palominas elementary school district no. 49
Transcription
palominas elementary school district no. 49
PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2012 10385 East Highway 92 – P. O. Box 38 ▪ Hereford, Arizona 85615 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 HEREFORD, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Issued by: Business and Finance Department PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal i Organizational Chart v List of Principal Officials vi 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 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 46 Note to Required Supplementary Information 47 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds: Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 52 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 53 Special Revenue Funds: Combining Balance Sheet 56 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 62 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 66 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 88 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 90 Agency Funds: Combining Statement of Fiduciary Assets and Liabilities 98 Combining Statement of Changes in Fiduciary Assets and Liabilities 99 STATISTICAL SECTION Financial Trends: Net Assets by Component 103 Expenses, Program Revenues, and Net (Expense)/Revenue 104 General Revenues and Total Changes in Net Assets 105 Fund Balances – Governmental Funds 106 Governmental Funds Revenues 107 Governmental Funds Expenditures and Debt Service Ratio 108 Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 109 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 TABLE OF CONTENTS (Concl’d) STATISTICAL SECTION (Concl’d) Page Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 110 Direct and Overlapping Property Tax Rates 111 Principal Property Taxpayers 112 Property Tax Levies and Collections 113 Debt Capacity: Direct and Overlapping Governmental Activities Debt 114 Legal Debt Margin Information 115 Demographic and Economic Information: County-Wide Demographic and Economic Statistics 116 Principal Employers 117 Operating Information: Full-Time Equivalent District Employees by Type 118 Operating Statistics 119 Capital Assets Information 120 (This page intentionally left blank) INTRODUCTORY SECTION (This page intentionally left blank) Palominas School District #49 Dr. Steve Poling, Superintendent December 17, 2012 Citizens and Governing Board Palominas Elementary School District No. 49 P. O. Box 38 Hereford, AZ 85615 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 Palominas Elementary School District No. 49 (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. Educating the whole child with high expectations in a positive, community-based climate. 10391 East Highway 92 Hereford, Arizona 85615 (520) 366-6204 (520) 366-5717 fax 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 24 public school districts located in Cochise County, Arizona. It provides a program of public education from kindergarten through grade eight, with an estimated average daily membership of 1,100 students. 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 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 and food services, technology, and athletic functions. ii 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. Palominas Elementary School District No. 49 is located about 90 miles southeast of Tucson, Arizona in Hereford, Arizona in southwestern Cochise County. Palominas School District is a rural school district serving the communities between Sierra Vista, Tombstone, and Bisbee. The District encompasses 192 square miles. The District has three excellent schools to meet the educational needs of the community. After educating students in grades pre-kindergarten through eighth grade, Palominas School District sends students to one of three local high schools at the choice of the family: Buena High School, Tombstone High School, or Bisbee High School. The District has a long history of high quality education and high standards for student behavior. Palominas is among the highest rated school districts in the State of Arizona. In 2012, the Arizona Department of Education rated the Palominas School District as an ‘A’ school district based on student academic performance. Palominas School District has award-winning teachers with recent honorees being the finalist for 2012 Cochise County Teacher of the Year and 2011 winner of Cochise County Teacher of the Year. 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. Palominas School District is located in a rural area that supports the local economies of Bisbee, Tombstone, and Sierra Vista. The District has very few businesses located within the District boundaries and is mostly comprised of wide-open spaces, ranches, and singlefamily homes on four acre lots. The District is the major employer within the District boundaries. Long-term Financial Planning Palominas School District is in the process of conducting energy audits in order to evaluate the energy needs of the District. The plan is to develop a comprehensive energy plan and upgrade equipment in order to improve efficiencies in this area. In August of 2012, the District completed a major project of overhauling the septic systems on the campus of Palominas School. The District is in the process of evaluating needs and upgrading equipment and services for Technology and Transportation departments. iii The District takes great care of all that is entrusted to it for educating the students. The District follows a plan approved by the State Facilities Board for preventative maintenance in order to keep buildings and grounds functioning for the students and staff. The District is striving to fulfill their vision of “Educating the whole child with high expectations in a positive, community-based climate.” The District is working toward adopted goals of increasing student achievement, transitioning to the Common Core Standards, and increasing technology usage with students and staff in order to prepare students for a 21st century global society. Student attendance has remained relatively stable in recent years. The District does have some space for student growth as well as land available to build additional classrooms and/or school sites. ACKNOWLEDGMENT 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, Steve Poling, Ed.D. Superintendent Sharon Flores Business Manager iv Organizational Chart Palominas Elementary School District No. 49 Fiscal year 2011-12 v PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 LIST OF PRINCIPAL OFFICIALS GOVERNING BOARD Martie Payne President Carolyn Calderon Clerk Bo Hall Member Vicky Pickett Member Sheila Ritter Member ADMINISTRATIVE STAFF Steve Poling, Ed.D. Superintendent Sharon Flores Business Manager vi FINANCIAL SECTION (This page intentionally left blank) 3033 N. Central Ave., Suite 300 Phoenix, Arizona 85012 Tel (602) 277-9449 Fax (602) 277-9297 INDEPENDENT AUDITORS’ REPORT Governing Board Palominas Elementary School District No. 49 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Palominas Elementary School District No. 49 (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 Palominas Elementary School District No. 49, as of June 30, 2012, and the respective changes in financial position 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 17, 2012, on our consideration of Palominas Elementary School District No. 49’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 14 and budgetary comparison information on pages 46 and 47 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 17, 2012 Page 2 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) Page 3 (This page intentionally left blank) Page 4 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 As management of the Palominas Elementary School District No. 49 (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 $441,552 which represents a 4 percent increase from the prior fiscal year. General revenues accounted for $10.0 million in revenue, or 87 percent of all current fiscal year revenues. Program specific revenue in the form of charges for services and grants and contributions accounted for $1.4 million or 13 percent of total current fiscal year revenues. The District had approximately $11.0 million in expenses related to governmental activities, an increase of less than one percent from the prior fiscal year. Among major funds, the General Fund had $8.8 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $8.9 million in expenditures. The General Fund’s fund balance decrease from $1.4 million at the prior fiscal year end to $1.3 million at the end of the current fiscal year was primarily due to a 14 percent reduction in state equalization assistance from the prior fiscal year. The Building Renewal Grant Fund had $398,068 in state revenue and capital outlay expenditures as a result of construction on the District’s septic system funded by the School Facilities Board. 