CREIGHTON ELEMENTARY SCHOOL DISTRICT NO. 14 PHOENIX, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

Similar documents
HEBER-OVERGAARD UNIFIED SCHOOL DISTRICT NO. 6

ALHAMBRA ELEMENTARY SCHOOL DISTRICT NO. 68

ALHAMBRA ELEMENTARY SCHOOL DISTRICT NO. 68

SUNNYSIDE UNIFIED SCHOOL DISTRICT NO. 12 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

CHINLE UNIFIED SCHOOL DISTRICT NO. 24

BUCKEYE ELEMENTARY SCHOOL DISTRICT NO. 33

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97

BUCKEYE ELEMENTARY SCHOOL DISTRICT NO. 33

SUNNYSIDE UNIFIED SCHOOL DISTRICT NO. 12 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

QUEEN CREEK UNIFIED SCHOOL DISTRICT NO. 95

SUNNYSIDE UNIFIED SCHOOL DISTRICT NO. 12 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Deer Valley Unified School District #97

BUCKEYE UNION HIGH SCHOOL DISTRICT NO.

CAVE CREEK UNIFIED SCHOOL DISTRICT NO. 93

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17

KAYENTA UNIFIED SCHOOL DISTRICT NO. 27

ALHAMBRA ELEMENTARY SCHOOL DISTRICT NO. 68

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97 PHOENIX, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

BUCKEYE ELEMENTARY SCHOOL DISTRICT NO. 33

TOLLESON UNION HIGH SCHOOL DISTRICT NO. 214

QUEEN CREEK UNIFIED SCHOOL DISTRICT NO. 95

KAYENTA UNIFIED SCHOOL DISTRICT NO. 27

QUEEN CREEK UNIFIED SCHOOL DISTRICT NO. 95

DYSART UNIFIED SCHOOL DISTRICT NO. 89

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17

CAVE CREEK UNIFIED SCHOOL DISTRICT NO. 93

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97

SANTA CRUZ VALLEY UNIFIED SCHOOL DISTRICT NO. 35 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

BENSON UNIFIED SCHOOL DISTRICT NO. 9 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

ROOSEVELT ELEMENTARY SCHOOL DISTRICT NO. 66

SANTA CRUZ VALLEY UNIFIED SCHOOL DISTRICT NO. 35 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013

HIGLEY UNIFIED SCHOOL DISTRICT NO. 60

RIVERSIDE ELEMENTARY SCHOOL DISTRICT NO. 2

COMPREHENSIVE ANNUAL FINANCIAL REPORT

CHINO VALLEY UNIFIED SCHOOL DISTRICT NO. 51

HIGLEY UNIFIED SCHOOL DISTRICT NO. 60 GILBERT, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

PRESCOTT UNIFIED SCHOOL DISTRICT NO. 1

TEMPE UNION HIGH SCHOOL DISTRICT NO. 213

Annual Financial Report for the Fiscal Year Ended June 30, 2012

LAKE HAVASU UNIFIED SCHOOL DISTRICT NO. 1

COOLIDGE UNIFIED SCHOOL DISTRICT NO. 21 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013

CATALINA FOOTHILLS UNIFIED SCHOOL DISTRICT NO. 16

SIERRA VISTA UNIFIED SCHOOL DISTRICT NO. 68

PRESCOTT UNIFIED SCHOOL DISTRICT NO. 1

WASHINGTON ELEMENTARY SCHOOL DISTRICT NO. 6

CHANDLER UNIFIED SCHOOL DISTRICT NO. 80

TEMPE UNION HIGH SCHOOL DISTRICT NO. 213

LAKE HAVASU UNIFIED SCHOOL DISTRICT NO. 1

LITTLETON ELEMENTARY SCHOOL DISTRICT NO. 65

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17

TOLTEC SCHOOL DISTRICT NO. 22 ELOY, ARIZONA

MURPHY ELEMENTARY SCHOOL DISTRICT NO. 21

ROOSEVELT ELEMENTARY SCHOOL DISTRICT NO. 66

LAKE HAVASU UNIFIED SCHOOL DISTRICT NO. 1

City of Tombstone, Arizona Financial Statements. Year Ended June 30, 2016

WESTERN MARICOPA EDUCATION CENTER DISTRICT NO. 402

TEMPE UNION HIGH SCHOOL DISTRICT NO. 213

Hanáádlí Community School Dormitory, Inc. Single Audit Reporting Package. Year Ended June 30, 2016

