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HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016

(UNAUDITED)

The following table assists in illustrating the expenditures of the general fund.

Expenditures 2016 2015 Percentage
Instruction Amount Amount Change
Support services
Other non-instructional services $ 33,710,259 $ 34,463,037 (2.18) %
Extracurricular activities 20,800,256 20,287,942 2.53 %
Debt service 6,210 6,000 3.50 %
1,098,373 1,006,243 9.16 %
Total 699,282 766,342 (8.75) %

$ 56,314,380 $ 56,529,564 (0.38) %

Overall, general fund expenditures were comparable to the prior year and there were no significant increases or
decreases. Employee wages and benefits costs rose slightly in fiscal year 2016. However, general fund expenditures
decreased in several areas, including fuel and utilities.

Enterprise Fund

The District maintains an enterprise fund to account for the community education program. Since the enterprise fund is
accounted for on the same basis of accounting as business-type activities (the accrual basis of accounting), the statement
of net position and the results of operations on the fund financial statements mirror those reported as business-type
activities on the District-wide financial statements. See page F 14 for a discussion of the District’s business-type
activities.

General Fund Budgeting Highlights

The District’s budget is prepared according to Ohio law and is based on accounting for certain transactions on a basis of
cash receipts, disbursements and encumbrances. The District uses site-based budgeting and the budgeting systems are
designed to tightly control total site budgets but provide flexibility for site management. The most significant budgeted
fund is the general fund.

For the general fund, both the original and final budgeted revenues and other financing sources were $61,007,738.
Actual revenues and other financing sources were $61,418,518, or $410,780 (0.67%) more than the final budget.

General fund original and final budget appropriations (expenditures and other financing uses) were $61,201,357. The
actual budget basis expenditures and other financing uses for fiscal year 2016 totaled $57,469,653, which is $3,731,704
(6.10%) less than the final budget appropriations. The District routinely appropriates more resources than actually
projected in order to reflect what expenditures would be in a worst-case scenario.

Capital Assets and Debt Administration

Capital Assets

At the end of fiscal year 2016, the District had $56,989,719 invested in land, land improvements, buildings and
improvements, furniture and equipment, vehicles and computer software. This entire amount is reported in governmental
activities.

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