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					                                                             OFFICIAL STATEMENT

NEW ISSUE                                                                                                         BOND ANTICIPATION NOTES
      In the opinion of Trespasz & Marquardt, LLP, Bond Counsel to the School District, based upon an analysis of existing laws, regulations, rulings and
court decisions, and assuming, among other matters, compliance by the School District with certain covenants, interest on the Notes is excluded from gross
income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended. In the further opinion of Bond Counsel,
interest on the Notes is not a specific preference item for purposes of the federal individual and corporate alternative minimum taxes, such interest is,
however, included in adjusted current earnings when calculating federal corporate alternative minimum taxable income. Bond Counsel is also of the
opinion that interest on the Notes is excluded from adjusted gross income for purposes of personal income taxes imposed by the State of New York and the
City of New York. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual of
interest on the Notes. See "Tax Matters" herein.

     The School District will designate the Notes as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986
as amended.



                                                            $1,700,000
      FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
          ONONDAGA, CORTLAND AND MADISON COUNTIES, NEW YORK
                                                          GENERAL OBLIGATIONS

                                      $1,700,000 Bond Anticipation Notes, 2011
Dated: February 25, 2011                                                                                                        Due: July 25, 2011

    The Notes are general obligations of the Fabius-Pompey Central School District, Onondaga, Cortland and Madison
Counties, New York (the "School District"), all of the taxable real property within which is subject to the levy of ad valorem
taxes to pay the Notes and interest thereon without limitation as to rate or amount.

    The Notes will not be subject to redemption prior to maturity and may be registered in the name of the purchaser in
denominations of $5,000 or multiples thereof. Principal and interest will be payable in Federal Funds at such bank(s) or trust
company(ies) located and authorized to do business in the State of New York as may be selected by the purchaser(s).

    At the option of the purchaser(s), the Note(s) will be registered in the name of Cede & Co. as nominee of The
Depository Trust Company ("DTC"), New York, New York, which will act as the securities depository for the Notes.
Noteholders will not receive certificates representing their ownership interest in the Notes purchased.

    Under this option, payment of the principal of and interest on the Notes to the Beneficial Owner of the Notes will be
made by DTC Participants and Indirect Participants in accordance with standing instructions and customary practices.
Payment will be the responsibility of the DTC, subject to any statutory and regulatory requirements as may be in effect from
time to time. See "Book-Entry-Only System" herein.

    The Notes are offered when, as and if issued and received by the purchaser(s) and subject to the receipt of the
unqualified legal opinion as to the validity of the Notes of Trespasz & Marquardt, LLP, Syracuse, Bond Counsel, Syracuse,
New York. It is anticipated that the Notes will be available for delivery in New York, New York on or about February 25,
2011.

February 8, 2011

THE SCHOOL DISTRICT DEEMS THIS OFFICIAL STATEMENT TO BE FINAL FOR PURPOSES OF SECURITIES AND
EXCHANGE COMMISSION RULE 15c2-12, EXCEPT FOR CERTAIN INFORMATION THAT HAS BEEN OMITTED HEREFROM
IN ACCORDANCE WITH SAID RULE AND THAT WILL BE SUPPLIED WHEN THIS OFFICIAL STATEMENT IS UPDATED
FOLLOWING THE SALE OF THE OBLIGATIONS HEREIN DESCRIBED. THIS OFFICIAL STATEMENT WILL BE SO UPDATED
UPON REQUEST OF THE SUCCESSFUL BIDDER(S), AS MORE FULLY DESCRIBED IN THE NOTICE OF SALE WITH
RESPECT TO THE OBLIGATIONS HEREIN DESCRIBED. THE SCHOOL DISTRICT WILL COVENANT IN AN UNDERTAKING
TO PROVIDE NOTICE OF CERTAIN MATERIAL EVENTS AS DEFINED IN THE RULE. SEE "MATERIAL EVENT NOTICES"
HEREIN.
    FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
    ONONDAGA, CORTLAND AND MADISON COUNTIES, NEW YORK



                         BOARD OF EDUCATION



DONALD NEUGEBAUER                                              MARYAM WASMUND
    President                                                    Vice President



                                 CHIP ENGST
                                ERIC EXELBY
                              MARY B. GEORGE
                              VICKI LINDABURY
                                 JOHN REPAK



                     *    *    *   *    *    *   *     *   *



                              TIMOTHY P. RYAN
                                Superintendent




                              PETER W. MAHUNIK
                              Business Administrator




                    FISCAL ADVISORS & MARKETING, INC.
                         School District Financial Advisor
     No person has been authorized by the Fabius-Pompey Central School District to give any information or to make any
representations not contained in this Official Statement, and, if given or made, such information or representations must not
be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or solicitation of an
offer to buy any of the Notes in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in
such jurisdiction. The information, estimates and expressions of opinion herein are subject to change without notice, and
neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any
implication that there has been no change in the affairs of the Fabius-Pompey Central School District.

                                                                               TABLE OF CONTENTS

                                                                                        Page                                                                  Page
DESCRIPTION OF THE NOTES ........................................... 4                            SPECIAL PROVISIONS AFFECTING
  Book-Entry-Only System ....................................................... 5                    REMEDIES UPON DEFAULT ..................................... 19
  Certificated Notes................................................................... 6
  Purpose of Issue...................................................................... 6        MATERIAL EVENT NOTICES ............................................. 20

                                                                                                  MARKET AND RISK FACTORS .......................................... 21
THE SCHOOL DISTRICT....................................................... 6
  General Information ............................................................... 6           TAX MATTERS ....................................................................... 21
  Population............................................................................... 6
  Wealth and Income Indicators ................................................ 7                 LEGAL MATTERS.................................................................. 22
  Form of School Government .................................................. 7
  Budgetary Procedures............................................................. 7             LITIGATION............................................................................ 22
  Investment Policy ................................................................... 8
                                                                                                  RATING .................................................................................... 22
  State Aid ................................................................................. 8
  State Aid Revenues............................................................... 10
                                                                                                  MISCELLANEOUS ................................................................. 22
  STAR – School Tax Exemption ........................................... 10
  School Facilities ................................................................... 10
  Enrollment Trends ................................................................ 10           APPENDIX - A
  Employees ............................................................................ 11          GENERAL FUND - Balance Sheets
  Pension Payments ................................................................. 11
  Unemployment Rate Statistics.............................................. 14                   APPENDIX - A1
  Other Information ................................................................. 14             GENERAL FUND – Revenues, Expenditures and
  Financial Statements............................................................. 14                  Changes in Fund Balance
TAX INFORMATION ............................................................ 15
  Valuations............................................................................. 15      APPENDIX - A2
  Tax Rate Per $1,000 (Assessed) ........................................... 15                      GENERAL FUND – Revenues, Expenditures and
  Tax Collection Procedure ..................................................... 15                     Changes in Fund Balance - Budget and Actual
  Tax Collection Record.......................................................... 15
  Larger Taxpayers- 2010 Tax Roll for 2010-2011 Tax Roll.. 16                                     APPENDIX - B
  Additional Tax Information.................................................. 16                    BONDED DEBT SERVICE
STATUS OF INDEBTEDNESS.............................................. 16
  Constitutional Requirements ................................................ 16                 APPENDIX - C
  Statutory Procedure .............................................................. 17              AUDITED FINANCIAL STATEMENTS AND
  Debt Outstanding End of Fiscal Year ................................... 17                      SUPPLEMENTARY INFORMATION- JUNE 30, 2010
  Details of Outstanding Indebtedness .................................... 18
  Debt Statement Summary ..................................................... 18                 APPENDIX – D
  Capital Project Financing Plans............................................ 18                     FORM OF OPINION OF BOND COUNSEL
  Bonded Debt Service ............................................................ 18
  Cash Flow Borrowings ......................................................... 18
  Estimated Overlapping Indebtedness.................................... 19
  Debt Ratios ........................................................................... 19


                                                                       PREPARED WITH THE ASSISTANCE OF
                                                            FA FISCAL ADVISORS & MARKETING, INC.
                                                                        CORPORATE HEADQUARTERS
                                                                            120 Walton Street • Suite 600
                                                                                  Syracuse NY 13202
                                                                       Ph • 315.752.0051 • Fax • 315.752.0057
                                                                       Internet • http://www.fiscaladvisors.com
                                                 OFFICIAL STATEMENT
                                                            of the

                   FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                ONONDAGA, CORTLAND AND MADISON COUNTIES, NEW YORK
                                                         Relating To

                                $1,700,000 Bond Anticipation Notes, 2011
    This Official Statement, which includes the cover page and appendices, has been prepared by the Fabius-Pompey
Central School District, Onondaga, Cortland and Madison Counties, New York (the "School District" or "District",
"Counties", and "State", respectively) in connection with the sale by the School District of $1,700,000 principal amount of
Bond Anticipation Notes, 2011 (herein referred to as the “Notes”).

     The factors affecting the School District’s financial condition and the Notes are described throughout this Official
Statement. Inasmuch as many of these factors, including economic and demographic factors, are complex and may influence
the School District tax base, revenues, and expenditures, this Official Statement should be read in its entirety, and no one
factor should be considered more or less important than any other by reason of its relative position in this Official Statement.

     All quotations from and summaries and explanations of provisions of the Constitution and laws of the State and acts and
proceedings of the School District contained herein do not purport to be complete and are qualified in their entirety by
reference to the official compilations thereof, and all references to the Notes and the proceedings of the School District
relating thereto are qualified in their entirety by reference to the definitive forms of the Notes and such proceedings.


                                                        THE NOTES

Description of the Notes

    The Notes will be dated February 25, 2011 and will mature July 25, 2011. The Notes are not subject to redemption prior
to maturity.

     At the option of the purchaser, the Notes will be registered in the name of Cede & Co. as nominee of The Depository
Trust Company, New York, New York ("DTC"). DTC will act as Securities Depository for the Notes. Individual purchases
will be made in book-entry form only, in the principal amount of $5,000, or integral multiples thereof. Purchasers will not
receive certificates representing their interest in the Notes.

     Principal and interest on the Notes are payable at maturity. Principal and interest will be paid by the School District to
the Securities Depository, which will in turn remit such principal and interest to its Participants, for subsequent distribution
to the Beneficial Owners of the Notes, as described herein. The Notes may be transferred in the manner described on the
Notes and as referenced in certain proceedings of the School District referred to therein.


Book-Entry-Only System

     If this option is chosen, the Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the
Notes. The Notes will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership
nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Note
certificate will be issued bearing the same rate of interest and CUSIP number, in the aggregate principal amount of such
issue, and will be deposited with DTC.

     DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a
“banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a
“clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing
for over 3.2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments from over 100 countries that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates
the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need

                                                               4
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly owned subsidiary of
The Depository Trust & Clearing Corporation (“DTCC”). DTCC, in turn, is owned by a number of Direct Participants of
DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS
Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also subsidiaries
of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National
Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s
highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission.
More information about DTC can be found at www.dtcc.com.

     Purchases of Notes under the DTC system must be made by or through Direct Participants, which will receive a credit
for the Notes on DTC’s records. The ownership interest of each actual purchaser of each Note (“Beneficial Owner”) is in
turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation
from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of
the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the
Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will
not receive certificates representing their ownership interests in Notes, except in the event that use of the book-entry system
for the Securities is discontinued.

     To facilitate subsequent transfers, all Notes deposited by Direct Participants with DTC are registered in the name of
DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC.
The deposit of Notes with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s
records reflect only the identity of the Direct Participants to whose accounts such Notes are credited, which may or may not
be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings
on behalf of their customers.

     Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

     Principal and interest payments on the Notes will be made to Cede & Co., or such other nominee as may be requested by
an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts in accordance with their
respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in “street name,” and will be the responsibility of such Participant and not of DTC or the School District, subject
to any statutory or regulatory requirements as may be in effect from time to time. Payment, principal and interest to DTC is
the responsibility of the School District, disbursement of such payments to Direct Participants will be the responsibility of
DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.

     DTC may discontinue providing its services as depository with respect to the Notes at any time by giving reasonable
notice to the School District. Under such circumstances, in the event that a successor depository is not obtained, Note
certificates are required to be printed and delivered.

    The School District may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that event, Notes certificates will be printed and delivered.

    The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the
School District believes to be reliable, but the School District takes no responsibility for the accuracy thereof.

Source: The Depository Trust Company.




                                                              5
                                                      Certificated Notes

     DTC may discontinue providing its services with respect to the Notes at any time by giving notice to the School District
and discharging its responsibilities with respect thereto under applicable law, or the School District may terminate its
participation in the system of book-entry-only system transfers through DTC at any time. In the event that such book-entry-
only system is discontinued, the following provisions will apply:

     The Notes will be issued in registered form in denominations of $5,000 or integral multiples thereof. Principal of and
interest on the Notes will be payable at a principal corporate trust office to be named by the School District. The Notes are
not subject to redemption prior to their stated final maturity date.


Purpose of Issue

     The Notes are being issued pursuant to the Constitution and statutes of the State of New York, including among others,
the Education Law and the Local Finance Law and a bond resolution of the School District dated November 3, 2009 (the
“Bond Resolution”) authorizing the issuance of $2,415,000 serial bonds of said School District to finance the reconstruction
of the Middle School-High School and Elementary school roofs, reconstruction of the Elementary School façade and
acquisition and installation of health, safety and energy improvements throughout all District facilities, all to include related
site work, utilities, mechanical, plumbing and electrical, original furnishings, fixtures and equipment, architectural fees and
all other costs associated with such work.

    The proceeds of the Notes will provide new monies for the aforementioned purposes.


                                                 THE SCHOOL DISTRICT

General Information

    The School District is located in upstate New York, in the Counties of Onondaga, Cortland and Madison. The School
District's physical facilities are located in the Village of Fabius, which is approximately 15 miles south of the City of
Syracuse and approximately 20 miles north of the City of Cortland. The School District, with an approximate land area of
124 miles, is composed predominantly of rural towns with many School District residents commuting to the nearby Cities of
Syracuse and Cortland for employment.

    Interstate Expressway #81 is in close proximity to the School District. Major east-west thoroughfares intersecting the
School District include New York Routes 20 and 80. The School District is served by Greyhound Bus Lines and by the
Syracuse Transportation Company's shuttle bus. Air service is provided by the Syracuse Hancock International Airport.

    Electricity and natural gas are provided by Niagara Mohawk Power Corporation and telephone service is provided by
Verizon (formerly Bell Atlantic). The School District utilizes the services of various banks located in the Syracuse region.

    The Syracuse Post Standard and The Cortland Standard are the major newspapers serving the School District.

   Police services are provided by the New York State Police Department and the Onondaga, Madison and Cortland
Counties Sheriff's Departments.


Population

    The current estimated population of the School District is 4,700.




                                                               6
Wealth and Income Indicators

    Per capita income statistics are not available for the District as such. The figures set forth below with respect to such
Towns and Counties are included for information only. It should not be inferred from the inclusion of such data in this
Official Statement that the Towns or the Counties are necessarily representative of the District, or vice versa.

                                         Per Capita Income                       Median Family Income
                                 1990          2000        2009               1990       2000        2009
Towns of:
   Pompey                     $ 18,955      $ 27,970     $ 38,985          $ 45,920     $ 64,442      $ 96,586
   Fabius                       15,021        21,206       27,614            38,438       59,167        73,309
   LaFayette                    16,048        24,591       29,201            40,302       60,523        71,906
   Cuyler                        9,913        13,111       14,923            30,298       39,896        38,224
   Cazenovia                    19,684        28,957       39,564            48,514       73,590        92,277
Counties of:
   Onondaga                     14,703       21,336        27,038            38,816       51,876        65,458
   Cortland                     11,228       16,622        21,633            32,517       42,204        56,161
   Madison                      12,334       19,105        23,738            33,644       47,889        60,326
State of:
     New York                   16,501       23,389        30,634            39,741       51,691        67,040


Source: U.S. Census Bureau, 2005-2009 American Community Survey 5-Year Estimates.


Form of School Government

    The Board of Education which is the policy-making body of the School District, consists of seven members with
overlapping three-year terms so that as nearly as possible an equal number is elected to the Board each year. Each Board
member must be a qualified voter of the School District and no Board member may hold certain other District offices or
position while serving on the Board of Education. The President and the Vice President are selected by the Board members.


Budgetary Procedures

     Pursuant to the Education Law, the Board of Education annually prepares or causes to be prepared a tentative budget of
the School District for the ensuing fiscal year. This tentative budget must be completed at least seven days before the annual
District meeting at which it is to be presented. Copies are available upon request to taxpayers within the School District,
seven days preceding such meeting and at each such meeting. The Board must also give notice that a copy of the tentative
budget may be obtained at each schoolhouse within the School District.

    The Board of Education causes a notice stating the time, date, place and purpose of the annual or district meeting to be
published four times beginning seven weeks prior to the meeting. The meeting must be held at the time and place specified
but it may be adjourned to permit voting on the following day. If the qualified voters at the annual or School District
meeting approve the tentative budget, the Board of Education, by resolution adopts the tentative budget as the budget of the
School District for the ensuing year.

     If by majority vote the budget is rejected, the Board of Education may make any change, alteration or revision to the
budget and may hold a second public hearing and referendum. If no budget is approved, the Board of Education, must,
pursuant to law, adopt by resolution an austerity budget for the ensuing fiscal year. The Board of Education may then levy a
tax for ordinary contingent expenses of the School District, which includes debt service, in a like manner as if the same had
been voted by the qualified voters. The budget for the 2010-2011 fiscal year was approved by the qualified voters of the
School District on May 18, 2010.




                                                             7
Investment Policy

    Pursuant to the statutes of the State of New York, the School District is permitted to invest only in the following
investments: (1) special time deposits or certificates of deposits in a bank or trust company located and authorized to do
business in the State of New York; (2) obligations of the United States of America; (3) obligations guaranteed by agencies of
the United States of America where the payment of principal and interest is guaranteed by the United States of America; (4)
obligations of the State of New York; (5) with the approval of the New York State Comptroller, tax anticipation notes and
revenue anticipation notes issued by any New York municipality or district corporation, other than the School District; (6)
obligations of a New York public corporation which are made lawful investments by the School District pursuant to another
provision of law; (7) certain certificates of participation issued on behalf of political subdivisions of the State of New York;
and, (8) in the case of School District moneys held in certain reserve funds established pursuant to law, obligations issued by
the School District. These statutes further require that all bank deposits, in excess of the amount insured under the Federal
Deposit Insurance Act, be secured by either a pledge of eligible securities, an eligible surety bond or an eligible letter of
credit, as those terms are defined in the law.

     Consistent with the above statutory limitations, it is the School District's current policy to invest in: (1) certificates of
deposit or time deposit accounts that are fully secured as required by statute, (2) obligations of the United States of America
or (3) obligations guaranteed by agencies of the United States of America where the payment of principal and interest is
guaranteed by the United States of America. In the case of obligations of the United States government, the School District
may purchase such obligations pursuant to a written repurchase agreement that requires the purchased securities to be
delivered to a third party custodian.


State Aid

    The School District receives financial assistance from the State. In its budget for the 2010-2011 fiscal year,
approximately 47% of the revenues of the School District are estimated to be received in the form of State aid. If the State
should not adopt its budget in a timely manner in any year municipalities and school districts in the State, including the
School District, may be affected by a delay in the payment of State aid.

         The State is not constitutionally obligated to maintain or continue State aid to the School District. No assurance can
be given that present State aid levels will be maintained in the future. In view of the State’s continuing budget problems,
future State aid reductions are likely. State budgetary restrictions, which eliminate or substantially reduce State aid could
have a material adverse effect upon the School District requiring either a counterbalancing increase in revenues from other
sources to the extent available, or a curtailment of expenditures (See also “MARKET AND RISK FACTORS”).

     A portion of the School District’s State aid consists of building aid which is related to outstanding indebtedness for
capital project purposes. In order to receive building aid, the School District must have building plans and specifications
approved by the Facilities Planning Unit of the State Education Department. A maximum construction and incidental cost
allowance is computed for each building project that takes into account a pupil construction cost allowance and assigned
pupil capacity. For each project financed with debt obligations, a bond percentage is computed. The bond percentage is
derived from the ratio of total approved cost allowances to the total principal borrowed. Approved cost allowances are
estimated until a project final cost report is completed.

     Aid on debt service is generally paid in the current fiscal year provided such debt service is reported to the
Commissioner of Education by November 15 of that year. Any debt service in excess of amounts reported by November 15
will not be aided until the following fiscal year. The building aid received is equal to the approved building expense, or
bond percent, times the building aid ratio that is assigned to the School District. The building aid ratio is calculated based on
a formula that involves the full valuation per pupil in the School District compared to a State wide average. The School
District may elect to use the highest building aid ratio that has been calculated since the 1981-82 fiscal year.

    There can be no assurance that the State appropriation for building aid and other State aid to school districts will be
continued in future years, either pursuant to existing formulas or in any form whatsoever. State aid, including building aid
appropriated and apportioned to the School District, can be paid only if the State has such monies available therefor. The
availability of such monies and the timeliness of such payment could be affected by a delay in the adoption of the State
budget or their elimination therefrom.

     In Campaign for Fiscal Equity, Inc. et al. v. State, et al. (Supreme Court, New York County), plaintiffs challenged the
State’s method of providing funding for New York City public schools. Plaintiffs sought a declaratory judgment that the
State’s public school financing system violates article 11, section 1 of the State Constitution and Title VI of the Federal Civil
Rights Act of 1964 and injunctive relief that would require the State to satisfy State Constitutional Standards. Although a
                                                                8
lower court had concluded that additional capital funding was required for New York City public schools, the Court of
Appeals vacated the decision as unnecessary in light of the fact that in 2006 the State legislature approved a $2.6 billion
capital program for all public schools, including $1.8 billion for New York City public schools. State legislative reforms in
the wake of the Campaign for Fiscal Equity case include increased accountability for expenditure of State funds and
collapsing over 30 categories of school aid into one classroom operating formula referred to as foundation aid. Foundation
aid prioritizes funding distribution based upon student need.

     While such increases in State aid have been targeted to high needs schools other schools have shared in the overall
increase in State aid. The School District is unable to predict whether this pattern of distribution will continue beyond that
which is included in the legislation dealing with foundation aid. Increased State aid for New York City schools and other
high needs schools could result in reductions in the future of State aid to certain school districts including the School District.

     On December 13, 2009, Governor Paterson ordered $750 million in reductions to scheduled December payments due to
a severe cash shortage. In order for the State to maintain a positive cash position, payments scheduled to be made by
December 15 to municipalities and school districts were reduced by 10 percent. A reduction of approximately 19 percent of
the additional payments for STAR was made at the end of December 2009. The School District received the total amount
withheld from the December payments in January, 2010.

    In addition, on March 30, 2010 Governor Paterson announced that he would unilaterally delay the distribution of
approximately $2.1 billion in scheduled 2010-2011 State aid payments to school districts throughout the State.

    On May 14, 2010, Governor Paterson proposed another delay in State aid, but also assured school districts that all
outstanding aid payments will be made prior to June 30, 2010. Under the Governor’s proposal, the outstanding aid payments
which had been paid in prior years by March 31st will be paid in two installments, with one payment being made before June
15th and the second being made after June 15th. The State typically receives income tax revenues on June 15th which are
expected to enable the payment of the balance of aid due to school districts. All delayed State aid payments were received
by June 30th.

     The Executive Budget submitted by Governor Paterson to the Legislature for the State 2010-2011 fiscal year includes a
5 percent reduction in State School aid. The Executive Budget also would extend the postponement of a foundation aid
package designed to help urban districts and bring the State into compliance with the Campaign for Fiscal Equity case. It is
not possible to predict whether the reduction in State school aid and the postponement of a foundation aid package designed
to help urban districts will be enacted into law.

