Independent Single Audit Report 2008-2009

REPORT ON
NORTHWESTERN LEHIGH SCHOOL DISTRICT

SINGLE AUDIT REPORT
FISCAL YEAR ENDED JUNE 30, 2009
Single Audit Report
For the Fiscal Year Ended June 30, 2009
TABLE OF CONTENTS
Page (s)
Introductory Section
Transmittal Letter ........................................................................................................................... 1
Letter to Governance/Management........................................................................................... 2 - 6
Report Distribution List ................................................................................................................... 7
Financial Section
Independent Auditor's Report.................................................................................................... 8 - 9
Management's Discussion and Analysis .............................................................................. 10 – 17
Basic Financial Statements
District-wide Financial Statements:
Statement of Net Assets ................................................................................................. 18
Statement of Activities..................................................................................................... 19
Fund Financial Statements:
Balance Sheet - Governmental Funds ........................................................................... 20
Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Assets................................................................................... 21
Statement of Revenues, Expenditures, and Changes in Fund

Balances - Governmental Funds................................................................................ 22
Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures, and Changes in Fund Balance to the Statement
of Activities ........................................................................................................... 23 - 24
Statement of Net Assets - Proprietary Funds................................................................. 25
Statement of Revenues, Expenses, and Changes in

Net Assets - Proprietary Funds .................................................................................. 26
Statement of Cash Flows - Proprietary Funds ........................................................ 27 - 28
Statement of Net Assets - Fiduciary Funds.................................................................... 29
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Single Audit Report
TABLE OF CONTENTS (continued)
Page (s)
Statement of Changes in Net Assets - Fiduciary Funds .................................................... 30
Statement of Revenues, Expenditures, and Changes in Fund

Balance - Budget and Actual - General Fund ............................................................ 31
Notes to Basic Financial Statements.................................................................................. 32– 65
Required Supplemental Information
Schedule of Funding Progress ........................................................................................... 66
Supplemental Information:
Combining Statement of Fiduciary Net Assets - Private Purpose

Trust Funds ................................................................................................................. 67
Combining Statement of Changes in Fiduciary Net Assets -

Private Purpose Trust Funds...................................................................................... 67
Combining Statement of Net Assets - All Enterprise Funds .......................................... 68
Combining Statement of Revenues, Expenses, and Changes in

Net Assets - All Enterprise Funds............................................................................... 69
Combining Statement of Cash Flows - All Enterprise Funds................................. 70 – 71
Combining Balance Sheet - All Agency Funds .............................................................. 72
Combining Statement of Changes in Assets and Liabilities -

All Agency Funds ........................................................................................................ 73
Combining Balance Sheet - All Capital Project Funds................................................... 74
Combining Statement of Revenues, Expenditures, and Changes in

Fund Balances – All Capital Project Funds................................................................ 75
General Fund - Schedule on Tax Collectors' Receipts .................................................. 76
General Fund - Statement of Revenues, Expenditures, and

Changes in Fund Balance ................................................................................... 77 - 80
Food Service Fund - Statement of Revenues, Expenses, and

Changes in Net Assets................................................................................................ 81
Food Service Fund - Statement of Net Assets............................................................... 82
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Single Audit Report
TABLE OF CONTENTS (continued)
Page (s)
Tiger Concession Fund - Statement of Revenues, Expenses, and

Changes in Net Assets................................................................................................. 83
Payroll Fund - Statement of Receipts and Disbursements ............................................ 84
Capital Reserve Fund - Statement of Revenues and Expenditures.............................. 84
2004 Construction Fund - Statement of Revenues and Expenditures .......................... 85
2008 Construction Fund – 32 – Statement of Revenues and Expenditures ................. 85
2008 Construction Fund – 35 – Statement of Revenues and Expenditures ................. 86
2008 A Construction Fund -33 – Statement of Revenue and Expenditures ................. 87
General Long-Term Debt:
Schedule on General Obligation Bonds - Series of 2001 .............................................. 88
Schedule on General Obligation Bonds- Series of 2003 ............................................... 88
Schedule on General Obligation Bonds - Series of 2005 .............................................. 89
Schedule on General Obligation Bonds – Series A of 2007.......................................... 90
Schedule on General Obligation Notes – Series A of 2007........................................... 91
Schedule on General Obligation Bonds – Series of 2008 ............................................. 92
Schedule on General Obligation Bonds – Series A of 2008.......................................... 93
Single Audit Section
Schedule of Expenditures of Federal Awards .............................................................................. 94
Notes to the Schedule of Expenditures of Federal Awards ......................................................... 95
Independent Auditor’s 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.................... 96 - 97
Independent Auditor’s Report on Compliance with Requirements

Applicable to each Major Program and on Internal Control over
Compliance in accordance with OMB Circular A-133 ...................................................... 98 – 99
Schedule of Findings and Questioned Costs ................................................................ 100 - 101
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I N T R O D U C T O R Y S E C T I O N
Board of School Directors Mrs. Susanne H. Meixsell, Superintendent
In addition, the representation letter provided to us, by management, confirmed there were no uncorrected
misstatements. Management has recorded all of our adjusting journal entries, and has agreed to the
conversion entries necessary to convert governmental funds and proprietary funds to governmental
activities and business-type activities, respectively.
In accordance with auditing standards, generally accepted in the United States of America, we have
acquired a sufficient understanding of the District and its environment, including its internal control, to
assess the risk of material misstatements of the financial statements whether due to error or fraud, and to
design the nature, timing, and extent of further audit procedures that were necessary to express an
opinion on the 2008-09 basic financial statements.
Our consideration of the District’s internal control components was not designed for the purpose of
making detailed recommendations and would not necessarily disclose all significant deficiencies within
the components. Our audit procedures have been appropriately adjusted to compensate for any
observed significant deficiencies. The following three paragraphs define the three different types of
deficiencies that can occur:
A control deficiency 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 misstatements on a timely basis.
A significant deficiency is a control deficiency, or combination of control deficiencies, that

adversely affects the entity’s ability to initiate, authorize, record, process, or report
financial data reliably, in accordance with generally accepted accounting principles, such
that there is more than a remote likelihood that a misstatement of the entity’s financial
statements, that is more than inconsequential, will not be prevented or detected by the
entity’s internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies,

that results in more than a remote likelihood that a material misstatement of the financial
statements will not be prevented or detected by the entity’s internal control.
As the primary purpose of our audit is to form an opinion on the basic financial statements, you will
appreciate that reliance must be placed on adequate methods of internal control as your principal
safeguard against errors and fraud which audit procedures may not disclose. The objective of internal
control over financial reporting is to provide reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use and that financial records are reliable for preparing
financial statements in accordance with generally accepted accounting principles and for maintaining the
accountability for assets. The concept of reasonable assurance recognizes that the cost of internal control
should not exceed the related benefits; to operationalize this concept, management is required to
formulate estimates and judgments of the cost/benefit ratios of alternative controls.
There are inherent limitations that should be recognized in considering the potential effectiveness of
internal control over financial reporting. Errors can result from misunderstanding of instructions, mistakes
of judgment, carelessness, fatigue, and other personnel factors. Control procedures whose effectiveness
depends upon the segregation of duties can be circumvented by collusion or by management. What's
more, any projection of internal control evaluations to future periods is subject to the risk that the
procedures may become inadequate because of changes in conditions or due to the deterioration of the
degree of compliance with control procedures.
As an adjunct to our audit, we remained alert throughout for opportunities to enhance internal controls and
operating efficiency. These matters were discussed with management as the audit progressed and have
subsequently been reviewed in detail to formulate practical recommendations. We wish to thank your staff
for their courtesies and cooperation, which facilitated the efficient performance of audit procedures. The
remainder of this letter will explain any internal control deficiencies discovered during the audit, other
auditor recommendations, and other information pertinent to the District.
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A control deficiency is determined to be considered a material weakness or significant deficiency based

upon the magnitude of the problem as it pertains to a particular opinion unit. In other words, what is
considered a significant deficiency in one fund may only be a control deficiency in another fund of greater
size.
The following section in this governance/management letter is separated by categories based on

importance, with any material weaknesses or significant deficiencies listed in the beginning:
CONTROL DEFICIENCIES
Federal Grants
Our review of federal grant transactions indicated that a Title III grant payment had been posted as an
offset of the related expenditure instead of being recorded as federal grant revenue.
In accordance with the requirements of OMB Circular A-133, we recommend all grant monies received be
recorded as federal grant revenues. Grant expenditures and revenues should not be offset, but recorded
separately in accounts aggregating transactions from like funding sources. Conformity with this process is
especially essential for recording activity associated with Recovery Act funds.
Student Play Receipts
During our review of student activity receipts, we discovered postings relating to student plays held in the
spring did not have supporting documentation for receipts collected at these events, since the District did
not utilize tickets for admission. Utilization of tickets to support admission to events would provide support
that the amount of recorded receipts were in agreement with the number of tickets sold.
We recommend the District utilize tickets for admission to all events to provide support for the amount of
recorded receipts. Reconciling the number of tickets sold to the amount of deposited receipts would
demonstrate compliance with appropriate internal controls.
RECOMMENDATIONS
Tiger Concession Fund
During our testing of expenses in the Tiger Concession Fund, we discovered construction expenses had
been charged to inappropriate account codes.
We would like to recommend that all construction expenses be evaluated to determine if the amounts
meet the capitalization thresholds. Expenses meeting capitalization limits should be recorded to capital
assets while expenses under the threshold should be charged to appropriate expense accounts.
OTHER INFORMATION
GASB Statement No. 53 – Derivatives
During the 2008 calendar year, the Governmental Accounting Standards Board issued the latest
accounting principle standard for all governments to follow. GASB Statement No. 53 is associated with
the proper accounting and reporting of derivative instruments. The only derivative instruments to be
acquired, in the Commonwealth of Pennsylvania, by governments are derivatives pertaining to debt; i.e.
interest rate swaps, forward swaptions, constant maturity basis swaps, and etc.
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Governments who use this type of financial instrument are now required to record the fair value of the
derivative onto the government-wide financial statements reflected as an asset or liability. The recording
of the net change in fair value depends on the effectiveness of the hedge. These types of financial
instruments can potentially save governments money, but are as risky as adjustable rate mortgages
versus fixed rate mortgages. If the District would like further clarification of this accounting standard, we
will be happy to discuss it with you. The effective date for this standard is the 2009-10 fiscal year.
GASB Statement No. 54 – Fund Balance Reporting
In February 2009, the Governmental Accounting Standards Board issued Statement No. 54 redefining the
various components of fund balance that is used in governmental funds (General Fund, Capital Reserve
Fund, Athletic Fund, Capital Project Fund, and Debt Service Funds). This standard goes into effect for the
2010-11 fiscal year.
The new categories of fund balance are:
Nonspendable
Restricted
Committed
Assigned
Unassigned
The Nonspendable fund balance classification includes amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in
spendable form” includes items not expected to be converted into cash, for example, inventories and
prepaid amounts. The corpus (principal) of a permanent fund is an example of an amount that is legally or
contractually required to be maintained intact.
The Restricted fund balance classification occurs when constraints placed on the use of resources are
either:
a. Externally imposed by creditors (such as debt covenants), grantors, contributors, or laws and
regulations of other governments; or
b. Imposed by law through constitutional provisions or enabling legislation. Enabling legislation

authorizes the government to mandate payment of resources from external providers and
includes a legally enforceable requirement that those resources be used for the specific
purpose stipulated in the legislation.
The Committed fund balance classification is used for specific purposes pursuant to constraints imposed
by formal action of the government’s highest level of decision-making authority. Those committed
amounts cannot be used for any other purpose unless the government removes or changes the specified
use by taking the same type of action (legislation, ordinance, or resolution). The formal action of the
government’s highest level of decision-making authority that commits fund balance to a specific purpose
should occur prior to the end of the reporting period, but the amount, if any, subject to the constraint, may
be determined in the subsequent period.
The Assigned fund balance classification involves amounts that are constrained by the government’s
intent to be used for specific purposes, but are neither restricted nor committed. Intent should be
expressed by (a) the governing body itself or (b) a body (a budget or finance committee) or official to which
the governing body has delegated the authority to assign amounts to be used for specific purposes. The
authority to create an assigned amount does not require formal action of the governing body.
Assigned fund balance includes (a) all remaining amounts (except for negative balances) that are reported
in governmental funds, other than the general fund, that are not classified as nonspendable and are
neither restricted nor committed and (b) amounts in the general fund that are intended to be used for a
specific purpose.
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REPORT DISTRIBUTION LIST
The Northwestern Lehigh School District has distributed copies of the Single Audit Act Package to the
following:
ONE COPY TO: BUREAU OF THE CENSUS

(Electronically Submitted) DATA PREPARATION DIVISION
ONE COPY TO: COMMONWEALTH OF PENNSYLVANIA

(Electronically Submitted) OFFICE OF THE BUDGET/BUREAU OF AUDITS
ONE COPY TO : CARBON-LEHIGH INTERMEDIATE UNIT #21

4210 INDEPENDENCE DRIVE
SCHNECKSVILLE, PA 18078
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F I N A N C I A L S E C T I O N
New Tripoli, Pennsylvania
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

Required Supplementary Information (RSI)
(UNAUDITED)
For the Year Ended June 30, 2009
The Northwestern Lehigh School District’s (the “District”) discussion and analysis is designed to (a) assist
the reader in focusing on significant financial issues, (b) provide an overview of the District’s financial
activity, (c) identify changes in the District’s financial position (its ability to address the next and
subsequent year’s challenges), (d) identify any material deviations from the financial plan (the approved
budget), and (e) identify individual fund issues or concerns. Readers should also review the financial
statements and notes to enhance their understanding of the District’s financial performance.
FINANCIAL HIGHLIGHTS
• As of June 30, 2009, the District’s net assets equal $20,066,113, for an increase of $ 3,334,118
(or 19.9%).
• The governmental net assets equal $19,766,159, for an increase of $3,342,328 (or 20.4%).
• The business-type net assets equal $299,954, for an decrease of $8,210 (or - 2.7%).
USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements and notes to those statements. These
statements are organized so the reader can understand Northwestern Lehigh School District as a financial
whole, an entire operating entity, and the major individual funds. The statements then proceed to provide
an increasingly detailed look at specific financial activities.
The first two statements are government-wide financial statements: the Statement of Net Assets and the
Statement of Activities. These provide both long-term and short-term information about the District’s
overall financial status.
The remaining statements are fund financial statements that focus on individual parts of the District’s
operations in more detail than the government-wide statements. The governmental funds statements tell
how general District services were financed in the short-term as well as what remains for future spending.
Proprietary fund statements offer short-term and long-term financial information about the activities that the
District operates like a business. For the District these are our Food Service Fund and Tiger Concessions
Fund. Fiduciary fund statements provide information about financial relationships where the District acts
solely as a trustee or agent for the benefit of others, to whom the resources belong.
The financial statements also include notes that explain some of the information in the financial
statements.
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Management's Discussion and Analysis
Figure A-1 shows how the required parts of the Financial Section are arranged and relate to one another:
Figure A-1
Required Components of
Northwestern Lehigh School District’s
Financial Report
Management
Discussion
and Analysis
Basic Required
Financial Supplementary
Statements Information
Government-
wide Fund
Statements Statements
Notes to
The
Financial
Statements
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Figure A-2 summarizes the major features of the District’s financial statements, including the portion of the
District’s financial operations they cover and the types of information they contain. The remainder of this
overview section of management’s discussion and analysis explains the structure and contents of each of
the statements.
Figure A-2
Major Features of Northwestern Lehigh School District’s
Government-wide and Fund Financial Statements
FUND STATEMENTS
Government- Governmental Proprietary Fiduciary
wide Statements Funds Funds Funds
Scope Entire District The activities of the Activities the Instances in
(except fiduciary District that are not District operates which the
funds) proprietary or fiduciary, similar to private District is the
such as education, business - Food trustee or agent
administration and Services and to someone
community services Tiger else’s
Concessions resources-
Scholarship
Funds and
Agency Funds
Required Statement of Balance Sheet Statement of Statement of
financial Net Assets Net Assets Fiduciary Net
statements Statement of Assets
Statement of Revenues, Statement of
Activities Expenditures, and Revenues, Statement of
Changes in Fund Expenses and Changes in
Balance Changes in Net Fiduciary Net
Assets Assets
Statement of
Cash Flows
Accounting basis Accrual Modified accrual Accrual Accrual
and accounting and accounting and current accounting and accounting and
measurement economic financial resources economic economic
focus resources focus focus resources focus resources
focus
Type of All assets and Only assets expected All assets and All assets and
asset/liability liabilities, both to be used up and liabilities, both liabilities, both
information financial and liabilities that come financial and financial and
capital, and due during the year or capital, and capital short-
short-term and soon thereafter, no short-term and term and long-
long-term capital assets included long-term term
Type of inflow- All revenues and Revenues for which All revenues and All revenues
outflow expenses during cash is received during expenses during and expenses
information year, regardless or soon after the end year, regardless during year,
of when cash is of the year; of when cash is regardless of
received or paid expenditures when received or paid when cash is
goods or services received or
have been received paid
and payment is due
during the year or
soon thereafter
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OVERVIEW OF FINANCIAL STATEMENTS

Government-wide Statements
The government-wide statements report information about the District as a whole using accounting
methods similar to those used by private-sector companies. The focus of the Statement of Net Assets (the
“unrestricted net assets”) is designed to be similar to a bottom line for the District and its governmental and
business-type activities. This statement combines and consolidates governmental fund’s current financial
resources (short-term spendable resources) with capital assets and long-term obligations.
The Statement of Activities is focused on both the gross and net cost of various activities, which are
provided by the government’s general tax and other revenues. This is intended to summarize and simplify
the user’s analysis of the cost of various governmental services and/or subsidies to various business-type
activities.
The two government-wide statements report the District’s net assets and how they have changed. Net
assets, the difference between the District’s assets and liabilities, are one way to measure the District’s
financial health or position. Over time, increases or decreases in the District’s net assets are an indication
of whether its financial health is improving or deteriorating, respectively.
The government-wide financial statements of the District are divided into two categories.
• Governmental activities - All of the District’s basic services are included here, such as instruction,
administration and community services. Property taxes, state and federal subsidies, and grants
finance most of these activities.
• Business-type activities - The District conducts food service and stadium concession (Tiger
Concessions) operations and charges fees to staff, students and visitors to cover the costs.
Fund Statements
The District’s fund statements provide detailed information about the most significant funds - not the
District as a whole. Some funds are required by state law and by bond requirements.
Governmental Funds - Most of the District’s activities are reported in governmental funds, which
focus on the determination of financial position and change in financial position, not on income
determination. They are reported using an accounting method called modified accrual accounting,
which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the District’s operations and the
services it provides. Governmental fund information helps the reader determine whether there are
more or less financial resources that can be spent in the near future to finance the District’s
programs. The relationship (or differences) between governmental activities (reported in the
Statement of Net Assets and the Statement of Activities) and governmental funds is reconciled in the
financial statements. Governmental funds include the General Fund, Capital Reserve Fund, Capital
Projects Funds and the Debt Services Fund.
Proprietary Funds - These funds are used to account for the District’s activities that are similar to
business operations in the private sector, or where the reporting is on determining net income,
financial position, or changes in financial position. These funds have a significant portion of funding
through user charges. When the District charges customers for services, these services are
generally reported in proprietary funds. The Food Service and Tiger Concessions Funds are the
District’s proprietary funds and are the same as the business-type activities reported in the
government-wide statements, but provide additional detail and information, such as cash flows.
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Fiduciary Funds - The District is the trustee, or fiduciary, for some scholarship funds. Agency funds
are used to account for assets held by the District as an agent for individuals, private organizations,
other governmental entities and/or other funds. All of the District’s fiduciary activities are reported in
a separate Statements of Fiduciary Net Assets. We exclude these activities from the District’s other
fund statements because the District cannot use these assets to finance its operations.
OVERALL FINANCIAL HIGHLIGHTS

Governmental Activities
General Fund – The District received $232,946 more in General Fund revenue and other financing
sources than originally budgeted. Positive variances in local revenue sources were primarily
attributable to unanticipated receipts of interim real estate taxes and delinquent real estate tax
collections. In total, there were net positive budget variances in total expenditures and other
financing uses amounting to $1,339,491. The District budgeted for an anticipated legislated
increase in the retirement contribution rate which did not occur. Additionally, anticipated increases in
fuel oil and diesel costs did not materialize and contributed to the total positive expenditure variance.
As of June 30, 2009, the District has designated $1,755,000 of fund balance for proposed future
PSERS contributions and increases in medical insurance. The Board authorized a specific fund
balance reserve of $1,381,403 for GASB #45 other post employment benefits. As of June 30, 2009,
the District has an unreserved-undesignated fund balance of $2,532,904.
Capital Reserve Fund – The 2008-09 fiscal year operations included an interfund transfer from the
General Fund in the amount of $627,136. The transfer provided for the future purchase of school
buses and capital improvements throughout the District facilities
Capital Projects Funds – The District borrowed $9,750,000 of “Non-Grandfathered” debt. These
funds were used to partially finance renovations to the high school, middle school, transportation and
maintenance facility, as well as the District administrative offices. These projects are expected to
conclude in the 2010-2011 school year.
Business-Type Activities
Food Service Fund – The Food Service operations experienced net loss of $11,512 during the 2008-
2009 fiscal year, which included capital contributions of $14,690 and depreciation expense of
$32,542. Lunch and ala carte prices were increased in the 2008-2009 fiscal year to provide
additional revenue to support operations.
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Government-wide Statements
Statement of Net Assets
The following table reflects the Condensed Statement of Net Assets.
2009 2008
Govern- Business- Govern- Business-
mental Type mental Type
Activities Activities Total (1) Activities Activities Total (1)
Current & Other Assets $ 17,934,478 $ 81,343 $ 18,002,769 $ 21,152,430 $ 67,605 $ 21,194,111
Non-Current Assets 54,015,615 266,283 54,281,898 42,702,766 302,466 43,005,232
Total Assets $ 71,950,093 $ 347,626 $ 72,284,667 $ 63,855,196 $ 370,071 $ 64,199,343
Current Liabilities 4,913,612 43,519 4,944,079 7,307,215 57,754 7,339,045

