Comprehensive Annual Financial Report

Transcription

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2 Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013 Prepared by: Finance Department Greeley, Colorado Meggan Sponsler, Chief Financial Officer Mandy Hydock, Finance Director Teresa Warner, Accounting Manager Nikki Skillern, Grant Accountant Jean Tacoronte, School Program Analyst/Internal Auditor

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4 2013 For the Fiscal Year Ended June 30, 2013 Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal... 1 GFOA Certificate of Achievement for Excellence in Financial Reporting... 8 ASBO Certificate of Excellence in Financial Reporting... 9 Organizational Chart List of Elected Officials FINANCIAL SECTION Independent Auditor s Report Management s Discussion and Analysis Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Government Wide Statement of Net Position Statement of Revenues, Expenditures and Changes in Net Position Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities Statement of Net Position Proprietary Fund Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund Statement of Cash Flows Proprietary Fund Statement of Fiduciary Assets and Liabilities Agency Funds Component Units: Combining Statement of Net Position Component Units Combining Statement of Activities Component Units Notes to the Basic Financial Statements Required Supplementary Information Budgetary Comparison Schedule General Fund Budgetary Comparison Schedule Designated Special Purpose Grants Fund Notes to Required Supplementary Information i

5 Supplementary Information 2013 For the Fiscal Year Ended June 30, 2013 Table of Contents Budgetary Comparison Schedules: Budgetary Comparison Schedule Capital Projects Fund Special Revenue Platte Valley Youth Services Center Fund Debt Service Bond Redemption Fund Enterprise Food Service Fund Internal Service Copier Service Fund Statement of Changes in Assets and Liabilities Agency Funds STATISTICAL SECTION Table of Contents for Statistical Section Financial Trends: Schedules 1 through Revenue Capacity: Schedules 5 through Debt Capacity: Schedules 9 through Demographic and Economic Information: Schedules 13 through Operating Information: Schedules 15 through SINGLE AUDIT SECTION Independent Auditor s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by OMB Circular A Schedule of Findings and Questioned Costs Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards COLORADO STATE MANDATED SCHEDULE SECTION Independent Auditor s Report on Auditor s Integrity Report Auditor s Integrity Report ii

6 Introductory Section Letter of Transmittal GFOA Certificate of Achievement For Excellence in Financial Reporting ASBO Certificate of Excellence in Financial Reporting Organizational Chart List of Elected Officials

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8 Finance Department 1025 N INTH A VENUE GREELEY, C OLORADO November 4, 2013 To the Members of the Board of Education and Citizens of, Colorado law requires that every Colorado local government conduct an annual audit of their financial statements. The law states the audit must be performed by an independent certified public accountant and be in accordance with generally accepted auditing standards. The for Weld County School District 6, for the fiscal year ended June 30, 2013, is submitted herewith to fulfill this state requirement. This report consists of management s representations concerning the financial aspects of Weld County School District 6. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the information presented, including all disclosures, rests with the Finance Department of Weld County School District 6. To provide a reasonable basis for making these representations, management of Weld County School District 6 has established a comprehensive internal control framework that is designed both to protect the government s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of Weld County School District 6 s financial statements in conformity with GAAP. Because the cost of the internal controls should not outweigh their benefits, the District s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. To the best of our knowledge and belief, the attached data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of all operations of the District. All disclosures necessary to enable the reader to gain an understanding of s financial activities have been included. Sample & Bailey, CPAs, P.C., a firm of licensed certified public accountants, have audited Weld County School District 6 s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the district for the fiscal year ended June 30, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent audit concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the district's financial statements for the fiscal year ended June 30, 2013 are fairly presented in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Independent Auditor s Report on the district's financial statements is presented as the first component of the financial section of this report. The independent audit of the financial statements of 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. These reports are available in the District s Single Audit Report for the fiscal year ended June 30, Management s discussion and analysis (MD&A) immediately follows the independent auditor s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Page 1

9 Profile of the District is a political subdivision of the State of Colorado and a corporate body organized in The district currently owns approximately 450 acres of land, and includes 35 schools and support sites ranging from an age of 1910 through Our 35 schools and support facilities total 2.1 million square feet of building space. The district boundaries have been redrawn numerous times over the last 135 years, the last redistricting occurring in 1964, enlarging District 6 to its current 75 square miles. The district is an independent school district that is a public corporation duly organized and existing under the constitution and laws of the State of Colorado. Based in Greeley, Colorado, District 6 is located 50 miles north of Denver and 17 miles east of Loveland. A seven-member Board of Education bears overall responsibility for the District, its budget, and is primarily accountable for all financial matters of School District 6. Board members are elected by registered voters, each member is elected at-large (the district is not divided into representative areas), and serve four-year terms. Approximately 20,500 students attend school at the district's 33 schools and educational programs. The district s K-12 enrollment has been relatively stable for the past few years. The enrollment numbers are showing an increase of approximately 100 over the prior fiscal year. There are 6,575 students eligible to utilize the district s bus services each day, and the district s Nutrition Department serves over 2.5 million meals annually for the school breakfast and lunch programs. s excellent schools encompass twelve traditional elementary schools (K-5), two K-6 schools, two K-8 magnet schools, four middle schools, three traditional high schools, two alternative high schools, one online school and five charter schools. The district offers additional opportunities including: An Arts and Literature Magnet K 8 School (Chappelow Arts and Literacy Magnet School); A Performing Arts Magnet high school program (Central High School); A Science, Math, Engineering and Technology high school magnet program at Northridge High School; 5 Charter Schools focused on alternate instruction methods; An alternative high school and a program focusing on improving educational and social realities of at-risk students in grades 9 12 (Jefferson High School and Greeley Alternative Program); ENGAGE Online Academy (Educating the Next Generation At Greeley-Evans) which offers students core academic classes in an alternative setting; The Health Science Academy was created at Greeley Central High School, and has enrolled 100+ students interested in careers in the healthcare industry; The Law Enforcement Academy at Greeley West High School began in the school year, which has allowed for partnerships with local law enforcement agencies and allows students to earn up to 12 college credits upon successful completion of the course; The district continues to expend the Career Pathways programs. Beginning in , Northridge implemented the Marine Corps Junior ROTC program and Greeley West entered into a partnership with Aims Community College to allow students the opportunity to take courses for Fire Science and Criminal Justice programs. A program for Deaf and Hard of Hearing students, Kindergarten 12, at Chappelow Arts and Literacy Magnet School; Numerous Advanced Placement (college level) courses at our three traditional high schools, and a regional International Baccalaureate Program (Greeley West High School); A premier learning resource facility (Poudre Learning Center) for interdisciplinary study of the Cache la Poudre River is shared by District 6 and three neighboring school districts. The district is fully accredited by the Colorado Department of Education Accreditation and Accountability Unit. The district is subject to periodic monitoring to ensure continued compliance with accreditation standards. The district has maintained agreements with five charter schools; Union Colony Secondary School, Union Colony Elementary School, Frontier Academy, University Schools, and West Ridge Academy. The charter schools are public schools authorized by the State of Colorado to provide alternatives for parents, pupils and teachers. Page 2

10 The schools have separate governing boards but are fiscally dependent on the district for the majority of funding as allowed under the school finance act and under the general supervision of the District s Board of Education. The charter schools meet the requirements under Governmental Accounting Standards to be presented as discrete component units. The Board of Education is required to adopt a final budget by no later than June 30 prior to the budget year, but may be revised prior to January 31 of the budget year. This annual budget serves as the foundation for the district s financial planning and control. The district maintains extensive budgetary controls to ensure compliance with legal requirements, district administration guidelines, and Board of Education policies. The budget development process evaluated compensation and benefit expenses, utilities and fixed costs at the district level, and discretionary spending at the department and school level. Economic Condition and Outlook National Economy The nation s economy expanded at a modest pace through the summer. Healthier balance sheets for the nation s businesses, households, and banks, renewed momentum in the manufacturing sector, improvement in the real estate sector, and incremental improvements in the global economy have translated into improved consumer and business confidence. Nonetheless, robust economic growth continues to be hindered by uncertain monetary, fiscal, and regulatory policies, along with heightened geopolitical risk. In addition, the economy is still absorbing the effects of recent federal tax increases and spending cuts. Economic activity is expected to continue to expand modestly through the remainder of 2013 before growing at a more earnest pace in 2014 and The economy is expected to recover sufficiently by the middle of 2015 for the Federal Reserve to begin raising interest rates, thus beginning the process of reducing the size of the money supply. Colorado Economy Colorado s economy is expected to continue expanding at a modest pace through the end of 2013, as financial uncertainty and federal fiscal policies restrain growth. However, the pace of expansion should slowly gain momentum in 2014 and 2015, as continued healing in the nation s business, consumer, real estate, and financial sectors increasingly results in a self-sustaining cycle of growth. Colorado s economy is expected to continue to outpace growth nationwide. The State s General Fund ended FY with $1.1 billion more than was budgeted to be spent or retained in the reserve. This amount will be transferred to the State Education Fund in FY The General Fund revenue forecast increased by $209.5 million in FY and $244.7 million in FY because of higher expectations for individual income taxes. The General Assembly will have just under $1.6 billion, or 18.5 percent, more to spend in FY than the amount budgeted for FY This figure includes the $145.0 million surplus from FY and would be lower if it were adjusted to account for expenditure pressures resulting from inflation and caseload growth. Revenue subject to TABOR is expected to be $154 million, $52 million, and $43 million below the Referendum C cap in FYs , , and , respectively. Recently, flash floods ravaged communities across the state, hitting mountain canyons and many metropolitan areas on the Front Range. Many areas in the northeastern plains were also impacted. Although these floods will cause some disruptions, Colorado s economy is expected to see moderate growth through the remainder of 2013 before gaining momentum in 2014 and Employment, income, wages, and retail trade are expected to grow amidst improving consumer and business confidence. Page 3

11 Local Economy The northern region s economy, which encompasses Weld and Larimer counties, continues to be one of the strongest in the state. Unlike the rest of the state, nonresidential construction has maintained strength through the summer. Oil and natural gas activity was suspended because of the recent floods, but it is unclear if there was significant damage to existing wells or other oil and gas infrastructure. The economic boost provided by households and businesses repairing flood damage will be offset by fewer visitors to the region. Growth in the region s labor market remains steady as nonfarm employment grew 1.5 percent in Greeley through the first seven months of 2013 compared with the same time period in In July, the Greeley MSA s unemployment rate was 7.5 percent. New residential construction permits were up 41.4 percent in the Greeley area year-to-date through July compared with the same period one year ago. As the rest of the state saw a decline in summer nonresidential construction activity, the value of nonresidential projects in the northern region grew 40.2 percent through July This, along with housing growth, has also helped maintain steady growth in the region s labor market. Retail sales continue to be strong in Weld County. Consumer spending has outperformed the state. has experienced the positive effect of the improved economic conditions of the state and national improvements through increased tax collections and is facing increased state funded revenues for The district will be receiving approximately $6,494 per pupil (FTE basis) in compared to the funding of $6,320. If the district was fully funded, as described by the School Finance Act, there would be an additional $23.5 million to support student education. Long-Term Financial Planning The goals utilizing the district s financial resources for the school years are very strategic. These goals include Maintain the current class size/staffing ratio. The district continues to prepare for the implementation of the new state assessment system. These changes will impact statewide summative, alternate and English language proficiency assessments, in the next few years. Additionally, state-wide legislative academic requirements continue to be implemented. These include CAP4K (Colorado Achievement Plan for Kids), READ Act, School Readiness and Senate Bill Building Excellent Schools Today (BEST) is a Colorado Department of Education grant program. The district applied and was notified of approval for funding to support the replacement of John Evans Middle school. The State will fund $21 million and the local taxpayers, approved through election, will pay $8.2 million. The planning and design phase is near completion with construction expected to begin in February Additionally, the District has been awarded a $1.5 million cash grant from BEST to be used for the renovation of Greeley West High School, including roof repairs and extensive removal of asbestos from the interior walls, floors and ceilings. The district will provide matching funds of approximately $420,000. The Strategic Plan - Reaching for Excellence will be expiring within the current year. As a result, the district is actively preparing for the next plan by meeting with various focus groups. Deliver more bandwidth to schools via a new Wide Area Network (WAN). The district has applied for E- Rate funding to offset a significant portion of the cost of this project. Implementation will occur from November 2013 through March A November 2013 ballot question will be requesting the approval of Amendment 66 by the residents of Page 4

12 Colorado. The passing of this initiative will trigger the implementation of a new school finance formula, outlined in Senate Bill , a bill that increases transparency and accountability at the school level; addresses issues of fairness in funding and provides for the needs of individual students. Support Middle School reform efforts. The budget allocates additional funding for curriculum and other supports as the district works to improve academic achievement at its middle schools. Activities which support sound fiscal management include balancing of the budget for the school year by monitoring of expenditures, seeking new grant funding and aligning current grant resources, identifying cost-cutting measures, developing and enhancing revenue streams, and the already implemented creation of a budget advisory committee made up of community members. Relevant Financial Policies The district's system of internal controls is designed to provide reasonable, but not absolute, assurance that assets are adequately safeguarded, transactions are accurately recorded and expenditures are properly authorized. Those controls also assure the reliability of financial records for preparing financial statements and maintaining the accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived from that control. The evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within this framework. The district s accounting and budget systems are integrated and this facilitates budgetary control. Also, the systems include integrity checks and balances which help assure only valid transactions occur. The district's existing systems of budgetary and accounting controls are designed to provide reasonable assurance that errors or irregularities of a material nature are prevented or are detected in a reasonable period of time. We believe that the district s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The district s internal control structure is subject to periodic review by management and the internal audit staff. Major Initiatives recognizes the need to be focused and strategic in order to raise student achievement, close achievement gaps, strengthen school-community relationships and improve organizational effectiveness. The district s strategic plan, known as the Strategic Plan Reaching for Excellence was approved by the Board of Education in June 2009 to achieve these initiatives. The most significant components of the plan are: Vision Every student a learner. Every student a graduate. All students a success! Mission School District 6 provides a quality education for every learner within a system of high expectations and rigorous, focused instruction. Core Beliefs Success We prepare students for success in a constantly changing and diverse world. Respect We treat every one of our students, parents, staff and community members with dignity and respect. Diversity We embrace the individual uniqueness of each student, parent, staff and community member as this diversity enriches the educational experience for all. Excellence We maintain a safe environment to enhance learning and teaching. Engagement We welcome vigorous engagement by parents and the community in our schools and district. Page 5

13 Reaching for Excellence continues to focus on our three strategic goals: Increase academic achievement Strengthen relationships Improve organizational effectiveness The Strategic Plan is organized around standards and actions to meet the goals of Reaching for Excellence These building blocks for excellence are as follows: Page 6

14 Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting and the Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the district for its comprehensive annual financial report for the fiscal year ended June 30, In order to be awarded a Certificate of Achievement and the Certificate of Excellence, the district published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principals and applicable legal requirements. The Certificate of Achievement and the Certificate of Excellence are valid for a period of one year. The district has received a Certificate of Achievement for eleven consecutive years and a Certificate of Excellence for the last thirteen years. We believe our current continues to meet the Certificate of Achievement and Certificate of Excellence programs requirements and we are submitting it to both GFOA and ASBO to determine its eligibility for another certification. The preparation of this report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. We would like to express our sincere appreciation to all members of the department for the contributions made in the preparation of this report. We also thank the district s independent auditors, Sample & Bailey, CPAs, P.C., for the professional manner in which they accomplished the audit. We would also like to thank the members of Board of Education for their interest and support in planning and conducting the financial operations of the district in a responsible and progressive manner. Respectfully submitted, Wayne Eads Chief Operations Officer Meggan Sponsler, CPA Chief Financial Officer Page 7

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18 List of Elected Officials June 30, 2013 Elected Officials Board of Education Term Expires President Doug Lidiak 2015 Vice President Julia Richard, Ed.D Director Roger DeWitt 2013 Director Paleri Mann, Ph.D Director Scott Rankin 2013 Director Logan Richardson 2015 Director Linda Trimberger 2013 Appointed Officials Board of Education Secretary Bernee Barea Treasurer Meggan Sponsler Superintendent s Executive Cabinet Superintendent of Schools... Ranelle Lang, Ed.D. Chief Academic Officer... Nancy Devine Chief Operations Officer... Wayne Eads Chief Financial Officer... Meggan Sponsler Director of School / Community Relations... Theresa Myers Page 11

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20 Financial Section Independent Auditor s Report Management s Discussion and Analysis Basic Financial Statements Required Supplementary Information Supplementary Information

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26 Management s Discussion and Analysis The Management s Discussion and Analysis (MD&A) is a component of required supplementary information used to introduce the basic financial statements and provide an analytical overview of the District s financial activities.

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28 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 As management of (the district), Greeley-Evans, Colorado, we offer readers of the district s this narrative, overview 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 additional information that we have furnished in our letter of transmittal, basic financial statements and notes to the basic financial statements to enhance their understanding of the school district s financial performance. Financial Highlights At June 30, 2013: The primary government reports government-wide net position totaling $100.1 million at the end of the current fiscal year. Of this amount, approximately $17 million is unrestricted and may be used to meet the district s ongoing responsibility for its educational program for students. In total, net position decreased $1.9 million. Net position of the governmental activities decreased $2.2 million, a 2% decrease from Net position of business-type activities increased $.3 million or 14% from Business-Type Activities have an unrestricted net position of $1.5 million, which may be used to meet the district s ongoing obligations of the enterprise activities. General revenues of the primary government totaled $135.6 million, or 79% of all revenues. Program specific revenues in the form of charges for services, grants, and contributions accounted for $35.7 million or 21% of total revenues of $171.3 million. Total expenses of the primary government totaled $173.2 million. Expenses related to governmental activities totaled $165.3 million; only $27.5 million of these expenses were offset by program specific charges for services, grants and contributions. General revenues for governmental activities (primarily state equalization and property taxes) of $135.6 million offset net program expenses. The district s long-term obligations increased by $2.2 million to $78.1 million, which is the result of the $6.020 million scheduled reductions of existing debt and the addition of $8.2 million of voter approved debt. Overview of the Financial Statements The annual report consists of four parts: Management s Discussion and Analysis, the Basic Financial Statements, Required Supplementary Information and Supplementary Information. The Basic Financial Statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements, which provide additional and more detailed information. Included as Required Supplementary Information is budget-to-actual information related to the district s General Fund, and the Designated Special Purpose Grants Fund. The Supplementary Information section contains budget-to-actual information for all other funds (as required by law), as well as additional information that further explains and supports the financial statements, including combining schedules. Government-Wide Financial Statements The government-wide financial statements report information about the district as a whole using accounting methods similar to those used by private-sector companies. The statement of net position presents information about all of the district s assets, liabilities and deferred outflows and inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the district is improving or deteriorating. Page 17

29 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 The statement of activities presents information showing how the government s net position changed during the most recent fiscal year. All of the current year s revenues and expenses are accounted for in the statement of activities when the event occurs, regardless of the timing of when cash is received or paid. In the government-wide financial statements, the district s activities are divided into two distinct kinds of activities: Governmental Activities Most of the district s programs and services principally supported by taxes are reported here including instruction, support services, operation and maintenance of facilities, pupil transportation and administration. Business-Type Activities These services are provided on a charge for goods or services basis to cover all or a significant portion of their associated costs. The district s food services program is included here. The government-wide financial statements follow the Management s Discussion and Analysis section of this report. Fund Financial Statements Funds are accounting devises the district uses to track specific sources of funding and spending on particular programs. Some funds are required by state law. Other funds control and manage money for particular purposes (such as repaying its long-term debt) or to demonstrate proper expenditure of certain revenues (such as federal grants). All of the funds of the district have been divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds Governmental funds account for essentially the same information reported in the governmental activities of the government-wide financial statements. However, unlike the government-wide 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. Such information may be useful in evaluating a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the district s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The district maintains five different governmental funds. The major funds are the General Fund, the Capital Projects Fund, Designated Special Purpose Grants Fund, and the Bond Redemption Debt Service Fund. They are presented separately in the fund financial statements with the remaining governmental funds combined into a single aggregated presentation labeled other governmental funds. Individual fund information for the other governmental (non-major) funds is presented as supplemental information elsewhere in this document. The district adopts an annual appropriated budget for each of the individual governmental funds. A budgetary comparison schedule for the General Fund, and Designated Purpose Grants Fund are included in the required supplementary information to demonstrate compliance with the adopted budget. The remaining governmental funds budgetary comparisons are reported as supplemental information. The basic governmental fund financial statements can be found on pages of this report. Page 18

