deer valley unified school district no. 97 · comprehensive annual financial report of the deer...

DEER VALLEY UNIFIED

SCHOOL DISTRICT NO. 97

Comprehensive Annual Financial Report

Fiscal Year Ended June 30, 2012

20402 North 15th Avenue ▪ Phoenix, Arizona 85027

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97

PHOENIX, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

Issued by: Fiscal Services 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 AUDITORS' REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Assets 18 Statement of Activities 19

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


TABLE OF CONTENTS (Cont’d)

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

Statement of Fiduciary Assets and Liabilities 29

Notes to Financial Statements 30

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

General Fund 54 Note to Required Supplementary Information 55

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet - All Non-Major Governmental Funds - By Fund Type 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Non-Major Governmental Funds - By Fund Type 61

Special Revenue Funds: Combining Balance Sheet 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 70 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 76


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 Fund Balance – Budget and Actual 98

Capital Projects Funds:

Combining Balance Sheet 100 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances 102 Combining Schedule of Revenues, Expenditures and

Changes in Fund Balances - Budget and Actual 104

Agency Funds: Combining Statement of Fiduciary Assets and Liabilities 112 Combining Statement of Changes in Fiduciary Assets and Liabilities 113

STATISTICAL SECTION Financial Trends:

Net Assets by Component 116

Expenses, Program Revenues, and Net (Expense)/Revenue 117

General Revenues and Total Changes in Net Assets 119

Fund Balances - Governmental Funds 121

Governmental Funds Revenues 123

Governmental Funds Expenditures and Debt Service Ratio 125

Other Financing Sources and Uses and Net Changes in Fund Balances - Governmental Funds 127


TABLE OF CONTENTS (Concl’d)

STATISTICAL SECTION (Concl’d) Page Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property 128 Direct and Overlapping Property Tax Rates 129

Principal Property Taxpayers 130 Property Tax Levies and Collections 131

Debt Capacity:

Outstanding Debt by Type 132 Direct and Overlapping Governmental Activities Debt 133 Legal Debt Margin Information 134

Demographic and Economic Information: County-Wide Demographic and Economic Statistics 135 Principal Employers 136

Operating Information:

Full-Time Equivalent District Employees by Type 137 Operating Statistics 139 Capital Assets Information 140

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INTRODUCTORY SECTION

December 21, 2012 Citizens and Governing Board Deer Valley Unified School District No. 97 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 of America by a certified public accounting firm licensed in the State of Arizona. Pursuant to the requirement, we hereby issue the comprehensive annual financial report of the Deer Valley Unified School District No. 97 (District) for the fiscal year ended June 30, 2012. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the District’s financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report.

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The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited 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 twelve. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement purposes and the District is not included in any other governmental entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore and athletic functions.

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Deer Valley Unified School District No. 97 covers 367 square miles in northern Maricopa County, Arizona. It is the fifth largest school district in the state and has 37 schools. The average age of school buildings is 18 years. The 2011-12 average daily membership was 33,226, a decrease of 1.4 percent compared to the previous school year. The District employed 2,006 certified personnel and 1,483 support personnel during the fiscal year.

The District’s assessed valuation used to establish the fiscal year 2012 tax rate decreased for the fourth straight year. Even still, the District continues to have above-average income and expects growth in the near future.

In the District, our community has declared its expectations of high standards and hard work for the District’s students and its employees. Excellence is continuously reinforced as we prepare our students to develop their fullest potential academically, emotionally and physically. Students, teachers, administrators, and parents all work together to maintain the high performance standards for which the District is recognized. The District’s students score above the state means on AIMS tests in reading, writing and math in every grade.

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 and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue, therefore a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The City of Phoenix is the capital and largest city of Arizona and is the county seat as well. Phoenix was founded in 1870 and incorporated in 1881. The city encompasses an area of over 500 square miles. Phoenix is the sixth most populous city in the United States and according to the 2010 census, the population of the city was 1,445,632. The Phoenix metropolitan area is the population and economic activity center of the entire state. Phoenix is one of the leaders in the economics of the Southwestern area of the United States. It enjoys a highly diversified economic base consisting of manufacturing, agriculture, tourism, construction, education, distribution centers, finance and retailing.

The Phoenix metropolitan area and the rest of Maricopa County have struggled financially in the past couple of years along with the rest of the State. While the economy has slowed, the Phoenix metropolitan area still includes Honeywell International, Inc., Banner Health Systems, Wal-Mart Stores, Inc., Wells Fargo Company and Bashas’.

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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. 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 2010 population was estimated at 3,817,117 and is still expected to reach 6 million by 2030. Maricopa County has a very wide range of economic sectors supporting it, and for some time, the County enjoyed an unemployment rate that was somewhat lower than the national average. Service is the largest employment sector in the County, partly fueled by the tourist 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, employing over a quarter million people. Manufacturing consisting primarily of high technology companies is the third largest employer. Other factors aiding economic growth include major expansions of the international airport serving the area, a favorable business climate and the presence of a well developed and expanding transportation infrastructure. Long-term Financial Planning. The Deer Valley Unified School District No. 97 is experiencing a slight decline in student membership in 2011-12. Modest growth is expected to return to the District in a couple of years. A continuation of a 10% override increase to the M&O budget was approved in November 2010. This budget increase will be in effect from 2011-12 through 2015-16. Under Arizona’s “Students FIRST” school capital finance system enacted in 1998, the State of Arizona is to provide funding for school district capital needs. “Students FIRST” minimizes bonding for school construction, requiring a state school facilities board to approve any new school construction. The District is utilizing a combination of the recent voter approved bond authorization and “Students FIRST” funding to prepare for additional population growth. 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, 2011. 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, 2011. 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.

v

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 2011-12 certificates. Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the fiscal services 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.

vi

This Certificate of Excellence in Financial Reporting is presented to


For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2011

Upon recommendation of the Association’s Panel of Review which has judged that the Report substantially conforms to principles and standards of ASBO’s Certificate of Excellence Program

President Executive Director

ix


LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Ann Elizabeth Ordway President

Kelly Gorman Vice President

Rob Edmund Ron Bayer Member Member

Christy Agosta Member

ADMINISTRATIVE STAFF

Dr. James Veitenheimer, Superintendent

Jim Migliorino, Associate Superintendent of Fiscal Services

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT Governing Board Deer Valley Unified School District No. 97 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Deer Valley Unified School District No. 97 (District), as of and for the year ended June 30, 2012, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Deer Valley Unified School District No. 97 as of June 30, 2012, and the respective changes in financial position, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2012, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

TUCSON • PHOENIX • FLAGSTAFF • ALBUQUERQUE www.heinfeldmeech.com

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

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

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 14 and budgetary comparison information on pages 54 and 55 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s financial statements as a whole. The accompanying supplementary information such as the introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 21, 2012

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30, 2012

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As management of the Deer Valley Unified School District No. 97 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2012. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS

The District’s total net assets of governmental activities increased $2.9 million which

represents a less than one percent increase from the prior fiscal year.

General revenues accounted for $231.1 million in revenue, or 84 percent of all current fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $44.2 million or 16 percent of total current fiscal year revenues.

The District had approximately $272.4 million in expenses related to governmental

activities, a decrease of less than one percent from the prior fiscal year.

Among major funds, the General Fund had $191.7 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $193.8 million in expenditures. The General Fund’s fund balance decreased from $30.1 million at the prior fiscal year end to $29.9 million at the end of the current fiscal year as a result of a decrease in property tax revenues and state aid.

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



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

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.



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

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund as required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $301.9 million at current fiscal year end. The largest portion of the District’s net assets reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, vehicles, furniture and equipment and construction in progress), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net assets are restricted by statute for special purposes, debt service repayment and capital outlay investment.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) The following table presents a summary of the District’s net assets for the fiscal years ended June 30, 2012 and June 30, 2011.

As of

June 30, 2012 As of

June 30, 2011 Current assets $ 160,195,857 $ 149,324,759 Capital assets, net 429,950,952 421,184,579

Total assets, net 590,146,809 570,509,338 Current and other liabilities 52,872,726 41,056,017 Long-term liabilities 235,326,811 230,376,918

Total liabilities 288,199,537 271,432,935 Net assets:

Invested in capital assets, net of related debt

223,698,222 220,595,636

Restricted 26,414,311 35,439,404 Unrestricted 51,834,739 43,041,363

Total net assets $ 301,947,272 $ 299,076,403 At the end of the current fiscal year the District reported positive balances in all three categories of net assets. The same situation held true for the prior fiscal year. The District’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions that had an impact on the Statement of Net Assets.

The principal retirement of $27.0 million of bonds.

The addition of $22.0 million in capital assets through the construction of new schools and other school improvements, and purchases of vehicles, furniture and equipment.

The issuance of $30.0 million of new bonded debt.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) Changes in net assets. The District’s total revenues for the current fiscal year were $275.3 million. The total cost of all programs and services was $272.4 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2012 and June 30, 2011.

Fiscal Year Ended

June 30, 2012 Fiscal Year Ended

June 30, 2011 Revenues:

Program revenues: Charges for services $ 20,136,991 $ 20,504,077 Operating grants and contributions 22,853,434 30,585,147 Capital grants and contributions 1,238,999 2,116,446

General revenues: Property taxes 124,921,011 132,161,331 Investment income 606,205 1,045,422 Unrestricted county aid 8,666,582 8,456,113 Unrestricted state aid 96,298,153 98,772,657 Unrestricted federal aid 567,614 1,056,573 Total revenues 275,288,989 294,697,766

Expenses: Instruction 160,640,976 161,424,925 Support services – students and staff 24,867,191 26,486,608 Support services – administration 23,793,638 24,492,675 Operation and maintenance of plant services 27,503,685 27,549,465 Student transportation services 13,611,292 12,304,827 Operation of non-instructional services 14,415,542 13,398,450 Interest on long-term debt 7,585,796 6,881,606

Total expenses 272,418,120 272,538,556 Change in net assets 2,870,869 22,159,210

Net assets, beginning 299,076,403 276,917,193 Net assets, ending $ 301,947,272 $ 299,076,403



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)

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

Decrease of $7.2 million in property taxes due to a decrease in the secondary assessed valuation.

Decrease of $7.7 million in operating grants and contributions due primarily to reductions in federal grant revenues received.

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

$20

$40

$60

$80

$100

$120

$140

$160

$180

Mil

lion

s

Expenses

FY2011-12

FY2010-11



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl’d)

Year Ended June 30, 2012 Year Ended June 30, 2011 Total

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $160,640,976 $(136,755,561) $161,424,925 $(130,806,054)Support services – students and staff 24,867,191 (20,296,557) 26,486,608 (19,617,560)Support services – administration 23,793,638 (23,179,817) 24,492,675 (23,469,249)Operation and maintenance of plant services 27,503,685 (26,348,289) 27,549,465 (26,798,774)Student transportation services 13,611,292 (13,002,232) 12,304,827 (12,158,169)Operation of non-instructional services 14,415,542 (1,629,020) 13,398,450 (762,385)Interest on long-term debt 7,585,796 (6,977,220) 6,881,606 (5,720,695)

Total $272,418,120 $(228,188,696) $272,538,556 $(219,332,886)

The cost of all governmental activities this year was $272.4 million.

Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $44.2 million.

Net cost of governmental activities of $228.2 million was financed by general revenues,

which are made up of primarily property taxes of $124.9 million and state aid of $96.3 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 $63.6 million, a decrease of $1.6 million due primarily to the issuance of school improvement bonds and the use of previously unexpended bond proceeds.



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FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS (Concl’d) The General Fund comprises 47 percent of the total fund balance. Approximately $20.0 million or 67 percent of the General Fund’s fund balance constitutes unassigned fund balance. The General Fund is the principal operating fund of the District. The decrease in fund balance of $259,072 to $29.9 million as of fiscal year end was insignificant. General Fund revenues decreased $7.8 million, or 4 percent, while General Fund expenditures increased $2.7 million, or 1 percent. Fund balance in the Debt Service fund decreased $3.2 million as a result of a decrease in property taxes due to falling secondary assessed values. Fund balance in the Bond Building fund decreased $2.6 million as a result of various construction projects. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for reductions of carryforward. The difference between the original budget and the final amended budget was an increase of $1.1 million, or less than one percent. Significant variances for the final amended budget and actual revenues resulted from property tax revenues being less than expected. 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. There were no significant variances in expenditures. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $603.6 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 $21.7 million from the prior fiscal year, primarily due to ongoing construction projects. Total depreciation expense for the current year was $13.2 million.



Page 13

CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl’d) The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2012 and June 30, 2011.

As of

June 30, 2012As of

June 30, 2011 Capital assets – non-depreciable $ 72,771,574 $ 88,692,896 Capital assets – depreciable, net 357,179,378 332,491,683

Total $ 429,950,952 $ 421,184,579 The estimated cost to complete current construction projects is $7.1 million. Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year-end, the District had $214.4 million in long-term debt outstanding, $27.7 million due within one year. This represents a net increase of $3.1 million. 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 30 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 $686.3 million and the Class B debt limit is $228.8 million, which are more than the District’s total outstanding general obligation and Class B debt, respectively. Additional information on the District’s long-term debt can be found in Notes 8 and 9. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES Many factors were considered by the District’s administration during the process of developing the fiscal year 2012-13 budget. Among them:

Fiscal year 2011-12 budget balance carry forward (estimated $3,200,000). District student population (estimated 33,093).

