HALL COUNTY SCHOOL DISTRICT #2 (GRAND ISLAND PUBLIC SCHOOLS) GRAND ISLAND, NEBRASKA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

Transcription

1 HALL COUNTY SCHOOL DISTRICT #2 (GRAND ISLAND PUBLIC SCHOOLS) FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION August 31, 2014

2 TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT 3 MANAGEMENT S DISCUSSION AND ANALYSIS 6 FINANCIAL STATEMENTS - MODIFIED CASH BASIS Government-wide Financial Statements Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements Balance Sheet - Governmental Funds 15 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 16 Statement of Receipts, Disbursements, and Changes in Fund Balances - Governmental Funds 17 Reconciliation of the Statement of Receipts, Disbursements, and Changes in Fund Balances - Governmental Funds to the Statement of Activities 18 Statement of Net Position - Proprietary Fund 19 Reconciliation of the Statement of Net Position - Proprietary Fund to the Government-wide Statement of Net Position 20 Statement of Receipts, Disbursements, and Changes in Fund Net Position - Proprietary Fund 21 Reconciliation of the Statement of Receipts, Disbursements, and Changes in Fund Net Position - Proprietary Funds to the Statement of Activities 22 Statement of Net Position - Fiduciary Funds 23 Notes to Financial Statements 24 SUPPLEMENTARY AND OTHER INFORMATION Budgetary Comparison Schedules General Fund 52 Special Building Fund 53 Depreciation Fund 54 Qualified Capital Purpose Fund 55 Cooperative Fund 56 Bond Fund 57 Page 1

3 TABLE OF CONTENTS, Continued Page SUPPLEMENTARY AND OTHER INFORMATION, continued Combined Balance Sheet - Other Governmental Funds 58 Combined Statement of Receipts, Disbursements, and Changes in Fund Balances - Other Governmental Funds 59 Statements of Cash Receipts, Disbursements, and Fund Balance - Fiduciary Funds - Activity Fund 60 Student Fees Fund 70 Statement of Accounts with County Treasurers - Hall and Merrick County Treasurers 71 Comparative Statistical Data and Graphs 72 SINGLE AUDIT REPORTS Schedule of Expenditures of Federal Awards 77 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 79 Independent Auditors Report on Compliance For Each Major Program and on Internal Control Over Compliance Required by OMB Circular A Schedule of Findings and Questioned Costs 84 Summary Schedule of Prior Audit Findings 86 2

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5 no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities modified cash basis, the business-type activities modified cash basis, the aggregate discretely presented component unit accrual basis, each major fund modified cash basis, the aggregate remaining fund information modified cash basis, and the fiduciary funds modified cash basis of Hall County School District #2, as of August 31, 2014, and the respective changes in financial position modified cash basis and accrual basis, thereof for the year then ended in accordance with the basis of accounting described in Note A. Basis of Accounting We draw attention to Note A of the financial statements, which describes the basis of accounting. The financial statements of the primary government are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter. Other Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Hall County School District #2 s financial statements. The management s discussion and analysis and supplementary and other information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the financial statements. The management s discussion and analysis, budgetary comparison schedules, combining nonmajor fund financial statements, fiduciary fund statements, and the schedule of expenditures of federal awards 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. Such 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 4

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7 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS For The Year Ended August 31, 2014 MANAGEMENT S DISCUSSION AND ANALYSIS This section of Grand Island Public Schools annual financial report presents management s discussion and analysis (MD&A) of the District s financial performance during the fiscal year ended August 31, Please read the MD&A in combination with the entire financial report, which immediately follows this section. For information on the Grand Island Education Foundation, Inc. component unit included in these financial statements, please see the separate audit report for the Foundation. FINANCIAL HIGHLIGHTS The District decreased its governmental funds cash reserves by $5.7 million, with General Fund cash reserves making up $4.5 million of this decrease. General Fund revenues were $86.9 million, $4.5 million less than expenses. General Fund operational costs reached $91.4 million, a 2.8 percent increase, primarily due to increased spending for instruction. Major capital improvement projects were completed to further ensure viable, clean, safe and secure facilities: o Senior High auditorium renovation o East gym bleachers, scoreboard and painting at Senior High o Upgrade Administration building phone system o Air conditioner at Senior High west gym o Remodel east administration/counselor s office area at Senior High o Install IP cameras at several elementary buildings o Remodel north kitchen at Senior High o Remodel library at Walnut Middle School o Install card access system at Barr Middle School Grand Island Public Schools student enrollment increased from the prior year. The official (last Friday in September) pre-kindergarten through twelfth grade student count of 9,313, up from 9,098 in 2013, represents a 2.4 percent increase from the prior year and an overall three-year increase of 3.2 percent. 6

8 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 OVERVIEW OF THE FINANCIAL STATEMENTS This audited annual financial report consists of three sections: management s discussion and analysis (MD&A) [this section], the financial statements, and supplementary and other information. The financial statements include two kinds of statements that present different views of the District: The first two statements are district-wide financial statements that provide both shortterm and long-term information about the District s overall financial status. The remaining statements are fund financial statements that focus on individual parts of the District, reporting the District s operations in more detail than the district-wide statements. The governmental funds statements show how basic services such as regular and special education were financed in the short-term as well as what remains for future spending. Proprietary funds statements offer short- and long-term financial information about the activities the District operates like a business, such as Nutrition Services. Fiduciary funds statements provide information about the financial relationships in which the District acts solely as a trustee or agent for the benefit of others. The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of supplementary and other information that further explains and supports the financial statements with a comparison of the District s budget for the year and various other supporting schedules and statements. Net Position FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE The District s combined net position was lower on August 31, 2014 than it was the year before, decreasing 3.5 percent to $84.4 million. This deterioration in the District s financial position came from its governmental activities, the net position of which decreased $3.1 million to $82.5 million. The net position of the District s business-type activities increased $0.03 million to $1.9 million. 7

9 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 A summary of the District s assets, liabilities, and net position follows: August 31, August 31, Increase (Decrease) Assets: Current assets $ 39,368,647 $ 45,088,950 $ (5,720,303) Capital assets 79,896,189 81,103,028 (1,206,839) Total assets 119,264, ,191,978 (6,927,142) Liabilities: Current liabilities 3,113,495 3,868,082 (754,587) Long-term liabilities 31,769,820 34,883,472 (3,113,652) Total liabilities 34,883,315 38,751,554 (3,868,239) Net position: Net investment in capital assets 45,012,874 42,351,474 2,661,400 Restricted for: Debt service 3,418,378 3,415,067 3,311 Building additions/ improvements 543,071 1,198,499 (655,428) Qualified capital purposes 238, ,596 (91,129) Unrestricted 35,168,731 40,145,788 (4,977,057) Total net position $ 84,381,521 $ 87,440,424 $ (3,058,903) Governmental Activities Revenues for the District s governmental activities were $108.5 million, while total expenses were $111.5 million. The decrease in net position for governmental activities was $3.1 million in The use of cash reserves for the year ended August 31, 2014 was both intentional and specific. Albeit levy proceeds were down, which at this point, appear to be temporary in nature and likely to rebound and be restored over time. Intentionally, cash reserves were out of proportion to our stated target levels of three months of General Fund monthly expenditures. At over $30 million, cash reserve was too high considering targeted cash reserve is $22.5 million. Specific to what was spent (invested), roughly $1.8 million bought laptop computers and related equipment for our five-year technology plan. Additionally, we funded a large portion (roughly $2 million) of our projects from the General Fund. Both of these expenditures are significantly scaled back for ensuing fiscal years, and therefore, not a long term threat to the financial stability of the District. Since cash reserve is over the targeted levels, management expects a further reduction or break even in cash reserves for the coming fiscal year operations. Strong economic growth, as measured by investment in real estate and building, coupled with aggressive reassessment practices, led to a 2.2 percent increase in property valuation. This contributed in General Fund tax asking increasing $0.6 million (2.2 percent). 8

10 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 The cost of all governmental activities this year was $111.5 million. Federal and State governments subsidized certain programs with grants and contributions ($12.4 million). Most of the District s costs ($78.9 million), however, were financed by District and State taxpayers. This portion of governmental activities was financed with $35.0 million in property taxes and $43.9 million of unrestricted State Aid based on the Statewide Education Aid Formula. A comparison of governmental activities receipts and expenses follows: Years Ended August 31, August 31, August 31, Increase (Decrease) Receipts: Charges for services $ 14,628,372 $ 13,926,615 $ 701,757 Operating grants 12,368,458 14,558,692 (2,190,234) Capital grants 515, ,920 Property and other taxes 35,024,748 35,998,273 (973,525) State aid 43,857,360 45,038,626 (1,181,266) Interest income 22,250 16,701 5,549 Other 2,036,865 1,974,742 62,123 Total receipts 108,453, ,513,649 (3,059,676) Expenses: Instruction 60,718,471 55,986,748 4,731,723 Support services: Pupils 3,451,767 3,316, ,569 Staff 3,066,241 2,911, ,061 General Administration 1,560,444 1,446, ,440 School Administration 3,763,998 3,540, ,244 Business 495, ,324 (110,961) Building and grounds 8,688,437 8,024, ,580 Pupil transportation 503, ,450 3,508 State categorical programs 397, ,008 61,634 Federal programs 5,677,872 6,175,624 (497,752) Summer School 51,698 51, Activity Fund support 232, ,700 (487,500) CNSSP program 16,000,000 15,325, ,099 Interest expense 1,045,705 1,133,989 (88,284) Depreciation 5,889,708 5,734, ,763 Total expenses 111,543, ,809,761 5,733,743 Increase (decrease) in net position $ (3,089,531) $ 5,703,888 $ (8,793,419) 9

11 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 Business-type Activities Revenues of the District s business-type activities increased 10.3 percent to $5.1 million, and expenses also increased 1.5 percent to $5 million. Food services revenues exceeded expenses by $0.03 million. FINANCIAL ANALYSIS OF THE DISTRICT S FUNDS As the District completed the year, its governmental funds reported combined fund balances of $38.9 million, $5.9 million less than last year s ending fund balances of $44.8 million. The General Fund had $4.5 million less revenues than expenditures for the year, accounting for the majority of the decrease in governmental fund balances. As mentioned, the business-type activities revenue exceeded expenses. In addition to the district-wide financial statements, food services are reported in greater detail in the proprietary funds statements. General Fund Budgetary Highlights The District s budget for the General Fund anticipated that expenditures would exceed revenues by $2.0 million. Actual expenditures exceeded revenues by $4.5 million for the year. Actual revenues were $12.5 million lower than expected. The actual expenditures were $10 million below budget, due primarily to a $9.3 million favorable variance in instructional services. Capital Assets CAPITAL ASSETS AND DEBT ADMINISTRATION By the end of 2014, the District had invested $152.5 million in a broad range of capital assets, including land, buildings, athletic/sports facilities and computer and audio-visual equipment. The net book value after depreciation was $79.9 million at August 31, The amount represents a net decrease of $1.2 million or 1.5 percent from last year. (More detailed information about capital assets can be found in Note E to the financial statements.) Total depreciation expense for the year was $6.3 million, while building improvements and additions to equipment and furniture amounted to $5.1 million. Construction in progress totaled $0.4 million at August 31, This balance consists of $0.1 million construction in progress on roof replacement at Barr Middle School and $0.3 million construction in progress on architectural costs for various future building projects. 10

