LEON COUNTY DISTRICT SCHOOL BOARD. Annual Financial Report. For the Fiscal Year Ended June 30, 2015

Transcription

1 2015 LEON COUNTY DISTRICT SCHOOL BOARD Annual Financial Report For the Fiscal Year Ended June 30, 2015

2 CONTENTS: FLORIDA DEPARTMENT OF EDUCATION SUPERINTENDENT S ANNUAL FINANCIAL REPORT (ESE 145) DISTRICT SCHOOL BOARD OF LEON COUNTY For the Fiscal Year Ended June 30, 2015 Return completed form to: Florida Department of Education Office of Funding and Financial Reporting 325 W. Gaines St., Room 814 Tallahassee, Florida PAGE NUMBER Minimum Reporting CAFR Exhibit A-1 Management s Discussion and Analysis Exhibit B-1 Statement of Net Position Exhibit B-2 Statement of Activities Exhibit C-1 Balance Sheet Governmental Funds Exhibit C-2 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position Exhibit C-3 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Exhibit C-4 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-wide Statement of Activities Exhibit C-5 Statement of Net Position Proprietary Funds Exhibit C-6 ESE 145 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Exhibit C-7 Statement of Cash Flows Proprietary Funds Exhibit C-8 Statement of Fiduciary Net Position Exhibit C-9 Statement of Changes in Fiduciary Net Position Exhibit C-10 Combining Statement of Net Position Major and Nonmajor Component Units Exhibit C-11a-d Combining Statement of Activities Major and Nonmajor Component Units Exhibit D-1 Notes to Financial Statements Exhibit D-2 Schedule of Funding Progress Notes to Required Supplementary Information Exhibit E-1 Exhibit E-2a-d Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Major Special Revenue Funds Exhibit F-1a-d Combining Balance Sheet Nonmajor Governmental Funds Exhibit F-2a-d Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Exhibit G-1 Exhibit G-2 Exhibit G-3 Exhibit G-4 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Debt Service Funds Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Capital Projects Funds Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Permanent Fund Exhibit H-1 Combining Statement of Net Position Nonmajor Enterprise Funds Exhibit H-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Nonmajor Enterprise Funds Exhibit H-3 Combining Statement of Cash Flows Nonmajor Enterprise Funds Exhibit H-4 Combining Statement of Net Position Internal Service Funds Exhibit H-5 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds Exhibit H-6 Combining Statement of Cash Flows Internal Service Funds Exhibit I-1 Combining Statement of Fiduciary Net Position Investment Trust Funds Exhibit I-2 Combining Statement of Changes in Net Position Investment Trust Funds Exhibit I-3 Combining Statement of Fiduciary Net Position Private-Purpose Trust Funds Exhibit I-4 Combining Statement of Changes In Net Position Private-Purpose Trust Funds Exhibit I-5 Combining Statement of Fiduciary Net Position Pension Trust Funds Exhibit I-6 Combining Statement of Changes In Net Position Pension Trust Funds Exhibit I-7 Combining Statement of Fiduciary Assets and Liabilities Agency Funds Exhibit I-8a-d Combining Statement of Changes in Assets and Liabilities Agency Funds Exhibit J-1 Combining Statement of Net Position Nonmajor Component Units

3 CONTENTS: FLORIDA DEPARTMENT OF EDUCATION SUPERINTENDENT S ANNUAL FINANCIAL REPORT (ESE 145) DISTRICT SCHOOL BOARD OF LEON COUNTY For the Fiscal Year Ended June 30, 2015 Return completed form to: Florida Department of Education Office of Funding and Financial Reporting 325 W. Gaines St., Room 814 Tallahassee, Florida PAGE NUMBER Minimum Reporting CAFR Exhibit J-2a-d Combining Statement of Activities Nonmajor Component Units The Superintendent s Annual Financial Report (ESE 145) for the fiscal year ended June 30, 2015, was submitted in accordance with rule 6A , Florida Administrative Code (section (12)(b), Florida Statutes). This report was approved by the school board on September 8, 2015 (date). District Superintendent s Signature Date ESE 145

