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TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17

Comprehensive Annual Financial Report

Fiscal Year Ended June 30, 2014

9261 West Van Buren Street ▪ Tolleson, Arizona 85353


TOLLESON, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014

Issued by: Business and Finance Department


TABLE OF CONTENTS

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

(Required Supplementary Information) 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


TABLE OF CONTENTS (Cont’d)

FINANCIAL SECTION (Cont’d) Page BASIC FINANCIAL STATEMENTS (Concl’d)

Statement of Assets and Liabilities – Fiduciary Funds 29

Notes to Financial Statements 30

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL (Required Supplementary Information)

General Fund 48 Classroom Site Fund 49 Food Service Fund 50

Note to Required Supplementary Information 51

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet - All Non-Major Governmental Funds -

By Fund Type 56 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances - All Non-Major Governmental Funds - By Fund Type 57

Special Revenue Funds: Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances 66 Combining Schedule of Revenues, Expenditures and

Changes in Fund Balances - Budget and Actual 72


TABLE OF CONTENTS (Cont’d)

FINANCIAL SECTION (Concl’d) Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl’d)

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in 90 Fund Balance – Budget and Actual

Capital Projects Funds:

Combining Balance Sheet 92 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances 94 Combining Schedule of Revenues, Expenditures and Changes in

Fund Balances - Budget and Actual 96

Agency Funds: Combining Statement of Assets and Liabilities 104 Combining Statement of Changes in Assets and Liabilities 106

STATISTICAL SECTION Financial Trends:

Net Position by Component 109 Expenses, Program Revenues, and Net (Expense)/Revenue 110 General Revenues and Total Changes in Net Position 112 Fund Balances - Governmental Funds 114 Governmental Funds Revenues 116


TABLE OF CONTENTS (Concl’d)

STATISTICAL SECTION (Concl’d) Page Governmental Funds Expenditures and Debt Service Ratio 118 Other Financing Sources and Uses and Net Changes in Fund Balances - Governmental Funds 120

Revenue Capacity:

Primary Assessed Value and Estimated Actual Value of Taxable Property by Class 121 Secondary Assessed Value of Taxable Property by Class 122 Property Tax Assessment Ratios 123 Direct and Overlapping Property Tax Rates 124 Principal Property Taxpayers 125 Property Tax Levies and Collections 126

Debt Capacity:

Outstanding Debt by Type 127 Direct and Overlapping Governmental Activities Debt 128 Direct and Overlapping General Bonded Debt Ratios 128 Legal Debt Margin Information 129

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics 130 Principal Employers 131

Operating Information: Full-Time Equivalent District Employees by Type 132 Operating Statistics 134 Capital Assets Information 135

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INTRODUCTORY SECTION

i

December 19, 2014 Citizens and Governing Board Tolleson Elementary School District No. 17 9261 West Van Buren Street Tolleson, Arizona 85353 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 Tolleson Elementary School District No. 17 (District) for the fiscal year ended June 30, 2014. 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, 2014, 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, 2014, 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.

ii

The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 58 public school districts located in Maricopa County, Arizona. It provides a program of public education from kindergarten through grade 8, with a fiscal year 2013-14 average daily membership of 2,632. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities and food services.

iii

The Tolleson Elementary School District No. 17 is located 10 miles west of downtown Phoenix. The City of Tolleson, a portion of southwest Phoenix and the northeast section of the City of Avondale are included within the area served by the District. The District encompasses an area of approximately 6.25 square miles. 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 over expenditures 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 economy of the cities of Tolleson and Avondale and of Maricopa County, in general, is a mixture of farming, commercial enterprises, light manufacturing and food processing. The largest employers in the Tolleson area are Sun Land Beef, SYSCO Food Service, Frys/Kroger, Greater Auto Auction and Rousseau Farming. In recent years, the City of Tolleson has been successful in attracting businesses to locate their warehouse facilities in the City due to the freeway, railroad and airline accessibility. This has been and will continue to be a positive contributing factor to the District’s potential economic growth for many years to come. However, with the economic downturn, the District’s assessed valuation has dropped considerably. A few of the major firms represented in the Phoenix metropolitan area include Honeywell International, Inc., Banner Health Systems, Wal-Mart Stores, Inc., Wells Fargo Company, Bank of America, Raytheon Corporation and Apollo Group, Inc.. In addition, the metropolitan area provides excellent educational and training opportunities through seven community colleges, four private colleges and graduate schools, and one state university.

iv

Maricopa County is located in the south-central portion of Arizona and encompasses an area of approximately 9,226 square miles. Its boundaries encompass the cities of Phoenix, Scottsdale, Mesa, Tempe, Glendale, Chandler, and such towns as Gilbert, Paradise Valley and Fountain Hills. Maricopa County is currently the nation’s fourth largest county in terms of population size and the 14th in land area. The County’s 2013 population was estimated at 4.0 million and despite the current economic woes is still expected to reach 6 million by 2030. Maricopa County continues to have a very wide range of economic sectors supporting its potential growth and recovery. Maricopa County has, for some time, enjoyed an unemployment rate that was somewhat lower than the national average, however, the current rate of unemployment hovers around 6.2%. Service is the largest employment sector in the County, partly fueled by the tourism industry. The County has excellent accommodations, diverse cultural and recreational activities, and a favorable climate attracting millions to the area annually. Wholesale and retail trade is the second largest employment category. Long-term Financial Planning. In November 2006 the District’s voters approved $22.1 million in general obligation bonds. As of June 30, 2014, the Bond Building Fund had $436,410 in fund balance which is expected to be utilized during the next fiscal year. The average age of District school buildings is 16 years. In November of 2012, the District’s voters approved a seven year $750,000 per year capital override. The funds will be used to provide 21st Century classroom technology, paint and refurbish schools, purchase transportation equipment and to provide instructional materials. 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, 2013. This was the seventeenth consecutive year that the District has received this prestigious award. 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, 2013. 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, 2014 certificates.

v

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 business and finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted,

Dr. Lupita Hightower James S. Serbin, CPA Superintendent Executive Director of Business Services

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT Governing Board Tolleson Elementary School District No. 17 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 Tolleson Elementary School District No. 17 (District), as of and for the year ended June 30, 2014, 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 Tolleson Elementary School District No. 17, as of June 30, 2014, and the respective changes in financial position 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. 65, Items Previously Reported as Assets and Liabilities, for the year ended June 30, 2014, 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 on pages 5 through 13 and budgetary comparison information on pages 48 through 51 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 and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2014, on our consideration of Tolleson Elementary School District No. 17’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 Tolleson Elementary School District No. 17’s internal control over financial reporting and compliance. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 19, 2014

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30, 2014

Page 5

As management of the Tolleson Elementary School District No. 17 (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, 2014. 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 $246,047 which

represents a less than 1 percent increase, an insignificant change from the prior fiscal year.

General revenues accounted for $16.5 million in revenue, or 75 percent of all current

fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $5.5 million or 25 percent of total current fiscal year revenues.

The District had approximately $21.8 million in expenses related to governmental

activities, an increase of 8 percent from the prior fiscal year due to an increase in instructional expenses.

Among major funds, the General Fund had $13.8 million in current fiscal year revenues,

which primarily consisted of state aid and property taxes, and $14.3 million in expenditures. The General Fund’s fund balance increased from $2.1 million at the prior fiscal year end to $3.5 million at the end of the current fiscal year was primarily due to $1.7 million transfer in from the Unrestricted Capital Outlay Fund for the purpose of reducing property taxes in the General Fund.

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



Page 6

OVERVIEW OF FINANCIAL STATEMENTS (Cont’d) 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 two categories: governmental funds and fiduciary funds.

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

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing 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.



Page 7

OVERVIEW OF FINANCIAL STATEMENTS (Concl’d)

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Classroom Site, Food Service, and Debt Service Funds, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, fiduciary funds do not have a measurement focus.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund and major Special Revenue Funds as required supplementary information. 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 exceeded liabilities by $54.0 million at the current fiscal year end. The largest portion of the District’s net position reflects its investment in capital assets (e.g., 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 remaining balance is unrestricted and may be used to meet the District’s ongoing obligations to its citizens and creditors.



Page 8

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2014 and June 30, 2013.

As of

June 30, 2014 As of

June 30, 2013 Current and other assets $ 11,228,272 $ 14,796,562 Capital assets, net 54,653,263 52,561,904

Total assets 65,881,535 67,358,466 Current and other liabilities 1,504,185 2,116,808 Long-term liabilities 10,347,903 11,458,258

Total liabilities 11,852,088 13,575,066 Net position:

Net investment in capital assets 45,354,673 44,097,255 Restricted 4,661,075 6,932,887 Unrestricted 4,013,699 2,753,258

Total net position $ 54,029,447 $ 53,783,400 At the end of the current fiscal year the District reported positive balances in all three categories of net position. The same situation held true for the prior fiscal year.

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

The principal retirement of $945,000 of school improvement bonds.

The addition of $3.5 million in capital assets through the renovation of school buildings, land improvements and purchases of vehicles, furniture and equipment.



Page 9

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) Changes in net position. The District’s total revenues for the current fiscal year were $22.1 million. The total cost of all programs and services was $21.8 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2014 and June 30, 2013.

Fiscal Year Ended

June 30, 2014 Fiscal Year Ended

June 30, 2013 Revenues:

Program revenues: Charges for services $ 300,898 $ 332,851 Operating grants and contributions 4,368,531 3,891,507 Capital grants and contributions 855,013 861,442

General revenues: Property taxes 5,830,940 6,018,352 Investment income 34,086 37,739 Unrestricted county aid 905,894 858,246 Unrestricted state aid 9,737,432 8,944,928 Unrestricted federal aid 29,982 27,234 Total revenues 22,062,776 20,972,299

Expenses: Instruction 10,987,980 9,852,917 Support services – students and staff 3,223,435 3,185,281 Support services – administration 2,473,634 2,535,006 Operation and maintenance of plant services 2,182,106 1,934,821 Student transportation services 549,204 449,625 Operation of non-instructional services 1,988,363 1,771,719 Interest on long-term debt 412,007 449,556

Total expenses 21,816,729 20,178,925 Changes in net position 246,047 793,374

Net position, beginning 53,783,400 52,990,026 Net position, ending $ 54,029,447 $ 53,783,400



Page 10

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)

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

State aid revenues increased by $792,504 due to an increase in student membership and as a result of a change in the state funding formula.

Instruction expense increased $1.1 million due to an increase in student membership.

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.

$0

$2

$4

$6

$8

$10

$12

Mill

ions

Expenses

FY2013-14

FY2012-13



Page 11

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl’d)

Year Ended June 30, 2014 Year Ended June 30, 2013 Total

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $ 10,987,980 $ (8,745,512) $ 9,852,917 $ (7,529,059)Support services – students and staff 3,223,435 (2,446,316) 3,185,281 (2,661,845)Support services – administration 2,473,634 (2,439,095) 2,535,006 (2,507,107)Operation and maintenance of plant services 2,182,106 (2,095,759) 1,934,821 (1,849,591)Student transportation services 549,204 (531,935) 449,625 (445,433)Operation of non-instructional services 1,988,363 378,337 1,771,719 349,466 Interest on long-term debt 412,007 (412,007) 449,556 (449,556)

Total $ 21,816,729 $ (16,292,287) $ 20,178,925 $ (15,093,125)

The cost of all governmental activities this year was $21.8 million. Federal and State governments and charges for services subsidized certain programs with

grants and contributions and other local revenues of $5.5 million.

Net cost of governmental activities of $16.3 million was financed by general revenues, which are made up of primarily property taxes of $5.8 million and state aid of $9.7 million.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $8.4 million, a decrease of $2.9 million due primarily to expenditures of bond proceeds in the Bond Building Fund.



