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COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2015

GLENDALE UNION HIGH SCHOOL DISTRICT

Glendale Union High School District No. 205 7650 North 43rd Avenue Glendale, Arizona 85301

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205

GLENDALE, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015

Issued by: Finance Department


TABLE OF CONTENTS

INTRODUCTORY SECTION Page Letter of Transmittal i ASBO Certificate of Excellence vii GFOA Certificate of Achievement viii Organization Chart ix List of Principal Officials x FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 5 BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position 18 Statement of Activities 19

Fund Financial Statements: Balance Sheet – Governmental Funds 22 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 25 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the Statement of Activities 28 Statement of Net Position – Proprietary Funds 29


TABLE OF CONTENTS

FINANCIAL SECTION Page BASIC FINANCIAL STATEMENTS

Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 30 Statement of Cash Flows – Proprietary Funds 31 Statement of Assets and Liabilities – Fiduciary Funds 32

Notes to Financial Statements 33

REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues Expenditures and Changes in Fund Balances –

Budget and Actual: General Fund 60

Schedule of the Proportionate Share of the Net Pension Liability 61

Schedule of Contributions 61 Schedule of Funding Progress 62 Notes to Required Supplementary Information 63

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 69


TABLE OF CONTENTS

FINANCIAL SECTION Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Special Revenue Funds: Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 84

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 106

Capital Projects Funds:

Combining Balance Sheet 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 110 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 112

Agency Fund:

Statement of Changes in Assets and Liabilities 118


TABLE OF CONTENTS

STATISTICAL SECTION Page Financial Trends:

Net Position by Component 120 Expenses, Program Revenues, and Net (Expense)/Revenue 121 General Revenues and Total Changes in Net Position 123 Fund Balances – Governmental Funds 125 Governmental Funds Revenues 127 Governmental Funds Expenditures and Debt Service Ratio 129 Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 131

Revenue Capacity:

Primary Assessed Value and Estimated Actual Value of Taxable Property by Class 132 Secondary Assessed Value of Taxable Property by Class 133 Property Tax Assessment Ratios 134 Direct and Overlapping Property Tax Rates 135 Principal Property Taxpayers 136 Property Tax Levies and Collections 137

Debt Capacity:

Outstanding Debt by Type 138 Direct and Overlapping Governmental Activities Debt 139 Direct and Overlapping General Bonded Debt Ratios 139 Legal Debt Margin Information 140


TABLE OF CONTENTS

STATISTICAL SECTION Page

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics 141 Principal Employers 142

Operating Information: Full-Time Equivalent District Employees by Type 143 Operating Statistics 145 Teacher Demographic Information 146

Capital Assets Information 148

INTRODUCTORY SECTION

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Empowering All Students for the Choices and Challenges of the Twenty-First Century

Apollo ■ Cortez ■ Glendale ■ Greenway ■ Independence ■ Moon Valley ■ Sunnyslope ■ Thunderbird ■ Washington ■ Metrocenter Academy

December 10, 2015 Citizens and Governing Board Glendale Union High School District No. 205 7650 North 43rd Avenue Glendale, Arizona 85301 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Glendale Union High School District No. 205 (District) for the fiscal year ended June 30, 2015. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2015, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

ADMINISTRATIVE CENTER GOVERNING BOARD 7650 N. 43rd Avenue Patty Kennedy, President ■ Don DeBusk, Clerk Glendale, AZ 85301-1661 Rick Fields ■ Vicki L. Johnson ■ Pam Reicks Tel 623-435-6000 Fax 623-435-6078 SUPERINTENDENT www.guhsdaz.org Eugene E. Dudo

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The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 58 public school districts located in Maricopa County, Arizona. It is the second largest high school district in Arizona providing a program of public education from grade nine through grade twelve. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component unit combined with the District for financial statement purposes and the District are not included in any other governmental entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore, and athletic functions.

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Blended component units, although legally separate entities, are, in substance, part of the District’s operations. The Glendale Union High School District No. 205 Employee Benefit Trust is responsible for providing health insurance for the District’s employees. The District’s Governing Board appoints the Trust’s Board of Directors. The Glendale Union High School District No. 205’s Employee Benefit Trust provides services entirely to the District and therefore has been included as an Internal Service Fund in accordance with the criteria established by GASB. The District, organized in 1911, encompasses approximately 60 square miles and is situated in the central portion of Maricopa County. Located within the greater Phoenix metropolitan area, the District lies about 10 miles northwest of downtown Phoenix. The two principal cities within the District are the City of Glendale, Arizona and the City of Phoenix, Arizona. The District and all nine traditional schools have been rated “A” by the Arizona Department of Education (ADE). ADE awards A-F Letter Grades to all districts and schools based on a point system in which districts and individual schools are rated on several categories. Those categories encompass the percentage of students who meet or exceed Arizona’s Instrument to Measure Standards (AIMS - The state Accountability Test), dropout rate, graduation rate, English Language Learner proficiency rates, improvement among a school’s lowest-performing students and long-term student improvement. High schools are rated by their annual graduation rate and dropout rate as well. Other recent recognitions, achievements, and accolades include:

America’s Best High Schools U.S. News & World Report, 2008-2015 Beat the Odds Gold Schools, 2014 A+ School Washington High School, 2014 Arizona Teacher of the Year, Arizona Education Foundation, 1986, 2011 Advanced Placement Honor Roll District, 2013, 2015 Regional Career and Technical Education Administrator of the Year, 2014 Arizona Ambassador Teacher of Excellence, Arizona Education Foundation, 2014 GUHSD Parent Satisfaction was at 95% for the 2014-2015 school year Postsecondary education rates for GUHSD are 81% Extracurricular participation in GUHSD was at 85% in 2014-2015 GUHSD had a graduation rate of 87.9% (four year period) and 92.2% (five year period) GUHSD’s dropout rate of 1.2% is among the lowest in the state and nation. The state

drop-out rate is 3.5%. National Advanced Placement District of the Year, 2013 Students have the opportunity to earn the Advanced Placement International Diploma

(APID), which is a globally recognized award for students interested in pursuing university study outside of their native country.

More than 3,328 Advanced Placement (AP) tests were taken for college credit in 2015 by GUHSD students.

The Arizona Auditor General reports that the District allocates 56.7% of its spending to the classroom which is more than the state average of 53.8%.

The Arizona Auditor General reports that the District has administrative costs of 8.1%, well below national and state averages of 10.9% and 10.0% respectively.

District teachers receive additional pay based on performance.

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A nationally-recognized teacher mentor program is in place.

The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund, and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue, therefore a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The Joint Legislative Budget Committee (JLBC) reports in August 2015 that Arizona State FY 2015 General Fund revenues were $381 million above forecast. Given higher revenues and lower spending, a projected $(132) million shortfall is now a $325 million balance at the end of FY 2015. As a result, no Rainy Day Fund transfer will be needed. The FY 2015 results create a larger beginning balance for FY 2016. As a result, a budgeted $(35) million shortfall turns into a $278 M balance by the end of FY 2016. The higher 2015 revenue base is likely to result in higher 2016 collections and result in some permanent gain in state resources. However, these estimates do not include the potential impact of the ongoing K-12 inflation. A ruling in favor of K-12 inflation plaintiffs could cost over $250 million and offset the potential revenue gain. August 2015 collections of $649.1 million were 1.4% above the prior year, and were $(5.4) million below the enacted budget forecast. Year-to-date, base General Fund revenues (excluding Urban Revenue Sharing and Fund Transfers) are 3.9% above the prior year, and are $32.2 million above forecast. The state added a net total 38,100 nonfarm jobs from July 2015 to August 2015. Compared to the same month in the prior year, Arizona added 52,600 net new jobs, which resulted in a year-over-year growth rate of 2.1%. Arizona’s seasonally adjusted unemployment rate increased two-tenths of a percentage point from 6.1% in July to 6.3% in August. The U.S. seasonally adjusted unemployment rate declined two-tenths of a percentage point from 5.3% in July to 5.1% in August. A year ago, the Arizona seasonally adjusted rate was 6.7% and the U.S. rate was 6.1%. Maricopa County is located in the south-central portion of Arizona. Maricopa County is located in the south-central portion of Arizona. Maricopa County is one of the largest counties in the United States by area having a land area greater than that of seven states. Current population is projected at 4.1 million, which ranks fourth among the nation's counties. It is by far Arizona's

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most populous county, encompassing well over half of the state's residents. Maricopa County’s August 2015 unemployment rate was 5.7%, which is less than the Arizona rate of 6.3%. The county seat is Phoenix, which is Arizona's largest city and capital. Phoenix is the capital, and largest city, of the state of Arizona. With population of 1.5 million it is the most populous state capital in the United States, as well as the sixth most populous city nationwide. Phoenix is the anchor of the Phoenix metropolitan area, also known as the Valley of the Sun, which in turn is a part of the Salt River Valley. The city is the 13th largest metro area by population in the United States, with approximately 4.3 million people in 2010. In addition, Phoenix is the county seat of Maricopa County and is one of the largest cities in the United States by land area. The population growth rate of the Phoenix metro area has been nearly 4% per year for the past 40 years. While that growth rate slowed during the Great Recession, it has already begun to rebound. Phoenix is the cultural center of the Valley of the Sun, as well as the rest of Arizona. Phoenix is currently home to four Fortune 500 companies: electronics corporation Avnet, mining company Freeport-McMoRan, retailer PetSmart and waste hauler Republic Services. Honeywell's Aerospace division is headquartered in Phoenix, and the valley hosts many of their avionics and mechanical facilities. Intel has one of their largest sites in the area, employing about 12,000 employees, the second largest Intel location in the country. The city is also home to: the headquarters of U-HAUL International; Best Western; and Apollo Group, parent of the University of Phoenix. US Air/American Airlines is the largest carrier at Sky Harbor International Airport in Phoenix. Mesa Air Group, a regional airline group, is headquartered in Phoenix. The military has a significant presence in Phoenix, with Luke Air Force Base located in the western suburbs. Long-term Financial Planning. The District has a current student population of approximately 15,100. Student populations are expected to grow slightly over the next several years and are expected to reach 15,500 by the year 2022-23. Current school facilities are of adequate size to meet this need. The average age of the school buildings is 39 years. During 2014-15 the State of Arizona reduced District capital funding by approximately $5.2 million. In addition the State of Arizona deferred approximately $17.7 million of District state aid revenue to be paid in July 2015. In July 2014, the Superior Court ruled that the state must “reset” the per pupil formula amount to adjust for full inflation that was not provided during FY 2009-2013. The actual timing of any payments is unknown, as the court ruling is expected to be appealed by the state. In addition the court has scheduled a hearing to consider whether the state is liable for any back payments associated with the foregone inflation adjustments. On November 8, 2011 District voters approved an $80 million bond. The District continues to use the funds to make necessary building replacement, renovation and health and safety improvements to school campuses. In September of 2015 the district issued the final $8.4 million of these bonds. District voters will consider a new $70 million bond issue for facility renovation and capital expenditures on November 3, 2015. On November 4, 2014, District voters approved a five year 10% Maintenance and Operation override totaling $7.9 million in 2015-16.

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On November 7, 2000, Arizona voters passed Proposition 301, which increased the state sales tax rate from 5% to 5.6%. During 2014-15, $390 million additional dollars raised through the increased sales tax were earmarked for a Classroom Site Fund for K-12 education. The District received $6.0 million in Proposition 301 funding in fiscal year 2014-15 which has been spent or earmarked for teacher base compensation increases, performance awards and dropout prevention programs. AWARDS AND ACKNOWLEDGMENTS Awards. The Association of School Business Officials (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2014. In addition, the Government Finance Officers Association (GFOA) 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, 2014. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2015 certificates. Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted,

Brian Capistran Louis Wiegand, CPA Superintendent Chief Financial Officer

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Association of School Business Officials International

The Certificate of Excellence in Financial Reporting Award

is presented to

Glendale Union High School District No. 205

For Its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2014

The CAFR has been reviewed and met or exceeded

ASBO International’s Certificate of Excellence standards

Mark C. Pepera, MBA, RSBO, SFO John D. Musso, CAE, RSBA President Executive Director

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LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Don DeBusk, President

Patty Kennedy, Clerk

Pam Reicks, Member

Vicki L. Johnson, Member

Sue Maland, Member

ADMINISTRATIVE STAFF

Brian Capistran, Superintendent

Matt Belden, Assistant Superintendent of Operations and Athletics

Craig Mussi, Assistant Superintendent of Curriculum and Instruction Allison Mattingly, Assistant Superintendent of Human Resources and Professional Development

Kim Mesquita, Administrator of Community Relations

Louis Wiegand, CPA, Chief Financial Officer

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT Governing Board Glendale Union High School District No. 205 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Glendale Union High School District No. 205 (District), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Glendale Union High School District No. 205, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 1, the District implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, for the year ended June 30, 2015, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.

TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com

3033 N. Central Ave., Suite 300Phoenix, Arizona 85012

Tel (602) 277-9449Fax (602) 277-9297

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, and net pension liability information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2015, on our consideration of Glendale Union High School District No. 205’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Glendale Union High School District No. 205’s internal control over financial reporting and compliance.

HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants

December 10, 2015

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

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30, 2015

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As management of the Glendale Union High School District No. 205 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2015. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS

The District’s total net position of governmental activities increased $2.8 million, which

represents a 9 percent increase from the prior fiscal year as a result of current year pension activity and the retirement of $15.6 million of bonds and bond premium.

General revenues accounted for $119.1 million in revenue, or 82 percent of all current

fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $26.9 million or 18 percent of total current fiscal year revenues.

The District had approximately $143.2 million in expenses related to governmental

activities, a decrease of 1 percent from the prior fiscal year.

Among major funds, the General Fund had $94.0 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $94.8 million in expenditures. The General Fund’s fund balance decrease from $7.3 million at the prior fiscal year end, to $6.1 million at the end of the current fiscal year was primarily due to unrestricted capital expenditures in excess of revenues totaling approximately $1.3 million.

Net position for the Internal Service Fund decreased $376,068 from the prior fiscal year.

Operating expenses of $15.3 million exceeded operating revenues of $14.8 million at the end of the current fiscal year.

OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements.



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OVERVIEW OF FINANCIAL STATEMENTS The statement of net position presents information on all of the District’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). The government-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, operation of non-instructional services, and interest on long-term debt. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.



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OVERVIEW OF FINANCIAL STATEMENTS Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Debt Service, and Bond Building Funds, both of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Proprietary funds. The District maintains one type of proprietary fund. The internal service fund is an accounting device used to accumulate and allocate costs internally among the District’s various functions. The District uses its internal service fund to account for its employee benefit trust. Because this service predominantly benefits governmental functions, it has been included within governmental activities in the government-wide financial statements. The employee benefit trust, although a legally separate component unit, functions for all employees of the District, and therefore has been included as an internal service fund. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, fiduciary funds do not have a measurement focus.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund as required supplementary information.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows were less than liabilities and deferred inflows by $28.3 million at the current fiscal year end. The largest portion of the District’s positive net position reflects its investment in capital assets (e.g., land, land and improvements, buildings and improvements, vehicles, furniture and equipment and construction in progress), less any related outstanding debt used to acquire those assets. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2015 and June 30, 2014.

As ofJune 30, 2015

As of June 30, 2014

Current and other assets $ 79,674,291 $ 93,766,416 Capital assets, net 182,265,744 180,064,301

Total assets 261,940,035 273,830,717

Deferred outflows 14,965,506 2,239,906

Current and other liabilities 25,321,759 23,023,470 Long-term liabilities 257,999,050 160,784,451

Total liabilities 283,320,809 183,807,921

Deferred inflows 21,852,285

Net position: Net investment in capital assets 68,571,880 65,519,857 Restricted 10,735,131 12,156,390 Unrestricted (107,574,564) 14,586,455

Total net position $ (28,267,553) $ 92,262,702 At the end of the current fiscal year the District reported positive balances in two categories of net position, unrestricted net position, which is normally used to meet the District’s mission reported a deficit of $107.6 million. The deficit arose because of the implementation of GASB Statement No. 68 which required the District to record a liability for its proportionate share of the state pension plan’s unfunded liability. The District reported positive balances in all three categories of net position in the prior fiscal year.



Page 9

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The District’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions that had an impact on the Statement of Net Position.