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. Page 5 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Cont’d) 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. 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., uncollected taxes and earned but unused compensated absences). The government-wide financial statements outline functions of the District that are principally supported by property taxes and 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. Page 6 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Concl’d) 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 decisions. 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. 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, Unrestricted Capital Outlay, and Building Renewal Grant Funds, all 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, the 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 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 $11.8 million at the current fiscal year end. Page 7 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) The largest portion of the District’s net assets reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, and vehicles, furniture and equipment.) The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. The District does not have any debt related to the acquisition of capital assets. 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 assets Capital assets, net Total assets, net Current liabilities Long-term liabilities Total liabilities Net assets: Invested in capital assets Restricted Unrestricted Total net assets As of June 30, 2012 $ 3,802,764 8,869,477 12,672,241 As of June 30, 2011 $ 3,225,108 8,813,478 12,038,586 698,651 174,206 872,857 493,990 186,764 680,754 8,869,477 1,480,296 1,449,611 $ 11,799,384 8,813,478 1,150,811 1,393,543 11,357,832 $ 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 result of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions that had an impact on the Statement of Net Assets. The addition of $523,160 in capital assets through school improvements and purchases of vehicles, furniture and equipment. The addition of $464,106 in accumulated depreciation. The increase of $232,247 in cash and investments was primarily due to revenues unexpended as of year end. Page 8 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $11.4 million. The total cost of all programs and services was $11.0 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: Property taxes Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total revenues 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 Net assets, ending Page 9 Fiscal Year Ended June 30, 2012 Fiscal Year Ended June 30, 2011 $ $ 231,355 1,122,047 91,728 3,069,801 11,215 349,435 6,481,897 37,677 11,395,155 $ $ 156,378 1,016,864 11,742 3,058,169 4,489 295,710 6,820,908 157,792 11,522,052 6,890,484 6,706,912 811,637 820,270 944,308 1,001,527 1,034,670 1,047,638 889,187 1,032,257 344,295 344,999 10,953,603 10,914,581 607,471 441,552 $ 11,357,832 10,750,361 11,799,384 $ 11,357,832 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) Expenses $7 $6 Millions $5 $4 $3 $2 $1 $0 FY2011-12 FY2010-11 The following are significant current year transactions that have had an impact on the change in net assets. The $339,011 decrease in unrestricted state aid was due to state-wide budget cuts. The decrease of $120,115 of unrestricted federal aid was primarily due to the District no longer receiving state Fiscal Stabilization monies under the American Recovery and Reinvestment Act (ARRA) of 2009. The $143,070 increase in student transportation services was due to an increase to hourly wages for transportation workers as well as an increase in fuel prices. Page 10 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl’d) 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. Year Ended June 30, 2012 Total Net (Expense)/ Expenses Revenue Instruction $ 6,706,912 $ (5,816,832) Support services – students and staff 820,270 (750,011) Support services – administration 1,001,527 (984,184) Operation and maintenance of plant services 1,047,638 (949,499) Student transportation services 1,032,257 (1,032,257) Operation of non-instructional services 344,999 24,310 Total $ 10,953,603 $ (9,508,473) Year Ended June 30, 2011 Total Net (Expense)/ Expenses Revenue $ 6,890,484 $ (6,204,217) 811,637 (714,554) 944,308 (933,507) 1,034,670 (972,445) 889,187 (889,187) 344,295 (15,687) $ 10,914,581 $ (9,729,597) The cost of all governmental activities this year was $11.0 million. Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $1.4 million. Net cost of governmental activities of $9.5 million was financed by general revenues, which are made up of primarily property taxes of $3.1 million and state and county aid of $6.8 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 $2.9 million, an increase of $242,361. Page 11 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS (Concl’d) The General Fund comprises 45 percent of the total fund balance. Approximately $1.3 million, or 97 percent of the General Fund’s fund balance constitutes unassigned fund balance. The General Fund is the principal operating fund of the District. The decrease in fund balance of $74,379 to $1.3 million as of fiscal year end was a result of a 14 percent reduction in state equalization assistance. General Fund revenues decreased $1.1 million and General Fund expenditures decreased $58,160. Revenues in the Unrestricted Capital Outlay Fund increased $101,930 as a result of an increase in the allocation of property taxes to the fund compared to the prior fiscal year. The Building Renewal Grant Fund, a new fund, had state aid and grants and capital outlay expenditures of $398,068 as a result of a construction project on the District's septic system which was funded by the School Facilities Board. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for state-wide budget cuts and a reduction in student attendance. The difference between the original budget and the final amended budget was a $76,561 decrease, or 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 unfavorable variance of $63,377 in student transportation services was a result of an increase to hourly wages in the transportation department. Page 12 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $16.4 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 $508,302 from the prior fiscal year. Total depreciation expense for the current fiscal year was $464,106. 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 As of June 30, 2012 $ 380,027 8,489,450 $ 8,869,477 As of June 30, 2011 $ 380,027 8,433,451 $ 8,813,478 Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year end, the District had no outstanding debt. 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: Reduced District student population. Cuts to the state budget. 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 3 percent to $8.7 million in fiscal year 2012-13. State aid and property taxes are expected to be the primary funding sources. Page 13 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 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, Palominas Elementary School District No. 49, P. O. Box 38, Hereford, Arizona 85615. Page 14 BASIC FINANCIAL STATEMENTS Page 15 (This page intentionally left blank) Page 16 GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 17 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 STATEMENT OF NET ASSETS JUNE 30, 2012 Governmental Activities ASSETS Current assets: Cash and investments Property taxes receivable Due from governmental entities Deposits Total current assets $ Noncurrent assets: Land Land improvements Buildings and improvements Vehicles, furniture and equipment Accumulated depreciation Total noncurrent assets Total assets 1,053,726 223,312 2,518,373 7,353 3,802,764 380,027 1,227,772 10,726,324 4,055,383 (7,520,029) 8,869,477 12,672,241 LIABILITIES Current liabilities: Accounts payable Construction contracts payable Accrued payroll and employee benefits Compensated absences payable Unearned revenues Total current liabilities 50,213 287,157 298,347 50,500 62,934 749,151 Noncurrent liabilities: Non-current portion of long-term obligations Total noncurrent liabilities Total liabilities 123,706 123,706 872,857 NET ASSETS Invested in capital assets Restricted for: Federal and state projects Food service Other local initiatives Capital outlay Unrestricted Total net assets 8,869,477 $ 338,633 149,566 175,466 816,631 1,449,611 11,799,384 The notes to the basic financial statements are an integral part of this statement. Page 18 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ $ 6,706,912 $ 820,270 1,001,527 1,047,638 1,032,257 344,999 10,953,603 $ Operating Grants and Contributions 66,619 $ Capital Grants and Contributions 731,733 $ 70,259 17,343 40,130 58,009 124,606 231,355 $ 244,703 1,122,047 $ Governmental Activities 91,728 $ (949,499) (1,032,257) 24,310 (9,508,473) 91,728 General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for capital outlay Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues 2,981,453 88,348 11,215 349,435 6,481,897 37,677 9,950,025 441,552 Changes in net assets 11,357,832 Net assets, beginning of year Net assets, end of year The notes to the basic financial statements are an integral part of this statement. Page 19 (5,816,832) (750,011) (984,184) $ 11,799,384 (This page intentionally left blank) Page 20 FUND FINANCIAL STATEMENTS Page 21 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2012 General ASSETS Cash and investments Property taxes receivable Due from governmental entities Due from other funds Deposits Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Due to other funds Accrued payroll and employee benefits Deferred revenues Total liabilities $ Unrestricted Capital Outlay Building Renewal Grant $ 169,039 6,489 80,481 426,674 $ 682,683 $ 216,823 1,967,880 $ 2,184,703 $ $ 41,479 $ 287,162 $ 34,112 1,251,863 1,285,975 $ 2,184,703 $ 4,767 4,767 287,157 677,916 5 677,916 5 682,683 The notes to the basic financial statements are an integral part of this statement. Page 22 287,157 287,157 426,674 266,379 164,196 898,728 Fund balances (deficits): Restricted Assigned Unassigned Total fund balances Total liabilities and fund balances 5 $ 287,162 Non-Major Governmental Funds Total Governmental Funds $ 884,682 $ $ 182,855 19,604 7,353 1,094,494 $ $ 8,734 $ $ 1,053,726 223,312 2,518,373 446,278 7,353 4,249,042 19,604 31,968 114,051 174,357 50,213 287,157 446,278 298,347 283,014 1,365,009 746,491 173,717 (71) 920,137 1,424,412 207,829 1,251,792 2,884,033 1,094,494 Page 23 $ 4,249,042 (This page intentionally left blank) Page 24 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Total governmental fund balances $ 2,884,033 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 $ 16,389,506 (7,520,029) 8,869,477 Some revenues will not be available to pay for current period expenditures and, therefore, are deferred in the funds. Property taxes Intergovernmental 168,963 51,117 220,080 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Compensated absences payable Net assets of governmental activities The notes to the basic financial statements are an integral part of this statement. Page 25 (174,206) $ 11,799,384 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 General Revenues: Other local Property taxes 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 Building Renewal Grant $ $ 12,461 83,339 230,645 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): 398,068 326,445 398,073 8,897,185 88,442 88,442 398,068 398,068 (84,591) 238,003 5 (74,379) 238,003 5 1,360,354 439,913 10,212 10,212 Changes in fund balances Fund balances, beginning of year $ 1,285,975 $ 677,916 The notes to the basic financial statements are an integral part of this statement. Page 26 5 5,365,491 733,103 931,147 895,529 958,536 13,379 Excess (deficiency) of revenues over expenditures Fund balances, end of year 359,807 2,866,628 5,535,478 50,681 8,812,594 Unrestricted Capital Outlay $ 5 Non-Major Governmental Funds Total Governmental Funds $ $ 261,913 429 362,034 1,103,033 1,727,409 634,186 2,950,396 6,526,225 1,153,714 11,264,521 953,745 71,864 21,159 19,253 6,075 318,004 248,365 1,638,465 6,319,236 804,967 952,306 914,782 964,611 331,383 734,875 11,022,160 88,944 242,361 10,212 (10,212) (10,212) (10,212) $ Page 27 78,732 242,361 841,405 2,641,672 920,137 $ 2,884,033 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ 242,361 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Expenditures for capitalized assets Less current year depreciation $ 523,160 (464,106) 59,054 119,405 11,229 130,634 Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Intergovernmental Some 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. Loss on disposal of capital assets Compensated absences (3,055) 12,558 Change in net assets in governmental activities The notes to the basic financial statements are an integral part of this statement. Page 28 9,503 $ 441,552 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES JUNE 30, 2012 Agency ASSETS Cash and investments Total assets LIABILITIES Deposits held for others Due to student groups Total liabilities $ $ 41,226 41,226 $ 26,622 14,604 41,226 $ The notes to the basic financial statements are an integral part of this statement. Page 29 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Palominas Elementary School District No. 49 (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 and food services. 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. Page 30 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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. Taxes, 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 revenues 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. 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. However, debt service resources are provided during the current year for payment of long-term debt principal and interest due early in the following year (not to exceed one month) and, therefore, the expenditures and related liabilities have been recognized. Compensated absences are recorded only when payment is due. Page 31 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Property taxes, State and County aid, tuition and investment income associated with the current fiscal period are all considered to be 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. Delinquent property taxes and other 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, National Forest Fees, Taylor Grazing Fees, Impact Aid, School Plant, Auxiliary Operations, and Indirect Costs 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. Unrestricted Capital Outlay Fund – The Unrestricted Capital Outlay Fund accounts for transactions relating to the acquisition of capital items. Building Renewal Grant Fund – The Building Renewal Grant Fund accounts for building renewal grant monies that districts may request from the School Facilities Board. Page 32 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 on 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 and Bond Building Funds 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, including property taxes receivable, are shown net of an allowance for uncollectibles. Page 33 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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. 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 and as expenditures when purchased in the fund financial statements. I. Capital Assets Capital assets, which include land and improvements, buildings and improvements; and vehicles, furniture, and equipment, are reported in the government-wide financial statements. Page 34 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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 10 – 50 years 10 – 50 years 5 – 20 years J. 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 twelve days of sick leave each contract year. Full-time classified employees earn sick leave at the rate of one day per month. In the event of termination, an employee is reimbursed for accrued sick leave at varying rates depending on position of classified or certified and the number of sick days accumulated. All twelve-month classified employees earn vacation; however, accumulated vacation as of June 30 reverts to sick leave on July 1. 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. K. 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. Page 35 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d) L. 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. M. 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. 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. Page 36 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 2 – FUND BALANCE CLASSIFICATIONS (Concl’d) 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 the Business Manager, who has been delegated that authority by the formal Governing Board action. 