glendale union high school district no. 205 for the...

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205

GLENDALE, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016

Issued by: Finance Department


TABLE OF CONTENTS

INTRODUCTORY SECTION Page Letter of Transmittal 1 ASBO Certificate of Excellence 7 GFOA Certificate of Achievement 8 Organization Chart 9 List of Principal Officials 10 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 17 BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position 30 Statement of Activities 31

Fund Financial Statements: Balance Sheet – Governmental Funds 34 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position 37 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the Statement of Activities 40 Statement of Net Position – Proprietary Funds 41


TABLE OF CONTENTS

FINANCIAL SECTION Page BASIC FINANCIAL STATEMENTS

Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 42 Statement of Cash Flows – Proprietary Funds 43 Statement of Assets and Liabilities – Fiduciary Funds 44

Notes to Financial Statements 45

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

Budget and Actual: General Fund 72

Schedule of the Proportionate Share of the Net Pension Liability 73

Schedule of Contributions 73 Schedule of Funding Progress 74 Notes to Required Supplementary Information 75

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 81


TABLE OF CONTENTS

FINANCIAL SECTION Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Special Revenue Funds: Combining Balance Sheet 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 90 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 96

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 118

Capital Projects Funds:

Combining Balance Sheet 120 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 122 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 124

Agency Fund:

Statement of Changes in Assets and Liabilities 130


TABLE OF CONTENTS

STATISTICAL SECTION Page Financial Trends:

Net Position by Component 132 Expenses, Program Revenues, and Net (Expense)/Revenue 133 General Revenues and Total Changes in Net Position 135 Fund Balances – Governmental Funds 137 Governmental Funds Revenues 139 Governmental Funds Expenditures and Debt Service Ratio 141 Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 143

Revenue Capacity:

Net Limited Assessed Value and Full Cash Value of Taxable Property by Class 144 Net Full Cash Assessed Value of Taxable Property by Class 145 Property Tax Assessment Ratios 146 Direct and Overlapping Property Tax Rates 147 Principal Property Taxpayers 148 Property Tax Levies and Collections 149

Debt Capacity:

Outstanding Debt by Type 150 Direct and Overlapping Governmental Activities Debt 151 Direct and Overlapping General Bonded Debt Ratios 151 Legal Debt Margin Information 152


TABLE OF CONTENTS

STATISTICAL SECTION Page

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics 153 Principal Employers 154

Operating Information: Full-Time Equivalent District Employees by Type 155 Operating Statistics 157 Teacher Demographic Information 158

Capital Assets Information 160

INTRODUCTORY SECTION

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November 2, 2016 Citizens and Governing Board Glendale Union High School District No. 205 7650 North 43rd Avenue Glendale, Arizona 85301 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Glendale Union High School District No. 205 (District) for the fiscal year ended June 30, 2016. 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, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

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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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 58 public school districts located in Maricopa County, Arizona. It is the second largest high school district in Arizona providing a program of public education from grade nine through grade twelve. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component unit combined with the District for financial statement purposes and the District are not included in any other governmental entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore, and athletic functions.

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Blended component units, although legally separate entities, are, in substance, part of the District’s operations. The Glendale Union High School District No. 205 Employee Benefit Trust is responsible for providing health insurance for the District’s employees. The District’s Governing Board appoints the Trust’s Board of Directors. The Glendale Union High School District No. 205’s Employee Benefit Trust provides services entirely to the District and therefore has been included as an Internal Service Fund in accordance with the criteria established by GASB. Founded in 1911, Glendale Union High School District serves the communities of Phoenix and Glendale and encompasses 60 square miles. Comprised of nine high schools, grades 9-12, the urban district enrolls 15,000 students and has approximately 150,000 constituents in the Phoenix metropolitan area. All schools are accredited by the Arizona Department of Education, North Central Association of Schools and Colleges (NCA CASI) and AdvancEd. The Arizona Department of Education has rated GUHSD as an "A" district. Eight of the district's nine schools are ranked among the best high schools in the nation by U.S. News & World Report and all are part of the College Board’s 2013 National Advanced Placement District of the Year. Other recent recognitions, achievements, and accolades include: National and State Recognition:

