chinle unified school district no. 24
Transcription
chinle unified school district no. 24
CHINLE UNIFIED SCHOOL DISTRICT NO. 24 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2012 PO Box 587 ♦ Chinle, Arizona 86503 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 CHINLE, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Issued by: Business and Finance Department CHINLE UNIFIED SCHOOL DISTRICT NO. 24 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal Page i ASBO Certificate of Excellence vi GFOA Certificate of Achievement vii Organizational Chart viii List of Principal Officials ix FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Assets 18 Statement of Activities 19 Fund Financial Statements: Balance Sheet - Governmental Funds 22 Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Assets 25 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 28 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 TABLE OF CONTENTS (Cont’d) FINANCIAL SECTION (Cont’d) Page BASIC FINANCIAL STATEMENTS (Concl’d) Statement of Fiduciary Assets and Liabilities Notes to Financial Statements 29 30 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL (Required Supplementary Information) General Fund 48 Title I Grants Fund 49 Note to Required Supplementary Information 50 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds: Combining Balance Sheet - All Non-Major Governmental Funds By Fund Type 54 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Non-Major Governmental Funds - By Fund Type 55 Special Revenue Funds: Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 66 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 72 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 TABLE OF CONTENTS (Cont’d) FINANCIAL SECTION (Concl’d) Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl’d) Capital Projects Funds: Combining Balance Sheet 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 100 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 102 Agency Funds: Combining Statement of Changes in Fiduciary Assets and Liabilities 110 STATISTICAL SECTION Financial Trends: Net Assets by Component 112 Expenses, Program Revenues, and Net (Expense)/Revenue 113 General Revenues and Total Changes in Net Assets 115 Fund Balances – Governmental Funds 117 Governmental Funds Revenues 119 Governmental Funds Expenditures and Debt Service Ratio 121 Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 123 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 124 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 TABLE OF CONTENTS (Concl’d) STATISTICAL SECTION (Concl’d) Page Direct and Overlapping Property Tax Rates 125 Principal Property Taxpayers 126 Property Tax Levies and Collections 127 Debt Capacity: Outstanding Debt by Type 128 Direct and Overlapping Governmental Activities Debt 129 Legal Debt Margin Information 130 Demographic and Economic Information: County-Wide Demographic and Economic Statistics 131 Principal Employers 132 Operating Information: Full-Time Equivalent District Employees by Type 133 Operating Statistics 135 Capital Assets Information 136 (This page intentionally left blank) INTRODUCTORY SECTION (This page intentionally left blank) Chinle Unified School District No. 24 December 7, 2012 Citizens and Governing Board Chinle Unified School District No. 24 P.O. Box 587 Chinle, Arizona 86503 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Chinle Unified School District No. 24 (District) for the fiscal year ended June 30, 2012. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the District’s financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report. i The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of eleven public school districts located in Apache County, Arizona. It provides a program of public education from pre-kindergarten through grade twelve, with an estimated average daily membership of 3,530. It is 60 miles south of Utah and 30 miles west of New Mexico in Arizona’s Four Corners region. It is located in the high desert in 100-mile long Beautiful Valley paralleled by U.S. Highway 191. The District has seven schools and 3,530 students. It is the largest public school district on the Navajo Nation, both in geographic size and in the number of students enrolled. The District boundary encompasses 4,200 square miles. Ninety-eight percent of the students are Navajo. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects monies for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purpose, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore and athletic functions. ii Our primary goal is to become a high-performing district that consistently provides what is known as a “world-class education” for each individual student. Moving forward we have partnered with ASU by participating in the Teacher Advancement Partnership (TAP) grant. Financial resources will be targeted towards the implementation of this program by providing matching funds which escalate in cost over a four-year period. We are committed to enhancing student performance by agreeing to sustain this program after the grant period. The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund, and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue, therefore a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The economy of the District and its principal communities of Chinle, Many Farms and Tsaile are derived from public services, government and education. A small commercial influence serving the needs of these communities and the tourist element of the Canyon de Chelly National Monument are also present. The community is experiencing a slight increase in population primarily attributed to the lack of employment opportunities outside the community. In the past, high unemployment rates have forced individuals to seek employment off the Navajo Reservation. Families are returning home because of the downturn in the economy nationwide. Despite the recent population increase overall enrollment numbers are down as compared to 1999. The District has seen enrollment numbers as high as 4,300 in fiscal year 1999 declining to currently 3,530. This represents a 19% reduction in the District’s student count. Long-term Financial Planning. Decreases with enrollment numbers are offset by inflation funding increases providing stability with revenues. The recent economic downturn has required the District to reduce staffing in order to maintain services and programs offered to students. Funding cuts in State revenue has required the District to expend more Impact Aid dollars, which are payment in lieu of taxes because of a Federal presence. In the District’s case the land is held in Trust by the Federal Government. These students reside on Indian lands. The Maintenance and Operation budget has decreased from $21.7 million to $20.5 million. This reduction is a direct result of the loss of students from the previous year. Reductions to the Maintenance and Operation budget will be absorbed by the Impact Aid Fund. Increased Federal Impact Aid revenues through inflation or growth factors have allowed the District to see a slight increase. iii The District has experienced a decline in enrollment. Despite the decline in enrollment and State revenues, the District continues to maintain basic services. The District is paid one-half of the national average per pupil expenditure as Impact Aid revenues. This amount is adjusted annually and the trend has been positive. Chinle Unified School District’s strong financial position will allow it to operate despite the loss in State revenue and budget capacity. The loss in budget capacity is shifted to the Impact Aid Fund. A District policy statement adopted by the Governing Board is to improve student services and to enhance instruction while improving student achievement. This is evidenced by the continued investment in classroom construction and renovation. Technology continues to be updated by purchasing equipment and software to supplement the curriculum and instruction. Research has shown that student performance is increased with improved learning environments. This is supported by continued investment in capital. Our continued investment in construction projects has resulted in the oldest buildings being constructed in 1989. This continued trend will include renovation of these spaces. They include the Chinle High School and Chinle Elementary School. Completion of current construction and renovation projects will allow these sites to be moved up on the priority list. The Five Year Capital Facility plan will be revisited to identify construction and capital needs to provide a road map for future projects and establish budget needs. The District continues to strive for more dollars in the classroom. Budgets are developed with an emphasis of expenditures being directed towards instruction. This practice sustains improved student services and instruction. This fiscal policy is evidenced in the report as expenditures with instruction have increased over the prior year. With prudent fiscal management the District can maintain its excellent financial position as seen in the financial statements contained in this report. The District continues to maintain healthy fund balances in the Maintenance and Operation Fund and Unrestricted Capital Outlay Fund. The District is fortunate to maintain its pay as you go practice, which has resulted in no debt service. This positive trend will continue in future years. AWARDS AND ACKNOWLEDGMENTS Awards. The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2011. In addition, the Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2011. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year 2011-12 certificates. iv Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the business and finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted, Dr. Jesus de la Garza Superintendent Quincy Natay Assistant Superintendent for Business and Finance v This Certificate of Excellence in Financial Reporting is presented to CHINLE UNIFIED SCHOOL DISTRICT NO. 24 For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2011 Upon recommendation of the Association’s Panel of Review which has judged that the Report substantially conforms to principles and standards of ASBO’s Certificate of Excellence Program President Executive Director vi vii viii CHINLE UNIFIED SCHOOL DISTRICT NO. 24 LIST OF PRINCIPAL OFFICIALS GOVERNING BOARD Wayne Claw President Virgil Brown, Jr. Clerk Rose W. Martinez Member Joyce W. Nez Member Paul Guy, Jr. Member ADMINISTRATIVE STAFF Dr. Jesus de la Garza, Superintendent Quincy Natay, Assistant Superintendent for Business and Finance Kerri Sepulveda, Assistant Business Manager ix (This page intentionally left blank) x FINANCIAL SECTION (This page intentionally left blank) 751 E. Pine Knoll Dr., Suite 1201 Flagstaff, Arizona 86001 Tel (928) 774-4201 Fax (928) 774-4268 INDEPENDENT AUDITORS’ REPORT Governing Board Chinle Unified School District No. 24 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Chinle Unified School District No. 24 (District), as of and for the year ended June 30, 2012, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 the 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 opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Chinle Unified School District No. 24 as of June 30, 2012, and the respective changes in financial position and cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2012, on our consideration of the Chinle Unified School District No. 24’s internal control over financial 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 provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. TUCSON • PHOENIX • FLAGSTAFF • ALBUQUERQUE www.heinfeldmeech.com Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 13 and budgetary comparison information on pages 48 through 50 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s financial statements as a whole. The accompanying supplementary information such as the introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 7, 2012 Page 2 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) Page 3 (This page intentionally left blank) Page 4 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 As management of the Chinle Unified School District No. 24 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS The District’s total net assets of governmental activities increased $3.5 million which represents a 2 percent increase from the prior fiscal year as a result of increases in capital grants and contributions and charges for services and decreases in expenses for instruction and support services. General revenues accounted for $42.4 million in revenue, or 76 percent of all current fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $13.2 million, or 24 percent of total current fiscal year revenues. The District had approximately $52.2 million in expenses related to governmental activities, a decrease of 2 percent from the prior fiscal year. Among major funds, the General Fund had $42.2 million in current fiscal year revenues, which primarily consisted of state and federal aid and $47.2 million in expenditures. The General Fund’s fund balance decrease from $34.9 million at the prior fiscal year end to $30.8 million at the end of the current fiscal year was primarily due to an increase in capital outlay for classroom renovations and the construction of new employee housing. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements. Page 5 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Cont’d) 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. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the District’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). The government-wide financial statements outline functions of the District that are principally supported by intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, and operation of non-instructional services. Fund financial statements. 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 uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Page 6 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Concl’d) Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund and Title I Grants Fund, both of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, fiduciary funds do not have a measurement focus. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund and Title I Grants Fund as required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $209.5 million at the current fiscal year end. The largest portion of the District’s net assets reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, vehicles, furniture and equipment and construction in progress), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. The District had no related debt. In addition, a portion of the District’s net assets are restricted by statute for special purposes and capital outlay investment. Page 7 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) The following table presents a summary of the District’s net assets for the fiscal years ended June 30, 2012 and June 30, 2011. Current and other assets Capital assets, net Total assets, net Current and other liabilities Long-term liabilities Total liabilities Net assets: Invested in capital assets Restricted Unrestricted Total net assets As of June 30, 2012 $ 41,060,578 172,807,243 213,867,821 As of June 30, 2011 (as restated) $ 47,976,312 163,523,186 211,499,498 3,562,092 763,940 4,326,032 4,624,789 819,237 5,444,026 172,807,243 6,733,173 30,001,373 $ 209,541,789 163,523,186 8,722,745 33,809,541 206,055,472 $ At the end of the current fiscal year the District reported positive balances in all three categories of net assets. The same situation held true for the prior fiscal year. The District’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following is a significant current year transaction that had an impact on the Statement of Net Assets. Page 8 The addition of $15.3 million in capital assets through the construction of new employee housing and a gymnasium, and the renovation of classrooms at Tsaile Elementary School. CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) Changes in net assets. The District’s total revenues for the current fiscal year were $55.7 million. The total cost of all programs and services was $52.2 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2012 and June 30, 2011. Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total revenues Fiscal Year Ended June 30, 2012 Fiscal Year Ended June 30, 2011 (as restated) $ $ Expenses: Instruction Support services – students and staff Support services – administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Total expenses Change in net assets Net assets, beginning, as restated Net assets, ending $ Page 9 2,026,601 9,564,176 1,615,753 1,344,864 12,949,827 380,041 234,068 1,033,028 20,100,262 21,066,029 55,639,917 555,253 740,321 20,014,552 22,812,014 58,796,872 25,762,502 6,977,301 4,616,883 7,396,311 5,025,258 2,375,345 52,153,600 3,486,317 206,055,472 209,541,789 26,528,313 8,087,710 4,616,439 7,161,299 4,547,360 2,376,988 53,318,109 5,478,763 200,576,709 206,055,472 $ CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) {Gr Expenses $30 Millions $25 $20 $15 $10 $5 $0 FY2011-12 FY2010-11 should be just like this one. } The following are significant current year transactions that have had an impact on the change in net assets. Operating grants and contributions decreased $3.4 million primarily due to a decrease in American Reinvestment and Recovery Act (ARRA) funding. Unrestricted federal aid decreased $1.7 million primarily due to reduced Impact Aid funding. Expenses decreased $1.2 million primarily due to a decrease in professional services purchased. The following table presents the cost of the District’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and District’s taxpayers by each of these functions. Page 10 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl’d) Year Ended June 30, 2012 Year Ended June 30, 2011 Total Net (Expense)/ Total Net (Expense)/ Expenses Revenue Expenses Revenue Instruction $ 25,762,502 $ (18,817,159) $ 26,528,313 $ (18,687,510) Support services – students and staff 6,977,301 (3,920,823) $8,087,710 (4,019,825) Support services – administration 4,616,883 (4,321,420) $4,616,439 (4,127,108) Operation and maintenance of plant services 7,396,311 (7,014,971) $7,161,299 (7,099,026) Student transportation services 5,025,258 (4,951,392) $4,547,360 (4,547,360) Operation of non-instructional services 2,375,345 78,695 $2,376,988 (162,548) $ 52,153,600 $ (38,947,070) $ 53,318,109 $ (38,643,377) Total The cost of all governmental activities this year was $52.2 million. Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $13.2 million. Net cost of governmental activities of $38.9 million was financed by general revenues, which are made up of primarily federal aid of $21.1 million and state aid of $20.1 million. FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $37.5 million, a decrease of $5.9 million due primarily to reductions in Impact Aid and American Reinvestment and Recovery Act (ARRA) funding. The General Fund comprises 82 percent of the total fund balance. Approximately $29.1 million or 95 percent of the General Fund’s fund balance constitutes unassigned fund balance. Page 11 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS (Concl’d) The General Fund is the principal operating fund of the District. The decrease in fund balance of $4.2 million to $30.8 million as of fiscal year end was a result of an increase in capital outlay for classroom renovations, a gymnasium and the construction of new employee housing. General Fund revenues decreased $763,868. General Fund expenditures increased $7.8 million. This was a result of increases in salaries and related benefits and capital outlay. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for changes in student growth. The difference between the original budget and the final amended budget was a $61,064 decrease, or less than one percent. Significant variances for the final amended budget and actual revenues resulted from the District not being required by the State of Arizona to prepare a revenue budget. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variance is summarized as follows. The favorable variance of $1.5 million in instruction was a result of lower than anticipated salaries, benefits, and purchased services. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $242.3 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of $15.1 million from the prior fiscal year, primarily due to the construction of new employee housing and a gymnasium, and the renovation of classrooms at Tsaile Elementary School. Total depreciation expense for the current fiscal year was $6.0 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2012 and June 30, 2011. Capital assets – non-depreciable Capital assets – depreciable, net Total Page 12 As of As of June 30, 2012 June 30, 2011 $ 9,830,091 $ 13,702,677 162,977,152 149,820,509 $ 172,807,243 $ 163,523,186 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl’d) The estimated cost to complete current construction projects is $12.8 million. Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At fiscal year end, the District had no long-term debt outstanding. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES Many factors were considered by the District’s administration during the process of developing the fiscal year 2012-13 budget. Among them: Fiscal year 2011-12 budget balance carry forward (estimated $778,751). District student population (estimated 3,483). Employee salaries (will be increased 2% estimated at $816,256). Also considered in the development of the budget is the local economy and inflation of the surrounding area. Budgeted expenditures in the General Fund decreased less than one percent to $20.4 million in fiscal year 2012-13. A reduction in state funding calculations is the primary reason for the decrease. Federal and state aid are expected to be the primary funding sources. No new programs were added to the 2012-13 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business and Finance Department, Chinle Unified School District No. 24, P. O. Box 587, Chinle, Arizona 86503-0587. Page 13 (This page intentionally left blank) Page 14 BASIC FINANCIAL STATEMENTS Page 15 (This page intentionally left blank) Page 16 GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 17 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 STATEMENT OF NET ASSETS JUNE 30, 2012 Governmental Activities ASSETS Current assets: Cash and investments Due from governmental entities Prepaid items Inventory Total current assets $ Noncurrent assets: Land improvements Buildings and improvements Vehicles, furniture and equipment Construction in progress Accumulated depreciation Total noncurrent assets Total assets 30,092,274 9,334,139 568,601 1,065,564 41,060,578 11,392,960 197,017,960 24,016,388 9,830,091 (69,450,156) 172,807,243 213,867,821 LIABILITIES Current liabilities: Accounts payable Construction contracts payable Compensated absences payable Unearned revenues Total current liabilities 1,580,942 1,787,914 500,000 193,236 4,062,092 Noncurrent liabilities: Non-current portion of long-term obligations Total noncurrent liabilities Total liabilities 263,940 263,940 4,326,032 NET ASSETS Invested in capital assets Restricted for: Federal and state projects Food service Other local initiatives Capital outlay Unrestricted Total net assets 172,807,243 $ 1,716,894 535,942 807,022 3,673,315 30,001,373 209,541,789 The notes to the basic financial statements are an integral part of this statement. Page 18 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Net (Expense) Revenue and Changes in Net Assets Program Revenues Functions/Programs Governmental activities: Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Total governmental activities Charges for Services Expenses $ $ 25,762,502 $ 6,977,301 4,616,883 1,104,771 $ 7,396,311 5,025,258 2,375,345 52,153,600 $ 381,340 Operating Grants and Contributions 540,490 2,026,601 $ Capital Grants and Contributions Governmental Activities 4,224,819 $ 3,056,478 295,463 1,615,753 $ (18,817,159) (3,920,823) (4,321,420) 73,866 1,913,550 9,564,176 $ (7,014,971) (4,951,392) 78,695 (38,947,070) 1,615,753 General revenues: Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues 234,068 1,033,028 20,100,262 21,066,029 42,433,387 Changes in net assets 3,486,317 Net assets, beginning of year, as restated Net assets, end of year The notes to the basic financial statements are an integral part of this statement. Page 19 206,055,472 $ 209,541,789 (This page intentionally left blank) Page 20 FUND FINANCIAL STATEMENTS Page 21 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2012 General ASSETS Cash and investments Due from governmental entities Due from other funds Prepaid items Inventory Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Deferred revenues Total liabilities $ $ $ Title I Grants 22,781,565 7,745,944 922,808 568,601 1,065,564 33,084,482 $ $ 646,648 1,672,521 $ $ 7,310,709 815,796 772,399 $ 8,126,505 136,684 $ 797,610 115,393 287,093 193,236 1,393,332 772,399 635,715 2,319,169 Fund balances: Nonspendable Restricted Unassigned Total fund balances 772,399 1,634,165 6,733,173 29,131,148 30,765,313 Total liabilities and fund balances $ 33,084,482 6,733,173 $ 772,399 The notes to the basic financial statements are an integral part of this statement. Page 22 Non-Major Governmental Funds $ 8,126,505 Total Governmental Funds $ $ $ 30,092,274 9,334,139 922,808 568,601 1,065,564 41,983,386 1,580,942 1,787,914 922,808 193,236 4,484,900 1,634,165 6,733,173 29,131,148 37,498,486 $ 41,983,386 Page 23 (This page intentionally left blank) Page 24 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Total governmental fund balances $ 37,498,486 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Governmental capital assets Less accumulated depreciation $ 242,257,399 (69,450,156) 172,807,243 Compensated absences are not due and payable in the current period and therefore are not reported in the funds. Net assets of governmental activities (763,940) $ The notes to the basic financial statements are an integral part of this statement. Page 25 209,541,789 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 General Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 2,121,830 19,024,581 21,066,029 42,212,440 Title I Grants $ Non-Major Governmental Funds $ 4,474,862 4,474,862 1,435,915 1,317,846 6,198,854 8,952,615 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures 15,643,141 2,824,324 3,828,503 7,206,522 3,749,181 35,000 13,940,205 47,226,876 2,402,880 1,526,574 175,505 96,131 4,280,247 3,186,394 1,529,056 149,222 11,212 13,876 2,267,633 3,393,851 10,551,244 Excess (deficiency) of revenues over expenditures (5,014,436) 194,615 (1,598,629) (194,615) (194,615) (113,866) (113,866) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): 79,157 308,481 308,481 Changes in fund balances (4,705,955) (1,712,495) Fund balances, beginning of year, as restated 34,905,855 8,445,668 Increase (decrease) in reserve for prepaid items Increase (decrease) in reserve for inventory 568,601 (3,188) Fund balances, end of year $ 30,765,313 $ The notes to the basic financial statements are an integral part of this statement. Page 26 $ 6,733,173 Total Governmental Funds $ 3,557,745 20,342,427 31,739,745 55,639,917 21,232,415 5,879,954 4,153,230 7,217,734 3,842,214 2,302,633 17,430,187 62,058,367 (6,418,450) 308,481 (308,481) (6,418,450) 43,351,523 568,601 (3,188) $ 37,498,486 Page 27 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Net changes in fund balances - total governmental funds $ (5,853,037) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. Expenditures for capitalized assets Less current year depreciation $ 15,263,221 (5,979,164) 9,284,057 Compensated absence expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in net assets in governmental activities Page 28 55,297 $ The notes to the basic financial statements are an integral part of this statement. 