Issuance and Repayment of Long Term Debt
In the Governmental Funds
GAAP direct that the issuance of long term debt be treated as an “other financing source” rather than
revenue to isolate the nonroutine inflow of proceeds that would otherwise distort revenue analysis from
year to year. The amount reported as an other financing source should be equal to the face value of the
debt. If debt is issued at a premium, the premium should be reported as a separate other financing
source.
For accounting purposes, a bond issuance is considered to have taken place as of the closing date – the
date on which the bonds were issued. Therefore, a receivable should be recorded if the issuance occurs
prior to year end but the cash proceeds have not yet been received.
The amount of cash actually received is typically less than the face value (plus premium, if applicable) of
the debt because:
 A portion of the proceeds of long term debt may be withheld for underwriter’s fees due in
connection with the issuance and/or
 The stated interest rate on the debt may have been less than the market rate for similar
securities at the time of issuance, in which the case the debt was sold at a discount.
Neither type of discount should be netted against the amount recorded as an other financing source.
Instead, discounts resulting from underwriter’s fees should be reported as an expenditure and discounts
resulting from a difference in interest rates should be treated as an other financing use.
Use Fund 3X to account for the financial resources used to acquire or construct major capital facilities
financed as a result of issuing bonds. Bond proceeds are receipted here and accounts payable for all
bond projects will be paid for from this fund.
Sample Entry #1:
Bonds are issued with a face value of $6,500,000. $6,450,000 is received from the sale in cash. The
balance represents $40,000 in underwriter’s fees and $10,000 in discounts due to a difference in the
market and stated interest rates.
Dr.
Dr.
Dr.
3X..00101.001 Cash
$6,450,000
3X..15121.833 Expenditures – Debt Service Fees/Commissions
40,000
3X..15121.925 Other Financing Use – Bond Discount
10,000
Cr.
3X..05111.009 Other Financing Source – Bond Proceeds
$6,500,000
1
Sample Entry #2:
Bonds are issued with a face value of $3,750,000. $4,100,000 is received from the sale in cash. The
balance represents $30,000 in underwriter’s fees and $380,000 in bond premium.
Dr.
Dr.
3X..00101.001 Cash
$4,100,000
3X..15121.833 Expenditures – Debt Service Fees/Commissions
30,000
Cr.
3X..05111.009 Other Financing Source – Bond Proceeds
$3,750,000
Cr.
3X..05121.009 Other Financing Source – Bond Premium
380,000
GAAP direct that expenditures related to debt service principal and interest payments be recognized in
governmental funds in the period in which they become due.
Use Fund 2X to account for the accumulation of resources for, and the payment of, general long term
debt, principal and interest. Property tax revenues from a bond levy are receipted here and payments
for principal and interest on maturing bonds are recorded in this fund.
Sample Entry #3:
Interest payments of $25,000 are due on March 31 and September 30 of each year. Principal is due on
September 30 in the amount of $325,000.
Dr.
2X..15111.831 Redemption of Principal
Cr.
2X..00101.001 Cash
Dr.
2X..15121.832 Interest Expense
Cr.
2X..00101.001 Cash
$325,000
$325,000
25,000
$25,000
In the Entity-Wide Statements
Governmental funds report only those liabilities that are expected to be liquidated with current
available financial resources. Therefore, governmental funds typically report no liability for the
unmatured principal of bonds, notes, capital lease obligations and similar debt. All debt, however, must
be reported in the entity-wide statements. Consistent with the treatment for long-term debt,
governmental funds typically do not report a liability for accrued interest until it is due and payable.
Accrued interest must be reported as a liability in the entity-wide statements.
From a full accrual perspective, the payment of debt service principal has no effect on net assets.
Consequently, debt service expenditures for principal payments are not expenses and should not be
included in the entity-wide statement of activities. The same approach should be taken to other
2
financing uses reported in connection with current or advance refunding transactions. In addition, debt
issuance has no impact on net assets, but instead affects only accounts reported on the statement of
position. Accordingly, other financing sources, uses and expenditures associated with the issuance of
debt should not be included in the entity-wide statement of activities.
Sample conversion entries follow. These are entries are made separate from the WVEIS accounting
system on separate files.