     On August 2, 2010, the New York State Legislature adopted a budget for the State’s fiscal year ending March 31, 2011,
which does not restore the $1.4 billion in State aid reductions included in the Governor’s Executive Budget. The State
adopted a Federal Medical Assistance Program (FMAP) contingency plan which authorizes mid-year reductions of State
spending including State aid. The FMAP bill contains a provision allowing September school aid payments to be delayed
until September 30th. It is not known at this time whether sufficient FMAP funds will be received to forestall any State aid
reductions. The FMAP legislation also included a reported $29.7 million reduction in STAR and representing a 1.1%
reduction in such aid to each district in the State.

    There can be no assurance that the State appropriation for building aid and other State aid to school districts will be
continued in future years, either pursuant to existing formulas or in any form whatsoever. State aid, including building aid
appropriated and apportioned to the School District, can be paid only if the State has such monies available therefor. The
availability of such monies and the timeliness of such payment could be affected by a delay in the adoption of the State
budget or their elimination therefrom.

    The School District expects to receive STAR payments for the 2010-2011 fiscal year in increments beginning in
October, 2010 and continuing until January, 2011. Adjustment payments will be made in March 2011. See “STAR – School
Tax Exemption” herein.




                                                                9
State Aid Revenues

    The following table illustrates the percentage of total revenues of the District for each of the last five completed fiscal
years as well as budgeted figures for the 2010-2011 fiscal year comprised of State aid.

                                                                                                             Percentage of
                                                                                                            Total Revenues
                                                        Total                        Total                   Consisting of
         Fiscal Year                                  State Aid                     Revenues                   State Aid
         2005-06                                      $7,029,224                   $15,064,536                   46.66%
         2006-07                                       7,468,957                    15,084,852                   49.51%
         2007-08                                       8,237,647                    15,983,818                   51.54%
         2008-09                                       8,736,086                    16,540,801                   52.82%
         2009-10                                       8,009,910                    16,597,868                   48.26%
         2010-11 (Budgeted)                            7,583,544                    16,029,129                   47.31%



STAR – School Tax Exemption

     The STAR (School Tax Relief) program provides State-funded exemptions from school property taxes to homeowners
for their primary residences. School Districts are reimbursed by the State for real property taxes exempted pursuant to the
STAR Program.

     As enacted in 1997, STAR was phased in over four years. Homeowners over 65 years of age with household adjusted
gross incomes not in excess of $70,650 (increased annually according to a cost of living adjustment) are eligible for a “full
value” exemption of $56,800. Other homeowners are eligible for a $30,000 “full value” exemption on their primary
residence.

    $1,328,933 of the District’s $7,481,264 2010-2011 school tax levy was exempted by the STAR Program. The District
received full reimbursement of such exempt taxes from the State by January 2011. For a description of the STAR Aid
payment schedule, see “State Aid” herein.


School Facilities

Name                                        Grades                      Capacity                    Year(s) Built/Additions
Fabius-Pompey Elementary                     K-5                           357                      1931, ‘51, ‘57, ‘94
Fabius-Pompey High School                    6-12                          488                      1971, ’94, 2002


Enrollment Trends
                                         Actual                                                          Projected
                 School Year           Enrollment                           School Year                 Enrollment
                  2006-07                 901                                 2011-12                       850
                  2007-08                 877                                 2012-13                       850
                  2008-09                 859                                 2013-14                       850
                  2009-10                 855                                 2014-15                       850
                  2010-11                 845                                 2015-16                       850




                                                               10
Employees

    The School District employs a total of approximately 168 full-time employees which are represented by the following
unions listed below:

                                                                                               Contract
Employees                           Union Representation                                     Expiration Date
   109                              Fabius-Pompey Education Association                       June 30, 2012
    27                              Fabius-Pompey CSD Transportation Association              June 30, 2012
    32                              Non-Instructional Employees' Organization                 June 30, 2011


Pension Payments

     Substantially all employees of the School District are members of either the New York State and Local Employees'
Retirement System ("ERS") (for non-teaching and non-certified administrative employees) or the New York State Teachers'
Retirement System ("TRS") (for teachers and certified administrators). (Both Systems are referred to together hereinafter as
the "Retirement Systems" where appropriate.) These Retirement Systems are cost-sharing multiple public employer
retirement systems. The obligation of employers and employees to contribute and the benefits to employees are governed by
the New York State Retirement System and Social Security Law (the "Retirement System Law"). The Retirement Systems
offer a wide range of plans and benefits which are related to years of service and final average salary, vesting of retirement
benefits, death and disability benefits and optional methods of benefit payments. All benefits generally vest after ten years of
credited service. The Retirement System Law generally provides that all participating employers in each retirement system
are jointly and severally liable for any unfunded amounts. Such amounts are collected through annual billings to all
participating employers. Generally, all employees, except certain part-time employees, participate in the Retirement
Systems. The Retirement Systems are non-contributory with respect to members hired prior to July 27, 1976. The
Retirement Systems are non-contributory with respect to members working ten or more years. All members working less
than ten years must contribute 3% of gross annual salary towards the cost of retirement programs.

     On December 12, 2009, the Governor signed the new Tier V into law. The law is effective for new ERS and TRS hires
beginning on January 1, 2010. New ERS employees will now contribute 3 percent of their salaries and new TRS employees
will contribute 3.5% of their salaries. There is no provision for these contributions to cease after a certain period of service.

    Since 2005-06 fiscal year the District’s contributions to the Systems were as follows:
                                                                 ERS                    TRS
                                    2005-06                   $ 162,766             $   407,380
                                    2006-07                     247,265                 459,826
                                    2007-08                     138,936                 509,768
                                    2008-09                     130,240                 544,084
                                    2009-10 (Budgeted)          163,613                 506,781
                                    2010-11 (Budgeted)          193,886                 554,064
    Pursuant to various laws enacted between 1991 and 2002, the State Legislature authorized local governments to make
available certain early retirement incentive programs to its employees. The District currently does not have any retirement
incentives outstanding.

     Historically there has been a State mandate requiring full (100%) funding of the annual actuarially required local
governmental contribution out of current budgetary appropriations. With the strong performance of the Retirement System
in the 1990s, the locally required annual contribution declined to zero. However, with the subsequent decline in the equity
markets, the pension system became underfunded. As a result, required contributions increased substantially to 15% to 20%
of payroll for the employees' and the police and fire retirement systems, respectively. Wide swings in the contribution rate
resulted in budgetary planning problems for many participating local governments.

     In 2003, Chapter 49 of the Laws of 2003 amended the Retirement and Social Security Law and the Local Finance Law.
The amendments empowered the State Comptroller to implement a comprehensive structural reform program for ERS. The
reform program established a minimum contribution for any local governmental employer equal to 4.5% of pensionable
salaries for bills which were due May 15, 2003 and for all fiscal years thereafter, as a minimum annual contribution where
the actual rate would otherwise be 4.5% or less due to the investment performance of the fund. In addition, the reform
program instituted a billing system to match the budget cycle of municipalities and school districts that will advise such
employers over one year in advance concerning actual pension contribution rates for the next annual billing cycle. Under the
                                                               11
previous method, the requisite ERS contributions for a fiscal year could not be determined until after the local budget
adoption process was complete. Under the new system, a contribution for a given fiscal year will be based on the valuation
of the pension fund on the prior April 1 of the calendar year preceding the contribution due date instead of the following
April 1 in the year of contribution so that the exact amount may now be included in a budget.

     On July 20, 2004, Governor Pataki signed into law Chapter 260 of the Laws of 2004 (“Chapter 260”). Chapter 260
contains three components which alter the way municipalities and school districts contribute to the State pension system: (1)
revision of the payment due date, (2) extension of the period of time for pension debt amortization, and (3) authorization to
establish a pension reserve fund. Prior to the effective date of the provisions of Chapter 260, the annual retirement bill sent
to municipalities and school districts from the State had reflected pension payments due between April 1 and March 31,
consistent with the State fiscal year.

    Chapter 260 provides for the following changes:

                 Contribution Payment Date Change: The law changes the date on which local pension contributions are
                  due to the State. Effective immediately, the annual required contribution is due Feb. 1 annually instead of
                  Dec. 15. As a result, no payment was due in calendar year 2004.

                 Pension Cost Amortization-Extension of Payout Period: The law also extends the ability of municipalities
                  and school districts to amortize a portion of the current year pension cost over a period of 10 years,
                  extending the term from five years as authorized under the 2003 Chapter 49 legislation. Municipalities and
                  School Districts can amortize, either directly through the State retirement system at a fixed interest rate
                  annually determined by the State Comptroller or through the capital markets, pension payments in excess
                  of 9.5% of eligible payroll in 2006, and 10.5% in 2007.

                 Pension Contributions Reserve Fund: The law creates special authorization to create a new category of
                  reserve fund under the General Municipal Law. Municipalities and school districts may now establish a
                  retirement contribution reserve fund that can be funded from other available current government resources.

     On September 3, 2009, the New York State Comptroller’s office announced the employer contribution rates for the ERS
would increase in 2011. The impact of the global recession on the $116.5 billion New York State Common Retirement Fund
(Fund) increased the average ERS rate up to 11.9 percent (up from 7.4 percent in 2010). On September 2, 2010, the New
York State Comptroller’s office announced that the average contribution rate for ERS will increase from 11.9 percent of
salaries to 16.3 percent in 2012.

     The TRS rate for the 2010-2011 fiscal year is 8.62 percent (up from 6.19 percent in 2010). Based on preliminary
estimates, is anticipated that the 2012 TRS contribution rate will be between 11.0% and 11.5%. The final figure is expected
to be released in February 2011.

    From 2007, 2008 and 2009 ERS rates were 10.7%, 9.6% and 8.5%, respectively, and TRS were 8.6%, 8.7% and 7.6%,
respectively.

     The investment of monies and assumptions underlying same, of the Retirement Systems covering the School District’s
employees is not subject to the direction of the School District. Thus, it is not possible to predict, control or prepare for
future unfunded accrued actuarial liabilities of the Retirement Systems (“UAALs”). The UAAL is the difference between
total actuarially accrued liabilities and actuarially calculated assets available for the payment of such benefits. The UAAL is
based on assumptions as to retirement age, mortality, projected salary increases attributed to inflation, across-the-board raises
and merit raises, increases in retirement benefits, cost-of-living adjustments, valuation of current assets, investment return
and other matters. Such UAALs could be substantial in the future, requiring significantly increased contributions from the
School District which could affect other budgetary matters. Concerned investors should contact the Retirement Systems
administrative staff for further information on the latest actuarial valuations of the Retirement Systems.

     It should also be noted that the District provides post-retirement healthcare benefits to various categories of former
employees. These costs may be expected to rise substantially in the future. School districts and Boards of Cooperative
Education Services, unlike other municipal units of government in the State, have been prohibited from reducing retiree
health benefits or increasing health care contributions received or paid by retirees below the level of benefits or contributions
afforded to or required from active employees since the implementation of Chapter 729 of the Laws of 1994. This protection
from unilateral reduction of benefits has been extended annually. Legislative attempts to provide similar protection to
retirees of other local units of government in the State have not succeeded as of this date. Nevertheless, many such retirees
of all varieties of municipal units in the State do presently receive such benefits.
                                                               12
    There is now an accounting rule requires governmental entities, such as the District, to account for post-retirement
healthcare benefits in the same manner they account for vested pension benefits. GASB Statement No. 45 ("GASB 45") of
the Governmental Accounting Standards Board ("GASB"), described below, requires such accounting. Although GASB 45
encourages earlier adoption, implementation is required by the following dates, based on the size of government measured by
annual revenue:

    OPEB refers to "other post-employment benefits," meaning other than pension benefits or disability benefits. OPEB
consist primarily of health care benefits, and may include other benefits such as disability benefits and life insurance. Until
now, these benefits have generally been administered on a pay-as-you-go basis and have not been reported as a liability on
governmental financial statements.

     GASB 45 requires municipalities and school districts to account for OPEB liabilities much like they already account for
pension liabilities, generally adopting the actuarial methodologies used for pensions, with adjustments for the different
characteristics of OPEB and the fact that most municipalities and school districts have not set aside any funds against this
liability. Unlike GASB 27, which covers accounting for pensions, GASB 45 does not require municipalities or school
districts to report a net OPEB obligation at the start.

     Under GASB 45, based on actuarial valuation, an annual required contribution ("ARC") will be determined for each
municipality or school district. The ARC is the sum of (a) the normal cost for the year (the present value of future benefits
being earned by current employees) plus (b) amortization of the unfunded accrued liability (benefits already earned by
current and former employees but not yet provided for), using an amortization period of not more than 30 years. If a
municipality or school district contributes an amount less than the ARC, a net OPEB obligation will result, which is required
to be recorded as a liability on its financial statements.

    The School District has contracted with an actuarial firm to calculate its OPEB liability in accordance with GASB 45.
As of June 30, 2010, the actuarial accrued liability for benefits was $36,936,634, and the actuarial value of assets was zero,
resulting in an unfunded actuarial accrued liability (UAAL) of $36,936,634. The School District’s annual OPEB cost was
$3,489,595 and is equal to the annual required contribution (ARC). The School District is on a pay-as-you-go funding basis
and paid $496,603 to the Plan for the fiscal year ending June 30, 2010 resulting in a year-end Net OPEB obligation of
$6,463,030. The District’s unfunded actuarial accrued liability could have a material adverse impact upon the District’s
finances and could force the District to reduce services, raise taxes or both. The aforementioned liability and ARC are
recognized and disclosed in accordance with GASB 45 standards in the School District’s June 30, 2010 financial statements.
Additional information can be obtained by contacting the District.

     Actuarial Valuation will be required every 2 years for OPEB plans with more than 200 members, every 3 years if there
are less than 200 members.




                                                              13
 Unemployment Rate Statistics

      Unemployment statistics are not available for the School District as such. The smallest area for which such statistics are
 available (which includes the School District) are the Counties of Onondaga, Cortland and Madison. The information set
 forth below with respect to the Counties is included for informational purposes only. It should not be implied from the
 inclusion of such data in this Official Statement that the Counties are necessarily representative of the School District, or vice
 versa.

                                                          Year Average

                             2004          2005           2006               2007         2008            2009            2010
 Onondaga County             5.1%          4.5%           4.4%              4.1%          5.1%           7.6%             7.6%
 Cortland County             6.2%          5.5%           5.4%              5.2%          6.3%           9.1%             8.7%
 Madison County              5.6%          5.2%           4.7%              4.7%          5.7%           8.0%             7.9%
 New York State              5.8%          5.0%           4.6%              4.5%          5.3%           8.4%             8.4%
                                                         Monthly Figures

                       2010                                                                                                           2011
                       Jan          Feb   Mar      Apr      May       Jun       Jul     Aug      Sept      Oct     Nov       Dec      Jan
Onondaga County       8.3%      8.2%      7.9%    7.3%     7.3%       7.5%     7.6%     7.3%     7.3%     7.3%     7.5%     7.5%      N/A
Cortland County      10.7%      10.2%     9.7%    8.4%     7.9%       8.4%     8.4%     8.1%     7.5%     7.6%     8.3%     9.0%      N/A
Madison County        9.7%      9.5%      8.7%    7.6%     7.1%       7.3%     7.2%     7.1%     7.0%     7.0%     7.9%     8.7%      N/A
New York State        9.4%      9.2%      8.8%    8.1%     8.0%       8.1%     8.4%     8.2%     8.0%     8.0%     8.1%     8.0%      N/A
 Source: Department of Labor, State of New York. (Note: Figures not seasonally adjusted).


 Other Information

      The statutory authority for the power to spend money for the object or purpose, or to accomplish the object or purpose,
 for which the Notes are to be issued is the Education Law and the Local Finance Law.

     No principal or interest upon any obligation of the School District is past due.

     The fiscal year of the School District is July 1 to June 30.

      This Official Statement does not include the financial data of any political subdivision having power to levy taxes within
 the School District.


 Financial Statements

      The School District retains independent Certified Public Accountants. The last audit report covers the period ending
 June 30, 2010 and may be found attached hereto as APPENDIX - C to this Official Statement. In addition, the State
 Comptroller's office, i.e., the Department of Audit and Control, periodically performs a compliance review to ascertain
 whether the School District has complied with the requirements of various State and Federal statutes. Certain financial
 information of the School District can be found attached as appendices to the Official Statement.

      The School District complies with the Uniform System of Accounts as prescribed for School Districts in New York
 State by the State. This system differs from generally accepted accounting principles as prescribed by the American Institute
 of Certified Public Accountants' Industry Audit Guide, "Audits of State and Local Governmental Units", and codified in
 Government Accounting, Auditing and Financial Reporting (GAAFR), published by the Governmental Accounting
 Standards Board (GASB).

     Beginning with the fiscal year ending June 30, 2003 the School District is required to issue its financial statements in
 accordance with GASB Statement No. 34. This statement includes reporting of all assets including infrastructure and
 depreciation in the Government Wide Statement of Activities, as well as the Management’s Discussion and Analysis. The
 School District is in compliance with GASB Statement No. 34.


                                                                 14
                                                   TAX INFORMATION

Valuations
Taxable Assessed Valuation
Years Ending June 30:                  2007                2008                2009                2010                2011
Towns of:
   Pompey                    $ 163,962,583      $ 165,492,648       $ 166,883,497      $ 167,843,410       $ 167,871,515
   Fabius                       82,050,269         82,721,953          83,246,776         84,325,255          84,325,848
   LaFayette                     4,583,629          4,759,875           4,801,331          4,822,196           4,737,970
   Cuyler                        7,443,625          7,259,156           7,315,327          7,481,747           7,491,737
   Cazenovia                       641,470            641,009             640,917            640,940             605,787
      Totals                 $ 258,681,576      $ 260,874,641       $ 262,887,848      $ 265,113,548       $ 265,032,857
State Equalization Rates
Towns of:
   Pompey                          100.00%               95.00%              91.00%              91.00%              91.00%
   Fabius                          100.00%               95.00%              91.00%              91.00%              91.00%
   LaFayette                       100.00%               93.00%              93.00%              98.00%              93.00%
   Cuyler                           92.00%               84.00%              96.00%              70.00%              75.00%
   Cazenovia                        84.50%               81.00%              78.00%              76.50%              83.00%
Full Valuation               $ 259,446,514      $ 275,829,894       $ 290,478,272      $ 293,555,071       $ 292,953,397


Tax Rate Per $1,000 (Assessed)

Years Ending June 30:                  2007                2008                2009                2010                2011
Towns of:
   Pompey                         $    26.97         $    27.11          $    27.68          $    27.39          $    28.06
   Fabius                              26.97              27.11               27.68               27.39               28.06
   LaFayette                           26.97              27.69               27.09               25.43               27.46
   Cuyler                              29.32              30.66               33.14               35.61               34.05
   Cazenovia                           31.92              31.80               32.29               32.58               30.77


Tax Collection Procedure

     Tax payments are due September 1st. There is no penalty charge for the first thirty days after taxes are due, but a 2%
penalty is charged from October 1st to October 31st. On or about November 15th, uncollected taxes are returnable to the
Counties of Onondaga, Cortland and Madison for collection. The School District receives this amount from said Counties
prior to the end of the School District's fiscal year, thereby assuring 100% tax collection annually.


Tax Collection Record

Years Ending June 30:                2007                2008               2009                2010               2011
Total Tax Levy                 $ 6,998,892           7,104,222        $ 7,316,980         $ 7,316,980        $ 7,481,264
Uncollected (1)                    581,607             555,102            500,900             543,553            594,619
% Uncollected                        8.3%                7.8%               6.8%                7.4%               7.9%
(1)
      See "Tax Collection Procedure"




                                                            15
Larger Taxpayers 2010 for 2010-2011 Tax Roll


    Name                                                    Type                                 Assessed Valuation
    National Grid                                          Utility                                    $ 8,942,400
    VanErden Farms                                         Farm                                         4,811,400
    State of New York                                      State Land                                   3,577,500
    Tennessee Gas                                          Utility                                      2,952,470
    Barbland Farms                                         Farm                                         2,207,200
    Roy Smith Poultry Farms                                Farm                                         1,634,700
    Frazee Farms                                           Farm                                         1,349,600
    Verizon                                                Utility                                      1,183,016
    John Cargian Trust (Pompey Club)                       Golf Course                                    900,000
    Toggenburg Ski Center                                  Ski Center                                     826,800

     The larger taxpayers listed above have a total assessed valuation of $28,385,786, which represents 10.7% of the tax base
of the School District.

Source: School District Tax Rolls.


Additional Tax Information

    Real property located in the School District is assessed by the towns.

    Senior citizens' exemptions are offered to those who qualify.

   Total assessed valuation of the School District is estimated to be categorized as follows: Agricultural-14%, Residential-
80% and Commercial-6%.

     The estimated total annual property tax bill of a $100,000 market value residential property located in the School District
is approximately $4,500 including County, Town or Village, School District and Fire District taxes.


                                              STATUS OF INDEBTEDNESS

Constitutional Requirements

     The New York State Constitution limits the power of the School District (and other municipalities and certain school
districts of the State) to issue obligations and to contract indebtedness. Such constitutional limitations in summary form and
as generally applicable to the District include the following:

    Purpose and Pledge. The School District shall not give or loan any money or property to or in aid of any individual or
private undertaking or give or loan its credit to or in aid of any of the foregoing or any public corporation.

     The School District may contract indebtedness only for a School District purpose and shall pledge its faith and credit for
the payment of principal of and interest thereon.

     Payment and Maturity. Except for certain short-term indebtedness contracted in anticipation of taxes or to be paid
within three fiscal year periods, indebtedness shall be paid in annual installments commencing no later than two years after
the date such indebtedness shall have been contracted and ending no later than the expiration of the period of probable
usefulness of the object or purpose as determined by statute; unless substantially level or declining annual debt service is
utilized, no installment maybe more than fifty percent in excess of the smallest prior installment. The School District is
required to provide an annual appropriation for the payment of interest due during the year on its indebtedness and for the
amounts required in such year for amortization and redemption of its serial bonds and such required annual installments on
its notes.




                                                              16
Statutory Procedure

     In general, the State Legislature has, by the enactment of the Local Finance Law, authorized the powers and procedure
for the School District to borrow and incur indebtedness subject, of course, to the constitutional provisions set forth above.
The power to spend money, however, generally derives from other law, including the Education Law.

     The School District has the power to contract indebtedness for any School District purpose provided that the aggregate
principal amount thereof shall not exceed ten per centum of the full valuation of the taxable real estate of the School District
as required by the Local Finance Law and subject to certain enumerated deductions such as State aid for building purposes.
The statutory method for determining full valuation is by dividing the assessed valuation of taxable real estate for the last
completed assessment roll by the equalization rate established by the State Office of Real Property Services in accordance
with applicable State law.

    The School District is generally required by such laws to submit propositions for the expenditure of money for capital
purposes to the qualified electors of the District. Upon approval thereby, the Board of Education may adopt a bond
resolution authorizing the issuance of bonds, and notes in anticipation of the bonds. No down payment is required in
connection with the issuance of District obligations.

    Each bond resolution usually authorizes the construction, acquisition or installation of the object or purpose to be
financed, sets forth the plan of financing and specifies the maximum maturity of the bonds subject to the legal (Constitution,
Local Finance Law and case law) restrictions relating to the period of probable usefulness with respect thereto.

     The Local Finance Law also provides that where a bond resolution is published with a statutory form of notice, the
validity of the bonds authorized thereby, including bond anticipation notes issued in anticipation of the sale thereof, may be
contested only if:

      (1) Such obligations are authorized for a purpose for which the School District is not authorized to expend money, or

      (2) There has not been substantial compliance with the provisions of law which should have been complied within the
          authorization of such obligations

      and an action contesting such validity, is commenced within twenty days after the date of such publication or,

      (3) Such obligations are authorized in violation of the provisions of the Constitution.