Also considered in the development of the budget is the local economy and inflation of the surrounding area.



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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES (Concl’d) Budgeted expenditures in the General Fund decreased less than one percent to $178.0 million in fiscal year 2012-13. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2012-13 budget. 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 Fiscal Services Department, Deer Valley Unified School District No. 97, 20402 North 15th Avenue, Phoenix, Arizona 85027-3636.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ASSETSCurrent assets:

Cash and investmentsProperty taxes receivableAccounts receivableDue from governmental entitiesInventory

Total current assets

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

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:

Accounts payableConstruction contracts payableCredit line payableAccrued payroll and employee benefitsCompensated absences payableAccrued interest payableUnearned revenuesBonds payableTax anticipation notes payable

Total current liabilities

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

Total noncurrent liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debtRestricted for:

Federal and state projectsFood serviceOther local initiativesDebt serviceCapital outlay

UnrestrictedTotal net assets

Governmental Activities

$ 106,735,31617,048,699

314,03234,925,7271,172,083

160,195,857

50,257,91446,420,194

444,494,61039,881,22722,513,660

(173,616,653)429,950,952590,146,809

3,418,0717,921,7436,118,000

808,2941,250,0004,558,718

47,90027,740,00030,000,00081,862,726

206,336,811206,336,811288,199,537

223,698,222

3,782,804851,139

14,884,7483,420,2863,475,334

51,834,739$ 301,947,272

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97STATEMENT OF NET ASSETS

JUNE 30, 2012

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

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Program Revenues

Net (Expense) Revenue and

Changes in Net Assets

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

$ 160,640,97624,867,19123,793,638

27,503,68513,611,29214,415,542

7,585,796$ 272,418,120

Charges for Services

$ 11,014,181488,992490,960

591,4837,551,375

$ 20,136,991

Operating Grants and

Contributions

$ 11,959,5514,081,642

122,861

828,08017,577

5,235,147608,576

$ 22,853,434

Capital Grants and

Contributions

$ 911,683

327,316

$ 1,238,999

Governmental Activities

$ (136,755,561)(20,296,557)(23,179,817)

(26,348,289)(13,002,232)(1,629,020)(6,977,220)

(228,188,696)

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 assets

Net assets, beginning of year

Net assets, end of year

87,246,00830,488,1527,186,851

606,2058,666,582

96,298,153567,614

231,059,565

2,870,869

299,076,403

$ 301,947,272

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

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FUND FINANCIAL STATEMENTS

ASSETSCash and investmentsProperty taxes receivableAccounts receivableDue from governmental entitiesDue from other fundsInventory

Total assets

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payableConstruction contracts payableCredit line payableDue to other fundsAccrued payroll and employee benefitsAccrued interest payableDeferred revenuesBonds payableBond interest payableTax anticipation notes payable

Total liabilities

Fund balances:NonspendableRestrictedAssignedUnassigned

Total fund balances

Total liabilities and fund balances

General

$ 36,443,09316,045,101

28,916,5902,664,938

860,175$ 84,929,897

$ 2,876,724

6,118,000

692,623186,000

15,186,561

30,000,00055,059,908

860,1758,243,037

804,47819,962,29929,869,989

$ 84,929,897

Debt Service

$ 34,529,4061,003,598

$ 35,533,004

$

844,43527,740,0004,372,718

32,957,153

2,575,851

2,575,851

$ 35,533,004

Bond Building

$ 16,034,013

$ 16,034,013

$7,921,743

7,921,743

8,112,270

8,112,270

$ 16,034,013

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97 BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2012

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Non-Major Governmental

Funds

$ 19,728,804

314,0326,009,137

311,908$ 26,363,881

$ 541,347

2,664,938115,671

47,900

3,369,856

311,90822,682,117

22,994,025

$ 26,363,881

Total Governmental

Funds

$ 106,735,31617,048,699

314,03234,925,7272,664,9381,172,083

$ 162,860,795

$ 3,418,0717,921,7436,118,0002,664,938

808,294186,000

16,078,89627,740,0004,372,718

30,000,00099,308,660

1,172,08341,613,275

804,47819,962,29963,552,135

$ 162,860,795

Page 23

Total governmental fund balances 63,552,135$

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

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

Governmental capital assets 603,567,605$ Less accumulated depreciation (173,616,653) 429,950,952

Some property tax revenues will not be available to pay for current periodexpenditures and, therefore, are deferred in the funds. 16,030,996

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

Compensated absences payable (11,824,491)Other postemployment benefits payable (9,137,320)Bonds payable (186,625,000) (207,586,811)

Net assets of governmental activities 301,947,272$

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET ASSETSJUNE 30, 2012

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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 chargesBond issuance costs

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses):Transfers inTransfers outIssuance of school improvement bondsPremium on sale of bonds

Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

Increase (decrease) in reserve for inventory

Fund balances, end of year

General

$ 11,199,23794,059,62185,918,187

567,614191,744,659

113,785,63517,104,65620,618,72525,590,24910,616,391

941,1934,995,875

186,000

193,838,724

(2,094,065)

1,604,119

1,604,119

(489,946)

30,129,061

230,874

$ 29,869,989

Debt Service

$ 201,48431,010,921

608,57631,820,981

27,740,0008,637,356

36,377,356

(4,556,375)

1,309,549

1,309,549

(3,246,826)

5,822,677

$ 2,575,851

Bond Building

$ 71,989

71,989

32,613,787

225,08732,838,874

(32,766,885)

(1,309,549)30,000,0001,462,647

30,153,098

(2,613,787)

10,726,057

$ 8,112,270

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2012

Page 26



Funds

$ 19,667,516

11,284,09120,849,28451,800,891

24,504,3825,249,412

737,204901,960520,156

10,859,8642,888,127

45,661,105

6,139,786

(1,604,119)

(1,604,119)

4,535,667

18,460,420

(2,062)

$ 22,994,025

Total Governmental

Funds

$ 31,140,226125,070,54297,202,27822,025,474

275,438,520

138,290,01722,354,06821,355,92926,492,20911,136,54711,801,05740,497,789

27,740,0008,823,356

225,087308,716,059

(33,277,539)

2,913,668(2,913,668)30,000,0001,462,647

31,462,647

(1,814,892)

65,138,215

228,812

$ 63,552,135

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Net changes in fund balances - total governmental funds (1,586,080)$

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

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

Expenditures for capitalized assets 21,964,845$ Less current year depreciation (13,156,673) 8,808,172

Issuance of general obligation bonds provide current financial resources togovernmental funds, but the issuance increases long term liabilities in theStatement of Net Assets. (30,000,000)

Property tax revenues in the Statement of Activities that do not provide currentfinancial resources are not reported as revenues in the funds. (149,531)

Repayments of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement ofNet Assets. 27,740,000

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 (41,799)Other postemployment benefits (1,082,267)Compensated absences (817,626) (1,941,692)

Change in net assets in governmental activities 2,870,869$

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

Page 28


ASSETSCash and investments

Total assets

LIABILITIESAccounts payableDeposits held for othersDue to student groups

Total liabilities

Agency

$ 3,929,491$ 3,929,491

$ 122,5792,404,9571,401,955

$ 3,929,491

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

JUNE 30, 2012

Page 29


DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012

Page 30

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Deer Valley Unified School District No. 97 (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. 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, food services, bookstore and athletic functions.


JUNE 30, 2012

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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 assets 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, Federal and County 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, 2012

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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 resources are provided during the current year for payment of long-term debt principal and interest due early in the following year (not to exceed one month) and, therefore, the expenditures and related liabilities have been recognized. Compensated absences are recorded only when payment is due.

Property taxes, State, Federal and County aid, tuition 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. Deferred 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 deferred revenue 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 the Medicaid Reimbursement, School Plant, Auxiliary Operations, Insurance Proceeds, Litigation Recovery, Indirect Costs, Print Shop, Unrestricted Capital Outlay, and Soft Capital Allocation Funds. These funds are maintained as separate funds for accounting and budgetary purposes but, with the exception of the Unrestricted Capital Outlay Fund, do not meet the criteria for separate reporting in the financial statements. The District has elected to present the Unrestricted Capital Outlay Fund in the General Fund, as allowable under state guidelines.


JUNE 30, 2012

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

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

Bond Building Fund - The Bond Building Fund accounts for proceeds from District bond issues that are expended on the acquisition or lease of sites, construction or renovation of school buildings, improving school grounds, or purchasing pupil transportation vehicles.

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 the Student Activities Fund which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds.

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. requires the District to deposit certain cash with the County Treasurer. That cash 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. 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.”


JUNE 30, 2012

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles. G. Property Tax Calendar

Property tax levies are obtained by applying tax rates against either the primary assessed valuation or 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. 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 first-in/first-out (FIFO) 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.


JUNE 30, 2012

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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. 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. 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 20 years Buildings and improvements 25 - 50 years Vehicles, furniture and equipment 5 - 15 years

K. Compensated Absences The District’s employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Vacation leave vests with employees at the employees’ regular rate of pay. Sick leave benefits vest with employees after five years of service at rates varying with years of service. The current and long-term liabilities, including related benefits for accumulated vacation and sick leave are reported on 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, 2012

Page 36

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d) L. 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 assets. Bond premiums and discounts, as well as issuance costs and 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. M. 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. N. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact.


JUNE 30, 2012

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NOTE 2 – FUND BALANCE CLASSIFICATIONS (Cont’d) Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation.

Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported. Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a management official delegated that authority by the formal Governing Board action. The Governing Board has authorized the Associate Superintendent of Fiscal Services to assign fund balances in accordance with the Governing Board approved fund balance policy. 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 expenditures 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.


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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

Fund

DebtService Fund

Bond Building

Fund


FundsFund Balances:

Nonspendable: Inventory $ 860,175 $ $ $ 311,908

Restricted: Debt service 2,575,851 Capital projects 8,243,037 3,475,334 Bond building projects 8,112,270Voter approved initiatives 3,059,976 Federal and State projects 722,828 Food service 539,231 JTED 4,360,102 Civic Center 3,067,795Community School 5,578,909EATC 1,030,456Gifts and Donations 732,606Textbooks 114,880

Assigned: Auxiliary Operations 804,478

Unassigned 19,962,299 Total fund balances $ 29,869,989 $ 2,575,851 $ 8,112,270 $ 22,994,025

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budgets, however this does not constitute a violation of any legal provisions.

NOTE 4 – CASH AND INVESTMENTS

A.R.S. authorize the District to invest public monies in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, obligations of the U.S. Government and its agencies, obligations of the State and certain local government subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized repurchase agreements, certain obligations of U.S. corporations, and certain other securities. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the District’s investments.


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NOTE 4 – CASH AND INVESTMENTS (Concl’d) 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 $4,650,269 and the bank balance was $4,940,341. The District had $12,000 of cash on hand at year end.

The State Treasurer’s pools are external investment pools, the Local Government Investment Pool (Pool 5) and Local Government Investment Pool-Government (Pool 7), with no regulatory oversight. The pools are not required to register (and are not registered) with the Securities and Exchange Commission. The activity and performance of the pools are reviewed monthly by the State Board of Investment. The fair value of each participant’s position in the State Treasurer and County Treasurer investment pools approximates the value of the participant’s shares in the pool and the participants shares are not identified with specific investments. No regulatory oversight is provided for the County Treasurer’s Investment Pool and that pool’s structure does not provide for shares.

Average Maturities Fair Value County Treasurer’s investment pool 375 days $ 106,002,538Total $ 106,002,538

Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pool did not receive a credit quality rating from a national rating agency. Custodial Credit Risk - Investments. The District’s investment in the County Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however the District’s portion is not identified with specific investments and is not subject to custodial credit risk.


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

General

Fund


Funds Due from other governmental entities:

Due from Federal government $ 103,811 $ 3,348,824 Due from State government 28,812,779 2,087,414 Due from other Districts 572,899

Net due from governmental entities $ 28,916,590 $ 6,009,137

Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows. Unavailable Unearned Delinquent property taxes receivable (General Fund) $ 15,186,561 $ Delinquent property taxes receivable (Debt Service Fund) 844,435 Grant drawdowns prior to meeting all eligibility

requirements (Non-Major Governmental Funds) 47,900 Total deferred revenue for governmental funds $ 16,030,996 $ 47,900


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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 $ 50,257,914 $ $ $ 50,257,914 Construction in progress 38,434,982 19,719,806 35,641,128 22,513,660

Total capital assets, not being depreciated 88,692,896 19,719,806 35,641,128 72,771,574

Capital assets, being depreciated: Land improvements 45,248,770 1,171,424 46,420,194 Buildings and improvements 408,609,256 35,885,354 444,494,610 Vehicles, furniture and equipment 39,353,397 829,389 301,559 39,881,227

Total capital assets being depreciated 493,211,423 37,886,167 301,559 530,796,031 Less accumulated depreciation for:

Land improvements (26,596,130) (1,907,886) (28,504,016)Buildings and improvements (110,070,960) (8,651,169) (118,722,129)Vehicles, furniture and equipment (24,052,650) (2,597,618) (259,760) (26,390,508)

Total accumulated depreciation (160,719,740) (13,156,673) (259,760) (173,616,653)

Total capital assets, being depreciated, net 332,491,683 24,729,494 41,799 357,179,378 Governmental activities capital assets, net $ 421,184,579 $44,449,300 $ 35,682,927 $429,950,952

Depreciation expense was charged to governmental functions as follows.