3
Conversion Entries (N, P)
Convert debt principal payments to reduction of liability
Action Needed: Debt principal payments are recorded as expendtiures in the governmental funds but should be shown as a reduction of the
liability in the entity-wide statements.
Conversion Entries (N P):
dr.
BONDS PAYABLE
cr.
Expenditures-Debt service-principal retirement
$
2,520,000
dr.
CAPITAL LEASE PAYABLE
cr.
Expenditures-Debt service-principal retirement
$
76,923
$
2,520,000
$
76,923
Where do the Numbers Come From?
Long-term debt table
Bonds payable
General obligation debt
Compensated absences
Accrued sick leave
Capital lease payable
Long-term liabilities
Balance, Beginning
of Year
10,550,000
175,448
3,388,703
769,231
Restatement
7,113,568
-
14,883,382
7,113,568
573,976
-
Deductions
2,520,000
76,923
Balance,
End of Year
8,030,000
749,424
10,502,271
692,308
Amounts due within
one year
2,600,000
10,502,271
76,923
573,976
2,596,923
19,974,003
13,179,194
Additions
Amounts due past
one year
5,430,000
749,424
615,385
6,794,809
4
Conversion Entry (S)
Amortize bond issuance costs in the entity-wide statements
Action Needed: When incurred, total bond issuance costs are recorded as expenditures in the governmental funds. If material, they should be capitalized in
the entity-wide statements and amortized over the length of the bond. Deferred charges for bond issuance costs are treated much like a prepaid asset.
Conversion Entry:
To record one year's amortization of the bond issuance costs.
dr.
Expenditures-support services-business
cr.
DEFERRED CHARGES-BOND ISSUANCE COSTS
$
13,200
$
13,200
Where do the Numbers Come From?
Total Bond Issuance costs
$
Length of bond
This is the second year of the bond
66,000
5
Amount to amortize each year
13,200
$
5
Conversion Entry (V)
Record interest due but not paid as of June 30
Action Needed: Interest that has accumulated on debt but has not been paid as of June 30 must be accrued in the entity-wide statements to comply with full accrual
accounting. Interest is recorded only when paid in the governmental funds.
Conversion Entry:
dr.
ACCRUED INTEREST PAYABLE
cr.
NET ASSETS
$
11,550
$
11,550
To adjust the balance in accrued interest payable.
Where do the Numbers Come From?
Interest payment amount
90,532
Payable March 30 and September 30 each year
Portion accrued at June 30
((113,632/6 months) x 3 months)
45,266
Balance in accrued interest payable
56,816
Entry needed to adjust balance to actual at June 30
$
(11,550)
6
Arbitrage
The interest paid on most debt issued by state and local governments is not subject to federal income
tax. As a result, purchasers of this type of debt are willing to accept a lower interest rate than they
would on taxable debt. Governments sometimes temporarily reinvest the proceeds in materially higheryielding taxable securities, especially during construction projects. This practice is called “arbitrage” by
the federal tax code. It is possible in certain specific situations, called “safe harbors”, for governments
to keep the extra earnings that result from arbitrage. In all other cases, any excess earnings resulted
from arbitrage must be rebated to the federal government. The liability to the federal government for
any excess earnings is therefore known as “rebatable arbitrage”. Typically, arbitrage rebate payments
must be made to the federal government every five years and at final maturity.
Rebatable arbitrage falls within the category of claims and judgments. Governmental funds may not
recognize a liability for claims and judgments (and also rebatable arbitrage) until amounts actually
become due and payable. Therefore, governmental funds should not report either an expenditure or
liability in connection with rebatable arbitrage until payment is actually made or the liability has become
due and payable.
It is recommended, however, that monies be set aside in a budgetary reserve in an amount sufficient to
provide for the rebatable arbitrage when it becomes due. An arbitrage calculation should be performed
annually to determine the estimated rebate amount.
Sample documents follow to illustrate the process.
Sample Entry #4:
Record the arbitrage payment due at March 31 of $1,225,000:
Dr.
3X..15121.833
Debt Service Fees/Commissions
Cr.
3X..00101.001
Cash
$1,225,000
$1,225,000
Use this sample entry if the arbitrage payment is due and payment is remitted within the same
accounting period. If monies have been transferred to Fund 11 and the payment is made from that fund,
then fund code 11 will be used in place of 3X.
