Dllnl Tualadn Schaal DisUict 231

Transcription

1 Dllnl Tualadn Schaal DisUict 231 Washington County - Tigard - Oregon

2 Tigard-Tualatin School District 231 Washington County, Tigard, Oregon Comprehensive Annual Financial Report For the fiscal year ended June 30, 2012 Prepared by: Office of Budget and Finance

3 Tigard-Tualatin School District 23J Washington County, Tigard, Oregon TABLE OF CONTENTS I. INTRODUCTORY SECTION Letter of Transmittal... i Certificate of Achievement... vi Organizational Chart... vii List of Elected and Appointed Officials... viii II. FINANCIAL SECTION A. Independent Auditors' Report... 1 B. Management's Discussion and Analysis C. Basic Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Major Governmental Funds: Balance Sheet, Governmental Funds Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Proprietary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Notes to the Basic Financial Statements D. Required Supplementary Information Schedule of Required Contributions - Early Retirement Program Schedule of Funding Progress- Other Postemployment Benefits Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual- General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual- State, County, Private Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual Federal Grants Fund E. Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget & Actual Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget & Actual Capital Projects Fund Combining Balance Sheet- Nonmajor Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Governmental Funds... 64

4 Tigard-Tualatin School District 23J Washington County, Tigard, Oregon TABLE OF CONTENTS II. FINANCIAL SECTION (Continued) E. Supplementary Information (Continued) Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget & Actual Transportation Equipment Fund Food Service Fund Community Building Use Fund Associated Student Body Fund Scrip Service Center Fund Full Faith and Credit and Lease Obligation Fund Pension Bond Series 2007 Debt Service Fund Insurance Fund Early Retirement Fund Scholarship Fund Schedule of Property Tax Transactions Schedule of Expenditures of Federal Awards Ill. STATISTICAL SECTION A. Financial Trends Condensed Statement of Net Assets (Last Six Years) Changes in Net Assets (Last Six Years) Fund Balances, Governmental Funds (Last Ten Years) Change in Fund Balances, Governmental Funds (Last Ten Fiscal Years) B. Revenue Capacity Assessed Values of Taxable Property (Last Ten Fiscal Years) Direct and Overlapping Property Tax Rates (Last Ten Fiscal Years) Principal Property Taxpayers (Current Year and Nine Years Ago) Property Tax Levies and Collections (Last Ten Fiscal Years) C. Debt Capacity Ratios of General Bonded Debt Outstanding (Last Ten Fiscal Years) Outstanding Debt by Type (Last Ten Fiscal Years) Direct and Overlapping Governmental Activities Debt (As of June 30, 2011) Legal Debt Margin Information (Last Ten Fiscal Years)... 89

5 Tigard-Tualatin School District 23J Washington County, Tigard, Oregon TABLE OF CONTENTS Ill. STATISTICAL SECTION (Continued) D. Demographic and Economic Information Demographic and Economic Statistics (Last Ten Calendar Years) Principal Employers (Current Year) Full-Time-Equivalent District Employees by Type (Current Year) E. Operating Information Operating Statistics (Last Eight Fiscal Years) Teacher Base Salaries (Last Ten Fiscal Years) School Building Information (Current Year) IV. OTHER INFORMATION (Schedules Required by Oregon Department of Education) Oregon Department of Education Supplemental Information Audit Revenue Summary Audit Expenditure Summaries Fund Fund Fund Fund Fund Fund V. AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Auditors' Comments and Disclosures VI. GRANT COMPLIANCE SECTION Independent Auditors' Report on Compliance and on Internal Controls over Financial Reporting Based on an Audit Performed in Accordance with Government Auditing Standards Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance with OMB Circular A Schedule of Findings and Questioned Costs

6 December 11, 2012 To the Board of Directors and Residents of Tigard-Tualatin School District 23J Tigard, Oregon Oregon Municipal Audit Law requires that an independent audit be made of all district funds within six months following the close of the fiscal year. Pursuant to this requirement, the Comprehensive Annual Financial Report of Tigard-Tualatin School District 23J, Washington County, Oregon (the District), for the fiscal year ended June 30, 2012, is hereby submitted. The District's Office of Budget and Finance prepared this Comprehensive Annual Financial Report. Management assumes full responsibility for the completeness and reliability of all the information presented in this report based on a comprehensive internal control framework that is designed both to protect the District's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Tigard-Tualatin School District 23J financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the District's comprehensive framework of internal controls has been designed to provide reasonable assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. INDEPENDENT AUDIT The District's financial statements have been audited by the firm of Pauly, Rogers and Co., P.C., of Tigard, Oregon, a firm of licensed certified public accountants. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Tigard-Tualatin School District 23J's financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Tigard-Tualatin School District 23J was part of a broader, federally mandated "Single Audit" designed to meet the special needs of Federal grantor agencies. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of Federal awards. The results of the District's single audit for the fiscal year ended June 30, 2012, provide no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it The Tigard-Tualatin School District 23J's MD&A can be found immediately following the report of the independent auditors.

7 THE DISTRICT Tigard-Tualatin School District 23J is the 9th largest school district based on enrollment in Oregon and the 5th largest in the Portland metropolitan area. The District includes 2 high schools, 3 middle schools, 1 0 elementary schools, an alternative education program, and a charter school. The District serves the communities of Durham, Metzger, King City and Bull Mountain, as well as Tigard and Tualatin. Multi-Sensory Instruction Teaching Children (M.I.T.C.H.), a charter school, is a component unit of the District. The District is the body, which has authority to approve or revoke the M.I.T.C.H. charter agreement establishing the charter school status. The District includes approximately 34 square miles in Washington and Clackamas counties, comprising the southwestern portions of the Portland Metropolitan Area, and has an estimated population of 74,100. The District has grown from 5 schools serving 4,654 students in 1969, to 15 schools, an alternative educational program, and a charter school, serving approximately 12,685 students. A five member Board of Directors, elected to four-year overlapping terms by the voters residing within District boundaries, governs the Tigard-Tualatin School District 23J. The duties of the Board include setting policy, reviewing expenditures, appointing the Superintendent, and hiring, terminating and approving resignations of all certified and administrative staff members. The Board also constitutes one-half of, and appoints the five citizen members of, the Budget Committee. The Board of Directors appointed Financial Oversight Committee conducts an annual review of the District's system of internal controls and any recommendations or findings that result from the District's annual financial audit. The committee is advisory to the Board of Directors. The committee is comprised of five members; two from the Board and three from the community at-large. The mission statement of the District as stated in the Strategic Planning Document is to "educate every child". The Strategic Planning Document articulated the District Vision Statement: Every student thrives in school and graduates prepared to succeed. In our schools, each student Is challenged by a rigorous academic program Enjoys school and learning Feels a sense of belonging Is capable and confident LOCAL ECONOMY The Tigard-Tualatin School District 23J is located in northwestern Oregon in Washington and Clackamas counties. Washington and Clackamas counties are part of the Portland-Vancouver Primary Metropolitan Statistical Area (PMSA). The metropolitan Portland-Vancouver area includes five of Oregon's thirty-six counties: Clackamas, Columbia, Multnomah, Washington, Yamhill; and Clark County in the state of Washington. According to the Oregon State Employment Department, Multnomah and Washington counties together have almost a third of the State of Oregon's population. Because the District lies within the PMSA, economic and demographic data is not available specifically for the District. However, the data is generally available for Washington County and for the PMSA. Washington County's economic base has traditionally been centered in agriculture, lumber, manufacturing, food processing, and electronics. The early economy of the Washington County area grew as a result of fertile agricultural and timberlands and its access to the Willamette and Columbia rivers. The County's developed regions are home to traditional suburban and new mixed-use 11

8 neighborhoods, electronic leaders such as Intel, IBM and Tektronix, and world headquarters for both Nike and Columbia Sportswear. Despite its rapid development, the county still contains prime agricultural land and a strong agricultural economy with nurseries, wineries and other farm and forest enterprises. More than 75 percent of the county's agricultural and forestlands have been preserved through careful land use management of residential and industrial growth. Washington County covers 727 square miles and includes 11 incorporated cities, such as Beaverton, Hillsboro, Tigard, and Tualatin, as well as a portion of the City of Portland. Tigard-Tualatin School District is the largest employer within the school district's boundaries. The unemployment rate for Washington County on June 30, 2012 was 7.0 percent and 8.5 percent for the state of Oregon compared to 9.4 percent in June LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES The Tigard-Tualatin School District 23J has a long history of strong voter and community support. During the last 25 years, district voters have approved all but 3 school tax measures. In November 2008, voters approved a renewal of the Local Option Tax of $1.00 per $1,000 of assessed valuation for another 5 years beginning with the school year. The Local Option Tax raised $7.1 million in fiscal year and $6.3 million in fiscal year , and was expected at the time of passage to raise $42 million over the next six years funding approximately 83 teachers per school year. The levy is affected by property values, and property values decreased in a manner that caused the amount collected from and levies to decline below expectations. With the current economic factors in the housing market, the revenue from this source cannot be predicted with much certainty. The Governor's budget for the state biennium for K-12 education was $5.7 billion for the State School Fund Grant and School Year Subaccount. Total funding for the District over the biennium includes the School Year Subaccount (SYS). For the fiscal year only, the District received $2.7 million for this portion of the State School Fund total. SYS funds were for increasing educational opportunities and school days in the fiscal year and required a compliance report to three legislative bodies by January 15, Total funding for both years of the biennium is essentially equal and state funds for the budget year will not require any compliance filings as required for the SYS. The budget for the year was developed using the work from a community process that began with the formation of the Smart Sustainable Schools Committee (S3) in October, The S3 committee presented their recommendations to the School Board in March, The budget created with input from the committee was to be a budget the district could sustain for the two years of the biennium. With the decline in the local option tax levy in a decision was made to reduce the general fund budget by $2.4 million using the work from the S3 committee to determine the additional reductions. One public input session was held before the formal budget process began to gather additional public input and members of the S3 committee were encouraged to attend the public meeting. More than 1,000 parents, staff, students and community members participated in Vision focus groups to develop the District Vision Statement. The Vision Statement was adopted by the District Board of Directors in the fall of In May of 2011, voters of the District approved a $20 million bond measure with a six year maturity. The bond measure approval will allow the District to purchase $2.5 million in textbooks, materials and technology related to textbook adoption. $7.5 million will be available for technology in District classrooms and $10 million in Qualified School Construction Bonds will be available for improvements and updates to District schools. The District purchased textbooks and technology for the fall of the school year and began construction projects in the summer of The majority of the construction projects started in the summer of 2012 and were substantially completed before the start of the school year. The Qualified School Construction Bond proceeds must be expended by July Technology and textbook purchases will continue over the life of the bond. 111

9 RELEVANT FISCAL POLICIES Budgetary Controls The District annually prepares a budget in accordance with requirements prescribed in the Oregon Revised Statutes. The objective of the District's budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the District's Board of Directors. Activities of all funds are included in the annual appropriated budget. A summary of the approved budget, together with a notice of public hearing, is published in a newspaper with general circulation in the District. A public hearing is held to receive comments from the public concerning the approved budget. The Board of Directors adopts the budget, makes the appropriations, and levies taxes after the public hearing and before the beginning of the year for which the budget has been prepared. The objective of the budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget adopted by the District's Board of Directors. Activities of the General Fund, Special Revenue funds, Debt Service Fund, Capital Projects Fund, and Early Retirement Fund are included in the annual appropriated budget. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount), is established by major program category within an individual fund. Transfers of appropriations between budget categories must be authorized by resolution of the Board of Directors. As demonstrated by the statements and schedules included in the Financial Section of this report, the District continues to meet its responsibility for sound financial management. Financial Reporting The financial statements of the District are prepared in accordance with generally accepted accounting principles (GAAP) of the United States of America. In addition to presenting the financial position, results of operations and changes in financial position of the District's funds, the financial statement reconciles differences in reporting activities between the budgetary basis as presented in the annual approved budget and the basis according to GAAP. Accounting System The financial transactions for governmental and fiduciary fund types are recorded on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded in the accounting period in which they become measurable and available, and expenditures are recorded when liabilities are incurred. Exceptions are made for principal and interest on general obligation bonds, full faith and credit obligations and lease purchase agreements which are recorded on the due date, vested compensated absences, and early retirement obligations, which are recorded as expenditures for the current amount normally expected to be liquidated with available expendable financial resources and which are recorded as long-term debt. The proprietary fund is a self insurance fund for unemployment and equipment loss under the District's insurance deductible. The fiduciary funds consist of a fiduciary trust fund for an endowed scholarship and a pension trust fund to pay for post retirement stipends and health benefits. Under the GASB 34 accrual basis of accounting, revenues are recorded at the time they are earned and expenses are recorded at the time liabilities are incurred. The accrual and modified accrual basis of accounting as utilized by Tigard-Tualatin School District 23J are in accordance with generally accepted accounting principles of the United States of America. IV

10 AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Tigard-Tualatin School District 23J for its comprehensive annual financial report for the year ended June 30, This was the 24th consecutive year that the District has received this prestigious award. In order to be awarded a Certificate of Achievement, the District must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles of the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we will be submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Office of Budget and Finance. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Board of Directors for their unfailing support for maintaining the highest standards of professionalism in the management of the Tigard-Tualatin School District 23J's finances. Respectfully submitted, David Moore Chief Financial Officer Elizabeth Michels Controller v

11 Certificate of Achievement for Excellence in Financial Reporting Presented to Tigard-Tualatin School District 23J, Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director vi

12 Tigard-Tualatin School District 23J Organizational Chart Elementary Programs Middle School Programs Special Education Finance I Fiscal Services Human Resources District Communications Assessment High School Programs Equity Controller Operations Student Transfers <: 1-' f-' K-12 Currirulum Adoption, Alignment Health Services Payroll Facilities Elections Staff Development OrRTI Accounts Receiveable Negotiations I Labor Relations Legislative Lobby EBIS/EBS Student Records Purchasing Risk Management Print Shop I Receptionists Safe Schools Programs TAG Technology Transportation Caring Community New Teacher Induction K-12 Guidance & Counseling Food Services PSOs I Foundation I Volunteer Coordinator Title IA, Title IIA, ELL/Title III Charter Schools School-Based Health Ctr. Revised 10/16/12

13 Tigard-Tualatin School District 231 List of Elected and Appointed Officials Elected Officials as of July 1, 2012 Name Maureen Wolf~ Board Chair Dana Terhune, Vice Chair Dr. Barry Albertson Robert Smith Jill Zurschmeide Term Expires June 30, 2013 June 30, 2013 June 30, 2013 June 30, 2015 June30,2015 Appointed Officials Roger Rada, Interim Superintendent/Clerk (FY ) Rob Saxton, Superintendent/Clerk (FY ) David C. Moore, Chief Financial Officer/Deputy Clerk (FY ) Bonita L. Maplethorpe, Chief Financial Officer/Deputy Clerk (FY ) Miller Nash, Legal Counsel Hawkins, Delafield & Wood, Bond Counsel Vlll

14 Independent Auditors' Report

15 PAULY, ROGERS AND CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS SW 72ND AVENUE TIGARD, OREGON (503) FAX (503) December 7, 2012 To the Board of Directors Tigard-Tualatin School District No. 23J Washington County, Oregon INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, each major fund, the aggregate discreetly presented component unit, and the aggregate remaining fund information of Tigard-Tualatin School District No. 23J, Washington County, Oregon, as of and for the year ended June 30, 2012, which collectively comprise the District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. We have conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements, and assessing the accounting principles used and significant estimates made by management, as well as evaluating the basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund, the discreetly presented component unit, and the aggregate remaining fund information of the Tigard-Tualatin School District No. 23J, Washington County, Oregon, at June 30, 2012, and the results of its operations and respective budgetary comparisons for the general fund and major special revenue funds, thereof for the year then ended, in conformity with generally accepted accounting principles in the United States of America. In accordance with Government Auditing Standards, we have also issued our reports dated December 7, 2012 on our consideration of internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of the reports is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and do not provide an opinion on the internal control over financial reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit

16 December 7, 2012 Board of Directors Tigard-Tualatin School District Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedule of Funding Progress, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Tigard-Tualatin School District No. 23J's financial statements. The supplementary information, as listed in the table of contents, and the Schedule of Expenditures of Federal Awards, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for the purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information, as listed in the table of contents, is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opm1ons on the financial statements that collectively comprise Tigard-Tualatin School District No. 23J's financial statements. The introductory section, other information and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 't? v.. 4 ( ~81,5 Q... ~ a. P.c, PAULY, ROGERS AND CO., P.C. 2

17 Management's Discussion and Analysis

18 Tigard-Tualatin School District 23J Management's Discussion and Analysis June 30, 2012 As managers of the Tigard-Tualatin School District 23J ("District"), we offer readers of the District's financial statements this narrative discussion and analysis of the financial activities of the District for the fiscal year ended June 30, We encourage readers to consider the information presented here in conjunction with the Letter of Transmittal in the Introductory Section of this report and the District's financial statements that follow this discussion and analysis. Financial Highlights In the government-wide statement of net assets, the assets of the District exceeded its liabilities by $96.2 million. Of this amount, $50.8 million represents the District's investment in capital assets, $1.3 million is restricted for debt service, $18.2 million is restricted for other purposes including $14.1 million for capital projects and $4.1 million for other grant programs, and the balance of $25.9 million is unrestricted. The District's total net assets increased by $5.5 million due to sale of bonds for construction projects, textbooks and technology and the related assets that were purchased with the bond funds. The majority of the capital asset additions in the current year were from the bond proceeds. The District's governmental funds report a combined ending fund balance of $44.3 million, an increase of $11.5 million from the prior year. This is due to the proceeds of the bonds sold in the capital projects fund net of capital expenditures in the capital projects fund of $12.4 million, a decrease in the general fund of $523,840 and a decrease in all others funds of $384,462. At the end of the fiscal year, the ending fund balance in the general fund was $10.2 million, or about 10.2 percent of total general fund revenue. The $523,840 decrease was due to an unanticipated decline in the local option tax levy. The District's total long-term debt increased by $9.6 million during the fiscal year primarily due to the sale of two new bonds totaling $20 million for school construction and textbooks and technology and principal payments of $10.6 million and the amortization of bonded debt issuance premiums and discounts. The majority of the principal payments, $8.4 million, were for general obligation bonds with the remainder for full faith and credit debt including pension obligation bonds and capital lease payments. Revenue from the general fund and special revenue funds totaling $1.2 million, earnings on investments of $33,544, Qualified School Construction Bond federal subsidy of $246,132, and $989,195 in rent, lease payments and local contributions paid for $2.4 million of the debt. District enrollment and average daily membership effectively did not change during the year. State funding is largely based on enrollment. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the District's finances in a manner similar to a private-sector business. 3

19 The statement of net assets presents information on all of the assets and liabilities of the District at June 30, Net assets are what remain after the liabilities have been paid or otherwise satisfied. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of net assets presents information showing how the net assets of the District changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, in this statement, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, and earned but unused vacation leave). In the government-wide financial statements, the District's basic activities are combined. Those basic activities include regular and special education, child nutrition services, student transportation, administration, and facilities acquisition and construction. These activities are primarily financed through Oregon's state school fund, property taxes, and other intergovernmental revenues. Fiduciary funds are not included in the statements of net assets or the statement of activities but are reported separately in the basic financial statements. The government-wide financial statements include not only the District itself (known as the primary government), but also a legally separate charter school. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on pages 13 and 14 of this report. Fund Financial Statements. The fund financial statements provide more detailed information about the District's funds, focusing on its most significant or major funds- not the District as a whole. To be considered a major fund, the fund assets, liabilities, revenue or expenses must be at least 10 percent of all governmental funds. A fund is a grouping of related accounts that is used to maintain control over resources that are segregated for specific activities or objectives. The Tigard-Tualatin School 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, with the exception of the fiduciary funds, the early retirement fund, and the scholarship fund, and the proprietary fund, the self insurance fund, are governmental funds. Governmental Funds. Governmental funds are used to account for the same functions (Instruction, Support Services, Enterprise and Community Services, Interest on Long-Term Liabilities) reported as governmental activities in the government-wide financial statements. Unlike the governmental-wide financial statements, the 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. The information provided by the fund financial statements might be useful in evaluating the District's near-term financing requirements. The focus of governmental funds is narrower than that of the government-wide financial statements, and readers may find it useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. The relationships (or differences) between governmental activities as reported in the statement of net assets and the statement of activities and governmental funds are explained in the reconciliation of governmental fund balances to net assets of governmental activities that follows the governmental funds balance sheet and the reconciliation of net change in fund balances to changes in net assets that follows the governmental funds statement of revenues, expenditures and changes in fund balance. The notes to the financial statements provide additional information that is essential to a complete understanding of the data provided in the financial statements. The District maintains 12 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the general fund, the state, county, private grants fund, the federal grants fund, the capital projects fund, and the debt service fund, all of which are considered to be major funds. 4

20 Data from the other seven funds are combined into a single, aggregated presentation. Individual fund data for each of these non major governmental funds is provided in the form of combining statements elsewhere in this report. The District adopts an annual appropriated budget for all the funds. The budgetary comparison statements demonstrate compliance with the appropriated budgets. The budgetary comparison statement for the general fund, state, county, private grants fund, and federal grants fund are a part of the required supplemental information. The budgetary comparison statement for the capital project fund and the debt service fund, the other major funds, along with the nonmajor funds can be found in the supplemental information budgetary comparisons section. The basic governmental fund financial statements can be found on pages 15 through 18 of this report. Fiduciary Funds. The early retirement fiduciary fund is used to account for resources held for the benefit of parties outside the District. The scholarship fund is used to account for scholarship resources held by the District for use by the students awarded scholarships for college. The fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District's own programs. Proprietary Funds. The self insurance reserve fund is used to account for the District's unemployment costs and the replacement of equipment not covered by the District's insurance deductible. The proprietary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District's own programs. Notes to Basic 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. The notes to basic financial statements can be found on pages 23 through 54 of this report. Other information. Schedules presenting detailed budgetary information for individual funds and other supplemental information can be found on pages 55 through 77 of this report. Government-Wide Financial Analysis. As noted earlier in this discussion and analysis, net assets may, over time, serve as a useful indicator of the District's financial position. At June 30, 2012, the District had assets of $245.4 million, liabilities of $149.2 million, and net assets of $96.1 million. Equity in pooled cash and investments represents about 22.2 percent of total assets. Of the $54.4 million reported as equity in pooled cash and investments and cash and investments, $26.6 million is designated for capital projects. The general fund balance decreased by $523,840 million to $10.2 million. The debt service fund increase of $47,703 will be applied to taxes assessed for the following year. The state county private grants fund decreased by $554,214 as the result of the need to use previously fundraised dollars due to the decline in the local economy. Capital assets, which consist of the District's land, buildings, building improvements, construction in progress, and vehicles and equipment, represent approximately 60.7 percent of total assets and the pension asset represents about 12.9 percent. The remaining assets consist mainly of account and property tax receivables, bond issuance costs and inventories. The District's largest liability, long-term debt (general obligation bonds, limited tax pension obligation bond, full faith and credit debt, and capital leases), comprises 91.2 percent of total liabilities. Other liabilities consist almost entirely of payables on accounts, salaries and benefits. The investment in capital assets (e.g., land, buildings, vehicles and equipment) represents a large portion of the District's net assets, $148.9 million, or 60.7 percent. The District began and completed several construction projects during the year with the Qualified School Construction Bond proceeds and purchased textbooks and technology with the general obligation bond proceeds for that purpose. 5

