CHASE - RAYMOND UNIFIED SCHOOL DISTRICT NO. 401 …Chase-Raymond Unified School District No. 401 Chase, KS 67524 We have audited the accompanying financial statements of Chase-Raymond

CHASE - RAYMOND UNIFIED SCHOOL DISTRICT NO. 401

CHASE, KANSAS Financial Statements

With Independent Auditors' Report For the Year Ended June 30, 2009

ADAMS, BROWN, BERAN & BALL, CHTD Certified Public Accountants

Great Bend, Kansas


CHASE, KANSAS Financial Statements

With Independent Auditors' Report For the Year Ended June 30, 2009

TABLE OF CONTENTS Page No.

Independent Auditors' Report 1

Statement 1 Summary of Cash Receipts, Expenditures, and Unencumbered Cash (Statutory Basis) 2

Statement 2 Summary of Expenditures - Actual and Budget (Statutory Basis) 3

Statement 3 Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)

General Funds Categories: 3-1 General Fund 4 3-2 Supplemental General Fund 5

Special Revenue Funds: 3-3 Capital Outlay Fund 6 3-4 Special Education Fund 7 3-5 Food Service Fund 8 3-6 Driver Training Fund 9 3-7 Professional Development Fund 10 3-8 Vocational Education Fund 11 3-9 Textbook Rental Fund 12 3-10 Title IID Technology Education Fund 13 3-11 Title I Grant Fund 14 3-12 Title V Part A Innovative Grant Fund 15 3-13 ESOL Fund 16 3-14 Title IV Drug Free Fund 17 3-15 Title HA Teacher Quality Fund 18 3-16 At Risk Fund (K-12) 19 3-17 4 Year Old At Risk Fund 20 3-18 Kan-Ed Grant Fund 21 3-19 KPERS Retirement Contributions Fund 22 3-20 Contingency Reserve Fund 23

Debt Service Fund: 3-21 Bond and Interest Fund 24

Statement 4 Summary of Cash Receipts and Cash Disbursements (Statutory Basis)

Fiduciary Fund Category Agency Funds 25

Statement 5 Statement of Cash Receipts, Expenditures, and Unencumbered Cash (Statutory Basis)

District Activity Funds 26

Notes to Financial Statements 27-37

A D A M S ^ I H i Phone 620 792-2428 • Fax 620 792-5559 • www.abbb.com

BROWN ^ I ^ B BE RAN ^ B ^ ^ B a n k of America Building • 2006 Broadway, Suite 2A & BALL H p•0• D i r a w e r J • Great Bend, Kansas 67530 _________

Certified Public

Accountants

INDEPENDENT AUDITORS' REPORT

Board of Education Chase-Raymond Unified School District No. 401 Chase, KS 67524

We have audited the accompanying financial statements of Chase-Raymond Unified School District No. 401, Chase, Kansas, as of and for the year ended June 30,2009, as listed in the Table of Contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with the Kansas Municipal Audit Guide and with auditing standards generally accepted in the United States of America. Those standards and the audit guide 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 opinions.

As described more fully in Note 1-C, Chase-Raymond Unified School District No. 401, Chase, Kansas, has prepared these financial statements using accounting practices prescribed or permitted by the State of Kansas, which practices differ from accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these regulatory accounting practices and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of Chase-Raymond Unified School District No. 401, Chase, Kansas, as of June 30, 2009, or changes in financial position for the year then ended. Further, Chase-Raymond Unified School District No. 401, Chase, Kansas, has not presented a management's discussion and analysis that accounting principles generally accepted in the United States has determined in necessary to supplement, although not required to be part of, the basic financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the cash and unencumbered cash balances of each fund of Chase-Raymond Unified School District No. 401, Chase, Kansas, as of June 30, 2009, their respective cash receipts and disbursements, and budgetary results for the year ended, on the basis of accounting described in Note 1-C.

ADAMS, BROWN, BERAN & BALL, CHTD. Certified Public Accountants

October 12, 2009

CHASE - RAYMOND UNIFIED SCHOOL DISTRICT NO. 401, CHASE, KANSAS

Summary of Cash Receipts, Expenditures, and Unencumbered Cash (Statutory Basis) For the Year Ended June 30, 2009

Statement 1

Funds Governmental Fund Categories -General Funds:

General Fund $ Supplemental General Fund

Special Revenue Funds: Capital Outlay Fund Special Education Fund Food Service Fund Driver Training Fund Professional Development Fund Vocational Education Fund Textbook Rental Fund Title HD Technology Education Fund Title I Grant Fund ESOL Fund Title IV Drug Free Fund Title HA Teacher Quality Fund At Risk Fund (K-12) 4 Year Old At Risk Fund KPERS Retirement Contributions Fund Contingency Reserve Fund District Activity Funds

