, if the need exists. They will also mutually agree to the use of the fire insurance proceeds.

ARTICLE IX APPROVAL BY COMMISSIONER

The parties acknowledge that the Lessee is a Central School District and as such is subject to the Laws of the State of New York including, but not limited to, the Education Law of the State of New York and Regulations of the Commissioner of Education.

The parties specifically acknowledge that this Lease shall not be effective unless and until the same shall have been approved in writing by the Commissioner of Education in accordance with Section155.12 of the Regulations of the Commissioner.

ARTICLE X MEMORANDUM OF LEASE

IN WITNESS WHEREOF, the parties have caused this lease to be executed by their proper corporate officers this 17th day of November, 2011.

Owego Apalachin Central School District

By: _________________________________ President, Board of Education

CLERK’S CERTIFICATION

This is to certify that this agreement was approved and the execution thereof on behalf of the Board of Education was authorized by vote of the Board of Education of the Owego Apalachin Central School District at a public meeting duly held on November 17, 2011 and has been made a part of the minutes of that meeting.

____________________________School District Clerk

Abide in the Vine Fellowship

By: _________________________________ Fred Hoover, Pastor

ADDENDUM I ADDENDUM TO OWEGO APALACHIN SCHOOL DISTRICT LEASE

Liability for Damages

Lessee shall indemnify, hold harmless, and defend lessor against any and all claims filed by parties injured or damaged by an accident to the extent caused by acts or omissions of the lessee, its agents, employees, invitees, or guests. Lessor shall not be liable to lessee for any damage by or from any act or negligence of any co-tenant or other occupant of the same building, or by any owner or occupancy of adjoining or contiguous property. Lessee agrees to pay for all damage to the building, as well as all damage to tenants or occupants of the building, caused by lessee’s, its agents’, invitees’, or guests’ misuse, omissions or neglect of the premises, its apparatus, or appurtenances.

Services and Furnishings Provided by Lessor and Lessee

Lessor agrees to furnish all common areas excluding the leased office space. Lessor shall be responsible for the maintenance including snow removal in all common areas including the parking lot and entranceways. Lessor shall also be responsible for all heating, air-conconditioning, plumbing and electrical systems, and trash removal in common areas. Lessor shall not be liable for failure to furnish any of the above when such failure is caused by conditions beyond the control of Lessor, or by accidents, repairs, or strikes. Any such failure shall not constitute an eviction. Lessor shall not be liable, under any circumstances, for loss of, or injury to, property however occurring, through or in connection with or incidental to the furnishing of any of the above.

Lessor shall be responsible for all maintenance within the office space leased including normal wear and tear, maintenance i.e. light bulbs, and shall be responsible for its own trash and all mandatory recycling removals. Lessee will make arrangements to provide janitorial services. Lessee agrees to pay for all other services supplied to the premises, not explicitly set forth herein.

CERTIFICATE OF LIABILITY INSURANCE

Lessee must provide Lessor with a Certificate of Liability Insurance naming Abide in the Vine Fellowship as Certificate Holder upon signing of Lease.

Owego Apalachin Central School District and Franziska Racker Centers, Inc Agreement to Provide an Integrated Pre-School Program

November 1, 2011 through June 30, 2012

Franziska Racker Centers, Inc. (hereinafter the “Agency”) and the Owego Apalachin Central School District (hereinafter the “District”) agree to cooperate in an integrated pre-school program pursuant to Education Law 4410 (hereinafter called the “program”) subject to the conditions listed below:

The program shall operate from November 1, 2011 through June 30, 2012 and will accept up to 11 half time preschool students with special needs, up to 11 in the AM class. The programs days of operation shall follow the District’s calendar and emergency closing status. Programming for the school year program shall be administered in full compliance with the NYS Statutes and Regulations pertaining to integrated preschool programs.

The Agency will staff each class with one New York State Certified Special Education Teacher, and Program Aide. The program will be located in an appropriate classroom at the Abide in the Vine Day Care facility. To the extent appropriate, the program students will be integrated into the Universal Prekindergarten Program. The Agency shall meet all NYS Education Department requirements for the operation of an integrated pre-school program.

The Agency acknowledges that the District assumes no responsibility for the transportation of the children to or from the program site and furthermore, the Agency shall advise, in writing, the parents or guardians of the children attending the program that transportation to and from the program site is their sole responsibility, with the exception of transportation to and from school as provided by law and District practice.

The Agency shall also be responsible for the following:

1. Contacting all persons in parental relationship in the event of an emergency closing of the program.

2. Providing emergency contact information for supervisory staff that guarantees the availability of supervisory staff at all times.

3. Paying the District $250 for each month of operation. Payment will be made the 1st of each month to the District beginning on November 1, 2011.

4. Providing all materials, supplies and equipment used in the operation of the program except as otherwise agreed to by the District.

5. All trash shall be removed on a daily basis and placed in trash receptacles.

6. Providing of snacks to children participating in the program, unless otherwise agreed to by the District.

7. Supplying the District with a written set of operational health services procedures for any student requiring specific health services.

8. Providing the director of pupil personnel services an updated enrollment list of all participating children. Each time a child is enrolled or dropped from the program, the director will be notified in writing.

9. Establishing, at least two weeks prior to the program startup date, the written procedures for child drop off and pick up locations.

10. Providing copies of teaching staff education and credentials as well as proof of clearing the NYS Education Department background check.

11. Recruiting and filling any opening in the program enrollment as needed.

12. Providing a certificate of insurance, which provides for commercial general liability with coverage of $1,000,000 for each occurrence and Personal and Adv Injury liability with coverage of $1,000,000 for each occurrence. The District shall be listed as an additional insured on the insurance policies.

13. Abiding by all applicable District policies and procedures in a collaborative manner.

The District shall also be responsible for the following:

1. Providing AM classroom.

Termination

Termination can be made upon thirty days written notice if any of the following conditions exist: insufficient enrollment as determined by the Agency, loss of program approval from NYS Education Department, failure of either parties to maintain contractual obligations as stated in this agreement.

Indemnification

The Agency agrees to hold harmless and indemnify the District and/or its agents and/or its employees from any claim or cause of action that might be asserted against the District and/or its agents and/or its employees arising out of any aspect of operation of the program, provided said claim is not the result of gross negligence on the part of the District. All release of client information by either party will be in full compliance with IDEA & FERPA regulations and the respective agencies' Notice of Privacy Practices.

Owego Apalachin Central School District Franziska Racker Centers, Inc.

Sign: ___________________________ Sign: ____________________________

Name: ________________ Name: Dan Brown_________________

Title: ____________ Title: Associate Executive Director_____

Date: ___________________________ Date: ____________________________


November 17, 2011

SUBJECT: Interpreter services with attached providers.

BOARD ACTION REQUESTED: Authorization for the President of the Board of Education to

sign the attached agreements.

BACKGROUND: School districts are required to provide appropriate interpreter services for students that are deaf or hard of hearing, which includes school sponsored extra-curricular activities. Attached are contracts between the service providers and the Owego Apalachin Central School District.

PREPARED BY: Thomas E. Comerford, III, Director Pupil Personnel Services

RECOMMENDED BY:

Dr. William Russell Superintendent of Schools

AGREEMENT

Agreement between Joan Fitch, an Independent Service Contractor, located at 73 Ohio Ave., Elmira, New York 14905 and the Owego Apalachin Central School District, located at 3 Sheldon Guile Blvd., Owego, New York 13827.

1. The District hereby contracts for Interpreting Services for hearing impaired students that reside in the District to participate in extra-curricular/sporting activities associated with the Owego Apalachin Central School District.

2. The District and the Contractor will work closely together in providing appropriate service for the identified students. The Contractor will maintain confidentiality and will not release student information without the permission of the District.

3. The District agrees to reimburse the Contractor on a regular basis upon receipt of documentation at the rate of $26.00 per hour for Interpreting Services.

4. The District recognizes Joan Fitch as an independent contractor, not an employee of the Owego Apalachin Central School District, thereby ineligible for any fringe benefits or additional compensation beyond the terms of this agreement.

5. This agreement may be terminated by either party by written notification to the other party 15 days prior to the end of the services, or upon 15-day notice if the terms of this agreement are not being followed.

6. The term of this contract will start on November 8, 2011 for the school sponsored activity.

Joan Fitch Date

President, Board of Education Date

AGREEMENT

Agreement between Lynette Cole, an Independent Service Contractor, located at 4211 Brinkman Road, Binghamton, New York 13903 and the Owego Apalachin Central School District, located at 3 Sheldon Guile Blvd., Owego, New York 13827.

1. The District hereby contracts for Interpreting Services for hearing impaired students that reside in the District to participate in extra-curricular/sporting activities associated with the Owego Apalachin Central School District.

2. The District and the Contractor will work closely together in providing appropriate service for the identified students. The Contractor will maintain confidentiality and will not release student information without the permission of the District.

3. The District agrees to reimburse the Contractor on a regular basis upon receipt of documentation at the rate of $26.00 per hour for Interpreting Services.

4. The District recognizes Lynette Cole as an independent contractor, not an employee of the Owego Apalachin Central School District, thereby ineligible for any fringe benefits or additional compensation beyond the terms of this agreement.

5. This agreement may be terminated by either party by written notification to the other party 15 days prior to the end of the services, or upon 15-day notice if the terms of this agreement are not being followed.

6. The term of this contract will start on November 8, 2011 for the school sponsored activity.

Lynette Cole Date

President, Board of Education Date

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT Owego, New York

November 17 , 2011

TOPIC: 2011-2012 Transportation Requests to Private Schools

BOARD ACTION Approve Request for Transportation for theREQUESTED: 2011-2012 School Year.

COMMENT: This request for transportation fits into the Established bus routes.

PREPARED BY: Anthony Quaranta Supervisor of Transportation

PROCESSED BY: Bernard C. Dolan, Jr. Associate Superintendent

RECOMMENDED BY: Dr. William Russell Superintendent of Schools

OWEGO APALACHIN CENTRAL SCHOOL TRANSPORTATION DEPT.

School transportation requested to St. Patrick School for the school year 2011-2012.

Parent’s Name & Address Student Grade

Rudy & Rebecca Parker Mackenzie 4 5566 Gaskill Road Owego, NY 13827

We recommend approval.

Richard E. Ives 25 King Point Cir S Owego, NY 13827

Board of Education August 16, 2011 Owego Apalachin CSD 36 Talcott St Owego, NY 13827 Subject: Creation of a Student Music Award I discussed this briefly with Dr. Russell and Dan Fabricius at the Jazz on the Lawn concert this spring. I also contacted Kim Hahne as I believe she coordinates the awards. Their recommendation was to make this request through the Board of Education. I am interested in establishing an award to recognize the “triple threat” student in the OFA music programs, entitled: The Elizabeth Eddy Ives Accomplished Musician Award The recipient would chosen by the OFA music faculty and awarded to the senior who, over their four years of high school, consistently demonstrated excellence and growth in the OFA: Instrumental Music AND Vocal Music AND Musical Theater Performance with a minimum of two years in each category. It would be announced and presented at Awards Night. In addition to the participation indicated above, the selection should also take into consideration the student’s acceptance into school related audition-based groups such as All-County, Area All-State, and All-State, plus NYSSMA solo and ensemble performances. Participation in selected non-school groups such as the Binghamton Youth Symphony, Southern Tier Concert Band, EPAC, BU Summer Theater, Summer Savoyards, TiAhwaga Players and other local music and musical theater programs should be considered if necessary to break a tie. The award will be a certificate for the student (copy attached), and a permanent plaque to show the honorees by year, similar to and added to those already on the wall in the music wing. I’d also like to include a cash award of $50 or $100. As background, Elizabeth Eddy Ives was my mother. She was a 1934 graduate of Ithaca College with a BS in Music. She was the founder of the Candor school music program and started the Candor Community Players. She was also the choir director in the Candor Congregational Church. In school she formed both choral and instrumental groups. Under her direction the Candor Community Players performed several Gilbert and Sullivan Operettas prior to her too way too early death at 51 of breast cancer. I can be available to discuss this award and its implementation with you if you so desire. Dr. Russell and Kim Hahne have agreed to help with the logistics if it is approved.. I am looking forward to being able to implement it this year. Sincerely, Richard E. Ives

VVIEIRA & ASSOCIATESCPAs, P.C.

