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

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
	Enterprise Fund— Food Services	Internal Service Fund— Insurance
OPERATING REVENUES
Food service sales	$4,750,350	—
Charges to other funds	—	23,864,586
Total operating revenues	4,750,350	23,864,586

OPERATING EXPENSES
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

NONOPERATING REVENUES (EXPENSES)
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.

List of Exhibits