Top “A” Rated District AZ Dept. of Education, 2013, 2014 Nine “A” Rated Schools AZ Dept. of Education, 2014 America’s Best High Schools U.S. News & World Report, 2008-2015 Beat the Odds Gold Schools, 2014 A+ School Washington High School, 2014

Additional Achievements and Accolades:

Arizona Teacher of the Year, Arizona Education Foundation, 1986, 2011 Arizona Spotlight Award Winner, Expect More Arizona 2013 Advanced Placement Honor Roll District, 2013, 2015 Regional Career and Technical Education Administrator of the Year, 2014 Arizona Ambassador Teacher of Excellence, Arizona Education Foundation, 2014 GUHSD Parent Satisfaction was at 95% for the 2014-2015 school year. Postsecondary education rates for GUHSD are 81%. Extracurricular participation in GUHSD was at 85% in 2014-2015. GUHSD had a graduation rate of 87.9% during a four year period and 92.2% over five

years. The Arizona Auditor General reports that the District allocates 55.8% of its spending to

the classroom which is more than the state average of 53.6%. The Arizona Auditor General reports that the District has administrative costs of 8.3%,

well below national and state averages of 10.9% and 10.2% respectively. District teachers receive additional pay based on performance. A nationally-recognized teacher mentor program is in place. Class of 2015 earned over $61 million in scholarships.

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.

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The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund, and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue, therefore a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The Joint Legislative Budget Committee (JLBC) reports in July 2016 that the Arizona State General Fund collections totaled $660.4 million, an amount which is (6.0) % below the prior year. July revenues were $(15.8) million below the enacted budget forecast. The operating fund balance consists of the General Fund and certain dedicated funds. The operating balance as of mid-August 2016 is $1.4 billion, an amount which is unchanged from August 2015. Single-family housing construction is increasing. Multifamily construction had peaked, but has recently started to increase. Arizona’s 12-month total of single-family building permits is 24,233, or 24.4% more than a year ago. Arizona’s total of 10,529 multi-family building permits is 19.2% more than 2015. Compared to the same month in the prior year, the state added 76,100 nonfarm jobs in July, or 3.0%. The average net job increase for the first 7 months of calendar year 2016 is 3.0%. The state’s unemployment rate increased from 5.8% in June to 6.0% in July. Maricopa County is located in the south-central portion of Arizona. Maricopa County is one of the largest counties in the United States by area having a land area greater than that of seven states. Current population is projected at 4.1 million, which ranks fourth among the nation's counties. It is by far Arizona's most populous county, encompassing well over half of the state's residents. Maricopa County’s July 2016 unemployment rate was 5.4%, which is less than the Arizona rate of 6.0%. The county seat is Phoenix, which is Arizona's largest city and capital. Phoenix is the capital and largest city of the state of Arizona. With 1,563,025 people (as of 2015), Phoenix is the sixth most populous city nationwide, the most populous state capital in the United States, and the only state capital with a population of more than 1 million residents. Phoenix is the anchor of the Phoenix metropolitan area, also known as the Valley of the Sun, which in turn is a part of the Salt River Valley. The metropolitan area is the 12th largest by population in the United States, with approximately 4.3 million people as of 2010. In addition, Phoenix is the county seat of Maricopa County and is one of the largest cities in the United States by land area. The city averaged a 4 percent annual population growth rate over a 40-year