E. Mark Vieira, CPA * John B. Burtis, CPA**Cheryl DiStefano, CPA Scott M. Hotalen, CPA

*Also licensed in South Carolina **Also licensed in Pennsylvania

October 17, 2011

To the Board of EducationOwego-Apalachin Central School District164 Hawley StreetBinghamton, New York 13902

Professional standards established by the American Institute of Certified Public Accountants (AICPA) require independent auditors to communicate certain matters directly to the appropriate Committee of the Board.

MANAGEMENT LETTERWe reviewed the status of our comments from last year’s audit. All of our comments were addressed and corrected.

The AICPA Statement on Auditing Standards #114 requires communication related to the following matters:

- The auditors' responsibility under U.S. generally accepted accounting principles.- Significant accounting policies.- Management's judgments and accounting estimates.- Significant audit adjustments.- Disagreements with management.- Consultation with other accountants by management.- Major issues discussed with management related to auditors' retention.- Difficulties encountered in performing the audit.

OTHER REQUIRED COMMUNICATIONS

We provide the following information related to the above items:

Our independent auditors' report dated October 17, 2011, on the Owego-Apalachin Central School District financial statements as of and for the year ended June 30, 2011 indicates that our responsibility under U.S. generally accepted auditing standards requires that we plan and perform theaudit 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. Our engagement letter also details the terms and objectives of the audit engagement.

The District's significant accounting policies are disclosed in Note 1 to the audited financial statements, all of which are supported by authoritative guidance.

111 Grant Ave., Suite 106, Endicott, New York 20 B Cardinal Road, Hilton Head, SC 29926Tel: 607-723-1272 Fax: (607)239-6735 Tel: 843-681-7310 Fax: 843-689-2313E-mail: [email protected] Website: www.vapc.us

Significant accounting estimates used in the financial statements for the year ended June 30, 2011include the reserve for tax certioraris’ and the liability for compensated absences, liability for other post-employment benefits and allowance for doubtful accounts.

No significant adjustments were encountered in the course of our audit.

For the year ended June 30, 2011, there were no significant difficulties encountered in performing the audit, there were no significant disagreements with management regarding the application of accounting principles or scope of audit procedures, nor were we aware of any consultation by management with other accountants related to significant auditing and accounting matters.

As part of services to the District, we provide guidance in the application of accounting policies. None of these discussions concerning accounting policies with management related to our retention as auditors.

This report is intended solely for the information and use of the Owego-Apalachin Central School District management, and others within the organization.

We are available at your convenience to discuss any of the items contained in this letter or any other concerns that you may have.

Vieira & Associates CPA’s, P.C.Endicott, New York

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICT

FINANCIAL STATEMENTS

JUNE 30, 2011


TABLE OF CONTENTS

StatementNumber Page

Report of Independent Accountants 3-4

Management’s Discussion and Analysis 5-17 Statement of Net Assets 18Statement of Activities 19Balance Sheet - Governmental Funds 20Statement of Revenues, Expenses, and Changes in

Fund Equity - Governmental Funds 21Statement of Fiduciary Net Assets - Fiduciary Funds 22Statement of Changes in Fiduciary Net Assets - Fiduciary Funds 22Reconciliation of Governmental Funds Balance Sheet to Statement

of Net Assets 23Reconciliation of Governmental Funds Revenue, Expenditures

and Changes in Fund Equity to the Statement of Activities 24Notes to Financial Statements 25 - 48

REQUIRED SUPPLEMENTARY INFORMATIONAND

SUPPLEMENTARY INFORMATION

Report of Independent Accountants 50

SS1 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget (Non-GAAP) and Actual - General Fund 51 - 52

SS2 Schedule of Change from Original Budget to Revised Budget andUse of Unreserved Fund Balance - General Fund 53

SS3 Schedule of Project Expenditures - Capital Projects Fund 54

SS4 Schedule of Certain Revenues and Expenditures Compared to ST-3 Data 55

SS5 Combined Balance Sheet-Non-Major Governmental Funds 56

SS6 Statements of Revenues, Expenditures, and Changes in Fund Balance-Non-Major Governmental Funds 57

SS7 Investment in Capital Assets, Net of Related Debt 58

REPORTS APPLICABLE TO THE SINGLE AUDIT ACT

Schedule of Expenditures of Federal Awards 59

Notes to Schedule of Expenditures of Federal Awards 60

Schedule of Findings and Questioned Costs 61

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 62 - 63

Report on Compliance with Requirements That Could Have a Direct and MaterialEffect on Each Major Program and on Internal Control over Compliance inAccordance with OMB Circular A-133 64 – 65




REPORT OF INDEPENDENT ACCOUNTANTS

Owego-Apalachin Central School District36 Talcott StreetOwego, NY 13787

To The Board of Education:

We have audited the accompanying basic financial statements of the Owego-Apalachin Central School District as of and for the year ended June 30, 2011 as listed in the table of contents. These financial statements are the responsibility of the 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States. These standards require that we plan and perform the 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.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the Owego-Apalachin Central School District as of June 30, 2011, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2011 on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Management’s Discussion and Analysis is not a required part of the basic financial statements, but is supplementary information the Government Accounting Standards Board requires. We applied limited procedures, consisting principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. We did not audit the information and express no opinion thereon.


3

We performed our audit to form an opinion on the basic financial statements of the Owego- Apalachin Central School District taken as a whole. The Required Supplemental Information, Schedule of Expenditures of Federal Awards and Supplemental Information listed in the Table of Contents are presented for additional analysis and are not required parts of the basic financial statements. We subjected this information to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole.

Vieira & Associates CPA’s, P.C.

October 17, 2011Endicott, New York

4

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2011

The following is a discussion and analysis of the School District’s financial performance for the fiscal year ended June 30, 2011. This section is a summary of the School District’s financial activities based on currently known facts, decisions, or conditions. It is also based on both the District-wide and fund-based financial statements. The results of the current year are discussed in comparison with the prior year, with an emphasis placed on the current year. The Management’s Discussion and Analysis (MD&A) section is only an introduction and should be read in conjunction with the School District’s financial statements, which immediately follow this section. FINANCIAL HIGHLIGHTS

� During 2009, the School District adopted Governmental Accounting Standards Board (GASB) Statement 45, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions.” This statement required the School District to report a total liability of $14,484,384 in 2011.

� Total expenses exceeded revenues in 2011 by ($5,091,015) compared to 2010, when expenses exceeded

revenues by ($5,475,240.) The School District ended the year with net assets of $13,781,329, as compared to net assets in 2010 of $18,148,091.

� The General Fund budgeted expenditures, including carry-over encumbrances, were underspent by $,3,304,020

due to an overall effort by the school district to contain spending.

� Capital asset equipment additions during 2011 amounted to $548,652 and included $397,075 for the purchase of four new buses, $31,141 on technology equipment and the remaining $120,436 on miscellaneous equipment. The district had a new inventory appraisal completed, which amounted to a net $722,998 in adjustments.

� The indebtedness of the School District at June 30, 2011, in the amount of $51,377,957 increased $4,471,689

from 2010, primarily due to an increase in post retirement health insurance benefits liability of $4,896,872..

� The total General Fund fund balance, including reserves, was $12,631,957 at June 30, 2011. There were Restricted fund balances of $7,767,065, Assigned fund balances of $2,985,113 and Unassigned fund balances of $1,879,779 which is below the 4% of 2011-2012 appropriations maximum limit under New York State real property tax law.

OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts: MD&A (this section), the basic financial statement and supplementary information, both required and not required. The basic financial statements include two kinds of statements that present different views of the School District.

� The first two statements are District-wide financial statements that provide both short-term and long-term information about the School District’s overall financial status.

� The remaining statements are Governmental Fund financial statements that focus on individual parts of the

School District, reporting the School District’s operations in greater detail than the District-wide financial statements. The Governmental Fund financial statements concentrate on the School District’s most significant funds.

5



The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements with a comparison of the School District’s budget for the year and a Schedule of Funding Progress related to the School District’s unfunded actuarial liability for postemployment benefits. District-wide Financial Statements The District-wide financial statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Assets includes all of the School District’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. The two District-wide financial statements report the School District’s net assets and how they have changed. Net Assets – the difference between the School District’s assets and liabilities – is one way to measure the School District’s financial heath or position. Over time, increases or decreases in the School District’s net assets are an indicator of whether its’ financial position is improving or deteriorating, respectively. To assess the School District’s overall health, one needs to consider additional nonfinancial factors such as changes in the School District’s property tax base and the condition of the school buildings and other facilities. In the District-wide financial statements, the School District’s activities are shown as Governmental Activities. Most of the School District’s basic services are included here, such as regular and special education, transportation, and administration. Property taxes and State formula aid finance most of these actitivites. Governmental Fund Financial Statements The Governmental Fund financial statements provide more detailed information about the School District’s funds, focusing on its most significant or “Major” funds – not the School District as a whole. Funds are accounting devices the School District uses to keep track of specific sources of funding and spending on particular programs. The School District has two kinds of funds:

� Governmental Funds: Most of the School district’s basic services are included in Governmental Funds, which generally focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year end that are available for spending. Consequently, the Governmental Funds statements provide a detailed short-term view that helps one determine whether there are more or fewer financial resources that can be spent in the near future to finance the School District’s programs. Because this information does not encompass the additional long-term focus of the District-wide financial statements, additional information following the Governmental Funds statements explains the relationship (or differences) between them.

� Fiduciary Funds: The School District is the trustee, or fiduciary, for the assets that belong to others, such as

the Scholarship Fund and the Student Activities Funds. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations.

6



FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Our analysis below focuses on the net assets (Figure 1) and changes in net assets (Figure 2) of the School District’s governmental Activities.

Figure 1

Governmental Activities Total DollarCondensed Statement of Net Assets & Total School District Change

2010 2011 2010 - 2011Current assets and other assets $ 19,239,776 $ 17,546,502 $ (1,693,274) Net capital assets 45,814,583 47,612,784 1,798,201

Total assets 65,054,359 65,159,286 104,927 Current liabilities 23,907,023 30,132,733 6,225,710 Noncurrent liabilities 22,999,245 21,245,224 (1,754,021)

Total liabilities 46,906,268 51,377,957 4,471,689 Invested in capital assets, net of debt 14,409,011 15,023,703 614,692 Restricted 3,352,545 8,843,532 5,490,987 Unrestricted (deficit) 386,535 (10,085,906) (10,472,441)

Total net assets $ 18,148,091 $ 13,781,329 $ (4,366,762) The decrease in current and other assets was primarily due to a decrease in cash, which reflects decreased state aid and continued spending on capital projects. Net capital assets increased due to capital additions exceeding depreciation expense. Current liabilities increased primarily due to a new BAN for 2010-2011 in the amount of $10,676,250 which replaces a BAN in the amount of $9,000,000 in 2010-2011. The decrease in noncurrent liabilities is due to continuing to pay down existing debt. The increase in invested in capital assets is primarily due to capital additions. The decrease in unrestricted net assets is due to continued spending on the current capital project.

7



Our analysis in Figure 2 considers the operations of the School District’s activities.

Figure 2

Governmental Activities & Total Total DollarChanges in Net Assets School District Change

2010 2011 2010 - 2011REVENUES

Program revenues:Charges for service $ 533,147 $ 465,140 $ (68,007)Operating grants and contributions 3,707,065 2,094,106 (1,612,959)

General revenues:Real property taxes 17,919,537 18,297,610 378,073 State and federal sources 17,554,167 16,732,779 (821,388)Use of money and property 276,955 221,434 (55,521)Other general revenues 602,265 2,948,664 2,346,399 Total revenues 40,593,136 40,759,733 166,597

PROGRAM EXPENSESGeneral support 5,413,444 5,143,060 (270,384)Instruction 20,338,962 20,193,918 (145,044)Pupil transportation 1,856,892 1,804,805 (52,087)Community service 68,565 44,964 (23,601)Employee benefits 14,446,512 14,603,189 156,677 Debt service 1,224,717 1,099,675 (125,042)Other expenses 0 308,827 308,827 School lunch program 970,952 939,009 (31,943)Depreciation 1,748,332 1,713,301 (35,031)Total expenses 46,068,376 45,850,748 (217,628)

CHANGE IN NET ASSETS (5,475,240) (5,091,015) 384,225 Total revenues for the School District’s Governmental Activities increased by .4%, while total expenses decreased by .5%. The decrease of $217,628 in expenses is primarily due to a decrease in payroll expenses. State aid reported showed a decrease of $821,388, reflecting a decrease in state aid and available ARRA funds. In 2011 total taxes were up for the year by $378,073, reflecting an increase in the tax levy for 2011.