Debt Service Fund: Bond and Interest Fund

Total Reporting Entity (Excluding Agency Funds) $

Beginning Unencumbered Cash Balance

(55,349) 25,679

210,880 120,376 19,916 14,278 2,929

10,247 453

--------

69,277 3,956

192,143

614,785

Prior Year Cancelled

Encumbrances

1,500

3,482

-----------

36 769

---

_

5,787

Cash Receipts

1,577,502 472,454

102,291 214,874 116,955

342 7,321

61,665

-434

45,437 3,899

726 12,840

146,044 35,769 74,306 80,000 50,656

113,623

3,117,138

Expenditures

1,562,118 474,171

64,347 191,699 95,768

200 9,418

61,665

-434

45,437 3,899

726 12,840

146,044 36,538 74,306

-48,445

106,463

2,934,518

Ending Unencumbered Cash Balance

(39,965) 25,462

252,306 143,551 41,103 14,420

832 10,247

453 -----

36 --

149,277 6,167

199,303

803,192

Add Outstanding

Encumbrances and Accounts

Payable

457 94,296

9,232 -

46 130

---

131 ---

7,625 -

55 --

13,824

_

125,796

Ending Cash Balance

(39,508) 119,758

261,538 143,551 41,149 14,550

832 10,247

453 131

---

7,625 36 55

-149,277

19,991

199,303

928,988

Composition of Cash: Checking Accounts Certificates of Deposits

Total Cash Agency Funds per Statement 4

Total Reporting Entity (Excluding Agency Funds) $

780,111 160,000 940,111 (11,123) 928,988

The notes to the financial statements are an integral part of this statement.


Summary of Expenditures - Actual and Budget (Statutory Basis) For the Year Ended June 30, 2009

Statement 2

Funds Governmental Funds Categories -

General Funds: General Fund Supplemental General Fund

Special Revenue Funds: Capital Outlay Fund Special Education Fund Food Service Fund Driver Training Fund Professional Development Fund Vocational Education Fund ESOL Fund At Risk Fund (K-12) 4 Year Old At Risk Fund KPERS Retirement Contributions Fund

Debt Service Fund: Bond and Interest Fund

Certified Budget

1,581,251 474,375

298,782 286,161 135,549 15,249 9,418

61,665 3,899

146,044 35,769 87,217

Adjustment to Comply with Legal Max

(39,051)

-

. -------

-

Adjustment for Qualifying

Budget Credits

16,203

-

. -

-----

-

Total Budget for

Comparison

1,558,403 474,375

298,782 286,161 135,549

15,249 9,418

61,665 3,899

146,044 35,769 87,217

Expenditures Chargeable to Current Year

1,562,118 474,171

64,347 191,699 95,768

200 9,418

61,665 3,899

146,044 36,538 74,306

Variance Favorable

(Unfavorable)

(3,715) 204

234,435 94,462 39,781 15,049

----

(769) 12,911

106,470 106,470 106,463


Statement 3-1


General Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)

For the Year Ended June 30, 2009 (With Comparative Actual Totals for the Prior Year Ended June 30, 2008)

Cash Receipts: Taxes and Shared Revenue Intergovernmental Revenue-State Equalization Aid State Special Education

Reimbursed Expenses Operating Transfers In

Total Cash Receipts

Expenditures: Instruction Student Support Services Instructional Support Services General Administration School Administration Central Services Operations and Maintenance Student Transportation Services Operating Transfers Out Adjustment to Comply with Legal Max

Legal General Fund Budget Adjustment for Qualifying Budget Credits (a)

Total Expenditures

Receipts Over (Under) Expenditures

Unencumbered Cash, July 1

Prior Year Cancelled Encumbrances

Unencumbered Cash, June 30

Prior Year Actual

$ 372,225

1,040,952 175,613

13,099 -

1,601,889

685,878 29,045 57,709 65,414

112,176 64,865

130,335 48,721

420,709 -

1,614,852 -

1,614,852

(12,963)

(45,018)

2,632

$ (55,349)

Actual

419,113

996,402 145,015

16,203 769

1,577,502

642,360 28,955 42,021 64,032

116,090 50,482 98,155 47,289

472,734 -

1,562,118 -

1,562,118

15,384

(55,349)

.

(39,965)

Current Year

Budget

381,633

1,022,826 176,792

(a) -

1,581,251

787,162 31,540 73,543 52,733

110,758 62,408

134,778 58,225

270,104 (39,051)

1,542,200 16,203

1,558,403

Variance Favorable

(Unfavorable)

37,480

(26,424) (31,777) 16,203

769

(3,749)

144,802 2,585

31,522 (11,299)

(5,332) 11,926 36,623 10,936

(202,630) (39,051) (19,918)

(a) 16,203

(3,715)


Statement 3-2


Supplemental General Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Taxes and Shared Revenue Reimbursed Expenses

Total Cash Receipts

Expenditures: Instruction Student Support Services Instructional Support Staff General Administration School Administration Purchased Services Operations and Maintenance Student Activities Operating Transfers Out

Total Expenditures





Prior Year Actual

$ 401,385 25,212

426,597

87,318 4,669 5,639

28,639 17,538 10,969

100,426 14,235

145,978

415,411

11,186

14,493

-

$ 25,679

Actual

464,030 8,424

472,454

111,664 33,030 6,075

30,056 15,297 30,853 94,447 24,395

128,354

474,171

(1,717)

25,679

1,500

25,462

Current Year

Budget

444,408 -

444,408

129,533 2,308

678 44,121 20,973 16,455

129,319 -

130,988

474,375

Variance Favorable

(Unfavorable)

19,622 8,424

28,046

17,869 (30,722)

(5,397) 14,065 5,676

(14,398) 34,872

(24,395) 2,634

204

The notes to the financial statements are an integral part of this statement. 5

Statement 3-3


Capital Outlay Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Taxes and Shared Revenue Other Income Interest Income

Total Cash Receipts

Expenditures: Instruction Student Support Services Instructional Support Services General Administration School Administration Operations and Maintenance Facility Acquisition and Construction

Total Expenditures





Prior Year Actual

$ 76,658 13,586 9,352

99,596

33,343 3,932

--

640 6,921

21,128

65,964

33,632

177,248

.