    The Board of Education, as the finance board of the School District, has the power to enact bond resolutions. In
addition, such finance board has the power to authorize the sale and issuance of obligations. However, such finance board
may delegate the power to sell the obligations to the President of the Board of Education, the chief fiscal officer of the
School District, pursuant to the Local Finance Law.

     The School District is further subject to constitutional limitation by the general constitutionally imposed duty on the
State Legislature to restrict the power of taxation and contracting indebtedness; however, the State Legislature is prohibited
by a specific constitutional provision from restricting the power of the School District to levy taxes on real estate for the
payment of interest on or principal of indebtedness theretofore contracted.


                                                STATUS OF INDEBTEDNESS
Debt Outstanding End of Fiscal Year

Fiscal Year Ending:                              2006              2007              2008              2009              2010
Bonds                                     $ 19,349,901      $ 18,052,000      $ 16,709,000      $ 15,988,000      $ 14,571,250
Bond Anticipation Notes                        223,304           416,504           570,010                 0                 0
Budget Note                                          0                 0                 0                 0                 0
Other Debt (1)                                       0                 0                 0                 0                 0
Total Debt Outstanding                    $ 19,573,205      $ 18,468,504      $ 17,279,010      $ 15,988,000      $ 14,571,250
(1)
      Revenue Anticipation Notes.




                                                               17
Details of Outstanding Indebtedness

      The following table sets forth the indebtedness of the School District as of February 1, 2011.

                                                                             Maturity                                                             Amount
Bonds                                                                       2011-2022                                                          $ 14,237,050
Bond Anticipation Notes                                                     N/A                                                                                   0
                                                                                                       Total Indebtedness                      $ 14,237,050


Debt Statement Summary

     Summary of Indebtedness, Debt Limit and Net Debt-Contracting Margin evidenced by bonds and notes as of February
1, 2011:
      Full Valuation of Taxable Real Property .......................................................................................... $ 292,953,397
      Debt Limit 10% thereof .................................................................................................................... 29,295,339
               Inclusions:
                 Bonds............................................................ $ 14,237,050
                 Principal of this Issue ...................................          1,700,000
                           Total Inclusions ..............................                                 $ 15,937,050
               Exclusions:
                 Building Aid (1) ............................................. $               0
                         Total Exclusions .............................                                   $                0
      Total Net Indebtedness ..................................................................................................................... $ 15,937,050
      Net Debt-Contracting Margin ........................................................................................................... $ 13,247,289
      The percent of debt contracting power exhausted is.........................................................................                   54.40%
(1)
      Represents an estimate of monies receivable by the District from the State as an apportionment for debt service for
      school building purposes. The District has not applied for an exclusion as they are currently under the debt limit. The
      District receives New York State building aid on its indebtedness incurred for building projects at approximately 89.2%
      of debt service.
Note: The State Constitution does not provide for the inclusion of tax anticipation or revenue anticipation notes in the
      computation of the net indebtedness of the School District.



Capital Project Financing Plans

    On October 20, 2009, the School District authorized a $2,415,000 capital improvement project for the reconstruction of
various School District buildings. The issuance of the Notes represents the first borrowing against said authorization.

      The School District has no other projects authorized or contemplated at this time.


Bonded Debt Service

      A schedule of Bonded Debt Service may be found in APPENDIX - B to this Official Statement.


Cash Flow Borrowings

     The District issued $900,000 in Revenue Anticipation Notes during the 2006-2007 fiscal year against anticipated state
aid payments. These notes matured on June 28, 2007 and have been paid in full.

     The District issued $900,000 in Revenue Anticipation Notes during the 2007-2008 fiscal year against anticipated state
aid payments. These notes matured on June 26, 2008 and have been paid in full.


Estimated Overlapping Indebtedness
                                                                                    18
     In addition to the School District, the following political subdivisions have the power to issue bonds and to levy taxes or
cause taxes to be levied on taxable real property in the School District. Estimated bonds and bond anticipation notes are
listed as of the close of the last fiscal year of the respective municipalities.
                                  Total                                         Net          % Within                      Net
                                               (1)                   (2)
   Unit                       Indebtedness             Exclusions           Indebtedness   School District             Indebtedness
Counties of:
   Onondaga                   $ 313,246,130          $ 167,577,230         $ 145,668,900          1.07%                 $ 1,558,657
   Cortland                      20,510,000                815,000            19,695,000          0.47%                      92,567
   Madison                                0                      0                     0          0.02%                           0
Towns of:
   Pompey                           679,000                     0               679,000          31.10%                     211,169
   Fabius                                 0                     0                     0          81.87%                           0
   LaFayette                        811,870                31,957               779,913           1.61%                      12,557
   Cuyler                           115,647                16,000                99,647          18.18%                      18,116
   Cazenovia                        719,617                32,200               687,417           0.12%                         825
Village of:
     Fabius                                0                    0                     0         100.00%                             0
                                                                                                             Total      $ 1,893,891
(1)
       Bonds and bond anticipation notes, as of close of last respective fiscal year adjusted to include subsequent bond sales, if
any.
(2)
       Sewer and water indebtedness and budgeted appropriations.


Debt Ratios

       The following table sets forth certain ratios relating to the School District's indebtedness as of February 1, 2011:

                                                                                                  Per                Percentage of
                                                                             Amount             Capita (1)             Full Value (2)
Net Indebtedness (see "Computation of Debt Limit") ....................$ 15,937,050        $ 3,390.86                     5.44%
Net Indebtedness Plus Net Overlapping Indebtedness (3) ................ 17,830,941           3,793.82                     6.09%
(1)
       The current estimated population of the School District is 4,700.
(2)
       The School District's full value of taxable real estate for 2010-2011 is $292,953,397.
(3)
       Estimated net overlapping indebtedness is $1,893,891.


                           SPECIAL PROVISIONS AFFECTING REMEDIES UPON DEFAULT

    In the event of a default in the payment of the principal of and/or interest on the Notes, the State Comptroller is required
to withhold, under certain conditions prescribed by Section 99-b of the State Finance Law, state aid and assistance to the
School District and to apply the amount thereof so withheld to the payment of such defaulted principal and/or interest, which
requirement constitutes a covenant by the State with the holders from time to time of the Notes.

    Section 3-a of the General Municipal Law provides, subject to exceptions not pertinent, that the rate of interest to be
paid by the School District upon any judgment or accrued claim against it shall not exceed nine per centum per annum. This
provision might be construed to have application to the holders of the Notes in the event of a default in the payment of the
principal of or interest on the Notes.

    In accordance with the general rule with respect to municipalities, judgments against the School District may not be
enforced by levy and execution against property owned by the School District.




                                                                    19
     The Federal Bankruptcy Code allows public bodies, such as the School District recourse to the protection of a Federal
Court for the purpose of adjusting outstanding indebtedness. Section 85.80 of the Local Finance Law contains specific
authorization for any municipality in the State to file a petition under any provision of Federal bankruptcy law for the
composition or adjustment of municipal indebtedness. While the provisions of the Local Finance Law do not apply to school
districts, there can be no assurance that they will not be made so applicable in the future.

     At the Extraordinary Session of the State Legislature held in November, 1975, legislation was enacted which purported
to suspend the right to commence or continue an action in any court to collect or enforce certain short-term obligations of
The City of New York. The effect of such act was to create a three-year moratorium on actions to enforce the payment of
such obligations. On November 19, 1976, the Court of Appeals, the State's highest court, declared such act to be invalid on
the ground that it violates the provisions of the State Constitution requiring a pledge by such City of its faith and credit for
the payment of such obligations.

    As a result of the Court of Appeals decision, the constitutionality of that portion of Title 6-A of Article 2 of the Local
Finance Law enacted at the 1975 Extraordinary Session of the State legislature authorizing any county, city, town or village
with respect to which the State has declared a financial emergency to petition the State Supreme Court to stay the
enforcement against such municipality of any claim for payment relating to any contract, debt or obligation of the
municipality during the emergency period, is subject to doubt. In any event, no such emergency has been declared with
respect to the School District.


                                               MATERIAL EVENT NOTICES

    In accordance with the requirements of Rule 15c2-12 as the same may be amended or officially interpreted from time to
time (the "Rule") promulgated by the Securities and Exchange Commission (the "Commission"), the School District has
agreed to provide, or cause to be provided, during the period in which the Notes are outstanding, in a timely manner, to the
Electronic Municipal Market Access (“EMMA”) system of the Municipal Securities Rulemaking Board ("MSRB"), or any
other entity designated or authorized by the commission to receive reports pursuant to the Rule, notice of the occurrence of
any of the following events with respect to the Notes, if such event is material:

         (a) principal and interest payment delinquencies

         (b) non-payment related defaults

         (c) unscheduled draws on debt service reserves reflecting financial difficulties

         (d) unscheduled draws on credit enhancements reflecting financial difficulties

         (e) substitution of credit or liquidity providers, or their failure to perform

         (f) adverse tax opinions or events affecting the tax-exempt status of the Notes

         (g) modifications to rights of Noteholders

         (h) Note calls

         (i) defeasances

         (j) release, substitution, or sale of property securing repayment of the Notes

         (k) rating changes

     The School District may from time to time choose to provide notice of the occurrence of certain other events, in addition
to those listed above, if the School District determines that any such other event is material with respect to the Notes; but the
School District does not undertake to commit to provide any such notice of the occurrence of any material event except those
events listed above.




                                                                20
     The School District reserves the right to terminate its obligation to provide the aforedescribed notices of material events,
as set forth above, if and when the School District no longer remains an obligated person with respect to the Notes within the
meaning of the Rule. The School District acknowledges that its undertaking pursuant to the Rule described under this
heading is intended to be for the benefit of the holders of the Notes (including holders of beneficial interests in the Notes).
The right of holders of the Notes to enforce the provisions of the undertaking will be limited to a right to obtain specific
enforcement of the School District's obligations under its material event notices undertaking and any failure by the School
District to comply with the provisions of the undertaking will neither be a default with respect to the Notes nor entitle any
holder of the Notes to recover monetary damages.

    A Material Event Notices Certificate to this effect shall be provided to the purchaser(s) at closing.

    The School District is in compliance with all prior undertakings pursuant to the Rule.


                                              MARKET AND RISK FACTORS

     The financial condition of the School District as well as the market for the Notes could be affected by a variety of
factors, some of which are beyond the School District's control. There can be no assurance that adverse events in the State or
in other jurisdictions in the country, including, for example, the seeking by a municipality or large taxable property owner of
remedies pursuant to the Federal Bankruptcy Code or otherwise, will not occur which might affect the market price of and
the market for the Notes. If a significant default or other financial crisis should occur in the affairs of the State or any of its
agencies or political subdivisions thereby further impairing the acceptability of obligations issued by borrowers within the
State, both the ability of the School District to arrange for additional borrowings, and the market for and market value of
outstanding debt obligations, including the Notes, could be adversely affected.

     The School District is dependent in part on financial assistance from the State. However, if the State should experience
difficulty in borrowing funds in anticipation of the receipt of State taxes in order to pay State aid to municipalities and school
districts in the State, including the School District, in any year, the School District may be affected by a delay, until sufficient
taxes have been received by the State to make State aid payments to the School District. In several recent years, the School
District has received delayed payments of State aid which resulted from the State's delay in adopting its budget and
appropriating State aid to municipalities and school districts, and consequent delay in State borrowing to finance such
appropriations. (See also "State Aid").


                                                        TAX MATTERS


     In the opinion of Trespasz & Marquardt, LLP (“Bond Counsel”), based upon an analysis of existing laws, regulations,
rulings, and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Notes is
excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as
amended (the “Code”) and is excluded from adjusted gross income for purposes of personal income taxes imposed by the
State of New York and the City of New York. Bond Counsel is of the further opinion that interest on the Notes is not a
specific preference item for purposes of the federal individual or corporate alternative minimum taxes. Such interest is,
however, included in adjusted current earnings when calculating federal corporate alternative minimum taxable income. A
complete copy of the proposed form of opinion of Bond Counsel is set forth in APPENDIX – D hereto.

     The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for
federal income tax purposes of interest on obligations such as the Notes. The School District has covenanted to comply with
certain restrictions designed to insure that interest on the Notes will not be included in federal gross income. Failure to
comply with these covenants will result in interest on the Notes being included in gross income for federal income tax
purposes as well as adjusted gross income for purposes of personal income taxes imposed by the State of New York or the
City of New York, from the date of original issuance of the Notes. The opinion of Bond Counsel assumes compliance with
these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not
taken) or events occurring (or not occurring) after the date of issuance of the Notes may adversely affect the value of, or the
tax status of interest on, the Notes. Further, no assurance can be given that pending or future legislation or amendments to
the Code, if enacted into law, or any proposed legislation or amendments to the Code, will not adversely affect the value of,
or the tax status of interest on, the Notes.




                                                                21
     Certain requirements and procedures contained or referred to in the Arbitrage and Use of Proceeds Certificate, and other
relevant documents may be changed and certain actions may be taken or omitted under the circumstances and subject to the
terms and conditions set forth in such documents. Bond Counsel expresses no opinion as to any Notes or the interest thereon
if any such change occurs or action is taken or omitted upon the advice or approval of counsel other than Trespasz &
Marquardt, LLP.

     Although Bond Counsel is of the opinion that interest on the Notes is excluded from gross income for federal income tax
purposes and is excluded from adjusted gross income for federal income taxes imposed by the State of New York and the
City of New York, the ownership or disposition of, or the accrual or receipt of interest on, the Notes may otherwise affect an
Owner’s federal or state tax liability. The nature and extent of these other tax consequences will depend upon the particular
tax status of the Owner or the Owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding
any such other tax consequences.


                                                     LEGAL MATTERS

     Legal matters incident to the authorization, issuance and sale of the Notes are subject to the approving legal opinion of
Trespasz & Marquardt, LLP, Bond Counsel to the School District. Bond Counsel’s opinion will be in substantially the form
attached hereto as APPENDIX - D.


                                                         LITIGATION

     The School District is subject to a number of lawsuits in the ordinary conduct of its affairs. The School District does not
believe, however, that such suits, individually or in the aggregate, are likely to have a material adverse effect on the financial
condition of the School District.


                                                           RATING

     The Notes are not rated, however, Standard & Poor’s Credit Market Services has assigned a rating of “A+” to the School
District’s outstanding serial bonds. A rating reflects only the view of the rating agency assigning such rating and an
explanation of the significance of such rating may be obtained from such rating agency. Generally, rating agencies base their
ratings on the information and materials furnished to it and on investigations, studies and assumptions by the respective
rating agency. There is no assurance that a rating will continue for any given period of time or that it will not be revised
downward or withdrawn entirely by such rating agency if, in its judgment, circumstances so warrant. Any downward
revision or withdrawal of the rating of the serial bonds may have an adverse effect on the market price of the Notes.


                                                     MISCELLANEOUS

     So far as any statements made in this Official Statement involve matters of opinion or estimates whether or not expressly
stated, they are set forth as such and not as representations of fact, and no representation is made that any of the statements
will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be
construed as a contract with the holders of the Notes.

    Fiscal Advisors & Marketing, Inc. may place a copy of this Official Statement on its website at www.fiscaladvisors.com.
Unless this Official Statement specifically indicates otherwise, no statement on such website is included by specific reference
or constitutes a part of this Official Statement. Fiscal Advisors & Marketing, Inc. has prepared such website information for
convenience, but no decisions should be made in reliance upon that information. Typographical or other errors may have
occurred in converting original source documents to digital format, and neither the School District nor Fiscal Advisors &
Marketing, Inc. assumes any liability or responsibility for errors or omissions on such website. Further, Fiscal Advisors &
Marketing, Inc. and the School District disclaim any duty or obligation either to update or to maintain that information or any
responsibility or liability for any damages caused by viruses in the electronic files on the website. Fiscal Advisors &
Marketing, Inc. and the School District also assume no liability or responsibility for any errors or omissions or for any
updates to dated website information.




                                                               22
    If the purchaser(s) requests the Note to be issued in registered form, the Fabius-Pompey Central School District will act
as Paying Agent for the Notes. If the purchaser(s) requests the Note to be issued in bearer from, the purchaser will act as
Paying Agent for the Notes.

    The School District contact information is as follows: Mr. Peter W. Mahunik, Business Administrator, 1211 Mill Street,
Fabius, New York 13063, Phone: (315) 683-5301, Fax: (315) 683-5827, Email: pmahunik@fabius.cnyric.org

   This Official Statement has been duly executed and delivered by the President of the Board of Education of the Fabius-
Pompey Central School District.



                                                                  FABIUS-POMPEY CENTRAL SCHOOL DISTRICT


Dated: February 8, 2011                                                        President of the Board of Education
                                                                                       and Chief Fiscal Officer




                                                             23
                                                                                                                            APPENDIX - A
                                                                                                                        Fabius-Pompey CSD

                                                              GENERAL FUND

                                                                Balance Sheets


Fiscal Years Ending June 30:                                            2008                 2009                2010

ASSETS
  Unrestricted Cash                                                $ 1,629,189         $         1,117,334   $ 1,508,071
  Restricted Cash                                                      536,792                   1,124,779     1,359,488
  Other Receivables                                                     61,047                      89,304        67,093
  State and Federal Aid Receivable                                                                       -             -
  Due from Other Funds                                                   106,018                    39,317       135,873
  Due from Other Governments                                             503,195                   593,649       640,657

      TOTAL ASSETS                                                 $ 2,836,241         $         2,964,383   $ 3,711,182


LIABILITIES AND FUND EQUITY
  Accounts Payable                                                 $           -       $                -    $          -
  Accrued Liabilities                                                     38,206                   40,922          49,871
  Due to Other Government                                                259,178                  259,178         259,178
  Due to Other Funds                                                     455,038                   22,331          61,281
  Due to Teachers' Retirement System                                     552,282                  511,394         437,552
  Due to Employees' Retirement System                                     46,510                   46,726          57,241
  Overpayments                                                               251                      250           3,174
  Deferred Credits                                                         9,410                      567             526

      TOTAL LIABILITIES                                                1,360,875                  881,368         868,823


FUND EQUITY
  Reserved                                                         $     690,379       $         1,289,711   $ 1,506,847
  Unreserved:
    Appropriated                                                         122,500                  122,500         670,000
    Unappropriated                                                       662,487                  670,804         665,512

         TOTAL FUND EQUITY                                             1,475,366                 2,083,015       2,842,359


TOTAL LIABILITIES and FUND EQUITY                                  $ 2,836,241         $         2,964,383   $ 3,711,182




Source: Audited financial reports of the School District. This Appendix is not itself audited.
                                                                                                                          APPENDIX - A1
                                                                                                                       Fabius-Pompey CSD

                                                                 GENERAL FUND

                                          Revenues, Expenditures and Changes in Fund Balance


Fiscal Years Ending June 30:                         2005                2006                2007               2008            2009

REVENUES
  Real Property Taxes                           $ 5,611,639         $ 6,830,774        $         7,014,024   $ 7,116,776     $ 7,337,331
  Non-Property Taxes                                217,119             193,185                    197,406       195,096         186,969
  Charges for Services                               33,243              33,895                     34,858        41,945          35,784
  Use of Money & Property                            75,053             170,487                    183,647       176,393          81,201
  Sale of Property and
     Compensation for Loss                              19,791                   -                  36,152             69          14,068
  Miscellaneous                                         64,636              67,952                  92,048        187,687         124,337
  Interfund Revenues                                         -                   -                       -              -               -
  Revenues from State Sources                        6,789,331           7,029,224               7,468,957      8,237,647       8,736,086
  Revenue from Federal Sources                          86,796                   -                  33,702          3,205          25,025
     Total Revenues
                                                $ 12,897,608        $ 14,325,517       $    15,060,794       $ 15,958,818    $ 16,540,801

Other Sources:
   Interfund Transfers                                       -            739,019                  24,058         25,000                -

   Total Revenues and Other Sources                 12,897,608          15,064,536          15,084,852         15,983,818      16,540,801


EXPENDITURES
  General Support                               $ 1,606,410         $ 1,701,366        $         1,756,336   $ 1,969,250     $ 2,019,785
  Instruction                                     6,316,115           6,116,614                  6,587,083     6,812,640       7,158,750
  Pupil Transportation                              901,428             859,784                    946,042     1,025,175       1,046,472
  Community Services                                  2,389               2,274                          -         2,471           2,292
  Employee Benefits                               2,506,741           2,825,331                  3,211,296     3,270,234       3,404,453
  Debt Service                                    2,132,885           2,198,054                  2,229,739     2,276,646       2,281,400
     Total Expenditures
                                                $ 13,465,968        $ 13,703,423       $    14,730,496       $ 15,356,416    $ 15,913,152

Other Uses:
   Interfund Transfers                                       -                   -                118,000         25,000          20,000

   Total Expenditures and Other Uses                13,465,968          13,703,423          14,848,496         15,381,416      15,933,152

Excess (Deficit) Revenues Over
  Expenditures                                        (568,360)          1,361,113                236,356        602,402         607,649

FUND BALANCE
  Fund Balance - Beginning of Year                    (170,659)           (739,019)               622,094        858,450        1,475,366
  Prior Period Adjustments (net)                             -                   -                      -         14,514                -
  Fund Balance - End of Year                    $     (739,019)     $     622,094      $          858,450    $ 1,475,366     $ 2,083,015




Source: Audited financial reports of the School District. This Appendix is not itself audited.
                                                                                                                           APPENDIX - A2
                                                                                                                       Fabius-Pompey CSD

                                                                 GENERAL FUND

                                Revenues, Expenditures and Changes in Fund Balance - Budget and Actual


Fiscal Years Ending June 30:                                              2010                                   2011
                                                   Adopted              Modified                                Adopted
                                                   Budget               Budget             Actual               Budget
REVENUES
  Real Property Taxes & Items                  $ 7,334,980          $ 7,334,980        $     7,297,948      $ 7,499,264
  Non-Property Taxes                               180,000              180,000                196,551          107,000
  Charges for Services                              34,742               34,742                 28,740           29,285
  Use of Money & Property                           46,000               46,000                 41,501           39,000
  Sale of Property and
     Compensation for Loss                                  -                    -                 731                   -
  Miscellaneous                                       216,500              216,500             199,884             171,500
  Interfund Revenues                                        -                    -                   -                   -
  Revenues from State Sources                       8,230,137            8,053,770           8,009,910           7,583,544
  Revenues from Federal Sources                       503,479              679,846             696,728             383,301
      Total Revenues                           $ 16,545,838         $ 16,545,838       $    16,471,993      $ 15,812,894

Other Sources:
   Interfund Transfers                               224,263              224,263              125,875            216,235

   Total Revenues and Other Sources                16,770,101           16,770,101          16,597,868          16,029,129


EXPENDITURES
  General Support                              $ 2,088,443          $ 2,102,525        $     1,852,860      $ 1,968,079
  Instruction                                    7,555,638            7,541,553              7,170,876        7,372,597
  Pupil Transportation                           1,060,328            1,060,329                970,834        1,065,011
  Community Services                                 2,850                2,850                  2,422            2,850
  Employee Benefits                              3,844,464            3,844,466              3,537,700        3,927,846
  Debt Service                                   2,313,310            2,313,310              2,283,832        2,272,746
      Total Expenditures                       $ 16,865,033         $ 16,865,033       $    15,818,524      $ 16,609,129

Other Uses:
   Interfund Transfers                                70,000               70,000               20,000             20,000

   Total Expenditures and Other Uses               16,935,033           16,935,033          15,838,524          16,629,129

Excess (Deficit) Revenues Over
  Expenditures                                       (164,932)            (164,932)            759,344            (600,000)

FUND BALANCE
  Fund Balance - Beginning of Year                   164,932              164,932            2,083,015            600,000
  Prior Period Adjustments (net)                           -                    -                    -                  -
   Fund Balance - End of Year                  $             -      $              -   $     2,842,359      $             -