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period from the mid-1960s to the mid-2000s. This growth rate slowed during the Great Recession of 2007–09, and has rebounded slowly. Phoenix is the cultural center of the Valley of the Sun, as well as the entire state. Phoenix is currently home to four Fortune 500 companies: electronics corporation Avnet, mining company Freeport-McMoRan, retailer PetSmart, and waste hauler Republic Services. Honeywell's Aerospace division is headquartered in Phoenix, and the valley hosts many of their avionics and mechanical facilities. Intel has one of their largest sites in the area, employing about 12,000 employees, the second largest Intel location in the country. The city is also home to: the headquarters of U-HAUL International; Best Western; and Apollo Group, parent of the University of Phoenix. US Air/American Airlines is the largest carrier at Sky Harbor International Airport in Phoenix. Mesa Air Group, a regional airline group, is headquartered in Phoenix. The military has a significant presence in Phoenix, with Luke Air Force Base located in the western suburbs. Long-term Financial Planning. The District has a current student population of approximately 15,500. Student populations are expected to grow slightly over the next several years and are expected to reach 16,000 by the year 2022-23. Current school facilities are of adequate size to meet this need. The average age of the school buildings is 40 years. During 2015-16 the State of Arizona reduced District capital funding by approximately $7.4 million. In addition the State of Arizona deferred approximately $18 million of District state aid revenue to be paid in July 2016. The Arizona Education Finance Amendment, Proposition 123 was approved by Arizona voters on May 17, 2016 by a margin of under 2 percent. The measure is designed to increase education funding by $3.5 billion over the course of 10 years by allocating money from the state’s general fund and increasing annual distributions to education from the state land trust permanent fund. With this amendment, state officials settled a five-year lawsuit over school funding. In 2010, K-12 school districts and charter schools alleged that during the Great Recession in 2007, the state ignored Proposition 301, a ballot measure approved by voters in 2000 that required "automatic inflation adjustments in the state aid to education base level or other components of a school district's revenue control limit." The schools alleged they were shorted necessary funding required under the measure. The measure's language does not require schools to use the funding for a specific purpose. In June 2016 the District received approximately $3.3 million in additional funding and expects to receive annual gross funding under the measure of $4.9 million for years ending June 30, 2017-2020 and annual gross funding of $5.3 million for years ending June 30, 2021-2025. The District expects to allocate most of these resources to staff compensation. On November 3, 2015 District voters approved a new $70 million bond authorization for facility renovation and capital expenditures. In July 2016 the district issued the first $30 million of these bonds. On November 4, 2014, District voters approved a five year 10% Maintenance and Operation override totaling $8.3 million in 2016-17.

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On November 7, 2000, Arizona voters passed Proposition 301, which increased the state sales tax rate from 5% to 5.6%. During 2015-16, $437 million additional dollars raised through the increased sales tax were earmarked for a Classroom Site Fund for K-12 education. The District received $6.6 million in Proposition 301 funding in fiscal year 2015-16 which has been spent or earmarked for teacher base compensation increases, performance awards and dropout prevention programs. AWARDS AND ACKNOWLEDGMENTS Awards. The Association of School Business Officials (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2015. 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, 2015. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2016 certificates. Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted,

Brian Capistran Louis Wiegand, CPA Superintendent Chief Financial Officer

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LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Don DeBusk, President

Sue Maland, Clerk Vicki L. Johnson, Member

Patty Kennedy, Member

Pam Reicks, Member

ADMINISTRATIVE STAFF

Brian Capistran, Superintendent

Matt Belden, Assistant Superintendent of Operations and Athletics

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

Kim Mesquita, Administrator of Community Relations

Louis Wiegand, CPA, Chief Financial Officer

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FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT

Governing Board Glendale Union High School District No. 205

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Glendale Union High School District No. 205 (District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Glendale Union High School District No. 205, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principle As described in Note 1, the District implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, for the year ended June 30, 2016, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.

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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, and net pension liability information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 2, 2016, on our consideration of Glendale Union High School District No. 205’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Glendale Union High School District No. 205’s internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Phoenix, Arizona November 2, 2016

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

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

YEAR ENDED JUNE 30, 2016

As management of the Glendale Union High School District No. 205 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2016. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS

The District’s total net position of governmental activities increased $5.6 million, which

represents a 20 percent increase from the prior fiscal year as a result of an increase of $3.9 million in unrestricted state aid revenue and a decrease of $2.6 million in instructional expenses.

General revenues accounted for $121.8 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 $22.7 million or 16 percent of total current fiscal year revenues.

The District had approximately $139.0 million in expenses related to governmental

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

Among major funds, the General Fund had $96.7 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $95.2 million in expenditures. The General Fund’s fund balance increase from $6.1 million at the prior fiscal year end, to $7.3 million at the end of the current fiscal year was primarily due to an increase of $3.4 million in state aid and grants.

