EXHIBIT B-1
MIDDLETOWN TOWNSHIP BOARD OF EDUCATION
COMBINED BALANCE SHEET[1]
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
(With Comparative Totals for June 30, 2002)
TOTALS
SPECIAL CAPITAL DEBT (MEMORANDUM ONLY)
GENERAL REVENUE PROJECTS SERVICE PERMANENT JUNE 30, JUNE 30,
FUND FUND FUND FUND FUND 2003 2002
Assets:
  Cash and Cash Equivalents $12,787,521 975,742 14,365,354 639,146 28,767,763 33,188,329
  Receivables, Net 83,652 38,395 122,047 69,419
  Due From Other Funds 632,252 632,252 785,717
  Receivables From Other Governments 273,386 852,763 1,126,149 2,015,784
  Other Receivables 10,531 10,531 208,527
  Restricted Cash & Cash Equivalents 204,136         204,136 200,001
   
Total assets 13,359,226 1,866,900 14,365,354 632,252 639,146 30,862,878 36,467,777
Liabilities and Fund Balances:
   Liabilities:
      Cash Overdraft 599,328 599,328 767,101
      Accounts Payable 2,026,917 276,545 796,185 29,006 3,128,653 2,856,956
      Intergovernmental - Accounts Payable 38,395 38,395 69,419
      Other Liabilities 853,241 6,240 859,481 3,632,265
      Interfund Payable 155,000 477,252 632,252 762,142
      Deferred Revenue 1,545,720 1,545,720 1,211,659
             
    Total Liabilities 3,035,158 1,866,900 1,273,437 628,334   6,803,829 9,299,542
   Fund Balances:
     Reserved for:
         Encumbrances 2,779,636 12,424,883 15,204,519 9,434,394
         Legally Restricted - Designated for
            Subsequent Year's Expenditures 1,500,000 1,500,000 775,000
         Capital Reserve Account 204,136 204,136 200,001
         I.B.N.R. 1,473,200 1,473,200 1,410,116
      Unreserved - Reported in:
          General Fund 4,367,096 4,367,096 4,989,388
          Debt Service Fund 3,918 3,918 52,778
          Capital Projects Fund 667,034 667,034 9,657,182
          Permanent Fund 639,146 639,146 649,376
             
    Total Fund Balances 10,324,068   13,091,917 3,918 639,146 24,059,049 27,168,235
   
Total Liabilities & Fund Balances $13,359,226 1,866,900 14,365,354 632,252 639,146 30,862,878 36,467,777
Amounts reported for governmental activities in the statement of
 net assets (A-1) are different because:
   Capital assets used in governmental activities are not financial
     resources and therefore are not reported in the funds.  The cost
     of the assets is $127,317,446, and the accumulated depreciation
      is $30,006,212. $97,311,235
    Accrued interest payable is not recorded in the fund financial
     due to the fact that payable is not due in the current period. (3,267,801)
   Long-term liabilities, including bonds payable, are not due and
     payable in the current period and therefore are not reported as
     liabilities in the funds (see Illustrative Note 5) (99,308,017)
   Net assets of Governmental Activities $18,794,466
See Accompanying Notes to Financial Statements
#REF! net assets per A-2
#REF! DIFFERENCE

[1]
Patricia Scott:
GASB 34 requires a traditional balance sheet for governmental funds -p.78,83