Sample Entry #5: (See sample documents following this page)
Record the arbitrage payment due at June 30, but not paid by that date of $1,332,977:
Dr.
3X..15121.833
Debt Service Fees/Commissions
Cr.
3X..00448.004
Arbitrage Rebate Payable
$1,332,977
$1,332,977
7
Then record the subsequent cash payment:
Dr.
3X..00448.004
Arbitrage Rebate Payable
Cr.
3X..00101.001
Cash
$1,332,977
$1,332,977
Use this sample entry if the actual payment is made in an accounting period subsequent to the period in
which the payment becomes due and payable. If monies have been transferred to Fund 11 and the
payment is made from that fund, then fund code 11 will be used in place of 3X.
8
This is a sample letter and arbitrage calculation within the 5-yr period
9
10
This is the estimated
rebatable arbitrage consider transferring
funds to Fund 11 to
build a reserve of
approx. this amount by
the time year 5 is
completed
11
This is a sample arbitrage calculation at Year 5
SUMMARY OF ARBITRAGE CALCULATIONS
$60,455,000 Board of Education of
The County of _______________ (West Virginia)
Public School Bonds, Series 2006
Name of Fund
Amount
Debt Service Reserve Fund
Repurchase Agreement
Bond Fund-Interest
Construction Fund
$0.00
$1,629,570.03
$0.00
($291,141.03)
Subtotal
$1,338,428.99
Less: Computation Date Credit
Total Arbitrage Liability
BOND YIELD
INVESTMENT YIELD
$5,452.34
$1,332,976.65
4.31446900%
5.09234510%
See
Sample
See Sample Entry #6
Entry 5
When
theInvestment
investment
is
When the
Yield yield
is
higher
than
the
Bond
Yield,
you
higher than the bond yield,
maymay
be in in
a situation
with
you
a rebatable
arbitrage situation
12
.".*
Arbitrage Rebate, Yield Reduction
and Penalty in Lieu of Arbitrage Rebate
8038-T
(Rev. April 2011)
)
Department of the Treasury
Intemal Revenue Service
I
and Section
OMB No. 1545-1219
Under Sections 1,13(gX3) and 148(f)
of the lnternal Hevenue Gode of 1954
Authority
lssuer's name
Check box if Amended Return
2
Issuer's employer
4
Report number (For /BS Use
6
Date of lssue
8
CUSIP number
THE BOARD OF EDUCATION OF THE COUNTY OF CABELL (West Virginia)
3
)
ation number (ElN)
55-6000306
Number and street (or P.O. box no. if mail is not delivered to street address)
2850 Fifth Avenue
town, or post office, state, and ZIP code
,
Huntington, West Virginia
7
06/06/2006
Name of issue
Public School Bonds, Series 2006
9
12681C CQs
Name and title of officer of the issuer or other person whom the
I
may call for more information
Telephone number of officer or
Conrad J. Lucas, Business Manager and Treasurer
of issue
11
)
304-528-5047
Education
lssue price
)
60,680,964.40
Amount
12
13
14
15
Computation date to which this payment relates (MM/DD/yyyy)
06/06/201 1
Arbitrage rebate payment (see instructions) [ check box if less than 100% of rebate amount
Yield reduction payment (see instructions) Ll check box if less than 100% of vield reduction amount
Rebate
from Qualified Zone Academy Bond (QZAB) defeasance escrow (see instructions) .
16
Number of months since date of issue:
1,332.976.65
Rebate
LJ
omos E 12mos n 18ro" n
17
Penalty in lieu of rebate
't8
Date of termination election MM/DD/YYY\I
Penalty upon termination
19
24mos
n
22
Does failure to pay timely qualify for waiver of penalty (see instructions)
Penalty for failure to pay on iime (see instructions)
lnterest on
(see instructions)
23
Total
20
21
Tota
Otner.
No. of mos
Yes
)
n
No
ayment
Add lines 13, 14, 15, 17,19,21,and22. Entertotal here
1,332,976.65
Miscellaneous
24
25
26
Unspeni proceeds as of this computation date
Proceeds used to redeem bonds
Gross proceeds used for qualified administrative costs for quaranteed invesiment contracts
{GlCs) and
oeTeasance escrows
Fees paid for a qualified guarantee
28
ls the issue a variable rate issue?
