INTERIM FINANCIAL STATEMENTS FOR THE ELEVEN MONTHS ENDED MAY 31, 2013

INTERIM FINANCIAL STATEMENTS FOR THE ELEVEN MONTHS ENDED MAY 31, 2013 Prepared by: Financial Reporting Accounting Department Division of Financial Management

INTERIM FINANCIAL STATEMENTS FOR THE ELEVEN MONTHS ENDED MAY 31, 2013 TABLE OF CONTENTS COMBINED BALANCE SHEET - ALL FUND TYPES 1 PAGE COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE / NET POSITION - ALL GOVERNMENTAL FUND TYPES, PROPRIETARY FUNDS AND PRIVATE PURPOSE TRUST FUND 2 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND 3 NOTES TO THE FINANCIAL STATEMENTS 4

COMBINED BALANCE SHEET - (MODIFIED ACCRUAL BASIS) ALL FUND TYPES MAY 31, 2013 (With prior year comparative totals) Governmental Fund Types PROPRIETARY FUND TYPE PRIVATE PURPOSE TRUST TOTALS (MEMORANDUM ONLY) ASSETS GENERAL SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS INTERNAL SERVICE FLORIDA FUTURE EDUCATORS MAY 2013 MAY 2012 JUNE 2012 ASSETS: Cash and investments $ 318,408,557 $ 18,731,447 $ 7,117,457 $ 330,739,087 $ 50,057,148 $ 414,087 $ 725,467,782 $ 826,652,671 $ 739,060,828 Taxes receivable (net of uncollectible taxes) - - - - - - - - 27,976,390 Accounts and interest receivable 1,843,361 - - - - - 1,843,361 1,610,279 1,167,505 Due from other governments or agencies 3,161,854 18,194,000-4,100,000 - - 25,455,854 20,452,551 25,469,381 Inventories 2,947,859 3,370,920 - - - - 6,318,779 7,616,480 8,524,868 Other assets - 135,483 - - - - 135,483 50,717 88,044 TOTAL ASSETS $ 326,361,631 $ 40,431,850 $ 7,117,457 $ 334,839,087 $ 50,057,148 $ 414,087 $ 759,221,259 $ 856,382,697 $ 802,287,015 LIABILITIES AND FUND BALANCE / NET POSITION LIABILITIES: Accounts and contracts payable and accrued items $ 5,969,806 $ 5,149,367 $ - $ 3,867,438 $ 40,150 $ - $ 15,026,761 $ 8,109,445 $ 29,724,958 Accrued payroll 23,819,928 2,277,537-69,418 16,303-26,183,186-78,789,500 Fringe benefits & taxes payable 25,585,214 2,769,047-79,188 17,818-28,451,267 6,327,529 27,317,832 Due to other governments or agencies - - 23,515 - - - 23,515 213,077 164,073 Retainage payable on contracts - 16,593-2,536,533 - - 2,553,126 4,197,305 4,228,848 Deposits payable 220,900 - - - - - 220,900 143,265 142,467 Deferred revenue 3,216,159 1,551,371-4,100,000 - - 8,867,530 3,246,829 7,871,170 Estimated unpaid claims - - - - 13,400,000-13,400,000 13,400,000 13,400,000 Compensated absences and OPEB - - - - 168,302-168,302 6,787,594 168,302 TOTAL LIABILITIES 58,812,008 11,763,915 23,515 10,652,577 13,642,573-94,894,586 42,425,044 161,807,149 FUND BALANCE / NET POSITION: Nonspendable 2,947,859 3,370,920 - - - - 6,318,779 7,616,480 8,524,868 Restricted 18,699,397 24,153,910 7,093,942 273,761,097-414,087 324,122,433 429,260,444 408,778,182 Committed - 1,143,105 - - - - 1,143,105 1,301,503 1,290,041 Assigned 194,789,418 - - 50,425,413 - - 245,214,831 312,523,196 135,316,217 Unassigned 51,112,949 - - - 36,414,575-87,527,525 63,256,031 86,570,557 TOTAL FUND BALANCE / NET POSITION 267,549,624 28,667,935 7,093,942 324,186,510 36,414,575 414,087 664,326,673 813,957,654 640,479,865 TOTAL LIABILITIES & FUND BALANCE / NET POSITION $ 326,361,631 $ 40,431,850 $ 7,117,457 $ 334,839,087 $ 50,057,148 $ 414,087 $ 759,221,259 $ 856,382,697 $ 802,287,015 The notes to the financial statements are an integral part of this statement. 1