30 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Proprietary Fund The district maintains two types of proprietary funds. Enterprise funds are used to present the same functions as the business-type activities presented in the government-wide financial statements. The fund financial statements of the enterprise funds provide the same information as the government-wide financial statements, only in more detail. The district also uses internal service funds to report activities that provide goods and services for its other programs and activities. The district s enterprise fund, the Food Services Fund, is considered a major fund. Additionally, the district maintains a Copier Services Fund (an internal service fund) to provide copier and printing services for the schools and departments. The district also adopts an annual appropriated budget for the enterprise funds. The enterprise funds budgetary comparison schedules are reported as other supplemental information. The basic proprietary fund financial statements are presented on pages Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because these sources of funds are not available to support the district s direct educational programs. The accounting method used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statement is presented on page 39. Component Units A statement of net assets and statement of activities for the discretely presented component units (charter schools) has been included. The component units have been included to provide more complete information regarding public school activities within the district. Each component unit has a separately issued financial statement available. The combining Component Unit Statements are presented on pages Notes to Basic Financial Statements The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages of this report. Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information (General Fund and major Special Revenue Funds budget-to-actual schedules) and supplementary information. Supplementary information includes the combining statements mentioned earlier in connection with non-major governmental funds as well as budget-to-actual information for all funds (other than the General Fund and Designated Special Purpose Grants Fund, which are included as required supplementary information) as dictated by state law. Government-Wide Financial Analysis Cash, investments, receivables, and inventories are current assets. These assets are available to provide resources for the near-term operations of the district. Prepaid expenses are considered deferred outflows of resources. Page 19

31 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Long term assets include capital assets and other assets used in the operations of the district. Long term assets include restricted cash, long term receivable, land, water rights, buildings, equipment, and projects in progress. Capital assets are discussed in greater detail in the section titled Capital Assets found later in this analysis. Current and long-term liabilities are based on anticipated liquidation either in the near-term or in the future. Current liabilities include accounts payable, accrued salaries and benefits, unearned revenues, and current debt obligations. The liquidation of current liabilities is anticipated to be either from currently available resources, current assets or new resources. Long-term liabilities such as long-term debt obligations and compensated absences payable will be liquidated from resources that will become available after fiscal year Deferred inflows of resources consist of unearned revenues. Table 1 Condensed Statement of Net Position As of June 30, 2013 and 2012 Governmental Business-Type Activities Activities Total Assets Current and Other Assets $ 51,473,842 $ 58,504,342 $1,835,948 $ 1,480,061 $ 53,309,790 $ 59,984,403 Long Term Assets 142,356, ,535,050 1,337,189 1,216, ,693, ,751,204 Total Assets 193,830, ,039,392 3,173,137 2,696, ,003, ,735,607 Deferred Outflows of Resources Prepaid Expenses 132,133 1,226, ,133 1,226,592 Total Deferred Outflows of Resources 132,133 1,226, ,133 1,226,592 Total Assets and Deferred Outflows of Resources 193,962, ,256,984 3,173,137 2,696, ,135, ,962,199 Liabilities Current Liabilities 14,058,621 13,672, ,403 71,033 14,165,024 13,743,855 Noncurrent Liabilities 79,625,418 77,290, , ,622 79,746,242 77,395,938 Total Liabilities 93,684,039 90,963, , ,655 93,911,266 91,139,793 Deferred Inflows of Resources Unearned Revenues 3,018,830 3,423,210 83,910-3,102,740 3,423,210 Total Deferred Inflows of Resources 3,018,830 3,423,210 83,910-3,102,740 3,423,210 Total Liabilities and Deferred Inflows of Resources 96,702,869 94,386, , ,655 97,014,006 94,563,003 Net Position Invested in Capital Assets, Net of Related Debt 61,710,227 59,214,842 1,337,189 1,216,154 54,869,425 60,430,996 Restricted 19,657,212 16,339, ,657,212 16,339,056 Unrestricted 15,892,322 24,325,738 1,524,811 1,303,406 25,595,124 25,629,144 Total Net Position $ 97,259,761 $ 99,879,636 $2,862,000 $ 2,519,560 $ 100,121,761 $ 102,399,196 Page 20

32 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Government-Wide Total Assets and Deferred Outflows of Resources Current Assets 26.5% Long Term Assets 73.4% Deferred Outflows of Resources 0.1% Government-Wide Total Liabilities, Deferred Inflows of Resources and Total Net Position Current Liabilities 7% Deferred Inflows of Resources 2% Total Net Position 51% Noncurrent Liabilities 40% As noted earlier, net position may serve over time as a useful indicator of a government s financial position. The district s combined net position was less at June 30, 2013, than the year before, decreasing approximately 2% to $100.1 million. This decrease in the district s financial position came primarily from its governmental activities. This decrease is a result of investing in educational resources to support the continued academic growth and initiatives of the district to implement the Colorado State assessment system. The net position of the district s business-type activities (food services) increased $.3 million, which represents an increase of 14%. The primary increase in net position for the food services fund is attributed to an increase in an alternative approach to food preparation which resulted in savings in food supplies. Table 1 provides a summary of the district s net position at June 30, Page 21

33 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Table 2 Changes in Net Position from Operating Results For the Years Ended June 30, 2013 and 2012 Governmental Business-Type Activities Activities Total Revenues: Program Revenues Charges for Services $ 5,457,293 $ 4,593,404 $1,139,685 $1,192,002 $6,596,978 $ 5,785,406 Operating Grants 22,015,931 21,298,042 7,067,102 6,141,781 29,083,033 27,439,823 General Revenues Property Taxes 37,170,624 35,961, ,170,624 35,961,514 Specific Ownership Taxes 2,795,387 2,437, ,795,387 2,437,108 State Equalization 93,313,858 91,912, ,313,858 91,912,020 Investment Earnings 72, , , ,001 Other 2,232,838 2,193, ,232,838 2,193,806 Total Revenues 163,058, ,613,895 8,206,787 7,333, ,265, ,947,678 Expenses: Governmental Activities Instruction 81,884,496 77,036, ,884,496 77,036,400 Support Services 57,168,940 53,157, ,168,940 53,157,438 Payments to Charter Schools 22,758,184 19,399, ,758,184 19,399,551 Interest on Long-Term Debt 3,504,652 3,772, ,504,652 3,772,242 Business-Type Activities Food Service Operations - - 7,864,347 7,235,660 7,864,347 7,235,660 Total Expenses 165,316, ,365,631 7,864,347 7,235, ,180, ,601,291 Increases (Decreases) in Net Position (2,258,021) 5,248, ,440 98,123 (1,915,581) 5,346,387 Net Position Beginning, As Restated 99,517,782 94,631,372 2,519,560 2,421, ,037,342 97,052,809 Net Position Ending $ 97,259,761 $ 99,879,636 $2,862,000 $2,519,560 $ 100,121,761 $102,399,196 Property taxes and per pupil state formula revenue (state equalization) account for most of the district s revenue, contributing 22% and 54%, respectively. These revenues directly relate to the level of district enrollment. Another 17% of total revenues came from grants and contributions, and the remainder came from investment earnings, fees charged for services (rentals of facilities) and other miscellaneous sources (mineral rights). The district s expenses predominantly relate to instruction and support services, which include support for students and instructional staff, administration, operations and maintenance, and transportation. Given that Weld County School District 6 is a service organization providing educational services to students, the majority of the expenses are paid in the form of compensation (salaries and benefits) to the district s employees. Page 22

34 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Government-Wide Revenues Fiscal Year Ended June 30, 2013 Investment Earnings 0.1% Other 1.2% Charges for Services 4% Operating Grants and Contributions 17% State Equalization - Unrestricted 54.4% Local Property Taxes 21.7% Specific Ownership Taxes 1.6% Government-Wide Expenses Fiscal Year Ended June 30, 2013 Interest on Long- Term Debt Payments to Charter 2% Schools 13% Food Service Operations 5% Instruction 47% Supporting Services 33% Page 23

35 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Governmental Activities Key elements of the decrease in net position for governmental activities are as follows: At the end of the 2013 fiscal year, the net position of the governmental activities decreased by approximately $2.2 million or 2%. This decrease is attributed to the district investing in educational resources to support the continued academic growth and initiatives of the district to implement the Colorado State assessment system. State equalization aid increased by $1.4 million (2%) during the fiscal year, with property taxes increasing by $1.2 million (3%) during the year. The Colorado Public School Finance Act provides for the majority of the funding of local school districts based on a funded pupil count formula and a maximum property tax mill levy determined for each school district. Total governmental activities expenses increased by 8%. The increases in expenses are primarily attributed to additional certified staff hired to support the ongoing academic initiatives. Business Type Activities Business-type activities increased the district s net position. Key elements of business-type activities are as follows: The $.3 million increase in total net position is primarily due to the continued implementation to how the Nutrition Department prepares food. Two years ago, the district adopted a methodology of cooking from scratch which allowed for efficiencies in the operation, offered more healthy choices for the students and reduced the cost of cooking. The benefit of purchasing fresh produce from local vendors has yielded a substantial cost savings. Financial Analysis of the Government s Funds As noted earlier, the district uses fund accounting to ensure and demonstrate compliance with finance-related legal, federal and state requirements. Governmental Funds The focus of the district s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the district s financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. As noted below, details regarding the components of the fund balance summarize the fund balance available. As of the end of the current fiscal year, the district s governmental funds reported combined ending fund balances of $35.8 million, a decrease of $7.7 million. Approximately 38% of this total amount, $13.5 million constitutes unassigned fund balance. The remainder of fund balance is classified as follows Nonspendable Inventory in the amount of $5,614 and prepaid items of $132,133, which in total is.4% of total fund balances. Restricted The following fund balances have restricted uses and include TABOR ($4.2 million and 12% of fund balance), multi-year commitments ($.7 million and 2% of total fund balance) and debt service of $11 million (31%) of total fund balance. Additionally, the General Fund (which includes the Risk Management Fund and Preschool Fund), have fund balances which are limited in use by the Board of Education or program requirements. The fund balances were $.5 million each. Committed The General Fund includes an emergency reserve balance of $4.2 million. Assigned The Capital Projects Fund ended the year with a balance of $1.0 million (3%). Page 24

36 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 The general fund is the primary operating fund of the district. As mentioned above, at the end of the current fiscal year, unassigned fund balance of the general fund was $13.5 million, while the total fund balance was $23.8 million. As a measure of the general fund s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to the total fund expenditures. The unassigned fund balance represents 10% of the total general fund expenditures, while total fund balance represents 17% of that same amount. The fund balance of the district s general fund decreased by $5.7 million during the current fiscal year. This decrease is a result of investing in educational resources to support the continued academic growth and initiatives of the district to implement the Colorado State assessment system. The Debt Service Fund has a total fund balance of $11 million, all of which is restricted for the payment of debt service. The fund balance of the Debt Service Fund has adequate resources accumulated to carry forward to the 2014 fiscal year to fund the district s long-term debt principal and interest payments. The fund balance of the Capital Projects fund decreased by $3.1 million, for a total ending fund balance of $1.0 million. This decrease is associated with the addition of a significant lighting upgrade project at nineteen locations throughout the district, completion of two portable building projects by expanding Bella Romero and East Memorial Elementary schools, and upgrades to the technology data room, including the replacement of two chillers. Proprietary Fund s proprietary fund provides the same type of information found in the governmentwide financial statements, but in more detail. Unrestricted net position in the Food Service Fund was approximately $1.5 million at June 30, Factors concerning the finances of this fund have already been addressed in the discussion about the district s business-type activities. General Fund Budgetary Highlights All district budgets are prepared and adopted in accordance with Colorado school district budget law with annual appropriated budgets for each of the district s funds. Expenditures and adopted budgets are compared on a regular basis by the finance department to ensure that budgets are not exceeded at the fund level, which is the legal level of compliance. The 2013 fiscal year budget was adopted in June 2012, with additional appropriations authorized by the Board of Education prior to year-end. Final budgeted revenues increased slightly from original budgeted revenues, from $133.5 million to $135.8 million, due to increased state equalization and property tax revenues. Final budgeted expenditures increased from $138.7 million to $141.2 million due to an increase to benefit requirements and additional certified staff hired to support educational initiatives. Capital Assets The district s investment in capital assets for its governmental and business-type activities as of June 30, 2013, amounts to $134.5 million (net of accumulated depreciation). This investment in capital assets includes land, water rights, buildings, equipment, and construction in progress. The district s investment in capital assets for the current fiscal year decreased by.2% due to the impact of depreciation expense. Page 25

37 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 The following table summarizes the capital assets for governmental and business-type activities: Table 3 Capital Assets (net of accumulated depreciation) As of June 30, 2013 and 2012 Governmental Business-Type Activities Activities Total Land $ 7,360,767 $ 7,360,767 $ - $ - $ 7,360,767 $ 7,360,767 Water Rights 200, , , ,605 Construction in Progress 877, , , ,028 Buildings 121,531, ,424, , , ,377, ,290,021 Transportation Equipment 1,213, , ,213, ,690 Other Equipment 1,973,322 1,864, , ,990 2,464,573 2,215,532 Total Capital Assets $133,157,654 $ 133,514,489 $ 1,337,189 $ 1,216,154 $134,494,843 $ 134,730,643 Additional information on the district s capital assets can be found in Note 5 on pages of this report. Long-Term Debt Long-term debt principal totaled $78.12 million in general obligation bonds, with $6.6 million due in one year. Table 4 General Obligation Bonds As of June 30, 2013 and 2012 Total School District Governmental Activities: General Obligation Bonds $ 78,117,991 $ 75,960,000 Total Long-Term Debt $ 78,117,991 $ 75,960,000 The district s taxpayers approved, through election, a bond of $8.2 million to assist in the funding of a Building Excellent Schools Today (BEST) grant through the Colorado Department of Education. The grant will contribute $21 million to assist in the building of a new John Evans Middle School which is expected to cost $29.2 million. Colorado Revised Statute (C.R.S) states that a school district shall have a limit of bonded indebtedness determined by a specified formula. The district s outstanding debt is below the limit. At June 30, 2013, overall legal debt limit was $396 million with a legal debt margin of $329 million. The district maintains an AAAm rating from Standard & Poor s and Fitch Ratings and an Aaa rating from Moody s Investors Services. Additional information on the district s long-term obligations can be found in Note 7 on pages of this report. Factor s Bearing on the District s Future The district will be receiving approximately $6,494 per pupil (FTE basis) in , compared to the funding of $6,320 (as of the end of the fiscal year) per pupil. If the district was fully funded, as described by the School Finance Act, an additional $23.5 million to support student education would be available. Page 26

38 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 Fluctuations in student enrollment directly impact the financial resources the district uses to operate since the primary source of revenue is per pupil funding. District K-12 enrollment has been relatively stable for the past few years. However, the district has seen a growth in enrollment of approximately 100 students for the year. This is partially attributed to the expansion of University Schools. A November ballot question requests the approval of Amendment 66 by the residents of Colorado. The passing of this initiative will trigger the implementation of a new school finance formula, outlined in Senate Bill , a bill that increases transparency and accountability at the school level; addresses issues of fairness in funding and provides for the needs of individual students. The State of Colorado grant program, Building Excellent Schools Today (BEST), addresses safety hazards and health concerns in public school facilities, incorporates technology into the education environment, and supports the relief of overcrowding in the school environment. The BEST program assessed John Evans Middle School and indicated the cost of repairing the school almost equals the cost of total replacement. was selected as a recipient of the grant ($21 million), and the voters approved the required match taxpayer contribution of $8.2 million. The funds will be used to replace John Evans Middle School. Additionally, the district has been awarded a $1.5 million cash grant from BEST to be used for the renovation of Greeley West High School, including roof repairs and extensive removal of asbestos from the interior walls, floors and ceilings. The district will provide matching funds of approximately $420,000. The Strategic Plan - Reaching for Excellence will be expiring within the current year. As a result, the district is actively preparing for the next plan by meeting with various focus groups. The ENGAGE Online Academy which stands for Educating the Next Generation At Greeley-Evans. Through ENGAGE, students can take core academic classes in math, science, social studies, language arts, as well as computer technology classes and electives. The enrollment for the school year is expected to reach 100 students. Support Middle School reform efforts. The budget allocates additional funding for curriculum and other supports as the district works to improve academic achievement at its middle schools. The Success Foundation, a Colorado nonprofit corporation has been established for the purpose of supporting the students, staff and community involved with. This foundation is a legally separate entity created to secure and distribute contributions from individuals and businesses to enhance the educational opportunity of the students of the Greeley-Evans community. In the district created a Citizens Academy for community members in Greeley and Evans and will continue the committee again in The Academy is designed to educate interested citizens on the operation of the school district as well as have the opportunity to take tours of school, administrative and support service facilities. Additionally, presentations will be made with overviews of finance, administration, curriculum and instruction, facility maintenance, school management, student achievement results, bus service and student nutrition. The district continues the implementation of the new state assessment system. These changes impact statewide summative, alternate and English language proficiency assessments, in the next few years. Additionally, state-wide legislative academic requirements continue to be implemented. These include CAP4K (Colorado Achievement Plan for Kids), Read Act, School Readiness and Senate Bill Under state law, the district may contract with individuals and organizations for the operation of schools, referred to as charter schools, within the district. For purposes of the School Finance Act, pupils enrolled in a charter school in the district are included in the pupil enrollment of the district. Such charter schools are financed, in part, from a portion of the district s revenues received under the School Finance Act. The district is required to pay a charter school a certain percentage of per pupil revenues for each pupil enrolled in such charter school, less certain central administrative costs. The addition of new Page 27

39 MANAGEMENT S DISCUSSION AND ANALYSIS June 30, 2013 charter schools or expansion of existing charter schools could negatively impact the district s finances. In , University Schools expanded which increases their student enrollment by 425 additional students. Colorado s public school finance laws are subject to review and examination through the judicial process, and are subject to legislative changes as well. Appropriation decisions regarding the State s share of Total Program Funding are made on an annual basis by the State legislature. It is likely that the General Assembly may cut public school funding as part of overall State spending cuts in the future. As a result, the district cannot anticipate with certainty all of the factors which may influence the financing of its future activities. There is no assurance that there will not be any change in, interpretation of, or addition to the applicable laws (including but not limited to the School Finance Act), provisions, and regulations which would have a material effect, directly or indirectly, on the affairs of the district. The Public Employees Retirement Association (PERA) of Colorado, the pension plan that covers all district employees, will continue increasing employer contribution rates by 0.9% per year culminating in a rate of 20.15% by January The increase in contribution rates was enacted by the state legislature and the PERA Board in order to increase pension plan funding levels in relation to actuarial calculations. The annual increased costs will impact the district financially, and the district will need to consider the increase in annual budgets. Rising nationwide healthcare costs are a consideration as the district evaluates the benefits provided to employees. The district has a growing concern about how to manage increases in benefits costs that significantly exceed the increases in revenues from year to year. The district s Benefits Committee will continue to meet to discuss, analyze and recommend the level of benefits being offered to employees. The nation s economic situation continues to be a factor in the financial outlook of the district as it relates to federal funding resources. The district will continue to monitor potential impacts and incorporate anticipated changes into future year s operations. Requests for Information This financial report is designed to provide a general overview of the district s finances for all those with an interest in the district. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Finance Director,, th Avenue, Greeley, CO Page 28

40 Basic Financial Statements Financial statements presented in this section comprise the minimum combination of financial statements and note disclosures required for fair presentation in conformity with GAAP.