PHOENIX, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE

Casa Blanca Community School, Inc. Single Audit Reporting Package. Year Ended June 30, 2017

DENMARK-OLAR SCHOOL DISTRICT NO. TWO BAMBERG COUNTY, S. C. BASIC FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION JUNE 30, 2015

The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97

Theodore Roosevelt Boarding School Single Audit Reporting Package. Year Ended June 30, 2016

CARTWRIGHT ELEMENTARY SCHOOL DISTRICT NO. 83

LOMBARD ELEMENTARY SCHOOL DISTRICT 44 LOMBARD, ILLINOIS

Ross Local School District, Butler County, Ohio

CITY OF ATWATER, CALIFORNIA ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016

TEMPE ELEMENTARY SCHOOL DISTRICT NO. 3 TEMPE, ARIZONA. Inspire Excellence Every Child Every Adult Every Day

COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE PAYSON UNIFIED SCHOOL DISTRICT NO. 10 PAYSON, ARIZONA FOR THE YEAR ENDED JUNE 30, 2017

DENMARK-OLAR SCHOOL DISTRICT NO. TWO BAMBERG COUNTY, S. C. BASIC FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION JUNE 30, 2017

The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a

SNOWFLAKE UNIFIED SCHOOL DISTRICT NO. 5

Independent Auditor s Report

Independent Auditor s Report

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205 GLENDALE, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

MINGO COUNTY BOARD OF EDUCATION

The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a

DORCHESTER COUNTY SCHOOL DISTRICT NUMBER FOUR ST. GEORGE, SOUTH CAROLINA

REPORT ANNUAL FINANCIAL COMPREHENSIVE. as of and for the year ended June 30, 2018

MONTGOMERY INDEPENDENT SCHOOL DISTRICT

INDEPENDENT SCHOOL DISTRICT NO Atwater/Cosmos/Grove City, Minnesota AUDITED FINANCIAL STATEMENTS. For the Year Ended June 30, 2015

Tecumseh Public Schools Tecumseh, Michigan FINANCIAL STATEMENTS. June 30, 2018

GEORGETOWN INDEPENDENT SCHOOL DISTRICT. Annual Financial Report for the Fiscal Year Ended June 30, 2015

DOUGLAS COUNTY SCHOOL DISTRICT NO. 4 ROSEBURG, OREGON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

WILLIAMSVILLE CENTRAL SCHOOL DISTRICT, NEW YORK Basic Financial Statements, Required Supplementary Information, Supplementary Information and Federal

TOWN OF ASHFORD, CONNECTICUT BASIC FINANCIAL STATEMENTS, SUPPLEMENTARY INFORMATION, AND INDEPENDENT AUDITOR S REPORT

BOARD OF EDUCATION OF CARROLL COUNTY MANAGEMENT S DISCUSSION AND ANALYSIS, FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION

Town of Standish. Annual Financial Statements For the Year Ended June 30, Independently Audited By

The following document was not prepared by the Office of the State Auditor, but was prepared by and submitted to the Office of the State Auditor by a

Financial Statements Year Ended June 30, 2012

LANCASTER COUNTY SCHOOL DISTRICT

COLUMBIA SCHOOL DISTRICT. Audited Financial Statements For the Year Ended June 30, 2016

MESA UNIFIED SCHOOL DISTRICT NO. 4 MESA, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013

LEE COUNTY SCHOOL DISTRICT BISHOPVILLE, SOUTH CAROLINA

Financial Section. Independent Auditor s Opinion. Management s Discussion and Analysis. Government-Wide Financial Statements

DeSoto Independent School District. Annual Financial Report For the Fiscal Year Ended June 30, 2018