$ 210,880

Actual

85,678 8,311 8,302

102,291

9,060 --

152 -

44,055 11,080

64,347

37,944

210,880

3,482

252,306

Current Year

Budget

89,390 3,932

-

93,322

15,500 212,782

2,000 2,000 7,000

14,500 45,000

298,782

Variance Favorable

(Unfavorable)

(3,712) 4,379 8,302

8,969

6,440 212,782

2,000 1,848 7,000

(29,555) 33,920

234,435


Statement 3-4


Special Education Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Operating Transfers In Reimbursed Expenses

Total Cash Receipts

Expenditures: Instruction Student Transportation Services

Total Expenditures




Prior Year Actual

$ 307,008 536

307,544

223,230 5,324

228,554

78,990

41,386

$ 120,376

Actual

214,874 -

214,874

188,504 3,195

191,699

23,175

120,376

143,551

Current Year

Budget

187,870 -

187,870

270,061 16,100

286,161

Variance Favorable

(Unfavorable)

27,004 -

27,004

81,557 12,905

94,462


Statement 3-5


Food Service Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Intergovernmental Revenue-State Aid Federal Aid

Lunch Receipts -Students Adults

Operating Transfers In

Total Cash Receipts

Expenditures: Food Service Operations




Prior Year Actual

$ 760 41,984

12,128 2,913

30,000

87,785

93,261

(5,476)

25,392

$ 19,916

Actual

814 46,932

13,819 2,570

52,820

116,955

95,768

21,187

19,916

41,103

Current Year

Budget

748 39,910

12,064 2,885

60,000

115,607

135,549

Variance Favorable

(Unfavorable)

66 7,022

1,755 (315)

(7,180)

1,348

39,781


Statement 3-6


Driver Training Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Intergovernmental Revenue-State Aid

Other Income

Total Cash Receipts

Expenditures: Instruction Operations and Maintenance

Total Expenditures




Prior Year Actual

$ 1,980 655

2,635

2,424 243

2,667

(32)

14,310

$ 14,278

Actual

342

342

130 70

200

142

14,278

14,420

Current Year

Budget

972

972

15,249

15,249

Variance Favorable

(Unfavorable)

(630)

(630)

15,119 (70)

15,049


Statement 3-7


Professional Development Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)




Total Cash Receipts

Expenditures: Instruction Instructional Support Services

Total Expenditures




Prior Year Actual

$ 886 6,000

6,886

622 4,897

5,519

1,367

1,562

$ 2,929

Actual

1,304 6,017

7,321

1,028 8,390

9,418

(2,097)

2,929

832

Current Year

Budget

1,058 6,000

7,058

1,712 7,706

9,418

Variance Favorable

(Unfavorable)

246 17

263

684 (684)


Statement 3-8


Vocational Education Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Operating Transfers In

Expenditures: Instruction




$

.

$_

Prior Year Actual

76,727

68,031

8,696

1,551

10,247

Actual

61,665

61,665

10,247

10,247

Current Year

Budget

45,000

61,665

Variance Favorable

(Unfavorable)

16,665

_


Statement 3-9


Textbook Rental Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)


Prior Current Year Year

Cash Receipts $

Expenditures - -


Unencumbered Cash, July 1 453 453

Unencumbered Cash, June 30 $ 453 453


Statement 3-10


Title IID Technology Education Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)


Prior Year

Cash Receipts: Intergovernmental Revenue-Federal Aid 488

Current Year

434





488 434


Statement 3-11


Title I Grant Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)


Cash Receipts: Intergovernmental Revenue-Federal Aid





$

Prior Year

49,143

49,143

Current Year

45,437

45,437


Statement 3-12


Title V Part A Innovative Grant Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)



Cash Receipts: Intergovernmental Revenue-Federal Aid $ 432

Expenditures: Instruction 432





Statement 3-13


ESOL Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)







Prior Year

1,370

1,370

Actual

3,899

3,899

Current Year

Budget

3,899

3,899

Variance Favorable

(Unfavorable)

_


Statement 3-14


Title IV Drug Free Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)



Cash Receipts: Intergovernmental Revenue-

Federal Aid $ 1,056 726

Expenditures: Student Support Services 1,056 726





Statement 3-15


Title HA Teacher Quality Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)


Cash Receipts: Intergovernmental Revenue-

Federal Aid





$

Prior Year

13,100

13,100

Current Year

12,840

12,840


Statement 3-16


At Risk Fund (K-12) Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)








$

$ _

Prior Year

115,978

134,000

(18,022)

18,022

-

Actual

146,044

146,044

36

36

Current Year

Budget

146,044

146,044

Variance Favorable

(Unfavorable)

_


Statement 3-17


4 Year Old At Risk Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Operating Transfers In $

Expenditures: Instruction Student Activities Food Service Operating Transfers Out

Total Expenditures




Unencumbered Cash, June 30 $

Prior Year

29,604

27,650 1,144

810

29,604

-

Actual

35,769

34,821 138 810 769

36,538

(769)

769

.