The principal retirement of $14.7 million of general obligation bonds. The addition of $13.4 million in capital assets through various school improvements and

purchases of vehicles, furniture and equipment. The addition of $113.9 million in pension liabilities due to the implementation of new

pension reporting standards.

Changes in net position. The District’s total revenues for the current fiscal year were $146.0 million. The total cost of all programs and services was $143.2 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2015 and June 30, 2014.

Fiscal Year Ended

June 30, 2015

Fiscal Year Ended

June 30, 2014 Revenues:

Program revenues: Charges for services $ 8,543,788 $ 5,783,298 Operating grants and contributions 15,957,107 14,828,503 Capital grants and contributions 2,417,024 2,193,458

General revenues: Property taxes 55,443,562 54,868,982 Investment income 231,113 256,701 Unrestricted county aid 5,052,003 4,983,135 Unrestricted state aid 57,506,823 56,425,097 Unrestricted federal aid 874,648 279,751 Total revenues 146,026,068 139,618,925

Expenses: Instruction 80,760,277 85,631,212 Support services – students and staff 18,621,487 16,471,428 Support services – administration 11,175,762 10,294,806 Operation and maintenance of plant services 16,464,033 16,130,826 Student transportation services 5,468,997 4,762,011 Operation of non-instructional services 6,777,999 6,555,844 Interest on long-term debt 3,960,593 4,212,301

Total expenses 143,229,148 144,058,428 Changes in net position 2,796,920 (4,439,503)

Net position, beginning, as restated (31,064,473) 96,702,205 Net position, ending $ (28,267,553) $ 92,262,702



Page 10

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The following are significant current year transactions that have had an impact on the change in net position.

Charges for services increased $2.8 million as a result of insurance proceeds received. During the year, two schools were damaged by flood and one school was damaged by fire.

Instructional expenses decreased $4.9 million from the prior year. Last year the district demolished buildings at Greenway and Thunderbird High Schools to make way for new buildings. This caused instructional expenses to be higher than normal. The current year instruction expense amount of $80.8 million is comparable to fiscal year 2012-13.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Mil

lion

s

Expenses

FY2014-15

FY2013-14



Page 11

GOVERNMENT-WIDE FINANCIAL ANALYSIS The following table presents the cost of the District’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the state and District’s taxpayers by each of these functions.

Year Ended June 30, 2015 Year Ended June 30, 2014 Total

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $ 80,760,277 $ (66,463,865) $ 85,631,212 $ (73,910,731)Support services – students and staff 18,621,487 (13,118,549) 16,471,428 (13,202,434)Support services – administration 11,175,762 (11,175,762) 10,294,806 (10,149,647)Operation and maintenance of plant services 16,464,033 (15,202,221) 16,130,826 (14,770,761)Student transportation services 5,468,997 (5,468,997) 4,762,011 (4,677,789)Operation of non-instructional services 6,777,999 (1,353,092) 6,555,844 (1,327,378) Interest on long-term debt 3,960,593 (3,528,743) 4,212,301 (3,214,429)

Total $ 143,229,148 $(116,311,229) $ 144,058,428 $ (121,253,169)

The cost of all governmental activities this year was $143.2 million.

Federal and state governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $26.9 million.

Net cost of governmental activities of $116.3 million was partially financed by general

revenues, which are made up of primarily property taxes of $55.4 million and unrestricted state aid of $57.5 million.



Page 12

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $20.7 million, a decrease of $17.9 million due primarily to the utilization of bond proceeds to renovate Greenway and Thunderbird High Schools. The General Fund comprises 29 percent of the total fund balance. Approximately $5.1 million or 84 percent of the General Fund’s fund balance is unassigned. The General Fund is the principal operating fund of the District. The decrease in fund balance of $1.2 million to $6.1 million as of fiscal year end was a result of unrestricted capital expenditures in excess of revenues totaling approximately $1.3 million. Fund balance in the Debt Service Fund decreased $627,747 for changes in bonded debt requirements. In addition, fund balance in the Bond Building Fund decreased $14.9 million primarily due to the renovations at Greenway and Thunderbird High Schools. Proprietary funds. Unrestricted net position of the Internal Service Fund at the end of the fiscal year amounted to $10.3 million. The decrease of $376,068 from the prior fiscal year was primarily due to an increase in premium expense during the year. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for changes in laws adopted by the Legislature, and an increase in students. The difference between the original budget and the final amended budget was a $224,467 increase.



Page 13

BUDGETARY HIGHLIGHTS A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant actual to budgeted variances were as follows:

Property tax revenues were $4.1 million under budget due to budgeting additional state aid as property tax revenues.

State aid and grant revenues were $4.4 million over budget due to budgeting additional state aid as property tax revenues.

Instruction expenditures were $2.6 million under budget due to planned carryover.

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $334.2 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of $11.5 million from the prior fiscal year. Total depreciation expense for the current fiscal year was $10.5 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2015 and June 30, 2014.

As of June 30, 2015

As of June 30, 2014

Capital assets – non-depreciable $ 12,245,973 $ 20,756,984Capital assets – depreciable, net 170,019,771 159,307,317

Total $ 182,265,744 $ 180,064,301 Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year end, the District had $122.0 million in long-term debt outstanding, $16.7 million due within one year. Long-term debt decreased by $16.5 million as a result of the principal retirement of $14.7 million.



Page 14

CAPITAL ASSETS AND DEBT ADMINISTRATION The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 15 percent of the total secondary assessed valuation) and the statutory debt limit on Class B bonds (the greater of 10 percent of the secondary assessed valuation or $1,500 per student). The current total debt limitation for the District is $210.5 million and the Class B debt limit is $140.3 million, which are more than the District’s total outstanding general obligation and Class B debt, respectively. Additional information on the District’s long-term debt can be found in Notes 8 through 10. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES Many factors were considered by the District’s administration during the process of developing the fiscal year 2015-16 budget. Among them:

Basic support level funding increase of $2.6 million Fiscal year 2014-15 budget balance carryforward (estimated $1.5 million) District student population (estimated 15,275) Repealed Student Success Funding of $305,000 Energy lease transfer $1.2 million Increased compensation (step) and related increases of $1.9 million Decreased healthcare costs of $1.0 million Decreased District Additional Assistance Funding of $2.5 million Increased Classroom Site Fund revenues of $400,000

Also considered in the development of the budget is the local economy and inflation of the surrounding area. Budgeted expenditures in the General Fund increased $52,536 to $93.9 million in fiscal year 2015-16. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2015-16 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Glendale Union High School District No. 205, 7650 North 43rd Avenue, Glendale, Arizona 85301-1661.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ASSETSCurrent assets:

Cash and investmentsDepositsProperty taxes receivableAccounts receivableDue from governmental entities

Total current assets

Noncurrent assets:Capital assets not being depreciatedCapital assets, net of accumulated depreciation

Total noncurrent assetsTotal assets

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refundingPension plan items

Total deferred outflows of resources

LIABILITIESCurrent liabilities:

Accounts payableCredit line payableAccrued payroll and employee benefitsCompensated absences payableAccrued interest payableUnearned revenuesObligations under capital leasesBonds payableTax anticipation notes payable

Total current liabilities

Noncurrent liabilities:Non-current portion of long-term obligations

Total noncurrent liabilitiesTotal liabilities

DEFERRED INFLOWS OF RESOURCESPension plan items

NET POSITIONNet investment in capital assetsRestricted for:

Voter approved initiativesFederal and state projectsFood serviceOther local initiativesDebt serviceCapital outlay

UnrestrictedTotal net position

Governmental Activities

$ 46,291,485119,030

6,441,9193,665,409

23,156,44879,674,291

12,245,973170,019,771182,265,744261,940,035

1,493,27013,472,23614,965,506

5,052,9406,695,000

747,186120,000

1,705,758120,875

1,243,82515,460,00011,000,00042,145,584

241,175,225241,175,225283,320,809

21,852,285

68,571,880

2,879,159661,797234,904

4,357,1351,177,7921,424,344

(107,574,564)$ (28,267,553)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF NET POSITION

JUNE 30, 2015

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

Page 18

Program Revenues

Net (Expense) Revenue and

Changes in Net Position

Functions/ProgramsGovernmental activities:

InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional servicesInterest on long-term debt

Total governmental activities

Expenses

$ 80,760,27718,621,48711,175,76216,464,0335,468,9976,777,9993,960,593

$ 143,229,148

Charges for Services

$ 6,004,775650,000

763,698

1,125,315

$ 8,543,788

Operating Grants and

Contributions

$ 6,306,4634,852,938

498,114

4,299,592

$ 15,957,107

Capital Grants and

Contributions

$ 1,985,174

431,850$ 2,417,024

Governmental Activities

$ (66,463,865)(13,118,549)(11,175,762)(15,202,221)(5,468,997)(1,353,092)(3,528,743)

(116,311,229)

General revenues:Taxes:

Property taxes, levied for general purposesProperty taxes, levied for debt service

Investment incomeUnrestricted county aidUnrestricted state aidUnrestricted federal aid

Total general revenues

Changes in net position

Net position, beginning of year, as restated

Net position, end of year

37,276,83918,166,723

231,1135,052,003

57,506,823874,648

119,108,149

2,796,920

(31,064,473)

$ (28,267,553)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2015

Page 19


FUND FINANCIAL STATEMENTS

ASSETSCash and investmentsDepositsProperty taxes receivableAccounts receivableDue from governmental entitiesDue from other funds

Total assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:

Accounts payableCredit line payableDue to other fundsAccrued payroll and employee benefitsUnearned revenuesBonds payableBond interest payableTax anticipation notes payable

Total liabilities

Deferred inflows of resources:Unavailable revenues - property taxesUnavailable revenues - intergovernmental

Total deferred inflows of resources

Fund balances (deficits):RestrictedUnassigned

Total fund balances

Total liabilities, deferred inflows of resourcesand fund balances

General

$ 7,141,952

6,051,1636,390

17,846,7822,217,271

$ 33,263,558

$ 3,409,2966,695,000

137,473

11,000,00021,241,769

5,916,765

5,916,765

973,9495,131,0756,105,024

$ 33,263,558

Debt Service

$ 17,952,794

390,756

$ 18,343,550

$

15,460,0001,705,758

17,165,758

313,315

313,315

864,477

864,477

$ 18,343,550

Bond Building

$ 7,080,962

23,709

$ 7,104,671

$ 306,823

1,227

308,050

6,796,621

6,796,621

$ 7,104,671

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205 BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2015

Page 22


Non-Major Governmental

Funds

$ 6,502,837119,030

935,3105,309,666

190,237$ 13,057,080

$ 1,336,821

2,407,508608,486120,875

4,473,690

1,649,7901,649,790

7,680,388(746,788)6,933,600

$ 13,057,080

Total Governmental

Funds

$ 38,678,545119,030

6,441,919965,409

23,156,4482,407,508

$ 71,768,859

$ 5,052,9406,695,0002,407,508

747,186120,875

15,460,0001,705,758

11,000,00043,189,267

6,230,0801,649,7907,879,870

16,315,4354,384,287

20,699,722

$ 71,768,859

Page 23

Total governmental fund balances 20,699,722$

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the funds.

Governmental capital assets 334,182,835$ Less accumulated depreciation (151,917,091) 182,265,744

Some receivables are not available to pay for current periodexpenditures and, therefore, are reported as unavailablerevenues in the funds.

Property taxes 6,230,080Intergovernmental 1,649,790 7,879,870

Deferred items related to the net cost of issuance of bondsare amortized over the life of the associated bond issue in the government-wide statements but not reported in the funds. 1,493,270

Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds.

Deferred outflows of resources related to pensions 13,472,236Deferred inflows of resources related to pensions (21,852,285) (8,380,049)

The Internal Service Fund is used by management to charge the cost of insurance to the individual funds. The assets andliabilities of the Internal Service Fund are included in theStatement of Net Position. 10,312,940

Long-term liabilities are not due and payable in the currentperiod and, therefore, are not reported in the funds.

Other postemployment benefits payable (18,131,561)Compensated absences payable (3,961,846)Obligations under capital leases (9,736,820)Net pension liability (113,921,888)Bonds payable (96,786,935) (242,539,050)

Net position of governmental activities (28,267,553)$

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITIONJUNE 30, 2015

Page 25


Revenues:Other localProperty taxesState aid and grantsFederal aid, grants and reimbursements

Total revenues

Expenditures:Current -

InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services

Capital outlayDebt service -

Principal retirementInterest and fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses):Transfer inTransfer outCapital lease agreements

Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

Fund balances, end of year

General

$ 5,102,73037,248,10650,780,535

874,64894,006,019

52,830,07010,975,3059,621,048

14,658,9594,473,618

702,9371,315,148

165,45914,762

94,757,306

(751,287)

540,944(1,187,312)

231,629(414,739)

(1,166,026)

7,271,050

$ 6,105,024

Debt Service

$ 57,38518,146,610

18,203,995

15,460,0003,417,021

18,877,021

(673,026)

45,279

45,279

(627,747)

1,492,224

$ 864,477

Bond Building

$ 45,290

45,290

14,921,755

14,921,755

(14,876,465)

(45,279)

(45,279)

(14,921,744)

21,718,365

$ 6,796,621

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2015

Page 26



Funds

$ 7,995,054

7,780,45416,782,57332,558,081

14,332,1896,084,594

525,5121,088,638

138,5425,376,4985,197,440

1,009,331657,973

34,410,717

(1,852,636)

1,187,312(540,944)

646,368

(1,206,268)

8,139,868

$ 6,933,600

Total Governmental

Funds

$ 13,200,45955,394,71658,560,98917,657,221

144,813,385

67,162,25917,059,89910,146,56015,747,5974,612,1606,079,435

21,434,343

16,634,7904,089,756

162,966,799

(18,153,414)

1,773,535(1,773,535)

231,629231,629

(17,921,785)

38,621,507

$ 20,699,722

Page 27

Net changes in fund balances - total governmental funds (17,921,785)$

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over theirestimated useful lives as depreciation expense.

Expenditures for capitalized assets 13,376,586$ Less current year depreciation (10,545,232) 2,831,354

Issuance of capital leases provide current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position. (231,629)

Some revenues in the Statement of Activities that do not provide current financialresources are not reported as revenues in the funds.

Property taxes 48,846Intergovernmental 1,098,593 1,147,439

Repayments of long-term debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement ofNet Position.

Capital lease principal retirement 1,174,790 Bond principal retirement 15,460,000 16,634,790

Governmental funds report pension contributions as expenditures. However,they are reported as deferred outflows of resources in the Statement ofNet Position. The change in the net pension liability, adjusted for deferred pension items, is reported as pension expense in the Statement of Activities.

Current year pension contributions 7,682,392Pension expense (6,657,154) 1,025,238

Some expenses reported in the Statement of Activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures in governmental funds.

Loss on disposal of assets (629,911)Amortization of issuance premium and deferred bond items 129,163Compensated absences (438,714)Other postemployment benefits payable 627,043 (312,419)

The Internal Service Fund is used by management to charge the cost of insurance to the individual funds. The changes in net position of the Internal Service Fund is reported with governmental activities in the Statement of Activities. (376,068)

Changes in net position in governmental activities 2,796,920$

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2015

Page 28


ASSETSCurrent assets:

Cash and investmentsAccounts receivable

Total current assetsTotal assets

NET POSITIONUnrestricted

Total net position

Governmental Activities:

Internal Service Funds

$ 7,612,9402,700,000

10,312,94010,312,940

10,312,940$ 10,312,940

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF NET POSITION

PROPRIETARY FUNDSJUNE 30, 2015

Page 29


Operating revenues:Contributions

Total operating revenues

Operating expenses:OtherClaimsAdjustment to prior year claims reservesPremiumsAdministrative fees

Total operating expenses

Operating income (loss)

Nonoperating revenues (expenses):Investment income

Total nonoperating revenues (expenses)

Changes in net position

Total net position, beginning of year

Total net position, end of year

Governmental Activities:

Internal Service Funds

$ 14,834,69214,834,692

160,413796,154

(1,025,289)15,330,902

13,82415,276,004

(441,312)

65,24465,244

(376,068)

10,689,008

$ 10,312,940

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2015

Page 30


GovernmentalActivities:Internal

Service Fund

Decrease in Cash and Cash Equivalents

Cash flows from operating activities:

Cash received from contributions $ 14,705,633

Cash payments to suppliers for goods and services (15,505,139)

Cash payments for claims (1,017,095)

Net cash used for operating activities (1,816,601)

Cash flows from investing activities:

Certificates of deposit sold 6,539,809

Certificates of deposit purchased (7,336,989)

Investment income 65,244

Net cash used for investing activities (731,936)

Net decrease in cash and cash equivalents (2,548,537)

Cash and cash equivalents, beginning of year 2,824,488

Cash and cash equivalents, end of year $ 275,951

Reconciliation of Cash and Cash Equivalents to the Statement of Net Position

Cash and investments $ 7,612,940

Less cash and cash equivalents not maturing in less than three months (7,336,989)

Total cash and cash equivalents $ 275,951

Reconciliation of Operating Loss to Net Cash Used For Operating Activities

Operating loss $ (441,312)

Adjustments to reconcile operating loss

to net cash used for operating activities:

Changes in assets and liabilities:

Increase in accounts receivable (129,059)

Decrease in claims payable (1,246,230)

Total adjustments (1,375,289)

Net cash used for operating activities $ (1,816,601)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS


Page 31 The notes to the basic financial statements are an integral part of this statement.