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. The table below provides detail of the major components of the District’s fund balance classifications at year end. General Fund Fund Balances: Restricted: Capital projects Voter approved initiatives Federal and State projects Food service Other purposes Assigned Capital projects Other purposes Unassigned Total fund balances Page 37 $ Unrestricted Capital Outlay Fund $ Building Renewal Grant Fund 677,916 $ Non-Major Governmental Funds 5 $ 133,943 287,460 56 149,566 175,466 173,717 34,112 1,251,863 $ 1,285,975 $ 677,916 $ 5 $ (71) 920,137 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Individual Deficit Fund Balance – At year end, the Fingerprint Fund, a non-major governmental fund, reported a deficit of $71 in fund balance. The deficit arose because of operations during the year. Additional revenues received in fiscal year 2012-13 are expected to eliminate the deficit. Excess Expenditures Over Budget – At year end, the District had expenditures in a fund that exceeded the budget, 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 $44,226 and the bank balance was $48,786. Page 38 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 4 – CASH AND INVESTMENTS (Concl’d) 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 Average Maturities 2.6 years Fair Value $ 1,050,726 $ 1,050,726 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. Page 39 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 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 Due from other governmental entities: Due from Federal government Due from State government Net due from governmental entities Unrestricted Capital Outlay Fund $ 26,124 $ 1,941,756 $1,967,880 $ Building Renewal Grant Fund Non-Major Governmental Funds $ $ 80,481 287,157 80,481 $ 287,157 $ 120,713 62,142 182,855 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. Delinquent property taxes receivable (General Fund) Delinquent property taxes receivable (Unrestricted Capital Outlay Fund) Grant drawdowns prior to meeting all eligibility requirements (Non-Major Governmental Funds) Measurable but unavailable revenues (Non-Major Governmental Funds) Total deferred revenue for governmental funds Page 40 Unavailable $ 164,196 Unearned $ 4,767 62,934 $ 51,117 220,080 $ 62,934 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 6 – CAPITAL ASSETS A summary of capital asset activity for the current fiscal year follows. Governmental Activities Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Land improvements Buildings and improvements Vehicles, furniture and equipment Total capital assets being depreciated Less accumulated depreciation for: Land improvements Buildings and improvements Vehicles, furniture and equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Beginning Balance $ 380,027 380,027 Increase $ $ 829,704 10,720,628 3,950,845 15,501,177 398,068 5,696 119,396 523,160 (431,793) (3,664,423) (2,971,510) (7,067,726) 8,433,451 $ 8,813,478 $ 380,027 380,027 14,858 14,858 1,227,772 10,726,324 4,055,383 16,009,479 (27,059) (251,955) (185,092) (464,106) (11,803) (11,803) (458,852) (3,916,378) (3,144,799) (7,520,029) 59,054 $ 59,054 3,055 $ 3,055 8,489,450 $ 8,869,477 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 Page 41 Ending Balance Decrease $ 260,553 1,779 14,392 122,256 56,378 8,748 $ 464,106 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 7 – SHORT TERM DEBT – REVOLVING LINE OF CREDIT The District has a revolving line of credit to provide cash flow during the year to mitigate the impact of timing differences of expenditures and the receipt of state aid and property tax revenues. Short-term debt activity for the current fiscal year was as follows. Revolving line of credit Beginning Balance $ Redeemed $ 92,010 Issued $ 92,010 Ending Balance $ NOTE 8 – 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 $ 186,764 $ 82,008 $ 94,566 $ 174,206 $ 50,500 $ 186,764 $ 82,008 $ 94,566 $ 174,206 $ 50,500 NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS At year end, interfund balances were as follows. Due to/from other funds: Due to Unrestricted Capital Outlay Fund Non-Major Governmental Funds Total General Fund $ 426,674 $ 426,674 Due from Non-Major Governmental Funds $ 19,604 $ 19,604 Total 426,674 19,604 $ 446,278 $ 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 other funds. All interfund balances are expected to be paid within one year. Interfund transfers – Transfers between funds of $10,212 were used to move Federal grant funds restricted for indirect costs and to move cash balances remaining in discontinued funds. Page 42 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 10 – 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. Lease-To-Own Agreement– The Arizona schools Facilities Board (SFB) entered into a lease in May 2004 to finance costs of the District’s new school facilities pursuant to A.R.S. 15-2004, 15-2005, and 15-2006. The SFB is required to make all lease payments; however, if the SFB does not make the lease payments, the District has the option to make the payments on behalf of the SFB to ensure the facilities do not revert back to the lessor. NOTE 11 – 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 Arizona School Board Association Insurance Trust (ASBAIT). ASBAIT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to ASBAIT for employees’ health and accident insurance coverage. The agreement provides that ASBAIT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. Page 43 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 12 – 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. The District’s contributions for the current and two preceding years, all of which were equal to the required contributions, were as follows. Health LongBenefit Term Retirement Supplement Disability Fund Fund Fund Year ending June 30: 2012 2011 2010 Page 44 $ 439,809 397,933 372,041 $ 28,800 26,058 29,442 $ 12,203 11,041 17,844 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL (Required Supplementary Information) Page 45 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Revenues: Other local Property taxes State aid and grants 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 Total expenditures Non-GAAP Actual Final $ $ 347,076 2,866,628 5,535,478 8,749,182 Variance with Final Budget Positive (Negative) $ 347,076 2,866,628 5,535,478 8,749,182 5,618,674 738,611 919,659 897,374 864,493 14,750 9,053,561 5,459,937 763,279 927,295 927,602 885,772 13,115 8,977,000 5,233,039 704,530 898,703 881,787 949,149 13,379 8,680,587 226,898 58,749 28,592 45,815 (63,377) (264) 296,413 (9,053,561) (8,977,000) 68,595 9,045,595 5,000 5,000 5,000 5,000 73,595 9,050,595 Fund balances, beginning of year 910,847 910,847 Increase (decrease) in reserve for prepaid items 105,266 105,266 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses): (9,053,561) Changes in fund balances Fund balances (deficits), end of year $ (9,053,561) (8,977,000) $ (8,977,000) See accompanying notes to this schedule. Page 46 $ 1,089,708 $ 10,066,708 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 funds, 2) a portion of fiscal year 2012-13 insurance payments were charged against the fiscal year 2011-12 budget, and 3) 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, increase for prepaid items, 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 2012-13 insurance payments charged against fiscal year 2011-12 budget 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 47 $ 8,897,185 Increase for Prepaid Items $ Fund Balance, June 30, 2012 Fund Balance, July 1, 2011 $ 1,285,975 $ 1,360,354 (196,267) (217,465) (89,822) 105,266 105,266 (232,042) $ 8,680,587 (232,042) $ 105,266 $ 1,089,708 $ 910,847 (This page intentionally left blank) Page 48 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Page 49 (This page intentionally left blank) Page 50 GOVERNMENTAL FUNDS Page 51 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2012 ASSETS Cash and investments Due from governmental entities Due from other funds Deposits Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Accrued payroll and employee benefits Deferred revenues Total liabilities Special Revenue Capital Projects Total NonMajor Governmental Fund $ 578,962 180,915 19,604 7,353 786,834 $ 305,720 1,940 $ $ 307,660 $ 8,734 19,604 31,968 114,051 174,357 $ $ $ Fund balances (deficits): Restricted Assigned Unassigned Total fund balances Total liabilities and fund balances Page 52 612,548 133,943 173,717 (71) 612,477 $ 786,834 $ 307,660 8,734 19,604 31,968 114,051 174,357 746,491 173,717 (71) 920,137 307,660 $ 884,682 182,855 19,604 7,353 1,094,494 $ 1,094,494 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 Property taxes State aid and grants Federal aid, grants and reimbursements Total revenues Special Revenue Capital Projects Total NonMajor Governmental Funds $ $ $ 237,311 362,034 1,103,033 1,702,378 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 24,602 429 25,031 951,817 71,823 21,159 19,253 1,462 318,004 120,795 1,504,313 127,570 134,152 953,745 71,864 21,159 19,253 6,075 318,004 248,365 1,638,465 Excess (deficiency) of revenues over expenditures 198,065 (109,121) 88,944 Other financing sources (uses): Transfers out Total other financing sources (uses): (10,212) (10,212) Changes in fund balances 187,853 (109,121) 78,732 Fund balances, beginning of year 424,624 416,781 841,405 Fund balances, end of year Page 53 $ 612,477 1,928 41 261,913 429 362,034 1,103,033 1,727,409 4,613 (10,212) (10,212) $ 307,660 $ 920,137 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. Structured English Immersion - to account for monies received to provide for the incremental cost of instruction to English language learners. Compensatory Instruction - to account for monies received for programs in addition to normal classroom instruction to improve the English proficiency of current English language learners. Title I Grants - to account 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. Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. Homeless Education - to account for financial assistance received for the needs of homeless children. National Forest Fees - to account for financial assistance from the National Forests with the states in which the National Forests are situated. Taylor Grazing - to account for financial assistance received for the purpose of protecting public lands by preventing over-grazing and soil deterioration and to provide for orderly use, improvement and development, and stabilization of the livestock industry. E-Rate - to account for telecommunication costs. financial assistance received for broadband internet and Impact Aid - to account for financial assistance to local educational agencies that are financially burdened by federal activities. Other Federal Projects - to account for financial assistance received for other supplemental federal projects. Page 54 Early Childhood Block Grant - to account for financial assistance received for preschool education. Chemical Abuse Prevention Programs - to account for financial assistance received for chemical abuse awareness programs. Academic Contests - to account for financial assistance received for participation in academic contests. Gifted - to account for financial assistance received for programs for gifted students. 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 55 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 Classroom Site ASSETS Cash and investments Due from governmental entities Due from other funds Deposits Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Accrued payroll and employee benefits Deferred revenues Total liabilities $ 16,260 42,701 $ 219,851 17,501 $ 12,216 $ 58,961 $ 237,352 $ 12,216 $ Fund balances (deficits): Restricted Unassigned Total fund balances Total liabilities and fund balances Page 56 Structured English Immersion Instructional Improvement $ $ $ 853 8,000 853 8,000 58,108 229,352 58,108 229,352 58,961 $ 237,352 3,219 8,997 12,216 $ 12,216 Compensatory Instruction $ 456 Title I Grants $ Professional Development and Technology Grants $ 32,469 $ 456 $ Special Education Grants E-Rate $ 39,986 $ 191 $ 56 51,117 39,986 $ 191 $ 51,173 10,513 $ 32,469 $ 10,513 $ $ 4,645 13,438 14,386 $ 2,000 6,095 2,418 $ 456 456 Homeless Education 32,469 $ 1,543 38,443 39,986 10,513 $ 191 191 51,117 51,117 56 56 $ 456 $ 32,469 $ 10,513 $ 39,986 $ 191 $ (Continued) Page 57 51,173 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 ASSETS Cash and investments Due from governmental entities Due from other funds Deposits Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Accrued payroll and employee benefits Deferred revenues Total liabilities Early Childhood Block Grant Chemical Abuse Prevention Programs $ 2,002 $ 1,139 $ 695 $ 2,002 $ 1,139 $ 695 $ $ 2,002 2,002 Academic Contests $ 1,139 1,139 695 695 Fund balances (deficits): Restricted Unassigned Total fund balances Total liabilities and fund balances Page 58 $ 2,002 $ 1,139 $ 695 Other State Projects Gifted Food Service $ 50 $ 10,961 $ $ 50 $ 10,961 $ $ Community School Civic Center Extracurricular Activities Fees Tax Credit $ 44,651 $ 53,712 $ 47,535 $ 99,633 26,614 19,604 7,353 153,204 $ 44,651 $ 53,712 $ 47,535 $ 2,089 $ $ $ 1,549 50 50 $ 50 10,961 10,961 $ 10,961 3,638 $ 149,566 44,651 53,712 47,535 149,566 44,651 53,712 47,535 153,204 $ 44,651 $ 53,712 $ (Continued) Page 59 47,535 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 Gifts and Donations ASSETS Cash and investments Due from governmental entities Due from other funds Deposits Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Accrued payroll and employee benefits Deferred revenues Total liabilities Page 60 Textbooks $ 27,432 $ $ 2,136 $ 27,432 $ $ 2,136 $ $ $ 71 71 Fund balances (deficits): Restricted Unassigned Total fund balances Total liabilities and fund balances Fingerprint 27,432 2,136 (71) (71) 27,432 $ 27,432 $ 2,136 $ 2,136 Totals $ $ $ 578,962 180,915 19,604 7,353 786,834 8,734 19,604 31,968 114,051 174,357 612,548 (71) 612,477 $ 786,834 Page 61 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ 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 103 277,496 Instructional Improvement $ 1,412 40,210 277,599 41,622 115,913 6,857 53,498 6,202 3,232 122,770 62,932 154,829 (21,310) County, City, and Town Grants $ 63 63 63 Other financing sources (uses): Transfers out Total other financing sources (uses): (10,209) (10,209) Changes in fund balances 154,829 (21,310) (10,146) Fund balances (deficits), beginning of year (96,721) 250,662 10,146 Fund balances, end of year Page 62 $ 58,108 $ 229,352 $ Structured English Immersion $ Compensatory Instruction $ Title I Grants $ 41,446 2,882 41,446 2,882 37,986 1,982 1,478 2,882 Professional Development and Technology Grants $ Special Education Grants $ E-Rate $ 102 234,411 234,411 37,670 37,670 375,521 375,521 46,780 46,882 197,536 26,773 4,896 124 26,574 10,969 287,073 1,926 41,566 6,892 41,446 5,206 234,411 2,882 86,522 375,521 37,667 48,458 3 (1,576) (3) (3) (1,576) 1,632 $ $ $ $ $ $ 56 (Continued) Page 63 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Other Federal Projects Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Food Service $ 163,948 163,948 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 114,674 Civic Center $ 244,703 359,377 39,344 39,344 163,948 180 11,458 1,060 316,063 163,948 Excess (deficiency) of revenues over expenditures 316,063 4,113 16,811 43,314 22,533 43,314 22,533 106,252 22,118 Other financing sources (uses): Transfers out Total other financing sources (uses): Changes in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 64 $ $ 149,566 $ 44,651 Community School $ 38,218 Extracurricular Activities Fees Tax Credit $ 19,982 Gifts and Donations $ 22,760 38,218 19,982 22,760 25,043 135 23,301 81 2,947 1,284 Fingerprint $ Textbooks 282 $ 282 Totals 371 $ 371 237,311 362,034 1,103,033 1,702,378 27,119 16,646 41,333 8,308 12,539 404 9 951,817 71,823 21,159 19,253 1,462 318,004 120,795 1,504,313 11,099 (21,351) 10,221 (122) 362 198,065 9 404 903 402 1,941 (10,212) (10,212) $ Page 65 11,099 (21,351) 10,221 (122) 362 187,853 42,613 68,886 17,211 51 1,774 424,624 53,712 $ 47,535 $ 27,432 $ (71) $ 2,136 $ 612,477 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ 103 277,496 $ 103 277,496 277,599 277,599 218,098 9,813 115,913 6,857 102,185 2,956 227,911 122,770 105,141 (227,911) 154,829 382,740 (227,911) 154,829 382,740 (96,721) (96,721) 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 66 $ (227,911) $ 58,108 $ 286,019 Instructional Improvement Budget $ Actual $ 1,412 40,210 $ 1,412 40,210 41,622 41,622 293,740 53,498 6,202 3,232 240,242 (6,202) (3,232) 293,740 62,932 230,808 (293,740) (21,310) 272,430 (293,740) $ County, City, and Town Grants Variance Positive (Negative) (293,740) $ (21,310) 272,430 250,662 250,662 229,352 $ 523,092 Budget $ $ Variance Positive (Negative) Actual $ 63 $ 63 63 63 63 63 (12,300) (12,300) (10,209) (10,209) 2,091 2,091 (12,300) (10,146) 2,154 10,146 10,146 (12,300) $ $ 12,300 (Continued) Page 67 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Structured English Immersion 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 $ $ 41,446 41,446 41,446 41,446 44,329 37,986 1,982 1,478 6,343 (1,982) (1,478) 44,329 41,446 2,883 (44,329) 44,329 (44,329) 44,329 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 68 $ (44,329) $ $ 44,329 Compensatory Instruction Budget $ $ Title I Grants Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Actual $ $ 2,882 2,882 2,882 2,882 3,320 2,882 438 241,569 3,320 2,882 438 241,569 (3,320) 3,320 (241,569) 241,569 (3,320) 3,320 (241,569) 241,569 (3,320) $ $ 3,320 $ (241,569) $ 234,411 234,411 234,411 234,411 197,536 26,773 4,896 44,033 (26,773) (4,896) 5,206 234,411 (5,206) 7,158 $ 241,569 (Continued) Page 69 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 Excess (deficiency) of revenues over expenditures Variance Positive (Negative) Actual $ $ 37,670 37,670 37,670 37,670 42,560 124 26,574 10,969 (124) 15,986 (10,969) 42,560 37,667 4,893 (42,560) 3 42,563 (3) (3) (3) (3) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): (42,560) Changes in fund balances 42,560 Fund balances (deficits), beginning of year Fund balances (deficits), end of year Page 70 $ (42,560) $ $ 42,560 Special Education