29
Did the issuer enter into a hedge?
Name of provider
30
Were gross proceeds invested in a GIC?
Name of
Term of hedge
31
32
provider Bayerische Landesbank
Term of GIC 3.1 yrs
Were any gross proceeds invested beyond an available temporary period?
Calculations for filing of this form prepared by:
Issuer
Underpena|tiesofperiury,toeclaretnatlniveexamlnEElEEreturn,andacc
Signature
and
Consent
Trimble & Associates
belief' they are true, c6rrtict, and complete. I further declare that I consent to the lRS''s disclosure of the issuer,s reiuin intormarron,
as necessary ro
process this return, to the person that I have authorized above.
Signature of issuer's authorized representative
Type or print name and title
Paid
Preparer
Use Only
For Papenvork Reduction Act Notice, see the separate instructions.
Firm's EIN
l
Phone no
Cat. No. 11545Y
rorm
8038-T
fRev. 4-2011)
13
Refundings
Governments often elect to take advantage of reductions in interest rates by issuing new debt to
refinance existing (old) debt. Or, a government could elect to refinance old debt to escape unfavorable
debt covenants or to change the maturity date of the debt. These transactions are called refundings and
there are two types:
 Current Refunding – the proceeds of the refunding debt are applied immediately to redeem the
old debt.
 Advance Refunding – the proceeds of the refunding debt are placed into an escrow account
pending the call date or maturity of the old debt.
The most common type of refunding is advance refunding. Most advance refunding result in the
defeasance of the old debt: the debt is accounted for as though it had actually been redeemed. For any
refunding that result in defeasance, GAAP direct that the proceeds of the refunding bonds, whether
used for redemption or places in escrow, be reported as an other financing use instead of an
expenditure.
DEFINITIONS OF ACCOUNT NAMES APPEARING ON MBC STATEMENTS
GO ESCROW - General Obligation Escrow account. In years subsequent to refunding, the entire account
is committed to the refunded bonds. Some "normal" activity and some cash may show on the
statement due to buying/selling securities to pay debt service on refunded issue.
GO SUR COL - General Obligation Surplus Collections account. If levy collections are greater than the
projected need for the year, the surplus goes into this account. As a result, the levy could be retired
early or, at the time refunding, the balance is paid to the issuer.
REFUNDING GO - Refunding General Obligation account. If this account is for a past refunding then the
balance belongs to the issuer and may be withdrawn at any time.
GO BANK FEE - General Obligation Bank Fee account. Moneys in this account goes to pay for fees. Any
balance remaining after the issue is refunded or retired belongs to the issuer and can be withdrawn at
any time.
REF GO SPECIAL SURPLUS - Refunding General Obligation Special Surplus account. During the first year
of refunding, the proceeds may not be sufficient to cover debt service on the refunding bonds. As a
protection, this account may be set up to cover any shortcomings. If the balance is not needed during
the first year, it will be paid to issuer.
REF GO - Refunding General Obligation account. This account tracks the refunding bonds.
GO - General Obligation account. This account tracks regular general obligation bonds.
14
MORE INFORMATION FROM MBC
Copies of ledger cards are available upon request from MBC. Contact MBC at 558-3971. The ledger
cards detail all transactions occurring during the period and should agree to the amounts reported on
the MBC statements.
INSTRUCTIONS FOR PREPARING THE FINANCIAL STATEMENTS
To complete the financial statements for an advanced refunding, you will need:
o
o
o
All June 30 MBC annual statements (both for the old issuance that was refunded and the
new issuance of refunding bonds)
Blank debt service fund statements
Blank Exhibit E worksheet
1. Determine which issuance is on each MBC statement. Look at the upper left corner where it lists
"Account Name". It should show your entity’s name followed by a two-digit number and the type of
issuance. The two-digit number represents the year of the issuance. The type of issuance can be
determined by matching it to the MBC account definitions above.
For example, Exhibit A shows "89 GO ESCROW" for the account name. This means it is a 1989
issuance that has been refunded. Exhibit C shows "97 REF GO" which means it is a 1997 issuance
used to refinance the 1989 debt.