ASSETSCash and investments

Total assets

LIABILITIESDue to student groups

Total liabilities

Agency

$ 1,283,684$ 1,283,684

$ 1,283,684$ 1,283,684

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF ASSETS AND LIABILITIES

FIDUCIARY FUNDSJUNE 30, 2015

Page 32


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Glendale Union High School District No. 205 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2015, the District implemented the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. This Statement requires governments providing defined benefit pensions to recognize the long-term obligation for pension benefits as a liability, and to more comprehensively and comparably measure the annual costs of pension benefits. This Statement also enhances accountability and transparency through revised note disclosures and new required supplementary information. The more significant of the District’s accounting policies are described below. A. Reporting Entity The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component unit combined with the District for financial statement presentation purposes and the District are not included in any other governmental reporting entity. Consequently, the District’s financial statements include the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore, and athletic functions.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Blended Component Unit – Blended component units, although legally separate entities, are, in substance, part of the District’s operations. The Glendale Union High School District No. 205 Employee Benefit Trust is responsible for providing health insurance for the District’s employees. The District’s Governing Board appoints the Trust’s Board of Directors. The Glendale Union High School District No. 205’s Employee Benefit Trust provides services entirely to the District and therefore has been included as an Internal Service Fund in accordance with the criteria established by GASB. Complete audited financial statements for the component unit may be obtained at the Glendale Union High School District No. 205’s administrative offices, 7650 North 43rd Avenue, Glendale, Arizona 85301. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District and its component unit. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants 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, unrestricted county, state and federal aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. As permitted by generally accepted accounting principles the District applies the “early recognition” option for debt service payments. Property tax resources are provided in the Debt Service Fund during the current year for the payment of debt service principal and interest due early in the following year (less than one month). Therefore, the expenditures and related liabilities have been recognized in the current period. Property taxes, state and county aid and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Unearned revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. Delinquent property taxes and other receivables that will not be collected within the available period have been reported as unavailable revenues on the governmental fund financial statements.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. The internal service funds are presented in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by fund type.

The District reports the following major governmental funds:

General Fund – The General Fund is the District’s primary operating fund. It accounts for all resources used to finance District maintenance and operation except those required to be accounted for in other funds. The General Fund includes the District’s Maintenance and Operation Fund as well as the certain activities budgeted in separate funds in accordance with A.R.S. These funds are maintained as separate funds for budgetary purposes but do not meet the criteria for separate reporting in the financial statements.

Debt Service Fund – The Debt Service Fund accounts for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

Bond Building – The Bond Building Fund accounts for proceeds from District bond issues that are expended on the acquisition or lease of sites; construction or renovation of school buildings; supplying school buildings with furniture, equipment, and technology; improving school grounds; or purchasing pupil transportation vehicles.

Additionally, the District reports the following fund types:

Proprietary Funds – The Proprietary Fund is an Internal Service Fund that accounts for activities related to the District’s self-insurance program which provides certain health care and welfare benefits to employees and their dependents.

Fiduciary Fund – The Fiduciary Fund is an Agency Fund which accounts for resources held by the District on behalf of others. This fund type includes the Student Activities Fund, which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent.

The Proprietary Fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting and are presented in a single column.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s internal service funds are charges for health and welfare benefits and charges to District departments for goods and services. Operating expenses for internal service funds include the cost of goods and services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Agency Fund is custodial in nature and does not have a measurement focus and is reported using the accrual basis of accounting. The Agency Fund is reported by fund type. D. Cash and Investments For purposes of the Statement of Cash Flows, the District considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents at year-end consisted entirely of cash in bank. A.R.S. require the District to deposit all cash with the County Treasurer, except as discussed below. Cash with the County Treasurer is pooled for investment purposes, except for cash of the Debt Service and Bond Building Funds that may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. As required by statute, interest earnings of the Bond Building Fund are recorded initially in that fund, but then transferred to the Debt Service Fund. All investments are stated at fair value. Statute authorizes the District to separately invest monies of the Bond Building and Debt Service Funds in the State Treasurer’s investment pools; obligations issued and guaranteed by the United States or any of its agencies of instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit. Statute authorizes the District to deposit monies of the Auxiliary Operations and Student Activities Funds in bank accounts. Monies in these funds may also be invested. In addition, statute authorizes the District to maintain various bank accounts such as clearing accounts to temporarily deposit receipts before they are transmitted to the County Treasurer; revolving accounts to pay minor disbursements; and withholdings accounts for taxes and employee insurance programs. Some of these bank accounts may be interest bearing. Statute does not include any requirements for credit risk, concentration of credit risk, interest rate risk, or foreign currency risk. Statute requires collateral for deposits of Bond Building and Debt Service Funds monies in interest bearing savings accounts and certificates of deposit at 101 percent of all deposits not covered by federal depository insurance. Arizona statute requires a pooled collateral program for public deposits and a Statewide Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of the pooled collateral program is to ensure that governmental entities’ public deposits placed in participating depositories are secured with collateral of 102 percent of the public deposits, less any applicable deposit insurance. An eligible depository may not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on each depository’s compliance with the program.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. Investment Income Investment income is composed of interest, dividends and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the governmental fund financial statements and in nonoperating revenues in the proprietary fund financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances between governmental funds are eliminated on the Statement of Net Position. All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles. G. Property Tax Calendar The County Treasurer is responsible for collecting property taxes for all governmental entities within the county. The county levies real property taxes on or before the third Monday in August that become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May. Pursuant to A.R.S., a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise. H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements and as expenditures when purchased in the fund financial statements.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I. Capital Assets Capital assets, which include land and improvements; buildings and improvements; vehicles, furniture, and equipment; and construction in progress, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost in excess of $5,000 and an estimated useful life of more than one year. Such assets are recorded at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Land improvements 5 - 20 years Buildings and improvements 7 - 50 years Vehicles, furniture and equipment 5 - 20 years

J. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

K. Compensated Absences The District’s employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay in varying amounts. Only benefits considered vested are recognized in the financial statements. The liability for vacation and sick leave is reported in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES L. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. M. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts, as well as the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method 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. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Interfund Activity Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund financial statements are reported as other financing sources/uses in governmental funds and after nonoperating revenues/expenses in proprietary funds. O. Net Position Flow Assumption In the government-wide and proprietary fund financial statements the District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available.


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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES P. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported.

Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a business office management official who was delegated that authority by the formal Governing Board action of adopting the policy.


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NOTE 2 – FUND BALANCE CLASSIFICATIONS Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. The District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. The table below provides detail of the major components of the District’s fund balance classifications at year end.

General

Fund

Debt Service Fund

BondBuilding

Fund


FundsFund Balances:

Restricted: Debt service $ $ 864,477 $ $ Capital projects 973,949 432,486 Bond building projects 6,796,621 Voter approved initiatives 2,879,159 Auxiliary operations 2,285,804 JTED 1,162,510 Civic center 523,808 Other purposes 396,621

Unassigned 5,131,075 (746,788)Total fund balances $ 6,105,024 $ 864,477 $ 6,796,621 $ 6,933,600

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balance – At year end, the following individual non-major governmental funds reported deficits in fund balance.

Deficit Non-Major Governmental Funds:

Food Services $ (150,838)Insurance Proceeds (595,950)


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NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY The deficits arose because of operations during the year. Additional revenues received in fiscal year 2015-16 are expected to eliminate the deficits.

NOTE 4 – CASH AND INVESTMENTS Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure the District’s deposits may not be returned to the District. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $11,428,216 and the bank balance was $11,444,213. All of the bank balance was insured or collateralized by the pledging financial institution’s trust department or agent but not in the District’s name. The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. At year end, the District’s investments consisted of the following:

Average Maturities Fair Value County Treasurer’s investment pool 367 days $ 36,146,953 Total $ 36,146,953

Interest Rate Risk. 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. Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pool did not receive a credit quality rating from a national rating agency. Custodial Credit Risk – Investments. The District’s investment in the County Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however the District’s portion is not identified with specific investments and is not subject to custodial credit risk.


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NOTE 5 – RECEIVABLES Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate, were as follows:

General

Fund


Funds Due from other governmental entities:

Due from federal government $ 81,776 $ 3,456,003Due from state government 17,749,128 796,274Due from county government 15,878 Due from other districts 1,057,389

Net due from governmental entities $ 17,846,782 $ 5,309,666

NOTE 6 – CAPITAL ASSETS A summary of capital asset activity for the current fiscal year follows:

Governmental Activities Beginning Balance Increase Decrease

Ending Balance

Capital assets, not being depreciated: Land $ 291,205 $ $ $ 291,205 Construction in progress 20,465,779 12,594,445 21,105,456 11,954,768

Total capital assets, not being depreciated 20,756,984 12,594,445 21,105,456 12,245,973

Capital assets, being depreciated: Land improvements 22,003,248 56,768 22,060,016 Buildings and improvements 264,273,970 21,176,701 1,640,796 283,809,875 Vehicles, furniture and equipment 15,653,581 654,128 240,738 16,066,971

Total capital assets being depreciated 301,930,799 21,887,597 1,881,534 321,936,862 Less accumulated depreciation for:

Land improvements (14,757,091) (1,218,438) (15,975,529)Buildings and improvements (114,720,346) (8,631,776) (1,057,889) (122,294,233)Vehicles, furniture and equipment (13,146,045) (695,018) (193,734) (13,647,329)

Total accumulated depreciation (142,623,482) (10,545,232) (1,251,623) (151,917,091) Total capital assets, being depreciated, net 159,307,317 11,342,365 629,911 170,019,771 Governmental activities capital assets, net $ 180,064,301 $ 23,936,810 $ 21,735,367 $ 182,265,744


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NOTE 6 – CAPITAL ASSETS Depreciation expense was charged to governmental functions as follows:

Instruction $ 8,417,956 Support services – students and staff 697,833 Support services – administration 404,546 Operation and maintenance of plant services 289,456 Student transportation services 171,710 Operation of non-instructional services 563,731 Total depreciation expense – governmental activities $ 10,545,232

Construction Commitments – At year end, the District had contractual commitments related to various capital projects for the construction of school renovations. At year end, the District had spent $11,954,768 on the projects and had estimated remaining contractual commitments of $155,198. These projects are being funded with Bond Building monies.

NOTE 7 – SHORT TERM DEBT

Tax Anticipation Notes – In July 2014, the District issued $11.0 million in tax anticipation notes in advance of property tax collections, depositing the proceeds in the General Fund. These notes are necessary to provide cash flow as most tax revenue is collected in November and May. Property tax revenues of the General Fund set aside in May of 2015 will be used to repay these notes maturing in July 2015. Short-term debt activity for the current fiscal year, was as follows:

BeginningBalance Issued Redeemed

EndingBalance

Tax anticipation notes $10,000,000 $11,000,000 $ 10,000,000 $ 11,000,000 Revolving Line of Credit – The District has a revolving line of credit to provide cash flow during the year to mitigate the impact of timing differences of expenditures and the receipt of state aid and property tax revenues. General Fund revenues will be used to repay the line of credit in July 2015. Short-term debt activity for the current fiscal year, was as follows:

BeginningBalance Issued Redeemed

EndingBalance

Revolving line of credit $ 1,299,000 $ 18,941,000 $ 13,545,000 $ 6,695,000


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NOTE 8 – OBLIGATIONS UNDER CAPITAL LEASES The District has acquired buses, energy upgrades, copiers, and equipment under the provisions of long-term lease agreements classified as capital leases. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. Revenues from the Unrestricted Capital Outlay Fund and the Energy and Water Savings Fund are used to pay the capital lease obligations. Amortization of assets recorded under capital leases is included with depreciation expense. The assets acquired through capital leases that meet the District’s capitalization threshold are as follows:

Governmental

Activities Asset:

Building improvements $ 6,727,094 Vehicles and equipment 1,007,087 Less: Accumulated depreciation 1,727,679

Total $ 6,006,502 The future minimum lease obligations and the net present value of these minimum lease payments as of year end were as follows:

Year Ending June 30: Governmental

Activities 2016 $ 1,852,299 2017 1,852,298 2018 1,821,293 2019 1,718,738 2020 1,718,740 2021-25 3,334,608

Total minimum lease payments 12,297,976 Less: amount representing interest 2,561,156 Present value of minimum lease payments 9,736,820 Due within one year $ 1,243,825


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NOTE 9 – GENERAL OBLIGATION BONDS PAYABLE Bonds payable at year end, consisted of the following outstanding general obligation bonds. Of the total amount originally authorized, $8,435,000 remains unissued. The bonds are both callable and noncallable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt.

Purpose

Original Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal

June 30, 2015 Due Within One Year

Governmental activities: School Improvement Bonds,

Project of 2003, Series 2004 (Class B) $ 50,000,000

3.5-4.50% 7/1/18-18 $ 465,000 $ School Improvement Bonds, Project of 2011, Series A

(2012) 22,440,000

2.00-4.00% 7/1/18-31 21,440,000 School Improvement Bonds,

Project of 2011, Series B (2013) 5,125,000

1.00% 7/1/15-17 $ 4,625,000 $ 2,500,000 Refunding Bonds, Series 2012 50,495,000 3.33% 7/1/15-17 40,460,000 12,785,000 School Improvement Bonds,

Project of 2011, Series C (2013) 22,800,000

2.50-5.00% 7/1/19-28 22,800,000 School Improvement Bonds,

Project of 2011, Series D (2013) 21,200,000

0.60-1.975% 7/1/15-18 19,900,000 175,000 Total $ 109,690,000 $ 15,460,000

Annual debt service requirements to maturity on general obligation bonds at year end, are summarized as follows:

Governmental Activities Year ending June 30: Principal Interest

2016 $ 15,460,000 $ 3,185,621 2017 15,815,000 2,722,163 2018 16,935,000 2,231,296 2019 18,335,000 1,786,614 2020 3,095,000 1,553,673 2021-25 17,310,000 6,047,063 2026-30 18,710,000 2,364,945 2031-35 4,030,000 145,898

Total $ 109,690,000 $ 20,037,273


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NOTE 10 – CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the current fiscal year was as follows:

Beginning Balance Additions Reductions

Ending Balance

Due WithinOne Year

Governmental activities: Bonds payable:

General obligation bonds $ 124,390,000 $ $14,700,000 $ 109,690,000 $ 15,460,000Premium 3,432,734 875,799 2,556,935

Total bonds payable 127,822,734 15,575,799 112,246,935 15,460,000 Obligations under capital leases 10,679,981 231,629 1,174,790 9,736,820 1,243,825 Compensated absences payable 3,523,132 2,970,553 2,531,839 3,961,846 120,000 Net pension liability 123,327,175 9,405,287 113,921,888 Other postemployment benefits 18,758,604 2,072,957 2,700,000 18,131,561 Governmental activity long-term

liabilities $ 284,111,626 $ 5,275,139 $ 31,387,715 $ 257,999,050 $ 16,823,825

NOTE 11 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS At year end, interfund balances were as follows:

Due to/from other funds:

General

Fund

Non-MajorGovernmental

FundsTotal Due to Other Funds

Non-Major Governmental Funds $ 2,217,271 $ 190,237 $ 2,407,508Total Due from Other Funds $ 2,217,271 $ 190,237 $ 2,407,508

At year end, several funds had negative cash balances in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with other funds. Additionally, a due to other funds from the Auxiliary Operations Fund, a non-major governmental fund, was recorded in various other non-major governmental funds for revenues collected in the bookstore belonging to the various other funds. All interfund balances are expected to be paid within one year.