Grants Budget $ Actual $ $ 375,521 375,521 287,073 1,926 111,137 (1,926) 86,522 375,521 (86,522) 22,689 (398,210) (398,210) 398,210 (398,210) $ $ Variance Positive (Negative) Non-GAAP Actual Budget $ 375,521 375,521 398,210 $ Medicaid Reimbursement Variance Positive (Negative) $ 444 $ 444 13,004 13,448 13,004 13,448 28,395 20,279 82,310 (20,279) 110,705 7,864 56,538 (7,864) 54,167 398,210 (110,705) (43,090) 67,615 398,210 (110,705) (43,090) 67,615 76,881 76,881 398,210 110,705 $ (110,705) $ 33,791 $ 144,496 (Continued) Page 71 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 National Forest Fees Budget Revenues: Other local State aid and grants Federal aid, grants and reimbursements Total revenues $ Variance Positive (Negative) Non-GAAP Actual $ 288 $ 288 5,328 5,616 5,328 5,616 4,956 (4,956) 1,898 6,854 (1,898) (6,854) (1,238) (1,238) 5,151 5,151 5,151 5,151 Changes in fund balances 3,913 3,913 Fund balances (deficits), beginning of year 4,766 4,766 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 72 $ $ 8,679 $ 8,679 Taylor Grazing Fees Non-GAAP Actual Budget $ E-Rate Variance Positive (Negative) $ Budget $ 61 61 $ Actual $ 61 61 $ $ 61 58 58 58 58 119 119 119 $ 119 $ 102 $ 102 46,780 46,882 46,780 46,882 41,566 39,021 6,892 (6,892) 80,587 48,458 32,129 (80,587) (1,576) 79,011 (80,587) (1,576) 79,011 1,632 1,632 80,587 61 Variance Positive (Negative) (80,587) $ 56 $ 80,643 (Continued) Page 73 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Impact Aid 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) Non-GAAP Actual $ 180 $ 180 32,288 32,468 32,288 32,468 90,361 7,198 83,163 90,361 1,308 8,506 (1,308) 81,855 (90,361) 23,962 114,323 (90,361) 23,962 114,323 78,863 78,863 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 74 $ (90,361) $ 102,825 $ 193,186 Other Federal Projects Budget $ $ Chemical Abuse Prevention Programs Variance Positive (Negative) Actual $ Budget $ $ Variance Positive (Negative) Actual $ $ 163,948 163,948 163,948 163,948 163,950 163,948 2 2,000 2,000 163,950 163,948 2 2,000 2,000 (163,950) 163,950 (2,000) 2,000 (163,950) 163,950 (2,000) 2,000 (163,950) $ $ 163,950 $ (2,000) $ $ 2,000 (Continued) Page 75 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Academic Contests 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 Excess (deficiency) of revenues over expenditures Variance Positive (Negative) $ $ 750 750 750 750 (750) 750 (750) 750 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 76 $ (750) $ $ 750 Other State Projects Budget $ School Plant Variance Positive (Negative) Actual $ $ Budget $ Variance Positive (Negative) Non-GAAP Actual $ 1,207 $ 1,207 9,200 $ 1,207 1,207 9,200 37,452 37,452 37,452 9,200 9,200 37,452 (9,200) 9,200 (37,452) 1,207 38,659 (9,200) 9,200 (37,452) 1,207 38,659 32,905 32,905 (9,200) $ $ 9,200 $ (37,452) $ 34,112 $ 71,564 (Continued) Page 77 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 Variance Positive (Negative) Actual $ 114,674 $ 114,674 244,703 359,377 244,703 359,377 445,873 316,063 129,810 445,873 316,063 129,810 (445,873) 43,314 489,187 (445,873) 43,314 489,187 106,252 106,252 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 78 $ (445,873) $ 149,566 $ 595,439 Civic Center Budget $ Community School Variance Positive (Negative) Actual $ 39,344 $ 39,344 39,344 Budget $ Actual $ 39,344 45,500 38,218 $ 38,218 38,218 38,218 25,043 135 20,457 (135) 1,941 (1,941) 180 11,458 1,060 (180) 25,792 (1,060) 37,250 4,113 16,811 (4,113) 20,439 45,500 27,119 18,381 (37,250) 22,533 59,783 (45,500) 11,099 56,599 (37,250) 22,533 59,783 (45,500) 11,099 56,599 22,118 22,118 42,613 42,613 37,250 $ Variance Positive (Negative) (37,250) $ 44,651 $ 81,901 $ (45,500) $ 53,712 $ 99,212 (Continued) Page 79 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ Variance Positive (Negative) Non-GAAP Actual $ 10,475 $ 10,475 10,475 10,475 10,475 10,475 10,475 10,475 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 80 $ $ 10,475 $ 10,475 Extracurricular Activities Fees Tax Credit Budget $ Actual $ 19,982 $ 19,982 19,982 19,982 23,301 81 58,799 (81) 903 402 (903) (402) 82,100 16,646 41,333 (16,646) 40,767 (82,100) (21,351) (82,100) 82,100 $ Gifts and Donations Variance Positive (Negative) (82,100) $ Budget $ Variance Positive (Negative) Actual $ 22,760 $ 22,760 22,760 22,760 2,947 1,284 37,313 (1,284) 40,260 8,308 12,539 (8,308) 27,721 60,749 (40,260) 10,221 50,481 (21,351) 60,749 (40,260) 10,221 50,481 68,886 68,886 17,211 17,211 47,535 $ 129,635 40,260 $ (40,260) $ 27,432 $ 67,692 (Continued) Page 81 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 $ 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 $ 282 $ 282 282 282 3,500 404 3,096 3,500 404 3,096 (3,500) (122) 3,378 (3,500) (122) 3,378 51 51 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 82 $ (3,500) $ (71) $ 3,429 Textbooks Budget $ Actual $ 3,100 371 $ 371 371 371 9 3,091 Budget $ Variance Positive (Negative) Non-GAAP Actual $ 137 $ 137 137 137 28,600 993 16,799 132 (993) 11,801 (132) 3,100 9 3,091 28,600 17,924 10,676 (3,100) 362 3,462 (28,600) (17,787) 10,813 3 3 3 3 (17,784) 10,816 24,050 24,050 (3,100) $ Indirect Costs Variance Positive (Negative) (3,100) $ 362 3,462 1,774 1,774 2,136 $ 5,236 (28,600) $ (28,600) $ 6,266 $ 34,866 (Continued) Page 83 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Totals 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 $ 1,824,679 55,473 32,100 37,250 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses): Changes in fund balances Page 84 $ $ 250,042 362,034 1,153,714 1,765,790 2,432,827 832,313 (37,622) (5,858) 17,865 (1,462) 165,321 (131,865) 838,692 (2,432,827) 171,655 2,604,482 (12,300) (12,300) 5,212 (10,212) (5,000) 5,212 2,088 7,300 (2,445,127) 166,655 2,611,782 642,089 642,089 Fund balances (deficits), beginning of year Fund balances (deficits), end of year 250,042 362,034 1,153,714 1,765,790 992,366 93,095 37,958 19,385 1,462 318,004 131,865 1,594,135 483,325 Excess (deficiency) of revenues over expenditures Variance Positive (Negative) Non-GAAP Actual (2,445,127) $ 808,744 $ 3,253,871 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. Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property. 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. 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. Building Renewal Grant - to account for building renewal grant monies that districts may request from the School Facilities Board. Page 85 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2012 Litigation Recovery Insurance Proceeds ASSETS Cash and investments Due from governmental entities Total assets Adjacent Ways $ 50,303 $ 65,262 $ 18,378 $ 50,303 $ 65,262 $ 18,378 LIABILITIES AND FUND BALANCES Fund balances: Restricted Assigned Total fund balances $ 50,303 $ 65,262 $ 18,378 Total liabilities and fund balances $ Page 86 50,303 50,303 65,262 $ 65,262 18,378 $ 18,378 Soft Capital Allocation $ $ 171,777 1,940 173,717 $ Totals $ $ $ 133,943 173,717 307,660 $ 307,660 173,717 173,717 $ 173,717 Page 87 305,720 1,940 307,660 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 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 Property taxes Total revenues $ 403 Adjacent Ways $ 403 114 2 116 3,758 403 116 46,545 64,859 18,262 4,613 4,613 Changes in fund balances Fund balances, beginning of year Page 88 $ 8,371 Expenditures: Current Instruction Support services - students and staff Student transportation services Capital outlay Total expenditures Fund balances, end of year 8,371 Litigation Recovery $ 50,303 $ 65,262 $ 18,378 Soft Capital Allocation $ 15,714 427 16,141 Totals $ 1,928 41 $ 24,602 429 25,031 127,570 129,539 1,928 41 4,613 127,570 134,152 (113,398) (109,121) 287,115 416,781 173,717 Page 89 $ 307,660 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Insurance Proceeds Budget Revenues: Other local Property taxes State aid and grants Total revenues $ Expenditures: Current Instruction Support services - students and staff Student transportation services Capital outlay Total expenditures Changes in fund balances Actual $ Page 90 $ 8,371 $ 8,371 8,371 8,371 45,600 4,613 40,987 45,600 4,613 40,987 (45,600) 3,758 49,358 46,545 46,545 Fund balances, beginning of year Fund balances (deficits), end of year Variance Positive (Negative) (45,600) $ 50,303 $ 95,903 Litigation Recovery Budget $ Unrestricted Capital Outlay Variance Positive (Negative) Actual $ 403 $ 403 $ Actual $ 403 12,461 83,339 230,645 326,445 $ 12,461 83,339 230,645 326,445 72,200 72,200 72,200 72,200 654,615 654,615 88,442 88,442 566,173 566,173 403 72,603 (654,615) 238,003 892,618 64,859 64,859 439,913 439,913 (72,200) $ 403 Budget Variance Positive (Negative) (72,200) $ 65,262 $ 137,462 $ (654,615) $ 677,916 $ 1,332,531 (Continued) Page 91 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Adjacent Ways Budget Revenues: Other local