Ignore any MBC statement that shows zero beginning and ending balances and no activity for the
year.
2. Eliminate any transfer activity between MBC accounts.
highlighted in blue.
On the exhibits, transfer activity is
3. Identify each type of activity reported on the statements and enter the amounts on Exhibit E where
appropriate. Property taxes are highlighted in yellow, other local source revenues are shown in
pink, principal payments are highlighted in green, interest and other expenditures are highlighted in
lavender, proceeds from issuance of long-term debt is shown in purple, and cash balances are
highlighted in peach.
"Deposits from treasurer or sheriff" may need to broken out into two parts on the refunded
issuance. (See Exhibit A.) The refunding proceeds should be included in that total and needs to be
shown separately on the financial statements.
Note that some activity on the refunded statements (GO ESCROW) is not reported on the financial
statements. Also, only the cash balances in the refunding accounts (REF GO) are reported on the
balance sheet.
15
4. Calculate the "payment to refunded debt escrow agent" as shown on Exhibit E. Note that only
transfers from the refunded account to the refunding account are used in the calculation. In the
calculation, the activity in the refunded account subtracted from the proceeds of the refunding
bonds will result in the payment to debt escrow agent.
5. Transfer amounts from the Exhibit E worksheet to the financial statements. The financial
statements will be prepared using the debt maturity schedule for the refunding bonds. Remember
that the refunded issuance will no longer be shown on the financial statements.
6. In subsequent years, no activity from the escrowed account is recorded in the financial statements
until that issuance is retired. At that time, any monies remaining in the escrowed account will be
transferred to the Board.
7. The refunded bond issuance is no longer reported on the financial statements after the refunding
takes place. Only the refunding bonds are reported.
16
STATEMENT OF ACCOUNT
JULY 1, 1997 TO JUNE 30, 1998
ACCOUNT NUMBER: NIE-E-1-89-X-NI-13
ACCOUNT NAME: COUNTY SCHOOLS 89 GO ESCROW
COUNTY:
WEST VIRGINIA
MUNICIPAL BOND COMMISSION
SUITE 300
812 QUARRIER ST
CHARLESTON WV 25301
BALANCE LAST STATEMENT
313,002.26 To Exhibit E A
N
5,399,237.00 Refunding Proceeds N
RECEIPTS
DEPOSITS FROM TREASURER OR SHERIFF
DEPOSITS FROM PUBLIC UTILITY TAXES
INTEREST EARNED ON INVESTMENT POOL
INTEREST EARNED ON ESC INVESTMENTS
INCOME EARNED ON LOANED ESC INVEST
DISCOUNT EARNED ON MATURED ESC INVEST
DISCOUNT EARNED ON RETIRED BONDS
TRANFERS FROM RESERVE ACCOUNT
TRANSFERS FROM OTHER ACCOUNTS
5,863,047.00 463,810.00 Property Tax Revenue
113,300.19 To Exhibit E
16,177.92 To Exhibit E
61,118.44
0.00
0.00
0.00
0.00
1,311.16
0.00
0.00
MISCELLANEOUS
0.00
TOTAL RECEIPTS
6,054,954.71
------------------------------TOTAL INCLUDING BALANCE FORWARD
6,367,956.97
DISBURSEMENTS
BEARER BONDS MATURED AND PAID
COUPON INTEREST PAID
REGISTERED BONDS MATURED AND PAID
REGISTERED INTEREST PAID
ADMIN FEE TO REG BONDHOLDER
PREMIUM PAID ON CALLED BONDS
PAYING AGENT BANK SERVICE FEES