4 MANAGEMENT S DISCUSSION AND ANALYSIS

5 2015 As management of the Leon County District School Board (the District), we offer readers of the District s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, FINANCIAL HIGHLIGHTS Key financial highlights for the fiscal year are as follows: The assets of the District exceeded its liabilities at the close of the most recent fiscal year by $239.7 million. Total revenues of $332.3 million were comprised of general revenues in the amount of $251.2 million, or 75.5 percent, and program specific revenues from charges for services and grants and contributions in the amount of $81.1 million or 24 percent. For the fiscal year ended June 30, 2015, the District had $347.9 million in expenses related to governmental activities; $21.5 million of which were offset by program specific charges for services, grants, and other sources. General revenues (primarily taxes and State funding programs) of $310.7 million were collected for the District s programs resulting in an increase in net position of $14.2 million. The unrestricted net position deficit of $108.5 million on the statement of net position represents the excess of current and long-term future financial liabilities over current financial resources, due primarily to the unfunded liability for compensated absences and other postemployment benefits. As of the close of the fiscal year, the District s governmental funds reported combined ending fund balances of $164.3 million, a decrease of $7.5 million in comparison with the prior fiscal year. Approximately 7.5 percent of this total amount, $12.4 million, is available for spending at the District s discretion for the purposes defined for each governmental fund (unassigned fund balance). Based on General Fund expenditures for the fiscal year of $258.1 million, the operating cost per day, assuming 260 days, was $992 thousand as compared to $978 thousand for the fiscal year, which resulted in an increase of 2.5 percent. At the end of the fiscal year, the unassigned fund balance for the General Fund is $12.4 million, or 4.8 percent of total General Fund expenditures. The District s long-term debt for bonds, certificates of participation, and notes payable decreased by $2.6 million, or 1.1 percent during the current fiscal year. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the District s basic financial statements, which consist of three components: Government-wide financial statements; Fund financial statements; and Notes to financial statements. Government-wide Financial Statements MANAGEMENT S DISCUSSION AND ANALYSIS The government-wide financial statements provide both short-term and long-term information about the District s overall financial condition in a manner similar to those of a private-sector business. The statements include a statement of net position and a statement of activities that are designed to provide consolidated financial information about the governmental and business-type activities of the District presented on the accrual basis of accounting.

6 2015 The statement of net position provides information about the District s assets and liabilities, with the difference between the two reported as net position. Assets less liabilities equal net position which is a measure of the District s financial health. The statement of activities provides information showing how the District s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused vacation and sick leave). All of the District s activities and services are reported in the government-wide financial statements as governmental activities, including instruction, student support services, instructional support services, administrative support services, facility maintenance, transportation, and food services. Property taxes, sales taxes, and State assistance finance most of these activities. Additionally, all capital and debt financing activities are reported as governmental activities. Business-type activities, which include functions that are intended to recover all or a significant portion of their costs through user fees and charges, includes the District s Permitting Office. The government-wide financial statements include not only the District (known as the primary government), but also The Foundation for Leon County Schools, Inc., and the combined activities of the six legally separate charter schools. Financial information for these component units is reported separately from the financial information presented for the primary government. The Leon County District School Board Voluntary Employee Benefits Trust (Trust) and the Leon County School Board Leasing Corporation (Leasing Corporation), although also legally separate entities, were formed to administer the District s group health, life, and dental insurance program and facilitate financing for the acquisition of facilities and equipment, respectively. Due to the substantive economic relationships between the District and the Trust and Leasing Corporation, their financial activities have been included as an integral part of the primary government. Fund Financial Statements Fund financial statements are one of the components of the basic financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other State and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the District s funds can be divided into one of three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and government-wide activities.

7 2015 The governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances provide detailed information about the District s most significant funds. The District s major funds are the General Fund, Special Revenue Other Fund, Special Revenue Federal Economic Stimulus Fund, Debt Service ARRA Economic Stimulus Fund, Capital Projects District Bonds Fund, Capital Projects ARRA Economic Stimulus Fund, and Capital Projects Other Fund. Data from the other governmental funds are combined into a single, aggregated presentation. The District adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the General and major Special Revenue Funds to demonstrate compliance with the budget. Proprietary Funds: Proprietary funds may be established to account for activities in which a fee is charged for services. The District s only proprietary fund is classified as an enterprise fund. Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The District uses the enterprise fund to account for the activities of the District Permitting Office. Fiduciary Funds: Fiduciary funds are used to report assets held in a trustee or fiduciary capacity for the benefit of external parties, such as student activity funds. Fiduciary funds are not reflected in the government-wide statements because the resources are not available to support the District s own programs. In its fiduciary capacity, the District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes. The District uses a private-purpose trust fund to account for scholarship funds established by private donors. The District uses an employee benefits trust fund to account for the financial resources of the Leon County District School Board Voluntary Employee Benefits Trust. The District uses agency funds to account for resources held for student activities and groups. Notes to Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition, to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the District s progress in funding its obligation to provide other postemployment benefits to its employees. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position over time may serve as a useful indicator of a government s financial health. In the case of the District, assets exceeded liabilities by $239.7 million at the close of the most recent fiscal year. The net position is segregated into net investment in capital assets, restricted net position, and unrestricted net position. For the Net Investment in Capital Assets, capital assets (e.g., land, buildings, machinery, and equipment), are stated at their cost at the time of acquisition, net of accumulated depreciation and less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide educational and related services to its students; consequently, these assets are not available for future spending. Although the District's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted net position is constrained by debt covenants, enabling legislation or other legal requirements. Unrestricted net position is