8

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2011

Figures 3 and 4 show the percentage of sources of revenue for 2011 and 2010.

Figure 3

Charges for Services

1.1% Operating Grants &

Contributions5.1%

Real Property Taxes44.9%

State and Federal Sources41.1%

Use of Money & Property

0.5%

Other General Revenues

7.2%

Sources of Revenues for 2011

Figure 4

Charges for Services

1.3% Operating Grants &

Contributions9.1%

Real Property Taxes44.1%

State and Federal Sources43.2%

Use of Money & Property

0.7%

Other General Revenues

1.5%

Sources of Revenues for 2010

9

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS


Figures 5 and 6 present the cost for each of the School District’s programs for 2011 and 2010.

Figure 5

General Support11.2%

Instruction44.0%

Pupil Transportation

3.9%

Community Svc

0.1%

Employee Benefits31.8%

Debt Service2.4%

Other Expenses

0.7%

School Lunch Program

2.0%Depreciation

3.7%

Net Cost of Programs for 2011

Figure 6

General Support11.8%

Instruction44.1%Pupil

Transportation4.0%

Community Svc

0.1%

Employee Benefits31.4%

Debt Service2.7%

Other Expenses

0.0%

School Lunch Program

2.1% Depreciation3.8%

Net Cost of Programs for 2010

10



FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT’S FUNDS Figure 7 shows the changes in fund balances for the year for the School District’s funds. As the School District completed the year, its governmental Funds, as presented in the Balance Sheet, reported a combined fund balance of $4,177,665, which is below last year’s total fund balance of $7,100,910. The decrease is primarily attributable to continued spending in the current capital project. In addition, fund balance was used to support 2010-2011 general fund expenditures.

Figure 7

Total Dollar Change

Governmental Fund Balances 2010 2011 2010 - 2011General Fund $ 13,875,241 $ 12,631,957 $ (1,243,284)Special Aid 0 0 0School Lunch 292,701 394,054 101,353 Debt Service 840,697 697,667 (143,030)Capital project (7,907,729) (9,546,013) (1,638,284)Total Fund Balance 7,100,910 4,177,665 (2,923,245)

11



GENERAL FUND BUDGETARY HIGHLIGHTS The difference between the original budget and the final amended budget was $774,862 or .9% of total general fund expenditures and may be summarized as follows: $ 720,362 – Encumbrances 54,500 – Use Of Reserves $ 774,862 The district’s policy for amending the original budget is as follows:

� All transfers equal to or less than $10,000 require superintendent approval and are not reported to the board. Transfers over $10,000 require prior board approval.

Figure 8 summarizes the original and final budgets, the actual expenditures (including encumbrances), and variances for the year ending June 30, 2011.

Figure 8

Condensed Budgetary Comparison Original Revised Actual w/ Total DollarGeneral Fund - 2011 Budget Budget Encumbrances Variance

REVENUESReal property taxes $ 15,464,306 $ 12,805,266 $ 12,791,592 $ (13,674)Real property tax items 3,066,784 5,725,824 5,506,018 (219,806)State sources 17,719,858 16,583,292 16,732,779 149,487 All other - other financing sources 1,614,800 2,751,366 2,527,595 (223,771)

Total Revenues and Other Financing $ 37,865,748 $ 37,865,748 $ 37,557,984 $ (307,764)Sources

Appropriated Fund Bal. & Reserves $ 4,570,362 $ 4,624,862 $ 0 $ (4,624,862)

Budget Grand Total $ 42,436,110 $ 42,490,610 $ 37,557,984 $ (4,932,626)EXPENDITURES

General Support 5,594,715 5,715,973 5,400,549 315,424 Instruction 19,710,585 19,777,183 18,718,039 1,059,144 Pupil transportation 1,995,736 2,023,832 1,819,945 203,887 Community services 46,739 54,349 41,061 13,288 Employee benefits 11,251,624 11,045,499 9,363,137 1,682,362 Debt service 3,806,711 3,836,711 3,828,011 8,700 Transfers to other funds 30,000 37,063 15,848 21,215

Total Expenditures, and OtherFinancing Uses $ 42,436,110 $ 42,490,610 $ 39,186,590 $ 3,304,020

12



CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of June 30, 2011, the School District had invested in a broad range of capital assets. Capital assets had a net increase of $1,798,199 over last year as shown in Figure 9 below.

Figure 9 Capital Assets Government Activities & Total School District(Net of Depreciation) Beg. Balance Adjust. Per 2011 2011 End. Balance

7/1/2010 Appraisal Additions Retire. 6/30/2011Land $ 643,826 $ 0 $ 0 $ 0 $ 643,826 CIP 10,311,930 0 2,242,359 - 12,554,289 Buildings 32,215,201 859,412 (1,235,186) 49,711 31,889,138 Equipment 2,643,628 (136,415) 70,537 (52,218) 2,525,531

Totals $ 45,814,585 $ 722,997 $ 1,077,710 $ (2,507) $ 47,612,784 Capital asset activity for the year ended June 30, 2011 included the following: New Buses (4) $ 397,075 Technology Additions 31,141 Miscellaneous Equipment 120,436 Equipment Additions 548,652 Capital Projects, net 2,242,359 Total Additions 2,791,011 Retirements, net (2,507) Depreciation (1,713,301) Adjustments per new Appraisal 722,998 Net Change $1,798,199 The School district is currently undergoing a capital project in the amount of $11,281,250 for construction and renovations to Owego Elementary School and the Apalachin Elementary School.

13



Debt Administration Debt, both short and long-term, considered a liability of Governmental Activities, increased by $4,471,689 in 2011, as shown in Figure 10. Total indebtedness represented 63.8% of the constitutional debt limit.

Figure 10

Outstanding Debt Governmental Activities & Total School District Total Dollar Change2010 2011 2010 - 2011

Serial Bonds $ 22,999,245 $ 21,245,224 $ (1,754,021)Compensated absences 160,037 232,219 72,182 Other Post Employ. Benefits 9,587,512 14,484,384 4,896,872 Due to retirement systems 1,110,628 1,495,443 384,815 Notes Payable 9,000,000 10,676,250 1,676,250 Current Liabilities 4,048,846 3,244,437 (804,409)Totals $ 46,906,268 $ 51,377,957 $ 4,471,689

Additional information on the maturities and terms of the School district’s outstanding debt can be found in the notes to these financial statements. The School District’s bond rating is AAA, which did not change from the prior year.

14



FACTORS BEARING ON THE SCHOOL DISTRICT’S FUTURE

1. In September, the Owego community suffered the disaster of a “500-year” flood. Nearly 1200 out of 1600 homes in the village were flooded, as were almost all of the businesses. In the school district, we suffered very major losses, including significant damage to the high school/middle school complex, the athletic fields, the Owego elementary school, the District Office building, and the two Maintenance buildings. We also lost numerous maintenance vehicles, almost all of the District’s paper records and files, and a huge volume of supplies and equipment. The elementary school has had to be closed for at least a year. Nearly 300 students have been displaced from their homes, and dozens of staff members suffered major losses to their homes and family businesses due to flooding.

2. We have been forced to devote herculean effort to flood recovery, and will be in that position for much of the

current year. The costs of the recovery will be staggering. We have hopes that insurance, FEMA monies, state disaster assistance, and state building aid will fund a large portion of the cost necessary to bring our district back to its pre-flood condition, but as of this writing the certainty of that proposition remains to be seen.

3. The single biggest fiscal problem facing the District has been a continued loss of state aid over the past three

years. New York has had serious financial difficulties stemming from the recession, and that has translated into a major cut in state aid for all districts. This past April, the state adopted a two-year state aid budget, promising some modest increase for the 2012-13 fiscal year. Though the exact amounts of aid are not yet known, this change should at least make budget development more straightforward, and will hopefully provided some relief to the revenue side of the District’s budget.

4. Our 2011-12 budget eliminated approximately 45 staff positions, reduced overall expenditures by $750,000, and

held the tax increase to only 1.5%. This budget passed only on the second budget vote – the first one put to the voters failed by a small margin.

5. Part of the solution for this year’s budget was to embark again on a substantial draw-down of reserves and fund

balance. Given the loss of state aid, and the imperative to keep local property taxes as low as possible, we felt we had no other choice. Our ability to use fund balance and reserves to balance future budgets will not last indefinitely.

6. The state is limiting the amount of the STAR exemption to homeowners, thus increasing local property taxes to

some individuals above the amount voters supported in the May election. We have no control over this, but it’s problematic as it makes us seem disingenuous to taxpayers as they see their tax bills increase beyond the amount we assured them it would take to fund our budget.

7. We were pleased to see our bus purchase proposition get supported at the polls in December. This continues

our long-term bus replacement strategy and maintains stability in that portion of our budget and our operation.

8. The federal government’s stimulus funding for education ended last year. This will put very major pressures on the state and on school districts, including ours. Additionally, there is continued uncertainty about the status of Medicaid support for school-provided services. The rules seem to change continually, making it extremely difficult to know which services will be reimbursed, or how much Medicaid money we should plan on as we build and manage our budgets.

15



9. This year, we will negotiate labor contracts with Subs United and with the Owego Apalachin Employees Association. These may be difficult negotiations given the extreme budget pressures on the district and significant economic pressures on our employees, our taxpayers, and our community.

10. Finally, the overall economic climate, particularly with continued high unemployment, remains very worrisome

in this area. In our community, we are especially sensitive to the decline in Lockheed Martin’s fortunes, and to the significant layoffs they have experienced over the past two years. The continued recession leads to many calls for cuts in social services, particular schooling and health care. As a public entity, that situation places many significant challenges in front of us going forward.

16



CONTACTING THE SCHOOL DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide the Owego Apalachin Central School District’s citizens, taxpayers, customers, investors and creditors with a general overview of the School District’s finances and to demonstrate the School District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Central Business Office, at Broome-Tioga BOCES at 100 Marshall Road, Endicott, New York 13760.

17

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSTATEMENTS OF NET ASSETS

JUNE 30, 2011 AND 2010

ASSETS 2011 2010Cash

Unrestricted 5,041,724$ 7,242,727$ Restricted 8,944,648 8,650,935

ReceivablesDue from fiduciary funds 44,274 110,984 State and Federal aid 1,852,048 1,282,111 Due from other governments 1,607,150 1,725,411 Other 41,404 213,570

Inventories 15,254 14,038 Capital assets, net of depreciation 47,612,784 45,814,583

Total Assets 65,159,286$ 65,054,359$

LIABILITIESPayables

Accounts payable 386,774$ 1,354,950$ Accrued liabilities 229,537 302,918 Due to fiduciary funds - 11,192 Due to other governments 658 643 Retainage payable 224,102 415,492 Due to Teachers' Retirement System 1,321,226 986,923 Due to Employees' Retirement System 174,217 123,705

Notes payableBond anticipation 10,676,250 9,000,000

Deferred creditsDeferred revenues 368,345 77,830

Long-term liabilitiesDue and payable in one year

Bonds payable 2,035,021 1,885,821 Compensated absences 232,219 160,037 Other postemployment benefits payable 14,484,384 9,587,512 Due and payable after one year

Bonds payable 21,245,224 22,999,245 Total Liabilities 51,377,957 46,906,268

NET ASSETSInvestment in capital assets, net of related debt 15,023,703 14,409,011 Restricted for:

Debt service 697,667 840,697Capital 2,522,023 2,511,848 Other restricted 5,623,842 -

Unrestricted (deficit) (10,085,906) 386,535

Total Net Assets 13,781,329$ 18,148,091$

See report of independent accountants and notes to financial statements

18

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21

2011 2010 2011 2010

ASSETSCash -$ -$ 28,089$ 123,698$ Restricted cash 2,895,028 2,903,005 109,550 114,699 Accounts receivable - - 16,185 8,530 Due from other funds - - - 11,192

Total Assets 2,895,028$ 2,903,005$ 153,824$ 258,119$

LIABILITIESDue to governmental funds -$ -$ 44,274$ 110,984$ Due to other funds - - - - Extraclassroom activity balances - - 109,550 114,699 Other liabilities - - - 59

Total Liabilities - - 153,824 225,742

NET ASSETSReserved for scholarships 2,895,028 2,903,005 - 32,377

2,895,028$ 2,903,005$ 153,824$ 258,119$

2011 2010

ADDITIONSGifts and contributions 36,000$ 36,090$ Investment earnings 12,323 16,518