12 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 Long-term Debt At year end, the District had $34.9 million (principal only) in General Obligation Bonds and other debt outstanding a decrease of 10.0 percent from last year as shown in the table below. (More detailed information about the District s long-term liabilities is presented in Note F to the financial statements.) Fund $ Change % Change Balance at Balance at Increase Increase 8/31/2014 8/31/2013 (Decrease) (Decrease) General $ 218,315 $ 336,554 $ (118,239) (35.1) % Bond 28,980,000 31,260,000 (2,280,000) (7.3) Qualified 4,730,000 5,900,000 (1,170,000) (19.8) Total governmental $ 33,928,315 $ 37,496,554 $ (3,568,239) (9.5) Lunch $ 955,000 $ 1,255,000 $ (300,000) (23.9) FACTORS BEARING ON THE DISTRICT S FUTURE The District will continue to pay for improvements to facilities through the use of the Special Building Fund, Qualified Capital Purpose Fund, and General Fund, along with the appropriate use of long-term debt and/or lease-purchase arrangements. During September 2014, voters approved a $69.9 million bond issue for the construction of three new elementary schools and major renovations at four other buildings. These construction projects are planned for the next five years. The end of fiscal year 2014 marked the end of a one-year negotiated agreement with the District s recognized local teachers union, the Grand Island Education Association (GIEA). A new negotiated agreement was reached during the fiscal year for the fiscal year. The City of Grand Island continues to annex land in response to economic growth within the community of Grand Island. In large measure, Grand Island Public Schools boundaries follow the City of Grand Island s boundaries. However, the Grand Island Public Schools are mandated by State law to meet and negotiate in good faith over several specific factors with other Districts that are affected by the annexation process. When annexations occur, this process is ongoing with Hall County School District 82 11

13 HALL COUNTY SCHOOL DISTRICT #2 (Grand Island Public Schools) MANAGEMENT S DISCUSSION AND ANALYSIS, Continued For The Year Ended August 31, 2014 a.k.a. Northwest Public Schools, a Class III school district that lies, in part, within Grand Island Public Schools boundaries. The District is faced with decreasing revenue from state aid, relatively flat (3 percent) valuation growth, and increased costs due to the impact of negotiated salaries, health care including PPACA, and general inflationary trends. During the school year, the District must strive to continue to demonstrate Adequate Yearly Progress (AYP) under the federal No Child Left Behind (NCLB) law. Not meeting the continuing and progressively more stringent requirements of the NCLB law could have a severe impact on the District over time. CONTACTING THE DISTRICT S FINANCIAL MANAGEMENT This audited financial report is designed to provide the District s stakeholders (i.e., citizens, taxpayers, customers, investors and creditors) with a general overview of the District s finances and to demonstrate the District s accountability for the money it receives. If you have any questions about this report or need additional information, please feel free to contact the following school official: Mr. Virgil D. Harden, RSBA Executive Director of Business Grand Island Public Schools 123 South Webb Road P.O. Box 4904 Grand Island, NE (308) x144 (308) facsimile vharden@gips.org 12

14 ASSETS Current assets: GRAND ISLAND PUBLIC SCHOOLS STATEMENT OF NET POSITION - MODIFIED CASH BASIS August 31, 2014 Primary Government Component Unit Governmental Business-type (Accrual Activities Activities Total Basis) Cash and investments (notes A6 and C) $ 26,711,809 $ 444,527 $ 27,156,336 $ 5,388,389 Cash restricted for building projects (note C) 470, ,150 - Cash restricted for debt service (note C) 2,568,850-2,568,850 - Cash with County Treasurers (note D) 9,173,311-9,173,311 - Current portion of pledges receivable (note O) ,995 Interest receivable Total current assets 38,924, ,527 39,368,647 5,932,406 Noncurrent assets: Noncurrent portion of pledges receivable (note O) ,783 Cash surrender value life insurance ,404 Capital assets (notes A5 and E): Land 2,176,801-2,176,801 - Construction in progress 443, ,961 - Buildings 128,073,507 2,549, ,622,639 - Furniture and equipment 17,638,151 1,590,544 19,228,695 - Less: Accumulated depreciation (70,819,745) (1,756,162) (72,575,907) - Net capital assets 77,512,675 2,383,514 79,896,189 - Total noncurrent assets 77,512,675 2,383,514 79,896, ,187 Total assets 116,436,795 2,828, ,264,836 6,273,593 LIABILITIES Current liabilities: Long-term debt due within one year (note F): Capital lease payable 123, ,495 - Certificates of participation - 310, ,000 - Limited tax obligation bonds payable 370, ,000 - General obligation bonds payable 2,310,000-2,310,000 - Accounts payable ,352 Scholarships and grants payable ,799 Payroll taxes payable Total current liabilities 2,803, ,000 3,113, ,590 Long-term liabilities, net of current portion (note F): Capital lease payable 94,820-94,820 - Certificates of participation - 645, ,000 - Limited tax obligation bonds payable 4,360,000-4,360,000 - General obligation bonds payable 26,670,000-26,670,000 - Scholarships and grants payable ,408 Total long-term liabilities 31,124, ,000 31,769, ,408 Total liabilities 33,928, ,000 34,883,315 1,576,998 NET POSITION Net investment in capital assets 43,584,360 1,428,514 45,012,874 - Restricted for: Debt service 3,418,378-3,418,378 - Building additions/improvements 543, ,071 - Qualified capital purposes 238, ,467 - Scholarships and programs ,933,183 Unrestricted 34,724, ,527 35,168, ,412 Total net position $ 82,508,480 $ 1,873,041 $ 84,381,521 $ 4,696,595 See notes to financial statements. 13

15 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For the year ended August 31, 2014 Program Receipts Operating Charges for Grants and Functions/Programs Expenses Services Contributions Primary government: Governmental activities: Instruction $ 60,718,471 $ - $ 5,578,127 Support services: Pupils 3,451, Staff 3,066, General administration 1,560, School administration 3,763, Business 495, Building and grounds 8,688,437 3,240 - Pupil transportation 503, State categorical programs 397, ,370 Federal programs 5,677,872-4,657,339 Summer school 51, Activity Fund support 232, CNSSP program 16,000,000 14,625,132 1,631,509 Interest on long-term debt 1,045,705-75,113 Depreciation - unallocated 5,889, Total governmental activities 111,543,504 14,628,372 12,368,458 Business-type activities: Nutrition services 4,628,333 1,158,155 3,859,178 Depreciation 403, Total business-type activities 5,031,413 1,158,155 3,859,178 Total primary government $ 116,574,917 $ 15,786,527 $ 16,227,636 Component unit: Grand Island Education Foundation, Inc. $ 1,781,172 $ 100,804 $ 1,355,025 See notes to financial statements. 14

16 Net (Expenses) Receipts and Changes in Net Position Capital Primary Government Component Grants and Governmental Business-type Unit Contributions Activities Activities Total (Accrual Basis) $ - $ (55,140,344) $ (55,140,344) - (3,451,767) (3,451,767) - (3,066,241) (3,066,241) - (1,560,444) (1,560,444) - (3,763,998) (3,763,998) - (495,363) (495,363) 515,920 (8,169,277) (8,169,277) - (503,958) (503,958) - 28,728 28,728 - (1,020,533) (1,020,533) - (51,698) (51,698) - (232,200) (232,200) - 256, ,641 - (970,592) (970,592) - (5,889,708) (5,889,708) 515,920 (84,030,754) (84,030,754) - - $ 389, , (403,080) (403,080) - - (14,080) (14,080) $ 515,920 (84,030,754) (14,080) (84,044,834) $ - $ (325,343) General receipts: Taxes: Property 30,769,127-30,769,127 - Motor vehicle 3,022,297-3,022,297 - Other taxes 1,233,324-1,233,324 - Fines and licenses 860, ,412 - State aid 43,857,360-43,857,360 - State apportionment 1,176,453-1,176,453 - Investment income 22, , ,341 Unrealized gain on investments ,466 Other - 44,061 44,061 - Total general receipts 80,941,223 44,708 80,985, ,807 Change in net position (3,089,531) 30,628 (3,058,903) 425,464 Net position - August 31, ,598,011 1,842,413 87,440,424 4,271,131 Net position - August 31, 2014 $ 82,508,480 $ 1,873,041 $ 84,381,521 $ 4,696,595 14

17 BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS August 31, 2014 General Depreciation Bond Fund Fund Fund ASSETS Cash and investments $ 17,689,594 $ 4,006,110 $ 2,568,850 Cash with County Treasurers 7,871, ,528 Total assets $ 25,561,273 $ 4,006,110 $ 3,418,378 LIABILITIES AND FUND BALANCES Liabilities $ - $ - $ - Fund balances: Restricted for: Debt service - - 3,418,378 Building additions/improvements Qualified capital purposes Assigned for: Capital outlay - 4,006,110 - Employee benefits Contingencies CNSSP Budgetary stabilization 2,000, Unassigned 23,561, Total fund balances 25,561,273 4,006,110 3,418,378 Total liabilities and fund balances $ 25,561,273 $ 4,006,110 $ 3,418,378 See notes to financial statements. 15

18 Special Qualified Other Total Building Capital Purpose Cooperative Governmental Governmental Fund Fund Fund Funds Funds $ 470,150 $ (140,716) $ 1,183,454 $ 3,973,367 $ 29,750,809 72, , ,173,311 $ 543,071 $ 238,467 $ 1,183,454 $ 3,973,367 $ 38,924,120 $ - $ - $ - $ - $ ,418, , , , , ,006, ,967,235 2,967, ,006,132 1,006, ,183,454-1,183, ,000, ,561, , ,467 1,183,454 3,973,367 38,924,120 $ 543,071 $ 238,467 $ 1,183,454 $ 3,973,367 $ 38,924,120 15

19 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION August 31, 2014 Total fund balances - governmental funds $ 38,924,120 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. The cost of the assets is $148,332,420, and the accumulated depreciation is $70,819, ,512,675 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Capital leases payable $ (218,315) Limited tax obligation bonds payable (4,730,000) General obligation bonds payable (28,980,000) (33,928,315) Total net position - governmental activities $ 82,508,480 See notes to financial statements. 16