8 2015 the portion of net position that can be used to meet the District's ongoing obligations to citizens and creditors. The deficit in unrestricted net position is primarily due to three factors: The District has never budgeted the amount needed to fully finance liabilities arising from property and casualty claims. The District is self-insured for these claims up to specific limits. The District has never had the resources, currently available, to budget unused employee vacation and sick days. Implementation of Governmental ing Standards Board Statement No. 45 reporting began with the fiscal year ending June 30, It requires the District to disclose a liability which represents the obligation for postemployment benefits for retirees. This is an implied amount and there currently is no available budget to fund the liability. The intent of the government-wide statements is to provide a long-term outlook of the financial position of the District. The unrestricted net position s deficit of $108.5 million reflects the long-term requirement to pay for obligations that will become due in future years. For example, compensated absences liability totals $29.6 million. An estimated $3.2 million will be due and payable in the fiscal year. The following is a summary of the District s net position as of June 30, 2015, compared to net position as of June 30, 2015: Net Position, End of Year Governmental Activities Business-Type Activities Total Current and Other Assets $ 178,510,733 $ 188,882,283 $ 76,048 $ 109,949 $ 178,586,781 $ 188,992,232 Capital Assets 350,657, ,818, ,657, ,818,901 Total Assets 529,168, ,701,184 76, , ,244, ,811,133 Long-Term Liabilities 275,276, ,181, ,276, ,181,027 Other Liabilities 14,121,824 17,040, ,237 14,122,124 17,045,023 Total Liabilities 289,398, ,221, , ,398, ,226,050 Net Position: Net Investment in Capital Assets 196,377, ,990, ,377, ,990,141 Restricted 151,983, ,805, ,983, ,805,605 Unrestricted (Deficit) (108,515,759) (95,316,375) 75, ,712 (108,515,759) (95,210,663) Total Net Position $ 239,769,700 $ 225,479,371 $ 75,749 $ 105,712 $ 239,845,449 $ 225,585,083 The District s net position increased in total by $14.2 million during the fiscal year. The restricted portion of the District s net position represents resources that are subject to external restrictions on how they may be used.

9 2015 FINANCIAL ANALYSIS OF THE DISTRICT S FUNDS Governmental Funds The focus of the District s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District s financing requirements. Specifically, unassigned fund balance may serve as a useful measure of a government s net resources available for discretionary use as it represents the portion of fund balance that has not been limited to a particular purpose by an external party, the District, or a group or individual delegated authority by the Board to assign resources for particular purposes. As of the end of the current fiscal year, the District s governmental funds combined ending fund balances were $164.3 million, a decrease of $6.7 million in comparison with the prior year. Approximately 7.5 percent of this amount is unassigned fund balance ($12.4 million), which is available for spending at the District s discretion. The remainder of the fund balance is nonspendable, restricted, committed or assigned to indicate that it 1) not in spendable form ($1. million), 2) restricted for particular purposes ($103 million), 3) committed (575 thousand) or 4) assigned for particular purposes ($46.8 million). Major Governmental Funds The General Fund is the District s chief operating fund. At the end of the current fiscal year, unassigned fund balance is $12.4 million, while the total fund balance is $32.7 million. As a measure of the General Fund s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total expenditures. Unassigned fund balance represents 4.8 percent of total General Fund expenditures, which the total fund balance represents 12.4 percent of that same amount. The fund balance of the District s General Fund decreased $1.3 million during the current fiscal year. The Special Revenue Other Fund has total revenues and expenditures of $20.5 million each for Federal grants administered primarily through the State cash advance system. Since Federal grant revenue is recognized to the extent the eligible expenditures have been incurred, this fund generally does not accumulate a fund balance. The Special Revenue Federal Economic Stimulus Fund accounted for Federal stimulus money received for the State Fiscal Stabilization Fund program. This fund had total revenues and expenditures of $1.2 million each. Since Federal grant revenue is recognized to the extent that eligible expenditures have been incurred, this fund generally does not accumulate a significant fund balance. Race-to-the-Top funding makes up the majority of these funds. Race-to-the- Top funds are being used to close student achievement gaps within the District. This is a five-year funded program which ended in fiscal year. The Debt Service ARRA Economic Stimulus Fund, which is used to account for debt service activity for Qualified School Construction Bonds (QSCB), has a total fund balance of $4.3 million, which is restricted for the payment of debt. The Capital Projects District Bonds Fund, which is used to account for the accumulation of financial resources generated by the Sales Tax Revenue Bond, Series 2014, had a total fund balance of $58 million, which is restricted for capital projects. The Capital Projects ARRA Economic Stimulus Fund, which is used to account for proceeds of the District s QSCB issues, had a fund balance of zero at fiscal year-end as the QSCB construction projects were completed.