Net position for the Internal Service Fund increased $495,466 from the prior fiscal year.

Operating revenues of $12.9 million exceeded operating expenses of $12.6 million at the end of the current fiscal year.

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

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

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

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

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

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process and pension plan. 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. Schedules for the pension plan have been provided as required supplementary information.

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GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows were less than liabilities and deferred inflows by $22.7 million at the current fiscal year end. The largest portion of the District’s positive net position reflects its investment in capital assets (e.g., land, land and improvements, buildings and improvements, vehicles, furniture and equipment and construction in progress), less any related outstanding debt used to acquire those assets. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2016 and June 30, 2015.

As of June 30, 2016

As of June 30, 2015

Current and other assets $ 84,131,471 $ 79,674,291 Capital assets, net 182,660,760 182,265,744

Total assets 266,792,231 261,940,035 Deferred outflows 11,869,460 14,965,506 Current and other liabilities 33,746,630 25,321,759 Long-term liabilities 255,920,227 257,999,050

Total liabilities 289,666,857 283,320,809 Deferred inflows 11,697,467 21,852,285 Net position:

Net investment in capital assets 73,647,569 68,571,880 Restricted 9,978,544 10,735,131 Unrestricted (106,328,746) (107,574,564)

Total net position $ (22,702,633) $ (28,267,553) At the end of the current fiscal year the District reported positive balances in two categories of net position while unrestricted net position reported a deficit of $106.3 million. The deficit is due to the District’s proportionate share of the state pension plan’s unfunded liability. The same situation held true for the prior fiscal year.

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GOVERNMENT-WIDE FINANCIAL ANALYSIS

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

The principal retirement of $15.5 million of general obligation bonds. The addition of $11.1 million in capital assets through various school improvements and

purchases of vehicles, furniture and equipment. The issuance of $8.435 million in school improvement bonds. The increase of $5.3 million in pension liabilities.

Changes in net position. The District’s total revenues for the current fiscal year were $144.5 million. The total cost of all programs and services was $139.0 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2016 and June 30, 2015.

Fiscal Year Ended

June 30, 2016

Fiscal Year Ended

June 30, 2015 Revenues:

Program revenues: Charges for services $ 5,542,733 $ 8,543,788 Operating grants and contributions 15,790,506 15,957,107 Capital grants and contributions 1,344,377 2,417,024

General revenues: Property taxes 54,073,678 55,443,562 Investment income 446,623 231,113 Unrestricted county aid 5,285,254 5,052,003 Unrestricted state aid 61,453,333 57,506,823 Unrestricted federal aid 584,108 874,648 Total revenues 144,520,612 146,026,068

Expenses: Instruction 78,117,947 80,760,277 Support services – students and staff 19,580,900 18,621,487 Support services – administration 9,887,794 11,175,762 Operation and maintenance of plant services 16,533,064 16,464,033 Student transportation services 4,518,602 5,468,997 Operation of non-instructional services 6,684,502 6,777,999 Interest on long-term debt 3,632,883 3,960,593

Total expenses 138,955,692 143,229,148 Changes in net position 5,564,920 2,796,920

Net position, beginning (28,267,553) (31,064,473) Net position, ending $ (22,702,633) $ (28,267,553)

Page 21



GOVERNMENT-WIDE FINANCIAL ANALYSIS

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

Unrestricted state aid increased $3.9 million primarily due to the monies received as a result of the passage of Proposition 123.

Charges for services decreased $3.0 million from the prior year. Last year the District received insurance proceeds for flood and fire damage. This caused charges for services to be higher than normal. The current year charges for services amount of $5.5 million is comparable to fiscal year 2013-14.