Source: Audited financial report and budgets of the School District. This Appendix is not itself audited.
                                                              APPENDIX - B
                                                         Fabius-Pompey CSD




                         BONDED DEBT SERVICE


Fiscal Year
  Ending
 June 30th        Principal        Interest          Total

   2011       $    1,734,250   $   538,495.00   $ 2,272,745.00
   2012            1,812,050       483,616.00     2,295,666.00
   2013            1,809,000       416,151.50     2,225,151.50
   2014            1,343,000       347,311.50     1,690,311.50
   2015            1,329,000       298,212.50     1,627,212.50
   2016            1,224,000       249,368.75     1,473,368.75
   2017              969,000       204,260.00     1,173,260.00
   2018            1,010,000       168,086.25     1,178,086.25
   2019            1,040,000       130,278.75     1,170,278.75
   2020              825,000        91,301.25       916,301.25
   2021              855,000        58,503.75       913,503.75
   2022              891,000        24,507.50       915,507.50

TOTALS        $ 14,841,300     $ 3,010,092.75   $ 17,851,392.75
                                                                                                 APPENDIX - C




                   FABIUS-POMPEY CENTRAL SCHOOL DISTRICT



                                   GENERAL PURPOSE FINANCIAL
                                         STATEMENTS


                                               JUNE 30, 2010




Such Financial Report and opinions were prepared as of date thereof and have not been reviewed and/or updated in
connection with the preparation and dissemination of this Preliminary Official Statement
                                      FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                                TABLE OF CONTENTS




AUDITOR'S REPORTS

   Independent Auditor 's Report                                                                                                1 -2

MANAGEMENT'S DISCUSSION AND ANALYSIS                                                                                           3-12

BASIC FINANCIAL STATEMENTS

   Dis trict -Wide Financial Statements
   •   Statement o f Net Assets                                                                                                  13
   •   Statement o f Activities                                                                                                  14

   Fund Financial Statements
   •  Balance Sheet - Governmental Funds                                                                                         15
   •  Reconciliation of Total Governmental Fund Balances to the District-Wide Net Assets                                         16
   •  Statement o f Revenues, Expenditures, a nd Changes in Fund Balances - All Governme ntal Funds                              17
   •  Reconciliation of the Statement of Revenues and Expenditures of the Governmental Funds to the Statement of Activities      18

   Fiduciary Fund Financial Statements
   •  Statement o f Fiduciary Net Assets                                                                                         19
   •  Statement o f Changes in Fiduciary Net Assets                                                                              20

   Notes to Basic Financial Statements                                                                                           3
                                                                                                                              2 1- 6

SUPPLEMENTARY INFORMATION

   Schedule of Change from Original Budget to Revised Budget and Use o f Unreserved Fund Balance - General Fund                  37

   Schedule of Project Expenditures - Capital Projects Fund                                                                      38

   Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund                              39

                                                                 3
   Schedule of Certain Revenues and Expenditures Compared to S T - Data                                                          40

   Investment in Capital Assets, Net of Related Debt                                                                             41

   Schedule of Funding Progress of Other-Employment Benefits                                                                     42

SINGLE AUDIT REPORTS AND SCHEDULES

  Report on Internal Controls Over Financial Reporting and o n Compliance with Other Matters Based on and Audit
    o f Financial Statements Performed in Accordance With Governmental Auditing Standards                                        43

  Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Over Compliance in
     Accordance With OMB Circular A-l33                                                                                       44-45

  Schedule of Expenditures of Federal Awards                                                                                     46

  Notes to Schedule of Expenditures o f Federal Awards                                                                           47

  Schedule of Findings and Questioned Costs - Federal Compliance Requirements                                                    48

  Status of Prior Year's Findings and Questioned Costs - Federal Compliance Requirements                                         49

                                                         (Continued)
                                    FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                              TABLE OF CONTENTS

                                                         (Continued)




EXTRACLASSROOM ACTIVITY FUND

  Independent Auditor's Report                                                   50

  Statement of Assets, Liabilities, and Fund Equity - Cash Basis                 51

  Statement of Revenues, Expenditures, and Changes in Fund Equity - Cash Basis   52

  Supplemental Schedule of Cash Receipts and Disbursements - Cash Basis          53

  Notes to Financial Statements                                                  54
                                                DArcangelo&Co                          LLP

                                                Certified P ublic Accountants & Consultants



                                            200 E. Ga rden St" P.O. Box 4300. Rome. NY 134424300
                                                        315-336-9220 Fax: 315-336-0836




                                                     Independent Auditor's Report



Board of E ducation
    Fabius Pompey Central School District

We have audite d the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining
fun d inf                                                                    or
         ormation of the Fabius Pompey Central School District , as of an d f the year ended June 30 , 201 0 , which collectively
comprise the School District's basic fmancial statements as listed in the table of contents. These financial statements are the
responsibility of the Fabius Pompey Central School District 's management. Our responsibility is to express opinions on these
financial statements based on our audit.

We con ducted our audit in accor dance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Stan dards issued by the Comptroller General of the United States.
Those standards require that we plan and perf orm the audit to obtain reasonable assurance about whether the financial statements are
f of material misstatement. An audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the
 ree
financial statements. An audit also includes assessing the accounting principles use d and the significant estimates made by
management , as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis
 or
f our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects , the respective fmancial position of the
governmental activities, each major fund, an d the aggregate remaining fun d inf        ormation of the Fabius Pompey Central School
                                                                                               or
District, as of June 30 , 2010, and the respective changes in financial position, thereof, f the year then ended in conf        ormity with
accounting principles generally accepted in the United States of America.

In accor dance with Government Auditing Standards, we have also issued our report dated September 1 5 , 201 0 , on our consideration
                                                i
of the School District's internal control over fnancial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provi de an opinion on the internal
control o ver financial reporting or on compliance. That report is an integral part of an audit perf         ormed in accordance with
Government Auditing Stan dar ds and should be considered in assessing the results of our audit.

The management 's discussion and analysis on Pages 3 through 1 2 and supplementary inf     ormation on Pages 37 through 42 are not a
required part of the basic financial statements but are supplementary information required by accounting principles generally accepted
in the United States o f America and the New York State Education Department . We have applied certain limited procedures, which
consisted principally of inquiries o f management regarding the methods of measurement and presentation of the required
supplementary inf  ormation . However, we did not audit the infonnation and express no opinion on it.

Our audit was conducted f the purpose o f f
                          or                    orming opinions on the fmancial statements that collectively comprise the Fabius
Pompey Central School District's financial statements as a whole. The accompanying Schedule of Expen ditmes of Federal Awards is
           or
presented f purposes o fadditional analysis as require d by U .S . Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements . The schedule of
                ederal awards is the responsibility of management and was derive d from and relate directly to the un derlying
expenditures of f




                                                  Mid-Hudson · Utica/Rome' Westchester
                                                     DArcangelo&Co.,LLP
                                                     Certified Public AClXluntants & r;()nS\l!t�'lnt.s



                                                    i
accounting and other records used to prepare the fnancial statements. The in formation has been subjected to the auditing proce dures
applied in the audit of the financial statements and certain a dditional procedures, including comparing and reconciling such
in formation directly to the underlying accounting and other records used to prepare the fmancial statements or to the fnancial      i
statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In OUf opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole .




September 1 5, 2010

Rome, New York




                                                                            2
                                          FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                           MANAGEMENT'S DISCUSSION & ANALYSIS
                                                 For the Year Ended June 30, 2010




The Fabius Pompey Central School District's discussion and analysis of financial perf     ormance provides an overall review of the
                                 or
District's financial activities f the fiscal years ended June 30, 2010 and 2009. The intent of this discussion and analysis is to look at
the District's financial perf ormance as a whole. This should be read in conjunction with the f mancial statements, which immediately
follow this section.

  1. FINANCIAL HIGHLIGHTS

                               or
     Key financial highlights f fiscal year 2010, are as follows:

     •                                                                       mancial statements, decreased by $1 ,42 8,311. The primary
          The District's total net assets, as reflected in the District-wide f
          factor contributing to this decrease is the Govermnent Accounting Standards Board's Statement No. 45, Accounting and
          Financial Reporting by Employers of Postemployment Benefits Other than Pensions. This required the recognition of a
          current year expenditnre o f $2,914 ,952 and a cumulative liability of$6,463,030.

     •                             or
          The District's expenses f the year, as reflected in the District-wide financial statements , totaled $1 8,746,562. Of this
                                   set                    or
          amount, $241 ,631 was o ff by program charges f services. General revenues of $1 5 ,776,444 amount to 91 .1% of total
          revenues.

     •              e
          State and f deral revenue decreased by 8.3% to $8,036 ,792 in 2010 from $8,761 ,111 in 2009.

     •    The School District received $696,728 in State Fiscal Stabilization frmds through the Recovery Act (ARRA) in 2010.

     •    The general fund's total fund balance, as reflected in the fund financial statements on pages 15 and 17, increased by
          $759,344 to $2,842,359. This was due to an excess of revenues over expendit nres based on the modified accrual basis o f
          accounting.

     •                                                                                          oo
          The District received $1 ,300 ,176 in operating grants to support instr uctional and f d service programs.

 2. OVERVIEW OF THE FINANCIAL STATEMENTS

     This armual report consists o f f our parts - Management's Discussion and Analysis (M D&A), the basic f inancial statements,
     required supplementary inf   ormation, and other supplementary inf ormation. The basic financial statements consist of district­
                                        i                                   i
     wide financial statements, fund fnancial statements, and notes to the fnancial statements. A graphic display o f the relationship
     o fthese statements is as follows:




                                                                                     I                         I
                             I



                       Management's                    Basic                    Required                    Other
                        Discussion                   Financial                Supplementary            Supplementary
                        & Analysis                  Statements                 Information                 ormation
                                                                                                        In f




                             I                                                       I
                        District- Wi de                 Fund                     Notes to
                          Financial                   Financial                  Financial
                         Statements                  Statements                 Statements




                                                                    3
                                   FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                    MANAGEMENT'S DISCUSSION & ANALYSIS
                                          For the Year Ended Jnne 30, 2010
                                                                                                                       (Continued)

A. District-wide Financial Statements

   The District·wide financial statements are organized to provide an understanding of the fiscal performance of the District as
   a whole in a manner similar to a private sector business. There are two District-wide fmancial statements - the Statement of
   Net Assets and the Statement of Activities. These statements provide both an aggregate and long-term view of the District's
   finances.

   These statements utilize the accrual basis of accounting. This basis of accounting recognizes the financial effects of events
   wben they occur, without regard to the timing of cash flows related to the events.

   The Statement of Net Assets

   The Statement of Net Assets presents information on all of the District's assets and liabilities, with the difference between
   the two reported as net assets. Increases or decreases in net assets may serve as a useful indicator of whether the financial
   position of the District is improving or deteriorating, respectively.

   The Statement of Activities

   The Statement of Activities presents information showing the change in net assets during the fiscal year. All changes in net
   assets are recorded at the time the underlying financial event occurs. Therefore, revenues and expenses are reported in the
   statement for some items that will result in cash flow in future fiscal periods.

B. Fund Financial Statements

   The fund financial statements provide more detailed information about the District's funds, not the District as a whole. A
   fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific
   activities or objectives. The District also uses fund accounting to ensure compliance with finance-related legal requirements.
   The funds of the District are reported in the governmental funds and the fiduciary funds.

   These statements utilize the modified accrual basis of accoWlting. This basis of accounting recognizes revenues in the period
   that they become measurable and available. It recognizes expenditures in the period that they become measurable, funded
   through available resources and payable within a current period.

   Governmental Funds

   Governmental funds are used to account for essentially the same functions reported as governmental activities in the District­
   wide financial statements. However, the governmental fund financial statements focus on shorter tenn inflows and outflows
   of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year for spending in
   future years. Consequently, the governmental fund statements provide a detailed short-term view of the District's operations
   and the services it provides.

   Because the focus of governmental funds is narrower than that of District-wide financial statements, it is useful to compare
   the infonnation presented for governmental funds with similar infonnation presented for governmental activities in the
   District-wide financial statements. By doing so, you may better understand the long-term impact of the District's near-term
   fmancing decisions.     Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues,
   Expenditures, and Changes in Fund Balance provide a reconciliation to facilitate this comparison between governmental
   funds and governmental activities.

   The District maintains five individual governmental funds, general fund, school lunch fund, special aid fund, debt service
   fund, and capital projects fund, each of which is considered to be a major fund and is presented separately in the fund
   financial statements.

   Fiduciarv Funds

   Fiduciary funds are used to account for assets held by the District in its capacity as agent or trustee. All of the District's
   fiduciary activities are reported in a separate Statement of Fiduciary Net Assets. The fiduciary activities have been excluded
   from the District's District-wide fmancial statements because the District cannot use these assets to finance its operations.




                                                               4
                                       FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                        MANAGEMENT'S DISCUSSION & ANALYSIS
                                              For the Year Ended June 30, 2010
                                                                                                                          (Continued)

3. FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

  A. Net Assets

     The District's total net assets decreased $1,42 8,311 between fiscal year 2009 and 201 0 . A sununary of the District's
                              or
     Statement o f Net Assets f June 30, 2010 and 2009, is as follows:

                                                                                                           I ncrease      Percentage
                                                                     2010              2009               ( Decrease)      Change


      Current and Other Assets                               $ 4,505,776          $    3,876,062      $       629,71 4              1 6 .2%
      Capital Assets (Net of Accumulated Depreciation)           22,
                                                                   341 ,551           23,054,026             (71 2,475)           ( 3.1 %)
         Total Assets                                        $ 26 84 7 327        $ 26 930 0 88       $       182 76])              (0 .3%)


     Non-Current Liabilities                                 $ 21,5 87,804        $ 20,21 5,630       $     1,372,1 74                 6.8%
      Other Liabilities                                               943,51 5          970,139               (26,624)            ( 2.7%)
         Total Liabilities                                   $ 22 531319          $ 21185769          $ 1 345 550                   (6.4%)


      Net Assets
      Invested i n Capital Assets
         ( Net o f Related Debt)                             $       7,853,4 70   $    7,0 72,674     $       780,796               11.0%
             Restricted                                               861,41 8          931,42 7              (70,009)             (7.5%)
             U nrestricted (DefiCit)                             (4,398, 8 80)        (2,2 59, 782)        (2,139,098)           (94 .7%)
         Total Net Assets                                    $ 431 6 00 8         $    5144 319               31
                                                                                                      $ (l 428 1)                (24 .9%)



     Current and other assets increased by $629,714, as compared to the prior year. The increase is primarily due to an increase
     in the District's cash balances, as well as amounts due from other governments.

     Capital assets decreased by $712,475, as compared to the prior year. This decrease is primarily due to depreciation
                                 or
     exceeding amounts expended f additions. Note 6 to the Financial Statements provides additional information.

     Non-current liabilities increased by $1,372,1 74, as compared to the prior year. This increase is primarily the result o f
     recognition o f OPEB liability i n accordance with GASB 45, net o frepayment o fother debt.

     Other liabilities decreased by $26,624 as compared to the prior year. This decrease is primarily a result of the reduction in
     the Teacher's Retirement Accrual.

     The net assets invested in capital assets is calculated by su                                                 or
                                                                  btracting the aruount of outstanding debt used f construction
     from the total cost o f all asset acquisitions, net of accumulated depreciation. The total cost of these acquisitions includes
     expenditures to purchase land, construct and improve b uildings and purchase vehicles, equipment and furniture to suppor t
     District operations.

     The unrestricted net deficit at June 30, 2010, is $4,398,880, which represents the amount by which the District's liabilities,
     excluding debt related to capital construction, exceeded the District's assets other than capital assets.




                                                                 5
                                    FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                     MANAGEMENT'S DISCUSSION & ANALYSIS
                                           For the Year Ended June 30, 2010
                                                                                                                        (Continued)

B. Changes in Net Assets

   The results of this year's operations as a whole are reported in the Statement of Activities in a programmatic fonnat in the
   accompanying fmancial statements. In the accompanying financial statements STAR (school tax relief) revenue is included
   in the other tax items line.     However. in this MD&A. STAR revenue has been combined with property taxes and
   nonproperty tax items. A summary of this statement for the years ended June 30, 20 I0 and 2009 is as follows:


                                                                                                          Increase      Percentage
    Revenues                                                       2010                 2009             (Decrease)       Change
       Program Revenues
        Charges for Services                                 $       241, 631     $      242, 5 83   $          (952)          (0.4%)
        Operating Grants                                          1 ,300,176           1,327,0 5 8           (26,882)          (2 .0%)
       General Revenues
        Property Taxes, STAR, and Nonproperty Tax Items           7,494,499            7,524,300             (29,801)          (0.4%)
        State and Federal Sonrces                                 8,036,792             8,761,111          (724,319)           ( 8.3%)
        Other                                                       245,153               232,869             1 2,284            0 .5%
         Total Revenues                                          17,31 8,251          1 8,0 87,921         (769,670)           (4.3%)

   Expenses
       General Support                                            3,046,486            3,230,206           (1 83,720)           (5.7%)
       Instruction                                               12, 85 8, 6 81       13,1 89, 596         (330,915)           ( 2 .5%)
       Pupil Transportation                                       1,771,959            1,925,034           (1 53,075)           ( 8.0%)
       Community Service                                               4,390                2,292              2,098            91.5%
       Debt Service-Unallocated Interest                            610,1 88             720, 1 86         (109,998)          (15.3%)
       Food Service Program                                         4 54, 8 5 8          449,281               5,577              1.2%
         Total Expenses                                          1 8,746,562          19,516, 595          (770,033)           (3.9%)

   Total Change in Net Assets                                $ (1428311)          $ (l 428 674)      $          363


   The District's revenues decreased by 4.3% in 2010 or $769, 670. The major factors that contributed to the increase were:


   •     Operating grants increased by $823,359 due to Recovery Act increases in stabilization, Title I and Special Education
         Grants.
   •     Property tax, STAR, and nonproperty tax items revenues decreased by $29, 801 .
   •     State Aid decreased by $724,319.


   The District's expenses for the year decreased by $770,033 or 3.9%. Of this amount $633, 126 was a decreased expenditnre
   for GASB 4 5 other postemployment benefits. This amount was allocated to the various functions based upon the percentage
   of payroll expensed. Excluding this amount the decrease was $1 36,907 or .087%, primarily in unallocated interest expense.




                                                            6
                     FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                      MANAGEMENT'S DISCUSSION & ANALYSIS
                            For the Year Ended June 30, 2010
                                                                                            (Continued)


         A graphic display of the distribution of revenues for the two years follows:

                                For the Year Ended June 30, 2010




                                           Charges for
                                             Services
                                             1 .40%
                     Other
                     1.42%
                                                        . "'
                                                         ... ::- __
                                                                   _     Operating Grants
                                                                              7.51%

State and Federal
    Sources
    46.41%
                                                                        Property Taxes,
                                                                           STAR, and
                                                                        Nonproperty Tax
                                                                              Items
                                                                            43.26%




                               For the Year Ended June 30, 2009




                                         Charges for
                                           Services
                             Other         1.34%
                             1 .29%
                                                                       Operating Grants

                                                      _�:::,:--
                                                              -             7.34%


 State and Federal
     Sources                                                             Property Taxes,
     4 8.44%                                                               STAR, and
                                                                        Nonproperty Tax
                                                                              Items
                                                                             41 .59%




                                               7
                FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                 MANAGEMENT'S DISCUSSION & ANALYSIS
                       For the Year Ended June 30, 2010
                                                                                             (Continued)


       A graphic display of the distribution of expenses for the two years follows:


                          For the Year Ended June 30, 2010



                             Debt Service­             Food Service
                          Unallocated I nterest          Program
Community Service
                                 3.25%                    2.43%
     0.02%
                                                                       General Support
                                                                           16.25%
     Pupil


    9.45%




                                    Instruction
                                     68.60%




                          For the Year Ended June 30, 2009




                                Debt Service­
     Community Service
                             Unallocated Interest       Food Service
             0.01%                                         Program
                                    3.69%
                                                            2.30%
        Pupil
                                                                           General Support
                                                                               16.55%
       9.86%




                                        Instruction
                                         67.59%
                                     FABrus POMPEY CENTRAL SCHOOL DISTRICT
                                      MANAGEMENT'S DISCUSSION & ANALYSIS
                                            For the Year Ended June 30, 2010
                                                                                                                    (Continued)



4. FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

  At June 30, 2010, the District's governmental funds reported a combined fund balance of $3,626,467, which is an increase of
  $659,194 over the prior year. This increase is due to an excess of revenues over expenditures for the year. A summary of the
  change in fund balance by fund is as follows:


                                                                                                                         Increase
   General Fund                                                                 2010                2009                (Decrease)
       Reserve for:
           Encumbrances                                                    $     147,359        $     164,932       $       (17,573)
           Unemployment Insurance                                                105,000               25,000                80,000
           Employee Benefit Accrued Liability                                    794,488              739,779                54,709
           Retirement Contribution                                               160,000              160,000
           Liability                                                             175,000              125,000                50,000
           Repairs                                                               125,000               75,000                50,000
       Unreserved - Designated for Subsequent Year's Expenditures                670,000              122,500               547,500
       Unreserved - Undesignated                                                 665,512              670,804                (5,292)
                                                                               2,842,359            2,083,015              759,344

   School Lunch Fund
       Reserve for Inventory                                                        8,374               9,457                (1,083)
       Unreserved - Undesignated                                                  32,665               11,734                20,931
                                                                                  41,039               21,191                19,848

   Special Aid Fund
       Unreserved - Undesignated



   Debt Service Fund
       Reserve for Debt                                                          736,418              856,427              (120,009)
                                                                                 736.418              856.427              (120,009)

   Capital Projects Fund
       Reserve for Encumbrances                                                  270,046              183,239                86,807
       Unreserved - Undesignated (Deficit)                                      (263,395)            (176,599)              (86,796)
                                                                                    6,651               6,640                       11

           Total Fund Balance                                              $   3626 467        $    2961213         $      652194


    Combined increases of $234,709 to the general fund reserved fund balances during the year ended June 30, 2010, includes
    transfers approved by the Board of Education.

    The Board of Education, in anticipation of an expenditure for retirement incentives that will be paid, unemployment costs, and
    increasing retirement system rates over the next several years, has increased the Employee Benefit Accrued Liability Reserve,
    Unemployment Insurance, Liability Reserve and Repair Reserve. This will provide funding for these expenditures as they need
    to be paid.

    The School Lunch Fund had an excess of expenditures over revenue of $152 for the year ended June 30, 20 I 0 before a transfer
    of $20,000 from the General Fund. This is due primarily to an increase in revenues of $19,516, while expenditures increased
    by $20,601.




                                                              9
                                     FABrus POMPEY CENTRAL SCHOOL DISTRICT
                                      MANAGEMENT'S DISCUSSION & ANALYSIS
                                            For the Year Ended June 30, 2010
                                                                                                                       (Continned)

5.   GENERAL FUND BUDGETARY HIGHLIGHTS

     A. 2009-2010 Budget

        The District"s general fund adopted budget for the year ended June 30, 2010, was $16,770,101.        This is an increase of
        $205,556 over the prior year's adopted budget.

        The budget was funded through a combination of revenues and designated fund balance. The majority of this funding source
        was $7,334,980 in estimated property taxes and STAR, and State Aid in the amount of$8,230,137.