21 The following schedule shows how assets, liabilities and net assets changed from the previous fiscal year. This schedule is rounded to the nearest thousand. Net Assets (in thousands) Governmental Activities Assets Cash and investments Property tax receivables Accounts receivable Capital assets, net of depreciation Prepaid PERS unfunded actuarial liability Other assets Total assets FY2012 FY2011 Change $ 54,397 $ 37,791 $ 16,606 3,119 2, ,191 5,049 (1,858) 148, ,066 3,834 31,724 35,215 (3,491) 4,077 1,693 2, , ,389 18,020 Liabilities Payables on account, salaries, benefits, and other Long term debt Limited tax pension obligation bond Total Liabilities 13,173 10,245 2,928 98,149 87,862 10,287 37,915 38,590 (675) 149, ,698 12,540 Net Assets Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 50,752 57,204 (6,452) 19,525 6,260 13,265 25,893 27,227 (1,334) 96,170 $ 90,691 $ 5,479 Statement of Activities. During the fiscal year ended June 30, 2012, the District's net assets increased by approximately $5.5 million. The key elements of the change in the District's net assets, for the year ended June 30, 2012, are as follows: Spending for regular instruction and special programs increased by $2.0 million. Spending increased in Instruction as staff services see increased costs due to insurance premiums and step increases. Also with resources reduced at other levels resources are moved to the classroom. Spending for support services decreased by $1.6 million. The new biennium saw the end of federal unrestricted aid in the general fund. State funding was increased to cover a portion of the $3.6 million decline in federal aid. The District received a grant from the state for seismic work on Twality Middle School which also increased state aid. In the fiscal year the District anticipated returning an estimated $1 million to the state in state school fund money, and this was not required when the state closed out the fiscal year. The District also was paid an additional $262,500 for high cost disability students over the prior year's funding. Property taxes for general purposes declined by.8 million due to decreased property values affecting the local option tax. Property taxes for voter approve general obligation debt increased by.9 million due to the passage of a $20 million bond issue consisting of the $10 million Qualified School Construction Bond for various capital replacements in the District and the $10 million Textbook and Technology Bond for the purchase of science textbooks and related equipment and technology equipment. A federal subsidy paid the interest on the Qualified School Construction Bonds. 6

22 The following schedule is an abridged version of the changes in net assets that are found on page 13. Changes in NetAssets for the Years Ending June 30 (in thousands) Governmental Activities FY2012 FY2011 Revenues: Program revenues Charges for services $ 6,602 $ 6,178 $ 424 Operating grants 16,398 16,875 (477) Capital grants and contributions General revenues Property taxes 59,787 59, State school fund- general support 45,290 39,695 5,595 Other federal and local sources 4,689 5,919 (1,230) Gain on sale of capital assets 8,240 (8,240) Earnings on investments , ,923 (3,492) Expenses: Instruction 78,590 76,563 2,027 Support services 37,833 39,419 (1,586) Community services 4,820 4, Interest on long-term debt 6,710 6, , , Change in net assets 5,478 9,879 (4,401) Net assets -beginning 90,691 9,878 Net assets -ending $ 96,169 $ 90,691 $ 5,477 7

23 ~--~- --- $90,000,000 FY Expenses and Program Revenues- Governmental Funds $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- lnstructio n Support services Enterprise Community Services 132 Interest on long-term Debt Revenue by Source- Governmental Activities Fiscal Year Earnings on investments Charges for services 5% Other federal and local sources 4% Operating grants 12% State school fund -general support 34% Capital grants and contributions 0% Property taxes 45% 8

24 Expenses by Category- Governmental Activities Fiscal Year Interest on.. long-term debt Community serv1ces sot 4% /0 Support services_...,,,,,,,,,,,,,,,,,,, 30% Instruction 61% Financial Analysis of the District's Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. Governmental Funds. The focus of the District's governmental funds is to provide information on nearterm inflows, outflows and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending in the subsequent fiscal year. At June 30, 2012, the District's governmental funds reported combined ending fund balances of $44.4 million, a planned increase from the prior year. Approximately 53.7 percent or $23.8 million is designated for capital expenditures and $8.5 million of the balance is committed to facility acquisition, land purchases, and leases, $1.2 million is assigned to capital projects district-wide, and $14.2 million is restricted to projects approved by voters when the bond levies for the Qualified School Construction Bonds and the Textbook and Technology general obligation bonds passed in May, General Fund. The general fund is the chief operating fund of the District. At the end of the current fiscal year, the general fund total fund balance was $10.2 million with $6.8 million assigned to a plan to appropriate fund balance to limit further budget reductions and $3.4 million unassigned. As a measure of the fund's liquidity, the current resources available to meet operating obligations, it may be helpful to compare total fund balance to total fund revenues. The fund balance at June 30, 2012, represents 10.2 percent of total general fund revenues. Resources of the District's general fund, increased from prior years, were relatively stable over the year. A substantial portion of the District's funding, 86.1 percent, is controlled by the state and those funds were not adjusted during the year as they had been in the past few years. The District has a local option tax levy that is outside of the state's school fund formula. Due to declining property values in the district, the District did not realize $1.1 million of revenue anticipated from this resource. It is difficult to estimate the revenue from the local option tax due to the nature of the levy. 9

25 State County Private Grants Fund. The state county private grants fund has a total fund balance of $5.3 million. This is an decrease of $554,214 over the prior year. $1 million is restricted as the revenue resources are grants to various schools and departments often from parent organizations or other local funding sources. $4.3 million has been committed by the School Board. Commitments include $1.7 million to ESD programs and related services, $1.2 million to educational programs, $670,109 to consumables for prior textbook adoptions, and $667,302 to school savings programs. Federal Grants Fund. The federal grants fund accounts for reimbursable grants and therefore does not have a fund balance. Sources of revenue are various Federal grants. The largest grants in this fund are the Individuals with Disabilities Act (IDEA) ($2.3 million), the Safe Schools/Healthy Students Grant ($1.4 million), and Title I ($1.5 million). The Safe Schools/Healthy Students Grant will have a small carryover in to the fiscal year and the district will not be eligible to apply for this grant again. General Obligation Bond Debt Service Fund. The debt service fund has a total fund balance of.7 million, all of which is restricted for payment of long-term debt and is essentially the same balance as the prior year. All sources are restricted for future debt payments. Capital Projects Fund. The capital projects fund has a total fund balance of $23.8 million, all of which is restricted, committed or assigned for capital projects. The fund balance increased by approximately $11,364,666 million during the current fiscal year which is the result of bond proceeds received less purchases for equipment and capital projects. Bond proceeds accounted for $20.6 million of the increase and are committed to facility acquisition, land purchases and leases. Construction excise taxes are collected on new developments by local governments and turned over to the school district. These taxes are restricted by state law for capital projects and are reserved for future expansion or major remodeling projects. Senate Bill 1149 proceeds are related to prior capital outlays and thus have been set aside for future capital projects. During the year rules changed for Senate Bill 1149 proceeds and funds collected after the change in the rules are accounted for in within the State, County, Private Grants special revenue fund. Budgetary Highlights Legal appropriation transfers were made by the District's School Board. In May, 2012 adjustments were made to adjust for staff moved between appropriation levels but within budgeted staffing allocations and for one position in the child care program at Tigard High School that was not included in the adopted budget. In June, 2012 appropriations were adjusted for increased costs related to increased charter school enrollment. Although regular property taxes exceeded budget expectations, they are an offset under the state school funding formula. Expenditures in the general fund were within budget by $1.6 million excluding contingency. 10

26 Actual Expenditures vs. Final Budget- General Fund (in thousands) $ $67,053 $111 $93 $813 $784 Instruction Supporting Serv1ces Community Services Transfers 0 Final Budget Amount II Final Expenditure Amount Capital Asset and Debt Administration Capital assets. The District's investment in capital assets includes land, buildings and improvements, site improvements, vehicles and equipment, and construction in progress. As of June 30, 2012, the District's investment in capital assets totaled $148.9 million, net of depreciation, as shown in the following table: Changes in Capital Assets for the Years Ending June 30, (in thousands) FY2012 FY2011 Change Land and construction $ 23,621 $ 20,763 $ 2,858 Land improvements 8,133 7, Buildings and improvements 171, , Equipment 11,833 6,678 5, , ,481 8,547 Accumulated Depreciation (66,128) (61,415) (4,713) $ 148,900 $ 145,066 $ 3,834 During the fiscal year, the District's investment in capital assets increased by $3.8 million net of depreciation due to the following: construction in progress including the reroofing projects as Hazelbrook Middle School and Tualatin High School, replacement of the track at Tigard High School, replacement of the track surfaces at Twality and Fowler Middle Schools, and the purchase of equipment including technology and textbooks. Detailed information on capital asset activity may be found on pages 37 through 38 in the notes to basic financial statements. Long-term Debt. At June 30, 2012, the District had total long-term debt outstanding of $136 million, including unamortized issuance premiums and discounts. This was an increase from $126.5 million in the prior fiscal year. The net increase was due to the issuance of $20 million in debt for the voter approved Qualified School Construction Bonds and the Textbook and Technology Bonds less principal payments and amortization of issuance premiums and discounts. 11

27 The District maintains an "Aa2" rating from Moody's for general obligation debt and an AA (underlying), and an AA+ (Oregon School Bond Guaranty) rating from Standard & Poors for the GO bonds issued in The District also received an Aa2 (underlying) and Aa1 (Oregon School Bond Guaranty) from Moody's for the bonds issued in August, This Oregon School Bond Guaranty pledges the full faith and credit of the State of Oregon for the District's bond issue. The current debt limitation for the District is $884 million, which is significantly in excess of the District's outstanding general obligation debt. Detailed information on long-term debt activity may be found on pages 40 through 45 in the notes to basic financial statements. Economic Factors and Budget The most significant budget factor for the District is the State of Oregon's state school fund formula. The formula consists of a general purpose grant, a transportation grant, and certain local revenues. For the year to end June 30, 2013, the State School Fund General Purpose Grant will provide resources approximately equal to that available in the preceding fiscal year. Due to the flat state funding the District did not appropriate $1.7 million of the grant and those funds carried over in to the budget. Even with the additional $1.7 million in state aid, cost increases and the continued decline in the local option levy required the district to reduce staff in the budget. The general fund budget reductions included 24 licensed staff, 1 classified staff, and 1 administrative position. The district also utilized $6.75 million in reserves to balance the budget. For fiscal year , all four contracts for salary and benefit costs were settled prior to the adoption of the budget. Contracts for all four employee groups end as June 30, 2013 and negotiations will be begin in early Other Significant Matters The school year will be the first full year of the District's new Tigard-Tualatin Online Academy. This new alternative school was opened in the spring of 2012 with limited enrollment and offers an alternative to the traditional classroom for approximately 120 students. The District was notified by the Oregon Public Employees Retirement System Board that the District's employer contribution rate will increase by 7 percentage points or 50% overall for a two year period beginning July 1, The impact of this increase is projected to be $3.9 million in the District's general fund on an annual basis. Requests for Information This financial report is designed to present the users, citizens, taxpayers, investors, and creditors, with a general overview of the Tigard-Tualatin School District's finances and to demonstrate the District's accountability. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the District's Chief Financial Officer at 6960 SW Sandburg Street, Tigard, Oregon

28 Basic Financial Statements

29 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Statement of Net Assets June 30, 2012 Governmental Activities Component Unit Assets: Current Assets: Equity in pooled cash and investments $ 52,953,817 $ Cash and investments 1,443, ,831 Restricted Cash 39,060 Receivables: Property taxes, current 1,724,438 Accounts and other receivables 3,191, Prepaid expenses 8,404 29,502 Other assets 16,181 Inventory 301,414 Current Pension asset 1,625,681 Bond issuance costs, current 41,865 Total Current Assets 61,290, ,414 Noncurrent Assets: Bond issuance costs, long term 653,426 Net OPEB asset 1,439,700 Pension (stipend} asset 5,301 Pension (PERS} asset 31,723,510 Property taxes receivable, long-term 1,394,478 Capital assets, net of depreciation 852,586 Land and construction in progress 23,621,212 Land improvements 5,225,262 Buildings and improvements 112,861,009 Vehicles and equipment 7,192,903 Total Noncurrent Assets 852,586 Total Assets 1,441,000 Current liabilities: Accounts payable 4,629,473 69,646 Accrued payroll and related charges 6,877,732 29,277 Accrued interest 321,772 Unearned revenue 936,135 Accrued compensated absences 408,857 Current portion limited tax pension obligation bond 815,000 Current portion long-term debt 16,588 Total Current Liabilities 115,511 Noncurrent liabilities: Limited tax pension obligation bond 37,100,000 Long-term debt 87,625,785 44,518 Total Noncurrent Liabilities 124,725,785 44,518 Total Liabilities 149,237, ,029 Net Assets Invested in capital assets, net of related debt 50,751, ,480 Restricted for: Debt service 1,282,962 Other purposes: Food service 1,176,376 Capital projects 14,182,138 State, county, private grants 1,039,236 Transportation equipment 59,111 Other 1,784,938 Restricted cash 39,060 Unrestricted 25,893, ,430 Total Net Assets $ 96,169,855 $ 1,280,971 The notes to the basic financial statements are an integral part of this statement. 13

30 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Statement of Activities Year Ended June 30, 2012 Net (Expense) Revenue and Program Revenues Chan:~es in Net Assets Operating Capital Grants Charges for Grants and and Governmental Component Functions Expenses Services Contributions Contributions- Activities Unit Governmental Activities Instruction Regular instruction $ 57,330,972 $ 4,594,110 $ 905,648 $ $ (51,831,215) $ Special programs 21,258,603 4,664,570 (16,594,033) Total direct classroom services 78,589,575 4,594,110 5,570,217 (68.425,248) (520,372) Support Services Students 7,846,916 2,359,882 (5.487,033) Instructional staff 4,592,133 1,557,795 (3,034,338) General administration 845,780 64,035 (781,746) School administration 6,696, ,516 (6,548,333) Business 2,205,711 1,165 (2,204,546) Operation and maintenance of buildings 7,898, ,141 (7,748,406) Student transportation 5,181,826 3, ,879 (1,533,544) Central activfties 2,565, ,816 (2,240,363) Total classroom support services 37,832, ,139, ,879 (29,578,309) (496,134) Enterprise and Community Services Food services 3,640,366 1,288,718 2, ,817 Scrip services 221, ,112 84,222 Building use services 483, ,754 (70,408) Other enterprise and community services 474, ,011 (260,367) Total enterprise and community services 4,819,796 2,007,583 2, (123,737) Interest on long-term liabilities 6,710, ,132 (6,464,206) Total school district $ 127,952,686 $ 6,601,728 $ 16,398,446 $ 361,011 $ (104,591,500) Component unit $ 1,288,977 $ 239,971 $ 32,500 $ $ $ (1,016,506) General revenues: Property taxes levied for: General purposes 47,258,052 Debt service 12,528,378 Federal aid not restricted to specific purposes 37,517 Intermediate aid not restricted to specific purposes 2,697,273 State aid not restricted to specific purposes 45,290,466 1,156,394 Earnings on investments 304,017 2,425 Recovery of prior year expenditures 151,501 Construction excise tax 742,975 Other local revenue 1,059,990 2,521 Total general revenues 110,070,169 1,161,340 Change in net assets 5,478, ,834 Net assets - beginning 90,691,186 1,136,137 Net assets- ending $ 96,169,855 $ 1,280,971 The notes to the basic financial statements are an integral part of this statement. 14

31 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Balance Sheet Governmental Funds June 30, 2012 State County Private Other Governmental General Fund Debt Service Caeital Projects Grants Fund Federal Grants Funds Total Assets Equity in pooled cash and investments $ 16,747,465 $ 613,403 $ 26,642,378 $ 4,635,727 $ $ 2,911,578 $ 51,550,552 Cash and investments 1,443,535 1,443,535 Receivables Property taxes 2,465, ,204 3,118,916 Accounts and other receivables 772,916 54, , , , ,608 3,175,681 Due from other funds 641, ,177 Deposits 8,404 8,404 Inventories 301, ,414 Total Assets $ 20,635,674 $ 1,321,146 $ 27,385,522 $ 5,599,369 $ 407,832 $ 4,890,135 $ 60,239,678 Liabilities and Fund Balances Liabilities Accounts payable $ 1,075,456 $ $ 2,978,491 $ 256,896 $ 165,360 $ 153,271 $ 4,629,473 Accrued payroll and related charges 6,816,736 6,816,736 Deferred revenue 2,549, , ,813 48,593 5,435 3,768,336 Ul Due to other funds 237, , ,177 Total Liabilities 10,441, ,471 3,551, , , ,410 15,855,723 Fund Balances: Non Spendable 301, ,414 Restricted 728,675 14,182,138 1,039,236 3,189,451 19,139,501 Committed 8,480,011 4,254, ,859 13,576,514 Assigned 6,760,000 1,172,069 7,932,069 Unassigned 3,434,457 3,434,457 Total Fund Balances 10,194, ,675 23,834,219 5,293, ,725 44,383,956 Total Liabilities and Fund Balances $ 20,635,674 $ 1,321,146 $ 27,385,522 $ 5,599,369 $ 407,832 $ 4,890,135 $ 60,239,678 The notes to the basic financial statements are an integral part of this statement.

32 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2012 Total fund balances $ 44,383,956 Capital assets are not financial resources and therefore are not reported in the governmental funds. Cost 215,028,597 Accumulated depreciation (66,128,212) 148,900,386 A portion of the District's property taxes are collected after year-end but are not available soon enough to pay for the current year operations, and therefore are not reported as revenue in the governmental funds. The unamortized portion of issuance costs is not available to pay for current period expenditures, and therefore, is not reported in the governmental funds. The difference between market value and carrying amount of investments is not recorded as income in the governmental fund statements. Interest earned but not yet received on investments is not accrued in the governmental fund receivables, but rather is recognized when revenue is received Interest payments due from the federal government but not received on the Qualified School Construction Bonds is not accrued in the governmental fund receivables, but is recognized when received. The District's internal service fund is for self insurance for property loss and unemployment costs. The assets and liabilities of the internal service fund are included in the governmental activities statement of net assets The net OPEB and pension stipend assets are not reported as an asset in the governmental funds as assets in the governmental funds 2,832, ,290 (27,452) 3,977 11,742 1,369,721 1,445,001 Long-term liabilities not payable in the current year are not reported as governmental fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but rather is recognized as an expenditure when due. Interest payable Long-term liabilities Compensated absences (321,772) ( 136,063,529) (408,857) (136,794,158) The PERS UAL was prepaid with pension bond proceeds in which was recorded as an expenditure in the governmental funds. The prepaid asset will be reduced and the bond payment will be expensed as the bond is paid Prepayment of PERS UAL 40,984,170 Accumulated amortization (7,634,979) 33,349,191 Total Net Assets $ 96,169,855 The notes to the basic financial statements are an integral part of this statement. 16

33 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Year Ended June 30, 2012 Revenues State County Private Other Governmental General Fund Debt Service Fund Capital Projects Fund Grants Fund Federal Grants Fund Funds Total Local sources $ 48,871,966 $ 12,429,018 $ 962,803 $ 1,831,600 $ 33,795 $ 9,283,422 $ 73,412,604 Intermediate sources 2,697,273 2,312,562 5,009,835 State sources 48,679, , ,461 49,128,595 Federal sources 37, ,132 16,349 6,052,009 2,428,882 8,780,889 Total revenues 100,286,699 12,675, ,803 4,448,702 6,085,804 11,872, ,331, Expenditures Current Instruction 67,053,091 2,267,733 3,563,260 2,906,272 75,790,356 Support services 32,880,522 2,800,864 2,403, ,796 38,252,302 Community services 93, , ,425 4,442,209 4,769,802 Transit payments to other school districts 271, ,245 Debt service Principal 8,409,448 1,797,527 10,206,975 Interest 4,313,405 3,226,598 7,540,003 Capital outlay 8,633,768 8,633,768 Total expenditures 100,026,755 12,722,853 8,633,768 5,454,870 6,085,804 12,540, ,464,451 Excess (deficiency) of revenues over (under) expenditures 259,944 (47,703) (7,670,965) (1,006,168) (667,635) (9, 132,528) Other financing sources (uses) Debt Issuance 20,656,997 20,656,997 Transfers (783,784) (516,479) 451, ,309 (2,000) Total other financing sources (uses) (783,784) 20,140, , ,309 20,654,997 Net change in fund balances (523,840) (47,703) 12,469,553 (554,214) 178,673 11,522,469 Fund balances, beginning of year 10,718, ,378 11,364,666 5,848,094 4,154,051 32,861,487 Fund balances, end of year $ 10,194,457 $ 728,675 $ 23,834,219 $ 5,293,880 $ $ 4,332,725 $ 44,383,956 The notes to the basic financial statements are an integral part of this statement.