41

42 STATEMENT OF NET POSITION June 30, 2013 Primary Government Component Units Governmental Business-Type Charter Activities Activities Total Schools Assets Cash and Investments $ 34,638,827 $ 1,055,598 $ 35,694,425 $ 4,060,535 Cash and Investments - Restricted 1,021,010-1,021,010 8,495,444 Cash Held by Trustee 10,226,990-10,226,990 - Accounts Receivable 280, , ,991 Taxes Receivable 2,249,610-2,249,610 - Grants Receivable 3,745, ,261 4,382,469 - Other Receivables 326,785 39, ,450 - Inventories 5, , ,038 - Long Term Receivable 8,177,991-8,177,991 - Capital Assets, Not Being Depreciated 8,438,855-8,438,855 10,700,985 Capital Assets, Net of Accumulated Depreciation 124,718,799 1,337, ,055,988 31,669,686 Total Assets 193,830,497 3,173, ,003,634 55,037,641 Deferred Outflows of Resources Prepaid Expenses and Deposits 132, ,133 40,158 Deferred Bond Issue Costs, Net of Accumulated Amortization ,994 Total Deferred Outflows of Resources 132, , ,152 Total Assets and Deferred Outflows and Resources 193,962,630 3,173, ,135,767 55,778,793 Liabilities Accounts Payable 358,619 46, , ,044 Accrued Liabilities 377, , ,283 Accrued Salaries and Benefits 13,028,715 59,405 13,088,120 1,495,753 Other Payables 277, ,438 19,110 Due to Component Units 16,022-16,022 - Noncurrent Liabilities Due Within One Year 7,204,570 18,082 7,222,652 1,641,050 Due in More Than One Year 72,420, ,742 72,523,590 50,007,368 Total Liabilities 93,684, ,227 93,911,266 53,660,608 Deferred Inflows of Resources Unearned Revenues 3,018,830 83,910 3,102, ,693 Total Liabilities and Deferred Inflows and Resources 96,702, ,137 97,014,006 53,803,301 Net Position Invested in Capital Assets, Net of Related Debt 61,710,227 1,337,189 63,047,416 (9,277,748) Restricted Cash and Investments 1,021,010-1,021,010 - Restricted for Compensated Absences 1,802,831-1,802,831 - Restricted for Construction Expenditures ,561,194 Restricted for Debt Service 10,970,934-10,970,934 4,515,767 Restricted for TABOR 4,220,860-4,220, ,898 Restricted for Multi-Year Commitments 653, ,493 - Restricted for Risk Management 496, ,140 - Restricted for Preschool 491, ,944 - Restricted for Future Maintenance ,198 Unrestricted 15,892,322 1,524,811 17,417,133 2,446,183 Total Net Position $ 97,259,761 $ 2,862,000 $ 100,121,761 $ 1,975,492 The accompanying notes are an integral part of the basic financial statements. Page 29

43 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2013 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities: Instruction $ 81,884,496 $ 582,256 $ 11,448,200 $ - Supporting Services Student Support 7,974,868-3,702,541 - Instructional Staff Support 10,884,909-4,524,086 - General Administration 1,312, School Administration 9,178, ,913 - Business Services 2,174, ,025 43,802 - Operations & Maintenance 12,895, ,528 - Student Transportation 4,369,599-1,359,754 - Other Support 8,379,460 4,496,012 66,107 - Payments to Charter Schools 22,758, Interest on Long-Term Debt 3,504, Total Governmental Activities 165,316,272 5,457,293 22,015,931 - Business-Type Activities: Food Services 7,864,347 1,139,685 7,067,102 - Total Business-Type Activities 7,864,347 1,139,685 7,067,102 - TOTAL PRIMARY GOVERNMENT $ 173,180,619 $ 6,596,978 $ 29,083,033 $ - Component Units - Charter Schools $ 25,101,658 $ 908,272 $ 154,639 $ 532,574 General Revenues: Local Property Taxes Specific Ownership Taxes State Equalization - Unrestricted Investment Earnings Other Total General Revenues Change in Net Position Net Position - Beginning, as Restated Net Position - Ending The accompanying notes are an integral part of the basic financial statements. Page 30

44 Net (Expenses) Revenue and Changes in Net Position Primary Government Governmental Business-type Component Activities Activities Total Units $ (69,854,040) $ - $ (69,854,040) $ - (4,272,327) - (4,272,327) - (6,360,823) - (6,360,823) - (1,312,043) - (1,312,043) - (8,458,371) - (8,458,371) - (1,751,604) - (1,751,604) - (12,743,818) - (12,743,818) - (3,009,845) - (3,009,845) - (3,817,341) - (3,817,341) - (22,758,184) - (22,758,184) - (3,504,652) - (3,504,652) - (137,843,048) - (137,843,048) , , , ,440 - $ (137,843,048) $ 342,440 $ (137,500,608) $ - $ - $ - $ - $ (23,506,173) 37,170,624-37,170,624-2,795,387-2,795,387-93,313,858-93,313,858-72,320-72,320 98,327 2,232,838-2,232,838 23,494, ,585, ,585,027 23,592,806 (2,258,021) 342,440 (1,915,581) 86,633 99,517,782 2,519, ,037,342 1,888,859 $ 97,259,761 $ 2,862,000 $ 100,121,761 $ 1,975,492 The accompanying notes are an integral part of the basic financial statements. Page 31

45 BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2013 Non Major Special Revenue Fund Platte Valley Total Bond Capital Youth Services Governmental General Grants Redemption Projects Center Funds Assets Cash and Investments $ 32,319,608 $ - $ - $ 2,256,548 $ - $ 34,576,156 Cash and Investments - Restricted - - 1,021, ,021,010 Cash Held by Trustee ,226, ,226,990 Due From (To) Governmental Funds 1,429,325 (370,513) (860,883) - (197,929) - Accounts Receivable, Net 78,252 52,319-91,607 58, ,808 Taxes Receivable 1,665, , ,249,610 Grants Receivable - 3,745, ,745,208 Other Receivable 20, , ,484 Inventories 5, ,614 Total Assets 35,519,408 3,427,014 10,970,934 2,348, ,369 52,427,880 Deferred Outflows of Resources Prepaid Items 132, ,133 Total Assets and Deferred Outflows and Resources $ 35,651,541 $ 3,427,014 $ 10,970,934 $ 2,348,155 $ 162,369 $ 52,560,013 Liabilities Accounts Payable $ 177,556 $ 47,379 $ - $ 133,684 $ - $ 358,619 Accrued Liabilities 377, ,827 Accrued Salaries and Benefits 11,329,583 1,536, ,369 13,028,715 Due to Component Unit 16, ,022 Total Liabilities 11,900,988 1,584, , ,369 13,781,183 Deferred Inflows of Resources Unearned Revenues - 1,842,872-1,175,958-3,018,830 Total Liabilities and Deferred Inflows and Resources 11,900,988 3,427,014-1,309, ,369 16,800,013 Fund Balances Nonspendable: Inventory 5, ,614 Prepaid Items 132, ,133 Restricted for: TABOR 4,220, ,220,860 Multi-Year Commitments 653, ,493 Debt Service ,970, ,970,934 Risk Management Fund 496, ,140 Preschool Fund 491, ,944 Committed to: General Fund 4,220, ,220,860 Assigned to: Capital Projects Funds ,038,513-1,038,513 Unassigned 13,529, ,529,509 Total Fund Balances 23,750,553-10,970,934 1,038,513-35,760,000 TOTAL LIABILITIES AND FUND BALANCES $ 35,651,541 $ 3,427,014 $ 10,970,934 $ 2,348,155 $ 162,369 $ 52,560,013 The accompanying notes are an integral part of the basic financial statements. Page 32

46 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION June 30, 2013 Total fund balances - governmental funds $ 35,760,000 Amounts reported for governmental activities in the statement of net position are different because: Long term receivable is due to the district receiving bond proceeds which were advanced as matching funds for the BEST grant. This is the amount not included in the governmental funds. 8,177,991 Capital assets used in governmental activities are not financial resources and are not reported as assets in the governmental funds. The cost of capital assets is $ 197,570,533 Accumulated depreciation is 64,412, ,157,654 Internal service funds are used by the district's management to account for items relating to copier services. Assets and liabilities relating to these funds are included with governmental activities. This is the amount of cash and investments included in internal service funds not included in the governmental funds. 66,972 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of: Bonds Payable, net of premiums and deferred charges $ (77,498,314) Capital lease obligation (324,273) Accrued interest payable (277,438) Compensated absences (1,802,831) (79,902,856) Net Position of Governmental Activities $ 97,259,761 The accompanying notes are an integral part of the basic financial statements. Page 33

47 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN NET POSITION GOVERNMENTAL FUNDS For the Year Ended June 30, 2013 Non Major Special Revenue Fund Platte Valley Total Bond Capital Youth Services Governmental General Grants Redemption Projects Center Funds Revenues Local Sources $ 36,088,561 $ 580,607 $ 10,636,480 $ 538,563 $ 462,681 $ 48,306,892 State Sources 99,100,906 1,337, , ,061,902 Federal Sources - 13,360, ,360,726 Total Revenues 135,189,467 15,278,589 10,636, ,563 1,086, ,729,520 Expenditures Current Instruction 72,767,923 7,883, ,142 81,645,951 Supporting Services Student Support Services 6,080,439 1,755,268-35, ,653 7,974,868 Instructional Staff Support Services 6,322,848 4,524, ,975 10,884,909 General Administration Services 1,297, ,834-1,312,043 School Administration Services 8,249, , ,320 9,178,284 Business Services 2,073,654 43, ,117,456 Operations & Maintenance 10,615, , ,766,561 Student Transportation 4,275,629 93, ,369,599 Other Support Services 5,818,798 36, ,818-6,098,723 Capital Outlay 436,563 70,029-3,299,586-3,806,178 Payments Made to Charter Schools Union Colony Preparatory School 2,709, ,709,003 Union Colony Elementary School 2,327, ,327,815 University Schools 8,098, ,098,559 Frontier Academy 8,419, ,419,720 West Ridge Academy 1,203, ,203,087 Debt Service Principal - - 6,020, ,020,000 Interest and Fiscal Charges - - 3,525, ,525,653 Total Expenditures 140,695,331 15,278,589 9,545,653 3,593,746 1,345, ,458,409 Excess of revenues over (under) expenditures (5,505,864) - 1,090,827 (3,055,183) (258,669) (7,728,889) Other Financing Sources (Uses) Other Financing Sources-Capital Leases 17, ,720 Transfers In , ,669 Transfers Out (258,669) (258,669) Total Other Financing Sources (240,949) ,669 17,720 Net Changes in Fund Balance (5,746,813) - 1,090,827 (3,055,183) - (7,711,169) Fund Balance, Beginning 29,497,366-9,880,107 4,093,696-43,471,169 Fund Balance, Ending $ 23,750,553 $ - $ 10,970,934 $ 1,038,513 $ - $ 35,760,000 The accompanying notes are an integral part of the basic financial statements. Page 34

48 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2013 Total net change in governmental funds fund balances $ (7,711,169) Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital expenditures ($3,806,178) is less than depreciation expense and loss on disposal of assets ($4,163,013). (356,835) Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 6,020,000 Internal service funds are used by the district's management for copier services. Amount is change in net position of the fund net of changes relating to capital outlay considered above. 80,748 In the statement of activities, certain operating expenses, such as employee compensated absences, are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used. (194,577) Governmental funds report the effect of premiums and other deferred charges when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of premiums ($353,578) and amortization of deferred amount on refunding ($453,301). (99,723) Accrued interest payable was recognized for governmental activities, but is not due and payable in the current period and therefore is not reported as a liability in the governmental funds. 3,535 Change in Net Position of Governmental Activities $ (2,258,021) The accompanying notes are an integral part of the basic financial statements. Page 35

49 STATEMENT OF NET POSITION Proprietary Fund June 30, 2013 Business-Type Activities Enterprise Fund Food Service Assets Current Assets Cash and Investments 1,055,598 Governmental Activities Internal Service Fund Copier Service $ $ 62,671 Grants Receivable 637,261 - Other Accounts Receivable 39,665 4,301 Inventories 103,424 - Total Current Assets 1,835,948 66,972 Noncurrent Assets Capital Assets, Net of Accumulated Depreciation 1,337, ,077 Total Assets $ 3,173,137 $ 354,049 Liabilities Current Liabilities Accounts Payable $ 46,998 $ - Accrued Salaries and Benefits 59,405 - Accrued Compensated Absences 18,082 - Capital Lease Obligation - 140,598 Total Current Liabilities 124, ,598 Noncurrent Liabilities Accrued Compensated Absences 102,742 - Lease Obligations - 183,675 Total Liabilities 227, ,273 Deferred Inflows of Resources Unearned Revenues 83,910 - Total Liabilities and Deferred Inflows and Resources $ 311,137 $ 324,273 Net Position Invested in Capital Assets, net of related debt 1,337,189 (37,196) Unrestricted 1,524,811 66,972 Total Net Position 2,862,000 29,776 Total Liabilities and Net Position $ 3,173,137 $ 354,049 The accompanying notes are an integral part of the basic financial statements. Page 36

50 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Proprietary Fund For the Year Ended June 30, 2013 Business-Type Activities Governmental Activities Enterprise Fund Internal Service Fund Food Copier Service Service Operating Revenues Student and Faculty Food Sales $ 1,139,685 $ - User Charges - 275,706 Other Local Revenue - 53,025 Total Operating Revenues 1,139, ,731 Operating Expenses Salaries 2,459,445 - Employee Benefits 940,233 - Purchased Services 149, ,368 Food Commodities 387,532 - Supplies and Materials 3,476,647 49,577 Non-Capital Equipment 32,961 8,049 Depreciation 64, ,538 Indirect Costs 326,000 - Other Objects and Uses 27,778 15,189 Total Operating Expenses 7,864, ,721 OPERATING INCOME (LOSS) (6,724,662) (44,990) Nonoperating Revenues State Sources State Match 67,098 - State Smart Breakfast 31,140 - State Lunch Program 22,847 - Colorado Health Foundation 73,419 Federal Sources School Lunch Program 4,241,398 - Breakfast Program 1,891,689 - Summer Food Program 113,021 - Fresh Fruit/Vegetable 195,140 - Farm to School 43,818 Food Commodities 387,532 - Total Nonoperating Revenues 7,067,102 - Change in Net Position 342,440 (44,990) Net Position - Beginning 2,519,560 74,766 Net Position - Ending $ 2,862,000 $ 29,776 The accompanying notes are an integral part of the basic financial statements. Page 37

51 STATEMENT OF CASH FLOWS Proprietary Funds For the Year Ended June 30, 2013 Business-Type Activities Governmental Activities Enterprise Fund Internal Service Fund Food Copier Service Service Cash Flows from Operating Activities Cash Received From Operations $ 1,139,685 $ 324,430 Cash Paid to Suppliers (4,369,629) (230,263) Cash Paid to Employees (3,394,358) - Net Cash (Used) Provided By Operating Activities (6,624,302) 94,167 Cash Flows from Noncapital Financing Activities Cash Received from Federal Programs 6,048,406 - Cash Received from State Programs 154,839 - USDA Donated Commodities 387,532 - Net Cash Provided By Noncapital Financing Activities 6,590,777 - Cash Flows from Capital and Related Financing Activities Acquisition of Capital Assets (185,588) - Principal Payments on Capital Lease Obligations - (134,909) Net Cash from Capital and Related Financing Activities (185,588) (134,909) Net Decrease in Cash and Cash Equivalents (219,113) (40,742) Cash and Cash Equivalents - Beginning 1,274, ,413 Cash and Cash Equivalents - Ending $ 1,055,598 $ 62,671 Reconciliation of Operating (Loss) to Net Cash (Used) Provided by Operating Activities Operating (Loss) $ (6,724,662) $ (44,990) Adjustments to reconcile operating (loss) to net cash (used) provided by operating activities Depreciation 64, ,538 (Increase) Decrease in Inventories (14,765) - Increase (Decrease) in Accounts Payable 45,252 (80) Increase (Decrease) in Accrued Salaries and Benefits (9,882) - Increase (Decrease) in Accrued Compensated Absences 15,202 - Total Adjustments 100, ,458 Net Cash (Used) Provided By Operating Activities $ (6,624,302) $ 98,468 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES USDA Donated Commodities $ 387,532 $ - $ 387,532 $ - Equipment Acquired through Assumption of Debt $ - $ 17,720 $ - $ 17,720 The accompanying notes are an integral part of the basic financial statements. Page 38

52 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS June 30, 2013 Agency Assets Cash and Investments $ 1,320,752 Total Assets 1,320,752 Liabilities Accrued Liabilities Due to Third Parties $ 11,340 Due to Student Groups 1,309,412 Total Liabilities $ 1,320,752 The accompanying notes are an integral part of the basic financial statements. Page 39

53 COMBINING STATEMENT OF NET POSITION COMPONENT UNITS June 30, 2013 Union Union Colony Colony Frontier West Ridge Total Elementary Preparatory Academy University Academy Component School School Charter Schools Charter Units Assets Cash and Investments $ 436,836 $ 403,162 $ 1,569,172 $ 1,508,923 $ 142,442 $ 4,060,535 Restricted Cash and Investments 729, ,168 1,526,061 5,679,802 30,002 $ 8,495,444 Accounts Receivable 45,753-32,049 33,189 - $ 110,991 Capital Assets, Not Being Depreciated 618, ,778 1,398,334 8,247,776 - $ 10,700,985 Capital Assets, Net of Accumulated Depreciation 5,300,844 4,282,182 9,969,180 11,983, ,511 $ 31,669,686 Total Assets 7,130,941 5,652,290 14,494,796 27,453, ,955 55,037,641 Deferred Outflows of Resources Prepaid Expenses and Deposits 16,764 15,043 2,705-5,646 40,158 Deferred Bond Issue Costs, Net of Accumulated Amortization 115, , , ,994 Total Assets and Deferred Outflows of Resources 7,262,890 5,857,350 14,893,293 27,453, ,601 55,778,793 Liabilities Accounts Payable and Accrued Expenses - 4, ,794 27,779 15, ,044 Accrued Salaries and Benefits 205, , , ,176 4,369 1,495,753 Accrued Interest Payable 137,347 23,072 52,361 95, ,283 Other Payables ,110 19,110 Noncurrent Liabilities Due within one year 75,000 85, , ,000 61,050 1,641,050 Due in more than one year 7,185,000 4,613,358 12,788,419 25,420,591-50,007,368 Total Liabilities 7,603,280 4,960,401 14,407,129 26,590,049 99,749 53,660,608 Deferred Inflows of Resources Unearned Revenue ,923 43, ,693 Total Assets and Deferred Inflows of Resources 7,603,280 4,960,401 14,506,052 26,633,819 99,749 53,803,301 Net Position Invested in Capital Assets, Net of Related Debt (1,341,060) 20,602 (2,335,905) (5,693,846) 72,461 (9,277,748) Restricted for Emergencies 72,965 83, , ,226 35, ,898 Construction Expenditures ,561,194-3,561,194 Debt Service 592, ,898 1,473,700 2,023,105-4,515,767 Future Maintenance - 80, ,198 Unrestricted 335, ,794 1,010, , ,851 2,446,183 Total Net Position $ (340,390) $ 896,949 $ 387,241 $ 819,840 $ 211,852 $ 1,975,492 The accompanying notes are an integral part of the basic financial statements. Page 40