Instruction $ 7,927,429 Support services – students and staff 2,199,024 Support services – administration 566,998 Operation and maintenance of plant services 262,100 Student transportation services 1,354,154 Operation of non-instructional services 846,968 Total depreciation expense – governmental activities $ 13,156,673

Construction Commitments – At year end, the District had contractual commitments related to various capital projects for the modernization of school buildings. At year end the District had spent $22,513,660 on the projects and had estimated remaining contractual commitments of $7,120,976. These projects are being funded with bond proceeds.


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NOTE 7 – SHORT TERM DEBT Tax Anticipation Notes - In July 2011, the District issued $30,000,000 in tax anticipation notes in advance of property tax collections, depositing the proceeds in the General Fund. These notes are necessary to provide cash flow as most tax revenue is collected in November and May. Property tax revenues of the General Fund will be used to repay these notes in July 2012. Short-term debt activity for the current fiscal year was as follows.

Beginning Balance Issued Redeemed

Ending Balance

Tax anticipation notes $ 25,000,000 $ 30,000,000 $ 25,000,000 $ 30,000,000 Revolving Line of Credit - The District has a revolving line of credit to provide cash flow during the year to mitigate the impact of timing differences of expenditures and the receipt of state aid and property tax revenues. General Fund revenues will be used to repay the line of credit. Short-term debt activity for the current fiscal year, was as follows.

BeginningBalance Issued Redeemed

EndingBalance

Revolving line of credit $ $ 41,855,000 $ 35,737,000 $ 6,118,000


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NOTE 8 – GENERAL OBLIGATION BONDS PAYABLE Bonds payable at year end consisted of the following outstanding general obligation bonds. Of the total amount originally authorized, $58,000,000 remains unissued. The bonds are both callable and noncallable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt. In addition, a portion of the District’s school improvement bonds are Qualified Build America Bonds, as such the District will receive direct subsidy payments from the United States of America for a portion of the interest due on the bonds.

Purpose

Original Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal

June 30, 2012 Due WithinOne Year

Governmental activities: School Improvement Bonds

Project of 2001, Series A (Class B) $ 22,000,000 4.5-5.0% 7/1/2012 $ 9,550,000 $ 9,550,000

School Improvement Bonds Project of 2001, Series B (Class B) 30,000,000 3.75-4.0% 7/1/2012 10,000,000 10,000,000

School Improvement Bonds Project of 2001, Series C (Class B) 25,500,000 3.0-5.0% 7/1/2012-13 13,725,000 6,375,000

School Improvement Bonds Project of 2004, Series A (Class B) 25,000,000 3.75-4.0% 7/1/2013-16 15,000,000

School Improvement Bonds Project of 2004, Series B (Class B) 27,000,000 4.0-5.0% 7/1/2014-18 24,500,000

School Improvement Bonds Project of 2004, Series C (Class B) 21,000,000 3.25-4.0% 7/1/2012-16 15,250,000 1,750,000

School Improvement Bonds Project of 2004, Series D (Class B) 17,000,000 4.375-5.25% 7/1/2014-17 17,000,000


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NOTE 8 – GENERAL OBLIGATION BONDS PAYABLE (Concl’d)

Purpose

Original Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal

June 30, 2012 Due WithinOne Year

School Improvement Bonds Project of 2008, Series A (Class B) $ 30,000,000 2.5-4.99% 7/1/2014-20 $ 30,000,000 $

School Improvement Bonds Project of 2008, Series B (Class B) 30,000,000 2.0-5.0% 7/1/2014-24 30,000,000

Refunding Bonds, Series 2010 19,600,000 4.0-5.0% 7/1/2012-14 19,340,000 65,000

School Improvement Bonds Project of 2008, Series C (Class B) 30,000,000 2.0-5.0% 7/1/2014-24 30,000,000

Total $ 214,365,000 $ 27,740,000

Annual debt service requirements to maturity on general obligation and refunding bonds at year end are summarized as follows.

Governmental Activities Year ending June 30: Principal Interest

2013 $ 27,740,000 $ 8,195,136 2014 29,225,000 7,054,998 2015 24,625,000 5,999,628 2016 24,825,000 5,026,156 2017 15,550,000 4,173,799 2018-22 61,650,000 12,280,948 2023-25 30,750,000 1,648,625

Total $ 214,365,000 $ 44,379,290

In prior years, the District defeased certain general obligation and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the defeased bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the District’s financial statements. At year end, $19,600,000 of defeased bonds are still outstanding.


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NOTE 9 – 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 $ 211,315,000 $ 30,000,000 $ 26,950,000 $214,365,000 $ 27,740,000 Compensated absences payable 11,006,865 4,553,915 3,736,289 11,824,491 1,250,000 Other postemployment benefits

payable 8,055,053 4,683,717 3,601,450 9,137,320 Governmental activity long-term

liabilities $ 230,376,918 $ 39,237,632 $ 34,287,739 $235,326,811 $ 28,990,000

NOTE 10 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

At year end interfund balances were as follows. Due to/from other funds:

Due from

Due to General

FundNon-Major Governmental Funds $ 2,664,938Total $ 2,664,938

At year end, five funds had negative cash balances in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with other funds. All interfund balances are expected to be paid within one year. Interfund transfers:

Transfers in

Transfers out General

Fund

DebtService Fund Total

Bond Building Fund $ $ 1,309,549 $ 1,309,549Non-Major Governmental Funds 1,604,119 1,604,119Total $ 1,604,119 $ 1,309,549 $ 2,913,668

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, and (2) to move Federal grant funds restricted for indirect costs.


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NOTE 11 – CONTINGENT LIABILITIES Compliance - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial. Lawsuits - The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District’s counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the District.

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

NOTE 12 – 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 joined the Valley Schools Insurance Trust (VSIT), Valley School Employee Benefit Trust (VSEBT), and the Valley Schools Worker’s Compensation pool (VSWCP) together with several school districts in the State. 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 Valley Schools Insurance Trust (VSIT). VSIT is a public entity risk pool currently operating as a common risk management and insurance program for school districts. The District pays an annual premium to VSIT for its general insurance coverage. The agreement provides that VSIT will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts of each insured event.

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 an annual 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 of each insured event.


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NOTE 12 – RISK MANAGEMENT (Concl’d) The District joined the Valley Schools Workers’ Compensation Pool (VSWCP) together with other school districts in the state for risks of loss related to workers’ compensation claims. VSWCP 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 annual premiums to VSWCP for its employee workers’ compensation coverage. The agreement provides that VSWCP will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts of each insured event.

NOTE 13 – 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. 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 10.74 percent (10.5 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 10.74 percent (9.87 percent for retirement, 0.63 percent for health insurance premium, and 0.24 percent for long-term disability) of the members’ annual covered payroll.


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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl’d)

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 FundYear ending June 30:

2012 $ 12,633,976 $ 806,424 $ 307,209 2011 11,963,409 783,398 331,9482010 11,629,254 920,301 557,758

NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN

Plan Description – Under authority of the Governing Board, the District provides postretirement insurance (health and dental) benefits, for certain retirees and their dependents, in accordance with the District’s Early Retirement Program. The plan is a single-employer defined benefit plan administered by the District. The District contributes $474 per month of these premiums for employees who retire and are not eligible for the ASRS Retiree Premium Benefit and $324 per month for employees that are eligible for the ASRS Retiree Premium Benefits. For the current fiscal year, the District contributed $2,189,977 for these benefits. In addition, by providing retirees with access to the District’s healthcare plans based on the same rates it charges to active employees, the District is in effect providing a subsidy to retirees. This implied subsidy exists because, on average, retiree healthcare costs are higher than active employee healthcare costs. The District’s contribution in the form of this subsidy was $1,411,473 for a total contribution of $3,601,450. The District’s regular insurance providers underwrite the retiree policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. A separate financial report is not issued for the plan. The number of participants as of the prior fiscal year end, the effective date of the biannual OPEB valuation, follows.

Participants Active employees $ 2,748 Retired employees 440

Total $ 3,188 Funding Policy – The District currently pays for postemployment benefits on a pay-as-you-go basis. Generally, resources from the General Fund are used to pay for postemployment benefits. Although the District is studying the establishment of a trust that would be used to accumulate and invest assets necessary to pay for the accumulated liability, these financial statements assume that pay-as-you-go funding will continue.


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NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN (Cont’d) Annual OPEB Cost and Net OPEB Obligation – The District’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the District, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.

Annual required contribution $ 4,481,653 Interest on net OPEB obligation 402,753 Adjustment to annual required contribution (200,689)Annual OPEB cost (expense) 4,683,717 Contributions made (3,601,450)Increase in net OPEB obligation 1,082,267 Net OPEB obligation – beginning of year 8,055,053 Net OPEB obligation – end of year $ 9,137,320

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year ended June 30, 2012 and the two preceding years is as follows.

Fiscal Year Ended

Annual OPEB

Cost

Annual OPEB

Cost Contributed

Percentage of Annual OPEB

Cost Contributed Net OPEB Obligation

June 30, 2012 $ 4,683,717 $ 3,601,450 77% $ 9,137,320June 30, 2011 4,235,216 3,661,008 86 8,055,053 June 30, 2010 4,235,216 2,696,307 64 7,480,845


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Page 50

NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN (Cont’d)

Actuarial Methods and Assumptions – Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit cost between the employer and plan members to that point. The projection of future benefit payments involves estimates of the value of reported amounts and assumptions about the probability of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Amounts determined and the funded status of the plan and the annual required contributions of the District are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The more significant actuarial assumptions and methods used in the calculation of the employer contributions for the current fiscal year were as follows.

Valuation date July 1, 2011 Actuarial cost method Projected unit credit Amortization method for actuarial

accrued liabilities 30 years, level dollar amount, open period

Remaining amortization period 30 years as of June 30, 2011 Interest rate 5% Health care cost trend rate:

Medical and Prescription Drug 8% decreasing Retiree contribution increase Frozen

The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.


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NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN (Concl’d)

Schedule of Funding Progress – The following schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Actuarial Valuation

Date

Actuarial Value of Assets

(a)

Actuarial Accrued Liability (AAL)

(b)

Unfunded AAL (UAAL)

(b-a)

Funded Ratio (a/b)

Covered Payroll

(c)

UAAL as a Percentage of

Covered Payroll ((b-a)/c)

July 1, 2011 $ -0- $ 36,910,935 $ 36,910,935 0% $ 114,523,550 32% July 1, 2009 -0- 34,366,672 34,366,672 0 119,128,552 29 July 1, 2007 -0- 30,370,090 30,370,090 0 148,521,085 20

NOTE 15 – SUBSEQUENT EVENTS Tax Anticipation Notes In July 2012, the District issued $30,000,000 of tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. Capital Outlay Override In November 2012, voters did not approve the renewal of a $7,500,000 capital outlay override. School Improvement Bonds On January 9, 2013, the District has scheduled a $23,400,000 bond sale of school improvement bonds to provide funds for making certain school improvements within the District.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(Required Supplementary Information)

Revenues:Other localProperty taxesState aid and grants

Total revenues



Debt service -Interest and fiscal charges

Total expenditures


Fund balances (deficits), beginning of year

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

Fund balances (deficits), end of year

Budgeted Amounts

Original

$ 380,000105,837,752

76,512,938182,730,690

110,039,69018,566,00018,146,00020,872,0009,887,000

220,000

177,730,690

5,000,000

(5,000,000)

$

Final

$ 380,000105,837,75276,512,938

182,730,690

108,494,13017,832,00017,639,00024,216,00010,485,000

205,000

178,871,130

3,859,560

(5,000,000)

$ (1,140,440)

Non-GAAP Actual

$ 9,044,37286,736,77881,362,617

177,143,767

106,802,43316,842,76417,940,84423,433,33710,427,549

210,602

186,000175,843,529

1,300,238

4,018,431

3,833,334230,874

$ 9,382,877

Variance with Final Budget

Positive (Negative)

$ 8,664,372(19,100,974)

4,849,679(5,586,923)

1,691,697989,236

(301,844)782,66357,451(5,602)

(186,000)3,027,601

(2,559,322)

9,018,431

3,833,334230,874

$ 10,523,317

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


Page 54

See accompanying notes to this schedule.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2012

Page 55

NOTE 1 – BUDGETARY BASIS OF ACCOUNTING The adopted budget of the District is prepared on a basis consistent with accounting principles generally accepted in the United States of America with the following exceptions: 1) a portion of the General Fund activity is budgeted for separately as special revenue funds and capital projects funds, 2) a portion of fiscal year 2012-13 insurance payments were charged against the fiscal year 2011-12 budget, and 3) a portion of the fiscal year 2011-12 insurance payments were budgeted for in fiscal year 2010-11. Consequently, the following adjustments were necessary to present actual expenditures, increase in reserve for prepaid items, fund balance at July 1, 2011, and fund balance at June 30, 2012 on a budgetary basis in order to provide a meaningful comparison.