34 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2012 Net change in fund balances Amounts reported for governmental activities in the Statement of Activities are different because: $ 11,522,469 Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period: Expenditures for capital assets and construction in progress Capital asset disposition Less current year depreciation Repayment of principal is an expenditure in the governmental funds but reduced the liability in the Statement of Net Assets. Debt principal payments Amortization of bond premiums Amortization of bond discounts Amortization of issuance costs The internal service fund is used by the District for self insurance for unemployment and property loss. The net income is reported with the governmental activities Proceeds from the debt issued are recorded as other financing sources in the governmental funds, however, in the Statement of Net Assets issuing debt increases liabilities. These are the proceeds from the bonds issued in August, Interest earned but not yet received on investments is not accrued in the governmental fund receivables, but rather is recognized as revenue when received. Premiums and discounts are amortized ove the life fo the investment. Investments are recorded at market value. Accnued interest earned Adjustment to market value The PERS UAL was prepaid in and recorded as an expenditure in the governmental financial statements. The PERS UAL was recorded as a prepaid asset and is amortized annually in the Statement of Activities. In the Statement of Activities interest is accrued on long-term debt, whereas in the governmental funds it is recorded as an interest expense when due. In the Statement of Actives interest due from the federal government on the Qualified School Construction bonds is recorded as receivable, whereas it is recorded when received in the governmental funds. In the governmental funds the pension cost is ex!)ensed when paid. The Statement of Activities reflects the amount of the actuarial net pension obligation or the amount that has not been funded as per the actuarial required pension contribution. This is the amount the obligation decreased partially due to the implementation of GASB 45. 8,964,227 (5,130,181) 10,620, ,104 (287,779) (41,865) 3,834,046 11,003, ,833 (20,656,897) 3,977 (27,452) (1,567,031) (18,864) 11, ,279 Property taxes that do not meet the measurable and available criteria are not recognized as revenue in the current year in the governmental funds. In the Statement of Activities property taxes are recognized as revenue when levied. Compensated absences are recognized as an expenditure in the governmental funds when they are paid. In the Statement of Activities compensated absences are recognized as an expenditure when earned. Change in Net Assets $ 641, ,954 5,478,669 The notes to the basic financial statements are an integral part of this statement. 18

35 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Proprietary Funds Statement of Proprietary Net Assets June 30, 2012 Self Insurance Reserve Fund Assets Cash and cash equivalents $ 1,430,717 Accounts receivable Total Assets $ 1,430,717 Liabilities and Net Assets Liabilities Payroll liabilities 60,996 Net Assets Unrestricted 1,369,721 Total Liabilities and Net Assets $ 1,430,717 The notes to the basic financial statements are an integral part of this statement. 19

36 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Proprietary Funds Statement of Changes in Proprietary Net Assets For the year ending June 30, 2012 Self Insurance Reserve Fund Revenue Operating expenses Support services Change in net assets Net assets, beginning of year Net assets, end of year $ 231, , ,833 1,240,888 $ 1,369,721 The notes to the basic financial statements are an integral part of this statement. 20

37 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Proprietary Funds Statement of Cash Flows For the year ending June 30, 2012 Self Insurance Reserve Fund Cash flows from operating activities Receipts from customers $ 242,638 Payments to employees (108,080) Payments to suppliers Net cash provided (used) by operating activities 134,558 Cash and investments at beginning of year 1,296,159 Cash and investments at end of year $ 1,430,717 Reconciliation of change in net assets to net cash provided (used) by operating activities Change in net assets $ 128,833 Adjustments Change in accounts receivable 11 '152 Change in accounts payable Change in payroll liabilities (5,427) Net cash (used) by operating activities $ 134,558 The notes to the basic financial statements are an integral part of this statement. 21

38 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Fiduciary Funds Statement of Fiduciary Net Assets June 30, 2012 Early Retirement Stipends Other Post Employment Benefits (OPEB) Scholarship Fund Assets Invested in State Treasurer's investment pool $ 272,529 $ 2,889,405 Accounts receivable 485 Total Assets $ 273,014 $ 2,889,405 $ 209,608 $ 209,608 Net Assets Assets held in trust for: Scholarships Pension/ other postemployment benefits 273,014 2,889, ,608 Total Net Assets $ 273,014 $ 2,889,405 $ 209,608 Statement of Changes in Fiduciary Net Assets For the year ending June 30, 2012 Early Retirement Fund Other Post Employment Benefits {OPEB} Additions Contributions from employer $ 273,361 $ 2,033,381 Investment earnings 1,941 14,442 Total additions 275,303 2,047,824 Scholarship Fund $ 1 '118 1 '118 Deductions Scholarship payments Early retirement stipends 365,027 Health benefits 1,822,768 2,000 Total deductions 365,027 1,822,768 2,000 Change in net assets (89,724) 225,055 Net assets, beginning of year 362,739 2,664,349 (882) 210,490 Net assets, end of year $ 2,889,405 $ 209,608 The notes to the basic financial statements are an integral part of this statement. 22

39 Notes to the Basic Financial Statements

40 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 I. Summary of Significant Accounting Policies The Tigard-Tualatin School District No. 23J's ("District") financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) of the United States of America applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the District's accounting policies are described below. A. REPORTING ENTITY The District was organized under provisions of Oregon Statutes, Chapter 332, for the purpose of operating a school district. The District is a municipal corporation governed by a five-member board, which is elected by citizens residing within the District's boundaries. The daily operations of the District are under the supervision of the Superintendent-Clerk. Administrators are approved by the Board. Generally accepted accounting principles of the United States of America require that these financial statements present the primary government and all component units, if any. Component units are separate organizations that may be included in the District's reporting entity because of the significance of their operational or financial relationships with the District. Multi-Sensory Instruction Teaching Children (M.I.T.C.H.), a charter school, is a component unit of the District. This component unit is presented as a separate column on the government-wide financial statements. The charter school is considered a component unit because the District is the body, which has authority to approve or revoke the M.I.T.C.H. charter agreement establishing the charter school status. M.I.T.C.H. is fiscally dependent on the District as 70 percent of the Charter School's revenue is from state school funds that are required to flow through the District to the charter school. Oregon Revised Statutes also require that charter schools be reported as component units of school districts with charter approval authority. Exclusion of the M.I.T.C.H. Charter School as a component unit of the District would render the District's financial statements incomplete. Complete financial statements for M.I.T.C.H. may be obtained from M.I.T.C.H.'s administrative office, SW 90 1 h Court, Tualatin, Oregon In 1991, private citizens residing in the District area formed the Tigard-Tualatin Schools Foundation as a separate, independent, non-profit corporation. The Foundation is not a component unit of the District and is not included in this report, but it does raise money and perform services for the benefit of the District and its students. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the activities of the District and its component unit. lnterfund activity has been removed from these statements. The District is reported separately from a legally separate component unit for which the primary government is not financially accountable, but for which the nature and significance of their financial relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include: 1) charges for goods and services provided by a given function, and 2) grants and contributions that are restricted to meeting the operational 23

41 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Major individual governmental funds are reported as separate columns in the fund financial statements, while the nonmajor funds are condensed into one column. Separate financial statements are provided for governmental funds and fiduciary funds. The fiduciary funds are excluded from the government-wide financial statements. lnterfund activity has been eliminated from the government-wide statements to eliminate double accounting for internal activities. For example, the indirect charges to individual grant funds have been eliminated in the statement of activities. lnterfund services provided and used are not eliminated in the process of consolidation. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers tax revenues to be available if they are collected within 60 days of the end of the current fiscal period. Other receivables include reimbursements for grant expenditures and invoices for building use, catering, and copy center use fees and are recorded if they are earned before the year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, principal and interest on long-term debt are recorded only when payment is due. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. The District reports the following major governmental funds: The general fund is the District's primary operating fund. It accounts for all financial resources of the District except for those required to be accounted for in another fund. The general obligation bond debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The capital projects fund accounts for resources accumulated and payments made for the acquisition and improvement of sites, construction, and remodel of facilities. The state, county and private grants fund accounts for grants that are not fully funded by federal funds. The federal grants fund accounts for grants that are fully funded by federal funds. Committed revenue in the State, County and Private Grants fund includes: Service credits and cash payments in lieu of service are committed to educational services provided by the Northwest Regional ESD and other related educational programs. 24

42 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Strategic Investment Funds are committed to consumables required for prior textbook adoptions and the related educational programs. Any portion of the ending fund balance for this fund collected prior to the implementation of GASB 54 is committed to programs related to the initial receipt of the funds. Specific purposes of these funding sources include maintenance of facilities, technology equipment, and educational programs. The District reports the following proprietary fund types: The self insurance fund accounts for the District's unemployment costs and replacement of equipment not covered by the District's insurance deductible. Additionally, the District reports the following fiduciary fund types: The pension trust fund accounts for the activities of the early retirement program. The scholarship fund is used to account for scholarship resources held by the District in a fiduciary capacity for use by students. Disbursements from this fund are made in accordance with trust and donor agreements. The District reports deferred revenue on the balance sheets of the governmental funds. Deferred revenues arise when potential revenue does not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when the District receives resources before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both recognition criteria are met or when the District has a legal claim to the resources, the liability for deferred revenue is removed from the balance sheet and revenue is recognized. D. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America 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 reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates. E. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY 1. Cash and Investments The District's cash management policies are governed by state statutes, School Board policy DFA Investment of Funds, and the related School Board Administrative rule. School Board policy authorizes the District to invest in bankers' acceptances, time certificates of deposit, commercial paper, repurchase agreements, obligations of the United States and its agencies and instrumentalities and the Local Government Investment Pool (LGIP). During the year the District's investments have included obligations of the U.S. Treasury, its agencies and instrumentalities, deposits in financial institutions, and the LGIP. It is the District's policy to value investments at amortized cost, which approximates fair value. The LGIP is stated 25

43 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 at cost which approximates fair value. Changes in the fair value of investments are recorded as investment earnings. The State Treasurer's LGIP is not registered with the U.S. Securities and Exchange Commission as an investment company. The state's investment policies are governed by the Oregon Revised Statutes and the Oregon Investment Council. The State Treasurer is the investment officer for the Council and is responsible for all funds in the State Treasury. Investments in the fund are further governed by portfolio guidelines issued by the Oregon Short-Term Fund Board, which establishes diversification percentages and specifies the types and maturities of investments. The portfolio guidelines permit securities lending transactions as well as investments in repurchase agreements and reverse repurchase agreements. At June 30, 2012, the fair value of the position in the LGIP is 100 percent of the value of the pool shares as reported in the Oregon Short Term Fund audited financial statements. Amounts in the State Treasurer's LGIP are not required by law to be collateralized. 2. lnterfund Receivable and Payable and Transfers The receipt and payment of monies through one central checking account, as well as transfers between funds, result in interfund payables and receivables until cash is transferred from one fund to the other. These amounts represent current assets and liabilities and are reported as due to or due from other funds in the fund financial statements. 3. Property Taxes Receivable Property taxes are levied and become a lien on all taxable property as of July 1. Property taxes are payable on November 15. Collection dates are November 15, February 15, and May 15. Discounts are allowed if the amount due is received by November 15. Taxes unpaid and outstanding on May 16 are considered delinquent. Uncollected property taxes are shown on the statement of net assets. Uncollected taxes are deemed by management to be substantially collectible or recoverable through liens; therefore, no allowance for uncollectible taxes has been established. 4. Accounts and Other Receivables Accounts and other receivables are comprised of claims for reimbursement of costs under various state and federal grants, due from county tax collectors for taxes collected in June but not turned over to the District until July, and of amounts due for the rental of District facilities to the public. All accounts receivable are current and there is no allowance for uncollectable accounts as all collections were deemed collectable or made within 60 days of year end. 5. Supply Inventories Supply inventories purchased are valued at cost (first-in, first-out method). Any donated inventories are valued at their estimated fair market value. The District has elected to treat costs of other inventories as expenditures when consumed rather than when purchased (consumption method). 6. Pension Assets The District reports a PERS asset which consists of a lump-sum payment made topers in the fiscal year of $39,641,827 to finance the District's estimated unfunded actuarial liability. 26

44 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 The pension asset is equal to these payments made from the issuance of pension bonds less accumulated amortization calculated on the straight-line method, as a percentage of pension bond debt service costs, over the life of the pension obligation bonds. 7. Capital Assets Capital assets are recorded at original cost or estimated original cost. Donated assets are recorded at their fair market value at the time of donation. The District defines capital assets as assets with an initial cost of more than $5,000 and an estimated useful life of more than one year. In accordance with the definition of capital costs under Oregon law, capital assets also include equipment with an estimated useful life of more than one year purchased with 2011 General Obligation Bond proceeds regardless of individual cost. Interest incurred during construction is not capitalized. Maintenance and repairs that do not add to the value of an asset or materially extend an asset's useful life are not capitalized. Capital assets are depreciated using the straightline method over the following useful lives: Asset Type Land Improvements Buildings and Improvements Equipment Estimated Lives 20 Years Years 4-30 Years 8. Long-Term Debt In the government-wide statements long-term debt is reported in the statement of net assets. Bond premiums and discounts and issuance costs are deferred and amortized over the life of the bonds. Premiums and discounts are amortized using the effective interest rate method and the issuance costs are amortized using the straight-line method. Bonds payable are reported net of the applicable premium or discount. In the fund financial statements bond premiums, discounts and issuance costs are recognized when incurred. The face amount of the debt issued and premiums and discounts are recorded as other financing sources and uses. Issuance costs are reported as expenditures in the debt service fund. 9. Fund Equity In March 2009, the GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund-type Definitions. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund-type definitions. This statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed on the use of the resources reported in governmental funds. Under this standard, the fund balance classifications of reserved, designated, and unreserved/undesignated were replaced with five new classifications- nonspendable, restricted, committed, assigned, and unassigned. Nonspendable fund balance represents amounts that are not in a spendable form. The nonspendable fund balance represents inventories and prepaid items. Restricted fund balance represents amounts that are legally restricted by outside parties for a specific purpose (such as debt covenants, grant requirements, donor requirements, or other governments) or are restricted by law (constitutionally or by enabling legislation). 27

45 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Committed fund balance represents funds formally set aside by the governing body for a particular purpose. The use of committed funds would be approved by resolution. Assigned fund balance represents amounts that are constrained by the expressed intent to use resources for specific purposes that do not meet the criteria to be classified as restricted or committed. Intent can be stipulated by the governing body or by an official to whom that authority has been given by the governing body. The District Board of Directors grants authority to classify portions of ending fund balances as assigned to the Superintendent and Chief Financial Officer. Unassigned fund balance is the residual classification of the General Fund. Only the General Fund may report a positive unassigned fund balance. Other governmental funds would report any negative residual fund balance as unassigned. The governing body has approved the following order of spending regarding fund balance categories: Restricted resources are spent first when both restricted and unrestricted (committed, assigned or unassigned) resources are available for expenditures. When unrestricted resources are spent, the order of spending is committed (if applicable), assigned (if applicable) and unassigned. To preserve a sound financial system and to provide a stable financial base, the governing body has adopted a minimum fund balance policy. The policy directs that the proposed budget will create fund balances in an amount sufficient to: Allow the district to deliver a sustainable level of program through anticipated recessionary periods; and Protect the district from unnecessary borrowing in order to meet cash-flow needs; and Provide prudent reserves to meet unexpected emergencies and protect against catastrophic events; and Help ensure a district credit rating that would qualify the district for lower interest costs and greater marketability of bonds that may be necessary in the construction and renovation of school facilities. To this end the District Board directed the Superintendent to include in the budget designations to ensure an ending fund balance of a Rainy Day Reserve of five (5%) percent of total resources net of beginning fund balance, Unappropriated Ending Fund balance of five (5%) percent of total resources net of beginning fund balance, and Contingency of two (2%) percent of total resources net of beginning fund balance. In May, 2012, due to the current state budget and prolonged economic downturn, the School Board modified the Rainy Day Reserve Fund to zero (0%) percent and the Unappropriated Ending Fund Balance to 0.5 (0.5%)percent for the fiscal year only. Committed revenue in the State, County and Private Grants fund includes: Service credits and cash payments in lieu of service are committed to educational services provided by the Northwest Regional ESD and other related educational programs. Strategic Investment Funds are committed to consumables required for prior textbook adoptions and the related educational programs. 28

46 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Any portion of the ending fund balance this fund collected prior to the implementation of GASB 54 is committed to programs related to the initial receipt of the funds. Specific purposes of these funding sources include maintenance of facilities, technology equipment, and educational programs Net Assets Net assets comprise the various net earnings from operations, nonoperating revenues, expenses and contributions of capital. Net assets are classified in the following three categories: Invested in capital assets, net of related debt - consists of all capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - consists of external constraints placed on asset use by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted net assets - consists of all other assets that are not included in the other categories previously mentioned. 11. GrantRevenue Unreimbursed grant expenditures due from grantor agencies are recorded in the general purpose financial statements as receivables and revenues. Cash received from grantor agencies in excess of related grant expenditures is recorded as a liability, deferred revenue, in the combined balance sheet. 12. Retirement Plans Substantially all of the District's employees are participants in Oregon Public Employees Retirement System (PERS). Contributions topers are made on a current basis as required by the plan and are charged to expenditures as funded. The General Fund contributes percent of the payments to the District's contribution to the plan. Administrative employees who have reached age 55 and have provided 12 years active service to the District are eligible for early retirement benefits. Licensed employees who have reached age 55 and have provided 15 years active service to the District are eligible for early retirement benefits. The benefits are funded and charged to expenditures as payments become due to early retirees. The early retirement plans were closed to new participants: July 1, 1993, for licensed employees and July 1, 1995, for administrators. The General Fund contributes percent of the payments to the District's contribution to the plan. 13. Post Employment Health Care Benefits Administrative, classified, and licensed employees who qualify for early retirement benefits are entitled to payment of group medical insurance premiums. The costs of the premiums are recorded in the early retirement fund as the premiums are due. The post employment health care plans were closed to new participants: July 1, 1990 for classified employees, July 1, 1993, for licensed employees, and July 1, 1995, for administrators. The General Fund contributes percent of the payments to the District's contribution to the plan. 29

47 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, Compensated Absences Accumulated accrued compensated absences for vacation pay are recorded as current liabilities in the government-wide financial statements as the entire amounts are expected to be liquidated within one year. Accumulated sick leave does not vest and is recorded as it is used. 15. Risk Management Comprehensive General and Automotive Liability insurance provides $1 million basic coverage. Errors and Omissions coverage (sometimes called Difference in Conditions coverage) is in force for $1 million. Excess coverage over the Basic and Errors and Omissions coverage is in force at $9 million. II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. BUDGETING AND APPROPRIATIONS A budget is prepared and legally adopted for each governmental fund type on the modified accrual basis of accounting in the main program categories required by the Oregon Local Budget Law. The budgets for all budgeted funds are adopted on a basis consistent with generally accepted accounting principles of the United States of America except for capital outlay expenditures, including items below the District's capitalization level, which are budgeted by function in the governmental fund types. The primary differences between the budgetary basis and GAAP basis is that capital outlay for budgetary purposes is reported within the functional categories at the level of appropriation control and depreciation expense, deferred property taxes, and supply inventory are not reported at the fund level. Also principal on long-term debt is recorded as an expenditure rather than a reduction to liabilities. The District begins its budget process early in each fiscal year with the establishment of the Budget Committee. Recommendations are developed through late winter with the Budget Committee approving the budget in May or June. Public notices of the budget hearing are published after the Budget Committee approves the budget with a public hearing held approximately three weeks later, normally in June. The Tigard-Tualatin School District Board may amend the budget prior to adoption; however, budgeted expenditures for each fund may not be increased by more than 10 percent without a supplemental budget. The budget is then adopted, appropriations are made, and the tax levy declared no later than June 30th. B. BUDGETARY BASIS ACCOUNTING Expenditure budgets are appropriated at the following levels for each fund: Level of Control Instruction Support Services Enterprise and Community Services Facilities Acquisition and Construction Other Uses Transfers Debt Service Contingency 30

48 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Expenditures cannot legally exceed the above appropriation levels. Appropriations lapse at the fiscal year end. Management may amend line items in the budget without Board approval as long as appropriation levels (the legal level of control) are not changed. Supplemental appropriations require approval from the Board. C. EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the year ended June 30, 2012, no expenditures exceeded appropriations. Ill. DETAILED NOTES ON ALL FUNDS A. CASH AND INVESTMENTS Deposits Deposits with financial institutions are comprised of bank demand deposits and certificates of deposit. The total bank balance per the bank statements was $7,082,616. Of these balances all were deposited in banking institutions covered by Federal depositor insurance. However, a portion of these deposits exceed the Federal depository insurance limit and are not federally insured. Deposits with financial institutions include bank demand deposits. Oregon Revised Statutes require deposits to be adequately covered by federal depository insurance or deposited at an approved depository as identified by the Treasury. Cash and investments are comprised of the following as of June 30, 2012: Petty cash Demand deposits Public funds money market account Investments 14,382 2,144,104 5,180,189 50,430,219 Total cash and investments $ 57,768,894 31

49 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Cash and investments were held in the following fund types: Governmental funds: Equity in pooled cash and investments Cash and investments Total governmental funds 52,953,817 1,443,535 54,397,352 Fiduciary funds: US Treasury and State Treasurer's investment pool Early retirement fund Scholarship fund Total fiduciary funds 3,161, ,608 3,371,542 Total cash and investments $ 57,768,894 Investments The Tigard-Tualatin School District School Board authorizes the District to invest in obligations of U.S. government agencies, U.S. Government Sponsored Enterprises (USGSE), the U.S. Treasury, time certificates of deposit, repurchase agreements, money market investments, bankers' acceptances, commercial paper, State of Oregon and local government securities, and the State Treasurer's Investment Pool as per the State Treasurer's investment policies which are governed by Oregon Revised Statutes and the Oregon Short-Term Fund Board (OSTFB). There were no known violations of legal or contractual provisions for deposits. As of June 30, 2012 the District had the following investments and maturities. Weighted Average Maturity in %of Investment Investment Type Fair Value Years Portfolio Government Agency Securities $ 9,450, % State Treasurer's investment pool 40,979, % $ 50,430, % 32

50 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Interest Rate Risk- Oregon Revised Statutes and school board policy guide District investments. The District's investment policy was approved by the Oregon Municipal Debt Advisory Commission and allows certain investments to exceed 18 months. The policy provides for the maximum single maturity restriction of an investment in the portfolio to 5 years and the overall weighted average maturity of the portfolio is restricted to 18 months. Credit Risk- For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The District minimizes custodial credit risk by limiting investments to the types of securities allowed by law. The District School Board annually approves a list of financial institutions with which the District will do business. All of the investments, except for the investment in the Local Government Investment Pool which is not evidenced by securities, are held in safekeeping by the financial institutions counterparty in the financial institution's general customer account. At June 30, 2012, the District's investments in Government Agency Securities were rated AAA by Fitch Ratings and Moody's Investor Service and AA+ by Standard & Poors. The Local Government Investment Pool is not registered with the U.S. Securities and Exchange Commission as an investment company. The Fund currently has no credit rating as assigned by the credit rating agencies. The Fund's policies provide for a composite minimum weighted average credit quality rating for the Fund's holdings to be the equivalent of a AA Standard and Poor's rating. This composite is calculated based on the median rating if three agencies rate the security, the lower rating if two ratings are available or the single rating if only one rating is available. Concentration of Credit Risk- Oregon Revised Statutes do not limit investments as to credit rating for securities purchased from U.S. Government Agencies. More than 5% of the School District's total investments are in securities by the following issuers: Issuer Percentage of Total Investments (Total Equity Concentration) Federal Home Loan Board (FHLB) 12.79% Federal Farm Credit Bureau (FFCB) 5.95% Credit Risk- Deposits In the case of deposits, this is the risk that in the event of a bank failure, deposits may not be returned. As of June 30, 2012, bank balances were $8,354,427 and $2,877,306 was insured by FDIC. All deposits were in bank depositories qualified by the Oregon State Treasury which maintains the collateral program for local governments. B. ACCOUNTS AND OTHER RECEIVABLES Accounts and other receivables consist primarily of claims for reimbursement of costs under various federal and state grant programs and also include building use payments, other payments for services, and construction excise taxes collected by local governments. Receivables are comprised of the following at June 30, 2012: 33

51 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Governmental funds Current accounts and other recievables Property taxes receivable General Fund Debt Service Fund $1,363, Total property taxes receivable 1,724,448 Accounts and other receivables: Grants receivable State County Private Grants Fund Federal Grants Fund 963, ,832 Total grants receivable 1,371,474 Interest and Other General Fund Debt Service Fund Capital Projects Fund Other Governmental Funds 772,916 54, , ,608 Total interest and other receivables Total accounts and other receivables 1,804,208 4,900,130 Noncurrent accounts and other receivables: Property taxes receivable General Fund Debt Service Fund 1,102, ,047 Total noncurrent receivables 1,394,467 Total receivables governmental funds $6,294,597 Fiduciary funds Interest and other $ 485 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the fiscal year, the various components of deferred revenue reported in the governmental funds were as follows: 34

52 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Description Delinquent property taxes receivable, general fund Delinquent property taxes receivable, debt service fund Grant payments received prior to meeting all eligibility requirements Note on Old Tualatin Elementary property due May 2, 2016 All day kindergarten tuition collected in advance for school year, general fund Total deferred revenue Deferred Amount $ 2,239, ,471 54, , ,295 $ 3,768,336 C. INTERFUND RECEIVABLES, PAY ABLES AND TRANSFERS The composition of due to/due from balances as of June 30, 2012, is as follows: lnterfund lnterfund Payable Receivable Due To Due From General Fund $ $ 641,177 Special Revenue Funds Federal Grants Fund $ 237,037 $ Food Service Fund 377,716 SCRIP Fund 26,424 Total Special Revenue funds 641,177 Total Federal grants are on a reimbursement basis with claims made after expenditures. The general checking account covers the expenditures and grant claims are deposited into the general checking account. Other balances due to or due from funds occur between funds with separate checking or state investment pool accounts. All invoices are paid through the District's general checking account and funds are then transferred to/from the fund's pool account. Receipts are deposited into the District's general checking account and transfers are made to the various separate pool accounts. The due to/due from accounts exist because of timing delays in the transfers and grant expenditures claimed in the following year. 35