MINGO COUNTY BOARD OF EDUCATION

Branch County, Michigan. Annual Financial Report

Transcription:

PHOENIX, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Issued by: Business and Finance Department

TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal ASBO Certificate of Excellence Organizational Chart List of Principal Officials Page i vi vii viii FINANCIAL SECTION INDEPENDENT AUDITORS REPORT 1 MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Assets 18 Statement of Activities 19 Fund Financial Statements: Balance Sheet Governmental Funds 22 Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Assets 25 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds to the Statement of Activities 28 Statement of Fiduciary Assets and Liabilities 29 Notes to Financial Statements 30

TABLE OF CONTENTS (Cont d) FINANCIAL SECTION (Cont d) Page SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Required Supplementary Information) General Fund 50 Title I Grants Fund 51 Note to Required Supplementary Information 52 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds: Combining Balance Sheet All Non-Major Governmental Funds By Fund Type 56 Combining Statement of Revenues, Expenditures and Changes in Fund Balances All Non-Major Governmental Funds By Fund Type 57 Special Revenue Funds: Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 66 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual 72 Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 92

TABLE OF CONTENTS (Cont d) FINANCIAL SECTION (Concl d) Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl d) Capital Projects Funds: Combining Balance Sheet 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 96 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual 98 Agency Funds: Combining Statement of Fiduciary Assets and Liabilities 106 Combining Statement of Changes in Fiduciary Assets and Liabilities 107 STATISTICAL SECTION Financial Trends: Net Assets by Component 110 Expenses, Program Revenues, and Net (Expense)/Revenue 111 General Revenues and Total Changes in Net Assets 113 Fund Balances Governmental Funds 115 Governmental Funds Revenues 117 Governmental Funds Expenditures and Debt Service Ratio 119 Other Financing Sources and Uses and Net Changes in Fund Balances Governmental Funds 121

TABLE OF CONTENTS (Concl d) STATISTICAL SECTION (Concl d) Page Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 122 Direct and Overlapping Property Tax Rates 123 Principal Property Taxpayers 124 Property Tax Levies and Collections 125 Debt Capacity: Outstanding Debt by Type 126 Direct and Overlapping Governmental Activities Debt 127 Legal Debt Margin Information 128 Demographic and Economic Information: County-Wide Demographic and Economic Statistics 129 Principal Employers 130 Operating Information: Full-Time Equivalent District Employees by Type 131 Operating Statistics 133 Teacher Base Salaries 134 Capital Assets Information 135

(This page intentionally left blank)

INTRODUCTORY SECTION

(This page intentionally left blank)

December 17, 2012 2702 East Flower Street Phoenix, Arizona 85016 (602) 381-6024 Fax (602) 381-6020 GOVERNING BOARD President: Mr. Carl Zaragoza Clerk: Ms. Tiffany Arenas Members: Ms. Donna Young Ms. Robin Ferguson Mr. Matt Jewett Charlotte Boyle, Ed.D. Superintendent Quality Instruction... Caring Teachers... Successful Students... www.creightonschools.org Citizens and Governing Board Creighton Elementary School District No. 14 2702 East Flower Street Phoenix, Arizona 85016 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Creighton Elementary School District No. 14 (District) for the fiscal year ended June 30, 2012. This report consists of management s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. i

The District s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. 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, 2012, 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 auditors 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, 2012, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations 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 District 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 a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 58 public school districts located in Maricopa County, Arizona. It provides a program of public education from kindergarten through grade eight. Creighton Elementary School District No. 14 is located in the central portion of Maricopa County, Arizona. The District encompasses an area of approximately twelve square miles. A major portion of the area lies within the City of Phoenix. The Town of Paradise Valley overlaps the northern portion of the District. In 2012, the population of the District was estimated to be approximately 73,153. The District s boundaries are located three miles northeast from the downtown Phoenix business area. The District is primarily a residential area. No employment figures are available for the District; however, figures provided by the United States Bureau of Labor Statistics indicates that non-farm employment for the Phoenix metropolitan area stood at 1,723,500 for 2012, an increase of 2% from the prior year. ii