10 2015 The Capital Projects Other Fund, which is used to account for capital project activity funded by sources such as certificates of participation and local sales taxes, had a total fund balance of $24 million, which is restricted for capital projects. It should be noted that $11.5 million has been encumbered for specific projects. GENERAL FUND BUDGETARY HIGHLIGHTS Many changes are made to the budget over the course of the year. Each change is submitted to the Board for approval. A recap of the significant changes as of June 30, 2015, is listed below: The original budget for State sources of revenues in the General Fund totaled $153.4 million and the final budget is lower by $500 thousand. The overall budget for revenues in the General Fund increased by $4 million over the original to the final budget, and total expenditure appropriations increased $6 million, or 2.2 percent, over the course of the fiscal year. Actual revenues and other financing sources were generally in line with the final budgeted amounts, while actual expenditures were $25 million less than the final budgeted amounts. CAPITAL ASSETS AND LONG-TERM DEBT Capital Assets The District s investment in capital assets as of June 30, 2015, is $350.6 million (net of accumulated depreciation). This investment in capital assets includes land; construction in progress; improvements other than buildings; buildings and fixed equipment; furniture, fixtures, and equipment; motor vehicles; audio visual materials; and computer software. There was a net increase in the value of the District s capital assets this fiscal year primarily due to additions to construction in progress, which will increase in the buildings and fixed equipment category upon completion.. This amount represents a net increase of $19.8 million from the fiscal year. Capital Assets (net of depreciation) Governmental Activities Land $ 15,590,442 $ 15,590,442 Construction in Progress 47,261,009 23,299,217 Improvements Other Than Buildings 7,704,799 7,834,530 Buildings and Fixed Equipment 265,959, ,997,846 Furniture, Fixtures, and Equipment 4,780,289 8,122,589 Motor Vehicles 6,702,680 7,975,052 Audio Visual Materials 1,155, ,095 Computer Software 1,503,388 1,567,130 Total Capital Assets $ 350,657,639 $ 330,818,901

11 2015 Long-Term Debt At June 30, 2014, the District has total long-term debt outstanding of $225.2 million. Of that total, $2.8 million is considered to be State School Bonds (i.e., backed by the full faith and credit of the State of Florida), an additional $80.9 million is secured by District sales tax revenue. Another $10.3 million in a note payable (2.2 million) and lease purchase (8.1 million) is secured by the General Fund ad valorem tax revenue. The remainder of the District s debt consists of certificates of participation payable of $131.2 million. Schedule of Outstanding Debt Governmental Activities Note Payable $ 10,353,870 $ 3,360,000 State School/Sales Tax Revenue Bonds 83,663,056 87,900,473 Certificates of Participation Payable 131,188, ,559,144 Total Long-Term Debt $ 225,205,185 $ 227,819,617 During the current fiscal year, the District s long-term debt decreased by $2.6 million, or 1.14 percent. On December 14, 2014, the District entered into a Lease Purchase Agreement in the amount of $8.1 million which will mature in the year The District maintains an AA rating from Fitch for its general obligation bonds and an AA rating from Fitch for its certificates of participation and sales tax revenue bonds. These ratings were affirmed in December Moody s Investors Service affirmed the District s Aa3 bond rating in December This is a positive stance for the District in an economic climate that finds many institutional bond ratings declining. OTHER MATTERS OF SIGNIFICANCE The budget for the State of Florida seems to be improving. State economists expect tax collections to grow by 4.3 percent in the coming year, and then grow an additional 5 percent in the year after that. Property tax and documentary tax collections are growing strongly. The three main drivers of Florida s economy are development, (e.g., home construction), tourism, and agriculture. These economic drivers generate much of the money to pay for State services. REQUESTS FOR INFORMATION This financial report is designed to provide citizens, taxpayers, customers, investors, and creditors with a general overview of the District s finances and to demonstrate compliance and accountability for its resources. Questions concerning information provided in the MD&A or other required supplementary information, and financial statements and notes thereto, or requests for additional financial information should be addressed to the Chief Financial Officer, Leon County District School Board, 2757 West Pensacola Street, Tallahassee, FL