54 COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For the Year Ended June 30, 2013 Net (Expense) Program Revenues Revenue Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Total Union Colony Elementary School Instruction $ 1,404,680 $ - $ - $ - $ (1,404,680) Supporting Services Pupil and Instruction 250, (250,988) General Administration 442, (442,284) School Administration 21, (21,031) Business Services 20, (20,348) Maintenance and Operations 241, ,209 5,997 Other Supporting Services 122, (122,774) Interest on Long-Term Debt 429, (429,358) Total - Union Colony Elementary School 2,932, ,209 (2,685,466) Union Colony Preparatory School Instruction 1,512, (1,512,470) Supporting Services Pupil and Instruction 286, (286,414) General Administration 436, (436,406) School Administration 18, (18,793) Business Services 1, (1,209) Maintenance and Operations 176, ,698 (138,874) Transportation 14, (14,000) Other Supporting Services 69, (69,669) Interest on Long-Term Debt 266, (266,225) Total - Union Colony Preparatory School 2,781, ,698 (2,744,060) Frontier Academy Charter Instruction 6,166, ,340 72,197 - (5,431,346) Supporting Services 2,273, ,873 (2,156,741) Interest on Long-Term Debt 653, (653,664) Total - Frontier Academy Charter 9,094, ,340 72, ,873 (8,241,751) University Schools Instruction 5,296, ,297 62,318 - (5,001,088) Supporting Services 2,120, ,006 (2,007,580) Unallocated Depreciation 342, (342,962) Debt Issuance Costs 230, (230,850) Interest on Long-Term Debt 1,184, (1,184,118) Total - University Schools 9,175, ,297 62, ,006 (8,766,598) West Ridge Academy Charter Instruction 556,045 11,635 20,124 17,788 (506,498) Supporting Services 546, (546,088) Interest Expense 15,712 (15,712) Total - West Ridge Academy Charter 1,117,845 11,635 20,124 17,788 (1,068,298) Total Charter Schools 25,101, , , ,574 (23,506,173) Union Colony Elementary School Union Colony Preparatory School Frontier Academy Charter University Schools West Ridge Academy Charter Total Net (Expense) Revenue (2,685,466) (2,744,060) (8,241,751) (8,766,598) (1,068,298) (23,506,173) General Revenues: Per Pupil Operating Revenue 2,449,365 2,836,479 8,419,720 8,098,559 1,273,991 23,078,114 Investment Earnings 2,436 11,936 3,009 80,946-98,327 Other 28,999 10,401 53, ,671 4, ,365 Total General Revenues 2,480,800 2,858,816 8,476,137 8,498,176 1,278,877 23,592,806 Change in Net Position (204,666) 114, ,386 (268,422) 210,579 86,633 Net Position - Beginning of Year (135,724) 782, ,855-1, ,597 Net Position - Beginning of Year, as Restated ,088,262-1,088,262 Net Position - Ending $ (340,390) $ 896,949 $ 387,241 $ 819,840 $ 211,852 $ 1,975,492 The accompanying notes are an integral part of the basic financial statements. Page 41

55 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of (the district) have been prepared in conformity with generally accepted accounting principles (GAAP) as applicable to governmental units. In addition, the district conforms to the Colorado Financial Policies and Procedures Handbook in all material aspects as required by Colorado statutes. The following is a summary of the district s significant accounting policies. Reporting Entity is a political subdivision of the State of Colorado governed by an elected sevenmember Board of Education. The district is the primary government financially accountable for all activities of public school instruction within the geographical area organized as, Greeley-Evans, Colorado. The district meets the criteria of a primary government in that the Board of Education is the publicly elected governing body, it is a legally separate entity, and it is fiscally independent. meets the financial accountability criteria established by the Governmental Accounting Standards Board to be considered a governmental entity for financial reporting purposes. As required by generally accepted accounting principles, these financial statements present the primary government and its component units. Component units are legally separate organizations that are financially accountable to the primary government. The component units have been included in the district s financial reporting entity because of the significance of their operational or financial relationship with the district. Discretely Presented Component Unit Charter Schools The Legislature of the State of Colorado enacted the Charter School Act Colorado Revised Statutes (CRS) Section in This Act permits the district to contract with individuals and organizations for the operation of schools within the district. The statutes define these contracted schools as Charter Schools. Charter schools are financed from a portion of the district s School Finance Act revenues and from revenues generated by the charter schools, within the limits established by the Charter School Act. Charter schools have separate governing boards; however, s Board of Education must approve all charter school applications and budgets. There are five charter schools in the district: Frontier Academy, University Schools, Union Colony Preparatory School, Union Colony Elementary School, and West Ridge Academy. The charter schools are discretely presented component units because of the significance of their financial relationship with the district. The Charter schools have issued separate financial statements for the fiscal year ended June 30, Complete financial statements for each of the discretely presented component units may be obtained at each entity s administrative offices as listed below. Frontier Academy University Schools 2560 W 29 th Street th Street Greeley, CO Greeley, CO Union Colony Preparatory School West Ridge Academy 2000 Clubhouse Drive 6200 West 20 th Street Greeley, CO Greeley, CO Union Colony Elementary School th Street Road Evans, CO Page 42

56 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the district and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the district is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to students or other customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Separate financial statements are provided for governmental funds, a proprietary fund, and fiduciary funds, even though the latter are excluded from the district s government-wide financial statements. Major individual funds are reported in separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The agency fund financial statements are reported using the accrual basis of accounting. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the district s governmental and business-type activities and component units. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The district has elected not to follow subsequent private-sector guidance. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance as a measure of available spendable resources. This means that only current assets and current liabilities are generally included on their balance sheets. Page 43

57 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Measurement Focus, Basis of Accounting, and Financial Statement Presentation - continued Governmental fund revenues are recognized as soon as they are both measureable and available. Measurable means that the amount of the transaction can be determined. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues are considered to be available when they are collected within 60 days after year-end. Property taxes and specific ownership taxes are reported as receivables and deferred revenue when levied and as revenues when due for collection in the following year and determined to be available. Grants and entitlement revenues are recognized when compliance with matching requirements is met. A receivable is established when the related expenditures exceed revenue earned. Expenditures are recorded when the related fund liability is incurred with the exception of general obligation debt service, which is recognized when due, as well as expenditures related to compensated absences, which are accounted for as expenditures in the year the payment is due. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund s ongoing operations. The principal operating revenues of the district s proprietary fund are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the district s policy to use restricted resources first, then unrestricted resources as they are needed. Fund Accounting The accounts of the district are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The major funds presented in the accompanying basic financial statements are as follows: Major Governmental Funds General Fund: The General Fund is the district s primary operating fund. It accounts for all financial resources of the district, except those required legally or by sound financial management to be accounted for in another fund. Special Revenue Fund Designated Special Purpose Grants: The Designated Special Purpose Grants Fund is used to account for financial resources related to federal, state and local grant awards. Debt Service Fund Bond Redemption Fund: The Debt Service Fund accounts for the resources accumulated and payments made for principal, interest, and related costs of long-term general obligation debt of governmental funds. Capital Projects Capital Projects Fund: The Capital Projects Fund is used to account for revenues assigned for ongoing capital needs such as site acquisition, building additions and equipment purchases. Page 44

58 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued Fund Accounting continued Major Proprietary Funds Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges. Enterprise funds are considered major funds because of community interests in the activities and sources of funding supporting these operations. Enterprise Fund Food Service: The Food Services Fund accounts for all financial activities associated with the district s school breakfast and lunch programs. Non-Major Funds Non-Major Special Revenue Fund Platte Valley Youth Services Center: This fund accounts for the activities of the Platte Valley Youth Services Center, which is operated on behalf of the District and other districts within the State. Non-Major Internal Service Fund Copier Services Fund: The Copier Services Fund is used to provide copier and printing services for schools and departments. Agency Funds Fiduciary Funds: The Agency Funds are used to account for resources used to support each school s student and fundraising activities. The district holds all resources in a purely custodial capacity. Budgets and Budgetary Accounting Annual budgets are established for all funds of the district as required by Colorado statutes. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. Authorization to transfer budget amounts between programs and/or departments within any fund and the reallocation of budget line items within any program and/or department rests with the Superintendent. Revisions that alter the total expenditures of any fund must be approved by the Board of Education. Colorado law allows the Board of Education to review and change the budget at any time prior to January 31 of the fiscal year for which the budget was adopted. A supplemental budget may also be adopted if a school district is authorized to raise and expend local property tax revenues at a November election. Other amendments to the budget are allowed by law if money for specific purposes from other than ad valorem taxes subsequently becomes available. Budget amounts included in the financial statements are based on the final budget as adopted by the Board of Education in January Original budgets for all funds were adopted by the Board of Education in June Budget appropriations lapse at the end of each fiscal year. The following is a summary of the significant dates and procedures used in establishing budgeted data reflected in the financial statements. On or before June 1, the Superintendent submits to the Board of Education a proposed budget for the succeeding fiscal year. The budget includes proposed expenditures and the means of financing them. Within ten days after submission of the proposed budget, public notice is published stating the time and place of public hearing(s) to be conducted to obtain taxpayer comments on the budget prior to adoption. Page 45

59 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Budgets and Budgetary Accounting - continued On or before June 30, the budget is adopted by formal resolution. On or before January 31, any changes to the budget are adopted by formal resolution. November 10, pupil count information is provided by school districts to the Colorado Department of Education, for use in determining the state funding level for the current fiscal year. December 15, school districts certify to county commissioners, copied to CDE, the mill levies for the various property tax-supported funds for the district. Cash and Investments The district maintains accountability for each fund s equity in pooled cash and investments. Interest earnings for combined deposits are generally distributed based on monthly cash balances. All pooled cash investments are considered cash equivalents for accounting purposes. All investments are reported at fair market value. Receivables Property taxes are levied on December 15. Property taxes are payable in full by April 30, or in two equal installments due February 28 and June 15. The County bills and collects property taxes for all taxing districts within the County. Property tax receipts are remitted to the district in the subsequent month. Delinquent property taxes are subject to the sale of tax certificates in the following November. Property taxes levied in the current year but not received at year-end are identified as property taxes receivable. All trade and property tax receivables are shown net of an estimated allowance for uncollectible amounts, where considered necessary by management of the district. Inventories and Prepaid Items Inventories consist of food and non-food items in the Food Service (Enterprise) Fund and expendable supplies in the warehouse (General Fund). Inventories purchased are valued at cost using the weighted average method. The United States Department of Agriculture (USDA) donates food commodities to the district which are valued at estimated fair market value at the date of receipt. USDA commodities are recorded as both non-operating revenue and an operating expense when consumed. Commodities on hand are included in inventory and are reported as unearned revenue. All other inventory items are recorded as operating expenses when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, vehicles and equipment, are utilized for district operations and are capitalized at actual or estimated cost. Donations of such assets are recorded at estimated fair value at the time of donation. Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Maintenance, repairs, and minor renovations are recorded as expenditures when incurred. Major additions and improvements are capitalized. When assets used in the operation of the governmental fund types are sold, the proceeds of the sale are recorded as revenues in the appropriate fund. The district does not capitalize interest on the construction of capital assets. Page 46

60 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Capital Assets - continued The monetary threshold for capitalization of assets is $500 for technology equipment and $5,000 for all other capital assets. Depreciation of all capital assets used in governmental activities and by proprietary funds is charged as an expense against their operations. Depreciation is recorded starting in the month the asset is placed in service. Property and equipment of the district is depreciated using the straight line method over the following estimated useful lives. Buildings Site Improvements Transportation Vehicles Equipment 50 years 5 to 20 years 8 years 5 to 20 years Employee Compensated Absences The liability and expense for unpaid vacation (employee compensated absences) is recorded when the vacation leave is earned in the proprietary fund and the district-wide financial statements. The governmental funds record expenditure for unpaid vacation leave only to the extent of the expected liquidation of unpaid vacation in current operations. This expected liquidation occurs for compensated absences which have matured, such as when an employee resigns or retires. The amounts recorded as liabilities for all compensated absences include salaryrelated payments associated with the payment of compensated absences, using the rates in effect at the balance sheet date. District policy allows unlimited accumulation of sick leave and an accumulation of vacation to a maximum of 30 days for classified and 45 days for administrative staff. Payment for unused sick is made upon meeting eligibility requirements at the rate of 35 percent of the current substitute pay for each eight hours of unused sick leave for employees with 400 hours of accumulated sick leave. Long-Term Liabilities In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable government activities, business-type activities, or proprietary fund type statement of net position. Bond premiums, discounts and other deferred charges are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount and deferred charges. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as an other financing source. Premiums and discounts received on debt issuance are reported as other financing sources or uses. Issuance costs whether or not withheld from the actual debt proceeds received are reported as debt service expenditures. Fund Balance As of June 30, 2013, fund balances of the governmental funds are classified as follows: Nonspendable amounts that cannot be spent either because they are not spendable in form or because they are legally or contractually required to be maintained intact. Page 47

61 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued Fund Balance - continued Restricted amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grants, contributors, or laws and regulations of other governments; or through constitutional provision or enabling legislation. Committed amounts that are subject to a purpose constraint imposed by a formal action of the Board of Education. The Board of Education is the highest level of decision-making authority for the district. Commitments may be established, modified or rescinded only through resolutions approved by the Board of Education. Weld County School District 6 s Board of Education has established a reserve in excess of the required TABOR emergency reserve. Assigned amounts that are subject to a purpose constraint that represents an intended use established by the district in its budget process. The purpose of the assignment must be narrower than the purpose of the General Fund, and in funds other than the General Fund, assigned fund balance represents the residual amount of fund balance. For the General Fund, amounts constrained for the intent to be used for a specific purpose has been delegated to the Chief Financial Officer. Unassigned represents the residual classification for the district s General Fund and could report a surplus or deficit. The details of the fund balances are included in the Governmental Funds Balance Sheet. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the district considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned or unassigned fund balances are available, the district considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Board of Education has provided otherwise in its commitment or assignment actions. Reconciliation of Government-Wide and Fund Financial Statements The governmental funds balance sheet includes reconciliation between fund balances total governmental funds and net position - governmental activities as reported in the government-wide statement of net position. Additionally, the governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net change in fund balances total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. These reconciliations detail items that require adjustments to convert from the current resources measurement and modified accrual basis for government fund statements to the economic resources measurement and full accrual basis used for government-wide statements. However, certain items having no effect on measurement and basis of accounting were eliminated from the governmental fund statements during the consolidation of governmental activities. Recent Accounting Pronouncements The Governmental Accounting Standards Board (GASB) has issued statement 68, Accounting and Financial Reporting for Pensions which revises and establishes new financial reporting requirements for most governments that provide their employees with pension benefits. The District provides its employees with pension benefits through a multiple employer cost-sharing defined benefit retirement program, the Public Employees Retirement Association of Colorado (PERA), as further discussed in NOTE 10. Statement 68 requires employers participating in the PERA program to record their proportionate share of PERA s unfunded pension liability. The District has no legal obligation to fund this shortfall nor does it have any ability to affect funding benefits, investment, or annual contribution decisions made by PERA. The requirements of GASB 68 will have a negative impact on the net assets of the District after the provisions of the statement are implemented. Statement 68 is effective for fiscal years beginning after December 15, At this time, the Page 48

62 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued Recent Accounting Pronouncements - continued District is unable to estimate the magnitude of the impact of this statement. Information regarding PERA s unfunded obligations can be obtained from the PERA website or its. NOTE 2 RESTATEMENT OF FUND BALANCE The GASB has issued GASB statement 65, Items Previously Reported as Assets and Liabilities which addresses certain classification of assets and liabilities. The statement concludes that debt issuance costs should be recognized as expense in the period incurred. GASB 65 is effective for fiscal years beginning after December 15, The district chose early implementation of GASB 65 and has written off its previously incurred net unamortized deferred bond issuance costs to the beginning fund balance. The following table accounts for the impact of the implementation of this standard in the statement of revenues, expenditures and changes in fund balance government funds: Net position at June 30, 2012 As Previously Stated Write-Off of Deferred Bond Issuance Costs, Net of Accumulated Amortization As Restated $ 99,879,636 $ 361,854 $ 99,517,782 NOTE 3 CASH AND INVESTMENTS As of June 30, 2013 deposits and investments were reported in the financial statements as follows: Governmental Activities $ 45,886,827 Business-Type Activities 1,055,598 Fiduciary Funds 1,320,753 Total $ 48,263,178 Cash and investments at June 30, 2013, consisted of the following: Cash and Investments $ 37,015,178 Cash Held by Trustee 10,226,990 Restricted Cash and Investments 1,021,010 If a fund overdraws its share of pooled cash, the overdraft is reported as an interfund receivable in the General Fund and an offsetting interfund payable in the overdrawn fund. Deposits Total $ 48,263,178 The Colorado Public Deposit Protection Act (PDPA) of Colorado requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the deposits. At June 30, 2013, the district had bank deposits of $10,639,409 Page 49

63 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 3 CASH AND INVESTMENTS - continued Deposits - continued collateralized with securities held by the financial institutions agents but not in the district s name. Cash with trustee is restricted for use on bond payments which was $5,739,236. Investments The district is required to comply with State statutes which specify investment instruments meeting defined rating, maturity, and concentration risk criteria in which local governments may invest, which include the following: Custodial Credit Risk Obligations of the United States and certain U.S. government agency securities Certain international agency securities General obligation and revenue bonds of U.S. local government entities Bankers acceptances of certain banks Commercial paper Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts Local government investment pools Custodial credit risk 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 investments or collateral securities that are in the possession of an outside party. This type of risk is minimized by limiting investments to the types of securities allowed by State law, and by prequalifying the financial institutions, broker/dealers, intermediaries and advisors with which the district will do business using the criteria established in the investment policy. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The district s investment policy is to invest in accordance with state law; the district does not further limit its investment choices. At year end, the maturities of investments and the credit quality ratings are as follows: Maturity Investment Market Value % of Portfolio 12 Months or Less 13 to 24 Months 25 to 36 Months 37 to 48 Months 49 to 60 Months Rating Rating Organization Gov t Investment Pool COLOTRUST $ 3,456, % $ 3,456, AAAm S&P Gov t Investment Pool CSAFE 2,483, % 2,483, AAAm S&P US Treasury Bill 1,403, % 1,403, AAA S&P Federal National Mortgage Assoc 6,688, % 3,013, ,934-2,683,886 AA+/Aaa S&P/Moody s Federal Farm Credit Banks 5,248, % - 5,248, AA+/Aaa S&P/Moody s Federal Home Loan Banks 10,130, % 3,084,105 3,067,252 1,505, ,908 1,492,769 AA+/Aaa S&P/Moody s Federal Home Loan Mortgage Corp 2,001, % - 2,001, AA+/Aaa S&P/Moody s Apple, Inc. 1,236, % - - 1,236, AA+/Aa1 S&P/Moody s General Electric Capital Corp 1,248, % - - 1,248, AA+/Aa3 S&P/Moody s Total $ 33,897, % $13,441,198 $10,317,600 $4,980,725 $980,908 $4,176,655 Interest Rate Risk As a means of limiting exposure to fair value losses arising from interest rates, state law limits maturities to five years or less, unless the Board of Education specifically authorizes longer maturities. The district policy is to follow the state law. Concentration of Credit Risk The district has no policy that would limit the amount that may be invested with any one issuer; however, the district s investment policy calls for investment diversification within the portfolio to avoid unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Page 50

64 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 3 CASH AND INVESTMENTS - continued Local Government Investment Pools At June 30, 2013, the district had $2,483,429 and $3,456,562 invested in the Colorado Surplus Asset Fund Trust (CSAFE) and the Colorado Local Government Liquid Asset Trust (Colotrust), respectively (collectively referred to as the Pools ). The Pools are investment vehicles established for local governmental entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces the requirements of creating and operating the Pools. The Pools operate similarly to a money market fund with each share equal in value to $1.00. The Pools are rated AAAm by Standard & Poor s. Investments of the Pools are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian s internal records identify the investments owned by the participating governments. Restricted Cash and Investments Cash and investments of $1,021,010, representing unspent bond proceeds, have been restricted for capital projects in the Bond Redemption Fund. Cash Held by Trustee The district entered into a forward delivery agreement (See Note 11) that required the district to deposit its restricted debt service with JPMorgan Chase Bank. At June 30, 2013, JPMorgan Chase Bank had $3,085,000 on deposit, which is available for future debt service of the district. NOTE 4 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Transfers are used to: 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, or 2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorization. Transfers during the fiscal year were as follows: Due to/from Other Funds Receivable Fund Payable Fund Amount General Fund Designated Special Purpose Grants Fund $ 370,513 General Fund Bond Redemption Fund 860,883 General Fund Platte Valley Youth Services Fund 197,929 Total $ 1,429,325 Due to/from Primary Government and Component Units Receivable Entity Payable Entity Amount Primary Government General Fund Component Unit West Ridge Academy Charter $ 10,657 Component Unit Frontier Academy Charter Primary Government General Fund 16,022 Total $ 26,679 Transfers Government Fund Types Fund Type Transfers To Transfers From General General Fund $ - $ 258,669 Non-major special revenue Platte Valley Youth Services Fund 258,669 - Total $ 258,669 $ 258,669 Page 51