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NOTE 11 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

Interfund transfers:

Transfers in

Transfers out General

Fund Debt

Service


Funds

TotalGeneral Fund $ $ 1,187,312 $ 1,187,312 Bond Building Fund $ 45,279 45,279Non-Major Governmental Funds 540,944 540,944Total $ 540,944 $ 45,279 $ 1,187,312 $ 1,773,535

Transfers between funds were used to (1) move investment income earned in the Bond Building Fund that is required by statute to be expended in the Debt Service Fund, (2) to move federal grant funds restricted for indirect costs, (3) and to move monies received for energy savings to the Energy and Water Savings Fund, a non-major governmental fund.

NOTE 12 – CONTINGENT LIABILITIES

Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial.

Lawsuits – The District is a party to a number of various types of lawsuits, many of which normally occur in governmental operations. The ultimate outcome of the actions is not determinable, however, District management believes that the outcome of these proceedings, either individually or in the aggregate, will not have a materially adverse effect on the accompanying financial statements.

Arbitrage – Under the Tax Reform Act of 1986, interest earned on the debt proceeds in excess of interest expense or expenditure prior to the disbursement of the proceeds must be rebated to the Internal Revenue Service (IRS). Management believes there is no tax arbitrage rebate liability at year-end.

NOTE 13 – RISK MANAGEMENT

The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.


JUNE 30, 2015

Page 50

NOTE 13 – RISK MANAGEMENT The District established an Employee Benefit Trust fund (an Internal Service Fund) to account for and finance its uninsured risks of loss related to employee health and accident claims. Under this program, the fund provides coverage for up to a maximum of $125,000 for each claim, not to exceed an annual aggregate of 125 percent of expected claims. The Fund purchases commercial insurance for claims in excess of this coverage. Settled claims have not exceeded this coverage in any of the past three fiscal years.

Liabilities of the fund 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 (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. Changes in the balances of claims liabilities during the past two years are as follows:

Claims Payable

Beginning of Year

Current Year Claims and

Changes in Estimates

Claim Payments

Claims Payable at

End of Year Employee Benefit Trust

2014-15 $ 1,246,230 $ (229,135) $ 1,017,095 $ 2013-14 2,194,571 9,731,163 10,679,504 1,246,230

During fiscal year 2014-15 the District joined the Valley Schools Employee Benefit Trust (VSEBT) together with other districts in the state for the risks of loss related to employee health claims. VSEBT is a public entity risk pool currently operating as a common risk management and insurance program for member school districts. The District, through the EBT Fund, pays a lump-sum annual premium to VSEBT for health insurance coverage. The agreement provides that VSEBT will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. Under this program, the Employee Benefit Trust Fund collects contributions and pays premiums on insurance. The District continues to carry commercial insurance for all other risks of loss, including workers’ compensation. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.


JUNE 30, 2015

Page 51

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Plan Description. District employees participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. ASRS is a component unit of the State of Arizona. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on the ASRS website at www.azasrs.gov. Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:

Retirement Initial Membership Date:

Before July 1, 2011 On or After July 1, 2011 Years of service and

age required to receive benefit

Sum of years and age equals 80 10 years age 62 5 years age 50* Any years age 65

30 years age 55 25 years age 60 10 years age 62 5 years age 50* Any years age 65

Final average salary is

based on Highest 36 months of last

120 months Highest 60 months of last

120 months Benefit percent per

year of service 2.1% to 2.3% 2.1% to 2.3%

*With actuarially reduced benefits


JUNE 30, 2015

Page 52

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned.

Contributions. In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.60 percent (11.48 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.60 percent (10.89 percent for retirement, 0.59 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions to the pension plan for the year ended June 30, 2015 were $7,682,392. In addition, the District was required by statute to contribute at the actuarially determined rate of 9.57 percent (9.51 for retirement and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS.

The District’s contributions for the current and two preceding years for OPEB, all of which were equal to the required contributions, were as follows:

Health Benefit Supplement

Fund

Long-Term Disability

Fund Year ending June 30:

2015 $ 416,218 $ 84,6542014 415,976 166,3912013 453,644 167,499


JUNE 30, 2015

Page 53


Pension Liability. At June 30, 2015, the District reported a liability of $113.9 million for its proportionate share of the net pension liability of the ASRS. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2013, to the measurement date of June 30, 2014. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2014, the District’s proportion was 0.77 percent.

Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2015, the District recognized pension expense of $6.7 million and reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience $ 5,789,844 $ Changes of assumptions or other inputs Net difference between projected and actual earnings on

pension plan investments 19,921,421Changes in proportion and differences between

contributions and proportionate share of contributions 1,930,864Contributions subsequent to the measurement date 7,682,392

Total $13,472,236 $21,852,285 The deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30: 2016 $ (3,302,538)2017 (3,302,538)2018 (4,477,010)2019 (4,980,355)


JUNE 30, 2015

Page 54

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension liability are as follows:

Actuarial valuation date June 30, 2013 Actuarial roll forward date June 30, 2014 Actuarial cost method Entry age normal Asset valuation Fair value Discount rate 8.0% Projected salary increases 3.0-6.75% Inflation 3.0% Permanent base increases Included Mortality rates 1994 GAM Scale BB

The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return. The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Target

Allocation

Long-Term Expected Real Rate of Return

Equity 63% 7.03% Fixed income 25% 3.20 Real estate 8% 4.75 Commodities 4% 4.50

Total 100%


JUNE 30, 2015

Page 55


Discount Rate. The discount rate used to measure the ASRS total pension liability was 8.0 percent, which is less than the long-term expected rate of return of 8.79 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 8.0 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:

1% Decrease (7.0%)

Current Discount Rate

(8.0%) 1% Increase

(9.0%) Proportionate share of the net

pension liability $143,991,424 $113,921,888 $97,607,655

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov. Beginning Net Position Restatement. The implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, represents a change in accounting principle. Net position as of July 1, 2014, has been restated as follows for this change in accounting principle:

Statement of

Activities Net position, June 30, 2014, as previously reported $ 92,262,702 Net pension liability (130,753,277)Deferred outflows – contributions during fiscal

year 2014 7,426,102 Net position, July 1, 2014, as restated $ (31,064,473)


JUNE 30, 2015

Page 56

NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN

Plan Description. Under authority of the Governing Board, the District provides postretirement insurance (medical, dental and life) benefits, for certain retirees and their dependents, in accordance with the District’s Early Retiree Program. An employee is eligible if he/she has served 10 consecutive years or more before entering the program and the employee retires under the State of Arizona’s retirement plan. However, beginning July 1, 2013 an employee must serve 15 years or more. Employees hired after July 1, 2009 will not be eligible to participate in the District’s program. The plan is a single-employer defined benefit plan administered by the District. For the current fiscal year, the District contributed $2,700,000 for these benefits. The District’s regular insurance providers underwrite the retiree policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. A separate financial report is not issued for the plan. The number of participants as of year end, the effective date of the biannual OPEB valuation, follows:

ParticipantsActive employees 838Retired employees 303

Total 1,141 Funding Policy. The District currently pays for postemployment benefits on a pay-as-you-go basis, and these financial statements assume that pay-as-you-go funding will continue. Generally, resources from the General Fund are used to pay for postemployment benefits.

Annual OPEB Cost and Net OPEB Obligation. The District’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the District, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The amortization method is open. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.

Annual required contribution $ 2,407,425 Interest on net OPEB obligation 750,344 Adjustment to annual required contribution (1,084,812)Annual OPEB cost (expense) 2,072,957 Contributions made (2,700,000)Decrease in net OPEB obligation (627,043)Net OPEB obligation – beginning of year 18,758,604 Net OPEB obligation – end of year $ 18,131,561


JUNE 30, 2015

Page 57

NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year ended June 30, 2015 and the preceding two years is as follows:

Fiscal Year Ended

Annual OPEB Cost

Annual OPEB Cost Contributed

Percentage of Annual OPEB

Cost Contributed

Net OPEB Obligation

June 30, 2015 $ 2,072,957 $ 2,700,000 130.25% $ 18,131,561 June 30, 2014 3,917,618 2,350,000 60.00 18,758,604 June 30, 2013 3,947,375 2,132,000 54.00 17,190,986

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit cost between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future.

In the August 8, 2014 actuarial valuation, the liabilities were computed using the actuarial cost method of projected unit credit, level dollar amount. The actuarial assumptions utilized a 4.0 percent discount rate. Because the plan is unfunded, reference to the District’s general operational assets, which are short-term in nature, was considered in the selection of the 4.0 percent rate. The valuation assumes an 8 percent healthcare cost trend increase for fiscal year 2013-14, reduced by decrements to an ultimate rate of 5 percent. There is no inflation rate assumption. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.

NOTE 16 – SUBSEQUENT EVENTS

Tax Anticipation Notes - In July of 2015, the District issued $13,000,000 of tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. School Improvement Bonds - On September 17, 2015, the District issued School Improvement Bonds, Series E (2015) in the amount of $8.435 million, maturing on July 1, 2030, with an average interest rate of 3.18 percent. The purpose of the bonds is construction and renovation of school facilities.

REQUIRED SUPPLEMENTARY INFORMATION

Revenues:Other localProperty taxesState aid and grants

Total revenues



Total expenditures


Other financing sources (uses):Transfer out




Fund balances (deficits), end of year

Budgeted Amounts

Original

$ 4,713,40641,306,93746,043,96292,064,305

55,008,96410,758,6248,817,341

14,440,0783,961,501

677,79793,664,305

(1,600,000)

(1,150,071)(1,150,071)

(2,750,071)

2,750,071

$

Final

$ 4,713,40641,306,93746,043,96292,064,305

55,024,93210,508,6248,917,341

14,390,0784,370,000

677,79793,888,772

(1,824,467)

(1,150,071)(1,150,071)

(2,974,538)

2,750,071

$ (224,467)

Non-GAAP Actual

$ 5,085,42137,248,10650,474,95492,808,481

52,412,80010,891,227

9,328,13314,606,432

4,368,389677,754

92,284,735

523,746

(1,187,312)(1,187,312)

(663,566)

3,581,790

$ 2,918,224

Variance with Final Budget

Positive (Negative)

$ 372,015(4,058,831)

4,430,992744,176

2,612,132(382,603)(410,792)(216,354)

1,61143

1,604,037

2,348,213

(37,241)(37,241)

2,310,972

831,719

$ 3,142,691

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


Page 60

See accompanying notes to this schedule.

2015 2014 2013 2012 2011

District's proportion of the net pensionliability (asset) 0.77% 0.00% 0.00% 0.00% 0.00%

District's proportionate share of the netpension liability (asset) 113,921,888$ $ $ $ $

District's covered-employee payroll 45,932,070$ $ $ $ $

District's proportionate share of the net pension liability (asset) as a percentageof its covered-employee payroll 248.02% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Plan fiduciary net position as a percentage of the total pension liability 69.49% 0.00% 0.00% 0.00% 0.00%

2015 2014 2013 2012 2011

Actuarially determined contribution 7,682,392$ $ $ $ $

Contributions in relation to the actuarially determined contribution 7,682,392

Contribution deficiency (excess) $ $ $ $ $

District's covered-employee payroll 43,929,281$ $ $ $ $

Contributions as a percentageof covered-employee payroll 17.49% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

SCHEDULE OF CONTRIBUTIONSARIZONA STATE RETIREMENT SYSTEM

ARIZONA STATE RETIREMENT SYSTEM


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY


Page 61 See accompanying notes to this schedule.

7/1/2014 -$ 24,341,834$ 24,341,834$ - % 45,932,070$ 53 %7/1/2012 - 47,673,252 47,673,252 - 64,712,559 74 7/1/2010 - 65,473,544 65,473,544 - 65,391,267 100

Covered Payroll

UAAL as a Percentage of

Covered Payroll

OTHER POSTEMPLOYMENT BENEFITS PLAN

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205SCHEDULE OF FUNDING PROGRESS

Actuarial Valuation

Date

LAST THREE ACTUARIAL VALUATIONS

Actuarial Valuation of Assets

Actuarial Accrued Liability (AAL)

Unfunded AAL (UAAL)

Funded Ratio

Page 62

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2015

Page 63

NOTE 1 – BUDGETARY BASIS OF ACCOUNTING The District budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the following items.

Certain activities reported in the General Fund are budgeted in separate funds in accordance with Arizona Revised Statutes.

Present value of net minimum capital lease payments is not budgeted at the inception of the agreement.

The following schedule reconciles expenditures and fund balances at the end of year.

Total

Expenditures Fund Balances

End of Year Statement of Revenues, Expenditures and Changes in

Fund Balances – Governmental Funds $ 94,757,306 $ 6,105,024 Activity budgeted as special revenue funds (979,453) (2,212,851)Activity budgeted as capital projects funds (1,493,118) (973,949)Schedule of Revenues, Expenditures and Changes in

Fund Balances – Budget and Actual – General Fund $ 92,284,735 $ 2,918,224

NOTE 2 – PENSION PLAN SCHEDULES Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements. Factors that Affect Trends. The actuarial assumptions used in the June 30, 2013, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return.

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

GOVERNMENTAL FUNDS

ASSETSCash and investmentsDepositsAccounts receivableDue from governmental entitiesDue from other funds

Total assets


Accounts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues

Total liabilities

Deferred inflows of resources:Unavailable revenues - intergovernmental


Total fund balances


Special Revenue

$ 6,069,750119,03021,451

5,309,666190,237

$ 11,710,134

$ 709,3872,138,391

608,486120,875

3,577,139

1,035,931

7,247,902(150,838)7,097,064

$ 11,710,134

Capital Projects

$ 433,087

913,859

$ 1,346,946

$ 627,434269,117

896,551

613,859

432,486(595,950)(163,464)

$ 1,346,946

Total Non-Major

Governmental Fund

$ 6,502,837119,030935,310

5,309,666190,237

$ 13,057,080

$ 1,336,8212,407,508

608,486120,875

4,473,690

1,649,790

7,680,388(746,788)6,933,600

$ 13,057,080

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE

JUNE 30, 2015

Page 68

Revenues:Other localState aid and grantsFederal aid, grants and reimbursements

Total revenues





Total expenditures


Other financing sources (uses):Transfer inTransfer out





Special Revenue

$ 5,917,8117,683,456

16,350,72329,951,990

14,317,7516,059,488

525,5121,088,638

134,2435,376,4982,335,744

29,837,874

114,116

(540,944)(540,944)

(426,828)

7,523,892

$ 7,097,064

Capital Projects

$ 2,077,24396,998

431,8502,606,091

14,43825,106

4,299

2,861,696

1,009,331657,973

4,572,843

(1,966,752)

1,187,312

1,187,312

(779,440)

615,976

$ (163,464)

Total Non-Major

Governmental Funds

$ 7,995,0547,780,454

16,782,57332,558,081

14,332,1896,084,594

525,5121,088,638

138,5425,376,4985,197,440

1,009,331657,973

34,410,717

(1,852,636)

1,187,312(540,944)

646,368

(1,206,268)

8,139,868

$ 6,933,600

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2015

Page 69

SPECIAL REVENUE FUNDS Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Instructional Improvement - to account for the activity of monies received from gaming revenue. Student Success - to account for student success monies. Title I Grants - to account for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing, to meet challenging state academic standards. Professional Development & Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities. Limited English and Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Vocational Education - to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree. Homeless Education - to account for financial assistance received for the education of homeless students. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. E-Rate - To account for financial assistance received for broadband internet and telecommunication costs. Other Federal Projects - to account for financial assistance received for other supplemental federal projects. State Vocational Education - to account for financial assistance received for the preparation of individuals for employment. Other State Projects - to account for financial assistance received for other state projects. School Plant - to account for proceeds from the sale or lease of school property.

Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Civic Center - to account for monies received from the rental of school facilities for civic activities. Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations. Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. Career, Technical and Vocational Education Projects - to account for activity related to the production and subsequent sale of items produced in an instructional program by career and technical and vocational education pupils. Fingerprint - to account for activity of fingerprinting employees as mandated by the State. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Litigation Recovery - to account for monies received for and derived from litigation. Indirect Costs - to account for monies received from federal projects for administrative costs. Insurance Refund - to account for insurance premium payments that are refunded to the District. Grants and Gifts to Teachers - to account for grants and gifts under $1,500 received from private sources that are designated for use by a teacher for instructional purposes. Advertisement - to account for monies received from the sale of advertising. Joint Technical Education - to account for monies received from Joint Technical Education Districts for vocational education programs.