12 GOVERNMENT- WIDE FINANCIAL STATEMENTS

13 Exhibit B-1 Page 2 DISTRICT SCHOOL BOARD OF LEON COUNTY STATEMENT OF NET POSITION June 30, 2015 Major Component Unit Name Component Units Major Component Unit Name Total Nonmajor Component Units Governmental Activities Business-Type Activities Total ASSETS Cash and Cash Equivalents ,963, , ,039, ,240, Investments , , Taxes Receivable, Net , , s Receivable, Net , , ,14 Interest Receivable on Investments 1170 Due From Other Agencies ,698, ,698, , Due From Insurer 1180 Deposits Receivable , Internal Balances 795, , Cash with Fiscal/Service Agents ,981, ,981, Section , F.S. Loan Proceeds 1420 Inventory ,549, ,549, Prepaid Items , Long-Term Investments 1460 Prepaid Insurance Costs 1430 Other Postemployment Benefits Asset 1410 Pension Asset 1415 Capital Assets Land ,590, ,590, , Land Improvements - Nondepreciable 1315 Construction in Progress ,261, ,261, , Nondepreciable Capital Assets 62,851, ,851, ,073, Improvements Other Than Buildings ,506, ,506, Less Accumulated Depreciation 1329 (27,801,243.47) (27,801,243.47) Buildings and Fixed Equipment ,676, ,676, ,218, Less Accumulated Depreciation 1339 (190,716,915.79) (190,716,915.79) (542,497.00) Furniture, Fixtures and Equipment ,931, ,931, , Less Accumulated Depreciation 1349 (52,154,990.41) (52,154,990.41) (250,656.00) Motor Vehicles ,274, ,274, ,50 Less Accumulated Depreciation 1359 (20,572,184.25) (20,572,184.25) (19,783.00) Property Under Capital Leases 1370 Less Accumulated Depreciation 1379 Audiovisual Materials ,550, ,550, , Less Accumulated Depreciation 1388 (4,390,691.87) (4,390,691.87) (20,807.00) Computer Software ,470, ,470, , Less Accumulated Amortization 1389 (967,302.36) (967,302.36) (4,592.00) Depreciable Capital Assets, Net 287,806, ,806, ,717, Total Capital Assets 350,657, ,657, ,790, Total Assets 529,168, , ,244, ,739, DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Net Carrying Amount of Debt Refunding , Pension 1940 Total Deferred Outflows of Resources 23, LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits ,948, ,948, , Payroll Deductions and Withholdings , s Payable ,881, ,882, , Sales Tax Payable Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable , , Due to Other Agencies , Due to Fiscal Agent ,00 3,00 3,15 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage ,021, ,021, Estimated Unpaid Claims - Self-Insurance Program 2271 Estimated Liability for Claims Adjustment 2272 Estimated Liability for Arbitrage Rebate 2280 Unearned Revenues , , ,20 Noncurrent Liabilities Portion Due Within One Year: Notes Payable ,981, ,981, , Obligations Under Capital Leases , Bonds Payable ,141,00 5,141,00 Liability for Compensated Absences ,219, ,219, , Lease-Purchase Agreements Payable ,472,00 5,472,00 Estimated Liability for Long-Term Claims 2350 Net Other Postemployment Benefits Obligation 2360 Net Pension Liability 2365 Estimated PECO Advance Payable 2370 Other Long-Term Liabilities 2380 Derivative Instrument 2390 Estimated Liability for Arbitrage Rebate 2280 Due Within One Year 15,814, ,814, , Portion Due After One Year: Notes Payable ,372, ,372, ,11 Obligations Under Capital Leases ,624, Bonds Payable ,522, ,522, Liability for Compensated Absences ,411, ,411, , Lease-Purchase Agreements Payable ,716, ,716, Estimated Liability for Long-Term Claims ,480,22 4,480,22 Net Other Postemployment Benefits Obligation ,960, ,960, Net Pension Liability 2365 Estimated PECO Advance Payable 2370 Other Long-Term Liabilities 2380 Derivative Instrument 2390 Estimated Liability for Arbitrage Rebate 2280 Due in More than One Year 259,462, ,462, ,623, Total Long-Term Liabilities 275,276, ,276, ,863, Total Liabilities 289,398, ,398, ,978, DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deficit Net Carrying Amount of Debt Refunding 2620 Deferred Revenues 2630 Pension 2640 Total Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets ,377, ,377, , Restricted For: Categorical Carryover Programs 2780 Food Service ,815, ,815, Debt Service ,186, ,186, Capital Projects ,670, ,670, Other Purposes ,311, ,311, , Unrestricted 2790 (108,591,508.03) 75, (108,515,759.42) 700, Total Net Position 239,769, , ,845, , The notes to financial statements are an integral part of this statement. ESE 145 Primary Government

