Audit Report Final 09-10

RADNOR TOWNSHIP SCHOOL DISTRICT
WAYNE, PENNSYLVANIA
AUDIT REPORT
JUNE 30, 2010

TABLE OF CONTENTS
INDEPENDENT AUDITORS· REPORT 1-2
MANAGEMENT'S DISCUSSION AND ANALYSIS 3 - 10
BASIC FINANCIAL STATEMENTS
Entity-wide Financial Statements:
- Statement of Net Assets 11
- Statement of Activities 12
Fund Financial Statements:
- Balance Sheet - Governmental Funds 13
- Reconciliation of Balance Sheet - Governmental Funds

to Statement of Net Assets 14
- Statement of Revenues, Expenditures and Changes in

Fund Balances - Governmental Funds 15
- Reconciliation of Statement of Revenues, Expenditures

Changes in Fund Balances - Governmental Funds to
Statement of Activities 16
- BUdgetary Comparison Statement - General Fund 17
- Statement of Net Assets - Proprietary Fund 18
- Statement of Revenues, Expenses and Changes in Fund

Net Assets - Proprietary Fund 19
- Statement of Cash Flows - Proprietary Fund 20
- Statement of Net Assets - Fiduciary Fund 21
- Statement of Changes in Net Assets - Fiduciary Fund 22
NOTES TO FINANCIAL STATEMENTS 23 - 39

TABLE OF CONTENTS
SINGLE AUDIT
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 40 41
Report on Compliance with Requirements Applicable

to Each Major Program and on Internal Control Over
Compliance in Accordance with OMB Circular A-133 42 -43
Schedule of Findings and Recommendations 44 - 48
Schedule of Expenditures of Federal Awards and Certain State Grants 49
Notes to Schedule of Expenditures of Federal Awards and Certain

State Grants 50
Barbacane, Thornton & LLP
200 Building
3411 Road
Wilmington, Delaware 19810
INDEPENDENT AUDITORS' REPORT
T 302.478.8940
F 302.468.4001
www.btepa.eom
February 2011
Board of School Directors

Radnor Township Schoo! District
Wayne, Pennsylvania
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of Radnor Township School
District (the IIDistrict Wayne, Pennsylvania, asof and for the year ended June 30, 2010, which collectively
ll
),
comprise the District's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of Radnor Township School District's management. Our responsibility is to
express opinions on these financial statements based on our audit. The prior year information has been
derived from the District's adjusted 2009 financial statements. In our report dated June 9, 2010, we
expressed unqualified opinions 'on the respective financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information.
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. 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund
and the aggregate remaining fund information of Radnor Township School District, Wayne, Pennsylvania,
as of June 30,2010, and the respective changes in financial position and cash flows, where applicable,
thereof and the bUdgetary comparisons for the general fund 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 February 22,
2011 on our consideration of Radnor Township School District's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing
the results of our audit.
- 1
CERTIFIED PUBLIC ACCOUNTANTS
Radnor Township School District
The management's discussion and analysis on pages 3-10 is not a required part of the basic financial
statements but is supplementary information required by accounting principles generally accepted in the
United States of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Radnor Township School District's basic financial statements. The accompanying schedule of
expenditures of federal awards and certain state grants is presented for purposes of additional analysis as
required by the U.S. Office of Management and BUdget Circular A-133, IIAudits of States, local
Governments and Nonprofit Organizations'" and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
;$~~1{'7 LLP
BARBACANE, THORN;ON & COMPANY LLP ?
- 2 -
WAYNE, PENNSYlVANIA
MANAGEMENT'S DISCUSSION AND (MD&A) UNAUDITED
For the Year Ended June 3D, 2010
Management·s discussion and analysis ("MDM") of the financial performance of Radnor Township
School District (the "DistricfU) provides an overall review of the District's financial activities for the fiscal
year ended June 30, 2010.
The intent of the MD&A is to look at the District's financial performance as a whole. However, readers
also should review the financial statements and related notes to enhance their understanding of the
District's overall financial performance.
FINANCIAL HIGHLIGHTS
The trend of prior years indicates that during the fiscal year 2009-2010, the District would experience
another year of significant increases in the costs for contracted salaries and employee benefits. The
District again budgeted at an increased rate for the employer contribution toward the Pennsylvania
State Employees' Retirement System (PSERS) to prepare for the anticipated spike in future years. The
Board of School Directors (the "Boardll ) elected to increase the real estate tax millage by .7613 mills in
order to meet the operating cost increases in staff salaries and benefits. The 2009-2010 bUdget also
appropriated $525,000 for nonrecurring capital improvements. The results of operations for 2009-
2010 show that actual general fund expenditures during the year were below actual general fund
revenues realized by $4,547,471. However, the unreserved undesignated fund balance remains well
below the eight percent cap imposed by the Commonwealth of Pennsylvania at $5,686,510 due
largely to the Board's actions to designate $3.784 million for future PSERS pension obligations
predicted to hit over the course of the next three years and 3.455 million in capital project funds
designed to limit the impact of upcoming nonrecurring capital expenses on the operating bUdget
over the next several years. In addition, another $1 .29 million is designated for the long-term liability
of early retirement incentive programs.
The District's net assets increased from $7.310 million as of June 30, 2009 to $10.847 million as of June
30,2010 due mainly to the results of operations, more fully explained below.
Reporting the DistrIct as a Whole
The Statement of Net Assets and statement of Activities
The Statement of Net Assets and the Statement of Activities report information about the District and its
activities as a whole. These statements include all assets and liabilities using the accrual basis of
accounting similar to the accounting used by private sector corporations. All of the current year's
revenues and expenses are taken into consideration regardless of when cash is received or paid.
These two statements report the District's net assets and changes in them. The change in net assets
provides the reader with a tool to assist in determining whether the District's financial health'is
improving or deteriorating. The reader will need to consider other nonfinancial factors such as
property tax base, current property tax laws, student enrollment growth and facility conditions in
arriving at a conclusion regarding the overall health of the District.
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MANAGEMENT'S DISCUSSION AND ANALYSIS - UNAUDITED (CONrD)
For the Year Ended June 30,2010
Entity-wide Financial Analysis
Net assets may serve over time as a useful indicator of a government's financial position. In the case
of the District, assets exceeded liabilities by $10.8 million at the close of fiscal year 2009-2010.
A portion of the District's total net assets reflects its investment in capital assets, net of related debt.
The District uses capital assets to provide services; consequently, these assets are not available for
future spending. Although the District's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources
since the capital assets themselves cannot be used to liquidate these liabilities.
A comparative analysis of fiscal year 2010 to 2009 follows:
Net Assets
Governmental Activities Business-type Activities Totals

2010 2009 2010 2009 2010 2009
ASSETS:
Current and other assets $ 27,683,577 $ 25,006,022 $ 452,712 $ 389,107 $ 28,136.289 $ 25,395,129
Capital assets, net 101,133,208 103,845,342 157,353 156,735 101,290,561 104,002,077
TOTAL ASSETS $128,816,785 $128,851,364 $ 610,065 $ 545,842 $129,426,850 $129,397,206
LIABILITIES:
Current liabilities $ 9,452,438 $ 10,082,772 $ 91,885 $ 82,270 $ 9,544,323 $ 10,165,042
Long-term debt 109,035,142 111,921,928 109,035,142 111,921,928
TOTAL LIABILITIES 118,487,580 122,004,700 91,885 82,270 118,579,465 122,086,970
NET ASSETS:
Invested in capital assets,
net of related debt (3,928,754) (2,908,261 ) 157,353 156,735 (3,771,401 ) (2,751,526)
Unrestricted 14,257,959 9,754,925 360,827 306,837 14,618,786 10,061,762
TOTAL NET ASSETS 10,329,205 6,846,664 518,180 463,572 10,847,385 7,310,236
TOTAL LIABILITIES AND

NET ASSETS $128,816,785 $128,851,364 $ 610,065 $ 545,842 $129,426,850 $129,397,206
The District reported increases in its unrestricted net assets as a result of current year operations The
District's investment in capital assets, net of related debt, decreased as a result of the District's capital
assets being depreciated at a rate faster than debt associated with acquiring capital assets is being
retired. This trend will reverse in future periods. In addition it has been the practice of the District, when
possible, to fund capital items through current revenue sources rather than incurring debt to finance
these items.
Governmental Actlymes
The Statement of Activities shows the cost of program services and the charges for services and grants
offsetting those services. The table below reflects the cost of program services and the net cost of
those services after taking into account the program revenues for the governmental activities.
-4-
MANAGEMENTS DISCUSSION AND ANALYSIS - UNAUDITED (CONTD)
For the Year Ended June 30, 2010
Total and Net Cost of Services

Total Net Total Net
Cost of Services Cost of Services Cost of Services Cost of Services
2010 2010 2009 2009
Program expenses:
Instruction $ 41,649,703 $ (35,870,475) $ 40,214,929 $ (34,986,395)
Support Services:
Instructional student support 6,987,293 (6,614,844) 7,116,889 (6,755,809)
Administrative and financial
support services 6,674,698 (6,432,073) 6,267,732 (6,048,396)
Operation and maintenance
of plant services 6,898,251 (6,523,908) 8,282,333 (7,910,071)
Pupil transportation 3,377,113 (2,378,367) 3,201,681 (2,210,990)
Student activities 1,136,322 (1,061,810) 1,188,187 (1,118,114)
Community services 92,031 834
Interest and fiscal charges 4,798,852 (4,727,372) 4,808,711 (4,729,746)
TOTALS $ 71,614,263 $ (63,660,675) $ 71,081,296 $ (63,698,079)
The increase in the net costs associated with instruction is a direct result of contractual increases in
salaries somewhat offset by staff reductions from the prior year. The District also experienced
significant decreased costs associated with the operation and maintenance of plant services as
concerted efforts were made to manage energy and fuel costs.
Changes in Net Assets