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FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS (Concl’d) The General fund comprises 42 percent of the total fund balance, of which, $3.2 million or 90 percent is unassigned. The General Fund is the principal operating fund of the District. The fund balance increased $1.4 million in the General Fund to $3.5 million as of fiscal year end was a result of a $1.7 million transfer in from the Unrestricted Capital Outlay Fund. General Fund revenues decreased $270,055. General Fund expenditures increased $553,807. The fund balance of the Classroom Site Fund increased by $650,702 due to a delay in payment of performance pay. The fund balance of the Food Service Fund decreased $93,756. The fund balance of the Debt Service Fund decreased by $689,714 due to a decline in property tax revenues over the last two fiscal years as a result of a decrease in the secondary tax rate. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for changes in student population. The difference between the original budget and the final amended budget was a $568,526 increase, or 4 percent.

Significant variances for the final amended budget and actual revenues resulted from the District not being required by the State of Arizona to prepare a revenue budget. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant expenditure variance is summarized as follows.

The favorable variance of $204,856 in support services-students and staff was a result of lower than projected salaries, stipends and benefits.

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $66.8 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 $3.3 million from last year, primarily due to land improvement projects. Total depreciation expense for the year was $1.4 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2014 and June 30, 2013.

As of June 30, 2014

As of June 30, 2013

Capital assets – non-depreciable $ 8,922,652 $ 9,010,331 Capital assets – depreciable, net 45,730,611 43,551,573

Total $ 54,653,263 $ 52,561,904



Page 13

CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl’d) The estimated cost to complete current construction projects is $162,768. Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year-end, the District had $9.7 million in long-term debt outstanding, $945,000 due within one year. This represents a net decrease of $1.1 million due to bond principal retirement. 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 $20.8 million and the Class B debt limit is $13.8 million. Additional information on the District’s long-term debt can be found in Notes 7 and 8. 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 2014-15 budget. Among them:

Fiscal year 2013-14 budget balance carry forward of $578,506. District student population (estimated 2,900).

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 1% to $14.8 million in fiscal year 2014-15. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2014-15 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 Business and Finance Department, Tolleson Elementary School District No. 17, 9261 West Van Buren Street, Tolleson, Arizona 85353.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ASSETSCurrent assets:

Cash and investmentsProperty taxes receivableDue from governmental entitiesPrepaid itemsInventory

Total current assets

Noncurrent assets:LandLand improvementsBuildings and improvementsVehicles, furniture and equipmentConstruction in progressAccumulated depreciation

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:

Accounts payableConstruction contracts payableAccrued payroll and employee benefitsCompensated absences payableAccrued interest payableUnearned revenuesBonds payable

Total current liabilities

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

Total noncurrent liabilitiesTotal liabilities

NET POSITIONNet investment in capital assetsRestricted for:

Voter approved initiativesFederal and state projectsFood serviceCivic centerCommunity schoolGifts and donationsExtracurricular activitiesOther local initiativesDebt serviceCapital outlay

UnrestrictedTotal net position

Governmental Activities

$ 6,798,385242,856

3,764,806269,399152,826

11,228,272

7,870,8174,448,122

51,028,5572,379,5661,051,835

(12,125,634)54,653,26365,881,535

586,282434,202277,19275,000

205,3791,130

945,0002,524,185

9,327,9039,327,903

11,852,088

45,354,673

2,043,778390,436513,864211,066133,71173,03250,60552,35825,451

1,166,7744,013,699

$ 54,029,447

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF NET POSITION

JUNE 30, 2014

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

$ 10,987,9803,223,4352,473,6342,182,106

549,2041,988,363

412,007$ 21,816,729

Charges for Services

$ 64,863

236,035

$ 300,898

Operating Grants and

Contributions

$ 1,322,592777,11934,53986,34717,269

2,130,665

$ 4,368,531

Capital Grants and

Contributions

$ 855,013

$ 855,013

Governmental Activities

$ (8,745,512)

(2,446,316)(2,439,095)(2,095,759)

(531,935)378,337

(412,007)(16,292,287)

General revenues:Taxes:

Property taxes, levied for general purposesProperty taxes, levied for debt serviceProperty taxes, levied for capital outlay

Investment incomeUnrestricted county aidUnrestricted state aidUnrestricted federal aid

Total general revenues

Changes in net position

Net position, beginning of year

Net position, end of year

4,029,371654,691

1,146,87834,086

905,8949,737,432

29,98216,538,334

246,047

53,783,400

$ 54,029,447

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2014

Page 19The notes to the basic financial statements are an integral part of this statement.

FUND FINANCIAL STATEMENTS

ASSETSCash and investmentsProperty taxes receivableDue from governmental entitiesDue from other fundsPrepaid itemsInventory

Total assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:

Accounts payableConstruction contracts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenuesBonds payableBond interest payable

Total liabilities

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

Total deferred inflows of resources

Fund balances (deficits):NonspendableRestrictedUnassigned

Total fund balances

Total liabilities, deferred inflows of resourcesand fund balances

General

$ 326,846193,652

2,881,745444,428269,39973,314

$ 4,189,384

$ 286,377

211,954

498,331

179,885

179,885

342,713

3,168,4553,511,168

$ 4,189,384

Classroom Site

$ 1,857,672

$ 1,857,672

$

1,857,672

1,857,672

$ 1,857,672

Food Service

$ 574,762

42,250

79,512$ 696,524

$ 182,660

182,660

79,512434,352

513,864

$ 696,524

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17 BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2014

Page 22

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

Debt Service

$ 1,165,24410,586

$ 1,175,830

$

945,000205,379

1,150,379

8,008

8,008

17,443

17,443

$ 1,175,830

Non-Major Governmental

Funds

$ 2,873,86138,618

840,811

$ 3,753,290

$ 117,245434,202444,42865,2381,130

1,062,243

34,471133,477167,948

2,590,149

(67,050)2,523,099

$ 3,753,290

Total Governmental

Funds

$ 6,798,385242,856

3,764,806444,428269,399152,826

$ 11,672,700

$ 586,282434,202444,428277,192

1,130945,000205,379

2,893,613

222,364133,477355,841

422,2254,899,6163,101,4058,423,246

$ 11,672,700

Page 23

Total governmental fund balances $ 8,423,246

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

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

Governmental capital assets $ 66,778,897Less accumulated depreciation (12,125,634) 54,653,263

Some revenues will not be available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds.

Property taxes 222,364 Intergovernmental 133,477 355,841

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

Compensated absences payable (612,903)Bonds payable (8,790,000) (9,402,903)

Net position of governmental activities $ 54,029,447


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITIONJUNE 30, 2014

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):Transfers inTransfers out

Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

Increase (decrease) in reserve for prepaid itemsIncrease (decrease) in reserve for inventory

Fund balances, end of year

General

$ 961,9354,051,5878,711,601

29,98213,755,105

7,830,0742,093,7712,218,1141,693,939

417,50650,10524,867

14,328,376

(573,271)

2,227,809

2,227,809

1,654,538

2,084,415

(170,711)(57,074)

$ 3,511,168

Classroom Site

$ 6,196

911,107

917,303

240,40626,195

266,601

650,702

650,702

1,206,970

$ 1,857,672

Food Service

$ 181,290

1,957,9672,139,257

493,898

1,712,140

121,883

1,837,970

301,287

(427,430)(427,430)

(126,143)

607,620

32,387

$ 513,864

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2014


Debt Service

$ 2,958659,876

662,834

945,000412,007

1,357,007

(694,173)

4,459

4,459

(689,714)

707,157

$ 17,443


Funds

$ 129,0941,119,0511,134,0482,144,9204,527,113

1,737,289859,54541,421

101,37411,511

214,1123,917,839

6,883,091

(2,355,978)

(1,804,838)(1,804,838)

(4,160,816)

6,683,915

$ 2,523,099

Total Governmental

Funds

$ 1,281,4735,830,514

10,756,7564,132,869

22,001,612

9,807,7692,979,5112,259,5841,799,211

429,0171,976,3574,064,589

945,000412,007

24,673,045

(2,671,433)

2,232,268

(2,232,268)

(2,671,433)

11,290,077

(170,711)(24,687)

$ 8,423,246

Page 27

Net changes in fund balances - total governmental funds $ (2,866,831)

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

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

Expenditures for capitalized assets $ 3,517,739Less current year depreciation (1,364,998) 2,152,741

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

Property taxes 426Intergovernmental 60,738 61,164

Repayment of bond principal are expenditures in the governmental funds,but the repayment reduces long-term liabilities in the Statement ofNet Position. 945,000

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 capital assets (61,382)Compensated absences 15,355 (46,027)

Change in net position in governmental activities $ 246,047


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

YEAR ENDED JUNE 30, 2014TO THE STATEMENT OF ACTIVITIES

Page 28

ASSETSCash and investments

Total assets

LIABILITIESDeposits held for othersDue to governmental entitiesDue to student groups

Total liabilities

Agency

$ 1,822,506$ 1,822,506

$ 1,728,61185,6318,264

$ 1,822,506

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF ASSETS AND LIABILITIES

FIDUCIARY FUNDSJUNE 30, 2014


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2014

Page 30

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Tolleson Elementary School District No. 17 (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, 2014, the District implemented the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. GASB Statement No. 65 establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. 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, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.


JUNE 30, 2014

Page 31

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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. 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 are 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 State, County 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 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. 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.


JUNE 30, 2014

Page 32

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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, Federal, 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. 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. 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 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.


JUNE 30, 2014

Page 33

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Classroom Site Fund – The Classroom Site Fund accounts 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. Food Service Fund – The Food Service Fund accounts 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. 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.

Additionally, the District reports the following fund type: Fiduciary Funds – The Fiduciary Funds are Agency Funds which account for resources held by the District on behalf of others. This fund type includes 1) the Student Activities Fund which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent, 2) funds that account for employee withholdings before the monies are remitted to the appropriate entities, and 3) activities related to agreements with other governments where the District is the fiscal agent.

The Agency Funds are custodial in nature and do not have a measurement focus and are reported using the accrual basis of accounting. The Agency Funds are reported by fund type. D. Cash and Investments 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 or instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit.


JUNE 30, 2014

Page 34

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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.

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 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 Property tax levies are calculated by applying tax rates against both the primary assessed valuation and the secondary assessed valuation. Primary and secondary valuation categories are composed of the exact same properties. However, the primary category limits the increase in property values to 10% from the previous year, while there is no limit to the increase in property values for secondary valuation. Override and debt service tax rates are applied to the secondary assessed valuation and all other tax rates are applied to the primary assessed valuation.


JUNE 30, 2014

Page 35

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) The County levies real property taxes on or before the third Monday in August, which 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. The billings are considered past due after these dates, at which time the applicable property is subject to penalties and interest. The County also levies various personal property taxes during the year, which are due the second Monday of the month following receipt of the tax notice, and become delinquent 30 days thereafter. 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. Inventory All inventories are valued at cost using the average cost method. Inventories consist of expendable supplies held for consumption. Inventories are recorded as expenses when consumed on the government-wide financial statements and as expenditures when purchased on the fund financial statements. The United States Department of Agriculture (USDA) commodity portion of the food services inventory consists of food donated by the USDA. It is valued at estimated market prices paid by the USDA. I. 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. J. 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.


JUNE 30, 2014

Page 36

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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 – 60 years Buildings and improvements 5 – 100 years Vehicles, furniture and equipment 5 – 25 years

K. 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. The District did not have any items that qualified for reporting in this category. 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. L. 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.


JUNE 30, 2014

Page 37

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d) M. Long-term Obligations In the government-wide 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. O. Net Position Flow Assumption In the government-wide financial statements the District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available. 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.