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES / NET POSITION ALL GOVERNMENTAL FUND TYPES AND PRIVATE PURPOSE TRUST FUND FOR THE PERIOD ENDED MAY 31, 2013 (With prior year comparative totals) GOVERNMENTAL FUND TYPES SPECIAL REVENUE DEBT SERVICE CAPITAL PROJECTS PRIVATE PURPOSE TRUST TOTALS (MEMORANDUM ONLY) PROPRIETARY FUND TYPES FLORIDA FUTURE EDUCATORS MAY 2013 MAY 2012 MAY 2013 MAY 2012 REVENUES: GENERAL Local sources: Ad valorem taxes 777,850,302 - - 192,908,618-970,758,921 1,010,632,128 - - Food service sales 217,762 14,578,800 - - - 14,796,562 16,464,491 - - Interest income 468,570 23,238-473,175 764 965,747 911,982 78,883 22,347 Premium income - - - - - - - 148,474,522 150,307,314 Other income 47,997,690 3,532,203 6,407 3,719,016 34,830 55,290,146 56,904,454 4,473,193 26,411,150 Total local sources 826,534,325 18,134,241 6,407 197,100,810 35,594 1,041,811,375 1,084,913,055 153,026,598 176,740,811 State sources: Florida education finance program 171,013,612 - - - - 171,013,612 92,257,715 - - Class Size Reduction 187,903,419 - - - - 187,903,419 184,488,609 - - Food service sales - 948,218 - - - 948,218 951,784 - - Other 31,071,672 364,767-2,674,640-34,111,079 30,366,774 - - Total state sources 389,988,703 1,312,985-2,674,640-393,976,328 308,064,882 - - Federal sources: Food service sales - 54,501,922 - - - 54,501,922 49,614,134 - - Other 4,889,724 98,899,979 3,511,814 - - 107,301,516 115,660,008 - - Total federal sources 4,889,724 153,401,901 3,511,814 - - 161,803,439 165,274,142 - - TOTAL REVENUES 1,221,412,752 172,849,127 3,518,220 199,775,450 35,594 1,597,591,142 1,558,252,079 153,026,598 176,740,811 EXPENDITURES: Current: Instructional services 749,499,536 49,236,636 - - - 798,736,172 732,362,436 - - Instructional support services 84,664,114 47,151,689 - - - 131,815,803 123,310,966 - - Instructional related technology 4,622,440 67,969 - - - 4,690,409 4,608,756 - - Pupil transportation services 43,262,183 1,859,450 - - - 45,121,633 43,649,368 - - Operation and maintenance services 170,043,929 44,797 - - - 170,088,726 159,771,248-21,666,242 School administration 95,567,643 641,072 - - - 96,208,715 88,208,935 152,069,630 156,426,274 General administration 21,720,890 3,614,337 - - - 25,335,227 23,511,079-441,701 Food service 35,994 65,851,769 - - - 65,887,763 61,746,653 - - Community services and other 30,949,119 310,696 - - 69,504 31,329,318 27,523,168 - - Capital outlay: Facilities acquisition and construction 445,856 - - 40,767,949-41,213,805 23,960,556 - - Other capital outlay - - - 27,380,638-27,380,638 26,836,202 - - Debt service: Retirement of principal - - 56,535,000 - - 56,535,000 57,330,000 - - Payment of interest 53,411-83,305,749 - - 83,359,160 81,104,493 - - Dues, fees and other - - 658,116 - - 658,116 1,890,641 - - TOTAL EXPENDITURES 1,200,865,114 168,778,415 140,498,865 68,148,587 69,504 1,578,360,485 1,455,814,502 152,069,630 178,534,217 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 20,547,637 4,070,712 (136,980,645) 