Instructional expenses decreased $2.6 million due to changes in deferred outflows and inflows of resources related to pensions and a decrease in capital purchases below the District’s capitalization threshold.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Mil

lion

s

Expenses

FY2015-16

FY2014-15

Page 22



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

Year Ended June 30, 2016 Year Ended June 30, 2015 Total

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $ 78,117,947 $ (67,403,996) $ 80,760,277 $ (66,463,865)Support services – students and staff 19,580,900 (13,815,729) 18,621,487 (13,118,549)Support services – administration 9,887,794 (9,856,896) 11,175,762 (11,175,762)Operation and maintenance of plant services 16,533,064 (15,628,642) 16,464,033 (15,202,221)Student transportation services 4,518,602 (4,507,602) 5,468,997 (5,468,997)Operation of non-instructional services 6,684,502 (1,432,328) 6,777,999 (1,353,092)Interest on long-term debt 3,632,883 (3,632,883) 3,960,593 (3,528,743)

Total $ 138,955,692 $(116,278,076) $ 143,229,148 $(116,311,229)

The cost of all governmental activities this year was $139.0 million.

Federal and state governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $22.7 million.

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

revenues, which are made up of primarily property taxes of $54.1 million and unrestricted state aid of $61.5 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.

Page 23



FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS 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 $18.9 million, a decrease of $1.8 million due primarily to a decrease of $1.4 million in other local revenues mostly related to an insurance claim received in the prior year for flood and fire damage. The General Fund comprises 38 percent of the total fund balance. Approximately $5.3 million or 73 percent of the General Fund’s fund balance is unassigned. The General Fund is the principal operating fund of the District. The increase in fund balance of $1.2 million to $7.3 million as of fiscal year end was a result of an increase in state aid due to an increase in students and state funding level per student. Fund balance in the Debt Service Fund increased $436,011 primarily due to an increase in property tax revenue. In addition, fund balance in the Bond Building Fund decreased $3.4 million primarily due to the renovations at various schools. Proprietary funds. Unrestricted net position of the Internal Service Fund at the end of the fiscal year amounted to $10.8 million. The increase of $495,466 from the prior fiscal year was primarily due to a decrease in premium expense during the year. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for changes in laws adopted by the Legislature, including the passage of Proposition 123, and an increase in students. The difference between the original budget and the final amended budget was a $4.5 million increase. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant actual to budgeted variances were as follows:

Property tax revenues were $5.6 million under budget due to budgeting additional state aid as property tax revenues.

State aid and grant revenues were $8.5 million over budget due to budgeting additional state aid as property tax revenues.

Instruction expenditures were $6.2 million under budget due to the passing of Proposition 123 and planned carryover.

Page 24



CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. At year end, the District had invested $344.4 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 $10.2 million from the prior fiscal year. Total depreciation expense for the current fiscal year was $10.5 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2016 and June 30, 2015.

As of June 30, 2016

As of June 30, 2015

Capital assets – non-depreciable $ 8,974,702 $ 12,245,973 Capital assets – depreciable, net 173,686,058 170,019,771

Total $ 182,660,760 $ 182,265,744 Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year end, the District had $113.2 million in long-term debt outstanding, $17.1 million due within one year. Long-term debt decreased by $8.8 million as a result of the principal retirement of $17.6 million and the issuance of $8.8 million of general obligation bonds and related premium. The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 15 percent of the total secondary assessed valuation) and the statutory debt limit on Class B bonds (the greater of 10 percent of the secondary assessed valuation or $1,500 per student). The current total debt limitation for the District is $260.1 million and the Class B debt limit is $173.4 million, which are more than the District’s total outstanding general obligation and Class B debt, respectively. Additional information on the District’s long-term debt can be found in Notes 8 through 10.

Page 25



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 2016-17 budget. Among them:

Second year of Proposition 123 funding (estimated $5 million) Basic support level funding increase of approximately $850,000 Fiscal year 2015-16 budget balance carryforward (estimated $5 million) Increased Teacher Experience Index funding approximately $450,000 Student growth funding approximately $700,000 Increased continuing compensation payments $5 million One time compensation payments $2.2 million Initial sale of bonds authorized in November 2015 Continued Energy lease transfer approximately $1.2 million District Additional Assistance (state capital funding) continued suspension at 85% Minimal change in healthcare costs Reduced election costs (none planned in the 2016-17 year) Increased utility expenditures due to increasing rates

Also considered in the development of the budget is the local economy and inflation of the surrounding area. Budgeted expenditures in the General Fund increased $4.8 million to $103.2 million in fiscal year 2016-17. Funding received as a result of Proposition 123, an increase in ADM, and a one percent increase in the base support level are the primary reasons for the increase. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2016-17 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Glendale Union High School District No. 205, 7650 North 43rd Avenue, Glendale, Arizona 85301-1661.