MBC SERVICE FEES
LEGAL ADVERTISEMENTS
PREMIUM PAID ON MATURED ESC INVEST
TRANSFERS TO REVENUE ACCOUNT
TRANSFERS TO OTHER ACCOUNTS
REFUNDS TO ISSUER
MISCELLANEOUS
TOTAL DISBURSEMENTS
BALANCE THIS STATEMENT
0.00
0.00
-540,000.00
-364,680.00
0.00
0.00
-1,901.00
-2,000.00
0.00
0.00
0.00
-585,671.97
0.00
0.00
To Exhibit E
A
L
F
Y
1997
-1998
To Exhibit E
To Exhibit E
To Exhibit E
To Exhibit E
-1,494,252.97
------------------------------4,873,704.00
-------------------------------
THE ABOVE BALANCE IS HELD AS FOLLOWS:
CASH/MBC RESTRICTED POOL INVEST
64,819.00
ESCROWED INVESTMENTS
4,808,885.00
TOTAL
4,873,704.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- -- -- -- - - - - - - - - - - - - - - - - - - - - - - - - - REMAINING PRINCIPAL OUTSTANDING, AS OF JUNE 30, 1998/*JULY 2, 1998
4,525,000
Exhibit A
17
STATEMENT OF ACCOUNT
JULY 1, 1997 TO JUNE 30, 1998
ACCOUNT NUMBER: NIE-E-5-89-X-NI-13
ACCOUNT NAME: COUNTY SCHOOLS 89 GO SUR COL
COUNTY:
WEST VIRGINIA
MUNICIPAL BOND COMMISSION
SUITE 300
812 QUARRIER ST
CHARLESTON WV 25301
BALANCE LAST STATEMENT
296,042.31 To Exhibit E A
N
RECEIPTS
N
DEPOSITS FROM TREASURER OR SHERIFF
0.00
U
DEPOSITS FROM PUBLIC UTILITY TAXES
0.00
A
INTEREST EARNED ON INVESTMENT POOL
9,880.27 To Exhibit E
L
INTEREST EARNED ON ESC INVESTMENTS
0.00
INCOME EARNED ON LOANED ESC INVEST
0.00
F
DISCOUNT EARNED ON MATURED ESC INVEST
0.00
Y
DISCOUNT EARNED ON RETIRED BONDS
0.00
TRANFERS FROM RESERVE ACCOUNT
0.00
1997
TRANSFERS FROM OTHER ACCOUNTS
0.00
-0.00
1998
0.00
MISCELLANEOUS
0.00
TOTAL RECEIPTS
9,880.27
------------------------------TOTAL INCLUDING BALANCE FORWARD
305,922.58
DISBURSEMENTS
BEARER BONDS MATURED AND PAID
COUPON INTEREST PAID
REGISTERED BONDS MATURED AND PAID
REGISTERED INTEREST PAID
ADMIN FEE TO REG BONDHOLDER
PREMIUM PAID ON CALLED BONDS
PAYING AGENT BANK SERVICE FEES
MBC SERVICE FEES
LEGAL ADVERTISEMENTS
PREMIUM PAID ON MATURED ESC INVEST
TRANSFERS TO REVENUE ACCOUNT
TRANSFERS TO OTHER ACCOUNTS
REFUNDS TO ISSUER
MISCELLANEOUS
TOTAL DISBURSEMENTS
BALANCE THIS STATEMENT
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-1,311.16
-72,290.41 To Exhibit E
-232,321.01 To Exhibit E
0.00
-305,922.58
------------------------------0.00
-------------------------------
THE ABOVE BALANCE IS HELD AS FOLLOWS:
CASH/MBC RESTRICTED POOL INVEST
0.00
ESCROWED INVESTMENTS
0.00
TOTAL
0.00
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Exhibit B
18
STATEMENT OF ACCOUNT
JULY 1, 1997 TO JUNE 30, 1998
ACCOUNT NUMBER: NIE-E-1-97-R-NI-13
ACCOUNT NAME: COUNTY SCHOOLS 97 REF GO
COUNTY:
WEST VIRGINIA
MUNICIPAL BOND COMMISSION
SUITE 300
812 QUARRIER ST
CHARLESTON WV 25301
BALANCE LAST STATEMENT
RECEIPTS
DEPOSITS FROM TREASURER OR SHERIFF
DEPOSITS FROM PUBLIC UTILITY TAXES
INTEREST EARNED ON INVESTMENT POOL
INTEREST EARNED ON ESC INVESTMENTS
INCOME EARNED ON LOANED ESC INVEST
DISCOUNT EARNED ON MATURED ESC INVEST
DISCOUNT EARNED ON RETIRED BONDS
TRANFERS FROM RESERVE ACCOUNT
TRANSFERS FROM OTHER ACCOUNTS
MISCELLANEOUS
TOTAL RECEIPTS
0.00
A
N
N
U
A
L
387,959.00
0.00
4,174.14
0.00
0.00
0.00
0.00
0.00
488,600.00
0.00
0.00
0.00
F
Y
1997
-1998
880,733.14
------------------------------TOTAL INCLUDING BALANCE FORWARD
