Acton-Boxborough Regional School District Management’s Discussion and Analysis June 30, 2024
As management of the Acton-Boxborough Regional School District (the “District”), we offer readers of these financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2024. We encourage readers to consider the information presented in this report.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. These basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of finances, in a manner similar to private-sector business. In that regard, these financial statements reflect multi-generational assets and liabilities that are not part of the financial statements of governmental funds, as discussed below. The statement of net position presents information on all assets, liabilities and deferred inflows/outflows of resources, with the difference between the two reported as net position. Included here are capital assets such as school buildings and vehicles, with the provision for accumulated depreciation. Also included are multi-generational liabilities such as bonded debt and actuarial liabilities for pension and other postemployment benefits. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position is improving or deteriorating. The statement of activities presents information showing how the District’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., earned but unused vacation leave). Construction of the Douglas & Gates elementary school continued during 2024, and the building opened for students in late August of 2022. The District issued a $5,000,000 bond anticipation note to temporarily fund the project and has reported a $1.0 million receivable from the Massachusetts School Building Authority based on costs incurred that are believed to be eligible for reimbursement. The project costs have been capitalized and increase the District’s investment in fixed assets. Both of the government-wide financial statements distinguish functions that are principally supported by member town assessments and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The District does not have any activities that qualify to be reported as business-type activities.
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