20 RECEIPTS Taxes: GRAND ISLAND PUBLIC SCHOOLS STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS For the year ended August 31, 2014 General Depreciation Bond Fund Fund Fund Property $ 25,467,323 $ - $ 2,887,139 Motor vehicle 3,022, Homestead exemption 938, ,036 Pro-rate motor vehicle 93,383-10,820 Carline 18,694-2,142 Property tax credit 764,327-85,857 Fines and licenses 860, Tuition State aid and grants 50,629, Federal grants 5,066, Interest income 5,756 6,110 (1,002) Other Total receipts 86,866,400 6,110 3,091,992 DISBURSEMENTS Instruction 60,922, Support services: Pupils 3,451, Staff 3,142, General administration 1,560, School administration 3,763, Business 613, Building and grounds 10,942, Pupil transportation 503, State categorical programs 397, Federal programs 5,813, Summer school 51, Transfer to other funds 232, Capital outlay - 836,885 - Debt service Principal - - 2,280,000 Interest ,481 CNSSP expenditures Other - - 1,200 Total disbursements 91,396, ,885 3,088,681 Excess (deficiency) of receipts over disbursements (4,530,137) (830,775) 3,311 Fund balances - August 31, ,091,410 4,836,885 3,415,067 Fund balances - August 31, 2014 $ 25,561,273 $ 4,006,110 $ 3,418,378 See notes to financial statements. 17

21 Special Qualified Other Total Building Capital Purpose Cooperative Governmental Governmental Fund Fund Fund Funds Eliminations Funds $ 246,579 $ 1,272,336 $ - $ - $ - $ 29,873, ,022,297 9,021 46, ,101, , , ,951 7,349 38, , , ,625, ,625, ,629, ,631,509 - (1,631,509) 5,066,271 1, ,693-22,249 3,240 75, , ,817 1,438,399 16,256,641 9,693 (1,631,509) 106,306, ,922, ,451, ,142, ,560, ,763, , ,942, , , (1,631,509) 4,181, , , , , ,880,882-1,170, ,450, , ,042, ,000, ,000,000 2,752 1,950-16,187-22, ,245 1,529,528 16,000,000 16,187 (1,631,509) 112,160,554 (655,428) (91,129) 256,641 (6,494) $ - (5,854,011) 1,198, , ,813 3,979,861 44,778,131 $ 543,071 $ 238,467 $ 1,183,454 $ 3,973,367 $ 38,924,120 17

22 RECONCILIATION OF THE STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended August 31, 2014 Total net change in fund balances - governmental funds $ (5,854,011) Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capitalized capital outlay ($5,085,949) was exceeded by depreciation expense ($5,889,708) during the period. (803,759) Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal payments consist of: Capital leases $ 118,239 Limited tax obligation bonds 1,170,000 General obligation bonds 2,280,000 3,568,239 Change in net position of governmental activities $ (3,089,531) See notes to financial statements. 18

23 STATEMENT OF NET POSITION - PROPRIETARY FUND - MODIFIED CASH BASIS August 31, 2014 Lunch Fund ASSETS Cash $ 444,527 LIABILITIES - NET POSITION Unrestricted $ 444,527 See notes to financial statements. 19

24 RECONCILIATION OF THE STATEMENT OF NET POSITION - PROPRIETARY FUND TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION August 31, 2014 Total net position - proprietary fund $ 444,527 Amounts reported for business-type activities in the statement of net position are different because: Capital assets used in business-type activities are not financial resources and therefore are not reported as assets in proprietary funds. The cost of the assets is $4,139,676, and the accumulated depreciation is $1,756,162. 2,383,514 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Certificates of participation (955,000) Total net position - business-type activities $ 1,873,041 See notes to financial statements. 20

25 STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND NET POSITION - PROPRIETARY FUND - MODIFIED CASH BASIS For the year ended August 31, 2014 Lunch Fund Operating receipts: Lunch sales $ 1,158,155 State sources 37,295 Federal sources 3,657,703 USDA commodities 164,180 Other 44,061 Total operating receipts 5,061,394 Operating disbursements: Salaries and employee benefits 2,132,547 Contracted services 59,785 Food and food service supplies 2,375,022 Capital outlay 4,261 Debt service Principal 300,000 Interest 32,463 Other 24,255 Total operating disbursements 4,928,333 Operating receipts in excess of disbursements 133,061 Nonoperating receipts: Investment income 647 Increase in net position 133,708 Net position - August 31, ,819 Net position - August 31, 2014 $ 444,527 See notes to financial statements. 21

26 RECONCILIATION OF THE STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND NET POSITION - PROPRIETARY FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended August 31, 2014 Total increase in net position - proprietary fund $ 133,708 Amounts reported for business-type activities in the statement of activities are different because: Capital outlays are reported in proprietary fund as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capitalized capital outlay ($0) was exceeded by depreciation expense ($403,080) during the period. (403,080) Repayment of long-term debt is an expenditure in the proprietary fund, but the repayment reduces long-term liabilities in the statement of net position. 300,000 Change in net position of business-type activities $ 30,628 See notes to financial statements. 22

27 STATEMENT OF NET POSITION - FIDUCIARY FUNDS - MODIFIED CASH BASIS August 31, 2014 Agency Funds ASSETS Cash $ 1,490,025 LIABILITIES For the obligations of student activities 1,449,502 For the obligations of student fees 40,523 Total liabilities 1,490,025 NET POSITION $ - See notes to financial statements. 23

28 NOTES TO FINANCIAL STATEMENTS August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the District s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. 1. Reporting Entity Grand Island Public Schools is a tax-exempt political subdivision and a Class III school district of the State of Nebraska. The District has considered whether any other organizations should be included in the reporting entity based upon the significance of the operational or financial relationship with the District and has concluded that the Grand Island Education Foundation, Inc. is a component unit. The Foundation exists exclusively for the benefit of the District. The component unit information was obtained from separately audited financial statements, which can be obtained by contacting the Grand Island Education Foundation, Inc. The Grand Island Education Foundation, Inc. is a non-profit organization, which is engaged primarily in raising funds for extracurricular and academic purposes in the Grand Island area. Support is received primarily through contributions and fundraising programs. As a non-profit organization, the Grand Island Education Foundation, Inc. is exempt from income taxes in accordance with the Internal Revenue Code Section 501(c)(3). 2. Basis of Presentation On September 1, 2002, the School District adopted the provisions of Statement No. 34 of the Governmental Accounting Standards Board, Basic Financial Statements and Management s Discussion and Analysis for State and Local Governments. Effective September 1, 2010 the District adopted GASB Statement No. 54 regarding classification of governmental fund balances. Fund balances are classified as follows: Nonspendable-Amounts that cannot be spent either because they are not in a spendable form or because they are legally or contractually required to be maintained intact. Restricted-Amounts that can be spent only for specific purposes because of state or federal laws or externally imposed conditions by grantors or creditors. Committed-Amounts that can be used only for specific purposes determined by a formal action by School Board resolution. 24

29 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 2. Basis of Presentation, continued Assigned-Amounts that are designated by the Superintendent for a specific purpose but are not spendable until a budget ordinance is passed by the School Board. Unassigned-All amounts not included in other spendable classifications. The details of the fund balances are included in the Governmental Funds Balance Sheet (page 15). Restricted funds are used first as appropriate. Assigned Funds are reduced to the extent that expenditure authority has been budgeted by the School Board or the Assignment has been changed by the Superintendent. Decreases to fund balance first reduce Unassigned Fund balance: in the event that Unassigned Fund Balance becomes zero, then Assigned and Committed Fund Balances are used in that order. The District s financial statements consist of government-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements, which provide a more detailed level of financial information. Government-wide Financial Statements The statement of net position and the statement of activities display information about the District as a whole. These statements include the nonfiduciary financial activities of the District. The effect of interfund activity has been eliminated from these statements. These statements report those activities of the District that are governmental (i.e., generally supported by taxes and intergovernmental revenues) and businesstype (i.e., generally supported by fees for service). Fiduciary funds are not included in the government-wide financial statements. The statement of net position presents the financial position of the District s governmental and business-type activities at year end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the District s governmental and business-type activities. Direct expenses are those that are specifically associated with a service, program, or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions (including related investment earnings) that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues of the District. The comparison of direct expenses with program revenues identifies the extent to which each function is self-financing or draws from the general revenues. 25

30 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 2. Basis of Presentation, continued Fund Financial Statements The District maintains fund accounting in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the District at a more detailed level. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. Proprietary funds are used to account for the School District s business-type activities. Proprietary funds distinguish operating receipts and disbursements from nonoperating items. Operating receipts and disbursements generally result from providing services and producing and delivering goods in connection with a proprietary fund s principal ongoing operations. All receipts and disbursements not meeting this definition are reported as nonoperating receipts and disbursements. The Lunch Fund is considered a proprietary fund. Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support the School District s own programs. The Activity Fund and Student Fees Fund are fiduciary funds. 3. Basis of Accounting/Measurement Focus The financial statements of the District have been prepared on the modified cash basis of accounting in that capital assets are capitalized and depreciated under the government-wide measurement focus and long-term liability proceeds and payments do not affect the statement of activities (but are instead carried on the statement of net position) under the government-wide measurement focus. This basis recognizes assets, liabilities, net position, revenues and expenses when they result from cash transactions with a provision for depreciation. This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their related expenses (such as accounts payable and expenses for goods or services received but not yet paid, and accrued expenses and liabilities) 26

31 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 3. Basis of Accounting/Measurement Focus, continued are not recorded in these financial statements. Accordingly, the financial statements and supplemental schedules are not intended to present financial position and results of operations in conformity with accounting principles generally accepted in the United States of America. The measurement focus establishes the basis of accounting. The basis of accounting determines when transactions are recorded in the financial records and reported in the financial statements. Differences between the government-wide financial statements and the fund financial statements arise in the recording of capital assets, the recognition of depreciation, and the recording of longterm liabilities. Governmental fund financial statements therefore include reconciliation with brief explanations to better identify the relationship between the government-wide financial statements and the governmental fund financial statements. The government-wide financial statements are prepared using the economic resources measurement focus and the modified cash basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Proceeds from the issuance of long-term debt increase liabilities and payment of long-term debt reduces liabilities. Capital assets are capitalized and depreciation is recognized over the estimated lives of the related assets. The governmental fund financial statements are prepared using a flow of current financial resources measurement focus and the modified cash basis of accounting. Proceeds from issuance of long-term debt are recognized when received and payment of long-term debt principal is reported as an expenditure when paid. Capital asset purchases are recorded as expenditures and depreciation is not recognized. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund s principal ongoing operations. The Grand Island Education Foundation, Inc. (component unit) uses the accrual basis of accounting, whereby revenues are recognized as earned and expenses are recognized as incurred. 27