Current Year

Budget

35,769

35,769

35,769

Variance Favorable

(Unfavorable)

_

948 (138) (810) (769)

(769)


Statement 3-18


Kan-Ed Grant Fund Statement of Cash Receipts and Expenditures - Actual (Statutory Basis)







$

Prior Year

48,012

48,012

Current Year

-

_


Statement 3-19


KPERS Retirement Contributions Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Current Year

Prior Year


Expenditures: Instruction Student Support Services Instructional Support Services General Administration School Administration Operations and Maintenance Student Transportation Services Food Service

Total Expenditures




72,080

72,080

Actual

74,306

74,306

Budget

87,217

87,217

Variance Favorable

(Unfavorable)

(12,911)

36,040 4,325 4,325 5,766 7,929 5,766 2,162 5,767

37,335 4,437 4,437 5,915 8,134 5,915 2,218 5,915

40,368 5,622 5,622 7,495

10,308 7,495 2,811 7,496

3,033 1,185 1,185 1,580 2,174 1,580

593 1,581

12,911


Statement 3-20


Contingency Reserve Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Prior Year

Cash Receipts:


Expenditures




Current Year

80,000

69,277

80,000

69,277

69,277 149,277


Statement 3-21


Bond and Interest Fund Statement of Cash Receipts and Expenditures - Actual and Budget (Statutory Basis)


Cash Receipts: Taxes and Shared Revenue

Expenditures: Bond Principal Commission and Postage Interest Payment

Total Expenditures




Prior Year Actual

$ 126,147

95,000 3

10,410

105,413

20,734

171,409

$ 192,143

Actual

113,623

100,000 3

6,460

106,463

7,160

192,143

199,303

Current Year

Budget

110,117

100,000 10

6,460

106,470

Variance Favorable

(Unfavorable)

3,506

7

7


Statement 4


Agency Funds Summary of Cash Receipts and Cash Disbursements (Statutory Basis)

For the Year Ended June 30, 2009

Funds Student Organization Funds:

Chase High School -C - Club Cheerleaders FHA Music Club Golf Club Dance Team National Honor Society Science Club Weight Lifting Club Student Council Shop Fund Thespians Fund Class of 2007 Class of 2008 Class of 2009 Class of 2010 Class of 2011 Class of 2012

Total Chase High School

Raymond Junior High School -Cheerleaders Music 6th Grade Class 7th Grade Class 8th Grade Class

Total Raymond Junior High School

Total Agency Funds

Beginning Cash Balance

$ 275 2,248

636 (37) 43

334 479

17 1,404 1,111

-251 235 161 542

2,076 774

-

10,549

139 -

81 593

1,630

2,443

$ 12,992

Cash Receipts

3,109 1,187

267 63 70

-3,420

-813

1,686 6,056

---

429 2,195

317 1,571

21,183

125 266 744

1,499 1,560

4,194

25,377

Cash Disbursements

2,819 2,194

438 -

40 198

2,972 -

516 2,134 6,056

124 235 161 895

3,789 -

30

22,601

45 266 252

1,585 2,497

4,645

27,246

Ending Cash Balance

565 1,241

465 26 73

136 927

17 1,701

663 -

127 --

76 482

1,091 1,541

9,131

219 -

573 507 693

1,992

11,123


Statement 5


District Activity Funds Statement of Cash Receipts, Expenditures, and Unencumbered Cash (Statutory Basis)


Funds

Beginning Prior Year Unencumbered Cancelled Cash Balance Encumbrances

Chase High School: Activity Athletics Faculty Miscellaneous K&R Concessions KNEA Concessions Daulton Doll Memorial

Total Chase High School

Raymond Jr. High School: Athletics Miscellaneous Concession Stand Pictures Pop Machine Library Bulldog/Kat T-shirts Pencil Machine General Mills Box Tops Help G.S. Student Account Dare Interest Nurses' Help Fund

Total Raymond Jr. High School

Payroll Clearing Fund

Total District Activity Funds

Cash Receipts

$ 474 297 41

816

80 59

338 590 248 296 68

465 349 250 397

3,140

.

3,956

Add Outstanding

Ending Encumbrances Unencumbered and Accounts

Expenditures Cash Balance Payable

1,123

17,973

611 767

9,777

627 700

31,578

1,950 --

340 578 36 333 326 261

1,119 -

41 270

5,254

13,824

50,656

970 17,512 220 767

9,777

625 -

29,871

1,950

20 59 247 374 -

334 84 214

1,468 ---

4,750

13,824

48,445

627 758 432

--6

700

2,523

.