53 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 lnterfund transfers for the year ended June 30, 2012, are as follows: Transfer In Transfer Out General Fund Debt Service Fund State, County, Private Grants Fund $ - $ 783,784 1,223, ,954 Other Go\ mmental Funds Student Body Fund Capital Projects Fund Scrip Fund Total Other Go\ mmental Funds 353, ,479 20,000 1,675,383 1,673,383 Fiduciary Fund Scholarship Fund 2,000 Total Transfers $1,675,383 $ 1,675,383 General fund transfers of $633,728 were made to the Full Faith and Credit Debt Service Fund for payment on full faith and credit obligations for HVAC projects to reduce energy costs. $150,056 was transferred from the General Fund to the State County Private Grants Fund for obligations to schools. $20,000 was transferred from the Scrip fund to a special revenue fund for the Superintendent's discretionary account. $516,479 was transferred from the Capital Projects Fund for payment of full faith and credit debt. School Associated Student Body (ASB) funds are required to transfer all funds for purchases of goods or services or payment of club funded activities and sports over $50 to the District general fund. $353,120 was transferred in the fiscal year for various purchases made by the general fund for the ASB fund. D. SUPPLY INVENTORIES The supply inventory balances at June 30, 2012, are as follows: Food Service Fund Food items Value of commodities on hand Scrip Service Center Fund Scrip on hand $ Amount 23,542 56,153 79, Total inventory 4 36

54 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 E. NET OPEB ASSET Changes in the net OPEB asset for the Post Employment Health Care Benefits for the past three years are as follows: Balance at June 30, $ (997, 166) $ (503,497) $ (134, 145) Adjustment for GASB 45 Annual required contributions (ARC) 1,571,369 1,612,953 1,612,953 Interest on net pension obligation (29,915) (17,622) (4,695) Adjustment to ARC 49,393 7,047 7,047 Annual cost 1,590,847 1,602,378 1,615,305 Amount contributed (2,033,381) (2,096,047) (1,984,656) Net obligation (asset) at June 30, $ (1,439,700) $ (997, 166) $ (503,497) Percentage of APC contributed 128% 131% 123% F. NET PENSION (STIPEND) ASSET Changes in the net pension obligation for early retirement stipends, for the past three years, are as follows: Balance at June 30, 2011 $ 45,447 $ 100,554 $ 514,726 Annual required contributions (ARC) Interest on net pension obligation Adjustment to ARC Annual cost 227,535 1,363 (6,286) 222, , ,929 3,519 18,015 (12,770) 226, ,146 Amount contributed Reconciliation adjustment (273,361) (281,785) (374,445) (233,873) Net obligation (asset) at June 30, 2012 $ (5,301) $ ======== Percentage of APC contributed 123% 45,447 $ 100, % 193% 37

55 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 G. CAPITAL ASSETS Capital asset activity for the year ending June 30, 2012, was as follows: Balance Current year Current year June 30, 2011 additions dispositions Capital assets not being depreciated Land $ 20,713,940 $ - $ - Construction in progress 49,064 2,907,272 (49,064) Total capital assets not being depreciated 20,763,004 2,907,272 (49,064) Balance June 30, 2012 $ 20,713,940 2,907,271 23,621,212 Capital assets being depreciated Land improvements 7,808, ,846 Less accumulated depreciation (2,475,444) (431,986) Land improvements, net of depreciation 5,333,402 (108,140) Buildings and improvements 171,230, ,632 Less accumulated depreciation (54,559,930) ( 4,020,275) Buildings and improvements, net of depreciation 116,670,652 (3,809,643) 8,132,692 (2,907,430) 5,225, ,441,214 (58,580,205) 112,861,009 Vehicles and equipment 6,677,615 5,571,541 (415,677) Less accumulated depreciation (4,378,333) (677,920) 415,677 Vehicles and equipment, net of depreciation 2,299,283 4,893,621 11,833,479 (4,640,575) 7,192,903 Total capital assets being depreciated 124,303, , ,279,174 Total all capital assets net of accumulated depreciation $145 Q $ Q $ (48 Q64l $148 8QQ 386 Depreciation expense was charged to functions of the governmental activities of the District as follows: Instruction Support Services Enterprise and Community Services Total depreciation current year Current Depreciation $ 4,515, , ,409 $ 5, 130,180 Construction In Progress The District has ten active construction projects as of June 30, Six Qualified School Construction Bond projects were in progress. The projects were Phase II of the Hazelbrook Middle School reroofing project, the resurfacing of the Tigard High School track, reroofing Tualatin High School, replacement of cafeteria freezers and classroom vestibules at Mary Woodward, Byrom and Bridgeport elementary schools, district-wide electrical projects, and boiler replacements. Replacement of the district's phone system with a VoiP system began in the spring 38

56 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 with activation of the system set for the Fall of Secondary science classrooms upgrades related to new curriculum are to be ready for the start of school in the fall. Seismic upgrades to Twaility Middle School were in progress with funding from a state grant and bond and district funding. Construction consisting mainly of land improvements began on a second bus facility in Tualatin. All of the construction in progress of $2,907, relates to the ten projects. H. COMPENSATED ABSENCES The District does not liquidate liability for compensated absences until leave is actually taken by the employee in the governmental funds. Accrued vacation leave is considered compensated absence. The fund used to liquidate the liability is the fund where the employee's salary was charged as it is used at termination. Of the balance, 92.7 percent reflects vacation salary charged to the General Fund. The liability is considered a current liability as vacation is given at the beginning of the fiscal year and must either be taken within the fiscal year or certain qualifying employees must request a payoff of the balance within one year following the fiscal year in which it was earned. Changes in compensated absences in the basic financial statement are as follows: Balance at June 30, 2011 Increase in accumulated accrued compensated absences Decrease in accumulated accrued compensated absences Balance at June 30, 2012 $ $ 517,811 23,877 (132,831) 408,857 I. CAPITAL LEASES The District has entered into lease agreements as lessee for financing the acquisition of land improvements and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The District replaced the defective turf field at Tigard High School which has a capital lease that continues through October 1, The capitalized value of the turf field lease was $935,035. The District was unable to make any claims for the defective field as the vendor filed bankruptcy and had closed before the field was deemed defective. The leased land improvements and equipment total $1,813,075, with accumulated depreciation of $883,802 and a net book value of $929,273 for the year ended June 30, Obligations of the District's governmental activities under capital leases at June 30, 2012, are as follows: Year June 30 Principal Interest Total ,195 32, , ,457 22, , ,050 12, , ,732 2, ,264 Total Lease Payments $ 976,434 $ 69,768 $ 1,046,201 39

57 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 J. LONG-TERM DEBT The following is a summary of long-term debt transactions of governmental activities during the year ended June 30, 2012: Balance Balance Due Within June 30, 2011 Additions June 30, 2012 One Year General Obligation Bonds: May, 2001 Refunding Issue $ 13,910,000 $ $ 2,810,000 $ 11,100,000 $ 2,950,000 June, 2002 Issue 4,340,000 4,340,000 August, 2005 Refunding Issue 55,755,000 55,755,000 4,390,000 July, 2009 Issue 1,295, , , ,000 August, 2011 Issue A 10,004, ,448 9,335, ,000 August, 2011 Issue B 10,000,000 10,000,000 Total General Obligation Bonds 75,300,000 20,004,448 8,409,448 86,895,000 9,745,000 Full Faith and Credit Obligations: April, 19991ssue A- Avery Property 688, , ,873 March, 2000 Issue - New Hibbard Center 3,167, ,478 July, HVAC and Access Control 676, ,200 PERS Unfunded Actuarial Liability Bonds 38,590, ,000 July, 2009 Issue- Thorpe Property 5,100, ,000 January 2010 Issue- Transportation Facility 660,000 71,000 August 2010 Issue- Tigard High School Soccer 440,000 44,000 Total Full Faith and Credit Obligations 49,322,242 1,990,550 Capital Lease Agreements: October, Tigard High Football Field 108,028 55,991 March, JCI Phase Ill Master Equipment Total Capital Lease Agreements 350, ,195 Subtotal Long-Term Debt 125,948,984 20,004,448 10,620, ,333,223 Issuance Premiums and Discounts 503, , ,305 Total Long-Term Debt $ 20,501,344 $10,889,980 $12,042,745 40

58 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 The following is a list of each outstanding long-term liability of the District with related information on the terms of the instrument: General Obligation Bonds, 2001 Refunding Series, future payrrents due in annual installrrents with interest paid serri-annually at 4.25% to 5.5% through June, 2016 $11, General Obligation Bonds, 2005 Refunding Series, future payrrents due in annual installrrents with interest paid serri-annually at 4.125% to 5.375% through June, ,755,000 General Obligation Bonds, 2009A Series, future payrrents due in annual installrrents with interest paid serri-annually at 3.0% through June, ,000 General Obligation Bonds, 2011A Series, future payrrents due in annual installrrents with interest paid serri-annually at 2.0% to 2.818% through June, ,335,000 General Obligation Bonds, 2011 B Series, future payrrents due in one payrrent June, 2017 w ithfederally subsidized interest paid serri-annually at an average coupon rate of 2.818%. 10,000,000 Full faith and credit obligation - Avery Property April, 1999 Issue A, future payrrents began in 2008 and are then due in annual installrrents with interest paid serri-annually at 4.6% to 4.88% through June, ,873 Full faith and credit obligation - New Hibbard Center tvlarch, 2000 Issue, first payrrent due in 2008, then annual installrrents begin in 2013 with interest paid serri-annually at 5.5% to 6.19% through June, ,167,716 Full faith and credit obligation- HV AC and Access Control July 2003, future payrrents due in annual installrrents with interest paid serri-annually at 3.1% through July, ,200 Full faith and credit obligation - Thorpe Property July, 2009 Issue, future paymnts due annually beginning June 2012 with interest paid serri-annually at 3.0% to 4.125% through June, Full faith and credit obligation- Bus Garage Refunding January. 2010, future payments due annual installrrents with interest paid serri-annually at 3.0% through June, ,780, ,000 Full faith and credit obligation Tigard High Soccer Field August, 2010, future payments due annual installrrents with interest paid serri-annually at 3.25% through August, ,000 PERS Unfunded Actuarial Liability Bonds October 2007, future payrrents due in annual installrrents with interest paid serri-annually at 4.9% to 5.6% through June ,915,000 Capital lease obligations payable through Decerrber, ,434 Total $ 41

59 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Total debt service expenditures, excluding retirement benefits, for the year ended June 30, 2012, were as follows: Debt Service Fund: Principal Interest Total General Obligation Bonds series 2001 Refunding $ 2,810,000 $ 745,438 $ 3,555,438 General Obligation Bonds series ,340,000 80,614 4,420,614 General Obligation Bonds series 2005 Refunding 2,387,915 2,387,915 General Obligation Bonds series ,000 38, ,850 August 2011 Issue A 669, ,448 August 2011 Issue B Full Faith and Credit Obligation series 1999A 420, , ,000 Full Faith and Credit Obligation - HVAC 332,803 18, ,200 Full Faith and Credit Obligation -Thorpe Property 320, , ,469 Full Faith and Credit Obligation -Bus Garage 68,000 34, ,650 Full Faith and Credit Obligation -Soccer Field 44,000 20,020 64,020 PERS Unfunded Actuarial Liability Bonds 675,000 2,149,055 2,824,055 Capital Lease Payments 350,308 46, ,231 Total Debt Service Fund $ 10,620,209 $6,072,680 $ 16,692,889 No interest costs were capitalized during the year. Capital leases are comprised of 2 leases: Both require semiannual payments. The Tigard High football field turf lease is payable semiannually at $57,351 including interest at 4.86 percent annually from 2003 through The Johnson Controls Phase Ill master equipment lease is payable semiannually at $141,264 including interest at 5.69 percent annually from 2006 through Full faith and credit obligations include 1999 Series A for the purchase of property, payments were deferred until 2009 and are payable from 2009 through 2013 with interest rates from 4.6 percent to 4.88 percent. For the 2000 Series for the purchase of the Hibbard administration building, a payment was due in 2008 of $429,128, future payments are deferred until 2013 and payable from 2013 through 2024 with interest rates from 5.5 to 6.19 percent. The Bank of America HVAC and Security Access loan is payable semiannually at $175,600 including interest at 3.1 percent annually from 2004 through These contracts are secured by the equipment and land improvements financed. The Thorpe Property bonds for the Art Rutkin School site were issued for the payment of the promissory note due in August, 2009, future principal payments were deferred until June, 2012 and are payable until June, 2024 with interest rates from 3.0 to percent payable from December, 2009 to June The Tigard High Soccer Field debt was issued in August, 2010 with principal payments of $44,000 due annually with an interest rate of 3.25 percent. On October 31, 2007, the District participated with six other school districts in a pooled issuance of taxable pension obligation bonds to finance the District's estimated PERS unfunded actuarial liability. The District issued $41,385,000 in debt as part of a pooled issuance of $110,160,000. Except for the payment of its pension bond payment and additional charges when due, each school district has no obligation or liability to any other participating school district's pension bonds or liabilities to PERS. 42

60 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 PERS bond proceeds were paid to the Oregon Public Employees Retirement System. An intercept agreement with the State of Oregon was required as a condition of issuance; therefore a portion of State School Fund support is withheld on a monthly basis to repay debt. Funds are accumulated and invested by a trust officer and annual principal and interest payments are made each June 30, and December 30, beginning June 30, 2008 and ending June, The bond interest rates range from 4.9 percent to 5.6 percent. The District records the amounts deposited with PERS as a prepayment of its actuarial obligation and accounts for the payment of principal and interest as a pension expense annually. The prepayment is being amortized over the life of the bonds based on the straight-line method, as a percentage of pension bond debt service costs, over the life of the bonds. This method most closely recognized the remaining prepaid asset. The following pages are a summary of the District's debt obligation excluding capital lease agreements to the year

61 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 BOND REPAYMENT SCHEDULE Year Ending June FF&C 1999 series A Principal $ 267,872 $ $ $ Interest 262,128 FF&C 2000 series Principal 119, , , ,476 Interest 135, , , ,285 FF&C HVAC Access and Control Principal 343,200 Interest 8,000 FF&C Thorpe Property Principal 330, , , ,000 Interest 176, , , ,394 FF&C Bus Garage Principal 71,000 75,000 80,000 84,000 Interest 31,080 27,353 23,415 19,215 FF&C Tigard High Soccer Field Principal 44,000 44,000 44,000 44,000 Interest 12,155 10,725 9,295 7,865 Bonds 2001 Refunding series Principal 2,950,000 3,115,000 3,285,000 1,750,000 Interest 597, , ,338 91,875 Bonds 2005 Refunding series Principal 4,390,000 4,615,000 4,855,000 5,110,000 Interest 2,859,038 2,632,313 2,390,025 2,135,138 Bonds 2007 Pension Obligation Principal 815, ,000 1,130,000 1,310,000 Interest 2,114,752 2,072,934 2,022,512 1,962,668 Bonds 2009 series Principal Interest 281, , , ,800 Bonds 2011 series A Principal 995,000 2,125,000 3,130,000 3,085,000 Interest 269, , , ,800 Bonds 2011 series B Principal 705,000 Interest 21,150 Total Principal 11,030,550 11,626,371 13,232,241 12,073,477 Total Interest 6,770,200 6,315,333 5,862,613 5,283,038 Total Requirements $ 17,800,750 $ 17,941,704 $ 19,094,854 $ 17,356,515 44

62 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, Total $ $ $ $ $ 267, , ,834 1,356, ,983 3,167, ,100 3,220,839 1,101,571 6,492, ,200 8, ,000 2,080, ,000 4,780, , ,069 58,613 1,283,475 89, , ,000 14,805 15, ,198 44, , ,000 6,435 11,440 57,915 11,100,000 1,389,788 5,380,000 31,405,000 55,755,000 1,866,863 4,877,663 16,761,038 1,500,000 11,035,000 18,775,000 2,385,000 37,915,000 1,892,648 7,946,370 4,040, ,965 22,185,877 10,000,000 10,000, ,800 1,409,000 9,335, , ,000 21,150 17,694,835 46,245,337 20,068,984 2,385, ,356,789 4,750,444 16,517,709 5,200, ,964 50,833,519 $ 22,445,279 $ 62,763,046 $ 25,269,194 $ 2,518,965 $185,190,308 45

63 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 K. ADVANCE REFUNDING AND DEFEASANCE OF DEBT The District has defeased certain general obligation bonds by placing the proceeds of refunding issues in an irrevocable trust to provide for all future debt service payments on the retired bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District's financial statements. On June 30, 2012, $57,140,000 of bonds outstanding are considered defeased. L. FUND BALANCE CONTSTRAINTS The specific purposes for each of the categories of fund balance as of June 30, 2012 are as follows: State County Private Grants Non Major Fund Balances: General Fund Debt Service Capital Projects Fund Funds Total Nonspendable: Prepaid & lmentory $ 301,414 Re stri cte d: Long Term Debt Construction excise tax agreements Construction projects per ballot title Textbook and related curriculum materials and technology per ballot title School donation accounts Transportation equipment Food sef\/ice programs Scrip purchases Grants Student body funds r 728, r 1,801,526 7,518,531 4,862, ,557 r 59,111,. 1,176,376 r 341, ,679 1,443, ,702 1,801, ,557 Committed to: Facility acquisition, land purchases, and leases Consumables related to prior textbook adoptions ESD programs and related sef\/ices School savings accounts Facility use and parking lots Educational programs 728,675 14,182,138 1,039,236 3,189,451 8,480, ,109 1,724, , ,859 r 19,139,501 8,480, , , ,302 1 ' Assigned to: Appropriation of fund balance Capital projects 6.760,000 6,760,000 8,480,011 4,254, ,859 1 '172, ,069 13,576,514 1,172,069 1,172,069 Unassigned: 3,434,457 Total Fund Balances 46

64 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 IV. OTHER INFORMATION A. STATEWIDE LOCAL GOVERNMENT RETIREMENT SYSTEM The District is a participating employer in the Oregon Public Employees Retirement Fund (OPERF), an agent multiple-employer public employee retirement system established under Oregon Revised Statutes that acts as a common investment and administrative agent for public employers in the State of Oregon. PERSis a cost sharing multiple employer defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to members and their beneficiaries. Benefits are established by State statute. In the 2003 legislative session, the Oregon Legislative Assembly created a successor plan for PERS. The Oregon Public Service Retirement Plan (OPSRP) is effective for all new employees hired on or after August 29, 2003, and applies to any inactive PERS members who return to employment following a six month or greater break in service. The new plan consists of a defined benefit program (the Pension Program) and a defined contribution portion (the Individual Account Program or lap). The Pension Program portion of OPSRP provides a life pension funded by employer contributions. Benefits are calculated by a formula for members who attain normal retirement age. The formula takes into account final average salary and years of service and a factor that varies based on type of service (general versus police or fire). Beginning January 1, 2004, all PERS member contributions go into the lap portion of OPSRP. PERS members retain their existing PERS accounts, but any future member contributions are deposited into the members lap, not the member's PERS account. Those employees who had established a PERS membership prior to creation of OPSRP will be members of both the PERS and OPSRP system as long as they remain in covered employment. Both PERS and OPSRP are administered by the Oregon Public Employees Retirement Board (OPERB). The comprehensive annual financial report of the funds administered by the OPERB may be obtained by writing to Oregon Public Employees Retirement System, P.O. Box 23700, Tigard, Oregon , by calling (503) , or by accessing the PERS web site at /oregon. gov /P ERS/. Members of PERS are required to contribute 6 percent of their salary covered under the plan. The District is required by ORS to contribute at an actuarially determined rate. The contribution requirements for plan members are established by ORS Chapter 238 and may be amended by an act of the Oregon Legislature. The District's contribution to the plan for the years ending June 30, 2012, 2011 and 2010 were $11,237,640, $7,702,344, and $7,585,010 respectively, and were equal to the required contributions for each year. In 2012, the District also contributed $2,824,100 via the intercept payment for the PERS UAL debt service payments. The General Fund accounted for percent of the District's contribution in the year ending June 30, No pension liability existed at June 30, 2012, determined in accordance with Statement No. 27 of the Governmental Accounting Standards Board. As of March 1, 2006, employers' Tier 1/Tier 2(T1/T2) rate was divided into two components: a normal cost rate and a UAL (or surplus) amortization rate. The normal cost rate continues to be applied only to T1/T2 payroll. However, the UAL amortization rate is applied to the employer's entire payroll, T1/T2 and OPSRP combined. 47

65 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 The following rates will be effective July 1, 2011 through June 30, 2012: T1!T2 payroll % (PERS Normal cost 7.55% plus PERS UAL 7.53% and Retiree Healthcare.59%) OPSRP payroll-14.16% (OPSRP rate 6.13% plus PERS UAL 7.53% and Retiree Healthcare.50%) B. EARLY RETIREMENT STIPENDS Plan Description The District has established early retirement programs for licensed employees and administrators under a single-employer defined benefit pension plan resulting from collective bargaining agreements. The programs provide post-employment stipends for licensed employees and administrators who are at least 55 years of age. Administrators must have worked for the District at least 12 years and licensed employees must have worked for the District at least 15 years. The early retirement plans were discontinued as of July 1, 1993, for licensed employees and July 1, 1995, for administrators. Any new employees hired after these dates are not eligible to participate in the plans. Stipends will be paid to early retirees under the following schedule until the earlier of death, reemployment or age 62 when the early retiree qualifies for social security benefits: Retired During Periods July 1, 1991 to June 30, 2010 Licensed Employees Maximum Monthly Payments $ 525 Maximum Number of Payments 60 Administrators Maximum Monthly Payments $ 450 Maximum Number of Payments 48 During the period the administrator receives these payments, he or she will perform up to 15 days of service per year for the District. If the administrator refuses or declines to perform such service, the amount of compensation shall be reduced by an amount equal to the daily compensation rate at the time of retirement, multiplied by the number of requested days of service that the administrator refuses or declines to perform. Licensed employees do not have a service obligation. Plan membership consisted of the following at June 30, 2012: Retirees and beneficiaries currently receiving benefits Active employees Vested Nonvested

66 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 Funding the Plan Stipends are funded solely by the District. There is no obligation on the part of the District to fund these benefits in advance. The District's only obligation is to make current benefit payments due each year. Consequently, the District has established a pension trust fund, and makes benefit payments based on assessing salaries at 0.57 percent. The District's last actuarial valuation was completed as of June 30, Annual Required Contribution (ARC) $ 227,535 $ 235,929 $ 235,929 Interest on Net OPEB Obligation 1,363 3,519 18,015 Adjustment to ARC {6,286) (12,770) (59,798) Annual OPEB Cost 222, , ,146 Contributions (273,361) (281,785) (374,445) Reconcilation Adjustment (233,873) Increase (Decrease) in Net OPEB Obligation (50,748) (55, 107) (414, 172) Net OPEB Obligation (asset)- beginning of fiscal year 45, , ,726 Net OPEB Obligation (asset)- ending of fiscal year $ (5,301) $ 554 The annual required contribution (ARC) for 2012 of $227,535 was determined as part of the June 30, 2012, actuarial valuation using the projected unit credit actuarial cost method, which provides no unfunded actuarial accrued liability and 12 year amortization added to the normal cost. The actuarial assumptions included: (a) a rate of return on investment of present and future assets of 4 percent compounded annually; and (b) no post-retirement benefit increases. The amortization component of the ARC is determined using a closed 15-year amortization commencing with the July 1, 2004 actuarial valuation. The amortization method is level dollar. There is no inflation rate assumed for this plan by the actuary as the stipends in the plan are fixed dollar amounts.the District has a Net Pension Obligation of $(5,301) for this plan. Interest of $1,363 was accrued on the Net Pension Obligation (NPO). The net pension obligation decreased by $50,7 48 from the prior year. Funded Status and Funding Progress As of June 30, 2012, the most recent actuarial valuation date, for the period July 1, 2011 through June 30, 2012: the District's actuarial accrued liability (AAL) for benefits was $1,622,880, and the actuarial value of assets as of June 30, 2012 was $273,053, resulting in an unfunded actuarial accrued liability (UAAL) of $1,349,824, covered payroll was $51,299,618 with 2.63% of the UAAL as a percentage of covered payroll. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, will eventually present multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Total benefits paid for stipends under this plan for the years ending June 30, 2012, 2011, and 2010 respectively were $365,027, $394,442, and $428,039. The percentage funded was

