COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Fiscal Year Ended June 30, 2009

INDEPENDENT SCHOOL DISTRICT NO. 281 ROBBINSDALE AREA SCHOOLS

NEW HOPE, MINNESOTA

4148 Winnetka Avenue North New Hope, Minnesota 55427-1288

Prepared by:

Finance Department

Director of Finance: Gary Hauan

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ROBBINSDALE AREA SCHOOLS 4148 Winnetka Avenue N ● New Hope MN 55427-1288 ● 763-504-8000

December 10, 2009 To the School Board, Citizens, Employees and Students of Robbinsdale Area Schools INTRODUCTION The following Comprehensive Annual Financial Report (CAFR) of Independent School District No. 281, Robbinsdale Area Schools (the District) presents the financial position of the District as of June 30, 2009 and the results of its operations for the fiscal year then ended. This report is prepared in accordance with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. State law requires the District to publish a complete set of audited financial statements within six months of the close of the District’s fiscal year. 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 internal controls. The internal controls are designed 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 be more than the benefits, the District’s internal controls are designed to provide reasonable rather than absolute assurance that these financial statements will be free from 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. These financial statements have been audited by LarsonAllen LLP, a firm of licensed certified public accountants. 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, 2009, 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 auditor 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, 2009, are fairly presented in conformity with accounting principles generally accepted in the United States of America.

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ROBBINSDALE AREA SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 281

MANAGEMENT’S DISCUSSION AND ANALYSIS

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The cost of all governmental activities this year was $163.2 million.

Some of the cost was paid by the users of the District’s programs (Table A-2, Charges for Services, $10.1 million). The majority of this category, $6.3 million, comes from food service meal sales and community education class tuition.

The federal and state governments subsidized certain programs with grants and contributions (Table A-2, Operating and Capital Grants and Contributions, $15.9 million).

Most of the District’s costs, $145.3 million, were paid for with local property taxes, unrestricted state aid, investment earnings, and other general revenues.

Governmental activities were paid for with $43.2 million in property taxes, $93.8 million of state aid, and with investment earnings and other general revenues.

Figure A-1Sources of District's Revenues for Fiscal 2009

Operating andCapital Grants

16%

Property Taxes25%

Unrestricted StateAid48%

All Other5%

Charges forServices

6%

Figure A-2District Expenses for Fiscal 2009

Other7%

Instruction-Related51%

Student SupportServices

15%

Food & Comm Serv9%

Maint16%

Admin2%

ROBBINSDALE AREA SCHOOLS INDEPENDENT SCHOOL DISTRICT NO. 281

MANAGEMENT’S DISCUSSION AND ANALYSIS

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ENROLLMENT Enrollment is a critical factor in determining revenue with approximately 70% of General Fund revenue being determined by enrollment. The following chart shows that the number of students decreased by 571 from 2008.

Table A-4 Student Enrollment (Average Daily Membership)

2002 2003 2004 2005 2006 2007 2008 2009

Pre-K and HCP-K 90.25 88.19 110.28 116.24 109.00 135.20 148.34 123.22 Reg K 1,080.09 1,028.56 1,020.12 846.19 840.24 877.71 823.48 809.78 Elementary 6,478.74 6,230.06 6,057.45 5,984.74 6,003.49 5,836.11 5,705.87 5,523.05 Secondary 6,895.04 6,931.93 6,854.68 6,660.91 6,678.18 6,624.96 6,462.06 6,113.00

Total Students for Aid 14,544.12 14,278.74 14,042.53 13,608.08 13,630.91 13,473.98 13,139.75 12,569.05 Percent Change 0.21% -1.82% -1.65% -3.09% 0.17% -1.15% -2.48% -4.34%

Figure A-3

Student Enrollment (Average Daily Membership)

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,00011,00012,00013,00014,00015,000

2002 2003 2004 2005 2006 2007 2008 2009

Secondary Elementary

Over the past several years, the District has experienced a decline in average daily membership after peaking at 14,544 students in 2001-02. The District’s pre-school population provides approximately 810 kindergarten students per year as compared to approximately 1,082 students graduating annually.