60 -

431 794 284 295 310 512

-250 438 270

3,644

_

6,167

Ending Cash Balance

627 758 432

6 700

13,824

2,523

60

431 794 284 295 310 512

250 438 270

3,644

13,824

13,824 19,991


CHASE-RAYMOND UNIFIED SCHOOL DISTRICT NO. 401

CHASE, KANSAS Notes to Financial Statements

June 30, 2009

1. Summary of Significant Accounting Policies:

The District has established a uniform system of accounting maintained to reflect compliance with the applicable laws of the State of Kansas. The accompanying financial statements are presented in order to conform to the statutory basis and budget laws of the State of Kansas, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The following is a summary of such significant policies.

A. Financial Reporting Entity

Chase-Raymond Unified School District No. 401, Chase, Kansas is a municipal corporation governed by an elected board. The District receives funding from local, state and federal government sources and must comply with the requirements of these funding sources.

Chase-Raymond Unified School District No. 401, Chase, Kansas, is the primary government as defined in GASB #14 and further amended by GASB #39. The School Board is elected by the public. The Board has the authority to make decisions, levy taxes, influence operations and has the primary accountability in fiscal matters.

The financial statements of the District consist of all the funds of the District that are considered to be controlled by or dependent on the District. Control or dependence is determined on the basis of budget adoption, taxing authority, funding, and appointment of the respective governing board. The District has no entities that are controlled or dependent on the District.

B. Basis of Presentation - Fund Accounting

The accounts of the District are organized and operated on the basis of funds. In governmental accounting, a fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The following categories of funds comprise the financial activities of the District for the year ended June 30, 2009:

Governmental Fund Categories

General Fund - Reports as the primary fund of the District. The fund is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds - To account for the proceeds of specific revenue sources (other than special assessments or major capital projects) that are restricted by law or administrative action to expend for specific purposes.

Debt Service Fund - To account for the accumulation of resources for and the payment of interest and principal on long-term debt.



June 30, 2009

1. Summary of Significant Accounting Policies (Continued):

B. Basis of Presentation - Fund Accounting (Continued)

Fiduciary Fund Category

Agency Funds - To account for assets held by the District in a custodial capacity as a trustee or an agent on behalf of others.

The Student Activity Fund is an agency fund that accounts for the receipts and disbursements of monies from student activity organizations. These organizations exist with the explicit approval of and are subject to revocation by the District's Board of Education. This accounting reflects the District's agency relationship with the student activity organizations.

C. Basis of Accounting

Statutory Basis of Accounting - The statutory basis of accounting, as used in the preparation of these statutory basis financial statements, is designed to demonstrate compliance with the statutory basis and budget laws of the State of Kansas. Cash receipts are recognized when the cash balance of a fund is increased. Expenditures include disbursements, accounts payable, and encumbrances, with disbursements being adjusted for prior year's accounts payable and encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods and services, and are usually evidenced by a purchase order or written contract. For an interfund transaction, a cash receipt is recorded in the fund receiving cash from another fund, and an expenditure would be charged in the fund from which the transfer is made.

The District has approved a resolution that is in compliance with K.S.A. 75-1120a(c), waiving the requirement for application of generally accepted accounting principles and allowing the District to use the statutory basis of accounting.

Departure from Accounting Principles Generally Accepted in the United States of America -The basis of accounting described above results in a financial statement presentation which shows cash receipts, expenditures, cash and unencumbered cash balances, and expenditures compared to budget. Balance sheets that would have shown noncash assets such as receivables, inventories, and prepaid expenses, liabilities such as deferred revenue and matured principal and interest payable, and resen/ations of the fund balance are not presented. Under accounting principles generally accepted in the United States of America, encumbrances are only recognized as a reservation of fund balance; encumbrances outstanding at year end do not constitute expenditures or liabilities. Consequently, the expenditures as reported do not present the cost of goods and services received during the fiscal year in accordance with generally accepted accounting principles. Capital assets that account for the land, buildings, and equipment owned by the District are not presented in the financial statements. Also, general long-term debt such as general obligation bonds, capital leases, temporary notes, and compensated absences are not presented in the financial statements.

D. Accounting for Capital Assets and Depreciation

The District has not maintained a record of capital assets used in performance of general government operations as required by generally accepted accounting principles.

28



June 30, 2009

1. Summarv of Significant Accounting Policies (Continued):

E. Budgetary Information

Kansas Statutes require that an annual operating budget be legally adopted for the General Fund, Special Revenue Funds (unless specifically exempted by statute), and Debt Service Funds. The statutes provide for the following sequence and timetable in the adoption ofthe legal annual operating budget:

1. Preparation of the budget for the succeeding fiscal year on or before August 1 st.

2. Publication in local newspaper on or before August 5th of the proposed budget and notice of public hearing on the budget.

3. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing.

4. Adoption of the final budget on or before August 25th.

The statutes allow for the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication, the hearing may be held and the governing body may amend the budget at that time. There were no such budget amendments for this year.

The statutes permit transferring budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess ofthe total amount ofthe adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures.

All legal annual operating budgets are prepared using the statutory basis of accounting, in which revenues are recognized when cash is received and expenditures include disbursements, accounts payable, and encumbrances, with disbursements being adjusted for prior year's accounts payable and encumbrances. Encumbrances are commitments by the District for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. Any unused budgeted expenditure authority lapses at year-end.