     B. Change in General Fund's Unreserved - Undesignated Fund Balance (Budget to Actnal)

        The general fund's unreserved - undesignated fund balance is the component of total fund balance that is the residual of
        prior years' excess revenues over expenditures, net of transfers to reserves and designations to fund the subsequent year's
        budget. It is this balance that is commonly referred to as the "fund balance". The change in this balance demonstrated
        through a comparison of the actual revenues and expenditures for the year compared to budget follows:


                           Opening, Unreserved - Undesignated Fund Balance           $     670,804


                          Revenues and Other Sources Under Budget                         (172,233)


                          Expenditures and Encumbrances Under Budget                       949,149


                          Net Increase to Reserved Funds                                  (234,709)


                           Increase in Apropriated Fund Balance                           (547,500)


                           Micellaneous


                           Closing, Unreserved - Undesignated Fund Balance           $     665,512


         Opening, Unreserved - Undesignated Fund Balance

         The$670,804 shown in the table is the portion of the District"s June 30, 2009, fund balance that was retained undesignated.
         This was 4.0% of the District"s 2009-2010 approved operating budget.

         Revenues Over Budget

         The 2009-2010 fmal budget for revenues was $16,545,838. The actual revenues received for the year were$16,471,993.
         The actual revenue was under budgeted by $73,845 of which $43,860 was in State Aid and$41,432 in real property taxes.
         This variance contributes directly to the change to the undesignated portion of the general fund fund balance from June 30,
         2009 to June 30, 20 I O.

          Expenditures and Encumbrances Under Budget

         The 2009-2010 final budget for expenditures was $16,935,033. The actual expenditures and encumbrances were
         $15,985,884. The final budget was under expended by $949,149, primarily in programs for children with special needs
         and employee benefits. This under expenditure contributes to the change to the undesignated portion of the general fund
         balance from June 30, 2009 to June 30, 2010.




                                                                10
                                  FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                   MANAGEMENT'S DISCUSSION & ANALYSIS
                                         For the Year Ended June 30, 2010
                                                                                                                      (Continued)

    Appropriated Fund Balance

    The District has chosen to use $670,000 of its available June 30, 2010 fund balance to partially fund its 2010-201 1 approved
    operating budget.

    Closing, Unreserved - Undesignated Fund Balance

    Based upon the summary chaoges shown in the above table, the District will begin the 2010-201 1 fiscal year with an
    undesignated fund balance of$665,512. This is a decrease of $5,292 over the undesignated balance from the prior year as of
    June 30, 2009, and is within the 4% limit.

6. CAPITAL ASSET AND DEBT ADMINISTRATION

 A. Capital Assets

    At June 30, 2010, the District had invested in a broad range of capital assets, including land, construction in progress,
    buildings, and vehicles, furniture, and equipment. The net decrease in capital assets is due to capital additions less than
    depreciation recorded for the year ended June 30, 2010. A summary of the District's capital assets, net of accumulated
    depreciation at June 30, 2010 and 2009, is as follows:

                                                                                                               Increase
                                                                     2010                2009                 [Qecrease)
      Land                                                      $      425,550       $      425,550       $
      Buildings and Improvements                                    20,818,927         2 1 ,468,495              (649,568)
      Furniture, Equipment, and Vehicles                             1,097,074           1,159,9 8 1              (62,907)
           Capital Assets, Net                                  $   22341 551        $ 23054026          $       (712475)



 B. Debt Administration

    At June 30, 2010, the District had total bonds payable of $1 4,571,250. A summary of the outstanding debt at June 30, 2010
    and 2009, is as follows:

           Issue                 Interest                                                            Increase
            Date                 Rate (%)                2010                    2009               (Decrease)
           1 1194                6.5-6.8            $                      $        400,000       $     (400,000)
           02/00                 5.4-5.6                                         2, 1 10,000          (2, 1 10,000)
           04/02                 3.0-4.6                  1,035,000              1 ,350,000             (315,000)
           12/03                 3.6-3.7                  5,480,000              5,830,000              (350,000)
           06104                 3.7-3.8                  1,270,000              1 ,455,000             (185,000)
           06104                 4.1-4.3                  3,1 85,000             3,390,000              (205,000)
           10105                 5.0-5.8                      53,000                 56,000                 (3,000)
           12/05                 4.0-4.1                    540,000                 640,000             (100,000)
           10105                   3.6                        40,000                 75,000               (35,000)
           07/08                   3.6                      490,000                 682,000             (1 92,000)
           07/09                   3.0                      183,250                                       183,250
           04/10                 2.0-3.0                  2,295,000                                    2,295,000
                                                    $   1 4 571 25Q        $     15288 000        $ 11 416 750)


     During the year, $2,510,000 of serial bonds was advance refunded to lower debt service interest expenses.

     The refinancing of the $2,51 0,000 will reduce the District Debt Service expenses by approximately $30,000 per year for
     the next ten years.




                                                            11
                                       FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                        MANAGEMENT'S DISCUSSION & ANALYSIS
                                              For the Year Ended June 30, 2010
                                                                                                                          (Continued)

7. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET

     The designated fund balance applied to the June 30, 20II budget in the amount of $670,000, is a significant increase over prior
     years.

     The voters passed the 2010-201 1 budget in May of 2010 with a total appropriation of $16,629,129, a decrease of $305,904 from
     the prior year.

     The District will have a reduction in State Aid for the 2010-11 fiscal year. The district has appropriated $670,000 to offset this
     reduction in State Aid. The Audit and Finance Committee has a five year plan to continue this level of appropriation if the
     economic climate does not improve over the next five years.

     The economic climate and financial status of the State of New York brings uncertainty of the state sustaining and/or increasing
     State Aid in the future for the School District. Costs will escalate in the areas of medical insurance and retirement
     contributions, making it more difficult to contain costs. The School District has negotiated changes in health insurance plans to
     minimize increases. It has established reserves to offset significant increases in retirement costs, and has worked to purchase
     electricity and fuel in the least expensive manner.

8.   CONTACTING THE DISTRICT

     This financial report is designed to provide the School District's citizens, taxpayers, customers, investors, and creditors with a
     general overview of the School District's finances and to demonstrate the School District's accountability for the money it
     receives. If you have questions about this report or need additional financial information, contact the Business Office, at
     Fabius-Pompey Central School Distric� 1 2 1 1 Mill Stree� Fabius, New York 13063.




                                                                  12
                              FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                      STATEMENT OF NET ASSETS
                                            June 30, 2010



Assets
   Cash and Cash Equivalents                                                                     $    1,525,384
   Restricted Cash and Cash Equivalents                                                               2,095,888
   Receivables
      Due from Other Governments                                                                        807,894
      Due from Fiduciary Funds                                                                            1 , 143
      Other Receivables                                                                                  67,093
   Inventory                                                                                              8,374
   Capital Assets (Net of Accumulated Depreciation)                                                  22,341,55 1
          Total Assets                                                                           $   26841321

Liabilities
   Accrued Liabilities                                                                           $      120,062
   Due To
      Other Governments                                                                                 260,035
      Teacher's Retirement System                                                                       437,552
      Employees' Retirement System                                                                       57,241
   Deferred Credits
      Overpayments and Collections in Advance                                                             3,174
   Deferred Revenue                                                                                      65,451
   Noncurrent Liabilities
      Due Within One Year
         Bonds Payable                                                                                1 ,734,250
      Due in More Than One Year
         Compensated Absences                                                                           630,024
         Other Postemployment Benefit Liability                                                       6,463,030
         Bonds Payable                                                                               12,760,500
           Total Liabilities                                                                         22,531,319

Net Assets
   Investment in Capital Assets (Net of Related Debt)                                                 7,853,470
   Restricted For
      Debt Service                                                                                      736,418
      Repair Reserve                                                                                    125,000
   Unrestricted (Deficit)                                                                            (4,398,880)
          Total Net Assets                                                                            4,31 6,008

Total Liabilities and Net Assets                                                                 $   26841321




                    The Accompanying Notes are an Integral Part of These Financial Statements.
                                                      13
                             FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                     STATEMENT OF ACTIVITIES
                                           June 30, 2010




                                                                      Program Revenues                      Net (Expense)
                                                                                      Operating             Revenue and
                                                                 Charges for          Grants and             Changes in
Fnnctions/Programs                           Expenses             Services           Contributions           Net Assets
  General Support                        $       3,046,486   $                   $                      $         (3,046,486)
  Instruction                                   12,858,681            28,740             1 , 1 68,832           ( 1 1 ,661,109)
  Pupil Transportation                           1,771,959                                                        (1 ,771,959)
  Community Service                                  4,390                                                              (4,390)
  Debt Service - Unallocated Interest              610,188                                                           (610,188)
  Food Service Program                             454,858           2 1 2,891             1 3 1,344                 (110,623)
      Total FunctionslPrograms          $       1874656 2    $       241 631     $       1 300176               (17,204,755)

General Revenues
  Real Property Taxes                                                                                              5,974,560
  STAR and Other Real Property Tax Items                                                                           1,323,388
  Nonproperty Tax Items                                                                                              196,551
  Use of Money and Property                                                                                           47,525
  Sales of Property and Compensation for Loss                                                                            731
  State and Federal Sources                                                                                        8,036,792
  Miscellaneous                                                                                                      196,897
     Total General Revenues                                                                                      1 5,776,444

        Change in Net Assets                                                                                     ( 1 ,428,31\ )

        Net Assets, Beginning of Year                                                                             5,744,319

        Net Assets, End of Year                                                                         $         431600S




                   The Accompanying Notes are an Integral Part of These Financial Statements.
                                                     14
                                                   FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                                    BALANCE SHEET-GOVERNMENTAL FUNDS
                                                                             June 30, 2010




                                                                                  School             Special              Debt
                                                             General              Lunch               Aid                Service            CaJ2ital            Total

Assets

   Cash and Cash Equivalents                             $     1,508,071      $        10,214    $             430   $                  $         6,669     $    1,525,384
   Restricted Cash and Cash Equivalents                        1,359,488                                                    736,400                              2,095,888
   Receivables

         Due from Other Governments                              640,657               11,824           155,413                                                   807,894
         Due from Other Funds                                    135,873               32,022            29,350                    18                             197,263
         Other Receivables                                        67,093                                                                                           67,093
   fuventory                                                                            8 374                                                                       8374
              Total Assets                               �     3 111 182      �        6243:1 �         185 123      �      136:118     $         6662 $         4101 826

Liabilities

   Accrued Liabilities                                   $        49,871      $         5,985    $                   $                  $                   $      55,856
   Due To

              Other Governments                                 259,178                    857                                                                    260,035
            Other Funds                                           61,281               14,553           120,268                                        18         196,120
            Teacher's Retirement System                         437,552                                                                                           437,552
            Employees' Retirement System                         57,241                                                                                            57,241
         Overpayments and Collections in Advance                  3,174                                                                                             3,174
   Deferred Revenue                                                    526                               64,925                                                    65 451
            Total Liabilities                                   868,823                21,395           185,193                                        18        1 075 429

Fund Balance (Deficit)

   Fund Balance - Reserved

         Special Reserves                                      1,359,488                                                    736,418                             2,095,906
         Reserve for Inventory                                                          8,374                                                                           8,374
       Reserve for Encumbrances                                 147,359                                                                        270,046            417,405
   Fund Balance - Unreserved
       Designated for Subsequent Year's Expenditures            670,000                                                                                           670,000
       Undesignated (Deficit)                                   665 512                32665                                                  (263 325)           434,182
            Total Fund Balance                                 2,842359                41 039                               736.418               6,651         3 626,461

Total Liabilities and Fund Balance                       $    3 Zll 182 $              !i2434    $     1a� 123 $           1J� ;118 $            � �1J2 $       :i 1m 82�




                                           The Accompanying Notes are an Integral Part of These Financial Statements.
                                                                                  15
                                                   FABIUS POMPEY CENTRAL SCHOOL DISTRICT

                                               RECONCILIATION OF TOTAL GOVERNMENTAL FUND

                                                  BALANCES TO THE DISTRICT-WIDE NET ASSETS

                                                                         June 30, 2010




                                                                    Total

                                                                Governmental              Long-Term              Reclassifications            Statement of

                                                                   Funds                  Assets &                     and                     Net Assets
                                                              (Modified Accrual}          Liabilities              Eliminations                  Total

Assets

   Cash and Cash Equivalents                              $             1,525,384     $                      $                            $          1,525,384
   Restricted Cash and Cash Equivalents                                 2,095,888                                                                    2,095,888
   Receivables

         Due from Other Governments                                         807,894                                                                      807,894
         Due from Other Funds                                               197,263                                          (196,120)                      1,143
         Other Receivables                                                   67,093                                                                       67,093
   Inventory                                                                  8,374                                                                         8,374
   Capital Assets                                                                              22,3;41,551                                          22,341,551
         Total Assets                                    $              4,701,896     $        22341551
                                                                                                    ,        $               (! 96,120) $           26,847327

Liabilities



   Accrued Liabilities                                   $                   55,856   $             64,206   $                            $              120,062
   Due To

         Other Governments                                                  260,035                                                                      260,035
         Other Funds                                                        196,120                                          (196,120)
         Teacher's Retirement System                                        437,552                                                                      437,552
       Employees' Retirement System                                          57,241                                                                       57,241
   Compensated Absences                                                                           630,024                                                630,024
   Other Liabilities                                                                            6,463,030                                            6,463,030
   Bonds Payable                                                                               14,494,750                                           14,494,750
   Overpayments and Collections in Advance                                    3,174                                                                         3,174
   Deferred Revenue                                                          65,451                                                                       65,�,1
       Total Liabilities                                               1 075,429               21,652,010                    (! 96,120)             22,531,319

Total Fund BalancelNet Assets                                          3,626,467                  682 �41                                            4 316QQ8
Total Liabilities and Fund BalancelNet Assets            $             4,701,896      �        22lJ411��1    �               (196,120] $            26,847".7




                                          The Accompanying Notes are an Integral Part of These Financial Statements
                                                                                16
                                                     FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
                                                                   ALL GOVERNMENTAL FUNDS
                                                                   For the Year Ended June 30, 2010




                                                                                        School               Special             Debt
                                                                    General             Lunch                 Aid                Scnrice             C!l.Eitai            Total

Revenues

   Real Property Taxes                                         $      5,974,560     $                    $                   $                   $                    $    5,974,560
   STAR and Other Real Property Tax Items                              1,323,388                                                                                           1,323,388
   Nonproperty Tax Items                                                 196,551                                                                                             196,551
   Charges for Services                                                  28,740                                                                                               28,740
   Use of Money and Property                                             41,501                   158                                   81,033                               122,692
   Sale of Property and Compensation for Loss                                 731                                                                                                  731
   Miscellaneous                                                        199,884                   107                                                                        199,991
   State Aid                                                          8,009,910                  8,376              75,329                                                 8,093,615
   Federal Aid                                                          696,728            122,968               423,657                                                   1,243,353
   School Lunch Sales                                                                      212891                                                                            212821
      Totai Revenues                                                 16471 993             344 500               498986               81 033                              17 396512


Expenditures
   General Support                                                    1,852,860                                                                                            1,852,860
   Instruction                                                        7,170,876                                  498,986                                                   7,669,862
   Pupil Transportation                                                 970,834                                                                           183,239          1,154,073
   Community Service                                                      2,422                                                                                                   2,422
   Food Service Program                                                                    318,784                                                                           318,784
   Employee Benefits                                                  3,537,700             25,868                                                                         3,563,568
   Debt Service - Principal                                           1,685,000                                                                                            1,685,000
   Debt Service - Interest                                              598832                                                                                               5988 32
      Total Expenditures                                             15 818524             344652                498986                                   183 239         16 845401


Excess (Deficit) Revenues Over Expenditures                             653469                   (152)                                81 033             (183239)            55!   III



Other Financing Sources (Uses)

   Proceeds of Long-Term Debt                                                                                                      2,595,000              183,250          2,778,250
   Amounts Deposited with Escrow Agent                                                                                            (2,670,167)                             (2,670,167)
   Transfers from Other Funds                                           125,875             20,000                                                                           145,875
   Transfers to Other Funds                                             (20000)                                                     (125 875)                               (145875)
      Total Other Financing Sources (Uses)                              105875              20000                                   (201 042)             183250             108083


Excess (Deficit) Revenues Over Expenditures and
   Other Financing Sources                                              759,344             19,848                                  (120,009)                    II          659,194


Fund Balance Beginning of Year                                        2 083015              21 191                                   856427                  6 640         2 967273



Fund Balance, End of Year                                     $       2 842359      $       41 039       I                   I      ZJ!2 418     I           § 651    I    3 62g 4g7




                                                  The Accompanying Notes are an Integral Part of These Financial Statements.
                                                                                    17
                                   FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                               RECONCILIATION OF THE STATEMENT OF REVENUES AND
                                  EXPENDITURES OF THE GOVERNMENTAL FUNDS
                                        TO THE STATEMENT OF ACTIVITIES
                                                  For the Year Ended June 30, 2010




Net Chauges in Fund Balance - Total Governmental Funds                                                             $     659,194


Capital Outlays to purchase or build capital assets are reported
in governmental funds as expenditures. However, for governmental
activities, those costs are shown in the statement of net assets and
allocated over their useful lives as depreciation expenses in the
statement of activities. This is the amount by which depreciation
exceeded capital outlays in the period.
                                                                            Depreciation Expense      (91 4,486)
                                                                         Loss on Sale of Property        (3,094)
                                                                                  Capital Outlays     205,105           (712,475)


Bond proceeds provide current financial resources to governmental
funds, but issuing debt increases long-term liabilities in the statement
of net assets. Repayments of bond principal is an expenditure in
govermnental funds, but the repayment reduces long-term liabilities
in the statement of net assets. This is the amount by which repayments
exceeded bond proceeds.
                                                         Issuance of statutory installment bond       (1 83,250)
                                                                    Repayment of Bond Principal      1,685,000          1,501 ,750


Certain expenses in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in govermnental funds.
                                                          Amortization of Bond Issuance Costs            (8,500)
                                                   Chauge in Accrued Interest on Serial Bonds            (2,856)
                                                             Change in Compensated Absences              49,528
                                                                       Increase In OPEB Liability   (2,91 4,952)       (2,876,780)


Chauge in Net Assets Governmental Activities                                                                       $   (] 428311)




                            The Accompanying Notes are an Integral Part of These Financial Statements.
                                                              18
                              FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                STATEMENT OF FIDUCIARY NET ASSETS
                                                 June 30, 2010




                                                                        Private Purpose
                                                                            Trusts                Agency
Assets
   Cash and Cash Equivalents - Unrestricted                         $                         $       136,327
   Cash and Cash Equivalents - Restricted                                            10,466
          Total Assets                                              $                lQ466    $       36327
                                                                                                      J


Liabilities
   Due to Other Funds                                                                         $            1,142
   Agency Liabilities                                                                                  74,176
   Extrac1assroom Activity Balances                                                                    61,009
          Total Liabilities                                                                   $       136327


Net Assets
   Restricted for Scholarships                                      $                10,466


Total Liabilities and Net Assets                                    $                IQ 466




                   The Accompanying Notes are an Integral Part of These Financial Statements.
                                                     19
                     FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                  STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
                            For the Year Ended June 30, 2010



                                                                                   Private Purpose
                                                                                        Trusts
Additions
  Investment Income                                                                $           45
  Gifts and Contributions                                                                   2,600
      Total Additions                                                                       2,645

Deductions
  Scholarships and Awards                                                                   3,300

Change in Net Assets                                                                         (655)

Net Assets, Beginning of Year                                                              11,121

Net Assets, End of Year                                                           $        10466




            The Accompanying Notes are an Integral Part of These Financial Statements.
                                              20
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                        NOTES TO BASIC FINANCIAL STATEMENTS
                                              For the Year Ended Jnne 30, 2010



1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The basic financial statements o f the Fabius-Pompey Central School District (the School District) have been prepared in
     conformity with accounting principles generally accepted in the United States o f America ( G A AP) as apply to goverrnnental
     units. Those principles are prescribed by the Governmental Accounting Standards Board ( G ASB), which is the accepted
     standard-setting body for establishing governmental accounting and financial reporting principles.

     Certain significant accounting principles and policies utilized by the School District are described below:

     Reporting Entity

     The School District is governed by the laws of New York State. The School District is an independent entity governed by an
     elected Board of Education consisting o f 7 members. The President of the Board serves as the chief fiscal officer and the
     Superintendent is the chief executive officer. The Board is responsible for, and controls all activities related to public school
     education within the School District. Board members have authority to make decisions, power to appoint management, and
     primary accountability for all fiscal members.

     The reporting entity of the School District is based upon criteria set forth by G ASB. The fmancial reporting entity consists o f
     the primary government, organizations for which the primary government is financially accountable, and other organizations for
                                    i
     which the nature and signifcance of their relationship with the primary government are such that exclusion would cause the
     reporting entity's financial statements to be misleading or incomplete.

     The accompanying basic financial statements present the activities of the School District. The School District is not a
     component unit o f another reporting entity. The decision to include a potential component unit in the School District's reporting
     entity is based on several criteria including legal standing, fiscal dependency, and financial accountability. Based on the
     application of these criteria, the following is a brief description o f certain entities included in the School District's reporting
     entity.

     Extrac/assroom Activity Funds

     The Extraclassroom Activity Funds o f the School District represent funds of the students of the School District. The Board o f
     Education exercises general oversight of these funds. The Extraclassroom Activity Funds are independent of the School District
     with respect to its financial transactions and the designation o f student management. Separate audited financial statements (cash
     basis) of the Extraclassroom Activity Funds can be found at the School District's office. The School District accounts for assets
     held as an agent for various student organizations in an agency fund.

     Joint Venture

     The School District is a component district in the Onondaga, Cortland, and Madison Counties Board of Cooperative Education
     Services (BOCE S). A BOCES is a voluntary, cooperative association o f school districts in a geographic area that shares
     planning, services, and programs which provide educational and support activities. There is no authority or process by which a
     School District can terminate its status as a BOCES component.

     BOCES' are organized under §1950 o f the New York State Education Law. A BOCES' Board is considered a corporate body.
     Members o f a BOCES' Board are nominated and elected by their component member boards in accordance with provisions o f
     §1950 of the New York State Education Law. All BOCES' property i s held b y the BOCES' Board a s a corporation [§1950(6)].
     In addition, BOCES' Boards also are considered municipal corporations to permit them to contract with other municipalities on
     a cooperative basis under §119-n(a) o f the New York State General Municipal Law.

     A BOCES' budget is comprised of separate budgets for administrative, program, and capital costs. Each component district's
     share of administrative and capital cost is determined by resident public school district enrollment, as defined in the New York
     State Education Law, §1950(4)(b)(7). In addition, component districts pay tuition or a service fee for programs in which its
     students participate.



                                                                  21
                                FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                 NOTES TO BASIC FINANCIAL STATEMENTS
                                       For the Year Ended June 30, 2010



Basis ofPresentation

(a) District-Wide Statements

    The Statement of Net Assets and the Statement of Activities present financial information about the School District's
    govermnental activities. These statements include the financial activities of the overall government in its entirety, except
    those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions.
    Governmental activities generally are financed through taxes, State aid, intergovernmental revenues, and other exchange
    and nonexchange transactions. Operating grants include operating-specific and discretionary (either operating or capital)
    grants.

    The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the
    School District's governmental activities. Direct expenses are those that are specifically associated with and are clearly
    identifiable to a particular function. Indirect expenses, principally employee benefits, are allocated to functional areas in
    proportion to the payroll expended for those areas. Program revenues include charges paid by the recipients of goods or
    services offered by the programs, and grants and contributions that are restricted to meeting the operational or capital
    requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are
    presented as general revenues.

(b) Fund Financial Statements

    The fund statements provide information about the School District's funds, including fiduciary funds. Separate statements
    for each fund category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major
    governmental funds, each displayed in a separate column. All funds of the School District are displayed as major funds.
    The School District reports the following major governmental funds:


    General Fund: This is the School District's primary operating fund. It accounts for all financial transactions that are not
    required to be accounted for in another fund.

    Special Aid Fund: This fund accounts for the proceeds of specific revenue sources, such as Federal and State grants, that
    are legally restricted to expenditures for specified purposes.

