joint school district no. 28-j of the counties of adams...

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For the Fiscal Year Ended June 30, 2009

Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado

Comprehensive Annual Financial

Report

AURORA PUBLIC SCHOOLS 15701 E. First Avenue, Suite 106

Aurora, Colorado 80011


COMPREHENSIVE ANNUAL FINANCIAL REPORT


BOARD OF EDUCATION

Matthew L. Cook, President

Jeanette S. Carmany, Vice President

Peter Cukale, Treasurer

Amy Prince, Director

Jane F. Barber, Secretary

Judith Edberg, Director

Mary W. Lewis, Director

Superintendent John L. Barry

Prepared by: Rodney R. Weeks, Chief Financial Officer Adrienne H. Bradshaw, Director, Finance

Shannon M. Sappington, Senior Accountant Theresa M. Larson, Accountant

Louise A. Tipton, Accountant Kelly D. Blume, Accountant

Mary Jane Anderson, Accountant Kristen K. Riley, Secretary

Vincent L. Giannatala, Functional Analyst, Finance

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2009

Table of Contents Page

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INTRODUCTORY SECTION ....................................................................................................................................... 1

Governing Board of Education – Function and Composition ................................................................................... 3 Letter of Transmittal ................................................................................................................................................. 4 Aurora Public Schools Executive Administrative Staff ........................................................................................... 12 Aurora Public Schools 2008-09 Organizational Chart ........................................................................................... 13 2008 Certificate of Achievement for Excellence in Financial Reporting ................................................................ 14

FINANCIAL SECTION ............................................................................................................................................... 15

Independent Accountants’ Report on Financial Statements and Supplementary Information .............................. 17 Management’s Discussion and Analysis ............................................................................................................... 20 Basic Financial Statements.................................................................................................................................... 31

Government-wide Financial Statements ............................................................................................................. 32 Statement of Net Assets .................................................................................................................................. 32 Statement of Financial Position – Aurora Public Schools Education Foundation ........................................... 33 Statement of Activities ..................................................................................................................................... 34 Statement of Activities – Aurora Public Schools Education Foundation ......................................................... 35

Fund Financial Statements ................................................................................................................................. 36 Balance Sheet – Governmental Funds ........................................................................................................... 36 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets........................... 37 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................. 38 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................ 40 Statement of Net Assets – Proprietary Funds ................................................................................................. 41 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ......................... 42 Statement of Cash Flows – Proprietary Funds ............................................................................................... 43 Statement of Fiduciary Assets and Liabilities– Fiduciary Fund – Agency Fund ............................................. 44

Notes to the Basic Financial Statements ............................................................................................................ 45 Required Supplementary Information .................................................................................................................... 80

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (non-GAAP Budgetary Basis) ................................................................................................................................................. 81

General Fund ................................................................................................................................................... 81 Special Revenue Fund – Grants Fund ............................................................................................................ 82

Notes to the Required Supplementary Information ............................................................................................. 83 Supplementary Information: ................................................................................................................................... 84

Major and Nonmajor Governmental Funds ......................................................................................................... 85 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual ............................ 86

Debt Service Fund – Bond Redemption Fund ............................................................................................. 86 Capital Projects Fund – Building Fund ........................................................................................................ 87

Combining Balance Sheet – Nonmajor Governmental Funds ........................................................................ 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ....................................................................................................................................... 89 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual ............................ 90

Special Revenue Fund – Athletic Fund ....................................................................................................... 90 Special Revenue Fund – Pupil Activity Fund ............................................................................................... 91 Special Revenue Fund – Special Programs Fund (non-GAAP Budgetary Basis) ...................................... 92 Special Revenue Fund – Capital Reserve Fund (non-GAAP Budgetary Basis) ......................................... 93

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2009

Table of Contents Page

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Proprietary Funds ................................................................................................................................................ 94 Schedule of Revenues and Expenses Compared to Budget- Budget and Actual (non-GAAP Budgetary Basis) Enterprise Fund – Nutrition Services Fund .......................................................................................... 95 Combining Statement of Net Assets – Internal Service Funds ....................................................................... 96 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds 97 Combining Statement of Cash Flows – Internal Service Funds ...................................................................... 98 Schedule of Revenues and Expenses Compared to Budget .......................................................................... 99

Internal Service Fund – Copier Services Fund ............................................................................................ 99 Internal Service Fund – Print Services Fund ............................................................................................. 100

Agency Fund ..................................................................................................................................................... 101 Statement of Changes in Assets and Liabilities – Fiduciary Fund - Agency Fund ....................................... 102

Nonmajor Component Units – Charter Schools ................................................................................................ 103 Combining Statement of Net Assets – Component Units – Charter Schools ............................................... 104 Combining Statement of Activities – Component Units – Charter Schools .................................................. 105

Colorado Department of Education Compliance .............................................................................................. 106 CDE Auditor’s Electronic Financial Data Integrity Check Figures Report ........................................................ 108

STATISTICAL SECTION ......................................................................................................................................... 109

Net Assets by Component ................................................................................................................................... 111 Expenses, Program Revenues and Net (Expense)/Revenue ............................................................................. 112 General Revenues and Total Change in Net Assets ........................................................................................... 113 Fund Balances, Governmental Funds ................................................................................................................. 114 Governmental Funds Revenues .......................................................................................................................... 115 Governmental Funds Expenditures and Debt Service Ratio ............................................................................... 116 Other Financing Sources (Uses) and Net Change in Fund Balances ................................................................. 117 Assessed Value and Actual Value of Taxable Property ...................................................................................... 118 Direct and Overlapping Property Tax Rates ........................................................................................................ 120 Principal Property Tax Payers ............................................................................................................................. 122 Property Tax Levies and Collections ................................................................................................................... 123 Outstanding Debt by Type ................................................................................................................................... 124 Direct and Overlapping Governmental Activities Debt ........................................................................................ 125 Legal Debt Margin Information ............................................................................................................................ 126 Demographic and Economic Statistics ................................................................................................................ 127 Principal Employers ............................................................................................................................................. 128 Full-time Equivalent District Employees by Type ................................................................................................ 129 Operating Statistics .............................................................................................................................................. 130 Teacher Salaries .................................................................................................................................................. 131 School Building Information ................................................................................................................................. 132

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INTRODUCTORY SECTION

INTRODUCTORY SECTION

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GOVERNING BOARD OF EDUCATION FUNCTION AND COMPOSITION

Clockwise from top left:

Amy Prince, Jane Barber, Peter Cukale, Mary W. Lewis, Judy Edberg,

Jeanette Carmany, Board President Matt Cook, and Superintendent John L. Barry

The district is governed by a seven-member board of education. Directors are elected at successive biennial elections by registered voters residing in the district. Current directors serve staggered four-year terms of office. The board holds regular meetings on the first and third Tuesday of each month. Special meetings are held as needed. Directors elect board officers following each election. Members of the board of education receive no compensation for their services to the district. Among its duties, the board is empowered to:

o Employ all personnel required to maintain the operations and carry out the education programs of the district

o Determine and pay personnel compensatory wages o Establish enrollment boundaries for each school's geographic area o Determine educational programs to be provided by the district o Prescribe textbooks for any course of instruction or study in such programs

Governing Board of Education – Function and Composition

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November 17, 2009 To the Members of the Board of Education and Citizens of the Aurora Public School District: State 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 comprehensive annual financial report for the Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado, for the fiscal year ended June 30, 2009, is submitted herewith to fulfill this state requirement. Management assumes full responsibility for the completeness and reliability of all the information presented in this report. The district’s financial services department prepares this report which contains management’s representations concerning the finances of the district. To the best of our knowledge and belief, the enclosed data are accurate in all material respects, and reported in a manner to present fairly, the financial position and activities of the district’s various funds. All disclosures necessary to enable the reader to gain an understanding of the district's financial activities have been included. BKD, LLP, certified public accountants, have issued unqualified (clean) opinions on the financial statements of the Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado, for the fiscal year ended June 30, 2009. The independent accountants’ report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent accountants’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the District Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado (dba Aurora Public Schools) was originally established as a school district in 1885 and is located in Aurora, Colorado, a city on the eastern border of Denver, Colorado. The district covers nearly 110 square miles and provides a full range of educational programs to more than 35,000 students, as authorized by Colorado state statute. 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. The district operates 29 elementary, four K-8s, seven middle, five senior, and six charter schools. One of the high schools, William Smith, converted from a traditional school to the district’s first Pilot School in 2008-09, which allows more autonomy in the areas of governance, budget, curriculum and assessment, staffing, and scheduling. For the 2009-10 school year, Fletcher Elementary School converted into two Pilot Schools; Fletcher Primary with grades K-3 and Fletcher Intermediate with grades 4-8. In addition to regular education, the district offers special education, vocational education at its technical college, pre-school, gifted & talented, English language acquisition, International Baccalaureate, and other educational programs. The transportation

Letter of Transmittal

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department transports approximately 7,900 general education students and approximately 545 special needs students to and from school each day. This requires 37 general education buses and 45 special needs buses to accomplish this daily transportation service. In total, 126 buses are available to cover routes, field trips, and activity trips. The district has 5,854 full-time and part-time employees, of which 2,200 are classroom teachers. A seven-member board of education governs the district. Each board member is elected by the public and serves a four-year term. The board of education is required by §22-44-105, C.R.S., to adopt annual budgets that represent a complete financial plan for the ensuing fiscal year. The board of education must adopt a resolution specifying appropriations for each fund. A detailed programmatic and line item budget is utilized as a guideline for making expenditures. Bimonthly financial reports are prepared for each fund and distributed to the school district board and administrators. While allowing minor deviations from budgets at the line-item level, all budget areas stay within their total appropriations by maintaining management control of expenditures at the department or program-level. Budget-to-actual comparison reports are available online to all program directors and department supervisors. These reports highlight budgetary variances, and significant line item deviations are discussed with appropriate supervisory administrators. The annual budget and this report include all funds of the district and the following seven component units: the Aurora Public Schools Education Foundation and six charter schools - Aurora Academy, AXL Charter School, New America School-Aurora, Lotus School for Excellence, Global Village Academy, and Vanguard Classical School.

Local economy The map below portrays the geographic location of the district in relation to the Denver metropolitan area. The school district resides entirely within the city of Aurora and is closely affected by the same

economic conditions. Aurora is the 56th largest city in the nation and the third largest in the state of Colorado, covering 151 square miles, with an estimated population of 315,000 and over 128,000 households. More than 13,000 businesses employing approxi-mately 113,000 employees are located in the city. City demographics indicate that 89 percent of the workers over the age of 25 are high school graduates, and 36 percent of those are college graduates. Median family income is approximately

$60,000 and the median age is 33. Most of Aurora’s new residential development continues to take place in southeast and northeast Aurora along the E-470 tollway, shown on the map (on the next page), providing a major north-south thoroughfare directly in the center of the district. This map also illustrates that approximately 55 percent of the area within the district boundaries has not been developed. The Southlands Project, High Point at DIA, and Horizon Uptown are examples of mixed use development currently operating or planned along the E-470 corridor.

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The Fitzsimons/Anschutz medical complex and Buckley Air Force Base, both of which are located in the heart of the city of Aurora and the school district, have solid operations that have provided economic stability during this recession. The development of the 578-acre former Fitzsimons Army Medical Center, which closed in 1999, is now the site of the largest medical-related redevelopment

project in the nation. The Fitzsimons campus is undergoing a $5.0 billion transformation that includes 18 million square feet of new construction, and will eventually employ approximately 45,000 people upon completion. Buckley continues to be the nation’s fastest-growing Air Force base and has helped Aurora attract a core of aerospace-related industries such as Raytheon, Northrop, Boeing, and Lockheed Martin. It is a key component of the United States Space Command and has an annual payroll of $600 million and an annual economic impact of $1.1 billion in the community. Long-term financial planning Total fund balance in the General Fund is 7.3 percent of total ordinary general fund revenues, which is above the minimum 5 percent balance requirement in policy as set by the board of education, and well above the 3 percent requirement for TABOR. Outstanding general obligation debt as of June 30, 2009, is $336,955,000. Construction work for bond projects from the district’s successful $225 million bond election in 2002 were substantially completed during the 2008-09 fiscal year. Over $14 million of bond projects from the district’s successful $215 million bond election in 2008 were also completed in the 2008-09 fiscal year. Approximately 88 percent of the district’s 45 schools are over 20 years old and roughly 47 percent are over 40 years old. Every school will benefit in varying degrees from the 2008 bond program.

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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 which facilitates budgetary control. Also, the systems include integrity checks and balances which help assure only valid transactions become permanent records. The district's existing systems of budgetary and accounting controls are designed to provide reasonable assurance that error 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. Colorado Public School Finance Senate Bill 09-256, the School Finance Bill that was enacted during the 2009 legislative session, changed a number of funding components impacting all school districts in the state. These changes will be effective for the 2009-10 school year. Effective July 1, 2009, a $237 per pupil increase was approved, which raised the statewide base per pupil funding level from $5,270 to $5,507. This increase includes the effects of Amendment 23, passed in the November 2000 general election, which ensures the increase of per pupil spending by at least inflation plus 1 percent through fiscal year 2012. After that, the funding must increase in perpetuity by at least the rate of inflation. The base per pupil funding is subject to changes, including statewide enrollment increases, special education students, and at-risk students. The resulting impact of these changes on the district was a 5.1 percent increase in per pupil funding for fiscal year 2009-10 from $7,181 to $7,550. In addition to a $1.2 million rescission of funding to the district in 2008-09, the legislature required that school districts establish a Fiscal Emergency Contingency Reserve equal to 1.93 percent of scheduled funding to be received from the School Finance Act in 2009-10. Whether or not districts can use these funds in 2009-10 or they are to be rescinded to the state, will be decided by the legislature by January 29, 2010. The district has not included any of these funds as available resources in its budget and preliminary indications at the state level point towards a rescission of these funds in January. The district’s K-12 schools experienced an increase in enrollment in 2008-09 of over 1,000 students over projections. The 2009-10 budget was prepared using a flat enrollment projection. However, preliminary counts indicate another increase of 800 students over those projections. District management believes that there is a strong correlation between improved test scores and increasing student enrollment. Over the last two years and as a result of implementing the district’s VISTA 2010 strategic plan for student achievement, the district has attracted and retained more students than in prior years. Pre-school enrollments increased by approximately 520 students in 2008-09 and preliminary counts in 2009-10 show another increase of 80 pre-school students. Enrollments at the district’s six charter schools increased from 1,780 in 2007-08 to 2,245 in 2008-09, with most of the increase attributable to the opening of one new charter, AXL Charter School with an enrollment of 202, and various increases at each of the other five charter schools. The Public School Finance Act of 1994 provides state funding for charter schools that flows through the district for schools that local boards of education have granted a charter. The district had six charter schools, Aurora Academy, New America School-Aurora, Lotus School for Excellence,

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Global Village Academy, Vanguard Classical School, and AXL Charter School in operation during the 2008-09 fiscal year. Aurora Academy completed its ninth year of operations during fiscal year 2008-09. The Academy educates 463 full-time students in grades K-8 and enters its fifth year of a second five-year charter in the fall of 2009. At the end of nine years of operation, as of June 30, 2009, Aurora Academy reports net assets of $1,257,303 compared to $1,089,364 as of June 30, 2008. The New America School-Aurora completed its fourth year of operations during fiscal year 2008-09 and educates 475 full-time students in grades 9-12. At the end of its fourth year of operation, as of June 30, 2009, New America School-Aurora reports net assets of $210,476 compared to $141,780 the prior year. Lotus School for Excellence completed its third year of operation during fiscal year 2008-09 and educates 242 full-time students in grades 6-9. At the end of its third year of operation, as of June 30, 2009, Lotus School for Excellence reports deficit net assets of ($199,241) compared to ($389,141) the prior year. Global Village Academy completed its second year of operation during fiscal year 2008-09 and educates 373 full-time students in grades K-6. At the end of its second year of operation, as of June 30, 2009, Global Village Academy reports net assets of $236,261 compared to $21,442 the prior year. Vanguard Classical School completed its second year of operation during fiscal year 2008-09 and educates 401 full-time students in grades K-7. At the end of its second year of operation, as of June 30, 2009, Vanguard Classical School reports net assets of $68,653 compared to $94,677 the prior year. AXL Charter School completed its first year of operation during fiscal year 2008-09 and educates 202 full-time students in grades K-5. At the end of its first year of operation, as of June 30, 2009, AXL Charter School reports net assets of $30,169. Property taxes collected during the first six months of the 2008-09 fiscal period were based on the 2007 assessed valuation of $1,840,533,170. Taxes collected during January through June 2009 were based on the 2008 assessed valuation of $1,875,202,640. The county assessors in Adams and Arapahoe counties certified their assessed valuations in 2007 and 2008, respectively. As a result of a successful $14.7 million mill override election in November 2008, the owner of a $200,000 home, who resides within the district boundaries, will pay $848 in district property taxes during the 2009 calendar year, compared to $725 in 2008. These property taxes will be used to support: current operations and staffing levels; a general salary increase to all employees in 2008-09; 5th Block of instruction serving 4,000 students with 23 additional days of instruction annually; expanding the truancy program; expanding the PBS (positive behavior support) program; expanding full-day kindergarten; instructional technology; expanding the International Baccalaureate Program to all levels; Pilot Schools and Start-up programs. Federal and state grants The district has received several federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead grantor agencies to request reimbursement for disallowed expenditures. District management believes disallowances, if any, would not materially affect the overall financial position or results of operations of the district. BKD, LLP, has issued separate independent accountants’ reports for the district’s federal and state grants.

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Major initiatives The district’s strategic plan known as VISTA 2010 was approved by the board of education in November 2006. VISTA stands for Visionary Instruction Shaping the Transformation of APS. The most significant components of the plan are: Vision – Graduate every student with the choice to attend college without remediation. Mission – Teach every student within a safe environment the knowledge, skills and values necessary to enter college or a career and become a contributing member of society who flourishes in a diverse, dynamic world. Core Values

Respect Each person has equal, intrinsic worth and deserves to be treated with

dignity and respect. Integrity Integrity is based on trust, honesty and accepting accountability for all

words and actions. Compassion Every individual should be willing to give time and energy to act in the

best interest of others. Diversity By honoring unique characteristics and embracing similarities, diversity

strengthens and enriches our school district and community. Excellence High achievement requires high expectation focused on challenging

instruction and a willingness to work hard for success. Characteristics of a great school district . . .

• focuses on student achievement • creates a passion for learning • ensures students are safe • develops strategic leaders • promotes a compassionate, caring culture • develops and retains great teachers • values collaboration and empowerment • embraces accountability • manages finances responsibly with constant vigilance • celebrates schools as an essential part of the community • understands, anticipates and adapts to the dynamic world • promotes physical and mental health for students and staff

To transform the school district and reach the goals we have set, we must accelerate learning. Our goals are directed toward People, Achievement, Community, and Environment (PACE). The district is committed to being PACE Setters! Goals within each of these key areas in the plan are: People

• Recruit, hire, induct, support and retain high-performing staff. • Ensure all employees are highly qualified and skilled for their positions.

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Achievement • Accelerate learning and raise expectations for every student. • Increase student achievement and teacher development through precise, individualized

professional learning aligned with achievement goals. • Reduce the gap in academic performance of students while raising achievement

overall. • Adopt models and structures based on practices that are research based and

demonstrated to be effective. Community

• Strengthen collaboration with parents to enhance learning for their own children and all children.

• Expand and strengthen community involvement and partnerships to foster ownership and shared responsibility for our schools.

• Increase dialog and cooperation with key local, state and national groups and organizations.

Environment

• Provide environments that optimize learning and teaching and are safe, secure, and well-maintained.

• Develop and nurture a professional and high-performing culture based on trust, compassion, mutual respect, and integrity.

• Anticipate and prepare for projected community growth and increases in student enrollment.

The district completed the 2008-09 year with many celebrations as well as embracing its numerous outstanding challenges. As 93 percent of the 13 goals, 34 objectives, and 97 tasks had evidence of substantial progress or were completed, a letter grade of B+ was given to these efforts and accomplishments. Some highlights include: student achievement gains of 2 percent overall in the states CSAP test which is the district’s largest gain since all CSAP tests were realigned in 2002. A partnership between APS and the Community College of Aurora resulted in seven students from the Class of 2009 earning both a high school diploma and an associate’s degree. Thirty-two students received high school diplomas through the district’s Rebound program that provides expelled and dropout students the opportunity to return to high school and complete their graduation requirements. As the VISTA 2010 strategic plan comes to an end during 2009-10, the VISTA 2015 strategic plan for the district will be developed during 2009-10 and implemented beginning in August 2010. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the district for its comprehensive annual financial report for the fiscal year ended June 30, 2008. In order to receive a certificate of achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to generally accepted accounting principles and applicable legal requirements. Such reports must satisfy accounting principles generally accepted in the United States of America and applicable legal requirements. A certificate of achievement is valid for a period of one year only. The award displayed in this report represents the 25th consecutive certificate received by the district. We believe our current report continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate.

The publishing of this document would not have been possible without many hours of work put forthby Adrienne Bradshaw, director of finance, and the entire acmunting department. In addition, thedistrict appreciates its independent accountants, BKD, LLP, for their efforts and orofessionalassistance in preparation of this report. Furthermore, we would like to express our appreciation tothe city of Aurora, Adams and Arapahoe counties, and other governmental agencies that providedsupplemental information used in the preparation of this report. Finally, supplemental informationfrom the Intemet home pages of several agencies, organizations and city and state govemmentswas accessed during the compilation of this report. Garnering this information via the Internet wasan efficient method to acquire relevant data for our report.

Respectfully submitted,

bf SchoolsRodndy R. WeeksChief Financial Officer

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EXECUTIVE ADMINISTRATIVE STAFF of the

AURORA PUBLIC SCHOOLS

Aurora Public Schools Executive Administrative Staff

John L. Barry Superintendent of Schools Anthony Van Gytenbeek Deputy Superintendent Kathleen Hostetler, Esq. Legal Counsel Kari Allen Chief Personnel Officer Daniel Davis Chief Information Officer Georgia Duran Chief Communication Officer Lisa Escarcega Chief Accountability and Research Officer William Stuart Chief Academic Officer Anthony Sturges Chief Operating Officer Rodney Weeks Chief Financial Officer

Angela Hutton-Howard Executive Director, APS Education Foundation Dean Stecklein Executive Director, Career & Technical Education Ralph Albertson Director, Student Achievement, ESS Anthony Antolini Director, Athletics & Activities James Bittle Director, Construction & Management Adrienne Bradshaw Director, Finance Jean Burke Director, Student Achievement, ELA Sheri Charles Director, Early Childhood Education Paul Coleman Director, Grants Management Barbara Cooper Director, School Services Linda Dallman Director, Nutrition Services Linda Damon Director, Professional Learning Mark Davis Director, Maintenance & Operations Ivan Duran Director, Instructional Technology John C. Gramstorff Director, Human Resources Christine Hoppe Director, Risk Mgmt., Security & Incident Response Curtis Humphrey Director, Materials Management Michelle Krawchik Director, Student Achievement Jack Kronser Director, Human Resources Jan Novak Director, Library Media Services Susan Olezene Director, Student Achievement, Curr. & Prof. LearningRichard Patterson Director, Campus Development Katherine Pope-Hooper Director, Information Technology Rob Schmedeke Director, Transportation Services Damon Smith Director, Human Resources Amy Weed Director, Student Achievement Vicki Weseman Director, Student Achievement

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AURORA PUBLIC SCHOOLS 2008-09 Organizational Chart

Aurora Public Schools 2008-09 Organizational Chart

BOARD OF EDUCATION

COMMUNICATIONS

INTERNAL AUDIT SCHOOL

SERVICES

LEGAL COUNSEL

SUPERINTENDENT

DIVISION of SUPPORT SERVICES

DIVISION of INSTRUCTION

DIVISION of FINANCE

DIVISION of HUMAN

RESOURCES

AURORA PUBLIC

SCHOOLS EDUCATION

FOUNDATION

Athletics & Activities Direction Information Technology

Transportation Maintenance & Operations

Construction & Management Risk Mgmt., Security &

Incident Response

Budget Financial Accounting

Payroll Materials Management Grants Management

Nutrition Services

Classified Personnel Employee Relations

Certificated Personnel Professional Development - Classified

Exceptional Student Services Instructional Technology

English Language Acquisition Professional Development-Licensed

Student Achievement

DIVISION OF

ACCOUNTABILITY & RESEARCH

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2008 Certificate of Achievement for Excellence in Financial Reporting

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FINANCIAL SECTION

FINANCIAL SECTION

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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Aurora Public Schools Management’s Discussion and Analysis


The management of the Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado, offers to its readers this discussion and analysis of the district’s financial performance for the year ended June 30, 2009. This discussion and analysis focuses on the primary government and does not include its discretely presented component units. In addition to this discussion and analysis of the district’s financial performance, we encourage readers to review the transmittal letter, basic financial statements and notes to the basic financial statements, as well as the statistical section contained within this comprehensive annual financial report. Financial Highlights Key financial highlights for the fiscal year ended June 30, 2009, are as follows:

• The primary government reports government-wide net assets totaling $100.5 million at the end of the current fiscal year.

• In total, net assets increased $12.3 million. Net assets of governmental activities increased

$12.2 million, a 14.6 percent increase from 2007-08. Net assets of business-type activities increased $0.1 million or 2.9 percent from 2007-08.

• General revenues of the primary government totaled $287.2 million, or 86.4 percent of all

revenues. Program specific revenues in the form of charges for services, grants and contributions accounted for $45.0 million or 13.6 percent of total revenues of $332.2 million.

• Total expenses of the primary government totaled $319.9 million. Expenses related to

governmental activities totaled $308.6 million; only $33.9 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 $286.9 million offset program expenses.

• The General Fund’s fund balance increased from $10.3 million to $18.5 million. This fund

balance is 7.3 percent of ordinary general fund revenues and is attributed to the revenue generated from both a successful mill override election in November 2008 and an increase of over 1,000 students over projections during the 2008-09 fiscal year.

Overview of the Basic Financial Statements This discussion and analysis is intended to serve as an introduction to the district’s basic financial statements. This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the district as a whole. 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. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. 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.

Management’s Discussion and Analysis

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The statement of net assets presents information about 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 government’s net assets 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 activity – 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 nutrition services program is included here.

The government-wide financial statements follow the Management’s Discussion and Analysis section of this report. Fund Financial Statements The fund financial statements focus on the district’s major funds and provide more detailed information about the district. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific objectives. The district has three kinds of funds:

• Governmental funds – Most of the district’s activities are reported in governmental funds, which focus on how money flows into and out of those funds. The balances left at year-end are available for spending in future periods. The governmental fund statements provide a detailed short-term view that helps determine whether there are more or less financial resources that can be spent in the near future in financing the district’s programs. Because there are differences between governmental activities (shown in the statement of net assets and the statement of activities previously discussed) and governmental funds, a reconciliation is provided in the financial statements.

The governmental fund financial statements are found on pages 36-40 of this report.

• Proprietary funds – Services for which the district charges a fee, internally and externally,

are generally reported in proprietary funds. The district operates one enterprise fund, the Nutrition Services Fund. The district also uses internal service funds to report activities that provide goods and services for its other programs and activities. The district currently operates two internal service funds, the Copier Services Fund and the Print Services Fund. The fund financial statements provide detailed financial information. The proprietary fund financial statements are found on pages 41-43 of this report.

• Fiduciary fund – The district is the agent, or fiduciary, for assets that belong to others. The district is responsible for ensuring that the assets reported in Pupil Activity Agency Fund are used only for their intended purposes. These assets cannot be used to finance district operations and are not included in the government-wide financial statements.

The fiduciary fund financial statements are found on page 44 of this report.

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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 basic financial statements. The notes can be found on pages 46-79 of this report. Required Supplementary Information and Other Supplementary Information In addition to the basic financial statements and accompanying notes, this report also contains required supplementary information concerning the district’s budgetary schedules and other supplementary information, including nonmajor governmental funds, internal service funds and component unit combining financial statements. Required supplementary information can be found on pages 81-83 of this report. Combining and individual fund statements and schedules can be found on pages 86-105 of this report. Government-wide Financial Analysis Net Assets The table on the following page provides a summary of the district’s net assets for June 30, 2009. Comparative data for June 30, 2008, is also presented. At the end of the current fiscal year, the district is able to report a positive balance for total net assets, both for the government as a whole, as well as for its separate governmental activities and business-type activity. Governmental Activities As of June 30, 2009, assets exceeded liabilities by $96.1 million. Cash and investments restricted for capital construction totaled $128.1 million. The district is restricted in using these funds only in the construction and renovation of its schools and support buildings. In addition, per Article X, Section 20 of the Colorado constitution, also known as the 1992 Taxpayer Bill of Rights or the TABOR Amendment, the district is required to establish a separate emergency reserve equaling 3 percent of applicable expenditures. Therefore, in accordance with this requirement, the primary government and its component units have restricted approximately $8.6 million in a combination of cash and fund balances in order to comply with this mandate. Current assets increased by $4.6 million, from $51.8 million to $56.4 million. This increase was mainly due to only $9 million being spent of a $14.7 million mill override measure approved by voters in November 2008 and received in property tax revenue by June 30, 2009. Noncurrent assets, identified as restricted cash and cash equivalents and deferred charges, increased by $127.4 million, from $43.2 million to $170.6 million, mainly due to bond proceeds from the sale of $132.7 million of general obligation bonds in December 2008. An increase in capital assets, net of accumulated depreciation, of $10.4 million was realized due to bond-funded construction projects completed or in progress at June 30, 2009. Current liabilities increased from $37.6 million to $44.0 million largely due to the increase in accounts payable and retainages payable in the Building Fund as more construction projects were initiated and an increase in accrued salaries and benefits as both wages and staffing levels increased. Noncurrent liabilities increased from $226.1 million to $350.0 million as a result of the sale of $132.7 million of general obligation bonds in December 2008 and $8.6 million of scheduled payments. As of June 30, 2009, the bond principal outstanding, including premiums, was $351.9. Debt issuance costs are recorded as deferred charges of $3.8 million. Restricted net assets include four categories: 1) funds provided by federal, state, and local grants restricted for the improvement of student achievement, 2) funds generated from property taxes accounted for in the Bond Redemption Fund which are restricted for the payment of long-term debt, 3) an emergency fund mandated by the Colorado constitution, and 4) funds restricted for multiple-year lease obligations.

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The following condensed financial information was derived from the government-wide statement of net assets.

