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Document Accessibility Document Accessibility If you have a disability and the format of any material on our web pages interferes with your ability to access the information or you have a question regarding the School District’s website accessibility, please contact us via any of the following means for assistance: The School District of Philadelphia Office of Family and Community Engagement 440 N. Broad Street, Suite 114 Philadelphia, PA 19130-4015 Email: [email protected] Tel: (215) 400-4000 Fax: (215) 400-4181 To help us respond in a manner most helpful to you, please indicate the nature of the accessibility problem, the web address of the requested material, your preferred format in which you want to receive the material (electronic format (ASCII, etc.), standard print, large print, etc.), and your contact information (name, email, telephone, and physical mailing address). The Comprehensive Annual Financial Report of The School District of Philadelphia A Component Unit of The City of Philadelphia, Pennsylvania Year Ended June 30, 2005 SCHOOL DISTRICT OF PHILADELPHIA, PENNSYLVANIA 440 N. BROAD STREET, PHILADELPHIA, PENNSYLVANIA 19130 COMPREHENSIVE ANNUAL FINANCIAL REPORT A COMPONENT UNIT OF THE CITY OF PHILADELPHIA, PENNSYLVANIA YEAR ENDED JUNE 30, 2005 Marcy F. Blender, CPA Comptroller Prepared by Office of General Accounting Richard T. Henderson Director STUDENT ART The art displayed in this report is the work of Philadelphia school students and was selected from entries submitted to the 2005 Cover Design Contest entitled, “THE LIFE AND TIMES OF BENJAMIN FRANKLIN”. As one of Philadelphia’s most famous citizens, Franklin (1706-1790), whose 300th birthday we celebrate in the coming year, was truly a “Renaissance Man”, whose accomplished life not only made a profound impact on Philadelphia but our entire country. He was a scientist, an inventor, a printer, a philosopher, a musician, a politician, an ambassador, a shopkeeper, a cartoonist, an economist and much more. As one of our “Founding Fathers”, Franklin was an anti-slavery proponent, a signer of the Declaration of Independence and a delegate to the Constitutional Convention. From the societies and public institutions he founded, to the institutions and neighborhoods that bear his name, to the businesses that today use his likeness, Philadelphia is very much Franklin’s city. The winners are as follows: STUDENT ART TEACHER 1st Prize Crystal Sanchez Ms. Debra Cooperstein Front Cover Central High School, Grade 11 2nd Prize Wilmer Sanchez Ms. Nina Gordon Back Cover Frankford High School, Grade 11 3rd Prize Divider: 1st Terrelle Jordan Ms. Susan Odessey Northeast High School, Grade 11 Krysha Patriz Mallari Mr. Paul Lettieri Furness High School, Grade 12 2nd Laura Lyons Mr. John Sebastian Creative and Performing Arts High School, Grade 11 Alexandra Malikova Mrs. Susan Cohen Smith Northeast High School, Grade 12 3rd Tim Kauffman Ms. Debra Cooperstein Central High School, Grade 11 Alex Marakowski Ms. Hattie Stroman Creative and Performing Arts High School, Grade 10 Ms. Tessie Varthas, Lead Academic Coach - Art Education INTRODUCTORY SECTION SCHOOL DISTRICT OF PHILADELPHIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2005 TABLE OF CONTENTS I. INTRODUCTORY SECTION Page Letter of Transmittal 1-7 Certificate of Achievement for Excellence in Financial Reporting, Government Finance Officers Association 8 Certificate of Excellence in Financial Reporting, Association of School Business Officials 9 Organizational Chart 10 List of Principal Officials 11 II. FINANCIAL SECTION Independent Auditor’s Report 13-14 A. Management’s Discussion and Analysis 15-32 B. Basic Financial Statements 33 District Wide Financial Statements Statement of Net Assets 34 Statement of Activities 35 Governmental Fund Financial Statements Balance Sheet 36-37 Reconciliation of the Balance Sheet for Governmental Funds to the Statement of Net Assets 38 Statement of Revenues, Expenditures, and Changes in Fund Balances 40-41 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 42 Proprietary Fund Financial Statements Statement of Net Assets 43 Statement of Revenues, Expenses, and Changes in Fund Net Assets 44 Statement of Cash Flows 45 - I - SCHOOL DISTRICT OF PHILADELPHIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2005 TABLE OF CONTENTS II. FINANCIAL SECTION, CONT. ---Page Fiduciary Funds Financial Statements Statement of Fiduciary Net Assets 46 Statement of Changes in Fiduciary Net Assets 47 Notes to the Financial Statements 49-83 C. Required Supplementary Information other than Management Discussion & Analysis 85 Budgetary Comparison Schedules General and