Total assets



Total liabilities



Total fund balances


Classroom Site

$ 2,287,111

499,448

$ 2,786,559

$

29,049

29,049

2,757,510

2,757,510

$ 2,786,559

Instructional Improvement

$

273,521

$ 273,521

$151,872

151,872

121,649

121,649

$ 273,521

Title I Grants

$

921,073

$ 921,073

$ 52,678466,613401,782

921,073

$ 921,073

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COMBINING BALANCE SHEET - ALL SPECIAL REVENUE FUNDS

JUNE 30, 2015

Page 72

Professional Development

and Technology Grants

$

122,009

$ 122,009

$ 27,60480,74113,664

122,009

$ 122,009

Title IV Grants

$

27,391

$ 27,391

$16,50710,884

27,391

$ 27,391

Limited English & Immigrant

Students

$

15,440

$ 15,440

$12,7322,708

15,440

$ 15,440

Special Education

Grants

$

464163,409

$ 163,873

$147,161

16,712

163,873

$ 163,873

Vocational Education

$

811,110

$ 811,110

$ 311,960494,783

4,367

811,110

$ 811,110

Homeless Education

$

54,545

$ 54,545

$ 19,55234,993

54,545

$ 54,545

Page 73

(Continued)


Total assets



Total liabilities



Total fund balances


E-Rate

$

498,114

$ 498,114

$

498,114

$ 498,114

Other Federal Projects

$ 653

389,006

$ 389,659

$210,27715,699

225,976

152,075

11,608

11,608

$ 389,659

State Vocational Education

$ 152,306

$ 152,306

$ 31,431

120,875152,306

$ 152,306


JUNE 30, 2015

Page 74

Other State Projects

$

23,305

$ 23,305

$23,305

23,305

$ 23,305

Food Service

$ 27,292119,030

3,784453,906

197$ 604,209

$ 93,527261,65714,121

369,305

385,742

(150,838)(150,838)

$ 604,209

Civic Center

$ 478,927

12,769

86,307$ 578,003

$ 54,195

54,195

523,808

523,808

$ 578,003

Community School

$ 24,172

1,675

92,643$ 118,490

$45,98372,507

118,490

$ 118,490

Auxiliary Operations

$ 2,475,474

997

$ 2,476,471

$190,667

190,667

2,285,804

2,285,804

$ 2,476,471

Gifts and Donations

$ 233,713

1,106

780$ 235,599

$

235,599

235,599

$ 235,599

Page 75

(Continued)


Total assets



Total liabilities



Total fund balances


Career, Technical and

Vocational Education Projects

$ 600

500

$ 1,100

$1,100

1,100

$ 1,100

Fingerprint

$ 10,291

156

$ 10,447

$

10,447

10,447

$ 10,447

Textbooks

$ 128,657

10,310$ 138,967

$

138,967

138,967

$ 138,967


JUNE 30, 2015

Page 76

Joint Technical Education

$ 250,554

1,057,389

$ 1,307,943

$ 118,440

26,993

145,433

1,162,510

1,162,510

$ 1,307,943

Totals

$ 6,069,750119,03021,451

5,309,666190,237

$ 11,710,134

$ 709,3872,138,391

608,486120,875

3,577,139

1,035,931

7,247,902(150,838)7,097,064

$ 11,710,134

Page 77


Total revenues



Capital outlayTotal expenditures







Classroom Site

$ 9,0355,993,368

6,002,403

5,530,216431,145

5,961,361

41,042

41,042

2,716,468

$ 2,757,510


$ 477635,922

636,399

378,77370,733

120,843184,62530,03428,786

813,794

(177,395)

(177,395)

299,044

$ 121,649

Title I Grants

$

5,523,4005,523,400

2,267,9051,639,649

213,1034,058

22,406

1,171,8275,318,948

204,452

(204,452)(204,452)

$


ALL SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2015

Page 78

Professional Development

and Technology Grants

$

830,927830,927

765,02226,865

791,887

39,040

(39,040)(39,040)

$

Title IV Grants

$

129,951129,951

73,1007,761

27,825

53017,386

126,602

3,349

(3,349)(3,349)

$

Limited English & Immigrant

Students

$

85,74585,745

41,12131,8421,025

114

11,34385,445

300

(300)(300)

$

Special Education

Grants

$

2,234,9192,234,919

1,410,240818,717

165

5,2972,234,419

500

(500)(500)

$


$

1,888,3821,888,382

247,408787,09640,144

772,5471,847,195

41,187

(41,187)(41,187)

$

Homeless Education

$

54,54554,545

20,94725,981

5,517

52,445

2,100

(2,100)(2,100)

$

Page 79

(Continued)


Total revenues










E-Rate

$

551,197551,197

171,725

10,540368,932

551,197

$


$

1,134,5431,134,543

989,450103,200

12,61318,073

16,3961,139,732

(5,189)

(16)(16)

(5,205)

16,813

$ 11,608


$438,313

438,313

391,44623,72823,139

438,313

$



Page 80


$615,853

615,853

57,122554,022

209

4,500615,853

$

Food Service

$ 1,125,854

3,917,1145,042,968

5,293,3493,264

5,296,613

(253,645)

(250,000)(250,000)

(503,645)

352,807

$ (150,838)

Civic Center

$ 550,387

550,387

109,2519,665

18,926194,816

5,1321,959

136,524476,273

74,114

74,114

449,694

$ 523,808

Community School

$ 321,519

321,519

238,95566,129

15,6472,142

366323,239

(1,720)

(1,720)

1,720

$


$ 1,789,406

1,789,406

1,335,60753,1673,798

23,29432,876

1,448,742

340,664

340,664

1,945,140

$ 2,285,804

Gifts and Donations

$ 53,524

53,524

6,63637,1513,552

60

19,79167,190

(13,666)

(13,666)

249,265

$ 235,599

Page 81

(Continued)


Total revenues










Career, Technical and

Vocational Education Projects

$ 13,733

13,733

13,733

13,733

$

Fingerprint

$ 9,502

9,502

9,502

9,502

945

$ 10,447

Textbooks

$ 22,116

22,116

14,0703,925

17,995

4,121

4,121

134,846

$ 138,967



Page 82


$ 2,022,258

2,022,258

1,020,046630,55535,543

323,36913,496

193,8892,216,898

(194,640)

(194,640)

1,357,150

$ 1,162,510

Totals

$ 5,917,8117,683,456

16,350,72329,951,990

14,317,7516,059,488

525,5121,088,638

134,2435,376,4982,335,744

29,837,874

114,116

(540,944)(540,944)

(426,828)

7,523,892

$ 7,097,064

Page 83

Total revenues











Classroom Site

Budget

$5,630,725

5,630,725

7,715,991756,250

8,472,241

(2,841,516)

(2,841,516)

2,500,000

$ (341,516)

Actual

$ 9,0355,993,368

6,002,403

5,530,216431,145

5,961,361

41,042

41,042

2,716,468

$ 2,757,510

Variance - Positive

(Negative)

$ 9,035362,643

371,678

2,185,775325,105

2,510,880

2,882,558

2,882,558

216,468

$ 3,099,026

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUALALL SPECIAL REVENUE FUNDS


Page 84


Budget

$600,000

600,000

465,00075,000

150,000230,00050,00030,000

1,000,000

(400,000)

(400,000)

400,000

$

Actual

$ 477635,922

636,399

378,77370,733

120,843184,62530,03428,786

813,794

(177,395)

(177,395)

299,044

$ 121,649

Variance - Positive

(Negative)

$ 47735,922

36,399

86,2274,267

29,15745,37519,9661,214

186,206

222,605

222,605

(100,956)

$ 121,649

Student Success

Budget

$300,000

300,000

310,000

310,000

(10,000)

(10,000)

$ (10,000)

Non-GAAP Actual

$305,581

305,581

305,581

305,581

$

Variance - Positive

(Negative)

$5,581

5,581

4,419

4,419

10,000

10,000

$ 10,000

Page 85(Continued)

Total revenues











Title I Grants

Budget

$

7,000,0007,000,000

3,500,0002,025,000

225,0009,000

35,000

1,206,0007,000,000

$

Actual

$

5,523,4005,523,400

2,267,9051,639,649

213,1034,058

22,406

1,171,8275,318,948

204,452

(204,452)(204,452)

$

Variance - Positive

(Negative)

$

(1,476,600)(1,476,600)

1,232,095385,35111,897

4,94212,594

34,1731,681,052

204,452

(204,452)(204,452)

$




Page 86

Professional Development and Technology Grants

Budget

$

1,150,0001,150,000

1,100,60049,400

1,150,000

$

Actual

$

830,927830,927

765,02226,865

791,887

39,040

(39,040)(39,040)

$

Variance - Positive

(Negative)

$

(319,073)(319,073)

335,57822,535

358,113

39,040

(39,040)(39,040)

$

Title IV Grants

Budget

$

200,000200,000

110,00013,50040,000

1,00035,500

200,000

$

Actual

$

129,951129,951

73,1007,761

27,825

53017,386

126,602

3,349

(3,349)(3,349)

$

Variance - Positive

(Negative)

$

(70,049)(70,049)

36,9005,739

12,175

47018,114

73,398

3,349

(3,349)(3,349)

$

Page 87(Continued)

Total revenues











Limited English & Immigrant Students

Budget

$

200,000200,000

90,00077,0006,000

2,000

25,000200,000

$

Actual

$

85,74585,745

41,12131,8421,025

114

11,34385,445

300

(300)(300)

$

Variance - Positive

(Negative)

$

(114,255)(114,255)

48,87945,158

4,975

1,886

13,657114,555

300

(300)(300)

$




Page 88

Special Education Grants

Budget

$

2,500,0002,500,000

1,500,000990,000

1,000

9,0002,500,000

$

Actual

$

2,234,9192,234,919

1,410,240818,717

165

5,2972,234,419

500

(500)(500)

$

Variance - Positive

(Negative)

$

(265,081)(265,081)

89,760171,283

835

3,703265,581

500

(500)(500)

$


Budget

$

3,000,0003,000,000

300,0001,500,000

200,000

1,000,0003,000,000

$

Actual

$

1,888,3821,888,382

247,408787,09640,144

772,5471,847,195

41,187

(41,187)(41,187)

$

Variance - Positive

(Negative)

$

(1,111,618)(1,111,618)

52,592712,904159,856

227,4531,152,805

41,187

(41,187)(41,187)

$

Page 89(Continued)

Total revenues











Homeless Education

Budget

$

100,000100,000

40,00050,000

10,000

100,000

$

Actual

$

54,54554,545

20,94725,981

5,517

52,445

2,100

(2,100)(2,100)

$

Variance - Positive

(Negative)

$

(45,455)(45,455)

19,05324,019

4,483

47,555

2,100

(2,100)(2,100)

$




Page 90

Medicaid Reimbursement

Budget

$

500,000500,000

80,000133,000119,00075,00050,00043,000

500,000

$

Non-GAAP Actual

$

874,648874,648

49,49284,07877,43252,52724,04825,183

312,760

561,888

561,888

$ 561,888

Variance - Positive

(Negative)

$

374,648374,648

30,50848,92241,56822,47325,95217,817

187,240

561,888

561,888

$ 561,888

E-Rate

Budget

$

900,000900,000

350,000

50,000500,000

900,000

$

Actual

$

551,197551,197

171,725

10,540368,932

551,197

$

Variance - Positive

(Negative)

$

(348,803)(348,803)

178,275

39,460131,068

348,803

$

Page 91(Continued)

Total revenues












Budget

$

2,175,0002,175,000

1,800,000251,000

24,00050,000

50,0002,175,000

$

Actual

$

1,134,5431,134,543

989,450103,200

12,61318,073

16,3961,139,732

(5,189)

(16)(16)

(5,205)

16,813

$ 11,608

Variance - Positive

(Negative)

$

(1,040,457)(1,040,457)

810,550147,800

11,38731,927

33,6041,035,268

(5,189)

(16)(16)

(5,205)

16,813

$ 11,608




Page 92


Budget

$550,000

550,000

498,00026,00026,000

550,000

$

Actual

$438,313

438,313

391,44623,72823,139

438,313

$

Variance - Positive

(Negative)

$(111,687)

(111,687)

106,5542,2722,861

111,687

$


Budget

$800,000

800,000

105,000680,000

5,000

10,000800,000

$

Actual

$615,853

615,853

57,122554,022

209

4,500615,853

$

Variance - Positive

(Negative)

$(184,147)

(184,147)

47,878125,978

4,791

5,500184,147

$

Page 93(Continued)

Total revenues











School Plant

Budget

$ 50,000

50,000

50,000

50,000

$

Non-GAAP Actual

$ 9,687

9,687

9,687

9,687

8,282

$ 17,969

Variance - Positive

(Negative)

$ (40,313)

(40,313)

50,000

50,000

9,687

9,687

8,282

$ 17,969




Page 94

Food Service

Budget

$ 1,160,912

4,039,0885,200,000

5,740,00010,000

5,750,000

(550,000)

(450,000)(450,000)

(1,000,000)

1,000,000

$

Actual

$ 1,125,854

3,917,1145,042,968

5,293,3493,264

5,296,613

(253,645)

(250,000)(250,000)

(503,645)

352,807

$ (150,838)

Variance - Positive

(Negative)

$ (35,058)

(121,974)(157,032)

446,6516,736

453,387

296,355

200,000200,000

496,355

(647,193)

$ (150,838)

Civic Center

Budget

$ 150,000

150,000

120,00015,00025,000

200,00020,00020,000

200,000600,000

(450,000)

(450,000)

450,000

$

Actual

$ 550,387

550,387

109,2519,665

18,926194,816

5,1321,959

136,524476,273

74,114

74,114

449,694

$ 523,808

Variance - Positive

(Negative)

$ 400,387

400,387

10,7495,3356,0745,184

14,86818,04163,476

123,727

524,114

524,114

(306)

$ 523,808

Page 95(Continued)

Total revenues











Community School

Budget

$ 500,000

500,000

340,000120,000

30,0008,0002,000

500,000

$

Actual

$ 321,519

321,519

238,95566,129

15,6472,142

366323,239

(1,720)

(1,720)

1,720

$

Variance - Positive

(Negative)

$ (178,481)

(178,481)

101,04553,871

14,3535,8581,634

176,761

(1,720)

(1,720)

1,720

$




Page 96


Budget

$ 1,500,000

1,500,000

2,745,000140,000

50,00065,000

3,000,000

(1,500,000)

(1,500,000)

1,500,000

$

Actual

$ 1,789,406

1,789,406

1,335,60753,167

3,798

23,29432,876

1,448,742

340,664

340,664

1,945,140

$ 2,285,804

Variance - Positive

(Negative)

$ 289,406

289,406

1,409,39386,833(3,798)

26,70632,124

1,551,258

1,840,664

1,840,664

445,140

$ 2,285,804

Gifts and Donations

Budget

$ 300,000

300,000

58,000380,000

11,900100

50,000500,000

(200,000)

(200,000)

200,000

$

Actual

$ 53,524

53,524

6,63637,1513,552

60

19,79167,190

(13,666)

(13,666)

249,265

$ 235,599

Variance - Positive

(Negative)

$ (246,476)

(246,476)

51,364342,849

8,34840

30,209432,810

186,334

186,334

49,265

$ 235,599

Page 97(Continued)

Total revenues











Career, Technical and Vocational Education Projects

Budget

$ 75,000

75,000

75,000

75,000

$

Actual

$ 13,733

13,733

13,733

13,733

$

Variance - Positive

(Negative)

$ (61,267)

(61,267)

61,267

61,267

$




Page 98

Fingerprint

Budget

$ 10,000

10,000

10,000

10,000

$

Actual

$ 9,502

9,502

9,502

9,502

945

$ 10,447

Variance - Positive

(Negative)

$ (498)

(498)

10,000

10,000

9,502

9,502

945

$ 10,447

Textbooks

Budget

$

90,00010,000

100,000

(100,000)

(100,000)

100,000

$

Actual

$ 22,116

22,116

14,0703,925

17,995

4,121

4,121

134,846

$ 138,967

Variance - Positive

(Negative)

$ 22,116

22,116

75,9306,075

82,005

104,121

104,121

34,846

$ 138,967

Page 99(Continued)