67 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 percent, 238 percent, and 185 percent with the NPO $(5,301), $45,447, and $100,554. Benefits and refunds of the post employment plan are recognized when due and payable in accordance with the terms of the plan. Administrative costs are funded via payroll assessment. The District does not issue a stand-alone report for this plan. Calculations are based on the OPEB benefits provided under the terms of the substantive plan in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations of the OPEB plan reflect a long-term perspective. C. OTHER POSTEMPLOYMENT BENEFITS (OPEB) Postemployment Health Insurance Subsidy The District implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (OPEB) for the fiscal year ended June 30, This implementation allows the District to report its liability for other postemployment benefits consistent with established generally accepted accounting principles and to reflect an actuarially determined liability for the present value of projected future benefits for retired and active employees on the financial statements. Plan Description The District participates in the Oregon Educators Benefit Board, a statewide agent multipleemployer health benefit plan that provides health, dental, and vision insurance benefits to eligible employees, retirees, and their beneficiaries. There are 975 active and 142 retired members in the District's plan. Benefits and eligibility for members covered by the District-paid defined benefit OPEB plan are established through the collective bargaining agreements. The District's post-retirement healthcare plan was established in accordance with Oregon Revised Statutes (ORS) ORS stipulate that for the purpose of establishing healthcare premiums, the rate must be based on all plan members, including both active employees and retirees. The difference between retiree claims costs, which because of the effect of age is generally higher in comparison to all plan members, and the amount of retiree healthcare premiums represents the District's implicit employer contribution. Funding Policy The benefits from this program are paid either by the District or by the retired employees on a self-pay basis. The annual required contribution is based on projected pay-as-you go financing requirements. There is no obligation on the part of the District to fund these benefits in advance. The District has established a fiduciary trust to accumulate assets for the District-paid benefits. As of June 30, 2012 this fiduciary trust held $2,889,847 for the OPEB Plan. Annual OPEB Cost and Net OPEB Obligation The District's annual other postemployment benefit cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance within the parameters of GASB 45. The ARC represents a level of funding that, if 50

68 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the OPEB obligation at the end of the year: Annual Required Contribution (ARC) $ 1,571,369 $ 1,612,953 $ 1,612,953 Interest on Net OPEB Obligation (29,915) (17,622) (4,695) Adjustment to ARC 49,393 7,047 7,047 Annual OPEB Cost 1,590,847 1,602,378 1,615,305 Contributions (2,033,381) (2,096,047) (1,984,656) Increase (Decrease) in Net OPEB Obligation (442,534) (493,669) (369,351) Net OPEB Obligation (asset)- beginning of fiscal year (997, 166) (134, 145) Net OPEB Obligation (asset)- ending of fiscal year $ (1,439,700) $ $ (503,496) The District's annual OPEB cost, the contribution, the percentage of annual OPEB cost contributed to the plans, and the net OPEB obligation for were as follows: Percentage of Annual OPEB Fiscal Year Annual OPEB Cost Net OPEB Ended June 30 Cost Contribution Contributed Obligation ,615,305 1,984, % (503,497) ,602,378 2,096, % (997, 167) ,590,847 2,033, % (1,439, 700) Funded Status and Funding Progress As of June 30, 2012, the most recent actuarial valuation date, for the period July 1, 2011 through June 30, 2012: the District's actuarial accrued liability (AAL) for benefits was $20,859,458, and the actuarial value of assets as of June 30, 2012 was $2,889,847, resulting in an unfunded actuarial accrued liability (UAAL) of $17,969,611, the covered payroll was $51,299,618 with UAAL as a percentage of covered payroll. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, will eventually present multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions The actuarial cost method used to determine the cost and liabilities for this plan was the projected unit credit cost method. Under this method, the plan's benefit obligations for participants for past service are computed on a present value basis using projected benefits (including future 51

69 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 accruals). The accrued liability is equal to a pro-rata portion of the total present value of future benefits based on the ratio of service as of the valuation date to the projected service at assumed retirement (or other decrement). The amortization method is level dollar and the amortization period is an open 30 year period. In the June 30, 2012 actuarial valuation, the actuarial assumptions included a discount rate of 3.0 percent and a 100 percent assumption of participants who are eligible for District-paid medical coverage at retirement and 55 percent if not eligible for District-paid benefits at retirement. They also assume medical premiums will increase 9.5 percent initially, grading down to 5 percent over 9 years. Dental premiums are assumed to increase 2.5 percent initially, remaining at 3 percent in subsequent years. Vision premiums are assumed to increase 5 percent initially and grade down to 3 percent over 4 years. These assumptions are consistent with expectations for long-term health care cost inflation. The demographic assumptions, such as mortality rates, disability incidence rates, retirement rates, and withdrawal rates for employees only eligible for self-pay coverage, are the same as those used by Oregon PERS for School Districts. Employees who are eligible for the District-paid benefits are assumed to retire at higher rates. The maximum District contribution for licensed retires is assumed to increase annually at the same annual rate used to project future insurance premiums. The maximum District contribution for classified retirees will increase 7.5 percent in October 2012 and are assumed to increase 5 percent annually in all subsequent years. Calculations are based on the OPEB benefits provided under the terms of the substantive plan in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. Actuarial calculations of the OPEB plan reflect a long-term perspective. D. DEFERRED COMPENSATION The District has a deferred compensation plan available for its employees. The deferred compensation plan is one that is authorized under IRC Section 457 and has been approved in its specifics by a private ruling from the Internal Revenue Service. The assets of the plan are held by the plan administrator for the sole benefit of the plan participants and are not considered assets and liabilities of the District. As of June 30, 2012, 25 employees were participating in the plan. E. TAX SHELTERED ANNUITY The District offers its employees a tax deferred annuity program established pursuant to Section 403(b) of the Internal Revenue Code (the Code). Contributions are made through salary reductions from participating employees up to the amounts specified in the Code. No contributions are required by law from the District. As of June 30, 2012, 437 employees were participating in the plan. F. COMMITMENTS AND CONTINGENCIES In December 1988 the District entered into an agreement with Lowe's Hardware Corporation to lease the Phil Lewis elementary school site for a period of 30 years. The District accounts for this transaction as a direct sales financing lease. During the fiscal year ending June 30, 2012, the District received proceeds of $787,550 that were recorded as revenue in the debt service fund. The District committed to reduce its debt service by the first $5.5 million dollars of lease proceeds. The final debt reduction at $33,301 was made in The leased property 52

70 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 consists of two separate parcels. The lessee has a separate option to purchase each piece of property at the end of the lease. The option on the 1.52 acre parcel is no less than $1.0 million and no greater than $1.6 million. The option on the 10.5 acre parcel is no less than $5.5 million and no greater than $8.95 million. Future payments from the Lowes lease are committed to the Full Faith and Credit debt on the New Hibbard Center and the Avery Property. In December 2006 the District entered into a long term commercial lease agreement with Broadway Rose Theater Company (BRTC) for the 20 year lease of the Charles F. Tigard Multipurpose Building to BRTC. Lease payments are $1 per year and all capital improvements to the premises. The lease may be renewed in 10 year increments. Commitments for construction projects consist of encumbrances for construction projects carried forward to the fiscal year. The encumbrances for the capital projects fund total $4,594,639 and are for projects that were included in construction in progress including roof replacement at two schools ($3.0 million), the VoiP system to replace the telephone system ($737, 737), work at three elementary schools related to outside doors and kitchen freezers ($462,517) and other smaller encumbrances. $26,873 was committed in the state, county, and private grants fund for the seismic improvements at Twality Middle School. Federal and State grants are subject to audit by the grantor agencies and any adjustments may become a liability of the appropriate fund. Management believes that adjustments, if any, will not materially affect the District's results of operations or financial position. The District receives a substantial portion of its operating funds from the State of Oregon. State funding is determined by state wide revenue projections that are paid to individual school districts based on pupil counts and other factors in the state school fund revenue formula. Since these projections and pupil counts fluctuate, they can cause the District to have either increases or decreases in revenue. Due to these future economic uncertainties at the state level, the effect on the District's operations can not be determined. G. PROPERTY TAX LIMITATIONS The State of Oregon imposes a constitutional limit on property taxes for schools and nonschool government operations. School operations include community colleges, local school districts and education service districts. The limitation provides that property taxes for school operations are limited to $5 for each $1,000 of property market value. This limitation does not apply to taxes levied for principal and interest on general obligation bonded debt. The District also may levy a local option tax within the constitutional limits of the state. The result of this requirement has been that school districts have become more dependent upon state funding and less dependent upon property tax revenues as their major source of operating revenue. The state further reduced property taxes by replacing the previous constitutional limits on tax bases with a rate and value limit in This reduction is accomplished by rolling property values back to their values less 10 percent and limiting future tax value growth of each property to no more than 3 percent per year, subject to certain exceptions. Taxes levied to support bonded debt are exempted from the reductions. The state constitution sets restrictive voter approval requirements for most tax and many fee increases and new bond issues, and requires the state to minimize the impact to school districts from the impact of the tax cuts. 53

71 Tigard-Tualatin School District 23J, Tigard, Oregon Notes to Basic Financial Statements June 30, 2012 H. RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District does not engage in risk financing activities where the risk is retained (self-insurance) except for the limit of $25,000 on property insurance. The District purchases insurance for workers' compensation, employee medical benefits, liability claims and all property losses in excess of deductible limits. There were no significant reductions in the District's insurance coverage during fiscal year Settled claims have not exceeded this commercial coverage for any of the past 3 years. I. SUBSEQUENTEVENTS The Qualified School Construction Bond projects in progress an June 30, 2012 were substantially completed prior to the start of the school year. These projects included Phase II of the $1.7 million Hazelbrook Middle School reroofing project, resurfacing the Tigard High School track ($.8 million), the $2.8 million reroofing project at Tualatin High School, replacement of cafeteria freezers and classroom vestibules at Mary Woodward, Byrom, and Bridgeport elementary schools ($.6 million), and boiler replacements ($.2 million). The District's new $1.3 million VoiP system began operating in the Fall of Secondary science classrooms upgrades related to new curriculum were ready for the start of school in the fall. Seismic upgrades to Twality Middle School were completed before students returned to school. Future accounting pronouncement Governmental Accounting Standards Board (GASB) Statement No. 61 The Financial Reporting Entity; Omnibus, will require the District to review the inclusion of M.I.T.C.H. Charter School as a component unit of the district. The District's Financial Oversight Committee will study the pronouncement to determine if the charter school should be reported as a component unit. GASB Statement No. 63 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position will be implemented with the fiscal year statement and lead to renaming of the "statement of net assets" to the "statement of financial position", and the caption for the equity section will change from "net assets" to "net position." This statement may require restatement of the June 30, 2012 statement of net assets for comparability for the reader of the report. 54

72 Required Supplementary Information Notes to Required Supplementary Information 1. No budgetary expenditures were in excess of appropriations during the year. 2. The budgetary basis of accounting for all funds is modified accrual, which is the same as that required by generally accepted accounting principles. Accordingly, no reconciliation of budgetary to generally accepted accounting principles activity is required.

73 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Required Supplementary Information Schedule of Required Contributions Years Ended June 30, Post Employment Health Care Benefits Fiscal Year Annual Required Ending Contribution 6/30/2009 $1,682,929 6/30/2010 $1,612,953 6/30/2011 $1,612,953 6/30/2012 $1,571,369 %of ARC Contributed 108% 123% 128% 128% Early Retirement Stipends Fiscal Year Ending 6/30/2005 6/30/2006 6/30/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 Annual Required Contribution $571,046 $558,703 $518,796 $334,630 $254,643 $235,929 $235,929 $227,535 %of ARC Contributed 110% 109% 114% 185% 238% 159% 128% 128% The schedule of funding progress will eventually present multiyear trend information. 55

74 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Required Supplementary Information Schedule of Funding Progress Other Postemployment Benefits Post Employement Health Care Benefits Actuarial Actuarial Actuarial Valuation Value of Accrued Unfunded AAL Date Assets Liabilitl (AAL) (UAAL) 6/30/2009 $ 2,327,810 $ 19,830,404 $ 17,502,594 6/30/2010 $ 2,617,570 $ 23,891,483 $ 21,273,913 6/30/2012 $ 2,889,847 $ 20,859,458 $ 17,969,611 Ratio Funded 11.74% 10.96% % UAALas a Percentage Covered of Covered Palroll Payroll $ 53,839, % $ 52,449, % $ 51,299, % Early Retirement Stipends Actuarial Actuarial Actuarial Valuation Value of Accrued Unfunded AAL Date Assets Liabilitl (AAL) (UAAL) 7/1/2005 $ 185,625 $ 2,533,583 $ 2,347,958 7/1/2006 $ 227,231 $ 2,588,242 $ 2,361,011 7/1/2007 $ 261,214 $ 2,252,827 $ 1,991,613 6/30/2008 $ 351,575 $ 2,236,712 $ 1,885,137 6/30/2009 $ 245,243 $ 1,990,561 $ 1,745,318 6/30/2010 $ 192,517 $ 1,791,721 $ 1,599,204 6/30/2012 $ 273,056 $ 1,662,880 $ 1,349,824 Ratio Funded 7.33% 8.78% 11.59% 15.72% 12.32% 10.74% 16.83% UAALas a Percentage Covered of Covered Palroll Payroll n/a n/a n/a n/a n/a n/a n/a n/a $ 53,839, % $ 52,449, % $ 51,299, % The schedule of funding progress will eventually present multiyear trend information. n/a not available 56

75 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Required Supplementary Information General Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Variance with Final Budget Adopted Budget Final Budget Actual Positive (Negative) Revenues Taxes- regular $ 42,200,000 $ 42,200,000 $ 41,875,497 $ (324,503) Taxes -local option 6,000,000 6,000,000 4,873,448 (1,126,552) Local sources 1,762,870 1,762,870 1,993, ,702 Intermediate sources 2,600,000 2,600,000 2,697,273 97,273 State sources 47,065,320 47,065,320 48,679,943 1,614,623 Federal sources 5,000 5,000 37,517 32,517 Investment earnings 125, , ,450 4,450 Total revenues 99,758,190 99,758, ,286, ,509 Expenditures Current Instruction 67,067,945 67,167,345 67,053, ,253 Support services 34,360,277 34,360,277 32,880,522 1,479,755 Community services 55, ,818 93,142 17,676 Operating contingency 1,963,300 1,808,300 1,808,300 Total expenditures 103,446, ,446, ,026,755 3,419,985 Excess (deficiency) of revenues over (under) expenditures (3,688,550) (3,688,550) 259,944 3,948,494 Other financing sources (uses) Transfers out (813,440) (813,440) (783,784) 29,656 Total other financing sources (uses) (813,440) (813,440) (783,784) 29,656 Net change in fund balances ( 4,501,990) (4,501,990) (523,840) 3,978,150 Fund balance, beginning of year 10,206,000 10,206,000 10,718,297 Fund balance, end of year $ 5,704,010 $ 5,704,010 $ 10,194,457 $ 4,490,447 57

76 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Required Supplementary Information State, County, Private Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adopted Budget Final Budget Actual Positive (Negative) Local sources $ 1,521,372 $ 1,510,234 $ 1,831,600 $ 321,365 Intermediate sources 2,076,085 2,076,085 2,312, ,477 State sources 1,009,150 1,009, ,191 (720,959) Federal sources 28,600 28,600 16,349 (12,251) Total revenues 4,635,207 4,624,069 4,448,702 (175,368) Expenditures Current Instruction 4,151,176 4,149,471 2,267,733 1,881,738 Support services 5,411,443 5,433,147 2,800,864 2,632,283 Community services 159, , ,027 44,942 Transits to other School Districts 314, , ,245 43,255 Total expenditures 10,037,088 10,057,088 5,454,870 4,602,218 Excess (deficiency) of revenues over (under) expenditures (5,401,881) (5,433,019) (1,006,168) 4,426,850 Other financing sources (uses) Transfers in 1,055,000 1,086, ,954 (634,183) Net change in fund balances (4,346,881) (4,346,881) (554,214) 3,792,667 Fund balance, beginning of year 4,346,881 4,346,881 5,848,094 1,501,213 Fund balance, end of year $ $ 5,293,880 $ 5,293,880 58

77 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Required Supplementary Information Federal Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual Year Ended June 30, 2012 Revenues Local sources Federal sources Adopted Budget $ 28,000 7,515,843 $ Final Budget 63,296 7,480,547 $ Actual 33,795 6,052,009 Variance with Final Budget Positive (Negative) $ (29,501) (1,428,538) Total revenues 7,543,843 7,543,843 6,085,804 {1,458,039) Expenditures Current Instruction Support services Community services 4,080,406 3,272, ,978 4,080,406 3,272, ,978 3,563,260 2,403, , , ,340 71,553 Total expenditures 7,543,843 7,543,843 6,085,804 1,458,039 Excess (deficiency) of revenues over (under) expenditures Fund balance, beginning of year Fund balance, end of year 59

78 Supplementary Information Including Combining Statements NonMajor Governmental Funds

79 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON General Obligation Bond Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget AdoEted Budget Final Budget Actual Positive (Negative) Taxes- regular $ 14,198,320 $ 14,198,320 $ 12,395,542 $ (1,802,778) Federal sources 500, , ,132 Investment earnings 26,000 26,000 33,476 7,476 Total revenues 14,724,320 14,724,320 12,675,150 (1,795,302) Expenditures Current Debt service 14,924,320 14,924,320 12,722,853 2,201,467 Net change in fund balance (200,000) {200,000) (47,703) (3,996,768) Fund balance, beginning of year 200, , , ,378 Fund balance, end of year $ 728,675 $ 728,675 60

80 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local $ 400,000 $ 400,000 $ 70,138 $ (329,862) Construction Excise Tax 300, , , ,975 Investment earnings 78,000 78, ,690 71,690 Total revenues 778, , , ,803 Expenditures Current Facilities acquisition and construction 32,223,296 32,223,296 8,633,768 23,589,528 Excess (deficiency) of revenues over (under) expenditures (31.445,296) (31.445,296) (7,670,965) 23,774,331 Other financing sources (uses) Transfers out ( ) ( ) ( ) 1 Bond Proceeds 20,000,000 20,000,000 20,656, ,997 Total other financing sources (uses) , ,520 20,140, ,998 Fund balance, beginning of year 11,961,776 11,961,776 11,364,666 (597,110) Fund balance, end of year $ 23,834,219 $ 23,834,219 61

81 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Supplementary Information Combining Balance Sheet, Nonmajor Governmental Funds Year Ended June 30, 2012 Special Revenue Funds Transportation Community Associated Equipment Food Service Building Use Student Body Assets Equity in pooled cash and investments $ 59,111 $ 1,413,508 $ 787,427 $ Cash and Investments 1,443,535 Accounts and other receivables 165,467 68,141 Due from other Funds Inventories 79,695 Total assets $ 1,658,670 $ 855,568 $ 1,443,535 Liabilities and fund balances Liabilities Accounts and interest payable $ $ 24,883 $ 13,709 $ Accrued payroll and related charges Due to other funds 377,716 Total liabilities 402,599 13,709 Fund balances Non Spendable 79,695 Restricted 59,111 1 '176,376 1,443,535 Committed 841,859 Unassigned Total fund balances 59,111 1,256, ,859 1,443,535 Total liabilities and fund balances $ 59,111 $ 1,658,670 $ 855,568 $ 1,443,535 62

82 Debt Service Funds Full Faith & Pension Bond Credit and Lease Series 2007 Debt SCRIP Obligation Fund Service Fund Total $ 482,506 $ 162,017 $ 7,010 $ 2,911,578 1,443, , , ,414 $ 704,225 7 $ 7,010 $ 4,890,135 $ 114,679 $ $ $ 153,271 26, , , , , , ,017 7,010 3,189, , , ,010 4,332,725 $ 704,225 7 $ 7,010 $ 4,890,135 63

83 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Supplementary Information - Combining Schedule of Revenues, Expenditures and Changes in Fund Balance, Nonmajor Governmental Funds Year Ended June 30, 2012 Special Revenue Funds Transportation Community Equipment Food Service Building Use Revenues Local sources $ $ 1,295,352 $ 469,954 State sources 114,879 45,582 Federal sources 2,428,882 Total revenues 11 3,769, ,954 Expenditures Current Instruction Support services 167, Community services 3,733, ,071 Debt service Principal Interest Fees Total expenditures 167,720 3,733, ,147 Excess (deficiency) of revenues over (under) expenditures (52,841) 35,939 (17, 194) Other financing sources (uses) Transfers Net change in fund balances (52,841) 35,939 (17, 194) Fund balances, beginning of year ,053 Fund balances, end of year $ 59,111 $ 841,859 64

84 Special Revenue Funds Debt Service Funds Full Faith & Credit Pension Bond Associated and Lease Series 2007 Debt Student Body SCRIP Obligation Fund Service Fund Total $ 3,396,417 $ 307,706 $ 989,264 $ 2,824,730 $ 9,283, ,461 2,428,882 3,396, , ,264 2,824,730 11,872,765 2,906,272 2,906, , ,260 4,442,209 1,122, ,000 1,797,527 1,077,543 2,149,055 3,226,598 2,906, ,260 2,200,069 2,824,055 12,540, ,145 82,446 (1,210,806) 675 (667,635) (353,120) (20,000) 1,223, ,025 62,446 12, ,673 1,306, , ,394 6,335 4,154,051 $ 1,443,535 $ 563,122 65

85 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Transportation Equipment Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) State sources $ 112,000 $ 112,000 $ 114,879 $ 2,879 Expenditures Current Support services 223, , ,720 56,232 Excess (deficiency) of revenues over (under) expenditures (111,952) (111,952) (52,841) 59,111 Fund balance, beginning of year 111, , ,952 Fund balance, end of year $ 59,111 $ 59,111 66

86 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Food Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 1,683,000 $ 1,683,000 $ 1,288,718 $ (394,282) State sources (1) 37,500 37,500 45,582 8,082 Federal sources 2,105,000 2,105,000 2,428, ,882 Investment earnings 6,634 6,634 Total revenues 3,825,500 3,769,816 (55,684) Expenditures Current Community services 3,925,500 3,925,500 3,733, ,623 Excess (deficiency) of revenues over (under) expenditures (100,000) (100,000) 35, ,939 Fund balance, beginning of year 300, ,000 1,220, ,132 Fund balance, end of year $ 200,000 $ 200,000 $ 1,256,071 $ 1,056,071 (1) School lunch match $ 38,860 State reduced breakfast reimbursement 6,722 Total state sources $ 45,582 67

87 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Community Building Use Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adopted Budget Final Budget Actual Positive (Negative) Local sources $ 580,000 $ 580,000 $ 469,743 $ (110,257) Investment earnings Total revenues 580, , ,954 (110,046) Expenditures Current Support services 369, , ,924 Community services 1,120,000 1,120, , ,929 1,489,000 1,489, ,147 1,001,853 Excess (deficiency) of revenues over (under) expenditures (909,000) (909,000) (17, 194) 891,806 Fund balance, beginning of year 934, ,053 (74,947) Fund balance, end of year $ 25,000 $ 25,000 $ 816,859 68