3,486,317 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES JUNE 30, 2012 Agency ASSETS Cash and investments Total assets $ $ 173,605 173,605 LIABILITIES Due to student groups Total liabilities $ $ 173,605 173,605 The notes to the basic financial statements are an integral part of this statement. Page 29 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Chinle Unified School District No. 24 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the District’s accounting policies are described below. A. Reporting Entity The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore and athletic functions. Page 30 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Unrestricted Federal, State and County aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Page 31 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Fund Financial Statements - Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Compensated absences are recorded only when payment is due. State, Federal and County aid and investment income associated with the current fiscal period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Deferred revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. Receivables that will not be collected within the available period have been reported as deferred revenue on the governmental fund financial statements. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type. The District reports the following major governmental funds: General Fund – The General Fund is the District’s primary operating fund. It accounts for all resources used to finance District maintenance and operation except those required to be accounted for in other funds. The General Fund includes the District’s Maintenance and Operation Fund as well as the Medicaid Reimbursement, Impact Aid, School Plant, Auxiliary Operations, Gifts and Donations, Indirect Costs, Teacherage, Advertisement, and Soft Capital Allocation Funds. These funds are maintained as separate funds for accounting and budgetary purposes but do not meet the criteria for separate reporting in the financial statements. Title I Grants Fund – The Title I Grants Fund accounts for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing to meet challenging state academic standards. Page 32 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Additionally, the District reports the following fund type: Fiduciary Funds - The Fiduciary Funds are Agency Funds which account for resources held by the District on behalf of others. This fund type includes the Student Activities Fund which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds. The Agency Funds are custodial in nature and do not have a measurement focus and are reported using the accrual basis of accounting. The Agency Funds are reported by fund type. D. Cash and Investments A.R.S. require the District to deposit certain cash with the County Treasurer. That cash is pooled for investment purposes, except for cash of the Debt Service Fund that may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. All investments are stated at fair value. E. Investment Income Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the fund financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” All receivables are shown net of an allowance for uncollectibles. Page 33 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) G. Property Tax Calendar Property tax levies are obtained by applying tax rates against either the primary assessed valuation or the secondary assessed valuation. Primary and secondary valuation categories are composed of the exact same properties. However, the primary category limits the increase in property values to 10% from the previous year, while there is no limit to the increase in property values for secondary valuation. Override and debt service tax rates are applied to the secondary assessed valuation and all other tax rates are applied to the primary assessed valuation. The County levies real property taxes on or before the third Monday in August, which become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May. The billings are considered past due after these dates, at which time the applicable property is subject to penalties and interest. The County also levies various personal property taxes during the year, which are due the second Monday of the month following receipt of the tax notice, and become delinquent 30 days thereafter. Pursuant to A.R.S., a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise. H. Inventory All inventories are valued at cost using either the first-in/first-out (FIFO) or the average cost method. Inventories consist of expendable supplies held for consumption. Inventories are recorded as expenses when consumed on the government-wide financial statements and as expenditures when purchased on the fund financial statements. The United States Department of Agriculture (USDA) commodity portion of the food services inventory consists of food donated by the USDA. It is valued at estimated market prices paid by the USDA. I. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements. Page 34 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) J. Capital Assets Capital assets which include land improvements, buildings and improvements, vehicles, furniture, equipment and construction in progress, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost in excess of $5,000 and an estimated useful life of more than one year. Such assets are recorded at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Land improvements Buildings and improvements Vehicles, furniture and equipment 20 - 30 years 10 - 50 years 7 - 15 years K. Compensated Absences The District’s employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Full-time certified employees earn 14 days of sick leave each contract year, cumulative to 120 days. Full-time twelve-month classified contract employees earn 16 days per year. Twelve-month administrators earn 176 hours of vacation per year. Full-time twelve-month classified contract employees earn 120 hours of vacation per year. Vacation must be taken no later than the year after the contract year in which it is earned, except for 400 hours, which may be carried forward. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences. Page 35 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d) L. Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net assets. Bond premiums and discounts, as well as issuance costs and the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. M. Interfund Activity Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund financial statements are reported as other financing sources/uses in governmental funds. N. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. NOTE 2 – FUND BALANCE CLASSIFICATIONS Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. Page 36 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 2 – FUND BALANCE CLASSIFICATIONS (Cont’d) Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance. Accordingly, no committed fund balance amounts are reported. Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a management official delegated that authority by the formal Governing Board action. The District does not have a formal policy or procedures for the utilization of assigned fund balance. Accordingly, no assigned fund balance amounts are reported. Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. The District applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Page 37 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 2 – FUND BALANCE CLASSIFICATIONS (Concl’d) The table below provides detail of the major components of the District’s fund balance classifications at year end. General Fund Fund Balances: Nonspendable: Inventory Prepaid Items Restricted: Capital projects Voter approved initiatives Federal and State projects Food service JTED Other purposes Unassigned Total fund balances Non-Major Governmental Funds $ 1,065,564 $ 568,601 3,673,315 1,148,521 568,373 535,942 146,931 660,091 29,131,148 $ 30,765,313 $ 6,733,173 The July 1, 2011 fund balances of the General Fund and Non-Major Governmental Funds do not agree to the prior year financial statements for the reclassification of certain funds. In addition, the July 1, 2011 government-wide net assets and the fund balance of the General Fund do not agree to the prior year financial statements due to a correction of an error. Prior period investment losses in the County Treasurer investment pool were allocated to the District. Statement of Activities Net Assets/Fund balance, June 30, 2011, as previously reported Reclassification of funds Prior period investment losses Net Assets/Fund balance, July 1, 2011, as restated Page 38 $ 207,939,034 (1,883,562) $ 206,055,472 General Fund $ 37,168,143 (378,726) (1,883,562) $ 34,905,855 Non-Major Governmental Funds $ 8,066,942 378,726 $ 8,445,668 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budgets, however this does not constitute a violation of any legal provisions. NOTE 4 - CASH AND INVESTMENTS A.R.S. authorize the District to invest public monies in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, obligations of the U.S. Government and its agencies, obligations of the State and certain local government subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized repurchase agreements, certain obligations of U.S. corporations, and certain other securities. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the District’s investments. Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure the District’s deposits may not be returned to the District. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $517,405 and the bank balance was $556,186. The State Treasurer’s pools are external investment pools, the Local Government Investment Pool (Pool 5) and Local Government Investment Pool-Government (Pool 7), with no regulatory oversight. The pools are not required to register (and are not registered) with the Securities and Exchange Commission. The activity and performance of the pools are reviewed monthly by the State Board of Investment. The fair value of each participant’s position in the State Treasurer investment pools approximates the value of the participant’s shares in the pool and the participants shares are not identified with specific investments. No regulatory oversight is provided for the County Treasurer’s Investment Pool and that pool’s structure does not provide for shares. At year end, the District’s investments consisted of the following. County Treasurer’s investment pool Total Page 39 Average Maturities 2.03 years Fair Value $ 29,748,474 $ 29,748,474 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 4 - CASH AND INVESTMENTS (Concl’d) Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pool did not receive a credit quality rating from a national rating agency. Custodial Credit Risk - Investments. The District’s investment in the County Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the District’s portion is not identified with specific investments and is not subject to custodial credit risk. NOTE 5 - RECEIVABLES Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate, were as follows. General Fund Title I Grants Fund Non-Major Governmental Funds Due from other governmental entities: Due from Federal government $ $ 772,399 $ Due from State government 7,259,959 Due from County government 485,985 Net due from governmental entities $ 7,745,944 $ 772,399 $ 637,875 162,891 15,030 815,796 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows. Unearned Grant drawdowns prior to meeting all eligibility requirements (Non-Major Governmental Funds) Total deferred revenue for governmental funds Page 40 $ $ 193,236 193,236 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 6 - CAPITAL ASSETS A summary of capital asset activity for the current fiscal year follows. Beginning Balance Ending Balance Governmental Activities Increase Decrease Capital assets, not being depreciated: Construction in progress $ 13,702,677 $ 9,351,914 $ 13,224,500 $ 9,830,091 Total capital assets, not being depreciated 13,702,677 9,351,914 13,224,500 9,830,091 Capital assets, being depreciated: Land improvements 9,221,649 2,171,311 11,392,960 Buildings and improvements 181,437,002 15,580,958 197,017,960 Vehicles, furniture and equipment 22,793,276 1,383,538 160,426 24,016,388 Total capital assets being depreciated 213,451,927 19,135,807 160,426 232,427,308 Less accumulated depreciation for: Land improvements (5,365,739) (346,738) (5,712,477) Buildings and improvements (42,810,542) (4,093,895) (46,904,437) Vehicles, furniture and equipment (15,455,137) (1,538,531) (160,426) (16,833,242) Total accumulated depreciation (63,631,418) (5,979,164) (160,426) (69,450,156) Total capital assets, being depreciated, net 149,820,509 13,156,643 Governmental activities capital assets, net $ 163,523,186 $ 22,508,557 $ 13,224,500 162,977,152 $ 172,807,243 Depreciation expense was charged to governmental functions as follows. Instruction Support services – students and staff Support services – administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Total depreciation expense – governmental activities $ 3,182,788 820,513 274,439 684,257 987,794 29,373 $ 5,979,164 Construction Commitments – At year end, the District had contractual commitments related to renovations at Tsaile Elementary, construction of employee housing, and roofing replacements. At year end the District had spent $9.8 million on the projects and had estimated remaining contractual commitments of $12.8 million. Page 41 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 7 - CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the current fiscal year was as follows. Beginning Balance Governmental activities: Compensated absences payable Governmental activity long-term liabilities Additions Reductions Ending Balance Due Within One Year $ 819,237 $ 451,356 $ 506,653 $ 763,940 $ 500,000 $ 819,237 $ 451,356 $ 506,653 $ 763,940 $ 500,000 NOTE 8 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS At year end, interfund balances were as follows. Due to/from other funds: Due from General Fund Total Due to Title I Non-Major Grants Governmental Fund Funds Total $ 635,715 $ 287,093 $ 922,808 $ 635,715 $ 287,093 $ 922,808 At year end, several funds had negative cash balances in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with the General Fund. All interfund balances are expected to be paid within one year. Interfund transfers: Transfers out Title I Grants Fund Non-Major Governmental Funds Total Transfers in General Fund $ 194,615 113,866 $ 308,481 Transfers between funds were used to move Federal grant funds restricted for indirect costs. Page 42 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 9 - CONTINGENT LIABILITIES Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial. Performance Audit – The District has been selected by the State Office of the Auditor General to have a performance audit pursuant to A.R.S. section 41-1279.03.A. for the fiscal year ended June 30, 2012. This performance audit has not been completed, and although the results are unknown at this time, the District expects the results to be immaterial to the financial statements. Lawsuits - The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District’s counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the District. NOTE 10 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. The District’s employees have health and accident insurance coverage with the Rural Schools of Northern Arizona Trust (RSNA). RSNA is a public entity risk pool currently operating as a common risk management and insurance program for six member school districts. The District pays a monthly premium to RSNA for employees’ health and accident insurance coverage. The agreement provides that RSNA will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. Page 43 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 10 - RISK MANAGEMENT (Concl’d) The District continues to carry commercial insurance for all other risks of loss, including workers’ compensation. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE 11 - PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The District contributes to the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing, multiple-employer defined benefit pension plan; a cost-sharing, multiple-employer defined health insurance premium plan; and a cost-sharing, multipleemployer defined benefit long-term disability plan that covers employees of the State of Arizona and employees of participating political subdivisions and school districts. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. Plan Description – Benefits are established by state statute and the plan generally provides retirement, long-term disability, and health insurance premium benefits, including death and survivor benefits. The retirement benefits are generally paid at a percentage, based on years of service, of the retirees’ average compensation. Long-term disability benefits vary by circumstance, but generally pay a percentage of the employee’s monthly compensation. Health insurance premium benefits are paid as a fixed dollar amount per month towards the retiree’s healthcare insurance premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or her dependents. The ASRS issues a comprehensive annual financial report that includes financial statements and required supplementary information. The most recent report may be obtained by writing the ASRS, 3300 North Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling (602) 240-2000 or (800) 621-3778. The report is also available on the ASRS’ website at www.azasrs.gov. Funding Policy – The Arizona State Legislature establishes and may amend active plan members’ and the District’s contribution rates. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 10.74 percent (10.50 percent for retirement and 0.24 percent for long-term disability) of the members’ annual covered payroll and the District was required by statute to contribute at the actuarially determined rate of 10.74 percent (9.87 percent for retirement, 0.63 percent for health insurance premium, and 0.24 percent for long-term disability) of the members’ annual covered payroll. Page 44 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 11 - PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl’d) The District’s contributions for the current and two preceding years, all of which were equal to the required contributions, were as follows. Retirement Fund Years ended June 30, 2012 2011 2010 Page 45 $ 2,252,381 2,019,007 1,777,862 Health Benefit Supplement Fund Long-Term Disability Fund $ $ 143,769 132,210 140,694 54,769 56,021 85,269 (This page intentionally left blank) Page 46 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Required Supplementary Information) Page 47 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Revenues: Other local State aid and grants Total revenues $ 1,100,000 18,263,598 19,363,598 Non-GAAP Actual Final $ 1,100,000 18,263,598 19,363,598 $ 1,411,818 18,263,598 19,675,416 Variance with Final Budget Positive (Negative) $ 311,818 311,818 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Total expenditures 9,025,582 938,301 1,639,081 5,749,723 3,184,966 20,000 20,557,653 8,817,862 945,978 1,639,081 5,749,723 3,323,945 20,000 20,496,589 7,280,842 1,037,531 2,170,230 5,684,110 3,317,739 35,000 19,525,452 1,537,020 (91,553) (531,149) 65,613 6,206 (15,000) 971,137 Changes in fund balances (1,194,055) (1,132,991) 149,964 1,282,955 1,155,208 1,155,208 (18,041) (1,173,249) 568,601 (3,188) 568,601 (3,188) Fund balances (deficits), beginning of year, as restated Increase (decrease) in reserve for prepaid items Increase (decrease) in reserve for inventory Fund balances (deficits), end of year $ (38,847) $ 22,217 See accompanying notes to this schedule. Page 48 $ 697,336 $ 675,119 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TITLE I GRANTS YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original & Final Revenues: Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Student transportation services Capital outlay Total expenditures 8,085,785 8,085,785 Actual $ 8,085,785 8,085,785 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses): 4,474,862 4,474,862 Variance with Final Budget Positive (Negative) $ 2,402,880 1,526,574 175,505 79,157 96,131 4,280,247 5,682,905 (1,526,574) (175,505) (79,157) (96,131) 3,805,538 194,615 194,615 (194,615) (194,615) (194,615) (194,615) Changes in fund balances Fund balances, beginning of year Fund balances, end of year $ $ See accompanying notes to this schedule. Page 49 (3,610,923) (3,610,923) $ CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2012 NOTE 1 - BUDGETARY BASIS OF ACCOUNTING The adopted budget of the District is prepared on a basis consistent with accounting principles generally accepted in the United States of America with the following exceptions: 1) a portion of the General Fund activity is budgeted for separately as special revenue and capital projects funds, and 2) a portion of the fiscal year 2011-12 insurance payments were budgeted for in fiscal year 2010-11. Consequently, the following adjustments were necessary to present actual expenditures, fund balance at July 1, 2011, and fund balance at June 30, 2012 on a budgetary basis in order to provide a meaningful comparison. Total Expenditures Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Fiscal year 2011-12 activity budgeted as special revenue funds Fiscal year 2011-12 activity budgeted as capital projects funds Fiscal year 2011-12 insurance payments budgeted in 2010-11 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund Page 50 Fund Balance, June 30, 2012 Fund Balance, July 1, 2011 (as restated) $ 47,226,876 $ 30,765,313 $ (26,520,743) (27,841,777) (32,342,677) (647,617) (2,226,200) (2,048,155) (533,064) $ 19,525,452 $ 34,905,855 (533,064) 697,336 $ (18,041) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Page 51 (This page intentionally left blank) Page 52 GOVERNMENTAL FUNDS Page 53 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2012 ASSETS Cash and investments Due from governmental entities Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Deferred revenues Total liabilities Special Revenue Capital Projects Total NonMajor Governmental Fund $ 3,605,662 742,272 4,347,934 $ 3,705,047 73,524 3,778,571 $ 784,499 23,248 287,093 193,236 1,288,076 $ 13,111 92,145 $ $ $ Fund balances: Restricted Total fund balances Total liabilities and fund balances Page 54 $ 3,059,858 3,059,858 $ 4,347,934 $ $ 7,310,709 815,796 8,126,505 105,256 797,610 115,393 287,093 193,236 1,393,332 3,673,315 3,673,315 6,733,173 6,733,173 3,778,571 $ 8,126,505 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE YEAR ENDED JUNE 30, 2012 Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues Special Revenue Capital Projects Total NonMajor Governmental Funds $ $ $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Other financing sources (uses): Transfers out Total other financing sources (uses): 399 Fund balances, beginning of year $ 1,435,915 1,317,846 6,198,854 8,952,615 642 2,267,633 1,465,365 8,559,592 1,928,486 1,991,652 3,186,394 1,529,056 149,222 11,212 13,876 2,267,633 3,393,851 10,551,244 174,586 (1,773,215) (1,598,629) 38,321 11,212 13,234 (113,866) (113,866) Changes in fund balances Page 55 75,965 142,472 218,437 3,185,995 1,529,056 110,901 Excess (deficiency) of revenues over expenditures Fund balances, end of year 1,359,950 1,317,846 6,056,382 8,734,178 (113,866) (113,866) 60,720 (1,773,215) (1,712,495) 2,999,138 5,446,530 8,445,668 3,059,858 $ 3,673,315 $ 6,733,173 SPECIAL REVENUE FUNDS Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Instructional Improvement - to account for the activity of monies received from gaming revenue. County, City and Town Grants - to account for monies received from county, city and town grants. Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities. Promote Informed Parent Choice - to account for financial assistance received to promote parent choices in the education of their students. Limited English & Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Indian Education - to account for financial assistance received for Indian education at preschool, elementary, secondary and adult levels. Flexibility and Accountability - to account for financial assistance received to promote flexibility and accountability in education. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Johnson-O’Malley - to account for financial assistance received to meet the unique educational needs of eligible Indian children. Vocational Education - to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. Impact Aid - to account for the activity of monies received from impact aid. E-Rate - to account for financial assistance received for broadband internet and telecommunication costs. Page 56 Other Federal Projects - to account for financial assistance received for other supplemental federal projects. State Vocational Education - to account for financial assistance received for the preparation of individuals for employment. Chemical Abuse Prevention Programs - to account for financial assistance received for chemical abuse awareness programs. Gifted - to account for financial assistance received for programs for gifted students. Environmental Special Plate – to account for the proceeds received from the sale of environmental license plates. Other State Projects - to account for financial assistance received for other State projects. School Plant - to account for proceeds from the sale or lease of school property. Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Civic Center - to account for monies received from the rental of school facilities for civic activities. Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations. Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01. Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. Fingerprint - to account for activity of fingerprinting employees as mandated by the State. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Indirect Costs - to account for monies transferred from Federal projects for administrative costs. Page 57 (Continued) SPECIAL REVENUE FUNDS (Concluded) Teacherage - to account for the operations of District housing facilities provided for employees of the District exclusively on Indian and Federal lands. Insurance Refund - to account for insurance premium payments that are refunded to the District. Advertisement - to account for monies received from the sale of advertising. Joint Technical Education - to account for monies received from Joint Technical Education Districts for vocational education programs. Page 58 (This page intentionally left blank) Page 59 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 Classroom Site ASSETS Cash and investments Due from governmental entities Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Deferred revenues Total liabilities $ Page 60 County, City, and Town Grants $ 572,115 $ 24,872 $ 424,113 162,891 587,004 $ 572,115 $ 24,872 $ 10,598 $ $ 10,598 Fund balances: Restricted Total fund balances Total liabilities and fund balances Instructional Improvement 576,406 576,406 $ 587,004 572,115 572,115 $ 572,115 24,872 24,872 $ 24,872 Professional Development and Technology Grants Limited English & Immigrant Students $ $ 21,337 161,065 Special Education Grants Indian Education $ 16,107 $ $ $ 21,337 $ 161,065 $ 16,107 $ 55,753 55,753 $ 13,007 $ 30,255 $ 2,634 $ 17,894 8,330 21,337 $ 21,337 130,810 161,065 $ 161,065 13,473 16,107 $ 16,107 $ Johnson O'Malley Vocational Education $ $ 144,250 144,250 $ 33,015 33,015 $ 4,242 $ 6,716 37,859 140,008 26,299 55,753 144,250 33,015 55,753 $ 144,250 $ (Continued) Page 61 33,015 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 E-Rate ASSETS Cash and investments Due from governmental entities Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Deferred revenues Total liabilities $ 519,847 $ $ 519,847 $ Page 62 State Vocational Education $ 4 $ 5,973 131,453 137,426 $ 4 $ 5,973 $ 82,927 4 4 88,900 Fund balances: Restricted Total fund balances Total liabilities and fund balances Other Federal Projects 519,847 519,847 $ 519,847 48,526 48,526 $ 137,426 $ 4 Environmental Special Plate Gifted Other State Projects Food Service $ 49 $ 7,011 $ 163,507 $ $ 49 $ 7,011 $ 163,507 $ 106,700 23,248 $ $ 49 49 7,011 7,011 $ 527 $ 206,776 $ 481,887 214,910 696,797 $ 527 $ 206,776 $ 160,855 $ $ 2,928 33,559 163,507 160,855 2,928 535,942 535,942 $ 49 $ 7,011 $ 163,507 Community School Civic Center $ 696,797 527 527 $ 527 203,848 203,848 $ 206,776 (Continued) Page 63 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 Extracurricular Activities Fees Tax Credit ASSETS Cash and investments Due from governmental entities Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Deferred revenues Total liabilities Page 64 Textbooks $ 20,394 $ 1,785 $ 72,364 $ 20,394 $ 1,785 $ 72,364 $ Fund balances: Restricted Total fund balances Total liabilities and fund balances Fingerprint $ 20,394 20,394 $ 20,394 $ 1,785 1,785 $ 1,785 72,364 72,364 $ 72,364 Insurance Refund Joint Technical Education Totals $ 736,301 $ 169,628 $ $ 736,301 $ 169,628 $ $ 400,000 $ 22,697 $ $ 3,605,662 742,272 4,347,934 400,000 22,697 784,499 23,248 287,093 193,236 1,288,076 336,301 336,301 146,931 146,931 3,059,858 3,059,858 736,301 Page 65 $ 169,628 $ 4,347,934 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Classroom Site Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 4,609 990,352 Instructional Improvement $ 1,229 85,329 County, City, and Town Grants $ 249,667 994,961 86,558 249,667 708,815 63,399 49,350 51,593 168,867 444 772,214 49,350 1,846 222,750 222,747 37,208 26,917 Changes in fund balances 222,747 37,208 26,917 Fund balances (deficits), beginning of year 353,659 534,907 (2,045) Expenditures: Current Instruction Support services - students and staff Support services - administration Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses): Fund balances, end of year Page 66 $ 576,406 $ 572,115 $ 24,872 Professional Development and Technology Grants Limited English & Immigrant Students $ $ 387,774 387,774 362,181 8,313 Indian Education $ Special Education Grants Flexibility and Accountability $ $ Johnson O'Malley $ 107,993 107,993 706,815 706,815 17,747 17,747 769,330 769,330 225,152 225,152 93,291 9,903 460,645 170,220 36,855 17,139 404,591 314,562 140,819 40,443 33,754 370,494 103,194 8,046 675,766 17,139 16,815 735,968 215,016 17,280 4,799 31,049 608 33,362 10,136 (17,280) (17,280) (4,799) (4,799) (31,049) (31,049) (608) (608) (33,362) (33,362) (10,136) (10,136) $ $ $ $ $ $ (Continued) Page 67 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Vocational Education Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ E-Rate $ 145,671 145,671 Expenditures: Current Instruction Support services - students and staff Support services - administration Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 1,782,350 1,783,369 348,984 220,460 2,694 642 39,844 140,838 1,150,264 1,723,044 1,127 60,325 (4,833) (4,833) (11,799) (11,799) 1,127 Fund balances (deficits), beginning of year Page 68 1,019 58,684 42,310 Changes in fund balances Fund balances, end of year $ 1,127 4,833 Other financing sources (uses): Transfers out Total other financing sources (uses): 1,127 Other Federal Projects 48,526 518,720 $ $ 519,847 $ 48,526 State Vocational Education $ Other State Projects $ Food Service $ 44,320 197,845 44,320 197,845 38,016 6,304 19,245 8,519 7,900 44,320 162,181 197,845 362,335 Community School Civic Center $ 1,913,550 2,275,885 2 $ 2 $ $ 307,335 992 992 114,108 3,060 3,267 2,067,456 $ 307,335 Extracurricular Activities Fees Tax Credit 200,177 86,369 406,981 2,067,456 $ 208,429 2 (99,646) 992 208,429 2 (99,646) 992 327,513 525 303,494 19,402 535,942 $ 527 $ 203,848 $ 20,394 (Continued) Page 69 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Fingerprint Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 533 $ 533 1,917 $ 68,077 1,917 68,077 80 400,000 80 400,000 533 1,837 (331,923) 533 1,837 (331,923) 1,252 70,527 668,224 Expenditures: Current Instruction Support services - students and staff Support services - administration Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Insurance Refund Textbooks Other financing sources (uses): Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances, end of year Page 70 $ 1,785 $ 72,364 $ 336,301 Joint Technical Education $ 361,108 Totals $ 361,108 280,635 125,132 11,370 1,359,950 1,317,846 6,056,382 8,734,178 417,137 3,185,995 1,529,056 110,901 642 2,267,633 1,465,365 8,559,592 (56,029) 174,586 (113,866) (113,866) $ (56,029) 60,720 202,960 2,999,138 146,931 Page 71 $ 3,059,858 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Classroom Site Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Variance Positive (Negative) Actual 910,085 $ 4,609 990,352 $ 4,609 80,267 910,085 994,961 84,876 2,437,402 78,510 708,815 63,399 1,728,587 15,111 2,515,912 772,214 1,743,698 (1,605,827) 222,747 1,828,574 (1,605,827) 222,747 1,828,574 238,957 353,659 114,702 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 72 $ (1,366,870) $ 576,406 $ 1,943,276 Instructional Improvement Budget $ $ County, City, and Town Grants Variance Positive (Negative) Actual 85,000 $ 1,229 85,329 $ 1,229 329 85,000 86,558 1,558 425,000 49,350 375,650 Budget $ 350,000 Variance Positive (Negative) Actual $ 249,667 $ (100,333) 350,000 249,667 (100,333) 250,000 51,593 168,867 444 (51,593) 81,133 (444) 425,000 49,350 375,650 250,000 1,846 222,750 (1,846) 27,250 (340,000) 37,208 377,208 100,000 26,917 (73,083) (340,000) 37,208 377,208 100,000 26,917 (73,083) 534,938 534,907 (31) 1,938 (2,045) (3,983) 194,938 $ 572,115 $ 377,177 $ 101,938 $ 24,872 $ (77,066) (Continued) Page 73 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Professional Development and Technology Grants Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) Actual $ $ 1,229,097 1,229,097 387,774 387,774 (841,323) (841,323) 1,229,097 362,181 8,313 866,916 (8,313) 1,229,097 370,494 858,603 17,280 17,280 (17,280) (17,280) (17,280) (17,280) Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances, end of year Page 74 $ $ $ Title IV Grants Budget $ Promote Informed Parent Choice Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Actual $ $ 380,000 380,000 (380,000) (380,000) 70,029 70,029 (70,029) (70,029) 380,000 380,000 70,029 70,029 380,000 380,000 70,029 70,029 $ $ $ $ $ $ (Continued) Page 75 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Limited English & Immigrant Students Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) Actual $ $ 320,000 320,000 107,993 107,993 (212,007) (212,007) 320,000 93,291 9,903 226,709 (9,903) 320,000 103,194 216,806 4,799 4,799 (4,799) (4,799) (4,799) (4,799) Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances, end of year Page 76 $ $ $ Indian Education Budget $ Flexibility and Accountability Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Actual $ $ 700,000 700,000 706,815 706,815 6,815 6,815 17,747 17,747 17,747 17,747 700,000 460,645 170,220 36,855 239,355 (170,220) (36,855) 17,139 (17,139) 8,046 675,766 (8,046) 24,234 17,139 (17,139) 31,049 31,049 608 608 (31,049) (31,049) (31,049) (31,049) (608) (608) (608) (608) 700,000 $ $ $ $ $ $ (Continued) Page 77 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Special Education Grants Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) Actual $ $ 800,000 800,000 769,330 769,330 (30,670) (30,670) 800,000 404,591 314,562 395,409 (314,562) 16,815 735,968 (16,815) 64,032 33,362 33,362 (33,362) (33,362) (33,362) (33,362) 800,000 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances, end of year Page 78 $ $ $ Johnson O'Malley Budget $ Vocational Education Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Actual $ $ 338,334 338,334 225,152 225,152 (113,182) (113,182) 350,000 350,000 145,671 145,671 (204,329) (204,329) 338,334 140,819 40,443 33,754 197,515 (40,443) (33,754) 350,000 58,684 42,310 291,316 (42,310) 338,334 215,016 123,318 350,000 39,844 140,838 (39,844) 209,162 10,136 10,136 4,833 4,833 (10,136) (10,136) (10,136) (10,136) (4,833) (4,833) (4,833) (4,833) $ $ $ $ $ $ (Continued) Page 79 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Medicaid Reimbursement Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) Non-GAAP Actual $ 848 $ 848 300,000 300,000 11,948 12,796 (288,052) (287,204) 300,000 20,557 114,281 1,804 (20,557) 185,719 (1,804) 300,000 136,642 163,358 (123,846) (123,846) (123,846) (123,846) 164,948 164,948 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances, end of year Page 80 $ $ 41,102 $ 41,102 Impact Aid $ 46,642,764 46,642,764 46,642,764 46,642,764 $ Variance Positive (Negative) Non-GAAP Actual Budget $ E-Rate $ 55,163 $ 55,163 21,054,081 21,109,244 (25,588,683) (25,533,520) 7,928,053 1,519,934 1,380,703 344,628 218,795 (7,928,053) (1,519,934) (1,380,703) (344,628) (218,795) 11,149,204 22,541,317 35,493,560 24,101,447 (1,432,073) Budget $ Variance Positive (Negative) Actual $ 1,127 $ 1,127 1,127 1,127 (1,432,073) 1,127 1,127 (1,432,073) (1,432,073) 1,127 1,127 26,297,150 26,297,150 518,720 518,720 24,865,077 $ 24,865,077 $ $ 519,847 $ 519,847 (Continued) Page 81 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Other