Total revenues











Litigation Recovery

Budget

$ 400,000

400,000

500,000

500,000

(100,000)

(100,000)

100,000

$

Non-GAAP Actual

$ 1,933

1,933

364

364

1,569

1,569

94,013

$ 95,582

Variance - Positive

(Negative)

$ (398,067)

(398,067)

499,636

499,636

101,569

101,569

(5,987)

$ 95,582




Page 100

Indirect Costs

Budget

$

175,000

600,000

200,000

25,0001,000,000

(1,000,000)

650,000

650,000

(350,000)

750,000

$ 400,000

Non-GAAP Actual

$ 1,347

1,347

62,197

215,483

80,817

2,251360,748

(359,401)

540,944

540,944

181,543

1,355,869

$ 1,537,412

Variance - Positive

(Negative)

$ 1,347

1,347

112,803

384,517

119,183

22,749639,252

640,599

(109,056)

(109,056)

531,543

605,869

$ 1,137,412

Insurance Refund

Budget

$ 500,000

500,000

500,000

500,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (500,000)

(500,000)

500,000

500,000

$

Page 101(Continued)

Total revenues











Grants and Gifts to Teachers

Budget

$ 25,000

25,000

25,000

25,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (25,000)

(25,000)

25,000

25,000

$




Page 102

Advertisement

Budget

$ 25,000

25,000

25,000

25,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (25,000)

(25,000)

25,000

25,000

$


Budget

$ 3,000,000

3,000,000

1,200,0001,000,000

51,000449,000

300,0003,000,000

1,000,000

$ 1,000,000

Actual

$ 2,022,258

2,022,258

1,020,046630,55535,543

323,36913,496

193,8892,216,898

(194,640)

(194,640)

1,357,150

$ 1,162,510

Variance - Positive

(Negative)

$ (977,742)

(977,742)

179,954369,44515,457

125,631(13,496)

106,111783,102

(194,640)

(194,640)

357,150

$ 162,510

Page 103(Continued)

Total revenues











Totals

Budget

$ 7,695,9127,880,725

21,764,08837,340,725

22,276,9919,342,3501,558,3001,488,100

998,0005,941,5002,887,000

44,492,241

(7,151,516)

650,000(450,000)

200,000

(6,951,516)

8,000,000

$ 1,048,484

Non-GAAP Actual

$ 5,930,7787,989,037

17,225,37131,145,186

14,735,0216,143,566

818,4271,141,165

239,4725,401,6812,337,995

30,817,327

327,859

540,944(540,944)

327,859

8,982,056

$ 9,309,915

Variance - Positive

(Negative)

$ (1,765,134)108,312

(4,538,717)(6,195,539)

7,541,9703,198,784

739,873346,935758,528539,819549,005

13,674,914

7,479,375

(109,056)(90,944)

(200,000)

7,279,375

982,056

$ 8,261,431




Page 104

DEBT SERVICE FUND Debt Service - to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

Total revenues

Revenues:Other localProperty taxes

Expenditures:Debt service -


Total expenditures


Other financing sources (uses):Transfer in





Debt Service

Budget

$19,415,14819,415,148

15,460,0003,540,000

19,000,000

415,148

415,148

241,369

$ 656,517

Actual

$ 57,38518,146,61018,203,995

15,460,0003,417,021

18,877,021

(673,026)

45,27945,279

(627,747)

1,492,224

$ 864,477

Variance - Positive

(Negative)

$ 57,385(1,268,538)(1,211,153)

122,979122,979

(1,088,174)

45,27945,279

(1,042,895)

1,250,855

$ 207,960


BUDGET AND ACTUALALL DEBT SERVICE FUNDSYEAR ENDED JUNE 30, 2015

Page 106

CAPITAL PROJECTS FUNDS Insurance Proceeds - to account for the monies received from insurance claims. Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items. Bond Building - to account for proceeds from District bond issues that are expended on the acquisition or lease of sites; construction or renovation of school buildings; supplying school buildings with furniture, equipment, and technology; improving school grounds; or purchasing pupil transportation vehicles. Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions. Energy and Water Savings - to account for capital investment monies, energy related rebate, or grant monies, and monies from other funding sources to fund energy or water savings projects in school facilities in accordance with A.R.S. §15-910.02 Building Renewal Grant - to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.

ASSETSCash and investmentsAccounts receivable

Total assets


Accounts payableDue to other funds

Total liabilities



Total fund balances


Insurance Proceeds

$ 601913,859

$ 914,460

$ 627,434269,117896,551

613,859

(595,950)(595,950)

$ 914,460

Energy and Water Savings

$ 432,486

$ 432,486

$

432,486

432,486

$ 432,486

Totals

$ 433,087913,859

$ 1,346,946

$ 627,434269,117896,551

613,859

432,486(595,950)(163,464)

$ 1,346,946

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS

JUNE 30, 2015

Page 108


Total revenues


InstructionSupport services - students and staffStudent transportation services



Total expenditures


Other financing sources (uses):Transfer in





Insurance Proceeds

$ 2,076,607

2,076,607

14,43825,1064,299

2,764,698

2,808,541

(731,934)

(731,934)

135,984

$ (595,950)


$ 636

431,850432,486

1,009,331657,973

1,667,304

(1,234,818)

1,187,3121,187,312

(47,506)

479,992

$ 432,486

Building Renewal Grant

$96,998

96,998

96,998

96,998

$


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2015

Page 110

Totals

$ 2,077,24396,998

431,8502,606,091

14,43825,1064,299

2,861,696

1,009,331657,973

4,572,843

(1,966,752)

1,187,3121,187,312

(779,440)

615,976

$ (163,464)

Page 111

Total revenues






Total expenditures







Insurance Proceeds

Budget

$ 350,000

350,000

50,000180,00010,000

3,760,000

4,000,000

(3,650,000)

(3,650,000)

150,000

$ (3,500,000)

Actual

$ 2,076,607

2,076,607

14,43825,106

4,2992,764,698

2,808,541

(731,934)

(731,934)

135,984

$ (595,950)

Variance - Positive

(Negative)

$ 1,726,607

1,726,607

35,562154,894

5,701995,302

1,191,459

2,918,066

2,918,066

(14,016)

$ 2,904,050


BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS


Page 112

Unrestricted Capital Outlay

Budget

$ 10,000575,021

585,021

2,980,849

200,00020,000

3,200,849

(2,615,828)

(2,615,828)

2,500,000

$ (115,828)

Non-GAAP Actual

$ 4,342

4,342

1,081,268

165,45914,762

1,261,489

(1,257,147)

(1,257,147)

2,231,096

$ 973,949

Variance - Positive

(Negative)

$ (5,658)(575,021)

(580,679)

1,899,581

34,5415,238

1,939,360

1,358,681

1,358,681

(268,904)

$ 1,089,777

Bond Building

Budget

$

29,950,000

29,950,000

(29,950,000)

(50,000)(50,000)

(30,000,000)

30,000,000

$

Actual

$ 45,290

45,290

14,921,755

14,921,755

(14,876,465)

(45,279)(45,279)

(14,921,744)

21,718,365

$ 6,796,621

Variance - Positive

(Negative)

$ 45,290

45,290

15,028,245

15,028,245

15,073,535

4,7214,721

15,078,256

(8,281,635)

$ 6,796,621

Page 113(Continued)

Total revenues






Total expenditures







Gifts and Donations - Capital

Budget

$ 50,000

50,000

50,000

50,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (50,000)

(50,000)

50,000

50,000

$




Page 114


Budget

$ 1,700,000

1,700,000

1,010,000660,000

1,670,000

30,000

30,000

$ 30,000

Actual

$ 636

431,850432,486

1,009,331657,973

1,667,304

(1,234,818)

1,187,312

1,187,312

(47,506)

479,992

$ 432,486

Variance - Positive

(Negative)

$ (1,699,364)

431,850(1,267,514)

6692,0272,696

(1,264,818)

1,187,312

1,187,312

(77,506)

479,992

$ 402,486

Building Renewal Grant

Budget

$

150,000

150,000

150,000

150,000

$

Actual

$

96,998

96,998

96,998

96,998

$

Variance - Positive

(Negative)

$

(53,002)

(53,002)

53,002

53,002

$

Page 115(Continued)

Total revenues






Total expenditures







Totals

Budget

$ 2,110,000575,021150,000

2,835,021

50,000180,00010,000

36,890,849

1,210,000680,000

39,020,849

(36,185,828)

(50,000)(50,000)

(36,235,828)

32,650,000

$ (3,585,828)

Non-GAAP Actual

$ 2,126,875

96,998431,850

2,655,723

14,43825,1064,299

18,864,719

1,174,790672,735

20,756,087

(18,100,364)

1,187,312(45,279)

1,142,033

(16,958,331)

24,565,437

$ 7,607,106

Variance - Positive

(Negative)

$ 16,875(575,021)

(53,002)431,850

(179,298)

35,562154,894

5,70118,026,130

35,2107,265

18,264,762

18,085,464

1,187,3124,721

1,192,033

19,277,497

(8,084,563)

$ 11,192,934




Page 116

AGENCY FUND Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUND


Beginning EndingBalance Additions Deductions Balance

STUDENT ACTIVITIES FUND

AssetsCash and investments $ 1,337,211 $ 3,266,762 $ 3,320,289 $ 1,283,684

Total assets $ 1,337,211 $ 3,266,762 $ 3,320,289 $ 1,283,684

Liabilities

Due to student groups

Apollo High School $ 129,389 $ 404,221 $ 438,585 $ 95,025

Cortez High School 71,608 243,806 241,620 73,794

Glendale High School 108,720 222,681 222,011 109,390

Greenway High School 213,075 498,380 544,230 167,225

Independence High School 56,160 262,343 264,143 54,360

Moon Valley High School 133,477 428,949 426,357 136,069

Sunnyslope High School 229,247 418,852 432,266 215,833

Thunderbird High School 222,479 445,010 426,702 240,787

Washington High School 173,056 342,520 324,375 191,201

Total liabilities $ 1,337,211 $ 3,266,762 $ 3,320,289 $ 1,283,684

Page 118

STATISTICAL SECTION

The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below.

Financial Trends

These schedules contain information on financial trends to help the reader understand how the District’s financial position and financial activities have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the factors affecting the District’s ability to generate revenue.

Debt Capacity

These schedules present information to help the reader evaluate the District’s current levels of outstanding debt as well as assess the District’s ability to make debt payments and/or issue additional debt in the future.

Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the District’s financial activities take place and to help make comparisons with other school districts.

Operating Information

These schedules contain information about the District’s operations and various resources to help the reader draw conclusions as to how the District’s financial information relates to the services provided by the District.

2015 2014 2013 2012 2011Net Position:

Net investment in capital assets 68,571,880$ 65,519,857$ 71,522,904$ 72,717,622$ 82,831,958$ Restricted 10,735,131 12,156,390 14,157,650 14,231,302 13,006,076 Unrestricted (107,574,564) 14,586,455 11,748,023 13,471,826 15,425,903

Total net position (28,267,553)$ 92,262,702$ 97,428,577$ 100,420,750$ 111,263,937$

2010 2009 2008 2007 2006Net Position:

Net investment in capital assets 81,208,024$ 77,528,552$ 76,283,953$ 75,353,598$ 69,414,148$ Restricted 5,410,076 6,327,344 7,073,274 8,123,977 8,115,625 Unrestricted 26,315,868 23,270,954 26,783,596 20,848,604 20,110,045

Total net position 112,933,968$ 107,126,850$ 110,140,823$ 104,326,179$ 97,639,818$

The source of this information is the District's financial records.Source:

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

Page 120

2015 2014 2013 2012 2011

Instruction 80,760,277$ 85,631,212$ 78,842,960$ 83,521,195$ 76,512,201$ Support services - students and staff 18,621,487 16,471,428 16,684,162 16,511,684 16,457,842 Support services - administration 11,175,762 10,294,806 11,078,706 11,150,842 10,388,425 Operation and maintenance of plant services 16,464,033 16,130,826 17,036,763 17,163,902 17,427,231 Student transportation services 5,468,997 4,762,011 5,022,715 5,083,748 4,400,204 Operation of non-instructional services 6,777,999 6,555,844 6,211,470 6,128,182 5,868,445 Interest on long-term debt 3,960,593 4,212,301 3,425,549 3,304,805 3,712,985

Total expenses 143,229,148 144,058,428 138,302,325 142,864,358 134,767,333

Program RevenuesCharges for services:

Instruction 6,004,775 3,309,228 3,016,730 3,435,111 4,667,193 Operation of non-instructional services 1,125,315 1,164,804 1,181,326 1,347,068 1,416,067 Other activities 1,413,698 1,309,266 1,806,638 1,614,832 435,170

Operating grants and contributions 15,957,107 14,828,503 15,549,564 16,393,238 18,483,695 Capital grants and contributions 2,417,024 2,193,458 1,187,994 1,514,210 2,529,106

Total program revenues 26,917,919 22,805,259 22,742,252 24,304,459 27,531,231

Net (Expense)/Revenue (116,311,229)$ (121,253,169)$ (115,560,073)$ (118,559,899)$ (107,236,102)$

The source of this information is the District's financial records.The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore

only six years are shown.

(Continued)

Note:

LAST TEN FISCAL YEARS(Accrual basis of accounting)


Expenses

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Source:

Page 121

2010 2009 2008 2007 2006Expenses

Instruction 79,696,099$ 83,091,797$ 81,886,676$ 79,109,165$ 73,165,544$ Support services - students and staff 15,171,959 14,690,034 14,470,210 13,148,057 11,779,900 Support services - administration 10,447,009 10,557,989 9,915,076 9,253,468 8,491,869 Operation and maintenance of plant services 16,824,102 17,791,027 18,195,724 17,045,674 14,758,857 Student transportation services 4,120,576 4,380,713 4,296,129 3,797,317 3,413,369 Operation of non-instructional services 5,949,267 5,583,176 5,374,049 5,047,045 4,839,995 Interest on long-term debt 4,161,608 4,560,667 4,996,778 5,877,283 4,085,627

Total expenses 136,370,620 140,655,403 139,134,642 133,278,009 120,535,161

Program RevenuesCharges for services:

Instruction 3,826,784 5,283,590 5,897,677 3,874,662 3,479,051 Operation of non-instructional services 3,236,349 1,780,752 2,136,321 4,410,043 2,063,499 Other activities 433,974 403,877 434,902 481,805 402,362

Operating grants and contributions 13,971,040 11,924,732 10,773,122 10,372,374 9,798,723 Capital grants and contributions 3,252,134 1,319,350 1,487,994 2,007,476 2,477,723

Total program revenues 24,720,281 20,712,301 20,730,016 21,146,360 18,221,358


(Concluded)

(Accrual basis of accounting)LAST TEN FISCAL YEARS


Source: The source of this information is the District's financial records.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Page 122

2015 2014 2013 2012 2011


General Revenues: Taxes:

Property taxes, levied for general purposes 37,276,839 37,765,761 38,423,129 37,864,238 35,513,430 Property taxes, levied for debt service 18,166,723 17,103,221 16,401,494 14,200,832 14,830,489 Property taxes, levied for capital outlay 1,352,839 523,661

Investment income 231,113 256,701 164,202 229,392 194,500 Unrestricted county aid 5,052,003 4,983,135 4,779,193 4,883,397 4,525,886 Unrestricted state aid 57,506,823 56,425,097 52,530,318 49,001,621 49,087,899 Unrestricted federal aid 874,648 279,751 269,564 184,393 890,206

Total general revenues 119,108,149 116,813,666 112,567,900 107,716,712 105,566,071

Changes in Net Position 2,796,920$ (4,439,503)$ (2,992,173)$ (10,843,187)$ (1,670,031)$


Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown.

(Continued)


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION

LAST TEN FISCAL YEARS(Accrual basis of accounting)

Page 123

2010 2009 2008 2007 2006


General Revenues: Taxes:

Property taxes, levied for general purposes 45,041,668 44,761,841 42,171,029 39,000,253 39,320,305 Property taxes, levied for debt service 14,045,415 13,008,629 13,189,880 12,146,164 12,442,797 Property taxes, levied for capital outlay 374,110 1,562,790 1,434,009 1,585,838 2,418,251

Investment income 343,373 1,043,095 1,601,145 1,841,569 1,569,179 Unrestricted county aid 3,950,808 41,507 3,503,755 Unrestricted state aid 49,294,432 56,552,774 65,823,207 64,202,679 56,731,000 Unrestricted federal aid 4,407,651

Total general revenues 117,457,457 116,929,129 124,219,270 118,818,010 115,985,287

Changes in Net Position 5,807,118$ (3,013,973)$ 5,814,644$ 6,686,361$ 13,671,484$

The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

(Concluded)

GENERAL REVENUES AND TOTAL CHANGES IN NET POSITIONLAST TEN FISCAL YEARS


(Accrual basis of accounting)

The source of this information is the District's financial records.