Governmental Activities Business-type Activities Totals
2010 2009 2010 2009 2010 2009
REVENUES
Program revenues:
Charges for services $ 334,591 $ 1,055,723 $ 1,341,345 $1,394,272 $ 1,675,936 $ 2,449,995
Operatinq qrants 7,618,997 6,327,494 213,146 192,681 7,832,143 6,520,175
Total Program Revenues 7,953,588 7,383,217 1,554,491 1,586,953 9,508,079 8,970,170
General revenues:
Property taxes 62,197,322 59,068,886 62,197,322 59,068,886
Other taxes 1,362,403 1,245,537 1,362,403 1,245,537
Grants and entitlements 3,061,762 3,243,157 3,061,762 3,243,157
Investment earnings 360,800 723,505 1,464 4,380 362,264 727,885
Miscellaneous 160,929 849,454 160,929 849,454
Total General Revenues 67,143,216 65,130,539 1,464 4,380 67,144,680 65,134,919
TOTAL REVENUES 75,096,804 72,513,756 1,555,955 1,591,333 76,652,759 74,105,089
EXPENSES
Program expenses:
Instruction 41,649,703 40,214,929 41,649,703 40,214,929
Instructional student support 6,987,293 7,116,889 6,987,293 7,116,889
Administrative and financial
support services 6,674,698 6,267,732 6,674,698 6,267,732
of plant services 6,898,251 8,282,333 6,898,251 8,282,333
Pupil transportation 3,377,113 3,201,681 3,377,113 3,201,681
Student activities 1,136,322 1,188,187 1,136,322 1,188,187
Community services 92,031 834 92,031 834
Debt service 4,798,852 4,808,711 4,798,852 4,808,711
Food service 1,501,347 1,562,681 1,501,347 1,562,681
TOTAL EXPENSES 71,614,263 71,081,296 1,501,347 1,562,681 73,115,610 72,643,977
CHANGE IN NET ASSETS $ 3,482,541 $ 1,432,460 $ 54,608 $ 28,652 $ 3,537,149 $ 1,461,112
-5-
The cost of all governmental activities in 2009-2010 was $73.115 million. The amount that taxpayers
ultimately financed for these activities through tax revenues was $63.560 million, or 86.93 percent. A
majority of the other costs were paid by government agencies and organizations that subsidized
funding with intergovernmental aid and contributions ($9.555 million, or 13.07 percent).
Business-type Activities
Business-type activities represent the District's food service program. The program had an increase in
net assets of $55 thousand for the year ended June 30, 2010. The increase was due primarily to
higher federal meal subsidy rates in the program over the prior year.
Reporting the District's Most Significant Funds
Governmental Funds
Most of the District's activities are reported in governmental funds, which focus on how money flows
into and out of those funds and the balances left at year end available for spending in future periods.
These funds are reported using the modified accrual accounting method, which measures cash and
other financial assets that can be readily converted to cash. The governmental fund statements
provide a detailed short-term view of the District's general government operations and the basic
services it provides. Governmental fund information helps the reader determine whether there are
more or fewer financial resources available to spend in the near future to finance the District's
programs. The relationship (or differences) between governmental activities (reported in the State-
ment of Net Assets and the Statement of Activities) and governmental funds is reconciled in the basic
financial statements.
Proprietary Funds
Proprietary funds use the accrual basis of accounting, the same as on the entity-wide statements;
therefore, the statements will essentially match the business-type activities portion of the entity-wide
statements.
Fiduc/arv Funds
The District is the agent, or fiduciary, for funds held on behalf of students of the District. All of the
District's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets on page 21 .
The District excludes these activities from its other financial statements because the assets cannot be
utilized by the District to finance its operations.
Fund Financial statements
Our analysis of the District's major funds begins on page 13 and provides detailed information about
the most significant funds - not the District as a whole. Some funds are required to be established by
State statute, while others are established by the District to help manage money for particular
purposes and compliance with various grant provisions. The District's three types of funds,
governmental, proprietary and fiduciary, use different accounting approaches as further described in
the notes to the financial statements.
-6-
For the Year Ended June 30. 2010
The District's governmental funds (as presented on the balance sheet on page 13) reported a
combined fund balance of $17.2 million, which is up significantly from last year's total of $13.7 million.
The schedule below indicates the fund balance and the total change in fund balances as of June 30,
2010 and 2009.
Changes in Fund Balance
Fund Balance Fund Balance Increase

June 30, 2010 June 30,2009 (Decrease)
General Fund $ 14,215,648 $ 9,668,177 $ 4,547,471

Pool Fund 57,792 52,212 5,580
Technology Fund 665,686 1,088,163 (422,477)
Capital Reserve Fund 432,401 623,494 (191,093)
Capital Projects Fund 1,846,857 2,279,791 (432,934)
Total $ 17,218,384 $ 13,711,837 $ 3,506,547
Please note that the figures listed in the General Fund balance include a combination of both
designated and undesignated funds. As mentioned above, only $5.687 million of the $14.216 million
general fund balance was unreserved as the District ended the 2009-2010 fiscal year. All other funds
listed in the table experienced an overall decline in fund balance as funds on reserve were used to
fund various projects and purchases during the course of the 2009-2010 fiscal year.
In general, the District's general fund balance increase is due to the Board's decision to reserve funds
for future pension and nonrecurring capital items, and lower than anticipated expenses in the areas
of regUlar and special education instructional programs, operation and maintenance of facilities, and
student transportation.
Revenues
Other revenues
Intergovernmental 2%
12%
II Property taxes
Investment
ill Other taxes
earnings
1% ~ Investment earnings
.. Intergovernmental
~ Other revenues
Property taxes
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MANAGEMENT'S DISCUSSION AND ANAlYSIS - UNAUDITED (CONT'D)
2010 2009 Dollar Percent

Revenue Revenue Change Change
Property taxes $ 62,197,322 $ 59,068,886 $ 3,128,436 5.30%

Other taxes 1,362,403 1,245,537 116,866 9.38%
Investment earnings 362,264 727,885 (365,621) -50.23%
Intergovernmental 9,854,782 9,535,779 319,003 3.35%
Other revenue 1,289,341 1,429,947 (140,606) -9.83%
Total $ 75,066,112 $ 72,008,034 $ 3,058,078 4.25%
Property tax revenue increased by a very modest $3.128 million over the prior year despite a .7613
mill increase in the District's millage rate. Other taxes increased by only $116 thousand due primarily
to the economic impact of the recession. Investment earnings declined sharply due to the major
decline in interest rates. Intergovernmental revenue increased because of ARRA funding from the
federal government. The District's reliance upon tax revenues is demonstrated by the graph on the
preceding page that Indicates 85.0 percent of total revenues for government activities comes from
local taxes. Other revenues consist primarily of facility rental, tuition payments and miscellaneous
revenues from student projects.
Expenditures
As the graph below illustrates, the largest portions of general fund expenditures are for salaries and
fringe benefits. The District is a service entity and as such is labor-intensive.
2009·2010 Expenditures
Debt serv/Fund Tran,

Equipment, 0.8% 11.4%
Books and supplies,

mSalaries and wages 3.3%
II Fringe benefits
o Purchased Services
Purchased Services,
o Books and supplies 12.7%
Salaries and wages,
II Equipment 53.8%
mDebt serv/Fund Tran
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MANAGEMENT'S DISCUSSION AND ANAlVSIS - UNAUDITED (CONTD)
2010 2009 Dollar Percentage

Amount Amount Change Change
Salaries and wages $ 37,924,857 $ 37,268,435 $ 656,422 1.76%

Fringe benefits 12,704,151 12,478,775 225,376 1.81%
Purchased services 8,981,171 9,581,575 600,404 -4.81%
Books and supplies 2,342,210 2,503,776 (161,566) -6.45%
Equipment 543,215 842,567 (299,352) -35.53%
Debt serv/Fund Tran 8,038,284 387,810
Total $ 70,533,888
Expenditures increased by a very modest $208 thousand, or 0.27 percent, due largely to staffing
reduction.
General Fund BUdget Information
The District's bUdget is prepared in accordance with Pennsylvania law and is based on the modified
accrual basis of accounting. The most significant bUdgeted fund is the General Fund.
The final bUdget for expenditures reflects required changes in functional categories due to spending
patterns.
Spending Review
Positive Percent
Budget Actual (Negative) Change
Regular programs 1100 $ 29,895,384 $ 28,265,033 $ 1,630,351 -5.45%

Special programs 1200 10,545,579 10,227,435 318,144 -3.02%
Vocational programs 1300 87,202 81,099 6,103 -7.00%
Other instructional programs 1400 1,076,881 1,076,881 0%
Pupil personnel services 2100 2,395,896 2,300,158 95,738 -4.00%
Instructional staff services 2200 3,659,261 3,501,784 157,477 -4.69%
Administrative services 2300 4,410,716 4,249,686 161,030 -3.65%
Pupil health 2400 721,356 698,236 23,120 -3.20%
Business services 2500 1,035,002 1,030,555 4,447 -.43%
of plant services 2600 6,524,066 6,127,297 396,769 -6.08%
Student transportation services 2700 3,575,018 3,124,023 450,995 -12.6%
Data processing services 2800 1,269,076 1,011,238 257,838 -20.3%
Other support services 2900 70,562 70,562 0.00%
Student activities 3200 1,156,958 1,136,322 20,636 -1.78%
Community services 3300 996 995 1 0%
Debt service 5110 7,649,016 7,107,584 541,432 -7.08%
Major areas of the bUdget where actual costs were significantly below the bUdgeted amounts were in
the areas of regUlar and special education, operation and maintenance of facilities, student
transportation and data processing services. Under-spending in these areas was related to a
combination of salary and benefit reductions and less than anticipated costs for fuel and utilities.
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Capital Assets
The District has $101.291 million invested in capital assets, net of depreciation, with $101.133 million
net of depreciation attributed to governmental activities. Acquisition for governmental activities
totaled $2.054 million and depreciation was $4.766 million. The majority of the acquisitions were for
replacement of technology and improvements to buildings. Detailed information regarding capital
asset activity is included in the notes to the basic financial statements (Note 5).
At June 30, 2010, the District had $107.545 million in outstanding bonds and notes. The District paid
$2.465 million in principal on outstanding debt during the fiscal year. Detailed information regarding
long-term debt is included in the notes to the basic financial statements (Note 7).
Factors Expected to have an Effect on Future Operations
As the District ended the 2009-2010 fiscal year, the labor agreement with the Radnor Township
Education Association (RTEA) was set to expire on August 31, 2010. At press time, (February 2011), the
renewal agreement with RTEA had not yet been approved. labor agreements with all other
bargaining units representing District employees are in place at this time.
Anticipated large increases in employer contributions to the Pennsylvania School Employee

Retirement System coupled with the cost impacts associated with the teacher contract renewal and
the limits on the District's ability to raise revenues imposed by Special Session Act 1 led to decision on
staff consolidation as the District moved into the 2009-2010 school year. All Commonwealth public
school districts are now required to bUdget within a state-wide annual inflation index or submit any
bUdget over this index amount to the voters for approval (Special Session Act 1 of 2006). Although
this legislation is considered to be revenue-neutral in terms of total tax dollars being generated,
revenues generated from gaming revenues were distributed for the first time in the summer/fall of 2008
to public school districts, and passed along to taxpayers in the form of homestead exclusion tax
credits to reduce the reliance on the real estate tax. In Radnor's case this amounted to $265.95 per
residential tax parcel eligible for the credit in 2009-2010.
Contacting the District Financial Management
Our financial report is designed to provide our citizens, taxpayers, parents, students, staff, investors
and creditors with a general overview of the District's finances and to show the Board's accountability
for the money it receives. If you have questions about this report or wish to request additional
information, please contact Timothy E. Vail, Business Administrator at Radnor Township School District,
135 South Wayne Avenue, Wayne, Pennsylvania 19087 (610) 688-8100.
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STATEMENT OF NET ASSETS
JUNE 30, 2010
(With Summarized Comparative Data for June 2009)
Governmental Business-type
Activities Activities
ASSETS
Cash and cash equivalents $ 20,244,124 $ 400,365 $ 20,644,489 $ 20,966,675
Investments 4,245,000 4,245,000 1,240,904
Taxes receivable 957,095 957,095 991,461
Due from other governments 459,354 27,210 486,564 472,339
Internal balances 13,087 (13,087)
Other receivables 904,493 3,880 908,373 786,036
Inventories 34,344 34,344 34,103
Issuance costs 570,286 570,286 597,665
Bond discounts 290,138 290,138 305,946
Land 2,952,500 2,952,500 2,952,500
Site Improvements 2,162,102 2,162,102 2,110,566
BUildings and improvements 90,437,446 90,437,446 92,291,637
Construction-in-progress 893,721
Furniture and equipment 5,581,160 157,353 5,738,513 5,753,653
TOTAL ASSETS $128,816,785 $ 610,065 $ 129,426,850 $129,397,206
LIABILITIES AND NET ASSETS