65 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 5 CAPITAL ASSETS Capital asset activity for the year ended June 30, 2013 is summarized below: Balances Balances 6/30/2012 Additions Deletions Transfers 6/30/2013 GOVERNMENT ACTIVITIES Capital Assets, Not Being Depreciated: Land $ 7,360,767 $ - $ - $ - $ 7,360,767 Water Rights 200, ,605 Construction in Progress 829,028 2,154,888 - (2,106,433) 877,483 Total Capital Assets, Not Being Depreciated 8,390,400 2,154,888 - (2,106,433) 8,438,855 Capital Assets, Being Depreciated: Buildings 172,666, ,593-1,752, ,152,506 Transportation Equipment 7,297, ,510 (42,723) - 7,954,711 Other Equipment 5,452, , ,025 6,024,461 Total Capital Assets, Being Depreciated 185,416,678 1,651,290 (42,723) 2,106, ,131,678 Less Accumulated Depreciation For: Buildings (50,241,648) (3,379,046) - - (53,620,694) Transportation Equipment (6,463,234) (320,535) 42,723 - (6,741,046) Other Equipment (3,587,707) (463,432) - - (4,051,139) Total Accumulated Depreciation (60,292,589) (4,163,013) 42,723 - (64,412,879) Total Capital Assets Being Depreciated, Net 125,124,089 (2,511,723) - - 2,106, ,718,799 Governmental Activities Capital Assets, Net $133,514,489 $ (356,835) $ - $ - $133,157,654 BUSINESS-TYPE ACTIVITIES Capital Assets, Being Depreciated: Building Improvements $ 961,294 $ - $ - $ - $ 961,294 Equipment 1,400, , ,586,330 Total Capital Assets, Being Depreciated 2,362, , ,547,624 Less Accumulated Depreciation For: Building Improvements 96,130 19, ,356 Equipment 1,049,752 45, ,095,079 Total Accumulated Depreciation 1,145,882 64, ,210,435 Total Capital Assets Being Depreciated, Net 1,216, , ,337,189 Business-Type Activities Capital Assets, Net $ 1,216,154 $ 121,035 $ - $ - $ 1,337,189 Page 52

66 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 5 CAPITAL ASSETS - continued Depreciation expense was charged to the programs of the primary government as follows: Governmental Activities: Instruction $ 43,968 Supporting Services: Student Support Services 19,332 Instructional Staff Support Services 9,746 General Administration Services 3,551 Business Services 73,154 Operations & Maintenance 114,978 Student Transportation 311,209 Other Support Services 3,587,075 Total depreciation expense governmental activities $ 4,163,013 Business-Type Activities: Food Services $ 64,553 Total depreciation expense business-type activities $ 64,553 Construction Commitments The district has active construction projects as of June 30, The projects include renovations and site improvements. All accumulated resources for capital projects are reserved for construction commitments. A list of significant commitments as of June 30, 2013, is as follows: Project Name Spent-to-Date Remaining Commitment Server Replacement $ 38,174 $ 69,674 Northridge ROTC Remodel ,241 East Memorial Abatement 24,772 3,228 Brentwood Basement Floor Covering 16,851 1,849 Page 53

67 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 5 CAPITAL ASSETS - continued A summary of changes in capital assets of the charter school component units is as follows: Component Units Balance Balance 6/30/2012 Additions Reclassifications 6/30/2013 Capital Assets, Not Being Depreciated: Land $ 3,453,025 $ 1,157,962 $ - $ 4,610,987 Construction in Progress 2,001,327 6,089,998 (2,001,327) 6,089,998 Total Capital Assets, Not Being Depreciated 5,454,352 7,247,960 (2,001,327) 10,700,985 Capital Assets, Being Depreciated: Land Improvements 793, ,819 Buildings and Building Improvements 32,850,081 3,417,709 1,888,234 38,156,024 Furniture and Equipment 1,375, , ,093 1,635,613 Total Capital Assets, Being Depreciated 35,018,923 3,565,206 2,001,327 40,585,456 Less Accumulated Depreciation For: Land Improvements (126,614) (15,876) - (142,490) Buildings and Building Improvements (6,564,144) (885,513) - (7,449,657) Furniture and Equipment (1,267,612) (56,011) - (1,323,623) Total Accumulated Depreciation (7,958,370) (957,400) - (8,915,770) Total Capital Assets, Being Depreciated, Net 27,060,553 2,607,806 2,001,327 31,669,686 Component Unit Capital Assets, Net $ 32,514,905 $ 9,855,766 $ - $ 42,370,671 Total depreciation expense for the component units for the year ending June 30, 2013 was $957,400 with $230,535 charged to support services, $383,903 to instruction, and $342,962 to unallocated depreciation. NOTE 6 ACCRUED SALARIES AND BENEFITS Salaries of certified personnel and certain other employees are paid over a 12-month period ending July 31, but are earned during a school year of approximately 9 to 10 months. Accordingly, the accrued compensation is reflected as a liability of the respective funds in the accompanying financial statements. The salaries and benefits earned, but unpaid, at June 30, 2013 are recorded in the funds as follows: Governmental Activities: General $ 11,329,583 Designated Purpose Grant 1,536,763 Platte Valley Youth Services Center 162,369 Student Activities 1,271 Total governmental activities $ 13,029,986 Business-Type Activities: Food Services $ 59,405 Total business-type activities $ 59,405 Page 54

68 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 7 LONG-TERM DEBT Following is a summary of long-term debt transactions of the district for the year ended June 30, Balance 6/30/12 Additions Reductions Balance 6/30/13 Due Within One Year Governmental Activities: Bonds $ 75,960,000 $ 8,177,991 $ 6,020,000 $ 78,117,991 $ 6,612,358 Bond Premiums 2,346, ,578 1,993,146 - Deferred Amount on Refunding (3,066,124) - (453,301) (2,612,823) - Capital Lease Obligation 441,462 17, , , ,598 Compensated Absences 1,608,254 1,097, ,227 1,802, ,614 Total Governmental Activities: $ 77,290,316 $ 9,293,515 $ 6,958,413 $ 79,625,418 $ 7,204,570 Business-Type Activities: Compensated Absences $ 105,622 $ 51,366 $ 36,164 $ 120,824 $ 18,082 Total Business-Type Activities: $ 105,622 $ 51,366 $ 36,164 $ 120,824 $ 18,082 General Obligation Debt Balance June 30, 2013 General Obligation Refunding Bonds, Series 2006, were issued to refund a portion of the General Obligation Bonds, Series Principal payments are due annually on December 1, through Interest payments are due semi-annually on June 1 and December 1, with interest accruing at rates ranging from 4% to 5%. $ 47,555,000 General Obligation Refunding Bonds, Series R, were issued to refund a portion of the General Obligation Bonds, Series Principal payments are due annually on December 1, through Interest payments are due semi-annually on June 1 and December 1, with interest accruing at rates ranging from 2.5% to 5.25%. 21,055,000 General Obligation Bonds, Series 2002, were issued to finance improvements to school buildings. Principal payments are due annually on December 1, through Interest payments are due semi-annually on June 1 and December 1, with interest accruing at rates ranging from 3.25% to 5.5%. 1,330,000 General Obligation Bonds, Series 2012, were issued as a required match to the Colorado Building Excellent Schools Today (BEST) grant to finance the construction of a new middle school and abatement (asbestos) of the current school. Principal payments are due annually beginning December 1, 2013 and maturing December 1, Interest payments are due semi-annually on June 1 and December 1 at a rate of 3.0%. 8,177,991 Total General Obligation Bonds $ 78,117,991 Page 55

69 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 7 LONG-TERM DEBT continued Future Debt Service Requirements The following schedule represents the district s debt service requirements to maturity for outstanding general obligation bonds at June 30, 2013: Fiscal Year Principal Interest Total 2014 $ 6,612,358 $ 3,337,778 $ 9,950, ,973,183 3,010,539 9,983, ,297,597 2,675,683 9,973, ,642,294 2,322,828 9,965, ,117,282 1,941,752 10,059, ,475,277 4,750,903 46,226,180 Total $ 78,117,991 $ 18,039,483 $ 96,157,474 Defeased Debt In April 2006, the district issued $49,130,000 General Obligation Refunding Bonds, Series 2006, to advance refund a portion of the General Obligation Bonds, Series Net proceeds of $49,950,852 were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for $46,980,000 of 2002 Bonds. As a result, the refunded Bonds are considered to be defeased and the liability has been removed from the financial statements. In September 2002, the district issued $43,580,000 General Obligation Refunding Bonds, Series R to advance refund a portion of the General Obligation Bonds, Series Net proceeds of $46,722,992 were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for $42,450,000 of the 1996 Bonds. As a result, the refunded Bonds are considered to be defeased and the liability has been removed from the financial statements. The aggregate outstanding balance of defeased debt at June 30, 2013 was $46,980,000. Lease Obligation The District has entered into lease agreements as lessee for financing district-wide copy machines. 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 at the inception date. The leases require monthly payments totaling $12,508 which includes interest rates ranging from 4.2%, and 6.3%. The leases mature July 20, The assets acquired through capital leases are as follows: Balance June 30, 2013 District-Wide Copy Machines $ 657,404 Less: Accumulated Depreciation (370,327) Total $ 287,077 Page 56

70 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 7 LONG-TERM DEBT - continued The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2013, were as follows: Fiscal Year Principal Interest Total ,598 9, , ,676 3, , ,152-34, ,847-2,847 Total $ 324,273 $ 12,922 $ 337,195 Component Units Following is a summary of long-term debt transactions for the charter schools for the year ended June 30, Governmental Activities Balances Balances Due Within 6/30/2012 Additions Reductions 6/30/2013 One Year Frontier Academy Charter School Series 2006 Bonds $ 14,800,000 $ - $ (520,000) $ 14,280,000 $ 540,000 Deferred Amount on Refunding (1,004,446) - 52,865 (951,581) - 13,795,554 - (467,135) 13,328, ,000 Union Colony Elementary School Bonds Payable 7,260, ,260,000 75,000 Union Colony Preparatory School Bonds Payable 4,670,000 - (80,000) 4,590,000 85,000 Bond Premium 112,608 - (4,250) 108,358-4,782,608 - (84,250) 4,698,358 85,000 University Schools Bonds Payable 17,270,000 10,980,000 (485,000) 27,765, ,000 Bond Premium 139,522 - (6,644) 132,878 - Deferred Amount on Refunding (2,081,858) - 109,571 (1,972,287) - 15,327,664 10,980,000 (382,073) 25,925, ,000 Total $ 41,165,826 $10,980,000 $ (933,458) $ 51,212,368 $ 1,205,000 Page 57

71 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 7 LONG-TERM DEBT - continued Frontier Academy Charter School The Frontier Academy, has obtained funding through the Colorado Educational and Facilities Authority through the issuance of bonds in the amount of $17,750,000 Charter School Revenue Refunding Bonds, Series Proceeds from the Series 2006 Bonds were used to refund the existing Charter School Revenue Bond, Series The bonds accrue interest at rates ranging from 3.5% to 5.125%, maturing in Union Colony Preparatory School The Union Colony Preparatory School Building Corporation has obtained funding through the Colorado Educational and Facilities Authority through the issuance of lease revenue bonds, Series 2008, in the amount of $4,815,000. Proceeds from the Series 2007 bonds were to construct an addition onto current facilities. The bonds accrue interest at a rate of 5.75%, maturing in Union Colony Elementary School The Union Colony Elementary School Building Corporation has obtained funding through the Colorado Educational and Facilities Authority through the issuance of lease revenue bonds, Series 2012, in the amount of $7,260,000. Proceeds were to construct a new facility to support a K-5 elementary school. The bonds accrue interest at rates ranging from 5.65% to 7.5%, maturing in University Schools Charter School The University Schools has entered into a lease agreement with the University Lab School Building Corporation, a component unit, for the use of educational facilities. The Building Corporation obtained financing to acquire and construct the facilities from the issuance of Colorado Educational and Cultural Facilities Authority Charter School Revenue Bonds. Proceeds from the Series 2004 Bonds were used to refund the existing Charter School Revenue Bonds, Series The Bonds accrue interest at rates ranging from 3% to 5.25%, maturing in Additionally, University Schools have obtained funding through the Colorado Educational and Cultural Facilities Authority Charter School Revenue Bond, Series 2012, payable in installments of $80,000 to $85,000 through December 2016 with a balloon payment of $10,815,000 due December 2017; interest rate is 5.4% and interest is payable semi-annually on December 15 and June 15. The bonds are subject to mandatory sinking fund requirements. NOTE 8 COLORADO BUILDING EXCELLENT SCHOOLS (BEST) GRANT The district issued general obligation bonds in 2012 in the amount of $8,177,991 as part of a matching grant. The purpose of the grant and the bond issuance is to replace one of the district s middle schools. The proceeds of the bond were remitted to the State of Colorado (the State). The State is responsible for constructing the school at an estimated cost of approximately $29.2 million, funded by a state grant of approximately $21 million and the proceeds of the district bond obligation of approximately $8.2 million. The construction spending will first use the State funds, then the bond proceeds. The district has accounted for the remittance of the bond proceeds to the State as a long-term receivable. The district does not anticipate it will collect the receivable, but that once the district s portion of the funds are spent on the construction of the school, the title of the new school will transfer to the district. The district has included the long-term receivable as invested in capital assets net of related debt portion of net position. Page 58

72 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 9 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; worker s compensation; and natural disasters. The district plans to provide for or restore the economic damages of those losses through risk retention and risk transfer. The following is a summary of major outside insurance coverage and their insurance limits: Property Equipment Breakdown Commercial General Liability School Leaders Errors and Omissions Auto Liability Crime Umbrella Workers Compensation Asbestos Coverage: $267,222,828 Blanket Building and Contents limit. Flood coverage with a limit of $1,000,000 and Earth Movement with a limit of $1,000,000. Deductibles: $10,000 for Blanket Building and Contents. $50,000 Flood and Earth Movement Deductible. Coverage: $1,000,000 Property Damage Per Accident: sub-limits apply as follows: $25,000 expediting expense; $25,000 consequential damage; $25,000 water damage; $25,000 hazardous substance and $25,000 spoilage. Deductibles: $10,000 property damage and $2,500 sub-limit coverage. Coverage: Liability - $1,000,000 each occurrence, $5,000,000 annual aggregate limit; medical payments $5,000. Sexual Abuse and Molestation Coverage each occurrence - $1,000,000 and $2,000,000 annual aggregate limit. Deductible: None Coverage: $1,000,000 Limit of Liability each wrongful act. Deductible: $25,000 Coverage: Liability, including non-owned auto and hired, borrowed, and leased $1,000,000 limit per accident; auto medical payments $5,000 per person. Deductibles: $250 Comprehensive/ $1,000 Collision Coverage Coverage: Public Employee Dishonesty $100,000 per loss coverage, $50,000 Public Official Bonds Superintendent; $5,000 Public Official Bonds Board Members. Deductible: $5,000 Coverage: Liability - $5,000,000 each occurrence, $5,000,000 annual aggregate limit. Provides coverage above the following primary limits: Commercial General Liability; Auto Liability; and Workers Compensation. Coverage: All District Employees performing work related duties on behalf of the District. Limits are Statutory. Deductible: $500 per claim Coverage: Limit of Liability Continuous Release Incident (per claimant) or Limited Duration Release Incident (Per Incident) - $1,000,000, Policy Term Aggregate - $5,000,000 Locations that are covered: Administration Building, John Evans Middle School, and Greeley West High School Deductible: $10,000 per claim Page 59

73 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 9 RISK MANAGEMENT - continued As of June 30, 2013, the district had no significant reductions in insurance coverage from coverage in the prior year and had no settlements that exceeded insurance coverage in the last three years. The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The carrying amount of the claim liabilities are stated at anticipated cost because the majority of claims are expected to be paid during the next year. Changes in the balances of claims liabilities during the past two years are as follows: Claims Payable, June 30, 2011 $ 137,505 Claims Incurred and Adjustments 826,172 Payments (844,370) Claims Payable, June 30, ,307 Claims Incurred and Adjustments 1,106,186 Payments (1,100,003) Claims Payable, June 30, 2013 $ 125,490 NOTE 10 DEFINED BENEFIT PENSION PLAN Plan Description The district contributes to the Combined State and School Division Trust Fund (CSSDTF), a cost-sharing multipleemployer defined benefit pension plan administered by the Public Employees Retirement Association of Colorado (PERA). CSSDTF provides retirement and disability, annual increases, and death benefits for members or their beneficiaries. All employees of the district are members of the CSSDTF. Title 24, Article 51 of the Colorado Revised Statutes (CRS), as amended, assigns the authority to establish benefit provisions to the State Legislature. PERA issues a publicly available annual financial report that includes financial statements and required supplementary information for CSSDTF. That report may be obtained by writing to PERA of Colorado, 1300 Logan Street, Denver, Colorado or by calling PERA at or PERA (7372). Funding Policy Plan members and the district are required to contribute at a rate set by statute. The contribution requirements of plan members and the district are established under Title 24, Article 51, Part 4 of the CRS, as amended. The contribution rate for members was 8.0%. The district s contribution rate for calendar years 2011, 2012, and 2013 was 14.75%, 15.65%, and 16.55% of covered salaries, respectively. The district s contribution rate will increase to 20.15% by A portion of the district s contribution (1.02% of covered salary) was allocated for the Health Care Trust Fund (See Note 10). The district s contributions to CSSDTF for the years ended June 30, 2013, 2012, and 2011, were $13,789,047, $12,332,276, and $11,718,545, respectively, equal to their required contributions for each year. Page 60

74 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 11 POSTEMPLOYMENT HEALTHCARE BENEFITS Plan Description The district contributes to the Health Care Fund (HCF), a cost-sharing multiple-employer post employment healthcare plan administered by PERA. The HCF provides a health care premium subsidy to PERA participating benefit recipients and their eligible beneficiaries. Title 24, Article 51, Part 12 of the CRS, as amended, assigns the authority to establish the HCF benefit provisions to the State Legislature. PERA issues a publicly available annual financial report that includes financial statements and required supplementary information for the HCF. That report may be obtained by writing to PERA of Colorado, 1300 Logan Street, Denver, Colorado or by calling PERA at or PERA (7372). Funding Policy The district was required to contribute at the rate of 1.02% of covered salary for all PERA members as set by statute. No member contributions were required. The contribution requirements for the district are established under Title 24, Article 51, Part 4 of the CRS, as amended. The apportionment of the contributions to the health care fund is established under Title 24, Article 51, Section 208 of the CRS, as amended. The district s contributions to the HCF for the years ended June 30, 2013, 2012, and 2011 were $873,318, $827,435, and $835,967, respectively, equal to their required contributions for each year. NOTE 12 COMMITMENTS AND CONTIGENCIES Grant Compliance The district participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental entities. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grant program regulations, the district may be required to reimburse the grantor government. As of June 30, 2013, significant amounts of grant expenditures have not been audited but the district believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on the overall financial position of the district. Litigation The district is a defendant in various threatened and actual legal claims. The ultimate liability that might result from final resolution of these matters is not presently determinable. However, the district believes that the final settlement of these matters will not have a materially adverse effect on the financial position of the district. Tabor Amendment At the general election held November 3, 1992, the voters of the State approved an amendment to the Colorado Constitution, commonly known as the Taxpayer s Bill of Rights (TABOR). TABOR limits the ability of the state and local governments such as the district to increase revenues, debt and spending and restricts property, income and other taxes. In November, 1998, voters within the district authorized the district to collect, retain, and expend all excess revenues and other funds received from every source, without limitation future voter approval, notwithstanding the limitations of the Amendment. TABOR also requires local governments to establish emergency reserves to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, and salary or fringe benefit increases. These reserves are required to be 3 percent or more, of expenses, as defined after At June 30, 2013, the district s reserve was $4,220,860. Page 61

75 NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2013 NOTE 12 COMMITMENTS AND CONTIGENCIES - continued Forward Delivery Agreement In April, 2004, the district entered into a forward delivery agreement with JPMorgan Chase Bank in exchange for a payment of $2,171,000. The district agreed to deposit certain Bond Redemption Fund revenues into a trust account to be used by JPMorgan Chase Bank for purchase of investment securities from a third party. The securities will mature at future dates in time to meet the district's debt service obligations over a 17-year period, ending December, If the district terminates the agreement, it would be obligated to repay a portion of the $2,171,000 to compensate JPMorgan Chase Bank for the loss of economic benefits based on market conditions at the time the agreement is terminated. The amount received is being amortized over the term of the agreement and is reflected as deferred revenue. During the year ended June 30, 2013, revenue of $108,550 was recognized in the Capital Projects Fund, leaving a deferred revenue balance at June 30, 2013, of $1,175,958. Page 62

76 Required Supplementary Information Budget-to-actual information found in this section of the document for the District s general fund is required to be included as required supplementary information if it is not already presented as part of the basic financial statements.