Source: Notes:

Page 124

2015 2014 2013 2012 2011General Fund:

Nonspendable $ $ 43,198$ 143,422$ 144,418$ Restricted 973,949 2,231,096 2,481,616 2,661,692 1,859,084 Unassigned 5,131,075 5,039,954 5,075,285 6,473,998 8,330,554 Reserved Unreserved

Total General Fund 6,105,024$ 7,271,050$ 7,600,099$ 9,279,112$ 10,334,056$

All Other Governmental Funds:Restricted 15,341,486 31,350,457 17,358,271 23,400,794 12,875,813 Unassigned (746,788) Reserved Unreserved, reported in:

Special revenue funds Capital projects funds Debt service fund

Total all other governmental funds 14,594,698$ 31,350,457$ 17,358,271$ 23,400,794$ 12,875,813$

(Continued)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205FUND BALANCES - GOVERNMENTAL FUNDS


LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 125

2010 2009 2008 2007 2006General Fund:

Reserved 1,294,676 1,514,225 1,042,351 1,026,297 966,319 Unreserved 5,452,000 (1,283,461) 1,929,331 911,875 1,844,628

Total General Fund 6,746,676$ 230,764$ 2,971,682$ 1,938,172$ 2,810,947$

All Other Governmental Funds:Reserved 60,895 55,554 74,883 66,699 Unreserved, reported in:

Special revenue funds 9,150,572 12,391,668 13,252,471 10,572,581 7,715,033 Capital projects funds 8,097,601 10,900,270 11,970,272 17,152,891 31,022,502 Debt service fund 643,123 804,682 1,725,832 1,662,528 2,162,060

Total all other governmental funds 17,891,296$ 24,157,515$ 27,004,129$ 29,462,883$ 40,966,294$

Source:Note:

(Concluded)

The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011. The standard replaces the previous reserved and unreserved fund balance categories with the following five fund balance classifications: nonspendable, restricted, committed, assigned, and unassigned fund balance.


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205FUND BALANCES - GOVERNMENTAL FUNDS


Page 126

2015 2014 2013 2012 2011Federal sources:

Federal grants 13,740,107$ 12,573,933$ 12,529,067$ 12,333,073$ 14,947,393$ State Fiscal Stabilization (ARRA) 672,657 Education Jobs 1,294,845 1,651,769 National School Lunch Program 3,917,114 4,063,662 3,790,118 3,906,184 3,727,349 Total federal sources 17,657,221 16,637,595 16,319,185 17,534,102 20,999,168

State sources:State equalization assistance 50,780,535 49,613,883 46,946,869 44,208,984 44,800,422 State grants 1,151,164 519,020 681,854 602,092 679,042 Other revenues 6,629,290 6,811,216 5,516,877 4,792,637 4,574,640 Total state sources 58,560,989 56,944,119 53,145,600 49,603,713 50,054,104

Local sources:Property taxes 55,394,716 54,913,206 54,453,151 53,537,575 51,838,935 County aid 5,052,003 4,983,135 4,779,193 4,883,397 4,525,886 Food service sales 1,125,315 1,164,804 1,181,326 1,347,068 1,416,067 Investment income 190,687 263,696 123,780 199,394 154,108 Other revenues 6,832,454 4,648,999 4,949,123 5,117,826 5,152,219 Total local sources 68,595,175 65,973,840 65,486,573 65,085,260 63,087,215 Total revenues 144,813,385$ 139,555,554$ 134,951,358$ 132,223,075$ 134,140,487$

(Continued)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS REVENUES



(Modified accrual basis of accounting)

Page 127

2010 2009 2008 2007 2006Federal sources:

Federal grants 17,014,604$ 9,058,259$ 8,880,521$ 9,046,411$ 8,230,607$ National School Lunch Program 3,493,989 2,902,406 2,393,767 2,086,601 2,046,959 Total federal sources 20,508,593 11,960,665 11,274,288 11,133,012 10,277,566

State sources:State equalization assistance 44,644,392 50,699,942 55,076,675 52,585,167 44,644,670 State grants 810,382 1,147,341 986,828 708,350 743,061 School Facilities Board 1,301,233 3,915,505 5,469,563 Other revenues 4,863,402 5,834,837 9,003,197 7,702,007 6,616,767 Total state sources 50,318,176 57,682,120 66,367,933 64,911,029 57,474,061

Local sources:Property taxes 56,837,104 56,955,277 56,396,723 53,237,457 53,748,264 County aid 3,950,808 41,507 3,503,755 Food service sales 1,568,075 1,780,752 2,136,321 2,107,289 2,063,499 Investment income 303,310 906,424 1,510,370 1,717,534 1,569,179 Other revenues 5,929,032 5,823,543 6,332,579 7,197,709 5,212,302 Total local sources 68,588,329 65,465,996 66,375,993 64,301,496 66,096,999 Total revenues 139,415,098$ 135,108,781$ 144,018,214$ 140,345,537$ 133,848,626$

The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

(Concluded)

Note:Source: The source of this information is the District's financial records.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS REVENUES


Page 128

2015 2014 2013 2012 2011


Instruction 67,162,259$ 66,779,255$ 65,814,866$ 64,124,472$ 64,906,264$ Support services - students and staff 17,059,899 15,475,648 15,297,385 14,665,021 15,288,444 Support services - administration 10,146,560 9,703,132 9,899,853 9,825,148 9,517,615 Operation and maintenance of plant services 15,747,597 15,829,716 16,212,502 16,367,662 15,655,937 Student transportation services 4,612,160 4,364,117 4,363,831 3,880,454 3,724,180 Operation of non-instructional services 6,079,435 5,982,059 5,570,195 5,433,331 5,273,236

Capital outlay 21,434,343 32,220,582 13,188,198 28,478,258 6,639,595 Debt service -

Principal retirement 16,634,790 15,854,070 14,110,460 11,112,891 11,052,541 Interest, premium and fiscal charges 4,089,756 4,341,464 3,428,581 3,260,305 3,712,985 Bond issuance costs 384,735 235,300 607,693

Total expenditures 162,966,799$ 170,934,778$ 148,121,171$ 157,755,235$ 135,770,797$

Expenditures for capitalized assets 13,376,586$ 29,543,313$ 10,696,631$ 19,293,013$ 868,756$

Debt service as a percentage ofnoncapital expenditures 14% 15% 13% 11% 11%

Source: The source of this information is the District's financial records.Notes:

(Continued)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO



Page 129

2010 2009 2008 2007 2006


Instruction 64,939,128$ 68,547,107$ 69,122,480$ 67,750,209$ 62,442,173$ Support services - students and staff 14,096,986 13,596,691 13,787,354 12,360,293 11,341,021 Support services - administration 9,311,974 9,403,770 9,011,279 8,680,068 8,431,568 Operation and maintenance of plant services 16,065,689 17,380,775 17,751,427 16,621,124 14,319,057 Student transportation services 3,516,154 3,711,663 3,748,614 3,349,652 3,000,665 Operation of non-instructional services 5,220,842 5,093,620 4,852,733 4,624,612 4,476,287

Capital outlay 11,081,662 7,888,681 13,949,543 25,054,723 51,980,180 Debt service -

Principal retirement 10,656,562 10,214,474 9,464,635 8,534,196 9,486,027 Interest, premium and fiscal charges 4,161,608 5,336,747 4,996,778 5,815,008 4,355,018 Bond issuance costs 192,700

Total expenditures 139,050,605$ 141,173,528$ 146,684,843$ 152,789,885$ 170,024,696$

Expenditures for capitalized assets 6,450,721$ 3,999,164$ 8,420,592$ 20,501,173$ 47,827,047$

Debt service as a percentage ofnoncapital expenditures 11% 11% 10% 11% 11%

Source:

(Concluded)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO




Page 130

2015 2014 2013 2012 2011

Excess (deficiency) of revenues over expenditures (18,153,414)$ (31,379,224)$ (13,169,813)$ (25,532,160)$ (1,630,310)$

Other financing sources (uses):General obligation bonds issued 44,000,000 5,125,000 22,440,000 Premium on sale of bonds 595,619 4,014,785 563,193 Capital lease agreements 231,629 489,940 141,893 12,000,000 213,753 Transfers in 1,773,535 2,067,327 1,253,086 629,601 1,141,385 Transfers out (1,773,535) (2,067,327) (1,253,086) (629,601) (1,141,385) Issuance of refunding bonds 50,495,000 Payment to refunded bond escrow agent (54,228,177)

Total other financing sources (uses) 231,629 45,085,559 5,548,501 35,003,193 213,753

Changes in fund balances (17,921,785)$ 13,706,335$ (7,621,312)$ 9,471,033$ (1,416,557)$

2010 2009 2008 2007 2006

Excess (deficiency) of revenues over expenditures 364,493$ (6,064,747)$ (2,666,629)$ (12,444,348)$ (36,176,070)$

Other financing sources (uses):General obligation bonds issued 30,000,000 Premium on sale of bonds 586,641 Capital lease agreements 165,644 1,244,630 Transfers in 381,315 496,641 287,705 918,463 1,149,103 Transfers out (381,315) (496,641) (287,705) (918,463) (1,149,103)

Total other financing sources (uses) 165,644 1,244,630 30,586,641

Changes in fund balances 530,137$ (6,064,747)$ (1,421,999)$ (12,444,348)$ (5,589,429)$


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS



(Modified accrual basis of accounting)

Page 131

Class 2015 2014 2013 2012 2011

Commercial, Industrial, Utilities and Mining $ 549,271,453 $ 564,452,948 $ 630,413,894 $ 690,178,704 $ 860,528,202

Agricultural and Vacant 23,847,520 29,590,751 34,958,819 41,459,228 52,696,824

Residential (Owner Occupied) 511,164,324 482,112,023 572,905,669 676,105,997 905,575,989

Residential (Rental) 232,460,158 205,966,262 191,990,564 224,635,000 299,914,473

Railroad, Private Cars and Airlines 1,610,083 1,479,206 1,566,518 1,380,945 1,358,047

Historical Property 424,720 379,667 393,019 268,869 450,537

Certain Government Property Improvements 101,963 71,136 79,365 93,427 -

Total $ 1,318,880,221 $ 1,284,051,993 $ 1,432,307,848 $ 1,634,122,170 $ 2,120,524,072

Estimated Actual Value (Full Cash Value) $ 13,307,316,052 $ 11,951,889,810 $ 13,036,334,497 $ 14,871,250,140 $ 19,664,740,062

Ratio of Primary Assessed Value to Estimated Actual Value 10% 11% 11% 11% 11%Total Direct Rate 4.42 4.58 4.10 3.53 2.73

Class 2010 2009 2008 2007 2006



Residential (Owner Occupied) 1,181,955,906 1,079,217,763 933,361,976 823,983,141 787,824,561



Historical Property 425,526 204,558 137,561 55,111 53,842

Certain Government Property Improvements - - - - -

Total $ 2,416,157,641 $ 2,222,057,420 $ 1,981,959,464 $ 1,799,850,656 $ 1,708,198,371

Estimated Actual Value (Full Cash Value) $ 24,798,056,858 $ 25,399,826,339 $ 20,980,606,849 $ 15,538,728,841 $ 14,871,311,867

Ratio of Primary Value to Estimated Actual Value 10% 9% 9% 12% 11%

Total Direct Rate 2.60 2.73 3.03 3.33 3.47

Source:

Note: The primary assessed value generates revenues for general District operations.

PRIMARY ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY BY CLASSGLENDALE UNION HIGH SCHOOL DISTRICT NO. 205


Fiscal Year

Fiscal Year

The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Page 132

Class 2015 2014 2013 2012 2011



Residential (Owner Occupied) 558,656,703 483,626,031 574,520,495 677,202,606 906,857,896



Historical Property 684,426 619,483 621,042 457,639 1,220,486

Certain Government Property Improvements 103,652 71,136 79,365 93,427 -

Total $ 1,403,097,844 $ 1,290,863,099 $ 1,435,960,904 $ 1,638,565,455 $ 2,216,354,285

Ratio of Secondary Assessed Value to Estimated Actual Value 11% 11% 11% 11% 11%


Class 2010 2009 2008 2007 2006

Commercial, Industrial, Utilities and Mining $ 1,019,303,793 $ 945,098,205 $ 847,320,913 $ 776,910,451 $ 719,351,053


Residential (Owner Occupied) 1,322,864,086 1,485,931,153 1,226,136,967 834,535,566 828,898,327



Historical Property 1,111,534 511,744 383,781 60,177 60,852

Certain Government Property Improvements - - - - -

Total $ 2,794,704,869 $ 2,869,219,100 $ 2,422,636,313 $ 1,886,109,179 $ 1,802,675,187

Ratio of Secondary Assessed Value to Estimated Actual Value 11% 11% 12% 12% 12%


Source: Note:

The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.The secondary assessed value generates revenues to service District bonded debt requirements and other voter-approved overrides.

Fiscal Year

Fiscal Year

LAST TEN FISCAL YEARSSECONDARY ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS


Page 133

Class 2015 2014 2013 2012 2011

Commercial, Industrial, Utilities and Mining 19 % 20 % 20 % 20 % 21 %

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 16 15 15 15 17

Class 2010 2009 2008 2007 2006

Commercial, Industrial, Utilities and Mining 22 % 23 % 24 % 25 % 25 %

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 18 20 21 22 21

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: Additional classes of property exist, but do not amount to a significant portion of the District's total valuation, therefore they are not included on this schedule.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PROPERTY TAX ASSESSMENT RATIOS


Fiscal Year

Fiscal Year

Page 134

Fiscal Year

Ended MaricopaJune 30 County Primary Secondary Total

2015 0.51 1.32 1.52 2.15 1.82 6.46 5.70 0.08 2.59 1.83 4.42 2014 0.51 1.28 1.53 2.29 1.82 7.30 6.02 0.06 2.69 1.89 4.58 2013 0.47 1.24 1.38 1.90 1.82 6.94 4.71 0.05 2.46 1.64 4.10 2012 0.43 1.24 1.21 1.60 1.82 6.41 4.61 0.05 2.24 1.29 3.53 2011 0.36 1.05 0.97 1.60 1.82 4.77 3.38 0.05 1.68 1.05 2.73 2010 0.33 0.66 0.88 1.60 1.82 3.99 3.08 0.05 1.84 0.76 2.60 2009 1.03 0.94 1.60 1.82 4.31 3.69 0.05 2.02 0.71 2.73 2008 1.10 0.98 1.62 1.82 5.38 3.84 0.05 2.20 0.83 3.03 2007 1.18 1.06 1.72 1.82 6.51 4.12 0.05 2.31 1.02 3.33 2006 1.20 1.03 1.72 1.82 6.62 4.08 0.05 2.43 1.04 3.47

Note: There was no state equalization tax rate overlap prior to 2010.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205DIRECT AND OVERLAPPING PROPERTY TAX RATES


Source:

District Direct Rates

The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation.