LIABILITIES:
Accounts payable $ 1,837,122 $ 41,825 $ 1,878,947 $ 2,603,831
Accrued salaries, payroll withholdings and benefits 6,177,294 6,177,294 5,542,104
Accrued interest payable 1,298,354 1,298,354 1,219,751
Deferred revenues 57,987 50,060 108,047 83,698
Other current liabilities 81,681 81,681 715,658
Long-term liabilities
Portion due or payable within one year:
Bonds payable 2,550,000 2,550,000 2,465,000
Add: Unamortized premium 79,869 79,869 79,869
Less: Deferred amount on refunding (114,347) (114,347) (114,347)
Accumulated compensated absencesl
early retirement incentive 493,590 493,590 536,092
Portion due or payable after one year:
Note payable 15,000,000 15,000,000 15,000,000
Bonds payable 89,995,000 89,995,000 92,545,000
Add: Unamortized premium 1,497,594 1,497,594 1,577,463
Less: Deferred amount on refunding (2,099,298) (2,099,298) (2,213,645)
Post-employment benefits 17,704 17,704 41,708
Accumulated compensated absences!
early retirement incentive 1,615,030 1,615,030 2,004,788
TOTAL LIABILITIES 118,487,580 91,885 118,579,465 122,086,970
NET ASSETS:
Invested in capital assets, net of related debt (3,928,754) 157,353 (3,771,401 ) (2,751,526)
Unrestricted 14,257,959 360,827 14,618,786 10,061,762
TOTAL NET ASSETS 10,329,205 518,180 10,847,385 7,310,236
TOTAL LIABILITIES AND NET ASSETS $128,816,785 $ 610,065 $129,426,850 $129,397,206
The accompanying notes are an integral part of these financial statements.
-11 -
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
(With Summarized Comparative Data for the Year Ended June 30, 2009)
Program Revenues Net (Expense) Revenue and Changes in Net Assets

Operating Capital Business-
Charges for Grants and Grants and Governmental type Totals
Expenses Services Contributions Contributions Activities Activities 2010 2009
GOVERNMENTAL ACTIVITIES:
Instruction $ 41,649,703 $ 122,576 $ 5,656,652 $ - $ (35,870,475) $ - $ (35,870,475) $ (34,986,395)
Instructionall student support 6,987,293 - 372,449 - (6,614,844) - (6,614,844) (6,755,809)
Administratiye and financial support services 6,674,698 - 242,625 - (6,432,073) - (6,432,073) (6,048,396)
Operation alfld maintenance of plant services 6,898,251 140,671 233,672 - (6,523,908) - (6,523,908) (7,910,071 )
Pupil transpprtation 3,377,113 - 998,746 - (2,378,367) - (2,378,367) (2,210,990)
Student activities 1,136,322 31,139 43,373 - (1,061,810) - (1,061,810) (1,118,114)
Community services 92,031 40,205 - - (51,826) - (51,826) 61,442
Interest on long-term debt 4,798,852 - 71,480 - (4,727,372) - (4,727,372) (4,729,746)
TOTAL GOVERNMENTAL ACTIVITIES 71,614,263 334,591 7,618,997 - _(63,660,675) - (63,660,675) (63,698,079)
BUSINESS-TYPE ACTIVITIES:
Food service 1,501,347 1,341,345 213,146 - - 53,144 53,144 24,272
TOTAL BUSINESS-TYPE ACTIVITIES 1,501,347 1,341,345 213,146 - - 53,144 53,144 24,272
TOTAL PRIMARY GOVERNMENT $ 73,115,610 $ 1,675,936 $ 7,832,143 $ - (63,660,675) 53,144 _(63,607,531 ) (63,673,807)
GENERAL REVENUES
Property taxes levied for general purposes 62,197,322 - 62,197,322 59,068,886
Taxes levied for specific purposes 1,362,403 - 1,362,403 1,245,537
Grants and entitlements not restricted to
specific programs 3,061,762 - 3,061,762 3,243,157
Investment earnings 360,800 1,464 362,264 727,885
Gain on sale of capital assets 130 - 130 582
Miscellaneous 160,799 - 160,799 848,872
TOTAL GENERAL REVENUES 67,143,216 1,464 67,144,680 65,134,919
CHANGE IN NET ASSETS 3,482,541 54,608 3,537,149 1,461,112
NET ASSETS, BEGINNING OF YEAR 6,846,664 463,572 7,310,236 5,849,124
NET ASSETS, END OF YEAR $ 10,329,205 $ 518,180 $ 10,847,385 $ 7,310,236
The accomlpanying notes are an integral part of these financial statements.
- 12-
RADNOR SCHOOL SCHOOL DISTRICT
BALANCE SHEET-GOVERNMENTAL FUNDS
JUNE 30, 2010
(With Summarized Comparative Data for June 30, 2009)
Major Funds
Other
General Governmental Totals
Fund Funds 2010 2009
-
ASSETS
Cash and [cash equivalents $ 16,425,974 $ 3,818,150 $ 20,244,124 $ 20,204,251
Investments 4,245,000 - 4,245,000 1,080,051
Taxes receivable 957,095 - 957,095 991,461
Due from other funds 13,461 - 13,461 3,096,068
Due from other governments 459,354 - 459,354 449,230
Other receivables 904,493 - 904,493 759,546
TOTAL ASSETS $ 23.005.377 $ 3.818.150 $ 26.823.527 $ 26,580.607
LIABILITIES AND FUND BALANCES

LIABILITIES:
Accounts [payable $ 1,022,082 $ 815,040 $ 1,837,122 $ 2,537,739
Due to ott;ler governments 35,010 - 35,010 32,581
Due to otmer funds 374 374 2,519,797
Accrued ~alaries, payroll withholdings and benefits 6,177,294 - 6,177,294 5,542,104
Accumul~ted compensated absences/ -
early retirement incentive 493,590 - 493,590 536,092
Deferred revenues 1,015,082 - 1,015,082 1,017,380
Other current liabilities 46,671 - 46,671 683,077
TOTAL LIABILITIES 8,789,729 815,414 9,605,143 12,868,770
FUND BA.LANCES
Reserved! for capital projects 2,302,362 2,302,362 2,903,285
Unreserved - designated for ERIP 1,225,151 - 1,225,151 854,620
Unreserved - designated for PSERS 3,784,000 - 3,784,000
Unreserv¢d - designated for future capital projects 3,455,000 - 3,455,000
Unreserved - undesignated 5,751,497 700,374 6,451,871 9,953,932
TOTAL FUND BALANCES 14,215,648 3,002,736 17,218,384 13,711,837
-
TOTAL L1A.BILITIES AND FUND BALANCES $ 23,005,377 $ 3,818,150 $ 26,823,527 $ 26,580,607
The acco'illpanying notes are an integral part of these financial statements.
- 13 -
RECONCILIATION OF BALANCE SHEET· GOVERNMENTAL FUNDS TO STATEMENT OF NET ASSETS
JUNE 30,2010
TOTAL GOVERNMENTAL FUND BALANCES $ 17,218,384
Amounts reported for governmental activities in the statement of net assets

are different because:
Capital assets used in governmental activities are not financial resources

and therefore are not reported in the funds. These assets consist of:
Land 2,952,500
Land improvements 2,162,102
Buildings and improvements 90,437,446
Furniture and equipment 5,581,160
Some liabilities are not due and payable in the current period and therefore
are not reported in the funds. Those liabilities consist of:
Bonds payable (92,545,000)

Note payable (15,000,000)
Accumulated compensated absences/early retirement incentive (1,615,030)
Post-employment benefits (17,704)
Accrued interest payable (1,298,354)
Refunded debt and bond issuance costs resulted in deferred charges and
credits which will be amortized over the life of the new debt but do not 1,496,606
represent current rights.
Some of the District's revenues will be collected after year end but
are not available soon enough to pay for the current period's expenditures
and therefore are deferred in the funds. 957,095
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 10,329,205
These accompanying notes are an integral part of these financial statements.
- 14 -
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
(With Summarized Comparative Data for the Year Ended June 30,2009)
Major Funds
Other
General Governmental Totals
Fund Funds 2010 2009
REVENUES
Local sources $ 65,211,330 $ 49,811 $ 65,261,141 $ 62,472,255
State sources 8,273,799 - 8,273,799 8,409,773
Federal sources 1,580,983 - 1,580,983 1,126,006
TOTAL REVENUES 75,066,112 49,811 75,115,923 72,008,034
EXPENDITURES
Current:
Instruction 39,650,448 257,884 39,908,332 39,905,565
Support 'services 22,113,539 22,113,539 22,404,125
Operatiqn of noninstructional services 1,137,317 1,057,428 2,194,745 3,337,268
Capital ou~lays - 300,423 300,423 1,748,016
Debt service 7,107,584 - 7,107,584 7,227,242
TOTAL EXPENDITURES ~008,888 1,615,735 71,624,623 74,622,216
EXCESS (DEFICIENCY) OF REVENUES

OVER(~NDER)EXPENDITURES 5,057,224 (1,565,924) 3,491,300 (2,614,182)
OTHER FINANCING SOURCES (USES)
Sale of/compensation for capital assets 130 - 130 582
Refund of iprior year expenditures 15,117 - 15,117 251,164
Transfers in - 525,000 525,000 250,000
Transfers but (525,000) - (525,000) (250,000)
TOTAL OTHER FINANCING SOURCES (USES) (509,753) 525,000 15,247 251,746
NET CHANGE IN FUND BALANCES 4,547,471 (1,040,924) 3,506,547 (2,362,436)
FUND BALANCES, BEGINNING OF YEAR 9,668,177 4,043,660 13,711,837 16,074,273
FUND BALANCES, END OF YEAR $ 14,215,648 $ 3,002,736 $ 1 8,384 $ 13,711,837
The accorppanying notes are an integral part of these financial statements.
- 15-
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES
NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS $ 3,506,547
Capital outlays are reported in governmental funds as expenditures. However,

in the statement of activities, the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the amount by which
depreciation ($4,766,289) exceeded capital outlays ($2,054,155) in the period. (2,712,134)
Debt proceeds are reported as financing sources in the governmental funds and
thus contribute to the change in fund balance. In the statement of net assets,
however, issuing debt increases long-term liabilities and does not affect the
statement of activities. Similarly, repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net assets.
This is the amount by which debt payments ($2,465,000) exceeded debt
issuance ($0). 2,465,000
Governmental funds report bond issuance cost, discounts and deferred amounts
on refunding as expenditures and bond premiums as revenue. However, these
amounts are reported on the statement of net assets as deferred charges and
credits and are amortized over the life of the debt. This is the amount by which
net amortization exceeded current issuance costs, discounts and deferred
amounts on refunding net of bond premiums. (77,665)
In the statement of activities, certain operating expenses--compensated

absences (vacations and sick leave) and special termination benefits (early
retirement)--are measured by the amounts earned during the year. In the
governmental funds, however, expenditures for these items are measured by
the amount of financial resources used (essentially, the amounts actually paid).
This is the amount by which current period amounts paid exceeded current
period compensated absences earned. 413,762
Interest on long-term debt in the statement of activities differs from the amount (34,366)
reported in the governmental funds b.ecause interest is recognized as an
expenditure in the funds when it is due and, thus, requires the use of current
financial resources. In the statement of activities, however, interest expense
is recognized as the interest accrues, regardless of when it is due. (78,603)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 3,482,541
- 16-
BUDGETARY COMPARISON STATEMENT· GENERAL FUND
Final Budget
Budgeted Amounts Actual Positive
Original Final (GAAP Basis) (Negative)
REVENUES
Local sources $ 66,548,544 $ 66,612,239 $ 65,211,330 $(1,400,909)
State sources 6,748,188 6,748,188 8,273,799 1,525,611
Federal sources 616,742 623,542 1,580,983 957,441
TOTAL REVENUES 73,913,474 73,983,969 75,066,112 1,082,143
EXPENDITURES
Instruction:
Regular programs 29,698,358
Special programs 10,566,883
Vocational programs 78,490
Other instructional programs 1,076,881
Total Instruction 41,420,612
Support services:
Pupil personnel services 2,409,124
Instructional staff services 3,773,452
Administrative services 4,284,451
Pupil health 706,458
Business services 1,021,170
Operation and maintenance of plant services 6,656,139
Student transportation services 3,589,075
Data processing services 1,257,864
Other support services 68,343
Total Support Services 23,766,076
Operation of noninstructional services:
Student activities 1,141,476
Community services 2,100
Total Operation of Noninstructional Services 1,143,576
Debt service 7,421,510
TOTAL EXPENDITURES 73,751,774
EXCESS (DEFICIENCY) OF REVENUES OVER