A legal operating budget is not required for fiduciary funds and the following special revenue funds:

Textbook Rental Fund Title MD Technology Education Fund

Title I Grant Fund Title V Part A Innovative Grant Fund

Title IV Drug Free Fund Title IIA Teacher Quality Fund

Kan-Ed Grant Fund Contingency Reserve Fund

District Activity Funds

Spending in funds which are not subject to the legal annual operating budget requirement is controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body.

29



June 30, 2009


F. Deposits and Investments

The District follows the practice of pooling cash and investments of all funds. Each fund's portion of total cash and investments is summarized by fund type in the Summary of Cash Receipts, Expenditures, and Unencumbered Cash.

The District had no investments as of June 30, 2009.

K.S.A. 9-1401 establishes the depositories which may be used by the District. The statute requires banks eligible to hold District funds have a main or branch bank in the county in which the District is located, or in an adjoining county if such institution has been designated as an official depository, and the banks provide an acceptable rate of return on funds. In addition, K.S.A. 9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The District has no other policies that would further limit interest rate risk.

K.S.A. 12-1675 limits the District's investments of idle funds to time deposits, open accounts, and certificates of deposit with allowable financial institutions; U.S. government securities; temporary notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The District has no investment policy that would further limit its investment choices.

Concentration of Credit Risk - State statutes place no limit on the amount the District may invest in any one issuer as long as the investments are adequately secured under K.S.A. 9-1402 and K.S.A. 9-1405.

Custodial Credit Risk - Deposits - Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. State statutes require the District's deposits in financial institutions to be entirely covered by federal depository insurance or by collateral held under a joint custody receipt issued by a bank within the State of Kansas, the Federal Reserve Bank of Kansas City, or the Federal Home Loan Bank of Topeka, except during designated "peak periods" when required coverage is 50%. The District did not use peak depository coverage. All deposits were legally secured at June 30, 2009.

Deposits - At year-end, the carrying amount of the District's deposits was $940,111 and the bank balance was $1,091,617. The bank balance was held by one bank resulting in a concentration of credit risk. Of the bank balance, $324,926 was covered by FDIC insurance and the remaining $766,691 was collateralized by pledged securities held under joint custody receipts issued by a third-party bank in the District's name.

G. Property Tax Calendar

Property taxes are collected and remitted to the District by the County Treasurer. Taxes levied annually on November 1st are due one-half by December 20th and one-half by May 10th. Major tax distributions are made in December through June. Lien date(s) for personal property are March and August, and for real property, is September. Delinquent tax payments, received throughout the year, are recognized as revenue in the year received.

30



June 30, 2009


H. Compensated Absences

Sick Leave

Certified Employees - The policy regarding sick pay is that all employees are allowed ten (10) days per year, accumulative to sixty (60) days. According to the negotiated agreement, when an employee reaches sixty (60) or more days (could be from 60 to 70 days), the days not used for sick leave during that year above sixty (60) days will be bought back at the end of the school year at a rate of $50 a day, not to exceed $500 per person. The liability was undeterminable as of June 30, 2009.

Noncertified Employees - Full-time employees are allowed ten (10) days per year, accumulative to forty (40) days. Monthly and part-time employees are allowed seven (7) days per year, accumulative to twenty-one (21) days. Upon termination of employment, no sick leave benefits will be paid out beyond the District's buy-back policy for certified personnel. In accordance with the provisions of Governmental Accounting Standards Board Statement No. 16, "Accounting for Compensated Absences", no liability is recorded for nonvesting accumulating rights to receive sick pay benefits.

Sick Leave Bank - The sick leave bank is voluntary and open to all employees who receive sick leave days from the District. Employees have until September 5th of each school year to deposit sick days to the bank. An employee may deposit up to ten (10) days each year, to an accumulated maximum deposit of twenty (20) days of sick leave for each employee. The number of sick leave days that an employee may borrow from the sick leave bank is limited to two times the number of sick leave days which the employee has contributed to the sick leave bank. Sick leave days which are borrowed from the bank will be paid back by the employee at the rate of three (3) days per year. An employee's request for sick days will include a statement from their doctor and a written statement from the employee stating the reason for the need to borrow sick leave days from the bank. The request will be given to the superintendent, and he will provide a written reply to the employee within five (5) business days.

Vacation Leave

The superintendent is allowed twenty (20) days of vacation per year. Other full-time employees are allowed two (2) weeks vacation after one year of service. After ten (10) years of service, three (3) weeks of vacation will be provided. The District does not allow vacation leave to be accumulated unless approved by the superintendent. Monthly and part-time employees are not eligible for vacation pay. The liability was undeterminable as of June 30, 2009.

Personal Leave

Certified Employees - Each employee is allowed two (2) days of non-accumulative personal leave each contract year. Employees will be paid $50 for each day of unused personal leave. The Board is willing to grant a third day of personal leave for which the employee will pay one-half of the cost of the substitute. No liability exists as of June 30, 2009.

Non-Certified Employees - Full-time employees are allowed two (2) days of non-accumulative personal leave. Monthly and part-time employees shall be allowed one (1) day of personal leave. Employees will be paid $20 for each day of unused personal leave. No liability exists at June 30,2009.