Total Additions 48,323 52,608

DEDUCTIONSScholarships and awards 56,300 57,400

Change in Net Assets (7,977) (4,792)

Net Assets - Beginning of year 2,903,005 2,907,797

Net Assets - End of Year 2,895,028$ 2,903,005$

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSTATEMENTS OF FIDUCIARY NET ASSETS - FIDUCIARY FUNDS

JUNE 30, 2011 AND 2010

Purpose Trusts

Purpose TrustsPrivate

PrivateAgency

STATEMENTS OF CHANGES IN FIDUCIARY NET ASSETS - FIDUCIARY FUNDSFOR THE YEARS ENDED JUNE 30, 2011 AND 2010


22

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTRECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

Total Long-Term Reclassifications Statement ofGovernmental Assets, and Net Assets

Funds Liabilities Eliminations Totals

ASSETSCash

Unrestricted 5,041,724$ -$ -$ 5,041,724$ Restricted investments 8,944,648 - - 8,944,648

ReceivablesDue from other funds 879,021 - (879,021) - Due from fiduciary funds 44,274 - - 44,274 State and Federal aid 1,852,048 - - 1,852,048 Due from other governments 1,607,150 - - 1,607,150 Other 41,404 - - 41,404

Inventories 15,254 - - 15,254 Capital assets, net of depreciation - 47,612,784 - 47,612,784

Total Assets 18,425,523$ 47,612,784$ (879,021)$ 65,159,286$

LIABILITIESPayables

Accounts payable 386,774$ -$ -$ 386,774$ Accrued liabilities 217,265 12,272 - 229,537 Due to other funds 879,021 - (879,021) - Due to fiduciary funds - - - - Due to other governments 658 - - 658 Retainage payable 224,102 - - 224,102 Due to Teachers' Retirement System 1,321,226 - - 1,321,226 Due to Employees' Retirement System 174,217 - - 174,217

Notes payableBond anticipation 10,676,250 - - 10,676,250

Deferred creditsDeferred revenues 368,345 - - 368,345

Long-term liabilitiesCompensated absences payable - 232,219 - 232,219 Bonds payable - 23,280,245 - 23,280,245 Other postemployment benefits payable - 14,484,384 - 14,484,384

Total Liabilities 14,247,858 38,009,120 (879,021) 51,377,957

FUND BALANCE\NET ASSETSTotal fund balance/net assets 4,177,665 9,603,664 - 13,781,329

Total Liabilities and Fund Balance/Net Assets 18,425,523$ 47,612,784$ (879,021)$ 65,159,286$



23

RECONCILIATION OF GOVERNMENTAL FUNDS REVENUES, EXPENDITURES, AND CHANGES INFUND EQUITY TO THE STATEMENT OF ACTIVITIES


Total Long-term Capital Long-Term Statement ofGovernmental Revenue, Related Debt Activities

Funds Expenses Items Transactions TotalsREVENUES Real property taxes 12,791,592$ -$ -$ -$ 12,791,592$ Other tax items 5,506,018 - - - 5,506,018 Charges for services 71,681 - - - 71,681 Use of money and property 221,434 - - - 221,434 Sale of property and

compensation for loss 10,088 - (2,507) - 7,581 Miscellaneous 1,213,835 - - - 1,213,835 State sources 17,169,771 - - - 17,169,771 Medicaid reimbursement 71,108 - - - 71,108 Federal sources 3,246,442 - - - 3,246,442 Local sources 9,588 - - - 9,588 Surplus food 57,224 - - - 57,224 Sales - school lunch 393,459 - - - 393,459

Total Revenues 40,762,240 - (2,507) - 40,759,733

EXPENDITURES\EXPENSESGeneral support 5,219,314 - (76,254) - 5,143,060 Instruction 20,248,363 - (54,445) - 20,193,918 Pupil transportation 1,810,433 - (5,628) - 1,804,805 Community service 44,964 - - - 44,964 Employee benefits 9,634,135 - - 4,969,054 14,603,189 Debt service

Principal 7,330,821 - - (7,330,821) - Interest 1,222,190 - - (122,515) 1,099,675

Cost of sales 954,409 - (15,400) - 939,009 Other expenditures 308,827 308,827 Depreciation - - 1,713,301 - 1,713,301 Capital outlay 2,639,284 - (2,639,284) - -

Total Expenditures 49,412,740 - (1,077,710) (2,484,282) 45,850,748

Excess (Deficiency)of Revenues Over Expenditures (8,650,500) - 1,075,203 2,484,282 (5,091,015)

OTHER SOURCES AND USESProceeds from debt 5,726,000 - - (5,726,000) - Operating transfers in 16,773 - - - 16,773 Operating transfers (out) (16,773) - - - (16,773)

Total Other Sources (Uses) 5,726,000 - - (5,726,000) -

Prior Period Adjustment 1,256 - - - 1,256

Net Change for the Year (2,923,244)$ -$ 1,075,203$ (3,241,718)$ (5,089,759)$



24


NOTES TO FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF CERTAIN SIGNIFICANT ACCOUNTING POLICIES:

The financial statements of the Owego-Apalachin Central School District have been prepared in conformity with generally accepted accounting principles (GAAP) as apply to governmental units. Those principles are prescribed by the Governmental Accounting Standards Board (GASB), which is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting principles and policies utilized by the District are described below:

A) Reporting entity:

The Owego-Apalachin Central School District is governed by the laws of New York State. The District is an independent entity governed by an elected Board of Education consisting of seven members. The President of the Board serves as the chief fiscal officer and the Superintendent is the chief executive officer. The Board is responsible for, and controls all activities related to public school education within the District. Board members have authority to make decisions, power to appoint management, and primary accountability for all fiscal matters.

The reporting entity of the District is based upon criteria set forth by GASB Statement 14, The Financial Reporting Entity, as amended by GASB Statement 39, Component Units. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The accompanying financial statements present the activities of the District and its component unit. The District is not a component unit of another reporting entity. The decision to include a potential component unit in the District’s reporting entity is based on several criteria including legal standing, fiscal dependency, and financial accountability. Based on the application of these criteria, the following is a brief description of certain entities included in the District’s reporting entity.

i) Extraclassroom Activity Funds:

The Extraclassroom Activity Funds of the District represent funds of the students of the District. The Board of Education exercises general oversight of these funds. The Extraclassroom Activity Funds are independent of the District with respect to its financial transactions, and the designation of student management. Separate audited financial statements (cash basis) of the Extraclassroom Activity Funds can be found at the District's business office. The District accounts for assets held as an agent for various student organizations in an agency fund.

See audit report of independent accountants

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):

B) Joint venture:

The District is a component district in the Broome-Tioga Board of Cooperative Educational Services. A Board of Cooperative Educational Services (BOCES) is a voluntary, cooperative association of school districts in a geographic area that shares planning, services and programs which provide educational and support activities. There is no authority or process by which a school district can terminate its status as a BOCES component.

BOCES are organized under Section 1950 of the New York State Education Law. A BOCES Board is considered a corporate body. Members of a BOCES Board are nominated and elected by their component member boards in accordance with provisions of Section 1950 of the New York State Education Law. All BOCES property is held by the BOCES Board as a corporation (Section 1950(6)). In addition, BOCES Boards also are considered municipal corporations to permit them to contract with other municipalities on a cooperative basis under Section 119-n(a) of the New York State General Municipal Law.

A BOCES’ budget is comprised of separate budgets for administrative, program and capital costs. Each component district's share of administrative and capital cost is determined by resident public school district enrollment as defined in The New York State Education Law, Section 1950(4)(b)(7). In addition, component districts pay tuition or a service fee for programs in which its students participate.

During the year, the District was billed $5,049,968 for BOCES administrative and program costs.

The District’s share of BOCES aid amounted to $2,134,875.

Financial statements for the BOCES are available from the BOCES administrative office.

C) Basis of presentation:

i) District-wide statements:

The Statement of Net Assets and the Statement of Activities present financial information about the District’s governmental activities. These statements include the financial activities of the overall government in its entirety, except those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions. Governmental activities generally are financed through taxes, State aid, intergovernmental revenues, and other exchange and nonexchange transactions. Operating grants include operating- specific and discretionary (either operating or capital) grants, while the capital grants column reflects capital-specific grants.


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C) Basis of presentation (Continued):

ii) District-wide statements (Continued):

The Statement of Activities presents a comparison between programexpenses and program revenues for each function of the District’s governmental activities. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Indirect expenses, principally employees benefits are allocated to functional areas in proportion to the payroll expended for those areas. Program revenues include charges paid by the recipients of goods or services offered by the programs, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

iii) Fund financial statements:

The fund statements provide information about the District’s funds, including fiduciary funds. Separate statements for each fund category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.

The District reports the following major governmental funds:

General Fund: This is the District’s primary operating fund. It accounts for all financial transactions that are not required to be accounted for in another fund.

Capital Projects Funds: These funds are used to account for the financial resources used for acquisition, construction or major repair of capital facilities. For these funds, each capital project is assessed to determine whether it is a major or non-major fund. Those capital projects are determined to be major are reported in separate columns in the financial statements. Those that are determined to be non-major are reported in the supplemental schedules either separately or in the aggregate.

Debt Service Fund: This fund accounts for the accumulation of resources and the payment of principal and interest on long-term general obligation debt of governmental activities.

The District reports the following fiduciary funds:

Fiduciary Fund: Fiduciary activities are those in which the District acts as trustee or agent for resources that belong to others. These activities are not included in the District-wide financial statements, because their resources do not belong to the District, and are not available to be used. There are two classes of fiduciary funds:

Private purpose funds: These funds are used to account for trust arrangements in which principal and income benefits annual third party awards and scholarships for students. Established criteria govern the use of the funds and members of the District or representatives of the donors may serve on committees to determine who benefits.


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Agency funds: These funds are strictly custodial in nature and do not involve the measurement of results of operations. Assets are held by the District as agent for various student groups or extraclassroom activity funds and for payroll or employee withholding.

D) Measurement focus and basis of accounting:

The District-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash transaction takes place. Nonexchange transactions, in which the District gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The fund statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within one year after the end of the fiscal year.

Expenditures are recorded when the related fund liability is incurred, except for the principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources.

E) Property taxes:

Real property taxes are levied annually by the Board of Education no later than September 1, and become a lien on September 1. Taxes were collected during the period September 1, 2010 through November 1, 2010.

Uncollected real property taxes are subsequently enforced by the County in which the District is located. The County pays an amount representing uncollected real property taxes transmitted to the County for enforcement to the District no later than the following April 1.

F) Restricted resources:

When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the District’s policy concerning which to applyfirst varies with the intended use, and with associated legal requirements, many of which are described elsewhere in these Notes.


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G) Interfund transactions:

The operations of the District include transactions between funds. These transaction may be temporary in nature, such as with interfund borrowings. The District typically loans resources between funds for the purpose of providing cash flow. These interfund receivables and payables are expected to be repaid within one year. Permanent transfers of funds include the transfer of expenditure and revenues to provide financing or other services.

In the district-wide statements, the amounts reported on the Statement of Net Assets for interfund receivables and payables represent amounts due between different fund types (governmental activities and fiduciary funds). Eliminations have been made for all interfund receivables and payables between the funds, with the exception of those due from or to the fiduciary funds.

The governmental funds report all interfund transactions as originally recorded. Interfund receivables and payables may be netted on the accompanying governmental funds balance sheet when it is the District’s practice to settle these amounts at a net balance based upon the right of legal offset.

Refer to Note 9 for a detailed disclosure by individual fund for interfund receivables, payables, expenditures and revenues activity.

H) Estimates:

The preparation of financial statements in conformity accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period.

Actual results could differ from these estimates. Estimates and assumptions are made in a variety of areas, including computation of encumbrances, compensated absences, potential contingent liabilities and useful lives of long-lived assets.

I) Cash (and cash equivalents)/Investments:

The District’s cash and cash equivalents consist of cash on hand, demand deposits,and short-term investments with original maturities of three months or less from date of acquisition. New York State law governs the District’s investment policies. Resources must be deposited in FDIC-insured commercial banks or trust companies located within the State. Permissible investments include obligations of the United States Treasury, United States Agencies, repurchase agreements and obligations of New York State or its localities. Collateral is required for demand and time deposits and certificates of deposit not covered by FDIC insurance. Investments are stated at fair value.