77

78 BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2013 BUDGET ORIGINAL FINAL ACTUAL Variance Revenues Local Sources Property Taxes $ 26,166,382 $ 27,276,705 $ 26,300,215 $ (976,490) Specific Ownership Taxes 2,218,941 2,402,877 2,795, ,510 Delinquent Taxes, Penalties & Interest 50,000 71,000 61,892 (9,108) Abatements 50, , ,339 23,339 Summer School Fees 10,000 8,000 2,389 (5,611) Other Tuition 150, , ,714 (54,286) (Loss) on Investments 160, ,000 (38,105) (148,105) Pupil Activities - - 9,474 9,474 District Services Provided to Charter Schools 3,268,040 3,410,198 3,408,378 (1,820) District Services Provided to Food Service 326, , ,000 - Indirect Cost Revenue 500, , , ,928 Other Local Revenue 2,432,500 2,733,500 2,129,950 (603,550) Total Local Sources 35,331,863 37,075,280 36,088,561 (986,719) State Sources State Equalization 93,410,842 94,199,496 93,313,858 (885,638) Full Day Kindergarten Hold Harmless 240, , ,970 (1,030) At-Risk Funding - - 1,229,412 1,229,412 Vocational Education 400, , ,381 (1,619) Exceptional Children's Education Act 3,000,000 2,893,000 3,081, ,055 Gifted and Talented Reimbursement 175, ,000 - (183,000) Transportation 900, , ,230 29,230 Total State Sources 98,125,842 98,725,496 99,100, ,410 Total Revenues 133,457, ,800, ,189,467 (611,309) The accompanying notes are an integral part of the basic financial statements. Page 63

79 BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2013 BUDGET ORIGINAL FINAL ACTUAL Variance Expenditures Current Instruction $ 70,202,364 $ 70,497,477 $ 72,767,923 $ (2,270,446) Support Services Student Support Services 5,623,986 7,609,850 6,080,439 1,529,411 Instructional Staff Support Services 6,472,946 6,326,698 6,322,848 3,850 General Administration Services 1,286,136 1,293,565 1,297,209 (3,644) School Administration Services 8,631,908 8,334,642 8,249,051 85,591 Business Services 2,190,701 1,896,514 2,073,654 (177,140) Operations & Maintenance 11,193,086 11,302,810 10,615, ,777 Student Transportation 4,348,266 4,248,475 4,275,629 (27,154) Other Support Services 6,893,160 6,909,704 5,818,798 1,090,906 Capital Outlay ,563 (436,563) Payments Made to Charter Schools Union Colony Preparatory School 4,545,029 2,702,502 2,709,003 (6,501) Union Colony Elementary School - 2,374,544 2,327,815 46,729 University Schools 7,824,393 8,079,126 8,098,559 (19,433) Frontier Academy 8,354,268 8,407,589 8,419,720 (12,131) West Ridge Academy 1,130,889 1,200,079 1,203,087 (3,008) Total Expenditures 138,697, ,183, ,695, ,244 Excess of Revenues Over (Under) Expenditures (5,239,427) (5,382,799) (5,505,864) (123,065) Other Financing Sources (Uses) Other Financing Sources-Capital Leases ,720 17,720 Transfers Out Capital Reserve Fund (1,000,000) (1,000,000) - 1,000,000 Platte Valley Youth Services Fund (297,041) (258,669) (258,669) - Total Other Operating Sources (Uses) (1,297,041) (1,258,669) (240,949) 1,017,720 NET CHANGE IN FUND BALANCE (6,536,468) (6,641,468) (5,746,813) 894,655 Fund Balance, Beginning 22,708,558 29,497,366 29,497,366 - Fund Balance, Ending $ 16,172,090 $ 22,855,898 $ 23,750,553 $ 894,655 The accompanying notes are an integral part of the basic financial statements. Page 64

80 BUDGETARY COMPARISON SCHEDULE SPECIAL REVENUE FUND Designated Special Purpose Grants Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Revenues Local Sources $ 750,000 $ 750,000 $ 580,607 $ (169,393) State Sources 1,850,000 1,850,000 1,337,256 (512,744) Federal Sources 14,400,000 14,400,000 13,360,726 (1,039,274) Total Revenues 17,000,000 17,000,000 15,278,589 (1,721,411) Expenditures Current Instruction 9,381,567 9,381,567 7,883,886 1,497,681 Support Services Student Support 1,906,873 1,906,873 1,755, ,605 Instructional Staff Support 4,715,342 4,715,342 4,524, ,256 School Administration 520, , ,913 (198,967) Business Services 58,762 58,762 43,802 14,960 Operations & Maintenance 125, , ,528 (26,430) Student Transportation 73,844 73,844 93,970 (20,126) Other Support Services 212, ,918 36, ,811 Capital Outlay 4,650 4,650 70,029 (65,379) Total Expenditures 17,000,000 17,000,000 15,278,589 1,721,411 Net Change in Fund Balance Fund Balance, Beginning Fund Balance, Ending $ - $ - $ - $ - The accompanying notes are an integral part of the basic financial statements. Page 65

81 Notes to Required Supplementary Information June 30, 2013 NOTE 1 BUDGET AND BUDGETARY ACCOUNTING Annual budgets are established for all funds of the district as required by Colorado statutes. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. Authorization to transfer budget amounts between programs and/or departments within any fund and the reallocation of budget line items within any program and/or department rests with the Superintendent. Revisions that alter the total expenditures of any fund must be approved by the Board of Education. Colorado law allows the Board of Education to review and change the budget at any time prior to January 31 of the fiscal year for which the budget was adopted. A supplemental budget may also be adopted if a school district is authorized to raise and expend local property tax revenues at a November election. Other amendments to the budget are allowed by law if money for specific purposes from other than ad valorem taxes subsequently becomes available. Budget amounts included in the financial statements are based on the final budget as adopted by the Board of Education in January Original budgets for all funds were adopted by the Board of Education in June Budget appropriations lapse at the end of each fiscal year. The following is a summary of the significant dates and procedures used in establishing budgeted data reflected in the financial statements. On or before June 1, the Superintendent submits to the Board of Education a proposed budget for the succeeding fiscal year. The budget includes proposed expenditures and the means of financing them. Within ten days after submission of the proposed budget, public notice is published stating the time and place of public hearing(s) to be conducted to obtain taxpayer comments on the budget prior to adoption. On or before June 30, the budget is adopted by formal resolution. On or before January 31, any changes to the budget are adopted by formal resolution. November 10, pupil count information is provided by school districts to the Colorado Department of Education, for use in determining the state funding level for the current fiscal year. December 15, school districts certify to county commissioners, copied to CDE, the mill levies for the various property tax-supported funds for the district. Page 66

82 Supplementary Information Information included in this Supplementary Information Section of the document is designed to further explain and support the financial statements, including combining schedules. Also included in this section is budget-to-actual information for all funds of the District, as required by state law (except for the District s general fund, which is included in the Required Supplementary Information Section).

83

84 BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND Capital Projects Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Revenues Investment Earnings $ 10,000 $ 109,000 $ 109,123 $ 123 Other 5, , ,440 (97,114) Total Revenues 15, , ,563 (96,991) Expenditures Current Support Services Student Support ,508 (35,508) General Administration Services ,834 (14,834) Operations & Maintenance 2,500,000 4,000,000-4,000,000 Student Transportation - 700, ,000 Other Support Services ,818 (243,818) Capital Outlay - - 3,299,586 (3,299,586) Total Expenditures 2,500,000 4,700,000 3,593,746 1,106,254 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,485,000) (4,064,446) (3,055,183) (1,009,263) Other Financing Sources (Uses) Transfers In 1,000,000 1,000,000 - (1,000,000) Total Other Financing Sources (Uses) 1,000,000 1,000,000 - (1,000,000) Net Change in Fund Balance (1,485,000) (3,064,446) (3,055,183) (9,263) Fund Balance, Beginning 1,834,745 4,093,696 4,093,696 - Fund Balance, Ending $ 349,745 $ 1,029,250 $ 1,038,513 $ (9,263) The accompanying notes are an integral part of the basic financial statements. Page 67

85 BUDGETARY COMPARISON SCHEDULE SPECIAL REVENUE FUND Platte Valley Youth Services Center Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Revenues Local Sources $ 424,309 $ 462,681 $ 462,681 $ - State Sources 651, , ,740 - Total Revenues 1,076,162 1,086,421 1,086,421 - Expenditures Current Instruction 1,004, , ,142 (14,672) Support Services Student Support 103, , ,653 (2,922) Instructional Staff Support 37,452 37,452 37,975 (523) School Administration 227, , ,320 18,117 Total Expenditures 1,373,203 1,345,090 1,345,090 - Excess (Deficiency) of Revenues Over (Under) Expenditures (297,041) (258,669) (258,669) - Other Financing Sources (Uses) Transfers In 297, , ,669 - Total Other Financing Sources (Uses) 297, , ,669 - Net Change in Fund Balance Fund Balance, Beginning Fund Balance, Ending $ - $ - $ - $ - The accompanying notes are an integral part of the basic financial statements. Page 68

86 BUDGETARY COMPARISON SCHEDULE DEBT SERVICE FUND Bond Redemption Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Revenues Property Taxes $ 10,144,823 $ 10,615,924 $ 10,635,178 $ 19,254 Investment Earnings 2,500 2,500 1,302 (1,198) Total Revenues 10,147,323 10,618,424 10,636,480 18,056 Expenditures Debt Service Principal 6,020,000 6,327,358 6,020, ,358 Interest 3,400,856 3,520,353 3,520,353 - Fiscal Charges 10,000 20,000 5,300 14,700 Total Expenditures 9,430,856 9,867,711 9,545, ,058 Net Change in Fund Balance 716, ,713 1,090, ,114 Fund Balance, Beginning 9,871,361 9,880,107 9,880,107 - Fund Balance, Ending $ 10,587,828 $ 10,630,820 $ 10,970,934 $ 340,114 The accompanying notes are an integral part of the basic financial statements. Page 69

87 BUDGETARY COMPARISON SCHEDULE ENTERPRISE FUND Food Service Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Operating Revenues Charges for Services $ 1,627,910 $ 1,280,045 $ 1,139,685 $ (140,360) Total Operating Revenues 1,627,910 1,280,045 1,139,685 (140,360) Operating Expenses Salaries 2,471,523 2,471,523 2,459,445 12,078 Employee Benefits 1,036,216 1,036, ,233 95,983 Purchased Services 90, , ,198 (46,198) Food Commodities 420, , ,532 1 Supplies and Materials 3,104,475 3,233,500 3,476,647 (243,147) Non-Capital Equipment 42,000 30,000 32,961 (2,961) Depreciation 58,000 58,000 64,553 (6,553) Capital Outlay 73, , ,000 Indirect Costs 326, , ,000 - Other Objects and Uses 13,500 13,500 27,778 (14,278) Total Operating Expenses 7,634,714 7,989,272 7,864, ,925 OPERATING LOSS (6,006,804) (6,709,227) (6,724,662) (15,435) Nonoperating Revenues State Sources State Match 68,000 68,000 67,098 (902) State Smart Breakfast 22,633 30,724 31, State Lunch Program 32, ,346 22,847 (84,499) Colorado Health Foundation ,419 73,419 Federal Sources School Lunch Program 3,918,831 3,918,831 4,241, ,567 Breakfast Program 1,249,494 1,630,040 1,891, ,649 Summer Food Program 66,500 66, ,021 46,521 Fresh Fruit/Vegetable 229, , ,140 (33,860) Farm to School ,818 43,818 Food Commodities 420, , ,532 (1) Total Nonoperating Revenues 6,006,804 6,437,974 7,067, ,128 NET INCOME(LOSS) ON A BUDGETARY BASIS $ - $ (271,253) 342,440 $ 613,693 Net Position, Beginning 1,605,764 2,519,560 2,519,560 - Net Position, Ending $ 1,605,764 $ 2,248,307 $ 2,862,000 $ 613,693 The accompanying notes are an integral part of the basic financial statements. Page 70

88 BUDGETARY COMPARISON SCHEDULE INTERNAL SERVICE FUND Copier Service Fund For the Year Ended June 30, 2013 Budget Original Final Actual Variance Revenues User Charges $ 450,000 $ 450,000 $ 275,706 $ (174,294) Other ,025 53,025 Total Revenues 450, , ,731 (121,269) Operating Expenses Purchased Services 350, , , ,632 Supplies and Materials ,577 (49,577) Non-Capital Equipment - - 8,049 (8,049) Depreciation 95, , ,538 (3,538) Other Objects and Uses 5,000 5,000 15,189 (10,189) Total Operating Expenses 450, , , ,279 Net Change in Fund Balance - (45,000) (44,990) 10 Fund Balance, Beginning 98,677 74,766 74,766 - Fund Balance, Ending 98,677 $ 29,766 $ 29,776 $ 10 The accompanying notes are an integral part of the basic financial statements. Page 71

89 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended June 30, 2013 Balances Balances 6/30/2012 Additions Deductions 6/30/2013 Student Activity Funds ASSETS Cash $ 1,266,890 $ 1,525,990 $ 1,584,603 $ 1,208,277 Total Assets $ 1,266,890 $ 1,525,990 $ 1,584,603 $ 1,208,277 LIABILITIES Accrued Liabilities Due to Third Parties $ 4,762 $ 11,340 $ 4,762 $ 11,340 Due to Student Groups 1,262,128 1,514,650 1,579,841 1,196,937 Total Liabilities $ 1,266,890 $ 1,525,990 $ 1,584,603 $ 1,208,277 Scholarships ASSETS Cash $ 113,459 $ 7,201 $ 8,185 $ 112,475 Total Assets $ 113,459 $ 7,201 $ 8,185 $ 112,475 LIABILITIES Accrued Liabilities Due to Student Groups $ 113,459 $ 7,201 $ 8,185 $ 112,475 Total Liabilities $ 113,459 $ 7,201 $ 8,185 $ 112,475 Totals ASSETS Cash $ 1,380,349 $ 1,533,191 $ 1,592,788 $ 1,320,752 Total Assets $ 1,380,349 $ 1,533,191 $ 1,592,788 $ 1,320,752 LIABILITIES Accrued Liabilities Due to Third Parties $ 4,762 $ 11,340 $ 4,762 $ 11,340 Due to Student Groups 1,375,587 1,521,851 1,588,026 1,309,412 Total Liabilities $ 1,380,349 $ 1,533,191 $ 1,592,788 $ 1,320,752 The accompanying notes are an integral part of the basic financial statements. Page 72

90 Statistical Section The Statistical Section is provided to reflect social and economic data, financial trends and the fiscal capacity of the District.

91

92 STATISTICAL SECTION (Unaudited) This component of the s 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 PAGE Financial Trends - These schedules contain trend information to help the reader understand how the District s financial position has changed over time. Net Position by Component 75 Changes in Net Position 76 Fund Balances, Governmental Funds 80 Changes in Fund Balances, Governmental Funds 82 Revenue Capacity - These schedules contain information to help the reader understand and assess the factors affecting the District s most significant local revenue source, property taxes. Assessed Value and Estimated Actual Value of Taxable Property 84 Direct and Overlapping Property Tax Rates 85 Principal Property Tax Payers 86 Property Tax Levies and Collections 87 Debt Capacity - These schedules present information to help the reader understand and assess the affordability of the District s current levels of outstanding debt and the District s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type 88 Ratios of General Bonded Debt Outstanding 89 Direct and Overlapping Governmental Activities Debt 90 Legal Debt Margin 91 Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the District s financial activities take place. Demographic and Economic Statistics 92 Principal Employers 93 Operating Information - These tables contain service data to help the reader understand how the information in the financial report relates to the services the District provides and the activities it performs. Full-Time/Part-Time Employees by Function/Program 94 Operating Statistics 95 School Building Information 96 Teacher Salary Information 97 Miscellaneous Statistics 98 Data Source Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Page 73

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94 Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Schedule Governmental Activities Invested in capital assets, net of related debt $ 37,063,603 $ 38,319,063 $ 41,289,185 $ 44,584,034 $ 45,859,411 $ 49,775,100 $ 51,568,438 $ 54,514,438 $ 59,214,842 $ 53,532,236 Restricted 12,352,380 12,631,009 14,325,329 13,816,449 13,346,241 12,828,006 17,428,506 16,664,358 16,339,056 19,657,212 Unrestricted 13,427,598 12,499,082 12,411,433 11,733,320 11,441,806 15,570,082 16,903,724 23,452,576 24,325,738 24,070,313 Total Governmental Activities Net Position $ 62,843,581 $ 63,449,154 $ 68,025,947 $ 70,133,803 $ 70,647,458 $ 78,173,188 $ 85,900,668 $ 94,631,372 $ 99,879,636 $ 97,259,761 Business-Type Activities Invested in capital assets, net of related debt $ 417,228 $ 436,916 $ 450,375 $ 1,373,705 $ 1,321,492 $ 1,254,613 $ 1,204,347 $ 1,245,087 $ 1,216,154 $ 1,337,189 Restricted Unrestricted 2,422,112 2,561,496 2,617,466 1,628,716 1,121, , ,783 1,176,350 1,303,406 1,524,811 Total Business-Type Activities Net Position $ 2,839,340 $ 2,998,412 $ 3,067,841 $ 3,002,421 $ 2,443,041 $ 1,589,794 $ 1,620,130 $ 2,421,437 $ 2,519,560 $ 2,862,000 Primary Government Invested in capital assets, net of related debt $ 37,480,831 $ 38,755,979 $ 41,739,560 $ 45,957,739 $ 47,180,903 $ 51,029,713 $ 52,772,785 $ 55,759,525 $ 60,430,996 $ 54,869,425 Restricted 12,352,380 12,631,009 14,325,329 13,816,449 13,346,241 12,828,006 17,428,506 16,664,358 16,339,056 19,657,212 Unrestricted 15,849,710 15,060,578 15,028,899 13,362,036 12,563,355 15,905,263 17,319,507 24,628,926 25,629,144 25,595,124 Total Primary Government Net Position $ 65,682,921 $ 66,447,566 $ 71,093,788 $ 73,136,224 $ 73,090,499 $ 79,762,982 $ 87,520,798 $ 97,052,809 $ 102,399,196 $ 100,121,761 Notes: - Includes all non-fiduciary funds. (GAAP Basis). Net Position by Component $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- Governmental Activities Business-type Activities Primary Government Page 75

