What are the Key Factors in the Annual Financial Report?
Balance Sheet (AFR - Pages 5 & 6) Exhibit (1)
Assets: Those things of value (resources) held
by the school district which have monetary value. [Fixed assets
(land / buildings) are reported in a separate account group.]
Liabilities: The debts or other legal obligations
the school district must pay. Liabilities identify what
the school district owes. [Long-term liabilities (bonds)
are reported in a separate account group.]
Fund Balance: The cumulative excess of the assets
over liabilities and reserves. Fund Balance identifies
what the school district owns / equity.
Assets
- Liabilities =
Fund Balance
Fund Balance
= Assets -
Liabilities
Assets
= Liabilities +
Fund Balance
Statement of Change in Financial Position (AFR - Pages 7
& 8) See Exhibit (2)
Revenues: Identify all school district revenues,
by fund. Lists the moneys received from local, flow-through,
state, and federal sources that have not created an offsetting
liability (debt / obligation to repay).
Expenditures: Identify all school district expenditures,
by fund. Lists what was spent from instruction, support
services, community services, non-programmed charges, and
debt services.
Fund Balance: The cumulative excess of the assets
over liabilities. The fund balance identified what the
school district's owns / equity.
The Statement of Change in Financial Position reports the
change in fund balance that results from the school district's
operations during the fiscal year. This information
determines whether the district has improved or worsened.
Revenues / Receipts
- Expenditures / Disbursements
+ Other Financing Sources / Uses
= Change in FUND BALANCE
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