J) Accounts receivable:

Accounts receivable are shown gross, with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that such allowance would not be material.


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K) Inventories and prepaid items:

Inventories of food in the School Lunch Fund are recorded at cost on a first-in, first-out basis, or in the case of surplus food, at stated value which approximates market. Purchases of inventoriable items in other funds are recorded as expenditures at the time of purchase, and are considered immaterial in amount. Prepaid items represent payments made by the District for which benefits extend beyond year-end.

Prepaid items represent payments made by the District for which benefits extend beyond year-end. These payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the district-wide and fund financial statements. These items are reported as assets on the statement of net assets or balance sheet using the consumption method. A current asset for the prepaid amount is recorded at the time of purchase and an expense/expenditure is reported in the year the goods or services are consumed.

A reserve for these non-liquid assets (inventories and prepaid items) has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures.

L) Capital assets:

Capital assets are reported at actual cost for acquisitions subsequent to June 30, 2011. For assets acquired prior to June 30, 2011, estimated historical costs, based on appraisals conducted by independent third party professionals were used. Donated assets are reported at estimated fair market value at the time received.

Capitalization thresholds (the dollar value above which asset acquisitions are added to the capital asset accounts), depreciation methods, and estimated useful lives of capital assets reported in the District-wide statements are as follows:

Capitalization Depreciation EstimatedThreshold Method Useful Life

Buildings $ 5,000 SL 40Building improvements 5,000 SL 20Site improvements 5,000 SL 20Furniture and equipment 5,000 SL 5-20

M) Deferred revenue:

Deferred revenues are reported when potential revenues do not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to the incidence of qualifying expenditures. In subsequent periods, when both recognition criteria are met, or when the District has legal claim to the resources, the liability for deferred revenues is removed and revenues are recorded.


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M) Deferred revenue (Continued):

Statute provides the authority for the District to levy taxes to be used to finance expenditures within the first 120 days of the succeeding fiscal year.

Consequently, such amounts are recognized as revenue in the subsequent fiscal year, rather than when measurable and available.

Many deferred revenues recorded in governmental funds are not recorded in the District-wide statements.

N) Vested employee benefits:

Compensated absences

Compensated absences consist of unpaid accumulated annual sick leave, vacation, and sabbatical time.

Sick leave eligibility and accumulation is specified in negotiated labor contracts, and in individual employment contracts. Upon retirement, resignation or death, employees may contractually receive a payment based on unused accumulated sick leave.

District employees are granted vacation in varying amounts, based primarily on length of service and service position. Some earned benefits may be forfeited if not taken within varying time periods.

Consistent with GASB Statement 16, Accounting for Compensated Absences, the liability has been calculated using the vesting/ termination method and an accrual for that liability is included in the district-wide financial statements. The compensated absences liability is calculated based on the pay rates in effect at year-end.

In the funds statements only the amount of matured liabilities is accrued within the General Fund based upon expandable and available financial resources. These amounts are expensed on a pay-as-you go basis.

O) Other Benefits

District employees participate in the New York State Employees’ Retirement System and the New York State Teachers’ Retirement System.

In addition to providing pension benefits, the District provides health insurance coverage and survivor benefits to retired employees and their survivors. Substantially all of the District’s employees may become eligible for these benefits if they reach normal retirement age while working for the District. Health care benefits are provided through plans whose premiums are based on the benefits paid during the year. The cost of providing post-retirement benefits is paid by the District. The District recognizes the cost of providing health insurance by recording the insurance premiums as an expenditure.


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P) Short-term debt:

The District may issue Revenue Anticipation Notes (RAN) and Tax Anticipation Notes (TAN), in anticipation of the receipt of revenues. These notes are recorded as a liability of the fund that will actually receive the proceeds from the issuance of the notes. The RAN's and TAN's represent a liability that will be extinguished by the use of expendable, available resources of the fund.

The District may issue budget notes up to an amount not to exceed 5% of the amount of the annual budget during any fiscal year for expenditures for which there is an insufficient or no provision made in the annual budget. The budget note must be repaid no later than the close of the second fiscal year succeeding the year in which the note was issued.

The District may issue Bond Anticipation Notes (BAN), in anticipation of proceeds from the subsequent sale of bonds. These notes are recorded as current liabilities of the funds that will actually receive the proceeds from the issuance of bonds. State law requires that BAN's issued for capital purposes are converted to long-term financing within five years after the original issue date.

Q) Accrued liabilities and long-term obligations:

Payables, accrued liabilities and long-term obligations are reported in the district-wide financial statements. In the governmental funds, payables and accrued liabilities are paid in a timely manner and in full from current financial resources. Claims and judgments, and compensated absences that will be paid from governmental funds, are reported as a liability in the funds financial statements only to the extent that they are due for payment in the current year. Bonds and other long-term obligations that will be paid from governmental funds are recognized as a liability in the fund financial statements when due.

Long-term obligations represent the District’s future obligations or future economic outflows. The liabilities are reported as due in one year or due within more than one year in the Statement of Net Assets.

R) Equity Classifications:

District-wide statements

In the district-wide statements there are three classes of net assets:

Invested in capital assets, net of related debt – consists of net capital assets (cost less accumulated depreciation) reduced by outstanding balances of related debt obligations from the acquisition, constructions or improvements of those assets.

Restricted net assets – reports net assets when constraints placed on the assets are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.


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R) Equity Classifications (Continued):

District-wide statements (Continued)

In the district-wide statements there are three classes of net assets(Continued):

Unrestricted net assets – reports all other net assets that do not meet the definition of the above two classifications and are deemed to be available for general use by the District.

Funds statements:

In the fund basis statements there are five classifications of fund balance:

Non-spendable Fund Balance – Includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Non-spendable fund balance includes the inventory recorded in the School Lunch Fund of $15,254.

Restricted – Includes amounts with constraints placed on the use of resources either externally imposed by creditors, grantors, contributors or laws or regulations of other governments; or imposed by law through constitutionalprovisions or enabling legislation. All encumbrances of funds other than the General Fund are classified as restricted fund balance. The School District has established the following restricted fund balances:

Capital

Capital reserve (Education Law §3651) is used to pay the cost of any object or purpose for which bonds may be issued. The creation of a capital reserve fund requires authorization by a majority of the voters establishing the purpose of the reserve; the ultimate amount, its probable term and the source of the funds. Expenditure may be made from the reserve only for a specific purpose further authorized by the voters. The form for the required legal notice for the vote on establishing and funding the reserve and the form of the proposition to be placed on the ballot are set forth in §3651 of the Education Law. This reserve is accounted for in the General Fund.

Debt Service

According to General Municipal Law §6-1, the Mandatory Reserve or Debt Service must be established for the purpose of retiring the outstanding obligations upon the sale of District property or capital improvement that was financed by obligations that remain outstanding at the time of sale. The funding of the reserve is from the proceeds of the sale of School District property or capital improvement.


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Funds statements (Continued):

Employee Benefit Accrued Liability

According to the General Municipal Law §6-p, must be used for the payment of accrued employee benefit due an employee upon termination of the employee’s service. This reserve may be established by a majority vote of the Board, and is funded by budgetary appropriations and such other reserves and funds that may be legally appropriated.

Repairs

According to the General Municipal Law §6-d, must be used to pay the cost of repairs to capital improvements or equipment, which repairs are of a typenot recurring annually. The Board of Education, without voter approval may,establishes a repair reserve fund by a majority vote of its members. Voter approval is required to fund this reserve (Opinion of the New York State Comptroller 81-401). Expenditures from this reserve may be made only after a public hearing has been held, except in emergency situations. If no hearing is held, the amount expended must be repaid to the reserve fund over the next two subsequent fiscal years. This reserve is accounted for in the General Fund.

Retirement Contributions

According to the General Municipal Law §6-r, must be used for financing retirement contributions. The reserve must be accounted for separate and apart from all other funds and a detailed report of the operation and condition of the fund must be provided to the Board.

Tax Certiorari

According to Education Law Section §3651.1-a, must be used to establish a reserve fund for tax certiorari and to expend from the fund without voter approval. The monies held in the reserve shall not exceed the amount which might reasonably be deemed necessary to meet anticipated judgments and claims arising out of tax certiorari proceedings. Any resources deposited to the reserve which are not expended for tax certiorari proceedings in the year such monies are deposited must be returned to the General Fund on or before the first day of the fourth fiscal year after deposit of these monies.


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Unemployment Insurance

According to General Municipal Law §6-m, must be used to pay the cost of reimbursement to the State Unemployment Insurance Fund for payments made to claimants where the employer has elected to use the benefit reimbursement method. The reserve may be established by Board action and is funded by budgetary appropriations and such other funds as may be legally appropriated. Within sixty days after the end of any fiscal year, excess amounts may either be transferred to another reserve or the excess applied to the appropriations of the next succeeding fiscal year’s budget. If the District elects to convert to tax (contribution) basis, excess resources in the fund over the sum sufficient to pay pending claims may be transferred to any other reserve fund.

Worker’s Compensation

According to General Municipal Law §6-j, must be used to pay for compensation benefits and other expenses authorized by Article 2 of the Worker’s Compensation Law and for payment of expenses of administering this self-insurance program. The reserve may be established by Board action, and is funded by budgetary appropriations and such other funds as may be legally appropriated. Within sixty days after the end of any fiscal year, excess amounts may either be transferred to another reserve or the excess applied to the appropriations of the next succeeding fiscal year’s budget.

Encumbrances

Encumbrances accounting, under which purchase orders, contracts and other commitments of expenditures are recorded for budgetary control purposes in order to reserve applicable appropriations is employed as a control in preventing over-expenditure of established appropriations. Open encumbrances are reported as restricted fund balance in all funds other than the General Fund, since they do not constitute expenditures or liabilities and will be honored through the budget appropriations in the subsequent year.


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Encumbrances (Continued)

Restricted fund balance includes the following:

General Fund:Capital $ 2,522,022Employee Benefit Accrued Liability 526,481Repairs 294,527Retirement Contributions 3,836,428Tax Certiorari 387,226Unemployment Insurance 200,381

Debt Service Fund* 697,667Special Aid Fund* -School Lunch Fund* 378,800

Total restricted funds $ 8,843,532

*includes remaining fund balance in these funds not otherwise classified as nonspendable, committed or assigned.

Committed – Includes amounts that can only be used for the specific purposes pursuant to constraints imposed by form action of the school districts highest level of decision making authority, i.e., the Board of Education. The School Board has no committed fund balances as of June 30, 2011.

Assigned – Includes amounts that are constrained by the school district’s intent to be used for specific purposes, but are neither restricted nor committed. All encumbrances of the General Fund are classified as Assigned Fund Balance in the General Fund. Encumbrances reported in the General Fund amounted to $385,114.

Unassigned – Includes all other General Fund net assets that do not meet the definition of the above four classifications and are deemed to be available for general use by the School District.

NYS Real Property Law 1318 limits the amount of unexpected surplus funds a school district can retain to no more than 4% of the School District’s budget for the ensuing fiscal year. Nonspendable and restricted fund balance of the General Fund are excluded from the 4% limitation. Amounts appropriated for the subsequent year and encumbrances are also excluded from the 4% limitation.


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Order of use of Fund Balance

The District’s policy is to apply expenditures against nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance at the end of the fiscal year. For all funds, nonspendable fund balances are determined first and then restricted fund balances for specific purposes are determined. Any remaining fund balance amounts for funds other than the General Fund are classified as restricted fund balance. In the General Fund, committed fund balance is determined next and then assigned. The remaining amounts are reported as unassigned. Assignments of fund balance cannot cause a negative unassigned fund balance.

S) New Accounting Standards:

The District has adopted all current Statements of Governmental Accounting Standards Board (GASB) that are applicable. At June 30, 2011, the District implemented the following new standard issued by GASB:

GASB has issued Statement 51, Accounting and Reporting for Intangible Assets, which improves financial reporting by reducing inconsistencies that have developed in accounting and financial reporting for intangible assets.

GASB has issued Statement 52, Land and Other Real Estate Held as Investment by Endowments, which establishes consistent standards for reporting of land and other real estate held as investments by essentially similar entities.

GASB has issued Statement 53, Accounting and Financial Reporting for Derivative instruments, which addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments.

GASB has issued Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, which enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions.