95 Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Schedule Expenses Governmental Activities: Instruction $ 74,323,869 $ 80,272,233 $ 80,425,681 $ 84,952,813 $ 87,491,834 $ 76,569,456 $ 78,981,334 $ 77,201,295 $ 77,036,400 $ 81,884,496 Supporting services 43,398,368 47,397,397 47,106,474 50,963,402 51,241,267 Student Support ,131,266 7,960,525 7,968,395 7,415,277 7,974,868 Instructional Staff Support ,733,475 10,865,333 10,876,074 10,121,123 10,884,909 General Administration ,173,252 1,309,683 1,310,978 1,219,978 1,312,043 School Administration ,207,382 9,161,777 9,170,835 8,534,251 9,178,284 Business Services ,944,414 2,170,520 2,172,666 2,021,853 2,174,431 Operations & Maintenance ,531,243 12,872,154 12,884,880 11,990,489 12,895,346 Student Transportation ,907,372 4,361,740 4,366,053 4,062,987 4,369,599 Other Support ,493,059 8,364,390 8,372,659 7,791,480 8,379,460 Payments to Charter Schools ,450,618 17,329,543 18,338,342 19,399,551 22,758,184 Interest on long-term debt 5,795,120 5,584,667 4,562,999 5,042,831 5,588,956 4,468,579 4,249,856 4,017,439 3,772,242 3,504,652 Total Government Activities Expenses 123,517, ,254, ,095, ,959, ,322, ,610, ,626, ,679, ,365, ,316,272 Business-Type Activities: Food Service Operations 4,521,948 5,305,651 5,565,382 5,931,304 6,607,161 7,335,412 7,022,340 6,801,136 7,235,660 7,864,347 Total Business-Type Activities Expense 4,521,948 5,305,651 5,565,382 5,931,304 6,607,161 7,335,412 7,022,340 6,801,136 7,235,660 7,864,347 Total Primary Government Expenses $ 128,039,305 $ 138,559,948 $ 137,660,536 $ 146,890,350 $ 150,929,218 $ 155,945,528 $ 164,649,195 $ 163,480,752 $ 160,601,291 $ 173,180,619 Notes: - Includes all non-fiduciary funds. (GAAP Basis) - Comparable data Is not available for years prior to Total Primary Government Expenses $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- Page 76

96 Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Schedule 2 (continued) Program Revenues Governmental Activities: Charges for services $ 1,077,239 $ 1,518,813 $ 1,560,406 $ 3,110,280 $ 876,746 $ - $ - $ - $ - $ - Instruction , , ,802 1,069, ,256 Business Services , , , , ,025 Other Support ,446,880 2,934,026 3,093,039 3,252,902 4,496,012 Operating grants & contributions 12,290,592 17,045,174 16,634,310 17,755,630 17,834,656 Instruction ,495,285 11,204,781 16,291,986 12,611,807 11,448,200 Student Support ,704,116 4,208,638 4,696,619 3,043,335 3,702,541 Instructtional Staff Support ,304,124 5,142,480 5,738,737 3,718,610 4,524,086 General Administration , , , , ,913 School Administration ,990 49,789 55,562 36,003 43,802 Business Services , , , , ,528 Operations & Maintenance ,083 1,545,618 1,724,828 1,117,661 1,359,754 Other Support ,280 75,144 83,856 54,337 66,107 Total Governmental Activities $ 13,367,831 $ 18,563,987 $ 18,194,716 $ 20,865,910 $ 18,711,402 $ 22,504,920 $ 27,147,528 $ 34,040,871 $ 25,891,446 $ 27,473,224 Business-Type Activities: Charges for services $ 1,554,761 $ 1,516,676 $ 1,453,677 $ 1,465,804 $ 1,406,489 $ 1,319,275 $ 1,369,357 $ 1,410,357 $ 1,192,002 $ 1,139,685 Operating grants & contributions 3,290,009 3,939,926 4,159,661 4,319,887 4,581,178 5,158,087 5,683,319 6,192,086 6,141,781 7,067,102 Total Business-Type Activities $ 4,844,770 $ 5,456,602 $ 5,613,338 $ 5,785,691 $ 5,987,667 $ 6,477,362 $ 7,052,676 $ 7,602,443 $ 7,333,783 $ 8,206,787 Total Primary Government Revenues $ 18,212,601 $ 24,020,589 $ 23,808,054 $ 26,651,601 $ 24,699,069 $ 28,982,282 $ 34,200,204 $ 41,643,314 $ 33,225,229 $ 35,680,011 Net (Expense) Revenue Governmental activities $ (110,149,526) $ (114,690,310) $ (113,900,438) $ (120,093,136) $ (125,610,655) $ (126,105,196) $ (130,479,327) $ (122,638,745) $ (127,474,185) $ (137,843,048) Business-type activities 322, ,951 47,956 (145,613) (619,494) (858,050) 30, ,307 98, ,440 Total Primary Government Net Expense $ (109,826,704) $ (114,539,359) $ (113,852,482) $ (120,238,749) $ (126,230,149) $ (126,963,246) $ (130,448,991) $ (121,837,438) $ (127,376,062) $ (137,500,608) Notes: -Major charges for services include overhead allocations and charges for use of district software applications to charter schools. Additionally, charges for administrative support are allocated to the food services fund. - Comparable data is not available for years prior to Total Primary Government Program Revenues $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Page 77

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98 Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Schedule 2 (continued) General Revenues Governmental Activities: Property taxes $ 35,675,137 $ 36,537,210 $ 36,655,137 $ 37,665,371 $ 36,477,221 $ 37,320,028 $ 37,542,000 $ 35,201,582 $ 35,961,514 $ 37,170,624 Specific ownership taxes 4,529,444 4,130,604 3,968,190 3,827,984 3,627,747 3,200,356 2,656,089 2,383,024 2,437,108 2,795,387 State equalization 68,920,692 71,911,408 74,744,378 77,524,558 83,479,091 90,692,761 96,144,664 91,422,669 91,912,020 93,313,858 Investment earnings 1,153, ,257 1,202,540 1,381, , ,044 64, , ,001 72,320 Other revenues 1,819,661 1,755,404 1,906,986 1,801,269 2,324,750 1,977,736 1,799,389 1,974,170 2,193,806 2,232,838 Total Governmental Activities $ 112,098,360 $ 115,295,883 $ 118,477,231 $ 122,200,992 $ 126,871,087 $ 133,630,925 $ 138,206,807 $ 131,369,449 $ 132,722,449 $ 135,585,027 Business-Type Activities: Investment earnings $ 569 $ 8,121 $ 21,473 $ 80,193 $ 60,114 $ 4,803 $ - $ - $ - $ - Contribution of assets Total Business-Type Activities $ 569 $ 8,121 $ 21,473 $ 80,193 $ 60,114 $ 4,803 $ - $ - $ - $ - Total Primary Government $ 112,098,929 $ 115,304,004 $ 118,498,704 $ 122,281,185 $ 126,931,201 $ 133,635,728 $ 138,206,807 $ 131,369,449 $ 132,722,449 $ 135,585,027 Change in Net Position Governmental Activities 1,948, ,573 4,576,793 2,107,856 1,260,432 7,525,729 7,727,480 8,730,704 5,248,264 (2,258,021) Business-Type Activities 323, ,072 69,429 (65,420) (559,380) (853,247) 30, ,307 98, ,440 Total Primary Government $ 2,272,225 $ 764,645 $ 4,646,222 $ 2,042,436 $ 701,052 $ 6,672,482 $ 7,757,816 $ 9,532,011 $ 5,346,387 $ (1,915,581) $150,000,000 Total Primary Government General Revenues $100,000,000 $50,000,000 $- Page 79

99 Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Schedule General fund Nonspendable $ - $ - $ - $ - Restricted Committed Assigned Unassigned Reserved 4,137,844 4,201,167 5,046,905 5,002,624 Unreserved 11,176,132 10,807,706 11,232,259 10,065,609 Total general fund $ 15,313,976 $ 15,008,873 $ 16,279,164 $ 15,068,233 All other governmental funds Nonspendable $ - $ - $ - $ - Restricted, reported in: Debt Service Fund Assigned, reported in: Capital Projects Funds Reserved Unreserved, reported in: Special Revenue Funds 19,363,503 9,584,685 2,481,980 2,432,021 Debt Service Funds 8,501,069 8,424,093 9,313,856 8,808,043 Capital Projects Funds 1,737,519 1,574,060 1,948, ,702 Total all other governmental funds $ 29,602,091 $ 19,582,838 $ 13,743,837 $ 12,163,766 NOTES: - Other governmental funds from fiscal year 2004 through fiscal 2013 include: Debt Service - Bond Redemption Fund; Special Revenue - Designated Special Purpose Grant Fund, Platte Valley Youth Detention Center Fund, and Building Corporation Fund (fund dissolved in 2009); Capital Projects - Capital Projects Fund and Building Corporation Fund (fund dissolved in 2009) ; Internal Service Fund - Copier Services Fund. - GASB 54 was implemented in the District's financial statements in Page 80

100 Schedule 3 (continued) Fiscal Year $ - $ - $ 211,934 $ 238,145 $ 1,250,263 $ 137, ,313,572 6,101,639 4,959,457 5,862, ,469,942 6,485,363 5,499,944 4,220, ,644,525 14,683,873 17,787,702 13,529,509 4,154,226 3,425, ,750,591 14,162, $ 13,904,817 $ 17,587,393 $ 21,639,973 $ 27,509,020 $ 29,497,366 $ 23,750,553 $ - $ - $ - $ - $ - $ ,767,284 9,264,107 9,880,107 10,970, ,470,475 4,719,745 4,093,696 1,038, ,695,699 3,095, ,430,419 9,540, , $ 12,550,417 $ 12,635,334 $ 14,237,759 $ 13,983,852 $ 13,973,803 $ 12,009,447 Page 81

101 Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Schedule Revenues Local sources $ 45,055,293 $ 45,235,423 $ 45,573,879 $ 48,018,943 State sources 72,519,592 76,989,853 79,982,941 83,259,272 Federal sources 8,122,511 11,607,885 11,185,551 11,810,469 Total Revenues $ 125,697,396 $ 133,833,161 $ 136,742,371 $ 143,088,684 Expenditures Governmental Activities Instruction $ 74,160,358 $ 80,082,108 $ 80,237,718 $ 84,921,726 Supporting services 35,924,601 39,955,262 42,564,630 45,453,361 Student Support Services Instructional Staff Support Services General Administration Services School Administration Services Business Services Operations & Maintenance Student Transportation Other Support Services Bond issuance costs ,122 - Payments to Charter Schools Union Colony Preparatory School Union Colony Elementary School University Frontier West Ridge Academy Debt Service Principal 4,474,606 4,656,942 4,888,200 6,075,933 Interest and fiscal charges 5,787,128 5,576,673 4,486,442 4,876,112 Capital Outlay 18,004,283 13,886,532 9,869,095 4,552,554 Total Expenditures $ 138,350,976 $ 144,157,517 $ 142,460,207 $ 145,879,686 Other Financing Sources (Uses): Other Financing Sources - Capital Leases $ - $ - $ - $ - Transfers in 3,950,748 3,603,470 4,060,962 3,611,465 Transfers out (3,950,748) (3,603,470) (3,316,768) (3,611,465) Bonds issued ,130,000 - Bond refunding escrow agent - - (49,950,852) - Bonds premium - - 1,225,784 - Total Other Financing Sources (Uses) $ - $ - $ 1,149,126 $ - Net Change in Fund Balances (12,653,580) (10,324,356) (4,568,710) (2,791,002) Fund Balance - Beginning 57,569,647 44,916,067 34,591,711 30,023,001 Prior Period Adjustment Fund Balance - Ending $ 44,916,067 $ 34,591,711 $ 30,023,001 $ 27,231,999 Debt Service as a percentage of 8.53% 7.86% 7.07% 7.75% noncapital expenditures NOTES: - Beginning in Fiscal Year Ending June 30, 2009, payments to charter schools are reflected as an expenditure. Prior to 2009, these payments were reflected as transfers. - Expenditures allocated by the program function were not available prior to Page 82

102 Schedule 4 (continued) Fiscal Year $ 45,670,100 $ 46,418,973 $ 46,386,898 $ 44,450,584 $ 45,823,435 $ 48,306,892 89,418,149 97,647, ,663,129 97,937,817 98,595, ,061,902 11,669,569 12,069,441 16,304,308 22,843,590 14,005,975 13,360,726 $ 146,757,818 $ 156,135,846 $ 165,354,335 $ 165,231,991 $ 158,424,685 $ 162,729,520 $ 73,272,323 $ 76,039,639 $ 79,217,046 $ 77,271,592 $ 76,956,028 $ 81,645,951 7,102,761 6,522,400 8,418,861 9,830,344 8,039,765 7,974,868 9,382,370 8,582,100 10,568,750 9,762,730 9,614,098 10,884, , ,607 1,099,030 1,069,410 1,171,234 1,312,043 7,997,830 8,464,854 9,270,699 8,384,757 8,287,435 9,178,284 1,621,532 1,438,794 1,984,073 1,922,579 1,768,640 2,117,456 11,790,226 11,897,842 12,021,015 11,080,733 10,378,642 10,766,561 3,767,127 3,787,553 3,992,743 4,009,486 3,962,403 4,369,599 6,293,753 5,769,440 5,831,767 6,907,034 5,755,904 6,098, ,665,406 2,675,658 2,715,931 2,639,790 2,709, ,327,815-6,798,232 7,228,223 7,862,054 7,859,374 8,098,559-6,986,980 7,425,661 7,760,357 7,836,189 8,419, ,064,198 1,203,087 5,210,000 5,445,000 5,285,000 5,540,000 5,745,000 6,020,000 4,603,916 4,386,420 4,170,100 3,934,663 3,694,475 3,525,653 1,616,498 2,493, ,704 1,435,181 1,867,113 3,806,178 $ 133,420,099 $ 152,071,616 $ 159,699,330 $ 159,486,851 $ 156,640,288 $ 170,458,409 $ - $ - $ - $ - $ 193,900 $ 17,720 5,823,561 3,566,986 3,399,405 2,340,000 1,303, ,669 (19,191,268) (3,863,723) (3,399,405) (2,470,000) (1,303,214) (258,669) $ (13,367,707) $ (296,737) $ - $ (130,000) $ 193,900 $ 17,720 (29,988) 3,767,493 5,655,005 5,615,140 1,978,297 (7,711,169) 27,231,999 26,455,234 30,222,727 35,877,732 41,492,872 43,471,169 (746,777) $ 26,455,234 $ 30,222,727 $ 35,877,732 $ 41,492,872 $ 43,471,169 $ 35,760, % 6.57% 5.94% 5.99% 6.10% 5.73% Page 83

103 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Schedule 5 Total Estimated Value as a Less: Taxable Total Actual Percentage Vacant Residential Commercial Industrial Other Tax-Exempt Assessed Direct Taxable of Actual Year Property Property Property Property Property (2) Property Value (1) Tax Rate (1) Value (1) Value ,355, ,787, ,685,530 29,932,800 73,846, ,320, ,726, ,951,529, % ,006, ,088, ,519,840 29,180,390 82,032, ,153, ,937, ,216,868, % ,700, ,562, ,714,160 29,518,750 86,689, ,354, ,661, ,827,840, % ,276, ,467, ,843,260 27,399,150 88,008, ,108, ,671, ,018,196, % ,318, ,317, ,183,180 28,050, ,052, ,664,620 1,007,525, ,400,996, % ,775, ,220, ,155,080 42,285, ,541, ,484,810 1,014,978, ,782,985, % ,433, ,211, ,671,750 43,026, ,696, ,897, ,040, ,745,577, % ,510, ,264, ,133,750 44,419, ,482, ,437, ,811, ,488,639, % ,643, ,344, ,535,260 49,471, ,603, ,498, ,598, ,634,517, % ,485, ,442, ,115, ,014, ,546, ,033, ,604, ,601,276, % Source: Weld County Assessor's Office. Notes: - Preliminary assessed values as of August of each tax year are presented for each property category. (1) Final assessed values as of December may not agree with the August preliminary values. Final assessed values provided by the Weld County Assessor's Office. (2) Other Property includes agricultural property, natural resources, oil and gas, and state assessed property. Page 84

104 Property Tax Rates Direct and Overlapping Governments Last Ten Tax Years (rate per $1,000 of assessed value) Schedule 6 Overlapping Rates (2) Bond Total Total Total District Collection General Redemption Total Cities Total Special & Overlapping Year Fund Fund District and Towns County Districts (1) Rates Source: Weld County Assessor's Office Notes: (1) This represents the gross millage of all special taxing entities within the District boundaries. The total is not representative of the mill levy assessed to an individual taxpayer. (2) Overlapping rates are those of local and county governments that apply to property owners within the Weld County School District boundaries. Not all overlapping rates apply to all District property owners; for example, although the county property taxes apply to all District property owners, only the city in which the property owner resides would apply. Page 85

105 Principal Property Tax Payers June 30, 2013 Schedule Percent of Percent of Taxable Total Taxable Taxable Total Taxable Assessed Assessed Assessed Assessed Taxpayer Rank Value Value Rank Value Value Noble Energy 1 $ 63,620, % Leprino Foods Company 2 32,240, % Kerr McGee Gathering LLC 3 25,851, % 1 $ 33,150, % Public Service Co. of Colorado (Xcel) 4 18,061, % Qwest Corp 5 14,811, % 3 12,487, % DCP Midstream LP 6 14,256, % Petroleum Development Corp 7 11,137, % JBS USA LLC 8 9,981, % Mineral Resources Inc 9 9,626, % Wal-Mart Property Tax Department 10 7,695, % 9 5,772, % ATMOS Energy Corp (Greeley Gas Co) 10 5,542, % Patina Oil & Gas Corporation 2 26,851, % Swift Foods Company 4 12,284, % Kerr McGee Rocky Mountain Corp 5 10,401, % Monfort of Colorado Inc. 7 6,374, % Comcast of Colorado LLC 8 6,214, % Macerich Greeley Associates 6 7,022, % Remaining Assessed Valuation 750,322, % 694,928, % Total Assessed Valuation $ 957,604, % $ 821,029, % Source: Weld County Assessor's Office Page 86

106 Property Tax Levies and Collections, Last Ten Fiscal Years Schedule 8 Fiscal Year Total Total Tax Current Percent of Delinquent Total Collections to Date Ended Collection Levy for Tax Current Taxes Tax Percentage June 30 Year (1) Fiscal Year Collections Collected Collections (2) Amount of Levy (3) ,688,814 35,639, % 111,892 35,751, % ,608,913 36,479, % 30,776 36,510, % ,084,338 36,780, % (55,412) 36,725, % ,977,001 37,174, % 17,683 37,191, % ,812,958 37,513, % 44,180 37,557, % ,199,858 37,156, % 93,866 37,250, % ,540,638 37,337, % 468,979 37,806, % ,266,137 34,615, % 586,507 35,201, % ,066,295 35,679, % 281,754 35,961, % ,535,765 36,935, % 235,231 37,170, % Source: School District financial records and Weld County Treasurer's Office Notes: (1) The current tax collections and delinquent tax collected amounts for the 2008 collection year include actual collections through June 30, 2008 only. (2) Negative tax collections represent taxes abated or refunded for prior years' levies. (3) Property tax collections include delinquent taxes which may make total collections exceed current year levy. (4) Delinquent taxes are reported by levy year rather than by collection year. $39,000,000 $38,000,000 $37,000,000 $36,000,000 $35,000,000 $34,000,000 $33,000,000 Total Tax Collections Page 87

107 Ratios of Outstanding Debt by Type, Last Ten Tax Years Schedule 9 Governmental Activities General Total Fiscal Obligation Capital Primary Percentage of Per Per Year Bonds Leases Government Personal Income Capita Student ,960, , ,656, % 1,380 6, ,525, , ,999, % 1,304 6, ,020, , ,277, % 1,238 6, ,185, ,185, % 1,146 5, ,975,000-97,975, % 892 5, ,530,000-92,530, % 872 5, ,245,000-87,245, % 761 4, ,705, ,205 82,049, % 715 4, ,960, ,462 76,401, % 658 4, ,117, ,273 78,442, % 689 3,838 Notes: - Details regarding the District's outstanding debt can be found in the notes to the financial statements. - Lease revenue bonds are included in the governmental activities general obligation bonds. - Personal income, population, and student data may be found at Schedule 13. $8,000 Total Primary Government Debt Per Student $6,000 $4,000 $2,000 $- Page 88