Increase Increase Increase6/30/09 6/30/08 (Decrease) 6/30/09 6/30/08 (Decrease) 6/30/09 6/30/08 (Decrease)

Current assets 56,401,670$ 51,782,508$ 4,619,162$ 1,572,811$ 1,186,392$ 386,419$ 57,974,481$ 52,968,900$ 5,005,581$

170,611,978 43,194,915 127,417,063 - - - 170,611,978 43,194,915 127,417,063

Capital assets, net 263,035,864 252,629,758 10,406,106 3,481,458 3,803,746 (322,288) 266,517,322 256,433,504 10,083,818

Total assets 490,049,512 347,607,181 142,442,331 5,054,269 4,990,138 64,131 495,103,781 352,597,319 142,506,462

Current liabilities 43,982,921 37,611,915 6,371,006 503,898 583,073 (79,175) 44,486,819 38,194,988 6,291,831 Noncurrent liabilities

outstanding 349,958,322 226,112,864 123,845,458 188,272 169,265 19,007 350,146,594 226,282,129 123,864,465 Total liabilities 393,941,243 263,724,779 130,216,464 692,170 752,338 (60,168) 394,633,413 264,477,117 130,156,296

Net assets:Invested in capital

assets, net of related debt 37,790,848 39,261,156 (1,470,308) 3,481,458 3,803,746 (322,288) 41,272,306 43,064,902 (1,792,596)

Restricted 53,581,617 46,777,649 6,803,968 - - - 53,581,617 46,777,649 6,803,968

Unrestricted 4,735,804 (2,156,403) 6,892,207 880,641 434,054 446,587 5,616,445 (1,722,349) 7,338,794

Total net assets 96,108,269$ 83,882,402$ 12,225,867$ 4,362,099$ 4,237,800$ 124,299$ 100,470,368$ 88,120,202$ 12,350,166$

Business-Type Activity Total Primary GovernmentGovernmental Activities

Summary of Net Assets

Noncurrent assets, excluding capital assets

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The following condensed financial information was derived from the government-wide statement of activities and reflects how the district’s net assets changed from June 30, 2008, to June 30, 2009.

Comparative Summary of Activities and Changes in Net Assets

Year Ended Year Ended Increase Year Ended Year Ended Increase Year Ended Year Ended Increase REVENUES 6/30/09 6/30/08 (Decrease) 6/30/09 6/30/08 (Decrease) 6/30/09 6/30/08 (Decrease) Program revenues:

Charges for services 5,561,236$ 5,584,187$ (22,951)$ 2,501,625$ 2,573,984$ (72,359)$ 8,062,861$ 8,158,171$ (95,310)$ Operating grants

& contributions 28,361,940 25,556,082 2,805,858 8,615,275 7,477,799 1,137,476 36,977,215 33,033,881 3,943,334 General revenues:

Property taxes 106,211,791 89,975,816 16,235,975 - - - 106,211,791 89,975,816 16,235,975 School f inance act 179,625,227 164,793,972 14,831,255 266,752 193,470 73,282 179,891,979 164,987,442 14,904,537 Other 1,065,948 3,302,224 (2,236,276) - 86 (86) 1,065,948 3,302,310 (2,236,362)

Total revenues 320,826,142 289,212,281 31,613,861 11,383,652 10,245,339 1,138,313 332,209,794 299,457,620 32,752,174

EXPENSESInstruction 182,393,324 180,213,628 2,179,696 - - - 182,393,324 180,213,628 2,179,696 Pupil support 16,947,492 15,418,665 1,528,827 - - - 16,947,492 15,418,665 1,528,827 Instructional staff

support 12,665,781 12,391,839 273,942 - - - 12,665,781 12,391,839 273,942 General administration 5,756,069 4,378,602 1,377,467 - - - 5,756,069 4,378,602 1,377,467 School administration 19,536,413 19,043,050 493,363 - - - 19,536,413 19,043,050 493,363 Business administration 4,484,339 3,618,492 865,847 - - - 4,484,339 3,618,492 865,847 Operations &

maintenance 27,170,119 26,751,834 418,285 - - - 27,170,119 26,751,834 418,285 Transportation 6,542,469 7,296,424 (753,955) - - - 6,542,469 7,296,424 (753,955) Personnel/data

services/risk mgmt 11,903,496 10,878,489 1,025,007 - - - 11,903,496 10,878,489 1,025,007 Other support services 8,744,729 10,515,754 (1,771,025) - - - 8,744,729 10,515,754 (1,771,025) Interest on long-term debt 12,456,044 10,631,235 1,824,809 - - - 12,456,044 10,631,235 1,824,809 Nutrition services - - - 11,259,353 10,547,596 711,757 11,259,353 10,547,596 711,757

Total expenses 308,600,275 301,138,012 7,462,263 11,259,353 10,547,596 711,757 319,859,628 311,685,608 8,174,020

12,225,867 (11,925,731) 24,151,598 124,299 (302,257) 426,556 12,350,166 (12,227,988) 24,578,154

83,882,402 95,808,133 (11,925,731) 4,237,800 4,540,057 (302,257) 88,120,202 100,348,190 (12,227,988)

Net assets-end of year 96,108,269$ 83,882,402$ 12,225,867$ 4,362,099$ 4,237,800$ 124,299$ 100,470,368$ 88,120,202$ 12,350,166$

Total Primary GovernmentBusiness-Type ActivityGovernmental Activities

Net assets- beginning of year

Increase (decrease) in net assets

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Governmental Activities Net assets for governmental activities increased by $12.2 million. This increase is largely due to increased school finance revenues of $14.8 million and increased property tax revenues of $16.2 million. The district's funded pupil count increased from 30,899 in fiscal year 2007-08 to 32,079 in fiscal year 2008-09, representing a 3.8 percent increase in enrollment. It should be noted that charter schools within the district were responsible for an increase of 383 of those funded. The funding per pupil increased from $6,623 in fiscal year 2007-08 to $6,883 in 2008-09. Construction funded by the March 2003, February 2006, and December 2008 bond proceeds increased capital assets by $10.4 million. As shown in the following graph, school finance act and property tax revenues account for most of the district’s revenue, providing 56.0 percent and 33.1 percent, respectively. Another 8.8 percent came from local, state, and federal grants with the remainder from miscellaneous sources.

Governmental ActivitiesSources of Revenues

Year Ended June 30, 2009

School f inance act

56.0%

Property tax33.1%

Grants8.8%

Other2.1%

The majority of the district’s governmental expenses, 67.4 percent in 2007-08 and 66.8 percent in 2008-09, are directly related to the delivery of instruction, caring for and transporting of students. These programs are accounted for in the instruction, pupil support, and transportation programs. Instruction, pupil support functions and transportation programs increased expenditures by $3.3 million. The district’s administrative expenses accounted for 12.5 percent of total costs in fiscal year 2007-08 and 12.5 percent in 2008-09. These programs are accounted for in the general administration, school administration, business administration, and other support services programs. The cost of governmental activities after program revenues are applied was $270.0 million in 2007-08 and $274.7 million in 2008-09. General revenue support for governmental activities was 85.7 percent in 2007-08, and 93.0 percent in 2008-09. Business-Type Activity The $0.10 million increase in total net assets is mainly attributable to revenues exceeding expenses by $124,299 in fiscal year 2008-09. The nutrition services program is the district’s sole business-type activity.

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Business-Type ActivitySources of Revenues

Year Ended June 30, 2009

Charges for services22.0%

School f inance act

2.3%Operating

grants75.7%

Analysis of the School District’s Funds Information about the district’s major funds starts on page 36. The governmental funds are accounted for using the modified accrual basis of accounting, while the proprietary funds use the accrual basis of accounting. Governmental Funds The focus of the district’s governmental funds is to provide information on short-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the district’s financing requirements. The fund financial statements provide detailed information about the district’s most significant funds and summarize less significant funds into one column. Governmental funds had total revenues of $319.6 million and expenditures of $328.6 million, in addition to transfers out of $1.5 million. As of the end of the current fiscal year, the district’s six governmental funds reported combined ending fund balances of $188.3 million, an increase of $124.7 million. This is mainly attributable to bond proceeds received from the sale of $132.7 million of general obligation bonds in December 2008. The Building Fund was created to account for these bond proceeds in March 2003 and recorded an ending fund balance as of June 30, 2009, of $122.6 million. The Bond Redemption Fund realized an increase of $5.7 million increasing its fund balance from $37.9 million to $43.6 million as of June 30, 2009. The Bond Redemption Fund is funded entirely by property tax revenue and earnings on investments. Bond Redemption Fund revenues exceeded expenditures for the current year due to a 1.9 percent increase in assessed valuation. These monies are held in trust and will be used to retire the district's general obligation debt as it comes due. The Grants Fund realized an increase in fund balance of $0.1 million which brought its fund balance up to $0.9 million, as of June 30, 2009. Other governmental funds had slight changes in their positive fund balance amounts ending the fiscal year with $152,713 in Athletics, $122,385 in Pupil Activity, $2.3 million in Special Programs, and $211,621 in Capital Reserve. The General Fund recorded an increase of $8.2 million in fund balance as a result of a $14.7 million successful mill override election in November 2008 an enrollment increase of 1,000 students over projections.

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As previously mentioned, the Colorado constitution requires an emergency reserve of 3 percent of expenditures for applicable budgets. The required amount of $8.0 million is shown in the district’s General Fund as fund balance reserved for emergencies. The General Fund’s unreserved fund balance is $9.3 million, which provides a measure of the district’s net resources available for spending at the end of the fiscal year. The district’s board of education established a policy in November 2003 that requires a minimum total fund balance of 5 percent of General Fund actual ordinary revenue. This year’s fund balance exceeds this requirement at $18.5 million, or 7.3% of General Fund ordinary revenue. Revenues and Other Financing SourcesGovernmental Funds

June 30, 2009 June 30, 2008Increase

(Decrease)% Change from 2008

Local:Property and specific

ownership taxes 105,478,656$ 90,394,530$ 15,084,126$ 16.7%Other 10,657,204 12,389,569 (1,732,365) -14.0%

State 179,185,456 165,294,203 13,891,253 8.4%Federal 24,279,281 21,988,037 2,291,244 10.4%

Subtotal 319,600,597 290,066,339 29,534,258 10.2%Other financing sources 135,158,859 1,250,381 133,908,478 10709.4%

Total 454,759,456$ 291,316,720$ 163,442,736$ 56.1%

Year Ended

Property tax revenue increased 16.7 percent compared to last year due to a 1.9 percent increase in assessed valuation and a $14.7 million successful mill override election in November, 2008. . Other local revenue decreased 14.0 percent due to a decrease in interest earnings. State revenue increased due to a $237 per pupil increase in the legislated funding formula for public school finance and an additional 1,000 students above projections. Federal grant revenue increased mainly due to Title I allocations increasing. Expenditures and Other Financing UsesGovernmental Funds

June 30, 2009 June 30, 2008Increase

(Decrease)% Change from 2008

Instruction 171,552,082$ 166,820,691$ 4,731,391$ 2.8%Pupil support 16,885,854 15,371,829 1,514,025 9.8%Instructional staff support 12,250,368 12,008,372 241,996 2.0%General administration 5,648,503 4,249,643 1,398,860 32.9%School administration 19,507,919 19,014,371 493,548 2.6%Business administration 4,205,540 3,315,453 890,087 26.8%Operations and maintenance 25,862,576 25,283,471 579,105 2.3%Transportation 6,355,179 6,285,898 69,281 1.1%Personnel/data/risk management 11,475,863 10,417,384 1,058,479 10.2%Other support services 3,955,118 4,242,843 (287,725) -6.8%Facilities acquisition/improvement 28,521,476 43,720,470 (15,198,994) -34.8%Debt service 22,367,775 19,170,327 3,197,448 16.7%

Subtotal 328,588,253 329,900,752 (1,312,499) -0.4%Other financing uses 1,457,501 1,680,037 (222,536) -13.2%

Total 330,045,754$ 331,580,789$ (1,535,035)$ -0.5%

Year Ended

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Instruction expenditures increased as a result of a 2.0 percent general salary increase, a 0.9 percent increase in the employer contribution rate to the employee retirement fund, and a 9.0 percent increase in medical benefits cost. Facilities acquisition and improvement decreased due to a larger number of bond projects completed in 2007-08 compared to the number of new bond projects just begun in 2008-09. Proprietary Funds The district’s proprietary fund statements provide financial information using the same type of accounting measurement focus found in the government-wide financial statements. As of the end of the fiscal year, the district operated three proprietary funds: the Nutrition Services Fund, the Print Services Fund, and the Copier Services Fund. The Nutrition Services Fund is classified as an enterprise fund; the other two are classified as internal service funds. Each of these funds maintained positive net assets. The $0.13 million increase in total assets for the Nutrition Services Fund is mainly attributable to revenues exceeding expenses by $131,352 in fiscal year 2008-09. This fund had $11.4 million in revenues and $11.2 million in expenses. Total revenues increased $1.1 million over last year, with the increase being realized in the operating grants from the federal lunch program and a slight increase in paid lunch prices. However, food costs increased 15 percent, offsetting the revenue increase. This program is self-supporting, receiving no support from local property taxes. The Print Services Fund and the Copier Services Fund both experienced slight increases in net assets. 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 periodic basis by the finance department to ensure that budgets are not exceeded at the fund level, which is the legal level of compliance. The most significant budgeted fund is the General Fund. Actual budgetary expenditures totaled $241.4 million, or 93.5 percent of the budgeted amount of $258.1 million. Expenditures as a percent of budget were .3 percent lower than last year’s rate of 93.8 percent. Contingency amounts for unknown and unanticipated costs, in addition to the state-mandated emergency reserve, and disciplined spending within operations at support sites and schools throughout the district account for the remaining unspent budgeted amounts. Combined contingency reserve budgets in the General Fund of $8.2 million represent 3.1 percent of budgeted expenditures. Final budgeted revenues increased significantly from original budgeted revenues, from $227.8 million to $251.6 million, due in large part to additional revenues of $9.0 million received from state funding for enrollment of 1,000 students over projections and $14.7 million from a successful mill override election in November 2008. Final budgeted expenditures increased significantly from $248.5 million to $258.1 million due to $9.0 million of the $14.7 million of mill override funds being spent in 2008-09. Capital Assets and Debt Administration Capital Assets Net of depreciation, the district’s capital assets as of June 30, 2009, were $266.5 million, which is invested in land, buildings, equipment, and construction in progress. Capital assets of governmental activities totaled $263.0 million. Depreciation charges this year totaled $13.5 million for governmental activities and $0.4 million for the business-type activity.

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Capital Assets as of June 30, 2009(Net of Depreciation)

2009 2008 2009 2008 2009 2008Land 19,270,500$ 18,661,100$ -$ -$ 19,270,500$ 18,661,100$ Buildings & improvements 225,749,947 213,682,807 3,035,694 3,263,801 228,785,641 216,946,608 Equipment & vehicles 3,847,316 4,671,141 392,285 462,690 4,239,601 5,133,831 Subtotal 248,867,763 237,015,048 3,427,979 3,726,491 252,295,742 240,741,539 Construction in progress 14,168,101 15,614,710 53,479 77,255 14,221,580 15,691,965 Total 263,035,864$ 252,629,758$ 3,481,458$ 3,803,746$ 266,517,322$ 256,433,504$

Business-Type Activity Total Primary GovernmentGovernmental Activities

The most significant impact on capital assets this year was the continuing renovations and improvements to school buildings and other facilities funded by the sale of general obligation bonds in February 2006 and in December 2008. Refer to the notes to basic financial statements beginning on page 46 for more detailed information on capital assets. Long-Term Debt Long-term debt principal totaled $337.0 million in general obligations bonds, with $10.1 million due in one year. The district entered into a capital lease for five school buses in August 2008. Outstanding Debt as of June 30, 2009

2009 2008 2009 2008 2009 2008General obligation bonds 336,955,000$ 212,925,000$ -$ $ - 336,955,000$ 212,925,000$

Unamortized premium 14,664,070 14,829,625 - - 14,664,070 14,829,625 Capital lease 300,320 - - - 300,320 -

Total $ 351,919,390 $ 227,754,625 -$ $ - $ 351,919,390 $ 227,754,625

Governmental Activities Business-Type Activity Total Primary Government

At June 30, 2009, overall legal debt limit was $375.4 million with a legal debt margin of $38.4 million. Moody’s and Standard and Poor’s have awarded an A1 and an A+ rating, respectively, to the district. Refer to the notes to basic financial statements on pages 65-71 for more detailed information on long-term debt. Material Events Disclosure for Municipal Secondary Market Disclosure As a result of recent downgrades of the ratings of bond insurers by credit rating agencies, long term credit ratings of the outstanding insured issues of the Joint School District No. 28-J Adams and Arapahoe Counties, Colorado, have been downgraded as shown below.

Issue CUSIP Insurer From To From To

General Obligation Bonds, Series 2006

005482 National Public Financial Guarantee Corp., formerly MBIA

AA A A2 Baa1

General Obligation Refunding Bonds, Series 2004

005482 Financial Security Assurance, Inc. (1)

AAA AAA Aaa Aa3

General Obligation Bonds, Series 2003A


AAA AAA Aaa Aa3

(1) Financial Security Assurance, Inc., maintains the AAA rating by Standard & Poor’s, as of June 30, 2009, but has been downgraded by Moody's.

Standard & Poor's Moody'sRating Change Rating Change

staff

Rectangle

staff

Rectangle

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Economic Factors Four items were known conditions when these basic financial statements were prepared that could significantly affect the district’s financial position and operations in the future:

• Enrollment – The 2009-10 General Fund budget was prepared using a very conservative flat

enrollment projection. Preliminary enrollment figures for 2009-10 are above projections by 800 students. This will have a significant positive impact on revenues received in 2009-10 at approximately $7,240 per student for general operations.

• Rescission 2009-10 – All school districts in the state were required to set aside 1.93 percent of their 2009-10 state funding allocation in a Fiscal Emergency Contingency Reserve. This reserve amount for the district is $4.9 million. The district has not included these funds as available revenue in its 2009-10 budget. The state legislature will decide by January 29, 2010, whether districts may keep the funds for operations or rescind the funds to the state.

• Reduced Funding 2010-11 – Preliminary revenue reports and projections for the state

strongly suggest that funding levels for school districts will be further reduced for the 2010-11 fiscal year.

• Assessed Valuation – County assessors have notified the district that preliminary assessed

value projections for tax collection year 2010 reflect a 5 percent reduction from $1,876,865,590 to $1,783,491,830.

Contacting the District’s Financial Management This financial report is designed to provide the district’s citizens, taxpayers, parents, investors, and creditors with a general overview of the district’s finances and to demonstrate the district’s accountability for the money it receives. If you have questions about this report or need additional information, contact the Division of Finance, Joint School District No. 28-J of the Counties of Adams and Arapahoe (dba Aurora Public Schools), 15701 East First Avenue, Suite 106, Aurora, Colorado, 80011.

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Basic Financial Statements

BASIC FINANCIAL STATEMENTS

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Net Assets June 30, 2009

32

Government-wide Financial Statements

Statement of Net Assets Charter Schools -Component Units

Governmental Business-TypeActivities Activity Total

ASSETSCurrent assets:

Cash and cash equivalents 41,478,385$ 534,010$ 42,012,395$ 730,544$ Cash with fiscal agent - restricted 4,367,764 - 4,367,764 - Investments, plus accrued interest - - - 496,696 Due from other governments - - - 361,660 Receivables (net of allowance for uncollectibles) 9,747,730 305,953 10,053,683 226,389 Internal balances 112,049 (112,049) - - Other assets - - - 353,296 Inventories 576,463 787,495 1,363,958 - Prepaid items 119,279 57,402 176,681 45,807

Total current assets 56,401,670 1,572,811 57,974,481 2,214,392 Noncurrent assets:

Deferred charges 3,832,038 - 3,832,038 9,657 Restricted: Cash and investments 166,779,940 - 166,779,940 1,127,085 Capital assets (net of accumulated depreciation):

Land 19,270,500 - 19,270,500 900,820 Buildings and improvements 225,749,947 3,035,694 228,785,641 12,560,440 Equipment and vehicles 3,847,316 392,285 4,239,601 227,238 Construction in progress 14,168,101 53,479 14,221,580 131,788

Total noncurrent assets 433,647,842 3,481,458 437,129,300 14,957,028 Total assets 490,049,512 5,054,269 495,103,781 17,171,420

LIABILITIESCurrent liabilities:

Accounts payable and other current liabilities 13,597,341 61,107 13,658,448 241,729 Accrued salaries and benefits 15,977,853 379,007 16,356,860 537,280 Liability claims and premiums 228,779 - 228,779 - Unearned revenue 1,642,707 58,758 1,701,465 163,499 Accrued interest payable 1,452,083 - 1,452,083 134,406

Noncurrent liabilities, due within one yearGeneral obligation bonds-current 10,050,000 - 10,050,000 140,000 Compensated absences 963,728 5,026 968,754 - Loans and mortgages payable-current - - - 455,946 Capital leases payable-current 70,430 - 70,430 -

Total current liabilities 43,982,921 503,898 44,486,819 1,672,860 Noncurrent liabilities, due beyond one year

Loans and mortgages payable - - - 7,117,704 Estimated arbitrage 682,667 - 682,667 - Capital leases payable 229,890 - 229,890 - General obligation bonds 341,569,070 - 341,569,070 6,777,235 Compensated absences 7,476,695 188,272 7,664,967 -

Total noncurrent liabilities 349,958,322 188,272 350,146,594 13,894,939 Total liabilities 393,941,243 692,170 394,633,413 15,567,799

NET ASSETSInvested in capital assets, net of related debt 37,790,848 3,481,458 41,272,306 579,826 Restricted for:

Grants 863,600 - 863,600 - Debt service 44,324,735 - 44,324,735 - TABOR 8,076,276 - 8,076,276 330,193 Multiple year obligations 317,006 - 317,006 - Other - - - 257,970

Unrestricted 4,735,804 880,641 5,616,445 435,632 Total net assets 96,108,269$ 4,362,099$ 100,470,368$ 1,603,621$

The notes to the basic financial statements are an integral part of this statement.

Primary Government

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Financial Position Aurora Public Schools Education Foundation June 30, 2009

33

Statement of Financial Position – Aurora Public Schools Education Foundation

Cash and cash equivalents 651,203$ Prepaid expenses 171

Total current assets 651,374$

LiabilitiesFunds held on behalf of others 3,819$ Deferred revenue 22,113

Total liabilities 25,932

Net AssetsUnrestricted 167,917Temporarily restricted 357,525Permanently restricted 100,000

Total net assets 625,442

Total liabilities and net assets 651,374$


LIABILITIES AND NET ASSETS

ASSETS

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Activities For the Year Ended June 30, 2009

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Statement of Activities

Operating CapitalCharges for Grants and Grants and Governmental Business-type Component Units -

Expenses Services Contributions Contributions Activities Activity TOTAL Charter SchoolsFunctions/ProgramsPrimary government:

Governmental activities:Instruction 182,393,324$ 5,021,263$ 24,464,708$ -$ (152,907,353)$ -$ (152,907,353)$ -$ Pupil support 16,947,492 - - - (16,947,492) - (16,947,492) - Instructional staff support 12,665,781 - - - (12,665,781) - (12,665,781) - General administration 5,756,069 - - - (5,756,069) - (5,756,069) - School administration 19,536,413 - - - (19,536,413) - (19,536,413) - Business administration 4,484,339 - - - (4,484,339) - (4,484,339) - Operations and maintenance 27,170,119 539,973 - - (26,630,146) - (26,630,146) - Transportation 6,542,469 - - - (6,542,469) - (6,542,469) - Personnel/data services/risk management 11,903,496 - - - (11,903,496) - (11,903,496) - Other support services 8,744,729 - 3,897,232 - (4,847,497) - (4,847,497) - Interest on long-term debt 12,456,044 - - - (12,456,044) - (12,456,044) -

Total governmental activities 308,600,275 5,561,236 28,361,940 - (274,677,099) - (274,677,099) - Business-type activity:

Nutrition services 11,259,353 2,501,625 8,615,275 - - (142,453) (142,453) -

Total primary government 319,859,628$ 8,062,861$ 36,977,215$ -$ (274,677,099)$ (142,453)$ (274,819,552)$ -$ Component units:

Charter schools 17,969,132$ 982,562$ 998,402$ 355,392$ -$ -$ -$ (15,632,776)$

General revenues:Property taxes, levied for general use 78,324,365 - 78,324,365 - Property taxes, levied for debt service 27,887,426 - 27,887,426 - School finance act, unrestricted 179,625,227 266,752 179,891,979 15,769,751 Earnings on investments 1,065,948 - 1,065,948 50,184 Other - component units - - - 392,533 Total general revenues 286,902,966 266,752 287,169,718 16,212,468 Change in net assets 12,225,867 124,299 12,350,166 579,692

Net assets - July 1, 2008,as previously reported 83,882,402 4,237,800 88,120,202 958,122

Restatement for change inreporting entity - - - 65,807

Net assets - July 1, 2008, as restated 83,882,402 4,237,800 88,120,202 1,023,929 Net assets - June 30, 2009 96,108,269$ 4,362,099$ 100,470,368$ 1,603,621$


Primary GovernmentNet (Expenses) Revenue and Changes in Net Assets

Program Revenues

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Activities Aurora Public Schools Education Foundation For the Year Ended June 30, 2009

35

Statement of Activities – Aurora Public Schools Education Foundation

Temporarily PermanentlyUnrestricted Restricted Restricted Total

Revenues, gains, and other support:Contributions – general 818,693$ 72,948$ -$ 891,641$ Contributions – payroll deductions 13,390 6,700 - 20,090 Special events revenue 14,335 29,390 - 43,725

Less special events direct expenses (6,805) (9,864) - (16,669) Investment income 3,010 5,171 - 8,181 Net assets released from restrictions 105,975 (105,975) - -

Total revenues, gains, and other support 948,598 (1,630) - 946,968

Expenses:Program services:

Grants 47,064 - - 47,064 Scholarships 104,190 - - 104,190 Special projects 628,849 - - 628,849

Total program services 780,103 - - 780,103

Support services: General and administrative 127,930 - - 127,930 Fundraising 64,631 - - 64,631

Total expenses 972,664 - - 972,664

Change in net assets (24,066) (1,630) - (25,696)

Net assets, beginning of the year 191,983 359,155 100,000 651,138

Net assets, end of the year 167,917$ 357,525$ 100,000$ 625,442$


JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Balance Sheet Governmental Funds June 30, 2009

36

Fund Financial Statements

Balance Sheet – Governmental Funds

Debt Service Special Revenue Capita l Pro jectsBond Other Tota l

General Redem ption Grants Build ing Governm enta l Governm ental

ASSETSCas h and cas h equivalents 35,564,073$ -$ 708,100$ -$ 4,874,971$ 41,147,144$ Cas h w ith fis cal agent 48,692 4,319,072 - - - 4,367,764 Depos its 10,000 - - - - 10,000 Receivables (net o f a llowance for uncollectib les )

Property taxes 1,794,325 706,184 - - - 2,500,509 Grants - - 2 ,834,829 - - 2,834,829 County treas urers 3,233,042 923,992 - - - 4,157,034 Other 110,152 - - 29,997 45,203 185,352

Prepaid item s 83,408 - 6 ,200 29,671 - 119,279 Inventories 394,419 - - - - 394,419

317,006 38,375,987 - 128,086,947 - 166,779,940 Tota l as s ets 41,555,117$ 44,325,235$ 3 ,549,129$ 128,146,615$ 4,920,174$ 222,496,270$

LIABILITIES AND FUND BALANCESLiabilities :

Accounts payable 6,661,777$ 500$ 252,900$ 4 ,802,684$ 1,095,867$ 12,813,728$ Reta inages payable - - - 742,247 30,350 772,597 Accrued com pens ation 14,160,167 - 1 ,563,548 - 254,138 15,977,853 Deferred revenue 1,794,325 706,183 869,081 - 773,626 4,143,215 Future Ins urance cla im s liab ility 228,779 - - - - 228,779 Com pens ated abs ences 215,002 - - - - 215,002

Tota l liab ilities 23,060,050 706,683 2 ,685,529 5 ,544,931 2,153,981 34,151,174

Fund balances :Res erved for:

Inventories 394,419 - - - - 394,419 Capita l cons truction - - - 122,572,013 - 122,572,013 Debt s ervice - 43,618,552 - - - 43,618,552 Em ergencies 8,076,276 - - - - 8,076,276 Multip le year ob ligations 317,006 - - - - 317,006 Grants - - 857,400 - - 857,400 Colorado Pres chool Program 369,891 - - - - 369,891 Prepaid item s 83,408 - 6 ,200 29,671 - 119,279

Unres erved, reported in :General fund 9,254,067 - - - - 9,254,067 Specia l revenue funds - - - - 2,554,572 2,554,572 Capita l pro jects funds - - - - 211,621 211,621

Tota l fund balances 18,495,067 43,618,552 863,600 122,601,684 2,766,193 188,345,096 Tota l liab ilities and fund balances 41,555,117$ 44,325,235$ 3 ,549,129$ 128,146,615$ 4,920,174$ 222,496,270$

The notes to the bas ic financia l s ta tem ents are an integral part of th is s ta tem ent.

Res tricted: Cas h and cas h equivalents

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2009

37

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets

Total fund balances for governmental funds 188,345,096$

therefore are not reported in the funds. Those assets consist of:Land 19,270,500$ Buildings and improvements, net of $184,637,401 accumulated depreciation 225,749,947

3,651,198Construction in-progress 14,168,101

Total capital assets 262,839,746

746,939

60,000

(300,320)

(347,787,032)

(682,667)

2,500,508

(1,452,083)

(8,161,918)

Total net assets of governmental activities 96,108,269$


Internal service funds are used by the district to charge the cost of copier chargesand printing services to the individual funds. This amount includes capital assets.

Noncurrent liabilities for general obligation debt applicable to the district'sgovernmental activities are not due and payable in the current period and are notreported as fund liabilities. However, all liabilities, both current and long-term,including deferred charges, are reported in the statement of net assets.

Compensated absences considered to be long-term in nature are not recognizedas a liability in the fund financial statements but are treated as long-term liabilitieson the statement of net assets.

The current operating resources measurement focus in the governmental fundstatements does not require the recognition of accrued interest payable for long-term debt. This amount represents the amount of interest payable accrued in thegovernment-wide statements for long-term debt for general obligation debt.

Deferred revenues do not provide current financial resources and the revenues arenot recognized on the fund financial statements but are recognized on thegovernment-wide financial statements (net of long-term payable of $2,934).