14 Exhibit B-2 Page 3 DISTRICT SCHOOL BOARD OF LEON COUNTY STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2015 FUNCTIONS Expenses Charges for Services Program Revenues Operating Grants and Contributions Governmental Activities Net (Expense) Revenue and Changes in Net Position Primary Government Business-Type Activities Total Governmental Activities: Instruction ,385, ,785, (151,599,484.61) (151,599,484.61) Student Support Services ,700, (9,700,039.85) (9,700,039.85) Instructional Media Services ,696, (3,696,909.08) (3,696,909.08) Instruction and Curriculum Development Services ,955, (14,955,611.97) (14,955,611.97) Instructional Staff Training Services ,946, (1,946,686.90) (1,946,686.90) Instruction-Related Technology ,389, (2,389,491.32) (2,389,491.32) Board ,172, (1,172,439.25) (1,172,439.25) General Administration ,069, (3,069,312.05) (3,069,312.05) School Administration ,886, (19,886,891.79) (19,886,891.79) Facilities Acquisition and Construction ,240, , (576,206.60) (576,206.60) Fiscal Services ,243, (2,243,687.26) (2,243,687.26) Food Services ,120, ,978, ,934, (207,252.18) (207,252.18) Central Services ,790, (6,790,227.07) (6,790,227.07) Student Transportation Services ,059, (13,059,308.37) (13,059,308.37) Operation of Plant ,915, (19,915,193.35) (19,915,193.35) Maintenance of Plant ,971, (8,971,439.87) (8,971,439.87) Administrative Technology Services ,972, (4,972,291.30) (4,972,291.30) Community Services ,122, (7,122,788.17) (7,122,788.17) Interest on Long-Term Debt ,850, ,180, (7,669,975.13) (7,669,975.13) Unallocated Depreciation/Amortization Expense 16,500, (16,500,829.13) (16,500,829.13) Total Governmental Activities 317,990, ,764, ,115, , (296,446,065.25) (296,446,065.25) Business-type Activities: Self-Insurance Consortium Daycare Operations Other Business-Type Activity 46, , (32,752.71) (32,752.71) Total Business-Type Activities 46, , (32,752.71) (32,752.71) Total Primary Government 318,036, ,778, ,115, , (296,446,065.25) (32,752.71) (296,478,817.96) Component Units: Major Component Unit Name Major Component Unit Name Total Nonmajor Component Units 12,440, , , , (10,694,577.69) Total Component Units 12,440, , , , (10,694,577.69) Capital Grants and Contributions Component Units General Revenues: Taxes: Property Taxes, Levied for Operational Purposes 86,345, ,345, Property Taxes, Levied for Debt Service Property Taxes, Levied for Capital Projects 22,053, ,053, Local Sales Taxes 19,454, ,454, Grants and Contributions Not Restricted to Specific Programs 174,111, ,111, ,103, Investment Earnings 132, , , Miscellaneous 8,639, ,639, , Special Items Extraordinary Items 5, Transfers Total General Revenues, Special Items, Extraordinary Items and Transfers 310,736, , ,739, ,232, Change in Net Position 14,290, (29,963.88) 14,260, (461,949.86) Net Position, July 1, ,479, , ,585, , Adjustments to Net Position Net Position, June 30, ,769, , ,845, , The notes to financial statements are an integral part of this statement. ESE 145

15 Exhibit C-1 Page 4 DISTRICT SCHOOL BOARD OF LEON COUNTY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 General Food Services Other Federal Programs Federal Economic Stimulus Programs Miscellaneous Special Revenue SBE/COBI Bonds ASSETS AND DEFERRED OUTFLOWS OF RESOURCES ASSETS Cash and Cash Equivalents ,759, ,063, Investments Taxes Receivable, Net , s Receivable, Net , ,80 Interest Receivable on Investments 1170 Due From Other Agencies , ,097, Due From Budgetary Funds , Due From Insurer 1180 Deposits Receivable 1210 Due From Internal Funds 1142 Cash with Fiscal/Service Agents ,00 Inventory ,050, Prepaid Items 1230 Long-Term Investments 1460 Total Assets 41,811, ,164, DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources 41,811, ,164, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits ,056, , Payroll Deductions and Withholdings 2170 (166,383.71) 123, s Payable ,186, , Sales Tax Payable Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable 2220 Due to Other Agencies 2230 Due to Budgetary Funds , , Due to Internal Funds 2162 Due to Fiscal Agent 2240 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage 2150 Matured Bonds Payable 2180 Matured Interest Payable 2190 Unearned Revenue 2410 Unavailable Revenue 2410 Total Liabilities 9,096, ,164, DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deferred Revenues 2630 Total Deferred Inflows of Resources FUND BALANCES Nonspendable: Inventory 2711 Prepaid Amounts 2712 Permanent Fund Principal 2713 Other Not in Spendable Form ,050, Total Nonspendable Fund Balances ,050, Restricted for: Economic Stabilization 2721 Federal Required Carryover Programs 2722 State Required Carryover Programs 2723 Local Sales Tax and Other Tax Levy 2724 Debt Service 2725 Capital Projects 2726 Restricted for 2729 Restricted for 2729 Total Restricted Fund Balances 2720 Committed to: Economic Stabilization 2731 Contractual Agreements 2732 Committed for , Committed for 2739 Total Committed Fund Balances , Assigned to: Special Revenue 2741 Debt Service 2742 Capital Projects 2743 Permanent Fund 2744 Assigned for ,683, Assigned for 2749 Total Assigned Fund Balances ,683, Total Unassigned Fund Balances ,405, Total Fund Balances ,715, Total Liabilities, Deferred Inflows of Resources and Fund Balances 41,811, ,164, The notes to financial statements are an integral part of this statement.ese 145 ESE 145