Non-Current Liabilities 47,270,322 4,153 47,274,475 40,124,150 4,153 40,128,303
Total Liabilities 52,183,934 47,672 52,218,554 47,431,365 61,907 47,467,348
Net Assets:
Invested in Capital Assets,
net of related debt 13,060,276 266,283 13,326,559 11,273,746 302,466 11,576,212
Restricted 385,710 - 385,710 69,017 - 69,017
Unrestricted 6,320,173 33,671 6,353,844 5,081,068 5,698 5,086,766
Total Net Assets 19,766,159 299,954 20,066,113 16,423,831 308,164 16,731,995
Total Liabilities and Net Assets $ 71,950,093 $ 347,626 $ 72,284,667 $ 63,855,196 $ 370,071 $ 64,199,343
(1) Internal balances are eliminated in the total column as they do not represent assets or liabilities of
the total District.
Most of the District’s net assets are invested in capital assets (buildings, land and equipment). The
District’s restricted net assets are for capital projects, retirement of long-term debt and other restrictions.
The remaining unrestricted net assets are a combination of reserved, designated and undesignated
amounts. The reserved and designated balances are amounts set-aside to fund the next year’s
appropriations, future PSERS and GASB #45 obligations, future medical rate increases, capital projects,
and buses as planned by the District.
The Changes in Net Assets takes the information from the Statement of Activities and rearranges it slightly
to present the total revenues and expenses and increases (decreases) in net assets for the year.
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Statement of Activities
The following table reflects the revenues and expenses for the current period.
2009 2008
Govern- Business- Govern- Business-
mental Type mental Type
REVENUES Activities Activities Total Activities Activities Total
Program revenues:
Charges for services $ 88,859 $ 668,021 756,880 $ 109,794 $ 707,963 817,757
Operating grants & contributions 4,525,119 251,392 4,771,821 4,930,604 235,612 5,166,216
Capital grants & contributions 642,728 - 642,728 419,351 - 419,351
General revenues: -
Property taxes 20,665,813 - 20,665,813 19,217,069 - 19,217,069
Other taxes 2,393,833 - 2,393,833 2,654,574 - 2,654,574
Grants, subsidies & contributions, 5,979,894 5,979,894 5,162,852 5,162,852
not restricted 645,408 - 645,408 - - -
Investment earnings 85,818 616 86,434 1,199,678 806 1,200,484
Other - - 71,596 - 71,596
Gain (Loss) on sale of capital assets (2,205) (3,642) (5,847) 4,000 - 4,000
Extraordinary items - - - - - -
TOTAL REVENUES 35,025,267 916,387 35,936,964 33,769,518 944,381 34,713,899
EXPENSES
Instruction 17,343,247 - 17,343,247 17,706,139 - 17,706,139
Instructional student support 2,357,861 - 2,357,861 2,189,817 - 2,189,817
Admin. & Fin'l support services 2,791,748 - 2,791,748 2,840,171 - 2,840,171
Oper. & Maint. of plant svcs. 3,731,320 - 3,731,320 3,131,402 - 3,131,402
Pupil Transportation 2,286,075 - 2,286,075 2,110,620 - 2,110,620
Student activities 801,323 - 801,323 648,596 - 648,596
Community services 5,727 - 5,727 5,000 - 5,000
Debt Service 1,766,460 - 1,766,460 1,595,591 - 1,595,591
Unallocated depreciation expense 589,178 - 589,178 581,196 - 581,196
Proprietary Funds - 934,597 934,597 - 957,788 957,788
TOTAL EXPENSES 31,672,939 934,597 32,607,536 30,808,532 957,788 31,766,320
Income (Loss) Before Contributions 3,352,328 (18,210) 3,334,118 2,960,986 (13,407) 2,947,579
Transfers In (Out) (10,000) 10,000 - (42,932) 42,932 -
Change in Net Assets 3,342,328 (8,210) 3,334,118 2,918,054 29,525 2,947,579
Total Net Assets - Beginning 16,423,831 308,164 16,731,995 13,505,777 278,639 13,784,416
Total Net Assets - Ending $ 19,766,159 $ 299,954 $ 20,066,113 $ 16,423,831 $ 308,164 $ 16,731,995
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THE DISTRICT FUNDS

Governmental Funds
As of June 30, 2009, the governmental funds reported a combined fund balance of $14,083,886, which
decreased from the prior year of $1,023,088 (or - 6.8%). The decrease in the combined governmental fund
balance is primarily attributable to a completion of construction projects. As of June 30, 2009, the Capital
Projects fund balance decreased to $6,914,697 as of June 30, 2009. As of June 30, 2009, the Capital
Reserve fund balance was $1,465,859. The General Fund experienced an $809,568 net increase in fund
balance.
CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets
As of June 30, 2009, the District had $53,688,996 invested in a broad range of capital assets including
land, buildings, furniture and equipment, which represents a net increase (additions less retirements and
depreciation) of $11,142,057 or 26.2% from the end of last year. Detailed information regarding capital
asset activity is included in the notes to the basic financial statements. (Note 5).
Debt outstanding
As of June 30, 2009, the District had $48,205,000 in debt (bonds and notes) outstanding compared to
$40,685,538 as of June 30, 2008. This represents an increase of $7,519,462 or 18.5%. Other obligations
include accrued vacation pay and sick leave for specific employees of the District.
More detailed information regarding our long-term liabilities is included in the notes to the basic financial
statements. (Note 5).
ECONOMIC CONSIDERATIONS
The District expects minimal growth in real estate assessed value due to the economic conditions of
reduced sales of existing properties and delays in new construction. The District expects decreased
earned income tax revenues. The District has committed to certain additions, renovations, alterations and
improvements to District facilities including the high school, middle school, transportation and
maintenance, and the District administrative offices. The District will be refinancing the July 2009
borrowing of an additional $9.175 million by December 2009, to finance the costs of these projects.
Beginning January 1, 2009 the District entered into contract negotiations with the professional employees.
As of June 30, 2009, the association and the School board continued to meet on development of a new
contract.
During 2008-2009 and 2009-2010 the District stayed within the adjusted ECI/SAWW and did not utilize
any exceptions. However, it may be necessary for the District to exceed the identified ECI/SAWW for the
2010-2011 year through the utilization of allowable exceptions.
CONTACTING THE DISTRICT FINANCIAL MANAGEMENT
Our financial report is designed to provide our citizens, taxpayers, parents, students, investors and
creditors with a general overview of the District’s finances and to show the Board’s accountability for the
money the District receives. If you have questions about this report or wish to request additional financial
information, please contact Catherine A. Linde, Business Administrator, at Northwestern Lehigh School
District, 6493 Route 309, New Tripoli, PA 18066, (610) 298-8661.
-17-
-18-
B A S I C F I N A N C I A L S T A T E M E N T S
Northwestern Lehigh School District
As of June 30, 2009
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,850,373 $ 57,166 $ 11,907,539
Investments 4,000,000 - 4,000,000
Receivables, net 683,558 - 683,558
Internal Balances 13,052 - - (1)
Due from Component Unit - - -
Due From Other Governments 896,145 8,330 904,475
Other Receivables 228,934 481 229,415
Inventories 226,231 12,028 238,259
Prepaid Expenses 34,023 3,338 37,361
Other Current Assets 2,162 - 2,162
TOTAL CURRENT ASSETS 17,934,478 81,343 18,002,769
------------- ------------- -------------
NON-CURRENT ASSETS
Restricted Cash and Cash Equivalents 8,000 - 8,000
Land 406,148 - 406,148
Site Improvements (net of depreciation) 292,449 - 292,449
Building and Bldg. Improvements (net of depreciation) 20,343,416 86,365 20,429,781
Furniture and Equipment (net of depreciation) 1,252,661 179,918 1,432,579
Construction in Progress 31,128,039 - 31,128,039
Bond Issue Costs (net of amortization) 584,902 - 584,902
TOTAL NON-CURRENT ASSETS 54,015,615 266,283 54,281,898
TOTAL ASSETS $ 71,950,093 $ 347,626 $ 72,284,667
LIABILITIES
CURRENT LIABILITIES:
Internal Balances $ - $ 13,052 $ - (1)
Due to other governments 258,998 909 259,907
Due to Primary Government - - -
Accounts Payable 540,338 359 540,697
Judgment Payable - - -
Current Portion of Long-Term Obligations 1,774,530 - 1,774,530
Accrued Salaries and Benefits 1,736,709 16,051 1,752,760
Payroll Deductions and Withholdings 42,141 - 42,141
Deferred Revenue 10,543 13,148 23,691
Other Current Liabilities 550,353 - 550,353
TOTAL CURRENT LIABILITIES 4,913,612 43,519 4,944,079
NON-CURRENT LIABILITIES:
Bonds and Notes Payable 46,237,036 - 46,237,036
Extended Term Financing Agreements Payable - - -
Lease Purchase Obligations - - -
Long-Term Portion of Compensated Absences 698,708 - 698,708
Other Retirement Benefits 104,527 4,153 108,680
Net OPEB Obligation 230,051 - 230,051
TOTAL LIABILITIES 52,183,934 47,672 52,218,554
NET ASSETS
Invested in capital assets, net of related debt 13,060,276 266,283 13,326,559
RESTRICTED FOR:
Retirement of Long-Term Debt - - -
Capital Projects - - -
Other Restrictions 385,710 - 385,710
Unrestricted (deficit) 6,320,173 33,671 6,353,844
TOTAL NET ASSETS 19,766,159 299,954 20,066,113
TOTAL LIABILITIES AND NET ASSETS $ 71,950,093 $ 347,626 $ 72,284,667
The Accompanying Notes are an integral part of these financial statements.

(1) Internal balances represent the amount owed to or from the two types of activities within the Primary Government. Since internal balances do not
represent assets or liabilities of the total Primary Government, their balances are eliminated in the "total" column (GASB Statement No. 34, para. 58).
-18-
Statement of Activities
PROGRAM REVENUES NET (EXPENSE) REVENUE

OPERATING CAPITAL AND CHANGES IN NET ASSETS
CHARGES FOR GRANTS AND GRANTS AND GOVERNMENTAL BUSINESS-TYPE
FUNCTION/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES ACTIVITIES TOTAL
GOVERNMENTAL ACTIVITIES:
Instruction $ 17,343,247 $ 16,162 $ 3,014,496 $ - $ (14,312,589) $ - $ (14,312,589)
Instructional Student Support 2,357,861 - 193,175 - (2,164,686) - (2,164,686)
Admin. & Fin'l Support Services 2,791,748 - 103,511 - (2,688,237) - (2,688,237)
Oper. & Maint. Of Plant Svcs. 3,731,320 - 81,964 - (3,649,356) - (3,649,356)
Pupil Transportation 2,286,075 - 1,107,726 - (1,178,349) - (1,178,349)
Student activities 801,323 72,697 23,520 - (705,106) - (705,106)
Community Services 5,727 - 727 - (5,000) - (5,000)
Interest on Long-Term Debt 1,766,460 - - 642,728 (1,123,732) - (1,123,732)
Unallocated Depreciation Expense 589,178 - - - (589,178) - (589,178)
TOTAL GOVERNMENTAL ACTIVITIES 31,672,939 88,859 4,525,119 642,728 (26,416,233) - (26,416,233)
BUSINESS-TYPE ACTIVITIES:
Food Services 919,630 650,328 251,278 - - (18,024) (18,024)
Other Enterprise Funds 14,967 17,693 114 - - 2,840 2,840
TOTAL PRIMARY GOVERNMENT $ 32,607,536 $ 756,880 $ 4,776,511 $ 642,728
$ (26,416,233) $ (15,184) $ (26,431,417)
GENERAL REVENUES:
Property taxes. Levied for general purposes, net $ 20,665,813 $ - $ 20,665,813
Taxes levied for specific purposes 2,393,833 - 2,393,833
Grants, subsidies, & contributions not restricted 5,979,894 - 5,979,894
Investment Earnings 645,408 616 646,024
Miscellaneous Income 85,818 - 85,818
Special item - Gain (Loss) on sale of capital assets (2,205) (3,642) (5,847)
Extraordinary Items - - -
Transfers (10,000) 10,000 -
TOTAL GENERAL REVENUES, SPECIAL ITEMS,
EXTRAORDINARY ITEMS, AND TRANSFERS 29,758,561 6,974 29,765,535
CHANGE IN NET ASSETS 3,342,328 (8,210) 3,334,118
NET ASSETS - BEGINNING 16,423,831 308,164 16,731,995
NET ASSETS - ENDING $ 19,766,159 $ 299,954 $ 20,066,113
-19-
Balance Sheet
Governmental Funds
As of June 30, 2009
NON-MAJOR TOTAL
CAPITAL CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL RESERVE PROJECT FUNDS FUNDS
ASSETS
Cash and cash equivalents $ 7,214,608 $ 1,465,859 $ 3,177,905 $ - $ 11,858,372
Investments - - 4,000,000 - 4,000,000
Taxes Receivable, net 726,005 - - - 726,005
Due from other funds 19,138 - - - 19,138
Due from Other Governments 672,801 - - - 672,801
Due from Component Unit - - - - -
Other Receivables 149,428 - 73,421 - 222,849
Inventories - - - - -
Prepaid Expenditures 34,023 - - - 34,023
Other Current Assets 2,162 - - - 2,162
TOTAL ASSETS $ 8,818,165 $ 1,465,859 $ 7,251,326 $ - $ 17,535,350
LIABILITIES AND FUND BALANCES

LIABILITIES:
Due to Other Funds $ 359 $ - $ - $ - $ 359
Due to Other Governments 258,998 - - - 258,998
Accounts Payable 184,092 - 333,033 - 517,125
Judgment Payable - - - - -
Current Portion of Long-Term Debt 149,530 - - - 149,530
Accrued Salaries and Benefits 1,736,709 - - - 1,736,709
Payroll Deductions and Withholdings 43,919 - - - 43,919
Deferred Revenues 736,548 - - - 736,548
Other Current Liabilities 4,680 - 3,596 - 8,276
TOTAL LIABILITIES 3,114,835 - 336,629 - 3,451,464
------------- ------------ ------------ ------------ ------------
FUND BALANCES:
Standard Fund Balance Reserves 34,023 - - - 34,023
Reserve for Next Year Appropriations - - - - -
Specific Fund Balance Reserves 1,381,403 - - - 1,381,403
Unreserved-Designated Fund Balances 1,755,000 - - - 1,755,000
Unreserved-Undesignated Fund Balances - -
- General Fund 2,532,904 - - - 2,532,904
- Capital Reserve Fund - 1,465,859 - - 1,465,859
- Capital Projects Fund - - 6,914,697 - 6,914,697
TOTAL FUND BALANCES 5,703,330 1,465,859 6,914,697 - 14,083,886
TOTAL LIABILITIES AND FUND BALANCES $ 8,818,165 $ 1,465,859 $ 7,251,326 $ - $ 17,535,350
-20-
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
As of June 30, 2009
TOTAL FUND BALANCES - GOVERNMENTAL FUNDS $ 14,083,886
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 as assets in governmental
funds. The cost of the assets is $66,549,103 and the accumulated
depreciation is $13,126,390. 53,422,713
Additional receivables established that do not meet the availability

criteria reflected in the fund financial statements. This amount
represents the difference between the prior year receivables and
the current year receivables established under the accrual basis of
accounting. 223,344
Property taxes receivable will be collected this year, but are not
available soon enough to pay for the current period's expenditures
and therefore are deferred in the funds. 683,558
The governmental funds follow the purchase method of inventory;

therefore no inventory is reflected on the balance sheet. However,
the statement of net assets uses the consumption method of
inventory. 226,231
Long-term liabilities, including bonds payable, are not due and

payable in the current period and therefore are not reported as
liabilities in the funds. Long-term liabilities at year end consist of:
Bonds payable $ (47,277,134)
Accrued interest on the bonds (540,299)
Accounts Payable (22,854)
Compensated absences (698,708)
Other Retirement Benefits (104,527)
Net OPEB Obligation (230,051) (48,873,573)
TOTAL NET ASSETS - GOVERNMENTAL ACTIVITIES $ 19,766,159
-21-
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
NON-MAJOR TOTAL
CAPITAL CAPITAL GOVERNMENTAL GOVERNMENTAL
GENERAL RESERVE PROJECT FUNDS FUNDS
REVENUES
Local Sources $ 23,905,735 $ 25,167 $ 232,227 $ - $ 24,163,129
State Sources 10,298,922 - - - 10,298,922
Federal Sources 193,005 - - - 193,005
TOTAL REVENUES 34,397,662 25,167 232,227 - 34,655,056
------------ ------------ ----------- ------------ ------------
EXPENDITURES
Instruction 17,901,835 - - - 17,901,835
Support Services 10,594,531 - 175,565 - 10,770,096
Operation of Non-Instructional Services 718,695 - - - 718,695
Capital Outlay - 503,286 11,715,640 - 12,218,926
Debt Service 3,742,814 - - - 3,742,814
TOTAL EXPENDITURES 32,957,875 503,286 11,891,205 - 45,352,366
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,439,787 (478,119) (11,658,978) - (10,697,310)
OTHER FINANCING SOURCES (USES)

Bond Proceeds - - 9,750,000 - 9,750,000
Refunding Bond Proceeds - - - - -
Bond Discount - - (65,778) - (65,778)
Interfund Transfers In 6,917 627,136 - - 634,053
Sale/Compensation for Fixed Assets - - - - -
Payment to bond refunding escrow agent - - - - -
Refunds of Prior Year Receipts - - - - -
Operating Transfers Out (637,136) - (6,917) - (644,053)
TOTAL OTHER FINANCING SOURCES (USES) (630,219) 627,136 9,677,305 - 9,674,222
SPECIAL/EXTRAORDINARY ITEMS
Special Items - - - -
Extraordinary Items - - - - -
NET CHANGE IN FUND BALANCES 809,568 149,017 (1,981,673) - (1,023,088)
FUND BALANCES - BEGINNING 4,893,762 1,316,842 8,896,370 - 15,106,974
$ 5,703,330 $ 1,465,859 $ 6,914,697 $ - $ 14,083,886

FUND BALANCES - ENDING
-22-
Reconciliation of the Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balance
to the Statement of Activities
NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS $ (1,023,088)
Amounts reported for governmental activities in the statement of

activities are different because:
Governmental funds report capital outlays 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 capital outlays exceeded depreciation in the current period.
Depreciation expense $ 884,117
less - capital outlays 12,064,564 11,180,447
Some of the capital assets acquired this year were financed with capital
leases. The amount financed by the leases is reported in the governmental
funds as a source of financing. On the other hand, the capital leases are
not revenues in the statement of activities, but rather constitute long-term
liabilities. -
In the statement of activities, only the gain on the sale of the capital assets
is reported, whereas in the governmental funds, the proceeds from the sale
increase financial resources. Thus, the change in net assets differs from
the change in fund balance by the cost of fixed assets sold. (2,205)
Because some property taxes will not be collected for several months after
the District's fiscal year ends, they are not considered as "available"
revenues in the governmental funds. Deferred revenues decreased by this
amount this year. 149,073
Repayment of bond principal is an expenditure in the governmental funds,

but the repayment reduces long-term liabilities in the statement of net
assets. 2,230,538
In the statement of activities, certain operating expenses--compensated

absences (vacations) 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. This amount represents the difference between
the amount earned versus the amount used. 398,157
SUB-TOTAL IN CHANGES BETWEEN BASIS OF ACCOUNTING 12,932,922
-23-
Reconciliation of the Governmental Funds
to the Statement of Activities
SUB-TOTAL IN CHANGES BETWEEN BASIS OF ACCOUNTING