108 Ratios of General Bonded Debt Outstanding Last Ten Tax Years Schedule 10 Percentage of General Total Estimated Actual Fiscal Obligation Capital Primary Value of Per Per Year Bonds Leases Government Taxable Property Capita Student ,960, ,960, % 1,372 6, ,525, ,525, % 1,299 6, ,020, ,020, % 1,235 6, ,185, ,185, % 1,146 5, ,975,000-97,975, % 892 5, ,530,000-92,530, % 822 5, ,245,000-87,245, % 760 4, ,705, ,205 82,049, % 717 4, ,960, ,462 76,401, % 658 4, ,117, ,273 78,442, % 689 3,838 Notes: - Details regarding the District's outstanding debt can be found in the notes to the financial statements. - See Schedule 5 for property value data. - Personal income and population data may be found at Schedule 13. General Obligation Debt Per Capita $1,500 $1,200 $900 $600 $300 $- Page 89

109 Direct and Overlapping Governmental Activities Debt As of June 30, 2013 Schedule 11 Estimated Estimated Percentage Share of Debt Applicable to Overlapping Governmental Unit Outstanding The District Debt Outstanding Overlapping Debt: Central Colorado Water $ 30,000, % $ 1,143,000 Central Colorado Water Subdistrict 15,719, % 697,931 Central Colorado Water Well 13,958, % 1,199,057 Eaton Fire 610, % 118,081 Evans, City of 1,840, % 1,811,848 Evans Fire Protection District 700, % 698,180 High Plains Library 16,726, % 5,974,674 Kersey, Town of 1,422, % 171,953 Platte Valley Fire Protection 8,000, % 97,600 Milliken Fire 1,306, % 291,167 Milliken, Town of 1,965, % 9,039 Northern Colorado Water 4,487, % 1,565,290 Total Overlapping Debt 96,736,979 13,777,820 Direct Debt: direct debt 78,117, % 78,117,991 Capital Leases 324, % 324,273 Total Direct and Overlapping Debt $ 92,220,084 Source: Debt outstanding provided by each individual taxing district. Notes: - Includes only general obligation debt supported by general property taxes. - The information related to the estimated percentage applicable to the district was provided by the Weld County Assessor's Office. These rates were in existence at June 30, Page 90

110 Legal Debt Margin Information Schedule 12 Legal Debt Margin Calculation for Fiscal Year 2013 Assessed Value Actual Value Assessed or estimated actual value $ 957,604,659 $ 6,601,276,161 Legal debt limit percentage 25% 6% Legal debt limit (greater of the two amounts) $ 239,401,165 $ 396,076,570 Amount of debt applicable to debt limit: Total bonded debt 78,117,991 Less: Debt Service Fund available 10,970,934 Total amount of debt applicable to debt limit $ 67,147,057 Legal Debt Margin $ 328,929,513 Source: Finance Department Ten Year Summary Total Net Debt Total Net Debt Applicable to the Applicable Legal Limit as a % of Fiscal Year Debt Limit to Limit Debt Margin Debt Limit ,205, ,480,000 49,725, % ,999, ,315,000 70,684, % ,344,462 99,071,213 87,273, % ,604,800 94,124, ,480, % ,059,803 88,937, ,122, % ,979,105 82,989, ,989, % ,734,630 77,477, ,256, % ,318,344 72,440, ,877, % ,071,040 67,147, ,991, % ,076,570 67,147, ,929, % Source: records Note: - Under the Colorado Public School Finance Act of 1994, the limitation on bonded indebtedness is the greater of 25 percent of assessed value or 6 percent of actual value. Page 91

111 Demographic and Economic Statistics Last Ten Fiscal Years Schedule 13 Personal Per Income Capita FTE Fiscal (thousands Personal Median Student Unemployment Year Population of dollars) Income Age Enrollment Rate ,519 1,986,873 23, , % ,887 2,082,416 24, , % ,249 2,192,635 24, , % ,078 2,367,250 26, , % ,834 2,991,658 27, , % ,530 3,065,092 27, , % ,832 2,731,623 23, , % ,468 3,262,681 28, , % ,178 2,873,314 24, , % ,119 3,288,567 28, ,440 (1) Sources: Upstate Colorado Economic Development and State of Colorado Division of Local Government, State Demography Office Notes: (1) Figures not available at time of publication. 21,000 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 Student Enrollment Page 92

112 Principal Employers Current Year and Ten Years Ago Schedule Percentage of Percentage of Number of Total City Number of Total City Employer Rank Employees Employment Rank Employees Employment JBS Swift and Company (known as Swift & Company in 2003) 1 4, % 1 3, % University of Northern Colorado 2 3, % 3 2, % Banner Health 3 3, % Weld School District 6 4 2, % 2 2, % Vestas 5 1, % State Farm Insurance Companies 6 1, % 7 1, % Weld County Government 7 1, % 9 1, % Aims Community College % 6 1, % City of Greeley % % Carestream Health, Inc % North Colorado Medical Center 4 1, % Eastman Kodak 5 1, % Startek USA 8 1, % Total Principal Employers 20, % 17, % Total City of Greeley Labor Force 53,179 37,376 Source: Upstate Colorado Economic Development and Colorado Department of Labor and Employment Notes: - Total employee data is aggregate and gathered from various sources for the reporting purposes for Upstate Colorado Economic Development. This data differs slightly than the employee data recorded in Schedule 15 as that data is generated directly from district records. Page 93

113 Full-Time/Part-Time Employees by Function/Program Last Ten Fiscal Years Schedule FT PT Total FT PT Total FT PT Total FT PT Total FT PT Total Function/Program Teachers ,117 1, ,146 1, ,127 1, ,136 1, ,150 Paraprofessionals Administration Other Professionals School Support Total 1, ,166 1, ,326 1, ,238 1, ,313 1, , FT PT Total FT PT Total FT PT Total FT PT Total FT PT Total Function/Program Teachers 1, ,103 1, , ,107 1, ,124 1, ,118 Paraprofessionals Administration Other Professionals School Support Total 1, ,281 1, ,425 1, ,304 1, ,052 1, ,105 Source: records. Notes: - Information provided is as of December 31 of each respective year. - Total employee data is directly from the District's employee records; whereas, Schedule 14 is aggregate data gathered from various sources by the reporting entity. 3,000 2,500 2,000 1,500 1, Total Employees Page 94

114 Operating Statistics Last Ten Fiscal Years Schedule 16 Percent Students Students Receiving Receiving Governmental Cost Full-Time Pupil FTE/ Free or Free or Activities FTE Per Percentage Teaching Teacher Reduced Reduced Fiscal Year Expenses Enrollment Pupil Change Staff Ratio Meals Meals 2004 $ 123,517,357 16,814 $ 7, % , % ,254,297 17,201 7, % 1, , % ,095,154 17,382 7, % 1, , % ,959,046 17,304 8, % 1, , % ,322,057 17,553 8, % 1, , % ,610,116 18,089 8, % 1, , % ,626,855 18,098 8, % 1, , % ,499,616 18,437 8, % , % ,365,631 18,749 8, % 1, , % ,316,272 20,440 8, % 1, , % Notes: - Student enrollment is based on the full time equivalent (FTE), which is adjusted for half-day kindergarten and preschool programs at one half time. Student enrollment is as of the October count date of each year, as audited by the Colorado Department of Education. $10,000 Cost Per Pupil $8,000 $6,000 $4,000 $2,000 $- Page 95

115 School Building Information Last Ten Fiscal Years Schedule 17 % of Capacity Square Capacity Used Footage Elementary Schools A.K. Heiman % 75,632 Cameron % 47,954 Centennial % 53,347 Chappelow % 68,193 Dos Rios % 52,708 East Memorial % 52,396 Jackson % 51,795 Jefferson % 47,767 Madison % 52,325 Maplewood % 79,908 Martinez % 62,619 McAuliffe % 53,189 Meeker % 44,375 Monfort % 55,075 Romero % 72,400 Scott % 57,978 Shawsheen % 38,635 Winograd % 75,984 Total 7,903 8,033 8,291 8,455 8,820 9,267 9,317 9,470 9,388 8,877 10, % 1,042,280 Middle Schools Brentwood % 69,815 Franklin % 72,840 Heath % 92,949 John Evans , % 87,491 Maplewood % 79,908 Adelante % 6,344 Total 3,612 3,665 3,388 3,149 2,827 2,810 2,830 2,870 2,833 2,691 4, % 409,347 High Schools Central 1,301 1,321 1,297 1,285 1,359 1,353 1,406 1,418 1,382 1,440 1, % 198,466 Northridge 1,131 1,164 1,238 1,220 1,193 1,131 1,085 1, , % 195,000 West 1,432 1,329 1,362 1,375 1,481 1,464 1,461 1,457 1,503 1,449 1, % 177,307 Jefferson % 47,767 Trademark % - Total 3,958 3,905 3,993 3,980 4,134 4,063 4,158 4,195 4,136 4,096 5, % 618,540 Other Carson/Littler % - Colorado High % - Eng@ge N/A N/A - GAP N/A N/AA 5,467 Home School N/A N/AA - IBAC N/A N/A - Night School N/A N/AA - Out/District N/A N/AA - Platte Valley % - PS 100/ % - Transitional N/A N/A - Weld Opportunity % - Total % 5,467 Non-District Owned Sites Frontier Academy Charter ,017 1,049 1,080 1,108 1,266 1,367 1, % Union Colony Preparatory % Union Colony Elementary % University Schools ,022 1,042 1,071 1,192 1,283 1, % WestRidge % Total 1,849 1,985 2,125 2,218 2,427 2,520 2,567 2,866 3,256 3,796 2, % Total for District 17,877 18,210 18,332 18,403 18,808 19,337 19,442 19,851 20,151 20,408 24, % Source: Finance Department Page 96

116 Teacher Salary Information Last Ten Fiscal Years Schedule Total Total Average Total Total Average Total Total Average Total Total Average Education FTE Wages Salary FTE Wages Salary FTE Wages Salary FTE Wages Salary Ldrshp 1 N/A N/A N/A N/A N/A N/A N/A N/A N/A 12.5 $ 916,755 $ 73,340 Ldrshp 2 N/A N/A N/A N/A N/A N/A N/A N/A N/A ,625 73,875 Ldrshp 3 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A BA $ 3,594,269 $ 30, $ 3,433,296 $ 31, $ 5,147,063 $ 31, ,087,557 32,738 BA ,064,418 34, ,385,730 35, ,478,554 35, ,383,261 37,302 BA ,045,268 39, ,113,507 40, ,538,662 38, ,982,886 39,719 BA ,656,848 42, ,558,754 44, ,151,127 43, ,283,902 42,850 BA ,844,563 47, ,633,205 45, ,745,249 46, ,977,012 48,936 BA ,979,258 48, ,061,193 50, ,976,956 52, ,269,316 53,702 EDS ,636 52, ,071,634 53, ,566,630 52, ,471,996 53,527 MA ,894,336 42, ,229,182 43, ,915,645 41, ,631,036 42,627 MA ,930,513 47, ,404,386 47, ,031,286 47, ,741,746 47,726 MA ,605,890 52, ,356,525 51, ,155,654 51, ,991,771 53,424 MA ,181,544 54, ,687,803 57, ,355,157 55, ,844,488 57,295 MA ,035,891 56, ,201,875 58, ,676,197 60, ,347,351 61,419 MA ,420,030 60, ,390,768 61, ,606,661 62, ,000,178 64,310 PHD ,263 50, ,585 52, ,216 52, ,845 50,577 TOTAL $ 34,377,727 $ 45, $ 37,902,443 $ 46, $ 50,921,057 $ 46, $ 52,575,725 $ 48, Total Total Average Total Total Average Total Total Average Total Total Average Education FTE Wages Salary FTE Wages Salary FTE Wages Salary FTE Wages Salary Ldrshp $ 1,146,178 $ 78, $ 939,315 $ 78, $ 865,772 $ 78, $ 579,854 $ 82,836 Ldrshp ,639 78, ,152 80, ,792 82, ,403 85,175 Ldrshp 3 N/A N/A N/A ,816 81, ,068 79, ,396 81,198 BA ,190,857 34, ,995,783 35, ,690 79, ,128 82,426 BA ,112,764 38, ,023,279 40, ,285,241 34, ,001,700 33,597 BA ,276,644 42, ,586,494 43, ,849,019 39, ,571,049 38,838 BA ,743,187 46, ,162,989 46, ,287,094 42, ,962,347 42,319 BA ,260,778 50, ,764,411 53, ,195,221 47, ,788,443 47,064 BA ,420,753 57, ,965,301 59, ,572,552 50, ,385,235 51,305 EDS ,367,359 56, ,217,521 61, ,900,545 59, ,344,308 59,187 MA ,340,323 44, ,174,898 45, ,101,921 43, ,611,360 41,765 MA ,701,389 48, ,671,742 50, ,313,216 50, ,172,994 50,156 MA ,326,719 53, ,814,204 55, ,742,035 55, ,840,351 52,502 MA ,035,956 60, ,031,844 57, ,959,300 56, ,564,427 58,549 MA ,637,149 63, ,204,332 67, ,140,760 65, ,191,339 64,833 MA ,797,987 66, ,261,999 69, ,668,021 68, ,034,581 67,437 PHD ,683 53, ,670 56, ,848,720 58, ,257,154 58,025 TOTAL $ 53,424,365 $ 50, $ 54,207,750 $ 51, $ 55,857,967 $ 50, $ 52,561,069 $ 49, Total Total Average Total Total Average Education FTE Wages Salary FTE Wages Salary Ldrshp $ 304,624 $ 76, $ 166,342 $ 83,171 Ldrshp ,299 79, ,406 82,135 Ldrshp ,396 81, ,256 84,256 Ldrshp ,415 82, ,905 85,726 BA ,916,575 33, ,549,374 36,104 BA ,468,153 38, ,237,298 40,066 BA ,056,810 41, ,720,425 43,807 BA ,105,799 46, ,255,736 47,690 BA ,181,708 49, ,260,291 52,512 BA ,840,630 57, ,682,691 59,207 MA ,429,100 41, ,558,230 43,576 MA ,645,374 48, ,258,118 49,742 MA ,826,869 52, ,795,649 54,069 MA ,590,910 57, ,461,404 59,743 MA ,651,365 61, ,428,123 63,232 MA ,443,598 66, ,013,641 69,229 PHD/EDS ,233,123 57, ,472,208 60,151 TOTAL $ 51,742,748 $ 47, $ 54,533,097 $ 49,298 Source: Weld County School District Business Services and Human Resources Departments Notes: - Represents full-time, licensed classroom teachers as quantified by. - Salaries listed as base salary for each classification. Page 97

117 Miscellaneous Statistics Last Ten Fiscal Years Schedule 19 General General FTE Fund Percentage Fiscal Fund Student Expenditures Increase Inflation Year Expenditures (1) Enrollment Per Pupil (Decrease) Rate 2004 $ 92,717,501 16,814 $ 5, % 0.40% ,249,645 17,201 6, % 1.80% ,205,615 17,382 6, % 2.10% ,245,377 17,304 6, % 2.19% ,793,200 17,553 6, % 3.40% ,570,652 18,089 6, % -0.70% ,681,404 18,098 7, % 1.90% ,966,355 18,437 6, % 1.78% ,090,698 18,749 6, % 2.1% ,695,331 20,440 6, % (2) Source: Finance Department and U.S. Department of Labor, Bureau of Labor Statistics Notes: (1) The General Fund expenditures include the General Operating Fund, Dental Fund, Poudre Learning Center Fund, Risk Management Fund, and Colorado Preschool Fund. (2) 2013 inflation rate not yet available as of October Page 98

118 Single Audit Section Federal legislation provides for state and local government recipients of federal financial awards to have one audit performed to meet the needs of all federal grantor agencies. Information found in this section is a result of this Single Audit.

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125 WELD COUNTY SCHOOL DISTRICT 6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 Summary of Auditor s Results Financial Statements Type of auditor s report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weaknesses? None reported Noncompliance material to financial statements noted No Federal Awards Internal control over major programs: Material weaknesses identified? No Significant deficiencies identified that are not considered to be material weaknesses? None reported Type of auditor s report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? No Identification of major programs: CFDA Numbers Name of Federal Program or Cluster , IDEA Special Education Improving Teacher Quality Migrant Education School to Work Alliance Program Page 104

126 WELD COUNTY SCHOOL DISTRICT 6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 Dollar threshold used to distinguish between type A and type B programs $593,541 Auditee qualified as low-risk auditee? Yes Financial Statement Findings None. Findings and Questioned Costs for Federal Awards None. Page 105

127 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2013 Accrued Accrued (Deferred) (Deferred) Federal Revenue* Revenue* Federal Grantor/Pass-Through Grantor/Program Title CFDA# 6/30/2012 Receipts Disbursements 6/30/2013 US Department of Education Advanced Placement Incentive C 48, ,742 67,422 - Gaining Early Awareness and Readiness for ,513 9,500 (13) - Early Reading First B 112, , ,639 73,082 Passed through Colorado Department of Education Department of Education Title I Cluster Title I ,807,939 5,459,801 4,862,339 1,210,477 Alternative Homes for Youth A 2,660 7,224 6,581 2,017 Total Department of Education Title I Cluster 1,810,599 5,467,025 4,868,920 1,212,494 Special Education Cluster Special Education ,820 2,936,221 3,750,279 1,285,878 Special Education - Preschool ,203 95, ,789 34,721 Total of Special Education Cluster 484,023 3,031,492 3,868,068 1,320,599 Safe and Drug-Free Schools and Communities (165) Education of Homelss Children and Youth Cluster Education for Homeless Children and Youth ,195 24,276 25,844 4,763 Total of Education of Homeless Children and Youth Cluster 3,195 24,276 25,844 4,763 21st Century Community Learning Centers ,248 1,025,219 1,226, ,856 Education Technology State Grants Cluster Education Technology (871) - 47 (824) Total of Education Technology State Grants Cluster (871) - 47 (824) English Language Acquisition , , ,736 77,594 Math/Science Partnership , , ,495 87,973 Improving Teacher Quality , , , ,724 Services Vocational Rehabilitation (92,649) 194, ,546 45,906 Passed through Centennial Board of Cooperative Educational Services Migrant Education , , ,736 52,126 Passed through Colorado Community College and Occupational Education System Vocational Education , , ,158 73,681 TOTAL U.S. DEPARTMENT OF EDUCATION 3,115,534 12,220,761 12,784,200 3,678,973 Passed through Colorado Department of Education Child Nutrition Cluster School Breakfast Program ,891,689 2,073, ,642 National School Lunch Program ,241,398 4,618, ,272 Summer Food Service Program for Children , , ,023 73,388 Total of Child Nutrition Cluster 82,386 6,246,108 6,796, ,301 Fresh Fruit/Vegetable , , ,645 - Farm to School Implementation ,818 43,818 - TOTAL U.S. DEPARTMENT OF AGRICULTURE 116,880 6,485,065 7,000, ,301 TOTAL FEDERAL FINANCIAL ASSISTANCE $ 3,232,414 $ 18,705,826 $ 19,784,687 $ 4,311,275 * Numbers may appear to not add due to system rounding +/-. All numbers are based upon actual verified amounts. Page 106

128 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS June 30, 2013 NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in the financial statements. Commodities donated to the District by the U.S. Department of Agriculture (USDA) are valued based on the USDA s Donated commodity Price List and by values provided by the USDA. The commodities are recognized as revenue and expenses when received. Page 107

129 Colorado State Mandated Schedule Section Colorado Department of Education Auditor s Electronic Financial Data Integrity Check Figures The District is required to transmit financial data electronically to the Colorado Department of Education. To ensure data accuracy, it is mandated that this report be included in the and that it be verified by independent auditors specifically trained in state coding requirements.

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