16 Exhibit C-1 Page 4 DISTRICT SCHOOL BOARD OF LEON COUNTY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES ASSETS Cash and Cash Equivalents 1110 Investments 1160 Taxes Receivable, Net 1120 s Receivable, Net 1131 Interest Receivable on Investments 1170 Due From Other Agencies 1220 Due From Budgetary Funds 1141 Due From Insurer 1180 Deposits Receivable 1210 Due From Internal Funds 1142 Cash with Fiscal/Service Agents 1114 Inventory 1150 Prepaid Items 1230 Long-Term Investments 1460 Total Assets DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits 2110 Payroll Deductions and Withholdings 2170 s Payable 2120 Sales Tax Payable 2260 Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable 2220 Due to Other Agencies 2230 Due to Budgetary Funds 2161 Due to Internal Funds 2162 Due to Fiscal Agent 2240 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage 2150 Matured Bonds Payable 2180 Matured Interest Payable 2190 Unearned Revenue 2410 Unavailable Revenue 2410 Total Liabilities DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deferred Revenues 2630 Total Deferred Inflows of Resources FUND BALANCES Nonspendable: Inventory 2711 Prepaid Amounts 2712 Permanent Fund Principal 2713 Other Not in Spendable Form 2719 Total Nonspendable Fund Balances 2710 Restricted for: Economic Stabilization 2721 Federal Required Carryover Programs 2722 State Required Carryover Programs 2723 Local Sales Tax and Other Tax Levy 2724 Debt Service 2725 Capital Projects 2726 Restricted for 2729 Restricted for 2729 Total Restricted Fund Balances 2720 Committed to: Economic Stabilization 2731 Contractual Agreements 2732 Committed for 2739 Committed for 2739 Total Committed Fund Balances 2730 Assigned to: Special Revenue 2741 Debt Service 2742 Capital Projects 2743 Permanent Fund 2744 Assigned for 2749 Assigned for 2749 Total Assigned Fund Balances 2740 Total Unassigned Fund Balances 2750 Total Fund Balances 2700 Total Liabilities, Deferred Inflows of Resources and Fund Balances Special Act Sections & Motor Vehicle District Other ARRA Economic Bonds , F.S., Loans Revenue Bonds Bonds Debt Service Stimulus Debt Service The notes to financial statements are an integral part of this statement.ese 145 ESE 145

17 Exhibit C-1 Page 4 DISTRICT SCHOOL BOARD OF LEON COUNTY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES ASSETS Cash and Cash Equivalents 1110 Investments 1160 Taxes Receivable, Net 1120 s Receivable, Net 1131 Interest Receivable on Investments 1170 Due From Other Agencies 1220 Due From Budgetary Funds 1141 Due From Insurer 1180 Deposits Receivable 1210 Due From Internal Funds 1142 Cash with Fiscal/Service Agents 1114 Inventory 1150 Prepaid Items 1230 Long-Term Investments 1460 Total Assets DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits 2110 Payroll Deductions and Withholdings 2170 s Payable 2120 Sales Tax Payable 2260 Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable 2220 Due to Other Agencies 2230 Due to Budgetary Funds 2161 Due to Internal Funds 2162 Due to Fiscal Agent 2240 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage 2150 Matured Bonds Payable 2180 Matured Interest Payable 2190 Unearned Revenue 2410 Unavailable Revenue 2410 Total Liabilities DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deferred Revenues 2630 Total Deferred Inflows of Resources FUND BALANCES Nonspendable: Inventory 2711 Prepaid Amounts 2712 Permanent Fund Principal 2713 Other Not in Spendable Form 2719 Total Nonspendable Fund Balances 2710 Restricted for: Economic Stabilization 2721 Federal Required Carryover Programs 2722 State Required Carryover Programs 2723 Local Sales Tax and Other Tax Levy 2724 Debt Service 2725 Capital Projects 2726 Restricted for 2729 Restricted for 2729 Total Restricted Fund Balances 2720 Committed to: Economic Stabilization 2731 Contractual Agreements 2732 Committed for 2739 Committed for 2739 Total Committed Fund Balances 2730 Assigned to: Special Revenue 2741 Debt Service 2742 Capital Projects 2743 Permanent Fund 2744 Assigned for 2749 Assigned for 2749 Total Assigned Fund Balances 2740 Total Unassigned Fund Balances 2750 Total Fund Balances 2700 Total Liabilities, Deferred Inflows of Resources and Fund Balances Capital Outlay Bond Issues Special Act Sections & Public Education District Capital Outlay and (COBI) Bonds , F.S., Loans Capital Outlay (PECO) Bonds Debt Service ,336, ,014, ,351, ,351, ,779, ,757, , ,363, ,987, ,987, ,987, ,351, The notes to financial statements are an integral part of this statement.ese 145 ESE 145