(CONT'D) $ 12,932,922
Interest on long-term debt in the statement of activities differs from the

amount reported in the governmental funds because 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, interest expense
is recognized as the interest accrues, regardless of when it is due. This
would include accumulated interest accreted on capital appreciation bonds.
The additional interest accrued in the statement of activities over the
amount due is shown here. (20,341)
In the statement of activities, certain operating revenues are recognized

when earned versus the revenues using the modified accrual basis of
accounting in the fund statements that are recognized when the funds are
available. As such, the amount shown here represents the difference
between earned revenues and revenues that are earned, but not available. 223,344
Bond and Note proceeds provide current financial resources to

governmental funds, but issuing debt increases long-term liabilities in the
statement of assets. Refunding bond issues becomes a use of current
financial resources in governmental funds, but refundings represent the
difference between bond proceeds and refunding payments made to paying
agents. (9,750,000)
The governmental funds use the purchase method of inventory, where all
items purchased are charged to expenditures. However, the statement of
activities is reflected on the consumption method of recording inventory type
items; therefore, this adjustment reflects the inventory difference. (43,597)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 3,342,328
-24-
Proprietary Funds
As of June 30, 2009
FOOD NON-MAJOR
SERVICE FUNDS TOTAL
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,196 $ 50,970 $ 57,166
Investments - - -
Due from other funds 95 - 95
Due From Other Governments 8,330 - 8,330
Other Receivables 386 - 386
Inventories 12,028 - 12,028
Prepaid expenses 3,338 - 3,338
Other Current Assets - - -
TOTAL CURRENT ASSETS 30,373 50,970 81,343
----------- ----------- -----------
NON-CURRENT ASSETS:
Building & Bldg. Improvements (net) 86,365 - 86,365
Machinery & Equipment (net) 179,918 - 179,918
Other Long-Term Receivables - - -
TOTAL NON-CURRENT ASSETS 266,283 - 266,283
TOTAL ASSETS $ 296,656 $ 50,970 $ 347,626
LIABILITIES
CURRENT LIABILITIES:
Due to Other Funds $ 13,052 $ - $ 13,052
Due to Other Governments - 909 909
Accounts Payable 245 114 359
Current Portion of Long-Term Debt - - -
Accrued Salaries and Benefits 16,051 - 16,051
Payroll Deductions and Withholdings - - -
Deferred Revenue 11,818 1,330 13,148
TOTAL CURRENT LIABILITIES 41,166 2,353 43,519
----------- ----------- -----------
NON-CURRENT LIABILITIES:
Long-Term Portion of Compensated Absences - - -
Other Retirement Benefits 4,153 - 4,153
TOTAL NON-CURRENT LIABILITIES 4,153 - 4,153
TOTAL LIABILITIES 45,319 2,353 47,672
----------- ----------- -----------
NET ASSETS
Invested in capital assets, with no related debt 266,283 - 266,283
Restricted for Legal Purposes - - -
Unrestricted (14,946) 48,617 33,671
TOTAL NET ASSETS 251,337 48,617 299,954
TOTAL LIABILITIES AND NET ASSETS $ 296,656 $ 50,970 $ 347,626
-25-
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
FOOD NON-MAJOR
SERVICE FUNDS TOTAL
OPERATING REVENUES:
Food Service Revenue $ 632,998 $ 11,708 $ 644,706
Charges for Services - - -
Other Operating Revenues 17,330 5,985 23,315
TOTAL OPERATING REVENUES 650,328 17,693 668,021
----------- ----------- -----------
OPERATING EXPENSES:
Salaries 290,395 1,940 292,335
Employee benefits 92,014 240 92,254
Purchased Professional and Technical Services - - -
Purchased Property Service 32,899 3,790 36,689
Other Purchased Services 4,114 614 4,728
Supplies 462,708 8,383 471,091
Depreciation 32,542 - 32,542
Dues and Fees - - -
Claims and Judgments - - -
Other Operating Expenses 4,958 - 4,958
TOTAL OPERATING EXPENSES 919,630 14,967 934,597
OPERATING INCOME (LOSS) (269,302) 2,726 (266,576)

----------- ----------- -----------
NON-OPERATING REVENUES (EXPENSES)

Earnings on investments 154 462 616
Contributions and Donations - - -
Gain/Loss on Sale of Fixed Assets (3,642) - (3,642)
State Sources 42,533 114 42,647
Federal Sources 204,055 - 204,055
Interest Expenses - - -
TOTAL NON-OPERATING REVENUES (EXPENSES) 243,100 576 243,676
INCOME (LOSS) BEFORE CONTRIBUTIONS (26,202) 3,302 (22,900)
Capital contributions 4,690 - 4,690

Transfers in (out) 10,000 - 10,000
CHANGES IN NET ASSETS (11,512) 3,302 (8,210)
TOTAL NET ASSETS - BEGINNING 262,849 45,315 308,164
TOTAL NET ASSETS - ENDING $ 251,337 $ 48,617 $ 299,954
-26-
Statement of Cash Flows
Proprietary Funds
As of June 30, 2009
FOOD NON-MAJOR
SERVICE FUNDS TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Users $ 629,078 $ 11,708 $ 640,786
Cash Received from Assessments made to Other Funds - - -
Cash Received from Earnings on Investments - - -
Cash Received from Other Operating Revenue 21,082 5,985 27,067
Cash Payments to Employees for Services (386,910) (2,180) (389,090)
Cash Payments for Insurance Claims - - -
Cash Payments to Suppliers for Goods and Services (468,370) (11,774) (480,144)
Cash Payments to Other Operating Expenses (4,958) - (4,958)
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (210,078) 3,739 (206,339)
------------ ------------ ------------
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Local Sources - - -
State Sources 42,263 114 42,377
Federal Sources 158,322 - 158,322
Notes and Loans Received - - -
Interest Paid on Notes/Loans - - -
Operating Transfers In (Out) 10,000 - 10,000
NET CASH PROVIDED BY (USED FOR) NON-CAPITAL FINANCING ACTIVITIES 210,585 114 210,699
------------ ------------ ------------
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Facilities Acquisition/Const./Improvement Svcs. - - -
Capital Contributions 4,690 4,690
Gain/Loss on Sale of Fixed Assets (Proceeds) - - -
NET CASH PROVIDED BY (USED FOR) CAPITAL AND RELATED FINANCING ACTIVITIES 4,690 - 4,690
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Earnings on Investments 153 462 615
Purchase of Investment Securities/Deposits to Investment Pools - - -
Withdrawals from Investment Pools - - -
Proceeds from Sale and Maturity of Investment Securities - - -
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES 153 462 615
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,350 4,315 9,665
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 846 46,655 47,501
CASH AND CASH EQUIVALENTS - END OF YEAR $ 6,196 $ 50,970 $ 57,166
-27-
Statement of Cash Flows
Proprietary Funds
As of June 30, 2009
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
FOOD NON-MAJOR
SERVICE FUNDS TOTAL
OPERATING INCOME (LOSS) $ (269,302) $ 2,726 (266,576)
------------ ------------ ------------
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO NET CASH

PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Depreciation and Net Amortization 32,542 - 32,542
Provision for Uncollectible Accounts - - -
Donated Commodities Used 42,711 - 42,711
CHANGE IN ASSETS AND LIABILITIES:

(Increase) Decrease in Accounts Receivable (73) - (73)
(Increase) Decrease in Advances from Other Funds (95) - (95)
(Increase) Decrease in Inventories (613) - (613)
(Increase) Decrease in Prepaid Expenses - - -
(Increase) Decrease in Other Current Assets - - -
Increase (Decrease) in Accounts Payable 65 1,023 1,088
Increase (Decrease) in Accrued Salaries and Benefits (4,501) - (4,501)
Increase (Decrease) in Advances to Other Funds (12,872) - (12,872)
Increase (Decrease) in Deferred Revenue 2,060 (10) 2,050
TOTAL ADJUSTMENTS 59,224 1,013 60,237
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ (210,078) $ 3,739 $ (206,339)
-28-
Fiduciary Funds
As of June 30, 2009
PENSION AND
PRIVATE OTHER EMPLOYEE
PURPOSE BENEFIT AGENCY
TRUST TRUST FUNDS
ASSETS
Cash and cash equivalents $ 14,722 $ - $ 122,409
Investments 113,000 - -
Due from Other Funds - - 359
Other Receivables 1,033 - 624
Prepaid Expenses - - -
Other Current Assets - - -
TOTAL ASSETS $ 128,755 $ - $ 123,392
LIABILITIES
Accounts Payable $ - $ - $ 26,832
Intergovernmental Payable -
Due to Other Funds - - 6,181
Due to Student Clubs - - 89,894
Other Current Liabilities - - 485
TOTAL LIABILITIES - - 123,392
NET ASSETS
Restricted - - -
Unrestricted 128,755 - -
TOTAL NET ASSETS $ 128,755 $ - $ -
-29-
Statement of Changes in Net Assets
Fiduciary Funds
PENSION AND
OTHER
PRIVATE- EMPLOYEE
PURPOSE BENEFIT
TRUST FUND TRUST FUNDS
ADDITIONS
Contributions $ 10,894 $ -
Transfers from other funds 9 -
Investment Earnings:
Interest and Dividends 3,604 -
Net increase (decrease) in fair value of investments - -
Less investment expense - -
TOTAL ADDITIONS 14,507 -
------------ -------------
DEDUCTIONS
Transfers to other funds 9 -
Administrative charges -
Scholarships 15,750 -
TOTAL DEDUCTIONS 15,759 -
CHANGE IN NET ASSETS (1,252) -
NET ASSETS - BEGINNING OF YEAR 130,007 -
NET ASSETS - END OF YEAR $ 128,755 $ -
-30-
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -
General Fund
VARIANCE WITH
ACTUAL FINAL BUDGET BUDGET TO ACTUAL
BUDGETED AMOUNTS (BUDGETARY POSITIVE GAAP AMOUNTS
ORIGINAL FINAL BASIS) (NEGATIVE) DIFFERENCE GAAP BASIS
REVENUES
Local Sources $ 23,372,584 $ 23,372,584 $ 23,905,735 $ 533,151 $ - $ 23,905,735
State Sources 10,561,495 10,561,495 10,298,922 (262,573) - 10,298,922
Federal Sources 230,637 230,637 193,005 (37,632) - 193,005
TOTAL REVENUES 34,164,716 34,164,716 34,397,662 232,946 - 34,397,662
----------- ----------- ------------ ----------- ----------- -----------
EXPENDITURES
Regular Instruction 13,280,595 13,062,130 12,640,829 421,301 - 12,640,829
Special Programs 4,385,913 4,420,242 4,111,249 308,993 - 4,111,249
Vocational Programs 924,456 919,056 867,258 51,798 - 867,258
Other Instructional Programs 14,748 14,748 2,501 12,247 - 2,501
Adult Education Programs 4,810 8,563 6,066 2,497 - 6,066
Community/Junior College Ed. Programs 274,544 278,294 273,932 4,362 - 273,932
Pupil Personnel Services 1,024,030 1,123,881 1,116,140 7,741 - 1,116,140
Instructional Staff Services 902,778 1,032,354 974,089 58,265 - 974,089
Administrative Services 1,811,537 1,806,812 1,711,717 95,095 - 1,711,717
Pupil Health 254,654 256,886 240,139 16,747 - 240,139
Business Services 592,815 592,815 520,376 72,439 - 520,376
Operation & Maintenance of Plant Services 3,598,408 3,565,339 3,461,401 103,938 - 3,461,401
Student Transportation Services 2,108,283 2,128,419 2,050,135 78,284 - 2,050,135
Central Support Services 434,749 514,001 486,614 27,387 - 486,614
Other Support Services 33,687 33,922 33,920 2 33,920
Student Activities 687,807 730,273 712,968 17,305 - 712,968
Community Services 6,084 6,814 5,727 1,087 - 5,727
Facilities, Acquisition and Construction - - - - - -
Debt Service 3,557,604 3,802,817 3,742,814 60,003 - 3,742,814
TOTAL EXPENDITURES 33,897,502 34,297,366 32,957,875 1,339,491 - 32,957,875
Excess (deficiency) of revenues over expenditures 267,214 (132,650) 1,439,787 1,572,437 - 1,439,787
----------- ----------- ------------ ----------- ----------- -----------
Proceeds From Extended Term Financing - - - - - -
Interfund Transfers In - - 6,917 6,917 - 6,917
Fund Transfers Out (787,000) (637,136) (637,136) - - (637,136)
Budgetary Reserve (250,000) - - - - -
TOTAL OTHER FINANCING SOURCES (USES) (1,037,000) (637,136) (630,219) 6,917 - (630,219)
Special Items - - - - - -
Extraordinary Items - - - - - -
NET CHANGE IN FUND BALANCE (769,786) (769,786) 809,568 1,579,354 - 809,568
FUND BALANCE - JULY 1, 2008 4,119,109 4,119,109 4,893,762 774,653 - 4,893,762
FUND BALANCE - JUNE 30, 2009 $ 3,349,323 $ 3,349,323 $ 5,703,330 $ 2,354,007 $ - $ 5,703,330

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Notes To Basic Financial Statements
Fiscal Year Ended June 30, 2009
Note 1 - Description of the School District and Reporting Entity
School District
The Northwestern Lehigh School District is located in New Tripoli, Pennsylvania. The District tax base
consists of the Townships of Heidelberg, Lowhill, Lynn, and Weisenberg.
The Northwestern Lehigh School District is a unit established, organized, and empowered by the
Commonwealth of Pennsylvania for the express purpose of carrying out, on the local level, the
Commonwealth’s obligation to public education, as established by the constitution of the Commonwealth
and by the School Law Code of the same (Article II; Act 150, July 8, 1968).
As specified under the School Law Code of the Commonwealth of Pennsylvania, this and all other school
districts of the state "shall be and hereby are vested as, bodies corporate, with all necessary powers to
carry out the provisions of this act" (Article II, Section 211).
Board of School Directors
The public school system of the Commonwealth shall be administered by a board of school directors, to
be elected or appointed, as hereinafter provided. At each election of school directors, each qualified voter
shall be entitled to cast one vote for each school director to be elected.
The Northwestern Lehigh School District is governed by a board of nine School Directors who are
residents of the School District and who are elected every two years, on a staggered basis, for a four-year
term.
The Board of School Directors has the power and duty to establish, equip, furnish, and maintain a
sufficient number of elementary, secondary, and other schools necessary to educate every person,
residing in such district, between the ages of six and twenty-one years, who may attend.
In order to establish, enlarge, equip, furnish, operate, and maintain any schools herein provided, or to pay
any school indebtedness which the school district is required to pay, or to pay any indebtedness that may
at any time hereafter be created by the school district, the board of school directors are vested with all the
necessary authority and power annually to levy and collect the necessary taxes required and granted by
the legislature, in addition to the annual State appropriation, and are vested with all necessary power and
authority to comply with and carry out any or all of the provisions of the Public School Code of 1949.
Administration
The Superintendent of Schools shall be the executive officer of the Board of School Directors and, in that
capacity shall administer the School District in conformity with Board policies and the School Laws of
Pennsylvania. The Superintendent shall be directly responsible to, and therefore appointed by, the Board
of School Directors. The Superintendent shall be responsible for the overall administration, supervision,
and operation of the School District.
The Director of Business and Fiscal Affairs, recommended by the Superintendent and appointed by the
Board of School Directors, shall supervise and coordinate all business aspects of the School District. In
this capacity, he or she shall be responsible to insure that all work accomplished by him/her, or by persons
under his/her supervision, is in the best interests of the Northwestern Lehigh School District. The Director
of Business and Fiscal Affairs is directly responsible to the Superintendent.
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Reporting Entity
A reporting entity is comprised of the primary government, component units, and other organizations that
are included to insure that the financial statements of the School District are not misleading. The primary
government consists of all funds, departments, boards, and agencies that are not legally separate from the
School District. For Northwestern Lehigh School District, this includes general operations, food service,
and student related activities of the School District.
Northwestern Lehigh School District is a municipal Corporation governed by an elected nine-member

board. As required by accounting principles, generally accepted in the United States of America, these
financial statements are to present Northwestern Lehigh School District (the primary government) and
organizations for which the primary government is financially accountable. The School District is
financially accountable for an organization if the School District appoints a voting majority of the
organization's governing board and (1) the School District is able to significantly influence the programs or
services performed or provided by the organization; or (2) the School District is legally entitled to or can
otherwise access the organization's resources; the School District is legally obligated or has otherwise
assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the
School District is obligated for the debt of the organization. Component units may also include
organizations that are financially dependent on the School District in that the School District approved the
budget, the issuance of debt, or the levying of taxes. Based upon the above criteria, the Northwestern
Lehigh Education Foundation is not considered to be a component unit of the School District.
Joint Ventures
Lehigh Career and Technical Institute
The School District is a participating member of the Lehigh Career and Technical Institute (LCTI). The
LCTI is run by a joint committee consisting of members from each participating district. No participating
district appoints a majority of the joint committee. The board of directors of each participating district must
approve the LCTI's annual operating budget. Each participating district pays a pro-rata share of the LCTI's
operating costs based on the number of students attending the LCTI for each district. The District's share
of the LCTI's operating costs for 2008-09 was $867,258.
On dissolution of the Lehigh Career and Technical Institute, the net assets of LCTI will be shared on a pro-
rata basis of each participating district's current market value of taxable real property as certified by the
Pennsylvania State Tax Equalization Board. However, the District does not have an equity interest in
LCTI as defined by GASB Statement No. 14, except for a residual interest in the net assets of LCTI upon
dissolution that should not be reported on the basic financial statements. Complete financial statements for
the LCTI can be obtained from the LCTI's administrative office at 2300 Main Street, Schnecksville, PA.
Lehigh-Carbon Community College
The District is a participating member of the Lehigh-Carbon Community College (LCCC). The LCCC is
run by a Board of Trustees elected by the participating member districts' boards of directors. No
participating district appoints a majority of the Board of Trustees. A vote of two-thirds of all member
districts shall be required for approval of the LCCC's annual operating budget. The amount of the annual
operating costs of the LCCC shall be apportioned among the member districts on the basis of the number
of full-time equivalent students enrolled in LCCC and residing in the respective geographical areas of each
of the member districts. The District's share of LCCC's operating costs for 2008-09 was $273,932.
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On dissolution of the Lehigh-Carbon Community College, the net assets of LCCC will be shared on a pro-
rata basis of each member district's current market value of taxable real property as certified by the
Pennsylvania State Tax Equalization Board.
However, the District does not have an equity interest in LCCC as defined by GASB Statement No. 14,
except for a residual interest in the net assets of LCCC upon dissolution that should not be reported on the
basic financial statements. Complete financial statements for the LCCC can be obtained from the LCCC's
administrative office at 2300 Main Street Schnecksville, PA.
Jointly Governed Organizations
The School District is a participating member of the Carbon-Lehigh Intermediate Unit (CLIU). The CLIU is
run by a joint committee consisting of members from each participating district. No participating district
appoints a majority of the joint committee. The boards of directors of the participating districts must
approve the CLIU's annual operating budget. However, the CLIU is self-sustaining by providing services
for fees to participating districts. The District has no on-going financial interest or responsibility in the
CLIU. The CLIU contracts with participating districts to supply special education services, computer
services, and acts as a conduit for certain federal programs.
Note 2 - Summary of significant accounting policies
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 (GASB) is the standard-setting body for governmental accounting and financial reporting. On June
15, 1987, the GASB issued a codification of the existing Governmental Accounting and Financial
Reporting Standards which, along with subsequent GASB pronouncements (Statements and
Interpretations), constitutes GAAP for governmental units. The School District also applies Financial
Accounting Standards Board (FASB) statements and interpretations issued on or before November 30,
1989, to its business-type activities and to its proprietary funds, provided they do not conflict with or
contradict GASB pronouncements. The more significant of these accounting policies are described below
and, where appropriate, subsequent pronouncements will be referenced.
A. Basis of Presentation
The School District's basic financial statements consist of government-wide statements, including a
statement of net assets, a statement of activities, and fund financial statements which provide a more
detailed level of financial information.
Government-wide Financial Statements The statement of net assets and the statement of activities
display information about the School District as a whole. These statements include the financial activities
of the primary government, except for fiduciary funds. The statements distinguish between those activities
of the School District that are governmental and those that are considered business-type activities. The
statement of net assets presents the financial condition of the governmental and business-type activities of
the School District at year-end. The statement of activities presents a comparison between direct
expenses and program revenues for each program or function of the School District's governmental
activities and for two business-type activities of the School District. Direct expenses are those that are
specifically associated with a service, program or department and therefore clearly identifiable to a
particular program. Program revenues include charges paid by the recipient of the goods or services
offered by the program, grants, and contributions that are restricted to meeting the operational or capital
requirements of a particular program interest earned on grants that is required to be used to support a
particular program. Revenues which are not classified as program revenues are presented as general
revenues of the School District, with certain limited exceptions. The comparison of direct expenses with
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program revenues identifies the extent to which each business activity or governmental function is self-
financing or draws from the general revenues of the School District.
Fund Financial Statements During the year, the School District segregates transactions related to
certain School District functions or activities in separate funds in order to aid financial management and to
demonstrate legal compliance. Fund financial statements are designed to present financial information of
the School District at this more detailed level. The focus of governmental and enterprise fund financial
statements is on major funds. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single column. The fiduciary funds are reported by type.
B. Fund Accounting
The School District uses funds to maintain its financial records during the year. A fund is defined as a
fiscal and accounting entity with a self balancing set of accounts. There are three categories of funds:
governmental, proprietary and fiduciary.
Governmental Funds Governmental funds are those through which most governmental functions
typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current
financial resources. Expendable assets are assigned to the various governmental funds according to the
purposes for which they may or must be used. Current liabilities are assigned to the fund from which they
will be paid. The difference between governmental fund assets and liabilities is reported as fund balance.
The following are the School District's major governmental funds:
General Fund
The General Fund is the general operating fund of the School District. It is used to account for all
financial resources, except those required to be accounted for in another fund.
Special Revenue Funds
The District has established a Capital Reserve Fund in accordance with the PA School Laws. This
fund is used to account for the proceeds of specific revenue sources as outlined by school laws that
are legally restricted to expenditures for specified purposes.
Capital Reserve Fund
This fund was created in accordance with Section 1432 of the Municipal Code. As such, the PA
Department of Education has decided this fund should be classified as a major fund regardless of
whether or not GASB’s major fund criteria are met.
Capital Project Funds
Capital Project Funds are used to account for financial resources to be used for the acquisition or
construction of major capital equipment and facilities (other than those financed by the proprietary
fund). The District has two Capital Project Funds with outstanding funds.
2004 Construction Fund
This fund received the proceeds of $3,000,000 from the issuance of General Obligation Note
Series A of 2004 ($500,000) and General Obligation Note – Series B of 2004 ($2,500,000).
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The purpose of this fund is to make renovations, alterations, and improvements to facilities
including the addition to the Middle School and certain capital equipment purchases. This
fund was fully expended this past fiscal year.
2008 Construction Fund – 32
This fund received the proceeds on the $9,000,000 General Obligation Bonds – Series of 2008 to
fund certain capital projects. This fund was fully expended this past fiscal year.
2008 Construction Fund – 35
This fund received the proceeds of $8,500,000 of General Obligation Notes – Series A of 2007 to
fund certain capital projects. This fund was fully expended this past fiscal year.
2008A Construction Fund – 33
This fund received the proceeds of $9,750,000 of General Obligation Bonds – Series A of 2008 to
fund certain capital projects.
Proprietary Funds Proprietary funds focus on the determination of changes in net assets, financial
position and cash flows and are classified as enterprise funds
Enterprise Funds Enterprise funds may be used to account for any activity for which a fee is
charged to external users for goods or services. The School District's major enterprise fund is:
Food Service Fund - This fund accounts for the financial transactions related to the food service
operations of the School District.
Fiduciary Funds Fiduciary funds reporting focuses on net assets and changes in net assets. The
fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private-
purpose trust funds and agency funds. Trust funds are used to account for assets held by the School
District under a trust agreement for individuals, private organizations, or other governments and are
therefore not available to support the School District's own programs. The School District's only trust fund
is a private purpose trust. Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations.
C. Measurement Focus
Government-wide Financial Statements The government-wide financial statements are prepared using
the economic resources measurement focus. All assets and all liabilities associated with the operation of
the School District are included on the statement of net assets.
Fund Financial Statements All governmental funds are accounted for using a flow of current financial
resources measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund
balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and
other financing uses) of current financial resources. This approach differs from the manner in which the
governmental activities of the government-wide financial statements are prepared. Governmental fund
financial statements therefore include reconciliations with brief explanations to better identify the relationship
between the government-wide statements and the statements for governmental funds.
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Like the government-wide statements, all enterprise funds are accounted for on a flow of economic
resources measurement focus. All assets and all liabilities associated with the operation of these funds
are included on the statement of net assets. The statement of revenues, expenses and changes in fund
net assets presents increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. The
statement of cash flows provides information about how the School District finances and meets the cash
flow needs of its enterprise activities.
D. Basis of Accounting
Basis of accounting determines when transactions are recorded in the financial records and reported on
the financial statements. Government-wide financial statements are prepared using the accrual basis of
accounting. Government funds use the modified accrual basis of accounting. Proprietary and fiduciary
funds also use the accrual basis of accounting. Differences in the accrual and the modified accrual basis
of accounting arise in the recognition of revenue, the recording of deferred revenue, and in the
presentation of expenses versus expenditures.
Revenues - Exchange and Non-Exchange Transactions. Revenue resulting from exchange