Overlapping Rates

State Equalization

Community College District

City of Glendale

City of Phoenix

Glendale Elementary

School District No. 40

West-MEC No. 402

Washington Elementary

School District No. 6

Page 135

Secondary Assessed Valuation

Secondary Assessed Valuation

Arizona Public Service Company 110,160,954$ 7.85 % $ 64,572,100 3.58 %Century Link 13,889,614 0.99VHS of Phoenix, Inc 7,126,584 0.51 7,486,870 0.42 Canyon Corporate Plaza Properties LLC 6,475,000 0.46PDG America Properties LLC 5,967,462 0.43M2 Phoenix 1222 LLC 5,599,129 0.40Southwest Gas Corp. 5,106,249 0.36 11,757,640 0.65 Bay Pacific Phoenix Coporate Center LLC 4,482,470 0.32Granite Black Canyon Holdings LLC 3,812,609 0.27CRP Holdings San Valiente LLC 2,556,945 0.18Qwest 40,658,270 2.26 TP Racing LLP 10,908,230 0.61 Metrocenter Associates LLC 9,363,100 0.52 Metropolitan Life Insurance Company 8,813,090 0.49 Transwestern Phoenix Corporate Center 7,195,450 0.40 Metrorising Ams Owner LLC 6,900,380 0.38 Bell Towne Centre Associates LLC 6,240,060 0.35

Total 165,177,016$ 11.76 % 173,895,190$ 9.65 %

Source: The source of this information is the Maricopa County Assessor's records.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PRINCIPAL PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Percentage of District's Net

Assessed Valuation

Percentage of District's Net Assessed Valuation

2006

Taxpayer

2015

Page 136

FiscalYear Taxes Levied Collections in

Ended for the Subsequent June 30 Fiscal Year Amount Fiscal Years Amount(2)

2015 59,924,837$ 57,169,148$ 95.40 % $ 57,169,148$ 95.40 %2014 58,680,826 55,790,795 95.07 440,885 56,231,680 95.832013 58,908,471 55,691,901 94.54 3,173,866 58,865,767 99.932012 57,541,427 54,278,035 94.33 3,251,350 57,529,385 99.982011 57,552,868 54,410,329 94.54 2,647,476 57,057,805 99.142010 65,875,793 59,204,539 89.87 6,664,275 65,868,814 99.992009 65,182,598 60,417,389 92.69 2,082,186 62,499,575 95.882008 63,860,753 61,502,222 96.31 1,620,120 63,122,342 98.842007 60,571,827 58,637,059 96.81 1,930,451 60,567,510 99.992006 60,268,484 57,844,169 95.98 2,419,852 60,264,021 99.99

Source:Notes: 1)

2)

Fiscal Year of the LevyCollected within the

of the Current Fiscal Year

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PROPERTY TAX LEVIES AND COLLECTIONS


Collected to the End

Unsecured personal property taxes are not included in this schedule because the dates of the monthly rollsvary each year. On the average, 90% of unsecured property taxes are collected within 90 days after thedue date.

Amounts collected are on a cash basis.The source of this information is the Maricopa County Treasurer's records.

of LevyPercentage

of LevyPercentage

Page 137

Fiscal Less: Percentage of Percentage of Year Estimated Estimated Percentage of

Ended Actual Value Per Actual Value Per Personal June 30 Total (Full Cash Value) Capita Total (Full Cash Value) Capita Income

2015 112,246,935$ 1,177,792$ 111,069,143$ 0.83 % 317$ 9,736,820$ 121,983,755$ 0.92 % 349$ 0.07 %2014 124,390,000 1,492,224 122,897,776 1.03 351 10,679,981 135,069,981 1.13 386 0.09 2013 93,475,000 2,229,306 91,245,694 0.70 261 11,344,111 104,819,111 0.80 299 0.07 2012 99,365,000 1,477,668 97,887,332 0.66 280 12,227,678 111,592,678 0.75 319 0.08 2011 87,505,000 10,580,000 76,925,000 0.39 220 325,569 87,830,569 0.45 251 0.06 2010 97,635,000 10,130,000 87,505,000 0.35 230 584,357 98,219,357 0.40 258 0.07 2009 107,340,000 9,705,000 97,635,000 0.38 257 945,275 108,285,275 0.43 285 0.08 2008 116,090,000 8,750,000 107,340,000 0.51 290 1,454,749 117,544,749 0.56 318 0.09 2007 123,965,000 7,875,000 116,090,000 0.75 322 924,754 124,889,754 0.80 347 0.10 2006 132,745,000 8,780,000 123,965,000 0.83 354 1,583,950 134,328,950 0.90 384 0.12

Source:Note: N/A indicates that the information is not available.


General Obligation Bonds

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205OUTSTANDING DEBT BY TYPE


Total Outstanding Debt

General Obligation

Bonds

Amounts Restricted

for PrincipalCapital Leases

Page 138

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Overlapping:Maricopa County Community College District 593,820,000$ 3.90 % 23,158,980$ Maricopa County Special Healthcare District 106,000,000 3.90 4,134,000$ City of Glendale 126,305,000 21.96 27,736,578 City of Phoenix 1,428,097,000 10.16 145,094,655 Washington Elementary School District No. 6 63,665,000 100.00 63,665,000 Glendale Elementary School District No. 40 19,390,000 100.00 19,390,000 Western Maricopa Education Center (West-Mec) 72,995,000 10.56 7,708,272

Subtotal, Overlapping Debt 290,887,485

Direct:Glendale Union High School District No. 205 121,983,755

Total Direct and Overlapping Governmental Activities Debt 412,871,240$

Net Direct General Obligation Bonded DebtAs a Percentage of Net Secondary Assessed Valuation 7.82 %

Net Direct and Overlapping General Bonded DebtPer Capita 1,145$ As a Percentage of Net Secondary Assessed Valuation 28.55 %As a Percentage of Estimated Actual Value (Full Cash Value) 3.01 %

Source:

Notes: 1)

2)

The source of this information is the District's records and the State and County Abstract of theAssessment Roll, Arizona Department of Revenue and the applicable governmental unit.

Estimated percentage of debt outstanding applicable to the District is calculated based on theDistrict's secondary assessed valuation as a percentage of the secondary assessed valuation of theoverlapping jurisdiction.Outstanding debt as of June 30, 2014 is presented for the overlapping governments as this is the most recent available information.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2015

Governmental Unit

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Page 139

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2015: Total Legal Debt Margin Calculation for Fiscal Year 2015:Secondary assessed valuation 1,403,097,844$ Secondary assessed valuation 1,403,097,844$ Debt limit (10% of assessed value) 140,309,784 Debt limit (15% of assessed value) 210,464,677 Debt applicable to limit 108,070,000 Debt applicable to limit 109,690,000 Legal debt margin 32,239,784$ Legal debt margin 100,774,677$

2015 2014 2013 2012 2011

Debt Limit 210,464,677$ 193,629,465$ 215,394,136$ 245,784,818$ 332,453,143$

Total net debt applicable to limit 109,690,000 124,390,000 93,475,000 99,365,000 87,505,000

Legal debt margin 100,774,677$ 69,239,465$ 121,919,136$ 146,419,818$ 244,948,143$

Total net debt applicable to the limit as a percentage of debt limit 52% 64% 43% 40% 26%

2010 2009 2008 2007 2006

Debt Limit 419,205,730$ 430,382,865$ 363,395,447$ 282,916,377$ 270,666,865$

Total net debt applicable to limit 97,635,000 107,340,000 116,090,000 123,965,000 132,745,000

Legal debt margin 321,570,730$ 323,042,865$ 247,305,447$ 158,951,377$ 137,921,865$

Total net debt applicable to the limit as a percentage of debt limit 23% 25% 32% 44% 49%

Source:Notes: 1)

2) Bond premium is not subject to the statutory debt limit.

The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligationbonds and the statutory debt limit on Class B bonds. The calculations of the debt margins are presented in detail for the current fiscal yearonly.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205LEGAL DEBT MARGIN INFORMATION




Page 140

Estimated

Year Population (thousands)

2014 4,087,191 $ 168,483,421 $ 41,222 % 350,000 2013 3,944,859 154,926,697 39,273 350,000 2012 3,824,058 147,374,500 38,538 350,000 2011 3,843,370 142,864,275 37,352 350,000 2010 3,817,117 142,091,618 35,319 350,000 2009 4,023,331 147,122,078 37,168 380,000 2008 4,338,500 139,665,253 36,135 380,000 2007 3,907,492 132,423,154 35,046 370,000 2006 3,791,675 120,716,738 33,178 360,000 2005 3,648,545 111,103,576 31,757 350,000

Sources: The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.The source of the "Population" and "Unemployment Rate" information from 2005 through 2010 is theUniversity of Arizona, Eller College of Management, Economic and Business Research Center. For 2011through 2014, the source of the information is the Arizona Office of Employment and Population Statistics.

5.9 6.7 9.1 8.4 8.5 8.7 4.9 3.2 3.5 4.4

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

Personal Income Per Capita

IncomeUnemployment

RateDistrict

Population

Page 141

Percentage Percentageof Total of Total

Employees Employment Employees Employment

State of Arizona 49,800 2.71 % 49,958 2.61 %Wal-Mart Stores Inc. 30,634 1.67 28,246 1.47 Banner Health Systems 24,825 1.35 19,250 1.00 City of Phoenix 15,100 0.82 13,844 0.72 Wells Fargo Company 13,308 0.72 11,553 0.60 Bank of America 13,300 0.72 Maricopa County 12,792 0.70 13,002 0.68 Raytheon Co. 11,500 0.63 Arizona State University 11,185 0.61 11,202 0.58 Apollo Group Inc. 11,000 0.60 Honeywell 10,700 0.56 Intel Corp. 10,100 0.53 U.S. Postal Service 11,000 0.57

Total 193,444 10.53 % 178,855 9.32 %

Total employment 1,836,600 1,916,003

Source:Note: The information presented above is County-wide.

The source of this information is the Business Journal Book of Lists.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2015 2006

Page 142

2015 2014 2013 2012 2011

SupervisoryPrincipals 9 9 9 9 9 Assistant principals 27 27 27 27 27

Total supervisory 36 36 36 36 36 Instruction

Teachers 712 712 706 681 682 Other professionals (instructional) 26 21 5 10 5 Aides 203 203 197 191 195

Total instruction 941 936 908 882 882 Student Services

Librarians 9 9 9 9 9 Technicians 10 12 11 13 10 Social Workers/Counselors 42 42 43 41 37

Total student services 61 63 63 63 56 Support and Administration

Support staff - Office 177 169 210 206 180 Support staff - Maintenance 151 154 162 142 158 Support staff - Transportation 64 62 61 70 46 Support staff - Food services 54 64 59 51 57

Total support and administration 446 449 492 469 441

Total 1,484 1,484 1,499 1,450 1,415

(Continued)

Full-time Equivalent Employees as of June 30


GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

Page 143

2010 2009 2008 2007 2006

SupervisoryPrincipals 9 9 9 9 9 Assistant principals 27 27 27 27 27

Total supervisory 36 36 36 36 36 Instruction

Teachers 698 707 734 754 733 Other professionals (instructional) 8 9 8 2 3 Aides 195 169 163 160 173

Total instruction 901 885 905 916 909 Student Services

Librarians 9 18 18 18 18 Technicians 10 8 13 13 13 Social Workers/Counselors 37 35 39 39 39

Total student services 56 61 70 70 70 Support and Administration

Support staff - Office 180 184 178 175 182 Support staff - Maintenance 162 160 151 144 151 Support staff - Transportation 49 57 31 33 46 Support staff - Food services 57 62 66 42 37

Total support and administration 448 463 426 394 416

Total 1,441 1,445 1,437 1,416 1,431

Source:

(Concluded)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE


The source of this information is District personnel records.

Page 144

FiscalYear Cost Cost Pupil-

Ended per Percentage per Percentage Teaching TeacherJune 30 Pupil Change Expenses Pupil Change Staff Ratio

2015 15,096 120,807,910$ 8,003$ 1.48 % 143,229,148$ 9,488$ (1.33) % 712 21.2 64.5 %2014 14,981 118,133,927 7,886 (0.52) 144,058,428 9,616 2.76 712 21.0 63.4 2013 14,780 117,158,632 7,927 2.44 138,302,325 9,357 (3.25) 706 20.9 62.6 2012 14,771 114,296,088 7,738 (1.45) 142,864,358 9,672 4.54 681 21.7 61.6 2011 14,566 114,365,676 7,852 2.04 134,767,333 9,252 (0.23) 682 21.4 59.2 2010 14,705 113,150,773 7,695 (4.05) 136,370,620 9,274 (3.20) 698 21.1 62.6 2009 14,681 117,733,626 8,019 0.24 140,655,403 9,581 1.80 707 20.8 57.6 2008 14,784 118,273,887 8,000 4.43 139,134,642 9,411 4.51 734 20.1 47.9 2007 14,801 113,385,958 7,661 8.90 133,278,009 9,005 10.46 754 19.6 42.1 2006 14,786 104,010,771 7,034 2.53 120,535,161 8,152 1.32 733 20.2 41.8

90,999,369 #DIV/0! #DIV/0! 104,796,607 #DIV/0! #DIV/0!

Operating expenditures are total expenditures less debt service and capital outlay.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205OPERATING STATISTICSLAST TEN FISCAL YEARS

Percentage of

StudentsFree/Reduced

The source of this information is the District's financial records.Source:Note:

Average Daily

MembershipOperating

Expenditures

Page 145

Fiscal Year

Ended Education Number Minimum Maximum AverageJune 30 Level of Teachers Salary Salary Salary

2015 BA 140 33,982$ 50,419$ 40,241$ BA+15 50 35,206 53,635 45,697 BA+30/MA 309 36,430 66,315 50,518 MA+12 63 37,284 67,168 57,746 MA+24 52 38,138 68,022 55,628 MA+36 53 38,992 68,876 61,131 MA+48 32 39,845 69,730 57,484 MA+60 15 40,699 70,584 55,174 MA+72/Doctorate 36 41,553 71,438 62,143

2014 BA 149 33,982$ 50,419$ 40,405$ BA+15 42 35,206 53,635 46,720BA+30/MA 293 36,430 66,315 51,015MA+12 62 37,284 67,168 56,196MA+24 54 38,138 68,022 57,433MA+36 59 38,992 68,876 60,918MA+48 38 39,845 69,730 60,250MA+60 11 40,699 70,584 57,336MA+72/Doctorate 35 41,553 71,438 60,543


2012 BA 128 33,479$ 49,671$ 39,681$ BA+15 50 34,684 52,839 44,782BA+30/MA 274 35,890 65,330 50,023MA+12 76 36,731 66,172 53,931MA+24 60 37,572 67,013 56,807MA+36 58 38,413 67,854 59,767

MA+48 34 39,255 68,695 60,210MA+60 19 40,096 69,536 60,756MA+72/Doctorate 34 40,937 70,377 62,065

(Continued)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205TEACHER DEMOGRAPHIC INFORMATION

LAST EIGHT FISCAL YEARS

Page 146

Fiscal Fiscal Year

Ended Education Number Minimum Maximum AverageJune 30 Level of Teachers Salary Salary Salary



2009 BA 151 32,984$ 48,938$ 40,961$ BA+15 71 34,172 52,060 43,116 BA+30/MA 272 35,360 64,367 49,864 MA+12 83 36,189 65,196 50,693 MA+24 46 37,018 66,024 51,521 MA+36 56 37,846 66,853 52,350 MA+48 35 67,682 33,841 MA+60 17 39,504 68,511 54,008 MA+72/Doctorate 41 40,333 69,339 54,836


The source of this information is the District's records.

(Concluded)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205TEACHER DEMOGRAPHIC INFORMATION

LAST EIGHT FISCAL YEARS

Source: Note: Teachers may earn additional compensation based on the Classroom Site Fund's

Performance Compensation Plan, attendance at workshops, extra duty, and performance of other assignments.The District has only presented eight years of data as that is all that is available in this format.

Page 147

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

SchoolsHigh

Buildings 197 207 212 217 220 220 220 220 220 220 Square feet 2,439,274 2,368,694 2,294,170 2,215,014 2,252,164 2,252,164 2,252,164 2,258,687 2,258,687 2,258,687 Capacity 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 Enrollment 15,320 15,043 14,780 14,731 14,705 14,705 14,695 14,875 14,875 14,856

OtherBuildings 3 3 3 3 3 3 3 3 3 3 Square feet 15,209 15,209 15,209 15,209 15,209 15,209 15,209 15,209 15,209 15,209 Capacity 75 75 75 75 75 75 75 75 75 75

AdministrativeBuildings 3 3 3 3 3 3 3 3 3 3 Square feet 14,112 14,112 14,112 14,112 14,112 14,112 14,112 14,112 14,112 14,112

TransportationGarages 1 1 1 1 1 1 1 1 1 1 Buses 135 134 130 130 130 130 129 128 127 127

AthleticsFootball fields 9 9 9 9 9 9 9 9 9 9 Gyms 18 18 18 18 18 18 18 18 18 18 Running tracks 9 9 9 9 9 9 9 9 9 9 Baseball/softball 34 34 34 34 34 34 34 34 34 34 Swimming pools 3 3 3 3 3 3 3 3 3 3 Playgrounds 3 3 3 2 2 2 2 1 1 1

Source: The source of this information is the District's facilities records.

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205CAPITAL ASSETS INFORMATION



Page 148

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