The district has estimated arbitrage liability for the 2006A Series GeneralObligation Bonds. The liability is not recognized in the fund statements becausethe liability is not payable in the current period. However, the liability is added as along-term liability in the government-wide Statement of Net Assets.

Noncurrent recievables for multiple year agreements are not considered availabe inthe fund financial statements. However, all receivables, both current and long-term, are reported in the statement of net assets.

Capital leases do not have an effect on the governmental statements but need tobe subtracted from government-wide net assets.

Capital assets used in governmental activities are not financial resources and

Total net assets reported for governmental activities in the Statement of Net Assets isdifferent because:

Equipment and vehicles, net of $18,472,054 accumulated depreciation and $196,118 internal service funds

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2009

38

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds

Debt Service Special Revenue Capital ProjectsBond Other Total

General Redem ption Grants Building Governm ental Governm entalREVENUESLocal:

Property taxes 70,792,560$ 27,887,426$ -$ -$ -$ 98,679,986$ Specific ownership 6,798,670 - - - - 6,798,670 Pupil activities - - - - 950,534 950,534 Tuition 403,260 - - - 3,716,027 4,119,287 Activity fees - - - - 19,263 19,263 Gifts and grants - - 155,427 - 30,000 185,427 Other 2,754,794 8,126 - - 1,073,852 3,836,772 Rental of buildings - - - - 479,973 479,973 Earnings on inves tm ents 221,056 166,542 - 525,070 153,280 1,065,948

State:State equalization 162,522,117 - - - 5,095,985 167,618,102 Vocational education 2,121,480 - - - - 2,121,480 Special education 5,677,912 - - - - 5,677,912 Grants - - 1,334,352 - - 1,334,352 Transportation 1,305,549 - - - - 1,305,549 English Language Proficiency Act 1,067,601 - - - 60,460 1,128,061

Federal grants 88,555 - 24,190,726 - - 24,279,281 Total revenues 253,753,554 28,062,094 25,680,505 525,070 11,579,374 319,600,597

39

EXPENDITURESCurrent:

Ins truction 152,048,858 - 15,448,352 - 4,054,872 171,552,082 Pupil support 14,059,246 - 2,594,247 - 232,361 16,885,854 Ins tructional s taff support 8,859,315 - 3,374,004 - 17,049 12,250,368 General adm inis tration 3,890,777 - 809,191 261,591 686,944 5,648,503 School adm inis tration 19,224,010 - 174,087 - 109,822 19,507,919 Bus iness adm inis tration 3,392,558 - - 812,982 - 4,205,540 Operations and m aintenance 25,344,722 - 164,235 - 353,619 25,862,576 Transportation 6,353,741 - - - 1,438 6,355,179 Personnel/data/ris k m anagem ent 10,341,148 - 1,132,234 - 2,481 11,475,863 Other support services 594,896 - 1,821,818 - 1,538,404 3,955,118

Facilities acquis ition and im provem ents 27,061 - 65,172 21,413,502 7,015,741 28,521,476 Debt service 3,016 22,364,759 - - - 22,367,775

Total expenditures 244,139,348 22,364,759 25,583,340 22,488,075 14,012,731 328,588,253 Excess (deficiency) of revenues over (under) expenditures 9,614,206 5,697,335 97,165 (21,963,005) (2,433,357) (8,987,656)

OTHER FINANCING SOURCES (USES)Trans fers in:

General fund - - 44,354 - 969,205 1,013,559 Trans fers out:

Print Services fund (443,942) - - - - (443,942) Grants fund (44,354) - - - - (44,354) Nonm ajor governm ental funds (969,205) - - - - (969,205)

Capital leases - - - - 383,600 383,600 General obligation bonds is sued - - - 132,685,000 - 132,685,000 Prem ium on debt is sued - - - 1,076,700 - 1,076,700

Total other financing sources (uses ) (1,457,501) - 44,354 133,761,700 1,352,805 133,701,358

Net change in fund balances 8,156,705 5,697,335 141,519 111,798,695 (1,080,552) 124,713,702

Fund balances - July 1, 2008 10,338,362 37,921,217 722,081 10,802,989 3,846,745 63,631,394 Fund balances - June 30, 2009 18,495,067$ 43,618,552$ 863,600$ 122,601,684$ 2,766,193$ 188,345,096$

The notes to the bas ic financial s tatem ents are an integral part of this s tatem ent.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2009

40

Net changes in fund balances -tota l governm ental funds : 124,713,702$

8,655,000

249,004

(132,685,000)

328,549

165,555

733,135

10,581,895

(383,600)

31,919

594,530

(563,077)

(187,924)

(67,821)

60,000

Change in net as s ets of governm ental activities . 12,225,867$

The notes to the bas ic financial s tatem ents are an integral part of th is s tatem ent.

Noncurrent receivables for m ultip le year agreem ents are not cons idered available in thefund financial s tatem ents . However, all receivables , both current and long-term , arereported in the s tatem ent of net as s ets .

The change in com pens ated abs ences are not recognized as an expens e in the fundfinancia l s tatem ents but are recognized in the Statem ent of Activities .

The current operating res ources m eas urem ent focus in the governm ental funds tatem ents does not require the recognition of accrued interes t payable for long-termdebt. This am ount repres ents the change in am ount of interes t payable accrued in thegovernm ent-w ide s tatem ents for long-term debt for general obligation debt ($1,452,083)les s the previous year's balance ($889,006).

Arbitrage expens e related to the 2006A Series General Obligation bonds will not be paidwith current operating res ources , but th is expens e is recognized on the Statem ent ofActivities .

Internal s ervice funds are us ed by the dis trict to charge the cos ts of copier charges andprinting s ervices to the individual funds . The net incom e of the internal s ervice funds isincluded in the Statem ent of Activities .

Deferred revenue does not provide current financial res ources on the governm ental fundfinancia l s tatem ents , but th is decreas e in revenue is recognized on the governm ent-w ides tatem ents .Governm ental funds report capital outlays as expenditures . However, in the Statem ent ofActivities , the cos t of thos e as s ets is allocated over their es tim ated us eful lives andreported as depreciation expens e. This is the am ount by which capital outlays exceededdepreciation in the current period.

Governm ental funds report the prem ium on debt is s ued as an other financing s ource.However, in the Statem ent of Activities , the funds as s ociated with the prem ium areallocated over the life of the debt and netted w ith interes t expens e.

Am ounts reported for governm ental activities in the Statem ent of Activities are different becaus e:

D is trict fees charged to charter s chools in FY08 were not due until s everal m onths afterthe dis trict's year end; they were not cons idered as "available" revenues in the previousyear's governm ental s tatem ents . The fees were collected during current year, thereceivable needs to be relieved and s ubtracted from the governm ental revenues on theStatem ent of Activities .

Governm ental funds report debt is s uance fees as expenditures . However, in theStatem ent of Activities , the cos t of thos e fees is allocated over the life of the debt andreported as deferred charges .

Repaym ent of long-term debt is an expenditure in the governm ental funds but reduces theliability in the Statem ent of Net As s ets .

Governm ental funds report general obligation bonds as an other financing s ource.However in the s tatem ent of activities , the funds as s ociated with the debt are recorded asa noncurrent liability and therefore are s ubtracted from governm ental funds .

A long-term payable to Colorado Departm ent of Education res ulting from a prior year'ss tudent count audit was recognized as a long-term payable in FY08 and paid in FY09.This res ults in an increas e to revenue ($500,231) and a decreas e to expens es ($94,299)and is recognized and reported on the governm ent-w ide Statem ent of Activities .

Capital leas es are recorded as long-term liabilities in the governm ent-w ide s tatem entsand expenditures in the governm ental s tatem ents . This am ount s hould be s ubtractedfrom the governm ental expenditures on the Statem ent of Activities .

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Net Assets Proprietary Funds June 30, 2009

41

Statement of Net Assets – Proprietary Funds

Business-type Activity Governmental ActivitiesEnterprise Fund Internal Service Funds

Nutrition ServicesASSETSCurrent as s ets :

Cas h and cas h equivalents 534,010$ 331,241$ Receivables :

Grants 299,607 - Other 6,346 6

Inventories 787,495 182,044 Prepaid item s 57,402 -

Total current as s ets 1,684,860 513,291

Noncurrent as s ets :Equipm ent and vehicles 1,658,788 774,608 Build ing im provem ents 4,253,072 - Cons truction in progres s 53,479 -

Les s accum ulated depreciation (2,483,881) (578,490) Total capital as s ets (net of accum ulated depreciation) 3,481,458 196,118 Total noncurrent as s ets 3,481,458 196,118

Total as s ets 5,166,318 709,409

LIABILITIESCurrent liabilities :

Accounts payable 61,107 11,016 Accrued s alaries and benefits 379,007 - Com pens ated abs ences 5,026 61,852 Deferred revenue 58,758 -

Total current liabilities 503,898 72,868 Noncurrent liabilities :

Com pens ated abs ences 188,272 1,651 Total noncurrent liabilities 188,272 1,651

Total liabilities 692,170 74,519

NET ASSETSInves ted in capital as s ets 3,481,458 196,118 Unres tricted 992,690 438,772

Total net as s ets 4,474,148$ 634,890$

Adjus tm ent to reflect the cons olidation of internal s ervicefund activities related to enterpris e funds (112,049)

Net as s ets of bus ines s -type activity 4,362,099$


JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended June 30, 2009

42

Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds

Business-type Activity Governm ental ActivitiesEnterprise Fund Internal Service Funds

Nutrition ServicesOperating revenues :

Student and faculty food s ales 2,363,364$ -$ Us er charges - 1,184,004 Other 138,261 1,995

Total operating revenues 2,501,625 1,185,999

Operating expens es :Salaries and benefits 5,418,104 856,310 Profes s ional s ervices 36,094 - Food purchas es 4,198,771 - USDA com m odity item s 207,445 - Supplies 441,526 457,649 Equipm ent under capitalization thres hold 84,258 15,693 Equipm ent rental and m aintenance 209,613 179,006 Other expens es 223,885 3,908 Depreciation 429,971 101,880

Total operating expens es 11,249,667 1,614,446 Operating los s (8,748,042) (428,447)

Nonoperating revenues (expens es ):Federal governm ent m eal reim burs em ents 8,407,830 - State m atch 266,752 - USDA com m odity contributions 207,445 - Los s on s ale of equipm ent (2,633) - Capital contribution - 9,371

Total nonoperating revenues (expens es ) 8,879,394 9,371 Gain (los s ) before trans fers 131,352 (419,076)

Trans fer in from General Fund - 443,942 Change in net as s ets 131,352 24,866

Total net as s ets , July 1, 2008 4,342,796 610,024 Total net as s ets , June 30, 2009 4,474,148$ 634,890$

Adjus tm ent to reflect the cons olidation of internal s ervicefund activities related to enterpris e funds (7,053)

Change in net as s ets of bus ines s -type activites 124,299$


JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2009

43

Statement of Cash Flows – Proprietary Funds

Business-type ActivityEnterprise Fund

Nutrition Services

Cash flows from operating activities:Cash received from customers/students 2,537,834$ 1,186,843$ Cash payments to employees for services (5,345,746) (855,639) Cash payments to suppliers for goods and services (5,520,890) (729,970)

Net cash (used) by operating activities (8,328,802) (398,766)

Cash flows from noncapital financing activities:Transfers in - 443,942 State grants received 192,457 - Federal grants received 8,780,672 -

Net cash provided by noncapital financing activities 8,973,129 443,942

Cash flows from capital and related financing activities:Acquisition of capital assets (110,317) -

Net increase in cash and cash equivalents 534,010 45,176

Cash and cash equivalents at beginning of year - 286,065

Cash and cash equivalents at end of year 534,010$ 331,241$

Reconciliation of operating loss to netcash (used) by operating activities:

Operating loss (8,748,042)$ (428,447)$ Adjustments to reconcile operating loss to

net cash (used) by operating activities:Depreciation 429,971 101,880 Donated food commodities 207,445 -

Change in assets and liabilities:Accounts receivable 36,209 844 Inventories (103,872) 6,377 Prepaid (1,956) - Accounts payable (58,231) (4,284) Interfund accounts payable (162,684) (75,807) Accrued earnings and compensated absences 72,358 671

Total adjustments 419,240 29,681

Net cash (used) by operating activities (8,328,802)$ (398,766)$

Noncash investing, capital, and financing activities:Donated food commodities 207,445$ -$ Utilization of food commodities (207,445) -

Net effect on noncash transactions -$ -$


Internal Service FundsGovernmental Activities

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Fiduciary Assets and Liabilities Fiduciary Fund – Agency Fund June 30, 2009

44

Statement of Fiduciary Assets and Liabilities– Fiduciary Fund – Agency Fund

Agency

Pupil Activity

ASSETS

Cas h and cas h equivalents 820,939$ Accounts receivable 21,449

Total as s ets 842,388$

LIABILITIES

Accounts payable 47,144$ Due to s tudent groups 795,244

Total liabilities 842,388$


45

Notes to the Basic Financial Statements

NOTES TO THE BASIC FINANCIAL STATEMENTS

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Notes to Basic Financial Statements June 30, 2009

46

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying basic financial statements of Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado, have been prepared in accordance with accounting principles generally accepted in the United States of America. In addition, the district conforms to the Colorado Financial Policies and Procedures Handbook as required by Colorado statutes. A summary of the significant accounting policies applied in the preparation of the basic financial statements is described below.

Reporting Entity The Joint School District No. 28-J of the Counties of Adams and Arapahoe, Colorado, is a political subdivision and corporate body of the state of Colorado. The district’s board of education is the lowest level of government having financial accountability and responsibility for activities related to public school primary, secondary, and vocational education within the district. The public elects a seven-member board of education, which has the authority to make decisions, the power to designate management, the ability to significantly influence operations, and the primary accountability for fiscal matters. The board members are elected for four-year terms. The district superintendent serves as the executive officer of the board. The superintendent does not maintain any voting privileges.

The district receives local, state, and federal funding and must comply with regulations established by all of these entities. However, the district is not included in any other governmental reporting entity as defined in Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity. In accordance with accounting principles generally accepted in the United States of America requirements, these financial statements present all funds of the district and its component units. The component units discussed below, although legally separate entities, are included in the district's reporting entity because of the nature and significance of their operational or financial relationships with the district.

Discretely Presented Component Units—Charter Schools In 1993, the Colorado state legislature enacted the Charter School Act, §22-30.5-101, C.R.S., which permits the district to contract with individuals and organizations for the operation of charter schools within the district. A charter school operates as a public school within the district and is accountable to the school district’s local board of education for purposes of ensuring compliance with applicable laws and charter provisions. Charter schools have separate legal standing, and they possess separate corporate powers which are enumerated in their contracts and distinguish them as separate legal entities from the district. Each charter school has its own separate governing board; however, the district’s board of education must approve all charter school applications and budgets. The district has approved six charter school applications for operation during 2008-09. Funding, as required by law, flows from the Colorado Department of Education through the district and to the charter schools on a monthly basis. The financial data of these discretely presented component units is presented in a separate column on the government-wide statements because of the significance of their financial relationship with the district and are considered nonmajor.

One new charter school began operations in the 2008-09 school year, AXL Charter School. The board of education approved the school’s charter on June 19, 2007.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Notes to Basic Financial Statements, Continued June 30, 2009

47

Each charter school prepares its own separately issued financial statements. These statements can be obtained by sending a request to:

School name: Address: Aurora Academy 10251 E. First Avenue Aurora, CO 80010 AXL Charter School 14100 E Jewell Avenue Aurora, CO 80012 Global Village Academy 403 S. Buckley Road Aurora, CO 80017 Lotus School for Excellence 11001-A E. Alameda Avenue Aurora, CO 80012 New America School-Aurora 925 S. Niagara Street, Suite 140 Denver, CO 80224 Vanguard Classical School 801 Yosemite Street Denver, CO 80230

Discretely Presented Component Unit – Aurora Public Schools Education Foundation The Aurora Public Schools Education Foundation was incorporated in 1987 as a non-profit organization. The foundation is a community-based advocate for quality public education for all students within the district. Programs administered by the foundation include grants, scholarships and special projects which support innovative classroom initiatives and enhance the educational opportunities of district students and staff. The foundation’s financial reporting is in accordance with Financial Accounting Standards Board Statement No. 117, Financial Statements of Not-for-Profit Organizations, a different GAAP reporting model than is used by the district. In accordance with Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity, and Governmental Accounting Standards Board Statement No. 39, Determining Whether Certain Organizations Are Component Units, the district has elected to present the foundation’s financial statements as separate statements within the government-wide presentation.

Complete financial statements for this component unit may be obtained from Aurora Public Schools Education Foundation administrative offices located at 15701 E. First Avenue, Suite 100, Aurora, Colorado 80011. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements; only the net residual amounts due between governmental and business-type activities are presented as internal balances. 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. The primary government is reported separately from the discretely presented component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Capital asset depreciation is reported as a direct expense of the functional program that benefits from the use of the capital asset. Program revenues include 1) charges to 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. Eliminations are made in the statement of activities to remove the “doubling-up” effect of internal service fund activity. However, the effect of interfund services provided and used between functions is not eliminated in the process of consolidation.


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Separate financial statements are provided for governmental funds, proprietary funds, and the district’s single fiduciary fund. The fiduciary fund’s statements are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting and Financial Statement Presentation 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 have been met. 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.

Governmental funds account for the district’s general governmental activities and use the spending or flow of current financial resources measurement focus. This measurement focus means that only current assets and current liabilities are included in these balance sheets. The reported fund balances are considered a measure of available spendable resources. Governmental fund operating statements show increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they present a summary of sources and uses of available spendable resources during the reporting period.

All governmental funds use the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when susceptible to accrual, or when they become measurable and available. Measurable means the amount of the transaction can be determined, while available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues susceptible to accrual include property taxes and payments from the state for equalization funding, special education and vocational education reimbursements. Other revenues susceptible to accrual include tuition payments received from other school districts, rental receipts for building usage that occurred in the fiscal year but were paid after year end and federal grant revenues. The district considers these other revenues available if they are collected within 60 days after year end. Other local receipts are not susceptible to accrual since they are generally not measurable until received. The district considers all property tax revenues available if they are collected within 60 days after year end. In addition, under the modified accrual basis of accounting, expenditures are recorded when the liability is incurred with two exceptions. These exceptions include (1) interest on general long-term obligations which is recognized when due, and (2) compensated absences such as accrued unpaid vacation pay and sick leave which are recognized when the obligations are expected to be liquidated when matured.

Governmental Funds The General Fund is the government’s primary operating fund. It is used to account for all financial resources of the general government, except those required to be accounted for in another fund. Special revenue funds are used to account for proceeds of special revenue sources that are legally restricted to expenditures for specified purposes, except for major capital projects. The Bond Redemption Fund is the government’s debt service fund. It accounts for the accumulation of resources to pay general long-term debt principal, interest, and related costs. Because of its large cash reserve, the Bond Redemption Fund is presented as a major fund on the governmental statements.


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The capital projects funds are used to process capital-related expenditures such as for land and building acquisition, construction or repair. The Building Fund, the district’s major capital projects fund, accounts for construction and renovation projects funded by the sale of general obligation bonds in 2006 and 2008. The district also operates a nonmajor capital projects fund, the Capital Reserve Capital Projects Fund.

Proprietary Funds Proprietary funds use the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when liabilities are incurred. Proprietary funds report all assets and liabilities, whether current or noncurrent, on their statements of net assets. Similar to private industry, the focus in these funds is income determination and capital maintenance. Proprietary fund type operating statements present increases (revenue) and decreases (expense) in total net assets. 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 ongoing operations of the fund. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The district has implemented the provisions of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, with regard to the application of Financial Accounting Standards Board pronouncements applicable to business-type activities and its enterprise fund. In accordance with the provisions of GASB Statement No. 20, the district has applied those FASB statements and interpretations issued on or before November 30, 1989, unless the pronouncements conflict with or contradict GASB pronouncements. Governments are given the option whether or not to apply FASB statements and interpretations issued after November 30, 1989. The district has elected not to implement this option. Proprietary funds are defined as either enterprise funds or internal service funds. The district’s enterprise fund, Nutrition Services Fund, is used to account for school cafeteria operations financed and operated in a manner similar to private business enterprises. The intent of this program is recovering costs of services primarily through user charges. Student breakfast and lunch revenues and related expenses are accounted for in this fund. When both restricted and unrestricted resources are available for use, it is the district’s policy to use restricted resources first, and then use unrestricted resources as they are needed. The district’s two internal service funds, the Copier Services Internal Service Fund and the Print Services Internal Service Fund, are used to account for operations that provide copier services and printing services between departments within the district.

Fiduciary Fund The district’s fiduciary fund, the Pupil Activity Nonsubsidized Agency Fund, is used to account for assets held by the district in a trustee capacity or as an agent for individuals, private organizations, other governments and other funds. Assets held by the district in this agency capacity are not available for use by the general government. The district’s role is purely custodial, and district programs do not benefit from the resources accounted for in this fund. Financial statements for this fund use the accrual basis of accounting and do not present results of operations. The district reports the following major funds.

Fund Group District Fund Name Fund Type Governmental Funds General Fund General Grants Fund Special Revenue Building Fund Capital Projects Bond Redemption Fund Debt Service


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Additionally, the district reports four nonmajor governmental funds, three nonmajor proprietary funds and a single fiduciary fund. Fund Group District Fund Name Fund Type Governmental Funds Pupil Activity-Subsidized Fund Special Revenue Athletic Fund Special Revenue Special Programs Fund Special Revenue Capital Reserve Capital Projects Fund Capital Projects Proprietary Funds Nutrition Services Fund Enterprise Copier Services Fund Internal Service Print Services Fund Internal Service Fiduciary Fund Pupil Activity – Non-Subsidized Fund Agency

Assets, Liabilities and Equity Deposits and Investments As mandated by §22-45-103, C.R.S., the district maintains deposits for the Bond Redemption Fund in a third-party custodial bank, U.S. Bank NA, located at 950 Seventeenth Street, Denver, CO 80202. To maintain the segregation of bond proceeds, separate accounts for the 2006 and 2008 bond issues were established at U.S. Bank NA for the Building Fund’s day-to-day cash needs. In order to maximize interest earnings, all other funds’ cash deposits are maintained in a cash and investment pool.

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. Investments are carried at fair value based on current market quotations.

The district is required to deposit funds in eligible public depositories as defined by §11-10.5-104, C.R.S. The eligible depository is required to pledge collateral having a market value that exceeds 102 percent of uninsured aggregate public deposits to the Colorado Division of Banking. Eligible collateral types include obligations of the United States, the state of Colorado, local Colorado governments, and obligations secured by first lien mortgages on real property located in the state. The collateral is not held in the name of the district but is part of a collateral pool. The district's bank deposits are entirely covered by federal depository insurance or collateralized in accordance with the statute.

The district and its component units maintain deposits in the Colorado Government Liquid Asset Trust (Colotrust) and Colorado Surplus Asset Fund Trust (CSAFE), investment vehicles established by state statute for local governments in Colorado to pool surplus funds for investment purposes. Colotrust and CSAFE operate similarly to demand deposit accounts where each share is equal to one dollar. Colotrust and CSAFE invest in U.S. Treasury securities, written repurchase agreements, certain approved obligations of agencies of the U.S. government and commercial paper rated in the highest rating category.

The district considers Colotrust funds and U.S. government securities and certificates of deposit with an original maturity of three months or less to be cash equivalents.


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It is the policy of the district to invest public funds in a manner which will provide the highest investment return with the maximum security, meet the daily cash flow demands of the district, and conform to all federal, state and local statutes governing the investment of public funds. This policy applies to the investment of all financial assets and all funds of the district over which it exercises financial control. Investment activities are governed by §24-75-601, C.R.S.

Cash with Fiscal Agent In September 2000, the district entered into a debt service deposit forward delivery agreement with a financial institution with the approval of the district’s board of education and in accordance with Colorado General Assembly House Bill 00-1046. This agreement allows the district to increase the reliability of its cash flow from earnings on investments. The district provides the financial institution with periodic payments from its Bond Redemption Fund property tax revenue in return for an upfront lump sum amount. In addition, the financial institution supervises the investment of the periodic payments until the cash is needed to pay the annual bond payment due in December each year. The upfront lump-sum amount of $1,975,000, which represents the present value of interest proceeds expected to be earned, was recognized as deferred revenue and is being amortized over a 15-year period in the Special Programs Fund. Interfund Transactions Transactions between funds that are representative of lending or borrowing arrangements result in interfund balances. Balances representing the current portion of interfund loans are reported as due to/from other funds, while advances to/from other funds represent the noncurrent portion of interfund loans. Another type of interfund transaction is a transfer, which occurs when resources of one fund are transferred to another fund. For the fiscal year ended June 30, 2009, the district reported only interfund transfers.

Receivables and Payables Property taxes are levied on December 15 and are payable in full by April 30, or in two equal installments due February 28 and June 15. Taxes are considered past due on June 15. Personal property taxes that remain unpaid as of October 1 will be subject to distraint, seizure and sale to satisfy taxes due. Adams and Arapahoe counties bill and collect property taxes for all taxing entities in the counties. Property tax receipts collected by the counties on behalf of the district are remitted to the district in the subsequent month. A fee of 0.25 percent on General Fund collections is retained by both counties as compensation for collecting the taxes and is reflected as an expenditure in the General Fund.

In the governmental statements, which use the modified accrual basis of accounting, property taxes are reported as receivables and deferred revenues when taxes are levied. Taxes received within 60 days after year end are reported as revenue and as county treasurers’ receivables. In the government-wide statements, which use the full accrual basis of accounting, property taxes are recognized as revenue for the full levy amount in the period for which they are levied. All property tax receivables are shown net of an allowance for doubtful accounts, calculated as 0.5 percent of the year’s total levy amount.

For federal and state grants and entitlements, a receivable is established when related expenditures exceed receipts, and revenue is recognized to the extent of related expenditures when eligibility requirements are met. Deferred federal and state grant and entitlement revenue is established when receipts exceed expenditures and all eligibility requirements have not been met.


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Inventories Inventories consist of expendable supplies held for consumption. Expenditures for supplies are recorded upon the release of these items to various schools and departments. Inventories for governmental activities are stated at cost as determined by the weighted average cost method. Expenses for food items in the business-type activity are recorded when used. The federal government donates surplus commodities to supplement the National School Lunch Program. Such commodity inventories are stated at assigned values per the U.S. Department of Agriculture, which approximate fair value at the date of receipt. Contributions received by the district are recorded as nonoperating revenue when the commodities are consumed. Capital Assets The primary government considers capital equipment and vehicles to be those items having a useful life greater than one year and having an original item value greater than $5,000. The district considers capital renovations to be those items that significantly enhance the value of previously existing assets and have a project value greater than $25,000. In addition, the district considers capital improvements to be those items that add new functionality to existing assets and have a project value greater than $10,000. The component units consider capital assets to be those items having a useful life greater than one year and an original value greater than $5,000. All capital assets are recorded at either original cost or an estimated historical cost in the case of assets for which actual cost was not determinable. Donated assets have been recorded at estimated fair value at the date of receipt. Expenditures that significantly enhance the value of an asset whether land, building, or equipment are capitalized according to the district’s policies. However, expenditures for repairs, maintenance and expendable supplies are not capitalized. Capital assets of the district, as well as its component units, are depreciated using the straight line method over the following estimated useful lives:

Assets Years

Buildings 40Building and site improvements/renovations 10-20Vehicles 7-12Equipment 5-12

Accrued Compensation Salaries and benefits of certain contractually employed personnel are paid over a 12-month period from August to July for the both the district and its charter school component units, but are earned during a school year of approximately ten months. Salaries and benefits earned, but unpaid as of the end of the fiscal year are not required to be funded for budgetary purposes under current Colorado school district budget law. Instead, they are budgeted for payment in the subsequent fiscal year. Accordingly, the unreserved fund balance carried to the subsequent year, as a budgetary source of funding, is not affected by the amount of accrued salaries and benefits. Increases or decreases in accrued compensation liability are reported as expenditures of individual funds for financial reporting purposes, but they have no effect on the funds' budgetary accounting procedures.

Compensated Absences-Accumulated Unpaid Vacation Pay and Paid Leave District policy allows employees to accumulate unlimited paid leave and unused vacation to specified limits. Upon retirement or termination of employment, employees with at least ten years of service are entitled to be paid for a portion of their accumulated unused paid leave in excess of 30 days. Unused vacation leave is expected to be used in the year in which it was earned but may be accumulated and carried over to specified limits. Unused vacation is paid in full to specified limits upon an employee’s retirement or termination of employment.


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For the Nutrition Services Fund and the two internal service funds, which use the accrual basis of accounting, amounts of unpaid vacation and paid leave accumulated by district employees are accrued as expenses when incurred. In the governmental funds, which use the modified accrual basis of accounting, only the amounts due at the end of the fiscal year are accrued as current-year expenditures. These amounts are shown as fund liabilities. The General Fund is used to liquidate the compensated absences liabilities of the governmental funds.

In the government-wide statements, the district estimates that the portion of the total unused vacation pay and sick leave considered to be matured is equal to the actual amount paid out during the first 30 days of the next fiscal year. The remaining earned, but unused, vacation and sick leave is considered to be a long-term liability.

Noncurrent Liabilities In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. Bond premiums and discounts are recognized as other financing sources and uses respectively. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures in the Building Fund.

For financial reporting purposes, the district follows the requirements of Financial Accounting Standards Board No. 13, Accounting for Leases; which states under certain circumstances for capital leases, the present value of future minimum lease payments should be shown as a liability and related assets should be capitalized in the basic financial statements. Leases held by the district have been renewed annually, and title to the related property has been acquired pursuant to the lease.

General obligation bonds are serviced from property taxes and other revenues of the Bond Redemption Debt Service Fund. Refunded bonds are serviced by irrevocable refunding escrow accounts established at the time of refunding. Accumulated unpaid vacation and sick leave for governmental funds is serviced from the General Fund.

Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.

Estimates Preparation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.