transactions, in which each party gives and receives essentially equal value, is recorded on the accrual
basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year
in which the resources are measurable and become available. Available means that the resources will be
collected within the current fiscal year or are expected to be collected soon enough thereafter to be used
to pay liabilities of the current fiscal year.
Non-exchange transactions, in which the School District receives value without directly giving equal value
in return, include property taxes, grants, entitlements and donations. Revenue from property taxes is
recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements and
donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility
requirements include timing requirements, which specify the year when the resources are required to be
used or the fiscal year when use is first permitted, matching requirements, in which the School District
must provide local resources to be used for a specified purpose, and expenditure requirements, in which
the resources are provided to the School District on a reimbursement basis. On a modified accrual basis,
revenue from non-exchange transactions must also be available before it can be recognized.
E. Budgetary Process
An operating 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.
In accordance with Act 1 of 2006, the Board shall annually, but not later than the first business meeting of
January, decide the budget option to be used for the following fiscal year. The Board shall approve either
the Accelerated Budget Process Option or the Board Resolution Option.
Accelerated Budget Process Option
Under this option, a preliminary budget must be prepared 150 days prior to the primary election. Under
this Option, the preliminary budget must be available for public inspection at least 110 days prior to the
primary election. The Board shall give public notice of its intent to adopt the preliminary budget at least 10
days prior to the adoption. The adoption must occur at least 90 days prior to the primary election.
If the preliminary budget exceeds the increase authorized by the Index, an application for an exception
may be filed with either a Court of Common Pleas with jurisdiction or PDE and made available for public
inspection. The Board may opt to forego applying for an exception by submitting a referendum question
seeking voter approval for a tax increase, in accordance with Act 1.
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The final budget shall include any necessary changes from the adopted preliminary budget. Any reduction
required as the result of the failure of referendum shall be clearly stated. The final budget shall be made
available for public inspection at least 20 days prior to final adoption. The Board shall annually adopt the
final budget by a majority vote of all members of the Board prior to June 30.
Board Resolution Option
Under the Board Resolution Option, the Board shall adopt a resolution that it will not raise the rate of any
tax for the following fiscal year by more than the Index. Such resolution shall be adopted no later than 110
days prior to the primary election. At least 30 days prior to adoption of the final budget the Board shall
prepare a proposed budget. The proposed budget shall be available for public inspection at least 20 days
prior to adoption of the budget. The Board shall give public notice of its intent to adopt at least 10 days
prior to adoption of the proposed budget. The Board shall annually adopt the final budget by a majority
vote of all members of the Board by June 30.
Legal budgetary control is maintained at the sub-function/major object level. The PA School Code allows
the School Board to make budgetary transfers between major function and major object codes only within
the last nine months of the fiscal year, unless there is a two-thirds majority of the Board approving the
transfer. 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.
The amounts reported as the original budgeted amounts in the budgetary statements reflect the amounts
in the PDE 2028 when the original appropriations were adopted. The amounts reported as the final
budgeted amounts in the budgetary statements reflect the amounts after all 2008-09 budget transfers.
Encumbrances
Any encumbrances outstanding at year-end do not represent GAAP expenditures or liabilities but
represent accounting controls. The General Fund Budget is maintained on the modified accrual basis of
accounting, except that budgetary basis expenditures include any encumbrances issued for goods or
services not received at year-end and not terminated.
The actual results of operations are presented in accordance with GAAP and the District’s accounting
policies do not recognize encumbrances as expenditures until the period in which the goods or services
are actually received and a liability is incurred. Any encumbrances are presented as a reservation for
encumbrances on the balance sheet of the General Fund. If budgetary encumbrances exist at year-end,
they are included in the fund financial statements to reflect actual revenues and expenditures on a
budgetary basis consistent with the District’s legally adopted budget.
F. Changes in Accounting Principles
During this past fiscal year, the District was required to implement the provisions of GASB Statement
No. 45 on Other Post Employment Benefits. The Net OPEB Obligation and disclosures are more
fully explained in Note 5.
G. Use of Estimates
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.
H. Assets, Liabilities, and Net Assets
Cash and Cash Equivalents
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For purposes of the Statement of Cash Flows, the Proprietary Fund type considers all highly liquid
investments with a maturity of three months or less, when purchased, to be cash equivalents.
Investments
In accordance with GASB Statement 31, investments are stated at fair value, except:
a) Non-participating interest earning investment contracts are recorded at amortized cost;

b) Money market investments and participating interest earning investment contracts that mature
within one year of acquisition are recorded at amortized cost; and,
c) Investments held in 2a7-like pools (Pennsylvania School District Liquid Asset Fund) are
recorded at the pool’s share price.
Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as "due to/from other funds". Any residual balances outstanding between
the governmental activities and business-type activities are reported in the government-wide financial
statements as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for appropriation
and are not expendable available financial resources.
Property Tax Levy
Property taxes, which were levied during the fiscal year ended June 30, 2009, are recognized as revenue
in the fund financial statements when received by the District during the fiscal year and also estimated to
be received by the District within sixty (60) days after the fiscal year ended.
Property taxes that were levied during the current fiscal year, which are not estimated to be received within
sixty (60) days after the fiscal year-end, are recorded as receivable and deferred revenue in the fund
financial statements.
In the government-wide financial statements, all property taxes levied during the fiscal year are recognized
as revenue, net of estimated uncollectible amount.
Inventories
On government-wide financial statements, inventories are presented at the lower of cost or market on a
first-in, first-out basis, and are expensed when used. A physical inventory taken at June 30, 2009, shows
$226,231 in the governmental activities column and $12,028 in the business-type activities column of the
government-wide statement of net assets.
Inventory type items in governmental funds utilize the purchase method; that is, they are charged to
expenditures when purchased. There is no inventory shown as of June 30, 2009; therefore, there is no
offsetting reservation of fund balance.
Inventory type items in Proprietary Funds use the consumption method, in which items are purchased for
inventory and charged to expenses when used. The District has the following Proprietary Funds: (1) Food
Service Fund and (2) Tiger Concession Fund. Inventory within these funds consists of donated
commodities, which are valued at U.S.D.A.'s approximate costs, supplies, and purchased food.
Inventories on hand at June 30, 2009, consist of:
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Purchased Food $ 7,109

Purchased Supplies 3,108
Donated Commodities 1,811
TOTAL $ 12,028
Prepaid Expenses
In both the government-wide and fund financial statements, prepaid expenses are recorded as assets in
the specific governmental fund in which future benefits will be derived.
Capital Assets
General capital assets are those assets not specifically related to activities reported in the proprietary
funds. These assets generally result from expenditures in the governmental funds. These assets are
reported in the governmental activities column of the government-wide statement of net assets, but are not
reported in the fund financial statements. Capital assets utilized by the enterprise funds are reported both
in the business-type activities column of the government-wide statement of net assets and in the
respective funds.
All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and
retirements during the year. Donated fixed assets are recorded at their fair market values as of the date
received. The School District maintains a capitalization threshold of two thousand ($2,000) dollars. The
School District does not possess any infrastructure. Improvements are capitalized; the costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are
not. Interest incurred during the construction of capital assets utilized by the enterprise funds is also
capitalized.
All reported capital assets except land, certain land improvements and construction in progress are
depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets.
Depreciation is computed using the straight-line method over the following useful lives:
Governmental Business-Type
Activities Activities
Description Estimated Lives Estimated Lives
Buildings and Improvements 25 -50 years 25 - 50 years
Land Improvements 20 years N/A
Furniture and Equipment 5 - 20 years 5 -20 years
Vehicles 8 years N/A
Compensated Absences
The School District reports compensated absences in accordance with the provisions of GASB No. 16,
"Accounting for Compensated Absences". Vacation benefits are accrued as a liability as the benefits are
earned if the employees' rights to receive compensation are attributable to services already rendered and
it is probable that the School District will compensate the employees for the benefits through paid time off
or some other means.
Sick leave benefits are accrued as a liability using the termination method. An accrual for earned sick
leave is made to the extent that it is probable that benefits will result in termination payments. The liability
is an estimate based on the School District's past experience of making termination payments.
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The entire compensated absence liability is reported on the government-wide financial statements.
For governmental funds, the current portion of unpaid compensated absences is the amount that is
normally expected to be paid using expendable available financial resources. In enterprise funds, the
entire amount of compensated absences is reported as a fund liability.
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities or proprietary fund type statement of net assets. Bond premiums and discounts, bond issuance
costs, and deferred amounts on refundings are deferred and amortized over the life of the bonds using
modification of the effective interest method. Bonds payable are reported net of the applicable bond
premium or discount and any deferred amount on refundings. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
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 while discounts and premiums on debt issuances are reported as other financing
uses and other financing sources, respectively. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as support service expenditures.
Reclassification
Certain amounts have been reclassified to conform to the June 30, 2009, presentation of government-
wide financial statements on the accrual basis of accounting versus the governmental fund financial
statements on the modified accrual basis.
Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets,
net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding
balances of any borrowings used for the acquisition, construction or improvement of those assets. Net
assets are reported as restricted when there are limitations imposed on their use either through the
enabling legislation adopted by a higher governmental authority or through external restrictions imposed
by creditors, grantors or laws or regulations of other governments.
The School District applies restricted resources first when an expense is incurred for purposes for which
both restricted and unrestricted net assets are available.
Fund Balance Reserves
The School District reserves those portions of fund equity which are legally segregated for specific future
use or which do not represent available expendable resources and therefore are not available for
appropriations for expenditures. Unreserved fund balance indicates that portion of fund equity which is
available for appropriation in future periods.
Contributions of Capital
Contributions of capital in proprietary fund financial statements arise from outside contributions of fixed
assets, or from grants or outside contributions of resources restricted to capital acquisition and
construction. The proprietary funds received $4,690 in capital contributions during the current year.
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Note 3 - Reconciliation of government-wide and fund financial statements
A. Explanation of certain differences between the governmental fund balance sheet and the
The governmental fund balance sheet includes a reconciliation between "fund balance -total governmental
funds" and "net assets - governmental activities" as reported in the government-wide statement of net
assets. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are
not due and payable in the current period and therefore are not reported in the funds". The details of this
$48,873,573 difference are:
Bonds and Notes payable $ 48,205,000

Less: Deferred charge on refunding (to be amortized as
interest expense) (298,064)
Less: Deferred charge for issuance costs (to be amortized
over life of debt) (584,902)
Less: Issuance discount (to be amortized as interest expense) (72,820)
Add: Issuance premium (to be amortized as a contra to
interest expense) 27,920
Accounts Payable 22,854
Accrued interest payable 540,299
Other Retirement Benefits 104,527
Compensated absences 698,708
Net OPEB Obligations 230,051
Net adjustment to reduce "fund balance - total governmental funds"

to arrive at "net assets - governmental activities" $ 48,873,573
B. Explanation of Differences between Governmental Funds Statement of Revenues, Expenditures

and Changes in Fund Balances and the Statement of Activities
Due to the differences in the measurement focus and basis of accounting used on the government
fund statements and district-wide statements certain financial transactions are treated differently.
The basic financial statements contain a full reconciliation of these items. Differences between the
governmental funds statement of revenues, expenditures and changes in fund balance and the
statement of activities fall into one of three broad categories.
The amounts shown in the columns on the following page represent:
a) Long-term revenue differences arise because governmental funds report revenues only when they
are considered "available", whereas the statement of activities reports revenues when earned.
Differences in long-term expenses arise because governmental funds report on a modified accrual
basis whereas the accrual basis of accounting is used on the statement of activities. The long-term
expenses reported below recognize the change in vested employee benefits.
b) Capital related differences include (1) the difference between proceeds for the sale of capital
assets reported on governmental fund statements and the gain or loss on the sale of assets
as reported on the statement of activities, and (2) the difference between recording an
expenditure for the purchase of capital items in the governmental fund statements, and
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capitalization and recording of depreciation expense on those items as recorded in the

statement of activities.
c) Long-term debt transaction differences occur because long-term debt proceeds are recorded
as revenue and both interest and principal payments are recorded as expenditures in the
governmental fund statements. In the statement of activities, long-term debt proceeds are
recorded as a liability; principal payments are recorded as a reduction of liabilities.
TOTAL LONG- LONG-TERM TOTAL FOR

GOVERN- TERM CAPITAL DEBT STATEMENT
MENTAL REVENUES/ RELATED TRANS- OF
FUNDS EXPENSES ITEMS ACTIONS ACTIVITIES
REVENUES AND OTHER SOURCES
LOCAL SOURCES:
Property Taxes #N/A $ 155,439 $ - $ - #N/A
Taxes levied for specific purposes #N/A (6,367) - - #N/A
Interest and investment earnings #N/A - - - #N/A
Miscellaneous #N/A - - - #N/A
Contributions and Donations #N/A - - - #N/A
Charges for Services #N/A - - - #N/A
Grants, subsidies & contributions not restricted #N/A - - - #N/A
Transfers In - - - - -
- - - -
INTERMEDIATE SOURCES: - - -
Charges for Services - - - - -
Operating grants and contributions - - - - -
STATE SOURCES: - - -
Operating and Capital grants and contributions #N/A 223,344 - - #N/A
FEDERAL SOURCES: - - -
Operating and Capital grants and contributions #N/A - - - #N/A
SPECIAL AND EXTRAORDINARY ITEMS: - - -
Extraordinary Item - Insurance Proceeds #N/A - #N/A
Proceeds from Bond/Note Issues #N/A - (9,750,000) #N/A
Gain or (Loss) on disposal of assets #N/A - (2,205) - #N/A
TOTAL REVENUES #N/A 372,416 (2,205) (9,750,000) #N/A
---------- ---------- ---------- ----------- -----------
EXPENDITURES/EXPENSES
Instruction #N/A (580,655) 22,067 - #N/A
Instructional Student Support #N/A 29,153 (1,660) - #N/A
Admin. & Fin'l Support Services #N/A 62,419 (23,298) (168,066) #N/A
Oper. & Maint. of Plant Svcs. #N/A 11,765 (18,916) - #N/A
Pupil Transportation #N/A 8,555 227,385 - #N/A
Student activities #N/A 91,349 (2,994) - #N/A
Community Services #N/A - - - #N/A
Capital Outlay #N/A - (11,949,356) - #N/A
Debt Service #N/A - - (2,042,132) #N/A
Transfers Out #N/A - - - #N/A
Depreciation - unallocated - - 589,178 - 589,178
TOTAL EXPENDITURES/EXPENSES #N/A (377,414) (11,157,594) (2,210,198) #N/A
NET CHANGE FOR THE YEAR #N/A $ 749,830 $ 11,155,389 $ (7,539,802) #N/A
Note 4 - Stewardship, Compliance, and Accountability
A. Compliance with finance related legal and contractual provisions
The District has no material violations of finance related legal and contractual provisions.
B. Deficit fund balance or net assets of individual funds
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No individual fund contains a deficit fund balance or net assets at June 30, 2009.
C. Excess of expenditures over appropriations in individual funds
No individual fund, which had a legally adopted budget, had an excess of expenditures over appropriations.
D. Budgetary compliance
The District's only legally adopted budget is for the General Fund. All budgetary transfers were made
within the last nine months of the fiscal year. The District cancels all purchase orders open at year-end;
therefore, it does not have any outstanding encumbrances at June 30, 2009. In addition, the District
includes a portion of the prior year's fund balance represented by unappropriated liquid assets remaining
in the fund as budgeted revenue in the succeeding year. The results of operations on a GAAP basis do
not recognize the fund balance allocation as revenue as it represents prior period's excess of revenues
over expenditures.
Note 5 - Detailed notes on all funds and activities
Assets
Cash
Custodial Credit Risk – Deposits
Custodial credit risk is the risk that, in the event of a bank failure, the government's deposits may not be
returned to it. The District does not have a policy for custodial credit risk. As of June 30, 2009,
$16,372,648 of the District's bank balance of $16,622,648 was exposed to custodial credit risk as follows:
Uninsured and uncollateralized $ -

Collateralized with securities held by the pledging financial institution -
Uninsured and collateral held by the pledging bank's trust department
not in the District's name 16,372,648
TOTAL $ 16,372,648
Reconciliation to Financial Statements
Uncollateralized Amount Above $ 16,372,648

Plus: Insured Amount 250,000
Less: Outstanding Checks (465,784)
Carrying Amount - Bank balances 16,156,864
Plus: Petty Cash 775
Deposits in Investment Pool Considered Cash Equivalent 8,031
Less: Certificates of Deposit considered Investment by School Code (4,113,000)
TOTAL CASH PER FINANCIAL STATEMENTS $ 12,052,670
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Investments
Permitted investments for Pennsylvania School Districts are defined in the Public School Code of 1949 as:
1. United States Treasury Bills;
2. Short-term obligations of the United States Government or its agencies or instrumentalities;
3. Deposits in savings accounts or time deposits or share accounts of institutions insured by the
F.D.I.C; and,
4. Obligations of the United States of America or any of its agencies or instrumentalities, the
Commonwealth of Pennsylvania or any of its agencies or instrumentalities or any political
subdivision of the Commonwealth of Pennsylvania or any of its agencies or instrumentalities.
As of June 30, 2009, the District had the following investments:
Investment Maturities Fair Value

Certificates of Deposit 3-36 Months $ 4,113,000
FNMA Notes -
Pa. Local Government Investment Trust 8,000
PA School District Liquid Asset Fund 31
TOTAL $ 4,121,031
Interest Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk
The District has no investment policy that would limit its investment choices to certain credit ratings. As of
June 30, 2009, the District's investment in the PA School District Liquid Asset Fund was rated AAA by
Standard & Poor's.
Concentration of Credit Risk
The District places no limit on the amount the District may invest in any one issuer. Of the District’s
investments, more than 5% of the Fiduciary Funds’ investments are in certificates of deposit at New Tripoli
National Bank. These investments are 100.00% of the Fiduciary Funds’ investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
District will not be able to recover the value of its investments or collateral security that are in the
possession of an outside party. The District has no investment subject to custodial credit risk.
Reconciliation to Financial Statements
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Total Investments Above $ 4,121,031

Less: Deposits in Investment Pool Considered Cash Equivalents (8,031)
Total Investments Per Financial Statements $ 4,113,000
Property Taxes
Property taxes are levied on July 1, on the assessed value listed, as of that date, for all taxable real
property located in the District. Assessed values are established by the County Board of Assessments. All
taxable real property was assessed at $434,234,800. In accordance with Act 1 of 2006, the District
received $662,156 in property tax reduction funds for the 2008-09 fiscal year. The tax rate for the year
was $4.741 per $100 of assessed valuation or 47.41 mills.
The property tax calendar is:
July 1 - Full year tax assessed for current year.