Federal Projects Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Actual $ 500,000 500,000 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) 500,000 500,000 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances 1,019 $ 1,019 1,782,350 1,783,369 1,282,350 1,283,369 348,984 220,460 2,694 (348,984) (220,460) (2,694) 642 (642) 1,150,264 1,723,044 (650,264) (1,223,044) 60,325 60,325 (11,799) (11,799) (11,799) (11,799) 48,526 48,526 Fund balances (deficits), beginning of year Fund balances, end of year Page 82 $ $ 48,526 $ 48,526 State Vocational Education Budget $ Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Actual $ $ 50,000 44,320 (5,680) 3,000 (3,000) 50,000 44,320 (5,680) 3,000 (3,000) 50,000 38,016 11,984 3,000 3,000 6,304 (6,304) 44,320 5,680 3,000 3,000 50,000 $ Chemical Abuse Prevention Programs $ $ $ $ $ (Continued) Page 83 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Environmental Special Plate Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues Actual $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Variance Positive (Negative) $ $ 500 (500) 500 (500) 500 500 500 500 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 84 $ $ $ Other State Projects Budget $ School Plant Variance Positive (Negative) Actual $ $ 197,845 (127,155) 325,000 197,845 (127,155) 19,245 8,519 7,900 (19,245) (8,519) (7,900) 162,181 197,845 162,819 127,155 325,000 325,000 $ $ $ Budget $ 325,000 Variance Positive (Negative) Non-GAAP Actual $ 54,541 $ 54,541 $ 54,541 54,541 300,000 300,000 300,000 300,000 (300,000) 54,541 354,541 (300,000) 54,541 354,541 (300,000) $ 54,541 $ 354,541 (Continued) Page 85 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Food Service Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 398,015 Variance Positive (Negative) Actual $ 362,335 $ (35,680) 2,101,985 2,500,000 1,913,550 2,275,885 (188,435) (224,115) 3,000,000 2,067,456 932,544 3,000,000 2,067,456 932,544 (500,000) 208,429 708,429 (500,000) 208,429 708,429 167,765 327,513 159,748 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 86 $ (332,235) $ 535,942 $ 868,177 Civic Center Budget Community School Variance Positive (Negative) Actual $ $ 2 $ 2 Budget 2 $ 2 275,000 Actual $ 275,000 $ 525 $ 32,335 32,335 114,108 3,060 3,267 (114,108) (3,060) (3,267) 350,000 200,177 86,369 406,981 149,823 (86,369) (56,981) 2 2 (75,000) (99,646) (24,646) 2 2 (75,000) (99,646) (24,646) 295,715 303,494 7,779 525 $ 307,335 307,335 350,000 525 Variance Positive (Negative) 527 $ 2 $ 220,715 $ 203,848 $ (16,867) (Continued) Page 87 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Auxiliary Operations Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 275,000 Variance Positive (Negative) Non-GAAP Actual $ 178,946 $ (96,054) 275,000 178,946 (96,054) 250,000 60,761 136,869 470 (60,761) 113,131 (470) 250,000 198,100 51,900 25,000 (19,154) (44,154) Changes in fund balances 25,000 (19,154) (44,154) Fund balances (deficits), beginning of year 47,156 90,903 43,747 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Fund balances, end of year Page 88 $ 72,156 $ 71,749 $ (407) Extracurricular Activities Fees Tax Credit Budget $ 1,000 Variance Positive (Negative) Actual $ 1,000 Gifts and Donations 992 $ 992 Budget (8) $ 12,000 Variance Positive (Negative) Non-GAAP Actual $ 14,611 $ 2,611 (8) 12,000 14,611 2,611 15,000 15,000 30,000 15,258 14,742 15,000 15,000 30,000 15,258 14,742 (14,000) 992 14,992 (18,000) (647) 17,353 (14,000) 992 14,992 (18,000) (647) 17,353 19,402 19,402 65,196 65,196 $ 5,402 $ 20,394 $ 14,992 $ 47,196 $ 64,549 $ 17,353 (Continued) Page 89 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Fingerprint Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Variance Positive (Negative) Actual 500 $ 533 $ 33 500 533 33 500 533 33 500 533 33 1,252 1,252 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 90 $ 1,752 $ 1,785 $ 33 Textbooks Budget $ $ 2,000 Indirect Costs Variance Positive (Negative) Actual $ 1,917 $ (83) 2,000 1,917 (83) 115,000 80 114,920 Budget $ Variance Positive (Negative) Non-GAAP Actual $ 4,523 $ 4,523 4,523 4,523 750,000 543 193,162 137,970 (543) 556,838 (137,970) 115,000 80 114,920 750,000 331,675 418,325 (113,000) 1,837 114,837 (750,000) (327,152) 422,848 310,000 308,481 (1,519) 310,000 308,481 (1,519) (440,000) (18,671) 421,329 500,153 496,027 (4,126) (113,000) 1,837 70,527 70,527 (42,473) $ 72,364 114,837 $ 114,837 $ 60,153 $ 477,356 $ 417,203 (Continued) Page 91 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Teacherage Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 338,000 $ 338,000 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Variance Positive (Negative) Non-GAAP Actual 336,670 $ (1,330) 336,670 (1,330) 506,750 (506,750) 5,300,000 5,300,000 2,791,001 3,297,751 2,508,999 2,002,249 (4,962,000) (2,961,081) 2,000,919 (4,962,000) (2,961,081) 2,000,919 5,214,368 5,214,094 (274) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 92 $ 252,368 $ 2,253,013 $ 2,000,645 Insurance Refund Budget $ 65,000 Advertisement Variance Positive (Negative) Actual $ 68,077 $ 3,077 Budget $ Variance Positive (Negative) Non-GAAP Actual $ $ 68,077 400,000 400,000 14,500 14,500 400,000 400,000 14,500 14,500 (335,000) (331,923) 3,077 (14,500) 31 14,531 (335,000) (331,923) 3,077 (14,500) 31 14,531 394,514 668,224 273,710 14,359 14,359 59,514 $ 336,301 $ 276,787 31 31 65,000 $ 3,077 31 $ (14,500) $ 14,390 31 $ 28,890 (Continued) Page 93 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Joint Technical Education Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 350,000 Variance Positive (Negative) Actual $ 361,108 $ 11,108 350,000 361,108 11,108 250,000 280,635 125,132 11,370 (30,635) (125,132) (11,370) 250,000 417,137 (167,137) 100,000 (56,029) (156,029) Changes in fund balances 100,000 (56,029) (156,029) Fund balances (deficits), beginning of year 204,610 202,960 (1,650) Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Fund balances (deficits), end of year Page 94 $ 304,610 $ 146,931 $ (157,679) Totals Budget $ 2,066,515 1,373,585 53,732,209 57,172,309 $ 6,698,765 2,107,607 750,000 $ Variance Positive (Negative) Non-GAAP Actual 2,005,283 1,317,846 27,122,411 30,445,540 $ (61,232) (55,739) (26,609,798) (26,726,769) 3,650,000 52,767,764 65,974,136 11,210,624 3,300,683 1,687,040 989,348 219,437 2,267,633 15,405,570 35,080,335 (4,511,859) (1,193,076) (937,040) (989,348) (219,437) 1,382,367 37,362,194 30,893,801 (8,801,827) (4,634,795) 4,167,032 310,000 310,000 308,481 (113,866) 194,615 (1,519) (113,866) (115,385) (8,491,827) (4,440,180) 4,051,647 7,757,016 35,341,815 27,584,799 (734,811) Page 95 $ 30,901,635 $ 31,636,446 (This page intentionally left blank) Page 96 CAPITAL PROJECTS FUNDS Insurance Proceeds - to account for the monies received from insurance claims. Litigation Recovery - to account for monies received for and derived from litigation. Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items. Soft Capital Allocation - to account for transactions relating to the acquisition of short-term capital items required to meet academic adequacy standards. Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions. Building Renewal - to account for monies received from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems or buildings that will maintain or extend their useful life. Federal Impact Aid - Construction – to account for Federal Impact Aid monies received for new facilities, major upgrades, repairs or renovations. Page 97 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2012 Insurance Proceeds ASSETS Cash and investments Due from governmental entities Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Total liabilities Page 98 Unrestricted Capital Outlay $ 246,453 $ 379,549 $ $ 246,453 $ 379,549 $ $ 9,391 $ $ 9,391 Fund balances: Restricted Total fund balances Total liabilities and fund balances Litigation Recovery 237,062 237,062 $ 246,453 379,549 379,549 $ 379,549 1,440,165 15,030 1,455,195 3,720 87,895 91,615 1,363,580 1,363,580 $ 1,455,195 Gifts and Donations Capital Building Renewal Federal Impact Aid Construction $ 982 $ 1,559,786 $ $ 982 $ 1,559,786 $ $ $ 78,112 58,494 136,606 $ Totals $ $ $ 4,250 4,250 982 982 $ Page 99 982 1,555,536 1,555,536 $ 1,559,786 136,606 136,606 $ 136,606 3,705,047 73,524 3,778,571 13,111 92,145 105,256 3,673,315 3,673,315 $ 3,778,571 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Insurance Proceeds Revenues: Other local Federal aid, grants and reimbursements Total revenues $ 1,186 Litigation Recovery $ 1,186 Expenditures: Current Instruction Support services - administration Operation and maintenance of plant services Student transportation services Capital outlay Total expenditures 823 Unrestricted Capital Outlay $ 823 60,314 60,314 399 38,321 9,390 13,234 1,822 1,067,814 1,070,035 60,945 Changes in fund balances (59,759) 823 (1,009,721) Fund balances, beginning of year 296,821 378,726 2,373,301 Fund balances, end of year Page 100 $ 237,062 $ 379,549 $ 1,363,580 Gifts and Donations Capital $ Building Renewal 2 $ 2 $ Page 101 13,343 Federal Impact Aid Construction $ 13,343 297 142,472 142,769 Totals $ 75,965 142,472 218,437 757,705 757,705 102,967 102,967 399 38,321 11,212 13,234 1,928,486 1,991,652 2 (744,362) 39,802 (1,773,215) 980 2,299,898 96,804 5,446,530 982 $ 1,555,536 $ 136,606 $ 3,673,315 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Insurance Proceeds Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Capital outlay Total expenditures Changes in fund balances Fund balances, beginning of year Fund balances (deficits), end of year Page 102 $ 25,000 Variance Positive (Negative) Actual $ 1,186 $ (23,814) 25,000 1,186 (23,814) 450,000 38,321 9,390 13,234 411,679 (9,390) (13,234) 450,000 60,945 389,055 (425,000) (59,759) 365,241 570,531 296,821 (273,710) 145,531 $ 237,062 $ 91,531 Litigation Recovery Budget $ 1,000 Unrestricted Capital Outlay Variance Positive (Negative) Actual $ 1,000 823 $ 823 $ 823 378,726 378,726 (20,274) $ 379,549 $ (177) 400,000 400,000 (399,000) (177) Budget $ 65,000 Variance Positive (Negative) Actual $ 65,000 60,314 $ (4,686) 60,314 (4,686) 399 (399) 1,822 (1,822) 400,000 400,000 2,336,044 2,336,044 1,067,814 1,070,035 1,268,230 1,266,009 399,823 (2,271,044) (1,009,721) 1,261,323 2,373,301 2,373,301 399,823 $ 102,257 $ 1,363,580 $ 1,261,323 (Continued) Page 103 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Soft Capital Allocation Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ 102,000 760,983 Variance Positive (Negative) Non-GAAP Actual $ 64,679 760,983 $ (37,321) 862,983 825,662 (37,321) 1,160,196 337,670 15,166 82,134 822,526 (15,166) (82,134) 212,647 (212,647) 1,160,196 647,617 512,579 Changes in fund balances (297,213) 178,045 475,258 Fund balances, beginning of year 2,048,155 2,048,155 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Capital outlay Total expenditures Fund balances (deficits), end of year Page 104 $ 1,750,942 $ 2,226,200 $ 475,258 Gifts and Donations - Capital Budget $ Building Renewal Variance Positive (Negative) Actual 10 $ 10 2 $ 2 50,000 50,000 $ (49,990) 2 980 980 (49,010) $ 982 $ Budget (8) $ 15,000 Variance Positive (Negative) Actual $ 13,343 $ (1,657) (8) 15,000 13,343 (1,657) 50,000 50,000 2,299,898 2,299,898 757,705 757,705 1,542,193 1,542,193 49,992 (2,284,898) (744,362) 1,540,536 2,299,898 2,299,898 49,992 $ 15,000 $ 1,555,536 $ 1,540,536 (Continued) Page 105 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Federal Impact Aid - Construction Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Capital outlay Total expenditures Changes in fund balances Actual $ Page 106 $ 297 $ 297 142,472 142,769 142,472 142,769 250,000 250,000 102,967 102,967 147,033 147,033 (250,000) 39,802 289,802 96,804 96,804 Fund balances, beginning of year Fund balances (deficits), end of year Variance Positive (Negative) (250,000) $ 136,606 $ 386,606 Totals Budget $ 208,010 760,983 $ 968,993 1,160,196 140,644 760,983 142,472 1,044,099 $ (67,366) 142,472 75,106 5,335,942 6,946,138 338,069 15,166 120,455 11,212 225,881 1,928,486 2,639,269 822,127 (15,166) 329,545 (11,212) (225,881) 3,407,456 4,306,869 (5,977,145) (1,595,170) 4,381,975 7,671,591 7,494,685 (176,906) 450,000 $ Variance Positive (Negative) Non-GAAP Actual 1,694,446 Page 107 $ 5,899,515 $ 4,205,069 (This page intentionally left blank) Page 108 AGENCY FUNDS Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent. Employee Withholding - to account for voluntary deductions and employee payroll checks temporarily held by the District as an agent. Page 109 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2012 Beginning Balance STUDENT ACTIVITIES Assets Cash and investments Additions Ending Balance Deductions $ 147,929 $ 132,798 $ 107,122 $ 173,605 $ 147,929 $ 132,798 $ 107,122 $ 173,605 Liabilities Due to student groups $ 147,929 $ 132,798 $ 107,122 $ 173,605 Total liabilities $ 147,929 $ 132,798 $ 107,122 $ 173,605 - $ 10,398,684 $ 10,398,684 $ - $ - $ 10,398,684 $ 10,398,684 $ - Liabilities Deposits held for others $ - $ 10,398,684 $ 10,398,684 $ - Total liabilities $ - $ 10,398,684 $ 10,398,684 $ - Total assets EMPLOYEE WITHHOLDING FUND Assets Cash and investments $ Total assets TOTAL AGENCY FUNDS Assets Cash and investments $ 147,929 $ 10,531,482 $ 10,505,806 $ 173,605 Total assets $ 147,929 $ 10,531,482 $ 10,505,806 $ 173,605 Liabilities Deposits held for others Due to student groups $ 147,929 $ 10,398,684 132,798 $ 10,398,684 107,122 $ 173,605 Total liabilities $ 147,929 $ 10,531,482 $ 10,505,806 $ 173,605 Page 110 STATISTICAL SECTION The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below. Financial Trends These schedules contain information on financial trends to help the reader understand how the District’s financial position and financial activities have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the District’s ability to generate revenue. The District does not levy property taxes. Debt Capacity These schedules present information to help the reader evaluate the District’s current levels of outstanding debt as well as assess the District’s ability to make debt payments and/or issue additional debt in the future. Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the District’s financial activities take place and to help make comparisons with other school districts. Operating Information These schedules contain information about the District’s operations and various resources to help the reader draw conclusions as to how the District’s financial information relates to the services provided by the District. Page 111 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 NET ASSETS BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) 2012 Net Assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ $ 172,807,243 6,733,173 30,001,373 209,541,789 2011 $ $ 2007 Net Assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ $ 141,348,009 20,431,196 20,032,138 181,811,343 Source: The source of this information is the District's financial records. Page 112 Fiscal Year Ended June 30 2010 163,523,186 8,722,745 33,809,541 206,055,472 $ $ 2006 $ $ 133,443,313 16,148,067 22,167,446 171,758,826 147,881,620 19,751,026 34,827,625 202,460,271 $ $ 2005 $ $ 117,316,671 26,189,001 22,752,793 166,258,465 2009 147,752,133 18,241,681 26,654,980 192,648,794 2008 $ $ 2004 $ $ 105,245,351 32,454,559 21,999,802 159,699,712 144,244,837 16,895,024 27,369,828 188,509,689 2003 $ $ 89,115,967 35,403,806 15,847,000 140,366,773 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST TEN FISCAL YEARS (Accrual basis of accounting) 2012 Expenses Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Interest on long-term debt Total expenses $ Program Revenues Charges for services: Instruction Operation of non-instructional services Other activities Operating grants and contributions Capital grants and contributions Total program revenues Net (Expense)/Revenue $ 25,762,502 6,977,301 4,616,883 7,396,311 5,025,258 2,375,345 2011 $ Fiscal Year Ended June 30 2010 26,528,313 8,087,710 4,616,439 7,161,299 4,547,360 2,376,988 $ 23,294,495 7,236,247 4,614,791 7,093,742 4,347,555 3,271,181 $ 2009 26,059,970 7,626,073 5,147,106 7,079,354 4,989,415 1,915,604 2008 $ 25,709,468 7,879,424 4,251,787 7,168,780 4,469,202 2,470,314 52,153,600 53,318,109 49,858,011 52,817,522 51,948,975 1,104,771 540,490 381,340 9,564,176 1,615,753 13,206,530 1,039,460 30,095 275,309 12,949,827 380,041 14,674,732 1,445,339 406,924 39,945 11,272,090 245,483 13,409,781 1,180,760 490,311 13,936 9,703,806 419,963 11,808,776 893,081 487,644 396,672 9,301,224 168,958 11,247,579 (38,947,070) $ (38,643,377) $ (36,448,230) $ (41,008,746) $ (40,701,396) Source: The source of this information is the District's financial records. Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown. (Continued) Page 113 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST TEN FISCAL YEARS (Accrual basis of accounting) 2007 Expenses Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Interest on long-term debt Total expenses $ Program Revenues Charges for services: Instruction Operation of non-instructional services Other activities Operating grants and contributions Capital grants and contributions Total program revenues Net (Expense)/Revenue $ 23,883,750 6,857,386 4,205,238 6,646,869 3,909,179 2,472,082 2006 51,744,493 45,687,807 464,385 893,400 611,692 10,200,768 1,919,558 14,089,803 879,457 495,193 794,895 11,522,816 907,143 14,599,504 331,120 427,021 642,762 8,258,209 910,097 10,569,209 166,818 577,371 693,569 7,760,121 374,069 9,571,948 375,346 736,404 25,472 7,247,827 3,978,333 12,363,382 (33,401,450) $(31,317,491) (37,144,989) $ $ 24,696,438 5,814,638 3,439,956 5,579,496 3,753,375 2,403,904 (35,118,598) $ 2003 47,974,504 $ 27,754,626 6,710,373 3,954,825 7,220,285 3,919,381 2,185,003 2004 23,032,089 5,438,937 3,197,895 5,658,572 3,322,950 2,315,705 7,250 42,973,398 (33,884,701) $ Fiscal Year Ended June 30 2005 $ $ 24,152,802 5,184,210 3,052,896 5,752,495 3,247,747 2,266,260 24,463 43,680,873 Source: The source of this information is the District's financial records. (Concluded) Page 114 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS LAST TEN FISCAL YEARS (Accrual basis of accounting) 2012 Net (Expense)/Revenue $ General Revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues Changes in Net Assets (38,947,070) 2011 $ 234,068 1,033,028 20,100,262 21,066,029 42,433,387 $ 3,486,317 Fiscal Year Ended June 30 2010 (38,643,377) $ 555,253 740,321 20,014,552 22,812,014 44,122,140 $ 5,478,763 (36,448,230) 2009 $ 1,068,163 496,342 18,786,249 25,908,953 46,259,707 $ 9,811,477 (41,008,746) 2008 $ (40,701,396) 2,247,298 1,919,784 1,785 24,733,965 20,744,208 47,399,742 20,514,156 22,386,397 45,147,851 $ 4,139,105 $ 6,698,346 Source: The source of this information is the District's financial records. Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown. (Continued) Page 115 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS LAST TEN FISCAL YEARS (Accrual basis of accounting) 2007 Net (Expense)/Revenue $ General Revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues Changes in Net Assets (33,884,701) 2006 $ 10,052,517 (37,144,989) $ 53,330 405 16,219 527,584 542,575 21,645,119 19,860,118 42,645,350 1,612,667 18,639 22,678,252 19,627,660 43,937,218 $ Fiscal Year Ended June 30 2005 $ 5,500,361 (35,118,598) 2004 $ 77,231 46 6,715 609,776 542,064 20,156,625 20,284,894 41,677,351 $ 6,558,753 (33,401,450) 2003 $ (31,317,491) 165,548 133,989 14,395 528,300 461,560 31,354,767 20,075,830 52,734,389 $ 19,332,939 80,863 207,747 7,032 (278,379) 419,319 25,553,011 18,561,843 44,551,436 $ 13,233,945 Source: The source of this information is the District's financial records. Note: The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09. (Concluded) Page 116 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2012 General Fund: Nonspendable Restricted Committed Assigned Unassigned Reserved Unreserved Total General Fund All Other Governmental Funds: Nonspendable Restricted Committed Assigned Unassigned Reserved Unreserved, reported in: Special revenue funds Capital projects funds Debt service fund Total all other governmental funds $ 1,634,165 2011 $ 29,131,148 Fiscal Year Ended June 30 2010 2009 2008 1,068,752 33,837,103 $ $ 30,765,313 $ 34,905,855 $ 6,733,173 $ 8,447,713 $ 1,548,740 23,679,056 25,227,796 $ $ $ 1,002,398 16,158,050 17,160,448 $ 922,585 16,015,304 16,937,889 $ 118,045 $ 148,171 $ 9,946,050 18,233,022 8,659 28,305,776 $ 10,533,882 16,886,394 8,360 27,576,807 (2,045) $ $ 6,733,173 $ 8,445,668 $ 10,416,864 19,742,178 8,848 30,167,890 (Continued) Page 117 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2007 General Fund: Reserved Unreserved Total General Fund All Other Governmental Funds: Reserved Unreserved, reported in: Special revenue funds Capital projects funds Debt service fund Total all other governmental funds $ 2006 $ $ 1,443,520 13,038,443 14,481,963 $ 132,126 $ 5,841,763 19,966,352 7,937 25,948,178 2005 $ $ 1,038,356 12,818,611 13,856,967 $ 69,459 $ 6,036,012 16,140,526 7,541 22,253,538 2004 $ $ 1,322,653 13,710,420 15,033,073 $ 54,459 $ 4,943,448 26,181,960 7,041 31,186,908 2003 $ $ 1,571,211 16,525,339 18,096,550 $ 1,530,884 11,181,440 12,712,324 $ 70,124 $ 69,901 $ 4,123,437 32,448,407 6,152 36,648,120 $ 3,391,445 35,486,910 (22,137) 38,926,119 Source: The source of this information is the District's financial records. Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011. The standard replaces the previous reserved and unreserved fund balance categories with the following five fund balance classifications: nonspendable, restricted, committed, assigned, and unassigned fund balance. (Concluded) Page 118 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2012 Federal sources: Federal grants Impact Aid National School Lunch Program Total federal sources State sources: State equalization assistance State grants School Facilities Board Other revenues Total state sources Local sources: Property taxes County aid Food service sales Investment income Other revenues Total local sources Total revenues $ $ 8,629,642 21,196,553 1,913,550 31,739,745 2011 $ Fiscal Year Ended June 30 2010 11,366,975 22,526,302 1,939,131 35,832,408 $ 11,957,176 23,149,114 2,173,785 37,280,075 2009 $ 8,568,868 22,386,397 1,260,005 32,215,270 2008 $ 7,198,780 20,744,208 1,748,798 29,691,786 19,024,581 242,165 18,985,864 72,604 17,933,121 133,060 19,250,753 277,059 1,075,681 20,342,427 1,028,688 20,087,156 1,065,145 19,131,326 1,263,403 20,791,215 21,986,833 346,813 1,034,180 2,169,859 25,537,685 1,033,028 361,541 234,068 1,929,108 3,557,745 55,639,917 740,321 245,544 555,253 1,336,190 2,877,308 58,796,872 496,342 260,509 1,068,163 1,645,090 3,470,104 59,881,505 295,063 2,247,298 1,389,944 3,932,305 56,938,790 1,785 304,605 1,919,784 1,472,792 3,698,966 58,928,437 $ $ $ $ (Continued) Page 119 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2007 Federal sources: Federal grants Impact aid National School Lunch Program Total federal sources State sources: State equalization assistance State grants School Facilities Board Other revenues Total state sources Local sources: Property taxes County aid Food service sales Investment income Other revenues Total local sources Total revenues $ 10,498,552 19,627,660 1,793,447 31,919,659 2006 $ 20,689,525 275,374 $ 9,632,507 19,860,118 1,667,999 31,160,624 2005 $ 7,242,697 20,284,894 1,707,952 29,235,543 2004 $ 6,666,778 19,619,398 1,740,816 28,026,992 2003 $ 9,460,255 18,561,843 1,607,678 29,629,776 1,531,820 22,496,719 19,258,463 269,065 395,456 1,991,200 21,914,184 17,777,823 202,385 1,172,214 1,380,606 20,533,028 21,238,635 250,519 8,886,858 1,129,448 31,505,460 19,301,987 126,723 5,081,145 1,168,913 25,678,768 18,639 363,893 1,612,667 1,605,584 3,600,783 58,017,161 69,954 542,575 373,738 527,584 1,795,807 3,309,658 56,384,466 83,992 542,064 325,948 609,776 1,074,955 2,636,735 52,405,306 313,932 461,560 360,732 528,300 1,077,026 2,741,550 62,274,002 295,642 419,319 325,101 (278,379) 827,537 1,589,220 56,897,764 $ $ $ $ Source: The source of this information is the District's financial records. Note: The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09. (Concluded) Page 120 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2012 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Debt service Principal retirement Interest, premium and fiscal charges Total expenditures Expenditures for capitalized assets Debt service as a percentage of noncapital expenditures 2011 Fiscal Year Ended June 30 2010 2009 2008 $ 21,232,415 5,879,954 4,153,230 7,217,734 3,842,214 2,302,633 17,430,187 $ 21,188,007 6,869,327 3,971,182 6,023,825 3,375,917 2,283,739 24,765,488 $ 19,274,183 6,202,408 3,889,015 7,100,098 3,246,882 3,156,612 7,510,602 $ 20,958,013 6,552,546 3,949,940 6,554,868 3,224,531 1,852,785 12,944,266 $ 20,391,697 6,935,252 3,472,751 6,263,253 3,342,943 2,464,144 11,468,952 $ 62,058,367 $ 68,477,485 $ 50,379,800 $ 56,036,949 $ 54,338,992 $ 15,263,221 $ 21,382,259 $ 5,993,817 $ 9,116,549 $ 9,005,615 0% 0% 0% 0% 0% Source: The source of this information is the District's financial records. Notes: (Continued) Page 121 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2007 2006 Fiscal Year Ended June 30 2005 Expenditures: Current Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Debt service Principal retirement Interest, premium and fiscal charges Total expenditures $ 54,165,356 $ 66,224,645 $ 60,665,772 Expenditures for capitalized assets $ 9,781,537 $ 19,417,551 $ 19,852,537 Debt service as a percentage of noncapital expenditures $ 20,104,678 6,755,172 3,576,670 6,724,061 3,131,400 2,489,086 11,384,289 0% $ 19,307,233 6,490,543 3,374,601 6,621,443 2,953,990 2,106,071 25,370,764 0% $ 18,436,250 5,671,312 2,788,458 4,986,792 2,923,795 2,327,662 23,531,503 0% $ 2004 2003 18,027,945 5,358,443 2,715,783 5,321,751 2,634,590 2,300,246 22,742,317 $ 17,478,822 5,113,923 2,825,397 5,958,469 2,500,604 2,271,554 17,108,878 $ 100,000 7,250 59,208,325 $ 265,000 24,463 53,547,110 $ 20,241,392 $ 14,310,077 0% 1% Source: The source of this information is the District's financial records. (Concluded) Page 122 