NOTE 2: EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL FUND STATEMENTS AND DISTRICT-WIDE STATEMENTS:

Due to the differences in the measurement focus and basis of accounting used in the funds statements and the District-wide statements, certain financial transactions are treated differently. The basic financial statements contain a full reconciliation of these items. The differences result primarily from the economic focus of the Statement of Activities, compared with the current financial resources focus of the governmental funds.


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NOTE 2: EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL FUND STATEMENTS AND DISTRICT-WIDE STATEMENTS: (CONTINUED)

Total fund balances of governmental funds vs. net assets of governmental activities:

Total fund balances of the District’s governmental funds differ from Anet assets@ of governmental activities reported in the Statement of Net Assets. This difference primarily results from the additional long-term economic focus of the Statement of Net Assets versus the solely current financial resources focus of the governmental fund Balance Sheets.

Statement of Revenues, Expenditures and Changes in Fund Balance vs. Statement of Activities:

Differences between the funds Statement of Revenues, Expenditures and Changes in Fund Balance and the Statement of Activities fall into one of three broad categories. The amounts shown below represent:

i) Long-term revenue differences:

Long-term revenue differences arise because governmental funds report revenues only when they are considered Aavailable@, whereas the Statement of Activities reports revenues when earned. Differences in long-term expenses arise because governmental funds report on a modified accrual basis, whereas the accrual basis of accounting is used on the Statement of Activities.

ii) Capital related differences:

Capital related differences include the difference between proceeds for the sale of capital assets reported on fund statements and the gain or loss on the sale of assets as reported on the Statement of Activities, and the difference between recording an expenditure for the purchase of capital items in the fund statements and depreciation expense on those items as recorded in the Statement of Activities.

iii) Long-term debt transaction differences:

Long-term debt transaction differences occur because both interest and principal payments are recorded as expenditures in the fund statements, whereas interest payments are recorded in the Statement of Activities as incurred, and principal payments are recorded as a reduction of liabilities in the Statement of Net Assets.

NOTE 3: STEWARDSHIP AND COMPLIANCE AND ACCOUNTABILITY:

Budgets

The District administration prepares a proposed budget for approval by the Board of Education for the following governmental funds for which legal (appropriated) budgets are adopted:


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NOTE 3: STEWARDSHIP AND COMPLIANCE AND ACCOUNTABILITY (CONTINUED):

Budgets (Continued)

The voters of the District approved the proposed appropriation budget for the General Fund.

Appropriations are adopted at the program line item level.

Appropriations established by the adoption of the budget constitute a limitation on expenditures (and encumbrances) that may be incurred. Appropriations lapse at the end of the fiscal year unless expended or encumbered. Encumbrances will lapse if not expended in the subsequent year. Appropriations authorized for the current year are increased by the planned use of specific reserves, and budget amendments approved the Board of Education as a result of selected new revenue sources not included in the original budget (when permitted by law). These Supplemental appropriations may occur subject to legal restrictions, if the Board approves them because of a need that exists which was not determined at the time the budget was adopted. The following supplemental appropriations occurred during the year:

1. Encumbrances $ 720,3622. Appropriated Reserves 54,500

Budgets are adapted annually on a basis consistent with GAAP. Appropriations authorized for the year are increased by the amount of encumbrances carried forward from the prior year.

Budgets are established and used for individual capital project funds expenditures as approved by a special referendum of the District’s voters. The maximum project amount authorized is based primarily upon the cost of the project, plus any requirements for external borrowings, not annual appropriations. These budgets do not lapse and are carried over to subsequent fiscal years until the completion of the projects.

Encumbrances

Encumbrance accounting is used for budget control and monitoring purposes and is reported as a part of the governmental funds. Under this method, purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve applicable appropriations. Outstanding encumbrances as of year-end are presented as reservations of fund balance and do not represent expenditures or liabilities. These commitments will be honored in the subsequent period. Related expenditures are recognized at that time, as the liability is incurred or the commitment is paid.


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NOTE 4: CASH (AND CASH EQUIVALENTS) CUSTODIAL CREDIT, CONCENTRATION OF CREDIT, INTEREST RATE AND FOREIGN CURRENCY RISKS:

Cash:

Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. While the District does not have a specific policy for custodial credit risk, New York State statues govern the District’s investment policies, as discussed previously in these Notes.

The District’s aggregate bank balances (disclosed in the financial statements), included balances not covered by depository insurance at year end, collateralized as follows:

Uncollateralized $ -

Collateralized with securities held by the pledging financial institution, or its’ trust department or agent, but not in the District’s name. $ 17,028,301

Restricted cash represents cash and cash equivalents where use is limited by legal requirements. These assets represent amounts required by statute to be reserved for various purposes. Restricted cash as of year-end includes $8,944,648 within the governmental funds and $3,004,576 in the fiduciary funds.

NOTE 5: RECEIVABLES:

Receivables at year-end for individual major funds and non-major funds, including the applicable allowances for uncollectible accounts, are as follows:

Governmental ActivitiesDescription General Fund School Lunch Special Aid Total

Accounts receivable 37,290$ 4,114$ -$ 41,404$ Due from State and Federal 1,005,932 43,142 802,974 1,852,048 Due from other governments 1,607,150 - - 1,607,150

Total 2,650,372$ 47,256$ 802,974$ 3,500,602$

District management has deemed the amounts to be fully collectible.


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NOTE 6: CAPITAL ASSETS:

Capital asset balances and activity were as follows:

Beginning Retirements/ Ending Balance Additions Reclassifications Adjustments Balance

Governmental Activities:Capital assets that are

not depreciated:Land $ 643,826 $ - $ - $ - $ 643,826

Construction in progress 10,311,930 2,242,359 - - 12,554,289 Total non-depreciable 10,955,756 2,242,359 - - 13,198,115

Capital assets that aredepreciated:

Buildings 45,908,794 - 17,500 4,721,697 50,647,991 Furniture and equipment 6,862,849 548,652 ( 142,141) 270,552 7,539,912 Total depreciable assets 52,771,643 548,652 ( 124,641) 4,992,249 58,187,903

Less accumulated depreciation:

Buildings ( 13,693,595) ( 1,235,186) 32,211 ( 3,862,284) ( 18,758,854) Furniture and equipment ( 4,219,221) ( 478,115) 89,923 ( 406,967) ( 5,014,380) Total accumulated depreciation ( 17,912,816) ( 1,713,301) 122,134 ( 4,269,252) ( 23,773,234)

Total depreciable assets, net 34,858,827 ( 1,164,649) ( 2,507) 722,997 34,414,669

Total capital assets $ 45,814,583 $ 1,077,710 $ ( 2,507) $ 722,997 $ 47,612,784

Depreciation expense was charged to governmental functions as follows:

General Support $ 42,364 Instruction 1,267,461Pupil transportation 369,930School lunch 33,546

$ 1,713,301

NOTE 7: SHORT-TERM DEBT:

Transactions in short-term debt for the year are summarized below:

Interest Beginning EndingMaturity Rate Balance Issued Redeemed Balance

BAN 8/19/10 1.5% $ 9,000,000$ - $ 9,000,000 $ -BAN 6/20/12 1.5% - 10,676,250 - 10,676,250

Total $ 9,000,000 $ 10,676,250 $ 9,000,000 $ 10,676,250


41



NOTE 7: SHORT TERM DEBT (CONTINUED):

Interest on short-term debt for the year was composed of:

Interest paid $ 243,206

Less interest accrued in the prior year (81,764)Plus interest accrued in the current year 4,388Less interest amortization of bond premium (2,279)

Total expense $ 163,551

NOTE 8: LONG-TERM DEBT:

Long-term liability balances and activity for the year are summarized below: Amounts

Beginning Ending Due WithinBalance Additions Reductions Balance One Year

Government activities:Bonds and note payable:

General obligation debt:Serial Bonds $ 23,975,000 $ 4,725,000 $ 6,500,000 $ 22,200,000 $ 1,730,000Statutory installment bond 910,066 396,000 225,820 1,080,244 305,021Total bonds & notes payable 24,885,066 $ 5,121,000 $ 6,725,820 $ 23,280,244 2,035,021

Other liabilities:Compensated absences 160,037 72,182 - 232,219 -Other post-employmenthealth insurance benefits 9,587,512 4,896,872 - 14,484,384 -

Total long-term liabilities $ 34,632,616 $ 10,090,054 $ 6,725,820 $ 37,996,847 $ 2,035,021

The general fund has typically been used to liquidate long-term liabilities such as compensated absences.

Existing serial and statutory bond obligations:

Description of Issue Issue Date Final Maturity Interest Rate Balance

Serial Bond 7/15/04 6/15/23 3.00% - 4.50% $ 15,470,000Serial Bond 7/15/04 6/15/34 4.50% - 5.00% 2,665,000

Refunding Serial Bond 9/15/10 6/15/20 2.50% 4,065,000Statutory Installment Bond 3/28/08 3/28/13 3.25% 142,393Statutory Installment Bond 1/09/09 1/09/14 4.10% 229,944Statutory Installment Bond 11/20/09 11/15/14 3.20% 311,908Statutory Installment Bond 2/11/10 2/11/16 2.90% 396,000

See report of independent accountants

42



NOTE 8: LONG-TERM DEBT (CONTINUED):

The following is a summary of debt service requirements:

Principal Interest Total Fiscal year ended:

June 30, 2012 $ 2,035,021 $ 965,042 $ 3,000,0632013 2,100,020 891,618 2,991,6392014 2,093,825 815,770 2,909,5952015 1,712,178 733,060 2,445,2382016 1,694,200 666,941 2,361,1412017-2021 8,700,000 2,260,036 10,960,0362022-2026 3,680,000 606,713 4,286,7132027-2031 735,000 244,938 979,9382032-2036 530,000 53,750 583,750

Totals $ 23,280,244 $ 7,237,868 $ 30,518,113

Interest on long-term debt for the year was composed of:

Interest paid $ 978,984Interest Accrued as of June 30, 2010 (53,023)Interest Accrued as of June 30, 2011 50,064Less interest amortization of bond premium (39,901)

Total expense $ 936,124

On September 15, 2011, $4.725 million in general obligation bonds with an average interest rate of 2.5% were issued to advance refund $4.725 million of outstanding bonds with an average interest rate of 4.35%. The net proceeds of $4.725 million (after payment of $30,188 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the financial statements. This refunding decreases total debt service payments over the next 10 years by $377,175 resulting in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $348,118.

NOTE 9: PENSION PLANS:

General information:

The District participates in the New York State Employees’ Retirement System (NYSERS) and New York State Teachers’ Retirement System (NYSTRS). These are cost-sharing multiple employer public employee retirement systems. The Systems offer a wide range of plans and benefits, which are related to years of services and final average salary, vesting of retirement benefits, death and disability.


43



NOTE 9: PENSION PLANS (CONTINUED):

Provisions and administration:

The New York State Teachers’ Retirement Board administers NYSTRS. The System provides benefits to plan members and beneficiaries as authorized by the Education Law and the Retirement and Social Security Law of the State of New York. NYSTRS issues a publicly available financial report that contains financial statements and required supplementary information for the System. The report may be obtained by writing to NYSTRS, 10 Corporate Woods Drive, Albany, New York 12211-2395.

NYSERS provides retirement benefits as well as death and disability benefits. New York State Retirement and Social Security Law govern obligations of employers and employees to contribute, and benefits to employees. The System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to NYSERS, Governor Alfred E. Smith State Office Building, Albany, New York 12244.

Funding policies:

The Systems are noncontributory, for the employee except for those who joined the Systems after July 27, 1976, who contribute 3% of their salary, except that employees in the Systems more than ten years are no longer required to contribute. For NYSERS, the Comptroller certifies the rates expressed as proportions of members’ payroll annually, which are used in computing the contributions required to be made by employers to the pension accumulation fund. Pursuant to Article 11 of the Education Law, the New York State Teachers’ Retirement Board establishes rates annually for NYSTRS.

The District is required to contribute at an actuarially determined rate. The District contributions made to the Systems were equal to 100% of the contributions required for each year. The required contributions for the current year and two preceding years were:

NYSTRS NYSERS

2010 – 2011 $ 979,690 $ 477,6572009 – 2010 1,137,770 303,5412008 – 2009 1,215,433 298,171

Since 1989, the NYSERS billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts, relating to the System’s fiscal years ending March 31, 1988 and 1989 over a 17-year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability, which the District exercised. There was no unpaid liability at the end of the year.