July 1 - August 31 - Discount period during which a 2% discount is allowed.
September 1 - October 31 - Face amount of tax is due
November 1 - January 15 - A 10% penalty is added to all payments.
January 15 - All unpaid taxes become delinquent and are turned over to the
County Tax Claim Bureau for Collection.
The School District, in accordance with GAAP, recognized the delinquent and unpaid taxes receivable
reduced by an allowance for uncollectible taxes as determined by the administration. A portion of the net
amount estimated to be collectible, which was measurable and available within 60 days, was recognized
as revenue and the balance deferred in the fund financial statements.
Receivables
Receivables as of year end for the government's individual major funds and non-major and fiduciary funds
in the aggregate, including the applicable allowances for uncollectible accounts, are:
CAPITAL FOOD NON-

GENERAL PROJECT SERVICE MAJOR FIDUCIARY
FUND FUND FUND FUNDS FUNDS TOTAL
RECEIVABLES:
Interest $ - $ 73,421 $ - $ - $ 1,033 $ 74,454
Taxes 726,005 - - - - 726,005
Accounts 149,428 - 386 - 624 150,438
Intergovernmental 672,801 - 8,330 - - 681,131
GROSS RECEIVABLES 1,548,234 73,421 8,716 - 1,657 1,632,028
Less: Allowance for
Uncollectibles - - - - - -
NET RECEIVABLES $ 1,548,234 $ 73,421 $ 8,716 $ - $ 1,657 $ 1,632,028
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 in connection with resources that have been received, but not yet earned. At the end
of the current fiscal year, the various components of deferred revenue and unearned revenue reported in
the governmental funds were:
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UNAVAILABLE UNEARNED
Delinquent Property Taxes - General Fund $ 726,005 $ -
Grants drawdowns prior to meeting
eligibility requirements - 10,543
TOTAL $ 726,005 $ 10,543
Capital Assets
Capital asset balances and activity for the year ending June 30, 2009 were:
BEGINNING ENDING
BALANCE INCREASES DECREASES BALANCE
Capital Assets not being depreciated:
Land $ 406,148 $ - $ - $ 406,148
Construction in Progress 19,235,599 11,994,280 (101,840) 31,128,039
Total Capital Assets not being depreciated 19,641,747 11,994,280 (101,840) 31,534,187
Capital Assets being depreciated: -
Site Improvements 934,454 - - 934,454
Buildings and Bldg. Improvements 30,069,390 101,840 - 30,171,230
Furniture and Equipment 3,852,093 70,283 (13,144) 3,909,232
TOTAL CAPITAL ASSETS BEING DEPRECIATED 34,855,937 172,123 (13,144) 35,014,916
Less accumulated depreciation for:
Site Improvements (607,307) (34,698) (642,005)
Buildings and Bldg. Improvements (9,274,880) (552,934) (9,827,814)
Furniture and Equipment (2,371,024) (296,486) 10,939 (2,656,571)
TOTAL ACCUMULATED DEPRECIATION (12,253,211) (884,118) 10,939 (13,126,390)
TOTAL CAPITAL ASSETS BEING DEPRECIATED
NET OF ACCUMULATED DEPRECIATION 22,602,726 (711,995) (2,205) 21,888,526
GOVERNMENTAL ACTIVITIES CAPITAL ASSETS,
NET OF ACCUMULATED DEPRECIATION $ 42,244,473 $ 11,282,285 $ (104,045) $ 53,422,713
Capital Assets being depreciated:
Buildings and Bldg. Improvements $ 127,948 $ - $ - $ 127,948
Furniture and Equipment 549,927 - (33,253) 516,674
Less accumulated depreciation (375,409) (32,541) 29,611 (378,339)
BUSINESS-TYPES ACTIVITIES CAPITAL ASSETS,
NET OF ACCUMULATED DEPRECIATION $ 302,466 $ (32,541) $ (3,642) $ 266,283
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* DEPRECIATION EXPENSE WAS CHARGED TO GOVERNMENTAL FUNCTIONS AS FOLLOWS:

Regular Instruction $ 26,363
Special Instruction 378
Vocational Instruction -
Other Instruction -
Adult Instruction -
Pupil Personnel Services 213
Instructional Support Svcs. 2,807
School Library Services 1,486
Administrative Services 633
Health Services 499
Business Services 105
Operation & Maintenance of Plant Svcs. 18,880
Pupil Transportation 235,249
Central Services 2,475
Other Support Services -
School Sponsored Athletics 5,851
Community Services -
Depreciation - unallocated 589,178
TOTAL DEPRECIATION FOR GOVERNMENTAL ACTIVITIES $ 884,117
The District’s governmental-type activities disposed of $13,144 of equipment during the year with
accumulated depreciation of $10,939, resulting in a loss on disposal of $2,205. The District’s business-
type activities disposed of $33,253 of equipment during the year with accumulated depreciation of
$29,611, resulting in a loss on disposal of $3,642.
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Long-term construction commitments
The District has the following construction commitments in the Capital Projects Fund and Capital Reserve
Fund:
CONTRACT EXPENDED OUTSTANDING

AMOUNT TO 6/30/09 COMMITMENTS
WEISENBERG ELEMENTARY SCHOOL

General Construction - ER Stuebner $ 10,747,550 $ 10,186,339 $ 561,211
Electrical Construction - Wind Gap Electric 1,994,647 1,893,471 101,176
Professional Services- Cowan Associates 105,860 90,046 15,814
Plumbing Construction - Jay R. Reynolds 1,038,288 986,374 51,914
HVAC Construction - MBR Construction Svcs. 2,986,261 2,815,065 171,196
Sargent Enterprise 178,000 140,320 37,680
MKSD - Architect Contract 954,179 944,637 9,542
TOTAL 18,004,785 17,056,251 948,533
--------------------- ---------------------- ----------------------
NORTHWESTERN LEHIGH ELEMENTARY SCHOOL
MKSD - Architect Contract 628,988 628,988 -
General Construction - Brucker 5,899,747 5,879,747 20,000
Electrical Construction - Wind Gap Electric 1,861,101 1,861,101 -
Plumbing Construction - JBM Plumbing 501,863 461,332 40,531
Mechanical Construction - JBM Plumbing 2,226,868 2,170,568 56,300
Costar - Bleachers 108,590 - 108,590
Asbestos Removal - Crest 195,295 195,295 -
TOTAL 11,496,584 11,233,881 262,703
DISTRICT WIDE RENOVATIONS

General Construction - Penn Builders, Inc 5,681,800 5,681,800
Electrical Construction - Wind Gap Electric 1,780,319 1,780,319
HVAC Construction - Dual Temp Company, Inc 3,248,100 3,248,100
Sargent Enterprise 61,922 61,922
MKSD - Architect Contract 673,082 542,507 130,576
TOTAL 11,485,147 544,616 10,940,532
--------------------- ---------------------- ----------------------
GRAND TOTAL $ 40,986,516 $ 28,834,748 $ 12,151,768
Short-term debt
Interfund receivables and payables
The following interfund receivables and payables were in existence on June 30, 2009:
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INTERFUND INTERFUND
RECEIVABLES PAYABLES
General Fund $ 19,138 $ 359
Enterprise (Food Service) Fund 95 13,052
Agency (Payroll) Fund - 4,111
Agency (Activity) Fund 359 2,070
TOTAL $ 19,592 $ 19,592

0
Interfund Transfers
The District also made the following interfund transfers during the fiscal year ended June 30, 2009:
TRANSFER IN TRANSFER OUT

General Fund $ 6,917 $ 637,136
Enterprise (Food Service) Fund 10,000 -
Enterprise (Tiger Concession) Fund - -
Special Revenue (Capital Reserve) Fund 627,136 -
2008 Construction Fund - 6,917
Private-Purpose Trust Fd. - -
TOTAL $ 644,053 $ 644,053
Long-term liabilities
Long-term liability balances and activity for the year ended June 30, 2009, were:
AMOUNTS
BEGINNING ENDING DUE WITHIN
BALANCE ADDITIONS REDUCTIONS BALANCE ONE YEAR
GOVERNMENTAL ACTIVITIES
General Obligation Debt:
Bonds and notes payable:
Capital Projects $ 40,325,390 $ 9,859,416 $ 2,322,770 $ 47,862,036 $ 1,625,000
Other than capital projects - - - - -
Capital Leases - - - - -
Total general obligation debt 40,325,390 9,859,416 2,322,770 47,862,036 1,625,000
Other liabilities:
Vested employee benefits:
Vacation pay 202,685 132,447 - 335,132 87,382
Sick pay 452,547 48,286 - 500,833 49,875
Retirement Severance - Yrs. of Service 115,108 1,692 - 116,800 12,273
Net OPEB Obligation - 230,051 230,051 -
Medical Termination Benefits 829,120 - 829,120 - -
Total other liabilities 1,599,460 412,476 829,120 1,182,816 149,530
TOTAL GOVERNMENTAL ACTIVITY
LONG-TERM LIABILITIES $ 41,924,850 $ 10,271,892 $ 3,151,890 $ 49,044,852 $ 1,774,530
Other liabilities:
Vested employee benefits
Vacation pay $ - $ - $ - $ - $ -
Sick pay - - - - -
Retirement Severance - Yrs. of Service 4,153 - - 4,153 -
Medical Termination Benefits - - - - -
TOTAL BUSINESS-TYPE ACTIVITIES
LONG-TERM LIABILITIES $ 4,153 $ - $ - $ 4,153 $ -
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Payments on bonds and notes are made by the general fund. Vested employee benefits will be liquidated
by governmental and proprietary funds. The School District currently does not have any bonds or notes
payable in business-type activities.
Total Interest paid and accrued during the year:
EXPENSE PAID
General obligation debt $ 1,766,460 $ 1,502,759
Capital leases
Short-term borrowings - -
TOTAL INTEREST PAID BY GOVERNMENTAL ACTIVITIES $ 1,766,460 $ 1,502,759
General Obligation Bonds – Series of 2001
On July 1, 2001, the District issued the General Obligation Bonds - Series of 2001, of $12,130,000. The
proceeds of this issue were used to currently refund the general obligation bonds - Series of 1993 and
1994, advance refund the Series of 1996 general obligation bonds, and pay the cost of issuance. In
accordance with the Local Governmental Unit Debt Act a sinking fund has been established. The bonds
mature from September 15, 2001, to March 15, 2011. Interest is paid semi-annually on September 15,
and March 15 at interest rates ranging from 3.0% to 5.25%. Total interest indebtedness is $3,339,865.
The outstanding debt service requirements at June 30, 2009, are:
FISCAL YEAR PRINCIPAL INTEREST

2009-10 $ 1,445,000 $ 142,661
2010-11 1,470,000 71,990
SUB-TOTAL 2,915,000 $ 214,651
Unamortized Premium 26,704
Unamortized Discount (189)
Unamortized Deferred Amt. (38,580)
TOTAL OUTSTANDING $ 2,902,935
General Obligation Bonds - Series of 2003
On June 19, 2003, the District issued $6,585,000 of General Obligation Bonds - Series of 2003. The
purposes of this issue are to provide funds for: (1) the advance refunding of the General Obligation Bonds
- Series of 2000, and (2) paying the costs of issuing the bonds. In accordance with the Local
Governmental Unit Debt Act, a sinking fund has been established with the paying agent. The bonds
mature from September 15, 2003, to September 15, 2014. Interest rates range from 2.00% to 3.25%.
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2009-10 $ 150,000 $ 183,771
2010-11 195,000 179,216
2011-12 1,510,000 154,640
2012-13 1,560,000 108,956
2013-14 1,610,000 59,808
2014-16 1,060,000 17,225
SUB-TOTAL 6,085,000 $ 703,616
Unamortized Premium 1,216
Unamortized Deferred Amt. (259,484)
On March 15, 2005, the District issued $2,570,000 of General Obligation Bonds – Series of 2005. The
purpose of this issue is to refund the General Obligation Notes – Series B of 2004, and to pay the costs
and expenses of issuing the bonds. In accordance with the Local Governmental Unit Debt Act, a sinking
fund has been established with the paying agent. The bonds mature from February 15, 2006 to February
15, 2016. Interest rates range from 2.85% to 3.65% with total interest indebtedness of $834,356.

2009-10 $ 15,000 $ 86,395
2010-11 135,000 85,968
2011-12 185,000 81,850
2012-13 185,000 76,208
2013-14 190,000 70,195
2014-16 1,820,000 100,749
SUB-TOTAL 2,530,000 $ 501,365
Unamortized Discount (7,514)
General Obligation Bonds – Series A of 2007
On August 15, 2007, the District issued $9,980,000 of General Obligation Bonds – Series A of 2007. The
proceeds will be used to carry out the current refunding of the District’s outstanding General Obligation
Note – Series of 2006 and to pay the costs and expenses. In accordance with the Local Governmental
Unit Debt Act, a sinking fund has been established with the paying agent. The bonds mature from
February 15, 2008 to February 15, 2031. Interest rates range from 3.70% to 4.30% with total interest
indebtedness of $7,108,690. The outstanding debt service requirements at June 30, 2009, are:
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2009-10 $ 5,000 $ 410,982
2010-11 5,000 410,793
2011-12 5,000 410,600
2012-13 5,000 410,405
2013-14 5,000 410,208
2014-19 1,510,000 1,988,753
2019-24 2,935,000 1,506,795
2024-29 3,610,000 830,999
2029-31 1,665,000 108,145
SUB-TOTAL 9,745,000 $ 6,487,680
Unamortized Discount -
Unamortized Deferred Chgs. -
General Obligation Note – Series A of 2007
On October 31, 2007, the District issued $8,500,000 of General Obligation Note – Series A of 2007. The
proceeds will be used to carry out the current refunding of the District’s outstanding General Obligation
Note – Series of 2006 and to pay the cost and expenses. In conjunction with this issue, the District issued
a Series A of 2008 credit note held by U.S. Bank facility, acting as the loan credit facility. In accordance
with the Local Governmental Unit Debt Act, a sinking fund has been established with the paying agent.
The bonds mature from August 1, to August 1, , 2023. Interest is calculated on a variable weekly rate plus
fifty-five hundredths (.55%) per annum. The outstanding debt service requirements at June 30, 2009 are:

2009-10 $ - $ 42,756
2010-11 100,000 71,821
2011-12 100,000 70,972
2012-13 100,000 70,315
2013-18 2,500,000 69,272
2018-23 4,600,000 289,058
2023-28 1,100,000 108,296
SUB-TOTAL 8,500,000 $ 722,490
On February 15, 2008, the District issued $9,400,000 of General Obligation Bonds – Series of 2008. The
proceeds will be used to carry out the current refunding of the District’s remaining outstanding General
Obligation Note – Series A of 2006, the current refunding of General Obligation Note – Series of 2008, and
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to pay the costs of the issuance. In accordance with the Local Governmental Unit Debt Act, a sinking fund
has been established with the paying agent. The Bonds mature from March 15, 2008 to March 15, 2026.
Interest rates range from 3.25% to 4.10% with total interest indebtedness of $6,107,052.
The outstanding debt service requirements at June 30, 2009 are:

2009-10 $ 5,000 $ 354,390
2010-11 5,000 354,240
2011-12 5,000 354,090
2012-13 5,000 353,940
2013-14 5,000 353,778
2014-19 1,430,000 1,722,737
2019-24 2,545,000 1,342,940
2024-29 3,600,000 783,972
2029-33 1,655,000 102,499
SUB-TOTAL 9,255,000 $ 5,722,586
General Obligation Bonds – Series A of 2008
On December 15, 2008, the District issued $9,750,000 of General Obligation Bonds – Series A of 2008.
The proceeds of the Bond issue shall be applied to the funding of certain capital improvements to the
District’s educational facilities pursuant to a project. In accordance with the Local Governmental Unit Debt
Act, a sinking fund has been established with the paying agent. The bonds mature from February 15,
2009 to February 15, 2033. Interest rates range from 3.00% to 4.85%, with total interest indebtedness of
$7,162,334.17.
The outstanding debt service requirements at June 30, 2009 are:

2009-10 $ 5,000 $ 414,265
2010-11 5,000 414,115
2011-12 5,000 413,965
2012-13 5,000 413,815
2013-14 5,000 413,661
2014-19 1,400,000 1,998,713
2019-24 2,230,000 1,616,928
2024-29 2,780,000 1,065,953
2029-33 2,740,000 339,000
SUB-TOTAL 9,175,000 $ 7,090,415
Unamortized Discount (65,117)
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Lease Rental Debt
The Lehigh Career and Technical Institute (LCTI), with authority of the nine participating school districts,
has agreed to borrow up to $53,715,000 to improve the Institute's facilities. The participating districts,
such as Northwestern Lehigh School District, will be required to pay their proportionate shares of the
incurred debt under the Articles of Agreement in subsequent years as "Capital Costs" under Section 4.2 of
the Articles. The district's proportionate share is based on each district's percentage of their respective
market value to the total market value of all participating districts.
Specifically, Lehigh Career and Technical Institute issued $32,000,000 of revenue bonds - Series of 2003
dated March 15, 2003, and $21,715,000 of revenue bonds - Series of 2001 dated September 15, 2001,
through the State Public School Building Authority (SPSBA). The bonds are special limited obligations of
the SPSBA.
The LCTI financing translates into an ongoing obligation of the participating districts for credit purposes;
however, for purposes of the Local Governmental Unit Debt Act, this borrowing is not considered general
obligation debt of the school districts; therefore, the future obligations of debt service are not recorded as a
liability on Northwestern Lehigh's financial statements.
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Combined Long-Term Debt

The combined general long-term debt obligations for subsequent years, except for compensated absences, are:
Combined Long-Term Debt

The combined general long-term debt obligations for subsequent years, except for compensated absences, are:
SUMMARY OF PRINCIPAL REQUIREMENTS

G.O.B. G.O.B. G.O.B. G.O.B. G.O.N. G.O.B. G.O.B. TOTAL
SERIES OF SERIES OF SERIES SERIES A SERIES A SERIES SERIES A PRINCIPAL
FISCAL YEAR 2001 2003 OF 2005 OF 2007 OF 2007 OF 2008 OF 2008 PAYMENTS
2009-10 $ 1,445,000 $ 150,000 $ 15,000 $ 5,000 $ - $ 5,000 $ 5,000 $ 1,625,000
2010-11 1,470,000 195,000 135,000 5,000 100,000 5,000 5,000 1,915,000
2011-12 - 1,510,000 185,000 5,000 100,000 5,000 5,000 1,810,000
2012-13 - 1,560,000 185,000 5,000 100,000 5,000 5,000 1,860,000
2013-14 - 1,610,000 190,000 5,000 100,000 5,000 5,000 1,915,000
2014-19 - 1,060,000 1,820,000 1,510,000 3,200,000 1,430,000 1,400,000 10,420,000
2019-24 - - - 2,935,000 4,900,000 2,545,000 2,230,000 12,610,000
2024-29 - - 3,610,000 - 3,600,000 2,780,000 9,990,000
2029-32 - - - 1,665,000 - 1,655,000 2,740,000 6,060,000
TOTAL PRINCIPAL 2,915,000 6,085,000 2,530,000 9,745,000 8,500,000 9,255,000 9,175,000 48,205,000
LESS-PAYABLE WITHIN ONE YEAR 1,445,000 150,000 15,000 5,000 - 5,000 5,000 1,625,000
LONG-TERM PRINCIPAL AFTER ONE YEAR $ 1,470,000 $ 5,935,000 $ 2,515,000 $ 9,740,000 $ 8,500,000 $ 9,250,000 $ 9,170,000 $ 46,580,000
SUMMARY OF PRINCIPAL AND INTEREST REQUIREMENTS

G.O.B. G.O.B. G.O.B. G.O.B. G.O.N. G.O.B. G.O.B. TOTAL DEBT
SERIES OF SERIES OF SERIES SERIES A SERIES A SERIES SERIES A SERVICE
FISCAL YEAR 2001 2003 OF 2005 OF 2007 OF 2007 OF 2008 OF 2008 PAYMENTS
2009-10 $ 1,587,661 $ 333,771 $ 101,395 $ 415,982 $ 42,756 $ 359,390 $ 419,265 $ 3,260,220
2010-11 1,541,990 374,216 220,968 415,793 171,821 359,240 419,115 3,503,143
2011-12 - 1,664,640 266,850 415,600 170,972 359,090 418,965 3,296,117
2012-13 - 1,668,956 261,208 415,405 170,314 358,940 418,815 3,293,638
2013-14 - 1,669,808 260,195 415,208 169,272 358,778 418,661 3,291,922
2014-19 - 1,077,225 1,920,749 3,498,753 3,489,058 3,152,737 3,398,712 16,537,234
2019-24 - - - 4,441,795 5,008,297 3,887,940 3,846,928 17,184,960
2024-29 - - - 4,440,999 - 4,383,972 3,845,952 12,670,923
2029-32 - - - 1,773,145 - 1,757,499 3,079,002 6,609,646
TOTAL $ 3,129,651 $ 6,788,616 $ 3,031,365 $ 16,232,680 $ 9,222,490 $ 14,977,586 $ 16,265,415 $ 69,647,803
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Compensated Absences
Sick-Pay
Any member of the Bargaining Unit with twenty-five (25) years or more of credited teaching service with
PSERS and fifteen (15) or more years of service in the Northwestern Lehigh School District; and upon written
notice to the Superintendent no later than March 15 indicating his/her intention to retire, shall be eligible for the
following retirement severance benefits relevant to the employee's years of service with PSERS.
Unused Sick Day Conversion
Unused sick days will be converted to a severance payment according to the following chart:
Number of Unused Sick Days Rate per Day