(UNDER) EXPENDITURES 161,700
OTHER FINANCING SOURCES (USES)

Refund of prior year expenditures
Operating transfers out (525,000)
Sale of/compensation for capital assets
Budgetary reserve (251,700)
TOTAL OTHER FINANCING USES (776,700)
NET CHANGE IN FUND BALANCE (615,000)
FUND BALANCE, BEGINNING OF YEAR 9,668,177
FUND BALANCE, END OF YEAR $ 9,053,177
- 17-
STATEMENT OF NET ASSETS - PROPRIETARY FUND
JUNE 30,2010
(With Comparative Data for June 30, 2009)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 400,365 $ 762,424
Investments 160,853
Due from other governments 27,210 23,109
Other receivables 3,880 26,490
Inventories 34,344 34,103
Total Current Assets 465,799 1,006,979
PROPERTY AND EQUIPMENT:

Furniture and equipment 903,582 856,285
Accumulated depreciation (746,229) (699,550)
Net Property and Equipment 157,353 156,735
TOTAL ASSETS $ 623,152 $ 1,163,714

CURRENT LIABILITIES:
Accounts payable $ 41,825 $ 24,491
Due to other funds 13,087 617,872
Deferred revenues 50,060 57,779
Total Liabilities 104,972 700,142
NET ASSETS:
Invested in capital assets, net of related debt 157,353 156,735
Unrestricted 360,827 306,837
Total Net Assets 518,180 463,572
TOTAL LIABILITIES AND NET ASSETS $ 623,152 $ 1,163,714
- 18 -
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS -
PROPRIETARY FUND
(With Comparative Data for the Year Ended June 30, 2009)
Major Fund
Food Service Fund
OPERATING REVENUES
Food service revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries 407,972 417,555
Em ployee benefits 124,912 165,316
Purchased professional and technical services 53,931 45,500
Other operating expenses 22,583 17,838
Supplies 845,270 878,717
Depreciation 46,679 37,755
Total Operating Expenses 1,501,347 1,562,681
OPERATING LOSS (160,002) (168,409)
NONOPERATING REVENUES
Earnings on investments 1,464 4,380
State sources 30,043 30,977
Federal sources 183,103 161,704
Total Nonoperating Revenues 214,610 197,061
CHANGE IN NET ASSETS 54,608 28,652
NET ASSETS, BEGINNING OF YEAR 463,572 434,920
NET ASSETS, END OF YEAR $ 518,180 $ 463,572
- 19-
STATEMENT OF CASH FLOWS· PROPRIETARY FUND
(With Comparative Data for the Year Ended June 2009)
2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 1,356,236 $ 1,410,660
Payments to suppliers (844,524) (860,608)
Payments to employees (1,137,669) (112,405)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (625,957) 437,647
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

State sources 29,571 32,648
Federal sources 119,307 116,351
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 148,878 148,999
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (47,297) (46,115)
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (47,297) (46,115)
CASH FLOWS FROM INVESTING ACTIVITIES:

Earnings on investments 1,464 4,380
Sale of investments 160,853 (2,342)
NET CASH PROVIDED BY INVESTING ACTIVITIES 162,317 2,038
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (362,059) 542,569
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 762,424 219,855
CASH AND CASH EQUIVALENTS, END OF YEAR $ 400,365 $ 762,424
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED

(USED) BY OPERATING ACTIVITIES:
Operating loss $ (160,002) $ (168,409)
Adjustments to reconcile operating loss to net cash provided (used)
by operating activities:
Depreciation 46,679 37,755
Donated commodities 60,167 47,079
(Increase) Decrease in:
Accounts receivable 22,610 (21,844)
Inventories (241 ) (2,602)
Increase (Decrease) in:
Accounts payable 17,334 24,491
Due to other funds (604,785) 510,833
Deferred revenue (7,719) 10,344
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (625,957) $ 437,647
SUPPLEMENTAL DISCLOSURE:
Noncash noncapital financing activity:
USDA donated commodities $ 60,167 $ 47,079
- 20-
STATEMENT OF NET ASSETS .. FIDUCIARY FUND
JUNE 30,2010
Private-
Purpose
Trust Agency
ASSETS
Cash $ 141,314 $ 138,875

Investments 19,182
Accounts receivable 25
TOTAL ASSETS $ 160,496 $ 138,900

LIABILITIES
Accounts payable $ $ 138,900
NET ASSETS 160,496
TOTAL LIABILITIES AND NET ASSETS $ 160,496 $ 138,900
- 21 -
STATEMENT OF CHANGES IN NET ASSETS - FIDUCIARY FUND
Agency
ADDITIONS
Gifts and contributions 5
TOTAL ADDITIONS 5
DEDUCTIONS
Scholarships awarded 12,875
TOTAL DEDUCTIONS 12,875
CHANGE IN NET ASSETS (5,960)
NET ASSETS, BEGINNING OF YEAR 166,456
NET ASSETS, END OF YEAR $ 160,496
- 22-
NOTES TO FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Radnor Township School District (the IIDistrictll ) operates three elementary schools, one middle
school and one senior high school to provide education and related services to the residents of
Radnor Township. The District operates under current standards prescribed by the Pennsylvania
Department of Education in accordance with the provisions of the School laws of Pennsylvania as
a school district of the third class. The District operates under a locally elected nine-member
Board form of government.
The financial statements of the District have been prepared in accordance with generally
accepted accounting principles ("GAAP") as applied to governmental units. The Governmental
Accounting Standards Board ("GASBII) is the authoritative standard-setting body for the
establishment of governmental accounting and financial reporting principles.
Reporting Entity
GASB Statement No. 14, "The Financial Reporting Entity," as amended by GASB Statement No. 39,
established the criteria for determining the activities, organizations and functions of government
to be included in the financial statements of the reporting entity. In evaluating the District as a
reporting entity, management has addressed all potential component units which mayor may
not fall within the District's financial accountability. The criteria used to evaluate component units
for possible inclusion as part of the District's reporting entity are financial accountability and the
nature and significance of the relationship. The District is considered to be an independent
reporting entity and has no component units.
Basis of Presentation
Entity-wide Financial statements
The statement of net assets and the statement of activities display information about the District as
a whole. These statements distinguish between activities that are governmental and those that
are considered business-type. These statements include the financial activities of the primary
government, except for fiduciary funds.
The entity-wide financial statements are prepared using the economic resources measurement
focus and the accrual basis of accounting as further defined under proprietary funds below. This
is the same approach used in the preparation of the proprietary fund financial statements but
differs from the manner in which governmental fund financial statements are prepared.
Therefore, governmental fund financial statements include a reconciliation with brief explanations
to better identify the relationship between the entity-wide statements and the statements of
governmental funds.
The entity-wide statement of activities presents a comparison between expenses and program
revenues for each function of the business-type activities of the District and for each
governmental program. Expenses are those that are specifically associated with a service or
- 23 -
NOTES TO fiNANCIAL STATEMENTS
NOTE 1 SUMMARY Of SIGNifiCANT ACCOUNTING POLICIES (cont'd)
program and are, therefore, clearly identifiable to a particular function. Program revenues
include charges paid by the recipients of the goods or services offered by the programs, and
grants and contributions that are restricted to meeting the operational or capital requirements of
a particular function. Revenues which are not classified as program revenues are presented as
general revenues. The comparison of program revenues and expenses identifies the extent to
which each program is self-financing or draws from the general revenues of the District.
Except for interfund activity and balances between the funds that underlie governmental
activities and the funds that underlie business-type actiVities, which are reported as transfers and
internal balances, the effect of interfund activity has been removed from these statements.
The entity-wide financial statements report net assets in one of three components: invested in
capital assets, net of related debt, consists of capital assets, net of accumulated depreciation,
and reduced by the outstanding balances of borrowings attributable to acquiring, constructing
or improving those assets. Net assets are reported as restricted when constraints placed on net
asset use 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. Those restrictions affect net assets arising from the capital
projects fund. Unrestricted net assets consist of net assets that do not meet the definition of
lIinvested in capital assets, net of related debtll or II restricted. 1I
Fund Financial Statements
During the school year, the District segregates transactions related to certain District functions or
activities in separate funds in order to aid financial management and to demonstrate legal
compliance. fund financial statements report detailed information about the District. The focus
of governmental and enterprise fund financial statements is on major funds rather than reporting
funds by type. fiduciary fund financial statements are presented by fund type.
Governmental Funds
All governmental funds are accounted for using the modified accrual basis of accounting and
the current financial resources measurement focus. Under this basis, revenues are recognized in
the accounting period in which they become measurable and available. Expenditures are
recognized in the accounting period in which the fund liability is incurred, if measurable. The
District reports the following major governmental fund:
The General fund is the government's primary operating fund. It accounts for all financial
resources of the general government, including the athletic fund, except those required to be
accounted for in another fund.
Other governmental funds include the following:
The Capital Projects Fund is used to account for the acqUisition, construction and renovation of
major capital facilities and their related capital assets.
- 24 -
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)
The Capital Reserve fund, are used to account for funds set aside for future capital needs.
The Pool Fund is used to account for the activities associated with operating the pool.
Revenue Recognition
In applying the "susceptible to accrual concept" under the modified accrual basis, revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the District considers tax
revenue to be available if collected within 60 days of the end of the fiscal period. Revenue from
federal, state and other grants designated for payment of specific District expenditures is
recognized when the related expenditures are incurred; accordingly, when such funds are
received, they are reported as deferred revenues until earned.
Other revenues, including certain other charges for services and miscellaneous revenues, are
recorded as revenue when received in cash because they generally are not measurable until
actually received.
Expenditure Recognition
The measurement focus of governmental fund accounting is on decreases in net financial