Major Initiatives: Squaw Peak Traditional Academy is now Biltmore Preparatory Academy. That school continues to phase in higher grades in its foreign language immersion strand and its traditional school strand continues to grow as well. The District is about to enter the fifth year of a five year agreement with WestEd and the Ellis Center for Educational Excellence in order to improve learning and achievement District wide. The District opened a rebuilt Papago Elementary School in January, 2012. This project was funded by bonds authorized by voters in November, 2009. The District s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District s major operations include education, student transportation, construction and maintenance of District facilities, and food service. The annual expenditure budget serves as the foundation for the District s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the District s ability to expend monies. iii

FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The retail industry is the largest employment sector in the county, with medical and service industries and industrial/manufacturing. The District has experienced steady decreases in average daily membership ( ADM ) from a high of 7,980 in fiscal year 2003-04 to 6,139 in fiscal year 2011-12. Prior to that, the District experienced growth from an ADM of 6,947 in fiscal year 1995-96 to 7,980 in fiscal year 2003-04. The District is challenged to provide teaching staff and ancillary services to meet growing student needs. The District is also involved in aligning its curriculum to State standards and to providing staff development for teachers. Long-term Financial Planning. The District received the final report from the Long Range Facilities Planning Committee in April 2009 and has embarked upon a bond program to update its older schools. An authorization of 44 million was passed in November 2009 to continue this process. The rebuilding of Papago Elementary School was completed in January, 2012. A continuing decline in enrollment has combined with an economy that is not forecast to rebound for several years make conservative use of our state and federal funds a high priority. State and federal funds include Maintenance and Operations funds, Capital Outlay funds, and state and federal grant programs. District budgeting timelines and methods have been updated to account for these trends. The average age of the school buildings is 44 years. AWARDS AND ACKNOWLEDGMENTS Awards. 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, 2011. In order to be awarded this certificate, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. This certificate is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the program requirements and we are submitting it to ASBO to determine its eligibility for the fiscal year 2011-12 certificate. iv

Acknowledgments. The preparation of the comprehensive annuall financial report on a timely basis was made possible by the dedicated service of thee entire stafff of the business and finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted, Dr. Charlotte Boyle Superintendent Scott Walmer Director of Finance v

This Certificate of Excellence in Financiall Reporting is presented to CREIGHTON ELEMENTARY SCHOOL DISTRICTT NO. 14 For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2011 Upon recommendation of the Association s Panel of Review which hass judged that the Report substantially conforms to principles and standards of ASBO s Certificate of Excellence Program President Executive Director vi

vii

LIST OF PRINCIPAL OFFICIALS GOVERNING BOARD Mr. Carl Zaragoza Governing Board President Ms. Tiffany Arenas Governing Board Clerk Ms. Robin Ferguson Governing Board Member Mr. Matt Jewett Governing Board Member Ms. Donna Young Governing Board Member ADMINISTRATIVE STAFF Dr. Charlotte Boyle Superintendent Dr. Jim Bogner Assistant Superintendent for Education Services viii

FINANCIAL SECTION

(This page intentionally left blank)

3033 N. Central Ave., Suite 300 Phoenix, Arizona 85012 Tel (602) 277-9449 Fax (602) 277-9297 INDEPENDENT AUDITORS REPORT Governing Board Creighton Elementary School District No. 14 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Creighton Elementary School District No. 14 (District), as of and for the year ended June 30, 2012, which collectively comprise the District s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Creighton Elementary School District No. 14, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2012, on our consideration of the Creighton Elementary School District No. 14 s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. TUCSON PHOENIX FLAGSTAFF ALBUQUERQUE www.heinfeldmeech.com

Accounting principles generally accepted in the United States of America require that the management s discussion and analysis on pages 5 through 14 and budgetary comparison information on pages 50 through 52 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District s financial statements as a whole. The accompanying supplementary information such as the introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 17, 2012 Page 2

Page 3 MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information)

Page 4 (This page intentionally left blank)