31



June 30, 2009

1. Summarv of Significant Accounting Policies (Continued):

I. Defined Benefit Pension Plan

Plan Description - Chase-Raymond Unified School District No. 401, Chase, Kansas contributes to the Kansas Public Employees Retirement System (KPERS), a cost-sharing multiple-employer defined benefit pension plan as provided by K.S.A. 74-4901, et seq. KPERS provides retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and amends benefit provisions. KPERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to KPERS (611 S. Kansas, Suite 100, Topeka, KS 66603) or by calling 1-888-275-5737.

Funding Policy - K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered salary. Member-employees' contributions are withheld by their employer and paid to KPERS according to the provisions of section 414(h) of the Internal Revenue Code. The State of Kansas is required to contribute the remaining amount necessary to achieve the actuarially determined contribution rate. Kansas contributed 7.97% of covered payroll for the fiscal year ending June 30, 2009. These contribution requirements are established by KPERS and are periodically revised. Kansas' contributions to KPERS for all Kansas public employees forthe years ending June 30,2009,2008 and 2007 were $242,277,363, $220,815,154 and $192,425,626 respectively, equal to the required contributions for each year.

J. Deferred Compensation Plan

The District sponsors a deferred compensation plan underthe Internal Revenue Code Section 403(b). Permanent and part time employees are eligible to participate under the plan. The employee is responsible forthe amount of deferred compensation to be contributed. The District is not required to make any contributions.

K. Other Post Employment Benefits

As provided by K.S.A. 12-5040, the District allows retirees to participate in the group health insurance plan. While each retiree pays the full amount of the applicable premium, conceptually, the District is subsidizing the retirees because each participant is charged a level of premium regardless of age. However, the cost of this subsidy has not been quantified in these financial statements.

Under the Consolidated Omnibus Budget Reconciliation Act (COBIRA), the District makes health care benefits available to eligible former employees and eligible dependents. Certain requirements are outlined by the federal government for this coverage. The premium is paid in full by the insured. There is no cost to the District under this program.

L. Reimbursements

The District records reimbursable expenditures (or expenses) in the fund that makes the disbursement and records reimbursements as revenue to the fund.

M. Encumbrances

Encumbrances represent commitments related to unperformed contracts for goods and services. Encumbrances accounting under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded to reserve that portion ofthe applicable appropriation is utilized in the governmental funds.

32



June 30, 2009


N. Restricted Assets

These consist of cash restricted for Agency Funds.

2. Transfers and Payments:

Transfers and payments within the reporting entity are substantially for the purposes of subsidizing operating functions, funding capital projects and asset acquisitions, or maintaining debt service on a routine basis as authorized by Kansas Statutes.

The District's operating transfers for June 30, 2009 were as follows:

From General Fund General Fund General Fund General Fund General Fund General Fund Supplemental General Fund Supplemental General Fund Supplemental General Fund Supplemental General Fund 4 Year Old At Risk Fund Total Comparative Data:

To 4 Year Old At Risk Fund At Risk Fund (K-12) Food Service Fund Special Education Fund ESOL Fund Contingency Reserve Fund Food Service Fund Professional Development Fund Special Education Fund Vocational Education Fund General Fund

Kansas Statutory Authority 72-6414 $ 72-6414 72-5119 72-6420 72-6428 72-6426 72-5119 72-9609 72-6420 72-6421 72-6428

$ _

Amount 35,769

146,044 17,271

189,751 3,899

80,000 35,549 6,017

25,123 61,665

769 601.857

Comparative data for the prior year has been presented in Statement 3 of the accompanying financial statements in order to provide an understanding of changes in the District's cash and unencumbered cash balances. However, complete comparative data (i.e., presentation of prior year totals in Statements 1 and 2) has not been presented since their inclusion would make the statements unduly complex and difficult to read.

4. Risk Management - Claims and Judgments:

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District has been unable to obtain workers' compensation insurance at a cost it considered to be economically justifiable. For this reason, the District joined together with other districts in the State to participate in the Kansas Association of School Boards Risk Management Services, a public entity risk pool currently operating as a common risk management and insurance program for participating members..

The District pays an annual premium to Kansas Association of School Boards (KASB) for its workers' compensation insurance coverage. The agreement to participate provides that the KASB will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of $500,000 for each insured event. Additional premiums may be due if total claims for the pool are different than what has been anticipated by KASB's Risk Management Services' Management.

33



June 30, 2009

4. Risk Management - Claims and Judgments (Continued):

The District continues to carry commercial insurance for all other risks of loss, including property, general liability, inland marine, crime, umbrella, linebacker, auto and fidelity bond coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. At June 30, 2009, the financial statements do not include liabilities for anticipated costs.

5. Use of Estimates in the Preparation of Financial Statements:

The preparation of financial statements on a prescribed basis of accounting that demonstrates compliance with the statutory basis and budget laws of the State of Kansas requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

6. Litigation:

The District is party to various legal proceedings, which normally occur in governmental operations. These legal proceedings are not likely to have a material adverse impact on the funds of the District.