44



NOTE 10: INTERFUND BALANCES AND ACTIVITY:

Interfund InterfundReceivable Payable Revenues Expenditures

General Fund $ 844,109 $ 78,736 $ - $ 15,848Special Aid Funds - 799,835 12,544 -School Lunch Fund 78,736 - 3,304 -Debt Service 450 - - -Capital Funds - 450 - - Total government activities 923,295 879,021 15,848 15,848

FiduciaryAgency Fund - 44,274 - -Expendable Trust - - - -

Totals $ 923,295 $ 923,295 $ 15,848 $ 15,848

Interfund receivables and payables, other than between governmental activities and fiduciary funds, are eliminated on the Statement of Net Assets.

The District typically transfers from the General Fund to the Special Aid Fund, to fund the local share of the Section 4408, Summer School Handicapped Program.

The District typically loans resources between funds for the purpose of mitigating the effects of transient cash flow issues.

All interfund payables are expected to be repaid within one year.

NOTE 11: POST-EMPLOYMENT HEALTH BENEFITS:

Post-employment benefits, primarily health care, aggregated $2,336,564 for approximately 257 employees for the year.

The District has obtained an actuarial valuation report as of July 1, 2010 which indicates that the total present value of future benefits for other post employment benefits is$73,543,078, which is reflected in the Statement of Net Assets.

Plan Description: The healthcare School District provides medical, dental, and Medicare Part B benefits to its eligible retires. The benefits are provided through fully insured plans that are sponsored by a regional health insurance consortium.

Funding Policy: The contribution requirements; of Plan members and the District are established by the Board of Education. The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as may be determined annually by the Board. For fiscal year 2011, the District contributed $2,336,564 to the plan, including $2,336,564 for current premiums (approximately 100percent of total premiums) and an additional $0 to prefund benefits. Plan members receiving benefits contributed $393,066, or approximately 17 percent of the total premiums, through their required contribution of $33.04 per month for retiree-only coverage and $223.08 for retiree and family coverage.


45



NOTE 11: POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED):

Annual OPEB Cost and Net OPEB Obligation: The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation to HP:

Annual required contribution $ 7,393,616Interest on net OPEB obligation 383,500Adjustment to annual required contribution ( 543,680)Annual OPEB cost (expense) 7,233,436Contributions made 2,336,564Increase in net OPEB obligation 4,896,872Net OPEB obligation—beginning of year 9,587,512

Net OPEB obligation—end of year $ 14,484,384

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011:

Fiscal Year Ended Annual OPEB Cost

Percentage of Annual OPEB Cost

ContributedNet OPEB Obligation

6/30/11 $ 7,233,436 32.3% $ 14,484,3846/30/106/30/09

6,894,1856,744,127

32.1%27.3%

9,587,512 4,903,516

Funded Status and Funding Progress. As of July 1, 2010, the most recent actuarial valuation date, the plan was 0% funded. The actuarial accrued liability for benefits was$73,543,078, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $73,543,078. The covered payroll (annual payroll of active employees covered by the plan) was $17,727,552, and the ratio of the UAAL to the covered payroll was 415%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.


46



NOTE 11: POST-EMPLOYMENT HEALTH BENEFITS (CONTINUED):

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the July 1, 2010, actuarial valuation, the projected Unit Credit method was used. The actuarial assumptions included a 4% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer’s own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 10% initially, reduced by decrements to an ultimate rate of 5% after 5 years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at June 30, 2011, was 28 years.

NOTE 12: RISK MANAGEMENT:

The District is exposed to various risks of loss related to torts, theft, damage, injuries, errors and omissions, natural disasters, and other risks. These risks are covered by commercial insurance purchased from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage for the past two years.

The District participates in the Broome-Tioga, Delaware Health Insurance, a non-consortium-risk-retained public entity risk pool for its employee health and accident insurance coverage.

The pool is operated for the benefit of sixteen individual governmental units located within the pool’s geographic area, and is considered a self-sustaining risk pool that will provide coverage for its members up to $1,000,000 per insured event. The pool obtains independent coverage for insured events in excess of the $1,000,000 limit, and the District has essentially transferred all related risk to the pool.

NOTE 13: FUND BALANCES:

Portions of fund balances are reserved and not available for current expenses or expenditures, as reported in the Governmental Funds Balance Sheet.

NOTE 14: DONOR-RESTRICTED ENDOWMENTS:

The District administers endowment funds, which are restricted by the donor for the purposes of scholarships and awards to students.

The District authorizes expenditures from donor-restricted endowments in compliance with the wishes expressed by the donor, which varies among the unique endowments administered by the District.


47



NOTE 15: USE OF ESTIMATES:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are made in a variety of areas, including computation of encumbrances, compensated absences, potential contingent liabilities and useful lives of long-lived assets.

NOTE 16: SUBSEQUENT EVENTS:

Date of Evaluation

The District’s administration has evaluated subsequent events through October 17, 2011, the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements. No significant matters were noted during the above time period, except as noted below.

In September, 2011, the School District sustained major damage to one of its Elementary School buildings due to flooding caused by Tropical Storm Lee. At this time, the District has contracted with the Union Endicott Central School District to lease one unoccupied building. The estimates of damages to the school resulting from the flood are not available at this time.

NOTE 17: RECLASSIFICATIONS

Certain reclassifications have been made in the 2010 financial statements to conform to the classifications used in the 2011 financial statements. The reclassifications have no effect on the overall net assets.

NOTE 18: PRIOR PERIOD ADJUSTMENTS:

During the fiscal year, the District contracted with an appraisal company to re-inventory all of the District’s buildings and equipment. The new inventory resulted in a net adjustment to Capital Assets of $722,998. See Note 6 for additional detail. Also, general fund recorded a prior period adjustment of $208 for an irreconcilable difference in net assets. School lunch fund recorded a prior period adjustment of $1,048 for expenses that were incurred after the prior year books were closed but were for the prior period.


48

REQUIRED SUPPLEMENTARY INFORMATION

AND





REPORT OF INDEPENDENT ACCOUNTANTS

Board of EducationOwego-Apalachin Central School District36 Talcott StreetOwego, NY 13787

In our opinion, the accompanying information (Required Supplemental Information, the Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) General Fund andSupplemental Information) is stated fairly in all material respects in relation to the financial statements, taken as a whole, of Owego-Apalachin Central School District for the year ended June 30, 2011, which are covered by our opinion presented in the first section of this report. The accompanying information is supplemental to the financial statements and is not essential for a fair presentation of the financial position and results of operations. Our examination, which was made primarily for the purpose of forming an opinion on the financial statements taken as a whole, included such tests of the accounting records, from which the supplementary information was completed, and such other auditing procedures as we considered necessary in the circumstances.




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52

Supplemental Schedule #2

CHANGE FROM ADOPTED BUDGET TO REVISED BUDGET

Adopted budget 41,715,748$

Add: Prior year's encumbrances 720,362

Original budget 42,436,110

Budget revision: Unanticipated revenues - Appropriated reserves 54,500

Final budget 42,490,610$

USE OF UNRESERVED FUND BALANCE

Unreserved fund balance -As of the beginning of the year 5,223,424$

Less:Designated fund balance used for

the levy of taxes - original budget 3,850,000

Undesignated fund balance -As of the beginning of the year 1,373,424$

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSCHEDULES OF CHANGE FROM ORIGINAL BUDGET TO REVISED BUDGET

AND USE OF UNRESERVED FUND BALANCE - GENERAL FUNDFOR THE YEAR ENDED JUNE 30, 2011

See paragraph on supplemental schedules included in auditors' report

53

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54


Audited Code ST-3 Amount Amount

REVENUESReal property taxes A -1001 12,791,592$ 12,791,592$ Non-property taxes AT-1199 - - State aid AT-3999 16,732,779 16,732,779 Federal aid - Medicaid reimbursements AT-4999 1,207,674 1,207,674 Total revenues AT-5999 37,557,984 37,557,984

EXPENDITURESGeneral support AT-1999 5,189,125$ 5,219,314$ Pupil transportation AT-5599 1,810,433 1,810,433Debt service - principal AT-9798.6 2,605,822 2,605,821Debt service - interest AT-9798.7 1,222,191 1,222,190 Total expenditures AT-9999 38,801,478 38,801,476

All differences due to rounding

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSCHEDULE OF CERTAIN REVENUES AND EXPENDITURES

COMPARED TO ST-3 DATAFOR THE YEAR ENDED JUNE 30, 2011

See paragraph on supplemental schedules included in auditors' report

55


TotalSpecial School Capital Non-Major

Aid Lunch Projects Funds

ASSETSCash

Unrestricted 29,559$ 295,825$ -$ 325,384$ Receivables

Due from other funds - 78,736 - 78,736 State and Federal aid 802,974 43,142 - 846,116 Other - 4,114 - 4,114

Inventories - 15,254 - 15,254

Total Assets 832,533$ 437,071$ -$ 1,269,604$

LIABILITIESPayables

Accounts payable 30,706$ 27,562$ -$ 58,268$ Accrued liabilities 225 7,332 - 7,557 Due to other funds 799,835 - - 799,835 Due to other governments - 658 - 658

Deferred creditsDeferred revenues 1,767 7,465 - 9,232

Total Liabilities 832,533 43,017 - 875,550

FUND BALANCESNonspendable - 15,254 - 15,254 Restricted - 378,800 - 378,800 Unassigned - - - -

Total Fund Balances - 394,054 - 394,054

Total Liabilities and Fund Balances 832,533$ 437,071$ -$ 1,269,604$


COMBINED BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDSJUNE 30, 2011



56


TotalSpecial School Capital Non-Major

Aid Lunch Projects Funds

REVENUESUse of money and property -$ 1,102$ -$ 1,102$ Miscellaneous 30 - - 30 State sources 283,139 153,853 - 436,992 Federal sources 1,590,272 519,604 - 2,109,876 Local sources 9,588 - - 9,588 Surplus food - 57,224 - 57,224 Sales - school lunch - 393,459 - 393,459

Total Revenues 1,883,029 1,125,242 - 3,008,271

EXPENDITURESInstruction 1,663,402 - - 1,663,402 Community service 3,903 - - 3,903 Employee benefits 228,268 73,831 - 302,099 Cost of sales - 954,409 - 954,409 Capital outlay - - 396,925 396,925

Total Expenditures 1,895,573 1,028,240 396,925 3,320,738

Excess (Deficiency) of RevenuesOver Expenditures (12,544) 97,002 (396,925) (312,467)

OTHER FINANCING SOURCES AND USESProceeds from debt - - 396,000 396,000 Operating transfers in 12,544 3,304 925 16,773 Operating transfers (out) - - - -

Total Other Sources (Uses) 12,544 3,304 396,925 412,773

Excess (Deficiency) of Revenuesand Other Sources OverExpenditures and Other (Uses) - 100,306 - 100,306

Fund Balances - Beginning of year - 292,700 - 292,700

Prior year adjustments - 1,048 - 1,048

Fund Balances - End of Year -$ 394,054$ -$ 394,054$


STATEMENTS OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS




57


OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSUPPLEMENTARY INFORMATION

INVESTMENT IN CAPITAL ASSETS, NET OF RELATED DEBTFOR THE YEAR ENDED JUNE 30, 2011

Capital assets, net 47,612,784$ Deduct:

Bond anticipation notes 10,676,250

Short-term portion of bonds payable 2,035,021 Long-term portion of bonds payable 21,245,224

Less: unspent bond proceeds (1,367,414) 32,589,081 32,589,081

Investment in capital assets, net of related debt 15,023,703$

See paragraph on supplementary schedules included in auditor's report

58


OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal Grantor/Pass-Through Federal Pass-Through Disbursements/Grantor/Program Title Number Grantor's Number Expenditures

U.S. Department of Education

Passed Through NYS Education Department:

Special Education Cluster:

IDEA-Part B, Section 611 84.027A 0032-10-0976 1,448$ IDEA-Part B, Section 611 84.027A 0032-11-0976 532,960 ARRA IDEA-Part B, Section 611 84.391A 5032-11-0976 310,160 IDEA-Part B, Section 619 84.173A 0033-11-0976 16,841 ARRA IDEA-Part B, Section 619 84.392A 5033-11-0976 12,935

Total Special Education Cluster 874,344

State Fiscal Stabilization Funds Cluster:

ARRA Mentor Teacher/Internship 84.397 5663-11-0063 10,836 ARRA Education Stabilization 84.394 5000-10-3345 3,106 ARRA Education Stabilization 84.394 5000-11-3345 1,136,566

Total State Fiscal Stabilization Funds Cluster 1,150,508

Title I Grants to LEAs Cluster:Title I A & D 84.010A 0021-11-3345 396,547 ARRA Title I A & D 84.389A 5021-10-3345 11,696 ARRA Title I A & D 84.389A 5021-11-3345 171,444

Total Title I Grants to LEAs Cluster 579,687

Title IVA Safe and Drug Free School Act 84.186A 0180-11-3346 2,307 Title IID 84.318X 0292-11-3345 3,101 Title IIA 84.367A 0147-11-3345 121,288

Total Department of Education 2,731,235

U.S. Department of Agriculture

Passed Through NYS Education Department:

Child Nutrition Cluster:Non-Cash Assistance (food distribution)

National School Lunch Program 10.555 57,224

Cash Assistance

National School Lunch Program 10.555 352,002 Breakfast Program 10.553 105,029 Summer Food Service Program 10.559 62,573

Total Child Nutrition Cluster 576,828

Total Department of Agriculture 576,828

Total Federal Awards Expenditures 3,308,063$


59


NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

NOTE 1: SUMMARY OF CERTAIN SIGNIFICANT ACCOUNTING POLICIES:

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the District, which is described in Note 1 to the District’s accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards passed through from other government agencies. The information is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the District’s federal award programs have been charged with indirect costs, based upon an established rate applied to overall expenditures. There is no other indirect cost allocation plan in effect.