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NOTE 2: RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

Explanation of Differences between the Governmental Funds Balance Sheet and the Government-wide Statement of Net Assets

the current financial resources focus of the governmental funds balance sheets.Total governmental funds balances 188,345,096$

Noncurrent liability typeGeneral obligation bonds payable 336,955,000 Premium net of issuance fees 10,832,032 Amount to be subtracted from fund balances (347,787,032)

(682,667)

Fund Type of deferred revenue AmountGeneral Fund

1,794,325

Bond Redemption Fund706,183

Amount to be added to fund balances 2,500,508

Total fund balances of the district’s governmental funds ($188,345,096) differ from the net assets ofgovernmental activities ($96,108,269) reported in the statement of net assets. This difference

Deferred revenue amounts in the reconciliation are related to estimateddeferred property taxes anticipated to be collected in the future and a smallamount of accrued interest earnings. To be considered revenue in thegovernmental statements, property taxes must be earned as well asavailable to the district. These property taxes have been earned, howeverthey are delinquent and not available to the district. Therefore, they aredeferred in the governmental statements. The government-wide statementsdo not make this distinction and property taxes are recognized as revenue,subject to an allowance for doubtful accounts.

Property tax, less estimated uncollectible delinquent tax

Property tax, less estimated uncollectible delinquent tax

Noncurrent liabilities, including general obligation bonds and notes payable,applicable to the district’s governmental activities are not due and payable inthe current period and are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized asan expenditure when due. All liabilities, both current and long-term, arereported in the statement of net assets.

The district has estimated arbitrage liability for the 2006A Series GeneralObligation Bonds . The liability is not recognized in the fund statementsbecause the liability is not payable in the current period. However, theliability is recorded as a long-term liability in the government-wide statementof net assets and needs to be subtracted from governmental fundsbalances.

Principal payable

primarily results from the additional long-term economic focus of the statement of net assets versus


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Explanation of Certain Differences between the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities

Original cost of capital assets 465,370,711 Less accumulated depreciation (202,530,965)

262,839,746

(300,320)

746,939

(8,161,918)

(1,452,083)

60,000

Total government-wide net assets 96,108,269$

A long-term receivable is not recognized in the governmental funds. From afull accrual perspective, the long-term payable is recognized and reported inthe government-wide Statement of Activities.

The net asset value of the two internal service funds is consolidated into thegovernment-wide statements and added to the fund balances.

Compensated absences are considered to be long-term in nature and arenot recognized as a liability in the governmental financial statements but aretreated as long-term liabilities in the statement of net assets and aresubtracted from fund balances.

This amount represents the amount of accrued interest payable in thegovernment-wide statements for general obligation debt. This amount issubtracted from governmental fund balances.

The costs of building and acquiring capital assets (land, buildings,equipment and vehicles) financed from governmental funds are reported asexpenditures in the year they are incurred, and the assets do not appear onthe balance sheet. However, the statement of net assets includes thosecapital assets among the assets of the district as a whole, and their originalcosts are expensed annually over their useful lives.

Total capital assets, net of depreciation, to be added to fund balancesCapital leases do not have an effect on the governmental fund balances butare recorded as long term liabilities on the government-wide statements.This amount needs to be subtracted from the governmental fund balances.

the governmental funds. The main components of the differences are described below.

activities ($320,826,142) in the statement of activities. The differences result primarily from theeconomic resources focus of the statement of activities versus the current financial resources focus of

Total revenues ($319,600,597) in the governmental funds differ from total revenues for governmental


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Revenues from governmental funds s tatem ents 319,600,597$

733,135

500,231

(67,821)

60,000

Charges for services 5,561,236 Operating grants and contributions 28,361,940 General revenues 286,902,966

Total revenues for governmental activities 320,826,142$

Dis trict fees charged to charter schools are not due until several months afterthe dis trict's year end; they are not cons idered as "available" revenues in thegovernmental funds and are subtracted from the governm ental revenues on theStatement of Activities .

Total revenues of governmental activities from s tatement of activities :

The increase in property taxes from prior year to current year are added to thegovernmental revenues on the Statement of Activities to accurately reflect theproperty tax receivable for the current year.

A long-term payable to Colorado Departm ent of Education resulting from a prioryear's s tudent count audit adjus tm ent is not recognized in the governmentalfunds . From a full accrual perspective, the long-term payable results in aincrease to revenue and is recognized and reported on the governm ent-wideStatement of Activities .

Revenues from noncurrent receivables for m ultiple year agreem ents are notcons idered available in the fund financial s tatements . However, all revenuesfrom receivables , both current and long-term , are reported in the s tatem ent ofactivities .

governmental funds. The main components of the differences are described below.

Total expenditures from governmental funds statements 328,588,253$

Reduction of principal in statement of net assets 8,655,000 Less current year’s amortization of escrow and issuance costs 249,004 Total to be subtracted from governmental expenditures (8,904,004)

(328,549)

Repayment of bond principal and notes payable is an expenditure in the governmentalfund statements. Charges for escrow and issuance costs are recorded as expendituresin the governmental funds statements. The statement of net assets records thereduction of principal as a reduction in long-term liabilityand amortizes the escrow andissuance costs over the life of the debt.

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and therefore are not reported as expenditures in governmentalfunds. The estimated arbitrage expense for the 2006A Series General ObligationBonds decreased from the prior year and should be subtracted from the governmentalfunds expenditures.

Total expenditures ($328,588,253) of the governmental funds differ from the total expenses of governmentalactivities ($308,600,275) reported in the statement of activities. The difference is attributable primarily to theeconomic resources focus of governmental activities versus the current financial resources focus of the


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(1,242,255)

(94,299)

(10,198,295)

412,023

(383,600)

187,924

563,077

Total expenses of governmental activities 308,600,275$

Capital leases are recorded as long term liabilities in the government-widestatements and expenditures in the governmental statements. This amount shouldbe subtracted from governmental expenditures.

A long-term payable to the Colorado Department of Education resulting from a prioryear's audit adjustment is not recognized in the governmental funds. From a fullaccrual perspective, the long-term payable results in an additional expense and isrecognized and reported on the government-wide statement of activities.

Premiums received in connection with the issuance of debt obligations areamortized to interest expense over the life of the obligation in the government-widefinancial statements and are recognized as other financing sources at the date ofissuance in the governmental funds financial statements.

This amount represents change in the amount of accrued interest payable in thegovernment-wide statements for long-term debt for the period from June 1, 2009, toJune 30, 2009. This amount is added to the governmental expenditures.

expense. This is the amount by which the change in capital expenditures($21,291,812) minus a capital lease ($300,320) exceeded the change inaccumulated depreciation ($10,793,197) This adjustment excludes the internalservice funds and should be subtracted from the governmental expenditures.

Internal service funds are used by management to charge the costs of copier rentaland the district print shop to the individual governmental funds. The net amountfrom the internal service funds to be assigned to programs is included in thestatement of activities and is added to the governmental expenditures (includes atransfer from the General Fund of $443,942).

The change in compensated absences is not recognized as an expense in the fund financial statements but is recognized in the statement of activities. This amountis added to the governmental expenditures.

When the purchase of capital assets is financed through the governmental funds,the resources expended for those assets are reported as expenditures in the yearsthey are incurred. However, in the statement of activities, the costs of thoseassets are allocated over their estimated useful lives and reported as depreciation


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Explanation of Certain Differences between the Proprietary Fund Statement of Net Assets and the Government-wide Statement of Net Assets

The proprietary fund’s statement of net assets includes a reconciliation between total net assets for enterprise funds and net assets for business-type activities, as reported in the government-wide statement of net assets. The single element of that reconciliation is an “Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.” The details of this difference are as follows:

(104,996)$

(7,053)

(112,049)$

Internal receivable representing cumulative charges in excess of cost tobusiness-type activities - prior years

Internal receivable representing charges in excess of cost to business-typeactivities - current year

Net adjustment to increase net assets - total enterprise fund to arrive at netassets - business-type activities

Internal Service Funds Consolidation into Government-wide Statements The basic assumption underlying the elimination of internal service funds’ activities is that the change in net assets of these funds should be allocated to the government-wide functions that utilize the services provided. State equalization revenue, interest earnings, and transfers are excluded from the elimination. The adjustments for state equalization revenue, interest earnings, and transfers resulted in a negative elimination amount overall. Negative elimination amounts increase program expenses in the government-wide statements, while positive amounts decrease program expenses. The table below demonstrates the “look back” method of allocating the internal service funds to the various functions.

Copier Services

Print Services

Total-Internal Service Funds

Change in net assets 15,730$ 9,136$ 24,866$ Trans fers (in) - (443,942) (443,942) Net am ount ass igned to program s 15,730$ (434,806)$ (419,076)$

Program s/functionsIns truction 91% 14,243$ 43% (186,922)$ (172,679)$ Pupil support 1% 129 14% (61,767) (61,638) Ins tructional s taff support 2% 293 3% (14,054) (13,761) General adm inis tration 2% 382 11% (49,204) (48,822) School adm inis tration 1% 98 7% (28,592) (28,494) Bus iness adm inis tration 1% 183 8% (35,735) (35,552) Operations & m aintenance 1% 148 6% (26,311) (26,163) Transportation 0% 39 0% (2,015) (1,976) Personnel/risk/data services 1% 152 5% (20,644) (20,492) Other support services 0% 9 1% (2,455) (2,446) Nutrition Services Fund 0% 54 2% (7,107) (7,053)

Total 100% 15,730$ 100% (434,806)$ (419,076)$


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NOTE 3: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Encumbrances Outstanding encumbrances represent a commitment for the estimated amount of expenditures, which could ultimately result from the fulfillment of uncompleted purchase orders and contracts. Encumbrances lapse at the end of each fiscal year. Lapsed encumbrances are then reviewed by department supervisors to determine which will remain canceled and which will be reinstated and paid from the subsequent year's appropriations. Encumbrances are not considered expenditures until an actual liability is incurred. Legal Compliance - Article X, Section 20 of the Colorado Constitution (the 1992 Taxpayers’ Bill of Rights Amendment) To comply with the TABOR amendment, the district has budgeted and continues to report an emergency reserve. Recognition of this year's reserve of $8,036,009 is shown as reserved fund balance in the General Fund. Using a combination of cash reserves and fund balance reserves, the district’s charter schools recorded $492,565 in TABOR reserves related to their operations. One charter school, AXL Charter School, did not have sufficient fund balances to comply with the emergency reserve requirement. To ensure compliance with state statute, the district’s fund balance has been reserved on their behalf. The following table summarizes the calculation of this year's three percent emergency reserve mandated by the TABOR amendment, as recorded, for the district and its charter schools.

TABOR Fund Balance Reserve for Emergencies

$464,867,418

General 88,555 Grants 24,360,099 Nutrition Services 8,615,275 Building 134,286,770 Bond Redemption 28,062,094 Internal Service 1,184,004 Other 20,044

Total excludable expenditures 196,616,841

Expenditures subject to TABOR 268,250,577 TABOR reserve percentage 3%Amount reserved for emergencies:

District 8,047,517$ Reserved by district due to charter school deficit 28,759 Component units - reserved by charter schools -

governmental fund basis:Cash reserves 138,724 Fund balance reserves 353,841 Total amount reserved for emergencies 8,568,841$

Qualifying expenditures, all district fundsLess excludable expenditures by fund:

Another restriction within the TABOR amendment addresses long-term or multi-year leases, which precludes the district from entering into capital leases. District management carefully considers any such arrangements to prevent any noncompliance with this amendment. Since passage of the TABOR amendment, long-term agreements are structured through escrow arrangements and annual agreements. The amendment is subject to judicial interpretation; however, district management believes it is within compliance with these limitations.

In the November 2001 general election, voters approved an exemption from TABOR revenue and spending limitations for the district.

staff

Rectangle


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Subsequent Year Expenditures Budgets for the fiscal year 2009-10 were approved by the board of education on June 16, 2009. Some governmental funds have budgeted expenditures in excess of budgeted revenues. It is the intent of the district to utilize the ending fund balances from fiscal year 2008-09 to provide for the excess expenditures. Of significance is the Building Fund, funded by the sale of general obligation bonds in 2006 and 2008. In fiscal year 2009-10, Building Fund budgeted expenditures exceeded estimated revenues by $60,950,000. These funds are included in reserved fund balances that are reserved specifically for capital projects and improvements of district facilities. Excess of Expenditures Over Appropriations Building Fund expenditures in fiscal year 2008-09 exceeded board-approved appropriations by $2,538,075. Compliance with state statute requires that expenditures not exceed board-approved appropriations, as referenced on page 107. Unappropriated fund balance funded these expenditures. NOTE 4: DEPOSITS AND INVESTMENTS

Cash, Cash Equivalents and Investments The district’s cash, cash equivalents and investments at June 30, 2009, are classified below. Unspent proceeds of the 2006 and 2008 general obligation bonds in the Building Fund and the cash balance in the Bond Redemption Fund are restricted cash on the basic financial statements.

Unrestricted RestrictedFiduciary

Funds TotalComponent

UnitsCash, cash equivalents and Investments:

Governmental activities 41,467,000$ 166,779,940$ -$ 208,246,940$ 2,996,981$ Cash with fiscal agent - 4,367,764 - 4,367,764 - Cash on hand 11,385 - - 11,385 500 Business-type activities 534,010 - - 534,010 8,047 Fiduciary funds - - 820,939 820,939 -

Total 42,012,395$ 171,147,704$ 820,939$ 213,981,038$ 3,005,528$

Primary Government

Component unit amounts in the table above include restricted cash and cash of the foundation. Deposits The Colorado General Assembly passed the Public Deposit Protection Act in 1975. The purpose of the PDPA is to protect all public funds held on deposit in financial institutions. In the event eligible banks or savings and loan institutions default, statutes provide for the expedited repayment of public deposits not covered by the Federal Deposit Insurance Corporation. The district maintains all cash deposits in PDPA eligible financial institutions. The district’s cash deposits had a carrying amount of $213,969,653 and a corresponding bank balance of $207,447,111. Of the checking, money market, escrow and trust bank balances, $207,197,111 was uninsured but collateralized in accordance with provisions of the PDPA. The certificates of deposit vary in maturity from six to thirty-seven months with term interest rates from 1.29 to 3.34 percent.


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Reconciliation of Deposits to Cash, Cash Equivalents and InvestmentsPrimary Government and Fiduciary FundsDescriptionChecking, money market, escrow and trust accounts $ 211,219,653 $ 204,697,111 Certificates of deposit:

Maturities of one year or less 1,450,000 1,450,000 Maturities greater than one year 1,300,000 1,300,000

Total deposits 213,969,653 207,447,111 Cash on hand 11,385 - Total cash, cash equivalents and investments $ 213,981,038 $ 207,447,111

Discretely Presented Component Units

Checking and money market accounts - deposits $ 1,664,698 1,214,798 Total checking and money market accounts - deposits 1,664,698 1,214,798 Cash on hand 500 - Total cash, cash equivalents and investments $ 1,665,198 $ 1,214,798

Carrying Amount Bank Balance

Charter Schools and Aurora Public Schools Education Foundation

The Colotrust accounts and the U.S. Bank daily investment sweep account, which are comprised of the district’s checking and money market accounts, earn variable interest rates that are subject to change due to market conditions. The district’s certificates of deposit earn a fixed interest rate when held to maturity. Component unit amounts shown above include restricted cash and foundations. Investments The district’s investment policy requires all investments to comply with federal, state and local statutes governing the investment of public funds. Other than interest-bearing deposits described above, the district did not maintain any other investments throughout the year ending June 30, 2009. Investment balances for the charter schools are shown below:

Discretely Presented Component UnitsInvestment balances for charter schools:

Fair Value Credit Rating Rating AgencyShort term investments reported as

cash and cash equivalentsCSAFE 619,743$ AAA Standard & Poor'sColotrust 30,417 AAA Standard & Poor'sMoney market fund 100,248 AAA Standard & Poor'sFederal National Mortgage Association 589,922 Not rated

Total investment accounts 1,340,330$ Overall credit risk is the chance that an issuer of an investment will not fulfill its obligations. To minimize overall credit risk, state law and district policies require that the district limit its investments to issuers which have received one of the three highest rating categories by one or more nationally recognized organizations that rate such issuers. The district has deposits in four Colotrust accounts which are invested in overnight investment accounts. Colotrust is rated AAA by Standard & Poor’s, Fitch and Moody’s. The daily operating investment sweep account is managed by U.S. Bank. U.S. Bank maintains an A-1+ rating by Standard & Poor’s. CSAFE is rated AAA by Standard & Poor’s.


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The concentration of credit risk, or the risk of loss attributed to the magnitude of a government’s investment in a single issuer, occurs when deposits are not diversified. District policy places no limit on the amount the district may invest in any one issuer. District investments are issued or explicitly guaranteed by securities of the U.S. government, or are investments in mutual funds or external investment pools, and therefore are not subject to concentration of credit risk disclosure requirements.

Interest rate risk is the extent to which changes in interest rates will adversely affect the fair value of an investment. The district does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The district is not currently maintaining investments subject to interest rate risk. NOTE 5: RECEIVABLES, PAYABLES AND INTERFUND TRANSACTIONS Receivables Receivables for the district’s individual major funds, nonmajor funds and proprietary funds, including allowances for uncollectible accounts and interfund receivables, are as follows:

Interfund Transactions Transfers are used to move unrestricted revenues from the fund that collects them to specific programs accounted for in other funds in accordance with budget authorizations. Transfers out are treated as contra-revenues for the purposes of budget-to-actual comparisons. Transfers processed during the fiscal year ended June 30, 2009, were as follows:

GeneralBond

Redemption Grants BuildingNonmajor

Governmental

Total Governmental

FundsReceivables:

Property taxes, paid w ithin 60 days of year end 3,233,042$ 923,992$ -$ -$ -$ 4,157,034$ Reimbursements for federal and state grants - - 2,834,829 - - 2,834,829 Property taxes, due w ithin one year 2,152,939 846,824 - - - 2,999,763 Accounts 110,152 - - 29,997 45,203 185,352 Gross receivables 5,496,133 1,770,816 2,834,829 29,997 45,203 10,176,978 Less allow ance for uncollectables (358,614) (140,640) - - - (499,254) Net total receivables 5,137,519$ 1,630,176$ 2,834,829$ 29,997$ 45,203$ 9,677,724$

EnterpriseInternal Service Total

Grants 299,607$ -$ 299,607$ Accounts 6,346 6 6,352 Net total receivables 305,953$ 6$ 305,959$

Governmental Funds

Proprietary Funds


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Transfer out: Grants Fund

Nonmajor Governmental

Funds

Print Services Internal Service

Fund Total

General Fund 44,354$ 969,205$ 443,942$ 1,457,501$

Total 44,354$ 969,205$ 443,942$ 1,457,501$

Transfer In

NOTE 6: CAPITAL ASSETS A summary of the changes in capital assets during the fiscal year ended June 30, 2009, follows:

Balance BalanceJuly 1, 2008 Additions Deletions Transfers June 30, 2009

Governm ental activities:Capital assets, not being depreciated:

Land 18,661,100$ 609,400$ -$ -$ 19,270,500$ Construction in progress 15,614,710 22,184,191 - (23,630,800) 14,168,101 Total capital assets, not being depreciated 34,275,810 22,793,591 - (23,630,800) 33,438,601

Capital assets, being depreciated:Buildings and site improvements 388,896,972 - (2,140,424) 23,630,800 410,387,348 Equipment and vehicles - Internal Service Funds 802,891 9,371 (37,654) - 774,608 Equipment, softw are and vehicles 20,906,117 1,106,051 (467,406) - 21,544,762 Total capital assets, being depreciated 410,605,980 1,115,422 (2,645,484) 23,630,800 432,706,718

Less accumulated depreciation for:Building and site improvements (175,214,165) (11,563,660) 2,140,424 - (184,637,401) Equipment and vehicles - Internal Service Funds (514,264) (101,880) 37,654 - (578,490) Equipment, softw are and vehicles (16,523,603) (1,824,583) 454,622 - (17,893,564) Total accumulated depreciation (192,252,032) (13,490,123) 2,632,700 - (203,109,455)

Total capital assets, being depreciated, net 218,353,948 (12,374,701) (12,784) 23,630,800 229,597,263

Governmental activities capital assets, net 252,629,758$ 10,418,890$ (12,784)$ -$ 263,035,864$


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Business-type activity--Nutrition Services:Capital assets, not being depreciated:

Construction in progress 77,255$ 28,363$ -$ (52,139)$ 53,479$ Total capital assets, not being depreciated 77,255 28,363 - (52,139) 53,479

Capital assets, being depreciated:Buildings and site improvements 4,200,933 - - 52,139 4,253,072 Machinery and equipment 1,593,222 81,954 (16,388) - 1,658,788 Total capital assets, being depreciated 5,794,155 81,954 (16,388) 52,139 5,911,860

Less accumulated depreciation for:Building and site improvements (937,132) (280,246) - (1,217,378) Machinery and equipment (1,130,532) (149,725) 13,754 - (1,266,503) Total accumulated depreciation (2,067,664) (429,971) 13,754 - (2,483,881)

Total capital assets, being depreciated, net 3,726,491 (348,017) (2,634) 52,139 3,427,979

Business-type activity capital assets, net 3,803,746$ (319,654)$ (2,634)$ -$ 3,481,458$

Depreciation expense w as charged to functions/programs of the primary government as follow s:Governmental activities:

Instruction 10,712,444$ Instructional staff support 401,652 General administration 81,604 Business administration 243,247 Operations & maintenance 448,015 Transportation 1,000,548 Personnel/data services/risk management 465,061 Other support services 35,672 Capital assets held by the district's internal service funds 101,880

Total depreciation expense - governmental activities 13,490,123$ Business-type activity: Nutrition services 429,971$ Total depreciation expense - business-type activity 429,971$


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Discretely presented component units:Capital assets, not being depreciated:

Land 900,820$ -$ -$ -$ 900,820$ Construction in progress - 131,788 - - 131,788 Total capital assets, not being depreciated 900,820 131,788 - - 1,032,608

Capital assets, being depreciated:Buildings and site improvements 12,614,731 1,058,662 - - 13,673,393 Machinery and equipment 127,237 196,228 323,465 Total capital assets, being depreciated 12,741,968 1,254,890 - - 13,996,858

Less accumulated depreciation (755,576) (453,604) - - (1,209,180) Total capital assets, net 12,887,212$ 933,074$ -$ -$ 13,820,286$

NOTE 7: NONCURRENT LIABILITIES General Obligation Bonds The district issues bonds to finance construction, renovation, and repair of schools and support site facilities. When market and interest rates are favorable, the district may refinance outstanding debt with new debt to reduce interest payments or restructure the debt service requirement of the Bond Redemption Fund. The bonds are serviced from property tax revenues. As of June 30, 2009, total general obligation bonds outstanding are $336,955,000, total unamortized premium is $14,664,070, and total deferred charges for issuance costs is $3,832,038. Management of the district believes it has complied with all significant financial bond covenants regarding its original bond issues and refunding bond issues. In general, bond covenants for each of the following issues include:

• The district will not take any action or omit to take any action that jeopardizes the federal and

state tax-free status of the bonds or bond coupons to the bondholder. • The district will provide annual financial information to each bond repository.

• The district will prepare and file an annual budget and annual financial report with the

appropriate state agency.

• The district will comply with the continuing disclosure certificate which will be executed by the officers of the district in connection with the delivery of the bonds.

Material Events Disclosure for Municipal Secondary Market Disclosure As a result of recent downgrades of the ratings of bond insurers by credit rating agencies, long term credit ratings of the outstanding insured issues of the district have been downgraded as shown below. On February 18, 2009, MBIA Insurance Corp. transferred its public finance insurance business to MBIA Insurance Corp. of Illinois, which subsequently changed its name to National Public Financial Guarantee Corp "NPFGC". Accordingly, as of February 18, 2009, bonds rated by MBIA reflect the ratings of National Public Finance Guarantee Corp.


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Issue CUSIP Insurer From To From To

General Obligation Bonds, Series 2006

005482 National Public Financial Guarantee Corp., formerly MBIA

AA A A2 Baa1

General Obligation Refunding Bonds, Series 2004


AAA AAA Aaa Aa3

General Obligation Bonds, Series 2003A


AAA AAA Aaa Aa3

(1) Financial Security Assurance, Inc., maintains the AAA rating by Standard & Poor’s, as of June 30, 2009, but has been downgraded by Moody's.

Standard & Poor's Moody'sRating Change Rating Change

A description of each issue follows.

• In November 2002 the voters approved a referendum authorizing a total debt amount of

$225,000,000. In March 2003, the 2003A Series General Obligation Bonds were issued with a face value of $150,000,000. Current outstanding principal balance is $116,755,000. The bonds were sold at a premium of $10,916,666 (net of issuance fees and discounts totaling $1,442,058). These bonds started maturing on December 1, 2003, and will continue to mature through December 1, 2022. Interest is payable at rates from 3.25 percent to 5.25 percent. Annual payments for principal and interest range from $2,696,700 to $15,808,388.

• On June 29, 2004, the district issued $36,785,000 in 2004 Series General Obligation

Refunding Bonds. Current outstanding balance is $12,515,000. The bonds were sold at a premium of $2,922,220 (net of issuance fees and discounts totaling $3,756,419). These bonds started maturing on December 1, 2004, and will continue to mature through December 1, 2011. Interest rates range from 5 percent to 5.25 percent. Annual payments for principal and interest range from $6,065,138 to $7,087,775.

• On February 9, 2006, the district issued the remaining amount of debt approved by the

November 2002 referendum. The 2006A Series General Obligation Bonds were sold with a face value of $75,000,000 and a premium of $6,207,900 (net issuance fees and discounts totaling $632,175). Current outstanding balance is $75,000,000. These bonds will begin maturing on December 1, 2011, with the final principal payment due on December 1, 2025. Interest rates range from 4 percent to 5.25 percent. Annual payments for principal and interest range from $3,029,238 to $17,094,488. Estimated arbitrage liability as of June 30, 2009 is $682,687. The final arbitrage liability report will be calculated as of February 2011, when the total amount of interest earnings will be available.

• In November 2008, the voters approved a referendum authorizing a total debt amount of

$215,000,000. In December 2008, the 2008 Series General Obligation Bonds were issued with a face value of $132,685,000. Current outstanding principal balance is $132,685,000. The bonds were sold at a premium of $1,076,700 (net of issuance fees and discounts totaling $821,888). Maturity dates begin December 1, 2009, and will continue through December 1, 2028. Interest rates range from 3.25 percent to 6.25 percent. Annual payments for principal and interest range from $568,200 to $26,607,113.


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Lease Obligation The district entered into a capital lease agreement for five school buses. The buses, which cost approximately $383,600 have accumulated depreciation of approximately $77,000. Amortization of the capital lease is included in depreciation. Payments are made from the Capital Reserve Fund. Debt service requirements for the district’s capital lease are presented below:

Fiscal Year Principal Interest Total2010 70,430$ 12,850$ 83,280$ 2011 73,443 9,837 83,2802012 76,585 6,694 83,2792013 79,862 3,417 83,279

300,320$ 32,798$ 333,118$

General Obligation Bonds—Discretely Presented Component Unit—Aurora Academy In order to execute the Academy’s building purchase, gym addition, and building renovation, bonds were issued through CECFA (Colorado Educational and Cultural Facilities Authority), and the monies were in turn lent to the Aurora Academy Building Corporation as landlord to Aurora Academy Charter School, the tenant.

Total bonds payable as of June 30, 2009, is $6,725,000. Bonds were issued at a premium, resulting in a bond premium liability of $192,235 after current amortization of $7,773 at June 30, 2009. Bond issuance costs have been capitalized and included as an asset as of June 30, 2009, with a balance of $244,260 after amortization of $9,877 for 2009. These bonds started maturing on February 15, 2006 and will continue to mature through February 15, 2034. Interest rates range from 2.63 percent to 5.38 percent. Annual payments for principal, interest, and fees range from $487,827 to $2,440,333.

A bond reserve fund was also established and funded with a $494,675 deposit, in accordance with debt covenants. A repair and replacement reserve was required to be established during fiscal year 2005-06. The agreement calls for deposits of $25,000 per year until the account reaches $200,000. As of June 30, 2009, the bond reserve fund and the repair and replacement fund had balances of $493,523 and $62,970, respectively.

The Academy began its new lease with the Aurora Academy Building Corporation on September 15, 2004. Long-term debt activity for the year ended June 30, 2009, was as follows: Bonds Payable--Aurora Academy

July 1, 2008 Additions Reductions June 30, 2009Due within one year

Bond payable 6,870,000$ -$ 145,000$ 6,725,000$ 140,000$ Plus deferred premium 200,008 - 7,773 192,235 -

7,070,008$ -$ 152,773$ 6,917,235$ 140,000$


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The debt payments under the bonds are as follows:

Year Principal Interest and fees Total payment2010 140,000$ 348,268$ 488,268$ 2011 145,000 343,137 488,137 2012 150,000 337,827 487,827 2013 160,000 332,247 492,247 2014 165,000 324,851 489,851 2015-2019 965,000 1,475,333 2,440,333 2020-2024 1,255,000 1,177,134 2,432,134 2025-2029 1,630,000 792,335 2,422,335 2030-2034 2,115,000 294,919 2,409,919

Totals 6,725,000$ 5,426,051$ 12,151,051$

Notes Payable—Discretely Presented Component Unit—AXL Charter School AXL Building Corporation, an entity for which AXL Charter School is considered to be financially accountable, obtained financing to fund the cost of leasehold improvements on a leased facility used by the school. The building corporation has entered into an operating lease arrangement with the school for the leasing of the building. The building corporation is reported as an internal service fund (Building Fund) blended component unit on the AXL’s financial statements. Interest rates range from 4.99 percent to 10.0 percent compounded annually. As of June 30, 2009, long-term debt consisted of notes payable and mortgages payable as follows: AXL Notes Payable

Notes Payable July 1, 2008 Additions Reductions June 30, 2009Due within one year

Self Help Credit Union 21,603$ 321,472$ 10,262$ 332,813$ $ 25,981 Preferred Properties, Ltd. 17,900 659,530 44,932 632,498 48,904 Konrath - 72,400 10,000 62,400 62,400

39,503$ 1,053,402$ 65,194$ 1,027,711$ 137,285$

Principal and interest payments under the notes and mortgages are as follows: Notes Payable- AXL Charter School

Fiscal year Principal Interest Total payment2010 137,285$ 75,163$ 212,448$ 2011 360,058 49,392 409,450 2012 57,931 42,859 100,790 2013 63,052 37,738 100,790 2014 68,625 32,165 100,790 2015 340,760 62,400 403,160

1,027,711$ 299,717$ 1,327,428$

staff

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Notes Payable—Discretely Presented Component Unit—Lotus School for Excellence The Lotus School for Excellence Foundation, an entity for which the Lotus School for Excellence is considered to be financially accountable, obtained financing for and acquired the land and building used by the school. The foundation has entered into an operating lease arrangement with the school for the leasing of the building. The foundation is reported as an internal service fund (Building Fund) blended component unit on the school’s financial statements. Interest rates range from 4.99 percent to 9.60 percent compounded annually. As of June 30, 2009, long-term debt consisted of notes payable from related parties and mortgages payable as follows:

Lotus School for Excellence Notes Payable

Notes Payable July 1, 2008 Additions Reductions June 30, 2009Due within one year

From related parties toschool 337,974$ -$ 23,145$ 314,829$ 47,284$

Lotus School for Excellence Foundation Mortgages Payable

Mortgages payable 6,411,110$ -$ 180,000$ 6,231,110$ 271,377$

Principal and interest payments under the notes and mortgages are as follows: Notes Payable- Lotus School for Excellence

Fiscal year Principal Interest Total payment2010 47,284$ 25,733$ 73,017$ 2011 65,195 20,776 85,971 2012 70,895 15,076 85,971 2013 58,352 9,259 67,611 2014 53,988 4,440 58,428 2015 19,115 365 19,480

314,829$ 75,649$ 390,478$

The above related party notes were obtained to fund cash flow deficits resulting from rental costs and the cost of leasehold improvements on a leased facility and costs incurred to occupy a newly leased facility in the first two years of operation. All related party notes are unsecured and payable to board members or former board members. Interest rates range from 4.99 percent to 9.6 percent, compounded annually. Maturity dates for the notes range from August 30, 2009 through October 31, 2014. Mortgages Payable – Lotus School for Excellence Foundation The foundation has two mortgages payable outstanding as of June 30, 2009. Maturity dates for the mortgages are July 1, 2013 and July 31, 2013. The interest rate is 5.62 percent through September 1, 2011 at which time the interest rate for the loan shall be adjusted to then-current interest rate for USD Swap Rate transactions with 2-year constant maturity plus 3.45%. The above maturity schedule was prepared assuming a fixed interest rate of 5.62% for the life of the debt, as this was the rate in effect at June 30, 2009.