Total

Expenditures

Increase in Reserve for

Prepaid Items Fund Balance, June 30, 2012

Fund Balance, July 1, 2011

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds $ 193,838,724 $ $ 29,869,989 $ 30,129,061

Fiscal year 2011-12 activity budgeted as special revenue funds (5,631,285) (2,934,022) (4,549,887)

Fiscal year 2011-12 activity budgeted as capital projects funds (9,735,858) (17,553,090) (15,099,357)

Fiscal year 2012-13 insurance payments charged against fiscal year 2011-12 budget 3,833,334 3,833,334

Fiscal year 2011-12 insurance payments budgeted in 2010-11 (6,461,386)

(6,461,386)

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund $ 175,843,529 $ 3,833,334

$ 9,382,877

$ 4,018,431

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

GOVERNMENTAL FUNDS

ASSETSCash and investmentsAccounts receivableDue from governmental entitiesInventory

Total assets


Accounts payableDue to other fundsAccrued payroll and employee benefitsDeferred revenues

Total liabilities

Fund balances:NonspendableRestricted

Total fund balances


Special Revenue

$ 16,337,019230,483

6,009,137311,908

$ 22,888,547

$ 541,3472,664,938

115,67147,900

3,369,856

311,90819,206,78319,518,691

$ 22,888,547

Capital Projects

$ 3,391,78583,549

$ 3,475,334

$

3,475,3343,475,334

$ 3,475,334

Total Non-Major

Governmental Fund

$ 19,728,804314,032

6,009,137311,908

$ 26,363,881

$ 541,3472,664,938

115,67147,900

3,369,856

311,90822,682,11722,994,025

$ 26,363,881

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE

JUNE 30, 2012

Page 60

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

Total revenues



Capital outlayTotal expenditures


Other financing sources (uses):Transfers out






Special Revenue

$ 19,325,37311,284,09120,849,28451,458,748

24,504,3825,249,412

737,204901,960520,156

10,859,8642,876,746

45,649,724

5,809,024

(1,604,119)(1,604,119)

4,204,905

15,315,848

(2,062)

$ 19,518,691

Capital Projects

$ 342,143

342,143

11,38111,381

330,762

330,762

3,144,572

$ 3,475,334

Total Non-Major

Governmental Funds

$ 19,667,51611,284,09120,849,28451,800,891

24,504,3825,249,412

737,204901,960520,156

10,859,8642,888,127

45,661,105

6,139,786

(1,604,119)(1,604,119)

4,535,667

18,460,420

(2,062)

$ 22,994,025

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2012

Page 61

SPECIAL REVENUE FUNDS Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Instructional Improvement - to account for the activity of monies received from gaming revenue. Structured English Immersion - to account for monies received to provide for the incremental cost of instruction to English language learners. Compensatory Instruction - to account for monies received for programs in addition to normal classroom instruction to improve the English proficiency of current English language learners. 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. Limited English & Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Vocational Education - to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. E-Rate - to account for financial assistance received for broadband internet and telecommunication costs. Other Federal Projects - to account for financial assistance received for other supplemental federal projects. State Vocational Education - to account for financial assistance received for the preparation of individuals for employment.

Other State Projects - to account for financial assistance received for other State projects. School Plant - to account for proceeds from the sale or lease of school property. Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Civic Center - to account for monies received from the rental of school facilities for civic activities. Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations. 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. Insurance Proceeds - to account for the monies received from insurance claims. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Litigation Recovery - to account for monies received for and derived from litigation. Indirect Costs - to account for monies transferred from Federal projects for administrative costs. Joint Technical Education - to account for monies received from Joint Technical Education Districts for vocational education programs. Print Shop - to account for charges to other departments for printing and copying services.


Total assets



Total liabilities


Total fund balances


Classroom Site

$

1,488,916

$ 1,488,916

$379,85527,958

407,813

1,081,1031,081,103

$ 1,488,916

Instructional Improvement

$ 1,387,192

598,498

$ 1,985,690

$

6,817

6,817

1,978,8731,978,873

$ 1,985,690

Structured English

Immersion

$ 104

$ 104

$

104104

$ 104

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS

JUNE 30, 2012

Page 64

Compensatory Instruction

$ 14,726

$ 14,726

$

14,72614,726

$ 14,726

Title I Grants

$

627,237

$ 627,237

$ 260,937353,48712,813

627,237

$ 627,237

Professional Development

and Technology Grants

$

65,622

$ 65,622

$ 11,11654,506

65,622

$ 65,622

Special Education

Grants

$

585,506

$ 585,506

$ 72,459497,914

15,133

585,506

$ 585,506

Vocational Education

$ 10,103

$ 10,103

$ 10,103

10,103

$ 10,103

E-Rate

$ 560,903

113,231

$ 674,134

$

674,134674,134

$ 674,134

Page 65

(Continued)


Total assets



Total liabilities


Total fund balances


Other Federal Projects

$

1,461,538

$ 1,461,538

$ 22,3941,379,176

11,274

1,412,844

48,69448,694

$ 1,461,538

State Vocational Education

$ 20,386

$ 20,386

$

20,38620,386

$ 20,386

Other State Projects

$ 33,027

$ 33,027

$ 20,343

12,68433,027

$ 33,027


JUNE 30, 2012

Page 66

Food Service

$ 63,762

495,690311,908

$ 871,360

$

20,221

20,221

311,908539,231851,139

$ 871,360

Civic Center

$ 3,145,308

$ 3,145,308

$ 77,513

77,513

3,067,7953,067,795

$ 3,145,308

Community School

$ 5,404,572230,483

$ 5,635,055

$ 34,691

21,455

56,146

5,578,9095,578,909

$ 5,635,055

Extracurricular Activities Fees

Tax Credit

$ 1,053,848

$ 1,053,848

$ 23,392

23,392

1,030,4561,030,456

$ 1,053,848

Gifts and Donations

$ 741,005

$ 741,005

$ 8,399

8,399

732,606732,606

$ 741,005

Textbooks

$ 114,880

$ 114,880

$

114,880114,880

$ 114,880

Page 67

(Continued)


Total assets



Total liabilities


Total fund balances


Joint Technical Education

$ 3,787,203

572,899

$ 4,360,102

$

4,360,1024,360,102

$ 4,360,102

Totals

$ 16,337,019230,483

6,009,137311,908

$ 22,888,547

$ 541,3472,664,938

115,67147,900

3,369,856

311,90819,206,78319,518,691

$ 22,888,547


JUNE 30, 2012

Page 68


Total revenues











Classroom Site

$9,004,916

9,004,916

4,873,344505,758

5,379,102

3,625,814

3,625,814

(2,544,711)

$ 1,081,103


$ 9,1071,375,050

1,384,157

912,286566,057192,847

1,671,190

(287,033)

(287,033)

2,265,906

$ 1,978,873

Structured English

Immersion

$510,438

510,438

499,98010,458

510,438

$


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2012

Page 70


$18,661

18,661

10,976

7,685

18,661

$

Title I Grants

$

4,488,7764,488,776

2,402,3231,431,997

108,4702,4774,073

357,3634,306,703

182,073

(182,073)(182,073)

$

Professional Development

and Technology Grants

$

1,161,5901,161,590

101,7211,007,171

2,598

6,2861,117,776

43,814

(43,814)(43,814)

$

Special Education

Grants

$

5,968,1005,968,100

4,775,175695,287

9,333

219,0145,698,809

269,291

(269,291)(269,291)

$


$

447,772447,772

223,67748,077

980

161,543434,277

13,495

(13,495)(13,495)

$

E-Rate

$ 4,495

443,514448,009

813,556

813,556

(365,547)

(365,547)

1,039,681

$ 674,134

Page 71

(Continued)


Total revenues












$

3,104,3853,104,385

2,210,325723,896

750519

4,594

85,6693,025,753

78,632

(25,763)(25,763)

52,869

(4,175)

$ 48,694


$228,280

228,280

159,61710,934

57,729228,280

$


$146,746

146,746

25,66797,000

24,079146,746

$



Page 72

Food Service

$ 6,836,250

5,235,14712,071,397

73,707

10,859,864357,877

11,291,448

779,949

(1,069,683)(1,069,683)

(289,734)

1,142,935

(2,062)

$ 851,139

Civic Center

$ 1,870,922

1,870,922

1,070,070

11,701502,824

521,4742,106,069

(235,147)

(235,147)

3,302,942

$ 3,067,795

Community School

$ 7,940,888

7,940,888

6,147,63713,451

321,010

229,9136,712,011

1,228,877

1,228,877

4,350,032

$ 5,578,909

Extracurricular Activities Fees

Tax Credit

$ 779,428

779,428

633,366

9,984

67,331710,681

68,747

68,747

961,709

$ 1,030,456

Gifts and Donations

$ 635,166

635,166

269,2543,987

68,150

165,631507,022

128,144

128,144

604,462

$ 732,606

Fingerprint

$ 6,877

6,877

6,877

6,877

$

Page 73

(Continued)


Total revenues











Textbooks

$ 33,221

33,221

11,69710,751

1,50923,957

9,264

9,264

105,616

$ 114,880


$ 1,209,019

1,209,019

177,267124,58817,185

621,328940,368

268,651

268,651

4,091,451

$ 4,360,102

Totals

$ 19,325,37311,284,09120,849,28451,458,748

24,504,3825,249,412

737,204901,960520,156

10,859,8642,876,746

45,649,724

5,809,024

(1,604,119)(1,604,119)

4,204,905

15,315,848

(2,062)

$ 19,518,691



Page 74

Total revenues






Other financing sources (uses):Transfers inTransfers out






Classroom Site

Budget

$8,000,000

8,000,000

5,544,492489,000

6,033,492

1,966,508

1,966,508

(2,500,000)

$ (533,492)

Actual

$9,004,916

9,004,916

4,873,344505,758

5,379,102

3,625,814

3,625,814

(2,544,711)

$ 1,081,103

Variance - Positive

(Negative)

$1,004,916

1,004,916

671,148(16,758)

654,390

1,659,306

1,659,306

(44,711)

$ 1,614,595

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS


Page 76


Budget

$

1,050,000600,000

1,650,000

(1,650,000)

(1,650,000)

$ (1,650,000)

Actual

$ 9,1071,375,050

1,384,157

912,286566,057192,847

1,671,190

(287,033)

(287,033)

2,265,906

$ 1,978,873

Variance - Positive

(Negative)

$ 9,1071,375,050

1,384,157

137,71433,943

(192,847)

(21,190)

1,362,967

1,362,967

2,265,906

$ 3,628,873

Structured English Immersion

Budget

$510,442

510,442

510,442

510,442

$

Actual

$510,438

510,438

499,98010,458

510,438

$

Variance - Positive

(Negative)

$(4)

(4)

10,462(10,458)

4

$

Page 77(Continued)

Total revenues













Budget

$33,309

33,309

23,309

10,000

33,309

$

Actual

$18,661

18,661

10,976

7,685

18,661

$

Variance - Positive

(Negative)

$(14,648)

(14,648)

12,333

2,315

14,648

$




Page 78

Title I Grants

Budget

$

6,130,0006,130,000

4,130,0002,000,000

6,130,000

$

Actual

$

4,488,7764,488,776

2,402,3231,431,997

108,4702,4774,073

357,3634,306,703

182,073

(182,073)(182,073)

$

Variance - Positive

(Negative)

$

(1,641,224)(1,641,224)

1,727,677568,003

(108,470)(2,477)(4,073)

(357,363)1,823,297

182,073

(182,073)(182,073)

$

Professional Development and Technology Grants

Budget

$

1,096,0001,096,000

1,096,000

1,096,000

$

Actual

$

1,161,5901,161,590

101,7211,007,171

2,598

6,2861,117,776

43,814

(43,814)(43,814)

$

Variance - Positive

(Negative)

$

65,59065,590

994,279(1,007,171)

(2,598)

(6,286)(21,776)

43,814

(43,814)(43,814)

$

Page 79(Continued)

Total revenues












Limited English & Immigrant Students

Budget

$

611,000611,000

611,000

611,000

$

Actual

$

$

Variance - Positive

(Negative)

$

(611,000)(611,000)

611,000

611,000

$




Page 80

Special Education Grants

Budget

$

6,261,0006,261,000

5,261,0001,000,000

6,261,000

$

Actual

$

5,968,1005,968,100

4,775,175695,287

9,333

219,0145,698,809

269,291

(269,291)(269,291)