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting) 2012 Excess (deficiency) of revenues over expenditures $ Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Changes in fund balances (6,418,450) 2011 $ 308,481 (308,481) $ (6,418,450) $ Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Changes in fund balances 3,851,805 $ 3,851,805 $ (9,680,613) (9,840,179) $ (9,840,179) 9,501,705 2009 $ 7,442,128 (7,442,128) $ 9,501,705 $ (8,260,466) $ (8,260,466) $ 901,841 $ 3,065,677 $ 3,065,677 4,589,445 2003 $ 10,961,474 (10,961,474) $ 4,589,445 10,397,129 (10,397,129) 2004 8,228,521 (8,228,521) $ 901,841 2008 12,368,284 (12,368,284) 2005 12,799,053 (12,799,053) Source: The source of this information is the District's financial records. Page 123 $ 2006 11,996,405 (11,996,405) $ (9,680,613) 550,441 (550,441) 2007 Excess (deficiency) of revenues over expenditures Fiscal Year Ended June 30 2010 3,350,654 11,195,626 (11,195,626) $ 3,350,654 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Ended June 30 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Real Property Residential Commercial Property Property $ 118,454 140,602 152,836 $ 77,843 81,919 93,153 Less: Tax Exempt Real Property Personal Property $ 2,774,178 2,916,967 3,106,812 $ 134,031 165,590 187,003 Total Taxable Assessed Valuation $ 2,836,444 2,973,898 3,165,798 3,555,549 3,697,005 3,640,028 3,630,894 3,450,796 3,636,478 3,848,000 Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue. Note: Total taxable assessed valuation is displayed by major component beginning with fiscal year ended June 30, 2010. Page 124 Total Direct Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.81 6.31 Estimated Actual Value $ 15,444,627 15,686,431 16,073,665 15,942,754 15,911,121 15,249,511 14,889,664 14,164,193 14,910,952 15,718,238 Ratio of Net Assessed to Estimated Actual Value 18.37 18.96 19.70 22.30 23.24 23.87 24.39 24.36 24.39 24.48 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Overlapping Rates Fiscal Year Ended State June 30 Equalization 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 0.43 0.36 0.33 County 2.69 2.61 2.60 2.37 2.42 2.19 2.79 2.51 2.26 2.08 Fire District 0.07 0.08 0.08 0.09 0.09 0.08 0.06 0.00 0.06 0.00 Flood Control District Library District Primary Secondary 0.12 0.02 0.02 0.07 0.09 0.10 0.10 0.10 0.00 0.00 0.38 0.40 0.44 0.42 0.50 0.36 0.30 0.25 0.24 0.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.81 6.31 District Direct Rates Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.81 6.31 Source: The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation. Page 125 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 PRINCIPAL PROPERTY TAXPAYERS CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR 2012 Secondary Assessed Valuation Taxpayer Navajo Communications Company Arizona Public Service Company Total Rental Care, Inc. Coca-Cola Bottling of Northern Arizona Giant Corners, Inc. White Dove, Inc. Basha's #33 All Others Total $ $ 1,344,475 1,145,923 110,621 56,729 51,056 42,547 39,710 45,383 2,836,444 2003 Percentage of District's Net Assessed Valuation 47.4 % 40.4 3.9 2.0 1.8 1.5 1.4 1.6 100.0 % Source: The source of this information is the Apache County Assessor's records. Page 126 Secondary Assessed Valuation $ $ 1,823,952 1,554,592 150,072 76,960 69,264 57,720 53,872 61,568 3,848,000 Percentage of District's Net Assessed Valuation 47.4 % 40.4 3.9 2.0 1.8 1.5 1.4 1.6 100.0 % CHINLE UNIFIED SCHOOL DISTRICT NO. 24 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected within the Fiscal Year of the Levy Fiscal Year Ended June 30 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Taxes Levied for the Fiscal Year $ -0-0-0-0-0-0-0-0117,150 185,825 Amount $ -0-0-0-0-0-0-0-0117,150 185,825 Percentage of Levy N/A % $ N/A N/A N/A N/A N/A N/A N/A 100.00 100.00 Collected to the End of the Current Fiscal Year Collections in Subsequent Fiscal Years -0-0-0-0-0-0-0-0-0-0- Amount $ -0-0-0-0-0-0-0-0117,150 185,825 Source: The source of this information is the Apache County Treasurer's records. Notes: 1) Amounts collected are on a cash basis. 2) Unsecured personal property taxes are not included in this schedule because the dates of the monthly rolls vary each year. On the average, 90% of unsecured property taxes are collected within 90 days after the due date. 3) N/A indicates that there were no tax levies during that year. Page 127 Percentage of Levy N/A % N/A N/A N/A N/A N/A N/A N/A 100.00 100.00 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year Ended June 30 2012 $ 2011 2010 2009 2008 2007 2006 2005 2004 2003 General Obligation Bonds -0$ -0-0-0-0-0-0-0100,000 365,000 General Obligation Bonds Less: Amounts Percentage of Restricted for Estimated Principal Total Actual Value -0$ -0-0-0-0-0-0-0100,000 265,000 -0-0-0-0-0-0-0-0-0100,000 -0- % -0-0-0-0-0-0-0-00.64 Source: The source of this information is the District's financial records. Page 128 Per Capita $ -0-0-0-0-0-0-0-0-01 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2012 Debt Outstanding Governmental Unit Apache County Subtotal, Overlapping Debt $ 3,980,000 Estimated Percentage Applicable to School District 0.85 % Estimated Amount Applicable to School District $ Direct: Chinle Unified School District No. 24 Total Direct and Overlapping Debt 33,830 33,830 -0$ 33,830 Source: The source of this information is the District's records and the State and County Abstract of the Assessment Roll, Arizona Department of Revenue and the applicable governmental unit. Notes: 1) Estimated percentage of debt outstanding applicable to the District is calculated based on the District's secondary assessed valuation as a percentage of the secondary assessed valuation of the overlapping jurisdiction. 2) Outstanding debt as of June 30, 2011 is presented for the overlapping governments as this is the most recent available information. Page 129 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Class B Bond Legal Debt Margin Calculation for Fiscal Year 2012: Secondary assessed valuation $ 2,836,444 Debt limit (10% of assessed value) 283,644 Debt applicable to limit -0Legal debt margin $ 283,644 Total Legal Debt Margin Calculation for Fiscal Year 2012: Secondary assessed valuation $ 2,836,444 Debt limit (30% of assessed value) 850,933 Debt applicable to limit -0Legal debt margin $ 850,933 2012 Total Debt limit $ 850,933 Total net debt applicable to limit Legal debt margin 2011 $ 850,933 Total net debt applicable to the limit as a percentage of debt limit $ Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit 892,169 -0- $ $ 1,092,008 $ -0- 949,739 $ 1,089,268 $ -0- 1,066,665 -0$ 1,035,239 -0- 1,109,102 -0- 2004 1,035,239 1,109,102 -0- $ -0$ $ -0- 2005 1,089,268 2008 1,066,665 -0- -0$ $ 2009 -0- 2006 1,092,008 949,739 -0- -0$ $ -0- 2007 Debt limit 892,169 -0$ Fiscal Year Ended June 30 2010 2003 1,090,943 $ -0$ 1,090,943 -0- 1,154,400 100,000 $ 1,054,400 9% Source: The source of this information is the District's financial records. Notes: 1) The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds and the statutory debt limit on Class B bonds. The calculations of the debt margins are presented in detail for the current fiscal year only. 2) Bond premium is not subject to the statutory debt limit. Page 130 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Year Population 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 71,991 71,685 72,024 72,030 71,901 71,456 71,243 69,738 69,165 69,073 Personal Income (thousands) $ 1,869,162 1,761,037 1,643,675 1,441,307 1,377,644 1,297,112 1,206,457 1,130,902 1,072,771 1,047,472 Per Capita Income $ 26,093 24,947 23,643 20,689 19,826 18,637 17,524 16,476 16,457 14,802 Unemployment Rate 18.9 17.1 15.7 11.3 8.5 9.8 10.5 11.4 11.8 10.9 % Estimated District Population 45,254 44,367 43,518 42,664 41,828 41,008 40,204 39,416 23,887 22,780 Sources: The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis. The source of the "Population" and "Unemployment Rate" information is the Arizona Office of Employment and Population Statistics. Page 131 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 PRINCIPAL EMPLOYERS CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR 2003 2012 Employer Chinle Indian Hospital Chinle Unified School District No. 24 State of Arizona Navajo Nation Governments Bureau of Indian Affairs Dine' College Bashas Navajo Tribal Utilitiy Authority Thunderbird Lodge Canyon De Chelly Motel, Inc. Holiday Inn Total Total employment Employees 922 621 545 520 520 225 85 70 45 22 30 3,605 21,503 Percentage of Total Employment 4.29 2.89 2.53 2.42 2.42 1.05 0.40 0.33 0.21 0.10 0.14 16.78 Employees % % Percentage of Total Employment 450 700 545 520 520 225 100 70 60 35 40 3,265 21,081 Source: The source of this information is District records and the Navajo Nation Economic Development Department. Page 132 2.13 % 3.32 2.59 2.47 2.47 1.07 0.47 0.33 0.28 0.17 0.19 15.49 % CHINLE UNIFIED SCHOOL DISTRICT NO. 24 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE LAST TEN FISCAL YEARS Full-time Equivalent Employees as of June 30 2011 2010 2009 2012 Supervisory (Certified) Superintendent, Principals, and other administrators Total supervisory Instruction Teachers Aides Total instruction Support and Administration Managers, Supervisors, Directors and other Support Staff Total support staff Total 2008 22 22 14 14 15 15 15 15 15 15 247 49 296 251 51 302 282 69 351 294 76 370 294 76 370 214 214 219 219 205 205 245 245 245 245 532 535 571 630 630 (Continued) Page 133 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE LAST TEN FISCAL YEARS 2007 Supervisory Principals Other administrators Total supervisory Instruction Teachers Aides Total instruction Support and Administration Food Service workers Other classified Total support and administration Total 2006 2005 2004 2003 19 19 19 19 19 19 19 19 20 20 267 104 371 277 104 381 277 104 381 282 104 386 305 104 409 273 273 268 268 266 266 266 266 272 272 663 668 666 671 701 Source: The source of this information is District personnel records. (Concluded) Page 134 CHINLE UNIFIED SCHOOL DISTRICT NO. 24 OPERATING STATISTICS LAST TEN FISCAL YEARS Fiscal Year Ended June 30 Average Daily Membership 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 3,530 3,629 3,664 3,542 3,489 3,625 3,733 3,703 3,847 4,002 Operating Expenditures $ 44,628,180 43,711,997 42,869,198 43,092,683 42,870,040 42,781,067 40,853,881 37,134,269 36,358,758 36,148,769 Cost per Pupil $ 12,643 12,045 11,700 12,166 12,287 11,802 10,944 10,028 9,451 9,033 Percentage Change 4.96 % 2.95 (3.83) (0.98) 4.11 7.84 9.13 6.10 4.63 6.37 Expenses $ 52,153,600 53,318,109 49,858,011 52,817,522 51,948,975 47,974,504 51,744,493 45,687,807 42,973,398 43,680,873 Source: The source of this information is the District's financial records. Notes: 1) Operating expenditures are total expenditures less debt service and capital outlay. 2) N/A indicates that the information is not available. Page 135 Cost per Pupil $ 14,774 14,692 13,608 14,912 14,889 13,234 13,861 12,338 11,171 10,915 Percentage Change 0.56 % 7.97 (8.75) 0.15 12.51 (4.52) 12.35 10.45 2.34 N/A Teaching Staff PupilTeacher Ratio 296 302 351 370 370 371 381 381 386 409 11.9 12.0 10.4 9.6 9.4 9.8 9.8 9.7 10.0 9.8 Percentage of Free/Reduced Students 81.6 81.5 81.5 76.5 80.7 80.7 81.6 80.0 80.0 84.0 % CHINLE UNIFIED SCHOOL DISTRICT NO. 24 CAPITAL ASSETS INFORMATION LAST TEN FISCAL YEARS 2012 2011 2010 2009 Fiscal Year Ended June 30 2008 2007 2006 2005 2004 2003 Schools Elementary Buildings Square feet Capacity Enrollment SF/Student 14 351,019 3,000 2,048 171 14 351,019 3,000 2,048 171 14 351,019 3,000 2,048 171 14 351,019 3,000 2,048 171 14 351,019 3,000 2,048 171 14 351,019 3,000 2,048 171 14 351,019 3,000 2,002 175 14 351,019 3,000 2,043 172 14 351,019 3,000 2,192 160 17 290,523 2,600 2,322 125 Middle Buildings Square feet Capacity Enrollment SF/Student 6 138,479 900 467 296 6 138,479 900 467 296 6 115,521 900 467 247 6 115,521 900 467 247 6 115,521 900 467 247 6 115,521 900 467 247 6 115,521 900 643 180 6 115,521 900 708 163 6 115,521 900 700 165 6 115,521 900 706 164 High Buildings Square feet Capacity Enrollment SF/Student 16 378,153 1,300 1,200 339 16 378,153 1,300 1,200 339 15 376,663 1,300 1,200 339 15 376,663 1,300 1,200 339 15 376,663 1,300 1,110 339 15 376,663 1,300 1,110 339 15 376,663 1,300 1,088 346 13 227,243 1,400 1,098 207 18 272,512 1,400 1,129 241 17 256,568 1,400 1,176 218 Other Buildings Square feet 9 65,331 9 65,331 9 65,331 9 65,331 9 65,331 9 65,331 9 65,331 9 65,331 16 75,895 16 75,895 Administrative Buildings Square feet 8 53,554 8 53,554 7 48,319 7 48,319 7 48,319 7 48,319 6 19,797 6 19,797 6 19,797 6 19,797 Transportation Garages Buses Square feet 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 80 29,120 2 79 29,120 4 4 2 8 1 6 4 4 2 8 1 6 3 3 2 6 1 6 3 3 2 6 1 6 3 3 2 6 1 6 3 3 2 6 1 6 3 2 2 6 1 6 3 2 2 6 0 6 3 2 2 6 0 6 3 2 2 6 0 6 Athletics Football fields Soccer fields Running tracks Baseball/softball Swimming pools Playgrounds Source: The source of this information is the District's facilities records. 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