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Fiscal year Principal Interest Total payment2010 271,377$ 276,922$ 548,299$ 2011 276,721 271,578 548,299 2012 281,643 266,656 548,299 2013 288,324 259,975 548,299 2014 5,113,045 21,089 5,134,134

6,231,110$ 1,096,220$ 7,327,330$

Compensated Absences In accordance with GASB Statement No. 16, Accounting for Compensated Absences, the district has recorded the accrued liability for compensated absences in the accompanying basic financial statements. Compensated absences total $8,633,721.The following table summarizes total liabilities and current year activity for compensated absences, including $193,298 recorded in the business-type activity fund, and $8,440,423 recorded in the government-wide statements. Per GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements, the amount of $215,002 recorded in the General Fund in the governmental statements represents the mature portion of total compensated absences liabilities.

Balance BalanceJuly 1, 2008 Additions Deletions June 30, 2009

Unpaid vacation 2,536,243$ 472,977$ 240,240$ 2,768,980$ Unpaid sick leave 5,833,240 876,520 1,038,317 5,671,443

8,369,483 1,349,497 1,278,557 8,440,423

Unpaid vacation 49,005 6,908 3,263 52,650 Unpaid sick leave 128,050 19,917 7,319 140,648

177,055 26,825 10,582 193,298 8,546,538$ 1,376,322$ 1,289,139$ 8,633,721$ Total compensated absences

Amounts Reported In:Governmental activities:

Reported in governmental activities

Business-type activity:

Reported in business-type activity

Summary of Debt Service Requirements to Maturity The following schedule reflects the debt service requirements of the district's long-term debt, except for capital leases. The long-term debt and capital leases are included in the governmental activities, as of June 30, 2009:

DateGeneral

Obligation Debt Total Principal Total Interest Total2010 10,050,000$ 10,050,000$ 17,200,106$ 27,250,106$ 2011 11,510,000 11,510,000 16,714,375 28,224,375 2012 12,030,000 12,030,000 16,220,119 28,250,119 2013 12,495,000 12,495,000 15,715,613 28,210,613 2014 13,035,000 13,035,000 15,180,525 28,215,525 2015 - 2019 74,655,000 74,655,000 65,918,050 140,573,050 2020 - 2024 95,875,000 95,875,000 44,027,406 139,902,406 2025 - 2028 107,305,000 107,305,000 15,203,356 122,508,356

Total 336,955,000$ 336,955,000$ 206,179,550$ 543,134,550$


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Changes in Noncurrent Liabilities Noncurrent liability activity for the year ended June 30, 2009, was as follows:

DueBalance Balance Within

Issue July 1, 2008 Additions Deletions June 30, 2009 One Year

2003A General obligation bonds 119,120,000$ -$ 2,365,000 116,755,000$ 2,435,000$ 2004 Series refunding bonds 18,805,000 - 6,290,000 12,515,000 6,605,000 2006 General obligation bonds 75,000,000 - - 75,000,000 - 2008 General obligation bonds - 132,685,000 - 132,685,000 1,010,000 Premiums/discounts on GO debt 14,829,625 1,076,700 1,242,255 14,664,070 1,272,736 Capital lease - 383,600 83,280 300,320 70,430 Total general obligation bonds 227,754,625 134,145,300 9,980,535 351,919,390 11,393,166

Compensated absences:Business-type activity 177,055 26,027 9,784 193,298 5,026 Internal service funds 62,832 5,405 4,734 63,503 1,651 Governmental funds 8,306,650 1,344,092 1,273,822 8,376,920 901,876 Total compensated absences 8,546,537 1,375,524 1,288,340 8,633,721 908,553

Total changes in noncurrent liabilities 236,301,162$ 135,520,824$ 11,268,875$ 360,553,111$ 12,301,719$

In the statement of net assets, the district recorded $351,619,070 for general obligation bonds, which includes premiums of $14,664,070. The district is also contingently liable for the payment of refunded bond issues. See the note on Commitments and Contingencies for more information. Computation of Legal Debt Margin Per §22-42-104, C.R.S., outstanding bonded debt is limited to 20 percent of the latest gross assessed valuation for taxable property within the district. General obligation bonds payable represent 18.0 percent of the total assessed valuation. The district's legal debt margin of $38,418,118 represents 2.0 percent of total assessed valuation. The percentages and amounts used in the calculation below are based on the December 2008 assessed value and the June 2009 outstanding general obligation bonds payable.

NOTE 8: SHORT-TERM DEBT To meet short-term General Fund cash flow needs, the district participates in the state of Colorado Interest-Free Loan Program. Four draws were made on loan, the first on October 27, 2008, and the final draw made on December 17, 2008. The final payment was made on March 26, 2009. Short-term debt activity relating to this program for the year ended June 30, 2009, was as follows:

Percentage of Assessed

Debt Limit Factors Assessed Valuation

Valuation - Adams County 590,073,990$ Valuation - Arapahoe County 1,286,791,600

Total valuation 1,876,865,590$ Apply percentage 20.0%Legal debt limit 375,373,118 20.0%Less general obligation bonds payable 336,955,000 18.0%Debt margin 38,418,118$ 2.0%


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Beginning EndingBalance Balance

July 1, 2008 Draws Payments June 30, 2009

-$ 27,309,395$ 27,309,395$ -$

NOTE 9: RISK MANAGEMENT The district is exposed to various risks of loss such as theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by a combination of risk retention programs, purchased insurance coverages from independent carriers, and by participating in two risk pools. Property and casualty losses, claims and purchased insurance protection are accounted for in the district’s General Fund. Settled claims from these risks have not exceeded commercial coverage for each of the past three fiscal years, nor have there been any reductions in coverage. Workers’ compensation claims and excess-loss casualty losses are processed through separate risk pools.

The Colorado Governmental Immunity Act establishes limits for claims made against governmental entities. These limits are $150,000 per injury or $600,000 per occurrence. Self-insurance Programs and Purchased Insurance Coverages The district self-insures the first $25,000 of each property loss/claim and purchases insurance for any additional property loss/claim up to $566,807,224. The district self-insures the first $150,000 of each liability loss/claim and purchases insurance for the next $5,000,000 of each loss/claim. Provision for estimated insurance claims incurred but not reported includes components for each type of coverage in effect. (See note 10) Joint School District Workers’ Compensation Insurance Pool and Excess-of-Loss Self-Insurance Pool Formed in 1986, the purpose of JSD is to control costs related to workers’ compensation incidents. JSD is managed by an independent manager chosen by the pool’s board of directors. Board membership consists of one member from each of four participating school districts. Each member’s initial contribution and subsequent share of expenses and contributions is based on JSD’s and respective member’s payroll, projected losses, standard premiums, experience modifications, and other variable expenses as estimated by JSD management and approved by the JSD board. The district’s share of expenses is reported in the district’s basic financial statements. JSD has no current or long-term debt obligations. The June 30, 2009, financial statements of the JSD reported actuarial projections of ultimate pool losses on reported claims and of claims incurred but not reported. The projections are based on a composite of the various member school districts' experience prior to forming the pool, JSD's experience, and workers' compensation insurance industry data to supplement JSD's experience. While the best estimate for settling all JSD claims as of June 30, 2009, and 2008, was $6,495,861 and $5,883,755, respectively, the actual cost of settling all claims may be more or less than the reserve for losses and loss adjustment expenses including the effects of inflation and other societal and economic factors. JSD has assets valued at $10,570,952 as of June 30, 2009, to cover these claims. The district’s portion of JSD's estimated claims totals $1,891,867. This amount is recorded in the financial records of the JSD. Requests for JSD financial statements can be sent to Beecher Carlson, 1655 Lafayette Street, Suite 200, Denver, Colorado, 80218.


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ELSIP was formed in 1990 in order to secure quality, cost-effective excess-of-loss reinsurance for its members. Participating districts are responsible for paying their losses within a $150,000 self-insured retention limit and for paying their own reinsurance premiums. ELSIP is managed by an independent manager chosen by ELSIP’s board of directors. The board is comprised of one member from each of three participating districts. Each member’s initial and subsequent share of expenses is determined by its student enrollment, as approved by the board. The district’s investment in ELSIP’s capital assets is $163,641. ELSIP has no current or long-term debt. Requests for ELSIP financial statements can be sent to Beecher Carlson, 1655 Lafayette Street, Suite 200, Denver, Colorado, 80218.

NOTE 10: COMMITMENTS AND CONTINGENCIES

Operating Lease-Component Units Aurora Academy Charter School The operating lease agreement between the Academy and its building corporation is an annual lease with successive one-year renewal terms, subject to cancellation at the discretion of the Academy. Total lease expense to the Academy was $475,842 in 2009. AXL Charter School AXL Charter School’s Building Fund entered into a ten year operating lease with its building corporation for its school facilities fiscal year 2009. The lease expires on June 30, 2018. The lease calls for monthly payments which will approximate $90,324 annually. Total lease expense to AXL Charter School was $251,575 recorded on a straight-line basis according to GAAP. Refer to the table below for future minimum lease payment information. Global Village Academy Global Village entered into a ten year operating lease with East Tech Center, LLC, for the use of their classroom and office facilities. The lease expires on July 31, 2017. The school’s total lease expense for the fiscal year ended June 30, 2009 was $553,286. Refer to the table below for future minimum lease payment information. Lotus School for Excellence The school entered into a lease agreement with the foundation commencing on June 6, 2008, and expiring on June 30, 2013. The lease requires monthly payments, based on a daily rate. The total lease expense paid to the Foundation was $357,017 for fiscal year 2009. The school has subleased a portion of the building to Aurora First Assembly. The total lease revenue received by the general fund was $459,996 for fiscal year 2009. Future lease revenues under this sublease will be $459,996 annually through fiscal year 2010. The general fund also receives income from periodic facility rentals. The total of these revenues for fiscal year 2009 was $17,184. New America School The school began leasing its office and school facilities in July 2005 under an operating lease that expired on June 30, 2009. This operating lease was renewed extending the lease to June 30, 2010. Total expenditures related to the facility lease were $356,645 for the year ended June 30, 2009. The school also leases two copiers under operating leases. Total lease expenditures related to the copiers were $24,928 for the year ended June 30, 2009. Refer to the table below for future minimum lease payment information.


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Vanguard Classical School The school began leasing its office and school facilities in July 2007 under an operating lease with Cerebral Palsy of Colorado, Inc. The lease expires on June 30, 2010. Total lease expenditures for the fiscal year ended June 30, 2009 were $580,588. Refer to the table below for future minimum lease payment information. Future Minimum Lease Payments

Fiscal year AXL Charter

School Global Village

Academy

Lotus School for Excellence

New America

Vanguard Classical School Total

2010 135,486$ 483,560$ 9,229$ 377,475$ 404,839$ 1,410,589$ 2011 196,139 496,760 9,229 20,364 - 722,492 2012 196,139 510,400 5,259 15,432 - 727,230 2013 272,537 524,480 4,898 15,432 - 817,347

2014-2018 2,311,804 2,296,287 - - - 4,608,091

Total 3,112,105$ 4,311,487$ 28,615$ 428,703$ 404,839$ 8,285,749$

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Construction Commitments As of June 30, 2009, the district had various commitments for the acquisition and construction of capital projects. Resources in the Building Fund Capital Projects Fund are reserved for construction commitments. The following table provides a detail of significant commitments:

Project Description Project to Date Expenditures

Commitments at June 30, 2009

Sixth & Harvest: P-20 Campus - Infrastructure 10,287,721$ 16,786,699$ Rangeview High School Kitchen Remodel & Renewal 1,640,855 756,331 Gateway High School-HVAC & Mech Repairs, Roof Repairs 422,303 519,862 Laredo Elementary School-Gym Addition & Renewal 655,086 502,412 Wheeling Elementary School-Gym Addition & Renewal 631,383 306,226 Whole Building Remodel Hinkley 29,883,203 89,132 Jewell Elementary School-Building Renewal 53,152 83,740 Dartmouth Elementary School-Building Renewal 38,900 56,659 Support Sites 6,306,521 50,885 Crawford Elementary School-Building Renewal 38,460 50,000 Kenton Elementary School-Building Renewal 26,709 44,702 Arkansas Elementary School-Building Renewal 54,023 43,837 Aurora Quest K-8 New Building 17,251,751 38,013 Lyn Knoll Elementary School-Domestic Water Replacement 24,718 35,679 Boston Replacement School 10,158,071 28,844 Tollgate Elementary School-Building Renewal 22,101 27,201 Clyde Miller Elementary School-Building Renewal 52,801 26,735 Vassar Elementary School-Building Renewal 83,972 20,346 Murphy Creek K8-Building Renewal 9,009 16,047 Building Renewal Administration & Contingency 5,263 13,381 Transitions/Intercept New Building 2,888,414 12,868 Century Elementary School-Building Renewal 52,159 12,000 Aurora Frontier K8-Building Renewal 20,136 10,682 Applications Upgrades-District 311,904 9,950 Columbia Middle School-HVAC & Mech. Repairs, Renewal 28,021 8,706 Technology Equipment Renewal-District 89,727 7,958 Facilities Program Management 1 104,613 7,858 Aurora Hills Middle School-Whole Building Remodel 134,668 7,750 Whole Building Remodel West Middle School 17,871,811 7,301 Child Development Center Laredo-Building Renewal 5,771 7,071 Facilities Program Management 2 3,176,465 5,585 New High School Design Development 1,211,811 5,407 Central High School-Classroom Addn., Repairs, Renewal 625 3,250 LAN/WAN Infrastructure Upgrade 4,097,592 2,594 Tech Equipment Renewal 12,485,431 2,545 Proximity Card Entry Systems-Districtwide Improvements 3,666 1,850 Aurora Frontier New Building 12,370,388 1,441 All Other Projects 129,961,790 3,483

262,460,994$ 19,615,028$

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Refunded and Defeased Bonds At various dates in prior years, the district has placed proceeds from refunding bond issues and the district cash contributions in irrevocable refunding escrow accounts. The moneys deposited in the escrow accounts are invested in U.S. Treasury obligations that, together with interest earned thereon, would provide amounts sufficient for payment of all principal and interest on refunded bond issues and the refinanced capital lease obligation on each remaining payment date. The likelihood of the earnings and principal maturities of the U.S. Treasury obligations not being sufficient to pay the refunded obligations appears remote. The escrow accounts and the following refunded obligations are not included in the district's basic financial statements, even though the district is contingently liable for these amounts. The following table provides a detail of contingently liable amounts as of June 30, 2009:

Grants The district has received several federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead grantor agencies to request reimbursement for disallowed expenditures. District management believes disallowances, if any, would not materially affect the overall financial position or results of operations of the district. Litigation Certain lawsuits are presently pending against the district. The district and its legal counsel believe that any liability resulting from such lawsuits would not materially affect the overall financial position or results of operations of the district.

Insurance Claims Liabilities for retained risk claims are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering current outstanding claims and industry-published standards to project future loss development. Changes in the balances of claims liabilities during the past two fiscal years are as follows:

Outstanding principalbalance

Series 1996C General Obligation Bonds 8,760,000$ Series 2003A General Obligation Bonds 13,335,000 Series 2004 Refunding Bonds 10,280,000

32,375,000$

June 30, 2009 June 30, 2008

Unpaid claims, beginning of year 27,940$ 27,901$ Incurred claims, including changes in IBNR 224,080 46,109 Claim payments (23,241) (46,070) Unpaid claims, end of year 228,779$ 27,940$


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NOTE 11: DEFINED BENEFIT PENSION PLAN RETIREMENT PLAN Plan Description The district and its component units contribute to the School Division Trust Fund, a cost-sharing, multiple-employer defined benefit pension plan administered by the Public Employees’ Retirement Association of Colorado. The SDTF provides retirement and disability, post-retirement annual increases, and death benefits for members or their beneficiaries. All employees of the district are members of the SDTF. §24-51, C.R.S., 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 the SDTF. That report may be obtained by writing to:

Colorado PERA 1301 Pennsylvania Street Denver, CO 80203 Or by calling PERA at 303-832-9550 or 1-800-759-PERA (7372).

Basis of Accounting for the School Division Trust Fund The financial statements of the SDTF are prepared using the economic resources measurement focus and the accrual basis of accounting. Plan member contributions are recognized as revenues in the period in which compensation is paid to the member by the employer. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The SDTF’s investments are presented at fair value except for short-term investments, which are recorded at cost, which approximates fair value.

SDTF Funding Policy The district is required to contribute member and employer contributions to PERA at a rate set by statute. Members’ contribution rate during 2008-09 was 8 percent. The contribution requirements of plan members and the district are established under §24-51-401, C.R.S. District and component unit employer contributions are shown in the following table:

2008-09 2007-08 2006-07

Required Contribution Rate to SDTFJuly 1 to December 31 12.05% 10.65% 10.15%January 1 to June 30 12.95% 11.15% 10.65%

Contribution Amount to SDTFAurora Public Schools 23,540,838$ 22,599,477$ 18,887,846$

Contribution Amount as a Percentageof Required Employer Amount 100% 100% 100%

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NOTE 12: POSTEMPLOYMENT HEALTHCARE BENEFITS Plan Description The district contributes to the Health Care Trust Fund, a cost-sharing multiple-employer defined benefit post-employment healthcare plan administered by PERA. The HCTF provides a health care premium subsidy to participating PERA benefit recipients and their eligible beneficiaries who choose to enroll. §24-51-1204 through §24-51-1206, C.R.S. specifies the eligibility for enrollment and the amount of the premium subsidy. HCTF Funding Policy The district contribution requirements are established under §24-51-208, C.R.S. No member contributions are required. District employer contributions are shown in the following table:

2008-09 2007-08 2006-07

Required Contribution Rate to HCTFJuly 1 to June 30 1.02% 1.02% 1.02%

Contribution Amount to HCTFAurora Public Schools 1,919,822$ 1,880,844$ 1,616,967$

Contribution Amount as a Percentageof Required Employer Amount 100% 100% 100%

Defined Contribution Plans All active PERA members currently employed by a PERA affiliate may contribute to a voluntary investment program (in accordance with §24-51, Part 14, C.R.S.), an Internal Revenue Code Section 401(k) defined contribution plan administered by PERA. The district is a PERA affiliate, and all district employees are active PERA members. Changes to the PERA voluntary investment program must be approved by the Colorado state legislature. In addition, employees may contribute to a tax-sheltered annuity (in accordance with district policies and regulations), an Internal Revenue Code Section 403(b) defined contribution plan, administered by the district.

Deferred Compensation Plan Employees may participate in the state of Colorado’s 457(b) eligible deferred compensation benefit plan. The plan uses a third party administrator, and all costs of administration and funding are borne by the plan participants. The plan is subject to the Colorado State Deferred Compensation Program, as defined in §24-10-102, C.R.S., and its governing board. The state’s governing board has full authority to make changes to the plan.

Employees may contribute pretax dollars to any or all of the district’s 401(k), 403(b) or 457(b) plans, according to limits established by the Internal Revenue Service.

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NOTE 13: AURORA PUBLIC SCHOOLS EDUCATION FOUNDATION NET ASSETS Temporarily restricted net assets are restricted to program services, which include specific grants, scholarships and special projects, as indicated by the donor. As of June 30, 2009, the amount restricted for these purposes was $357,525. Temporarily restricted net assets are categorized as:

Scholarships and endowed scholarships 318,383$ Educator grants and classroom initiatives 16,908 Special projects 22,234

Total 357,525$

In 1995, the foundation received a bequest of $100,000. The bequest agreement states that the amount to be used by the foundation is not to exceed the annual interest earned and/or other donations. The principal amount is permanently restricted and must remain intact. The earnings on the principal amount are to be used to help women who have overcome obstacles in their lives and are determined to change their directions and better themselves by pursuing a course of education or training that will help them become self-reliant. The net assets of the endowment fund as of June 30, 2009, were $100,000. NOTE 14: RELATED PARTY TRANSACTIONS The district provides administrative and other services to its six charter schools, shown as discretely presented component units. The amount of charges for services, in accordance with governing state statutes, for the fiscal year ended June 30, 2009, was $1,539,655, which have been recorded in the district’s financial statements. NOTE 15: ACCOUNTING CHANGE Effective July 1, 2008, the district adopted the provisions of Governmental Accounting Standards Board Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations. GASB 49 addresses accounting and financial reporting standards for current or potential pollution remediation obligations and establishes uniform standards as to the recognition of those obligations in order to enhance comparability between governments. The district has determined that the adoption of GASB 49 had no effect on beginning net assets as of July 1, 2008. The district has voluntarily identified the need to remove soil-based asbestos contamination at the future construction site of the Meadowood Child Development Center. An independent contractor has estimated the remediation oversite and cleanup costs at an amount immaterial to the financial statements. Remediation work is scheduled to be completed in fiscal year 2009-10. The district will continue to monitor and evaluate all sites for potential contamination that may result in a recognizable liability under GASB 49. NOTE 16: RESTATEMENT OF NET ASSETS – CHANGE IN REPORTING ENTITY Net assets as of July 1, 2008, have been restated due to the addition of a discretely presented component unit, AXL Charter School, to the reporting entity. AXL’s first day of school was August 18, 2008. Beginning net assets were increased by $65,807.

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Required Supplementary Information

Required Supplementary Information

This section presents the budgetary comparison schedules for the General Fund and the Grants Fund, the major special revenue fund.

Budgetary Comparisons

General Fund All activities of the district are reported in the General Fund unless there is a legal or contractual requirement to use another fund. Most instructional and administrative expenditures are processed through the General Fund. Primary revenue sources are local property taxes and state aid.

Grants Fund This fund is used to account for revenues and expenditures related to federal, state and local grants.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (non-GAAP Budgetary Basis) General Fund For the Year Ended June 30, 2009

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Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (non-GAAP Budgetary Basis)

General Fund

Variance withNon-GAAP Final Budget

GAAP Accrued Budgetary PositiveActual Amounts Compensation Actual Amounts Original Final (Negative)

REVENUESTaxes:

Property 70,792,560$ -$ 70,792,560$ 57,844,398$ 71,316,101$ (523,541)$ Specific ownership 6,798,670 - 6,798,670 7,119,286 7,119,286 (320,616)

Tuition other school districts 403,260 - 403,260 386,956 386,956 16,304 Net earnings on investments 221,056 - 221,056 1,000,000 1,000,000 (778,944) Other 2,754,794 - 2,754,794 1,964,258 1,964,258 790,536 State sources:

State equalization 162,522,117 - 162,522,117 149,806,507 160,168,549 2,353,568 Vocational education 2,121,480 - 2,121,480 1,613,828 1,613,828 507,652 Special education 5,677,912 - 5,677,912 5,479,372 5,479,372 198,540 English Language Proficiency Act 1,067,601 - 1,067,601 1,175,326 1,175,326 (107,725) Transportation 1,305,549 - 1,305,549 1,290,389 1,290,389 15,160

Federal 88,555 - 88,555 91,601 91,601 (3,046) Total revenues 253,753,554 - 253,753,554 227,771,921 251,605,666 2,147,888


Instruction 152,048,858 (2,303,032) 149,745,826 147,639,435 154,438,247 4,692,421 Pupil support 14,059,246 (218,157) 13,841,089 14,161,755 14,730,413 889,324 Instructional staff support 8,859,315 20,098 8,879,413 8,744,837 9,263,548 384,135 General administration 3,890,777 (9,806) 3,880,971 3,621,558 3,652,780 (228,191) School administration 19,224,010 (161,776) 19,062,234 19,195,773 19,157,133 94,899 Business administration 3,392,558 - 3,392,558 3,493,750 3,538,259 145,701 Operations and maintenance 25,344,722 - 25,344,722 24,834,043 25,617,118 272,396 Transportation 6,353,741 (64,038) 6,289,703 6,589,096 6,686,167 396,464 Personnel/data services/risk mgmt 10,341,148 4,294 10,345,442 10,898,298 11,399,248 1,053,806 Other support services 594,896 - 594,896 1,355,402 1,355,664 760,768 Facilities acquisition 27,061 - 27,061 28,000 28,000 939 Debt service 3,016 - 3,016 - - (3,016) Contingencies - - - 7,908,526 8,200,000 8,200,000

Total expenditures 244,139,348 (2,732,417) 241,406,931 248,470,473 258,066,577 16,659,646

9,614,206 2,732,417 12,346,623 (20,698,552) (6,460,911) 18,807,534

OTHER FINANCING USESTransfers out (1,457,501) - (1,457,501) 1,449,078 (1,457,501) -

Total other financing sources (uses) (1,457,501) - (1,457,501) 1,449,078 (1,457,501) - Net change in fund balance 8,156,705 2,732,417 10,889,122 (19,249,474) (7,918,412) 18,807,534

Fund balance - July 1, 2008 10,338,362 10,338,362 26,510,279 22,098,768 (11,760,406) Fund balance - June 30, 2009 18,495,067$ 21,227,484$ 7,260,805$ 14,180,356$ 7,047,128$

The notes to the required supplementary information are an integral part of this statement.

Budgeted Amounts

Excess (deficiency) of revenues over (under) expenditures

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (non-GAAP Budgetary Basis) Special Revenue Fund – Grants Fund For the year ended June 30, 2009

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Special Revenue Fund – Grants Fund


GAAP Accrued Budgetary Budgeted Amounts PositiveActual Amounts Compensation Actual Amounts Original Final (Negative)

REVENUESGifts and grants 155,427$ -$ 155,427$ 149,700$ 470,794$ (315,367)$ State grants 1,334,352 - 1,334,352 894,331 1,722,436 (388,084) Federal grants 24,190,726 - 24,190,726 24,756,244 25,477,073 (1,286,347)

Total revenues 25,680,505 - 25,680,505 25,800,275 27,670,303 (1,989,798)


Instruction 15,448,352 (138,226) 15,310,126 16,118,850 16,387,380 1,077,254 Pupil support 2,594,247 (59,377) 2,534,870 2,394,290 2,793,817 258,947 Instructional staff support 3,374,004 (8,739) 3,365,265 3,370,777 4,680,288 1,315,023 General administration 809,191 - 809,191 988,896 1,097,364 288,173 School administration 174,087 (8,956) 165,131 97,023 254,953 89,822 Operations and maintenance 164,235 - 164,235 140,357 177,050 12,815

Personnel/data services/risk mgmt 1,132,234 29,192 1,161,426 1,415,525 1,095,667 (65,759) Other support services 1,821,818 (7,964) 1,813,854 1,870,608 1,932,205 118,351

Facilities acquis ition 65,172 - 65,172 63,577 63,577 (1,595) Total expenditures 25,583,340 (194,070) 25,389,270 26,459,903 28,482,301 3,093,031

Excess (deficiency) of revenues over (under) expenditures 97,165 194,070 291,235 (659,628) (811,998) 1,103,233

OTHER FINANCING SOURCES (USES)Transfers in 44,354 - 44,354 44,354 44,354 -

Total other financing sources (uses) 44,354 - 44,354 44,354 44,354 - Net change in fund balance 141,519 194,070 335,589 (615,274) (767,644) 1,103,233

Fund balance - July 1, 2008 722,081 722,081 615,274 767,644 (45,563) Fund balance - June 30, 2009 863,600$ 1,057,670$ -$ -$ 1,057,670$

The notes to the required supplementary information are an integral part of this statement.

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Notes to the Required Supplementary Information

Notes to the Required Supplementary Information

A. Budgetary Information The district follows these procedures in establishing the budgetary data reflected in the financial statements.

i. Per §22-44-105, C.R.S., legally adopted budgets are required for all funds. During May, the superintendent of schools submits to the board of education a proposed budget for the fiscal year commencing the following July. Budgets include estimated expenditures and the means of financing them.

ii. Public hearings are conducted by the board of education to obtain taxpayer comments. iii. Prior to June 30th, the budget is adopted by formal resolution of the board of education,

and the district issues a separate budget document. iv. Authorizations to transfer budgeted amounts between Colorado Department of

Education defined function groups or budget transfers, which change the total fund appropriation, must be approved by the board of education. The superintendent of schools must approve all other line item budget transfers. Actual expenditures and operating transfers out may not legally exceed appropriations at the individual fund level. Budgetary control is maintained at the supervisory department level.

v. Budgets for governmental funds are adopted on a basis consistent with accounting

principles generally accepted in the United States of America, except that any increase or decrease in the liability for accrued compensation has no effect on budgetary accounting.

vi. Budget amounts reported in the accompanying financial statements are as originally

adopted and as amended by the board of education throughout the year. vii. Appropriations for all funds lapse at fiscal year end.

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Supplementary Information:

Supplementary Information

This section presents the major and nonmajor fund financial statements. These statements show a more detailed look at the funds.