    School Lunch Fund: This fund is used to account for transactions of the School District's lunch and breakf programs.
                                                                                                              ast

    Capital Projects Fund: This fund is used to account for the financial resources used for the acquisition, construction, and
    major repair of the School District's facilities.

   Debt Service Fund: This fund accounts for the accumulation of resources and the payment of principal and interest on long­
    term general obligation debt of governmental activities.

(c) Fiduciary Funds

   This fund is used to account for fiduciary activities. Fiduciary activities are those in which the School District acts as
   trustee or agent for resources that belong to others. These activities are not included in the district-wide financial
   statements, because their resources do not belong to the School District, and are not available to be used. There are two
   classes of fiduciary funds:

   Private Pumose Trust Funds: These funds are used to account for trust arrangements in which principal and income
   benefits annual third party awards and scholarships for students. Established criteria govern the use of the funds and
   members of the School District or representatives of the donors may serve on committees to determine who benefits.

   Agency Funds: These funds are strictly custodial in nature and do not involve the measurement of results of operations.
   Assets are held by the School District as agent for various student groups or extraclassroom activity funds and for payroll or
   employee withholding.


                                                               22
                                 FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                  NOTES TO BASIC FINANCIAL STATEMENTS
                                        For the Year Ended June 30, 2010



                             f
Measurement Focus and Basis o Accounting

The di strict-wide and fiduciary fund f  mancial statements are reported u sing the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred,
regardless of when the related cash transaction takes p lace . Nonexchange tran sactions, in which the School Di strict gives or
receives value without directly receivin g or giving equal value in exchange, include property taxe s, grants, and donation s. On
an accrual basi s, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from
grants and donation s i s recognized in the fiscal year in which all eligibility requirements have been satisfied.

The governmental fund statements are reported using the current financial resource s measurement f       ocus and the modified
accrual basis of accounting. Under this method, revenue s are recognized when measurable and available. The School Di strict
considers all revenues reported in the governmental fund s to be available if the revenues are collected within ninety days after
the end of the fiscal year.

                                                                                or
Expenditures are recorded when the related fund liability i s incurred, except f principal and interest on general long-term debt,
claims and jud gments, and compen sated absences, which are recognized as expenditures to the extent they have matured.
General capital a sset acquisitions are reported as expenditures in governmental fund s. Proceeds o f general lon g-term debt and
acquisitions under capital leases are reported as other financing sources.

Estimates

The preparation o f financial statements in conf  ormity with accounting principle s generally accepted in the United States of
America require s management to make e stimate s and assumptions that affect the reported amount o f assets and liabilities and
disclosure of contingent assets and liabilities at the date o f the financial statements and the reported revenue s and expenses
                                                       er
during the reporting period. Actual results could diff from those estimates. E stimate s and a ssumption s are made in a variety
of areas, including computation of encumbrances, compen sated absences, potential contingent liabilities, and useful lives of
long-lived a sset s.

Cash and Cash Equivalents

The School District' s cash and cash equivalents consi st o f cash on hand, demand deposits, and short-term investment s with
original maturities of three month s or less from date of acqui sition. New York State law governs the School District's
investment policies. Resources must be deposited in Federal Deposit Insurance Corporation ( F DIC) insured commercial banks
or trust companies located within the State . Permi ssible inve stment s include obligations of the United States Treasury, United
States Agencies, r epurchase agreements, and obli gations of New York State or its localitie s.

Collateral is required for demand and time deposits and certificates of deposit not covered by FDIC in surance. Obligation s that
may be pledged a s collateral are obligations of the United States and its agencies and obligations of the State and its
municipalities and Districts.

Property Taxes

Real property taxes are levied annually by the Board of Education and become a lien no later than September 1. Taxes are
collected during the period September 1 to November 15. The Counties o f Onondaga and Madi son sub sequently enf      orce
uncollected real property taxes. The County pays an amount representing uncollected real property taxes transmitted to the
         or
County f enf  orcement to the School Di strict no later than the following April 1 .

Receivables

Receivables are shown gross, with uncollectible amounts recognized under the direct write -o f f method. No allowance for
uncollectible accounts has been provided since it is be lieved that such allowance would not be material.




                                                            23
                                  FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                   NOTES TO BASIC FINANCIAL STATEMENTS
                                         For the Year Ended June 30, 2010



    f                          f
Inter und Transactions and Trans ers

The operations of the School District include transactions between funds. These transactions may be temporary in nat nre, such
as with interfund borrowings. The School District typically loans resources between funds for the purpose of providing cash
flow. These interfund receivables and payables are expected to be repaid within one year. Permanent transfers of funds include
the transfer o f expenditure and revenues to provide financing or other services. Such transfers are made in accordance with state
and local laws.

The amounts reported on the Statement of Net Assets for due to and due from other funds represents amounts due between
dif ferent fund types (goverrnnental activities and f iduciary funds). Eliminations have been made for amounts due to and due
from within the same fund t ype. A detailed description of the inter fund transactions for goverrnnental funds throughout the year
is shown in Note 9 to the financial statements.

Inventories

The inventories of food and/or supplies in the School Lunch Fund are recorded at cost on a first-in, first-out basis or, in the case
of surplus food, at stated value which approximates market. Purchases of inventoriable items in other funds are recorded as
expenditures at the time of purchase, and year-end balances are not maintained.

Capital Assets

Capital assets are reported at act nal cost for acquisitions subsequent to Jul y I, 2004. For assets acquired prior to July 1 , 2004,
estimated historical costs, based on appraisals conducted by independent th ird-par ty professionals were used. Donated assets
are reported at estimated fair market value at the time received. The School District uses capitalization thresholds of $1 ,000,
(the dollar value above which asset acquisitions are added to the capital asset accounts). Depreciation methods and estimated
useful lives o f capital assets reported in the district-wide statements are as follows:

                                                                       Lives                   Method
                 Buildings                                         50 Years                S traight L ine
                 Building Improvements                             20-25 Years             S traight Line
                 Furnit nre, Equipment, and Vehicles               5-20 Years              Straight Line

Compensated Absences

The School District employees are granted vacation in varying amounts, based primarily on length of service and service
position. Some earned benefits may be forfeited if not taken within varying time periods.

Sick leave eligibility and accumulation is specified in negotiated labor contracts, and in individual employment contracts.
Upon retirement, resignation, or death, employees may receive a payment based on unused accumulated sick leave, based on
contractual provisions .

Consistent with G A S B Statements, an accrual for accumulated sick leave is included in the compensated absences liability at
year end. The compensated absences liability is calculated based on the pay rates in e f fect at year end.

In the fund statements, only the amount of mat nred liabilities is accrued within the General Fund based upon expendable and
available financial resources. Those amounts are expensed on a pay-as-you go basis.

Retirement Plans

School District employees participate in the New York State Employees' Ret irement S ystem and the New York State Teachers'
Retirement S ystem.




                                                              24
                                 FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                  NOTES TO BASIC FINANCIAL STATEMENTS
                                        For the Year Ended June 30, 2010



                  fits
Postemployment Bene

In a ddition to providing pension benefits, the School District provi des health insurance coverage and survivor benefits for
retired employees and their survivors. Substantially all of the School District's employees may become eligible for these
benef its i f they reach normal retirement age while working for the School District with 15 years of service. Currently, 92
retirees meet those eligibility requirements . Health care bene fits are provided through plans whose premiums are based on the
benefits paid during the year. The School District pays a portion of the cost of premiums based upon the contract in force upon
retirement .

The retired employee reimburses the School District monthly or quarterly for the amount that is not covered by the School
District. The percentage reimbursed varies based on the type of employee and coverage . In aggregate, the School District
covers approximately 82% for family and 100% for individuals for health insurance . The School District 's portion of the
premiums during 2009-20 10 was approximately $496,700. This amount was recorded as an expenditure in the General Fund.

Deferred Revenue

Deferred revenues are reporte d when potential revenues do not meet both the measurable and available criteria for recognition in
the current period. Deferred revenues also arise when resources are received by the School District before it has legal claim to
them, as when grant monies are receive d prior to the incidence o f qualifying expenditures . In subsequent periods, when both
recognition criteria are met, or when the School District has legal claim to the resources, the liability for deferred revenues is
removed and revenues are recorded.

Restricted Resources

When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the School
District's policy concerning which to apply first varies with the intended use, and with associate d legal requirements .

Fund Balance - Reservations and Designations

The following reserve fun ds are currently used by the School District. Any capital gains or interest earne d on reserve fun d
resources becomes part of the respective reserve fun d. While a separate bank account is not necessary for each reserve fun d, a
separate i dentity for each reserve fund must be maintained.

            or
(a) Reservef Encumbrances

    Reser ve for Encumbrances represents the amount of outstan ding encumbrances at the end o f the fiscal year .

(b) Reserve for Unemployment Insurance

    This reser ve is used to accumulate funds to pay the cost of reimbursement to the New York State Unemployment Insurance
    Fund for payments made to claimants . Excess reserve amount may either be transferred to another reserve or applied to the
    appropriations of the next succee ding fiscal year's budget. The reserve is accounted for in the General Fund.

            or
(c) Reservef Liability

    This reserve is used to pay for liability claims incurred. The total amount accumulated in the reser ve may not exceed 3% o f
    the total annual budget. The reserve i s accounted for i n the General Fund.

             or
(d) Reserve f Repairs

    This reserve is used to accumulate funds through voter approval to finance future costs o f major repairs to capital
    improvements or equipment. Expenditures from this reser ve may be made only after a public hearing has been held. In an
    emergency, expenditures may be made from the reser ve fund without a public hearing with approval of t wo-thirds of the
    Board of E ducation. The emergency expenditure must be repaid within the next two succee ding years. The reserve is
    accoun ted for in the General Fund.

                                                            25
                                        FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                         NOTES TO BASIC FINANCIAL STATEMENTS
                                               For the Year Ended June 30, 2010




                 or           fit
     (e) Reservef Employee Bene Accrued Liability

          The purpose of this account is to reserve funds for the payment of any accrued employee b enefit due an employee upon
          termination s er vice. This r es erve fund may be established by a majority vote o f the board of education and is funded by
          budgetary appropriations and such other reserves and funds that may b e legally appropriated. The reserve is accounted for
          in the G en eral Fund.

     (j) Reserve f Retirement Contribution
                  or

                                                      i
         This r eserve is used for the purpose of fnancing retirement contributions to the Employees' Retirem ent System. This
         r eserve is accounted for in the Gen eral Fund.

      g)
     ( Reserve for Debt Service

         This r eserve is used to account for interest and earnings on outstanding obligations and r emaining bond proc eeds not to b e
         utili zed for t h e intended purpose. These monies must b e used t o pay t h e d ebt s ervice o f t h e obligations from which they
         originated. This r es er ve is accounted for in the Debt Ser vice Fund.

     (h) Reserve for Inventory

         This r eserve is used to limit the investment in inventory and to r estrict that por tion o f fund balance which is unavailable for
         appropriation. This reserve is accounted for in the School Lunch Fund.

                  or
     (i) Reserve f Endowments and Scholarships

         This r es erve is used to account for various endowment and scholarship awards. This r es erve is accounted for in the private
         purpos e tr ust fund. Investment income is used to fund scholarships as outlined in the individual endowments.

2.   DIFFERENCES BETWEEN GOVERNMENTAL FUND STATEMENTS AND DISTRICT-WIDE STATEMENTS

     Due to the di f f er ences in the measurement focus and basis o f accounting used in the governmental fund statements and the
     district-wid e statements, certain financial transactions are treated differ ently. The basic financial statements contain a full
     reconciliation o f these items. The di f f erences r esult primarily from the resource economic focus o f the Statement of Activities,
     compared with the current financial r esourc e managem ent focus of the governmental funds.

                          f
     Total Fund Balances o Governmental Funds Compared To Net Assets of Governmental Activities

     Total fund balances o f the School District's gov ernmental funds di ffers from "net assets" o f governmental activities r eported in
     the Statem ent o f Net Assets. This dif f er ence primarily r esults from the additional long-term economic focus of the Stat ement o f
     Net Assets versus t h e solely current financial resources focus o f t h e governmental fund Balance Sheet.

     Statement ofRevenues, Expenditures, and Changes In Fund Balance Compared To Statement ofActivities

     Dif f er ences b etw een the governmental funds Stat ement of R ev enues, Expenditures, and Changes in Fund Balance and lbe
     Statement o f Activities fall into one o f four broad categories.

                             f
     (a) Long-Term Revenue Dif erences

         Long-term revenue dif f er ences arise because governmental funds report r evenues only when they are considered
         "available, " whereas the Statement o f Activities r eports r evenues when earned. Di ffer ences in long-term expenses arise
         because governmental funds report on a modified accr ual basis, whereas the accr ual basis of accounting is used on the
         Statement of Activities.




                                                                    26
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                        NOTES TO BASIC FINANCIAL STATEMENTS
                                              For the Year Ended June 30, 2010



     (b) Capital Related Differences

                            f
         Capital related dif erences i nclude the difference between proceeds for the sale of capital assets repor ted on governmental
         fund statements and the gain or loss on the sale of assets as reported on the Statement of Activities, and the difference
                                               or
         between recording an expenditure f the purchase o f capital items in the governmental fund statements and depreciatio n
         expense on those items as recorded in the Statement o f Activities.

                                      f
     (c) Long-Term Debt Transaction Dif erences

         Long-term debt transaction differences occur because both interest and principal payments are recorded as expenditures i n
         the governmental fund statements, whereas i nterest payments are recorded in the Statement of Activities as incurred, and
         principal payments are recorded as a reduction ofliabilities in the Statement of Net Assets.

                     fit
     (d) Employee Bene Allocation

                        or
         Expenditures f employee bene fits are not allocated to a specific function on the Statement of Revenues, Expenditures, and
         Changes in Fund Equity based on the requirements of New York State. These costs have been allocated based on total
         salary for each function.

3.   STEWARDSHIP AND COMPLIANCE

     The School District's unreserved , undesignated fund balance was not in excess of the New York State Real Property Tax Law
                                                                                                          or
     §131 8 limit, which restricts it to a n amount not greater than 4% o f the School District's budget f the upcoming school year.

     At June 30, 2010, the School District had an unreserved un designated fund balance of $665, 512 or 4.0%, which is within the
     fund balance limit.

     Budgetary Procedures and Budgetary Accounting

                                                                       or
     The School District administration prepares a proposed budget f approval by the Board of Education and the voters of the
     School District for the General Fund for which legal (appropriated) budgets are adopted.

     Appropriations are adopted at the program line item level .

     Appropriations established by the adoption of the budget constitute a limitation on expenditures (and encumbrances) which may
     be incurred. Appropriations lapse at the end of the fiscal year unless expended or encumbered . Encumbrances will lapse if not
     expended in the subsequent year. Supplemental appropriations may occur subject to legal restrictions, if the Board approves
     them because ofa need that exists which was not determined at the time the budget was adopted.

     Budgets are adopted annually on a basis consistent with GAAP. Appropriations authorized for the year are increased by the
     amount ofencumbrances carried forward from the prior year . The budget and actual comparison for the Special Revenue Funds
                                                         or unds with legally authorized (appropriated) budgets.
     (ifany) re flects budgeted and actual amounts only f f

4.   CASH AND CASH EOUIVALENTS

     Custodial Credit Risk

     Custodial credit risk is the risk that i n the event of a bank failure, the School District's deposits may not be returned to it. New
     York State statutes govern the School District's investment policies, as discussed previously in these notes.

     As of June 30, 201 0, $3, 409, 604 of the School District's total bank balances of $3, 765, 471 not covered by FDIC were exposed
     to custodial credit risk and collateralized as follows :

          $          0
                  3 4 9 604    Collateralized with securities held by an agent of the pledging fmancial institution in an account i n the
                               District's name.




                                                                   27
                                      FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                       NOTES TO BASIC FINANCIAL STATEMENTS
                                             For the Year Ended June 30, 2010



     Restricted Cash and Cash Equivalents

     Restricted cash and cash equivalents of $I, 359, 488 in the General Fund represents the following:

                                       Description                                                         Amount
                      Employees' Retirement System Reserve                                         $          160,000
                      Unemployment Insurance Reserve                                                          105,000
                      Employee Benefit Accrued Liability Reserve                                              794,488
                      Liability Reserve                                                                       175,000
                      Repair Reserve                                                                          125,000
                         Total                                                                     $        I 359488

                                                                                                               or
     Restricted Cash and Cash Equivalents of $736,400 in the debt service fimd represents fim ds restricted f debt service of
                         mancing bonds , In addition, $ 1 8 shown as an amount due f
     outstanding deficit f                                                                                                    or
                                                                                    rom the General Fund is also restricte d f this
     purpose ,

     Restricted cash at $10,466 in the Private Pu rpose Trusts are restricted to awards and scholarships in accordance with donor
     intent .

5,   PARTICIPATION IN BOCES

                                                                    or
     During the year, the School District was billed $1, 35 1, 788 f B O CES' administrative and program costs , Financial statements
      or
     f the BOCES are available from the Onondaga, Cortland, and Madison BOCES' a dministrative office at 6820 Thompson
     Road, Syracuse, New York.

6,   CAPITAL ASSETS

                             or    ear
     Capital asset activity f the y ende d June 30, 2010, is as follows:

                                                                   Beginning                                                       Ending
                                                                    Balance             Increases             (Decreases)          Balance
     Capital Assets Not Being Depreciated
       Land and Improvements                                     $      425,550     $                  0     $           0     $     425,550
                                                                        425,550                        0                 0           425,550

     Capital Assets Being Depreciated
       Buildings and Improvements                                    30, 5 89,049            8, 1 74                     0         30, 597,223
       Furniture, Equipment, and Vehicles                             3,549,853            196,931               (119,0 3 8)        3,627,746
                                                                     34,1 38,902           205,105               (119,0 3 8)       34,224, 969

     Accumulated Depreciation
      Buildings and Improvements                                    9,120,554             657, 742                      0         9, 778, 296
      Furniture, Equipment, and Vehicles                            2,389,872             256,744                (115,944)        2,530,672
                                                                   11,510,426             914, 486               (115,944)       12,30 8,968
     Net Capital Assets                                          $ 2 3 054 026      $     009,381)           $     (3 094)     $ 22 34 1,551

     Depreciation expense of$914, 4 86 is charged as follows:

                                FunctionlProgram
                                  General Support                                              $           568, 861
                                  Instruction                                                              128,757
                                  Pupil Transportation                                                     205,0 84
                                  Food Service Program                                                      11,7 84
                                    Total Depreciation                                         $           914 4 86


                                                                 28
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                        NOTES TO BASIC FINANCIAL STATEMENTS
                                              For the Year Ended June 30, 2010



7.   SHORT-TERM DEBT


     The School District may issue Bond Anticipation Notes (BANs), in auticipatiou of proceeds from the subsequent sale of bonds.
     These notes are recorded as current liabilities of the funds that will actually receive the proceeds from the issuance of bonds.
     State law requires that BANs issued for capital purposes be converted to long-term financing within five years after the original
     issue date.

     The School District had no short-term debt during the year.

8.   NONCURRENT LIABILITIES


     A sururnary of the balances and activity of noncurrent liabilities is as follows:

                                                                                                                            Amounts
                                                Beginning                                                  Ending          Due Within
                                                 Balance          Additions           Deductions           Balance         One Year
        Bonds Payable
          Serial and Statutory
           Installment Bonds                   $ 1 5,988,000    $ 2, 778,250     $       4,195,000      $ 14, 5 71 , 250   $ 1 ,734,250
           Refunding Bond
            Issuance Cost                                   0        (85,000)               ( 8, 500)         (76, 500)         (8,500)
        Other Liabilities
          Compensated Absences                      679, 552               0                49,528           630,024                 0
          OPEB Liability                          3,548,078       2,914,952                      0         6,463,030                 0
             Total Noncurrent Liabilities      $ 20215 630      $ 5 60 8 202      $      4 236 028      $ 21 587 804       $ 1 725,150


     Additions and deletions to compensated absences are shown net since it is impracticable to detennine these amounts separately.


     Serial and Statutory Installment Bonds


     The School District borrows funds on a long-term basis for the purpose of financing acquisitions of land and equipment and
     construction of buildings and improvements. This policy enables the cost of these capital assets to be borne by the present and
     future taxpayers receiving the benefit of the capital assets. These long-term liabilities for governmental funds are maintained
     separately and represent a reconciling item between the fund and District-wide statements. Interest associated with long-term
     debt is recorded as an expenditure when such amounts are due.




                                                                   29
                                 FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                  NOTES TO BASIC FINANCIAL STATEMENTS
                                        For the Year Ended June 30, 2010



The following is a statement of serial bonds outstanding:

                                       Date of                                Date of
                                       Original          Original              Final           Interest       Outstanding
     Payable from/Descril1tion          Issue            Amount               Maturity         Rate (%)        Amount
     General Fund
       1994 Construction                1 1/94       $      1 ,590,000         2013         6.5 - 6.8     $
       2000 Construction                02/00        $      3, 1 85,000        2019         5.4 - 5.6
       Refunding Bond 2003              04/02        $      3,240,000          2013         3.0 - 4.6           1,035,000
       200 I Construction               12/03        $      7,255,000          2022         3.6 - 3.7           5,480,000
       200 I Construction               06/04        $      2,270,000          2016         3.7 - 3.8           1,270,000
       2001 Construction                06/04        $      4,299,724          2022         4.1 - 4.3           3,1 85,000
       200I Construction                10/05        $           65,276        2021         5.0 - 5.8               53,000
       2005 Deficit Financing           12/05        $      1,004,573          2015         4.0 - 4 . 1           540,000
       2005 Buses                       10/05        $         169,325         2010               3.6              40,000
       2008 Statutory Installment
         Bond                           07/08        $          682,000        2014                3.6            490,000
       2009 Statutory Installment
         Bond                           07/09        $        183,250          2015               3.0          1 83,250
       20 I 0 Refunding Bond            04/10        $      2,595,000          2019         2.0 - 3.0        2,295,000
             Total                                                                                        $ 14 571 250

Interest on long-term debt for the year was composed of:

                   Interest Paid                                                           $  598,832
                   Less: Interest Accrued in the Prior Year                                   (61,350)
                   Plus: Interest Accrued in the Current Year                                  64,206
                   Plus: Amortization of Bond Issuance Cost                                     8.500
                      Total Expense                                                           6 0 "",
                                                                                              ", ",
                                                                                           $�� 1",18 8

Principal and interest payments due on serial bonds debt is as follows:

                                                              Princinal               Interest
                       201 1                                $    1,734,250       $        538,496
                       2012                                      1,762,000                475,5 1 6
                       2013                                      1 ,754,000               409,552
                       2014                                      1,288,000                342,362
                       2015                                      1,274,000                294,9 14
                       2016- 2020                                5,013,000                841,645
                       2021 - 2023                               1,746,000                 83,012
                         Total                              $  1 4 57 1 250      $      2 985 421

         f
Advance Re unding

On April 13, 2010, the School District issued $2,595,000 of General Obligation Bonds, Series 2010, with an average interest
rate of 2.97%. The bonds consist of serial bonds bearing various fixed rates ranging from 2.0% to 3.0% with annual maturities
from May 2010 through May 2019.

The net proceeds of $2,591 ,020, (after issuance cost of $79, 147, less premium of $75, 167) were used to advance refimd various
series of bonds with a total principal amount of $2,51 0,000 and an average interest rate of 5.63%.

The net proceeds were used to purchase U.S. governmental securities. Those securities were deposited into an irrevocable trust
with an escrow agent to provide for future debt service payments on the refimded bonds. As a result, the refimdable bonds are
considered to be defeased, and the related liability for the bonds has been removed from the School District Liabilities.