88 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Associated Student Body Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Ado~ted Budget Final Budget Actual Positive (Negative) Local sources $ 4,521,900 $ 4,521,900 $ 3,396,417 $ (1,125,483) Expenditures Current Instruction 4,183,900 4,183,900 2,906,272 1,277,628 Excess {deficiency) of revenues over (under) expenditures 338, , , ,145 Other financing sources (uses) Transfers out (800,000) (800,000) (353,120) 446,880 Net change in fund balance (462,000) (462,000) 137, ,025 Fund balance, beginning of year 1,270,500 1,270,500 1,306,510 36,010 Fund balance, end of year $ 808,500 69

89 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Scrip Service Center Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 469,000 $ 469,000 $ 306,112 $ (162,888) Investment earnings 35,000 1,595 (33,405) Total revenues 504, ,706 (196,294) Expenditures Current Community services 354, , , ,740 Excess (deficiency) of revenues over (under) expenditures 150, ,000 82,446 (67,554) Other financing sources (uses) Transfers out (100,000) (1 00,000) (20,000) 80,000 Net change in fund balance 50,000 50,000 62,446 12,446 Fund balance, beginning of year 450, , ,676 50,676 Fund balance, end of year $ 500,000 $ 563,122 70

90 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Full Faith and Credit and Lease Obligation Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 1,000,240 $ 1,000,240 $ 989,195 $ (11,045) Investment earnings 1,000 1, (931) Total revenues 1,001,240 1,001, ,264 (11,976) Expenditures Current Debt service 2,201,160 2,201,160 2,200,069 1,091 Excess (deficiency) of revenues over (under) expenditures (1 '199,920) (1,199,920) (1,210,806) (13,067) Other financing sources (uses) Transfers in 1,199,920 1,199,920 1,223,428 23,508 Net change in fund balance 12,623 10,441 Fund balance, beginning of year 36,000 $ 36,000 $ 149, ,394 Fund balance, end of year $ 36,000 $ 36,000 $ 162,017 $ 126,017 71

91 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Pension Bond Series 2007 Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 2,824,100 $ 2,824,100 $ 2,818,361 $ (5,739) Investment earnings 6,369 6,369 Total revenues 2,824,100 2,824,100 2,824, Expenditures Current Debt service 2,824,100 2,824,100 2,824, Total expenditures 2,824,100 2,824,100 2,824, Net change in fund balance Fund balance, beginning of year 6,335 6,335 Fund balance, end of year $ 7,010 $ 7,010 72

92 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Insurance Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 550,000 $ 550,000 $ 231,487 $ (318,513) Expenditures Current Instruction 700, ,000 82, ,167 Support services 1,221,800 1,221,800 12,930 1,208,870 Community services 50,000 50,000 6,890 43,110 Total expenditures 1,971,800 1,971, ,653 1,869,147 Excess (deficiency) of revenues over (under) expenditures (1,421,800) (1,421,800) 128,833 1,550,633 Fund balance, beginning of year 1,421,800 1,421,800 1,240,888 (180,912) Fund balance, end of year $ 1,369,721 $ 1,369,721 73

93 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Early Retirement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Adoeted Budget Final Budget Actual Positive (Negative) Local sources $ 2,400,000 $ 2,400,000 $ 2,306,257 $ (93,743) Investment Earnings 10,000 10,000 16,869 6,869 Total revenues 2,410,000 2,410,000 2,323,126 (86,874) Expenditures Current Support services 2,910,000 2,910,000 2,187, ,205 Excess (deficiency) of revenues over (under) expenditures (500,000) (500,000) 135, ,331 Fund balance, beginning of year 2,900,000 2,900,000 3,027, ,088 Fund balance, end of year $ 2,400,000 $ 2,400,000 $ 3,162,419 $ 762,419 74

94 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Scholarship Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended June 30, 2012 Revenues Variance with Final Budget Ado~ted Budget Final Budget Actual Positive (Negative) Investment earnings $ 10,000 $ 10,000 $ 1,118 $ (8,882) Excess (deficiency) of revenues over (under) expenditures 10,000 10,000 1,118 (8,882) Other financing sources (uses) Transfers out (25,000) (25,000) (2,000) 23,000 Net change in fund balance (15,000) (15,000) (882) 14,118 Fund balance, beginning of year 15,000 15, , ,490 Fund balance, end of year $ 209,608 $ 209,608 75

95 TIGARD-TUALATIN SCHOOL DISTRICT 23J, TIGARD, OREGON Supplementary Information - Other Financial Schedules Schedule of Property Tax Transactions Year Ended June 30, 2012 Current Levy and Uncollected Discounts Uncollected Tax Year July 1, 2011 Allowed Interest Adjustments Collections June 30, 2012 General Fund: Current $ 48,297,723 $ (1,236,512) $ 16,718 $ 67,378 $ (45,934,116) $ 1,211,190 Prior '165,790 8,098 55,320 (49,874) (472, 137) 707, ,012 5,147 46,693 (28,286) (107,536) 412, , ,520 (8,043) (217,964) 76, , ,834 (2,954) (57,933) 21, , ,709 (1,555) (4,207) 13, and prior 30,596 ( (4,580) (5,502) Total Prior 2,025,432 13, ,384 (95,292) (865,278) 1,254,522 Total General Fund $ 50,323,155 $ ( 1,223,235) $ 193,102 $ (27,915) $ (46,799,394) $ 2,465,712 Reconciliation to revenue: Cash collections by county treasurers above $ 46,799,394 Payments in lieu of taxes 7,252 Penalty and interest on property taxes 22,341 Accrual of current receivables: 6/30/2011 (306,024) 6/30/ ,982 Total revenues $ 46, Debt Service Fund: Current $ ,819 $ (327,788) $ 4,225 $ 17,694 $ (12,177,756) $ 321,194 Prior ,839 1,977 12,826 (12,116) (115,443) 172, ,981 1,511 12,942 (8,280) (31,630) 120, , ,694 (2,399) (65,078) 22, , ,287 (808) (15,851) 5, , (459) (1,250) 3, and prior 9570 ( (1,307) 7,560 Total Prior 538,653 3,497 (25,369) 332,010 Total Debt Service Fund $ 13,343,472 $ (324,292) $ (7,675) $ 653,204 Reconciliation to revenue: Cash collections by county treasurers above $ 12,408,761 Payments in lieu of taxes 1,858 Penalty and interest on property taxes 3,209 Accrual of current receivables: 6/30/2011 (79,018) 6/30/ Total revenues $ 12,

96 Tigard Tualatin School District 23J Schedule of Expenditures of Federal Awards Year ended June 30, 2012 Federal Grantor/Pass Through Grantor Program Title US. DEPARTMENT OF EDUCATION Federal Direct Safe Schools Healthy Students Safe Schools Healthy Students Passed through State Department of Education Title I Basic Programs Title I Basic Programs Title I Neglected and Delinquent Funds IDEA Part B, 611 IDEA Part B, 611 IDEA Part B, 619 IDEA Part B IDEA Part B IDEA Part B IDEA Part B L TCT ARRAIDEA ARRA IDEA L TCT Title I Perkins Basic Program Improvement Title IV Safe and Drug Free Schools Title lid Ed Tech Effective Behavioral Instruction Support System Title Ill Language Acquisition Title Ill Language Acquisition Title IIA Improving Teacher Quality Title IIA Improving Teacher Quality ARRA Title X ARRA Education Jobs Bill Passed through Oregon Department of Human Services Youth Transition Program Passed through University of Oregon Evaluation of State & Local Education CFDA Grant Period L 7/01/10-6/30/ L 7/01/11-6/ A 7/01/10-9/30/ A 7/01/11-9/30/ A 7/01/11-6/30/ A 7/01/10-9/30/ A 7/01/11-9/30/ /01/11-9/30/ A 10/1/ / A 8/01/11-6/30/ A 9/01/11-6/30/ A 7/01/11-6/30/ /17/09-9/30/ /17/09-9/30/ A 7/01/10-9/30/ A 7/15/11-9/30/ /01/11-9/30/ /01/11-6/30/ A 7/01/10-9/30/ A 7/01/11-9/30/ A 7/01/1 0-9/30/ A 7/01/ / /17/09-6/30/ /10/10-11/14/ A 7/01/ / E 7/01/11-6/30/12 Original Program or Grant Amount $1,474,947 $1,473,898 1,549,429 1,494,383 14,442 1,984,020 1,973,709 10,311 12,731 4,971 2,700 15,720 2,226,179 4,990 98,370 1, ,805 8, , , , ,980 2,965 2,471, , ,370 Revenues/ Expenditures 92,750 1,293, ,366 1,140,605 7, ,718 1,896,343 2,043 11,187 4,971 2,700 8, ,879 2,597 11,609 1, ,306 8,197 68, ,732 25, , ,996 67, ,370 Total U.S. Department of Education 16,331,989 6,031,803 U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES Passed through Oregon Employment Department Teen Parent Child Care Program /01/11-6/30/12 48,000 42,180 U.S. DEPARTMENT OF AGRICULTURE Passed through State Department of Education National School Lunch/Breakfast/Commodities Federal Forest Fees Total U.S. Department of Agriculture /10.553/ ,428,882 1,521 2,430,404 2,428,882 1,521 2,430,404 U.S. DEPARTMENT OF LABOR Passed through Oregon Bureau of Labor & Industry Construction & industrial Arts Exploration (ARRA) /11-6/30/12 4,999 4,999 U.S. DEPARTMENT OF Energy Passed through Oregon Department of Energy Energy Lighting Measures (ARRA) / /15/12 36,000 25,372 Total Expenditure of Federal Funds (1) Major Programs $18,851,392 $8,534,757 The accompanying schedule of expendrtures of federal awards includes the federal grant activrty and is presented on the modi fred accrual basis of accounting. The information in this schedule is presented rn accordance with the requirements of OMB Circular A-t 33, Audits of States, Local Governments, and Non-Profit Organizations. Therefore. some amounts presented in this schedule may differ from amounts presented in. or used in the preparation of, the basic financral statements. 77

97 Statistical Section This part of the District's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the District's financial performance and wellbeing have changed over time. 76 Revenue Capacity 80 These schedules contain information to help the reader assess the District's most significant local revenue source, the property tax. Debt Capacity 84 These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. Demographic and Economic Information 88 These schedules offer demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place. Operating Information 91 These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The District implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year.

98 Schedule 1 Tigard-Tualatin School District No. 23J Condensed Statement of Net Assets Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Governmental activities Net Assets Invested in capital assets, net of related debt $ 19,913,039 Restricted 2,913,628 Unrestricted 4,065,593 $ 25,225,225 $ 30,118,020 $ 33,205,745 3,534,889 4,753,084 5,931,763 4, 173,131 6,227,497 12,821,348 $ 41,952,130 $ 49,133,178 $ 54,284,256 $ 57,204,175 $ 50,751,857 6,285,685 6, 192,111 8,376,146 6,259,546 19,524,760 14,730,111 16,706,261 18,152,495 27,227,464 25,893,237 Total Net Assets $ 26,892,260 $ 32,933,245 $ 41,098,601 $ 51,958,856 $ 62,967,926 $ 72,031,550 $ 80,812,895 $ 90,691,186 $ 96,169,855, a:> Note: The District began to report accrual information when it implemented GASB Statement 34 in 2003.

99 Schedule 2 Tigard-Tualatin School District No. 23J Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) Fiscal year Expenses Governmental activities Instruction Support Services Enterprise and Community Services Interest on long-term liabilities $ 59,281,807 $ 56,393,492 29,778,408 29,900,349 3,875,102 4,315,256 6,324,043 6,361,274 $ 64,004,373 $ 67,596,687 32,904,103 35,300,857 4,371,889 4,555,289 4,948,645 5,166,036 $ 71,453,729 $ 73,857,705 $ 74,634,671 $ 76,562,686 $ 78,589,575 38,569,975 39,556,936 38,782,513 39,418,986 37,832,977 4,687,177 4,912,120 4,780,025 4,414,330 4,819,796 6,389,768 6,858,019 6,929,301 6,648,362 6,710,338 Total expenditures 99,259,360 96,970, ,229, ,618, ,100, , ,126, ,044, ,952,686 Program Revenues Governmental activities Charges for services..._, <0 Instruction Support Services Enterprise and Community Services Operating grants and contributions Capital grants and contributions 3,007,146 2,700,550 55,895 66,246 2,470,049 2,697,564 9,952,233 8,875,035 85,775 88,285 3,631,350 3,710,796 6,631 2,271 2,830,133 2,895,368 9,681,231 10,810,358 89,825 96,464 3,886,610 4,175,145 4,580,171 4,081,117 4,594,110 2,807 1, ,673,617 2,652,006 2,336,098 2,096,852 2,007,583 14,017,227 15,259,335 16,995,093 16,874,605 16,398, , , , , ,011 Total program revenues 15,571,098 14,427,680 16,239,170 17,515,257 20,881,408 22,189,299 24,015,833 23,164,580 23,361,185 Net (Expenditures)/Revenue (83.688,262) (82.542,691) (89, ) (95,103,612) (100,219,241) (102,995,481) (101,110,677) (103,879,784) (104,591,501) General Revenues Governmental activities Property taxes, levied for general purposes Property taxes, levied for debt service Federal aid not restricted to specific purposes State aid not restricted to specific purposes 33,378,699 35,191, '129,967 11,164,453 9,332 9,028 38,441,933 37,365,675 37,715,603 40,408,977 12,257,157 11,813, ,457,023 47,455,369 43,410,833 44,581,278 46,146,630 48,059,574 47,258,052 11,888,420 14,004,924 13,718,566 11,604,661 12,528,378 7,823 2,433,605 3,327,216 3,797,150 37,517 48,545,807 45,763,925 44,394,638 39,695,115 45,290,466 Intermediate aid not restricted to specific purposes Earnings on Investments Recovery of prior year expenditures Construction Excise Tax Gain on sale of capital assets Other local revenue 834, ,709 1,587,940 1,044, , ,250 2,022,115 2,757,552 1,735,534 1,876,693 2,030,953 1,650,790 3,416,920 3,038, , ,690 2,697,273 1,806, , , , , , , , ,501 93, , , , ,975 8,239,782 1,588,690 1,249,489 1,345,823 1,177,105 1,059,990 Loss on disposition capital assets Total general revenues 86,208,496 88,583,676 (64,069) 98,155, ,963, ,228, ,059, ,892, ,758, ,070,170 Change in Net Assets-Governmental activities $ 2,520,234 $ 6,040,985 $ 8,165,356 $ 10,860,255 $ 11,009,070 $ 9,063,624 $ 8,781,345 $ 9,878,291 $ 5,478,669 Note: The District began to report accrual information when it implemented GASB Statement 34 in 2003.

100 Schedule 3 Tigard-Tualatin School District No. 23J Fund Balances, Governmental Funds last Ten Fiscal Years (modified accrual basis of accounting) General fund Unreserved $ 2,776,049 $ 5,630,736 $ 5,521,058 $ 6,817,479 $ 7,887,048 $ 10,782,108 $ 12,010,628 $ 13,091,027 $ $ Assigned 6,760,000 Unassigned 10,718,297 3,434,457 Total general fund 2,776,049 5,630,736 5,521,058 6, ,887,048 10,782,108 12,010,628 13,091,027 10,718,297 10,194,457 Other governmental funds Reserved, reported in: Special Revenue funds 3,670,397 3,697,411 5,672,554 6,336,850 8,443,469 9,285,746 9,094,831 10,153,275 "" 0 Capital Projects funds 83,236,491 Restricted, reported in: 45,157,558 16,947,201 5,900,342 4,018,427 3,157,752 1,746,976 2,480,968 Debt Service funds ( 1) 560, , ,750 1,184, , , , ,184 Nonspendable 299, ,414 Restricted 5,825,299 19,139,501 Committed 14,075,776 13,576,514 Assigned 1,942,956 1 '172,069 $ 93,019,004 $ 60,820,846 $ 34,022,621 $ 27,056,549 $ 29,049,938 $ 34,225,502 $ 35,375,536 $ 39,440,481 $ 32,861,486 $ 44,383,956 ( 1) Starting in comprised of General Obligation Debt Service Funds and Other Debt Service Funds

101 Schedule 4 Tigard-Tualatin School District No. 23J Change in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Property and other taxes (1) Local sources $ 35,498,595 $ 14,358,399 42,482,094 $ 21,137,112 44,508,666 $ 7,315,045 46,356,176 $ 8,071,029 49,972,760 $ 9,162,199 52,222,428 $ 9,667,286 55,299,253 $ 13,383,740 58,586,202 $ 12,940,207 59,865,196 $ 12,705,739 59,664,235 13,076,347 59,786,430 13,298,682 Intermediate sources State sources 1,384,668 43,059,311 2,158,696 35,113,712 2,354,441 41,588,634 3,377,236 40,578,598 2,418,451 46,097,710 4,097,724 51,133,620 3,805,758 55,158,312 3,357,609 52,664,006 2,410,883 48,169,891 2,457,514 43,579,834 5,009,835 49,128,595 Federal sources Investment earnings 3,193, ,753 4,063,827 2,773,093 4,618,462 1,587,940 4,732,688 1,044,838 5,408,210 1,735,534 4,973,561 1,876,693 5,369,819 1,806,302 9,101, ,786 12,896, ,094, ,409 8,780, ,493 Total revenues 98,073, ,728, ,973, ,160, ,794, ,971, ,823, ,403, ,308, ,112, ,331,923 Expenditures Current Instruction 47,484,419 48,784,255 52,842,314 54,727,592 60,771,485 63,928,324 69,486,406 71,637,866 71,941,653 72,980,847 75,792,356 Support services Community services Transit payments to other school districts 29,436,106 14,480,496 27,726,396 17,518,827 28,342,450 3,739,138 29,892,578 4,203,802 32,964,209 4,233,792 35,300,975 4,449,297 39,156,616 4,646,996 40,776,696 4,841,932 39,006,664 4,770, ,525 39,350,822 4,332, ,600 38,252, , ,245 o:> Debt service Principal 4,142,563 5,331,400 5,968,951 6,751,889 7,901,719 8,444,923 9,669,262 10,557,575 11,709,288 9,398,359 10,206,975 Interest Bond Issue Costs 3,164,404 6,931,553 6,526,550 6,291,100 5,524,103 5,681,740 7,088,791 7,464,550 6,306,397 60,585 6,640,948 7,540,003 Capital outlay 1,541,877 5,610,298 42,606,629 28,982,151 14,266,764 5,010,702 2,688,739 1,978,630 95, ,589 8,633,768 Total expenditures 100,249, ,902, ,026, ,849, ,662, ,815, ,736, ,257, ,180, ,347, ,466,451 Excess (deficiency) of revenues over (under) expenditures (2, 176,075) (4, 174, 195) (38,052,844) (26,688,547) (10,867,208) 1,155,351 2,086, ,064 2,128,061 (1,235,282) (9, 134,528) Other financing sources (uses) Payment to escrow agent- refunding (16,342, 171) (61,562,914) (7, 727,665) Refunding bonds issued 16,482,089 55,895, ,452 Premium on refunded bonds Proceeds from capital lease/bonds PERS UAL lump sum payment 87,167, ,000 3,000,000 5,989,725 2,364,904 41,385,000 (40,984, 170) 160,699 Debt issuance Proceeds from sale of fixed assets 1, ,200 8,418,724 20,656,997 Lease purchase receipts Transfers to other School Districts Transfers 112,332 (82,000) (231,530) (206,700) (224,550) 5,000 4,000 Total other financing sources (uses) 87,281,665 1,039,918 3,000,000 2,604,715 (231,530) 194,130 (224,550),8c:e:56"",4""8"'-6 8,853,924 20,656,997 Net change in fund balances $ 85,105,590 $ (3,134,277) $ (35,052,844) $ (26,688,547) $ (8,262,493) $ 923,821 $ 2,280,504 $ (78,486) $ 2,984,547 $ 7,618,642 ;!:.$ 1~1,:::.5:::;22:.,;.4""6"'-9 Debt service as a percentage of noncapital expenditures 8.0% 130% 14.7% 14.7% 13 7% 13.6% 12.6% 13.1% 13.5% 12.0% 12.2% ( 1) All tax revenue based on property taxes only

102 Schedule 5 Tigard-Tualatin School District No. 23J Assessed Values of Taxable Property Last Ten Fiscal Years Assessed Value Percentage Assessed Fiscal Year Personal Manufactured Total Assessed Total Direct Real Market Value Value to Ending June 30 Real Property Property Homes Public Utility Value (2) Rate* (3) RMV CXJ N ,335,698, ,416,498 15,899, ,723,361, ,173,433 14,365, ,037,335, ,163,432 14,794, ,389,379, ,824,533 12,654, , 763,563, ,269,701 13,404, ,135,406, ,804,018 13,939, ,521,048, ,185,612 13,744, ,778,117, ,094,511 13,379, ,002,867, ,005,721 10,772, ,973,684, ,698,285 8,449, ,995,068 5,895,009, ,740,529, ,832,449 6,264,733, ,310,941, ,683,952 6,569,976, ,806,388, ,544,830 6,925,403, ,733,100, ,128,260 7,346,365, ,843,075, ,993,780 7,792,144, ,288,203, ,425,700 8,138,404, ,678,277, ,972,950 8,419,564, ,854,966, ,259,300 8,621,904, ,003,059, ,196,860 8,572,028, '125, 702, % 75.38% 74.60% 71.15% 62.03% 58.64% 59.50% 65.50% 71.83% 77.05% (1) In May of 1997, Oregon voters approved Measure 50 which reduced property tax levies by local government for operations by about 17% statewide. It also reduced assessed value on individual properties to evels less 10%. Measure 50 also restricts future growth of assessed value of individual properties to 3% per year plus the value of any improvements. Bonded debt is exempt from Measure 50. (2) Assessed Valuation is the total dollar value placed on real and personal property as a basis for imposing taxes. (3) Real Market Value represents the amount of cash that could reasonably be expected by an informed seller from an informed buyer. * Per $1,000 of assessed value Sources: Municipal Debt Advisory Commission, State of Oregon, Clackamas and Washington County Departments of Assessment and Taxation.

103 Schedule 6 Tigard-Tualatin School District No. 23J Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) co w Fiscal Year District Direct Rates General Obligation General Tax Debt Total Permanent Local Service Direct Tax Rate Oetion (1) Bonds (2) Rate Tigard Tualatin USA Tualatin Fiscal City of School City of City of Metzger Valley Year Durham District Tualatin Tigard Bonds RFPD Overla Tax Rates Sherwood Portland Tri-Met Washington School Community Service Count}' District College District Lake Metropolitan Oswego Service School District District Clackamas City of Community Clackamas Lake City of College Count}' Oswego Portland (1} Local option levy was renewed by the voters in November 2008 for the fiscal year. May be levied through the fiscal year. (2) General Obligation Debt Services Bonds have prior voter approval. All current General Obligation Debt has voter approval Any new General Obligation Debt requires new voter approval Overlapping Debt is calculated by the State Treasurer by shared market value Source: Washington & Clackamas County Department of Ass'3ssment and Taxation.