Intermediate Unit Funds 86-87 Notes to Required Supplementary Information 88-90 D. Other Supplementary Information 91 Non-Major Governmental Funds 92 Combining Balance Sheet – Non-Major Governmental Funds 93 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-Major Governmental Funds 94 Governmental Funds 95 Schedule of Detailed Budgetary and Actual Revenues – General Fund 96 Schedule of Budgetary and Actual Organizational Unit Obligations By Object Class and Uses – General Fund 97- 102 Schedule of Budgetary and Actual Revenues and Organizational Unit Obligations By Object Class and Uses – Intermediate Unit Fund 103-104 Schedule of Budgetary and Actual Revenues and Organizational Unit Obligations By Object Class and Uses – Debt Service Fund 105 Schedule of Budgetary and Actual Revenues and Organizational Unit Obligations By Object Class and Uses – Capital Projects Fund 106 Fiduciary Funds 107 Combining Schedule of Fiduciary Net Assets - Agency Funds 108 Combining Statement of Changes in Assets and Liabilities - Agency Funds 109 Schedule of Bonds Outstanding 110-112 Capital Assets Used in the Operations of Governmental Funds 113 Comparative Schedule by Source 114 Schedule by Function and Activity 115 Schedule of Changes by Function and Activity 116 - II - SCHOOL DISTRICT OF PHILADELPHIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2005 TABLE OF CONTENTS Page III. STATISTICAL SECTION Statistical Section 117 General Governmental Expenditures / Uses by Function – Fiscal Years 1996 through 2005 118 General Governmental Expenditures / Uses by Fund – Fiscal Years 1996 through 2005 Graphical Presentations 119 General Governmental Revenues / Sources – Fiscal Years 1996 through 2005 120 General Governmental Revenues by Source – Fiscal Years 1996 through 2005 Graphical Presentations 121 Real Estate Tax Levies and Collections – Fiscal Years 1996 through 2005 122 Assessed and Estimated Market Value of Taxable Realty in Philadelphia for the Calendar Years 1996 through 2005 123 Property Tax Rates – All Direct and Overlapping Governments – Calendar Years 1996 through 2005 124 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita for Fiscal Years 1996 through 2005 125 Borrowing Base and Debt Limits 126 Direct and Overlapping Long-Term Tax Supported Obligations 127 Ratio of Annual Debt Service for General Bonded Debt and Authority Payments to Total General Expenditures Excluding Categorical Funds – Fiscal Years 1996 through 2005 128 Demographic Statistics for the Calendar Years 1995 through 2004 129 Bank Deposits, Real Property Values and Authorized Construction in the City of Philadelphia for the Calendar Years 1995 though 2004 130 Ten Largest Real Estate Assessments – Fully Taxable Properties as of January 1, 2005 131 Major Employers in the City of Philadelphia as of June 30, 2005 132 Miscellaneous Statistics for Fiscal Years 2001 through 2005 133 - III - THIS PAGE INTENTIONALLY LEFT BLANK -IV- THE SCHOOL DISTRICT OF PHILADELPHIA 440 NORTH BROAD STREET PHILADELPHIA,, PENNSYLVANIA 19130 PAUL G. VALLAS TELEPHONE (215) 400-4100 CHIEF EXECUTIVE OFFICER FAX (215) 400-4104 December 31, 2005 To the Members of the School Reform Commission, Honorable Mayor and Citizens of the City of Philadelphia: We are pleased to present this Comprehensive Annual Financial Report of the School District of Philadelphia for the Fiscal Year ended June 30, 2005. Pursuant to provisions of the Philadelphia Home Rule Charter, these financial statements were prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States of America. As such, management of the School District of Philadelphia (“School District”) assumes full responsibility for the completeness and reliability of all information presented in this report and provides reasonable assurance that its financial statements are free of any material misstatements. This Comprehensive Annual Financial Report (“CAFR”) is generally presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes this Letter of Transmittal, an Organizational Chart and a List of Principal Officials of the School District. The Financial Section includes Management’s Discussion and Analysis, Basic Financial Statements, Required Supplementary Information and the Combining and Individual Fund Statements while the Statistical Section includes selected financial and demographic information generally presented on a multi-year basis. As mandated, GAAP requires that management provide a narrative introduction, overview and analysis to accompany its basic financial statements. This narrative is known as Management’s Discussion and Analysis (“MD&A”) which is contained in the Financial Section as mentioned above.
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