32 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 4. Fund Types Governmental Funds Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they are to be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the District s major governmental funds: General Fund: This fund is the operating fund of the District. It is used to account for all financing resources except those required to be accounted for in other funds. Special Building Fund: Accounts for taxes levied and other revenue specifically maintained for future building and equipment purchases. Depreciation Fund: Set up for the replacement of capital assets. Bond Fund: Accounts for the accumulation of resources for, and the payment of, principal, interest, and fiscal charges on general obligation long-term debt. Qualified Capital Purpose Fund: Accounts for taxes levied and other revenue specifically maintained for hazard abatement and handicapped accessibility renovations. Cooperative Fund: Accounts for the Central Nebraska Supportive Service Program, which provides special education services to Grand Island Public Schools and other participating school districts, and other cooperative agreements. The other governmental funds include: Contingency Fund: Set up to fund uninsured losses and legal fees incurred by the District for defense against possible losses. Employee Benefit Fund: The Employee Benefit Fund is a reserve for unemployment claims. Proprietary Funds Proprietary funds include enterprise funds. Enterprise funds account for ongoing organizations and activities, which are similar to those often found in the private sector. The measurement focus is upon the determination of change in net position. The District s only proprietary fund is the following fund: 28

33 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 4. Fund Types, continued Proprietary Funds, continued Lunch Fund: Accounts for the operations of the District s lunch program. Fiduciary Funds Fiduciary fund reporting focuses on net position and changes in net position. The District s fiduciary funds consist of the following: Activity Fund: This fund is used to account for assets held by the District in a trustee/agency capacity for various school organizations and activities. Student Fees Fund: This fund is used to account for student fees collected from students by the District in a trustee capacity for extracurricular activities, post-secondary education, and summer or night school. 5. Capital Assets General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government-wide statement of net position, but are not reported in the fund financial statement of assets, liabilities, and fund balances - governmental funds. Proprietary fund capital assets result from expenditures in the Lunch Fund. These assets are reported in the business-type activities column of the government-wide statement of net position, but are not reported in the fund financial statement of net position. The District has a $5,000 capitalization threshold. Capital assets are recorded at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their estimated fair value as of the date received. Improvements are capitalized; the cost of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset s life are not. The District does not possess any material amounts of infrastructure capital assets, such as sidewalks and parking lots. Such items are considered to be part of the cost of buildings or other improvable property. 29

34 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 5. Capital Assets, continued Capital assets not being depreciated include land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public school purposes, no salvage value is taken into consideration for depreciation purposes. Depreciation is computed using the straight-line method over the estimated useful life of the asset. The District has established estimated useful lives as follows: Estimated Useful Lives Description in Years Buildings 30 Furniture and Equipment (including vehicles and computer equipment) 5 6. Investments and Cash Pools The District maintains an investment pool that is available for use by all funds. The pool consists of an interest-bearing sweep account and Wells Fargo money market funds. Each fund s equity in this pool is included in investments. The District also maintains a pooled checking account for the District s disbursements. Each fund s equity in this pool is included in cash. In addition, other cash and investments are separately held by the Bond Fund, Special Building Fund, Employee Benefit Fund, Contingency Fund, Activity Fund and Student Fees Fund. Investments are carried at fair value. Fair value of the equity in the Nebraska School District Liquid Asset Fund Plus is the same as the value of the pool shares determined using the fair value of each pool s underlying investment portfolio. Investment earnings include interest income and the net change for the year in the fair value of investments carried at fair value. Investment income earned in the pooled accounts is allocated to the participating funds in proportion to the average balances in each fund. Other investment income is assigned to the funds with which the related investment asset is associated. 30

35 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 6. Investments and Cash Pools, continued The Grand Island Education Foundation, Inc., follows the Financial Accounting Standards Board (FASB) Codification regarding Accounting for Certain Investments Held by Not-for-Profit Organizations. Under FASB Codification guidance, investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the statement of financial position. Unrealized gains and losses are included in the change in net position. Investment income and gains restricted by a donor are reported as increases in unrestricted net position if the restrictions are met (either by passage of time or by use) in the reporting period in which the income and gains are recognized. 7. Net Position Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. The District applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available. 8. Estimates The preparation of financial statements in conformity with the modified cash basis of accounting used by the District requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 9. Contributions The component unit accounts for contributions in accordance with the recommendations of the FASB Codification regarding Accounting for Contributions Received and Contributions Made. In accordance with FASB Codification guidance, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. 31

36 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued 9. Contributions, continued All other donor-restricted support is reported as an increase in temporarily or permanently restricted net position depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net position is reclassified to unrestricted net position and reported in the statement of activities as net position released from restrictions. 10. Pledges Receivable Unconditional pledges receivable for the component unit are recognized as revenues in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. NOTE B BUDGET PROCESS AND PROPERTY TAXES The District is required by state law to adopt annual budgets for all funds. The supplementary information presents budgets for the General Fund, Depreciation Fund, Bond Fund, Special Building Fund, Qualified Capital Purpose Undertaking Fund and Cooperative Fund (the major governmental funds). Each budget is presented on the cash basis of accounting, which is consistent with the requirements of the state budget act. State Statutes of the Nebraska Budget Act provide the prescribed budget practices and procedures that governing bodies are required to follow. The amounts that may be budgeted for certain specific funds are subject to various expenditures and/or tax levy limitations. The following procedures are followed in establishing the budgetary data reflected in the financial statements: 1. As of August 1, or shortly thereafter, Administration of the District prepares a proposed operating budget for the fiscal year commencing the following September 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 32

37 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE B BUDGET PROCESS AND PROPERTY TAXES, continued 3. Prior to the budget filing date, the budget is legally adopted by the Board of Education through passage of a resolution. 4. Total actual expenditures may not legally exceed the Total Budget of Expenditures. Appropriations for expenditures lapse at year end and any revisions require a public hearing and Board approval. 5. The county clerk certifies a preliminary property tax rate for each fund of the School District which levied property taxes in the county the previous year. For school systems with multiple school districts, the county clerk certifies to each school district the combined valuation of the school system and the proportion of valuation of each district. The county clerk also certifies the preliminary levies based on the combined valuation and the amount requested for the school system for the prior year. The preliminary levy shall be the final levy unless the School Board passes, by a majority vote, a resolution setting a levy at a different amount. For school systems with multiple school districts, the School Board of the Class III school district, or kindergarten through grade twelve district, shall have the authority to set the tax rate for the school system. 6. The property tax requirement resulting from the budget process is utilized to establish the tax levy in accordance with the procedures discussed above, which attaches as an enforceable lien on property within the District as of January 1. Taxes are due as of that date. One-half of the real estate taxes due January 1 become delinquent after the following May 1, with the second one-half becoming delinquent after September 1. The assessed value at August 31, 2013, upon which the 2014 levy was based was $2,669,698,545. The tax levy per $100 of assessed valuation of taxable property for the year ended August 31, 2014, was as follows: General Fund $ Bond Fund Special Building Fund Qualified Capital Purpose Fund $

38 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE C CASH AND INVESTMENTS Cash At August 31, 2014, the carrying value of the District s deposits was $31,685,361 and the bank balance was $33,216,622. For reporting purposes, the collateral on the School District bank deposits is classified in these categories: 1. Insured or collateralized with securities held by the School District or by its agent in the School District s name. 2. Collateralized with securities held by the pledging financial institution s trust department or agent in the School District s name. 3. Uncollateralized or collateralized with securities held by the pledging financial institution, or by its trust department or agent, but not in the School District s name. As of August 31, 2014, all of the bank deposits were fully insured or collateralized. All securities are held by the pledging financial institution, but not in the School District s name. Cash for the School District at August 31, 2014 consisted of the following: Investments Cash on hand $ 5,006 Demand deposits 6,664,445 Wells Fargo interest-bearing sweep account 16,635,469 Total cash $ 23,304,920 For reporting purposes the School District s investments, which are carried at cost, consisted of the following at August 31, 2014: 34

39 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE C CASH AND INVESTMENTS, continued Investments, continued Nebraska Liquid Asset Fund General Fund $ 4,209,853 Bond Fund 2,566,465 Contingency Fund 1,006,132 Employee Benefits Fund 617,981 Total investments $ 8,400,431 The Nebraska Liquid Asset Fund is similar in nature to an open-end mutual fund designed specifically for Nebraska school entities, investing only in those securities allowable for such entities under Nebraska Law; and, as such, is not considered a security for purposes of categorization of credit risk as provided in GASB Statement No. 3. Summary of Carrying Values The carrying values of cash and investments shown above are included in the fund financial statements at August 31, 2014, as follows: Carrying value Cash $ 23,284,930 Investments 8,400,431 Cash and investments $ 31,685,361 Included in the following fund financial statements captions: Statement of Net Position Governmental Activities Cash and investments $ 26,711,809 Cash restricted for building projects 470,150 Cash restricted for debt service 2,568,850 Statement of Net Position Business-type Activities Cash 444,527 Statement of Net Position Fiduciary Funds Activity Fund Cash 1,449,502 Student Fees Fund Cash 40,523 $ 31,685,361 35

40 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE C CASH AND INVESTMENTS, continued Component Unit The carrying values of cash and investments for the Grand Island Education Foundation, Inc. is made up of the following at August 31, 2014: Carrying value: Cash $ 370,989 Certificates of deposit 120,996 Investments Cash and investments $ 4,596,404 5,088,389 Investments are stated at fair value at August 31, 2014, and consist of mutual funds as follows: Market Unrealized Value Cost Basis Gain (Loss) Mutual funds: Income fund of America - Class A $ 3,265,401 $ 2,429,740 $ 835,661 Capital World Growth & Income - Class A 490, , ,669 America Balanced Fund 10,199 7,208 2,991 American Caprital World Growth & Income 8,400 7, Total mutual funds $ 3,774,131 $ 2,810,117 $ 964,014 Common stock: Abbvie Inc 199, ,587 17,421 Eli Lilly & Co 136, ,329 19,643 Johnson & Johnson 246, ,445 84,432 Microsoft 239, ,371 77,045 Total common stock 822, , ,541 Total $ 4,596,404 $ 3,433,849 $ 1,162,555 36

41 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE D FUNDS HELD BY COUNTY TREASURERS The following receipts were held by County Treasurers for the School District at August 31, The receipts were transferred subsequent to the fiscal year ended August 31, General Fund $ 7,871,679 Bond Fund 849,528 Building Fund 72,921 Qualified Capital Purpose Fund 379,183 Total cash with County Treasurers at August 31, 2014 $ 9,173,311 NOTE E CAPITAL ASSETS Capital asset balances and activity for the year ended August 31, 2014, were as follows: Governmental activities: Capital assets not being depreciated: Land 1,255,308 Balance Balance August 31, August 31, 2013 Additions Deletions Reclass 2014 $ $ 921,493 $ - $ - $ 2,176,801 Construction in progress 508, ,961 - (508,973) 443,961 Capital assets being depreciated: Buildings 125,120,931 2,443, , ,073,507 Furniture and equipment: Vehicles 2,680,312 97,910 (260,938) - 2,517,284 Computer equipment 5,019, ,241 (283,338) - 5,040,330 Equipment 9,565, ,741 (359,541) - 10,080,537 Total furniture and equipment 17,265,076 1,276,892 (903,817) - 17,638,151 Total capital assets 144,150,288 5,085,949 (903,817) - 148,332,420 Less accumulated depreciation: Buildings (54,551,645) (3,598,100) - - (58,149,745) Furniture and equipment: Vehicles (2,155,813) (265,686) 260,938 - (2,160,561) Computer equipment (3,195,477) (767,164) 283,338 - (3,679,303) Equipment (5,930,919) (1,258,758) 359,541 - (6,830,136) Total furniture and equipment (11,282,209) (2,291,608) 903,817 - (12,670,000) Total accumulated depreciation (65,833,854) (5,889,708) 903,817 - (70,819,745) Net capital assets $ 78,316,434 $ (803,759) $ - $ - $ 77,512,675 37