$

Variance - Positive

(Negative)

$

(292,900)(292,900)

485,825304,713(9,333)

(219,014)562,191

269,291

(269,291)(269,291)

$


Budget

$

448,000448,000

250,000

198,000448,000

$

Actual

$

447,772447,772

223,67748,077

980

161,543434,277

13,495

(13,495)(13,495)

$

Variance - Positive

(Negative)

$

(228)(228)

26,323(48,077)

(980)

36,45713,723

13,495

(13,495)(13,495)

$

Page 81(Continued)

Total revenues












Medicaid Reimbursement

Budget

$

500,000500,000

500,000

500,000

$

Non-GAAP Actual

$ 9,313

567,614576,927

154,427105,74692,712

1,900,000

2,252,885

(1,675,958)

(1,675,958)

2,207,937

$ 531,979

Variance - Positive

(Negative)

$ 9,313

67,61476,927

(154,427)(105,746)

407,288(1,900,000)

(1,752,885)

(1,675,958)

(1,675,958)

2,207,937

$ 531,979




Page 82

E-Rate

Budget

$

200,000200,000

200,000

200,000

$

Actual

$ 4,495

443,514448,009

813,556

813,556

(365,547)

(365,547)

1,039,681

$ 674,134

Variance - Positive

(Negative)

$ 4,495

243,514248,009

(613,556)

(613,556)

(365,547)

(365,547)

1,039,681

$ 674,134


Budget

$

3,323,0003,323,000

2,323,0001,000,000

3,323,000

$

Actual

$

3,104,3853,104,385

2,210,325723,896

750519

4,594

85,6693,025,753

78,632

(25,763)(25,763)

52,869

(4,175)

$ 48,694

Variance - Positive

(Negative)

$

(218,615)(218,615)

112,675276,104

(750)(519)

(4,594)

(85,669)297,247

78,632

(25,763)(25,763)

52,869

(4,175)

$ 48,694

Page 83(Continued)

Total revenues













Budget

$249,000

249,000

189,000

60,000249,000

$

Actual

$228,280

228,280

159,61710,934

57,729228,280

$

Variance - Positive

(Negative)

$(20,720)

(20,720)

29,383(10,934)

2,27120,720

$




Page 84


Budget

$193,000

193,000

45,000103,000

45,000193,000

$

Actual

$146,746

146,746

25,66797,000

24,079146,746

$

Variance - Positive

(Negative)

$(46,254)

(46,254)

19,3336,000

20,92146,254

$

School Plant

Budget

$

$

Non-GAAP Actual

$ 421

421

421

421

68,326

$ 68,747

Variance - Positive

(Negative)

$ 421

421

421

421

68,326

$ 68,747

Page 85(Continued)

Total revenues












Food Service

Budget

$ 6,847,577

5,152,42312,000,000

10,900,000900,000

11,800,000

200,000

(1,000,000)(1,000,000)

(800,000)

800,000

$

Actual

$ 6,836,250

5,235,14712,071,397

73,707

10,859,864357,877

11,291,448

779,949

(1,069,683)(1,069,683)

(289,734)

1,142,935

(2,062)

$ 851,139

Variance - Positive

(Negative)

$ (11,327)

82,72471,397

(73,707)

40,136542,123508,552

579,949

(69,683)(69,683)

510,266

342,935

(2,062)

$ 851,139




Page 86

Civic Center

Budget

$ 1,800,000

1,800,000

1,100,000

200,000

200,0001,500,000

300,000

300,000

3,000,000

$ 3,300,000

Actual

$ 1,870,922

1,870,922

1,070,070

11,701502,824

521,4742,106,069

(235,147)

(235,147)

3,302,942

$ 3,067,795

Variance - Positive

(Negative)

$ 70,922

70,922

29,930

(11,701)(302,824)

(321,474)(606,069)

(535,147)

(535,147)

302,942

$ (232,205)

Community School

Budget

$ 8,000,000

8,000,000

6,000,000

6,000,000

2,000,000

2,000,000

4,400,000

$ 6,400,000

Actual

$ 7,940,888

7,940,888

6,147,63713,451

321,010

229,9136,712,011

1,228,877

1,228,877

4,350,032

$ 5,578,909

Variance - Positive

(Negative)

$ (59,112)

(59,112)

(147,637)(13,451)

(321,010)

(229,913)(712,011)

(771,123)

(771,123)

(49,968)

$ (821,091)

Page 87(Continued)

Total revenues












Auxiliary Operations

Budget

$ 1,200,000

1,200,000

500,000

700,000

1,200,000

800,000

$ 800,000

Non-GAAP Actual

$ 1,322,466

1,322,466

546,230

651,871252,757

1,450,858

(128,392)

(128,392)

932,870

$ 804,478

Variance - Positive

(Negative)

$ 122,466

122,466

(46,230)

48,129(252,757)(250,858)

(128,392)

(128,392)

132,870

$ 4,478




Page 88

Extracurricular Activities Fees Tax Credit

Budget

$ 800,000

800,000

800,000

100,000900,000

(100,000)

(100,000)

1,000,000

$ 900,000

Actual

$ 779,428

779,428

633,366

9,984

67,331710,681

68,747

68,747

961,709

$ 1,030,456

Variance - Positive

(Negative)

$ (20,572)

(20,572)

166,634

(9,984)

32,669189,319

168,747

168,747

(38,291)

$ 130,456

Gifts and Donations

Budget

$ 600,000

600,000

400,000

200,000600,000

600,000

$ 600,000

Actual

$ 635,166

635,166

269,2543,987

68,150

165,631507,022

128,144

128,144

604,462

$ 732,606

Variance - Positive

(Negative)

$ 35,166

35,166

130,746(3,987)

(68,150)

34,36992,978

128,144

128,144

4,462

$ 132,606

Page 89(Continued)

Total revenues












Fingerprint

Budget

$ 10,000

10,000

20,000

20,000

(10,000)

(10,000)

$ (10,000)

Actual

$ 6,877

6,877

6,877

6,877

$

Variance - Positive

(Negative)

$ (3,123)

(3,123)

13,123

13,123

10,000

10,000

$ 10,000




Page 90

Insurance Proceeds

Budget

$ 100,000

100,000

25,000

25,000

50,000100,000

100,000

$ 100,000

Non-GAAP Actual

$ 14,350

14,350

1,656

2,575

29,39133,622

(19,272)

(19,272)

99,784

$ 80,512

Variance - Positive

(Negative)

$ (85,650)

(85,650)

23,344

22,425

20,60966,378

(19,272)

(19,272)

(216)

$ (19,488)

Textbooks

Budget

$ 50,000

50,000

30,00020,000

10,00060,000

(10,000)

(10,000)

100,000

$ 90,000

Actual

$ 33,221

33,221

11,69710,751

1,50923,957

9,264

9,264

105,616

$ 114,880

Variance - Positive

(Negative)

$ (16,779)

(16,779)

18,3039,249

8,49136,043

19,264

19,264

5,616

$ 24,880

Page 91(Continued)

Total revenues












Litigation Recovery

Budget

$

50,000

50,000

(50,000)

(50,000)

$ (50,000)

Non-GAAP Actual

$ 747

747

747

747

69,269

$ 70,016

Variance - Positive

(Negative)

$ 747

747

50,000

50,000

50,747

50,747

69,269

$ 120,016




Page 92

Indirect Costs

Budget

$

200,000

800,000300,000100,000

1,400,000

(1,400,000)

1,510,000

1,510,000

110,000

1,000,000

$ 1,110,000

Non-GAAP Actual

$ 5,074

5,074

169,31394,758

614,151252,95598,39678,662

6561,308,891

(1,303,817)

1,604,119

1,604,119

300,302

1,046,143

$ 1,346,445

Variance - Positive

(Negative)

$ 5,074

5,074

30,687(94,758)185,849

47,0451,604

(78,662)(656)

91,109

96,183

94,119

94,119

190,302

46,143

$ 236,445


Budget

$

200,000200,000

800,0001,200,000

(1,200,000)

(1,200,000)

$ (1,200,000)

Actual

$ 1,209,019

1,209,019

177,267124,58817,185

621,328940,368

268,651

268,651

4,091,451

$ 4,360,102

Variance - Positive

(Negative)

$ 1,209,019

1,209,019

22,73375,412

(17,185)

178,672259,632

1,468,651

1,468,651

4,091,451

$ 5,560,102

Page 93(Continued)

Total revenues












Print Shop

Budget

$ 500,000

500,000

700,000

700,000

(200,000)

(200,000)

200,000

$

Non-GAAP Actual

$ 491,316

491,316

584,574

455585,029

(93,713)

(93,713)

125,558

$ 31,845

Variance - Positive

(Negative)

$ (8,684)

(8,684)

115,426

(455)114,971

106,287

106,287

(74,442)

$ 31,845




Page 94

Totals

Budget

$ 19,907,5778,985,751

23,721,42352,614,751

30,338,2435,412,0002,020,000

500,000335,000

11,600,0002,563,000

52,768,243

(153,492)

1,510,000(1,000,000)

510,000

356,508

9,500,000

$ 9,856,508

Non-GAAP Actual

$ 21,169,06011,284,09121,416,89853,870,049

25,376,0085,449,9162,028,6413,054,915

621,12711,590,3973,160,005

51,281,009

2,589,040

1,604,119(1,604,119)

2,589,040

19,865,735

(2,062)

$ 22,452,713

Variance - Positive

(Negative)

$ 1,261,4832,298,340

(2,304,525)1,255,298

4,962,235(37,916)(8,641)

(2,554,915)(286,127)

9,603(597,005)1,487,234

2,742,532

94,119(604,119)(510,000)

2,232,532

10,365,735

(2,062)

$ 12,596,205

Page 95

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

Total revenues

Revenues:Other localProperty taxesFederal aid, grants and reimbursements

Expenditures:Debt service -

Principal retirementInterest and fiscal charges

Total expenditures


Other financing sources (uses):Transfers in





Debt Service

Budget

$35,250,297

35,250,297

27,740,0007,187,147

34,927,147

323,150

323,150

36,499,961

$ 36,823,111

Actual

$ 201,48431,010,921

608,57631,820,981

27,740,0008,637,356

36,377,356

(4,556,375)

1,309,5491,309,549

(3,246,826)

5,822,677

$ 2,575,851

Variance - Positive

(Negative)

$ 201,484(4,239,376)

608,576(3,429,316)

(1,450,209)(1,450,209)

(4,879,525)

1,309,5491,309,549

(3,569,976)

(30,677,284)

$ (34,247,260)


BUDGET AND ACTUALALL DEBT SERVICE FUNDSYEAR ENDED JUNE 30, 2012

Page 98

CAPITAL PROJECTS FUNDS 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. Soft Capital Allocation - to account for transactions relating to the acquisition of short-term capital items required to meet academic adequacy standards. 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, improving school grounds, or purchasing pupil transportation vehicles. Condemnation - to account for proceeds from right-of-way settlements and sales by condemnation or threat of condemnation. Energy and Water Savings – to account for energy-related rebate monies to fund energy or water saving projects in school facilities. Building Renewal - to account for monies received 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. New School Facilities - to account for monies received from the School Facilities Board to be used for constructing new school facilities and purchasing land for new school sites.