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 As management of the Creighton Elementary School District No. 14 (District), we offer readers of the District s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS The District s total net assets of governmental activities increased 2.5 million which represents a 3 percent increase from the prior fiscal year which was not significant. General revenues accounted for 41.3 million in revenue, or 70 percent of all current fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for 17.8 million or 30 percent of total current fiscal year revenues. The District had approximately 56.6 million in expenses related to governmental activities, a decrease of 11 percent from the prior fiscal year. Among major funds, the General Fund had 34.2 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and 33.7 million in expenditures. The General Fund s fund balance increase from 5.7 million at the prior fiscal year end to 6.7 million at the end of the current fiscal year was primarily due to reduced spending caused by budgetary restrictions. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the District s basic financial statements. The District s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements. Page 5

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Cont d) The statement of net assets presents information on all of the District s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the District s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). The government-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, operation of non-instructional services, and interest on long-term debt. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows 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 the District 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 revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Page 6

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Concl d) Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, Title I Grants Fund, Debt Service Fund and Bond Building Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District s own programs. Due to their custodial nature, fiduciary funds do not have a measurement focus. Notes to the financial statements. The notes 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 the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances budget and actual has been provided for the General Fund and the Title I Grants Fund as required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of a government s financial position. In the case of the District, assets exceeded liabilities by 83.9 million at the current fiscal year end. The largest portion of the District s net assets reflects its investment in capital assets (e.g., land and improvements; buildings and vehicles, furniture and equipment), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District s net assets are restricted by statute for special purposes, debt service repayment and capital outlay investment. Page 7

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont d) The following table presents a summary of the District s net assets for the fiscal years ended June 30, 2012 and June 30, 2011. As of As of June 30, 2012 June 30, 2011 (as restated) Current assets 25,505,869 36,309,671 Capital assets, net 84,042,877 73,907,869 Total assets, net 109,548,746 110,217,540 Current liabilities 3,729,862 3,916,556 Long-term liabilities 21,900,578 24,873,415 Total liabilities 25,630,440 28,789,971 Net assets: Invested in capital assets, net of related debt 67,367,584 65,893,468 Restricted 7,709,272 8,765,840 Unrestricted 8,841,450 6,768,261 Total net assets 83,918,306 81,427,569 At the end of the current fiscal year the District reported positive balances in all three categories of net assets. The same situation held true for the prior fiscal year. The District s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions that have had an impact on the Statement of Net Assets. The principal retirement of 3.1 million of bonds. The addition of 12.9 million in capital assets through the construction of new schools, and other school improvements and purchases of vehicles, furniture and equipment. Reductions in construction contracts payable of 2.1 million due to the completion of capital projects that were in progress at the end of the prior fiscal year. Page 8

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont d) Changes in net assets. The District s total revenues for the current fiscal year were 59.1 million. The total cost of all programs and services was 56.6 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2012 and June 30, 2011. Fiscal Year Ended June 30, 2012 Fiscal Year Ended June 30, 2011 (as restated) Revenues: Program revenues: Charges for services 678,678 426,065 Operating grants and contributions 15,754,029 16,367,577 Capital grants and contributions 1,396,947 170,165 General revenues: Property taxes 17,404,014 15,182,643 Investment income 113,550 407,876 Unrestricted county aid 2,178,328 2,393,457 Unrestricted state aid 21,472,607 23,647,561 Unrestricted federal aid 130,615 291,638 Total revenues 59,128,768 58,886,982 Expenses: Instruction 28,466,007 34,291,182 Support services students and staff 9,296,872 10,158,673 Support services administration 5,933,071 5,943,645 Operation and maintenance of plant services 5,716,728 5,295,311 Student transportation services 2,119,602 2,103,349 Operation of non-instructional services 4,455,891 4,505,756 Interest on long-term debt 649,860 753,533 Total expenses 56,638,031 63,051,449 Change in net assets 2,490,737 (4,164,467) Net assets, beginning 81,427,569 85,592,036 Net assets, ending 83,918,306 81,427,569 Page 9