42 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE E CAPITAL ASSETS, continued Included in governmental activities equipment are copiers and time clocks under capital lease arrangements with a cost of $676,680 and accumulated depreciation of $499,419 at August 31, Construction in progress at August 31, 2014, consists of $91,367 of construction costs paid through year end on the Barr Middle School roof replacement project and $352,594 of architectural costs paid on future building projects at various locations. Additional details on construction commitments are provided in Note M. Business-type activities: Capital assets being depreciated: Buildings 2,549,132 Balance Balance August 31, August 31, 2013 Additions Deletions 2014 $ $ - $ - $ 2,549,132 Furniture and equipment: Vehicles 313, ,789 Computer equipment 53, ,122 Equipment 1,223, ,223,633 Total furniture and equipment 1,590, ,590,544 Total capital assets 4,139, ,139,676 Less accumulated depreciation: Buildings (279,148) (84,971) - (364,119) Furniture and equipment: Vehicles (191,722) (62,758) - (254,480) Computer equipment (33,574) (10,625) - (44,199) Equipment (848,638) (244,726) - (1,093,364) Total furniture and equipment (1,073,934) (318,109) - (1,392,043) Total accumulated depreciation (1,353,082) (403,080) - (1,756,162) Net capital assets $ 2,786,594 $ (403,080) $ - $ 2,383,514 38

43 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES Long-term liability balances and activity for the year ended August 31, 2014, were as follows: Balance Balance Due August 31, Principal August 31, Within One 2013 Proceeds Payments 2014 Year Business-type activities: Certificates of participation $ 1,255,000 $ - $ (300,000) $ 955,000 $ 310,000 Governmental activities: Capital leases payable $ 336,554 $ - $ (118,239) $ 218,315 $ 123,495 Limited tax obligation bonds 5,900,000 - (1,170,000) 4,730, ,000 General obligation bonds 31,260,000 - (2,280,000) 28,980,000 2,310,000 Total governmental long-term liabilities $ 37,496,554 $ - $ (3,568,239) $ 33,928,315 $ 2,803,495 Payments on the capital leases payable are made by the General Fund. The general obligation bonds are paid by the Bond Fund. The limited tax obligation bonds are paid by the Qualified Capital Purpose Fund. Detail of the Lunch Fund Certificates of Participation follows: Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Central kitchen equipment/remodeling Amount: $2,125,000 Dated: October 15, 2009 Interest Rate: % Principal Due: September 15 and March 15, commencing September 15, 2010 through September 15, Interest Due: March 15 and September 15, commencing March 15, 2010 through September 15,

44 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the Lunch Fund Certificates of Participation follows, continued: Coupon September March Total Principal Fiscal Year Rate Principal Interest Principal Interest Payments Balance $ 955, % $ 155,000 $ 13,550 $ 155,000 $ 11,612 $ 335, , % 155,000 9, ,000 7, , , % 330,000 4, ,950 - $ 640,000 $ 27,981 $ 315,000 $ 18,962 $ 1,001,943 Detail of the General Obligation Bonds follows: General Obligation Bonds 2003 Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Refunding of remaining Series 1993 and 1994 bonds Amount: $13,540,000 Dated: January 15, 2003 Interest Rate: % Principal Due: December 1 commencing 2003 to 2018 Interest Due: December 1 and June 1 commencing 2003 to 2018 Callable: December 1, 2012 During the year ended August 31, 2012, the District made provision for the payment, discharge and defeasance of $9,340,000 of the Series 2003 General Obligation Bonds by depositing sufficient funds in trust. These funds were used to purchase direct obligations of the United States of America which, together with the interest to be earned on such obligations, will be sufficient for the payment of the principal and interest on the defeased bonds. Consequently, all of such bonds are deemed to be paid and discharged. Final principal payments on bonds that were not advance defeased were made during the year ended August 31,

45 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the General Obligation Bonds follows, continued: General Obligation Bonds 2005 Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Constructing a new middle school and constructing a six-classroom addition and improvements for both the existing Barr Middle School and the existing Walnut Middle School. Amount: $19,950,000 Dated: November 1, 2005 Interest Rate: % Principal Due: December 15 commencing 2009 to 2025 Interest Due: December 15 and June 15 commencing 2006 to 2025 Callable: December 15, 2015 A schedule of the remaining bond principal and interest attributable to the 2005 issue follows: Coupon December June 15 Total Principal Fiscal Year Rate Principal Interest Interest Payments Balance $ 335, % $ 180,000 $ 6,945 $ 3,255 $ 190, , % 155,000 3, ,255 - $ 335,000 $ 10,200 $ 3,255 $ 348,455 During the year ended August 31, 2012, the District made provision for the payment, discharge and defeasance of $18,815,000 of the outstanding obligations of the Series 2005 General Obligation Bonds by depositing sufficient funds in trust. These funds were used to purchase direct obligations of the United States of America which, together with the interest to be earned on such obligations, will be sufficient for the payment of the principal and interest on the defeased bonds. Consequently, all of such bonds are deemed to be paid and discharged. 41

46 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the General Obligation Bonds follows, continued: General Obligation Bonds 2011 Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Refunding Series 2003 bonds Amount: $9,995,000 Dated: September 28, 2011 Interest Rate: % Principal Due: December 1 commencing 2011 to 2018 Interest Due: December 1 and June 1 commencing 2011 to 2018 Callable: September 28, 2016 A schedule of the remaining bond principal and interest attributable to the 2011 issue follows: Coupon December June 1 Total Principal Fiscal Year Rate Principal Interest Interest Payments Balance $ 8,280, % $ 1,380,000 $ 48,995 $ 44,165 $ 1,473,160 6,900, % 1,950,000 44,165 34,902 2,029,067 4,950, % 1,970,000 34,903 23,082 2,027,985 2,980, % 1,995,000 23,082 8,619 2,026, , % 985,000 8, ,619 - $ 8,280,000 $ 159,764 $ 110,768 $ 8,550,532 42

47 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the General Obligation Bonds follows, continued: General Obligation Bonds 2012 Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Refunding the Series 2005 and 2008 bonds Amount: $21,340,000 Dated: March 15, 2012 Interest Rate: % Principal Due: December 15 commencing 2012 to 2025 Interest Due: December 15 and June 15 commencing 2012 to 2025 Callable: December 15, 2021 A schedule of the remaining bond principal and interest attributable to the 2012 issue follows: Coupon December June 15 Total Principal Fiscal Year Rate Principal Interest Interest Payments Balance $ 20,365, % $ 750,000 $ 338,563 $ 331,062 $ 1,419,625 19,615, % 245, , , ,675 19,370, % 400, , ,612 1,053,225 18,970, % 415, , ,462 1,060,075 18,555, % 425, , ,212 1,061,675 18,130, % 2,485, , ,937 3,080,150 15,645, % 2,560, , ,537 3,079,475 13,085, % 2,635, , ,012 3,076,550 10,450, % 2,715, , ,700 3,070,713 7,735, % 2,820, ,700 98,300 3,073,000 4,915, % 2,935,000 98,300 39,600 3,072,900 1,980, % 1,980,000 39,600-2,019,600 - $ 20,365,000 $ 2,972,617 $ 2,634,046 $ 25,971,663 43

48 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the Limited Tax Obligation Bonds follows: Build America Bonds Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Central kitchen project and SANDS Alternative High School remodel Amount: $5,500,000 Dated: November 12, 2009 Interest Rate: % Principal Due: December 15 commencing 2010 to 2024 Interest Due: December 15 and June 15 commencing 2010 to 2024 A schedule of the remaining bond principal and interest attributable to the 2009 issue follows: December June 15 Total Principal Fiscal Year Principal Interest Interest Payments Balance $ 4,730, $ 370,000 $ 113,083 $ 107,079 $ 590,162 4,360, , ,080 99, ,044 3,980, ,000 99,964 91, ,652 3,590, ,000 91,688 82, ,288 3,190, ,000 82,600 72, ,481 2,780, ,000 72,881 62, ,263 2,355, ,000 62,382 51, ,563 1,915, ,000 51,181 39, ,553 1,460, ,000 39,372 26, , , ,000 26,938 13, , , ,000 13, ,865 - $ 4,730,000 $ 761,034 $ 647,950 $ 6,138,984 44

49 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Detail of the Limited Tax Obligation Bonds follows, continued: Limited Tax General Obligation Bonds Issuer: Hall County School District 002 (Grand Island, Nebraska, School District) Purpose: Various indoor air quality projects Amount: $1,610,000 Dated: September 12, 2012 Interest Rate: % Principal Due: June 15 commencing 2013 to 2014 Interest Due: December 15 and June 15 commencing 2012 to 2014 Final principal payment was made on this bond issue during the year ended August 31, Detail of the Capital Lease follows: Capital Lease On July 21, 2011, the School District entered into a 60-month capital lease for district copiers and printers expiring in The principal balance due on this lease was $450,083 at August 31, 2014, and it bears interest of 4.25 percent. Monthly principal and interest payments of $10,872 are due commencing July 21, 2011 through May 21, Remaining principal and interest due on the capital lease are: Capital Leases Fiscal Year Principal Interest Total $ 123,495 $ 6,969 $ 130, ,820 1,755 96,575 $ 218,315 $ 8,724 $ 227,039 45