Property taxes State aid and grants Total revenues $ Actual $ $ 19,520 19,520 (19,520) Fund balances, beginning of year $ (19,520) 114 2 116 19,520 19,520 Changes in fund balances Page 92 114 2 116 Expenditures: Current Instruction Support services - students and staff Student transportation services Capital outlay Total expenditures Fund balances (deficits), end of year Variance Positive (Negative) $ 116 19,636 18,262 18,262 18,378 $ 37,898 Soft Capital Allocation Budget $ $ Building Renewal Variance Positive (Negative) Actual $ 15,714 427 $ 15,714 427 Budget $ Variance Positive (Negative) Actual $ $ 16,141 16,141 1,928 41 (1,928) (41) 387,413 387,413 127,570 129,539 259,843 257,874 29,000 29,000 29,000 29,000 (387,413) (113,398) 274,015 (29,000) 29,000 287,115 287,115 (387,413) $ 173,717 $ 561,130 $ (29,000) $ $ 29,000 (Continued) Page 93 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 Building Renewal Grant Budget Revenues: Other local Property taxes State aid and grants Total revenues $ Expenditures: Current Instruction Support services - students and staff Student transportation services Capital outlay Total expenditures Changes in fund balances Variance Positive (Negative) Actual $ 5 $ 5 398,068 398,073 398,068 398,073 653,200 653,200 398,068 398,068 255,132 255,132 (653,200) 5 653,205 Fund balances, beginning of year Fund balances (deficits), end of year Page 94 $ (653,200) $ 5 $ 653,205 Totals Budget $ Actual $ 72,200 $ Variance Positive (Negative) 37,068 83,768 628,713 749,549 $ 37,068 83,768 628,713 749,549 45,600 1,743,748 1,861,548 1,928 41 4,613 614,080 620,662 70,272 (41) 40,987 1,129,668 1,240,886 (1,861,548) 128,887 1,990,435 856,694 856,694 (1,861,548) Page 95 $ 985,581 $ 2,847,129 (This page intentionally left blank) Page 96 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 temporarily held by the District as an agent. Page 97 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2012 Student Activities ASSETS Cash and investments Total assets LIABILITIES Deposits held for others Due to student groups Total liabilities Page 98 $ $ 14,604 14,604 $ $ 14,604 14,604 Employee Insurance Totals $ $ 26,622 26,622 $ $ 41,226 41,226 $ 26,622 $ $ 26,622 $ 26,622 14,604 41,226 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES - AGENCY FUNDS YEAR ENDED JUNE 30, 2012 Beginning Balance Additions Ending Balance Deductions STUDENT ACTIVITIES FUND Assets Cash and investments Total assets Liabilities Due to student groups Total liabilities $ 17,785 $ 21,298 $ 24,479 $ 14,604 $ 17,785 $ 21,298 $ 24,479 $ 14,604 $ 17,785 $ 21,298 $ 24,479 $ 14,604 $ 17,785 $ 21,298 $ 24,479 $ 14,604 $ 35,960 $ 2,127,200 $ 2,136,538 $ 26,622 $ 35,960 $ 2,127,200 $ 2,136,538 $ 26,622 $ 35,960 $ 2,127,200 $ 2,136,538 $ 26,622 $ 35,960 $ 2,127,200 $ 2,136,538 $ 26,622 $ 53,745 $ 2,148,498 $ 2,161,017 $ 41,226 $ 53,745 $ 2,148,498 $ 2,161,017 $ 41,226 $ 35,960 17,785 $ 2,127,200 21,298 $ 2,136,538 24,479 $ 26,622 14,604 $ 53,745 $ 2,148,498 $ 2,161,017 $ 41,226 EMPLOYEE WITHHOLDING FUND Assets Cash and investments Total assets Liabilities Deposits held for others Total liabilities TOTAL AGENCY FUNDS Assets Cash and investments Total assets Liabilities Deposits held for others Due to student groups Total liabilities Page 99 (This page intentionally left blank) Page 100 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. 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. Due to cost considerations for the accumulation of data, the District has elected to present less than ten years of data, or data from less than nine years prior, for certain statistical schedules. This information will be accumulated and reported each year until the complete ten years of data is presented. Page 101 (This page intentionally left blank) Page 102 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 NET ASSETS BY COMPONENT LAST FIVE FISCAL YEARS (Accrual basis of accounting) 2012 Net Assets: Invested in capital assets Restricted Unrestricted Total net assets $ $ 8,869,477 1,480,296 1,449,611 11,799,384 2011 $ $ Fiscal Year Ended June 30 2010 8,813,478 1,150,811 1,393,543 11,357,832 Source: The source of this information is the District's financial records. Page 103 $ $ 9,161,813 1,547,075 41,473 10,750,361 $ $ 2009 9,500,927 1,598,714 173,140 11,272,781 2008 $ $ 9,888,194 2,049,465 38,089 11,975,748 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST FIVE 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 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 6,706,912 820,270 1,001,527 1,047,638 1,032,257 344,999 10,953,603 $ 66,619 124,606 40,130 1,122,047 91,728 1,445,130 $ (9,508,473) Source: The source of this information is the District's financial records. Page 104 2011 Fiscal Year Ended June 30 2010 6,890,484 811,637 944,308 1,034,670 889,187 344,295 10,914,581 $ 47,624 92,597 16,157 1,016,864 11,742 1,184,984 $ (9,729,597) 7,222,649 775,391 1,099,264 1,135,567 811,575 370,056 11,414,502 $ 77,552 150,786 26,310 1,081,098 10,042 1,345,788 $ (10,068,714) 2009 7,299,478 783,051 964,500 1,102,846 868,135 389,290 11,407,300 2008 $ 47,195 91,762 16,011 1,092,342 14,892 133,616 14,800 1,177,211 76,431 1,416,950 1,247,310 $ (10,159,990) 7,909,746 689,179 893,607 1,248,044 1,021,072 345,356 12,107,004 $ (10,690,054) PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS (Accrual basis of accounting) 2012 Net (Expense)/Revenue $ General Revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for capital outlay Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues Changes in Net Assets (9,508,473) $ 2,981,453 88,348 11,215 349,435 6,481,897 37,677 9,950,025 $ 441,552 Source: The source of this information is the District's financial records. Page 105 2011 Fiscal Year Ended June 30 2010 (9,729,597) $ 3,044,894 13,275 4,489 295,710 6,820,908 157,792 10,337,068 $ 607,471 (10,068,714) 2009 $ 2,478,873 10,807 22,442 254,442 5,760,199 1,019,531 9,546,294 $ (522,420) (10,159,990) 2008 $ 2,227,210 9,710 36,274 251,274 5,688,473 1,006,836 9,219,777 $ (940,213) (10,690,054) 1,865,709 8,134 141,455 169,637 8,349,600 51,884 10,586,419 $ (103,635) PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 FUND BALANCES - GOVERNMENTAL FUNDS LAST FIVE FISCAL YEARS (Modified accrual basis of accounting) 2012 General Fund: Assigned Unassigned Reserved Unreserved Total General Fund All Other Governmental Funds: Restricted Assigned Unassigned Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds $ $ 34,112 1,251,863 1,285,975 2011 $ $ 1,424,412 173,717 (71) $ 1,598,058 Fiscal Year Ended June 30 2010 32,905 1,327,449 1,360,354 $ 2009 $ $ 46,487 329,140 375,627 $ 784,026 751,855 1,535,881 2008 $ $ 19,468 242,207 261,675 $ 502,888 876,685 1,379,573 $ 141,191 104,873 246,064 $ 430,279 1,387,105 1,817,384 1,090,924 287,115 (96,721) $ 1,281,318 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. Page 106 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 GOVERNMENTAL FUNDS REVENUES LAST FIVE FISCAL YEARS (Modified accrual basis of accounting) 2012 Federal sources: Federal grants State Fiscal Stabilization (ARRA) Education Jobs 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 $ 745,063 2011 $ 593,385 72,706 160,000 236,011 1,062,102 163,948 244,703 1,153,714 $ $ 544,715 971,723 2009 $ 546,378 2008 $ 656,857 234,780 1,751,218 241,965 788,343 155,622 812,480 5,766,123 44,141 398,068 317,893 6,526,225 6,587,198 2,117 5,976,939 1,921 6,688,607 1,927 8,201,597 2,316 305,757 6,895,072 277,431 6,256,291 301,810 6,992,344 470,013 8,673,926 2,950,396 349,435 114,674 11,215 158,862 3,584,582 11,264,521 3,106,631 295,710 93,029 3,830 106,965 3,606,165 11,563,339 2,489,680 254,442 135,404 22,442 97,055 2,999,023 11,006,532 2,236,945 251,274 138,838 36,274 122,879 2,786,210 10,566,897 1,858,680 169,637 133,312 141,455 198,716 2,501,800 11,988,206 $ Source: The source of this information is the District's financial records. Page 107 Fiscal Year Ended June 30 2010 $ $ $ PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST FIVE 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 Interest and fiscal charges Total expenditures Expenditures for capitalized assets Debt service as a percentage of noncapital expenditures 2011 $ 6,319,236 804,967 952,306 914,782 964,611 331,383 734,875 $ $ 11,022,160 $ 523,160 0% Source: The source of this information is the District's financial records. Notes: Page 108 Fiscal Year Ended June 30 2010 6,385,528 790,188 933,523 909,483 801,426 332,990 269,557 1,745 10,424,440 111,189 0% 2009 2008 $ 6,972,424 764,657 1,072,620 1,009,106 732,850 356,514 100,296 $ 7,082,530 779,352 954,896 978,300 733,691 380,821 67,511 $ 7,837,251 688,310 890,231 1,178,681 1,130,754 343,427 46,434 $ 11,008,467 $ 10,977,101 $ 12,115,088 139,297 0% 172,679 0% 479,408 0% PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST FIVE 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 