104 Schedule 7 Tigard-Tualatin School District No. 23J Principal Property Taxpayers Current Year and Nine Years Ago Percentage of Percentage of Taxable Assessed Total Taxable Tax able Assessed Total Tax able Taxpayers Value Rank Assessed Value Value Rank Assessed Value..,. Pacific Realty Associates LP $ 212,182, % $ 154,547, % BV Centercal LLC 119,437, % 0.00% Lincoln Center LLC 82,714, % 68,331, % Novellus Systems, Inc. 79,767, % 125,187, % Frontier (Verizon) Communications 63,837, % 70,234, % Portland General Electric Co. 63,128, % 44,676, % ()) Northwest Natural Gas Co. 44,099, % 35,120, % Comcast Corporation 42,419, % 0.00% Tuala Northeast LLC 39,606, % 0.00% Walton Cwor Pakr BC 8 LLC 37,116, % 0.00% Simpson Finance LP 20,059, % Sprint Nextel Corporation 30,812, % Calwest Industrial Holdings LLC 30,253, % Subtotal of ten largest Taxpayers 784,308, % 579,224, % All Other Taxpayers 7,787,720, % 5,315,785, % Total $ 8,572,028, % $ 5,895,009, % Source: Washington~ Clackamas County Department of Assessment and Taxation.

105 Schedule 8 Tigard-Tualatin School District No. 23J Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Net Taxes Fiscal Year of the Lev:t Fiscal Levied for the Percentage Year Fiscal Year Amount of Lev:t Collections in Total Collections to Date Subsequent Percentage Years Amount of Lev:t co U ,738,316 41,322, % ,907,930 43,384, % ,693,873 45,269, % ,303,886 48,791, % ,712,070 51,137, % ,644,115 53,767, % ,091,527 56,639, % ,467,672 58,118, % ,787,318 57,529, % ,102,542 58,111, % 1,143,673 42,465, % 578,718 43,963, % 1,043,584 46,313, % 990,251 49,781, % 1,170,144 52,307, % 1,378,737 55,146, % 1,830,326 58,469, % 1,295,785 59,414, % 587,580 58,117, % Source: Washington and Clackamas County Departments of Assessment and Taxation and Tigard-Tualatin School District financial records.

106 Schedule 9 Tigard-Tualatin School District No. 23J Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Obligation Less Amount Available Bonds in Debt ServiceFund Net Bonded Debt Percentage of Personal Fiscal Year (thousands of dollars) (thousands of dollars) (thousands of dollars) Income (2) Percentage of Actual Value of Taxable Property ( 1) Per Capita (2) , , % 0.23% 1, , , % 0.20% 1, , , % 0.19% 1,659 a> 0) ,710 1, , , , % 3.73% 0.16% 1, % 1, , , % 0.13% 1, , , % 0.11% 1, , , , , % 2.56% 0.10% 1 ' % 1, , , % 0.10% 1,168 Notes: and percentages calculated using 2009 personal income data, which is the most recent available ( 1) See Schedule 5 for property value data (2) Population and personal income data can be found in Schedule 13

107 Schedule 10 Tigard-Tualatin School District No. 23J Outstanding Debt by Type Last Ten Fiscal Years (dollars in thousands, except per capita and per student) General PERS Full Fatih & Capital Fiscal Obligation UAL Credit Lease Year Bonds Bonds Obligations Agreements Issuance Total Percentage Premiums Primary of Personal and Discounts Government Income Per caeita Per Student ,625 6,742 1,797 2, , % 2,120 12, ,250 9,434 1,512 1, , % 1,921 12, ,105 9,113 1,223 1, , % 1,835 11, ,710 8,782 3,168 2, , % 1,796 10, ,015 16,141 2,758 2, , % 1,748 10, ,380 40,490 14,863 2,398 1, , % 2,138 13,204 co " ,935 39,560 13,807 2,021 1, , % 1,971 12, ,645 39,135 11,125 1, , % 1,813 11, ,300 38,590 10,732 1, , % 1,688 10, ,895 37,915 9, , % 1,720 11,251 Sources: Center of Population Research & Census-Portland State University; Washington County; and Oregon Department of Education

108 Schedule 11 Tigard-Tualatin School District No. 23J Direct and Overlapping Governmental Activities Debt As of June 30, 2012 Outstanding Gross Property-tax Backed Governmental Unit Debt Outstanding (1) City of Durham 1 '185,000 Estimated Share of Estimated Percentage Direct and Overlapping Applicable Debt % 1,185,000 City of Beaverton 9,495, % City of Portland 685,277, % 68,528 City of Tigard 31,444, % 25,982,246 City of Tualatin 9,010, % 7,612,549 Clackamas Community College 79,305, % 1,435,421 Clackamas County 98,615, % 1,291,857 co co Metropolitan Service District 322,870, % 20,728,254 Northwest Regional ESD 5,840, % 860,232 Port of Portland 69,304, % 4,095,900 Portland Community College 363,015, % 27,770,648 Tri-Metropolitan Service District 240, % 15,552 Tualatin Hills Park & Rec Dist 105,850, % 10,585 Tualatin RFPD 62,470, % 13,630,954 Washington County 112,535, % 20,447,610 Subtotal, overlapping debt 125,135,334 District direct debt 133,025,589 Total direct and overlapping debt $ 258,160,923 (1) Gross property-tax backed debt includes all General Obligation (GO) bonds and limited-tax GO bonds in addition to selfsupporting unlimited tax (GO) and self-supporting limited-tax GO debt. Source: Municipal Debt Advisory Commission, State of Oregon.

109 Schedule 12 Tigard-Tualatin School District No. 23J Legal Debt Margin Information Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year Real Market value Debt limit (7.95% of real market value) Debt applicable to limit Legal Debt Margin 11 '125, 702, ,493,315 86,895, ,598, Debt Limit $ 615,372,079 $ 660,719,849 $ 700,107,847 $ 773,781,527 $ 941,524,538 $ 958,032,166 $ 1,087,423,050 $ 1,021,969,820 $ 954,243,246 $ 884,493,315 Total net debt applicable to limit 133,625,000 1_28,250, ,105, ,710, ,015,000 98,380,000 89,935,000 82,645,000 75,300,000 86,895,000 Legal debt margin $ 481,747,079 $ 532,469,849 $ 642,152,847 $ 660,071,527 $ 835,509,538 $ 859,652,166 $ 997,488,050 $ 939,324,820 $ 878,943,246 $ 797,598,315 ~Total net debt applicable to the limit as a percentage of debt limit 21.71% 19.41% 17.44% 14.70% 11.26% 10.27% 8.27% 8.09% 7.89% 9.82%

110 Schedule 13 Tigard-Tualatin School District No. 23J Demographics and Economic Statistics Last Ten Calendar Years Personal Per Income Capita Fiscal Population (thousands Personal Unemployment Year (Estimated) (1) of dollars) Income (2) Rate (3) ,000 2,075,564 30, % ,400 2,344,836 31, % ,090 2,589,579 35, % < ,420 2,631,470 36, % ,635 2,821,289 38, % ,770 2,946,521 39, % ,295 2,912,810 39, % ,710 2,976,671 39, % ,899 a a 9.5% ,970 a a 8.2% (1) Estimated population includes population estimates for the cities of Tigard, Tualatin, King City and Durham (2) U.S. Dept of Commerce, Bureau of Economic Analysis (3) Employment rate is based on US Dept of Labor figures for the Portland Metropolitan area at June 30, 2011 (a) Data for and was not available at time of printing Sources: U.S. Department of Labor; Oregon Department of Human Resources, Employment Division for Washington County; Center of Population Research & Census-Portland State University; Oregon Department of Education; and U S Department of Commerce, Bureau of Economic Analysis

111 Schedule 14 Tigard-Tualatin School District No. 23J Principal Employers Last Seven Fiscal Years ~ ~ ~ ~ ~ ~ ~ Percentage Percentage Percentage Percentage Percentage Percentage Percentage of Total of Total of Total of Total of Total of Total of Total Em lo er Employees Employment Employer>..s Employment Employees Employment Employees Employment Employees Employment Employees Employment Employees Employment 1 igard Tualatin School District % 1,226 Legacy Meridian Park Hospital % 823 Macy's!Mmer & Frank % 350 Novell us % 400 Nordstrom % 400 Unrted Parcel Services % 512 Huntair % 350 Oregon PERS % 396 Provldence Health System % 377 Cost co Wholesale % 400 DPI Specialty Foods Northwest % 300 Columbia Conugated % Pacific Foods % 200 Milgard Windows % Crtyofligard 1 Q ~ lola! ~!2 :22% ~ 21.38% 1, % 14.35% % 6.10% % 6.98% % 698% % 893% % 6.10% % 6.91% % 6.57% % 6.98% % 5.23% % 0.00% 000% 3 49% 0.00% 0 00% 0.00% llqqj,_ = 122.:.2.2% ~ 1.22.:22% % 1, % 1, % 1, % % % % ,97% % % % % % % % % % % % % % % % % 0 000% % % 0.00% % % % % % % % % % % % % % % % % 0.00% 000% 0.00% 0.00% 000% 0.00% 0.00% 000% 0.00% 000% 0.00% 0.00% ~ Q,_QQ%, = = ~ ~% ~ J.llQ.lWi. ~ ~% ~ ~% ( 1) This is a new table, in accordance with the new reporting model, and as such, prior years' data is not available. Over time, this table will compare the current year and mne years ago Source: Crty of 1 igard Adopted Budget and Crty of Tualatin Business Office

112 Schedule 15 Tigard-Tualatin School District No. 23J Full-Time-Equivalent District Employees by Type Last Six Fiscal Years Instruction Regular Instruction Special Programs Change from PY (1) (19) (1) (1) (1) (1) (1) (1) Total direct classroom services (15) Support Services Students Instructional Staff General Administration School Administration Business Operations and maintenance of building Student Transportation Central Activities 72 (5) 40 2 (2) 65 (1) 15 (9) <0 "' Total classroom support services Enterprise and Community Services Food Services Scrip Services Building Use services Other enterprise and community services (18) Total enterprise and community services Total Full-Time-Equivalent District Employees (31) 1,038 1,069 1,091 1,138 1,183 1,114 1,130 ( 1) This is a new table, in accordance with the new reporting model, and as such, prior years' data is not available. Over time, ten fiscal years will be presented. Source: Nonfinancial information from district records

113 Schedule 16 Tigard-Tualatin School District No. 23J Operating Statistics Last Ten Fiscal Years Operating Cost per Fiscal Year Enrollment (1) Ex~enditures Pupil Percentage Change Percentage of Students Pupil- Receiving Free or Cost per Percentage Teaching Teacher Reduced-Price Expenses Pu~il Change Staff Ratio Meals ,939 93,893,338 7,864 0% $103,846,926 $ 8,698 0% :1 21.6% ,836 84,923,902 7,175-9% 99,259,360 8,386-4% :1 24.1% ,981 88,823,973 7,414 3% 96,970,371 8,094-3% :1 25.5% ,134 97,969,486 8,074 9% 106,229,010 8,755 8% :1 23.8% <0 w , ,678,596 8,265 2% 112,618,869 8,978 3% :1 25.7% , ,290,018 8,892 8% 121 '1 00,649 9,506 6% :1 25.5% , ,256,494 9,157 3% 125,184,780 9,776 3% :1 32.3% , ,719,179 9,122 0% 125,126,510 9,863 1% :1 34.0% , ,664,185 9,195 1% 127,044,364 10,013 2% :1 36.0% , ,812,460 9,362 2% 127,952,686 10,082 1% :1 37.9% ( 1) Enrollment as of October 1st of the fiscal year. Operating expenditures are total expenditures less debt service and capital outlays. Source: Nonfinancial information from district records

114 Schedule 17 Tigard-Tualatin School District No. 23J Teacher Base Salaries Last Ten Fiscal Years Statewide Fiscal Minimum Maximum Average Year Sal a~ Sal a~ Sal a~ ,877 57,314 46, ,097 60,621 46, ,398 61,227 47, ,854 62,145 48, ,317 63,077 51,471 (!) "" ,569 65,600 52, ,872 68,224 54, ,227 70,953 55, ,227 70,953 56, ,438 71,379 57,080 Note: Min/Max salary schedule is the same dollar amount as due to contract negotiations but includes two (2) fewer work days. Source: State Dept. of Education

115 Schedule 18 Tigard-Tualatin School District No. 23J School Building Information Last Ten Fiscal Years Building only Ins. Value (J1 "' Elementary Schools Alberta Rider (2006) Value Square Feet Capacity Enrollment Bridgeport ( 1 982) Value Square Feet Capacity Enrollment Edward Byrom (1979) Value Square Feet Capacity Enrollment Charles F. Tigard (1945) Value Square Feet Capacity Enrollment New Charles F. Tigard (2004) Value Square Feet Capacity Enrollment Deer Creek (1997) Value Square Feet Capacity Enrollment Durham (1989) Value Square Feet Capacity Enrollment Mary Woodward (1979) Value Square Feet Capacity Enrollment 3,818,012 66, ,819,615 62, ,558,216 55, ,274,624 61, ,771,378 63, ,256,800 68, ,360,496 66, ,387,242 60, ,558,216 55, ,274,624 61, ,771,378 63, ,958,608 68, ,377,197 60, ,406,138 60, ,794,116 76, ,275,215 61, ,074,761 65, ,963,080 68, ,019,470 72, ,447,290 60, ,462,372 60, ,654,498 76, ,275,409 61, ,271,036 65, ,023,718 68, ,038,905 72, ,447,290 60, ,462,372 60, ,654,498 76, ,275,409 61, ,271,036 65, ,023,718 68, ,038,905 72, ,445,741 60, ,460,823 60, ,652,995 76, ,274,140 61, ,271,036 65, ,022,170 68, ,038,905 67,000 " ,445,741 66,193 " ,460,823 60,725 ' ,662,995 76,444 ' ,274,140 61,387 ' ,271,036 65,322 ' ,022,170 68,330 ' ,038,905 67,000 ' ,445,741 66,193 ' ,460,823 60,725 ' ,662,995 76,444 ' ,274,140 61,387 ' ,271,036 65,322 ' ,022,170 68,330 ' ,038,905 67,000 ' ,445,741 66,193 " ,460,823 60,725 ' ,662,995 76,444 ' ,274,140 61,387 " ,271,036 65,322 " ,022,170 68,330 " (1) 13,038,905 67,000 ' ,445,741 66,193 " ,460,823 60,725 " (2) 10,662,995 76,444 ' ,274,140 61,387 ' ,271,036 65,322 ' ,022,170 68,330 ' ,519,765 8,664,503 8,929,606 13,615,378 10,386,477 12,817,601 7,515,729

116 Building only Ins. Value Elementary Schools New Metzger (2004) Value 10,841,586 11,005,106 11,005,106 11,005,106 11,005,106 11,005,106 11,005,106 11,005,106 11,038,978 Square Feet 69,981 69,981 69,981 69,981 69,981 69,981 69,981 69,981 Capacity '546 '546 '546 '546 Enrollment Old Metzger (1966) Value 2,230, ,436 Square Feet 56,234 56,234 Capacity Enrollment James Templeton (1965) Value 2,277,660 2,277,660 5,181,739 5,227,913 5,227,913 5,227,913 5,227,913 5,227,913 5,227,913 5,227,913 7,243,901 Square Feet 50,478 50,478 50,478 50,478 50,478 50,478 50,478 50,478 50,478 50,478 Capacity '598 '598 '598 '598 Enrollment New Tualatin (2004) Value 10,828,425 11,074,879 11,074,879 11,075,135 11,075,135 11,075,135 11,075,135 11,075,135 10,841,478 Square Feet 76,024 76,024 76,024 76,024 76,024 76,024 76,024 76,024 Capacity '598 '598 '598 '598 <0 Enrollment Ol Old Tualatin (1930) Value 2, ,333,606 2,333, ,606 2,333,606 2,333,606 2,333,606 2,333,606 Sold Sold Square Feet 63,040 63,040 61,600 61,600 61,600 61,600 67,000 67,000 67,000 67,000 Capacity Enrollment Middle Schools Thomas Fowler (1971) Value 8,381,225 9,619,498 11,117,794 11,465,927 11,465,927 11,466,927 11,466,927 11,466,927 11,466,927 11,466,927 7,054,925 Square Feet 124, , , , , , , , , ,488 Capacity '983 '983 '983 '983 Enrollment Hazelbrook (1992) Value 3,610,937 7,033,666 7,771,863 7,934,067 7,934,067 7,934,067 7,934,067 7,934,067 7,934,067 7,934,067 20,880,061 Square Feet 105, , , , , , , , , ,523 Capacity ,000 1,000 1,000 1,000 '1040 '1040 '1040 '1040 Enrollment ,018 1,011 1,003 1, , Twality (1963) Value 5,260,211 5,260,211 8,350,359 8,451,254 8,451,254 8,449,705 8,449,705 8,449,705 8,449,705 8,449,705 18,008,405 Square Feet 117, , , , , , , , , ,314 Capacity 1,050 1,050 1,050 1,050 1,050 1,050 '942 '942 '942 '942 Enrollment 1,048 1, ,028 1,020 1,012 1,012

117 Building onl~ Ins. Value <D.._, Hi~h Schools Tigard (1953) Value 9,763,980 9,763,980 9,763,980 26,925,886 26,946,598 26,983,611 27,001,397 27,001,397 27,001,397 27,001,397 52,191,257 Square Feet 269, , , , , , , , , ,639 Capacity 1,850 1,850 1,850 1,850 1,850 1,850 '1776 '1776 '1776 '1776 Enrollment 1,963 1,926 1,960 2,005 2,042 2,002 2,001 1,977 2,046 2,046 Tualatin (1992) Value 16,543,181 16,543,181 16,543,181 19,768,697 19,837,264 19,836,558 19,836,558 19,836, ,558 19,836,558 47,078,957 Square Feet 321, , , , , , , , , ,064 Capacity , ,900 1,900 '1888 '1888 '1888 '1888 Enrollment 1, , ,863 1,863 1,825 1,854 1,854 Other New Administration (2000) Value 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 4,211,600 11,030,702 Square Feet 74,936 74,936 74,936 74,936 74,936 74,936 74, ,936 Durham Center (1919) Value 42,753 42,753 42, ,753 42,753 42, ,753 2, Square Feet , ,464 13, Capacity '105 '105 '105 '105 Tigard Swim Center (1974) Value ,613,510 1, ,621,889 1,621,889 1,621,889 1,621,889 1,621,889 1,621,889 2,612,301 Square Feet , , ,484 14, Tualatin Swim Center (1998) Value 2,635,231 2,635,231 2,635, ,635,231 2,635,231 2,635, ,231 2,635, ,231 3,630,529 Square Feet 17,338 17,338 17,338 17,338 17,338 17,338 17,338 17,338 17,338 17,338 Old Administration (1922) Value 652, ,069 Square Feet 19,180 19,180 Bus Garage (1967) (3) Value 186, , , , ,310 Square Feet 5,521 5, ,521 5,521 5,521 5,521 5,521 5,521 5,521 School Based Health Center(2007) Value 304, , , , , ,500 Square Feet 2,520 3,584 3,584 3,584 3,584 Tigard-Tualatin On Line Academy Value Square Feet 5, to Capacity is without portable classrooms. Prior years' capacity may or may not include portable classrooms. Capacity Source: Tigard-Tualatin School District Capacity Report/Dull Olson Weekes Architects, Inc. (December 2009) Source: Trended Property Schedule based on Pace appraisals

118 Schedules Required By Department of Education

119 OREGON DEPARTMENT OF EDUCATION 225 Capitol Street NE Salem Oregon SUPPLEMENTAL INFORMATION, Office of Finance and Administration School Finance Unit School District Business Managers and Auditors: This page is a required part of your annual audited financial statements. Please make sure it is included. Part A is needed for computing Oregon's full allocation for ESEA, Title I & other Federal Funds for Education. A. Energy Bill for Heating -All Funds: Please enter your expenditures for electricity & heating fuel for these Functions & Objects. I Function 2540 I Function 2550 Objects 325 & 326 $ 1,346,292 $ B. Replacement of Equipment- General Fund: Include all General Fund expenditures in object 542, except for the following exclusions: Exclude these functions: Exclude these functions: 1113, 1122 & 1132 Co-curricular Activities 4150 Construction 1140 Pre-Kindergarten 2550 Pupil Transportation 1300 Continuing Education 3100 Food Service 1400 Summer School 3300 Community Services j$ 21,281 Form C (Rev 3/12) 98

120 Revenue from Local Sources 1110 Ad Valorem Taxes Levied by District 1120 Local Option Ad Valorem Taxes Levied by District 1130 Construction Excise Tax 1190 Penalties and Interest on Taxes Rev~nue from Local Governmental Units Other Than 1200 D1stncts 1311 Regular Day School Tuition- From Individuals 1312 Regular Day School Tuition- Other Dist Within State 1313 Regular Day School Tuition- Other Districts Outside 1320 AduiUContinuing Education Tuition 1330 Summer School Tuition 1411 Transportation Fees- From Individuals 1412 Transportation Fees- Other Dist Within State 1413 Transportation Fees- Other Districts Outside 1420 Summer School Transportation Fees 1500 Earnings on Investments 1600 Food Service 1700 Extracunricular Activiies 1800 Community Services Activities Rentals 1920 Contributions and Donations From Private Sources 1930 Rental or Lease Payments From Private Contractors 1940 Services Provided Other Local Education Agencies 1950 Textbook Sales and Rentals 1960 Recovery of Prior Years' Expenditure 1970 Services Provided Other Funds 1980 Fees Charged to Grants 1990 Miscellaneous Revenue from Intermediate Sources 2101 County School Funds 2102 General ESD Revenue 2103 Excess ESD Local Revenue 2105 Natural Gas, Oil, and Mineral Receipts 2110 Intermediate "I" Tax 2199 Other lntemediate Sources 2200 Restricted Revenue 2800 Revenue in Lieu of Taxes 2900 Revenue for/on Behalf of the District DISTRICT AUDIT REVENUE SUMMARY Tigard-Tualatin Schoof District 23J Fund400 $41,853,161 $4,873,448 $22,336 $745,672 $182,556 $130,069 $421,011 $126,208 $38 $22,612 $225,356 $269,499 Fund 200 Fund300 $12,392,333 $3,210 $8,439 $39,914 $1,288,444 $56,989 $4,471 $306,112 $412,754 $170,174 $1,629,094 $27,000 $2,818,361 $3,632,991 Total Revenue from Local Sources $48,871,966 $7,334,823 $15,455,461 Fund100 Fllnd200 >Fund300 $197,273 $2,500,000 $1,968,429 $344,133 Total Revenue from Intermediate Sources $2,697,273 $2,312,562 Revenue from State Sources 3101 State School Fund- General Support 3102 State School Fund- School Lunch Match 3103 Common School Fund 3104 State Managed County Timber 3106 State School Fund- Accrual 3199 Other Unrestricted Grants-in-Aid 3204 Driver Education 3222 State School Fund (SSF) Transportation Equipment 3299 Other Restricted Grants-in-Aid 3800 Revenue in Lieu of Taxes 3900 Revenue for/on Behalf of the District Fund 100 $43,213,711 $1,061,621 $1,698,921 $2,705,690 Fund 200 $38,860 1 $114,8791 $294,9141 sol sol Total Revenue from State Sources $48,679,943 $448,652 Revenue from Federal Sources Fund 100 Fund 200 Unrestricted Revenue Direct From the Federal 4100 Government Unrestricted Revenue From the Federal Government 4200 Through the State 4300 Restricted Revenue From the Federal Government $1, Restricted Revenue From the Federal Government 4500 Through the State $35,996 $6,820,784 Grants-In-Aid From the Federal Government Through 4700 Other Intermediate Agencies 4801 Federal Forest Fees 4802 Impact Aid to School Districts for Operation (PL 874) 4803 Coos Bay Wagon Road Funds 4899 Other Revenue in Lieu of Taxes 4900 Revenue for/on Behalf of the District Total Revenue from Federal Sources $1,521 $290,191 $37,517 $8,497,240 Fund 300 Fund 300 Revenue from Other Sources 5100 Long Term Debt Financing Sources 5200 lnterfund Transfers 5300 Sale of or Compensation for Loss of Fixed Assets 5400 Resources Beginning Fund Balance Fund100 $10,718,297 Fund 200 $451,954 $9,846,417 Fund 300 $787,550 $1,223,428 $932,107 Fund400 $20,656,997 $11,364,666 Fund 600 $1,240,888 Fund700 $3,237,578 Total Revenue from Other Sources $10,718,297 $10,298,371 $2,943,086 $32,021,662 $1,240,888 $3,237,578 Grand Totals (Sfda on ode state SHARED: Audttlnfo Distnct Revenue & Expendtture Audrt Summary lds} $246,132 $246,132 Fund 400 Furid 600 Fund 700 $742,975 To $149,690 $17,987 $120,993 $102,598 $70,138 $7,896 $2,306,257 $962,803 $231,487 $2,324,244.. Fund400 :Fund'GOO: cfund 700 Fund400 Fund 600 Fund700 Fund 400 Fund 600 Fund