7. Related Party Transactions:

The District contracted services from Tony's Buggy Supply, which is owned by the spouse of the District Treasurer. For the fiscal year ending June 30,2009, the District expended $9,968 for general repairs.

8. Grants and Shared Revenues:

The District participates in numerous state and federal grant programs which are governed by various rules and regulations of the grantor agencies. Cost charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, refunds of any money received may be required. In the opinion of the District, any liability for reimbursement, which may arise as the result of these audits, is not believed to be material.

9. Inventories and Prepaid Expenses:

Inventories and prepaid expenses, which benefit future periods, are recorded as expenditures during the year of purchase as required by state statutes.

34



June 30, 2009

10. Stewardship. Compliance and Accountability:

K.S.A. 72-6417(d) and K.S.A. 72-6434(d) require the school district to record any payment of general state aid that is due to be paid during the month of June and is paid to the school district after June 30, as a receipt for the school year ending June 30; footnote 12 show the revenue as required by these Statutes.

Outstanding checks over two years old were noted in the main checking account. This is a violation of K.SA 10-815.

Expenditures exceeded budget authority in the General Fund and 4 Year Old At Risk Fund by the amounts of $3,715 and $769, respectively. This is a violation of K.S.A. 79-2935.

11. Long-Term Debt:

The District has the following types of Long-Term Debt:

General Obligation Bonds - On February 1, 1999, the District issued $800,000 in School Improvement Bonds - Series 1999 A Bonds for the purpose of financing the cost of constructing, reconstructing, and maintaining the Public School Buildings.

Capital Lease - The District has entered into a lease agreement with an option to purchase at the expiration of the lease terms.

35

CHASE-RAYMOND UNIFIED SCHOOL DISTRICT NO. 401, CHASE, KANSAS

Notes to Financial Statements For the Year Ended June 30, 2009

11. Long-Term Debt:

Changes in long-term liabilities for Chase-Raymond Unified School District No. 401, Chase, Kansas for the year ended June 30, 2009 were as follows:

Issue Interest Rates

Date of Issue

Amount of Issue

General Obligation Bond: School Improvement Bonds 3.65%-4.2% 02/01/99 $ 800,000

Capital Lease: Copier Lease

Total Long-Term Debt

Date of Balance Final Beginning Reductions/

Maturity of Year Additions Payments Net Change

09/01/09 $ 205,000

6.50% 02/20/08 12,623 05/20/13 11,771

$ 812,623 $ 216,771

2,143 (2,143)

102,143 (102,143)

Balance

Endof

Year

Interest Paid

100,000 (100,000) 105,000

9,628

114,628

6,460

702

7,162

Current maturities of long-temi debt and interest for the next four years through maturity are as follows:

Year

Principal:

General Obligation Bond - School Improvements

Capital Lease - Copier

Total Principal

Interest:

General Obligation Bond - School Improvements

Capital Lease - Copier

Total Interest

Total Principal and Interest

2010

105,000

2,286

107,286

2,205

559

2,764

; 110,050

2011

-

2,439

2,439

-

405

405

2,844

2012

-

2,602

2,602

-

242

242

2,844

2013

-

2,301

2,301

-

69

69

2,370

Total

105,000

9,628

114,628

2,205

1,275

3,480

118,108

36




12. Compliance with K.S.A. 72-6417(d) and K.S.A. 72-6434(d):

K.S.A. 72-6417(d) and K.S.A. 72-6434(d) require the school district to record any payment of general state aid that is due to be paid during the month of June and is paid to the school district after June 30, as a receipt for the school year ending on June 30. The following shows the revenue as required by the Statutes.

General Fund Statutory Revenues and Expenditures - Statutory and Budget


Statutory Revenues: Taxes and Shared Revenue Intergovernmental Revenue-State Equalization Aid State Special Education

Reimbursed Expenses Operating Transfers In

Total Statutory Revenues

Expenditures: Instruction Student Support Services Instructional Support Services General Administration School Administration Central Services Operations and Maintenance Student Transportation Services Operating Transfers Out Adjustment to Comply with Legal Max

Legal General Fund Budget Adjustment for Qualifying Budget Credits (a)

Total Expenditures

Statutory Revenues Over (Under) Expenditures

Modified Unencumbered Cash, July 1

Modified Unencumbered Cash, June 30

Statutory Transactions

$ 419,113

978,073 145,015

16,203 (a) 769

1,559,173

642,360 28,955 42,021 64,032

116,090 50,482 98,155 47,289

472,734 -

1,562,118 -

1,562,118

(2,945)

14,434

$ 11,489

Budget

381,633

1,022,826 176,792

--

1,581,251

787,162 31,540 73,543 52,733

110,758 62,408

134,778 58,225

270,104 (39,051)

1,542,200 16,203

1,558,403

Variance Favorable

(Unfavorable)

37,480

(44,753) (31,777) 16,203

769

(22,078)

144,802 2,585

31,522 (11,299)

(5,332) 11,926 36,623 10,936

(202,630) (39,051) 19,133

(a) 16,203

(3,715)

37

Documents

CHASE - RAYMOND UNIFIED SCHOOL DISTRICT NO. 401 …Chase-Raymond Unified School District No. 401 Chase, KS 67524 We have audited the accompanying financial statements of Chase-Raymond