JUNE 30, 2014

Page 38

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 the Executive Director of Business Services, who has been delegated that authority by formal Governing Board action. No assigned fund balance amounts are reported. 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.


JUNE 30, 2014

Page 39

NOTE 2 – FUND BALANCE CLASSIFICATIONS (Concl’d) The table below provides detail of the major components of the District’s fund balance classifications at year end.

General

FundClassroom Site Fund

Food Service Fund

Debt Service Fund


FundsFund Balances:

Nonspendable: Inventory $ 73,314 $ $ 79,512 $ $ Prepaid items 269,399

Restricted: Debt service 17,443 Capital projects 1,132,303 Bond building projects 436,410 Voter approved initiatives 1,857,672 186,106 Federal and State projects 314,558 Extracurricular activities 50,605 Community school projects 133,711 Civic center projects 211,066 Food service 434,352 Other purposes 125,390

Unassigned 3,168,455 (67,050)Total fund balances $ 3,511,168 $ 1,857,672 $ 513,864 $ 17,443 $ 2,523,099

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

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

Deficit Non-Major Governmental Funds:

Other Federal Projects $ 57,599Building Renewal Grant 9,451

The deficits arose because of operations during the year. Additional revenues received in fiscal year 2014-15 are expected to eliminate the deficits. Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budget, however this does not constitute a violation of any legal provisions.


JUNE 30, 2014

Page 40

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 $1,736,875 and the bank balance was $1,739,869. At year end, $1,548,355 of the District’s deposits were covered by collateral held by the pledging financial institution 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 374 days $ 6,884,016Total $ 6,884,016

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.


JUNE 30, 2014

Page 41

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

Food Service Fund

Non-MajorGovernmental

FundsDue from other governmental entities:

Due from Federal government $ $ 42,250 $ 613,655 Due from State government 2,881,745 197,135 Due from City government 30,021

Net due from governmental entities $ 2,881,745 $ 42,250 $ 840,811 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 $ 7,870,817 $ $ $ 7,870,817 Construction in progress 1,139,514 3,098,195 3,185,874 1,051,835

Total capital assets, not being depreciated 9,010,331 3,098,195 3,185,874 8,922,652

Capital assets, being depreciated: Land improvements 2,122,866 2,325,256 4,448,122 Buildings and improvements 50,114,292 914,265 51,028,557 Vehicles, furniture and equipment 2,207,791 365,897 194,122 2,379,566

Total capital assets being depreciated 54,444,949 3,605,418 194,122 57,856,245 Less accumulated depreciation for:

Land improvements (760,340) (192,395) (952,735)Buildings and improvements (8,906,241) (972,644) (9,878,885)Vehicles, furniture and equipment (1,226,795) (199,959) (132,740) (1,294,014)

Total accumulated depreciation (10,893,376) (1,364,998) (132,740) (12,125,634)

Total capital assets, being depreciated, net 43,551,573 2,240,420 61,382 45,730,611 Governmental activities capital assets, net $ 52,561,904 $ 5,338,615 $3,247,256 $ 54,653,263


JUNE 30, 2014

Page 42

NOTE 6 – CAPITAL ASSETS (Concl’d) Depreciation expense was charged to governmental functions as follows.

Instruction $ 825,597Support services – students and staff 50,168 Support services – administration 190,234 Operation and maintenance of plant services 172,581 Student transportation services 85,959 Operation of non-instructional services 40,459 Total depreciation expense – governmental activities $ 1,364,998

Construction Commitments – At year end, the District had contractual commitments related to various capital projects. At year end, the District had spent $1.1 million on the projects and had estimated remaining contractual commitments of $162,768. These projects are being funded with E-Rate funds received from the School and Libraries Division.

NOTE 7 – GENERAL OBLIGATION BONDS PAYABLE Bonds payable at year end, consisted of the following outstanding general obligation bonds. 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, 2014Due WithinOne Year

Governmental activities: School Improvement Bonds Project of 2006, Series A (2007) $ 4,545,000

4.00-4.50% 7/1/14-22 $ 3,665,000 $ 345,000

School Improvement Bonds Project of 2006, Series B (2008) 5,045,000

4.00-5.00% 7/1/14-28 3,410,000 600,000

School Improvement Bonds, Project of 2006, Series E (2011) 2,960,000

3.50-4.25% 7/1/16-21 2,660,000

Total $ 9,735,000 $ 945,000


JUNE 30, 2014

Page 43

NOTE 7 – GENERAL OBLIGATION BONDS PAYABLE (Concl’d) 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

2015 $ 945,000 $ 390,9952016 960,000 351,132 2017 945,000 312,332 2018 930,000 274,382 2019 970,000 235,032 2020-24 3,970,000 573,290 2025-29 1,015,000 121,292

Total $ 9,735,000 $ 2,258,455 NOTE 8 – 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 $ 10,830,000 $ $ 1,095,000 $ 9,735,000 $ 945,000 Compensated absences payable 628,258 463,391 478,746 612,903 75,000 Governmental activity long-term

liabilities $ 11,458,258 $ 463,391 $ 1,573,746 $ 10,347,903 $ 1,020,000 NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

At year end, interfund balances were as follows. Due to/from other funds: At year end, several funds had negative cash balances in the Treasurer’s pooled cash accounts of $444,428. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with other funds. All interfund balances are expected to be paid within one year.


JUNE 30, 2014

Page 44

NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Concl’d) Interfund transfers:

Transfers in

Transfers out General

FundDebt

Service Fund Total Food Service Fund $ 427,430 $ $ 427,430 Non-Major Governmental Funds 1,800,379 4,459 1,804,838 Total $ 2,227,809 $ 4,459 $ 2,232,268

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) to close out an inactive fund, and (4) to reduce property taxes.

NOTE 10 – 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.

Performance Audit – The District was selected by the State Office of the Auditor General to have a performance audit pursuant to A.R.S. section 41-1279.03.A. for the fiscal year ended June 30, 2012. This performance audit has not been completed, and although the results are unknown at this time, the District expects the results to be immaterial to the financial statements.

NOTE 11 – RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. 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, 2014

Page 45

NOTE 11 – RISK MANAGEMENT (Concl’d) The District’s employees have health and accident insurance coverage with the Valley Schools Employee Benefit Trust (VSEBT). VSEBT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to VSEBT for employees’ health and accident 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. The District continues to carry commercial insurance for all other risks of loss, including workers’ compensation, employee vision and life insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 12 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The District contributes to the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing, multiple-employer defined benefit pension plan; a cost-sharing, multiple-employer defined health insurance premium plan; and a cost-sharing, multiple-employer defined benefit long-term disability plan that covers employees of the State of Arizona and employees of participating political subdivisions and school districts. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. Plan Description – Benefits are established by state statute and the plan generally provides retirement, long-term disability, and health insurance premium benefits, including death and survivor benefits. The retirement benefits are generally paid at a percentage, based on years of service, of the retirees’ average compensation. Long-term disability benefits vary by circumstance, but generally pay a percentage of the employee’s monthly compensation. Health insurance premium benefits are paid as a fixed dollar amount per month towards the retiree’s healthcare insurance premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or her dependents. The ASRS issues a comprehensive annual financial report that includes financial statements and required supplementary information. The most recent report may be obtained by writing the ASRS, 3300 North Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling (602) 240-2000 or (800) 621-3778. The report is also available on the ASRS’ website at www.azasrs.gov.


JUNE 30, 2014

Page 46

NOTE 12 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl’d)

Funding Policy – The Arizona State Legislature establishes and may amend active plan members’ and the District’s contribution rates. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.54 percent (11.30 percent for retirement and 0.24 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 11.54 percent (10.70 percent for retirement, 0.60 percent for health insurance premium, and 0.24 percent for long-term disability) of the members’ annual covered payroll.

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

Retirement Fund

Health Benefit

Supplement Fund

Long-Term Disability Fund

Years ended June 30, 2014 $ 1,172,000 $ 65,720 $ 26,288 2013 1,127,443 71,496 26,399 2012 955,201 60,970 23,227

NOTE 13 – NEW ACCOUNTING PRONOUNCEMENT

GASB Statement No. 68, Accounting and Financial Reporting for Pensions will be effective for the District’s June 30, 2015 fiscal year end. This Statement replaces the requirements of prior GASB standards for pensions accounting and reporting. 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. Each employer participating in a multiple-employer defined benefit pension plan will be required to record a liability representing their “proportionate share” of the plan’s total net pension liability. This Statement also enhances accountability and transparency through revised note disclosures and new required supplementary information.

SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

(Required Supplementary Information)

Revenues:Other localProperty taxesState aid and grants

Total revenues



Total expenditures


Other financing sources (uses):Transfers in




Increase (decrease) in reserve for prepaid itemsIncrease (decrease) in reserve for inventory

Fund balances (deficits), end of year

Budgeted Amounts

Original

$

7,605,3962,254,4822,168,3501,549,107

453,12540,000

14,070,460

(14,070,460)

(14,070,460)

$ (14,070,460)

Final

$

7,776,3302,174,3052,194,8492,002,480

451,02240,000

14,638,986

(14,638,986)

(14,638,986)

$ (14,638,986)

Non-GAAP Actual

$ 917,7034,051,5878,711,601

13,680,891

7,696,6821,969,4492,089,7191,867,220

417,50640,000

14,080,576

(399,685)

1,709,2301,709,230

1,309,545

990,625

2,570(57,074)

$ 2,245,666

Variance with Final Budget

Positive (Negative)

$ 917,7034,051,5878,711,601

13,680,891

79,648204,856105,130135,26033,516

558,410

14,239,301

1,709,2301,709,230

15,948,531

990,625

2,570(57,074)

$ 16,884,652

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


Page 48See accompanying notes to this schedule.

Revenues:Other localState aid and grants

Total revenues


InstructionSupport services - students and staff

Total expenditures




Budgeted Amounts

Original

$

2,786,42899,558

2,885,986

(2,885,986)

$ (2,885,986)

Final

$

2,512,52899,558

2,612,086

(2,612,086)

$ (2,612,086)

Actual

$ 6,196911,107917,303

240,40626,195

266,601

650,702

1,206,970

$ 1,857,672


Positive (Negative)

$ 6,196911,107917,303

2,272,12273,363

2,345,485

3,262,788

1,206,970

$ 4,469,758


CHANGES IN FUND BALANCES - BUDGET AND ACTUALCLASSROOM SITE



Revenues:Other localFederal aid, grants and reimbursements

Total revenues


Support services - administrationOperation and maintenance of plant servicesOperation of non-instructional services

Capital outlayTotal expenditures


Other financing sources (uses):Transfers out




Increase (decrease) in reserve for inventory


Budgeted Amounts

Original

$

2,144,559120,000

2,264,559

(2,264,559)

(2,264,559)

$ (2,264,559)

Final

$

2,401,450120,000

2,521,450

(2,521,450)

(2,521,450)

$ (2,521,450)

Actual

$ 181,2901,957,9672,139,257

493,898

1,712,140121,883

1,837,970

301,287

(427,430)(427,430)

(126,143)

607,620

32,387

$ 513,864


Positive (Negative)

$ 181,2901,957,9672,139,257

(49)(3,898)

689,310(1,883)

683,480

2,822,737

(427,430)(427,430)

2,395,307

607,620

32,387

$ 3,035,314


CHANGES IN FUND BALANCES - BUDGET AND ACTUALFOOD SERVICE



TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2014

Page 51

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.