18 Exhibit C-1 Page 4 DISTRICT SCHOOL BOARD OF LEON COUNTY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES ASSETS Cash and Cash Equivalents 1110 Investments 1160 Taxes Receivable, Net 1120 s Receivable, Net 1131 Interest Receivable on Investments 1170 Due From Other Agencies 1220 Due From Budgetary Funds 1141 Due From Insurer 1180 Deposits Receivable 1210 Due From Internal Funds 1142 Cash with Fiscal/Service Agents 1114 Inventory 1150 Prepaid Items 1230 Long-Term Investments 1460 Total Assets DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits 2110 Payroll Deductions and Withholdings 2170 s Payable 2120 Sales Tax Payable 2260 Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable 2220 Due to Other Agencies 2230 Due to Budgetary Funds 2161 Due to Internal Funds 2162 Due to Fiscal Agent 2240 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage 2150 Matured Bonds Payable 2180 Matured Interest Payable 2190 Unearned Revenue 2410 Unavailable Revenue 2410 Total Liabilities DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deferred Revenues 2630 Total Deferred Inflows of Resources FUND BALANCES Nonspendable: Inventory 2711 Prepaid Amounts 2712 Permanent Fund Principal 2713 Other Not in Spendable Form 2719 Total Nonspendable Fund Balances 2710 Restricted for: Economic Stabilization 2721 Federal Required Carryover Programs 2722 State Required Carryover Programs 2723 Local Sales Tax and Other Tax Levy 2724 Debt Service 2725 Capital Projects 2726 Restricted for 2729 Restricted for 2729 Total Restricted Fund Balances 2720 Committed to: Economic Stabilization 2731 Contractual Agreements 2732 Committed for 2739 Committed for 2739 Total Committed Fund Balances 2730 Assigned to: Special Revenue 2741 Debt Service 2742 Capital Projects 2743 Permanent Fund 2744 Assigned for 2749 Assigned for 2749 Total Assigned Fund Balances 2740 Total Unassigned Fund Balances 2750 Total Fund Balances 2700 Total Liabilities, Deferred Inflows of Resources and Fund Balances Nonvoted Capital Voted Capital Other ARRA Economic Permanent Improvement Fund Improvement Fund Capital Projects Stimulus Capital Projects Fund Other Governmental Funds 16,010, ,792, , , , ,890, , ,757, ,114, ,753, , ,772, ,631, ,772, ,631, , , , , , (316,301.94) 192, , ,00 367, , , , , , ,405, ,277, ,815, ,405, ,092, ,186, ,186, ,405, ,280, ,772, ,631, The notes to financial statements are an integral part of this statement.ese 145 ESE 145

19 Exhibit C-1 Page 4 DISTRICT SCHOOL BOARD OF LEON COUNTY BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES ASSETS Cash and Cash Equivalents 1110 Investments 1160 Taxes Receivable, Net 1120 s Receivable, Net 1131 Interest Receivable on Investments 1170 Due From Other Agencies 1220 Due From Budgetary Funds 1141 Due From Insurer 1180 Deposits Receivable 1210 Due From Internal Funds 1142 Cash with Fiscal/Service Agents 1114 Inventory 1150 Prepaid Items 1230 Long-Term Investments 1460 Total Assets DEFERRED OUTFLOWS OF RESOURCES Accumulated Decrease in Fair Value of Hedging Derivatives 1910 Total Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Cash Overdraft 2125 Accrued Salaries and Benefits 2110 Payroll Deductions and Withholdings 2170 s Payable 2120 Sales Tax Payable 2260 Current Notes Payable 2250 Accrued Interest Payable 2210 Deposits Payable 2220 Due to Other Agencies 2230 Due to Budgetary Funds 2161 Due to Internal Funds 2162 Due to Fiscal Agent 2240 Pension Liability 2115 Other Postemployment Benefits Liability 2116 Judgments Payable 2130 Construction Contracts Payable 2140 Construction Contracts Payable - Retained Percentage 2150 Matured Bonds Payable 2180 Matured Interest Payable 2190 Unearned Revenue 2410 Unavailable Revenue 2410 Total Liabilities DEFERRED INFLOWS OF RESOURCES Accumulated Increase in Fair Value of Hedging Derivatives 2610 Deferred Revenues 2630 Total Deferred Inflows of Resources FUND BALANCES Nonspendable: Inventory 2711 Prepaid Amounts 2712 Permanent Fund Principal 2713 Other Not in Spendable Form 2719 Total Nonspendable Fund Balances 2710 Restricted for: Economic Stabilization 2721 Federal Required Carryover Programs 2722 State Required Carryover Programs 2723 Local Sales Tax and Other Tax Levy 2724 Debt Service 2725 Capital Projects 2726 Restricted for 2729 Restricted for 2729 Total Restricted Fund Balances 2720 Committed to: Economic Stabilization 2731 Contractual Agreements 2732 Committed for 2739 Committed for 2739 Total Committed Fund Balances 2730 Assigned to: Special Revenue 2741 Debt Service 2742 Capital Projects 2743 Permanent Fund 2744 Assigned for 2749 Assigned for 2749 Total Assigned Fund Balances 2740 Total Unassigned Fund Balances 2750 Total Fund Balances 2700 Total Liabilities, Deferred Inflows of Resources and Fund Balances Total Governmental Funds 67,963, , , , ,243, ,471, ,981, ,549, ,731, ,731, ,987, (38,580.48) 4,881, , ,220, ,021, ,00 21,313, , , , ,050, ,051, ,670, ,815, ,485, , , ,186, ,683, ,870, ,405, ,388, ,731, The notes to financial statements are an integral part of this statement.ese 145 ESE 145