Page 26

BASIC FINANCIAL STATEMENTS

Page 27


Page 28

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Page 29

ASSETSCurrent assets:

Cash and investmentsDepositsProperty taxes receivableAccounts receivableDue from governmental entitiesPrepaid items

Total current assets

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

Total noncurrent assetsTotal assets

DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refundingPension plan items

Total deferred outflows of resources

LIABILITIESCurrent liabilities:

Accounts payableConstruction contracts payableCredit line payableAccrued payroll and employee benefitsCompensated absences payableAccrued interest payableObligations under capital leasesBonds payableTax anticipation notes payable

Total current liabilities

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

Total noncurrent liabilitiesTotal liabilities

DEFERRED INFLOWS OF RESOURCESPension plan items

NET POSITIONNet investment in capital assetsRestricted for:

Voter approved initiativesFederal and state projectsFood serviceAuxiliary operationsOther local initiativesDebt serviceCapital outlay

UnrestrictedTotal net position

Governmental Activities

$ 55,062,119119,030

5,116,67822,122

23,129,742681,780

84,131,471

8,974,702173,686,058182,660,760266,792,231

746,63411,122,82611,869,460

1,898,4376,998,8779,887,000

340,115220,000

1,622,2011,315,733

15,815,00013,000,00051,097,363

238,569,494238,569,494289,666,857

11,697,467

73,647,569

2,680,890348,874130,791

2,501,0401,347,9131,544,8321,424,204

(106,328,746)$ (22,702,633)

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

JUNE 30, 2016

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

Page 30

Program Revenues

Net (Expense) Revenue and

Changes in Net Position

Functions/ProgramsGovernmental activities:

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

Total governmental activities

Expenses

$ 78,117,94719,580,9009,887,794

16,533,0644,518,6026,684,5023,632,883

$ 138,955,692

Charges for Services

$ 3,284,776694,317

555,549

1,008,091

$ 5,542,733

Operating Grants and

Contributions

$ 6,084,7985,070,854

30,898348,873

11,0004,244,083

$ 15,790,506

Capital Grants and

Contributions

$ 1,344,377

$ 1,344,377

Governmental Activities

$ (67,403,996)(13,815,729)(9,856,896)

(15,628,642)(4,507,602)(1,432,328)(3,632,883)

(116,278,076)

General revenues:Taxes:

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

Investment incomeUnrestricted county aidUnrestricted state aidUnrestricted federal aid

Total general revenues

Changes in net position

Net position, beginning of year

Net position, end of year

34,514,93819,025,570

533,170446,623

5,285,25461,453,333

584,108121,842,996

5,564,920

(28,267,553)

$ (22,702,633)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2016


Page 31


Page 32

FUND FINANCIAL STATEMENTS

Page 33

ASSETSCash and investmentsDepositsProperty taxes receivableAccounts receivableDue from governmental entitiesDue from other fundsPrepaid items

Total assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:

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

Total liabilities

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

Total deferred inflows of resources

Fund balances (deficits):NonspendableRestrictedUnassigned

Total fund balances

Total liabilities, deferred inflows of resourcesand fund balances

General

$ 9,058,742

4,721,1794,239

18,094,9983,156,049

563,183$ 35,598,390

$ 946,032

9,887,000

74,385

13,000,00023,907,417

4,426,516

4,426,516

563,1831,373,4955,327,7797,264,457

$ 35,598,390

Debt Service

$ 18,586,534

395,499

$ 18,982,033

$

15,815,0001,622,201

17,437,201

244,344

244,344

1,300,488

1,300,488

$ 18,982,033

Bond Building

$ 10,408,954

$ 10,408,954

$6,998,877

32

6,998,909

3,410,045

3,410,045

$ 10,408,954

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

JUNE 30, 2016


Page 34

Non-Major Governmental

Funds

$ 6,199,483119,030

17,8835,034,744

15,030118,597

$ 11,504,767

$ 952,405

3,171,079265,698

4,389,182

182,019182,019

118,5976,827,489

(12,520)6,933,566

$ 11,504,767

Total Governmental

Funds

$ 44,253,713119,030

5,116,67822,122

23,129,7423,171,079

681,780$ 76,494,144

$ 1,898,4376,998,8779,887,0003,171,079

340,11515,815,0001,622,201

13,000,00052,732,709

4,670,860182,019

4,852,879

681,78012,911,5175,315,259

18,908,556

$ 76,494,144

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Page 36

Total governmental fund balances 18,908,556$

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

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

Governmental capital assets 344,418,438$ Less accumulated depreciation (161,757,678) 182,660,760

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

Property taxes 4,670,860Intergovernmental 182,019 4,852,879

Deferred items related to the net cost of issuance of bondsare amortized over the life of the associated bond issue in the government-wide statements but not reported in the funds. 746,634

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

Deferred outflows of resources related to pensions 11,122,826Deferred inflows of resources related to pensions (11,697,467) (574,641)

The Internal Service Fund is used by management to charge the cost of insurance to the individual funds. The assets andliabilities of the Internal Service Fund are included in theStatement of Net Position. 10,808,406

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

Other postemployment benefits payable (19,222,368)Compensated absences payable (4,324,662)Obligations under capital leases (8,492,995)Net pension liability (119,203,326)Bonds payable (88,861,876) (240,105,227)

Net position of governmental activities (22,702,633)$

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

TO THE STATEMENT OF NET POSITIONJUNE 30, 2016


Page 37

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):Transfer inTransfer 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 prepaid items

Fund balances, end of year

General

$ 5,412,12536,538,35754,134,282

584,10896,668,872

53,078,39812,066,1109,095,059

14,947,7064,127,708

711,6281,018,020

169,14015,855

95,229,624

1,439,248

391,820(1,234,818)

(842,998)

596,250

6,105,024

563,183

$ 7,264,457

Debt Service

$ 91,17019,094,541

19,185,711

15,815,0003,175,621

18,990,621

195,090

240,921

240,921

436,011

864,477

$ 1,300,488

Bond Building

$ 26,172

26,172

11,790,440

169,17611,959,616

(11,933,444)

(240,921)8,435,000

352,7898,546,868

(3,386,576)

6,796,621

$ 3,410,045

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

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2016


Page 38


Funds

$ 6,261,778

8,557,14016,662,96731,481,885

15,447,2806,323,172

353,3631,118,777

97,8825,426,7662,008,970

1,074,685592,619

32,443,514

(961,629)

1,234,818(391,820)

842,998

(118,631)

6,933,600

118,597

$ 6,933,566

Total Governmental

Funds

$ 11,791,24555,632,89862,691,42217,247,075

147,362,640

68,525,67818,389,2829,448,422

16,066,4834,225,5906,138,394

14,817,430

17,058,8253,784,095

169,176158,623,375

(11,260,735)

1,867,559(1,867,559)

8,435,000352,789

8,787,789

(2,472,946)

20,699,722

681,780

$ 18,908,556

Page 39

Net changes in fund balances - total governmental funds (2,472,946)$

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 11,140,849$ Less current year depreciation (10,512,003) 628,846

Issuance of school improvement bonds provide current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position. (8,787,789)

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

Property taxes (1,559,220)Intergovernmental (1,467,771) (3,026,991)

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

Capital lease principal retirement 1,243,825 Bond principal retirement 15,815,000 17,058,825

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

Current year pension contributions 7,870,026Pension expense (5,346,056) 2,523,970

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.