131,626,863 (33,910) 19,230,657 102,437,577 956,968 (1,793,406) OTHER FINANCING SOURCES (USES): Operating transfers in 76,842,465-36,375,746 - - 113,218,211 193,875,568 - - Operating transfers out - - - (113,218,211) - (113,218,211) (193,875,568) - - Proceeds from issuance of refunded debt - - 67,145,000 - - 67,145,000 172,930,000 - - Premium (discount) from issuance of long-term and refunded debt - - 10,990,044 - - 10,990,044 9,793,896 - - Payment of refunded bonds - - (77,968,550) - - (77,968,550) (182,170,085) - - Proceeds from loss recoveries 3,492,689 - - - - 3,492,689 3,051,752 - - Proceeds from sale of fixed assets and other - - - - - - 1,910 - - TOTAL OTHER FINANCING SOURCES (USES) 80,335,154-36,542,240 (113,218,211) - 3,659,183 3,607,473 - - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES & OTHER FINANCING USES 100,882,791 4,070,712 (100,438,406) 18,408,653 (33,910) 22,889,840 106,045,050 956,968 (1,793,406) BEGINNING FUND BALANCES / NET POSITION 166,666,832 24,597,223 107,532,348 305,777,858 447,997 605,022,258 700,420,474 35,457,607 9,285,535 ENDING FUND BALANCES / NET POSITION $ 267,549,624 $ 28,667,935 $ 7,093,942 $ 324,186,510 $ 414,087 $ 627,912,098 $ 806,465,524 $ 36,414,575 $ 7,492,130 The notes to the financial statements are an integral part of this statement. 2

run @ THE SCHOOL DISTRICT OF PALM BEACH COUNTY, FLORIDA 6/25/13 7:47 AM GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL FOR THE PERIOD ENDED MAY 31, 2013 VARIANCE REVENUES BUDGET MAY 2013 FAVORABLE (UNFAVORABLE) % OF BUDGET MAY 2012 Local sources: Ad valorem taxes $ 795,917,815 $ 777,850,302 $ (18,067,513) -2.3% $ 817,072,019 Child care fees 24,000,000 22,373,120 (1,626,880) -6.8% 21,039,240 Course fees 2,360,000 2,243,101 (116,899) -5.0% 2,076,483 Receipt of federal indirect cost rate 4,000,000 5,107,262 1,107,262 27.7% 3,602,553 Interest income 640,000 468,570 (171,430) -26.8% 499,856 Miscellaneous 21,614,630 18,491,970 (3,122,660) -14.4% 21,953,532 Total local sources 848,532,445 826,534,325 (21,998,120) -2.6% 866,243,683 State sources: Florida education finance program 187,319,642 171,013,612 (16,306,030) -8.7% 92,257,715 Workforce development performance 18,795,768 17,229,443 (1,566,325) -8.3% 16,342,634 Discretionary lottery - - - 300,296 Class size reduction 205,974,955 187,903,419 (18,071,536) -8.8% 184,488,609 School recognition 10,436,226 10,436,226-0.0% 7,320,126 Miscellaneous 4,385,372 3,406,003 (979,369) -22.3% 3,420,419 Total state sources 426,911,963 389,988,703 (36,923,260) -8.6% 304,129,799 Federal sources: Federal impact 6,000 8,228 2,228 37.1% 4,937 ROTC 660,000 723,389 63,389 9.6% 656,630 Medicaid reimbursement 5,700,000 4,147,521 (1,552,479) -27.2% 5,636,675 Miscellaneous - 10,586 10,586 (39) Total federal sources 6,366,000 4,889,724 (1,476,276) -23.2% 6,298,203 TOTAL REVENUES 1,281,810,408 1,221,412,752 (60,397,656) -4.7% 1,176,671,685 EXPENDITURES: Current: Instructional services 955,105,834 749,499,536 205,606,298 21.5% 678,785,643 Pupil personnel services 41,877,510 32,648,183 9,229,327 22.0% 29,938,193 Instructional media services 18,616,058 15,042,363 3,573,695 19.2% 14,521,596 Instr & curriculum