The advance refunding was done in order to reduce future debt payments. The transaction resulted in an economic gain
(difference between the present value of the debt service on the old and new bonds) of approximately $251,000.
                                                                30
                                      FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                       NOTES TO BASIC FINANCIAL STATEMENTS
                                             For the Year Ended June 30, 2010



                            f
     Prior-Year Defeasance o Debt

     In the current and prior years, the School District defeased certain general obligation bonds by placing the proceeds of new
     bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account
     assets and the liability for the defeased bonds are not included in the School District's financial statements. On June 30, 2010,
     $3,145,000 of bonds outstanding are considered defeased.

     Debt Limit

     Pursuant to the Local Finance Law, the School District has the power to contract indebtedness for any school district purpose
     authorized by the legislature of the State of New York provided the aggregate principal amount tbereof shall not exceed ten per
     centum of the full valuation of the taxable real estate of the School District and subject to certain enumerated deductions such as
     State aid for building purposes. The Constitutional and statutory method form determining full valuation consist of taking the
     assessed valuation of taxable real estate for the last completed assessment roll and applying thereto the ratio (equalization rate)
     which such assessed valuation bears to the full valuation; such ratio is determined by the State Board of Real Property Services.
     The Legislature also is required to prescribe the manner by which such ratio shall be determined by such authority.

     The following table sets forth the computation of tbe debt limit of the School District and its debt contracting margin:

             Full Valuation of Taxable Real Property                                     $      293 555 071
             Debt Limit (10% of Full Valuation)                                                  29,355,507

             Outstanding Indebtedness (Principal Only)
               Bonds                                                $       14,571,250
               Refunded Bonds                                                3,145.000

             Total Net Indebtedness                                                      $        17,716,250
             Debt Contracting Margin                                                     $        1 1 639 251

             Percentage of Debt Contracting Power Exhausted                                           60.3%

     Compensated Absences

     Compensated absences represent the value of earned and unused portion of the liability for compensated absences.

9.   INTERFUND TRANSACTIONS

                                                                       Interfund                          Interfund
                         Fund                                  Receivable       Payable           Revenues       EX:Qenditures
             General                                          $   135,873 $         61,281      $    125,875    $      20,000
             Special Aid                                           29,350         1 20,268                  0               0
             Capital Projects                                            0               18                 0               0
             Debt Service                                               18                0                 0         125,875
             Trust and Agency                                            0           1 ,143                 0               0
             School Lunch                                          32,022           14,553            20,000                0
               Total                                          $   191 263 $       127 263       $    145 875    $     145 815

     •   Interfund Receivables and Payables are considered temporary. The School District intends to repay the amounts within the
         next fiscal year.

     •   The School District typically loans resources between funds for the purpose of mitigating the effects of transient cash flow
         Issues.

     •   The School District made a transfer of $20,000 from the General Fund to the School Lunch Fund to supplement the School
         Lunch operations.

     •   The School District made a transfer of $125,875 from the Debt Service Fund to the General Fund to reduce debt service
         expense.

                                                                  31
                                         FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                          NOTES TO BASIC FINANCIAL STATEMENTS
                                                For the Year Ended June 30, 2010



10.   PENSION PLANS

      The School District participates in the New York State Employees ' R etirement System (NY S ERS) and the New York State
      Teachers' Retirem ent System (NYSTR S). These are cost-sharing multiple employer public employee retirement systems . The
      Systems o f f er a wide range of plans and b en efits, which are r elated to years of s er vice and final average salary, vesting of
      r etirement b enefits, death, and disability.
      The N ew York State Teacher s ' Retirement Board a dministers N Y S T R S. The System provides b enefits to plan members and
      b en eficiaries as authorized hy the E ducation Law and the R etirement and Social Security Law of the State of New York.
      NYSTRS issues a publicly available financial report that contains fmancial statements and r equired supplem entary information
      for the System. The r eport may b e obtained by writing to N Y S T R S, 10 Corporate Woo ds Drive, Albany, New York
      1221 1-2395.
      N Y S E RS provides r etirement b en efits as w ell as death and disability b en efits. N ew York State R etirement and Social Security
      Law governs obligations of employers and employees to contribute and b en efits to employees . The System issues a publicly
      available financial report that includes financial statements and r equired supplementary in formation. That r eport may b e
      obtained b y writing t o NY SERS, Governor Alfred E. Smith State Office Building, Albany, N ew York 12244.
      The Systems are noncontributory, exc ept for employees who joined the Systems after July 27, 1976, who contribute 3% of their
      salary, except that employees in the Systems more than ten years are no longer required to contribute. For NYSERS, the
      Comptroller c ertifies the rates expressed as proportions of m emb ers ' payroll annually, which are used in computing the
      contributions r equired to be made by employers to the pension accumulation fund. Pursuant to Article I I of the Education Law,
      the N ew York State T eachers ' R etirem ent Board establishes rates annually for NYSTR S .
      The School District is r equired t o contribute at an act uarially det ermined rate. The School District contributions made to the
      Systems were equal to 100% of the contributions required for each year. The accrned amount for E R S at Jun e 30, 2010, and the
      r equired contributions for the current year and two preceding years w er e:
                                                                            For the Y ears En ded Jun e 30,
                                                        201 1               2010               2009                 2008
              ERS
               District Contribution Rate             1 1 .3- 14.0%       8.00-10.70%         8.10-10.80%         8.90-12.00%
                District Contributions            $        57,241     $       1 1 7,282   $       130,701     $       133,943
              TRS
               District Contribution Rate                                      6.19%               7.63%               8.73%
                District Contributions                                $      376,158      $      446,720      $      493,646

11.   POSTRETIREMENT HEALTH CARE BENEFITS

      (a) Plan Description

          The School District a dministers the Payment o f Postretirement Healthcare Benefits for R etir ees o f the school District (the
          Plan) as a single- employer defined b en efit Other Post employment Benefit plan . The Plan provides for continuation o f
          m edical and dental insurance b en efits for certain r etirees and their spouses and can b e amended b y action o f the School
          District subject to applicabl e collective bargaining and employm ent agreements as follows:

          •                                                                                                                         i
              Plan Typ es - The School District provides medical and dental b en efits to its eligible r etirees. The medical b enefts are
              provided through fully insured plans that are sponsored by a regional health insurance consortium . The dental b en efits
              are based on an annual flat rate r eimbursem ent from the School District .

          •   Eligibility - Employees are r equired to r each age 55 and provide 15 years of s ervice to the district to qualifY for medical
              and dental b en efits. Employees hired before July I, 1989 that have r eached age 55 and s erved 15 years will also get
              r eimbursed for M edicare Part B.

          •   Benefit Cost Sharing - The School District pays 100% of the retiree's b en efits for medical insurance. The school will
              reimburse retirees for up to $100 of dental exp enses. In addition, employees hired b efore July I , 1989 also receive
              M edicare Part B r eimbursement.


                                                                      32
                                  FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                   NOTES TO BASIC FINANCIAL STATEMENTS
                                         For the Year Ended Jnne 30, 2010



     •   Spouse Benef it - The School District contributes towards the cost o feligible spouses. Spouses receive medical benefits
         and are required to contribute 25% to cover the costs. In addition, spouses o femployees hired bef ore July I , 1989 also
         receive Medicare Part B reimbursement.

     •    Surviving Spouse Benefit - The spouse will continue to receive medical benefits after the death o f a retiree. However ,
                                             or
         they will not receive reimbursement f Medicare Plan B.

                                                                                                                             or
     The Plan does not issue a stand alone publicly available financial report since there are no assets legally segregated f the
     sole purpose o fpaying benefits under the Plan.

 (b) Funding Policy

     The obligations ofthe Plan members, employers, and other entities are established by action o fthe School District pursuant
    to applicable collective bargaining and employment agreements. The required contribution rates o f the employer and the
    members vary depending on the applicable agreement. For the y           ear ended June 30, 2010, the School District's Plan
    contributions ranged f   rom 75% to 100% o f the required annual premiums. The District 's annual other post-employment
                                      or
    benefit (OPEB) cost (expense) f each plan is calculated based on the annual required contribution of the employer (ARC),
    an amount actuarially determined in accordance with the parameters of G A SB Statement 45. The ARC represents a level of
     funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial
    liabilities (or funding excess) over a period not to exceed thirty years. The employer currently contributes enough money to
    the Plan to satisfY current obligations on a pay-as-you go basis. The costs o f administering the Plan are paid by the School
    District .

(c) Annual OPEB Cost

                                                                                           2010
             N orrnal Cost                                                           $    1,713,580
             Amortization ofUAL                                                           1,732,356
             Interest                                                                        43,659
             ARC                                                                          3,489,595
             Interest on OPEB Obligation                                                     90,476
             Adjustment to ARC                                                             (168,5 1 6)
             OPEB Expense                                                            $    341 1 555

(d) Reconciliation ofNet OPEB Obligation

                                                                                          2010
             Net OPEB Obligation at the Beginning o fthe Year                        $    3,548,078
             OPEB Expense                                                                 3,411,555
             Net OPEB Contributions Made During the Fiscal Year                            (496,603)
             Net OPEB Obligation at the End of the Year                              $    6 463 Q3Q
             Percentage of Annual OPEB Expense Contributed                                    14.6%

(e) Trend Information

                                        Annual
                  Fiscal Year          Net OPEB           OPEB E xpense         % of Expense           Net OPEB
                    Ending              Expense            Contributed           Contributed           Obligation
                 June 30, 2009       $   4,254,700        $      706,622            16.6%            $   3,548,078
                 June 30, 2010       $   3,411,555        $      496,603            14.6%            $    6,463,030




                                                             33
                                   FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                    NOTES TO BASIC FINANCIAL STATEMENTS
                                          For the Year Ended June 30, 2010



(f) Funding Status

             Actuarial Accrued Liability (AAL)                                       $     36,936,634
             Actuarial Value of Assets                                                              0
             Unfunded Actuarial Accrued Liability (UAAL)                             $     36 236 634
             Funded Ratio (Assets as a Percentage of AAL)                                        0%

             Annual Covered Payroll                                                  $      6,61 8,000
             UAAL as a Percentage of Covered Payroll                                          558.12%

(g) Actuarial Methods and Assumptions

    Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far
    into the future. For this reason, the results in this report should be viewed as estimates. Actuarially determined amounts are
    subject to continual revision as actual results are compared to past expectations and new estimates are made about the future.

    The projections of benefits are based on the types of benefits provided under the substantive plan at the time of the valuation
    date and on the pattern of cost-sharing between the employer and Plan members. In addition, the projections do not
    explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost-sharing between
    the employer and Plan members in the future. The actuarial calculations reflect a long-term perspective; actuarial methods
    and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and
    the actuarial value of assets. The actuarial measurement date was dated July 1, 2009.

    Effective July 1 , 2008, the School District's other postemployment benefit (OPEB) cost for all employee health insurance
    benefits is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with
    the parameters of GASB No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
    cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The
    following table shows the components of the School District's annual OPEB cost for the year, the amount actually
    contributed to the Plan, and changes in the School District's net OPEB obligation.

(h) Health Care Trend Factors

    Medical care costs are assumed to increase in accordance with the following schedule:

                                  Year                                                   Trend
                          2010                                                             10%
                          201 1                                                             9%
                          2012                                                              8%
                          2013                                                              7%
                          2014                                                              6%
                          2015                                                              5%

(i) Additional Information

            Actuarial Valuation Date                                                           July 1, 2009
            Actuarial Cost Method                                                     Projected Unit Credit
            Amortization Period                                                 Single Amortization Period
            Amortization Period (Years)                                                                  30
            Amortization Discount                                                                    2.55%
            Method Used to Determine Actuarial
              Value of Assets                                                                            N/A
            Projected Salary Increase                                                                     0%
            Fiscal year that the Rate Reaches the Ultimate Trend Rate                                    20 15



                                                             34
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                        NOTES TO BASIC FINANCIAL STATEMENTS
                                              For the Year Ended June 30, 2010



12.   RISK MANGEMENT

      General Information

      The Fabius-Pompey Central School District is exposed to various risks of loss related to torts; theft of, damage to, and
      destruction of assets; injuries to employees; errors and omissions and natural disasters. These risks are covered by commercial
      insurance purchased from independent third parties. Settled claims from these risks have not exceeded commercial insurance
      coverage for the past three years.

      Workers' Compensation Consortium

      The School District participates in a Workers' Compensation Consortium for its employees. Benefits are provided through self­
      funding by the individual participants through the purchase of insurance and through the purchase of "stop-loss" coverage. A
      member may withdraw from the Plan by submitting a notice of withdrawal by May I preceding the school year of withdrawal.
      Upon withdrawal, the Board will detennine amounts owed by the member or amounts that may be due to the withdrawing
      member. The School District paid premiums to the Workers' Compensation Consortium which totaled $78, I 08 for the year
      ended June 30, 2010.

      Health Insurance Consortium

      The School District participates in a non-risk retained public entity risk pool for its employee health insurance coverage. A
      member of the Health Consortium may withdraw from the plan by submitting a notice of withdrawal by May I preceding the
      school year of withdrawal. Upon withdrawal, the Board will detennine amounts owed by the member or amounts that may be
      due to the withdrawing member. If the Plan's assets were to be exhausted, members would be responsible for the Plan's
      liabilities including additional assessments if necessary. Premiums paid to the health consortium totaled $2,406,3 1 6 for the year
      ended June 30, 2010.

      Financial statements for both risk pools are available at the OCM BOCES business office, 6820 Thompson Road, Syracuse,
      New York, 13221.

13.   CONTINGENCIES AND COMMITMENTS

      Potential Grantor Liability

      Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the
      Federal and State governments. Any disallowed claims, including amounts already collected, may constitute a liability of the
      applicable funds. The amounts, if any, of expenditures which may be disallowed by the grantor carmot be detennined at this
      time although the School District expects such amounts, if any, to be immaterial.

      Construction Commitments

      As of June 30, 2010, the voters and the Board of Education authorized $14,543,865 in capital projects. Through June 30, 2010,
      the School District has cumulative project expenditures of $14,532,939 with the remaining in outstanding construction
      commitments.

14.   PRIVATE PURPOSE TRUST FUNDS - DONOR-RESTRICTED ENDOWMENTS

      The School District administers endowment funds, which are restricted by the donor for the purposes of scholarships.

      The School District authorizes expenditures from donor-restricted endowments in compliance with the wishes expressed by the
      donor, which varies among the unique endowments administered by the School District.




                                                                   35
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                        NOTES TO BASIC FINANCIAL STATEMENTS
                                              For the Year Ended June 30, 2010



15.   FUND BALANCE - SPECIAL RESERVES

      The following is a summary ofthe change in special reserve funds during the year ended June 30, 20 I 0:

                                                                             Balance at          Change in           Balance at
                     Reserve                                                 07101/09             Reserves           06/30/10
            General Fund
              Employee Benefits                                          $       739,779     $        54,709     $      794,488
              Employee Retirement System                                          160,000                   0           160,000
              Repair Reserve                                                        75,000            50,000            125,000
              Unemployment Insurance                                                25,000            80,000            105,000
              Liability Reserve                                                   125,000             50,000            175,000
               Total General Fund                                             1 , 1 24,779           234,709          1,359,488
            Debt Service                                                         856,427            (120,009)           736,41 8
            Reserve f Inventory
                      or                                                             9,457             (1,083)            8,374
               Total                                                     $    I 990 663      $       1 13 617    $    2 IQ4 280

16.   RECLASSIFICATION

                                                                                       or
      Certain amounts in the prior -year financial statements have been reclassi fied f comparative purposes to conform with the
      presentation in the current-year financial statements.

17.   SUBSEOUENT EVENT

      On July 15, 2010, the School District issued $270,050 in Statutory Instalhnent Bonds bearing an interest rate of 3.0%. The
      bonds mature in July 15, 2016, and were issued to finance school bus purchases.

18.   ACCOUNTING PRONOUNCEMENT APPLICABLE FOR SUBSEOUENT YEAR

      GASB Statemenl No. 54, Fund Balance Reporting and Governmental Fund Type Definitions

      G A S B 54 is intended to improve the usefulness of inf     ormation provided to financial report users about fund balance by
      providing clearer, more struct ured fund balance classi fications, and by clarifying the definitions ofexisting governmental fund
      types. GASB 54 establishes a hierarchy of fund balance classif ications based primarily on the extent to which a government is
      bound to observe spending constraints imposed upon how recourses reported in governmental funds may be used . Specifically,
      GASB 54 distinguishes fund balance between amounts that are considered nonspendable and other amounts that are classi fied
                                                                                  or
      based on the relative strength ofthe constraints that control the purposes f which specific amounts can be spent . Under GASB
      54, fund balance amounts will be reported in the f ollowing classifications:

          Restricted - amounts constrained by external parties, constitutional provision, or enabling legislation ;

          Committed - amounts constrained by a government using its highest level of decision-making authority;

                                                          or
          Assigned - amounts a government intends to use f a particular purpose ; and

          Unassigned - amounts that are not constrained at all will be reported in the general fund .

      G A SB 54 is ef ective f financial statements f periods beginning after June 15, 2010. Early adoption is encouraged.
                     f        or                     or




                                                                    36
                       FABIUS POMPEY CENTRAL SCHOOL DISTRICT
             SCHEDULE OF CHANGE FROM ORIGINAL BUDGET TO REVISED BUDGET
                    AND USE OF UNRESERVED FUND BALANCE - GENERAL FUND
                                      For the Year Ended June 30, 2010




Change from Adopted Budget to Revised Budget

  Adopted Budget                                                            $   16,770,101

  Add: Prior Year's Eucumbrances                                                   1 64,932

  Original and Final Budget                                                 $   1 6 935 033




Use of Unreserved Fuud Balance

  Umeserved Fund Balance - As of the Begiuniug of the Year                  $     793,304

  Less: Designated Fund Balance Used For Subsequent Year's Appropriations          1 22,500

  Undesignated Fund Balance - As of the Beginning of the Year               $     670 804




                                                      37
                                                                                               FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                                                                 SCHEDULE OF PROJECT EXPENDITURES - CAPITAL PROJECTS FUND
                                                                                                            For the Year Ended June 30, 2010




                                                                                                         EX2enditures                                                                      Methods ofFinancin�                                     Fund
                                      Original                Revised                Prior                 Current                               Unexpended         Proceeds of    Federal and           Local                             Balance (Deficit)
                                    Authorization           Authorization            YeaTs                  Year              Total               Balance           Obligations        State Aid         Sources            Total              June 30, 2010

PROJECT TITLE
    District Renovations 2000   $       14,410,000      $       14,425,865       $   14,425,162      $                    $   14,425,162     $             703     $ 14,410,000    $                 $        5,907     $   14,4 15,907    $           (9,255)
    HVAC 2007                               1 1 8 000               1 1 8 !JOQ           107 777                                  107 771              1 0 223                             14 5}4           ]03 486             118 000                J O 223
         Total Projects                 1 4 528 000             1 4 543 865          1 4 532 939                              1 4 532 939              1 0 926       1 4 410 000           14 514           109 393         1 4 533907                     968




Buses
    Buses - 2010                           183,250                 183,250                                      183,239            183,239                    II        183,250                                                183,250                      11
    Buses - 2009                           270,000                 270,000                 268,939                                 268,939                1,061         269,200                                                269,200                     261
    Buses - 2008                           265,000                 265,000                 264,614                                 264,614                  386         159,000                             106,000            265,000                     386
    Buses - 2007                           280,000                 280,000                 279,91O                                 279,910                   90         224,000                              55,910            279,910
    Buses - 2006                           169,625                 168,665                 168,665                                 168,665                              169,625                                                169,625                      960
    Buses - 2005                           145 000                 140 22�                 140 935                                 140 935                               29800                              1 1 5 200          145 000                    4 065
         Total Buses                     1 312 875               1 307850              I   123 063              183 239        I   306302                 1 548       1 034 875                             277 1 1 0        1 3 1 1 985                  5,683



    Totals                      $      j5�.8A.o--E15: $         15 851 11s:      $   l5..6S6.O.D2 $            ]83 232    $   1 5 839 241    $     __ _
                                                                                                                                                    _ _1 Al4 Lli.441.81S
                                                                                                                                                        2                          $       14 51 4   $      386.503     $   15,845,892     $              6,651




                                                                                                                              38
                                                 FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                        SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                                                      BUDGET AND ACTUAL-GENERAL FUND
                                                            For the Year Ended June 30, 2010



                                                                                                                                                     Final Budget
                                                                     Original             Final                                                      Variance With
                                                                     Budget              Budget              Actual                                     Actual
Revenues
   Local Sources
      Real Property Taxes                                        $      6,015,992   $      6,015,992   $      5,974,560                        $                 (41,432)
      STAR and Other Real Property Tax Items                            1,318,988          1,318,988          1,323,388                                            4,400
      Nonproperty Tax Items                                               180,000            180,000            196,551                                           16,551
      Charges for Services                                                 34,742             34,742             28,740                                           (6,002)
      Use of Money and Property                                            46,000             46,000             41,501                                           (4,499)
      Sale of Property and Compensation for Loss                                                                    731                                              731
      Miscellaneous                                                      216,500             216,500            199,884                                          (16,616)
   State Aid                                                           8,230,137           8,053,770          8,009,910                                          (43,860)
   Federal Aid                                                           503 479             679,846            696728                                            16,882
          Total Revenues                                              16,545,838          16,545,838         16,471,993                                          (73,845)

Other Financing Sources
   Transfers from Other Funds                                              224,263           224,263            125,875                                       (98,388)
   Appropriated Fund Balance                                               164 932           164,932                                                         (164,932)
         Total Revenues and Other Financing Sources              $     1 6 935 033 $      i�235Q3�           16 597 868                        I             £JJZ 1622
                                                                                                                                                     Final Budget
                                                                                                                                                     Variance With
                                                                     Original             Final                                  Year-End               Actual
                                                                      Budset             Budset             Actual             Encumbrances        And Encumbrances
Expenditures
   General Support
       Board of Education                                        $        12,117    $         14,171   $         11,494    $           1,080   $                1,597
       Central Administration                                            190,860             194,674            192,327                                         2,347
      Finance                                                            276,592             280,739            267,338                5,288                    8,113
       Staff                                                              67,187              71,038             69,932                                         1,106
       Central Services                                                1,395,348           1,394,573          1,166,103              126,207                  102,263
       Special Items                                                     146,339             147330             145 666                                         1,664
          Total General Support                                        2 088 443           2 102 525          1 852,860              132 575                  117 090
   Instruction
      Instruction, Administration, and Improvement                       333,088             333,892            324,697                 108                     9,087
      Teaching - Regular School                                        4,579,147           4,586,507          4,528,433                 316                    57,758
      Programs for Children With Special Needs                         1,258,186           1,225,690            978,024                                       247,666
      Occupational Education                                             128,841             128,841            128,841
      Teaching - Special School                                          105,454             105,454            105,454
      Instructional Media                                                439,305             444,581            435,571                  420                    8,590
      Pupil Services                                                     711 617             716 588            669856                   628                   46 104
          Total Instruction                                            7 555 638           7 541 553          7,170 876                1 472                  369,205

   Pupil Transportation                                                1,060,328          1,060,329             970,834               13,313                   76,182
   Community Services                                                      2,850              2,850               2,422                                           428
   Employee Benefits                                                   3,844,464          3,844,466           3,537,700                                       306,766
   Debt Service - Principal                                            1,650,000          1,685,000           1,685,000
   Debt Service - Interest                                               663310             628 310             598 832                                        29 478
          Total Expenditures                                          16,865,033         16,865,033          15,818,524              147,360                  899,149

Other Financing Uses
   Transfers to Other Funds                                               70 000              70 000             20 000                                          50000
          Total Expenditures and Other Financing Uses           $     1�2�� QJJ $        i�2J2 Q33     I     15 838 524   �          1413f.1Q �               2�2 l:!2

Net Change in Fund Balances                                                                                     759,344

Fund Balances - Beginning of Year                                                                             2 083 015

Fund Balances - End of Year                                                                            $      2 842 352


Notes to Required Supplementary Infonnation:


      The School District administration prepares a proposed budget for approval by the Board of Education for the General Fund,
       the only fund with a legally adopted budget.