ASSETSCash and investmentsAccounts receivable

Total assets

LIABILITIES AND FUND BALANCESFund balances:

RestrictedTotal fund balances


Adjacent Ways

$ 708,850

$ 708,850

$ 708,850708,850

$ 708,850

Condemnation

$ 211,270

$ 211,270

$ 211,270211,270

$ 211,270

Energy and Water Savings

$ 763,96583,549

$ 847,514

$ 847,514847,514

$ 847,514

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS

JUNE 30, 2012

Page 100

Building Renewal

$ 6,761

$ 6,761

$ 6,7616,761

$ 6,761

New School Facilities

$ 1,700,939

$ 1,700,939

$ 1,700,9391,700,939

$ 1,700,939

Totals

$ 3,391,78583,549

$ 3,475,334

$ 3,475,3343,475,334

$ 3,475,334

Page 101

Revenues:Other local

Total revenues

Expenditures:Capital outlay

Total expenditures




Adjacent Ways

$ 4,0124,012

11,38111,381

(7,369)

716,219

$ 708,850

Condemnation

$ 1,2441,244

1,244

210,026

$ 211,270


$ 327,316327,316

327,316

520,198

$ 847,514


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2012

Page 102

Building Renewal

$ 3838

38

6,723

$ 6,761


$ 9,5339,533

9,533

1,691,406

$ 1,700,939

Totals

$ 342,143342,143

11,38111,381

330,762

3,144,572

$ 3,475,334

Page 103

Total revenues





Bond issuance costsTotal expenditures


Other financing sources (uses):Transfers outIssuance of school improvement bondsPremium on sale of bonds





Unrestricted Capital Outlay

Budget

$ 30,0007,571,829

435,1848,037,013

8,000,000

1,027,476

8,000,000

17,027,476

(8,990,463)

(8,990,463)

8,000,000

$ (990,463)

Non-GAAP Actual

$ 282,4677,322,8201,563,1999,168,486

3,017,508

1,374,6003,724

3,551,295

7,947,127

1,221,359

1,221,359

7,021,678

$ 8,243,037

Variance - Positive

(Negative)

$ 252,467(249,009)1,128,0151,131,473

4,982,492

(347,124)(3,724)

4,448,705

9,080,349

10,211,822

10,211,822

(978,322)

$ 9,233,500


BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS


Page 104

Adjacent Ways

Budget

$ 10,000

10,000

700,000

700,000

(690,000)

(690,000)

690,000

$

Actual

$ 4,012

4,012

11,381

11,381

(7,369)

(7,369)

716,219

$ 708,850

Variance - Positive

(Negative)

$ (5,988)

(5,988)

688,619

688,619

682,631

682,631

26,219

$ 708,850

Soft Capital Allocation

Budget

$ 10,000

99,611109,611

600,000

1,207,599

1,807,599

(1,697,988)

(1,697,988)

3,000,000

$ 1,302,012

Non-GAAP Actual

$ 28,71123

2,992,3713,021,105

466,01661,38811,844

23387,871

581,161,321

1,788,731

1,232,374

1,232,374

8,077,679

$ 9,310,053

Variance - Positive

(Negative)

$ 18,71123

2,892,7602,911,494

133,984(61,388)(11,844)

(233)(87,871)

(58)46,278

18,868

2,930,362

2,930,362

5,077,679

$ 8,008,041

Page 105(Continued)

Total revenues












Bond Building

Budget

$

28,000,000

28,000,000

(28,000,000)

30,000,000

30,000,000

2,000,000

11,000,000

$ 13,000,000

Actual

$ 71,989

71,989

32,613,787

225,08732,838,874

(32,766,885)

(1,309,549)30,000,0001,462,647

30,153,098

(2,613,787)

10,726,057

$ 8,112,270

Variance - Positive

(Negative)

$ 71,989

71,989

(4,613,787)

(225,087)(4,838,874)

(4,766,885)

(1,309,549)

1,462,647153,098

(4,613,787)

(273,943)

$ (4,887,730)




Page 106

Condemnation

Budget

$ 3,000

3,000

50,000

50,000

(47,000)

(47,000)

200,000

$ 153,000

Actual

$ 1,244

1,244

1,244

1,244

210,026

$ 211,270

Variance - Positive

(Negative)

$ (1,756)

(1,756)

50,000

50,000

48,244

48,244

10,026

$ 58,270


Budget

$

$

Actual

$ 327,316

327,316

327,316

327,316

520,198

$ 847,514

Variance - Positive

(Negative)

$ 327,316

327,316

327,316

327,316

520,198

$ 847,514

Page 107(Continued)

Total revenues












Building Renewal

Budget

$ 1,000

1,000

1,000

1,000

$ 1,000

Actual

$ 38

38

38

38

6,723

$ 6,761

Variance - Positive

(Negative)

$ (962)

(962)

(962)

(962)

6,723

$ 5,761




Page 108


Budget

$ 10,000

10,000

10,000

10,000

1,700,000

$ 1,710,000

Actual

$ 9,533

9,533

9,533

9,533

1,691,406

$ 1,700,939

Variance - Positive

(Negative)

$ (467)

(467)

(467)

(467)

(8,594)

$ (9,061)

Totals

Budget

$ 64,0007,571,829

534,7958,170,624

8,600,000

1,027,476

37,957,599

47,585,075

(39,414,451)

30,000,000

30,000,000

(9,414,451)

24,590,000

$ 15,175,549

Non-GAAP Actual

$ 725,3107,322,8434,555,570

12,603,723

3,483,52461,388

1,386,4443,957

87,87158

37,337,784

225,08742,586,113

(29,982,390)

(1,309,549)30,000,0001,462,647

30,153,098

170,708

28,969,986

$ 29,140,694

Variance - Positive

(Negative)

$ 661,310(248,986)4,020,7754,433,099

5,116,476(61,388)

(358,968)(3,957)

(87,871)(58)

619,815

(225,087)4,998,962

9,432,061

(1,309,549)

1,462,647153,098

9,585,159

4,379,986

$ 13,965,145

Page 109

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 Insurance - to account for voluntary deductions temporarily held by the District as an agent.

ASSETSCash and investments

Total assets

LIABILITIESAccounts payableDeposits held for othersDue to student groups

Total liabilities

Student Activities

$ 1,524,534$ 1,524,534

$ 122,579

1,401,955$ 1,524,534

Employee Insurance

$ 2,404,957$ 2,404,957

$2,404,957

$ 2,404,957

Totals

$ 3,929,491$ 3,929,491

$ 122,5792,404,9571,401,955

$ 3,929,491

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDSJUNE 30, 2012

Page 112

Beginning EndingBalance Additions Deductions Balance

STUDENT ACTIVITIES

AssetsCash and investments $ 1,532,812 $ 4,052,786 $ 4,061,064 $ 1,524,534

Total assets $ 1,532,812 $ 4,052,786 $ 4,061,064 $ 1,524,534

LiabilitiesAccounts payable $ 80,715 $ 122,579 $ 80,715 $ 122,579Due to student groups 1,452,097 3,930,207 3,980,349 1,401,955

Total liabilities $ 1,532,812 $ 4,052,786 $ 4,061,064 $ 1,524,534


Total assets $ 3,140,815 $ 2,110,433 $ 2,846,291 $ 2,404,957

LiabilitiesDeposits held for others $ 3,140,815 $ 2,110,433 $ 2,846,291 $ 2,404,957


TOTAL AGENCY FUNDS


Total assets $ 4,673,627 $ 6,163,219 $ 6,907,355 $ 3,929,491

LiabilitiesAccounts payable $ 80,715 $ 122,579 $ 80,715 $ 122,579Deposits held for others 3,140,815 2,110,433 2,846,291 2,404,957Due to student groups 1,452,097 3,930,207 3,980,349 1,401,955


EMPLOYEE INSURANCE

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES - ALL AGENCY FUNDS


Page 113

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.

2012 2011 2010 2009 2008Net Assets:

Invested in capital assets, net of related debt 223,698,222$ 220,595,636$ 215,126,128$ 208,610,240$ 204,233,927$ Restricted 26,414,311 35,439,404 32,322,122 22,483,610 14,422,790 Unrestricted 51,834,739 43,041,363 29,468,943 24,148,851 31,458,305

Total net assets 301,947,272$ 299,076,403$ 276,917,193$ 255,242,701$ 250,115,022$

2007 2006 2005 2004 2003Net Assets:

Invested in capital assets, net of related debt 215,440,922$ 191,165,492$ 177,923,423$ 163,637,569$ 148,177,154$ Restricted 12,257,971 8,932,775 13,789,677 9,383,537 8,616,020 Unrestricted 42,917,651 52,405,854 37,288,646 28,275,645 23,610,295

Total net assets 270,616,544$ 252,504,121$ 229,001,746$ 201,296,751$ 180,403,469$

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97NET ASSETS BY COMPONENT

LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

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

Page 116

2012 2011 2010 2009 2008

Instruction 160,640,976$ 161,424,925$ 167,085,314$ 172,167,103$ 176,085,899$ Support services - students and staff 24,867,191 26,486,608 26,034,153 27,579,486 26,840,026 Support services - administration 23,793,638 24,492,675 24,304,006 23,837,720 25,715,735 Operation and maintenance of plant services 27,503,685 27,549,465 27,928,403 28,966,886 27,057,485 Student transportation services 13,611,292 12,304,827 12,043,511 15,589,098 13,502,644 Operation of non-instructional services 14,415,542 13,398,450 13,591,932 13,511,783 13,210,989 Interest on long-term debt 7,585,796 6,881,606 8,007,063 8,780,357 10,061,335

Total expenses 272,418,120 272,538,556 278,994,382 290,432,433 292,474,113

Program RevenuesCharges for services:

Instruction 11,014,181 11,800,010 10,519,876 10,620,744 6,725,220Operation of non-instructional services 7,551,375 7,460,759 7,846,963 8,644,652 8,891,330Other activities 1,571,435 1,243,308 638,877 741,657 2,015,503

Operating grants and contributions 22,853,434 30,585,147 24,314,900 20,430,181 16,773,294 Capital grants and contributions 1,238,999 2,116,446 3,206,256 1,269,495 299,597

Total program revenues 44,229,424 53,205,670 46,526,872 41,706,729 34,704,944

Net (Expense)/Revenue (228,188,696)$ (219,332,886)$ (232,467,510)$ (248,725,704)$ (257,769,169)$

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Source:

Page 117

2007 2006 2005 2004 2003Expenses

Instruction 155,289,406$ 144,029,753$ 138,145,091$ 140,388,423$ 125,305,149$ Support services - students and staff 22,849,476 19,270,056 16,395,336 15,857,047 13,119,434 Support services - administration 23,163,233 23,180,344 18,225,664 16,629,937 17,649,170 Operation and maintenance of plant services 24,756,168 22,474,624 19,617,328 18,369,715 16,987,418 Student transportation services 14,133,549 11,475,103 10,782,258 8,793,176 9,029,188 Operation of non-instructional services 11,181,434 11,827,307 10,148,154 8,928,156 8,475,156 Interest on long-term debt 8,914,010 10,404,623 11,644,356 12,370,882 10,705,826

Total expenses 260,287,276 242,661,810 224,958,187 221,337,336 201,271,341

Program RevenuesCharges for services:

Instruction 8,439,375 6,436,752 4,478,574 5,913,279 4,389,887Operation of non-instructional services 7,793,324 9,224,561 7,219,287 6,822,164 6,180,718Other activities 863,260 769,314 1,766,402 1,523,650 886,365

Operating grants and contributions 13,931,511 13,381,514 13,285,970 11,122,231 8,967,172 Capital grants and contributions 5,450,969 1,624,701 1,507,331 4,330,571 997,603

Total program revenues 36,478,439 31,436,842 28,257,564 29,711,895 21,421,745


(Concluded)

(Accrual basis of accounting)LAST TEN FISCAL YEARS


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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Page 118

2012 2011 2010 2009 2008


General Revenues: Taxes:

Property taxes, levied for general purposes 87,246,008 95,638,136 88,785,073 85,301,013 79,019,574 Property taxes, levied for debt service 30,488,152 35,703,934 33,244,568 35,306,330 30,536,556Property taxes, levied for capital outlay 7,186,851 819,261 13,614,215 15,015,628 14,413,436

Investment income 606,205 1,045,422 1,487,977 2,043,280 3,481,824Unrestricted county aid 8,666,582 8,456,113 7,940,032Unrestricted state aid 96,298,153 98,772,657 95,897,842 116,187,132 134,033,047Unrestricted federal aid 567,614 1,056,573 13,172,295

Total general revenues 231,059,565 241,492,096 254,142,002 253,853,383 261,484,437

Changes in Net Assets 2,870,869$ 22,159,210$ 21,674,492$ 5,127,679$ 3,715,268$


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)


DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS

LAST TEN FISCAL YEARS(Accrual basis of accounting)

Page 119

2007 2006 2005 2004 2003


General Revenues: Taxes:

Property taxes, levied for general purposes 71,166,774 66,631,587 62,477,711 53,781,792 50,081,777 Property taxes, levied for debt service 27,258,953 37,433,774 34,579,718 28,852,270 27,489,311Property taxes, levied for capital outlay 10,556,634 3,820,128 1,757,193 4,877,986 4,186,791

Investment income 3,931,902 3,669,362 2,070,422 1,014,377 2,884,713Unrestricted county aid 88,349 7,453,373 6,855,966 6,699,034 6,198,326Unrestricted state aid 128,918,648 115,719,119 116,664,608 117,293,264 123,428,960

Total general revenues 241,921,260 234,727,343 224,405,618 212,518,723 214,269,878

Changes in Net Assets 18,112,423$ 23,502,375$ 27,704,995$ 20,893,282$ 34,420,282$

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 ASSETSLAST TEN FISCAL YEARS


(Accrual basis of accounting)

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


Source: Notes:

Page 120

2012 2011 2010 2009 2008General Fund:

Nonspendable 860,175$ 629,301$ Restricted 8,243,037 7,021,678Assigned 804,478 932,870Unassigned 19,962,299 21,545,212Reserved 524,713$ 691,815$ 658,516$ Unreserved (7,827,232) (10,532,266) 1,547,577

Total General Fund 29,869,989$ 30,129,061$ (7,302,519)$ (9,840,451)$ 2,206,093$

All Other Governmental Funds:Nonspendable 311,908$ 313,970$ Restricted 33,370,238 37,244,070Unassigned (2,548,886)Reserved 343,506$ 270,369$ 211,591$ Unreserved, reported in:

Special revenue funds 15,000,983 14,367,469 17,338,669 Capital projects funds 46,183,682 34,734,383 20,896,671 Debt service fund 2,276,129 1,609,325 1,640,109

Total all other governmental funds 33,682,146$ 35,009,154$ 63,804,300$ 50,981,546$ 40,087,040$

(Continued)

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97FUND BALANCES - GOVERNMENTAL FUNDS


LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 121

2007 2006 2005 2004 2003General Fund:

Reserved 642,240$ 604,762$ 539,546$ 1,561,219$ 571,817$ Unreserved 2,422,624 1,309,502 3,564,128 (1,709,775) (1,166,293)

Total General Fund 3,064,864$ 1,914,264$ 4,103,674$ (148,556)$ (594,476)$

All Other Governmental Funds:Reserved 122,905$ 118,898$ 135,133$ 130,375$ 91,727$ Unreserved, reported in:

Special revenue funds 14,903,356 11,253,104 7,984,380 6,964,170 3,853,768 Capital projects funds 19,532,116 16,213,708 30,796,632 22,800,602 33,529,532 Debt service fund 1,729,905 2,179,448 2,754,297 2,401,456 2,731,902

Total all other governmental funds 36,288,282$ 29,765,158$ 41,670,442$ 32,296,603$ 40,206,929$

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.


DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97FUND BALANCES - GOVERNMENTAL FUNDS



Page 122

2012 2011 2010 2009 2008Federal sources:

Federal grants 16,690,909$ 18,428,325$ 20,220,884$ 13,458,198$ 11,649,833$ State Fiscal Stabilization (ARRA) 1,056,573 13,172,295 Education Jobs (ARRA) 99,418 6,477,582 National School Lunch Program 5,235,147 5,068,639 4,890,224 4,040,990 3,628,892 Total federal sources 22,025,474 31,031,119 38,283,403 17,499,188 15,278,725

State sources:State equalization assistance 85,918,187 89,328,887 88,055,360 102,718,922 115,100,791 State grants 375,026 685,277 1,220,401 798,953 597,780 School Facilities Board 1,101,816 Other revenues 10,909,065 9,443,974 10,213,429 13,595,615 18,293,639 Total state sources 97,202,278 99,458,138 99,489,190 117,113,490 135,094,026

Local sources:Property taxes 125,070,542 132,136,342 127,185,515 131,631,558 122,930,631 County aid 8,666,582 8,456,113 7,940,032 Food service sales 6,835,326 6,733,847 7,243,063 7,882,868 7,839,167 Investment income 606,205 1,036,340 1,487,977 2,043,280 3,481,824 Other revenues 15,032,113 15,811,796 13,210,541 13,010,630 11,231,990 Total local sources 156,210,768 164,174,438 157,067,128 154,568,336 145,483,612 Total revenues 275,438,520$ 294,663,695$ 294,839,721$ 289,181,014$ 295,856,363$

(Continued)


(Modified accrual basis of accounting)

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97GOVERNMENTAL FUNDS REVENUES


Page 123

2007 2006 2005 2004 2003Federal sources:

Federal grants 10,065,114$ 10,383,336$ 10,485,275$ 8,727,810$ 6,489,063$ State Fiscal Stabilization (ARRA)Education Jobs (ARRA)National School Lunch Program 3,038,164 2,996,345 2,684,201 2,475,825 2,321,905 Total federal sources 13,103,278 13,379,681 13,169,476 11,203,635 8,810,968

State sources:State equalization assistance 110,056,633 93,732,312 87,468,321 82,441,063 77,106,557 State grants 645,451 506,599 665,054 750,064 596,267 School Facilities Board 2,241,216 8,939,081 18,956,367 25,658,436 38,435,353 Other revenues 16,399,257 13,780,745 10,772,206 8,463,040 7,843,840 Total state sources 129,342,557 116,958,737 117,861,948 117,312,603 123,982,017

Local sources:Property taxes 110,667,001 106,605,849 98,404,362 87,722,965 80,762,326 County aid 88,349 7,453,373 6,855,966 6,699,034 6,198,326 Food service sales 7,428,699 7,295,690 6,728,334 6,094,557 5,566,758 Investment income 3,224,269 3,177,402 1,509,390 1,020,476 1,519,792 Other revenues 9,667,260 10,282,568 7,689,204 11,801,268 6,423,682 Total local sources 131,075,578 134,814,882 121,187,256 113,338,300 100,470,884 Total revenues 273,521,413$ 265,153,300$ 252,218,680$ 241,854,538$ 233,263,869$

(Concluded)

Note:Source:

The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09. The source of this information is the District's financial records.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97GOVERNMENTAL FUNDS REVENUES


Page 124

2012 2011 2010 2009 2008


Instruction 138,290,017$ 138,665,342$ 141,027,461$ 147,180,127$ 146,123,420$ Support services - students and staff 22,354,068 24,277,965 23,632,814 24,974,051 23,835,377 Support services - administration 21,355,929 22,306,421 20,622,279 20,924,916 20,136,167 Operation and maintenance of plant services 26,492,209 26,813,149 26,672,040 27,122,364 25,308,774 Student transportation services 11,136,547 10,481,225 9,677,932 10,269,913 10,363,056 Operation of non-instructional services 11,801,057 11,535,072 11,730,146 11,970,961 11,957,049

Capital outlay 40,497,789 48,236,882 42,277,881 27,901,584 42,781,473 Debt service -

Judgments against the district 541,170 Interest, premium and fiscal charges 8,823,356 8,117,498 8,131,741 8,698,465 10,255,444 Principal retirement 27,740,000 26,950,000 25,810,000 27,832,232 23,469,227 Bond issuance costs 225,087 276,714 310,746 186,706 213,690

Total expenditures 308,716,059$ 317,660,268$ 309,893,040$ 307,602,489$ 314,443,677$

Expenditures for capitalized assets 21,964,845$ 29,914,111$ 19,166,748$ 3,829,664$ 17,086,265$

Debt service as a percentage ofnoncapital expenditures 13% 12% 12% 12% 11%

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

(Continued)

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO



Page 125

2007 2006 2005 2004 2003


Instruction 131,815,418$ 124,645,888$ 114,883,240$ 103,689,194$ 95,423,250$ Support services - students and staff 21,020,453 17,786,310 14,502,060 14,340,454 12,880,797 Support services - administration 20,003,984 18,589,710 16,163,838 15,542,507 15,507,207 Operation and maintenance of plant services 24,005,346 21,868,291 19,075,604 17,890,275 16,380,206 Student transportation services 10,298,592 10,048,763 8,948,523 7,903,086 6,856,645 Operation of non-instructional services 10,640,291 11,248,246 9,685,989 8,397,852 7,978,735

Capital outlay 44,026,996 34,832,060 43,195,415 80,777,653 73,372,872 Debt service -

Judgments against the districtInterest, premium and fiscal charges 9,235,901 10,478,913 14,167,516 15,921,159 10,411,535 Principal retirement 22,094,250 29,798,794 22,161,946 15,383,297 18,105,000 Bond issuance costs 287,037 379,634 817,670 634,929

Total expenditures 293,428,268$ 279,296,975$ 263,163,765$ 280,663,147$ 257,551,176$

Expenditures for capitalized assets 27,763,237$ 16,481,235$ 24,597,436$ 46,891,940$ 48,190,569$

Debt service as a percentage ofnoncapital expenditures 12% 15% 15% 13% 14%

Source:

(Concluded)

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO




Page 126

2012 2011 2010 2009 2008

Excess (deficiency) of revenues over expenditures (33,277,539)$ (22,996,573)$ (15,053,319)$ (18,421,475)$ (18,587,314)$

Other financing sources (uses):Issuance of school improvement bonds 30,000,000 30,000,000 30,000,000 17,000,000 21,000,000 Refunding bonds issued 19,600,000 Premium on sale of bonds 1,462,647 3,175,681 507,970 177,360 409,157 Transfers in 2,913,668 2,398,360 1,952,676 876,714 1,683,048 Transfers out (2,913,668) (2,398,360) (1,952,676) (876,714) (1,683,048) Payment to refunded bond escrow agent (21,217,726)

Total other financing sources (uses) 31,462,647 31,557,955 30,507,970 17,177,360 21,409,157

Changes in fund balances (1,814,892)$ 8,561,382$ 15,454,651$ (1,244,115)$ 2,821,843$

2007 2006 2005 2004 2003

Excess (deficiency) of revenues over expenditures (19,906,855)$ (14,143,675)$ (10,945,085)$ (38,808,609)$ (24,287,307)$

Other financing sources (uses):General obligation bonds issued 27,000,000 25,000,000 25,500,000 29,777,918 Refunding bonds issued 13,830,000 46,645,000 18,150,000 Premium on sale of bonds 539,094 864,669 4,668,018 2,180,012 Capital lease agreements 2,631,865 1,362,881 Transfers in 984,180 1,323,905 918,876 959,048 791,485 Transfers out (984,180) (1,323,905) (918,876) (959,048) (791,485) Payment to refunded bond escrow agent (14,106,600) (50,495,348) (19,473,001)

Total other financing sources (uses) 27,539,094 - 25,588,069 28,949,535 31,997,810

Changes in fund balances 7,632,239$ (14,143,675)$ 14,642,984$ (9,859,074)$ 7,710,503$


DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS



(Modified accrual basis of accounting)

Page 127

FiscalYear Less: Total Taxable Total Estimated

Ended Residential Commercial Personal Tax Exempt Assessed Direct Actual June 30 Property Property Property Real Property Valuation Rate Value

2012 1,360,360,481$ 1,130,769,260$ 177,093,503$ 380,583,719$ 2,287,639,525$ 6.25 20,759,174,244$ 11.0 %2011 1,674,894,420 1,659,540,510 167,655,183 540,248,214 2,961,841,899 5.34 26,582,109,322 11.12010 2,117,118,411 1,796,857,517 173,054,169 540,672,385 3,546,357,712 4.49 31,570,497,605 11.22009 3,713,048,948 4.92 30,200,939,283 12.3 2008 3,224,835,278 5.31 28,325,915,072 11.4 2007 2,236,216,047 6.04 17,133,121,251 13.1 2006 1,958,260,726 6.59 16,229,252,257 12.1 2005 1,661,861,199 6.97 13,764,030,906 12.1 2004 1,434,074,301 7.12 11,922,005,373 12.02003 1,250,102,908 7.59 9,961,367,002 12.5

Source:Note: Total taxable assessed valuation is displayed by major component beginning with fiscal year ended June 30, 2010.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


Ratio of

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

Net Assessed to EstimatedActual Value

Real Property

Page 128

Fiscal Year Flood Community Central City City City

Ended State Control College Arizona of of of June 30 Equalization County District District Water Phoenix Glendale Peoria Primary Secondary Total

2012 0.43 3.36 0.18 1.21 0.10 1.82 1.60 1.44 3.86 2.39 6.25 2011 0.36 1.05 0.15 0.97 0.10 1.82 1.60 1.44 3.31 2.03 5.34 2010 0.33 0.99 0.14 0.88 0.10 1.82 1.60 1.44 2.86 1.63 4.49 2009 1.03 0.14 0.78 0.10 1.82 1.60 1.44 3.33 1.59 4.92 2008 1.10 0.15 0.98 0.10 1.82 1.62 1.49 3.63 1.68 5.31 2007 1.18 0.20 1.06 0.12 1.82 1.72 1.48 3.78 2.26 6.04 2006 1.20 0.21 1.03 0.12 1.82 1.72 1.59 3.97 2.62 6.59 2005 1.21 0.21 1.04 0.12 1.82 1.72 1.59 4.35 2.62 6.97 2004 1.28 0.21 1.08 0.12 1.82 1.72 1.59 4.29 2.83 7.12 2003 1.29 0.21 1.11 0.13 1.82 1.72 1.59 4.79 2.80 7.59

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97DIRECT 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

Page 129

Secondary Assessed

Valuation

Secondary Assessed

Valuation

Arizona Public Service 55,617,026$ 2.43 % 34,288,606$ 2.74 %Safeway 15,105,950 0.66 9,133,393 0.73 VHS Of Arrowhead Inc. 13,876,303 0.61New River Associates 11,935,697 0.52 10,821,859 0.87 Pr 2700 Yorkshire LLC 11,040,145 0.48United Services Auto Assn. 10,445,881 0.46 6,534,939 0.52 Southwest Gas 10,153,446 0.44 5,669,682 0.45 Norterra West LLC 7,825,961 0.34Honeywell 7,526,306 0.33 20,231,258 1.62 CenturyLink 7,205,432 0.31Qwest 11,269,405 0.90 American Express 9,518,995 0.76 Anthem Arizona LLC 9,153,839 0.73 Cox Communications 7,880,360 0.63 Phoenix Newspapers 6,302,741 0.50 First American Title Ins. 6,133,674 0.49 TGSC Building 6,134,750 0.49 RREEF American REIT 5,731,608 0.46 IPC Building 4,696,145 0.38 West Gary 4,663,593 0.37

Total 150,732,147$ 6.59 % 158,164,847$ 12.65 %

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97PRINCIPAL 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