development services 31,438,402 26,839,595 4,598,806 14.6% 22,749,799 Instructional staff training 13,119,264 10,133,973 2,985,291 22.8% 9,489,224 Instruction related technology 5,826,003 4,622,440 1,203,563 20.7% 4,438,144 Total instructional support services 110,877,236 89,286,554 21,590,683 19.5% 81,136,955 Pupil transportation services 45,276,378 43,262,183 2,014,196 4.4% 41,050,893 Operation of plant 128,076,698 112,073,743 16,002,954 12.5% 106,988,866 Maintenance of plant 68,737,293 57,970,186 10,767,107 15.7% 52,139,445 Total operation & maint of plant 196,813,991 170,043,929 26,770,062 13.6% 159,128,311 School administration 92,694,003 83,727,650 8,966,353 9.7% 76,886,665 Central services 14,427,576 11,839,992 2,587,584 17.9% 10,609,539 Total school administration 107,121,579 95,567,643 11,553,936 10.8% 87,496,204 General administration 5,773,597 4,856,118 917,479 15.9% 4,870,870 Fiscal services 5,800,743 5,144,445 656,298 11.3% 4,651,316 Board of education 6,893,910 4,846,504 2,047,407 29.7% 4,199,315 Administrative technology services 8,245,800 6,873,824 1,371,976 16.6% 7,349,774 Total general administration 26,714,050 21,720,890 4,993,160 18.7% 21,071,275 Community services and other 37,968,318 30,985,112 6,983,206 18.4% 27,280,018 Facilities acquisition and construction 839,920 445,856 394,064 46.9% 1,005,075 Debt Service: Payment of interest 141,971 53,411 88,560 62.4% 48,875 TOTAL EXPENDITURES 1,480,859,278 1,200,865,114 279,994,163 18.9% 1,097,003,250 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (199,048,870) 20,547,637 219,596,507-110.3% 79,668,435 OTHER FINANCING SOURCES (USES): Operating transfers in 84,102,703 76,842,465 (7,260,238) -8.6% 65,912,661 Operating transfers out (607,716) - 607,716-100.0% - Proceeds from loss recoveries - 3,492,689 3,492,689 3,051,752 TOTAL OTHER FIN SOURCES (USES) 83,494,987 80,335,154 (3,159,833) -3.8% 68,964,413 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES & OTHER FIN USES (115,553,883) 100,882,791 216,436,674-187.3% 148,632,848 BEGINNING FUND BALANCE 166,666,832 166,666,832 97,031,967 ENDING FUND BALANCE $ 51,112,949 $ 267,549,624 $ 245,664,815 The notes to the financial statements are an integral part of this statement. 3

NOTES TO THE FINANCIAL STATEMENTS FOR THE ELEVEN MONTHS ENDED MAY 31, 2013 (1) The School District budgets 96% of the property taxes levied, as allowed by state statute, as revenue in all applicable funds. The District has not accrued 96% of the taxes levied, the Florida Education Finance Program revenues or other state categorical program revenues in the interim financial statements. (2) The modified accrual basis of accounting is utilized by all funds except for the proprietary funds and the interim financial statements are presented utilizing this basis of accounting. (a) Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become available and measurable. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period and available to liquidate current liabilities. (b) Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, except for un-matured interest on general long-term debt, which is recognized when the interest is due. 4