121 DISTRICT AUDIT EXPENDITURE SUMMARY Tigard-Tualatin School District 23J lnstru ction Expenditures Elementary, K-5 or K-6 Elementary Extracunicular Middle/Junior High Programs Middle/Junior High School Extracunicular High School Programs High School Extracunicular Pre-Kindergarten Programs Programs lor the Talented and Gifted Restrictive Programs for Students with DisabiliTies Less Restrictive Programs for Students with Disabilities Treatment and Habilitation Remediation Trtle I Alternative Education English Second Language Programs Teen Parent Program Migrant Education Youth Corrections Education Other Programs Adult/Continuing Education Programs Summer School Programs Total lnstructoon Expendotures Support Services Expenditures 2110 Attendance and Social Work Services 2120 Guidance Services 2130 Health Services 2140 Psychological Services 2150 Speech Pathology and Audiology Services 2160 Other Student Treatment Services 2190 Service Direction, Student Support Services 2210 Improvement of Instruction Services 2220 Educational Media Services 2230 Assessment & Testing 2240 Instructional Staff Development 2310 Board of Education Services 2320 Executive Administration Services 2410 Office of the Principal Services 2490 Other Support Services -School Administration 2510 Direction of Business Support Services 2520 Fiscal Services 2540 Operation and Maintenance of Plant Services 2550 Student Transportation Services 2570 Internal Services 2610 Direction of Central Support Services Planning, Research, Development, Evaluation Services, 2620 Grant Writing and Statistical Services 2630 Information Services 2640 Staff Services 2660 Technology Services 2670 Records Management Services 2690 Other Support Services -Central 2700 Supplemental Retirement Program,,<,Totals'''' Object.100 Obiect200 Obiect300 $22,478,354 $13,653,059 $8,593,763 $23,537 $42,708 $31,834 $10,874 $11,352,534 $6,884,223 $4,329,250 $12,920 $70,196 $52,909 $16,848 $75 $15,234,260 $9,211,149 $5,704,751 $127,165 $1,306,144 $867,260 $311,134 $17,651 $295,438 $187,540 $101,668 $2,325 $1,212,139 $744,231 $463,115 $1,661 $7,489,977 $4,143,821 $3,337,870 $369 $899,578 $615,155 $243,497 $9,804 $190 $3,007,911 $943,634 $637,505 $1,412,219 $3,500,993 $2,011,607 $1,449,002 $8,539 $144 $162,524 $81,692 $45,052 $67,053,091 $39,428,113 $25,244,328 $1,616,264 Totals< Obiect1oo Ob'ect200 Object'300 $947,886 $557,897 $377,414 $10,255 $3,362,510 $2,022,240 $1,286,310 $31,854 $518,528 $236,669 $142,538 $130,799 $68 $597,153 $365,474 $209,798 $16,611 $730,817 $433,215 $258,147 $18,243 $1,824,944 $1,073,639 $702,426 $2,914 $211,747 $80,998 $38,471 $64,047 $243,484 $143,511 $89,883 $7,940 $395,969 $16,000 $1,295 $197,254 $384,481 $219,024 $130,650 $31,886 $6,743,323 $4,003,863 $2,519,850 $99,116 $154 $268,812 $145,018 $75,593 $30,676 $1,137,061 $521,978 $351,864 $18,032 $7,917,686 $2,546,909 $1,892,331 $2,709,772 $4,922,234 $637,651 $579,913 $3,602,115 $663,195 $173,093 $127,524 $252,226 $209,404 $115,994 $53,547 $30,592 $740,602 $252,576 $427,735 $48,183 $832,334 $253,832 $156,102 $272,286 $228,129 $216,635 $11,495 Object400 $206,288 $124,022 $365 $179,402 $28,334 $3,876 $2,796 $7,916 $31,123 $14,004 $31,655 $144 $484 $630,411 Object400 $1,931 $21,535 $8,343 $68 $2.454 $18,937 $45,841 $28,232 $2,151 $3,357 $2,176 $96,616 $154 $159 $8,713 $604,766 $100,642 $107,272 $8,351 $3,834 $149,518 Total Support Services Expenditures $32,880,522 $14,016,216 $9,432,886 $7,574,802 $1,215,050 Enterprise and Community Services Expenditures 3100 Food Services 3200 Other Enterprise Services 3300 Community Services 3500 Custody and Care of Children Services Total Enterprise and Community Services Expenditures Facilities Acquisition and Construction Expenditures ' 4110 Service Area Direction 4120 Site Acquisition and Development Services 4150 Building Acquisition, Construction, and Improvement 4190 Other Facilities Construction Services Total Facilities Acquisition and Construction Expenditures Other Uses Expenditures 5100 Debt Service 5200 Transfers of Funds 5300 Apportionment of Funds by ESD 5400 PERS UAL Bond Lump Sum Total Other Uses Expenditures Grand Total '!' Totals Object 100 $16,656 $16,335 $76,486 $50,372 $93,142 $66,708 Totals.. Object 100 Totals' Object 100 $783,784 $783,784 Object200 Object300 Object400 $222 $99 $26,113 $26,335 $99 Object200 Object300 Object400 Object200 Object300 Object400 Object500 Object600 Obiect700 I $1,707 $2,120 $11,794 $ $29 $336 $190 $549 $190 $35,296 $133,975 ObiectSOO Object600 Object700j $390 $570 $180 $2,816 $2,275 $125 $178,062 $744 $23,878 $17,366 $236,473 $31,531 $132,375 $1,486 $427 $3,080 $920 $8,274 $596 $33,017 $608,551 Object500 Object 600 Object700 I Object500 Object GOO Object700 Object500 Object600 Object700 I $783,784 $783,784 (Sfda on 'ode-psbfs1 ode state SHARED. Audrtinfo, 2011-~2 0\stnct Revenue & Expenditure Audt, Summary xis) 100

122 I Fund 200 Special Revenue Funds lnstru ction Expenditures 1111 Elementary, K-5 or K Elementary Extracurricular Treatment and Habilitation 1271 Remediation 1272 Trtle I Middle/Junior High Programs Middle/Junior High School Extracurricular High School Programs High School Extracurricular Pre-Kindergarten Programs Programs for the Talented and Gifted Restrictive Programs for Students with Disabilrties Less Restrictive Programs for Students with Disabilities Alternative Education English Second Language Programs DISTRICT AUDIT EXPENDITURE SUMMARY Tigard-Tualatin School District 23J , I +.~~~Totals "~"" $449,030 $54,782 $157,570 $288,153 $298,563 $2,650,322 $15,706 $1.210,752 $1,154,143 $256,363 $396,814 $1,347,274 $180,468 $47,794 $229,532 ob ect1oo Obieet:2oo Ob'ectJOO $161,810 $33,681 $8,699 $ $4,019 $17,338 $17,985 $10,624 $32,819 $13,745 $4,393 $1,074 $89,550 $48,130 $ $58,525 $62,953 $5,648 $2.375 $787 $75 $310,780 $209,935 $671,022 $510,928 $311,577 $237,052 $255,821 $225,756 $142,404 $842,556 $401,299 $9,474 $52,825 $24,255 $15,804 $13,623 $2,969 $2,225 $122,302 $97,583 $4,399 :Ob'ect400 $244,839 $17,025 $96,142 $268,941 $83,500 $2,509,683 $12,469 $19,014 $37,895 $542 $3,200 $49,540 $86,219 $25,220 $5,248 Teen Parent Program 1293 Migrant Education 1294 Youth Corrections Education 1299 Other Programs 1300 Adult/Continuing Education Programs 1400 Summer School Programs Totallnstructoon Expendotures $8,737,265 $2,439,160 $1,354,608 $1,305,682 $3,459,477 Support Services Expenditures 2110 Attendance and Social Work Services 2120 Guidance Services 2130 Health Services 2140 Psychological Services 2150 Speech Pathology and Audiology Services 2160 Other Student Treatment Services 2190 Service Direction, Student Support Services 2210 Improvement of Instruction Services 2220 Educational Media Services 2230 Assessment & Testing 2240 Instructional Staff Development 2310 Board of Education Services 2320 Executive Administration Services 2410 Office of the Principal Services 2490 Other Support Services- School Administration 2510 Direction of Business Support Services 2520 Fiscal Services 2540 Operation and Maintenance of Plant Services 2550 Student Transportation Services 2570 Internal Services 2610 Direction of Central Support Services Planning, Research, Development, Evaluation Services, Grant 2620 Writing and Statistical Services 2630 Information Services 2640 Staff Services 2660 Technology Services 2670 Records Management Services 2690 Other Support Services - Central 2700 Supplemental Retirement Prog am Enterprise and Community Services Expenditures 3100 Food Services 3200 Other Enterprise Services 3300 Community Services 3500 Custody and Care of Children Services Obiect 500; Obiect600 Ob'ect700! so $33,153 $12,514 $1,000 $56,691 $25,453 $44,405 $1,365 $3,757 $12,514 $165,824 X~f:p:T0tafs;&S,.0:tt1l :Obiect'100> :Obiect>200..ObieetJOO Obieet''4001 '0bTect500 Ob'ect.600 Object,700 I $395,782 $395,782 $611,855 $229,375 $137,888 $146,055 $23,927 $74,610 $272,304 $272,304 $802,378 $233,160 $152,850 $412,389 $3,594 $385 $164,280 $93,164 $68,408 $1,808 $900 $94,646 $56,045 $32,504 $5,219 $874 $203 $434,139 $225,908 $132,606 $53,872 $9,364 $12,389 $9,047 $9,047 $213,536 $69,600 $43,296 $93,027 $7,612 $1,293,696 $724,133 $341,384 $181,249 $33,451 $13,478 $1,104 $1,104 $69,046 $13,877 $2,044 $26,070 $27,055 $162,701 $23,474 $4,208 $3,007 $123,894 $8,118 $C <tn $150 $150 $164,558 $6,743 $3,831 $76,160 $16,736 $51,699 $9,388 $325,393 $157,673 $167,720 $1,126 $1,126 $87,424 $53,280 $34,144 $7,544 $1,470 $121 $5,933 $19 $1,315 $1,315 $259,557 $126,273 $133,284 Total Support Services Expenditures $5,371,780 $1,730,231 $953,284 $1,952,203 $ $219,419 $118,590 Total Enterprise and Community Services Expenditures Facilities Acquisition and Construction Expenditures Service Area Direction 4120 Site Acquisition and Development Services 4150 Building Acquisition, Construction, and Improvement Services 4190 Other Facilities Construction Services Total Facilities Acquisition and Construction Expenditures Other Uses Expenditures 5100 Debt Service 5200 Transfers of Funds 5300 Apportionment of Funds by ESD 5400 PERS UAL Bond Lump Sum Total Other Uses Expenditures Grand Total,.;;.,c;.Totalss0ii'&' $3,733,877 $908,372 $38,411 Ob'ect.100 $1,025,756 $461,746 $16,931 Object200 Ob'ect300 Ob'ect400 $828,874 $26,406 $1,745,897 $211,754 $131,562 $98,338 $7,242 $2,871 $9,755 $4,680,661 $1,504,433 $1,047,870 $160,839 $1,853,990.,.,,;.cTotals;~4f;T -.,~ \;.Totals >'"'' $373,120 $271,245 $844,365 Ob'ect100 Ob'ect 100 Ob'ect200 Ob'ect 300 Ob'ect>400 Obiect200 Ob'ect300 Ob'ect 400 Ob'ect 500 Obiect600 Obiect700 $97,840 $9,104 $4,973 $1,612 $97,840 $15,689 Ob'ect500 Obiect600 Ob'ect700 :Object 500 Obiect600 Ob'ect 700 I $373,120 $271,245 $644,365 (Sfda on 'ode-psbfs1 ode state, SHARED. Aud1!lnfo, stnc! Revenue & Expenditure Audrt Summaryx!s) 101

123 !Fund 300 Debt Service Funds lnstr uction Expenditures Elementary. K-5 or K-6 Elementary Extracurricular Middle/Junior High Programs Middle/Junior High School Extracurricular High School Programs High School Extracurricular Pre-Kindergarten Programs Programs for the Talented and Gifted Restrictive Programs for Students with Disabilities Less Restrictive Programs for Students with Disabilities Treatment and Habilitation Remediation Title I Alternative Education English Second Language Programs Teen Parent Program Migrant Education Youth Corrections Education Cither Programs Adult/Continuing Education Programs Summer School Programs Total Instruction Expenditures Support Services Expenditures 2110 Attendance and Social Work Services 2120 Guidance Services 2130 Health Services 2140 Psychological Services 2150 Speech Pathology and Audiology Services 2160 Other Student Treatment Services 2190 Service Direction, Student Support Services 2210 Improvement of Instruction Services 2220 Educational Media Services 2230 Assessment & Testing 2240 Instructional Staff Development 2310 Board of Education Services 2320 Executive Administration Services 2410 Office of the Principal Services 2490 Other Support Services - School Administration 2510 Direction of Business Support Services 2520 Fiscal Services 2540 Operation and Maintenance of Plant Services 2550 Student Transportation Services 2570 Internal Services 2610 Direction of Central Support Services Planning, Research, Development. Evaluation Services. Grant 2620 Writing and Statistical Services 2630 Information Services 2640 Staff Services 2660 Technology Services 2670 Records Management Services 2690 Other Support Services - Central 2700 Supplemental Retirement Program Total Support Services Expenditures Enterprise and Community Services Expenditures 3100 Food Services 3200 Other Enterprise Services 3300 Community Services 3500 Custody and Care of Children Services Total Enterprise and Community Services Expenditures Facilities Acquisition and Construction Expenditures 4110 Service Area Direction 4120 Site Acquisition and Development Services 4150 Building Acquisition, Construction, and Improvement Services 4190 Other Facilities Construction Services Total Facilities Acquisition and Construction Expenditures Other Uses Expenditures 5100 Debt Service 5200 Transfers of Funds 5300 Apportionment of Funds by ESD 5400 PERS UAL Bond Lump Sum Total Other Uses Expenditures Grand Total DISTRICT AUDIT EXPENDITURE SUMMARY Tigard-Tualatin School District 23J,::;;:;~;)TotalS:~oJ;Zf~:l \fuj?ji1,j' otais~t~-,.,:yp,totals:*~"'; ;Cl:;~;T otals W :::~+ 'c:i,w.totals '!ili' $17,746,978 $17,746,978 Obiect.100 ;Ob.ect200 Ob.ect300i :Obieet,~oo: XilblectZ200;c ;Ob.iect;:SOOi Obiect 100 Obiect200' Oblei::t300 Obiect 100 Obiect200 Oiiiect300; Obiect 100 Ob.ect200 Ob'ect3o0 sobiect '400 Oblect500 Ob'ecl:60o Oblect i700 I 40biect 400: cobject 500' Obiect'600.ob et::t'joo'i,qbfect400 Obiect 500 Oblect 600 Object.700 I Oblect400 Obiect500 Oblect600 ;Object :roo Ob'ect400 Oblect 500 Ob'ect600 Obiect700I $17,746,978 1 $ (Sfda on 'ode-psbfsi ode state ' SHARED; Auditlnfu, Qistnct Revenue & E~endtture Aud1t Summary xis) 102

124 I Fund.wo capital Pro.iects Funds ~ DISTRICT AUDIT EXPENDITURE SUMMARY Tigard-Tualatin School District 23J lnstr uction Expenditures "'kctotatsz;"''"' ObjecMOO Object200 Oblect300 o61ec~40o Elementary, K-5 or K Elementary Extracurricular 1121 Middle/Junior High Programs 1122 Middle/Junior High School Extracurricular 1131 High School Programs 1132 High School Extracurricular 1140 Pre-Kindergarten Programs 1210 Programs for the Talented and Gifted 1220 Restrictive Programs for Students with Disabilities 1250 Less Restrictive Programs for Students with Disabilities 1260 Treatment and Habilitation 1271 Remediation $ 1272 Title I $C Alternative Education English Second Language Programs Teen Parent Program 1293 Migrant Education 1294 Youth Corrections Education 1299 Other Programs 1300 AduiVContinuing Education Programs 1400 Summer School Programs Total Instruction Expenditures Support Services Expenditures 2110 Attendance and Social Work Services 2120 Guidance Services 2130 Health Services 2140 Psychological Services 2150 Speech Pathology and Audiology Services 2160 Other Student Treatment Services 2190 Service Direction. Student Support Services 2210 Improvement of Instruction Services 2220 Educational Media Services 2230 Assessment & Testing 2240 Instructional Staff Development 2310 Board of Education Services 2320 Executive Administration Services 2410 Office of the Principal Services 2490 Other Support Services School Administration 2510 Direction of Business Support Services 2520 Fiscal Services 2540 Operation and Maintenance of Plant Services 2550 Student Transportation Services 2570 Internal Services 2610 Direction of Central Support Services Planning, Research, Development. Evaluation Services, Grant 2620 Wrrting and Statistical Services 2630 Information Services 2640 Staff Services 2660 Technology Services 2670 Records Management Services 2690 Other Support Services Central 2700 Supplemental Retirement Program Total Support Services Expenditures Enterprise and Community Services Expenditures 3100 Food Services 3200 Other Enterprise Services 3300 Community Services 3500 Custody and Care of Children Services Total Enterprise and Community Services Expenditures Facilities Acquisition and Construction Expenditures 4110 Service Area Direction 4120 Site Acquisition and Development Services 4150 Building Acquisition, Construction, and Improvement Services 4190 Other Facilities Construction Services Total Facilities Acquisition and Construction Expenditures Other Uses Expenditures 5100 Debt Service 5200 Transfers of Funds 5300 Apportionment of Funds by ESD 5400 PERS UAL Bond Lump Sum Total Other Uses Expenditures Grand Total i'i>i ".:rotals~qj?i'' " 1 '>~T otals y::,:. i0'$.totals':\?~' $437,885 $2,105,535 $6,090,347 ()billet.100 Dbiect'200.obfect30o Oblect 400 Ob'ect 100 ob ect2oo Ob'ect.300 Oblect400 Obiect 100 Ob.ect200 Ob'ect 300 Obiect400 $212,008 $290,472 $646 $20,169 $7,236 $211,339 $1,286,811 Oblect500 Obi&Ct500 Ob'ect SOO ob ect soo $216,336 $1,788,618 $4,444,683 $8,633,768 $20,169 $7,236 $713,819 $1,287,457 $6,449,637 c;\l<iftotalsl!;s $516,479 $516,479 Object 100 Object200 Object 300 Obiect400 Object 500 OliieCt600 Object 700 I Obiect600 Obieet700I ~ Object600 Ob'ect 700 I Object 600 Ob'ect700 I $9,542 $ $120,110 $155,450 Obiect600 Object700 I $516,479 $516,479 (Sfda on 'ode-psbfs1.ode.state SHARED, Audrtlnfo. 201 'l-i2 DIStriCt Revenue & Expenditure Audit Summary xis) 103

125 DISTRICT AUDIT EXPENDITURE SUMMARY Tigard-Tualatin School District 23J ~Fu-nd- -Go-o -lnternaisen"ice-fu~nd-c---s l Instruction Expenditures 1111 Elementary, K-5 or K Elementary Extracurricular 1121 Middle/Junior High Programs 1122 Middle/Junior High School Extracurricular 1131 High School Programs 1132 High School Extracurricular 1140 Pre-Kindergarten Programs 1210 Programs for the Talented and Gifted 1220 Restrictive Programs for Students with Disabilities 1250 Less Restrictive Programs for Students with Disabilities 1260 Treatment and Habilitation 1271 Remediation 1272 Title I 1280 Alternative Education 1291 English Second Language Programs 1292 Teen Parent Program 1293 Migrant Education 1294 Youth Corrections Education 1299 Other Programs 1300 Adult/Continuing Education Programs 1400 Summer School Programs Totallnstruct1on Expenditures Support Services Expenditures 2110 Attendance and Social Work Services 2120 Guidance Services 2130 Health Services 2140 Psychological Services 2150 Speech Pathology and Audiology Services 2160 Other Student Treatment Services 2190 Service Direction, Student Support Services 2210 Improvement of Instruction Services 2220 Educational Media Services 2230 Assessment & Testing 2240 Instructional Staff Development 2310 Board of Education Services 2320 Executive Administration Services 2410 Offce of the Principal Services 2490 Other Support Services - School Administration 2510 Direction of Business Support Services 2520 Fiscal Services 2540 Operation and Maintenance of Plant Services 2550 Student Transportation Services 2570 Internal Services 2610 Direction of Central Support Services Planning, Research. Development, Evaluation Services, Grant 2620 Writing and Statistical Services 2630 Information Services 2640 Staff Services 2660 Technology Services 2670 Records Management Services 2690 Other Support Services - Central 2700 Supplemental Retirement Program Total Support Services Expenditures Enterprise and Community Services Expenditures 3100 Food Services 3200 Other Enterprise Services 3300 Community Services 3500 Custody and Care of Children Services Total Enterprise and Community Services Expenditures Facilities Acquisition and Construction Expenditures Service Area Direction 4120 Site Acquisition and Development Services 4150 Building Acquisition, Construction, and Improvement Services 4190 Other Facilities Construction Services Total Facilities Acquisition and Construction Expenditures Other Uses Expenditures 5100 Debt Service 5200 Transfers of Funds 5300 Apportionment of Funds by ESD 5400 PERS UAL Bond Lump Sum Total Other Uses Expenditures Grand Total $14,501 $20,495 $6,348 $153 $1,170 $1,185 $14,787 $15,407 $8,787 $82,833 ~t~'itotais1i 'GI)'&C i101}j 401)i&Ct22QO i0b'ect+300' $144 $144 $10,022 $10,022 $1,735 $1,735 -$3,548 -$3,548 $1,878 $1,878 $1,715 $1,715 $983 $12,930 :: {0&!;;<r otals'~f%$' Object 100 $5,708 $1,181 $6,890 -;;&' \tq,~rotals~r; Object:100 %:? ;~{. T'ota1si81;%k]\( Obiect100 $14,501 $20,495 $6,348 $153 $1,170 $1,185 $ $15,407 $8,787 $82,833 $983 $12,930 Obiect200 Obiect300 $5,708 $1,181 $6,890 Obiect200 ObieCt300 Obiect:200 Obiect300 't0b'ect<400 'Obi&Ct 500 Obi&Ct600: icibiectc700 Obiecf400 Obiect500 Oblect600. 0Dject700 Ol:!iect400' Obiect500 Obiect600 :Obj&C 700 Obiect.400 Obiect500 o6tectsoo ObJect 1oo (Sid a on ode-psbfs1 ode state :SHARED, Aud1tlnfo; Oistnct Revenue & Expend1ture A<1dil Summary xis) 104