880,733.14
DISBURSEMENTS
BEARER BONDS MATURED AND PAID
COUPON INTEREST PAID
REGISTERED BONDS MATURED AND PAID
REGISTERED INTEREST PAID
ADMIN FEE TO REG BONDHOLDER
PREMIUM PAID ON CALLED BONDS
PAYING AGENT BANK SERVICE FEES
MBC SERVICE FEES
LEGAL ADVERTISEMENTS
PREMIUM PAID ON MATURED ESC INVEST
TRANSFERS TO REVENUE ACCOUNT
TRANSFERS TO OTHER ACCOUNTS
REFUNDS TO ISSUER
MISCELLANEOUS
TOTAL DISBURSEMENTS
BALANCE THIS STATEMENT
0.00
0.00
-644,165.00
-78,174.34
0.00
0.00
0.00
-1,805.85
0.00
0.00
0.00
0.00
0.00
0.00
-724,145.19
------------------------------156,587.95
-------------------------------
THE ABOVE BALANCE IS HELD AS FOLLOWS:
CASH/MBC RESTRICTED POOL INVEST
156,587.95
ESCROWED INVESTMENTS
0.00
TOTAL
156,587.95
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - REMAINING PRINCIPAL OUTSTANDING, AS OF JUNE 30, 1998/*JULY 2, 1998
4,822,572
Exhibit C
19
WEST VIRGINIA
MUNICIPAL BOND COMMISSION
STATEMENT OF ACCOUNT
SUITE 300
JULY 1, 1997 TO JUNE 30, 1998
812 QUARRIER ST
ACCOUNT NUMBER: NIE-E-8-97-R-NI-13
CHARLESTON WV 25301
ACCOUNT NAME: COUNTY SCHOOLS 97 REF GO SPEC SURPLUS
COUNTY:
BALANCE LAST STATEMENT
RECEIPTS
DEPOSITS FROM TREASURER OR SHERIFF
DEPOSITS FROM PUBLIC UTILITY TAXES
INTEREST EARNED ON INVESTMENT POOL
INTEREST EARNED ON ESC INVESTMENTS
INCOME EARNED ON LOANED ESC INVEST
DISCOUNT EARNED ON MATURED ESC INVEST
DISCOUNT EARNED ON RETIRED BONDS
TRANFERS FROM RESERVE ACCOUNT
TRANSFERS FROM OTHER ACCOUNTS
MISCELLANEOUS
TOTAL RECEIPTS
0.00
A
N
N
U
A
L
0.00
0.00
9,866.68
0.00
0.00
0.00
0.00
0.00
657,962.38
0.00
0.00
0.00
F
Y
1997
-1998
667,829.06
------------------------------TOTAL INCLUDING BALANCE FORWARD
667,829.06
DISBURSEMENTS
BEARER BONDS MATURED AND PAID
COUPON INTEREST PAID
REGISTERED BONDS MATURED AND PAID
REGISTERED INTEREST PAID
ADMIN FEE TO REG BONDHOLDER
PREMIUM PAID ON CALLED BONDS
PAYING AGENT BANK SERVICE FEES
MBC SERVICE FEES
LEGAL ADVERTISEMENTS
PREMIUM PAID ON MATURED ESC INVEST
TRANSFERS TO REVENUE ACCOUNT
TRANSFERS TO OTHER ACCOUNTS
REFUNDS TO ISSUER
MISCELLANEOUS
TOTAL DISBURSEMENTS
BALANCE THIS STATEMENT
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-488,600.00
0.00
0.00
-488,600.00
------------------------------179,229.06
-------------------------------
THE ABOVE BALANCE IS HELD AS FOLLOWS:
CASH/MBC RESTRICTED POOL INVEST
179,229.06
ESCROWED INVESTMENTS
0.00
TOTAL
179,229.06
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- -- -- -- - - - - - - - - - - - - - - - - - - - - - - - - - -
Exhibit D
20
Calculations for Financial Statement Amounts
Debt Service Fund
Revenues:
Property tax
Taxes receivable
Property taxes - 97 issue
Property taxes - 89 issue
Total property tax revenue
16,029.93
387,959.00
463,810.00
867,798.93 To Financial Statements
Other local sources
Interest - 97 issue
Interest - 97 issue surplus
Public utility taxes - 89 issue
Interest - 89 issue
Interest - 89 issue
Total other local sources
4,174.14
9,866.68
113,300.19
16,177.92
9,880.27
153,399.20 To Financial Statements
Total revenues
1,021,198.13
Expenditures:
Principal
Principal - 97 issue
Principal - 89 issue
Total principal
Interest & other expenditures
Interest - 97 issue