CREIGHTON ELEMENTA ARY SCHOOL DISTRICT NO. 14 MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont d) Expenses 35 30 25 Millions 20 15 10 5 0 FY2011-12 FY2010-11 The following are significant current year transactions that had an impact on the change in net assets. Expenses in the previous year included a loss on n capital assets which didd not occur in the current year. Decreased student counts, which led to reductions in state aid of 2.2 million. The following table presents the cost of the District s major functional activities. The table also shows each function s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and District s taxpayers by each of thesee functions. Page 10

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl d) Year Ended June 30, 2011 Year Ended June 30, 2012 (as restated) Total Expenses Net (Expense)/ Revenue Total Expenses Net (Expense)/ Revenue Instruction 28,466,007 (22,673,710) 34,291,182 (35,575,928) Support services students and staff 9,296,872 (4,645,795) 10,158,673 (3,757,871) Support services administration 5,933,071 (5,617,053) 5,943,645 (5,621,931) Operation and maintenance of plant services 5,716,728 (4,643,574) 5,295,311 (4,855,112) Student transportation services 2,119,602 (2,024,381) 2,103,349 (2,103,349) Operation of non-instructional services 4,455,891 1,353,514 4,505,756 844,860 Interest on long-term debt 649,860 (557,378) 753,533 (753,533) Total 56,638,031 (38,808,377) 63,051,449 (51,822,864) The cost of all governmental activities this year was 56.6 million. Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of 17.8 million. Net cost of governmental activities of 38.8 million was financed by general revenues, which are made up of primarily property taxes of 17.4 million and state aid of 21.5 million. FINANCIAL ANALYSIS OF THE DISTRICT S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal 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, unassigned fund balance may serve as a useful measure of the District s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of 16.6 million, a decrease of 11.2 million due primarily to the use of unexpended bond proceeds. Page 11

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 FINANCIAL ANALYSIS OF THE DISTRICT S FUNDS (Concl d) The General Fund comprises 40 percent of the total fund balance. Approximately 6.2 million or 92 percent of the General Fund s fund balance constitutes unassigned fund balance. The General Fund is the principal operating fund of the District. The fund balance increased 987,178 in the General Fund to 6.7 million as of fiscal year end. General Fund expenditures decreased 3.8 million. This was a result of reduced-spending due to budgetary restrictions. The fund balance of the Debt Service Fund decreased 61,209 to 362,104 as of fiscal year end, to meet changes in bonded debt requirements. The decrease in fund balance in the Bond Building Fund of 11.5 million as of fiscal year end was a result of expenditures of bond proceeds for school construction projects. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for late finalized state budget legislation. The difference between the original budget and the final amended budget was a 561,621 decrease, or 2 percent. Significant variances for the final amended budget and actual revenues resulted from the District not being required by the State of Arizona to prepare a revenue budget. A schedule showing the original and final budget amounts compared to the District s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows: The favorable variances of 488,616 in operation and maintenance of plant services and 146,823 in student transportation services were a result of budgeting in anticipation of construction of a new elementary school. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested 84.0 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of 12.2 million from the prior year, primarily due to the completion of Papago Elementary School. Total depreciation expense for the current fiscal year was 2.7 million. Page 12

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl d) The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2012 and June 30, 2011. As of As of June 30, 2012 June 30, 2011 (as restated) Capital assets non-depreciable 9,433,427 17,377,383 Capital assets depreciable, net 74,609,450 56,530,486 Total 84,042,877 73,907,869 Additional information on the District s capital assets can be found in Note 6. Debt Administration. At year-end, the District had 19.0 million in long-term debt outstanding, 3.6 million due within one year. This represents a net decrease of 3.1 million, due to the principal retirement of bonds. The District s general obligation bonds are subject to two limits; the constitutional debt limit (total debt limit) on all general obligation bonds (up to 15 percent of the total secondary assessed valuation) and the statutory debt limit on Class B bonds (the greater of 5 percent of the secondary assessed valuation or 1,500 per student). The current total debt limitation for the District is 65.3 million and the Class B debt limit is 21.8 million, which are more than the District s total outstanding general obligation and Class B debt, respectively. Additional information on the District s long-term debt can be found in Notes 7 through 9. ECONOMIC FACTORS AND NEXT YEAR S BUDGET AND RATES Many factors were considered by the District s administration during the process of developing the fiscal year 2012-13 budget. Among them: Fiscal year 2011-12 budget balance carry forward (estimated 493,357). District student population (estimated 6,120). District salaries were frozen for the fiscal year 2012-13. Also considered in the development of the budget is the local economy and inflation of the surrounding area. Budgeted expenditures in the General Fund decreased 1 percent to 32.5 million in fiscal year 2012-13. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2012-13 budget. Page 13