242,361 2011 $ 10,212 (10,212) $ 242,361 1,138,899 $ 9,362 (9,362) $ Source: The source of this information is the District's financial records. Page 109 Fiscal Year Ended June 30 2010 1,138,899 (1,935) 2009 $ 185,395 (185,395) $ (1,935) (410,204) 2008 $ 419,115 (419,115) $ (410,204) (126,882) 1,233 (1,233) $ (126,882) PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST FIVE FISCAL YEARS Fiscal Year Ended June 30 2012 2011 2010 2009 2008 Real Property Residential Commercial Property Property $ 66,711,660 67,293,748 64,810,127 $ 30,294,114 31,605,789 26,197,480 Less: Tax Exempt Real Property Personal Property $ 3,426,001 3,760,133 3,710,323 $ 7,041,814 7,002,561 8,432,265 Total Taxable Assessed Valuation $ 93,389,961 95,657,109 86,285,665 89,123,377 68,824,013 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 110 Total Direct Rate 4.33 4.66 4.16 4.10 4.10 Estimated Actual Value $ 871,039,233 885,543,742 825,999,690 821,376,146 642,466,013 Ratio of Net Assessed to Estimated Actual Value 10.72 10.80 10.45 10.85 10.71 % PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST FIVE FISCAL YEARS Overlapping Rates Fiscal Year Ended State June 30 Equalization 2012 2011 2010 2009 2008 0.43 0.36 0.33 County 2.63 2.63 2.64 2.68 2.87 County Free Library Flood Control District 0.15 0.15 0.15 0.16 0.16 0.26 0.26 0.26 0.26 0.26 Community Fire College District District Assistance 1.67 1.60 1.61 1.66 1.74 0.08 0.08 0.09 0.08 0.09 Palominas Fire District 1.83 2.20 2.31 2.15 2.46 Fry Fire District Primary 2.68 2.66 2.66 2.67 2.81 4.33 4.66 4.16 4.10 4.10 Source: The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation. Page 111 District Direct Rates Secondary Total 4.33 4.66 4.16 4.10 4.10 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 PRINCIPAL PROPERTY TAXPAYERS CURRENT FISCAL YEAR AND SEVEN YEARS AGO 2012 Secondary Assessed Valuation Taxpayer Arizona Public Service Company Sulphur Springs Valley Electric Co-op, Inc. Pioneer Title Agency Inc. TR# 321365 Pioneer Title Agency Inc. TR# 319061 Arizona Valuations LLC Qwest Corporation Canyon Vista Land LLC Chera Brothers LTD JRL Development LLC La Pradera Estates LLC Southwest Gas Corporation Preserve Petrified Forest Land Inv LLC John N and Sherrie F Herrod Zona Investments Cerutti-Finch Living Trust James H Jr. and Deeon M Devore McGee Revocable Living Trust Total $ $ 1,424,579 1,297,197 715,162 670,080 355,828 284,630 244,800 232,101 219,194 201,600 5,645,171 2006 Percentage of District's Net Assessed Valuation 1.53 1.39 0.77 0.72 0.38 0.30 0.26 0.25 0.23 0.22 6.05 % $ 709,898 1,265,695 79,990 % Source: The source of this information is the Cochise County Assessor's records. Page 112 Secondary Assessed Valuation $ 101,328 91,583 79,270 78,433 77,195 72,430 69,600 2,625,422 Percentage of District's Net Assessed Valuation 1.27 % 2.26 0.14 0.18 0.16 0.14 0.14 0.14 0.13 0.12 4.68 % PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 PROPERTY TAX LEVIES AND COLLECTIONS LAST FIVE FISCAL YEARS Fiscal Year Ended June 30 2012 2011 2010 2009 2008 Collected within the Fiscal Year of the Levy Taxes Levied for the Fiscal Year $ 2,959,965 3,127,425 2,455,313 2,238,140 1,840,598 Amount $ 2,945,805 3,029,557 2,348,314 2,111,237 1,754,084 Percentage of Levy 99.52 % 96.87 95.64 94.33 95.30 Collected to the End of the Current Fiscal Year Collections in Subsequent Fiscal Years $ Amount $ 64,094 89,505 121,406 85,491 2,945,805 3,093,651 2,437,819 2,232,643 1,839,575 Source: The source of this information is the Cochise 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. Page 113 Percentage of Levy 99.52 % 98.92 99.29 99.75 99.94 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2012 Governmental Unit Overlapping: Cochise County Total Direct and Overlapping Debt Debt Outstanding 5,200,000 Estimated Percentage Applicable to School District 8.55 % Estimated Amount Applicable to School District $ $ 444,600 444,600 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 114 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 LEGAL DEBT MARGIN INFORMATION LAST FIVE FISCAL YEARS Class B Bond Legal Debt Margin Calculation for Fiscal Year 2012: Secondary assessed valuation $ 93,389,961 Debt limit (5% of assessed value) 4,669,498 Debt applicable to limit NONE Legal debt margin $ 4,669,498 Total Legal Debt Margin Calculation for Fiscal Year 2011: Secondary assessed valuation $ 93,389,961 Debt limit (15% of assessed value) 14,008,494 Debt applicable to limit NONE Legal debt margin $ 14,008,494 Fiscal Year Ended June 30 2010 2012 2011 Total Debt limit $ 14,008,494 $ 28,697,133 Total net debt applicable to limit NONE Legal debt margin $ 14,008,494 Total net debt applicable to the limit as a percentage of debt limit 0% 2009 2008 $ 25,885,700 $ 26,737,013 $ 20,647,204 NONE NONE NONE NONE $ 28,697,133 $ 25,885,700 $ 26,737,013 $ 20,647,204 0% 0% 0% 0% 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 115 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Year Population 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 130,537 131,436 130,296 130,567 129,522 128,623 126,459 124,805 121,871 121,502 Personal Income (thousands) $ N/A 4,688,309 4,435,021 1,271,255 3,823,812 3,570,455 3,383,842 3,097,128 2,794,617 2,658,448 Per Capita Income $ N/A 35,592 34,243 33,259 29,890 28,166 26,958 25,097 23,045 22,186 Unemployment Rate 8.8 % 8.8 7.9 5.7 3.9 4.4 4.8 4.9 5.6 5.8 Estimated District Population 10,500 10,500 10,300 10,300 10,300 10,300 10,300 10,290 10,290 10,290 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 University of Arizona, Eller College of Management, Economic and Business Research Center. Note: N/A indicates that the information is not available. Page 116 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 PRINCIPAL EMPLOYERS CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR 2003 2012 Employer U.S. Army Fort Huachuca General Dynamics Information Tech Cochise County Eurofresh, Inc. Wal-Mart Sierra Vista Public Schools Arizona State Prison Sierra Vista Regional Health Center ManTech International Corporation Douglas Unified School District Cochise College Aegis Communications City of Sierra Vista Total Total employment Employees 9,039 950 922 871 860 700 663 641 493 469 446 408 398 16,860 Percentage of Total Employment 37.02 3.89 3.78 3.57 3.52 2.87 2.72 2.63 2.02 1.92 1.83 1.67 1.63 69.07 Employees % % 24,419 Source: The source of this information is the Cochise College Center for Economic Research. Note: The information presented is for Cochise County. Page 117 11,097 Percentage of Total Employment 44.08 % 975 3.87 488 748 663 610 1.94 2.97 2.63 2.42 511 547 577 367 16,583 25,175 2.03 2.17 2.29 1.46 65.86 % PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE LAST FIVE FISCAL YEARS Full-time Equivalent Employees as of June 30 2011 2010 2009 2012 Supervisory Superintendent Principals Total supervisory Instruction Teachers Other professionals (instructional) Aides Total instruction Student Services Nurses Counselors/Advisors Librarians Total student services Support and Administration Clerical workers Maintenance workers Bus Drivers Food Service workers Other classified Total support and administration Total Source: The source of this information is District records. Page 118 2008 1 3 4 1 3 4 1 3 4 1 3 4 1 3 4 66 4 40 110 67 6 40 113 67 6 50 123 67 6 50 123 65 4 45 114 3 3 3 9 3 3 3 9 3 3 3 9 3 3 3 9 3 3 3 9 12 4 18 8 4 46 13 4 17 8 5 47 13 4 20 9 5 51 13 4 20 9 5 51 13 4 17 7 5 46 169 173 187 187 173 PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 OPERATING STATISTICS LAST FIVE FISCAL YEARS Fiscal Year Ended June 30 Average Daily Membership 2012 2011 2010 2009 2008 1,015 1,018 1,025 1,018 1,009 Operating Expenditures $ 10,287,285 10,153,138 10,908,171 10,909,590 12,068,654 Cost per Pupil $ 10,135 9,974 10,642 10,717 11,961 Percentage Change 1.62 % (6.28) (0.70) (10.40) N/A Expenses $ 10,953,603 10,914,581 11,414,502 11,407,300 12,107,004 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 119 Cost per Pupil $ 10,792 10,722 11,136 11,206 11,999 Percentage Change 0.65 % (3.72) (0.62) (6.61) N/A Teaching Staff PupilTeacher Ratio 110 113 123 123 114 9.2 9.0 8.3 8.3 8.9 Percentage of Free/Reduced Students 51.0 48.2 49.6 46.9 43.6 % PALOMINAS ELEMENTARY SCHOOL DISTRICT NO. 49 CAPITAL ASSETS INFORMATION LAST FIVE FISCAL YEARS 2012 Schools Buildings Square feet Capacity Enrollment 2011 Fiscal Year Ended June 30 2010 2009 13 116,473 1,306 1,094 13 116,473 1,306 1,084 13 116,473 1,306 1,105 13 116,473 1,306 1,076 13 116,473 1,306 1,077 Administrative Buildings Square feet 1 2,160 1 2,160 1 2,160 1 2,160 1 2,160 Transportation Garages Buses 1 26 1 26 1 26 1 26 1 24 3 3 3 2 3 3 2 3 3 2 3 3 2 3 3 Athletics Running tracks Baseball/softball Playgrounds Source: The source of this information is the District's facilities records. Page 120 2008