      The budget is adopted annually on a basis consistent with GAAP. Appropriations authorized for the year are increased by the
      amount of encumbrances carried forward from the prior year.




                                                                                    39
                        FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                    SCHEDULE OF CERTAIN REVENUES AND EXPENDITURES
                                   COMPARED TO ST-3 DATA
                                  For the Year Ended June 30, 2010




                                                                                         Audited
                                                     Code            ST-3 Amount         Amount

Revenues
  Real Property Taxes                             A -1001       $         5,974,560 $      5,974,560
  State Aid'                                      AT-3999       $         8,009,909 $      8,009,910
  Federal Aid                                     AT-4999       $           696,728 $        696,728
  Total Revenues                                  AT-5999       $       1 6,597,868 $     16,597,868


Expeuditures
  General Support                                 AT-1999       $         1,852,860 $      1 ,852,860
  Pupil Transportation                            AT-5599       $            970,834 $        970,834
  Debt Service - Principal                       AT-9798.6      $         1 ,685,000 $     1,685,000
  Debt Service - luterest                        AT-9798.7      $            598,832 $        598,832
  Total Expenditures'                             AT-9999       $       1 5,838,526 $     15,838,524

  , Differences due to Rounding




                                                40
                           FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                      INVESTMENT IN CAPITAL ASSETS, NET OF RELATED DEBT
                                        For the Year Ended June 30, 2010




Capital Assets, Net                                                        $   22,341.551


Add:
   Capital Fund Unspent Bond Proceeds                                               6,669
                                                                                    6,669

Deduct:
   Short-Term Portion of Bonds Payable                                          1,734,250
   Serial Bonds Payable                                                        12,760,500
                                                                               14,494,750


lnvestment in Capital Assets, Net of Related Debt                          $   1 853 11Q




                                                      41
                                        FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                       SCHEDULES OF FUNDING PROGRESS OF OTHER-EMPLOYMENT BENEFITS
                                                   For the Year Ended June 30, 2010




                                        Actuarial
    Fiscal          Actuarial            Accrued                  Unfunded                                             UAAL as
    Year            Value of        Liability�Projected       Actuarial Accrued                                           % of
   Ending            Assets            Unit Credit            Liabih� (UAAL)      Funded Ratio   Covered Pal'!:oll   Covered Pa�ll
                       Ca)                 (b)                     (b)-Ca)           Ca)/(b)            Ce)           [(b)-Ca)l/Ce)

June 30, 2009   $               $           40,263,188    $          40,263,188       0%         $      6,079,728      558.12%
June 30, 2010   $               $           36,936,634    $          36,936,634       0%                6,618,000      662.25%




                                                                    42
                                                DArcangelo&Co                          LLP
                                                Certified Public Acccuntants & Consultants



                                          200   E. Garden St.,P.O. Box 4300, Rome, NY 13442-4300
                                                       315-336-9220 Fax: 315-336-0836



 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial
                       Statements Performed in Accordance With Government Auditing Standards



Board of Education
  Fabius Pompey Central School District


We have audited the financial statements of the governmental actlVlhes, each major fund, and the aggregate remainmg fund
information of Fabius Pompey Central School District, as of and for the year ended June 30, 20 I 0, and have issued our report thereon
dated September 15, 2010_ We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Fabius Pompey Central School District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of Fabius Pompey Central School District's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of Fabius Pompey Central School District's
internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the
nonnal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material
weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over f mancial reporting was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies,
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that
we consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Fabius Pompey Central School District's financial statements are free of
material misstatement, we perfOlmed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards_

We noted certain matters that we reported to management of the Fabius Pompey Central School District, in a separate letter dated
September 1 5 , 2010.

This report is intended solely for the information and use of the Board of Education, management, New York State Education
Department, and the New York State Comptroller's Office, and Federal and other awarding agencies and is not intended to be and
should not be used by anyone other than these specified parties.




September 15, 20 1 0

Rome, New York
                                                  Mid-Hudson · Utica/Rome ' Westchester

                                                                     43
                                                 DArcangelo&Co                              LLP
                                                 Certified Public Accountants & Consultants



                                           200   E. Garden St.,P.O. Box 4300, Rome, NY 134424300
                                                        315·336·9220 Fax: 315·336-0836




 Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in
                                      Accordance With OMB Circular A-133




Board of Education
  Fabius Pompey Central School District


Compliance

We have audited the compliance of Fabius Pompey Central School District with the types of compliance requirements described in
the OMB Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June
30. 2010. Fabius Pompey Central School District's major Federal programs are identified in the summary of auditor's results section
of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts,
and grants applicable to each of its major Federal programs is the responsibility of Fabius Pompey Central School District's
management. OUf responsibility is to express an opinion on Fabius Pompey Central School District's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and OMB Circular A-133, Audits of States. Local Governments. and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types
of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An
audit includes examining, on a test basis, evidence about Fabius Pompey Central School District's compliance with those
requirements and perfonning such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Fabius Pompey Central School
District's compliance with those requirements.

In our opinion, Fabius Pompey Central School District complied, in all material respects, with the requirements referred to above that
are applicable to each of its major Federal programs for the year ended June 30, 2010,

Internal Control Over Compliance

Management of the Fabius Pompey Central School District, is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and
performing our audit, we considered Fabius Pompey Central School District's internal control over compliance with the requirements
that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose
of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with OMB A-B3,
but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of Fabius Pompey Central School District's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented,
or detected and corrected, on a timely basis.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or
material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
                                                   Mid·Hudson     •   Utica/Rome ' Westchester

                                                                           44
                                                DArcangelo&Co,LLP
                                                C£l'tificd Public AccounlanLs & Consultants



This report is intended solely for the information and use of the Board of Education, management, New York State Education
Department, and the New York State Comptroller'S Office and Federal and other awarding agencies and is not intended to be and
should not be used by anyone other than these specified parties,

      O'�
September 15, 2010

Rome, New York




                                                                   45
                                    FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                                 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                            For the Year Ended June 30, 2010



                                                                                                Federal
                                                                                                CFDA               Current Year
      Federal GrantorlPass-Through Grantor/Program Title                                        Number             Expenditnres

U.S. Department of Agricultnre
(Passed Through the State Education Department of the State
   of New York)

School Breakfast Program                                                                          10.553       $          20,558
National School Lunch Program                                                                     10.555                  83.150
  Cash Assistance Subtotal                                                                                               103,708
National School Lunch Program (Noncash)                                                           10.555                  19.260

Total U.S. Department of Agricultnre                                                                                     122,968

U.S. Department of Education
(Passed Through the State Education Department of the State
   o f New York)

Title I Grants to Local Educational Agencies                                                      84.010                  92,747
Special Education - Grants to States, (IDEA, Part B)                                              84.027                 138,960
Special Education - Preschool Grants, (IDEA Preschool)                                            84. 173                  2,072
Safe and Drug-Free Schools and Communities, Title IV                                              84.186                   2,893
State Grants for Innovative Programs                                                              84.298                   2,719
Educational Technology State Grants, (Title lID)                                                  84.318                   1,632
Title I, Recovery Act                                                                             84.389                  60,261
Special Education-Grants to States (IDEA Part B), Recovery Act                                    84.391                  95,099
Special Education-Preschool Grants (IDEA Preschool), Recovery Act                                 84.392                   4,387
State Fiscal Stabilization Fund (SFSF) Education State Grants, Recovery Act                       84.394                 696,728
Improving Teacher Quality State Grants, (Title IIA)                                               84.367                  22,887

Total U.S. Department of Education                                                                                     1,120,295

Total Federal Financial Assistance                                                                             $       1 243,263




                    See Notes to Schedule ofExpenditnres of Federal Awards and Independent Auditor's Report.

                                                               46
                                 FABIUS POMPEY CENTRAL SCHOOL DISTRICT
                          NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                         For the Year Ended Jnne 30, 2010



1.   SIGNIFICANT ACCOUNTING POLICIES

     Organization

     The accompanying Schedule of Expenditures of Federal Awards represents all Federal awards administered by the Fabius
     Pompey Central School District. The School District's organization is defined in Note I to the School District's basic financial
     statements.

            f
     Basis o Accounting

     The expenditures in the accompanying schedule are presented on an accrual basis of accounting. The information in this
     schedule is presented in accordance with the requirements of OMB Circular A-l33, Audits of States, Local Governments. and
     Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in
     the preparation of, the basic fmancial statements

     Food Donation

     Non-monetary assistance is reported in the schedule at fair market value of the food commodities received. At June 30, 20 I 0,
     the School District had food commodities totaling $785 in inventory.

     Cluster Programs

     The following programs are identified by "OMB Circular A-133 Compliance Supplement" to be part of a cluster of programs:

     U.S. Department of Agriculture
     Nutrition Cluster
        CFDA #1 0.553     School Breakfast Program
        CFDA # 10.555     National School Lunch Program

     U.S. Department of Education
     Special Education Cluster
        CFDA #84.027       Special Education - Grants to States (IDEA, Part B)
        CFDA #84. 173       Special Education - Preschool Grants (IDEA Preschool)
        CFDA #84.391       Special Education - Grants to States (IDEA, Part B), Recovery Act
        CFDA #84.392       Special Education - Preschool Grants (IDEA, Prescbool), Recovery Act

     Title I Cluster
         CFDA #84.010       Title I - Grants to Local Educational Agencies
         CFDA #84.389       Title I - Recovery Act




                                                                47
                                                   DArcangelo&Co.,LLP
                                                   Certified Public Accountants & Consultants




                                     FABIUS POMPEY CENTRAL SCHOOL DISTRICT
           SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL COMPLIANCE REQUIREMENTS
                                                For the Year Ended June 30, 2010




         f
Summary o Auditor's Results

 (d) (J) (i)       Type of Financial Statement Opinion                                          Unqualified


 (d)(J) (ii)       Were there any material control weakness conditions                          No
                   reported at the [mancial statement level (GAGAS)?


 (d) (J) (ii)      Were there any other significant deficiencies reported at the                No
                   financial statement level (GAGAS)?


 (d) (J) (iii)     Was there any reported material noncompliance at the                         No
                   financial statement level (GAGAS)?


 (d)(J) (iv)      Were there any material internal control weakness conditions                  No
                  reported for major Federal programs?


 (d) (J) (iv)     Were there any other significant deficiencies reported for                    No
                  major Federal programs?


 (d) (J) (v)      Type of Major Programs' Compliance Opinion                                    Unqualified


 (d (J) (vi)
   )              Are there any reportable findings under § . 5 1 O?                            No


 (d) (J) (vii)    Major Programs (list):                                                        U.S. Department of Education
                                                                                                     CFDA    #84.394 State Fiscal Stabilization
                                                                                                            Fund    Education  State   Grants,
                                                                                                            Recovery Act


 (d (J) (v iii)
   )              Dollar Threshold: Type A\B Programs                                           Type A: > $ 300,000
                                                                                                Type B: all others

 (d) (J)(ix)      Low Risk Auditee?                                                             No




Findings - Financial Statement Audit

None noted.


Findings and Questioned Costs - Major Federal Award Programs

None noted.




                                                                      48
                                 DArcangelo&Co..LLP
                                  Cerli['ied Public Accountants & Consultants



                           FABIUS POMPEY CENTRAL SCHOOL DISTRICT
 STATUS OF PRIOR YEAR'S FINDINGS AND QUESTIONED COSTS - FEDERAL COMPLIANCE REQUIREMENTS
                                  For the Year Ended June 30, 2010



None noted.




                                                      49
                                                 DArcangelo&Co                            LLP
                                                 Certified Public Accountants & Consultants



                                           200   E. GardenSt., P.O. Box 4300, Rome, NY 134424300
                                                       315·336·9220 Fax: 315·336·0836




                                                      Independent Auditor's Report



Board of Education
  Fabius-Pompey Central School District

We have audited the accompanying statement of assets, liabilities, and fund equity - cash basis of the Extraclassroom Activity Fund of
Fabius-Pompey Central School District as of June 30, 2010, and the related statement of revenues, expenditures, and changes in f  und
equity - cash basis for the year then ended. These financial statements are the responsibility of the School District's management.
OUf responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Insufficient accounting controls are exercised over cash receipts at the point of collection to the time of submission to the central
treasurer. Accordingly, it was impracticable to extend our audit of such receipts beyond the amounts recorded.

As explained in Note 1, it is the School District's policy to prepare the financial statements of the Extraclassroom Activity Fund on the
basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than accounting principles generally
accepted in the United States of America.

In our opinion, except for the effects of any adjustroents which might have resulted had the cash collections referred to above been
susceptible to satisfactory audit tests, the financial statements referred to above present fairly, in all material respects, the assets,
liabilities, and fund equity - cash basis of the Extraclassroom Activity Fund of Fabius-Pompey Central School District at June 30,
2010, and its revenues, expenditures, and changes in fund equity - cash basis for the year then ended on the basis of accounting
described in Note 1.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole, The supplemental
information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements referred to above and,
in our opinion, except for the effects of any adjustments that might have been detennined to be necessary had we been able to perfonn
adequate auditing procedures in regard to the receipts referred to in the third preceding paragraph is fairly stated in all material
respects in relation to the basic financial statements taken as a whole, on the basis of accounting described in Note 1.




September 15, 2010

Rome, New York




                                                  Mid·Hudson   •   Utica/Rome ' Westchester

                                                                        50
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                             EXTRACLASSROOM ACTIVITY FUND
                       STATEMENT OF ASSETS, LIABILITIES, AND FUND EQIDTY - CASH BASIS
                                                            June 30, 2010




Assets
    Cash                                                                                                   $   61,009


Total Assets                                                                                               $   6 1 009



Liabilities and Fund Equity

Fund Equity
   Unreserved and Undesignated
      Total Fund Equity                                                                                    $   61,009

Total Liabilities and Fund Equity                                                                          $   6 1 009




                              The Accompanying Notes are an Integral Part of These Financial Statements.
                                                                51
                                       FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                             EXTRACLASSROOM ACTIVITY FUND
            STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND EQillTY - CASH BASIS
                                                 For the Year Ended Jnne 30, 2010




Revenues
           or                           ,
   Charges f Services, Sale o f Property and Miscellaneous                                                  $   212,787
        Total Revenues                                                                                          212,787

Expenditures
    Instruction - Club Activities                                                                               217,291
        Total Expenditures                                                                                      217,291

(Deficit) Revenues Over Expenditures                                                                             (4,504)

Fund Equity, Beginning o f Year                                                                                  65,513

Fund Equity, End o f Year                                                                                   $   61 QQ2




                             The Accompanying Notes are an Integral Part o f These Finan cial Statements.
                                                               52
                                         -
                                   FABIUS POMPEY CENTRAL SCHOOL DISTRICT

                                      EXTRACLASSROOM ACTIVITY FUND

           SUPPLEMENTAL SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS-CASH BASIS

                                         For the Year Ended June 30, 2010




                                                       Balance at            Cash                Cash               Balance at
                      Activities                        07/01109            Receipts         Disbursements           06/30/10

Baseball                                           $               12   $      12,108    $           12,070     $           50
Basketball                                                       401                                                       401
Bookstore                                                      2,441           13,453                13,898               1,996
Boys Soccer                                                      311            4,463                   4,130              644
Cheerleading                                                     411            3,528                   3,064              875
Chorus-6th grade                                                 594            2,304                   1,605             1,293
Chorus-7, 8th grade                                              256            3,598                   3,190              664
Chorus-HS                                                      1,351            7,534                   7,201             1,684
Class of 2009                                                   (527)             767                    240
Class of20 1 0 Sr. Trip Club                                                  2 1 ,225              2 1 ,225
Class of 20 I 0                                               6,039           16,720                22,228                 531
Class of 20 I I                                               2,710             6,236                   5,369            3,577
Class of2012                                                  3,960             2,984                   2,057            4,887
Class of 20 1 3                                                1,601            4,514                   3,256            2,859
Class of 20 1 4                                                1,380            3,663                   1,593            3,450
Class 0[2015                                                    460               271                                      731
Class of 20 1 6                                                                 1,181                                    1,181
Cooking Club                                                    217               399                    35 1              265
Cross Country                                                   485               470                    343               612
Drama Club                                                    5,474               371                   1,247            4,598
Fiber Arts                                                                          85                     6                79
F-P AP Exam                                                         5           7,654                   7,654                   5
F-P Exercise Club                                                                 236                    122               1 14
F-P Musical                                                   9,346            4,942                    6,252            8,036
F-P Tickets                                                       85                                                        85
Future Teachers                                                   45            1,088                    969               164
Girls Sports                                                  2,789                                     1,069            1,720
Interest                                                      2,373              367                    1,395            1,345
Literary Magazine                                                                 661                    547               1 14
MS Band                                                       1,355            5,216                 5,369               1,202
MS Student Government                                         3,814               607                   1,497            2,924
Music Club                                                    3,116           45,040                43,949               4,207
NHS                                                             346            2,497                 2,308                 535
Prom Acct                                                                     10,722                10,692                  30
Scholarship Fund                                                                 250                     250
Softball                                                        404                                                        404
Student Council                                               1,415              950                    1,146            1,219
Tech Club                                                       554                                       35               519
Teen Institute                                                1,019             1,541                   1,558            1,002
Volleyball                                                        58           2,673                 2,433                 298
Volunteer Day                                                    100             344                     422                22
Woodford Award                                                2,550                                      251             2,299
Yearbook                                                      7,362           2 1 ,725              26,036               3,051
Yorker Club                                                   1,201              400                     264             1,337
Total High School                                 $          65 5 1 3   $    2 1 2 787   $         2 1 7 291    $       61 009


                                                        53
                                      FABIUS-POMPEY CENTRAL SCHOOL DISTRICT
                                          EXTRACLASSROOM ACTIVITY FUND
                                          NOTES TO FINANCIAL STATEMENTS
                                             For the Year Ended June 30, 2010




1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Operations

     The transactions of the Extraclassroom Activity Funds are not considered part of the reporting entity of Fabius-Pompey Central
     School District. The related year-end cash balances are shown as part of the Trust and Agency Funds with an offsetting liability.

     The Board of Education makes rules and regulations for the conduct, operation, and maintenance of the Extraclassroom Activity
     Fund and for the safeguarding, accounting, and auditing of all monies received and derived there from.

            f
     Basis o Accounting

     The books and records of the Extraclassroom Activity Funds of Fabius-Pompey Central School District are maintained on the
     cash basis of accounting, which is another comprehensive basis of accounting. Under this basis of accounting, revenues are
     recognized when cash is received, and expenditures are recognized when cash is disbursed.




                                                                 54
                                                                                                                      APPENDIX - D
                                      FORM OF OPINION OF BOND COUNSEL
                                                          February 25, 2011

Fabius-Pompey Central School District
1211 Mill Street
Fabius, New York 13063

       Re:    Fabius-Pompey Central School District, Onondaga, Cortland and Madison Counties, New York
              $1,700,000 Bond Anticipation Notes, 2011

Ladies and Gentlemen:

     We have examined a record of proceedings relating to the issuance of $1,700,000 Bond Anticipation Notes, 2011 (the
"Notes"), of the Fabius-Pompey Central School District, Counties of Onondaga, Cortland and Madison, State of New York (the
"District"). The Notes are dated February 25, 2011 and are being issued pursuant to the Constitution and laws of the State of New
York, including the Education Law and Local Finance Law, a resolution of the District in respect of the Bond Anticipation Notes,
2011, and a Certificate of Determination dated on or before February 25, 2011 of the President of the Board of Education relative
to the form and terms of the Notes.

    In our opinion, the Notes are valid and legally binding general obligations of the District for which the District has validly
pledged its faith and credit and, unless paid from other sources, all taxable real property within the District is subject to levy of ad
valorem real estate taxes to pay the Notes and interest thereon without limitation of rate or amount. The enforceability of rights or
remedies with respect to the Notes may be limited by bankruptcy, insolvency, or other laws affecting creditors' rights or remedies
heretofore or hereinafter enacted.

     The Internal Revenue Code of 1986, as amended (the "Code"), establishes certain requirements that must be met subsequent
to the issuance and delivery of the Notes in order that interest on the Notes be and remain excluded from gross income under
Section 103 of the Code. The President of the Board of Education of the District, in executing the Arbitrage and Use of Proceeds
Certificate, has certified to the effect that the District will comply with the provisions and procedures set forth therein and that it
will do and perform all acts and things necessary or desirable to assure that interest on the Notes is excluded from gross income
under Section 103 of the Code. We have examined such Arbitrage and Use of Proceeds Certificate of the District delivered
concurrently with the delivery of the Notes, and, in our opinion, such certificate contains provisions and procedures under which
such requirements can be met.

     In our opinion, interest on the Notes is excluded from gross income for federal income tax purposes under Section 103 of the
Code, and is excluded from adjusted gross income for purposes of New York State and New York City personal income taxes.
Interest on the Notes is not a specific preference item for purposes of the federal individual or corporate alternative minimum
taxes; however, such interest is included in adjusted current earnings in calculating corporate alternative minimum taxable income.
We express no opinion regarding other tax consequences related to the ownership or disposition of, or the accrual or receipt of
interest on, the Notes.

     Certain agreements, requirements and procedures contained or referred to in the Arbitrage and Use of Proceeds Certificate
and other relevant documents may be changed and certain actions may be taken or omitted under the circumstances and subject to
the terms and conditions set forth in such documents. No opinion is expressed herein as to any Note or the interest thereon if any
such change occurs or action is taken or omitted upon the advice or approval of counsel other than ourselves.

     The opinions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover
certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken or omitted or events
occurring after the date hereof. We have not undertaken to determine or to inform any person, whether any such actions are taken
or omitted or events do occur or any other matters come to our attention after the date hereof. Our engagement with respect to the
Notes has concluded with their issuance, and we disclaim any obligation to update this opinion. We have assumed, without
undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents. Furthermore, we
have assumed compliance with all covenants and agreements contained in the Arbitrage and Use of Proceeds Certificate, including
without limitation covenants and agreements compliance with which is necessary to assure that future actions, omissions or events
will not cause interest on the Notes to be included in gross income for federal income tax purposes or adjusted gross income for
purposes of personal income taxes imposed by the State of New York and the City of New York. We call attention to the fact that
the rights and obligations under the Notes and the Arbitrage and Use of Proceeds Certificate and their enforceability may be
subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium or other laws relating to or
affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and
to the limitations on legal remedies against New York municipal corporations such as the School District. We express no opinion
with respect to any indemnification, contribution, penalty, choice of law, choice of forum, or waiver provisions contained in the
foregoing documents.

     The scope of our engagement in relation to the issuance of the Notes has extended solely to the examination of the facts and
law incident to rendering the opinions expressed herein. The opinions expressed herein are not intended and should not be
construed to express or imply any conclusion that the amount of real property subject to taxation within the boundaries of the
School District, together with other legally available sources of revenue, if any, will be sufficient to enable the School District to
pay the principal of or interest on the Notes as the same respectively become due and payable. Reference should be made to the
Official Statement for factual information which, in the judgment of the School District would materially affect the ability of the
School District to pay such principal and interest. We have not verified the accuracy, completeness or fairness of the factual
information contained in the Official Statement and, accordingly, no opinion is expressed by us as to whether the School District,
in connection with the sale of the Notes, has made any untrue statement of a material fact, or omitted to state a material fact
necessary in order to make any statements made, in light of the circumstances under which they were made, not misleading.

    We have examined the first executed Note of each issue and, in our opinion, the form of said Notes and their execution are
regular and proper.

                                                                         Very truly yours,
                                                                         Trespasz & Marquardt, LLP

				
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