0-50.5 $ 35.00
51-100.5 50.00
101-150.5 57.50
151-225.5 65.00
226+ 70.00
Unused sick day severance payment shall be made in the last pay in June. If an employee's effective
retirement date is prior to the end of school in any year of this Agreement, said employee shall receive
his/her severance in his/her last paycheck but in no event later than June 30 of the contract year.
The District maintains records of accumulated sick days that are earned by each employee who is eligible
to retire. The portion of the severance benefit recorded in the General Fund that will use currently
available financial resources is $49,875. This amount is also recorded as a current liability in the
governmental activities column of the government-wide statement of net assets. The remaining potential
liability of $450,958 has been established as a long-term liability in the governmental activities column of
the government-wide statement of net assets.
No FICA tax has been recorded due to the fact that payment will be made in the form of a 401(a)
retirement plan contribution for which the employee does not have constructive receipt.
Vacation Leave
Unused vacation leave is paid upon an employee's termination, with the exception of mid-management
employees; vacation pay is not cumulative and must be used within one year. Payment will only be made
for unused vacation days in the current year. Mid-management employees with 5 years or more of
service can carry over a maximum of 5 days to be credited to an "end of year employment bank" which
will be paid at retirement. The District maintains records of each employee's accumulated vacation days.
In accordance with GASB Statement No. 16, the portion of vacation pay earned at June 30, 2009, that will
use currently available financial resources is $87,382, including FICA tax and retirement contributions (net
of reimbursement), which has been recorded in the General Fund and as a current liability in the
governmental activities column of the government-wide statement of net assets. The remaining vacation
pay earned at June 30, 2009, of $247,750, including FICA tax and retirement contributions (net of
reimbursement), is recorded as a long-term liability in the governmental activities column of the
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Defined benefit pension plans
Plan Description
Name of plan: The Public School Employees’ Retirement System (the System).
Type of Plan: Governmental cost sharing multiple-employer defined benefit plan.
Benefits: Retirement and disability legislatively mandated ad hoc cost-of-living adjustments, healthcare
insurance premium assistance to qualifying annuitants.
Authority: The Public School Employees’ Retirement Code (Act No. 96 of October 2, 1975, as amended)
(24 PA C.S. 8101-8535).
Annual Financial Report: The System 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 Barbara D. Flurie, Office of Financial Management, Public School Employees’
Retirement System, P. O. Box 125, Harrisburg, PA 17108-0125. The report is also available in the
publications section of the PSERS website at www.psers.state.pa.us.
Funding Policy
Authority: The contribution policy is established in the Public School Employees’ Retirement Code and
requires contributions by active members, employers, and the Commonwealth.
Contribution Rates
Member Contributions: Active members, who joined the System prior to July 22, 1983, contributed at 5.25
percent (Membership Class TC) or at 6.50 percent (Membership Class TD) of the member's qualifying
compensation. Members who joined the System on or after July 22, 1983 and who were active or inactive
as of July 1, 2001, contribute at 6.25 percent (Membership Class TC) or at 7.50 percent (Membership
Class TD) of the member's qualifying compensation. Members who joined the System after June 30,
2001, contribute at 7.50 percent (automatic Membership Class TD). For all new hires and for members
who elected Class TD membership, the higher contribution rates began with service rendered on or after
January 1, 2002.
Contributions required of employers are based upon an actuarial valuation. For fiscal year ended June 30,
2007, the rate of employer contribution was 4.76 percent of covered payroll. The 4.76 percent rate is
comprised of a pension contribution rate of 4.00 percent for pension benefits and 0.76 percent for
healthcare insurance premium assistance.
The employer’s current year covered payroll was $13,316,747 and total payroll was $16,963,202.
The total employee and employer contributions for this current year were $1,217,599 and $796,366,
respectively.
Retirement Severance
Any administrator with fifteen (15) years or more of service with Northwestern Lehigh School District and
twenty-five (25) years or more of credited service with PSERS, shall be eligible, upon retirement from the
District, for a retirement severance payment as follows:
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PERCENTAGE
YEARS OF CREDITED PSERS SERVICE OF BASE PAY
Less than 31 years 15%
31 years to less than 36 years 20%
36 or more years 25%
Upon retirement from the District, employees in the following categories shall receive retirement
severance payment for each year of service, depending on the employee’s years of service and age at
retirement from the District.
YEARS OF CREDITED PSERS SERVICE

15 Years of 15 Years 15 Years of 15 Years of
Svc. and 55 of Svc. of Svc. Svc. and 65
or Younger and 56 - 61 and 62 - 65 or Older
Teacher Aides $ - $ - $ - $ 500
Business Office 3,000 3,000 1,500 -
Custodians - - - 500
Food Services - - - 500
Bus Mechanics - - - 500
Bus Drivers - - - 750
Mid-Management 3,000 3,000 1,500 -
In accordance with GASB Statement 16, the portion of this severance for service liability that will use
currently available financial resources is $12,273, including FICA tax (net of reimbursement), which has
been recorded in the general fund and as a current liability of long-term debt in the governmental activities
column of the government-wide statement of net assets. A total of $4,153, including FICA tax (net of
reimbursement) is recorded in the food service fund and as a long-term liability in the business-type
activities column of the government-wide statement of net assets. The remaining portion of the retirement
severance earned at June 30, 2009 of $104,527, including FICA tax (net of reimbursement) is recorded as
a long-term liability in the governmental activities column of the government-wide statement of net assets.
Other Post Employment Benefits
The following table represents Northwestern Lehigh School District’s other post employment benefit plan
provisions:
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Summary of Plan Provisions
Group Eligibility Coverage And Premium Sharing Duration
I. TEACHERS • 25 years of PSERS • Coverage: Medical, Prescription Drug, and Dental.

The member may continue benefits until the later of
Medicare age or the exhaustion of the account.
service and 15 years with
NWLSD
• Act 110/43 • Premium Sharing: If the member reaches 25 years of PSERS service and 15 Benefits for the spouse will cease at the earlier of
years of service with NWLSD, NWLSD will provide an account to the member Medicare age, member Medicare age, or member
that may be used to purchase medical, prescription drug, and dental benefits for death, however, the spouse can continue coverage
the member. The spouse may elect coverage by paying the difference in until the account is exhausted as long as the member
premium between 2-party and single coverage. The initial account balance is is also currently electing coverage.
determined by total PSERS service at retirement and follows the schedule
below (note that past retirees may have followed a different schedule).
Years of PSERS
service Initial Account Balance
Less than 31years $18,500

31 years up to 36 years $14,000
More than 36 years $ 9,500
The account will be drawn down each month at a rate equal to the premium for
the coverage that is elected less the PSERS Supplement (this must be supplied
to NWLSD by the member). If the account balance exhausts, the member and
spouse may continue coverage by paying the full premium as determined for
the purpose of Cobra.
If the member does not reach eligibility for the account above, however, the
member reaches eligibility through Act 110/43, the member and spouse may
continue benefits by paying the full premium as determined for the purpose of
Cobra.
• Dependents: Spouses included.
-60-
Summary of Plan Provisions
Group Eligibility Coverage And Premium Sharing Duration
• 25 years of PSERS • Coverage: Medical, Prescription Drug, and Dental.

The member may continue benefits until the later of
II. Administrators service and 15 years of
Medicare age or the exhaustion of the sick leave
service with NWLSD
• Premium Sharing: If the member reaches 25 years of PSERS service and conversion benefit.
15 years of service with NWLSD, the member will be allowed to convert
• Act 110/43 unused sick leave into medical, prescription drug, and dental coverage for Benefits for the spouse will cease at the earlier of
the member’s entire family. The member is responsible for providing Medicare eligibility, member Medicare eligibility, or
NWLSD with the PSERS Supplement while receiving the paid benefit. The member death, however, the spouse can
conversion rates for the different tiers of coverage are listed below. When continue coverage until the exhaustion of the sick
the remaining sick leave reaches a level where a full year of coverage leave conversion benefit as long as the member
cannot be purchased, the monthly conversion will be used. is also currently electing coverage.
Tier of Coverage……………….Sick Leave Conversion Rate
Single 25 days/year or 2 days/month

Husband/Wife………………….45 days/year or 4 days/month
Family……………………….50 days/year or 4 days/month
If coverage for either the member or spouse extends beyond age 65, the
participant will be required to switch to a Medicare Supplemental plan.
If the member either doesn’t reach eligibility for the sick leave conversion
benefit but does reach eligibility through Act 110/43 or the member exhausts
the sick leave benefit prior to age 65, the member and the spouse may elect
to continue coverage by paying the full premium as determined for the
purpose of COBRA.
• Dependents: Families Included
III. Support Staff Act 110/43 Act 110/43 Act 110/43
Notes:: Act 110/43 Benefit: All employees are eligible for this benefit upon retirement with 30 years of PSERS service or upon superannuation retirement (age 60 with 30 years of service, age 62 with 1 year of
service, or 35 years regardless of age). Retired employees are allowed to continue coverage for themselves and their dependents in the employer’ group health plan until the retired employee reaches
Medicare age. In order to obtain coverage, retired employees must provide payment equal to the premium determined for the purpose of COBRA.
PSERS Supplement: A retiree may receive a $100 monthly medical reimbursement form PSERS if he (or she) meets one of the following qualifications at retirement:
1. 24.5 years of PSERS service
2. Termination of employment on or after age 62 with at least 15 years of PSERS service.
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Funding Policy and Annual OPEB Cost. The District’s annual other post-employment benefit (OPEB) cost
(expense) for the plan is calculated based on the annual required contribution of the employer (ARC), an
the amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost, each
year, and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed
thirty years. The District’s annual OPEB cost for the current year and the related information is as follows:
Contribution Rates:
OPEB Benefit
Actuarially
Determined
Interest Rate 4.5%
Plan Members 334
Annual Required Contribution $ 383,586

Interest on net OPEB obligation -
Adjustment to annual required contributio -
Annual OPEB cost 383,586

Contributions made (153,535)
Increase in net OPEB obligation 230,051
Net OPEB obligation - beginning of year -
Net OPEB obligation - end of year $ 230,051
Since this is the first year of implementation for GASB Statement 45, prior year data has been omitted for
the two preceding years. The District’s annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan and the net OPEB obligation of the fiscal year ending 6/30/09 for the benefits were
as follows:
Annual Percentage
For the Year Ended June 30, 2009 OPEB of OPEB Cost Net OPEB
Cost Contributed Obligation
6/30/2009 $ 383,586 40.0% $ 230,051
6/30/2008 - 0.0% -
6/30/2007 - 0.0% -
Funding status and Funding Progress. The funded status of the benefits as of June 30, 2009, was as
follows:
Healthcare
Benefit
Governmental Activity
Actuarial accrued liability (a) $ 3,129,378
Actuarial value of plan assets (b) -
Unfunded actuarial accrued liability (a) - ( $ 3,129,378
Funded Ratio (b) / (a) 0.0%

Covered payroll $ 14,982,081
y
(funding excess) as a percentage of
covered payroll. 20.9%
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Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. Amounts determined regarding the funded status of the benefits and the
annual required contributions of the employer are subject to continual revision actual results are compared
to past expectations and new estimates are made about the future. The required schedule of funding
progress presented as required supplementary information provides multiyear trend information that
shows whether the actuarial value of plan net assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions. Projections of benefits are based on the substantive plan (the plan
as understood by the employer and plan members) and include the types of benefits in force at the
valuation date and the pattern of sharing benefit costs between the district and the plan members to that
point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
Significant methods and assumptions were as follows:
Healthcare
Benefit
Actuarial Valuation Date 7/1/2008
Actuarial Cost Method Entry Age Normal
Level dollar method

over a 30 year
Amortization Method period
Remaining amortization period 29 years
Asset Valuation Method pay as you go basis
Actuarial Assumptions:
Investment rate of return 4.5%

Projected salary increases 4.25% to 7.25%
Healthcare inflation rate
2008 8.5%
2009 8.0%
2010 7.5%
2011 7.0%
2012 6.5%
2013 6.0%
2014 5.5%
2015 5.0%
2016 + 5.0%
Note 6 - Risk Management
The District is subject to risk of loss from employee risks, property damage, personal injury, auto
accidents, etc. The District reduces these risks through the purchase of commercial insurance. The
District's workers compensation policy is a retrospectively rated policy. The final premium is based on
actual payroll for the policy year and is determined by the insurance company. Any settlements received
by the District or its employees did not exceed insurance coverage in the last three years.
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Note 7 - Fund Balance Reserves/Designations
Reserved Fund Balance
The fund balance reserves in the general fund totaling $1,415,426, represent prepaid expenditures of
$34,023, and $1,381,403, for OPEB Retiree Actuarial Liability.
Designation Fund Balance
Management has designated $1,755,000 of the General Fund’s fund balance at June 30, 2009, for future
increases in PSERS retirement contributions, medical benefit rate increases, and future implementation
for Other Post Retirement Benefits.
Note 8 - Restricted Net Assets
Invested in Capital Assets, Net of Related Debt
The components of this restriction in the governmental activities column is total capital assets of
$53,422,712, unspent proceeds of $6,914,697, with related debt of $47,277,133, which includes
unamortized bonds discounts, premiums, issuance costs and deferred refunding charges. The business-
type activities column reflects $266,283 invested in capital assets with no related debt.
Other Restrictions
The components of these restrictions pertain to $385,710 restricted for federal grants.
Note 9 – Contingencies
Grants
The School District received financial assistance from federal and state agencies in the form of grants. The
expenditure of funds received under these programs generally requires compliance with terms and a
condition specified in the grant agreements, and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the general fund, or other
applicable funds. However, in the opinion of management any such disallowed claims will not have a
material adverse effect on the overall financial position of the School District as of June 30, 2009.
Litigation
In accordance with the solicitor’s legal letter, there is no pending litigation involving contingent liabilities, as
of June 30, 2009, that would materially affect the financial position of the District.
Note 10 – Subsequent Events
General Obligation Note – Series of 2009
On July 14, 2009, the District issued $8,500,000 of General Obligation Notes – Series of 2009. The
proceeds of the Notes will be used to provide funds for certain capital projects and to pay the issuance
costs of the issue. In accordance with the Local Governmental Unit Debt Act, a sinking fund has been
established with the paying agent. The Notes mature from February 15, 2011 to February 15, 2026.
Interest is calculated weekly at 65.0% of the libor rate, plus 1.20%, with a maximum rate cap of 15.00%.
Reset monthly on the 15th day of each month. Future principal obligations, were as follows:
-64-
FISCAL YEAR PRINCIPAL

2009-10 $ -
2010-11 375,000
2011-12 395,000
2012-13 410,000
2013-14 430,000
2014-19 2,445,000
2019-24 3,035,000
2024-26 1,410,000
SUB-TOTAL $ 8,500,000
-65-
REQUIRED
SUPPLEMENTAL INFORMATION
Schedule of Funding Progress
Healthcare Benefit
Actuarial
Accrued UAAL as a
Actuarial Liability Unfunded Percentage of
Actuarial Value of (AAL)- AAL Funded Covered Covered
Valuation Assets Unit Credit (UALL) Ratio Payroll Payroll
Date (a) (b) (b - a) (a / b) (c) ((b - a) / c)
7/1/2008 $ - $ 3,129,378 $ 3,129,378 0.0% $ 14,982,081 20.89%
7/1/2006 - - - 0.0% - 0.00%
7/1/2004 - - - 0.0% - 0.00%
-66-
S U P P L E M E N T A L I N F O R M A T I O N S E C T I O N
Combining Statement of Fiduciary Net Assets
Private Purpose Trust Funds
STEPHEN
CARL CLASS STUDENT CLASS OF LAURETTA DAVID ROTH MORTON KOHLER CLASS ROBERT
BETZ OF 1996 COUNCIL 2000 LEAR FALLINGER MARZ GENERAL MEMORIAL OF 1990 KERN
SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR.
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
ASSETS
Cash $ 945 $ 1,083 $ 396 $ 1,087 $ 985 $ 944 $ 756 $ (1,152) $ 997 $ 1,086 $ -
Investments 5,148 495 - 1,687 1,537 5,063 10,259 54,317 6,362 1,247 -
Accrued Interest Receivable 47 5 - 15 14 46 94 497 58 11 -
TOTAL ASSETS $ 6,140 $ 1,583 $ 396 $ 2,789 $ 2,536 $ 6,053 $ 11,109 $ 53,662 $ 7,417 $ 2,344 $ -
LIABILITIES
Accounts Payable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Interfund Payables - - - - - - - - - - -
TOTAL LIABILITIES - - - - - - - - - - -
NET ASSETS
Held in Trust for future recipients $ 6,140 $ 1,583 $ 396 $ 2,789 $ 2,536 $ 6,053 $ 11,109 $ 53,662 $ 7,417 $ 2,344 $ -
Combining Statement of Changes in Fiduciary Net Assets

Private Purpose Trust Funds
STEPHEN
CARL CLASS STUDENT CLASS OF LAURETTA DAVID ROTH MORTON KOHLER CLASS ROBERT
BETZ OF 1996 COUNCIL 2000 LEAR FALLINGER MARZ GENERAL MEMORIAL OF 1990 KERN
SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR.
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
ADDITIONS:
Contributions $ - $ 25 $ - $ - $ - $ - $ - $ 5,425 $ - $ - $ -
Interfund Transfers In - - - - - - - 9 - - -
INVESTMENT EARNINGS:
Interest and dividends 179 30 9 60 55 165 333 1,688 177 49 -
TOTAL ADDITIONS 179 55 9 60 55 165 333 7,122 177 49 -
DEDUCTIONS:
Interfund Transfers Out - - - - - - - - - - 9
Awards 200 50 200 50 50 200 400 9,650 150 50 -
TOTAL DEDUCTIONS 200 50 200 50 50 200 400 9,650 150 50 9
CHANGES IN NET ASSETS (21) 5 (191) 10 5 (35) (67) (2,528) 27 (1) (9)
NET ASSETS - BEGIN. OF THE YR 6,161 1,578 587 2,779 2,531 6,088 11,176 56,190 7,390 2,345 9
$ 6,140 $ 1,583 $ 396 $ 2,789 $ 2,536 $ 6,053 $ 11,109 $ 53,662 $ 7,417 $ 2,344 $ -
NET ASSETS - END OF THE YEAR
-67-
WEISEN- KEY CLASS JUSTIN CLASS CLASS LYNDSAY CLASS OF CLASS OF
BERG CLUB OF 1998 HUMMEL OF 2003 OF 2006 BLOSE NWLSD 2007 FISHER RESH 2008
SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR.
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND TOTAL
$ 4 $ 416 $ 440 $ 1,041 $ 561 $ 1,035 $ 850 $ 573 $ 694 $ 136 $ 760 $ 1,085 $ 14,722
287 - - 3,611 - 1,030 7,623 - - 924 12,012 1,398 113,000
3 - - 33 - 9 70 - - 8 110 13 1,033
$ 294 $ 416 $ 440 $ 4,685 $ 561 $ 2,074 $ 8,543 $ 573 $ 694 $ 1,068 $ 12,882 $ 2,496 $ 128,755
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - - - - - - -
- - - - - - - - - - - - -
$ 294 $ 416 $ 440 $ 4,685 $ 561 $ 2,074 $ 8,543 $ 573 $ 694 $ 1,068 $ 12,882 $ 2,496 $ 128,755
WEISEN- KEY CLASS JUSTIN CLASS CLASS LYNDSAY CLASS OF CLASS OF

BERG CLUB OF 1998 HUMMEL OF 2003 OF 2006 BLOSE NWLSD 2007 FISHER RESH 2008
SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR. SCHOLAR.
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND TOTAL
$ 1,409 $ - $ 48 $ - $ 44 $ 105 $ - $ 834 $ 52 $ 1 $ 450 $ 2,501 $ 10,894

- - - - - - - - - - - - 9
18 10 6 107 9 42 252 2 11 41 316 45 3,604

1,427 10 54 107 53 147 252 836 63 42 766 2,546 14,507
- - - - - - - - - - - - 9
2,000 250 50 100 50 100 300 300 50 1,000 500 50 15,750
2,000 250 50 100 50 100 300 300 50 1,000 500 50 15,759
(573) (240) 4 7 3 47 (48) 536 13 (958) 266 2,496 (1,252)

867 656 436 4,678 558 2,027 8,591 37 681 2,026 12,616 - 130,007
$ 294 $ 416 $ 440 $ 4,685 $ 561 $ 2,074 $ 8,543 $ 573 $ 694 $ 1,068 $ 12,882 $ 2,496 $ 128,755
Combining Statement of Net Assets - All Enterprise Funds
As of June 30, 2009
(NON-MAJOR) (MAJOR)
TIGER FOOD
CONCESSION SERVICE
ASSETS FUND FUND TOTAL
Cash $ 50,970 $ 6,196 $ 57,166
Investments - - -
Due From Other Funds - 95 95
Due From Other Governments - 8,330 8,330
Other Receivables - 386 386
Inventory - 12,028 12,028
Prepaid Expenses - 3,338 3,338
Building Improvements, net of Accum. depreciation - 86,365 86,365
Equipment, net of Accum. Depreciation - 179,918 179,918
TOTAL ASSETS $ 50,970 $ 296,656 $ 347,626
LIABILITIES AND NET ASSETS

Due To Other Funds $ - $ 13,052 $ 13,052
Accounts Payable 114 245 359
Intergovernmental Payables 909 909
Accrued Salaries and Benefits - 16,051 16,051
Accrued Compensated Absences - - -
Other Retirement Benefits - 4,153 4,153
Deferred Revenues 1,330 11,818 13,148
TOTAL LIABILITIES 2,353 45,319 47,672
Invested in capital assets, with no related debt - 266,283 266,283

Unrestricted Net Assets 48,617 (14,946) 33,671
TOTAL LIABILITIES AND NET ASSETS $ 50,970 $ 296,656 $ 347,626
-68-
Combining Statement of Revenues, Expenses, and Changes
in Net Assets - All Enterprise Funds
(NON-MAJOR) (MAJOR)
TIGER FOOD
CONCESSION SERVICE
FUND FUND TOTAL
OPERATING REVENUES
Food Service Revenue $ 11,708 $ 632,998 $ 644,706
Other Operating Revenue 5,985 17,330 23,315
TOTAL OPERATING REVENUES 17,693 650,328 668,021
---------- ---------- ----------
OPERATING EXPENSES
Salaries 1,940 290,395 292,335
Employee Benefits 240 92,014 92,254
Professional Services - - -
Purchased Property Services 3,790 32,899 36,689
Other Purchased Services 614 4,114 4,728
Supplies 8,383 462,708 471,091
Depreciation - 32,542 32,542
Other Operating Expenses - 4,958 4,958
TOTAL OPERATING EXPENSES 14,967 919,630 934,597
OPERATING PROFIT (LOSS) 2,726 (269,302) (266,576)