50 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE F LONG-TERM LIABILITIES, continued Combined long-term debt service requirements at August 31, 2014, are: Year Ended Governmental Activities Business-type Activities August 31, Principal Interest Total Principal Interest Total 2015 $ 2,803,495 $ 1,000,116 $ 3,803,611 $ 310,000 $ 25,162 $ 335, ,824, ,796 3,775, ,000 16, , ,760, ,862 3,662, ,000 4, , ,810, ,064 3,661, ,820, ,775 2,620, ,490,000 2,611,380 18,101, ,420, ,365 5,611, $ 33,928,315 $ 7,308,358 $ 41,236,673 $ 955,000 $ 46,943 $ 1,001,943 NOTE G PENSION PLAN Plan Description - Grand Island Public Schools contributes to the Nebraska School Employees Retirement System, a cost-sharing multiple-employer defined benefit pension plan administered by the Nebraska Public Employees Retirement System (NPERS). NPERS provides retirement and disability benefits to plan members and beneficiaries. The School Employees Retirement Act establishes benefit provisions. NPERS issues a publicly available financial report that includes financial statements and required supplementary information for NPERS. That report may be obtained by writing NPERS, P.O. Box 94816, Lincoln, NE or by calling Funding Policy - Plan members were required to contribute 8.88 percent of their annual covered salary from September 1, 2011 through August 31, Plan members were required to contribute 9.78 percent of their annual covered salary from September 1, 2012 through August 31, Plan members were required to contribute 9.78 percent of their annual covered salary from September 1, 2013 through August 31, Grand Island Public Schools is required to contribute 101 percent of the employee contribution. The contribution requirements of plan members and Grand Island Public Schools are established by the Nebraska statutes. The School District s contributions to NPERS for the years ended August 31, 2012, 2013, and 2014 were $5,451,315, $6,061,541, and $6,216,014, respectively, equal to the required contributions for each year. 46

51 NOTE H ANNEXATION GRAND ISLAND PUBLIC SCHOOLS NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 As a result of the City of Grand Island annexation ordinances, the Grand Island School District acquired portions of School Districts #3, #30, and #38 as of August 15, With District #3, an arrangement was made to split tax receipts from the annexed area until the school year subject to a per pupil cost limitation. Students in the annexed area born before the date of annexation attended District #3; those born after the date of annexation could, until the school year, attend the school of their choice. Subsequent to the school year, all students in the annexed area attend the Grand Island Public Schools unless they use enrollment options or enroll in private schools. NOTE I RISK MANAGEMENT The School District is exposed to various risks of losses related to torts; thefts of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The School District maintains commercial insurance coverage covering each of the above risks of loss. Management believes that the coverage is adequate to preclude any significant uninsured risk of exposure to the School District. Settled claims in the past three years have not exceeded the coverages. Deposits and Investments Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the School District will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All of the underlying securities for the School District s investments at August 31, 2014 are held in the name of the School District. The underlying securities consist of a Wells Fargo interest-bearing sweep account, Wells Fargo Money Market Funds, and Nebraska Liquid Asset Funds. Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the School District s investment policy requires that market conditions and investment securities be analyzed to determine the maximum yield to be obtained and to minimize the impact of rising interest rates. The Nebraska Liquid Asset Fund certificate of deposit maturities are as follows: Maturity Date by Month Amount November 2014 $ 1,839,000 December ,000 January ,000 August ,383,000 $ 6,695,000 47

52 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE I RISK MANAGEMENT, continued Deposits and Investments, continued Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. The School District s investments consist of certificates of deposit, a Wells Fargo interest-bearing sweep account, Wells Fargo Money Market Funds, and Nebraska Liquid Asset Funds, minimizing credit risk associated with the School District s investment portfolio. Concentration of Credit Risk. The School District s investment policy places no limit on the amount that may be invested in any one issuer. At August 31, 2014, the School District s deposits consisted of the following: Financial Institution Amount Wells Fargo Bank $ 21,833,332 Nebraska Liquid Asset Fund 8,400,431 Five Points Bank 1,446,592 $ 31,680,355 Foreign Currency Risk. This risk relates to adverse effects on the fair value of an investment from changes in exchange rates. The School District s investments had no exposure to foreign currency risk and the School District held no investments denominated in foreign currency at August 31, NOTE J INTERFUND ACTIVITY The School District transferred $232,200 from the General Fund to the Activity Fund during the year ended August 31, 2014, for annual activities support. 48

53 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE J INTERFUND ACTIVITY, continued The following transfers were also made from the General Fund during the year ended August 31, These transfers between governmental funds were eliminated from the totals presented on page 17. Fund Receiving Transfer Amount Purpose Cooperative Fund $ 1,631,509 Federal grants NOTE K OPERATING LEASE On July 21, 2011, the School District entered into a new operating lease with Eakes for service and supplies on copiers and printers. The monthly payment under this contract is $11,935. The payments are due commencing July 21, 2011 through May 21, Future payments due under the operating lease are as follows: Year Ending August 31, Amount 2015 $ 143, ,414 $ 250,633 Payments made under the operating lease totaled $143,219 for the year ended August 31,

54 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE L SECTION 125 PLAN The District has a Section 125 Cafeteria Plan for the benefit of its employees. At August 31, 2014, the Section 125 checking account had a balance of $182,282. The balance of unclaimed employee funds for the plan year as of August 31, 2014, was $65,248. The $117,034 remaining cash balance represents prior-year employee forfeitures. NOTE M CONSTRUCTION COMMITMENTS At August 31, 2014, the District had the following commitments on construction projects: Amount Paid on Expected Contractual Contracts Remaining Completion Description Commitments as of 8/31/14 Commitment Date Engleman architectural fees $ 168,490 $ 101,094 $ 67,396 December 2015 Barr architechtural fees 15,000 9,900 5,100 December 2018 Shoemaker architechtural fees 416, , ,900 December 2016 Westridge skills renovation 207, ,633 20,737 Fall 2014 Barr roofing project 225,918 91, ,551 October 2014 Gates roofing project 69,486 58,486 11,000 Fall 2014 Howard parking lot 51,751-51,751 September 2014 Jefferson parking lot 48,429-48,429 October 2014 Howard HVAC project 1,229,328 1,162,732 66,596 Fall 2014 $ 2,432,272 $ 1,776,812 $ 655,460 NOTE N CONTINGENCIES The District is involved in pending lawsuits and claims on matters containing allegations relating to discrimination, personal injury, negligence and treatment of students. No provision has been made in the financial statements for any loss that might arise in the event of an unfavorable outcome of these matters. District management estimates that such litigation and claims will ultimately be resolved without material financial liability to the District in excess of applicable insurance coverage. However, events could occur in the near term that would change this estimate materially. 50

55 NOTES TO FINANCIAL STATEMENTS, Continued August 31, 2014 NOTE O PLEDGES RECEIVABLE For the year ended August 31, 2014, the component unit considered pledges receivable to be fully collectible; accordingly, no allowance for uncollectible pledges was recorded. Pledges receivable activity for the year ended August 31, 2014, is as follows: Pledges receivable at beginning of year $ 1,269,409 New pledges 470,186 Less: Collections (862,817) Pledges receivable at end of year $ 876,778 Pledges outstanding at August 31, 2014, are expected to be collected as follows: Receivable in less than one year $ 543,995 Receivable in one to five years 332,783 $ 876,778 NOTE P SUBSEQUENT EVENTS Management has evaluated subsequent events through October 15, 2014, the date on which the financial statements were available for issue. During September 2014, voters approved a $69.9 million bond issue to build new schools at Jefferson Elementary, Starr Elementary, and Stolley Park Elementary; expand Engleman Elementary and Shoemaker Elementary; renovate and expand Barr Middle School; and renovate the 100 wing at Grand Island Senior High. These projects are expected to occur over the next five years. 51

56 SUPPLEMENTARY AND OTHER INFORMATION

57 RECEIPTS Taxes: GRAND ISLAND PUBLIC SCHOOLS BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget Property $ 27,487,230 $ 25,467,323 $ (2,019,907) Motor vehicle 3,500,000 3,022,297 (477,703) Homestead exemption - 938, ,559 Pro-rate motor vehicle 100,000 93,383 (6,617) Carline 50,000 18,694 (31,306) Property tax credit - 764, ,327 Fines and licenses 950, ,412 (89,588) ESU and other county receipts 5,000,000 - (5,000,000) State aid and grants 53,270,885 50,629,378 (2,641,507) Federal grants 9,000,000 5,066,271 (3,933,729) Interest 10,000 5,756 (4,244) Other (500) Total receipts 99,368,615 86,866,400 (12,502,215) EXPENDITURES Instructional services 70,229,615 60,922,783 (9,306,832) Support services: Pupil 3,500,000 3,451,767 (48,233) Instructional staff 2,900,000 3,142, ,727 General administration 1,603,000 1,560,444 (42,556) School administration 3,900,000 3,763,998 (136,002) Business 839, ,601 (225,399) Building and grounds 8,250,000 10,942,612 2,692,612 Pupil transportation 502, ,958 1,958 State categorical grants 360, ,642 37,642 Federal programs 9,000,000 5,813,107 (3,186,893) Summer school 50,000 51,698 1,698 Transfer to other funds 235, ,200 (2,800) Total expenditures 101,368,615 91,396,537 (9,972,078) RECEIPTS OVER (UNDER) EXPENDITURES $ (2,000,000) (4,530,137) $ (2,530,137) Fund balances - August 31, ,091,410 Fund balances - August 31, 2014 $ 25,561,273 52

58 BUDGETARY COMPARISON SCHEDULE - SPECIAL BUILDING FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget RECEIPTS Taxes: Property $ 260,000 $ 246,579 $ (13,421) Homestead exemption - 9,021 9,021 Pro-rate motor vehicle 1, (102) Carline (320) Property tax credit - 7,349 7,349 Interest 500 1,550 1,050 Other 8,000 3,240 (4,760) Total receipts 270, ,817 (1,183) EXPENDITURES Capital outlay 1,403, ,493 (481,507) Other expenses 67,000 2,752 (64,248) Total expenditures 1,470, ,245 (545,755) RECEIPTS OVER (UNDER) EXPENDITURES $ (1,200,000) (655,428) $ 544,572 Fund balances - August 31, ,198,499 Fund balances - August 31, 2014 $ 543,071 53

59 BUDGETARY COMPARISON SCHEDULE - DEPRECIATION FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget RECEIPTS Interest $ 5,000 $ 6,110 $ 1,110 EXPENDITURES Capital outlay 2,000, ,885 (1,163,115) RECEIPTS OVER (UNDER) EXPENDITURES $ (1,995,000) (830,775) $ 1,164,225 Fund balances - August 31, ,836,885 Fund balances - August 31, 2014 $ 4,006,110 54

60 BUDGETARY COMPARISON SCHEDULE - QUALIFIED CAPITAL PURPOSE FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget RECEIPTS Taxes: Property $ 1,392,500 $ 1,272,336 $ (120,164) Homestead exemption - 46,988 46,988 Pro-rate motor vehicle 3,000 4,669 1,669 Carline Property tax credit - 38,216 38,216 Interest 5, (4,858) Other 14,000 75,113 61,113 Total receipts 1,415,000 1,438,399 23,399 EXPENDITURES Capital outlay 980, ,504 (857,496) Debt service: Principal 1,170,000 1,170,000 - Interest 235, ,074 (1) Other 5,041 1,950 (3,091) Total expenditures 2,390,116 1,529,528 (860,588) RECEIPTS OVER (UNDER) EXPENDITURES $ (975,116) (91,129) $ 883,987 Fund balances - August 31, ,596 Fund balances - August 31, 2014 $ 238,467 55