Prepaid items are budgeted in the year prepaid. 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 $ 14,328,376 $ 3,511,168 Activity budgeted as special revenue funds (421,081) (1,265,502)Current-year prepaid items 173,281 Schedule of Revenues, Expenditures and Changes in

Fund Balances – Budget and Actual – General Fund $ 14,080,576 $ 2,245,666

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

GOVERNMENTAL FUNDS

ASSETSCash and investmentsProperty taxes receivableDue from governmental entities

Total assets


Accounts payableConstruction contracts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues

Total liabilities

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

Total deferred inflows of resources

Fund balances (deficits):RestrictedUnassigned

Total fund balances


Special Revenue

$ 1,110,570

737,693$ 1,848,263

$ 79,043161,110444,42865,2381,130

750,949

133,477133,477

1,021,436(57,599)963,837

$ 1,848,263

Capital Projects

$ 1,763,29138,618

103,118$ 1,905,027

$ 38,202273,092

311,294

34,471

34,471

1,568,713(9,451)

1,559,262

$ 1,905,027

Total Non-Major

Governmental Fund

$ 2,873,86138,618

840,811$ 3,753,290

$ 117,245434,202444,42865,2381,130

1,062,243

34,471133,477167,948

2,590,149(67,050)

2,523,099

$ 3,753,290

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE

JUNE 30, 2014

Page 56

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

Total revenues










Special Revenue

$ 111,307

885,9632,144,9203,142,190

1,699,343831,70941,42198,55111,511

214,112498,640

3,395,287

(253,097)

(91,149)(91,149)

(344,246)

1,308,083

$ 963,837

Capital Projects

$ 17,7871,119,051

248,085

1,384,923

37,94627,836

2,823

3,419,1993,487,804

(2,102,881)

(1,713,689)(1,713,689)

(3,816,570)

5,375,832

$ 1,559,262

Total Non-Major

Governmental Funds

$ 129,0941,119,0511,134,0482,144,9204,527,113

1,737,289859,54541,421

101,37411,511

214,1123,917,8396,883,091

(2,355,978)

(1,804,838)(1,804,838)

(4,160,816)

6,683,915

$ 2,523,099

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2014

Page 57

SPECIAL REVENUE FUNDS Instructional Improvement - to account for the activity of monies received from gaming revenue. County, City and Town Grants - to account for monies received from county, city and town grants. 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 and 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. 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 supplemental federal projects. 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. 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. Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01.

Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. 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. 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 restricted for use by a teacher for instructional purposes.

ASSETSCash and investmentsDue from governmental entities

Total assets



Total liabilities

Deferred inflows of resources:Unavailable revenues - intergovernmental


Total fund balances


Instructional Improvement

$ 150,79544,017

$ 194,812

$

8,706

8,706

186,106

186,106

$ 194,812

County, City, and Town

Grants

$ 95

$ 95

$

95

95

$ 95

Title I Grants

$ 200,056

$ 200,056

$ 9,532

190,524

200,056

$ 200,056

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS

JUNE 30, 2014

Page 60

Professional Development

and Technology Grants

$ 20,098

$ 20,098

$ 4,259

15,839

20,098

$ 20,098

Title IV Grants

$ 133,093

$ 133,093

$ 27,639

70,12535,329

133,093

$ 133,093

Limited English and Immigrant

Students

$ 39,489

$ 39,489

$

30,9418,548

39,489

$ 39,489

Special Education

Grants

$ 56,639

$ 56,639

$

56,639

56,639

$ 56,639

E-Rate

$ 464,36487,182

$ 551,546

$ 161,110

161,110

75,878

314,558

314,558

$ 551,546

Other Federal Projects

$ 77,098

$ 77,098

$

64,44312,655

77,098

57,599

(57,599)(57,599)

$ 77,098

Page 61(Continued)


Total assets



Total liabilities



Total fund balances


Other State Projects

$ 50,000

$ 50,000

$ 32,953

15,917

1,13050,000

$ 50,000

Civic Center

$ 211,066

$ 211,066

$

211,066

211,066

$ 211,066

Community School

$ 103,69030,021

$ 133,711

$

133,711

133,711

$ 133,711


JUNE 30, 2014

Page 62

Extracurricular Activities Fees

Tax Credit

$ 50,605

$ 50,605

$

50,605

50,605

$ 50,605

Gifts and Donations

$ 77,692

$ 77,692

$ 4,660

4,660

73,032

73,032

$ 77,692

Fingerprint

$ 1,023

$ 1,023

$

1,023

1,023

$ 1,023

Textbooks

$ 12,467

$ 12,467

$

12,467

12,467

$ 12,467

Insurance Refund

$ 34,133

$ 34,133

$

34,133

34,133

$ 34,133

Grants and Gifts to Teachers

$ 4,640

$ 4,640

$

4,640

4,640

$ 4,640

Page 63(Continued)


Total assets



Total liabilities



Total fund balances


Totals

$ 1,110,570737,693

$ 1,848,263

$ 79,043161,110444,42865,2381,130

750,949

133,477

1,021,436(57,599)963,837

$ 1,848,263


JUNE 30, 2014

Page 64

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

Total revenues











$ 1,229102,134

103,363

212,16013,362

1,005226,527

(123,164)

(123,164)

309,270

$ 186,106

County, City, and Town

Grants

$

10

10

(10)

(10)

105

$ 95

Title I Grants

$

648,219648,219

181,013417,173

2,367

600,553

47,666

(47,666)(47,666)

$


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2014

Page 66

Professional Development

and Technology Grants

$

68,95868,958

52,77813,412

66,190

2,768

(2,768)(2,768)

$

Title IV Grants

$

314,092314,092

210,74769,648

587

9,850

290,832

23,260

(23,260)(23,260)

$

Limited English and Immigrant

Students

$

79,03179,031

51,39911,904

715

14,39078,408

623

(623)(623)

$

Special Education

Grants

$

387,384387,384

353,7147,3912,651

7,287371,043

16,341

(16,341)(16,341)

$

E-Rate

$ 512

466,888467,400

270,135

5,23516,607

437,382729,359

(261,959)

(261,959)

576,517

$ 314,558


$

180,348180,348

139,78192,0675,608

237,456

(57,108)

(491)(491)

(57,599)

$ (57,599)

Page 67(Continued)


Total revenues











$ 487,350

487,350

235,517129,288

3,23781,944

686

36,678487,350

$

Civic Center

$ 9,208

9,208

694

137

831

8,377

8,377

202,689

$ 211,066

Community School

$ 57,141296,479

353,620

31,12729,104

975207,215

1,898270,319

83,301

83,301

50,410

$ 133,711



Page 68

Extracurricular Activities Fees

Tax Credit

$ 8,426

8,426

718

718

7,708

7,708

42,897

$ 50,605

Gifts and Donations

$ 31,051

31,051

10,7578,9017,186

6,897

33,741

(2,690)

(2,690)

75,722

$ 73,032

Fingerprint

$ 312

312

286

286

26

26

997

$ 1,023

Textbooks

$ 1,672

1,672

93

93

1,579

1,579

10,888

$ 12,467

Insurance Refund

$ 139

139

139

139

33,994

$ 34,133


$ 1,617

1,617

1,571

1,571

46

46

4,594

$ 4,640

Page 69(Continued)


Total revenues










Totals

$ 111,307885,963

2,144,9203,142,190

1,699,343831,70941,42198,55111,511

214,112498,640

3,395,287

(253,097)

(91,149)(91,149)

(344,246)

1,308,083

$ 963,837



Page 70

Total revenues












Budget

$

390,973

390,973

(390,973)

(390,973)

$ (390,973)

Actual

$ 1,229102,134

103,363

212,16013,362

1,005226,527

(123,164)

(123,164)

309,270

$ 186,106

Variance - Positive

(Negative)

$ 1,229102,134

103,363

178,813(13,362)

(1,005)164,446

267,809

267,809

309,270

$ 577,079

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS


Page 72

County, City, and Town Grants

Budget

$

4,540

4,540

(4,540)

(4,540)

$ (4,540)

Actual

$

10

10

(10)

(10)

105

$ 95

Variance - Positive

(Negative)

$

4,530

4,530

4,530

4,530

105

$ 4,635

Title I Grants

Budget

$

384,327500,000

884,327

(884,327)

(884,327)

$ (884,327)

Actual

$

648,219648,219

181,013417,173

2,367

600,553

47,666

(47,666)(47,666)

$

Variance - Positive

(Negative)

$

648,219648,219

203,31482,827(2,367)

283,774

931,993

(47,666)(47,666)

884,327

$ 884,327

Page 73(Continued)

Total revenues











Professional Development and Technology Grants

Budget

$

92,252

92,252

(92,252)

(92,252)

$ (92,252)

Actual

$

68,95868,958

52,77813,412

66,190

2,768

(2,768)(2,768)

$

Variance - Positive

(Negative)

$

68,95868,958

39,474(13,412)

26,062

95,020

(2,768)(2,768)

92,252

$ 92,252




Page 74

Title IV Grants

Budget

$

318,26670,000

388,266

(388,266)

(388,266)

$ (388,266)

Actual

$

314,092314,092

210,74769,648

587

9,850

290,832

23,260

(23,260)(23,260)

$

Variance - Positive

(Negative)

$

314,092314,092

107,519352

(587)

(9,850)

97,434

411,526

(23,260)(23,260)

388,266

$ 388,266

Limited English and Immigrant Students

Budget

$

86,928

86,928

(86,928)

(86,928)

$ (86,928)

Actual

$

79,03179,031

51,39911,904

715

14,39078,408

623

(623)(623)

$

Variance - Positive

(Negative)

$

79,03179,031

35,529(11,904)

(715)

(14,390)8,520

87,551

(623)(623)

86,928

$ 86,928

Page 75(Continued)

Total revenues











Special Education Grants

Budget

$

404,427

404,427

(404,427)

(404,427)

$ (404,427)

Actual

$

387,384387,384

353,7147,3912,651

7,287371,043

16,341

(16,341)(16,341)

$

Variance - Positive

(Negative)

$

387,384387,384

50,713(7,391)(2,651)

(7,287)33,384

420,768

(16,341)(16,341)

404,427

$ 404,427




Page 76

Medicaid Reimbursement

Budget

$

86,928

86,928

(86,928)

(86,928)

$ (86,928)

Non-GAAP Actual

$ 50

29,98230,032

49,2063,942

1,844

54,992

(24,960)

(24,960)

58,802

$ 33,842

Variance - Positive

(Negative)

$ 50

29,98230,032

37,722(3,942)

(1,844)

31,936

61,968

61,968

58,802

$ 120,770

E-Rate

Budget

$

249,738

400,000649,738

(649,738)

(649,738)

$ (649,738)

Actual

$ 512

466,888467,400

270,135

5,23516,607

437,382729,359

(261,959)

(261,959)

576,517

$ 314,558

Variance - Positive

(Negative)

$ 512

466,888467,400

(20,397)

(5,235)(16,607)

(37,382)(79,621)

387,779

387,779

576,517

$ 964,296

Page 77(Continued)

Total revenues












Budget

$

19,846

19,846

(19,846)

(19,846)

$ (19,846)

Actual

$

180,348180,348

139,78192,0675,608

237,456

(57,108)

(491)(491)

(57,599)

$ (57,599)

Variance - Positive

(Negative)

$

180,348180,348

(119,935)(92,067)(5,608)

(217,610)

(37,262)

(491)(491)

(37,753)

$ (37,753)




Page 78


Budget

$

288,093130,000

70,000

488,093

(488,093)

(488,093)

$ (488,093)

Actual

$ 487,350

487,350

235,517129,288

3,23781,944

686

36,678487,350

$

Variance - Positive

(Negative)

$ 487,350

487,350

52,576712

(3,237)(11,944)

(686)

(36,678)743

488,093

488,093

$ 488,093

School Plant

Budget

$

210,168

210,168

(210,168)

(210,168)

$ (210,168)