Matching costs (the District’s share of certain program costs) are not included in the reported expenditures.

The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program.

The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system.

NOTE 2: SUBRECIPIENTS:

No amounts were provided to subrecipients.

NOTE 3: OTHER DISCLOSURES:

No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District’s casualty insurance policies.

There were no loans or loan guarantees outstanding at year-end.


60


Schedule of Findings and Questioned CostsFor the Year Ended June 30, 2011

Section I - Summary of Auditors' Results

Financial StatementsType of auditors' report issued: unqualified

Yes NoInternal control over financial reporting:

Material weakness identified? X Reportable conditions identified that are notconsidered to be material weaknesses? X none reported

Noncompliance material to financial statementsnoted? X

Federal AwardsInternal control over major programs:

Material weakness identified? X Reported conditions identified that are notconsidered to be material weaknesses? X none reported

Type of auditors' report issued on compliancefor major programs: unqualified

Any audit findings disclosed that are requiredto be reported in accordance with Section 510(a)of Circular A-133? X

Identification of major programs:

CFDA Numbers Name of Federal Program

10.555 National School Lunch10.553 School Breakfast Program10.559 Summer Food Service Program84.394 ARRA Education Stabilization84.397 ARRA Mentor/Teacher

Dollar threshold used to distinguish between Type A and Type B programs: $300,000

Auditee qualified as low-risk auditee? X

Section II - Financial Statement Findings: No matters were reported.

Section III - Federal Award Findings and Questioned Costs: No matters were reported.

61





REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

We have audited the financial statements of Owego-Apalachin Central School District as of and for the year ended June 30, 2011, and have issued our report thereon dated October 17, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Owego-Apalachin Central School District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Owego-Apalachin Central School District's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Owego-Apalachin Central School District's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in material control, such that there is a reasonable possibility a material misstatement in the entity’s financial statements will not be prevented or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.


62

Compliance and other Matters

As part of obtaining reasonable assurance about whether Owego-Apalachin Central School 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 that are required to be reported under Government Auditing Standards.

This report is intended for the information and use of management, the audit committee, Board of Education and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties.


October 17, 2011Endicott, NY

63





Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance With

OMB Circular A-133

Compliance

We have audited Owego-Apalachin Central School District’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of Owego-Apalachin Central School District’s major federal programs for the year ended June 30, 2011. Owego-Apalachin Central School District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Owego-Apalachin Central School District’s management. Our responsibility is to express and opinion on Owego-Apalachin Central School District’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 required that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Owego-Apalachin Central School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Owego-Apalachin Central School District's compliance with those requirements.

In our opinion, Owego-Apalachin Central School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2011. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs.


64

Internal Control Over Compliance

Management of Owego-Apalachin Central School District is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Owego-Apalachin Central School District's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance.

A deficiency in internal control over compliance exits 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 the 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 management, the audit committee, others within the entity, Board of Education and federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties.



65




To the President and MembersBoard of EducationOwego-Apalachin Central School District36 Talcott StreetOwego, NY 13827

We have completed our examination of the financial statements of the Extraclassroom Activity Fund for the year ended June 30, 2011. As part of our continuing service as your independent accountants, it is our responsibility to submit to you suggestions for improvements in the areas of internal accounting control, or procedures, which come to our attention during the course of our examination.

During our examination, we noted one area of internal accounting control or procedures that appeared to be in need of improvement:

We noted several instances where the cash receipt was dated ten days or more before the cash was deposited into the bank. We recommend that cash be deposited as soon as possible after it is received in order to eliminate the potential for funds to be lost or stolen.

We would like to acknowledge the assistance and courtesies extended to us throughout our examination. None of the above comments should reflect on the Central Treasurer for the Extraclassroom Activity Funds, who does a good job with the record keeping of the Fund. We would be pleased to discuss in further detail any questions you might have regarding the financial statements.





EXTRACLASSROOM ACTIVITY FUND

FINANCIAL STATEMENTS

JUNE 30, 2011

2


EXTRACLASSROOM ACTIVITY FUND

TABLE OF CONTENTS

Page

Independent Auditors’ Report 3

Financial Statements

Statement of Assets Arising from Cash Activity 4

Statement of Cash Receipts and Disbursements 5

Notes to Financial Statements 6




INDEPENDENT AUDITORS’ REPORT

To the President and MembersBoard of EducationOwego-Apalachin Central School DistrictOwego, New York

We have audited the accompanying Statement of Assets Arising from Cash Activity at June 30, 2011and the related Statement of Cash Receipts and Disbursements of the Extraclassroom Activity Fund ofthe Owego-Apalachin Central School District for the year then ended. These financial statements are the responsibility of the Owego-Apalachin Central 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 auditing standards generally accepted in the United States of America and Appendix F of the Minimum Program for Audit of Financial Records of the New York State School Districts. Those standards require that we plan and perform the 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 in Note 1, these financial statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to above present fairly, in all material respects, the assets arising from cash transactions of the Extraclassroom Activity Fund as of June 30, 2011 and its cash receipts and disbursements for the year then ended, on the basis of accounting described in Note 1.




3

Assets

Cash 109,550$

Fund Balance 109,550$

June 30, 2011

OWEGO APALACHIN CENTRAL SCHOOL DISTRICTEXTRACLASSROOM ACTIVITY FUND

STATEMENT OF ASSETS ARISING FROM CASH ACTIVITY

See accompanying notes and independent auditors' report

4

Balance Transfers BalanceJune 30, 2010 6/30/2011 Receipts Disbursements June 30, 2011

Interest Earned -$ - 260$ (150)$ 110$

Class of 2010 471 - - (471) - Class of 2010 - Post Prom 1,085 - - (1,085) - Class of 2011 7,309 - 18,821 (21,246) 4,884 Class of 2011B 590 - 12,861 (11,881) 1,570 Class of 2012 2,617 - 5,197 (2,848) 4,966

Class of 2013 3,596 - 3,401 (3,030) 3,967 Class of 2014 - - 4,937 (262) 4,675 Art Club 2,135 - 7,964 (7,804) 2,295 Band - OFA 8,695 3,727 60,255 (69,881) 2,796 Band - Special Project 175 - - - 175

Choral Fund 748 - 39 (128) 659 Drama Club 1,602 - - (750) 852 Foreign Language Club 1,462 - - - 1,462 Key Club 1,369 - 418 (1,021) 766 National Honor Society 1,507 - 380 (388) 1,499

OAMS Student Council 14,384 - 33,065 (39,194) 8,255 OFA Bookstore 2,563 - 8,253 (8,264) 2,552 OFA Student Council 27,445 (3,727) 43,117 (42,174) 24,661 OFA Student Council - Special Project 11,005 - 2,332 (60) 13,277 OFA Student Council - Special Project A 6,642 - - - 6,642

Ski Club 2,947 - 5,590 (90) 8,447 Tom Tom 4,875 - 8,031 (8,614) 4,292 Varsity Club 1,860 - - (675) 1,185 Music Award - OAMS - - 1,000 (748) 252 Yorkers Club-OAMS 2,614 - - - 2,614 Yorkers Club-OFA 7,002 - 522 (827) 6,697

Total 114,698$ -$ 216,443$ (221,591)$ 109,550$


See accompanying notes and independent auditors' report

5

OWEGO-APALACHIN CENTRAL SCHOOL DISTRICTEXTRACLASSROOM ACTIVITY FUND


NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

A) Reporting Entity

The transactions of the Extraclassroom Activity Funds are independent of the School District with respect to its financial transactions. However, the Board of Education exercises general oversight of these funds. Therefore, the cash balances are included in the combined financial statements of the School District.

B) Cash Basis of Presentation

The books and records of the Owego Apalachin Central School District's Extraclassroom Activity Funds are maintained on the cash basis of accounting. Under this basis of accounting, revenues are recognized when cash is received and expenditures recognized when cash is disbursed. The cash basis of accounting is not in accordance with accounting principles generally accepted in the United States of America. The effect on fund balance at June 30, 2011 due to the departure from accounting principles generally accepted in the United States of America has not been determined.

See independent auditors' report

6

OWEGO APALACHIN CENTRAL SCHOOL DISTRICT 2011-2012 BUDGET CALENDAR

For Budget Year 2012-2013

THURSDAY, DECEMBER 22, 2011 Present 2012-2013 Budget Projection Model

THURSDAY, DECEMBER 22, 2011 Building/Department 2012-2013 Proposed Budgets Due to Superintendent/Business Office

JANUARY 2012 * Public Budget Forum

FEBRUARY 2012 * Public Budget Forum

THURSDAY, MARCH 1, 2012 Submit information to calculate Tax Levy Limit to State Comptroller’s website.

THURSDAY, MARCH 8, 2011 Superintendent presents the 2012-2013 Proposed Budget to the Board of Education

for review and deliberation

SATURDAY, MARCH 31, 2012 Publication of Legal Notice No. 1

SATURDAY, APRIL 14, 2012 Publication of Legal Notice No. 2 MONDAY, APRIL 16, 2012 Board of Education Candidate Petitions Due – No later than 4:00 PM (2 candidate seats)

MONDAY, APRIL 16, 2012 Deadline for Submission of Petitions for Propositions to be placed on Ballot

THURSDAY, APRIL 19, 2012 2012-2013 Budget Adopted by the Board of Education

THURSDAY, APRIL 19, 2012 Drawing for Board Candidates on Ballot

THURSDAY, APRIL 19, 2012 Appointment of Clerks and Inspectors of Elections for Budget Vote

FRIDAY, APRIL 20, 2012 Property Tax Report Card submitted to the State Education Department and newspapers of general circulation

FRIDAY, APRIL 20, 2012 Publication of Legal Notice No. 3

TUESDAY, APRIL 24, 2012 Budget newsletter released including full disclosure information

SATURDAY, APRIL 28, 2011 Publication of Legal Notice No. 4

MONDAY, APRIL 30, 2012 Budget Information Session – Apalachin Elementary School – 7:30 P.M.

TUESDAY, MAY 1, 2012 Last Day for Voter Registration - No later than 4:00 P.M.

TUESDAY, MAY 1, 2012 Budget documents and required attachments available

WEDNESDAY, MAY 2, 2012 Official Public Hearing – Owego Elementary School – 7:30 P.M.

THURSDAY, MAY 3, 2012 Budget Notice mailed to Eligible Voters

TUESDAY, MAY 15, 2012 Statewide Annual Meeting/ Board Election/ Budget Vote 12:00 – 9:00 P.M.

TUESDAY, JUNE 19, 2012 Statewide Budget Revote Day

SUNDAY, JULY 1, 2012 Implement 2012-2013 Budget

* Specific date to be determined.

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Documents

BOARD OF EDUCATION MEETING Owego Apalachin Central … · 2014-01-26 · November 17, 2011 OAMS Café 6:30 PM Executive Session 7:00 PM Regular Session I. CALL TO ORDER II. ROLL CALL