Financial Accounting for Local and State School Systems: 2009 Edition
NCES 2009-325
June 2009

Exhibit D-9.  Sample Independent School District Statement of Revenues, Expenses, and Changes in Fund Net Assets—Proprietary Funds: For the Year Ended June 30, 20X2
Food Services
Service Fund—
Food service sales $4,750,350
Charges to other funds 23,864,586
Total operating revenues 4,750,350 23,864,586
Payroll costs 10,494,786
Professional and contract services 343,439
Supplies and materials 8,773,317
Depreciation 984,490
Other operating costs 22,639,927
  Total operating expenses 20,596,032 22,639,927
Operating income (loss) (15,845,682) 1,224,659
Interest income 301,410
State matching and other 292,448
Grants—child nutrition program 16,306,787
  Total nonoperating revenue (expenses) 16,900,645
  Change in net assets 1,054,963 1,224,659
Total net assets—July 1, 20X1 8,846,344 4,797,932
Total net assets—June 30, 20X2 $9,901,307 $6,022,591
Note: The district uses the internal service fund to charge its programs for workers' compensation and unemployment insurance. The Food Service enterprise fund is covered by the self-insurance program and is charged for its pro-rata share—approximately 3.8%—of the total cost of the program. Therefore, that percentage of the internal service fund's change in net assets should be allocated back to the enterprise fund so that the internal service fund "breaks even" with respect to internal charges. However, because the amount of this "look-back" adjustment for the enterprise fund is so small (less than one fourth of 1 percent of total expenses), no adjustment needs to be made and, consequently, no reconciliation is necessary. The entire amount of the change in net assets ($1,224,659) is allocated back to the major programs reported as governmental activities.