MBC service fees - 97 issue
Interest - 89 issue
MBC service fees - 89 issue
Total interest and other expenditures
Total expenditures
Other Sources (Uses) of Funds:
Proceeds from issuance of long-term debt
Payment to refunded debt escrow agent
Beginning balance - 89 issue
Beginning balance - 89 issue surplus
Property taxes - 89 issue
Utility taxes - 89 issue
Interest - 89 issue
Interest - 89 issue surplus
Principal payments - 89 issue
Interest payments - 89 issue
Service fee - 89 issue
Transfer to new account from 89 issue
Transfer to new account from 89 issue surplus
Refunds to issuer from 89 issue surplus
Subtotal
Proceeds from issuance of long-term debt
Operating transfers out to Gen. Cur. Exp. Fund
540,000.00
644,165.00
1,184,165.00 To Financial Statements
78,174.34
1,805.85
364,680.00
2,000.00
446,660.19 To Financial Statements
1,630,825.19
5,399,237.00 To Financial Statements
313,002.26
296,042.31
463,810.00
113,300.19
16,177.92
9,880.27
-540,000.00
-364,680.00
-2,000.00
-585,671.97
-72,290.41
-232,321.01
-584,750.44
5,399,237.00 From Above
232,321.01 From Above
To Financial Statements
Total other sources (uses)
5,166,915.99
Cash:
Cash - 97 issue
Cash - 97 issue surplus
156,587.95
179,229.06
335,817.01 To Financial Statements
Exhibit E
21
SAMPLE COUNTY, WEST VIRGINIA, BOARD OF EDUCATION
PARTIAL BALANCE SHEET - GOVERNMENTAL FUNDS
Debt
Service
Fund
ASSETS
Cash and cash equivalents
Investments
Taxes receivable, net
Food service receivable, net
Other receivables
Due from other governments:
State aid receivable
PEIA allocation receivable
Reimbursements receivable
Due from other funds
Total assets
$
1
335,817
16,030
$
351,848
LIABILITIES AND FUND BALANCES
Liabilities:
Salaries payable and related payroll liabilities
Other post employment benefits payable - state aid funded
Other post employment benefits payable - all other employees
PEIA premiums payable
Accounts payable
Deferred revenue
Due to other funds
Total liabilities
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
TOTAL LIABILITIES AND FUND BALANCES
-
351,848
$
351,848
351,848
22
SAMPLE COUNTY, WEST VIRGINIA, BOARD OF EDUCATION
PARTIAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS
Debt
Service
Fund
Revenues:
Property taxes
Other Local sources
State sources
Federal sources
Miscellaneous sources
$
867,792
153,399
1,021,191
Total revenues
Expenditures:
Instruction
Supporting services:
Students
Instructional staff
Central administration
School administration
Business
Operation and maintenance of facilities
Student transportation
Food services
Community services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
1,184,165
446,660
1,630,825
Total expenditures
Excess (deficiency) of revenues over
expenditures
(609,634)
Other financing sources (uses):
Proceeds from issuance of long term debt
Payment to refunded debt escrow agent
Transfers in
Transfers (out)
5,399,237
(4,814,487)
(232,321)
352,429
Total other financing sources (uses)
(257,205)
Net change in fund balances
Fund balances - beginning
609,053
Cumulative Effect of Adoption of Accounting Policy (See Note ___)
Fund balances - beginning, as restated
609,053
Fund balances - ending
$
351,848
23