resources (expenditures) rather than expenses. Most expenditures are measurable and are
recorded when the related fund liability is incurred. However, principal and interest on general
long-term debt which has not matured are recognized when paid. liabilities for compensated
absences and special termination benefits are recognized as fund liabilities to the extent they
mature each period. Allocations of costs, such as depreciation and amortization, are not
recognized in the governmental funds.
Proprietary Funds
Proprietary funds are accounted for using the accrual basis of accounting. These funds account
for operations that are financed primarily by user charges. The economic resource focus
concerns determining costs as a means of maintaining the capital investment and management
control. Revenues are recognized when they are earned and expenses are recognized when
they are incurred. Allocations of certain costs, such as depreciation, are recorded in proprietary
funds. The District does not attempt to allocate all bUilding-wide costs to the proprietary fund.
Thus, general fund expenditures which partially benefit the proprietary fund (utilities, janitorial
services, insurance, etc.) are not proportionately recognized with the proprietary fund. Similarly,
the proprietary fund does not recognize a cost for the building space it occupies.
These funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from prOViding services and producing and delivering
goods in connection with the proprietary fund's principal ongoing operations. The principal
operating revenues of the District's proprietary fund are food service charges. Operating
expenses for the District's proprietary fund include food production costs, supplies and
administrative costs. All revenues or expenses not meeting this definition are reported as
nonoperating revenues and expenses.
- 25 -
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989
are followed in both the entity-wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict the guidance of GASB. Governments also have
the option of following subsequent private-sector guidance for their business-type activities and
proprietary funds, subject to this same limitation. The District has elected not to follow subsequent
private-sector guidance.
Fiduciary Funds
Fiduciary funds account for the assets held by the District as a trustee or agent for individuals,
private organizations and/or governmental units and are, therefore, not available to support the
District's own programs. The District accounts for these assets in a private-purpose trust and
agency fund. The private-purpose trust fund accounts for activities in various scholarship
accounts, whose sole purpose is to provide annual scholarships to particular students as
described by donor stipulations. The agency fund accounts for funds held on behalf of students
of the District. It is custodial in nature (assets equal liabilities) and does not involve measurement
of results of operations.
Cash and Cash Equivalents
The District's cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at

the end of the fiscal year are referred to as either "due to/from other funds" (Le., the current
portion of interfund loans) or "advances to/from other funds" (Le., the noncurrent portion of
interfund loans). Any residual balances outstanding between the governmental activities and
business-type activities are reported in the entity-Wide financial statements as "internal balances."
The District does not record an allowance for uncollectible taxes because it is considered to be
immaterial.
Propertv Taxes
Taxes are levied on July 1 and are payable in the following periods:
July 1 - August 31 - Discount period, 2% of gross levy

September 1 - October 31 - Face Period
November 1 to collection - Penalty Period, 10% of gross levy
December 31 - Lien Date
An installment payment plan is available to residential property owners who have been approved
as homestead owners by the Delaware County Board of Assessments, with three equal
installments due as follows:
August 31 one third of the gross levy

October 31 one third of the gross levy
December 31 one third of the gross levy
- 26 -
NOTES TO fiNANCIAL STATEMENTS
NOTE 1 SUMMARY Of SIGNifiCANT ACCOUNTING POLICIES (cont'd)
In order to participate in the installment payment plan, homestead owners must forego the
opportunity to make payment at the two percent of gross levy discount rate.
The District's taxes are billed and collected by the District. The tax on real estate for public school
purposes for fiscal 2009-2010 was 20.27 mills ($20.2? for $1,000 of assessed valuation) for the
entire District.
Inventories
All inventories are valued at the lower of cost (first-in, first-out method) or market.
Capital Assets
Capital assets, which include property, plant and equipment, are reported in the applicable
governmental or business-type activities columns in the entity-wide and proprietary fund financial
statements. Capital assets are defined by the District as assets with an initial, individual cost of
more than $2,000, composite assets of more than $10,000 and critical control assets as defined
by District policy. Such assets are recorded at historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets' lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed,
inclusive of ancillary costs.
Property, plant and equipment of the District are depreciated using the straight-line method over
the following estimated useful lives:
Site Improvements 15-40 years

BUildings and improvements 15-40 years
furniture and fixtures 5-20 years
Vehicles and equipment 5-20 years
Compensated Absences
District policies permit employees to accumulate earned but unused vacation as stipulated in
each bargaining unit's contract. The liability for these compensated absences is recorded as
long-term debt in the entity-wide financial statements. The current portion of this debt is
estimated based on historical trends. In the fund financial statements, governmental funds report
the compensated absence liability payable from expendable available financial resources.
The long-term portion of compensated absences has been designated in the general fund fund
balance.
- 27 -
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont/d)
long-term Obligations
In the entity-wide financial statements and proprietary fund financial statements, long-term debt
and other long-term obligations are reported as liabilities. Bond premiums and discounts are
deferred and amortized over the life of the bonds. Bond issuance costs are reported as deferred
charges and amortized over the term of the related debt. Deferred amounts on refunding are
recorded as a decrease to debt payable and amortized over the life of the old debt or the life of
the new debt, whichever is shorter. All amounts are amortized using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received and discounts paid on debt
issuances are reported as other financing sources and uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures,
except for refundings paid from proceeds which are reported as other financing uses.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. When both restricted and unrestricted resources are available for use, it is
the District's policy to use restricted resources first and then unrestricted resources as they are
needed.
Comparative Data
Comparative totals for the prior year have been presented in the accompanying financial
statements in order to provide an understanding of changes in the District's financial position and
operations. Certain amounts presented in the prior year have been reclassified in order to be
consistent with the current year's presentation. However, presentation of prior year totals by fund
and activity type has not been presented in each of the statements since its inclusion would
make the statements unduly complex and difficult to read. Summarized comparative information
should be read in conjunction with the District's financial statements for the year ended June 30,
2009, from which the summarized information was derived.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted accounting

principles requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
- 28 -
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
BUdgetary Information
An annual bUdget is adopted prior to the beginning of each year for the general fund on the
modified accrual basis of accounting. The general fund is the only fund for which a bUdget is
legally required, although project-length financial plans are adopted for all capital projects
funds.
The District bUdgets and expends funds according to procedures mandated by the Pennsylvania
Department of Education. An annual operating bUdget is prepared by school district officials on
a uniform form furnished by such Department and submitted to the board of school directors for
approval prior to the beginning of the fiscal year on Julyl.
Under the Taxpayer Relief Act, the school district must adopt a preliminary bUdget proposal
(which must include estimated revenues and expenditures and proposed tax rates) no later than
90 days prior to the date of the election immediately preceding the fiscal year. The preliminary
bUdget proposal must be printed and made available for public inspection at least 20 days prior
to its adoption; the board of school directors may hold a public hearing on the budget; and the
board must give at least 10 days' public notice of its intent to adopt such bUdget.
If the adopted preliminary bUdget includes an increase in the rate of any tax levy, the preliminary
bUdget must be submitted to the Pennsylvania Department of Education f'PDE") no later than 85
days prior to the date of the election immediately preceding the fiscal year. PDE is to compare
the proposed percentage increase in the rate of any tax with the school district's Index and within
10 days, but no later than 75 days, prior to the upcoming election, inform the school district
whether the proposed percentage increase is less than or equal to the Index. If PDE determines
that a proposed tax increase will exceed the Index, the school district must reduce the proposed
tax increase, seek voter approval for the tax increase at the upcoming election or seek approval
to utilize one or more of the referendum exceptions authorized by the Taxpayer Relief Act.
With respect to the utilization of any of the Taxpayer Relief Act referendum exceptions for which
PDE approval is required, the school district must publish notice of its intent to seek PDE approval
not less than one week before SUbmitting its request for approval to PDE and, if PDE determines to
schedule a public hearing on the request, a notice of the date, time and place of such hearing.
PDE is required by the Taxpayer Relief Act to rule on the school district's request and inform the
school district of its decision no later than 55 days prior to the upcoming election so that, if PDE
denies the school district's request, the school district may submit a referendum question to the
local election officials at least 50 days before the upcoming election, if it so chooses.
To use any of the referendum exceptions for which court approval is required under the Taxpayer
Relief Act, the school district must petition the court of common pleas no later than 75 days prior
to the upcoming election, after giVing one week's public notice of the intent to file such petition.
The court may schedule a hearing on the petition, and the school district must prove by clear
and convincing evidence that it qualifies for the exception sought. The Taxpayer Relief Act
requires that the court rule on the petition and inform the school district of its decision no later
- 29 -
NOTE 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (cont'd)
than 55 days prior to the upcoming election. Such Act provides that the court, in approving the
petition, shall determine the dollar amount for which the exception is granted, the tax rate
increase required to fund the exception and the appropriate duration of the tax increase. If the
court denies the school district's petition, such Act permits the school district to submit a
referendum question to the local election officials at least 50 days before the upcoming election,
if it so chooses.
If the school district seeks voter approval to increase taxes at a rate higher than the applicable
Index, whether or not it first seeks approval to utilize one or more of the referendum exceptions
available under the Taxpayer Relief Act, and the referendum question is not approved by a
majority of the voters voting on the question, the board of school directors may not approve an
increase in the tax rate greater than the applicable Index.
The above bUdgetary procedures will not apply if the school district adopts a resolution no later
than 110 days prior to the election immediately preceding the upcoming fiscal year declaring
that it will not increase any tax rate that exceeds the Index and that a tax increase at or below
the rate of the Index will be sufficient to balance its bUdget. In that case, the Taxpayer Relief Act
requires only that the proposed annual bUdget be prepared at least 30 days, and made
available for public inspection at least 20 days, prior to its adoption, and that at least 10 days'
public notice be given of the board's intent to adopt the annual bUdget. No referendum
exceptions are available to a school district adopting such a resolution.
legal bUdgetary control is maintained at the sub-function/major object level. The Board may
make transfers of funds appropriated to any particular item of expenditure by legislative action in
accordance with the Pennsylvania School Code. Management may amend the budget at the
sUb-function/sub-object level without Board approval. Appropriations lapse at the end of the
fiscal period. BUdgetary information reflected in the financial statements is presented at or below
the level of budgetary control and includes the effect of approved bUdget amendments.
NOTE 3 DEPOSITS AND INVESTMENTS
Deposits
Custodial Credit Risk
Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may
not be returned. The District does not have a policy for custodial credit risk. At June 30, 2010, the
carrying amount of the District's deposits was $20,924,678 and the bank balance was
$21,701,934. Of the bank balance, $159,772 was covered by federal depository insurance, and
the District's remaining cash deposits totaling $21,542,162 are in the Pennsylvania School District
liquid Asset Fund (UPSDLAf'l). Although not registered with the Securities and Exchange
Commission and not subject to regulatory oversight, PSDLAf acts like money market mutual funds
in that its objective is to maintain a stable net asset value of $1 per share, it is rated by a
nationally recognized statistical rating organization and it is subject to an independent annual
audit.
- 30 -
NOTE 3 DEPOSITS AND INVESTMENTS (cont'd)
Investments
Statutes authorize the District to invest in U.S. Treasury bills, time or share accounts of institutions
insured by the Federal Deposit Insurance Corporation in certificates of deposit when they are
secured by proper bond or collateral, repurchase agreements, State Treasurer's investment pools
or mutual funds.
All of the District's investments are in the Pennsylvania School District liquid Asset Fund (UPSDLAF").
Although not registered with the Securities and Exchange Commission and not subject to
regulatory oversight, the PSDLAF acts like money market mutual funds in that its objective is to
maintain a stable net asset value of $1 per share, it is rated by a nationally recognized statistical
rating organization and it is subject to an independent annual audit. The carrying value of the
District's investments at June 30, 2010 was $4,264,182.
The District has an investment policy that limits its investment choices in local government
investment pools only to the extent it is rated in the highest rating category by a nationally
recognized rating agency. As of June 30, 2010, the PSDLAF was rated as AAA by a nationally
recognized statistical rating organization.
NOTE 4 DEFERRED REVENUES
Governmental funds report deferred revenue in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds
also defer revenue recognition with resources that have been received, but for which all eligibility
requirements have not been satisfied. At the end of the current fiscal year, deferred revenue
reported in the governmental funds resulted from delinquent property taxes receivable and
federal and private grants received for which eligibility requirements have not been satisfied.
Deferred revenue in the entity-Wide financial statements represents resources that have been
received but not yet earned.
NOTE 5 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2010 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
land $ 2,952,500 $ - $ $ 2,952,500
Construction-in-progress 893,721 893,721
Total Capital Assets Not Being Depreciated 3,846,221 893,721 2,952,500
Capital assets being depreciated:

Site improvements 4,878,284 312,445 5,190,729
Furniture and equipment 17,821,259 1,519,842 19,341,101
Total Capital Assets Being Depreciated 143,266,410 2,947,876 146,214,286
- 31 -
NOTE 5 CAPITAL ASSETS (cont'd)

Beginning Ending
Balance Increases Decreases Balance
less accumulated depreciation for:
Site improvements 2,767,718 260,909 3,028,627
Furniture and equipment 12,224,341 1,535,600 13,759,941
Total accumulated depreciation 43,267,289 4,766,289 48,033,578
Total Capital Assets Being Depreciated, Net 99,999,121 (1,818,413) 98,180,708
Governmental Activities Assets, Net $103,845,342 $(1,818,413) $ 893,721 $101,133,208
Business-type Activities:
Capital assets being depreciated:
Furniture and equipment $ 856,285 $ 47,297 $ $ 903,582
Less accumulated depreciation 699,550 46,679 746,229
Business-type Capital Assets, Net $ 156,735 $ 618 $ $ 157,353
Depreciation expense was charged to functions/programs of the District as follows:
Governmental activities:
Instruction $ 2,912,201
Instructional student support 487,115
Administrative and financial support services 450,415
Operation and maintenance of plant services 572,432
Pupil transportation 253,090
Student activities 91,036
Total Depreciation Expense - Governmental Activities $ 4,766,289
Business-type Activities - Food Service $ 46,679
NOTE 6 INTERNAL RECEIVABLES AND PAYABlES
The composition of interfund balances as of June 30, 2010 is as follows:
Receivable To Amount Payable From Amount
General Fund $ 13,087 Food Service Fund $ 13,087

General Fund $ 374 Pool Fund $ 374
Interfund balances between funds represent temporary loans recorded at year end subsequent
to a final allocation of expenses. The balances generally are paid shortly after year end.
- 32 -
NOTE 7 GENERAL lONG-TERM DEBT
The following summarizes the changes in the long-term liabilities of governmental activities for the
year ended June 30,2010:
Balance Balance
June 30,2009 Additions Reductions June 30, 2010
Note payable $ 15,000,000 $ $ $ 15,000,000

Bonds payable 95,010,000 2,465,000 92,545,000
Unamortized discount (305,946) (15,808) (290,138)
Unamortized premium 1,657,332 79,869 1,577,463
Deferred amount on
refunding (2,327,992) (114,347) (2,213,645)
Accumulated compen-
sated absences/early
retirement incentive 2,540,880 432,260 2,108,620
TOTALS $ 111,574,274 $ $ 2,846,974 $ 108,727,300
Payments of long-term debt are expected to be funded by the general fund.
General Obligation Bonds
Series of 2004, maturing October 1, 2025, bearing interest

ranging from 1.15% to 4.50%, interest payable semi-annually
on April 1 and October 1. $ 20,515,000
Series A of 2005, maturing through November 152028, bearing

interest ranging from 2.50% to 5.00%, interest payable semi-
annually on May 15 and November 15. 11,705,000
Series B of 2005, maturing through February 15, 2035, bearing

interest ranging from 3.000/0 to 5.00%, interest payable semi-
annually on February 15 and August 15. 33,880,000
Series C of 2005, maturing November 15, 2025, bearing

annually on May 15 and November 15. 10,700,000
Series 2006, maturing through February 15, 2035, bearing

Series A of 2007, maturing through February 15, 2035, bearing

- 33 -
NOTE 7 GENERAL lONG-TERM DEBT (cont1d)
General Obligation Note
Series of 2000, maturing 2018 through November 15, 2029,

bearing interest ranging from 3.60% to 4.05%, interest payable
semi-annually on May 15 and November 15. 15.000,000
TOTAL $107,545,000
Presented below is a summary of debt service and lease requirements to maturity by years:
Principal Interest Total

Year Ending June 30, Maturities Maturities Maturities
2011 $ 2,550,000 $ 4,777,359 $ 7,327,359

2012 2,625,000 4,690,335 7,315,335
2013 2,720,000 4,599,658 7,319,658
2014 2,820,000 4,493,387 7,313,387
2015 2,940,000 4,379,878 7,319,878
2016-2020 16,575,000 20,032,204 36,607,204
2021-2025 20,560,000 16,080,446 36,640,446
2026-2030 25,565,000 10,961,671 36,526,671
2031-2035 31,190,000 4,435,601 35,625,601
$ 107,545,000 $ 74,450,539 $ 181,995,539
The District has pledged its full faith, credit and taxing power as security for this indebtedness. As
of June 30, 2010, the District has $20,250,000 in defeased bonds.
NOTE 8 PENSION PLAN
Plan Description
The District contributes to the Public School Employees' Retirement System C'PSERS II ), a
governmental cost-sharing multiple-employer defined benefit pension plan administered by the
Commonwealth of Pennsylvania Public School Employees' Retirement System. The PSERS provides
retirement and disability, legislatively mandated ad hoc cost-of-living adjustments and certain
health care insurance premium assistance to plan members and beneficiaries. The Public School
Employees' Retirement Code (Act No. 96, of October 2, 1975, as amended) provides the authority
to establish and amend benefit provisions. The PSERS issues a comprehensive annual financial
report that includes financial statements and required supplementary information for the plan. A
copy of the report may be obtained by writing to Public School Employees' Retirement System, P.
O. Box 125, Harrisburg, PA 17108-0125.
- 34 -
NOTE 8 PENSION PLAN (cont'd)
Funding Policy
The contribution policy is established in the Public School Employees' Retirement Code and
requires contributions by active members, employers and the Commonwealth. Individual
employees contribute between 5.25 and 7.5 percent of salary depending on their membership
status. Contributions required of employers are based upon an actuarial valuation. For fiscal
year ended June 30, 2010, the rate of employer contribution was 4.78 percent of covered
payroll. The District's contributions to PSERS for the years ended June 30,2010,2009 and 2008
were $ 1,800,291, $ 1,983,598 and $2,413,486, respectively. The Commonwealth contributes to
PSERS by reimbursing the District 50 percent of its contribution each year.
NOTE 9 OPERATING LEASES
The District currently is obligated under operating lease agreements for office equipment and
modular classrooms. These leases are considered as operating leases for accounting purposes.
The following is a summary of the minimum rental costs for the remaining terms at June 30, 2010:
Year Ending June 30,
2011 $ 214,604
2012 214,604
2013 214,604
2014 214,604
2015 214,604
Total $ 1,073,020
Rental expense for the year ended June 30, 2010 was $214,702.
NOTE 10 JOINT VENTURES
The District participates in a joint venture with the other school districts of Delaware County,
Pennsylvania in the operation of a Vocational-Technical School Authority ("DCVTSA"). The DCVTSA
is governed by seven members. Each member must be a citizen of a school district where the
DCVTSA leases a project. The DCVTSA oversees acquiring, holding, constructing, improving and
maintaining the public area vocational-technical school bUildings. The financial statements of
the Vocational-Technical School Authority are available from the DCVTSA located at 200 Yale
Avenue, Morton, Pennsylvania 19070.
The District also participates in a joint venture with other school districts of Delaware County,
Pennsylvania to support the Delaware County Community College. The financial statements of
the Delaware County Community College Authority ("DCCCA") are available from the DCCCA
located at 901 South Media line Road, Media, Pennsylvania 19063.
- 35 -
NOTE 10 JOINT VENTURES (cont'd)
The District has entered into lease agreements with the DCCCA and the DCVTSA to provide rental
payments to retire the Authority's outstanding debt obligations. The lease agreements generally
provide that in the event the individual Authorities either retire all of their outstanding obligations
which were issued to finance school facilities' construction or acquisition, or accumulate sufficient
reserves to cover such obligations prior to the expiration of the applicable schedules, there will be
no subsequently scheduled rental payments made. Inasmuch as the annual rentals include
reserve funds which either are invested by Authorities or used for advance retirement of
obligations, it is anticipated that less than scheduled rentals will eventually be paid.
Future Authority rental payments are:
Year Ending June 30, DCCCA DCVTSA
2011 $ 256,624 $ 20,093

2012 238,615 20,032
2013 220,320 19,954
2014 228,602
2015 228,857
2016-2033 3,111 ,536
Total 4,284,554 60,079
less: Interest requirements (l ,409,775) (2,827)
Outstanding rental payments $ 2,874,779 $ 57,252
NOTE 11 POST-EMPLOYMENT HEAlTHCARE PLAN
Plan Description
Effective for the 2008-2009 fiscal year, the District implemented Governmental Accounting
Standards Board Statement No. 45, "Accounting and Financial Reporting by Employers for Post-
employment Benefits Other Than Pensions," for certain post-employment healthcare benefits and
life insurance benefits provided by the District. This Statement generally provides for prospective
implementation - I.e., that employers set the beginning net OPEB obligation at zero as of the
beginning of the initial year. Accordingly, for financial reporting purposes, no liability is reported
for the post-employment benefits liability at the date of transition.
The District's post-employment healthcare plan is a single-employer defined benefit healthcare

plan. The plan provides medical insurance benefits to eligible retirees and their spouses. The
Board of School Directors has the authority to establish and amend benefit provisions through the
collective bargaining process with members of the professional and support staff, an agreement
with administrative employees, and individual employment contracts with certain employees.
The plan does not issue any financial report and is not included in the report of any public
employee retirement system or any other entity.
- 36 -
NOTE 11 POST-EMPLOYMENT HEALTHCARE PLAN (cont'd)
Funding Policy
The contribution requirements of plan members are established and may be amended by the
Board of School Directors. The required contribution is based on projected pay-as-you-go
financing requirements, with any additional amount to prefund as determined annually by the
Board of School Directors. For fiscal year 2010, the District contributed $469,709 to the plan for
current premiums, or approximately 84 percent of total premiums. Plan members receiving
benefits contributed $88,694, or approximately 16 percent of total premiums, through their
required monthly contributions.
Annual OPEB Cost and Net OPEB Obligation
The District's annual other post-employment benefit cost (expense) is calculated based on the
annual required contribution of the employer C'ARCII), an amount actuarially determined in
accordance with the parameters of GASB Statement No. 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal costs each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 14
years. The following table shows the components of the District's OPEB cost for the year, the
amount actually contributed to the plan and changes in the District's net OPEB obligation to the
plan.
Annual required contribution $ 669,033

Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense) 669,033

Contributions made (693,037)
Decrease in net OPEB obligation (24,004)
Net OPEB obligation - beginning of year 41,708
Net OPEB obligation - end of year $ 17,704
Funded Status and Funding Progress
As of July 1,2008, the most recent actuarial valuation date, the plan was 0.00 percent funded.
The actuarial accrued liability for benefits was $4,606,259, and the actuarial value of assets was
$0, resulting in an unfunded actuarial accrued liability (IIUAALII) of $4,606,259. The covered
payroll (annual payroll of active employees covered by the plan) was $34,029,506, and the ratio
of the UAAL to the covered payroll was 13.54 percent.
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 healthcare cost trends. 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.
- 37 -
NOTE 11 POST-EMPLOYMENT HEAlTHCARE PLAN (cont'd)
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 liabilities and the actuarial value of assets, consistent with the long-term perspective of
the calculations.
In the July 1, 2008 actuarial valuation, the entry age normal, actuarial cost method was used.
The actuarial assumptions included a 4.50 percent investment rate of return and an annual
healthcare cost trend rate of 8.50 percent in 2008, reduced by decrements to an ultimate rate of
five percent in 2015 or later. The UAAl is being amortized based on the level dollar, 14-year open
period. The remaining amortization period at June 30, 2010 was 12 years.
NOTE 12 VOLUNTARY RETtREMENT INCENTIVE PLANS
During the 1998-1999, 2003-2004 and 2004-2005 fiscal years, the District offered an Early
Retirement Incentive Plan ("ERlpl ) to qualified professional employees. The District ERIPs provide
for post-retirement health care benefits to employees who retire into PSERS after 25 years of
service credit with PSERS and at least 10 years of professional service with the District. The ERIP
plans provide for continuing payment for medical and prescription insurance for the employee
and his/her eligible dependents up to the same dollar amount and on the same basis as the
school district provides those benefits to active employees under its contract with existing
bargaining units. With respect to future increase in premium costs, the school district will pay the
lesser of 1) the amount required under the contract with the bargaining unit, or 2) a maximum·
amount of 7.5 percent increase each year over the district's premium cost for previous year.
Benefits cease upon the employee's death or age 65.
Future ERIP payments have been reflected as a liability in the entity-Wide financial statements and
are summarized as follows:
Year Ending June 30,
2011 $ 469,709
2012 434,462
2013 363,149
2014 262,996
2015 82,640
Thereafter 81,904
Total 1,694,860
less current portion 469,709
$ 1,225,151
During the year ended June 30,2010, the cost of these benefits was $520,269.
- 38 -
NOTE 13 CONTINGENCIES AND COMMITMENTS
Government Grants and Awards
The District participates in both state and federally assisted grant programs. These programs are
subject to program compliance audits by the grantors or their representatives. The District is
potentially liable for any expenditures which may be disallowed pursuant to the terms of these
grant programs. Management is not aware of any material items of noncompliance which would
result in the disallowance of program expenditures.
litigation
Certain litigation claims are pending against the District. In the opinion of District management
and legal counsel, the potential losses, if any, on such claims are not yet determinable.
NOTE 14 RISK MANAGEMENT
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. Significant losses are
covered by commercial insurance for all major programs except for workers' compensation, for
which the District retains risk of loss. For insured programs, there were no significant reductions in
insurance coverage during the 2009-2010 year. Settlement amounts have not exceeded
insurance coverage for the current year or the three prior years.
NOTE 16 SUBSEQUENT EVENTS
On December 13, 2010, the District issued $1,500,000 of General Obligation Notes for the
purpose of financing renovations to the Wayne Elementary School Project.
The District has evaluated all subsequent events through February 22, 2011, the date the financial
statements were available to be issued.
- 39 -
SINGLE AUDIT
Barbacane, Thornton & Company LLP
200 Springer Building
3411 Silverside Road
REPORT ON INTERNAL CONTROL Wilmington, Delaware 19810
OVER FINANCIAL REPORTING AND ON
T 302.478.8940
COMPLIANCE AND OTHER MATTERS BASED F 302.468.4001
ON AN AUDIT OF FINANCIAL STATEMENTS www.btcpa.com
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
February 22, 2011

Wayne, Pennsylvania
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of Radnor Township School District, Wayne,
Pennsylvania as of and for the year ended June 30,2010, which collectively comprise Radnor Township
School District's basic financial statements, and have issued our report thereon dated February 22, 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 Radnor Township School District's internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our
opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of Radnor Township School District's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the District's internal control over financial reporting.
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 significant deficiencies or material weaknesses and, therefore, there can
be no assurance that all deficiencies, significant deficiencies or material weaknesses have been
identified. However, as discussed below, we identified certain deficiencies in internal control over
financial reporting that we consider to be material weaknesses and other deficiencies that we consider to
be significant deficiencies.
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 a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. We consider the deficiencies described in the accompanying schedule of findings and
recommendations as #08-1, #08-4 and #08-5 to be material weaknesses.
- 40-
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less

severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiency described in the accompanying schedule of findings and
recommendations as item #10-1 to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Radnor Township 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 or other matters that are
required to be reported under Government Auditing standards.
We noted certain matters that we reported to management of Radnor Township School District in a
separate letter dated February 22,2011.
Radnor Township School District1s response to the findings identified by our audit is described in the
accompanying schedule of findings and recommendations. We did not audit Radnor Township School
District1s response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of the Board of School Directors, management
and federal awarding agencies and pass-through entities; and is not intended to be and should not be
used by anyone other than these specified parties.
;J~~1{'7 LLP
BARBACANE, THORN;ON & COMPANY LLP ?
- 41 -
Barbacane, Thornton & COlmp,my LLP
200 Springer Building
REPORT ON COMPLIANCE 3411 Silverside Road
WITH REQUIREMENTS APPLICABLE TO EACH Wilmington, Delaware 19810
MAJOR PROGRAM AND ON INTERNAL CONTROL T 302.478.8940

OVER COMPLIANCE IN ACCORDANCE F 302,468.4001
www.btcpa.com
WITH OMB CIRCULAR A-133
February 22, 2011

Wayne, Pennsylvania
Compliance
We have audited the compliance of Radnor Township School District, Wayne, Pennsylvania, with the types
of compliance requirements described in the U.S. Office of Management and BUdget (OMB) Circular A-133
Compliance Supplement that are applicable to its major federal program for the year ended June 30,
2010. Radnor Township School District's major federal program is identified in the summary of auditors'
results section of the accompanying schedule of findings and recommendations. Compliance with the
requirements of laws, regulations, contracts and grants applicable to its major federal program is the
responsibility of Radnor Township School District's management. Our responsibility is to express an opinion
on Radnor Township 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, '~udits of
States, local Governments and Nonprofit Organizations." Those standards and OMB Circular A-133 require
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 Radnor
Township 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 Radnor Township School District's
compliance with those requirements.
In our opinion, Radnor Township School District complied, in all material respects, with the requirements
referred to above that are applicable to its major federal program for the year ended June 30, 2010.
Internal Control Over Compliance
The management of Radnor Township School District, Wayne, Pennsylvania, 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 Radnor Township School District's internal control over compliance with requirements that
- 42 -
To the Board of School Directors
could have a direct and material effect on a major federal program in order to determine our 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 Radnor Township School District·s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on 'a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a
timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
This report is intended solely for the information and use of the Board of School Directors, management
and federal awarding agencies and pass-through entities; and is not intended to be and should not be
used by anyone other than these specified parties.
;$~~/a-r LLP
BARBACANE, THORN;ON & COMPANY llP ?
- 43 -
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
PART A .. SUMMARY OF AUDITORS' RESULTS
Financial statements
Type of auditors· report issued [unqualified, qualified, adverse or disclaimerl:
Internal control over financial reporting:

.. Material weakness(es) identified? Yes No
.. Significant deficiency(ies) identified? _l_Yes _ _ None reported
.. Noncompliance material to financial
statements noted? Yes No
Federal Awards
Internal control over major programs:

.. Material weakness(es) identified? Yes _X_No
.. Significant deficiency(ies) identified? Yes _X_ None reported
Type of auditors' report issued on compliance for major programs [unqualified, qualified, adverse or
disclaimer}:
Unqualified
Any audit findings disclosed that are

required to be reported in accordance
with Section 510(a) of OMB Circular A-133? Yes No
Identification of major programs:
CFDA Number(sl Name of Federal Program or Cluster
84.027 and 84.391 IDEA and IDEA - ARRA
Dollar threshold used to distinguish between

Type A and Type B programs: $ 300.000
Auditee qualified as low-risk auditee? Yes _X_No
44 -
SCHEDULE OF FINDINGS AND RECOMMENDATIONS (CONrD)
PART B - FINDINGS RELATED TO FINANCIAL STATEMENTS
STATUS OF PRIOR YEAR FINDINGS
JOURNAL ENTRIES
08-1 Finding
According to the SAS No. 112 requirement, IICommunicating Internal Control-Related Matters Identified in
an AUdit," a control deficiency exists when the auditor identifies a material misstatement in the financial
statements that was not initially identified by the Organization's internal control. During our prior year audit,
we noted that the journal entries that we proposed and management posted are material in the
aggregate and represent a material misstatement in the financial statements for the period under audit
that were not identified by the entity's internal control. This condition was the result of the absence of
written procedures from prior years combined with turnover in key management positions.
Recommendation
We recommended that the District properly record all of its transactions during the fiscal year in
accordance with generally accepted accounting principles.
During our current year audit, although we noted significant improvement in recording entries'in the
General Fund, several material entries were necessary in the Food Service Fund. This finding is still
applicable for the current year as it relates to the Food Service Fund.
Management's Response
Management concurs with the finding as presented and continues to provide the training and experience
necessary for staff to be able to complete all necessary adjustments for year-end financial reporting.
JOURNAL ENTRY PROCEDURE
08-2 Finding
Throughout the year, adjusting journal entries are necessary to record activity of both a recurring and
nonrecurring nature. We noted, in our review of the journal entries prepared and posted, that there are no
written procedures documenting when journal entries are to be completed, the process for supporting
documentation and the approval prior to entry into the system. lack of sufficient controls surrounding the
journal entry process provide an opportunity for errors to occur and not be detected in a timely manner,
resulting in financial information that is inaccurate. This is a result of management oversight.
- 45 -
SCHEDULE OF FINDINGS AND RECOMMENDATIONS (CONT'D)
STATUS Of PRIOR YEAR fiNDINGS
Recommendation
We recommended that procedures be developed which identify when adjusting journal entries are to be
prepared, the person or persons responsible, the backUp documentation required, the filing system to be
utilized and the approval process. This will enhance the reliability of financial information as well as the
overall effectiveness of the financial statements.
During our current year aUdit, we noted that a formal process of review and approval of journal entries has
been established. This finding is no longer applicable.
CAPITAL ASSET TRACKING
08-4 finding
The District does not maintain an adequate system of tracking capital assets. The following were noted
during our aUditing procedures during the prior year audit:
• The District does not maintain a detailed listing of capital assets. As a result, we were unable to
determine that assets are recorded at the correct amounts.
• There are no policies and procedures in place to ensure that acquisition and disposition of capital
assets are tracked and recorded.
• The District utilizes an Excel spreadsheet to track major capital projects. The project costs are not
reconciled to the general ledger in a timely manner and are not being placed in service in a
consistent manner.
• No detailed calculation of depreciation expense and accumulated depreciation by asset exists,