Non-GAAP Actual

$ 29,889

29,889

2,744747

26,811

14,04844,350

(14,461)

(14,461)

186,649

$ 172,188

Variance - Positive

(Negative)

$ 29,889

29,889

(2,744)(747)

183,357

(14,048)165,818

195,707

195,707

186,649

$ 382,356

Page 79(Continued)

Total revenues











Civic Center

Budget

$

209,473

209,473

(209,473)

(209,473)

$ (209,473)

Actual

$ 9,208

9,208

694

137

831

8,377

8,377

202,689

$ 211,066

Variance - Positive

(Negative)

$ 9,208

9,208

208,779

(137)

208,642

217,850

217,850

202,689

$ 420,539




Page 80

Community School

Budget

$

278,725

278,725

(278,725)

(278,725)

$ (278,725)

Actual

$ 57,141296,479

353,620

31,12729,104

975207,215

1,898270,319

83,301

83,301

50,410

$ 133,711

Variance - Positive

(Negative)

$ 57,141296,479

353,620

(31,127)(29,104)

(975)71,510(1,898)

8,406

362,026

362,026

50,410

$ 412,436

Auxiliary Operations

Budget

$

16,902

16,902

(16,902)

(16,902)

$ (16,902)

Non-GAAP Actual

$ 11,163

11,163

4,477446

7,761879

13,563

(2,400)

(2,400)

6,427

$ 4,027

Variance - Positive

(Negative)

$ 11,163

11,163

(4,477)(446)

9,141(879)3,339

14,502

14,502

6,427

$ 20,929

Page 81(Continued)

Total revenues











Extracurricular Activities Fees Tax Credit

Budget

$

51,296

51,296

(51,296)

(51,296)

$ (51,296)

Actual

$ 8,426

8,426

718

718

7,708

7,708

42,897

$ 50,605

Variance - Positive

(Negative)

$ 8,426

8,426

50,578

50,578

59,004

59,004

42,897

$ 101,901




Page 82

Gifts and Donations

Budget

$

91,581

91,581

(91,581)

(91,581)

$ (91,581)

Actual

$ 31,051

31,051

10,7578,9017,186

6,897

33,741

(2,690)

(2,690)

75,722

$ 73,032

Variance - Positive

(Negative)

$ 31,051

31,051

80,824(8,901)(7,186)

(6,897)

57,840

88,891

88,891

75,722

$ 164,613

Fingerprint

Budget

$

1,297

1,297

(1,297)

(1,297)

$ (1,297)

Actual

$ 312

312

286

286

26

26

997

$ 1,023

Variance - Positive

(Negative)

$ 312

312

1,011

1,011

1,323

1,323

997

$ 2,320

Page 83(Continued)

Total revenues











Textbooks

Budget

$

11,508

11,508

(11,508)

(11,508)

$ (11,508)

Actual

$ 1,672

1,672

93

93

1,579

1,579

10,888

$ 12,467

Variance - Positive

(Negative)

$ 1,672

1,672

11,415

11,415

13,087

13,087

10,888

$ 23,975




Page 84

Indirect Costs

Budget

$

884,23375,000

100,000

1,059,233

(1,059,233)

(1,059,233)

$ (1,059,233)

Non-GAAP Actual

$ 3,130

3,130

126,17173,92397,642

5009,940

308,176

(305,046)

518,579

518,579

213,533

841,912

$ 1,055,445

Variance - Positive

(Negative)

$ 3,130

3,130

758,0621,0772,358

(500)(9,940)

751,057

754,187

518,579

518,579

1,272,766

841,912

$ 2,114,678

Insurance Refund

Budget

$

34,112

34,112

(34,112)

(34,112)

$ (34,112)

Actual

$ 139

139

139

139

33,994

$ 34,133

Variance - Positive

(Negative)

$ 139

139

34,112

34,112

34,251

34,251

33,994

$ 68,245

Page 85(Continued)

Total revenues












Budget

$

6,208

6,208

(6,208)

(6,208)

$ (6,208)

Actual

$ 1,617

1,617

1,571

1,571

46

46

4,594

$ 4,640

Variance - Positive

(Negative)

$ 1,617

1,617

4,637

4,637

6,254

6,254

4,594

$ 10,848




Page 86

Totals

Budget

$

3,424,041965,688311,46570,000

295,627400,000

5,466,821

(5,466,821)

(5,466,821)

$ (5,466,821)

Non-GAAP Actual

$ 155,539885,963

2,174,9023,216,404

1,832,735956,031169,81698,55111,511

224,217523,507

3,816,368

(599,964)

518,579(91,149)427,430

(172,534)

2,401,873

$ 2,229,339

Variance - Positive

(Negative)

$ 155,539885,963

2,174,9023,216,404

1,591,3069,657

141,649(28,551)(11,511)

71,410(123,507)1,650,453

4,866,857

518,579(91,149)427,430

5,294,287

2,401,873

$ 7,696,160

Page 87

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.

Revenues:Other localProperty taxes

Total revenues

Expenditures:Debt service -

Principal retirementInterest and fiscal charges

Total expenditures


Other financing sources (uses):Transfers in





Budgeted Amounts

Original & Final

$

945,000425,756

1,370,756

(1,370,756)

(1,370,756)

$ (1,370,756)

Actual

$ 2,958659,876662,834

945,000412,007

1,357,007

(694,173)

4,4594,459

(689,714)

707,157

$ 17,443


Positive (Negative)

$ 2,958659,876662,834

13,74913,749

676,583

4,4594,459

681,042

707,157

$ 1,388,199


CHANGES IN FUND BALANCES - BUDGET AND ACTUALDEBT SERVICE


Page 90

CAPITAL PROJECTS FUNDS Insurance Proceeds - to account for the monies received from insurance claims. Litigation Recovery - to account for monies received for and derived from litigation. Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items. Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property. 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. Emergency Deficiencies Correction - to account for monies received from the School Facilities Board to correct emergency deficiencies. 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 investmentsProperty taxes receivableDue from governmental entities

Total assets


Accounts payableConstruction contracts payable

Total liabilities

Deferred inflows of resources:Unavailable revenues - property taxes


Total fund balances


Insurance Proceeds

$ 44,969

$ 44,969

$

44,969

44,969

$ 44,969

Litigation Recovery

$ 42,184

$ 42,184

$

42,184

42,184

$ 42,184

Unrestricted Capital Outlay

$ 891,32638,6184,378

$ 934,322

$ 38,202

38,202

34,471

861,649

861,649

$ 934,322

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING BALANCE SHEET - ALL CAPITAL PROJECTS FUNDS

JUNE 30, 2014

Page 92

Adjacent Ways

$ 183,415

$ 183,415

$

183,415

183,415

$ 183,415

Bond Building

$ 529,391

$ 529,391

$ 92,98192,981

436,410

436,410

$ 529,391

Gifts and Donations -

Capital

$ 86

$ 86

$

86

86

$ 86

Building Renewal Grant

$ 71,920

98,740$ 170,660

$ 180,111180,111

(9,451)(9,451)

$ 170,660

Totals

$ 1,763,29138,618

103,118$ 1,905,027

$ 38,202273,092311,294

34,471

1,568,713(9,451)

1,559,262

$ 1,905,027

Page 93


Total revenues


InstructionSupport services - students and staffOperation and maintenance of plant services








Insurance Proceeds

$ 2,233

2,233

771,8551,932

301

301

44,668

$ 44,969

Litigation Recovery

$ 499

499

11,52211,522

(11,023)

(11,023)

53,207

$ 42,184


$ 9,1371,118,879

12,5901,140,606

37,94627,8362,746

1,031,4491,099,977

40,629

(1,709,201)(1,709,201)

(1,668,572)

2,530,221

$ 861,649


ALL CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2014

Page 94

Adjacent Ways

$ 1,459172

1,631

200,486200,486

(198,855)

(198,855)

382,270

$ 183,415

Bond Building

$ 4,459

4,459

1,928,9411,928,941

(1,924,482)

(4,459)(4,459)

(1,928,941)

2,365,351

$ 436,410

Gifts and Donations -

Capital

$

86

$ 86

Emergency Deficiencies Correction

$

(29)(29)

(29)

29

$


$

235,495235,495

244,946244,946

(9,451)

(9,451)

$ (9,451)

Totals

$ 17,7871,119,051

248,0851,384,923

37,94627,8362,823

3,419,1993,487,804

(2,102,881)

(1,713,689)(1,713,689)

(3,816,570)

5,375,832

$ 1,559,262

Page 95

Total revenues











Insurance Proceeds

Budget

$

48,97248,972

(48,972)

(48,972)

$ (48,972)

Actual

$ 2,233

2,233

771,8551,932

301

301

44,668

$ 44,969

Variance - Positive

(Negative)

$ 2,233

2,233

(77)47,11747,040

49,273

49,273

44,668

$ 93,941


BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS


Page 96

Litigation Recovery

Budget

$

53,67453,674

(53,674)

(53,674)

$ (53,674)

Actual

$ 499

499

11,52211,522

(11,023)

(11,023)

53,207

$ 42,184

Variance - Positive

(Negative)

$ 499

499

42,15242,152

42,651

42,651

53,207

$ 95,858


Budget

$

1,769,4641,769,464

(1,769,464)

(1,769,464)

$ (1,769,464)

Actual

$ 9,1371,118,879

12,5901,140,606

37,94627,8362,746

1,031,4491,099,977

40,629

(1,709,201)(1,709,201)

(1,668,572)

2,530,221

$ 861,649

Variance - Positive

(Negative)

$ 9,1371,118,879

12,5901,140,606

(37,946)(27,836)(2,746)

738,015669,487

1,810,093

(1,709,201)(1,709,201)

100,892

2,530,221

$ 2,631,113

Page 97(Continued)

Total revenues











Adjacent Ways

Budget

$

500,000500,000

(500,000)

(500,000)

$ (500,000)

Actual

$ 1,459172

1,631

200,486200,486

(198,855)

(198,855)

382,270

$ 183,415

Variance - Positive

(Negative)

$ 1,459172

1,631

299,514299,514

301,145

301,145

382,270

$ 683,415




Page 98

Bond Building

Budget

$

3,401,0473,401,047

(3,401,047)

(3,401,047)

$ (3,401,047)

Actual

$ 4,459

4,459

1,928,9411,928,941

(1,924,482)

(4,459)(4,459)

(1,928,941)

2,365,351

$ 436,410

Variance - Positive

(Negative)

$ 4,459

4,459

1,472,1061,472,106

1,476,565

(4,459)(4,459)

1,472,106

2,365,351

$ 3,837,457

Gifts and Donations - Capital

Budget

$

$

Actual

$

86

$ 86

Variance - Positive

(Negative)

$

86

$ 86

Page 99(Continued)

Total revenues











Emergency Deficiencies Correction

Budget

$

$

Actual

$

(29)(29)

(29)

29

$

Variance - Positive

(Negative)

$

(29)(29)

(29)

29

$




Page 100


Budget

$

325,780325,780

(325,780)

(325,780)

$ (325,780)

Actual

$

235,495235,495

244,946244,946

(9,451)

(9,451)

$ (9,451)

Variance - Positive

(Negative)

$

235,495235,495

80,83480,834

316,329

316,329

$ 316,329

Totals

Budget

$

6,098,9376,098,937

(6,098,937)

(6,098,937)

$ (6,098,937)

Non-GAAP Actual

$ 17,7871,119,051

248,0851,384,923

37,94627,8362,823

3,419,1993,487,804

(2,102,881)

(1,713,689)(1,713,689)

(3,816,570)

5,375,832

$ 1,559,262

Variance - Positive

(Negative)

$ 17,7871,119,051

248,0851,384,923

(37,946)(27,836)(2,823)

2,679,7382,611,133

3,996,056

(1,713,689)(1,713,689)

2,282,367

5,375,832

$ 7,658,199

Page 101

AGENCY FUNDS Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent. Employee Withholding - to account for voluntary deductions temporarily held by the District as an agent. Intergovernmental Agreements - to account for the financial activities relating to agreements with other governments not required to be accounted for elsewhere.