2003

Taxpayer

2012

Page 130

FiscalYear Taxes Levied Collections in

Ended for the Subsequent June 30 Fiscal Year Amount Fiscal Years Amount

2012 142,342,419$ 133,721,939$ 93.94 % $ 133,721,939$ 93.94 %2011 153,602,010 145,849,757 94.95 7,606,424 153,456,181 99.912010 148,313,988 133,332,146 89.90 8,056,365 141,388,511 95.332009 154,805,131 143,062,107 92.41 9,566,415 152,628,522 98.592008 143,862,640 139,022,685 96.64 4,813,752 143,836,437 99.982007 128,280,534 124,272,695 96.88 3,991,177 128,263,872 99.992006 109,462,955 104,554,499 95.52 4,890,611 109,445,110 99.982005 98,921,075 94,630,990 95.66 4,270,050 98,901,040 99.982004 98,177,340 94,561,122 96.32 3,599,740 98,160,862 99.982003 90,506,064 87,036,430 96.17 3,429,007 90,465,437 99.96

Source:Notes: 1)

2)

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

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

of LevyPercentage

of LevyPercentage

Fiscal Year of the LevyCollected within the

of the Current Fiscal Year

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97PROPERTY TAX LEVIES AND COLLECTIONS


Collected to the End

Page 131

Fiscal Less:Year General Amounts Percentage of Percentage of Percentage of

Ended Obligation Restricted for Estimated Per Capital Estimated Per Personal June 30 Bonds Principal Total Actual Value Capita Leases Total Actual Value Capita Income

2012 214,365,000$ 2,575,851$ 211,789,149$ 1.02 % 893$ 211,789,149$ 1.02 % 893 1.48 %2011 184,365,000 5,822,677 178,542,323 0.67 771 178,542,323 0.67 771 1.262010 207,125,000 25,810,000 181,315,000 0.57 963 181,315,000 0.57 963 1.232009 204,630,000 27,505,000 177,125,000 0.59 952 177,125,000 0.59 952 1.272008 210,500,000 22,870,000 187,630,000 0.66 979 327,232 187,957,232 0.66 981 1.422007 210,660,000 21,160,000 189,500,000 1.11 1,003 926,459 190,426,459 1.11 1,008 1.582006 213,195,000 29,535,000 183,660,000 1.13 1,040 1,860,709 185,520,709 1.14 1,049 1.672005 236,383,368 23,188,368 213,195,000 1.55 1,212 2,124,503 215,319,503 1.56 1,223 2.112004 228,906,602 17,523,234 211,383,368 1.77 1,237 3,006,449 214,389,817 1.80 1,254 2.212003 221,846,182 18,439,580 203,406,602 2.04 1,268 1,362,881 204,769,483 2.06 1,275 2.19


General Obligation Bonds

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97OUTSTANDING DEBT BY TYPE


Total Outstanding Debt

Page 132

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Maricopa County Community College District 671,250$ 5.90 % 39,604$ City of Phoenix 1,544,488,697 10.35 159,854,580 City of Glendale 201,680,000 35.45 71,495,560 City of Peoria 156,245,000 11.85 18,515,033 Town of Cave Creek 1,100,000 6.68 73,480 Subtotal, Overlapping Debt 249,978,256

Direct:Deer Valley Unified School District No. 97 211,789,149

Total Direct and Overlapping Debt 461,767,405$

Source:

Note:

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2012

Governmental Unit

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

Page 133

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2012: Total Legal Debt Margin Calculation for Fiscal Year 2012:Secondary assessed valuation 2,287,639,525$ Secondary assessed valuation 2,287,639,525$

Debt limit (10% of assessed value) 228,763,953 Debt limit (30% of assessed value) 686,291,858 Debt applicable to limit 211,789,149 Debt applicable to limit 211,789,149 Legal debt margin 16,974,804$ Legal debt margin 474,502,709$

2012 2011 2010 2009 2008

Total Debt limit 686,291,858$ 888,552,570$ 1,063,907,314$ 1,113,914,684$ 967,450,583$

Total net debt applicable to limit 211,789,149 178,542,323 181,315,000 177,125,000 187,630,000

Legal debt margin 474,502,709$ 710,010,247$ 882,592,314$ 936,789,684$ 779,820,583$

Total net debt applicable to the limit as a percentage of debt limit 31% 20% 17% 16% 19%

2007 2006 2005 2004 2003

Debt limit 670,864,814$ 587,478,218$ 498,558,360$ 430,222,290$ 375,030,872$

Total net debt applicable to limit 189,500,000 183,660,000 213,195,000 211,383,368 203,406,602

Legal debt margin 481,364,814$ 403,818,218$ 285,363,360$ 218,838,922$ 171,624,270$

Total net debt applicable to the limit as a percentage of debt limit 28% 31% 43% 49% 54%

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 obligation bondsand the statutory debt limit on Class B bonds. The calculations of the debt margins are presented in detail for the current fiscal year only.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97LEGAL DEBT MARGIN INFORMATION




Page 134

Personal EstimatedIncome Per Capita District

Year Population (thousands) Income Population

2011 3,843,370 $ 142,864,275 $ 37,352 8.4 % 240,000 2010 3,817,117 142,091,618 35,319 8.5 239,044 2009 4,023,331 147,122,078 37,168 8.3 215,000 2008 3,987,942 139,665,253 36,135 4.9 215,000 2007 3,907,492 132,423,154 35,046 3.2 215,000 2006 3,792,675 120,716,738 33,178 3.5 210,000 2005 3,648,545 111,103,576 31,757 4.1 205,000 2004 3,524,200 102,277,852 30,160 4.6 195,000 2003 3,598,440 96,998,974 29,020 5.0 185,000 2002 3,296,300 93,544,549 29,117 4.1 175,000

Sources:

Rate

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 is University of Arizona, Eller College ofManagement, Economic and Business Research Center.

Unemployment

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

Page 135

Percentage Percentageof Total of Total

Employees Employment Employees Employment

State of Arizona 49,800 3.98 % 49,973 3.21 %Wal-Mart Stores Inc. 30,634 2.45 17,500 1.12 Banner Health Systems 24,825 1.98 14,000 0.90 City of Phoenix 15,100 1.21 13,298 0.85 Wells Fargo Company 12,792 1.02 8,900 0.57 Apollo Group Inc. 13,308 1.06Maricopa County 11,185 0.89 15,523 1.00 Arizona State University 11,500 0.92 8,852 0.57 Bank of America 8,017 0.64Raytheon Co.Intel Corp. 11,000 0.88 10,000 0.64 JP Morgan Chase & Co 10,300 0.82US Airways 9,093 0.73 10,270 0.66 Mesa Public Schools 7,815 0.50 Catholic Healthcare West 8,376 0.67American Express Co. 7,550 0.60 11,000 0.71 Freeport McMoRan Copper & Gold Inc.Scottsdale Healthcare 10,600 0.85Arizona Public Service 7,603 0.61Luke Air Force Base 7,388 0.59Honeywell Internatioanl Inc. 16,000 1.03 Motorola Inc. 15,100 0.97 Fry's Food and Drug Stores 13,500 0.87 U.S. Postal Service - Arizona District 10,012 0.64 Banc One Corp. 6,500 0.52 9,100 0.58 Safeway Inc. 13,300 1.06 8,995 0.58 Qwest Communications Inc. 8,302 0.53 Target Corp. 8,068 0.52 Bashas' Inc. 7,350 0.47

Total 268,871 21.48 % 263,558 16.92 %

Total employment 1,251,700 1,557,100

Source: The source of this information is The Business Journal Book of Lists and the Arizona Workforce Informer.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2012 2003

Page 136

2012 2011 2010 2009 2008

SupervisorySuperintendent 42 41 39 39 37 Principals 38 38 38 38 37 Assistant principals 28 28 28 31 32

Total supervisory 108 107 105 108 106 Instruction

Teachers 1,802 1,840 1,912 1,967 1,932 Aides 267 276 275 282 266

Total instruction 2,069 2,116 2,187 2,249 2,198 Student Services

Counselors 40 40 40 40 40 Librarians 6 5 5 37 36 Nurses 42 37 37 37 36 Psychologists 29 30 30 24 27 Other Student Services 45 49 47 44 39

Total student services 162 161 159 182 178 Support and Administration

Office/Clerical 282 282 284 263 268 Custodial/Maintenance 272 273 273 277 274 Food Services 155 160 163 164 164 Transportation 243 243 243 249 261 Other Support Services 199 202 221 238 245

Total support and administration 1,151 1,160 1,184 1,191 1,212

Total 3,490 3,544 3,635 3,730 3,694

(Continued)

Full-time Equivalent Employees as of June 30


DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

Page 137

2007 2006 2005 2004 2003

SupervisorySuperintendent 37 42 37 38 40 Principals 37 36 35 33 29 Assistant principals 31 29 24 21 25

Total supervisory 105 107 96 92 94 Instruction

Teachers 1,871 1,824 1,728 1,612 1,567 Aides 250 248 235 211 193

Total instruction 2,121 2,072 1,963 1,823 1,760 Student Services

Counselors 40 40 37 42 36 Librarians 36 35 34 32 30 Nurses 36 35 33 32 30 Psychologists 27 26 23 24 23 Other Student Services 31 25 19 9 9

Total student services 170 161 146 139 128 Support and Administration

Clerical workers 250 244 237 218 232 Maintenance workers 270 256 243 223 215 Bus Drivers 167 159 149 148 146 Food Service workers 261 253 223 223 207 Other classified 219 207 199 179 182

Total support and administration 1,167 1,119 1,051 991 982

Total 3,563 3,459 3,256 3,045 2,964

Source: (Concluded)The source of this information is District personnel records.

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE


Page 138

FiscalYear Average Cost Cost Pupil-

Ended Daily Operating per Percentage per Percentage Teaching TeacherJune 30 Membership Expenditures Pupil Change Expenses Pupil Change Staff Ratio

2012 33,226 231,429,827$ 6,965$ 0.31 % 272,418,120$ 8,199$ 1.41 % 2,069 16.1 29.4 %2011 33,711 234,079,174 6,944 2.34 272,538,556 8,085 (0.33) 2,116 15.9 21.8 2010 34,396 233,362,672 6,785 (1.91) 278,994,382 8,111 (2.11) 1,912 18.0 19.8 2009 35,051 242,442,332 6,917 1.18 290,432,433 8,286 (1.48) 1,967 17.8 18.5 2008 34,776 237,723,843 6,836 7.70 292,474,113 8,410 10.87 1,932 18.0 22.5 2007 34,312 217,784,084 6,347 3.63 260,287,276 7,586 4.21 1,871 18.3 19.3 2006 33,336 204,187,208 6,125 6.67 242,661,810 7,279 3.27 1,824 18.3 19.5 2005 31,915 183,259,254 5,742 3.86 224,958,187 7,049 (3.37) 1,728 18.5 19.7 2004 30,344 167,763,368 5,529 2.95 221,337,336 7,294 4.62 1,612 18.8 18.7 2003 28,868 155,026,840 5,370 (0.94) 201,271,341 6,972 7.47 1,567 18.4 17.3

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97OPERATING STATISTICSLAST TEN FISCAL YEARS

Percentage of

StudentsFree/Reduced

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

Page 139

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

SchoolsElementary

Buildings 231 231 231 231 219 212 204 214 214 212Square feet 2,504,019 2,504,019 2,501,900 2,501,900 2,428,187 2,366,664 2,279,324 224,260 2,176,648 2,107,523Capacity 27,034 27,034 27,034 27,034 26,134 26,134 25,234 24,194 23,157 21,198Enrollment 21,337 21,800 22,784 23,141 23,108 22,639 22,216 21,372 20,281 19,133

MiddleBuildings 30 30 30 30 30 30 30 32 32 32Square feet 283,525 283,525 283,525 283,525 283,525 283,525 283,525 288,925 288,925 288,925Capacity 2,889 2,889 2,889 2,889 2,889 2,889 2,889 2,889 2,889 2,889Enrollment 2,628 2,652 2,652 2,809 2,902 2,951 2,957 3,062 3,049 3,134

HighBuildings 82 82 87 87 87 87 87 87 87 72Square feet 1,538,109 1,582,671 1,552,406 1,552,406 1,552,406 1,552,406 1,552,406 1,552,406 1,552,406 1,161,466Capacity 12,814 12,814 12,814 12,814 12,814 12,814 12,814 12,814 10,155 10,155Enrollment 10,548 10,487 10,423 10,358 10,151 9,903 9,592 8,879 8,304 7,804

AdministrativeBuildings 16 16 15 15 15 15 15 15 15 13Square feet 228,880 228,880 213,480 213,480 213,480 203,359 203,359 203,359 203,359 113,764

TransportationGarages 2 2 1 1 1 1 1 1 1 1Buses 250 257 259 263 255 245 228 195 181 164

AthleticsFootball fields 10 10 10 10 10 10 10 10 8 8Running tracks 5 5 5 5 5 5 5 5 4 4Baseball/softball 60 60 60 60 58 58 56 54 48 44Playgrounds 75 75 75 75 73 73 71 67 65 63

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

DEER VALLEY UNIFIED SCHOOL DISTRICT NO. 97CAPITAL ASSETS INFORMATION



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deer valley unified school district no. 97 · comprehensive annual financial report of the deer...

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