61 BUDGETARY COMPARISON SCHEDULE - COOPERATIVE FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget RECEIPTS Tuition $ 14,047,448 $ 14,625,132 $ 577,684 Federal grants 2,000,000 1,631,509 (368,491) Total receipts 16,047,448 16,256, ,193 EXPENDITURES CNSSP Instruction 16,000,000 16,000,000 - RECEIPTS OVER EXPENDITURES $ 47, ,641 $ 209,193 Fund balances - August 31, ,813 Fund balances - August 31, 2014 $ 1,183,454 56

62 BUDGETARY COMPARISON SCHEDULE - BOND FUND Year ended August 31, 2014 Variances - Budget Actual Over (Original and (Under) Final Final) Actual Budget RECEIPTS Taxes: Property $ 3,047,000 $ 2,887,139 $ (159,861) Homestead exemption - 107, ,036 Pro-rate motor vehicle 10,000 10, Carline 3,000 2,142 (858) Property tax credit - 85,857 85,857 Interest 50,000 (1,002) (51,002) Total receipts 3,110,000 3,091,992 (18,008) EXPENDITURES Debt service: Principal 2,280,000 2,280,000 - Interest 807, ,481 - Other fees 4,519 1,200 (3,319) Total expenditures 3,092,000 3,088,681 (3,319) RECEIPTS OVER (UNDER) EXPENDITURES $ 18,000 3,311 $ (14,689) Fund balances - August 31, ,415,067 Fund balances - August 31, 2014 $ 3,418,378 57

63 COMBINED BALANCE SHEET - OTHER GOVERNMENTAL FUNDS - MODIFIED CASH BASIS For the year ended August 31, 2014 Employee Contingency Benefit Fund Fund Total ASSETS Cash and investments $ 1,006,132 $ 2,967,235 $ 3,973,367 FUND BALANCES Assigned for: Employee benefits $ - $ 2,967,235 $ 2,967,235 Contingencies 1,006,132-1,006,132 Total fund balances $ 1,006,132 $ 2,967,235 $ 3,973,367 58

64 COMBINED STATEMENT OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS - MODIFIED CASH BASIS For the year ended August 31, 2014 Employee Contingency Benefit Fund Fund Total RECEIPTS Interest on investments $ 3,564 $ 6,129 $ 9,693 DISBURSEMENTS Unemployment benefits - 16,187 16,187 RECEIPTS OVER (UNDER) DISBURSEMENTS 3,564 (10,058) (6,494) Fund balances - August 31, ,002,568 2,977,293 3,979,861 Fund balances - August 31, 2014 $ 1,006,132 $ 2,967,235 $ 3,973,367 59

65 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 0000 Executive Director of Information Technology ipad Service Contracts and Repairs $ 24,481 $ 28,586 $ 13,488 $ 39, Administration: Assistant Superintendent - Curriculum: CCC - AP Courses $ 60,845 $ 61,875 $ 31,107 $ 91,613 General - 1, Homeless - Supplies Textbook replacement Assistant Superintendent - Student Services: 5K Run/Walk ,295 7,352 4,815 ILP - Special Education Senior 10,136 16,950 19,324 7,762 Courtesy General 33,749-5,428 28,321 GIMC - Emergency Relief 1, ,367 Multicultural Club Wal-Mart Grant Classroom Mini Grants 4,867 13,668 13,183 5,352 Destination Imagination Driver Education 46,231-46,231 - Director - Business: General 563, , , ,714 Softball 2,339-2,339 - Theater tickets 9,428 22,592 32,020 - Total Administration $ 735,751 $ 266,843 $ 384,272 $ 618, CNSSP: Director - Student Services: Baasch Trust $ 27,335 $ 4,600 $ 14,954 $ 16,981 Patty Lundeen Galraith Fund Transitional living program 1, ,630 Courtesy Special projects 6,837 1,125-7,962 Suicide Prevention Project 4,231 2, ,113 Grant - Principal Financial Group Total CNSSP $ 41,038 $ 8,750 $ 16,322 $ 33, Early Learning Center: Building Principal: Courtesy $ 501 $ 328 $ - $ 829 Facility rental General 3 3,495 3,497 1 Total Early Learning Center $ 504 $ 3,823 $ 3,497 $

66 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued 1903 Newell Elementary: Building Principal: Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance Courtesy $ 1,665 $ 1,119 $ 1,006 $ 1,778 General 4,030 3,539 3,453 4,116 PTA or PTO 2 3,712 2,662 1,052 Student Council 1, , Total Newell Elementary $ 6,729 $ 9,013 $ 8,189 $ 7, Gates Elementary: Building Principal: Courtesy $ 1,249 $ 317 $ 75 $ 1,491 General 3,436 3,758 5,991 1,203 Student Council 2,388 1,100 1,100 2,388 Total Gates Elementary $ 7,073 $ 5,175 $ 7,166 $ 5, Dodge Elementary: Building Principal: Facility rental $ 25 $ - $ - $ 25 General 6,310 2,116 2,229 6,197 MCREL ELA project 2, ,176 PTA or PTO Student Council ,092 Total Dodge Elementary $ 9,963 $ 2,516 $ 2,229 $ 10, Starr Elementary: Building Principal: Character Education $ 119 $ 1,052 $ 766 $ 405 Courtesy Facility rental 16,043-16,043 - General 14,539 21,277 3,523 32,293 PTA Total Starr Elementary $ 30,799 $ 22,407 $ 20,407 $ 32, Howard Elementary: Building Principal: Action for Healthy Kids $ 162 $ - $ - $ 162 Grade Courtesy Facility rental 2, ,652 General 4,985 9,082 8,851 5,216 Lounge PTA or PTO 4, ,173 Popcorn sales Student Council Dollar General Literacy Foundation Grant - 3,997-3,997 Total Howard Elementary $ 14,221 $ 13,845 $ 9,796 $ 18,270 61

67 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, Jefferson Elementary: Building Principal: Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance Books $ 2,642 $ - $ - $ 2,642 Facility rental General 2,018 2, ,070 Grade ,275 Lounge PTA or PTO 8, ,568 Student Council Moonshell Arts Grant Total Jefferson Elementary $ 14,774 $ 4,632 $ 2,396 $ 17, Knickrehm Elementary: Building Principal: Courtesy $ 512 $ 425 $ 208 $ 729 Garden Club General 2,802 8,180 8,478 2,504 PTA or PTO Student Council 903 1, ,337 Total Knickrehm Elementary $ 4,757 $ 9,864 $ 9,734 $ 4, Lincoln Elementary: Building Principal: Class pictures $ 1,047 $ 462 $ 1,090 $ 419 Courtesy Field trips General 1,308 2,668 2,287 1,689 Student Council 1, ,758 Grant - Laura Bush Foundation Total Lincoln Elementary $ 3,829 $ 4,431 $ 4,120 $ 4, Seedling Mile Elementary: Building Principal: Courtesy $ 82 $ - $ - $ 82 Facility rental General 4,834 2, ,347 PTA or PTO 13,345 15,491 14,821 14,015 Student Council Total Seedling Mile Elementary $ 18,898 $ 17,820 $ 15,831 $ 20, Stolley Park Elementary: Building Principal: Character Education $ 2,946 $ - $ 2,756 $ 190 Facility rental 1, ,000 1,134 General 1,402 7,187 2,496 6,093 Library/media Total Stolley Park Elementary $ 6,042 $ 7,693 $ 6,252 $ 7,483 62

68 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 1914 Wasmer Elementary: Building Principal: Courtesy $ 1,238 $ - $ 484 $ 754 Facility rental (104) 2,135 2,031 - General 2,921 9,835 11, MCREL ELA project 4, ,262 Nebraska Arts Council Grant Total Wasmer Elementary $ 8,328 $ 11,970 $ 14,284 $ 6, West Lawn Elementary: Building Principal: Adopt-A-School $ - $ 2,604 $ 970 $ 1,634 Character education 1, Courtesy Facility rental General 4,481 4,277 1,622 7,136 MCREL ELA project 2,786-2,786 - HAL playground project Popcorn Sales Total West Lawn Elementary $ 9,618 $ 6,881 $ 5,818 $ 10, Shoemaker Elementary: Building Principal: Grade 4 $ 834 $ - $ 261 $ 573 Grade Courtesy 1, Facility rental 7,086-2,452 4,634 General 2,051 4,182 4,290 1,943 PTA or PTO 13,332 14,711 24,537 3,506 Total Shoemaker Elementary $ 24,478 $ 18,893 $ 31,744 $ 11, Engleman Elementary: General $ 3,132 $ 11,543 $ 9,749 $ 4,926 63

69 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 5900 Senior High: Director - Student Services: Vocational $ (474) $ 474 $ - $ - Director of Nutrition Services: Nutrition services - Hula's Building Principal: Embroidery class projects 2, ,316 Facility rental ,965 8,657 10,804 Fellowship of Christian Athletes Fines 5,840 3,989-9,829 Friends of Rachel General 2,165 3,463 5,628 - Groundwater Festival Hula's Student Store 5,011 87,606 92,617 - Hulagan's Medical Pathways/HOSA Planner 14, ,877 Pop 4,405-2,800 1,605 GISH Staff Project 1, ,469 Iams Company Grant 1, ,000 Total Building Principal 38, , ,274 43,169 Activities Director: Art Department - Fees (400) 1, Astronomy Club Band (1,077) 17,977 16, Cheerleaders 6,109 47,754 53, Cheerleaders - clinic - 2,410-2,410 Class of Seniors 38,968 8,715 47, Counseling Dept. 1, ,900 Courtesy Culinary Arts DECA (800) Debate (161) Drafting (1,000) 1, Drama (885) 9,950 9,065 - FBLA Faculty study Foreign language General - 1,420 1,420-64

70 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 5900 Senior High, continued: Activities Director, continued: Ind. Tech Lab International Club Islander - 73,569 73,569 - Islander wrestling - 11,111 10, JROTC 5,674 2,460-8,134 JROTC - Clinic 6,387 5,014 8,358 3,043 Key Club Library/media 1,329 5,311 3,467 3,173 European Explorers (10) 2,708 2, Math Fund Multicultural Club National Honor Society 1, NSAA (15,111) 59,622 42,499 2,012 One-act plays (1,500) 1,500 - Orchestra (2,050) 7,838 5,787 1 Physical education (1,400) 12,140 10,740 - Robotics 1, , Renaissance (1,300) 1, SADD Science Social studies Speech ,261 12, Spirit Set 11 26,965 14,888 12,088 Spring musical 4,363 43,889 48,252 - Student Council 4,857 16,454 16,635 4,676 Student lounge (1,000) 1, Telephone Testing 1,003 1,695 1,448 1,250 Trap team Skills U.S.A Vocal music (1,227) 5,305 2,197 1,881 Vocal - Show Choir 1,454 15,794 17,248 - Vocational Gay-Straight Alliance Athletics 21, , , Weight program