---------- ---------- ----------
NON-OPERATING REVENUES
State Sources 114 42,533 42,647
Federal Sources - 204,055 204,055
TOTAL NON-OPERATING REVENUES 576 246,742 247,318
INCOME (LOSS) BEFORE INTERFUND TRANSFERS 3,302 (22,560) (19,258)
Interfund Transfers - 10,000 10,000
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 3,302 (12,560) (9,258)
Capital Contributions - 4,690 4,690

Gain or Loss on Sale of Fixed Assets - (3,642) (3,642)
CHANGES IN NET ASSETS 3,302 (11,512) (8,210)
NET ASSETS - JULY 1, 2008 45,315 262,849 308,164
NET ASSETS - JUNE 30, 2009 $ 48,617 $ 251,337 $ 299,954
-69-
Combining Statement of Cash Flows - All Enterprise Funds
(NON-MAJOR) (MAJOR)
TIGER FOOD
CONCESSION SERVICE
FUND FUND TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from users $ 11,708 $ 629,078 $ 640,786
Cash received from assessments to other funds - - -
Cash received from earnings on investments - - -
Cash received from other operating revenue 5,985 21,082 27,067
Cash paid to employees (2,180) (386,910) (389,090)
Cash payments to insurance claims - - -
Cash paid to suppliers (11,774) (468,370) (480,144)
Cash payments for other operating expenses - (4,958) (4,958)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,739 (210,078) (206,339)
---------- ---------- ----------
CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Contributions - - -
State Sources 114 42,263 42,377
Federal Sources - 158,322 158,322
Interfund Transfers - 10,000 10,000
NET CASH PROVIDED (USED) BY NON-CAPITAL
FINANCING ACTIVITIES 114 210,585 210,699
---------- ---------- ----------
CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Purchase of Equipment - - -
Capital Contributions - 4,690 4,690
NET CASH PROVIDED (USED)BY CAPITAL FINANCING ACTIVITIES - 4,690 4,690
CASH FLOWS FROM INVESTING ACTIVITIES

NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS 4,315 5,350 9,665
CASH AND CASH EQUIVALENTS - JULY 1, 2008 46,655 846 47,501
CASH AND CASH EQUIVALENTS - JUNE 30, 2009 $ 50,970 $ 6,196 $ 57,166
-70-
Combining Statement of Cash Flows - All Enterprise Funds
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(NON-MAJOR) (MAJOR)
TIGER FOOD
CONCESSION SERVICE
FUND FUND TOTAL
OPERATING INCOME (LOSS) $ 2,726 $ (269,302) $ (266,576)

---------- ---------- ----------
ADJUSTMENTS TO RECONCILE OPERATING INCOME TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Depreciation - 32,542 32,542
Donated Commodities used - 42,711 42,711
NET CHANGES IN ASSETS AND LIABILITIES:

(Increase) Decrease in Accounts Receivable - (73) (73)
(Increase) Decrease in Interfund Receivable - (95) (95)
(Increase) Decrease in Inventories - (613) (613)
(Increase) Decrease in Prepaid Expenses - - -
Increase (Decrease) in Interfund Payable - (12,872) (12,872)
Increase (Decrease) in Accounts Payable 1,023 65 1,088
Increase (Decrease) in Accrued Salaries and Benefits - (4,501) (4,501)
Increase (Decrease) in Deferred Revenue (10) 2,060 2,050
TOTAL ADJUSTMENTS 1,013 59,224 60,237
NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES $ 3,739 $ (210,078) $ (206,339)
-71-
Combining Balance Sheet
All Agency Funds
As of June 30, 2009
ACTIVITY PAYROLL
ASSETS FUND FUND TOTAL
Cash $ 117,813 $ 4,596 $ 122,409
Due from Other Funds 359 - 359
Accounts Receivable 624 - 624
Prepaid Expenses - - -
TOTAL ASSETS $ 118,796 $ 4,596 $ 123,392
LIABILITIES
Accounts Payable $ 26,832 $ - $ 26,832
Intergovernmental Payable - -
Due Student Organizations 89,894 - 89,894
Payroll Deductions - 485 485
Interfund Payable 2,070 4,111 6,181
TOTAL LIABILITIES $ 118,796 $ 4,596 $ 123,392
-72-
Combining Statement of Changes in Assets and
Liabilities - All Agency Funds
BALANCE BALANCE
ACTIVITY FUND 7/1/08 ADDITIONS DELETIONS 6/30/09
ASSETS:
Cash $ 116,674 $ 340,044 $ 338,905 $ 117,813
Interfund Receivable - 359 - 359
Accounts Receivable 495 624 495 624
Prepaid Expenses - - - -
TOTAL ASSETS $ 117,169 $ 341,027 $ 339,400 $ 118,796
LIABILITIES:
Accounts Payable $ 13,106 $ 26,832 $ 13,106 $ 26,832
Intergovernmental Payable - - - -
Interfund Payables 261 2,070 261 2,070
Due to Student Organizations 103,802 312,125 326,033 89,894
TOTAL LIABILITIES $ 117,169 $ 341,027 $ 339,400 $ 118,796
PAYROLL FUND
ASSETS:
Cash $ 4,574 $ 17,574,909 $ 17,574,887 $ 4,596
Other Accounts Receivable - - - -
Interfund Receivable - - - -
TOTAL ASSETS $ 4,574 $ 17,574,909 $ 17,574,887 $ 4,596
LIABILITIES:
Accounts Payable $ - $ - $ - $ -
Interfund Payable 4,170 4,111 4,170 4,111
Accrued Payroll Deductions 404 17,570,798 17,570,717 485
TOTAL LIABILITIES $ 4,574 $ 17,574,909 $ 17,574,887 $ 4,596
ALL AGENCY FUNDS

ASSETS:
Cash $ 121,248 $ 17,914,953 $ 17,913,792 $ 122,409
Interfund Receivables - 359 - 359
Accounts Receivable 495 624 495 624
Prepaid Expenses - - - -
TOTAL ASSETS $ 121,743 $ 17,915,936 $ 17,914,287 $ 123,392
LIABILITIES:
Accounts Payable $ 13,106 $ 26,832 $ 13,106 $ 26,832
Intergovernmental Payable - - - -
Due to Student Organizations 103,802 312,125 326,033 89,894
Accrued Payroll Deductions 404 17,570,798 17,570,717 485
Interfund Payable 4,431 6,181 4,431 6,181
TOTAL LIABILITIES $ 121,743 $ 17,915,936 $ 17,914,287 $ 123,392
-73-
Combining Balance Sheet - All Capital Project Funds
As of June 30, 2009
TOTAL
2004 2008 - 32 2008 - 35 2008A - 33 CAPITAL
CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION PROJECT
FUND FUND FUND FUND FUNDS
ASSETS
Cash and cash equivalents $ - $ - $ - $ 3,177,905 $ 3,177,905
Restricted Cash - - -
Investments - - - 4,000,000 4,000,000
Due from other funds - - - - -
Other Receivables - - - 73,421 73,421
Prepaid Expenditures - - - - -
Other Current Assets - - - - -
TOTAL ASSETS $ - $ - $ - $ 7,251,326 $ 7,251,326
LIABILITIES AND FUND BALANCES
LIABILITIES:
Due to Other Funds $ - $ - $ - $ - $ -
Accounts Payable - - - 333,033 333,033
Intergovernmental Payables - - - - -
Deferred Revenues - - - - -
Other Current Liabilities - - - 3,596 3,596
TOTAL LIABILITIES - - - 336,629 336,629
----------- ----------- ----------- ----------- -----------
FUND BALANCES:
Reserved Fund Balance - - - - -
Unreserved Fund Balances - - - 6,914,697 6,914,697
TOTAL FUND BALANCES - - - 6,914,697 6,914,697
TOTAL LIABILITIES AND FUND BALANCES $ - $ - $ - $ 7,251,326 $ 7,251,326
-74-
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
All Capital Project Funds
TOTAL
2004 2008 - 32 2008 - 35 2008A - 33 CAPITAL
CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION PROJECT
FUND FUND FUND FUND FUNDS
REVENUES
Local Sources $ 115 $ 74,054 $ 3,123 $ 154,935 $ 232,227
State Sources - - - - -
Federal Sources - - - - -
TOTAL REVENUES 115 74,054 3,123 154,935 232,227
------------ ------------ ------------ ------------ ------------
EXPENDITURES
Instruction - - - - -
Support Services - 7,500 - 168,065 175,565
Operation of Non-Instructional Services - - - - -
Capital Outlay 20,661 8,937,335 1,249 2,756,395 11,715,640
Debt Service - - - - -
TOTAL EXPENDITURES 20,661 8,944,835 1,249 2,924,460 11,891,205
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (20,546) (8,870,781) 1,874 (2,769,525) (11,658,978)
Bond Proceeds - - - 9,750,000 9,750,000
Refunding Bond Proceeds - - - - -
Bond Discount - - - (65,778) (65,778)
Interfund Transfers In - - - - -
Payment to bond refunding escrow agent - - - - -
Refunds of Prior Year Receipts - - - - -
Operating Transfers Out - - (6,917) - (6,917)
TOTAL OTHER FINANCING SOURCES (USES) - - (6,917) 9,684,222 9,677,305
SPECIAL/EXTRAORDINARY ITEMS
Special Items - - - - -
Extraordinary Items - - - - -
NET CHANGE IN FUND BALANCES (20,546) (8,870,781) (5,043) 6,914,697 (1,981,673)
FUND BALANCES - BEGINNING 20,546 8,870,781 5,043 - 8,896,370
FUND BALANCES - ENDING $ - $ - $ - $ 6,914,697 $ 6,914,697
-75-
General Fund
Schedule on Tax Collectors' Receipts
HEIDELBERG LOWHILL LYNN WEISENBERG

CURRENT REAL ESTATE TAXES TOWNSHIP TOWNSHIP TOWNSHIP TOWNSHIP TOTALS
Original Assessment $ 75,591,400 $ 78,691,250 $ 98,407,700 $ 181,544,450 $ 434,234,800
Millage Rate 0.04741 0.04741 0.04741 0.04741 0.04741
Total Assessed Tax Amount 3,583,788 3,730,752 4,665,509 8,607,022 20,587,071
Less: Act 1 Reduction 149,402 103,083 185,685 223,896 662,066
TAX PER DUPLICATE 3,434,386 3,627,669 4,479,824 8,383,126 19,925,005
PLUS - Additions 163,373 166,528 1,422 462,916 794,239

- Penalties 9,869 12,911 15,449 17,084 55,313
TAXES TO BE COLLECTED 3,607,628 3,807,108 4,496,695 8,863,126 20,774,557

----------- ----------- ------------ -------------- -------------
LESS - Discounts 52,955 56,868 69,617 138,679 318,119
- Reductions 158,656 166,527 - 440,019 765,202
- Refunds - 1,247 453 19,643 21,343
- Returned to County 164,878 168,923 157,845 209,507 701,153
- Exonerations 4,385 - 8,901 21,720 35,006
NET CURRENT R. E. TAXES COLLECTED $ 3,226,754 $ 3,413,543 $ 4,259,879 $ 8,033,558 $ 18,933,734
INTERIM R. E. TAXES COLLECTED $ 35,197 $ 38,921 $ 48,436 $ 639,892 $ 762,446
-76-
General Fund
REVENUES
LOCAL SOURCES:
Current Real Estate Taxes $ 18,933,734
Interim Real Estate Taxes 762,446
Public Utility 28,061
Payment in Lieu of Taxes 5,707
Current Per Capita Taxes - 511 -
Current Per Capita Taxes - 679 -
Occupational Privilege Tax 58,290
Earned Income Tax 2,092,914
Real Estate Transfer Tax 202,389
Amusement Taxes 12,321
Delinquent Real Estate Taxes 777,088
Delinquent Interim Real Estate Taxes 37,106
Delinquent Per Capita Taxes - 511 303
Delinquent Per Capita Taxes - 679 215
Delinquent Occupation Taxes -
Interest 388,014
Admissions 55,420
Fees 6
Other Student Activity Income 17,271
Revenue Received from I.S. - State 30,000
I/U Services - Federal 402,470
Other Revenue I.U. Sources -
Rentals 20,709
Contributions 29,475
Regular Day School Tuition -
Summer School -
Adult School 8,537
Receipts from Other LEA's - Education 7,125
Other Tuition From Patrons 500
Miscellaneous 18,658
Refunds of Prior Yr. Expenditures 16,976
TOTAL LOCAL SOURCE REVENUE 23,905,735
STATE SOURCES:
Basic Subsidy - ESBE 5,317,738
Read to Succeed -
Charter Schools 150,633
School Performance -
Orphan Tuition 66,205
Homebound 180
Vocational Education -
Special Education 1,343,663
SUB-TOTAL 6,878,419
-77-
General Fund
REVENUE (CONT'D)
SUB-TOTAL (CARRIED FORWARD) $ 6,878,419
Transportation 1,046,051
Rentals 419,384
Health Services 42,877
State Property Tax Reduction Allocation 662,156
Dual Enrollment 10,640
Sewage -
PA Accountability Grant 218,260
Project 720 HS -
DCED Pavilion -
FICA Revenue 630,793
Retirement Revenue 390,342
Classrooms for the Future -
TOTAL STATE SOURCE REVENUE 10,298,922
FEDERAL SOURCES:
Title I 181,587
Title II A 6,641
Title II D -
Title V -
Title II -
Drug Free 4,777
Classroom Reduction Revenue -
TOTAL FEDERAL SOURCE REVENUE 193,005
TOTAL REVENUE $ 34,397,662
EXPENDITURES
Regular Programs - Elem./Secondary $ 12,458,375
Federally Funded Regular Programs 182,454
Special Education -
Life Skills Support - Public 36,179
Deaf or Hearing Impaired Support -
Blind or Visually Impaired Support -
Speech & Language Impaired 196,299
Emotional Support - Public 107,169
Academic Support -
Learning Support - Public 1,847,334
Gifted Support 175,830
Physical Support -
Multi-Handicapped Support -
Early Intervention Support -
Other Support 1,748,438
SUB-TOTAL 16,752,078
-78-
General Fund

Home Economics -
Business Education -
Other Vocational Education Programs 867,258
Drivers Education 2,100
Homebound Instruction 401
Adjudicated/Court Placed Programs -
Alternative Education Program -
Additional Other Instructional Program -
Adult Education 6,066
Community College Programs 273,932
Supervision of Pupil Personnel Services 295,021
Guidance Services -
Counseling Services 646,407
Attendance Services -
Psychological Services 174,712
Other Pupil Personnel Services -
Support Services - Instructional Staff -
Technology Support Services 17,477
Educational Television Services 4,155
Computer Assisted Instruction Services 87,180
School Library Services 575,380
Instructional & Curriculum Dev. Service 226,715
Instructional Staff Development Services -
Instructional Staff Development 62,941
Instructional Staff Development - Non-certified 241
Other Instructional Staff Services -
Board Services 28,226
Board Treasurer Services -
Tax Assessment & Collection Service 107,118
Staff Relations -
Legal Services 74,748
Office of the Superintendent Services 262,648
Community Relations Services 20,586
Office of the Principal Services 1,218,391
Other Administration Services -
Medical Services 239,751
Dental Services 388
Nursing Services -
Non-Public Health Services -
Support Services - Business 520,376
SUB-TOTAL 22,464,296
-79-
General Fund

Operation and Maintenance of Plant Services 3,387,181
Security Services 74,220
Student Transportation Services 2,050,135
Support Services - Central -
System-Wide Technology Services 239,552
Recruitment and Placement Services 203,094
Staff Development Services 28,125
Non-Instructional Dev - Non Cert 15,843
Other Support Services 33,920
School Sponsored Student Activities 181,514
School Sponsored Athletics 531,454
Community Services 5,727
Existing Site Improvement Services -
Building Acquisition and Construction Services -
Existing Building Improvement Services -
Debt Service 3,733,253
Refund of Prior Yr. Receipts 9,561
TOTAL EXPENDITURES 32,957,875
EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES 1,439,787

Proceeds from Extended Term Financing -
Debt Service Fund Transfers -
Transfer from Activity Funds -
Transfer from Tiger Concession Fund -
Sale of Fixed Assets -
Special Revenue Fund Transfers (627,136)
Capital Projects Funds Transfers 6,917
Debt Service Fund Transfers -
Food Service Fund Transfers (10,000)
Tiger Concession Fund Transfers -
Activity Fund Transfers -
TOTAL OTHER FINANCING SOURCES
(USES) (630,219)
Special Items -
Extraordinary Items - (630,219)
NET CHANGE IN FUND BALANCE 809,568
FUND BALANCE - JULY 1, 2008 4,893,762
FUND BALANCE - JUNE 30, 2009 $ 5,703,330
-80-
Food Service Fund
REVENUES
Student Payments $ 621,934
Adult Payments 7,312
Kitchen Sales 3,752
Miscellaneous -
Federal Donated Commodities 44,466
Federal Subsidies 159,589
State Subsidies 42,533
Transfer from General Fund 10,000
Interest 154
Special Events 17,330 $ 907,070
COST OF SALES
Beginning Inventory - July 1, 2008 9,660
Purchases - Food and Milk 390,998
- Donated Commodities 44,466
- Supplies 29,612
LESS: Ending Inventory - June 30, 2009 (12,028) 462,708
GROSS PROFIT 444,362
EXPENSES
Payroll 290,395
Taxes and Benefits 92,014
Professional Services -
Purchased Property Services 32,899
Travel 3,151
Advertising 13
Tech Communications 60
Printing & Binding 890
Depreciation 32,542
Equipment 4,690
Dues & Fees 268 456,922
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (12,560)
Gain or Loss on Sale of Fixed Assets (3,642)

Capital Contributions 4,690 1,048
CHANGES IN NET ASSETS (11,512)
NET ASSETS - JULY 1, 2008 262,849
NET ASSETS - JUNE 30, 2009 $ 251,337
-81-
Food Service Fund
As of June 30, 2009
ASSETS
Cash $ 6,196
Interfund Receivables 95
Subsidies Receivable 8,330
Other Receivable 386
Inventories 12,028
Prepaid Expenses 3,338
Building Improvements, net of Accum. Depreciation 86,365
Equipment, net of Accum. Depreciation 179,918
TOTAL ASSETS $ 296,656
LIABILITIES AND NET ASSETS

Accounts Payable 245
Interfund Accounts Payable 13,052
Accrued Salaries and Benefits 16,051
Accrued Compensated Absences -
Other Retirement Benefits 4,153
Deferred Revenue 11,818
NET ASSETS - JUNE 30, 2009 251,337
TOTAL LIABILITIES AND NET ASSETS $ 296,656
-82-
Tiger Concession Fund
REVENUES
Concession Stand Revenues $ 11,708
Other Revenue 5,985
Interest 462
State Sources 114
Transfer from the General Fund - $ 18,269
COST OF SALES
Beginning Inventory - July 1, 2008 -
Food 5,640
Supplies 2,743
Less: Ending Inventory - June 30, 2009 - 8,383
GROSS PROFIT 9,886
EXPENSES
Payroll 1,940
Taxes and Benefits 240
Other Professional Services -
Repairs and Maintenance 3,790
Student Transportation Svcs. 614 6,584
CHANGES IN NET ASSETS 3,302
NET ASSETS - JULY 1, 2008 45,315
NET ASSETS - JUNE 30, 2009 $ 48,617
-83-
Payroll Fund
Statement of Receipts and Disbursements
CASH BALANCE - JULY 1, 2008 $ 4,574

RECEIPTS
Transfers From Other Funds $ 17,573,429
Interest 1,480 17,574,909
TOTAL FUNDS AVAILABLE 17,579,483
DISBURSEMENTS 17,574,887
CASH BALANCE - JUNE 30, 2009 $ 4,596
RECONCILIATION
Due from Other Funds $ -
Bonds -
Retro Retirement -
Occupational Tax 400
Due to General Fund 4,111
Fica -
Federal Income Tax -
Cancer Insurance 85
TOTAL LIABILITIES $ (4,596)
Capital Reserve Fund

Statement of Revenues and Expenditures
FUND BALANCE - JULY 1, 2008 $ 1,316,842

REVENUES
Interest $ 25,167
Transfer from General Fund 627,136 652,303
EXPENDITURES
INSTRUCTIONAL:
Equipment -
SUPPORT SERVICES:
Equipment -
CAPITAL OUTLAY:
Professional Services 14,107
Technical Services -
Construction 489,179
Advertising -
Bldg. Improvements -
Equipment -
Fees - 503,286
-84-
2004 Construction Fund
FUND BALANCE - JULY 1, 2008 $ 20,546
REVENUES AND OTHER FINANCING SOURCES

Proceeds from Note Issues $ -
Interest 115 115
TOTAL FUNDS AVAILABLE 20,661
EXPENDITURES AND OTHER FINANCING USES

CAPITAL OUTLAY:
Professional Services 194
Advertising -
Construction 20,467
Equipment -
Miscellaneous - 20,661
FUND BALANCE - JUNE 30, 2009 $ -
2008 Construction Fund - 32