which prevents assets from being adequately tracked from initial cost when placed in service
through total depreciated value.
Correction of the deficiencies noted above is important to assure that capital assets are accurately
reported in the District's financial statements and to help mitigate the risk of misappropriation. This
condition was the result of the absence of written procedures from prior years which made understanding
the District more cumbersome.
Recommendation
We recommended that the District evaluate each of the above-noted deficiencies in regard to capital
assets and determine what action can be taken to strengthen its reporting in the future. We further
recommended that the District provide training to the individual(s) responsible for the capital asset record-
keeping.
- 46 -
SCHEDULE OF FINDINGS AND RECOMMENDATIONS (CONTID)
During our current year audit, we noted that the District is still in the process of implementing the capital
asset tracking module. This finding is still applicable for the current year.
The implementation of the capital asset automated system was a two-year process that was completed in
April 2010. Once in place, management worked with an appraisal company to ensure that a complete
and accurate accounting of capital assets was in the system. The District is currently working on getting
prior assets correctly into the system and verifying that the depreciation is being calculated correctly. The
plan is to have the capital asset automated system fUlly functional by June 30,2011.
SCHOLARSHIP ACCOUNTS
08-5 Finding
During our procedures designed to determine that all cash and investments of the District are properly
recorded, we determined that the District was apparently the recipient in years past of funds to be held for
the benefit of future scholarship opportunities for students. Two investment accounts were confirmed as
being in the name of the District, for which approximately six percent of the total value has been placed
on the books. The remaining investment balances are not being reported by the District, and it is unclear
whether they should be reported and in what manner. Because there is a lack of readily available
documentation, current management was unaware of the accounts, and the nature of them.
Recommendation
We recommended that the District investigate the origin of the funds, determine their level of responsibility,
the legality of the investments, and the proper accounting and financial statement presentation. We
further recommended that clear written procedures be in place to ensure the continued proper
accounting of the balances.
During our current year aUdit, we noted that the District has not yet established clearly written procedures
to ensure the proper accounting of scholarship account balances. This finding is still applicable for the
current year.
The District is working with the financial institution and the District's attorney to determine the proper
disposition and accounting for these funds.
- 47 -
SCHEDULE OF FINDINGS AND RECOMMENDATIONS (CONT'D)
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
FOOD SERVICE BANK RECONCILIATION PROCESS
10-1 Finding
During our current year aUdit, we noted that the food service does not reconcile the cash being entered
into the system as received in the individual drawers to the daily bank deposit. We further noted that the
bank reconciliation was not being completed in a timely manner, which made it difficult to resolve
discrepancies between the cash drawers with the bank deposit slip.
Recommendation
We recommend that the District create a process that requires the cashiers to verify that their bank deposit
agrees with the amount being entered into the system before it is released on a daily basis as well as
preparing the bank reconciliation on a timely basis.
The District concurs with the recommendation and is taking the necessary steps to enhance the controls
surrounding the food service bank reconciliation procedures.
PART C - FINDINGS RELATED TO FEDERAL AWARDS
None.
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None.
- 48 -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND CERTAIN STATE GRANTS
Pass- Accrued or Accrued or

Federal through Total (Deferred) (Deferred)
Federal Grantor/Pass-through Grantor Source CFDA Grantor's Grant Period Grant Received Revenue Revenue Revenue
Project title ~ Number Number Beginning/Ending Amount for Year 07/01/2009 Recognized Expenditures 06/30/2010
U.S. Department of Education
Passed through Pennsylvania Department of Education
Title I - Low Income I 84.010 013-10-0354 08/05/09 - 09/30/10 $ 165,358 $ 106,193 $ - $ 152,543 $ 152,543 $ 46,350
Title I - Low Income I 84.010 013-09-0354 10/15/08 - 09/30/10 164,246 67,718 53,757 13,961 13,961
Academic Achievement I 84.010 077-10-0354 07/01/09 - 09/30/10 1,800 360 - 1,800 1,800 1,440
Academic Achievement I 84.010 077-09-0354 10/15/08 - 09/30/09 1,000 500 500
Safe and Drug~Free Schools and Communities I 84.186 100-10-0354 12101/09 - 09/30/10 6,950 3,475 6,950 6,950 3,475
Safe and Drug";Free Schools and Communities I 84.186 100-09-0354 11/19/08 - 09/30/09 7,225 4,598 3,864 734 734
Title II A - Improving Teacher Quality I 84.367 020-10-0354 08/05/09 - 09/30/10 107,458 92,107 - 107,458 107,458 15,351
Title II A - Improving Teacher Quality I 84.367 020-09-0354 10/15/08 - 09/30/09 103,980 8,665 8,665
Title III English !Language I 84.365 01 0-1 0-0354 11/09/09 - 09/30/10 46,630 21,195 7,192 7,192 (14,003)
Title III English !Language I 84.365 010-09-0354 11/11/08 - 09/30/09 21,291 7,852 (7,122) 14,973 14,973 (1 )
Title III English Language I 84.365 010-08-0354 12121/07 - 09/30/08 22,798 5,139 5,139 -
Education State Grants - ARRA I 84.394 126-1 0-0354 02117/09 - 09/30/11 216,331 126,193 216,331 216,331 90,138
Subtotal ~995 64,803 521,942 521,942 142,750
Passed throug~ Delaware County Intermediate Unit

IDEA-ARRA I 84.391 062-10-0025 07/01/09 - 09/30/10 639,625 227,512 227,512 227,512
IDEA I 84.027 062-1 0-0025 07/01/09 - 09/30/10 493,414 239,243 493,414 493,414 254,171
IDEA I 84.027 062-09-0025 07/01/08 - 09/30/09 492,589 259,416 259,416
Subtotal ~171 259,416 720,926 720,926 254,171
Passed through Capital Area Intermediate Unit

Classrooms for the Future I 84.365 N1A 11/09/09 - 09/30/10 30,000 25,000 (15,000) 10,156 10,156 (29,844)
Subtotal 25,000 (15,000) 10,156 10.156 (29,844)
TOTAL U.S. DEPARTMENT OF EDUCATION ~166 309,219 1,253,024 1,253,024 367,077
Corporation for' National and Community Service

Passed througrn Pennsylvania Department of Education
Leam and SerVe America I 94.004 019-09-2010 10/13/09 - 09/30/10 5,000 5,000 ___
5,000 5,000
TOTAL CORPORATION FOR NATIONAL AND COMMUNITY SERVICE ___

5,000 - 5,000 5,000
U.S. Department of Agriculture

Passed througrn Pennsylvania Department of Education
Value of USDA Donated Commodities I 10.550 N/A 07/01/09 - 06/30/10 N/A 74,766 14,599 60,167 60,167
National School Lunch Program I 10.555 N/A 07/01/09 - 06/30/10 N1A 107,858 16,436 111,792 111,792 20,370
*State Matching Share S N1A N1A 07/01/09 - 06/30/10 N/A 27,706 4,576 28,216 28,216 5,086
School Breakfast Program I 10.553 N1A 07/01/09 - 06/30/10 NIA 11,449 1,806 11,144 11,144 1,501
*State Matching Share S N1A N/A 07/01/09 - 06/30/10 N1A 1,865 291 1,827 ___ 1,827 253
TOTAL U.S. DEPARTMENT OF AGRICULTURE 223,644 37,708 213,146 ~146 27,210
TOTAL FEDERAL AWARDS AND CERTAIN STATE GRANTS $ 1,423,810 $ 346,927 $ 1,471,170 $ 1,471,170 $ 394,287
Source Codes:
I - Indirect Funding
S - State Share
- 49-
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND CERTAIN STATE GRANTS
NOTE A SCOPE OF THIS SCHEDULE
The Schedule of Expenditures of Federal Awards and Certain State Grants reflects federal
expenditures for all individual grants which were active during the fiscal year. Additionally, the
Schedule reflects expenditures for certain state grants.
NOTE B BASIS OF ACCOUNTING
The District uses the modified accrual method of recording transactions except as noted for the
accounting of donated commodities in Note C. Revenues are recorded when measurable and
available. Expenditures are recorded when incurred.
NOTEC NONMONETARY FEDERAL AWARDS - DONATED FOOD
The Commonwealth of Pennsylvania distributes federal surplus food to institutions (schools,

hospitals and prisons) and to the needy. Expenditures reported in the Schedule of Expenditures
of Federal Awards and Certain State Grants under CFDA #10.550 Value of USDA Commodities
represent surplus food consumed by the District during the 2009-2010 fiscal year.
NOTE D ACCESS PROGRAM
The ACCESS Program is a medical assistance program that reimburses local educational
agencies for direct eligible health-related services provided to enrolled special needs students.
Reimbursements are federal source revenues but are classified as fee-for-service and are not
considered federal financial assistance. The amount of ACCESS funding recognized for the
year ended June 30, 2010 was $322,959.
- 50 -

Audit Report Final 09-10

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Audit Report Final 09-10

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RADNOR TOWNSHIP SCHOOL DISTRICT

JUNE 30, 2010

INDEPENDENT AUDITORS· REPORT 1-2

MANAGEMENT'S DISCUSSION AND ANALYSIS 3 - 10

BASIC FINANCIAL STATEMENTS

Entity-wide Financial Statements:

- Statement of Net Assets 11

Fund Financial Statements:

- Balance Sheet - Governmental Funds 13

- Reconciliation of Balance Sheet - Governmental Funds

- Statement of Revenues, Expenditures and Changes in

- Reconciliation of Statement of Revenues, Expenditures

- BUdgetary Comparison Statement - General Fund 17

- Statement of Net Assets - Proprietary Fund 18

- Statement of Revenues, Expenses and Changes in Fund

- Statement of Cash Flows - Proprietary Fund 20

- Statement of Net Assets - Fiduciary Fund 21

- Statement of Changes in Net Assets - Fiduciary Fund 22

NOTES TO FINANCIAL STATEMENTS 23 - 39

Report on Internal Control Over Financial Reporting and

Report on Compliance with Requirements Applicable

Schedule of Findings and Recommendations 44 - 48

Schedule of Expenditures of Federal Awards and Certain State Grants 49

Notes to Schedule of Expenditures of Federal Awards and Certain

Board of School Directors

MANAGEMENT'S DISCUSSION AND (MD&A) UNAUDITED

For the Year Ended June 3D, 2010

Reporting the DistrIct as a Whole

The Statement of Net Assets and statement of Activities

Entity-wide Financial Analysis

A comparative analysis of fiscal year 2010 to 2009 follows:

Governmental Activities Business-type Activities Totals

TOTAL LIABILITIES AND

Total and Net Cost of Services

TOTALS $ 71,614,263 $ (63,660,675) $ 71,081,296 $ (63,698,079)

Changes in Net Assets

CHANGE IN NET ASSETS $ 3,482,541 $ 1,432,460 $ 54,608 $ 28,652 $ 3,537,149 $ 1,461,112

Reporting the District's Most Significant Funds

Fund Financial statements

Fund Balance Fund Balance Increase

General Fund $ 14,215,648 $ 9,668,177 $ 4,547,471

Total $ 17,218,384 $ 13,711,837 $ 3,506,547

2010 2009 Dollar Percent

Property taxes $ 62,197,322 $ 59,068,886 $ 3,128,436 5.30%

Total $ 75,066,112 $ 72,008,034 $ 3,058,078 4.25%

Debt serv/Fund Tran,

Books and supplies,

2010 2009 Dollar Percentage

Salaries and wages $ 37,924,857 $ 37,268,435 $ 656,422 1.76%

General Fund BUdget Information

Regular programs 1100 $ 29,895,384 $ 28,265,033 $ 1,630,351 -5.45%

Factors Expected to have an Effect on Future Operations

Anticipated large increases in employer contributions to the Pennsylvania School Employee

Contacting the District Financial Management

TOTAL ASSETS $128,816,785 $ 610,065 $ 129,426,850 $129,397,206

LIABILITIES AND NET ASSETS

TOTAL LIABILITIES AND NET ASSETS $128,816,785 $ 610,065 $129,426,850 $129,397,206

The accompanying notes are an integral part of these financial statements.

Program Revenues Net (Expense) Revenue and Changes in Net Assets

CHANGE IN NET ASSETS 3,482,541 54,608 3,537,149 1,461,112

NET ASSETS, BEGINNING OF YEAR 6,846,664 463,572 7,310,236 5,849,124

NET ASSETS, END OF YEAR $ 10,329,205 $ 518,180 $ 10,847,385 $ 7,310,236

The accomlpanying notes are an integral part of these financial statements.