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Major and Nonmajor Governmental Funds

Major Governmental Funds

Bond Redemption Fund This fund is used to account for property tax revenues and expenditures related to general long-term debt principal, interest, and related costs. Building Fund This fund is used to account for expenditures related to major construction, repair, or remodel of district sites. Funding for these projects was provided by the sale of the 2006 and the 2008 General Obligation Bonds.

Nonmajor Governmental Funds

Athletic Fund This fund is used to account for activities of the middle school intramural program and high school interscholastic athletic program. Financing is provided through a general fund subsidy and user fees. Pupil Activity Fund – Subsidized Fund This fund is used to account for subsidies directed by the board of education. The subsidies are expended by all schools for performing and visual arts, high school drama and high school yearbook activities. Subsidies directed by the board of education are considered a special revenue fund. Special Programs Fund This fund is used to account for self-sustaining programs of the district such as Continuing Education and the district’s vocational house construction program. Financing for these projects is provided through various user fees and home sales. Capital Reserve Fund This fund, which is authorized by §22-45-103, C.R.S., is used to account for site acquisitions, building remodeling, bus acquisition, major repairs and maintenance, and equipment purchases. Financing is provided by an allocation from the School Finance Act, earnings on investments and sale of capital assets.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Debt Service Fund – Bond Redemption Fund For the Year Ended June 30, 2009

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Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Debt Service Fund – Bond Redemption Fund

Variance withFinal Budget -

Budgeted Am ounts Pos itiveActual Original Final (Negative)

REVENUESLocal:

Property taxes 27,887,426$ 27,622,997$ 27,622,997$ 264,429$ Earnings on inves tm ents 166,542 400,000 400,000 (233,458) Other 8,126 - - 8,126

Total revenues 28,062,094 28,022,997 28,022,997 39,097


Debt servicePrincipal 8,655,000 8,655,000 8,655,000 - Interes t 13,709,259 10,995,500 14,554,035 844,776 Other 500 30,000 30,000 29,500

Total expenditures 22,364,759 19,680,500 23,239,035 874,276 Excess of revenues over expenditures 5,697,335 8,342,497 4,783,962 913,373

Fund balance - July 1, 2008 37,921,217 36,329,500 37,921,217 - Fund balance - June 30, 2009 43,618,552$ 44,671,997$ 42,705,179$ 913,373$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Capital Projects Fund – Building Fund For the Year Ended June 30, 2009

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Capital Projects Fund – Building Fund



REVENUESLocal:

Earnings on inves tm ents 525,070$ 230,000$ 230,000$ 295,070$ Total revenues 525,070 230,000 230,000 295,070

EXPENDITURES

Current:Operations and m aintenance 261,591 - - (261,591) Debit service 812,982 - - (812,982)

Capital outlayFacilities acquis ition and im provem ents 21,413,502 16,363,833 19,950,000 (1,463,502) Total expenditures 22,488,075 16,363,833 19,950,000 (2,538,075)

Excess (deficiency) of revenues over (under) expenditures (21,963,005) (16,133,833) (19,720,000) (2,243,005)

OTHER FINANCING SOURCES (USES)General obligation bonds issued 132,685,000 - 150,000,000 (17,315,000) Prem ium on debt issued 1,076,700 - - 1,076,700

Total other financing sources (uses ) 133,761,700 - 150,000,000 (16,238,300)

Net change in fund balance 111,798,695 (16,133,833) 130,280,000 (18,481,305)

Fund balance - July 1, 2008 10,802,989 8,450,000 5,033,813 5,769,176 Fund balance - June 30, 2009 122,601,684$ (7,683,833)$ 135,313,813$ (12,712,129)$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Balance Sheet Nonmajor Governmental Funds June 30, 2009

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Combining Balance Sheet – Nonmajor Governmental Funds

C apitalP rojec ts

TotalNonm ajor

Pupil Spec ial C apital Governm entalAthletic Ac tivity P rogram s Total R es erve Funds

ASS ET SC as h and c as h equivalents 156,921$ 122,737$ 3,371,750$ 3,651,408$ 1,223,563$ 4,874,971$ R ec eivables - other 547 208 44,448 45,203 - 45,203

Total as s ets 157,468 122,945 3,416,198 3,696,611 1,223,563 4,920,174

LIAB ILIT IES AN D FU N D B ALAN C ESLiabilities :

Ac c ounts payable 4,755 560 108,960 114,275 981,592 1,095,867 R etainages payable - - - - 30,350 30,350 Ac c rued com pens ation - - 254,138 254,138 - 254,138 D eferred revenue - - 773,626 773,626 - 773,626

Total liabilities 4,755 560 1,136,724 1,142,039 1,011,942 2,153,981

Fund balances :R es erved for:Unreserved, undes ignated 152,713 122,385 2,279,474 2,554,572 211,621 2,766,193

Total fund balances 152,713 122,385 2,279,474 2,554,572 211,621 2,766,193

Total liabilities and fund balanc es 157,468$ 122,945$ 3,416,198$ 3,696,611$ 1,223,563$ 4,920,174$

S pec ial R evenue

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2009

89

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds

CapitalProjects

TotalNonmajor

Pupil Special Capital GovernmentalAthletic Activity Programs Total Reserve Funds

REVENUESLocal:

Pupil activities 223,840$ -$ 726,694$ 950,534$ -$ 950,534$ Tuition - - 3,716,027 3,716,027 - 3,716,027 Building rental - - 479,973 479,973 - 479,973

Donations and grants - - 30,000 30,000 - 30,000 Activity fees - - 19,263 19,263 - 19,263 Other - - 1,073,852 1,073,852 - 1,073,852 Earnings on investments - - 143,812 143,812 9,468 153,280

State:State equalization - - - - 5,095,985 5,095,985 Other - - - - 60,460 60,460

Total revenues 223,840 - 6,189,621 6,413,461 5,165,913 11,579,374

EXPENDITURESIns truction 443,813 248,897 3,362,162 4,054,872 - 4,054,872 Pupil support - - 232,361 232,361 - 232,361 Ins tructional s taff support - - 17,049 17,049 - 17,049 General adm inis tration - - 686,944 686,944 - 686,944 School adm inis tration - - 109,822 109,822 - 109,822 Operations and maintenance - - 353,619 353,619 - 353,619 Transportation - - 1,438 1,438 - 1,438 Personnel/data services - - 2,481 2,481 - 2,481 Other support services - - 1,538,404 1,538,404 - 1,538,404 Facilities acquis ition and im provements - - 191,162 191,162 - 191,162 Capital outlay:

Modifications and renovations - - - - 4,478,830 4,478,830 Land - - - - 609,399 609,399 Equipment and vehicles - - - - 1,736,350 1,736,350

Total expenditures 443,813 248,897 6,495,442 7,188,152 6,824,579 14,012,731 (Deficiency) of revenues

(under) expenditures (219,973) (248,897) (305,821) (774,691) (1,658,666) (2,433,357)

OTHER FINANCING SOURCESTransfers in:

General fund 308,400 269,805 391,000 969,205 - 969,205 Capital leases - - - - 383,600 383,600

Total other financing sources 308,400 269,805 391,000 969,205 383,600 1,352,805

Net change in fund balances 88,427 20,908 85,179 194,514 (1,275,066) (1,080,552)

Fund balances - July 1, 2008 64,286 101,477 2,194,295 2,360,058 1,486,687 3,846,745 Fund balances - June 30, 2009 152,713$ 122,385$ 2,279,474$ 2,554,572$ 211,621$ 2,766,193$

Special Revenue

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Special Revenue Fund – Athletic Fund For the year ended June 30, 2009

90

Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual

Variance w ithFinal Budget -

Budgeted Am ounts Pos itiveActual Orig inal Final (Negative)

REVENUESActivity fees 223,840$ 230,200$ 259,486$ (35,646)$

Tota l revenues 223,840 230,200 259,486 (35,646)


Ins truction 443,813 538,600 567,886 124,073 Tota l expenditures 443,813 538,600 567,886 124,073

(Deficiency) of revenues (219,973) (308,400) (308,400) 88,427 (under) expenditures

OTHER FINANCING SOURCESTrans fers in:

General fund 308,400 308,400 308,400 - Total other financing s ources 308,400 308,400 308,400 -

Net change in fund balance 88,427 - - 88,427

Fund balance - July 1, 2008 64,286 35,000 64,286 - Fund balance - June 30, 2009 152,713$ 35,000$ 64,286$ 88,427$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Special Revenue Fund – Pupil Activity Fund For the year ended June 30, 2009

91

Special Revenue Fund – Pupil Activity Fund



REVENUESPupil activities -$ -$ -$ -$

Total revenues - - - -

EXPENDITURESIns truction 248,897 269,805 269,805 20,908

Total expenditures 248,897 269,805 269,805 20,908 (Deficiency) of revenues (248,897) (269,805) (269,805) 20,908 (under) expenditures

OTHER FINANCING SOURCESTrans fers in:

General fund 269,805 269,805 269,805 - Total other financing sources 269,805 269,805 269,805 -

Net change in fund balance 20,908 - - 20,908

Fund balance - July 1, 2008 101,477 - 101,477 - Fund balance - June 30, 2009 122,385$ -$ 101,477$ 20,908$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Special Revenue Fund – Special Programs Fund (non-GAAP Budgetary Basis) For the year ended June 30, 2009

92

Special Revenue Fund – Special Programs Fund (non-GAAP Budgetary Basis)

Variance withNon-GAAP Final Budget -

Accrued Budgetary Budgeted Amounts PositiveActual Compensation Actual Amounts Original Final (Negative)

REVENUESPupil activities 726,694$ -$ 726,694$ 2,243,651$ 2,238,651$ (1,511,957)$ Tuition 3,716,027 - 3,716,027 2,922,387 2,817,894 898,133 Activity fees 19,263 - 19,263 10,000 10,000 9,263 Building rental 479,973 - 479,973 566,000 566,000 (86,027) Donations and grants 30,000 - 30,000 - 5,000 25,000 Other 1,073,852 - 1,073,852 1,426,374 1,426,472 (352,620) Earnings on investment 143,812 - 143,812 - - 143,812

Total revenues 6,189,621 - 6,189,621 7,168,412 7,064,017 (874,396)

EXPENDITURESInstruction 3,362,162 (60,058) 3,302,104 4,788,443 4,919,642 1,617,538 Pupil support 232,361 - 232,361 485,980 485,980 253,619 Instructional staff support 17,049 - 17,049 294,227 293,345 276,296 General administration 686,944 (6,885) 680,059 1,307,517 1,275,333 595,274 School administration 109,822 (396) 109,426 587,391 463,579 354,153 Operations and maintenance 353,619 - 353,619 836,210 820,145 466,526 Transportation 1,438 - 1,438 3,624 8,110 6,672 Personnel/data services 2,481 - 2,481 - - (2,481) Other support services 1,538,404 (189) 1,538,215 2,117,830 2,113,439 575,224 Facilities acquisition 191,162 - 191,162 253,500 266,566 75,404 Contingency - - - 100,000 100,000 100,000

Total expenditures 6,495,442 (67,528) 6,427,914 10,774,722 10,746,139 4,318,225 Excess (deficiency) of revenues over (under) expenditures (305,821) 67,528 (238,293) (3,606,310) (3,682,122) 3,443,829

OTHER FINANCING SOURCESTransfers in:

General fund 391,000 - 391,000 391,000 391,000 - Total other financing sources 391,000 - 391,000 391,000 391,000 -

Net change in fund balance 85,179 67,528$ 152,707 (3,215,310) (3,291,122) 3,443,829

Fund balance - July 1, 2008 2,194,295 2,194,295 3,225,310 3,291,122 (1,096,827) Fund balance - June 30, 2009 2,279,474$ 2,347,002$ 10,000$ -$ 2,347,002$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Capital Projects Fund – Capital Reserve Fund (non-GAAP Budgetary Basis) For the year ended June 30, 2009

93

Special Revenue Fund – Capital Reserve Fund (non-GAAP Budgetary Basis)

Variance withNon-GAAP Final Budget -

Capital Budgetary Budgeted Amounts PositiveActual Lease Actual Amounts Original Final (Negative)

REVENUESLocal:

Earnings on investments 9,468$ -$ 9,468$ 60,000$ 60,000$ (50,532)$ State:

State equalization 5,095,985 - 5,095,985 5,125,985 5,095,985 - Other 60,460 - 60,460 - - 60,460

Total revenues 5,165,913 - 5,165,913 5,185,985 5,155,985 9,928

EXPENDITURESCapital outlay:

Modifications and renovations 4,478,830 - 4,478,830 4,150,000 4,407,337 (71,493) Equipment and vehicles 1,736,350 (383,600) 1,352,750 2,175,985 1,520,335 167,585 Land 609,399 - 609,399 715,000 715,000 105,601

Total expenditures 6,824,579 (383,600) 6,440,979 7,040,985 6,642,672 201,693 Deficiency of revenues (under) expenditures (1,658,666) 383,600 (1,275,066) (1,855,000) (1,486,687) 211,621

OTHER FINANCING SOURCESCapital leases 383,600 (383,600) - - - -

Total other financing sources 383,600 (383,600) - - - -

Net change in fund balance (1,275,066) -$ (1,275,066) (1,855,000) (1,486,687) 211,621

Fund balance - July 1, 2008 1,486,687 1,486,687 1,855,000 1,486,687 -

Fund balance - June 30, 2009 211,621$ 211,621$ -$ -$ 211,621$

94

Proprietary Funds

PROPRIETARY FUNDS Proprietary funds account for services for which the district charges a fee, internally and externally. Revenues are generated on a user-charge basis and cover costs incurred to provide services, including deprecation. Capital acquisitions are recorded as fund assets and depreciation is included as a current operating expense. There are two types of proprietary funds, enterprise and internal service.

Enterprise Funds Enterprise funds account for operations that provide services primarily to customers other than governments outside the financial reporting entity-citizens for example. The district operates one enterprise fund. Nutrition Services Fund The Nutrition Services Fund is the primary government’s only business-type activity. The Nutrition Services staff is responsible for the operation of the school lunch and breakfast programs, serving nutritious meals to district students and adults. The staff also provides catering for meetings, PTO events, and employee functions. They operate the summer feeding program, the after school snack program, and offer nutrition education and in-service programs.

Internal Service Funds

Internal Service Funds account for operations that provide services to other in-district schools, departments or other external governmental entities. The district operates two internal service funds.

Copier Services Fund The Copier Services Fund consolidates all copier repair and acquisition costs within one fund. The service provides low-cost maintenance, supplies, and repairs for copiers throughout the district. Net assets are accumulated for the purpose of purchasing copiers and installing them at school and support sites. Print Services Fund The Print Services Fund was designed to account for offset printing, graphics support and other printing services provided by the district’s Print Services Department to central administration and sites throughout the district. The primary focus of the department is the DocuTech publishing system, which allows for electronic processing of large print jobs.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues and Expenses Compared to Budget Budget and Actual (non-GAAP Budgetary Basis) Enterprise Fund – Nutrition Services Fund For the year ended June 30, 2009

95

Schedule of Revenues and Expenses Compared to Budget- Budget and Actual (non-GAAP Budgetary Basis)


GAAP Accrued Budgetary Budgeted Amounts PositiveActual Amounts Compensation Actual Amounts Original Final (Negative)

REVENUESStudent and faculty food sales 2,363,364$ -$ 2,363,364$ 2,730,434$ 2,730,434$ (367,070)$ Other 138,261 - 138,261 27,200 27,200 111,061 Contract revenues - - - 40,000 40,000 (40,000) Earnings on investments - - - 10,000 4,000 (4,000) Federal sources

Meal reimbursements 8,407,830 - 8,407,830 6,044,080 6,523,385 1,884,445 USDA commodity contributions 207,445 - 207,445 500,000 609,814 (402,369)

State match 266,752 - 266,752 1,008,793 1,016,938 (750,186) Total revenues 11,383,652 - 11,383,652 10,360,507 10,951,771 431,881

EXPENSESSalaries and benefits 5,418,104 (56,115) 5,361,989 4,786,369 4,972,138 (389,851) Professional services 36,094 - 36,094 21,200 21,200 (14,894) Food purchases 4,198,771 - 4,198,771 5,419,327 4,909,231 710,460 USDA commodity items 207,445 - 207,445 500,000 609,814 402,369 Supplies 441,526 - 441,526 226,200 191,200 (250,326) Equipment under capitalization threshold 84,258 - 84,258 350,000 181,410 97,152 Equipment rental and maintenance 209,613 - 209,613 158,434 296,000 86,387 Special events - - - 800 800 800 Other expenses 223,885 - 223,885 295,507 236,900 13,015 Depreciation 429,971 - 429,971 355,612 355,612 (74,359) Loss on sale of equipment 2,633 - 2,633 6,463 6,463 3,830 Indirect costs - - - 210,000 210,000 210,000

Total expenses 11,252,300 (56,115) 11,196,185 12,329,912 11,990,768 794,583

131,352$ 56,115$ 187,467$ (1,969,405)$ (1,038,997)$ 1,226,464$ Excess of revenues over (under) expenses

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Net Assets Internal Service Funds June 30, 2009

96

Combining Statement of Net Assets – Internal Service Funds

Copier PrintServices Services Total

ASSETSCurrent assets :

Cash and cash equivalents 27,960$ 303,281$ 331,241$ Receivables - other - 6 6 Inventories 169,943 12,101 182,044

Total current assets 197,903 315,388 513,291 Noncurrent assets :

Equipm ent and vehicles 665,962 108,646 774,608 Less accum ulated depreciation (474,583) (103,907) (578,490)

Total capital assets (net of depreciation) 191,379 4,739 196,118 Total assets 389,282 320,127 709,409

LIABILITIESCurrent liabilities :

Accounts payable 11,016 - 11,016 Com pensated abs ences 17,975 43,877 61,852

Total current liabilities 28,991 43,877 72,868

Noncurrent liabilities :Com pensated abs ences 480 1,171 1,651

Total noncurrent liabilities 480 1,171 1,651 Total liabilities 29,471 45,048 74,519

NET ASSETSInves ted in capital ass ets 191,379 4,739 196,118 Unres tricted 168,432 270,340 438,772 Total net assets 359,811$ 275,079$ 634,890$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds For the Year Ended June 30, 2009

97

Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds


Operating revenues :Us er charges 813,133$ 370,871$ 1,184,004$ Other 1,995 - 1,995

Total operating revenues 815,128 370,871 1,185,999

Operating expens es :Salaries and benefits 443,212 413,098 856,310 Equipm ent under capitalization thres hold 13,699 1,994 15,693 Equipm ent rental and m aintenance - 179,006 179,006 Supplies 256,230 201,419 457,649 Other expens es 2,800 1,108 3,908 Depreciation 92,828 9,052 101,880

Total operating expens es 808,769 805,677 1,614,446 Operating (los s ) 6,359 (434,806) (428,447)

Nonoperating revenues :Capital contributions 9,371 - 9,371

Total nonoperating revenues 9,371 - 9,371 Incom e (los s ) before trans fers 15,730 (434,806) (419,076)

Trans fer in from General Fund - 443,942 443,942 Change in net as s ets 15,730 9,136 24,866

Total net as s ets , July 1, 2008 344,081 265,943 610,024 Total net as s ets , June 30, 2009 359,811$ 275,079$ 634,890$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2009

98

Combining Statement of Cash Flows – Internal Service Funds


Cas h flows from operating activities :Cas h received from cus tom ers /s tudents 815,128$ 371,715$ 1,186,843$ Cas h paym ents to em ployees for s ervices (445,928) (409,711) (855,639) Cas h paym ents to s uppliers for goods and s ervices (341,240) (388,730) (729,970)

Net cas h provided (us ed) by operating activities 27,960 (426,726) (398,766)

Cas h flows from noncapital financing activities :Trans fers in - 443,942 443,942

Net cas h provided by noncapital financing activities - 443,942 443,942

Net increas e in cas h and cas h equivalents 27,960 17,216 45,176

Cas h and cas h equivalents at beginning of year - 286,065 286,065

Cas h and cas h equivalents at end of year 27,960$ 303,281$ 331,241$

Reconciliation of operating los s to netcas h us ed by operating activities :

Operating los s 6,359$ (434,806)$ (428,447)$

Adjus tm ents to reconcile operating los s tonet cas h provided by operating activities :

Depreciation 92,828 9,052 101,880 Change in as s ets and liabilities :

Accounts receivable - 844 844 Inventories 11,580 (5,203) 6,377 Accounts payable (4,284) - (4,284) Interfund accounts payable (75,807) - (75,807) Accrued earnings and com pens ated abs ences (2,716) 3,387 671

Total adjus tm ents 21,601 8,080 29,681

Net cas h provided (us ed) by operating activities 27,960$ (426,726)$ (398,766)$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues and Expenses Compared to Budget Internal Service Fund – Copier Services Fund For the Year Ended June 30, 2009

99

Schedule of Revenues and Expenses Compared to Budget

Variance withFinal Budget


REVENUESUser charges 813,133$ 815,100$ 815,100$ (1,967)$ Other revenue 1,995 300 300 1,695

Total revenues 815,128 815,400 815,400 (272) EXPENSES

Salaries and benefits 443,212 437,374 444,511 1,299 Profess ional services - 500 500 500 Telephone and fax 2,051 1,600 1,600 (451) Training - 3,000 3,000 3,000 Inventory over/short 13,699 10,000 10,000 (3,699) Dues and fees 749 750 750 1 Supplies 256,230 248,176 256,176 (54) Depreciation 92,828 92,000 94,000 1,172

Total expenses 808,769 793,400 810,537 1,768

Nonoperating revenues :Capital contribution 9,371 - - 9,371

Total nonoperating revenues 9,371 - - 9,371

Excess of revenues over expenses 15,730$ 22,000$ 4,863$ 10,867$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Schedule of Revenues and Expenses Compared to Budget Internal Service Fund – Print Services Fund For the Year Ended June 30, 2009

100

Internal Service Fund – Print Services Fund

Variance withFinal Budget


REVENUESUser charges 370,871$ 300,000$ 300,000$ 70,871$

Total revenues 370,871 300,000 300,000 70,871

EXPENSESSalaries and benefits 341,722 348,404 355,365 13,643 Benefits 71,376 72,115 73,577 2,201 Equipm ent 1,994 10,000 10,000 8,006 Repairs and m aintenance service 16,670 7,500 7,500 (9,170) Rental of equipm ent 162,336 130,000 130,000 (32,336) Staff training 1,078 500 500 (578) Supplies 201,419 166,750 166,750 (34,669) Other expenses 30 250 250 220 Depreciation 9,052 10,000 10,000 948 Contingency - 255,099 283,813 283,813

Total expenses 805,677 1,000,618 1,037,755 232,078 OTHER FINANCING SOURCESTrans fers in:

General fund 443,942 435,519 443,942 - Total other financing sources 443,942 435,519 443,942 -

Excess of revenues and trans fers in over (under)expenses 9,136$ (265,099)$ (293,813)$ 302,949$

101

Agency Fund

AGENCY FUND

Pupil Activity Fund-Nonsubsidized Fund This fund is used to account for monies received and expended by schools through student activity accounts. The district handles these monies strictly in a fiduciary capacity.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Statement of Changes in Assets and Liabilities Fiduciary Fund – Agency Fund For the Year Ended June 30, 2009

102

Statement of Changes in Assets and Liabilities – Fiduciary Fund - Agency Fund

Balance BalanceJuly 1, 2008 Additions Deletions June 30, 2009

ASSETS

Cash and cash equivalents 777,703$ 2,343,316$ 2,300,080$ 820,939$ Accounts receivable 9,066 21,582 9,199 21,449

Total assets 786,769$ 2,364,898$ 2,309,279$ 842,388$

LIABILITIES

Accounts payable 43,799$ 40,361$ 37,016$ 47,144$ Due to s tudent groups 742,970 2,148,529 2,096,255 795,244

Total liabilities 786,769$ 2,188,890$ 2,133,271$ 842,388$

103

Nonmajor Component Units – Charter Schools

Supplementary Schedules – Nonmajor Component Units

Charter Schools Aurora Academy The Academy began operations with the district on July 1, 2000. The school serves students inkindergarten through eighth grades. New America School-Aurora New America began operations with the district on July 1, 2005. The school serves students in ninththrough twelfth grades. Lotus School for Excellence Lotus began operations with the district on July 1, 2006. The school serves students in sixth through ninthgrades. Global Village Academy GVA began operations with the district on July 1, 2007. The school serves students in kindergartenthrough sixth grades. Vanguard Classical School Vanguard began operations with the district on July 1, 2007. The school serves students in kindergartenthrough seventh grades. AXL Charter School AXL began operations with the district on July 1, 2008. The school serves students in kindergartenthrough fifth grades.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Net Assets Component Units – Charter Schools For the Year Ended June 30, 2009

104

Combining Statement of Net Assets – Component Units – Charter Schools

Aurora Academy

New America


Global Village

Academy

Vanguard Classical School

AXL Charter School Total

ASSETSCurrent assets:

Cash and cash equivalents 365,804$ 55,613$ 8,154$ 155,228$ 40,597$ 105,148$ 730,544$ Investments, plus accrued interest 493,169 - - 3,527 - - 496,696 Receivables (net of allowance for uncollectibles) 64,757 2,247 36,352 76,851 46,182 - 226,389 Other assets 250,475 - 77,421 25,400 - - 353,296 Due from other governments - 278,808 19,716 - 57,278 5,858 361,660 Prepaid items - 5,497 15,690 2,100 2,545 19,975 45,807

Total current assets 1,174,205 342,165 157,333 263,106 146,602 130,981 2,214,392 Noncurrent assets:

Deferred charges - - - - - 9,657 9,657 Restricted: Cash and cash equivalents 289,444 - 224,452 - 123,189 - 637,085 Restricted: Investments 490,000 - - - - - 490,000 Capital assets (net of accumulated depreciation):

Land 310,000 - 590,820 - - - 900,820 Buildings and improvements 6,101,200 - 5,462,530 80,225 - 916,485 12,560,440 Equipment and vehicles 53,900 3,477 - 12,128 - 157,733 227,238 Construction in progress 69,388 - - - - 62,400 131,788

Total noncurrent assets 7,313,932 3,477 6,277,802 92,353 123,189 1,146,275 14,957,028 Total assets 8,488,137 345,642 6,435,135 355,459 269,791 1,277,256 17,171,420

LIABILITIESCurrent liabilities:

Accounts payable and other current liabilities 52,323 10,946 54,717 42,950 51,576 29,217 241,729 Accrued salaries and benefits 132,252 124,220 33,720 76,248 144,562 26,278 537,280 Deferred revenue - - - - 5,000 158,499 163,499 Accrued interest payable 129,024 - - - - 5,382 134,406

Noncurrent liabilities, due within one yearGeneral obligation bonds-current 140,000 - - - - - 140,000 Loans and mortgages payable-current - - 318,661 - - 137,285 455,946

Total current liabilities 453,599 135,166 407,098 119,198 201,138 356,661 1,672,860 Noncurrent liabilities, due beyond one year

General obligation bonds 6,777,235 - - - - - 6,777,235 Loans and mortgages payable - - 6,227,278 - - 890,426 7,117,704

Total noncurrent liabilities 6,777,235 - 6,227,278 - - 890,426 13,894,939 Total liabilities 7,230,834 135,166 6,634,376 119,198 201,138 1,247,087 15,567,799

NET ASSETSInvested in capital assets, net of related debt 370,286 3,477 146 92,353 - 113,564 579,826 Restricted for: -

TABOR 106,500 111,080 - 93,000 19,613 - 330,193 5% Operating 145,000 - - - - - 145,000 Other 62,970 - - - 50,000 - 112,970

Unrestricted (deficit) 572,547 95,919 (199,387) 50,908 (960) (83,395) 435,632 Total net assets (deficit) 1,257,303$ 210,476$ (199,241)$ 236,261$ 68,653$ 30,169$ 1,603,621$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Combining Statement of Activities Component Units – Charter Schools For the Year Ended June 30, 2009

105

Combining Statement of Activities – Component Units – Charter Schools

Aurora Academy

New America


Global Villiage

Academy

Vanguard Classical

SchoolAXL Charter

School TotalExpe nsesGovernmental activities 3,466,728$ 3,696,593$ 2,291,708$ 3,151,404$ 3,367,463$ 1,878,013$ 17,851,909$ Business-type activities - - - - 117,223 - 117,223 Total expenses 3,466,728 3,696,593 2,291,708 3,151,404 3,484,686 1,878,013 17,969,132

Program revenuesCharges for services 93,761 58,016 512,241 239,082 79,462 - 982,562 Operating grants and contributions 10,934 2,247 128,840 294,513 322,850 239,018 998,402 Capital grants and

contributions 50,187 50,993 26,007 40,934 89,011 98,260 355,392 Total program revenues 154,882 111,256 667,088 574,529 491,323 337,278 2,336,356

Net expenses (3,311,846) (3,585,337) (1,624,620) (2,576,875) (2,993,363) (1,540,735) (15,632,776)

Gene ra l re ve nues:School finance act, unrestric ted 3,349,291 3,552,820 1,739,306 2,731,788 2,924,865 1,471,681 15,769,751 Earnings on investments 45,882 311 3,779 212 - - 50,184 Other 84,612 100,902 71,435 59,694 42,474 33,416 392,533 Total general revenues 3,479,785 3,654,033 1,814,520 2,791,694 2,967,339 1,505,097 16,212,468 Change in net assets 167,939 68,696 189,900 214,819 (26,024) (35,638) 579,692

Net assets - July 1, 2008, as previously reported 1,089,364 141,780 (389,141) 21,442 94,677 - 958,122 Restatement for change in reporting -

entity - - - - - 65,807 65,807

Net assets - July 1, 2008, as restated 1,089,364 141,780 (389,141) 21,442 94,677 65,807 1,023,929 Net assets - June 30, 2009 1,257,303$ 210,476$ (199,241)$ 236,261$ 68,653$ 30,169$ 1,603,621$

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Colorado Department of Education Compliance Year Ended June 30, 2009

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Compliance The primary compliance issues required by the Public School Finance Act of 1994, as amended, are: 1. A minimum of $298 per pupil must be appropriated to the Capital Projects Capital Reserve Fund and risk-

related activities. Expenditures meeting the $298 per pupil requirement must be for those purposes prescribed by state statute. State equalization amounts are divided by funded October 2008 enrollment figures to determine the per pupil appropriation amount. The following table summarizes district compliance with the $298 requirement.