ASSETSCash and investments

Total assets

LIABILITIESDeposits held for othersDue to governmental entitiesDue to student groups

Total liabilities

Student Activities

$ 8,264$ 8,264

$

8,264$ 8,264

Employee Withholding

$ 1,728,611$ 1,728,611

$ 1,728,611

$ 1,728,611

Intergovernmental Agreements

$ 85,631$ 85,631

$ 85,631

$ 85,631

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING STATEMENT OF ASSETS AND LIABILITIES

AGENCY FUNDSJUNE 30, 2014

Page 104

Totals

$ 1,822,506$ 1,822,506

$ 1,728,61185,6318,264

$ 1,822,506

Page 105

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDSYEAR ENDED JUNE 30, 2014

Beginning EndingBalance Additions Deductions Balance

AssetsCash and investments $ 5,932 $ 28,577 $ 26,245 $ 8,264

Total assets $ 5,932 $ 28,577 $ 26,245 $ 8,264

LiabilitiesDue to student groups $ 5,932 $ 28,577 $ 26,245 $ 8,264

Total liabilities $ 5,932 $ 28,577 $ 26,245 $ 8,264

EMPLOYEE WITHHOLDING FUND

AssetsCash and investments $ 457,397 $ 2,490,814 $ 1,219,600 $ 1,728,611

Total assets $ 457,397 $ 2,490,814 $ 1,219,600 $ 1,728,611

LiabilitiesDeposits held for others $ 457,397 $ 2,490,814 $ 1,219,600 $ 1,728,611

Total liabilities $ 457,397 $ 2,490,814 $ 1,219,600 $ 1,728,611

INTERGOVERNMENTAL AGREEMENTS

AssetsCash and investments $ 171,136 $ 543 $ 86,048 $ 85,631

Total assets $ 171,136 $ 543 $ 86,048 $ 85,631

LiabilitiesAccounts payable $ 15,691 $ $ 15,691 $Due to governmental entities 155,445 543 70,357 85,631

Total liabilities $ 171,136 $ 543 $ 86,048 $ 85,631

TOTAL AGENCY FUNDS

AssetsCash and investments $ 634,465 $ 2,519,934 $ 1,331,893 $ 1,822,506

Total assets $ 634,465 $ 2,519,934 $ 1,331,893 $ 1,822,506

LiabilitiesAccounts payable $ 15,691 $ $ 15,691 $Deposits held for others 457,397 2,490,814 1,219,600 1,728,611Due to governmental entities 155,445 543 70,357 85,631Due to student groups 5,932 28,577 26,245 8,264

Total liabilities $ 634,465 $ 2,519,934 $ 1,331,893 $ 1,822,506

STUDENT ACTIVITIES FUND

Page 106

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.

2014 2013 2012 2011 2010Net Position:

Net investment in capital assets 45,354,673$ 44,097,255$ 42,966,411$ 41,035,544$ 35,858,240$ Restricted 4,661,075 6,932,887 7,770,335 6,163,771 4,310,070 Unrestricted 4,013,699 2,753,258 2,253,280 5,406,126 7,529,214

Total net position 54,029,447$ 53,783,400$ 52,990,026$ 52,605,441$ 47,697,524$

2009 2008 2007 2006 2005Net Position:

Net investment in capital assets 34,776,373$ 32,149,707$ 31,560,835$ 29,732,950$ 22,912,443$ Restricted 3,817,549 2,282,707 1,686,828 1,495,963 1,473,427 Unrestricted 6,410,968 6,490,338 4,663,861 4,398,417 3,466,469

Total net position 45,004,890$ 40,922,752$ 37,911,524$ 35,627,330$ 27,852,339$

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

Page 109

2014 2013 2012 2011 2010

Instruction 10,987,980$ 9,852,917$ 12,914,550$ 12,348,715$ 13,242,347$ Support services - students and staff 3,223,435 3,185,281 2,473,014 2,163,411 3,096,019 Support services - administration 2,473,634 2,535,006 2,509,864 3,103,069 3,395,950 Operation and maintenance of plant services 2,182,106 1,934,821 1,888,304 1,881,082 2,318,532 Student transportation services 549,204 449,625 451,878 582,123 452,766 Operation of non-instructional services 1,988,363 1,771,719 1,603,656 1,634,857 1,629,019 Interest on long-term debt 412,007 449,556 502,479 575,150 512,204

Total expenses 21,816,729 20,178,925 22,343,745 22,288,407 24,646,837

Program RevenuesCharges for services:

Instruction 64,863 32,208 148,061 100,769 75,352 Operation of non-instructional services 236,035 300,643 211,973 174,672 185,353 Other activities 25,094 123,074 106,671

Operating grants and contributions 4,368,531 3,891,507 4,038,734 4,530,533 4,600,256 Capital grants and contributions 855,013 861,442 42,963 86,060 322,909

Total program revenues 5,524,442 5,085,800 4,466,825 5,015,108 5,290,541

Net (Expense)/Revenue (16,292,287)$ (15,093,125)$ (17,876,920)$ (17,273,299)$ (19,356,296)$

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Source:

Page 110

2009 2008 2007 2006 2005Expenses

Instruction 12,377,468$ 12,067,700$ 11,643,334$ 10,784,163$ 8,447,182$ Support services - students and staff 3,287,085 2,803,498 2,606,466 2,330,283 1,334,867 Support services - administration 2,715,829 3,340,825 2,503,541 2,287,772 1,685,890 Operation and maintenance of plant services 1,918,209 2,095,758 1,999,588 1,663,190 1,624,535 Student transportation services 554,339 530,811 487,716 516,554 479,205 Operation of non-instructional services 1,636,779 1,709,907 1,612,100 1,471,457 1,241,770 Interest on long-term debt 509,878 448,732 246,386 282,507 299,672

Total expenses 22,999,587 22,997,231 21,099,131 19,335,926 15,113,121

Program RevenuesCharges for services:

Instruction 343,507 42,066 105,139 127,087 51,538 Operation of non-instructional services 213,434 266,018 206,722 195,472 175,365 Other activities 76,166 9,610 21,067 16,832 80,135

Operating grants and contributions 4,272,316 3,977,492 3,156,528 3,361,682 2,834,303 Capital grants and contributions 92,129 583,122 18,962 243,148 116,449

Total program revenues 4,997,552 4,878,308 3,508,418 3,944,221 3,257,790


(Concluded)

(Accrual basis of accounting)LAST TEN FISCAL YEARS


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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Page 111

2014 2013 2012 2011 2010


General Revenues: Taxes:

Property taxes, levied for general purposes 4,029,371 5,212,610 5,917,475 5,620,663 3,145,217 Property taxes, levied for debt service 654,691 701,890 2,741,424 5,231,260 5,690,850 Property taxes, levied for capital outlay 1,146,878 103,852 194,829 1,367,233 1,510,083

Investment income 34,086 37,739 70,272 114,652 141,283 Unrestricted county aid 905,894 858,246 878,815 933,379 936,891 Unrestricted state aid 9,737,432 8,944,928 8,410,653 8,903,392 9,259,126 Unrestricted federal aid 29,982 27,234 48,037 123,285 1,365,480

Total general revenues 16,538,334 15,886,499 18,261,505 22,293,864 22,048,930

Changes in Net Position 246,047$ 793,374$ 384,585$ 5,020,565$ 2,692,634$


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)


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION

LAST TEN FISCAL YEARS(Accrual basis of accounting)

Page 112

2009 2008 2007 2006 2005


General Revenues: Taxes:

Property taxes, levied for general purposes 4,149,555 4,710,025 4,741,581 3,267,472 4,314,864 Property taxes, levied for debt service 2,256,538 1,786,383 1,283,205 1,155,435 1,280,367 Property taxes, levied for capital outlay 2,361,148 878,730 1,092,385 1,865,529 1,249,483

Investment income 379,371 400,312 241,734 112,045 242,182 Unrestricted county aid 8,981 740,804 663,786 Unrestricted state aid 12,937,561 13,354,701 12,507,021 15,638,275 8,546,061 Gain on sale of capital assets 387,136

Total general revenues 22,084,173 21,130,151 19,874,907 23,166,696 16,296,743

Changes in Net Position 4,082,138$ 3,011,228$ 2,284,194$ 7,774,991$ 4,441,412$

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: Note:

Page 113

2014 2013 2012 2011 2010General Fund:

Nonspendable 342,713$ 570,498$ 386,525$ 105,765$ $ Unassigned 3,168,455 1,513,917 841,638 942,268 Reserved 145,092 Unreserved (897,767)

Total General Fund 3,511,168$ 2,084,415$ 1,228,163$ 1,048,033$ (752,675)$

All Other Governmental Funds:Nonspendable 79,512$ 47,125$ 68,686$ 61,891$ $ Restricted 4,899,616 9,158,537 11,025,906 10,143,062 Unassigned (67,050) Reserved 55,874 Unreserved, reported in:

Special revenue funds 3,339,064 Capital projects funds 9,217,480 Debt service fund 569,753

Total all other governmental funds 4,912,078$ 9,205,662$ 11,094,592$ 10,204,953$ 13,182,171$

(Continued)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17FUND BALANCES - GOVERNMENTAL FUNDS


LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 114

2009 2008 2007 2006 2005General Fund:

Reserved 155,953$ 550,484$ 140,342$ 216,692$ 143,501$ Unreserved 1,622,890 2,716,830 2,524,756 1,869,575 2,058,412

Total General Fund 1,778,843$ 3,267,314$ 2,665,098$ 2,086,267$ 2,201,913$

All Other Governmental Funds:Reserved 29,246$ 29,044$ 28,928$ 33,853$ 13,616$ Unreserved, reported in:

Special revenue funds 2,155,428 1,900,968 1,070,022 1,538,839 893,395 Capital projects funds 4,714,909 3,585,437 3,801,149 846,750 624,200 Debt service fund 622,112 920,855 748,814 507,428 444,612

Total all other governmental funds 7,521,695$ 6,436,304$ 5,648,913$ 2,926,870$ 1,975,823$

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.