71 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 5900 Senior High, continued: Activities Director, continued: Summer clinic - boys BB 2,765 17,139 19,904 - Summer clinic - girls BB 3,650 16,874 16,955 3,569 Summer clinic - volleyball 2,941 10,795 11,827 1,909 Summer clinic - football 11,701 41,016 36,420 16,297 Senior High soccer clinic 3,028 14,390 15,346 2,072 Softball clinic 3,792 11,223 15,014 1 Summer clinic - track 267 7,672 7, Summer clinic - swimming 892 9,956 10, Summer clinic - boys soccer 1,888 6,575 5,139 3,324 Cross country (1,908) 9,953 8,045 - Cross country clinic 1, Youth football 11,000 13,200 5,917 18,283 Football 2,956 57,917 60,872 1 Baseball (391) 37,139 36,747 1 Golf clinic - boys & girls Golf - girls 2,090 5,013 6, Softball 3,898 12,295 12,099 4,094 Tennis - boys 1,079 4,797 5,875 1 Volleyball ,457 16, Wrestling 1,120 50,102 51,222 - Basketball - boys (717) 14,590 13, Basketball - girls (612) 17,437 16,825 - Basketball - intramural - boys 300 1,000-1,300 Swimming 2,620 13,430 14,916 1,134 Track 2,666 21,858 24,523 1 Golf - boys 1,878 3,703 5,581 - Tennis - girls (3,832) 15,229 11,397 - Soccer (2,500) 23,931 21,430 1 Total Activities Director 122,745 1,053,680 1,074, ,481 Total Senior High $ 161,154 $ 1,168,892 $ 1,185,218 $ 144,828 66

72 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 5901 Barr Middle School: Building Principal: Art $ 236 $ - $ - $ 236 Band th Grade 9,593 3,560 4,066 9,087 7th Grade th Grade 1,726 2,957 3,593 1,090 Concessions 1,074 5,588 5, Courtesy Exploratory - Purple Drama 1, ,697 Facility rental (354) Fundraiser General (4,511) 7,547 3,035 1 Hulas - Student Store Library/media 4 3,109 2, Physical education Student Council 5,350 1,984 6,154 1,180 Vocal Music 2,225 10,184 11, Washington D.C. trip 2,166 4,688 4,935 1,919 Athletics 10,330 54,347 64,677 - Total Barr Middle School $ 32,202 $ 94,738 $ 106,924 $ 20,016 67

73 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, 2014 Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance 5902 Walnut Middle School: Building Principal: Art $ 6,198 $ 940 $ 98 $ 7,040 Band 1, ,345 Character Education Team 6A 599 4,403 3,377 1,625 Team 6B , Team 6C Team 7A 2,159 2,255 2,278 2,136 Computers/audio visual Team 7B Team 8A - 1, Team 8B Concessions - 9,898 6,647 3,251 Courtesy Facility rental Future Fisherman grant 3, ,649 Fundraiser 14,039-2,379 11,660 General 2,724 2,728 4, Home Economics 6, ,491 Huligan's Library/media 411 1,762 1, Memory 4,445 4,418 3,931 4,932 Newcomers 1, ,254 Orchestra 1,606 2,538 1,931 2,213 PTA/PTO/PAB Physical education 9,650 16,829 17,785 8,694 Industrial technology 7, ,317 Southard grant 1,562 1,893 1,893 1,562 Staff inservice Vocal music 749 1,548 1,040 1,257 Washington DC trip 2,892 17,746 18,233 2,405 Fuel Up to Play 60 Grant - 3,990 3, Grant - Wells Fargo - 2, ,855 Athletics 2,963 53,870 56,833 - Total Walnut Middle School $ 74,115 $ 133,055 $ 132,651 $ 74,519 68

74 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - ACTIVITY FUND, Continued Year ended August 31, Westridge Middle School: Building Principal: Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance Character education $ 300 $ - $ 95 $ 205 Concessions ,037 4,915 5,556 Courtesy 1, Facility rental ,071 General 6,596 30,518 36, Grade ,132 3,959 - Grade ,361 2,521 1,800 Grade 8 4,387 5,329 7,938 1,778 Hula's - Student Store Memory Book 1,784 4,745 4,679 1,850 Music 46 1,100-1,146 Washington DC Trip 1,860 5,017 5,016 1,861 Athletics (3,027) 50,956 47,929 - Total Westridge Middle School $ 15,934 $ 115,037 $ 114,739 $ 16, Career Pathways Institute: Building Principal: Construction Project $ 272,043 $ 204,515 $ 155,319 $ 321,239 FBLA (800) 3,318 2,518 - Fundraising General - 5, ,745 Family & Consumer Science 3,069 1, ,588 Medical Pathways - HOSA 10 5,767 4,569 1,208 Skills U.S.A ,130 21, Automotive 2,563 1,500-4,063 Manufacturing 3, ,036 Total Career Pathways Institute $ 280,210 $ 245,350 $ 185,459 $ 340,101 TOTAL ACTIVITY FUND $ 1,528,030 $ 2,211,757 $ 2,290,285 $ 1,449,502 69

75 STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND FUND BALANCE - FIDUCIARY FUNDS - STUDENT FEES FUND Year ended August 31, 2014 Extracurricular: 5900 Senior High - Extracurricular Disbursements Beginning Receipts and and Ending Balance Transfers In Transfers Out Balance Activities $ 28,638 $ 24,909 $ 30,100 $ 23, Barr Middle School 4,335 4,620 4,600 4, Walnut Middle School 6,601 6,305 6,600 6, Westridge Middle School 5,395 7,020 6,000 6,415 Total Student Fees $ 44,969 $ 42,854 $ 47,300 $ 40,523 70

76 STATEMENT OF ACCOUNTS WITH COUNTY TREASURERS - HALL AND MERRICK COUNTY TREASURERS Year ended August 31, 2014 (Unaudited) Qualified General Bond Building Capital Purpose Fund Fund Fund Fund Balance - August 31, 2013 $ 7,933,459 $ 947,743 $ 73,765 $ 383,537 Receipts: Property taxes 25,647,765 2,907, ,633 1,281,769 Motor vehicle tax 3,022, Homestead allocation 938, ,036 9,021 46,988 Pro-rate motor vehicle 93,383 10, ,669 In-lieu-of tax 14,316 1, Interest 77,975 9,607 1,462 3,573 Carline 18,694 2, Motor vehicle rental surcharge 1, Property tax credit 764,327 85,857 7,349 38,216 Total receipts 30,578,753 3,124, ,676 1,376,843 Total to be accounted for 38,512,212 4,071, ,441 1,760,380 Disbursements: To School District 30,366,362 3,191, ,871 1,367,498 Treasurers' fees 274,171 31,078 2,649 13,699 Total disbursements 30,640,533 3,222, ,520 1,381,197 Balance - August 31, 2014 $ 7,871,679 $ 849,528 $ 72,921 $ 379,183 71

77 COMPARATIVE STATISTICAL DATA FROM ANNUAL FINANCIAL REPORTS For the years ended August 31, (Unaudited) Assessed Value of School District $ 2,669,698,545 $ 2,609,831,071 $ 2,550,512,664 $ 2,486,056,518 Current Property Tax Budgeted - General Fund $ 27,764,878 $ 27,142,256 $ 26,525,344 $ 24,860,565 Average Daily Attendance (ADA) 8,325 8,229 8,139 8,014 Average Daily Membership (ADM) 8,783 8,613 8,489 8,407 Total Value of Plant and Contents $ 331,400,000 $ 320,000,000 $ 300,000,000 $ 290,600,000 Annual Depreciation of Plant and Contents (3% of Value) $ 9,942,000 $ 9,600,000 $ 9,000,000 $ 8,718,000 Total Adjusted Current Expense 82,668,629 78,091,496 75,716,339 66,545,710 Total Annual Cost $ 92,610,629 $ 87,691,496 $ 84,716,339 $ 75,263,710 Annual Cost Per Pupil - ADA $ 11,124 $ 10,656 $ 10,409 $ 9,391 Annual Cost Per Pupil - ADM $ 10,545 $ 10,181 $ 9,979 $ 8,953 MISCELLANEOUS DATA - At Annual Cost Per Pupil (ADM) RECEIPTS Local $ 3,246 $ 3,477 $ 3,373 $ 3,143 County State 5,969 6,140 6,018 5,840 Federal ,129 1,817 Other Total Receipts for Year 9,890 10,560 10,645 10,894 EXPENDITURES Instruction 6,936 6,631 6,833 5,660 Support Services Administration Operation and Maintenance of Plant 1,246 1,369 1, Pupil Transportation State/Federal/Other ,417 Total Expenditures for Year 10,406 10,326 10,437 10,470 RECEIPTS OVER (UNDER) EXPENDITURES PAID $ (516) $ 234 $ 208 $

78 $ 2,440,165,438 $ 2,373,367,840 $ 2,301,668,487 $ 2,272,247,311 $ 2,170,078,486 $ 1,960,224,011 $ 24,401,650 $ 23,733,678 $ 21,750,778 $ 21,472,738 $ 20,507,250 $ 18,524,125 7,962 7,732 7,440 7,279 7,343 7,070 8,368 8,140 7,869 7,705 7,687 7,441 $ 280,000,000 $ 265,500,000 $ 228,956,290 $ 228,956,000 $ 142,611,557 $ 133,281,829 $ 8,400,000 $ 7,965,000 $ 6,868,689 $ 6,868,680 $ 4,278,347 $ 3,998,455 67,998,067 68,938,142 60,197,822 55,246,013 52,957,430 48,754,559 $ 76,398,067 $ 76,903,142 $ 67,066,511 $ 62,114,693 $ 57,235,777 $ 52,753,014 $ 9,595 $ 9,947 $ 9,014 $ 8,533 $ 7,795 $ 7,462 $ 9,130 $ 9,448 $ 8,523 $ 8,062 $ 7,446 $ 7,089 $ 3,253 $ 3,169 $ 3,046 $ 3,109 $ 2,911 $ 2, ,467 5,455 5,033 4,732 4,347 4,280 1, ,238 9,465 9,026 8,788 7,989 8,089 5,945 6,343 5,769 5,335 5,005 4, , ,132 9,607 8,998 8,369 7,849 7,717 $ 106 $ (142) $ 28 $ 419 $ 140 $

79 GENERAL FUND RECEIPTS Years Ended August 31, Federal 5.83% Interest 0.01% Local 32.82% County 0.99% State 60.35% 2014 Federal 8.05% Interest 0.01% Local 32.92% County 0.87% State 58.15%

80 GENERAL FUND EXPENDITURES Years Ended August 31, Support Services 7.21% Administration 5.83% Business 0.67% Building and Grounds 11.97% Pupil Transportation 0.55% State/Federal/Other 7.11% Instruction 66.66% 2014 Support Services 7.32% Administration 5.61% Business 0.81% Building and Grounds 13.26% Pupil Transportation 0.56% State/Federal/Other 8.22% Instruction 64.22%