Capital Reserve Fund

Risk-Related Activities in the General Fund

Primary Government

TotalCharter Schools

State equalization allocation 5,095,985$ 4,000,000$ 9,095,985$ 642,041$ Funded enrollment October 2008 30,434 30,434 30,434 2,154.5

Per pupil appropriation 167$ 131$ 298$ 298$

Primary Government

2. Districts must spend at least $184 per pupil for General Fund instructional supplies and materials, capital

outlay, and other instructional purposes. Qualifying expenditures must be for purposes prescribed by state statute. Per pupil expenditures for instructional supplies is calculated by dividing total eligible expenditures by funded October 2008 enrollment figures. The following table illustrates how per pupil expenditures exceeded the $184 minimum.

Primary Government

Aurora Academy New America


Global Village Vanguard

AXL Charter School

Supplies 5,668,311$ 77,823$ 80,417$ 28,475$ 74,750$ 16,612$ -$ Capital outlay 1,634,770 - 27,735 4,233 - - 96,328 Other 4,044,300 295,925 314,700 171,217 225,004 65,023 129,668

Total instructional expenditures 11,347,381$ 373,749$ 422,852$ 203,925$ 299,754$ 81,636$ 225,996$ Funded enrollment October 2008 30,434 463 474.5 242 372.5 400.5 202 Per pupil expenditure 373$ 807$ 891$ 843$ 805$ 204$ 1,119$

Charter Schools

3. Bond indebtedness cannot exceed 20% of assessed valuation. The debt ratio is calculated by dividing

outstanding general obligation debt by total gross assessed valuation. The following illustrates debt ratio for the year ended June 30, 2009.

Total outstanding general obligation debt 336,955,000$ Total assessed value 1,876,865,590$ Debt ratio 18.0%

Colorado Department of Education Compliance

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JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Colorado Department of Education Compliance Year Ended June 30, 2009

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4. Expenditures by fund cannot exceed legally adopted and amended budgets established by the board of

education. Transfers out, also classified as other financing uses on the face of the financial statements, are treated as contra-revenues for budget-to-actual comparison purposes. The following table shows budget-to-actual comparisons using for each fund as shown in the governmental statements.

2008-09 2008-09

Fund Adopted Budget Expenditures VarianceGeneral, CPP, and Risk fund 258,066,577$ 244,139,348$ 13,927,229$ Component units-charter schools (1) 19,231,548 19,461,805 (230,257) Bond Redemption 23,239,035 22,364,759 874,276 Building 19,950,000 22,488,075 (2,538,075) Grants 28,482,301 25,583,340 2,898,961 Special Programs 10,746,139 6,495,442 4,250,697 Capital Reserve (2) 6,642,672 6,440,979 201,693 Pupil Activity-Subsidized 269,805 248,897 20,908 Nutrition Services 11,990,768 11,252,300 738,468 Athletic 567,886 443,813 124,073 Other Internal Service 1,037,755 1,614,446 (576,691) Pupil Activity-Agency 2,200,000 2,096,255 103,745 Total 382,424,486$ 362,629,459$ 19,795,027$

Note 1: For more information on the charter school budget variances, refer to the separatelyissued statements for each of the charter schools.

Note 2: Refer to the Capital Reserve Fund's Schedule of Revenues, Expenditures, and Changesin Fund Balance for more information on the non-GAAP basis of the adopted budget.

TABOR Spending Compliance In the November 2001 general election, voters approved an exemption from TABOR revenue and spending limitations for the district.

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11/09/2009 Colorado Department of Education ARAPAHOE ADAMS-ARAPAHOE 28J 05:54 PM Fiscal Year 2008-2009 District Code: 0180 Colorado School District/BOCES Auditor's Integrity Report Revenues, Expenditures, & Fund Balance by Fund 1000 - 5999 0001 - 0999 6700 - 6799 Fund Type & Beg Fund Balance & Total Revenues & Total Expenditures & & Prior Per Adj (6880*) Number Prior Per Adj (6880*) + Other Sources - Other Uses = Ending Fund Balance ------------ -------------------- -------------------- -------------------- -------------------- Governmental 10 General Fund 9,409,196 243,475,865 235,308,823 17,576,238 18 Risk Mgmt Sub-Fund of General Fund 805,948 4,036,103 4,293,113 548,938 19 Colorado Preschool Program Fund 123,218 4,784,085 4,537,412 369,891 Subtotal 10,338,362 252,296,053 244,139,348 18,495,067 11 Charter School Fund 895,796 17,134,559 16,820,946 1,209,409 20,26-29 Special Revenue Fund 2,258,581 7,112,861 6,939,255 2,432,187 21 Capital Reserve Spec Revenue Fund 0 0 0 0 22 Govt Designated-Purpose Grants Fund 722,081 25,990,380 25,848,861 863,600 23 Pupil Activity Special Revenue Fund 101,477 269,805 248,897 122,385 24 Full Day Kindergarten Mill Levy Override 0 0 0 0 25 Transportation Fund 0 0 0 0 30 Debt Service Fund 0 0 0 0 31 Bond Redemption Fund 37,921,217 28,062,094 22,364,759 43,618,552 41 Building Fund 10,802,989 134,286,770 22,488,075 122,601,684 42 Special Building Fund 0 0 0 0 43 Capital Reserve Capital Projects Fund 1,486,687 6,254,360 7,529,426 211,621 TOTALS 64,527,190 471,406,882 346,379,567 189,554,505 Proprietary 51 Food Service Fund 4,342,796 11,496,173 11,369,523 4,469,446 50 Other Enterprise Funds 0 0 0 0 64 (63) Risk-Related Activity Fund 0 0 0 0 60,65-69 Other Internal Service Funds 1,133,349 1,814,987 1,838,710 1,109,626 TOTALS 5,476,145 13,311,160 13,208,233 5,579,073 Fiduciary 70 Other Trust and Agency Funds 0 0 0 0 72 Private Purpose Trust Fund 0 0 0 0 73 Agency Fund 0 0 0 0 74 Pupil Activity Agency Fund 742,970 2,148,529 2,096,255 795,244 79 GASB 34:Permanent Fund 0 0 0 0 85 Foundations 651,138 946,968 972,664 625,442 TOTALS 1,394,108 3,095,497 3,068,919 1,420,686 *If you have a prior period adjustment in any fund (Balance Sheet 6880), the amount of your prior period adjustment is added into both your ending and beginning fund balances on this report. From submitted data file: fd0180.25c Program: fdrdh.sqr File: fd0180.dhc FINAL

CDE Auditor’s Electronic Financial Data Integrity Check Figures Report

109

STATISTICAL SECTION

STATISTICAL SECTION

(UNAUDITED)

This part of the Aurora Public School’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the district’s overall financial health.

Contents Page

Financial Trends 111 These schedules contain trend information to help the reader understand how the district’s financial performance and well-being have changed over time.

Revenue Capacity 118

These schedules contain information to help the reader assess the district’s most significant local revenue source, the property tax.

Debt Capacity 124

These schedules present information to help the reader assess the affordability of the district’s current levels of outstanding debt and the district’s ability to issue additional debt in the future.

Demographic and Economic Information 127

These schedules offer demographic and economic indicators to help the reader understand the environment within which the district’s financial activities take place.

Operating Information 129

These schedules contain service and infrastructure data to help the reader understand how the information in the district’s financial report relates to services the district provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Net Assets by Component Last Eight Fiscal Years (Unaudited)

111

Net Assets by Component

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Governm ental activities

Invested in capital assets , net of related debt (6,909,558)$ 15,833,135$ 34,959,084$ 39,990,486$ 51,666,829$ 51,933,637$ 39,261,156$ 37,790,848$ Restricted 44,072,649 42,502,015 37,545,241 31,350,833 29,283,734 37,005,175 46,777,649 53,581,617 Unrestricted (3,324,285) 1,648,026 3,204,282 16,999,526 12,455,941 6,869,321 (2,156,403) 4,735,804

Total governm ental activities net assets 33,838,806 59,983,176 75,708,607 88,340,845 93,406,504 95,808,133 83,882,402 96,108,269

Bus iness-type activitiesInvested in capital assets , net of related debt 1,499,348 1,833,832 2,078,374 2,388,397 2,881,702 2,962,060 3,803,746 3,481,458 Unrestricted 1,903,861 1,924,536 2,055,618 2,018,178 1,837,581 1,577,997 434,054 880,641

Total bus iness-type activities net assets 3,403,209 3,758,368 4,133,992 4,406,575 4,719,283 4,540,057 4,237,800 4,362,099

Prim ary governm entInvested in capital assets , net of related debt (5,410,210) 17,666,967 37,037,458 42,378,883 54,548,531 54,895,697 43,064,902 41,272,306 Restricted 44,072,649 42,502,015 37,545,241 31,350,833 29,283,734 37,005,175 46,777,649 53,581,617 Unrestricted (1,420,424) 3,572,562 5,259,900 19,017,704 14,293,522 8,447,318 (1,722,349) 5,616,445

Total prim ary governm ent net assets 37,242,015$ 63,741,544$ 79,842,599$ 92,747,420$ 98,125,787$ 100,348,190$ 88,120,202$ 100,470,368$

Note 1: This schedule consolidates data from the governm ent-wide s tatem ents that utilize the full accrual bas is of accounting.Note 2: The dis trict began to report the full accrual bas is of accounting when it im plem ented GASB Statem ent 34 in fiscal year 2001-02.

Fiscal Year

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Expenses, Program Revenues and Net (Expense)/Revenue Last Eight Fiscal Years (Unaudited)

112

Expenses, Program Revenues and Net (Expense)/Revenue

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09EXPENSESGovernmental activities:

Instruction 129,190,645$ 138,079,554$ 141,193,855$ 143,041,944$ 152,763,780$ 167,773,168$ 180,213,628$ 182,393,324$ Supporting services 73,856,298 77,035,264 81,328,176 100,398,734 101,924,771 100,142,890 110,293,149 113,750,907 Interest 5,129,536 8,159,840 10,714,000 10,985,957 11,736,937 11,231,072 10,631,235 12,456,044

Total governmental activities expense 208,176,479 223,274,658 233,236,031 254,426,635 266,425,488 279,147,130 301,138,012 308,600,275 Business-type activity:

Nutrition services 6,307,290 6,281,743 6,840,532 7,608,439 8,074,284 9,346,073 10,547,596 11,259,353 Total primary government expenses 214,483,769$ 229,556,401$ 240,076,563$ 262,035,074$ 274,499,772$ 288,493,203$ 311,685,608$ 319,859,628$

PROGRAM REVENUESGovernmental activities:

Charges for services--instruction programs 3,800,743$ 2,866,167$ 1,070,649$ 1,071,978$ 4,746,885$ 4,659,152$ 5,190,875$ 5,021,263$ Charges for services--other programs 305,609 325,876 381,761 296,638 348,302 401,083 393,312 539,973 Operating grants and contributions 17,046,404 20,976,383 16,799,877 23,237,036 23,201,571 23,469,672 25,556,082 28,361,940 Capital grants and contributions - - - 1,993,434 - - - -

Total governmental activities 21,152,756 24,168,426 18,252,287 26,599,086 28,296,758 28,529,907 31,140,269 33,923,176 Business-type activity:

Charges for services 2,586,190 2,417,963 2,425,921 2,484,735 2,235,749 2,326,163 2,573,984 2,501,625 Operating grants and contributions 3,509,593 4,093,234 4,669,474 5,269,565 5,966,748 6,648,507 7,477,799 8,615,275 Capital grants and contributions 236,016 - - - - - - -

6,331,799 6,511,197 7,095,395 7,754,300 8,202,497 8,974,670 10,051,783 11,116,900

Total primary government program revenues 27,484,555$ 30,679,623$ 25,347,682$ 34,353,386$ 36,499,255$ 37,504,577$ 41,192,052$ 45,040,076$

Net (expense) / revenueGovernmental activities (187,023,723)$ (199,106,232)$ (214,983,744)$ (227,827,549)$ (238,128,730)$ (250,617,223)$ (269,997,743)$ (274,677,099)$ Business-type activity 24,509 229,454 254,863 145,861 128,213 (371,403) (495,813) (142,453)

Total primary government net expense (186,999,214)$ (198,876,778)$ (214,728,881)$ (227,681,688)$ (238,000,517)$ (250,988,626)$ (270,493,556)$ (274,819,552)$

Note 1: This schedule consolidates data from the government-wide statements that utilize the full accrual basis of accounting.Note 2: The district began to report the full accrual basis of accounting when it implemented GASB Statement 34 in fiscal year 2001-02.

Fiscal Year

Total business-type activities program revenues

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO General Revenues and Total Change in Net Assets Last Eight Fiscal Years (Unaudited)

113

General Revenues and Total Change in Net Assets

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Net (expense) / revenue

Governmental activities (187,023,723)$ (199,106,232)$ (214,983,744)$ (227,827,549)$ (238,128,730)$ (250,617,223)$ (269,997,743)$ (274,677,099)$ Business-type activity 24,509 229,454 254,863 145,861 128,213 (371,403) (495,813) (142,453)

Total primary government net expense (186,999,214)$ (198,876,778)$ (214,728,881)$ (227,681,688)$ (238,000,517)$ (250,988,626)$ (270,493,556)$ (274,819,552)$

General revenue and other changesin net assets

Governmental activities:Property taxes, levied for debt service and general fund use 83,399,251$ 81,973,346$ 80,325,008$ 81,804,740$ 83,764,974$ 85,956,923$ 89,975,816$ 106,211,791$ School finance act, unrestricted 125,691,984 141,250,554 146,287,809 150,723,408 153,571,516 161,330,886 164,793,972 179,625,227 Earnings on investments 874,392 1,593,302 3,158,402 3,082,740 4,759,245 5,731,043 3,302,224 1,065,948 Debt financing source - 433,400 543,613 - - - - - Amortization on premiums of debt issuance - - - 896,727 1,808,777 - - - Special item-gain on sale of

preschool and childcare facility - - - 3,857,336 - - - - Total governmental activities 209,965,627 225,250,602 230,314,832 240,364,951 243,904,512 253,018,852 258,072,012 286,902,966

Business-type activity:School finance act, unrestricted 103,571 112,997 111,072 114,077 159,879 174,614 193,470 266,752 Earnings on investments 26,897 12,708 9,689 12,645 24,616 17,563 86 -

Total business-type activity 130,468 125,705 120,761 126,722 184,495 192,177 193,556 266,752 Total primary government 210,096,095$ 225,376,307$ 230,435,593$ 240,491,673$ 244,089,007$ 253,211,029$ 258,265,568$ 287,169,718$

CHANGE IN NET ASSETSGovernmental activities 22,941,904 26,144,370 15,331,088 12,537,402 5,775,782 2,401,628 (11,925,731) 12,225,867 Business-type activity 154,977 355,159 375,624 272,583 312,708 (179,226) (302,257) 124,299

Total primary government 23,096,881$ 26,499,529$ 15,706,712$ 12,809,985$ 6,088,490$ 2,222,402$ (12,227,988)$ 12,350,166$

Note 1: This schedule consolidates data from the government-wide statements that utilize the full accrual basis of accounting.Note 2: The district began to report the full accrual basis of accounting when it implemented GASB Statement 34 in fiscal year 2001-02.

Fiscal Year

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Fund Balances, Governmental Funds Last Eight Fiscal Years (Unaudited)

114

Fund Balances, Governmental Funds

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09General Fund

Reserved 6,151,510$ 6,288,427$ 6,334,985$ 6,491,864$ 7,366,873$ 8,678,098$ 8,221,037$ 9,241,000$ Unreserved (1,068,297) 5,671,057 12,031,791 20,393,536 25,689,208 15,558,900 2,117,325 9,254,067

Total General Fund 5,083,213$ 11,959,484$ 18,366,776$ 26,885,400$ 33,056,081$ 24,236,998$ 10,338,362$ 18,495,067$

All other governmental fundsReserved

Debt service fund 37,046,260$ 35,055,624$ 30,461,536$ 23,549,745$ 21,481,890$ 28,864,952$ 37,921,217$ 43,618,552$ Grants - - 310,864 602,235 398,139 240,961 722,081 863,600 Capital projects funds - 152,246,816 111,723,253 65,478,873 77,718,058 46,100,539 10,802,989 122,601,684 Special revenue funds - - - - 397,137 710 - -

UnreservedGrants 180,195 297,655 - - - - - - Capital projects funds 616,497 1,999,184 2,072,465 4,765,483 2,083,825 2,206,633 - - Special revenue funds 1,325,698 1,668,281 1,830,323 2,438,842 1,593,631 2,244,670 3,846,745 2,766,193

Total all other governmental funds 39,168,650$ 191,267,560$ 146,398,441$ 96,835,178$ 103,672,680$ 79,658,465$ 53,293,032$ 169,850,029$

Note 1: This schedule consolidates data from the governmental statements that utilize the modified accrual basis of accounting.Note 2: The district began to report the full accrual basis of accounting when it implemented GASB Statement 34 in fiscal year 2001-02.

Fiscal Year

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Governmental Funds Revenues Last Eight Fiscal Years (Unaudited)

115

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09REVENUESLocal:

Property taxes 71,460,215$ 74,162,575$ 74,157,978$ 74,735,611$ 76,636,382$ 78,965,328$ 83,579,936$ 98,679,986$ Specific ownership 8,244,560 7,814,212 7,453,595 7,172,353 7,115,467 7,070,036 6,814,594 6,798,670 Pupil activities 166,761 180,765 244,470 171,495 854,753 631,883 746,735 950,534 Tuition - - 613,933 700,164 3,656,971 3,794,584 4,131,071 4,119,287

Continuing education 2,317,869 1,335,503 - - - - - - Summer school 238,199 - - - - - - - Day care 759,376 1,006,216 - - - - - -

Grant administration 449,005 335,946 64,640 280,322 - - - - Tuition - other districts 119,396 161,159 - - - - - -

Activity fees 198,902 180,734 208,081 200,319 235,161 232,685 245,248 19,263 Gifts and grants 1,368,182 301,309 1,858,033 2,709,074 290,977 126,996 793,900 185,427 Miscellaneous 518,841 808,648 1,091,057 1,180,009 2,157,221 2,473,883 2,678,609 3,836,772 Cash in lieu of land 50,000 122,717 14,202 359,590 739,377 78,674 95,536 - Rental of buildings 305,849 327,666 385,926 296,638 348,302 401,083 393,312 479,973 Earnings on investments 844,354 1,583,146 3,153,535 3,079,246 4,758,505 5,731,043 3,305,158 1,065,948

State:State equalization 118,422,807 133,446,371 134,042,091 138,455,374 141,238,294 151,647,798 154,928,032 167,618,102 Vocational education 1,036,110 747,495 961,544 1,065,836 659,652 1,523,716 1,900,773 2,121,480 Special education 4,158,067 4,381,688 4,462,369 4,527,401 4,803,913 5,115,644 5,512,476 5,677,912 Grants 2,850,568 4,635,747 2,967,718 1,033,576 869,772 1,123,903 666,279 1,334,352 Transportation - - - - 1,193,058 1,167,818 1,285,690 1,305,549 Other 575,000 636,011 1,454,087 3,587,895 806,827 752,007 1,000,953 1,128,061

Federal grants 11,859,808 14,208,534 13,843,799 18,289,856 20,013,996 20,790,119 21,988,037 24,279,281 Other federal revenue - 502,471 - - - - - - Total revenues 225,943,869$ 246,878,913$ 246,977,058$ 257,844,759$ 266,378,628$ 281,627,200$ 290,066,339$ 319,600,597$


Fiscal Year

Governmental Funds Revenues

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Governmental Funds Expenditures and Debt Service Ratio Last Eight Fiscal Years (Unaudited)

116

Governmental Funds Expenditures and Debt Service Ratio

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09EXPENDITURESCurrent:

Instruction 123,878,858$ 135,104,281$ 132,011,111$ 134,534,497$ 142,897,332$ 158,901,485$ 166,820,691$ 171,552,082$ Pupil support 9,928,888 10,600,233 11,862,970 12,576,018 11,461,208 12,992,148 15,371,829 16,885,854 Instructional staf f support 10,115,775 9,443,623 8,156,497 8,825,696 9,072,620 10,918,552 12,008,372 12,250,368 General administration 3,044,826 2,689,626 3,264,080 3,507,388 3,946,533 4,493,739 4,249,643 5,648,503 School administration 13,603,802 14,238,451 15,481,376 16,038,255 16,962,216 17,595,642 19,014,371 19,507,919 Business administration 2,084,226 2,107,892 2,113,360 2,355,093 2,509,491 2,930,426 3,315,453 4,205,540 Grant administration 160,990 291,108 - - - - - - Operations and maintenance 22,347,953 22,389,141 19,707,659 21,109,412 23,135,771 23,904,954 25,283,471 25,862,576 Transportation 5,203,445 5,518,601 5,292,696 5,407,373 5,689,731 5,782,111 6,285,898 6,355,179 Personnel/data services/risk management 5,150,169 5,300,191 5,930,898 7,235,111 7,764,962 11,764,643 10,417,384 11,475,863 Other support services 1,730,260 2,740,530 4,075,554 3,245,813 3,095,275 3,958,878 4,242,843 3,955,118

Facilities acquisition and improvements 23,363 8,605,254 47,730,259 54,650,095 78,895,037 40,515,310 43,720,470 28,521,476 Debt service:

Principal 10,119,492 10,564,492 10,465,000 21,880,000 19,025,000 9,255,000 8,323,065 8,658,016 Interest 4,952,026 5,691,543 10,344,435 10,581,984 10,164,884 11,249,427 10,846,762 13,709,259 Other 27,130 2,430,367 166,910 92,377 696,215 31,090 500 500

Total expenditures 212,371,203$ 237,715,333$ 276,602,805$ 302,039,112$ 335,316,275$ 314,293,405$ 329,900,752$ 328,588,253$

Excess (def iciency) of revenues over (under) expenditures 13,572,666$ 9,163,580$ (29,625,747)$ (44,194,353)$ (68,937,647)$ (32,666,205)$ (39,834,413)$ (8,987,656)$

Debt service as a percentage of noncapital expenditures 6.5% 7.0% 8.6% 11.5% 10.4% 7.1% 6.2% 7.0%

Note 1: This schedule consolidates data f rom the governmental statements that utilize the modif ied accrual basis of accounting.Note 2: The district began to report the full accrual basis of accounting w hen it implemented GASB Statement 34 in f iscal year 2001-02.

Fiscal Year

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Other Financing Sources (Uses) and Net Change in Fund Balances Last Eight Fiscal Years (Unaudited)

117

Other Financing Sources (Uses) and Net Change in Fund Balances

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Excess (deficiency) of revenues

over (under) expenditures 13,572,666$ 9,163,580$ (29,625,747)$ (44,194,353)$ (68,937,647)$ (32,666,205)$ (39,834,413)$ $ (8,987,656)

OTHER FINANCING SOURCES (USES)Transfers in:

General fund 2,709,860 538,700 322,390 338,390 2,199,678 1,133,011 1,250,381 1,013,559 Grants fund 928,802 183,224 - - 433,610 - - - Nonmajor governmental funds 387,852 1,147,449 70,000 85,000 - - - -

Transfers out:General fund (1,093,306) (1,041,848) (635,423) (802,458) (381,271) (387,845) - - Charter schools - - - - - - - - Print services fund - - - - - - (429,656) (443,942)Print services fund (436,090) (232,534) - - (44,354) (44,354) (44,354) (44,354)Nonmajor governmental funds (625,502) (1,147,449) (322,390) (423,390) (759,610) (867,905) (1,206,027) (969,205)Bond redemption fund (2,421,074) - - - - - - - Proceeds-sale of land and buildings - - - 3,857,336 - - - -

Capital leases - - - - - - - 383,600 General obligation debt:

Debt issued - 150,000,000 36,785,000 - 75,000,000 - - 132,685,000 Premium on debt issued - 11,154,058 - - 6,207,900 - - 1,076,700 Payment to escrow agent - (10,790,000) (45,450,000) - - - - -

Total other financing sources (uses) (549,458) 149,811,600 (9,230,423) 3,054,878 82,655,953 (167,093) (429,656) 133,701,358

Net change in fund balances 13,023,208 158,975,180 (38,856,170) (41,139,475) 13,718,306 (32,833,298) (40,264,069) 124,713,702

Fund balance - beginning 31,228,655 44,251,864 203,227,044 164,765,217 123,720,578 136,728,761 103,895,463 63,631,394 Restatement for addition of blended component unit - - 394,343 94,836 (710,123) - - -

Fund balance as restated - - 203,621,387 164,860,053 123,010,455 136,728,761 103,895,463 63,631,394 Fund balance - ending 44,251,863$ 203,227,044$ 164,765,217$ 123,720,578$ 136,728,761$ 103,895,463$ 63,631,394$ 188,345,096$


Fiscal Year

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited)

118

Assessed Value and Actual Value of Taxable Property

Fiscal Year

Ended

Calendar Year Property

Assessed Vacant Residential Commercial Industrial AgriculturalNatural

ResourcesOil

and GasState

AssessedLess: Tax

Exempt Property

Preliminary Taxable Assessed

Value (1)Final Assessed

Value (2)Estimated Actual

Value (3)

Total Direct Rate

2000 1999Adams County 13,838,940$ 79,021,190$ 171,413,860$ 21,375,030$ 459,760$ 3,440$ 5,980$ 20,856,100$ - 306,974,300$ 308,279,360$ 1,602,330,861$ 53.686 Arapahoe County 34,132,190 478,140,840 304,217,010 930,800 596,210 139,820 - 61,167,090 8,090,420 871,233,540 871,527,130 5,986,020,276 53.686

2001 2000Adams County 13,350,320 80,493,250 189,461,970 23,911,610 445,530 6,850 - 23,670,860 - 331,340,390 333,427,260 1,699,430,537 49.978 Arapahoe County 30,892,320 490,532,980 310,479,140 891,470 660,170 158,890 - 64,520,110 8,728,579 889,406,501 895,456,911 6,464,431,467 49.978

2002 2001Adams County 20,223,300 108,842,560 213,497,680 23,732,380 394,730 6,850 - 26,344,120 - 393,041,620 399,205,680 2,191,553,883 49.825 Arapahoe County 50,100,840 621,530,490 330,649,910 1,081,930 617,100 137,750 - 60,358,250 8,168,440 1,056,307,830 1,055,725,540 8,310,132,014 49.825

2003 2002Adams County 19,079,600 113,257,680 221,211,720 22,521,060 399,880 29,300 - 32,572,200 - 409,071,440 409,510,770 2,259,767,420 47.964 Arapahoe County 49,863,740 641,638,500 334,291,430 961,420 665,380 170,640 - 76,890,280 6,685,640 1,097,795,750 1,099,464,480 8,612,707,001 47.964

2004 2003Adams County 17,552,430 119,012,800 241,564,540 25,824,570 404,670 93,720 - 30,351,300 - 434,804,030 435,285,300 2,579,732,741 47.003 Arapahoe County 45,135,470 654,040,990 340,346,920 1,579,470 688,260 171,270 - 72,197,700 5,813,860 1,108,346,220 1,109,736,520 9,806,023,768 47.003

2005 2004Adams County 16,491,030 120,810,470 252,410,820 26,426,640 400,160 91,530 - 50,350,390 385,400 466,595,640 466,407,460 2,710,701,716 45.824 Arapahoe County 41,074,820 670,442,210 358,601,550 1,619,720 681,480 139,340 - 67,609,640 4,335,510 1,135,833,250 1,130,068,610 10,017,038,875 45.824


2007 2006Adams County 23,263,700 127,499,960 294,063,050 30,507,980 350,780 6,850 - 52,167,870 810,980 527,049,210 527,416,580 2,981,808,148 45.530 Arapahoe County 41,786,970 728,120,300 375,363,410 667,280 697,580 200,190 - 68,795,790 4,642,950 1,210,988,570 1,209,704,960 10,586,369,492 45.530


2009 2008Adams County 22,072,060 121,469,220 349,881,440 34,201,490 367,390 6,850 - 59,905,990 1,662,950 586,241,490 588,411,040 3,141,415,713 53.248 Arapahoe County 44,304,810$ 747,628,290$ 410,246,950$ 1,057,620$ 918,660$ 106,140$ $ - 82,493,320$ - 1,286,755,790$ 1,286,791,600$ 11,254,154,437$ 53.248

Note 1: Source: http://www.dola.state.co.us/dpt/publications/docs/2008_annual_report/sdbycty.pdf Colorado Department of Local Affairs, Division of Property Taxation.Note 2: Source: www.co.arapahoe.co.us/ & www.co.adams.co.us/Note 3: County assessors have provided actual valuations in accordance with C.R.S. 39-5-128(1).Source: http://www.co.arapahoe.co.us/Departments/AS/index.asp & www.co.adams.co.us

Final taxable assessed values by category are not available until December each year, so preliminary values are presented as of August.

Final assessed values may not agree in total with the August preliminary taxable values. Final assessed values provided by county assessors' office.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Unaudited)

120

Direct and Overlapping Property Tax Rates

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999Aurora Public Schools Rates

General Fund 38.248 30.530 30.745 30.824 32.003 32.964 33.329 33.482 37.190 37.303 Debt Service Fund 15.000 15.000 15.000 15.000 15.000 15.000 16.496 16.496 16.496 16.496

Total (1) 53.248 45.530 45.745 45.824 47.003 47.964 49.825 49.978 53.686 53.799

Arapahoe County 15.609 16.083 16.083 15.421 15.451 15.140 14.594 14.028 14.013 13.706 Adams County 26.809 26.899 26.974 26.804 26.903 26.779 26.370 23.541 25.681 25.273 City of Aurora 10.664 10.701 10.867 10.958 11.079 11.161 11.409 12.193 10.594 11.796 Urban Drainage 0.063 0.542 0.542 0.532 0.538 0.533 0.602 0.590 0.667 0.655

Arapahoe County total 79.584 72.856 73.237 72.735 74.071 74.798 76.430 76.789 78.960 79.956 Adams County total 90.784 83.672 84.128 84.118 85.523 86.437 88.206 86.302 90.628 91.523

Overlapping tax entities (2 & 3)ACC Metropolitan District 31.000 27.000 27.000 27.000 27.000 - - - - - Adonea Metro District No. 2 56.000 56.000 56.000 56.000 52.060 - - - - - Airways Business Center 37.000 37.000 37.000 25.000 25.000 - - - - - Arapahoe County Law Enforcement 4.982 4.982 4.982 4.982 4.982 4.982 4.982 4.982 4.982 4.982 Arapahoe Library District 4.827 4.893 4.893 4.963 4.900 4.916 3.695 3.682 3.808 3.837 Aurora CentreTech Metropolitan District 37.190 37.190 37.190 40.000 40.000 40.000 45.000 42.000 42.000 35.000 Aurora Singletree Metropolitan District 48.944 48.944 48.944 50.656 48.944 48.944 42.579 42.579 40.000 40.000 Bennett Fire Protection District 8.907 6.257 6.257 6.410 6.257 6.257 6.257 6.257 6.257 6.257 Central Adams Water & Sanitation 60.000 60.000 60.000 60.000 90.000 90.000 90.000 1.850 1.850 1.850 Conservatory Metro District 52.009 52.059 52.059 52.059 52.059 52.059 45.289 - - - Colo. Science Technology Metro No. 2 60.000 - - - - - - - - - Cross Creek Metropolitan District No. 2 61.000 56.000 56.000 56.000 52.060 52.060 - - - - Cunningham Fire Protection District 14.620 14.623 14.623 14.651 14.624 14.632 14.667 14.688 14.644 14.697 Eastgate Commercial Metro District 35.000 35.000 - - - - - - - - Eastern Hills Metropolitan District No. 2 52.061 52.061 - - - - - - - - Eastern Hills Metropolitan District No. 3 52.061 52.061 52.061 52.061 52.061 52.061 - - - - Eastern Hills Metropolitan District No. 4 52.061 52.061 52.061 52.061 52.061 52.061 - - - - Eastern Hills Metropolitan District No. 5 52.061 52.061 52.061 52.061 52.061 52.061 - - - - Eastern Hills Metropolitan District No. 6 52.061 52.061 52.061 52.061 52.061 52.061 - - - - Eastern Hills Metropolitan District No. 7 52.061 52.061 52.061 52.061 52.061 52.061 - - - - Eastern Hills Metropolitan District No. 8 52.061 52.061 52.061 - - - - - - -

Note 1: APS Total Rate information updated as of June 30, 2009.Source: Aurora Public Schools Budget Office.Note 2: Tax levies from overlapping tax entities continue on the following page. Note 3: Includes only those entities with overlapping rates in existence at December 31, 2008.Source: http://www.co.arapahoe.co.us/Departments/AS/CERT%20OF%20LEVIES%20.pdf.