FUND BALANCE - JULY 1, 2008 $ 8,870,781

Proceeds from Bond Issues $ -
Interest 74,054 74,054

SUPPORT SERVICES:
Repairs and Maintenance 7,500
CAPITAL OUTLAY:
Advertising 998
Construction 8,319,299
Insurance -
Land Improvements -
Equipment 92,625
Dues and Fees 173,419
Miscellaneous - 8,944,835
-85-
2008 Construction Fund - 35
FUND BALANCE - JULY 1, 2008 $ 5,043

Proceeds from Bond Issues $ -
Interest 3,123 3,123
TOTAL FUNDS AVAILABLE 8,166

SUPPORT SERVICES:
Professional Services -
CAPITAL OUTLAY:
Advertising -
Construction -
Insurance -
Land Improvements -
Equipment -
Dues and Fees -
OTHER FINANCING USES:
Transfer to General Fund 6,917 8,166
-86-
2008 A Construction Fund - 33
FUND BALANCE - JULY 1, 2008 $ -

Proceeds from Bond Issues $ 9,750,000
Interest 154,935 9,904,935

SUPPORT SERVICES:
Insurance 35,800
Printing 2,489
CAPITAL OUTLAY:
Advertising -
Construction 1,917,521
Insurance -
Land Improvements -
Equipment 6,020
Dues and Fees 20
OTHER FINANCING USES:
Bond Discount 65,778 2,990,238
-87-
Schedule on General Obligation Bonds - Series of 2001
INTEREST
RATE PER
MATURITY DATE ANNUM INTEREST PRINCIPAL
September 15, 2009 4.25% $ 73,296 $ 185,000
March 15, 2010 5.00% 69,365 1,260,000
September 15, 2010 4.40% 37,865 170,000
March 15, 2011 5.25% 34,125 1,300,000
TOTAL OUTSTANDING $ 214,651 $ 2,915,000

INTEREST
RATE PER
September 15, 2009 2.50% $ 92,823 $ 150,000
March 15, 2010 90,948
September 15, 2010 2.75% 90,949 195,000
March 15, 2011 88,267
September 15, 2011 2.90% 88,268 1,510,000
March 15, 2012 66,372
September 15, 2012 3.05% 66,373 1,560,000
March 15, 2013 42,583
September 15, 2013 3.15% 42,583 1,610,000
March 15, 2014 17,225
September 15, 2014 3.25% 17,225 1,060,000
March 15, 2015 - -
-88-
INTEREST
RATE PER
August 15, 2009 $ 43,197 $ -
February 15, 2010 2.85% 43,198 15,000
August 15, 2010 42,984
February 15, 2011 3.05% 42,984 135,000
August 15, 2011 40,925
February 15, 2012 3.05% 40,925 185,000
August 15, 2012 38,104
February 15, 2013 3.25% 38,104 185,000
August 15, 2013 35,097
February 15, 2014 3.35% 35,098 190,000
August 15, 2014 31,915
February 15, 2015 3.45% 31,914 780,000
August 15, 2015 18,460
February 15, 2016 3.55% 18,460 1,040,000
-89-
Schedule on General Obligation Bonds - Series A of 2007
INTEREST
RATE PER
August 15, 2009 $ 205,491 $ -
February 15, 2010 3.800% 205,491 5,000
August 15, 2010 205,396
February 15, 2011 3.850% 205,397 5,000
August 15, 2011 205,300
February 15, 2012 3.900% 205,300 5,000
August 15, 2012 205,202
February 15, 2013 3.950% 205,203 5,000
August 15, 2013 205,104
February 15, 2014 4.000% 205,104 5,000
August 15, 2014 205,004
February 15, 2015 4.050% 205,004 5,000
August 15, 2015 204,902
February 15, 2016 4.100% 204,903 5,000
August 15, 2016 204,800
February 15, 2017 4.100% 204,800 480,000
August 15, 2017 194,960
February 15, 2018 4.100% 194,960 500,000
August 15, 2018 184,710
February 15, 2019 4.100% 184,710 520,000
August 15, 2019 174,050
February 15, 2020 4.100% 174,050 540,000
August 15, 2020 162,980
February 15, 2021 4.100% 162,980 565,000
August 15, 2021 151,397
February 15, 2022 4.250% 151,398 585,000
August 15, 2022 138,966
February 15, 2023 4.250% 138,966 610,000
August 15, 2023 126,004
February 15, 2024 4.250% 126,004 635,000
August 15, 2024 112,510
February 15, 2025 4.250% 112,510 665,000
August 15, 2025 98,379
February 15, 2026 4.250% 98,378 690,000
August 15, 2026 83,716
February 15, 2027 4.250% 83,716 720,000
August 15, 2027 68,416
February 15, 2028 4.250% 68,417 750,000
August 15, 2028 52,479
February 15, 2029 4.250% 52,478 785,000
August 15, 2029 35,798
February 15, 2030 4.300% 35,797 815,000
August 15, 2030 18,275
February 15, 2031 4.300% 18,275 850,000
TOTAL OUTSTANDING $ 6,487,680 $ 9,745,000
-90-
Schedule on General Obligation Notes - Series A of 2007
VARIABLE
INTEREST
RATE PER
August 1, 2009 $ 6,334 $ -
February 1, 2010 36,422
August 1, 2010 0.085% 35,828 100,000
February 1, 2011 35,993
August 1, 2011 0.085% 35,407 100,000
February 1, 2012 35,565
August 1, 2012 0.085% 35,178 100,000
February 1, 2013 35,136
August 1, 2013 0.085% 34,564 100,000
February 1, 2014 34,708
August 1, 2014 0.085% 34,142 100,000
February 1, 2015 34,279
August 1, 2015 0.085% 33,721 700,000
February 1, 2016 31,280
August 1, 2016 0.085% 30,940 800,000
February 1, 2017 27,852
August 1, 2017 0.085% 27,398 800,000
February 1, 2018 24,424
August 1, 2018 0.085% 24,026 800,000
February 1, 2019 20,996
August 1, 2019 0.085% 20,654 900,000
February 1, 2020 17,140
August 1, 2020 0.085% 16,953 900,000
February 1, 2021 13,283
August 1, 2021 0.085% 13,067 1,000,000
February 1, 2022 8,998
August 1, 2022 0.085% 8,852 1,000,000
February 1, 2023 4,713
August 1, 2023 0.085% 4,637 1,100,000
-91-
INTEREST
MATURITY DATE PER ANNUM INTEREST PRINCIPAL
September 15, 2009 $ 177,195 $ -
March 15, 2010 3.00% 177,195 5,000
September 15, 2010 177,120
March 15, 2011 3.00% 177,120 5,000
September 15, 2011 177,045
March 15, 2012 3.00% 177,045 5,000
September 15, 2012 176,970
March 15, 2013 3.25% 176,970 5,000
September 15, 2013 176,889
March 15, 2014 3.25% 176,889 5,000
September 15, 2014 176,807
March 15, 2015 3.25% 176,808 5,000
September 15, 2015 176,726
March 15, 2016 3.25% 176,726 5,000
September 15, 2016 176,645
March 15, 2017 3.30% 176,645 425,000
September 15, 2017 169,632
March 15, 2018 3.40% 169,633 475,000
September 15, 2018 161,558
March 15, 2019 3.50% 161,557 520,000
September 15, 2019 152,458
March 15, 2020 3.55% 152,457 475,000
September 15, 2020 144,026
March 15, 2021 3.65% 144,026 525,000
September 15, 2021 134,445
March 15, 2022 3.70% 134,445 490,000
September 15, 2022 125,380
March 15, 2023 3.75% 125,380 545,000
September 15, 2023 115,161
March 15, 2024 3.80% 115,162 510,000
September 15, 2024 105,471
March 15, 2025 3.85% 105,471 665,000
September 15, 2025 92,670
March 15, 2026 3.90% 92,670 690,000
September 15, 2026 79,215
March 15, 2027 4.00% 79,215 720,000
September 15, 2027 64,815
March 15, 2028 4.00% 64,815 750,000
September 15, 2028 49,815
March 15, 2029 4.10% 49,815 775,000
September 15, 2029 33,927
March 15, 2030 4.10% 33,928 810,000
September 15, 2030 17,322
March 15, 2031 4.10% 17,322 845,000
-92-
Schedule on General Obligation Bonds - Series A of 2008
INTEREST
MATURITY DATE PER ANNUM INTEREST PRINCIPAL
August 15 , 2009 $ 207,133 $ -
February 15, 2010 3.000% 207,132 5,000
August 15, 2010 207,058
February 15, 2011 3.000% 207,057 5,000
August 15, 2011 206,983
February 15, 2012 3.000% 206,982 5,000
August 15, 2012 206,908
February 15, 2013 3.500% 206,907 5,000
August 15, 2013 206,831
February 15, 2014 3.100% 206,830 5,000
August 15, 2014 206,754
February 15, 2015 3.200% 206,753 5,000
August 15, 2015 206,674
February 15, 2016 3.450% 206,673 260,000
August 15, 2016 202,189
February 15, 2017 3.650% 202,188 365,000
August 15, 2017 195,528
February 15, 2018 3.850% 195,527 380,000
August 15, 2018 188,213
February 15, 2019 4.100% 188,213 390,000
August 15, 2019 180,218
February 15, 2020 4.250% 180,218 410,000
August 15, 2020 171,505
February 15, 2021 4.350% 171,505 425,000
August 15, 2021 162,261
February 15, 2022 4.400% 162,261 445,000
August 15, 2022 152,471
February 15, 2023 4.500% 152,471 465,000
August 15, 2023 142,009
February 15, 2024 4.600% 142,009 485,000
August 15, 2024 131,096
February 15, 2025 4.550% 131,096 505,000
August 15, 2025 119,608
February 15, 2026 4.650% 119,608 530,000
August 15, 2026 107,285
February 15, 2027 4.650% 107,285 555,000
August 15, 2027 94,381
February 15, 2028 4.750% 94,381 580,000
August 15, 2028 80,606
February 15, 2029 4.750% 80,606 610,000
August 15, 2029 66,119
February 15, 2030 4.800% 66,119 640,000
August 15, 2030 50,759
February 15, 2031 4.800% 50,759 665,000
August 15, 2031 34,799
February 15, 2032 4.850% 34,799 700,000
August 15, 2032 17,824
February 15, 2033 4.850% 17,824 735,000
-93-
S I N G L E A U D I T S E C T I O N
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED JUNE 30, 2009
PASS ACCRUED ACCRUED
THROUGH OR OR
FEDERAL GRANTOR SOURCE FEDERAL GRANTOR AWARD TOTAL (DEFERRED) (DEFERRED)
PROJECT TITLE CODE CFDA NO. NUMBER GRANT PERIOD AMOUNT RECEIVED 7/1/08 REVENUE EXPEND. 6/30/2009 FOOTNOTES
U.S. DEPT. OF EDUCATION

PASSED THROUGH THE PA
DEPARTMENT OF EDUCATION
ESEA - TITLE I I 84.010 013-080305 7/1/07 - 9/30/08 $ 183,637 $ 59,090 $ 59,090 $ - $ - $ - 1
ESEA - TITLE I I 84.010 013-090305 7/1/08 - 9/30/09 $ 180,587 157,038 - 180,587 180,587 23,549
ESEA - TITLE I ACADEMIC ACHEIVEMENT I 84.010 077-090305 7/1/08 - 9/30/09 $ 1,000 429 - 1,000 1,000 571
ESEA - TITLE IIA - IMPROVING TEACHER QUALITY I 84.367 020-080305 7/1/07 - 9/30/08 $ 47,001 6,267 6,267 - - -
ESEA - TITLE IIA - IMPROVING TEACHER QUALITY I 84.367 020-090305 7/1/08 - 9/30/09 $ 48,116 17,184 - 6,641 6,641 (10,543)
DRUG FREE SCHOOLS I 84.186 100-080305 7/1/07 - 9/30/08 $ 6,677 3,544 3,262 282 282 -
DRUG FREE SCHOOLS I 84.186 100-090305 7/1/08 - 9/30/09 $ 5,977 3,842 - 4,495 4,495 653
PASSED THROUGH THE

CARBON COUNTY I.U.
IDEA - B I 84.027 N/A 7/1/07 - 6/30/08 $ 401,956 100,489 100,489 - - - 2
IDEA - B I 84.027 N/A 7/1/08 - 6/30/09 $ 400,920 30,690 - 400,920 400,920 370,230 2
TITLE III - ENGLISH LANGUAGE ACQUISITION GRANT I 84.365 N/A 7/1/08 - 9/30/09 $ 2,410 - - 1,050 1,050 1,050 2
-
PASSED THROUGH THE -
MIDWESTERN I.U. -
TITLE I - SPAC MINI GRANT I 84.010 N/A 7/1/08 - 9/30/09 $ 500 300 - 500 500 200 3
TOTAL U. S. DEPARTMENT OF EDUCATION 378,873 169,108 595,475 595,475 385,710
-------- -------- -------- -------- --------
U. S. DEPARTMENT OF AGRICULTURE
PASSED THROUGH THE PA DEPT.
OF EDUCATION:
NATIONAL SCHOOL LUNCH I 10.555 N/A 7/1/07 - 6/30/08 N/A F 4,684 4,684 - - - 6
NATIONAL SCHOOL LUNCH S N/A N/A 7/1/07 - 6/30/08 N/A 817 817 - - -
NATIONAL SCHOOL LUNCH I 10.555 N/A 7/1/08 - 6/30/09 N/A F 140,514 - 146,366 146,366 5,852 6
NATIONAL SCHOOL LUNCH S N/A N/A 7/1/08 - 6/30/09 N/A 2,314 - 3,196 3,196 882
NATIONAL SCHOOL BREAKFAST I 10.553 N/A 7/1/07 - 6/30/08 N/A F 526 526 - - - 6
NATIONAL SCHOOL BREAKFAST S N/A N/A 7/1/07 - 6/30/08 N/A 45 45 - - -
NATIONAL SCHOOL BREAKFAST I 10.553 N/A 7/1/08 - 6/30/09 N/A F 12,522 - 13,223 13,223 701 6
NATIONAL SCHOOL BREAKFAST S N/A N/A 7/1/08 - 6/30/09 N/A 21,698 21,750 21,750 52
SPECIAL MILK I 10.556 N/A 7/1/07 - 6/30/08 N/A F 76 76 - - - 6
PASSED THROUGH THE PA DEPT.

OF AGRICULTURE:
U.S.D.A. COMMODITIES I 10.550 N/A 7/1/08 - 6/30/09 N/A 44,466 (56) 42,711 42,711 (1,811) 4,5,6
TOTAL U.S. DEPARTMENT OF AGRICULTURE 227,662 6,092 227,246 227,246 5,676
TOTAL AWARDS $ 606,535 $ 175,200 $ 822,721 $ 822,721 $ 391,386
LESS - STATE SHARE (24,874) (862) (24,946) (24,946) (934)
TOTAL FEDERAL AWARDS $ 581,661 $ 174,338 $ 797,775 $ 797,775 $ 390,452
-94-
Notes to the Schedule of Expenditures of Federal Awards
Note 1 - Significant Accounting Policies
The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual
basis of accounting for all federal awards charged to governmental funds and on the accrual basis of
accounting for all federal awards charged to proprietary funds, as contemplated by accounting principles,
generally accepted in the United States of America.
Note 2 - Organization and Scope
The District recognized 1.7% of its total general fund revenue in federal awards, and 22.5% of its total
enterprise fund revenue.
Note 3 - Program Disclosure – Footnotes
U.S. Department of Education
1. Total received from the Title 1 07-08 Grant was actually $73,426. Only $59,090 is shown as
received on the SEFA due to returning funds back to PDE in the amount of $14,336.
2. The IDEA and Title III grant’s passed through the Carbon-Lehigh I.U., are reflected as local
source revenue in the basic financial statements as per PDE instructions.
3. The Title I SPAC Mini Grant, passed through the Midwestern I.U., is reflected as local source
revenue in the basic financial statements, as per PDE instructions.
U. S. Department of Agriculture
4. The District received non-monetary assistance of $44,466 in the form of commodities.

These commodities are valued at U.S.D.A.’s approximate costs. During the 2008-09 fiscal-
year, the District used $42,711 in commodities and established a year-end inventory of
$1,811 at June 30, 2009.
5. The revenues reported on the SFA represent the commodities used versus the financial
statements, which recognize commodity revenue when received.
6. The National School Lunch, Breakfast Programs, and Donated Commodities are considered
a cluster program in accordance with OMB Circular A-133 Compliance Supplement.
FINANCIAL STATEMENT RECONCILIATION
General Fund Federal Source Revenues $ 193,005

Federal Grants in Local Sources 402,470
Food Service Fund Federal Revenue 204,055
Total Federal Revenue, per financial statements 799,530
Less - Medical Access -

Change in Donated Commodities (1,755)
Total Federal Revenue Reported on SEFA $ 797,775
--95-
Schedule of Findings and Questioned Costs
Section I - Summary of Auditor Results

Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:
• Material weakness(es) Identified? yes no
• Significant Deficiencies identified that

are not considered to be material
weaknesses? yes none reported
Noncompliance material to financial yes no

statements noted?
Federal Awards
Internal control over major programs:
• Material weakness(es) Identified? yes no
• Significant Deficiencies identified that

are not considered to be material
weaknesses? yes none reported
Type of auditor's report issued on compliance for major programs: 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 program:
CFDA Number(s) Name of Federal Program or Cluster

IDEA 84.027
*These programs are considered a cluster of programs in accordance with OMB Circular A-133.
Percentage of programs tested to total awards 50.3%
Dollar threshold used to distinguish between

type A and type B program: $ 300,000
Auditee qualified as low-risk auditee? yes no
-100-
Schedule of Findings and Questioned Costs
Section II - Financial Statement Findings
We did not discover any findings relating to the basic financial statements, which are required to be
reported in accordance with generally accepted government auditing standards.
Section III - Findings and Questioned Costs for Federal Awards
We did not discover any findings or questioned costs on federal awards, in accordance with the criteria
established in OMB Circular A-133, Section 510 (a).
Audit Follow-up Procedures
We did not perform any follow-up procedures, since there were no findings from the previous year.
-101-

Independent Single Audit Report 2008-2009

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REPORT ON

NORTHWESTERN LEHIGH SCHOOL DISTRICT

Single Audit Report

For the Fiscal Year Ended June 30, 2009

Transmittal Letter ........................................................................................................................... 1

Report Distribution List ................................................................................................................... 7

Independent Auditor's Report.................................................................................................... 8 - 9

Management's Discussion and Analysis .............................................................................. 10 – 17

Basic Financial Statements

District-wide Financial Statements:

Statement of Net Assets ................................................................................................. 18

Fund Financial Statements:

Balance Sheet - Governmental Funds ........................................................................... 20

Reconciliation of the Governmental Funds Balance Sheet

Statement of Revenues, Expenditures, and Changes in Fund

Reconciliation of the Governmental Funds Statement of Revenues,

Statement of Net Assets - Proprietary Funds................................................................. 25

Statement of Revenues, Expenses, and Changes in

Statement of Cash Flows - Proprietary Funds ........................................................ 27 - 28

Statement of Net Assets - Fiduciary Funds.................................................................... 29

Single Audit Report

For the Fiscal Year Ended June 30, 2009

TABLE OF CONTENTS (continued)

Statement of Changes in Net Assets - Fiduciary Funds .................................................... 30

Statement of Revenues, Expenditures, and Changes in Fund

Notes to Basic Financial Statements.................................................................................. 32– 65

Required Supplemental Information

Schedule of Funding Progress ........................................................................................... 66

Combining Statement of Fiduciary Net Assets - Private Purpose

Combining Statement of Changes in Fiduciary Net Assets -

Combining Statement of Net Assets - All Enterprise Funds .......................................... 68

Combining Statement of Revenues, Expenses, and Changes in

Combining Statement of Cash Flows - All Enterprise Funds................................. 70 – 71

Combining Balance Sheet - All Agency Funds .............................................................. 72

Combining Statement of Changes in Assets and Liabilities -

Combining Balance Sheet - All Capital Project Funds................................................... 74

Combining Statement of Revenues, Expenditures, and Changes in

General Fund - Schedule on Tax Collectors' Receipts .................................................. 76

General Fund - Statement of Revenues, Expenditures, and

Food Service Fund - Statement of Revenues, Expenses, and

Food Service Fund - Statement of Net Assets............................................................... 82

Single Audit Report

For the Fiscal Year Ended June 30, 2009

TABLE OF CONTENTS (continued)

Tiger Concession Fund - Statement of Revenues, Expenses, and

Payroll Fund - Statement of Receipts and Disbursements ............................................ 84

Capital Reserve Fund - Statement of Revenues and Expenditures.............................. 84

2004 Construction Fund - Statement of Revenues and Expenditures .......................... 85

2008 Construction Fund – 32 – Statement of Revenues and Expenditures ................. 85

2008 Construction Fund – 35 – Statement of Revenues and Expenditures ................. 86

2008 A Construction Fund -33 – Statement of Revenue and Expenditures ................. 87

General Long-Term Debt:

Schedule on General Obligation Bonds - Series of 2001 .............................................. 88

Schedule on General Obligation Bonds- Series of 2003 ............................................... 88

Schedule on General Obligation Bonds - Series of 2005 .............................................. 89

Schedule on General Obligation Bonds – Series A of 2007.......................................... 90

Schedule on General Obligation Notes – Series A of 2007........................................... 91

Schedule on General Obligation Bonds – Series of 2008 ............................................. 92

Schedule on General Obligation Bonds – Series A of 2008.......................................... 93

Single Audit Section

Schedule of Expenditures of Federal Awards .............................................................................. 94

Notes to the Schedule of Expenditures of Federal Awards ......................................................... 95

Independent Auditor’s Report on Internal Control over Financial Reporting

Independent Auditor’s Report on Compliance with Requirements