MANAGEMENT S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 CONTACTING THE DISTRICT S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District s finances and to demonstrate the District s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business and Finance Department, Creighton Elementary School District No. 14, 2702 East Flower Street, Phoenix, Arizona 85016. Page 14

Page 15 BASIC FINANCIAL STATEMENTS

Page 16 (This page intentionally left blank)

Page 17 GOVERNMENT-WIDE FINANCIAL STATEMENTS

STATEMENT OF NET ASSETS JUNE 30, 2012 ASSETS Current assets: Cash and investments Deposit Property taxes receivable Due from governmental entities Prepaid items Inventory Total current assets Noncurrent assets: Land Land improvements Buildings and improvements Vehicles, furniture and equipment Accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Construction contracts payable Credit line payable Accrued payroll and employee benefits Compensated absences payable Accrued interest payable Unearned revenues Obligations under capital leases Bonds payable Total current liabilities Noncurrent liabilities: Non-current portion of long-term obligations Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Federal and state projects Food service Other local initiatives Debt service Capital outlay Unrestricted Total net assets Governmental Activities 12,504,826 100,098 1,902,399 10,451,130 368,888 178,528 25,505,869 9,433,427 3,809,146 103,839,361 8,473,994 (41,513,051) 84,042,877 109,548,746 370,963 386,071 2,329,000 222,028 600,000 324,555 97,245 52,176 3,550,000 7,932,038 17,698,402 17,698,402 25,630,440 67,367,584 1,376,335 2,329,284 755,352 546,350 2,701,951 8,841,450 83,918,306 Page 18 The notes to the basic financial statements are an integral part of this statement.

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Program Revenues Net (Expense) Revenue and Changes in Net Assets Functions/Programs Governmental activities: Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Interest on long-term debt Total governmental activities Expenses 28,466,007 9,296,872 5,933,071 5,716,728 2,119,602 4,455,891 649,860 56,638,031 Charges for Services 423,111 104,903 150,664 678,678 Operating Grants and Contributions 5,317,007 4,651,077 316,018 316,018 95,221 5,058,688 15,754,029 Capital Grants and Contributions 52,179 652,233 600,053 92,482 1,396,947 Governmental Activities (22,673,710) (4,645,795) (5,617,053) (4,643,574) (2,024,381) 1,353,514 (557,378) (38,808,377) General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid Total general revenues Changes in net assets Net assets, beginning of year, as restated Net assets, end of year 12,431,571 3,997,879 974,564 113,550 2,178,328 21,472,607 130,615 41,299,114 2,490,737 81,427,569 83,918,306 Page 19 The notes to the basic financial statements are an integral part of this statement.

Page 20 (This page intentionally left blank)

Page 21 FUND FINANCIAL STATEMENTS

BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2012 ASSETS Cash and investments Deposit Property taxes receivable Due from governmental entities Due from other funds Prepaid items Inventory Total assets General 1,526,450 6,927,386 1,719,877 368,888 151,479 10,694,080 Title I Grants 1,117,131 1,117,131 Debt Service 4,183,004 237,901 4,420,905 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Construction contracts payable Credit line payable Due to other funds Accrued payroll and employee benefits Deferred revenues Bonds payable Bond interest payable Total liabilities 180,912 2,329,000 166,144 1,335,495 4,011,551 58,166 1,036,205 22,760 1,117,131 184,246 3,550,000 324,555 4,058,801 Fund balances: Nonspendable Restricted Unassigned Total fund balances 520,367 6,162,162 6,682,529 362,104 362,104 Total liabilities and fund balances 10,694,080 1,117,131 4,420,905 The notes to the basic financial statements are an integral part of this statement. Page 22

