Page 27 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
(UNAUDITED)

The management’s discussion and analysis of Hudson City School District’s (the “District”) financial performance
provides an overall review of the District’s financial activities for the fiscal year ended June 30, 2017. The intent of this
discussion and analysis is to look at the District’s financial performance as a whole; readers should also review the
transmittal letter, the basic financial statements and the notes to the basic financial statements to enhance their
understanding of the District’s financial performance.

Financial Highlights

Key financial highlights for 2017 are as follows:

 In total, net position decreased $3,800,683 from 2016’s net position. Net position of governmental activities
decreased $3,832,586 and net position of business-type activities increased $31,903.

 Total governmental activities revenues were $66,628,895. General revenues related to governmental activities
accounted for $57,823,415 in revenue or 86.78% of all revenues. Program specific revenues related to governmental
activities in the form of charges for services and sales, grants and contributions accounted for $8,805,480 or 13.22%
of total revenues.

 The District had $70,461,481 in expenses related to governmental activities; only $8,805,480 of these expenses was
offset by program specific charges for services, grants or contributions. General revenues supporting governmental
activities (primarily taxes and unrestricted grants and entitlements) of $57,823,415 were not adequate to provide for
these programs.

 The District had $1,467,886 in expenses related to business-type activities; program specific revenues in the form of
charges for services amounted to $1,443,154. Business-type activities also received general revenues of $56,635 in
the form of grants.

 The District’s only major governmental fund is the general fund. The general fund had $58,055,877 in revenues and
$58,794,946 in expenditures and other financing uses. This resulted in a decrease in fund balance from $31,589,192
to $30,850,123.

Using the Comprehensive Annual Financial Report (CAFR)

This annual report consists of a series of financial statements and notes to those statements. These statements are
organized so the reader can understand the District as a financial whole, or as an entire operating entity. The statements
then proceed to provide an increasingly detailed look at specific financial activities.

The statement of net position and statement of activities provide information about the activities of the whole District,
presenting both an aggregate view of the District’s finances and a longer-term view of those finances. Fund financial
statements provide the next level of detail. For governmental funds, these statements tell how services were financed in
the short-term as well as what remains for future spending. The fund financial statements also look at the District’s most
significant funds with all other nonmajor funds presented in total in one column. In the case of the District, the general
fund is the most significant fund, and the only governmental fund reported as a major fund.

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