Contact Source: Adams County assessor's office.

Year Taxes Are Payable

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Direct and Overlapping Property Tax Rates, continued Last Ten Fiscal Years (Unaudited)

121

2008 2007 2006 2005 2004 2003 2002 2001 2000 1999Overlapping tax entities (2 & 3)

Eastpark 70 Metro District 31.000 31.000 31.000 31.000 - - - - - - First Creek Ranch Metropolitan District - 60.000 60.000 60.000 90.000 90.000 90.000 30.070 30.070 30.070 Heather Gardens Metropolitan District 9.571 8.065 8.065 8.103 8.869 8.662 8.447 6.864 8.983 8.279 Himalaya Water & Sanitation 10.000 10.000 10.000 10.000 10.000 10.000 8.450 8.050 8.050 8.050 Murphy Creek Metro District No. 2 36.000 36.000 36.000 36.000 36.000 36.000 45.289 40.000 40.000 - Murphy Creek Metro District No. 3 48.944 45.000 45.000 45.000 40.830 44.830 45.289 40.000 40.000 - Park 70 Metropolitan District 36.000 36.000 36.000 35.000 27.500 - - - - - Rangeview Library District (4) 3.659 3.504 3.659 1.388 1.394 1.387 1.391 1.388 1.296 1.326 Sable-Altura Fire Protection District 21.000 21.000 21.000 7.000 7.000 7.000 3.753 6.095 6.095 6.095 Sand Creek Metropolitan District 26.000 25.750 25.500 25.000 24.000 23.000 23.000 20.000 20.000 20.000 Second Creek Ranch 60.000 60.000 60.000 60.000 90.000 90.000 90.000 182.380 182.380 182.380 Sterling Hills Metropolitan District 18.500 24.000 24.000 30.000 30.000 30.000 30.000 30.000 30.000 30.000 Sterling Hills West Metropolitan District 57.000 47.600 47.600 47.600 47.600 43.681 38.000 38.000 36.000 - Tollgate Creek Commons Metro District No. 2 52.060 52.060 - - - - - - - - Tower Metropolitan District 25.000 25.000 25.000 25.000 25.000 25.000 26.950 26.950 26.950 26.950 Traditions Metro Dist. No. 2 52.060 52.060 52.060 52.060 - - - - - - Urban Drainage & Flood Control-Adams 0.528 0.507 - - - - - - - - Urban Drainage & Flood Control-South Platte 0.063 0.066 0.066 0.065 0.066 0.065 - - - - WH Metropolitan District No. 1 50.000 50.000 50.000 50.000 - - - - - -

Note 4: Previously reported as Adams County Library.Source: Adams County and Arapahoe County assessors.

Year Taxes Are Payable

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Principal Property Tax Payers Current Year and Nine Years Ago (Unaudited)

122

Principal Property Tax Payers

TaxpayerTaxable

Value Rank

Percentage of Total Taxable

ValueTaxable

Value Rank

Percentage of Total Taxable

ValuePublic Service of Colorado 29,640,850$ 1 1.60% 30,248,470$ 1 3.10%Blue Spruce Energy Center LLC 29,249,200 2 1.60%QWEST Corp (1) 21,649,500 3 1.20% 19,448,600 2 2.00%Verizon FKA Airtouch Com m 15,911,320 4 0.80%Colorado Inters tate Gas Co 14,135,700 5 0.80% 7,042,000 8 0.70%Pro Logis 8,830,950 6 0.50%King Soopers INC #871 8,405,840 7 0.40%Optim a Batteries INC 7,694,970 8 0.40%MCI Telecom m unications Corp. 7,177,800 9 0.40% 10,705,080 5 1.10%Quarry Assets LLC 6,740,860 10 0.40% 8,555,000 0.90%Colum bia Healthone LLC 16,848,990 3 1.70%Glenborough Properties , LP 11,960,000 4 1.20%Security Capital Indus trial 7,827,980 6 0.80%Am oco Production Co. 6,253,290 9 0.60%Retail Property Trus t 6,960,000 7 0.70%Mack Cali Realty LP 4,930,000 10 0.50%IRE-Aurora Inc. 4,930,000 10 0.50%

149,436,990$ 8.10% 135,709,410$ 13.80%

Note 1: Included as US Wes t in 1999-00 CAFR.Source: Adam s County and Arapahoe County assessors ' offices .

Fiscal Year 2008-09 Fiscal Year 1999-00

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited)

123

Property Tax Levies and Collections

Calendar Year (1)

Taxes Levied for the

Calendar Year

Tax Collections for Calendar

Year Tax Levied (2)

Percentage of Original

Levy

Collections in

Subsequent Years (3)

Total Tax Collections (4)

Percent of Total Tax

Collections to Levy

Outs tanding Delinquent Taxes (5)

Outs tanding Delinquent

Taxes of Percent of

Current Levy

2000 63,472,409$ 62,863,031$ 99.0% (159,453)$ 62,703,578$ 98.8% 609,378$ 1.0%2001 66,442,478 66,017,445 99.4% (445,999) 65,571,446 98.7% 425,033 0.6%2002 72,714,553 72,323,551 99.5% (273,694) 72,049,857 99.1% 391,002 0.5%2003 75,184,692 74,205,060 98.7% (77,229) 74,127,831 98.6% 979,632 1.3%2004 74,033,504 73,704,953 99.6% 313,802 74,018,755 100.0% 328,551 0.4%2005 75,039,165 74,855,763 99.8% 131,975 74,987,738 99.9% 183,402 0.2%2006 77,361,127 77,137,233 96.9% (331,402) 76,805,831 99.3% 223,894 0.3%2007 79,464,624 79,031,758 99.5% (84,831) 78,946,927 99.3% 432,866 0.5%2008 83,799,475 83,519,188 99.7% (52,380) 83,466,808 99.6% 280,287 0.3%2009 99,850,790 96,851,027 97.0% (23,775) 96,827,252 97.0% 2,999,763 3.0%

Note 1: Collection figures for calendar year 2009 represent those collections received for January through Augus t due to the im plem entation of GASB Statem ent No. 33, Accounting and Financial Reporting for Nonexchange Transactions .Note 2: Property tax collections provided by County Treasurers ' offices .Note 3: Negative am ounts occurred when refunds or other "forgiveness " of delinquent taxes exceeded delinquent tax collections .Note 4: Am ounts shown represent levies and collections during calendar year January-Decem ber. Tax revenues reported

in the bas ic financial s tatem ents reflect a July-June fiscal bas is .Note 5: Represents delinquent taxes due at the end of the year on taxes levied for that year.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Outstanding Debt by Type Last Ten Fiscal Years (Unaudited)

124

Outstanding Debt by Type

1999-00 2000-01 2001-02 2002-03 2003-04

General obligation bonds 103,100,000$ 88,740,000$ 78,945,000$ 209,640,000$ 192,555,000$ Certificates of participation 9,580,000 8,605,000 6,220,000 5,045,000 3,835,000 Notes payable 87,714 68,222 48,730 29,238 9,746

Total debt outs tanding 112,767,714$ 97,413,222$ 85,213,730$ 214,714,238$ 196,399,746$

Total debt outs tanding as a percentage of:

Es tim ated actual property value 1.5% 1.2% 0.8% 2.0% 1.6%

Final as sess ed property value 9.6% 7.9% 5.9% 14.2% 12.7%

Personal incom e (1, 2, & 3):Adam s County 0.6% 0.8% 1.0% 0.4% 0.4%Arapahoe County 4.7% 6.2% 7.6% 3.0% 3.3%

Per capita outs tanding debt 660$ 529$ 461$ 1,160$ 1,058$

2004-05 2005-06 2006-07 2007-08 2008-09 (3)

General obligation bonds 171,915,000$ 229,170,000$ 221,230,000$ 212,925,000$ 336,955,000$ Certificates of participation 2,595,000 1,315,000 - - - Notes payable - - - - -

Total debt outs tanding 174,510,000$ 230,485,000$ 221,230,000$ 212,925,000$ 336,955,000$

Total debt outs tanding as a percentage of:

Es tim ated actual property value 1.4% 1.7% 1.6% 1.5% 2.3%

Final as sess ed property value 10.9% 13.7% 12.7% 11.6% 18.0%

Personal incom e (1, 2, & 3):Adam s County 0.5% 0.4% 0.4% 0.5% - Arapahoe County 3.9% 3.1% 3.4% 3.7% -

Per capita outs tanding debt 938$ 1,236$ 1,126$ 1,040$ 1,750$

Note 1: Pers onal incom e for each county was bas ed on population es tim ates provided by dis trict planning office and personal incom e populationdata provided by the United States Cens us Bureau.

Source: http://quickfacts .ccensus .gov/qfd/s tates /08/08001.htm lNote 2: Data reported prior to 2007-08 is based on population s tatis tics as of 2007-08. Prior period data was not available in this form at.Note 3: County population data for 2008-09 were not available at tim e of printing.Note 4: This schedule consolidates data from the governm ental s tatem ents that utilize the m odified accrual bas is of accounting.

Fiscal Year (4)

Fiscal Year (4)

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Direct and Overlapping Governmental Activities Debt As of June 30, 2009 (Unaudited)

125

Direct and Overlapping Governmental Activities Debt

Gross Debt Outs tanding (2)

Percentage Applicable to Aurora Public Schools (3)

Am ount Applicable to Aurora Public

Schools

Direct:Aurora Public Schools 336,955,000$ 100% $336,955,000

Overlapping:Murphy Creek Metro Dis trict No. 3 276,000,000$ 100% 276,000,000$ Sand Creek Metropolitan Dis trict 59,840,000 90% 53,856,000 Southlands Metro Dis trict No. 1 58,940,000 100% 58,940,000 Adonea Metro Dis trict No. 2 35,456,618 100% 35,456,618 City of Aurora 32,045,000 63% 20,188,350 Conservatory Metro Dis trict 25,045,000 100% 25,045,000 Aurora CentreTech Metropolitan Dis trict 18,975,000 100% 18,975,000 Cross Creek Metropolitan Dis trict No. 2 15,580,000 100% 15,580,000 Sterling Hills Wes t Metropolitan Dis trict 15,035,000 100% 15,035,000 Tower Metropolitan Dis trict 14,405,000 100% 14,405,000 Traditions Metro Dis t. No. 2 10,156,613 100% 10,156,613 Eas tpark 70 Metro Dis trict 8,380,000 100% 8,380,000 Aurora Singletree Metropolitan Dis trict 8,190,000 100% 8,190,000 Sterling Hills Metropolitan Dis trict 1,955,000 90% 1,759,500 Heather Gardens Metropolitan Dis trict 550,000 100% 550,000 Airways Bus iness Center 83,953 100% 83,953

Total overlapping debt 580,637,184 562,601,034

Total direct and overlapping debt $917,592,184 $899,556,034

Note 1: Source inform ation provided by individual jurisdictions . Overlapping governm ents without general obligation debt are not shown.Note 2: Represents general obligation debt, as reported by the various governm ent dis tricts . Note 3: Percentages based on geographical es tim ates prepared by APS Planning Departm ent.

Jurisdiction (1)

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Legal Debt Margin Information Last Ten Fiscal Years (Unaudited)

126

Legal Debt Margin Information

Fiscal Year

Ended

Gross Certified Assessed Valuation

(1)

Debt Lim itation (20% of

Assessed)

Gross Bonded Debt Outs tanding

(2)

Percent of Legal Debt

IncurredLegal Debt

Margin

Debt Service Funds Available

(3)Net

Bonded Debt

Ratio of Net Bonded Debt to Assessed

Value

Net Bonded Debt PerCapita

2000 1,187,896,910$ 237,579,382$ 103,100,000$ 43.40% 134,479,382$ 24,786,964$ 78,313,036$ 6.59% 458$ 2001 1,237,612,750 247,522,550 88,740,000 35.85% 158,782,550 28,863,166 59,876,834 4.84% 325 2002 1,463,099,660 292,619,932 78,945,000 26.98% 213,674,932 37,046,260 41,898,740 2.86% 227 2003 1,515,660,890 303,132,178 209,640,000 69.16% 93,492,178 35,055,624 174,584,376 11.52% 943 2004 1,550,835,680 310,167,136 192,555,000 62.08% 117,612,136 30,461,526 162,093,474 10.45% 873 2005 1,601,196,980 320,239,396 171,915,000 53.68% 148,324,396 23,549,745 148,365,255 9.27% 798 2006 1,693,387,380 338,677,476 229,170,000 67.67% 109,507,476 21,481,890 207,688,110 12.26% 1,114 2007 1,742,575,470 348,515,094 221,230,000 63.48% 127,285,094 28,864,952 192,365,048 11.04% 979 2008 1,846,735,840 369,347,168 212,925,000 57.65% 156,422,168 37,921,217 175,003,783 9.48% 855 2009 1,876,865,590 375,373,118 336,955,000 89.77% 38,418,118 43,618,552 293,336,448 15.63% 1,523

Note 1: Represents gross amount which includes the tax increm ent dis trict.Note 2: Represents general obligation bondsNote 3: This schedule consolidates data from the governm ental s tatem ents that utilize the m odified accrual bas is of accounting.

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited)

127

Fiscal Year

District Population

Estimate (1)

Per Capita Income: Adams

County (2)

Per Capita Income:

Arapahoe County (2)

Personal Income: Adams

County (2)

Personal Income:

Arapahoe County (2)

Unemployment Rate (3)

October Funded Pupil

Count (4)

Charter School Funded Pupil

Count (4)High School

Graduates (5)

1999-00 170,858 24,780$ 38,277$ 8,775,741$ 18,459,764$ 2.5% 28,124 - 1,170 2000-01 184,304 26,721 42,824 9,811,286 21,052,835 2.2% 28,469 444 1,000 2001-02 184,726 27,464 45,285 10,355,847 22,791,504 3.5% 29,534 425 1,080 2002-03 185,148 27,605 44,511 10,300,515 22,710,325 6.1% 30,641 419 1,170 2003-04 185,570 27,438 43,914 10,464,981 22,649,938 6.6% 30,638 449 1,241 2004-05 185,992 28,119 45,330 10,967,707 23,663,129 6.9% 30,247 428 1,354 2005-06 186,414 29,001 47,039 11,664,586 24,898,187 5.2% 30,757 918 1,316 2006-07 196,475 29,783 49,458 12,272,985 26,420,892 5.3% 30,424 1,066 1,439 2007-08 204,638 30,351 50,947 12,772,840 27,679,930 4.8% 29,983 1,575 1,405 2008-09 192,547 - - - - 9.4% 30,434 2,174 -

Note 1: Population data were obtained from the US Census data for years 2000, 2005, 2006, and 2007 (FY 2001, 2006, 2007, and 2008). Years 2002-2005were estimated based on the assumption that the increase was steady during this four year period. Prior to 2001, estimates were based on a percentageof the city of Aurora's population.

Source: http://factfinder.census.govNote 2: The data for Adams and Arapahoe counties were obtained from the Bureau of Economic Analysis. Data for 2009 were not available at the time of print.Source: http://www.bea.gov/regional/reis/dril.cfmNote 3: Source is the City of Aurora's Comprehensive Annual Financial Report.Source: http://www.auroragov.org/stellent/groups/public/documents/article-publication/417995.pdfNote 4: Funded pupil count provided by Colorado Department of Education official October first enrollment data. Note 5: High school graduate counts obtained from Colorado Department of Education. Data for 2009 graduates were not available at the time of print.Source: http://www.cde.state.co.us/cdereval/download/spreadsheet/2008Grads/1-2008Grad&CompRatesbyGenderRace-District.xls

Demographic and Economic Statistics

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Principal Employers Current Year and Nine Years Ago (Unaudited)

128

Percentage Percentage Employer Employees Rank of workforce Employees Rank of workforce

Buckley Air Force Base 12,817 1 32.51% 4,234 1 26.07%Cherry Creek Schools 7,174 2 18.20%City of Aurora 3,826 3 9.71% 2,249 2 13.85%Aurora Public Schools 3,786 4 9.60% 2,200 3 13.54%University of Colorado Health Sciences C 3,300 5 8.37%Raytheon 2,600 6 6.60% 1,590 5 9.79%ADT Security Systems 1,585 7 4.02% 1,100 6 6.77%Kaiser Permanente 1,493 8 3.79%University of Colorado Hospital 1,458 9 3.70%The Medical Center of Aurora 1,380 10 3.50% 900 7 5.54%Hughes Aircraft 1,600 4 9.85%TRW 811 8 4.99%OEA, Inc. 810 9 4.99%US West 750 10 4.62%

Total Employees 39,419 100.00% 16,244 100.00%

Note 1: Most recent available information is presented. Data after 2007 not available.Source: Aurora Economic Development Council, current data unavailable at time of print.Source: http://www.auroraedc.com/AuroraEDC_FactsAndFigures_LargestEmployers.aspx

2007(1) 1998

Principal Employers

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Full-time Equivalent District Employees by Type Last Ten Fiscal Years (Unaudited)

129

129

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Adm inis trativePrincipals 42.00 43.00 43.00 43.00 43.00 43.00 46.00 46.00 46.00 46.00Ass is tant principals 40.50 42.60 42.50 44.50 45.00 42.50 40.50 43.00 45.00 36.00Other 51.85 53.60 65.90 70.40 69.40 74.15 78.40 60.00 66.50 63.50

Total adm inis tration 134.35 139.20 151.40 157.90 157.40 159.65 164.90 149.00 157.50 145.50

Ins tructionElem entary school teachers 634.27 652.49 674.48 697.22 693.36 678.85 688.80 714.96 709.52 668.45Middle school teachers 303.17 308.56 324.30 325.26 337.08 336.88 345.16 334.66 325.14 338.62High school teachers 327.50 326.00 331.40 344.85 354.55 358.44 355.85 358.19 369.02 363.30Other teachers 243.04 237.32 273.21 276.44 263.19 262.11 261.55 315.91 284.74 253.81Teaching ass is tants 288.38 283.03 282.65 254.13 322.96 321.58 313.68 334.59 333.53 307.46Educational ass is tants 50.60 63.07 84.18 96.34 105.43 113.35 117.19 123.65 120.79 123.55Com m unity liaison 8.97 7.01 6.01 8.01 7.01 6.01 6.01 3.50 3.64 4.51Other 26.87 29.32 43.67 47.17 58.72 56.21 55.27 28.61 29.27 24.12

Total ins truction 1,882.80 1,906.80 2,019.90 2,049.42 2,142.30 2,133.43 2,143.51 2,214.07 2,175.65 2,083.81

Pupil servicesDean of s tudents 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24.00 26.00 23.00Counselors 42.00 38.50 26.50 24.30 44.00 42.10 35.74 37.50 38.80 37.00Health profess ionals 60.95 60.40 32.70 60.84 22.00 23.00 23.00 68.76 68.98 71.55Media specialis ts 46.78 38.30 24.50 21.20 20.20 16.30 12.80 11.00 6.50 10.00Social/psychology workers 30.50 27.60 27.40 32.60 32.30 33.80 32.80 39.20 39.40 39.60Other 0.00 0.00 1.00 1.00 2.00 8.70 10.70 13.60 30.00 31.70

Total pupil services 180.23 164.80 112.10 139.94 120.50 123.90 115.04 194.06 209.68 212.85

Other supportClerical/secretarial 214.33 222.40 241.20 247.56 263.53 264.08 268.90 234.10 231.73 267.11Cus todial 145.65 142.65 142.15 163.26 168.51 165.64 188.39 175.89 193.89 193.89Other 203.00 220.35 207.75 212.12 218.77 224.89 212.53 353.02 354.16 343.24

Total other support 562.98 585.40 591.10 622.94 650.81 654.61 669.82 763.01 779.78 804.24

Total 2,760.36 2,796.20 2,874.50 2,970.20 3,071.01 3,071.59 3,093.27 3,320.14 3,322.61 3,246.40

Source: Aurora Public Schools adopted budget. Represents budgeted FTE.

Fiscal Year

Full-time Equivalent District Employees by Type

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Operating Statistics Last Ten Fiscal Years (Unaudited)

130

Operating Statistics

Expenditures 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Instruction 92,161,168$ 96,261,465$ 106,231,856$ 117,808,442$ 116,797,972$ 117,607,489$ 124,696,748$ 140,605,783$ 148,010,692$ 152,048,858$ Pupil services 10,140,325 9,956,246 9,928,888 10,600,233 10,648,110 11,274,583 10,062,326 11,730,010 13,803,829 14,059,246 Instructional services 5,913,990 6,052,409 6,728,797 6,194,507 6,140,191 6,366,655 6,559,591 7,942,937 8,960,780 8,859,315 General administration 3,008,596 2,880,962 2,857,224 2,689,626 2,809,780 2,692,336 3,005,618 3,559,886 3,479,357 3,890,777 School administration 12,782,573 12,693,595 13,603,802 14,238,451 15,146,494 15,737,219 16,576,305 17,374,886 18,565,913 19,224,010 Business administration 2,078,168 1,870,790 2,084,226 2,106,527 2,039,744 2,272,416 2,442,075 2,871,689 3,297,557 3,392,558 Operations and maintenance 14,433,863 16,099,395 17,700,025 18,603,277 19,351,246 20,747,185 22,902,324 23,629,932 24,807,883 25,344,722 Pupil transportation 4,477,851 4,970,541 5,203,445 5,518,601 5,292,696 5,407,373 5,614,594 5,782,111 6,284,143 6,353,741 Personnel data services 4,208,711 4,603,338 5,150,169 5,300,191 5,548,481 6,065,656 6,657,145 10,861,372 9,237,655 10,341,148 Other support services 1,378,924 1,050,564 1,020,473 840,944 2,392,314 477,234 752,588 882,714 792,713 594,896

Total operating expenditures (1) 150,584,169$ 156,439,305$ 170,508,905$ 183,900,799$ 186,167,028$ 188,648,146$ 199,269,314$ 225,241,320$ 237,240,522$ 244,109,271$

Funded pupil count (2) 28,124 28,469 29,534 29,944 30,163 29,821 30,361 30,424 29,983 30,434

Cost per pupil, per basis of accountingModified accrual basis 5,354$ 5,495$ 5,773$ 6,141$ 6,172$ 6,326$ 6,563$ 7,403$ 7,913$ 8,021$ Percentage change 5.57% 2.63% 5.58% 11.76% 6.91% 2.49% 3.75% 12.80% 6.88% 1.37%

-$ -$ 214,483,769$ 229,556,401$ 240,076,563$ 254,426,635$ 266,425,488$ 279,147,130$ 301,138,012$ 308,600,275$ Full accrual basis -$ -$ 7,262$ 7,666$ 7,959$ 8,532$ 8,775$ 9,175$ 10,044$ 10,140$ Percentage change - - n/a 5.56% 3.82% 7.19% 2.85% 4.56% 9.46% 0.96%

Percentage of students receiving free or reduced-price meals (4) N/A N/A 46.0% 41.8% 42.0% 48.0% 49.4% 54.0% 56.0% 59.6%

Note 1: General Fund operating expenditures exclude debt service & facilities acquisition and improvements program expenditures.Note 2: CDE audited October funded pupil count based on actual enrollment for fiscal year 2008-09. Excludes charter schools.Source: http://www.cde.state.co.us/cdefinance/download/spreadsheet/All08Final.xlsNote 3: The district implemented GASB Statement 34 to report the full accrual basis of accounting. Implementation was complete as of fiscal year 2001-02.Note 4: Percentage of students receiving free or reduced-price meals data not available before 2001-02.Source: Aurora Public Schools Nutrition Services Department.

Fiscal Year

Total operating expenditures per governmental statement of activities (3)

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO Teacher Salaries Last Ten Fiscal Years (Unaudited)

131

Teacher Salaries

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (3)Aurora Public Schools 42,171$ 42,531$ 44,831$ 47,823$ 47,665$ 48,259$ 48,357$ 51,303$ 52,293$ -$ State of Colorado 38,163 39,184 40,659 42,680 43,330 43,965 44,456 45,831 48,485 -

Teaching s taff (2) - - - - - - 1,321 1,405 1,436 1,411 Pupil-teacher ratio (3) - - - - - - 23 24 23 25

Salary grades (4)

Educational Class ification 2007 2008 2009 2007 2008 2009

BA 34,267$ 35,672$ 37,295$ -$ 43,701$ 46,361$ BA + 15 hours 35,247 36,692 38,362 - 49,070 50,904 BA + 30 hours 36,216 37,701 39,416 - 51,680 54,075 BA + 45 hours 37,194 38,719 40,480 - 55,137 58,280 MA 38,182 39,747 41,556 - 54,858 56,852 MA + 15 hours 39,153 40,758 42,612 - 63,589 65,107 MA + 30 hours 40,124 41,769 43,669 - 69,289 70,742 MA + 45 hours 41,107 42,792 44,739 - 70,045 73,662 MA + 60 hours 42,081 43,806 45,799 - 75,561 77,794 MA + 75 hours 43,055 44,820 46,859 - 77,969 81,006 PhD 44,032 45,837 47,923 - 72,987 76,082

Note 1: Data obtained from Colorado Departm ent of Education webs ite http://www.cde.s tate.co.us .Note 2: Represents full-tim e, licensed class room teachers as quantified by Colorado Departm ent of Education.Source: http://www.cde.s tate.co.us /cdereval/download/PDF/2008Staff/PupilMem bershipandTeacherData.pdfNote 3: Licensed teacher data required for pupil-teacher ratio not available prior to 2005-2006.Note 4: Data was not available for years prior to 2005-2006.Note 5: Data provided by dis trict Hum an Resources Departm ent. Average salary data for each range not available prior to 2007-2008.

Fiscal Year

Average Salary in Each Range (5)

Average Teacher Salaries (1)

Base Salary (5)

JOINT SCHOOL DISTRICT NO. 28-J OF THE COUNTIES OF ADAMS AND ARAPAHOE, COLORADO School Building Information Last Ten Fiscal Years (Unaudited)

132

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 (2)

Elementary Schools Num ber of s ites 31 31 31 31 31 31 32 32 32 29 Square feet 1,371,880 1,371,880 1,371,880 1,373,803 1,374,330 1,413,403 1,459,472 1,492,111 1,559,970 1,500,272 Capacity 14,817 14,817 14,817 14,817 14,817 15,320 16,225 16,530 16,055 14,240 Enrollm ent 15,390 15,642 15,530 15,492 15,366 15,228 14,966 14,220 14,809 14,079 K-8 Schools Num ber of s ites - - - - - 1 2 2 2 4 Square feet - - - - - 76,072 152,144 152,144 230,244 278,244 Capacity - - - - - 676 1,352 1,352 1,352 2,291 Enrollm ent - - - - - 617 938 1,184 1,085 2,065

Middle Schools Num ber of s ites 7 7 7 7 7 7 7 7 7 7 Square feet 782,839 782,839 782,839 782,839 782,839 783,111 828,395 828,395 843,557 844,997 Capacity 7,814 7,814 7,814 7,814 7,814 7,814 7,814 7,814 7,814 7,814 Enrollm ent 6,660 6,924 7,088 7,104 7,043 6,904 6,641 6,343 6,536 5,953

High Schools Num ber of s ites 5 5 5 5 5 5 5 5 5 5 Square feet 919,707 919,707 919,707 919,707 942,520 942,520 942,520 1,006,213 1,069,938 1,069,938 Capacity 7,035 7,035 7,035 7,035 7,035 7,035 7,035 7,238 7,640 7,843 Enrollm ent 6,833 7,113 7,481 7,668 7,807 7,973 7,973 8,236 8,177 8,337 Alternative/Technical Schools Num ber of s ites 1 1 1 1 1 1 1 1 4 3 Square feet 40,166 40,166 40,166 40,166 40,166 41,593 41,593 41,593 199,595 195,741 Capacity 402 402 402 402 402 402 402 402 402 N/A Enrollm ent 221 224 247 245 266 321 239 393 1,283 1,544 Total Num ber of s ites 44 44 44 44 44 45 47 47 50 48 Square feet 3,114,592 3,114,592 3,114,592 3,116,515 3,139,855 3,256,699 3,424,124 3,520,456 3,903,304 3,889,192 Capacity 30,068 30,068 30,068 30,068 30,068 31,247 32,828 33,336 33,263 32,188 Enrollm ent 29,104 29,903 30,346 30,509 30,482 31,043 30,757 30,376 31,890 31,978

Note 1: Student count based on actual enrollm ent.Note 2: Capacity inform ation not available at tim e of print.Source: Aurora Public Schools Cons truction Managem ent provided square footage am ounts .

Aurora Public Schools Divis ion of Support Services Planning Departm ent provided all other inform ation for s tatem ent.

Fiscal Year (1)

School Building Information

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