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17FUND BALANCES - GOVERNMENTAL FUNDS


Page 115

2014 2013 2012 2011 2010Federal sources:

Federal grants 2,174,902$ 2,316,127$ 1,974,922$ 2,127,345$ 3,180,403$ State Fiscal Stabilization (ARRA) 123,285 1,582,445 Education Jobs 17,255 487,069 National School Lunch Program 1,957,967 1,820,542 1,671,198 1,598,818 1,640,251 Total federal sources 4,132,869 4,136,669 3,663,375 4,336,517 6,403,099

State sources:State equalization assistance 8,724,191 8,181,417 7,653,635 8,220,113 8,507,494 State grants 783,829 488,803 419,969 356,614 231,646 School Facilities Board 235,495 12,225 Other revenues 1,013,241 763,511 757,018 683,748 751,632 Total state sources 10,756,756 9,445,956 8,830,622 9,260,475 9,490,772

Local sources:Property taxes 5,830,514 6,059,209 9,029,927 12,139,723 10,307,157 County aid 905,894 858,246 883,315 937,376 936,891 Food service sales 179,099 169,828 188,644 165,954 184,485 Investment income 34,086 37,739 70,272 104,759 141,283 Other revenues 162,394 232,770 238,374 284,735 384,638 Total local sources 7,111,987 7,357,792 10,410,532 13,632,547 11,954,454 Total revenues 22,001,612$ 20,940,417$ 22,904,529$ 27,229,539$ 27,848,325$

(Continued)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS REVENUES



(Modified accrual basis of accounting)

Page 116

2009 2008 2007 2006 2005Federal sources:

Federal grants 2,336,714$ 2,718,144$ 1,597,157$ 2,018,286$ 1,700,617$ National School Lunch Program 1,562,355 1,509,782 1,427,262 1,240,107 1,083,551 Total federal sources 3,899,069 4,227,926 3,024,419 3,258,393 2,784,168

State sources:State equalization assistance 11,935,102 11,929,424 11,163,237 8,391,567 7,165,062 State grants 581,763 132,644 151,071 120,823 154,400 School Facilities Board 33,257 247,753 5,818,260 783,038 Other revenues 1,002,459 1,392,020 1,096,031 1,434,371 597,961 Total state sources 13,519,324 13,487,345 12,658,092 15,765,021 8,700,461

Local sources:Property taxes 8,620,437 7,338,515 7,044,197 6,379,136 6,784,975 County aid 8,981 740,804 663,786 Food service sales 212,959 209,386 206,722 195,472 149,355 Investment income 396,495 400,423 241,734 112,045 242,182 Other revenues 420,148 326,271 157,206 143,919 163,944 Total local sources 9,650,039 8,274,595 7,658,840 7,571,376 8,004,242 Total revenues 27,068,432$ 25,989,866$ 23,341,351$ 26,594,790$ 19,488,871$

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.

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS REVENUES


Page 117

2014 2013 2012 2011 2010


Instruction 9,807,769$ 8,912,255$ 10,133,630$ 10,862,945$ 11,362,447$ Support services - students and staff 2,979,511 3,236,118 2,333,645 1,992,982 2,773,280 Support services - administration 2,259,584 2,232,514 2,312,360 2,762,827 2,817,817 Operation and maintenance of plant services 1,799,211 1,922,817 2,031,235 1,821,318 1,827,175 Student transportation services 429,017 337,382 345,487 445,660 419,243 Operation of non-instructional services 1,976,357 1,701,185 1,570,926 1,579,750 1,612,144

Capital outlay 4,064,589 2,248,680 1,468,423 6,390,398 7,321,026 Debt service -

Judgments against the district Interest and fiscal charges 412,007 449,556 502,479 551,415 541,327 Principal retirement 945,000 1,095,000 1,424,130 4,789,061 5,732,190 Bond issuance costs 85,812 191,640

Total expenditures 24,673,045$ 22,135,507$ 22,122,315$ 31,282,168$ 34,598,289$

Expenditures for capitalized assets 3,517,739$ 1,945,626$ 1,158,407$ 5,542,378$ 4,886,872$

Debt service as a percentage ofnoncapital expenditures 6% 8% 9% 21% 21%

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

(Continued)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO



Page 118

2009 2008 2007 2006 2005


Instruction 10,798,527$ 10,522,071$ 10,084,052$ 8,757,017$ 7,607,324$ Support services - students and staff 3,251,634 2,776,484 2,448,491 2,305,523 1,307,534 Support services - administration 2,712,710 3,040,061 2,380,363 2,146,888 1,572,211 Operation and maintenance of plant services 1,737,699 2,006,035 1,882,546 1,662,565 1,521,378 Student transportation services 380,053 438,620 403,007 461,984 371,922 Operation of non-instructional services 1,607,402 1,668,947 1,557,329 1,414,718 1,176,849

Capital outlay 8,366,841 2,844,385 4,357,080 9,264,640 2,118,563 Debt service -

Judgments against the district 73,614 Interest and fiscal charges 509,878 448,732 252,629 282,507 299,672 Principal retirement 2,666,701 1,760,179 1,144,948 986,112 857,367 Bond issuance costs 71,351 92,232

Total expenditures 32,176,410$ 25,505,514$ 24,602,677$ 27,281,954$ 16,832,820$

Expenditures for capitalized assets 7,448,289$ 1,174,801$ 3,304,936$ 7,477,985$ 1,288,842$

Debt service as a percentage ofnoncapital expenditures 13% 9% 7% 6% 7%

Source:

(Concluded)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO




Page 119

2014 2013 2012 2011 2010

Excess (deficiency) of revenues over expenditures (2,671,433)$ (1,195,090)$ 782,214$ (4,052,629)$ (6,749,964)$

Other financing sources (uses):General obligation bonds issued 2,960,000 9,600,000 Premium on sale of bonds 62,077 220,763 Proceeds from sale of capital assets 42,392 Transfers in 2,232,268 436,190 238,171 147,950 420,422 Transfers out (2,232,268) (436,190) (238,171) (147,950) (420,422)

Total other financing sources (uses) 3,022,077 9,863,155

Changes in fund balances (2,671,433)$ (1,195,090)$ 782,214$ (1,030,552)$ 3,113,191$

2009 2008 2007 2006 2005

Excess (deficiency) of revenues over expenditures (5,107,978)$ 484,352$ (1,261,326)$ (687,164)$ 2,656,051$

Other financing sources (uses):General obligation bonds issued 5,045,000 4,545,000 Premium on sale of bonds 54,227 98,475 Proceeds from sale of capital assets 430,000 Capital lease agreements 494,997 999,137 Transfers in 319,216 263,518 297,167 136,750 101,342 Transfers out (319,216) (263,518) (297,167) (136,750) (101,342)

Total other financing sources (uses) 5,099,227 494,997 4,643,475 1,429,137

Changes in fund balances (8,751)$ 979,349$ 3,382,149$ 741,973$ 2,656,051$


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS



(Modified accrual basis of accounting)

Page 120

Class 2014 2013 2012 2011 2010

Commercial, Industrial, Utilities and Mining $ 101,084,914 $ 116,567,834 $ 140,646,514 $ 157,455,478 $ 146,865,855

Agricultural and Vacant 9,488,919 13,025,329 17,316,222 14,866,641 14,241,267

Residential (Owner Occupied) 12,794,835 15,802,550 19,717,007 27,204,673 43,462,625

Residential (Rental) 11,918,055 11,313,644 11,497,307 13,305,766 17,091,748

Railroad, Private Cars and Airlines 729,361 563,334 397,082 413,468 429,497

Historical Property 1,226,017 1,260,946 1,597,234 1,944,300 1,895,552

Total $ 137,242,101 $ 158,533,637 $ 191,171,366 $ 215,190,326 $ 223,986,544

Estimated Actual Value (Full Cash Value) $ 1,089,274,236 $ 1,203,115,235 $ 1,427,761,225 $ 1,758,571,294 $ 1,983,394,506

Ratio of Primary Assessed Value to Estimated Actual Value 12.60% 13.18% 13.39% 12.24% 11.29%

Class 2009 2008 2007 2006 2005






Historical Property 2,198,596 2,352,288 384,102 620,831 1,853,682

Total $ 189,230,206 $ 162,588,675 $ 136,101,370 $ 120,447,214 $ 96,433,449

Estimated Actual Value (Full Cash Value) $ 1,799,459,099 $ 1,444,571,697 $ 1,119,466,703 $ 919,976,598 $ 716,571,128

Ratio of Primary Value to Estimated Actual Value 10.52% 11.26% 12.16% 13.09% 13.46%

Source:

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PRIMARY ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY BY CLASS


Fiscal Year

Fiscal Year

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

Page 121

Class 2014 2013 2012 2011 2010






Historical Property 1,738,824 1,307,649 1,671,727 2,178,443 2,127,634

Total $ 138,355,884 $ 159,437,524 $ 194,630,208 $ 244,848,725 $ 275,146,610

Ratio of Secondary Assessed Value to Estimated Actual Value 12.70% 13.25% 13.63% 13.92% 13.87%

Class 2009 2008 2007 2006 2005






Historical Property 2,361,779 2,461,473 488,273 737,531 1,903,051

Total $ 241,078,826 $ 194,656,750 $ 150,922,738 $ 130,236,357 $ 104,619,843

Ratio of Secondary Assessed Value to Estimated Actual Value 13.40% 13.48% 13.48% 14.16% 14.60%

Source: Note: The secondary assessed value generates revenues to service District bonded debt requirements and other voter-approved overrides.

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17SECONDARY ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS


Fiscal Year

Fiscal Year

Page 122

Class 2014 2013 2012 2011 2010

Commercial, Industrial, Utilities and Mining 20 % 20 % 20 % 21 % 22 %

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 15 15 15 17 18

Class 2009 2008 2007 2006 2005

Commercial, Industrial, Utilities and Mining 23 % 24 % 25 % 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 20 21 22 21 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.

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PROPERTY TAX ASSESSMENT RATIOS


Fiscal Year

Fiscal Year

Page 123

Fiscal Year City

Ended ofJune 30 County Avondale Primary Secondary Total

2014 0.51 1.28 0.14 1.53 0.14 1.82 3.76 1.81 5.49 1.92 2.27 4.19 2013 0.47 1.24 0.18 1.38 0.10 1.82 3.42 1.33 4.85 2.38 1.67 4.05 2012 0.43 1.24 0.18 1.21 0.10 1.82 2.91 1.33 4.07 2.47 2.46 4.93 2011 0.36 1.05 0.15 0.97 0.10 1.82 2.44 1.11 2.72 2.19 3.11 5.30 2010 0.33 0.99 0.14 0.88 0.10 1.82 2.51 1.11 2.10 0.98 2.93 3.91 2009 N/A 1.03 0.14 0.94 0.10 1.82 2.30 1.11 2.61 2.46 1.69 4.15 2008 N/A 1.10 0.15 0.98 0.10 1.82 2.67 1.11 2.86 2.06 2.15 4.21 2007 N/A 1.18 0.20 1.06 0.12 1.82 2.97 1.17 4.26 2.64 2.23 4.87 2006 N/A 1.20 0.21 1.03 0.12 1.82 2.43 1.17 3.79 2.90 2.34 5.24 2005 N/A 1.21 0.21 1.04 0.12 1.82 2.41 1.17 4.29 4.01 2.73 6.74

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17DIRECT 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

Flood Control District

Community College District

Central Arizona Water

City of Phoenix

City of Tolleson

Tolleson Union High School

District No. 214

Page 124

Secondary Assessed Valuation

Secondary Assessed Valuation

LBA Realty Fund III Company IX LLC 7,651,080$ 5.53 % $ %ABS SW Investor LLC 4,468,895 3.23Raintree Pad 2 LLC 3,541,911 2.5691st Avenue Investments LLC 3,140,679 2.27Banner Health Systems 2,767,118 2.00Pratte Buckeye Property LLC 2,338,214 1.69The Prince Company 2,282,872 1.65Credit Suisse 1st Boston Mortgage Securities 2,282,872 1.65BRY PL LP 1,992,325 1.44Quiktrip Corporation 1,950,818 1.41Stokely Van Kamp 14,249,223 13.62 Smith's Food & Drug 12,041,744 11.51 Continental Pet Tech. 9,217,008 8.81 Albertson's Inc. 7,647,711 7.31 Willamette Industries Inc. 6,120,261 5.85 Landis Plastics, Inc. 4,875,285 4.66 Holsum Bakery 3,944,168 3.77 Cabot Industrial Properties 3,776,776 3.61 Reckitt&Coleman Inc. 3,379,221 3.23 Autozone 3,316,449 3.17

Total 32,416,784$ 23.43 % 68,567,846$ 65.54 %

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PRINCIPAL 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