Bond Building 2,884,782 2,884,782 Non-Major Governmental Funds 5,437,040 100,098 138,048 2,406,613 445,543 27,049 8,554,391 Total Governmental Funds 12,504,826 100,098 1,902,399 10,451,130 2,165,420 368,888 178,528 27,671,289 386,071 386,071 131,885 1,129,215 33,124 223,323 1,517,547 370,963 386,071 2,329,000 2,165,420 222,028 1,743,064 3,550,000 324,555 11,091,101 2,498,711 2,498,711 27,049 7,009,795 7,036,844 547,416 9,870,610 6,162,162 16,580,188 2,884,782 8,554,391 27,671,289 Page 23

Page 24 (This page intentionally left blank)

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Total governmental fund balances 16,580,188 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Governmental capital assets 125,555,928 Less accumulated depreciation (41,513,051) 84,042,877 Property tax revenues will not be available to pay for current period expenditures and, therefore, are deferred in the funds. 1,645,819 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds payable (15,400,000) Obligations under capital leases (224,004) Compensated absences payable (2,726,574) (18,350,578) Net assets of governmental activities 83,918,306 Page 25 The notes to the basic financial statements are an integral part of this statement.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Revenues: Other local Property taxes State aid and grants Federal aid, grants and reimbursements Total revenues General 2,463,398 12,268,721 19,356,388 130,615 34,219,122 Title I Grants 5,525,619 5,525,619 Debt Service 17,205 3,993,384 92,482 4,103,071 Expenditures: Current - Instruction Support services - students and staff Support services - administration Operation and maintenance of plant services Student transportation services Operation of non-instructional services Capital outlay Debt service - Principal retirement Interest and fiscal charges Total expenditures 18,753,405 3,498,476 4,833,290 4,939,824 1,495,857 90,353 39,446 33,650,651 2,123,943 3,201,868 71,857 12,658 1,160 98,365 5,509,851 3,550,000 649,860 4,199,860 Excess (deficiency) of revenues over expenditures 568,471 15,768 (96,789) Other financing sources (uses): Transfers in Transfers out Capital lease agreements Total other financing sources (uses): 485,147 485,147 (15,768) (15,768) 35,580 35,580 Changes in fund balances 1,053,618 (61,209) Fund balances, beginning of year 5,695,351 423,313 Increase (decrease) in reserve for prepaid items Increase (decrease) in reserve for inventory (7,443) (58,997) Fund balances, end of year 6,682,529 362,104 Page 26 The notes to the basic financial statements are an integral part of this statement.

Bond Building 35,580 35,580 Non-Major Governmental Funds 615,765 991,287 2,519,534 10,988,689 15,115,275 Total Governmental Funds 3,131,948 17,253,392 21,875,922 16,737,405 58,998,667 11,486,888 11,486,888 (11,451,308) 4,373,903 2,433,761 292,792 463,328 111,444 4,311,983 3,569,677 65,283 15,622,171 (506,896) 25,251,251 9,134,105 5,197,939 5,403,152 1,619,959 4,403,496 15,194,376 3,615,283 649,860 70,469,421 (11,470,754) (35,580) (35,580) (11,486,888) 13,985,599 2,498,711 (469,379) 289,287 (180,092) (686,988) 7,723,134 698 7,036,844 520,727 (520,727) 289,287 289,287 (11,181,467) 27,827,397 (7,443) (58,299) 16,580,188 Page 27

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Net changes in fund balances - total governmental funds (11,247,209) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. Expenditures for capitalized assets 12,858,177 Less current year depreciation (2,723,169) 10,135,008 Capital leases provided current financial resources to governmental funds, but the obligation increases long term liabilities in the Statement of Net Assets. (289,287) Some revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes 150,622 Intergovernmental (20,521) 130,101 Repayments of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. Capital lease principal retirement 65,283 Bond principal retirement 3,550,000 Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 146,841 Change in net assets in governmental activities 2,490,737 Page 28 The notes to the basic financial statements are an integral part of this statement.