2005

Taxpayer

2014

Page 125

FiscalYear Taxes Levied Collections in

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

2014 5,875,068$ 5,758,897$ 98.02 % $ 5,758,897$ 98.02 %2013 6,248,122 6,115,586 97.88 128,333 6,243,919 99.932012 9,517,820 8,917,804 93.70 578,149 9,495,953 99.772011 12,320,281 11,882,138 96.44 436,303 12,318,441 99.992010 10,372,359 9,976,501 96.18 328,031 10,304,532 99.352009 8,880,739 8,570,904 96.51 278,008 8,848,912 99.642008 7,606,016 7,317,560 96.21 278,521 7,596,081 99.872007 7,461,004 7,305,362 97.91 155,168 7,460,530 99.992006 6,434,077 6,297,234 97.87 130,784 6,428,018 99.912005 7,014,061 6,791,918 96.83 221,748 7,013,666 99.99

Source:Notes: 1)

2)

Fiscal Year of the LevyCollected within the

of the Current Fiscal Year

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PROPERTY 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 2014 Maricopa County Treasurer's records.

of LevyPercentage

of LevyPercentage

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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

2014 9,735,000$ 17,443$ 9,717,557$ 0.89 % 1,452$ $ 9,735,000$ 0.89 % 1,452$ 0.01 %2013 10,830,000 707,157 10,122,843 0.84 1,615 10,830,000 0.90 1,615 0.01 2012 12,240,000 1,503,489 10,736,511 0.75 1,871 12,240,000 0.86 1,871 0.01 2011 17,015,000 535,314 16,479,686 0.94 2,589 14,130 17,029,130 0.97 2,591 0.01 2010 19,355,000 569,753 18,785,247 0.95 2,987 28,191 19,383,191 0.98 2,991 0.01 2009 12,040,000 622,112 11,417,888 0.63 1,847 417,989 12,457,989 0.69 1,911 0.01 2008 8,365,000 920,855 7,444,145 0.52 1,252 799,690 9,164,690 0.63 1,372 0.01 2007 9,300,000 748,814 8,551,186 0.76 1,661 694,872 9,994,872 0.89 1,785 0.01 2006 5,615,000 507,428 5,107,572 0.56 1,037 904,820 6,519,820 0.71 1,204 0.01 2005 6,415,000 444,612 5,970,388 0.83 1,185 31,795 6,446,795 0.90 1,191 0.01


General Obligation Bonds

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17OUTSTANDING DEBT BY TYPE


Total Outstanding Debt

General Obligation

Bonds

Amounts Restricted

for PrincipalCapital Leases

Page 127

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Overlapping:Maricopa Community College District 766,085,000$ 0.49 % 3,753,817$ City of Tolleson 36,486,000 62.23 22,705,238 City of Avondale 31,545,000 5.52 1,741,284 City of Phoenix 1,544,830,000 0.31 4,788,973 Tolleson Union High School District No. 214 54,636,950 17.40 9,506,829

Subtotal, Overlapping Debt 42,496,141

Direct:Tolleson Elementary School District No. 17 9,735,000

Total Direct and Overlapping Governmental Activities Debt 52,231,141$

Net Direct General Obligation Bonded DebtAs a Percentage of Net Secondary Assessed Valuation 7.02 %

Net Direct and Overlapping General Bonded DebtPer Capita 7,788$ As a Percentage of Net Secondary Assessed Valuation 37.74 %As a Percentage of Estimated Actual Value (Full Cash Value) 4.79 %

Source:

Note:

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.

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2014

Governmental Unit

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Estimated percentage of debt outstanding applicable to the District is calculated based on the District's secondary assessed valuation as a percentage of the secondary assessed valuation of the overlapping jurisdiction.

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Class B Bond Legal Debt Margin Calculation for Fiscal Year 2014: Total Legal Debt Margin Calculation for Fiscal Year 2014:Secondary assessed valuation 138,355,884$ Secondary assessed valuation 138,355,884$ Debt limit (10% of assessed value) 13,835,588 Debt limit (15% of assessed value) 20,753,383 Debt applicable to limit 9,735,000 Debt applicable to limit 9,735,000 Legal debt margin 4,100,588$ Legal debt margin 11,018,383$

2014 2013 2012 2011 2010

Debt Limit 20,753,383$ 23,915,629$ 29,194,531$ 36,727,309$ 41,271,992$

Total net debt applicable to limit 9,735,000 10,830,000 12,240,000 17,015,000 19,355,000

Legal debt margin 11,018,383$ 13,085,629$ 16,954,531$ 19,712,309$ 21,916,992$

Total net debt applicable to the limit as a percentage of debt limit 47% 45% 42% 46% 47%

2009 2008 2007 2006 2005

Debt Limit 36,161,824$ 29,198,513$ 22,638,411$ 19,535,454$ 15,692,976$

Total net debt applicable to limit 12,040,000 8,365,000 9,300,000 5,615,000 6,415,000

Legal debt margin 24,121,824$ 20,833,513$ 13,338,411$ 13,920,454$ 9,277,976$

Total net debt applicable to the limit as a percentage of debt limit 33% 29% 41% 29% 41%

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.

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17LEGAL DEBT MARGIN INFORMATION




Page 129

Estimated

Year Population (thousands)

2013 4,009,412 $ 147,700,000 $ 27,552 % 6,704 2012 3,942,000 147,724,392 37,474 6,704 2011 3,843,370 142,864,275 37,352 6,541 2010 3,817,117 142,091,618 35,319 6,573 2009 4,023,331 147,122,078 37,168 6,480 2008 3,987,942 139,665,253 36,135 6,520 2007 3,907,492 132,423,154 35,046 6,680 2006 3,792,675 120,716,738 33,178 5,600 2005 3,648,545 111,103,576 31,757 5,415 2004 3,742,460 102,277,852 30,160 5,415

Sources:

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

Personal Income Per Capita

IncomeUnemployment

RateDistrict

Population

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 2004 through 2010 is theUniversity of Arizona, Eller College of Management, Economic and Business Research Center. For 2011through 2013, the source of the information is the Arizona Office of Employment and Population Statistics.

6.2 7.1 8.4 8.3 8.3 4.9 3.2 3.5 4.1 4.5

Page 130

Percentage Percentageof Total of Total

Employees Employment Employees Employment

State of Arizona 49,278 2.59 % 49,150 2.92 %Walmart Stores, Inc. 32,169 1.69 19,510 1.16 Banner Health Systems 25,270 1.33 14,445 0.86 City of Phoenix 14,983 0.79 13,615 0.81 Wells Fargo Company 14,713 0.77 11,535 0.68 Maricopa County 12,698 0.67 15,220 0.90 Apollo Group, Inc. 12,222 0.64 10,530 0.62 Arizona State University 11,900 0.63 9,500 0.56 Raytheon Company 11,042 0.58 9,200 0.55 Bank of America 11,000 0.58 7,270 0.43 Honeywell 10,000 0.53 12,200 0.72 Intel Corporation 10,000 0.53 6,295 0.37 JP Morgan Chase & Company 9,306 0.49 8,540 0.51 Mesa Public Schools 8,217 0.43 8,685 0.52 U.S. Postal Service 7,312 0.38 11,405 0.68 US Airways 10,200 0.60 Albertson's 7,640 0.45 Bashas', Inc. 8,235 0.49 Safeway Stores 7,000 0.42 Fry's Food and Drug 6,400 0.38 Qwest Communications International Inc. 6,300 0.37

Total 240,110 12.63 % 252,875 15.00 %

Total employment 1,903,173 1,686,000

Source: Note: The principal employer data is presented for Maricopa County.

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2014 2005

Page 131

2014 2013 2012 2011 2010

SupervisoryPrincipals 4 4 4 4 4 Assistant principals 3 3 3 3 3

Total supervisory 7 7 7 7 7 Instruction

Teachers 136 140 127 143 146 Other professionals (instructional) 9 13 17 23 15 Aides 26 28 16 18 18

Total instruction 171 181 160 184 179 Student Services

Nurses 2 Health services 3 4 5 3 3 Librarians 3 3 4 2 1 Technicians 8 2 2 2

Total student services 16 9 11 5 6 Support and Administration

Office staff 8 9 12 8 9 Secretaries and clerical 10 6 5 8 8 Maintenance and custodial 10 9 8 8 9 Transportation 9 9 9 9 9 Technology 4 4 3 3 3 Food service 9 9 8 9 9 Other 8 5 4 4 4

Total support and administration 58 51 49 49 51

Total 252 248 227 245 243

(Continued)

Full-time Equivalent Employees as of June 30


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

Page 132

2009 2008 2007 2006 2005

SupervisoryPrincipals 4 4 4 4 4 Assistant principals 3 3 2 3 2

Total supervisory 7 7 6 7 6 Instruction

Teachers 148 119 115 107 112 Other professionals (instructional) 19 40 39 39 28 Aides 17 19 15 11 7

Total instruction 184 178 169 157 147 Student Services

Nurses Health services 4 4 4 4 5 Librarians 8 4 4 4 3 Technicians 2 3 3

Total student services 14 11 11 8 8 Support and Administration

Office staff 11 10 9 10 14 Secretaries and clerical 9 11 12 10 10 Maintenance and custodial 19 20 20 27 27 Transportation 6 7 7 10 11 Technology 3 3 1 1 2 Food service 10 11 12 18 18 Other 12 2 3 6 1

Total support and administration 70 64 64 82 83

Total 275 260 250 254 244

Source:

(Concluded)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE


The source of this information is District personnel records.

Page 133

FiscalYear Cost Cost Pupil-

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

2014 2,632 19,251,449$ 7,314$ 1.41 % 21,816,729$ 8,289$ 4.46 % 136 19.4 80.0 %2013 2,543 18,342,271 7,213 (1.13) 20,178,925 7,935 (8.84) 140 18.2 84.3 2012 2,567 18,727,283 7,295 (5.10) 22,343,745 8,704 (1.12) 127 20.2 81.0 2011 2,532 19,465,482 7,688 (2.48) 22,288,407 8,803 (5.71) 143 17.7 79.2 2010 2,640 20,812,106 7,883 4.78 24,646,837 9,336 10.53 146 18.1 80.3 2009 2,723 20,488,025 7,524 2.31 22,999,587 8,446 2.14 148 18.4 80.5 2008 2,781 20,452,218 7,354 7.71 22,997,231 8,269 7.66 119 23.4 76.6 2007 2,747 18,755,788 6,828 8.84 21,099,131 7,681 6.06 115 23.9 75.6 2006 2,670 16,748,695 6,273 4.20 19,335,926 7,242 7.91 107 25.0 76.4 2005 2,252 13,557,218 6,020 (10.89) 15,113,121 6,711 (10.35) 112 20.1 80.1 2004 1,898 12,822,810 6,756 15.41 14,208,500 7,486 N/A 85 22.3 74.8

Operating expenditures are total expenditures less debt service and capital outlay.The source of this information is the District's financial records.Source:

Note:

Average Daily

MembershipOperating

Expenditures

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17OPERATING STATISTICSLAST TEN FISCAL YEARS

Percentage of

StudentsFree/Reduced

Page 134

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

SchoolsElementary

Buildings 25 30 30 30 30 28 26 26 26 24 Square feet 293,648 283,857 283,857 283,857 283,857 257,857 329,532 329,532 329,532 249,532 Capacity 3,500 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 2,500 Enrollment 2,813 2,796 2,700 2,700 2,750 2,750 2,900 2,900 2,900 2,600

AdministrativeBuildings 1 1 1 1 1 1 1 1 1 1 Square feet 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000

TransportationGarages 1 1 1 1 1 1 1 1 1 1 Buses 14,665 11,860 11,860 11,860 11,860 11,860 11,860 11,860 11,860 11,860

AthleticsSoccer fields 3 3 2 2 2 2 2 2 2 2 Baseball/softball 4 4 4 4 4 4 4 4 4 4 Playgrounds 9 9 10 10 10 10 10 10 10 9

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17CAPITAL ASSETS INFORMATION



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