Prepaid items 681,780Loss on disposal of assets (233,830)Amortization of issuance premium and deferred bond items 151,212Compensated absences (362,816)Other postemployment benefits payable (1,090,807) (854,461)

The Internal Service Fund is used by management to charge the cost of insurance to the individual funds. The changes in net position of the Internal Service Fund is reported with governmental activities in the Statement of Activities. 495,466

Changes in net position in governmental activities 5,564,920$

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

IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2016


Page 40

ASSETSCurrent assets:

Cash and investmentsTotal current assets

Total assets

NET POSITIONUnrestricted

Total net position

Governmental Activities:

Internal Service Funds

$ 10,808,40610,808,40610,808,406

10,808,406$ 10,808,406

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

PROPRIETARY FUNDSJUNE 30, 2016


Page 41

Operating revenues:Contributions

Total operating revenues

Operating expenses:OtherPremiumsAdministrative fees

Total operating expenses

Operating income (loss)

Nonoperating revenues (expenses):Investment income

Total nonoperating revenues (expenses)

Changes in net position

Total net position, beginning of year

Total net position, end of year

Governmental Activities:

Internal Service Funds

$ 12,913,98012,913,980

228,58212,374,411

48412,603,477

310,503

184,963184,963

495,466

10,312,940

$ 10,808,406

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

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2016


Page 42

GovernmentalActivities:Internal

Service Fund

Increase in Cash and Cash Equivalents

Cash flows from operating activities:

Cash received from contributions $ 15,613,980

Cash payments to suppliers for goods and services (12,603,477)

Net cash provided by operating activities 3,010,503

Cash flows from investing activities:

Certificates of deposit sold 7,336,989

Certificates of deposit purchased (9,121,952)

Investment income 184,963

Net cash used for investing activities (1,600,000)

Net increase in cash and cash equivalents 1,410,503

Cash and cash equivalents, beginning of year 275,951

Cash and cash equivalents, end of year $ 1,686,454

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

Cash and investments $ 10,808,406

Less cash and cash equivalents not maturing in less than three months (9,121,952)

Total cash and cash equivalents $ 1,686,454

Reconciliation of Operating Income to Net Cash Provided By Operating Activities

Operating income $ 310,503

Adjustments to reconcile operating income

to net cash provided by operating activities:

Changes in assets and liabilities:

Decrease in accounts receivable 2,700,000

Total adjustments 2,700,000

Net cash provided by operating activities $ 3,010,503

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



Page 43

ASSETSCash and investments

Total assets

LIABILITIESDue to student groups

Total liabilities

Agency

$ 1,438,598$ 1,438,598

$ 1,438,598$ 1,438,598

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

FIDUCIARY FUNDSJUNE 30, 2016


Page 44

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

JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Glendale Union High School District No. 205 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2016, the District implemented the provisions of GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and establishes a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also enhances accountability and transparency through revised note disclosures. The more significant of the District’s accounting policies are described below. A. Reporting Entity The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, the component unit combined with the District for financial statement presentation purposes and the District are not included in any other governmental reporting entity. Consequently, the District’s financial statements include the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore, and athletic functions.

Page 45


JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Blended Component Unit – Blended component units, although legally separate entities, are, in substance, part of the District’s operations. The Glendale Union High School District No. 205 Employee Benefit Trust is responsible for providing health insurance for the District’s employees. The District’s Governing Board appoints the Trust’s Board of Directors. The Glendale Union High School District No. 205’s Employee Benefit Trust provides services entirely to the District and therefore has been included as an Internal Service Fund in accordance with the criteria established by GASB. Complete audited financial statements for the component unit may be obtained at the Glendale Union High School District No. 205’s administrative offices, 7650 North 43rd Avenue, Glendale, Arizona 85301. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District and its component unit. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted county, state and federal aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

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

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

The District reports the following major governmental funds:

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

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

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

Additionally, the District reports the following fund types:

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

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

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

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

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

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

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

Land improvements 10 - 30 years Buildings and improvements 5 - 50 years Vehicles, furniture and equipment 5 - 20 years

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

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

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

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

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

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

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

General

Fund Debt Service

Fund

Bond Building

Fund


Funds Fund Balances:

Nonspendable: Prepaid items $ 563,183 $ $ $ 118,597

Restricted: Debt service 1,300,488 Capital projects 1,373,495Bond building projects 3,410,045 Voter approved initiatives 2,680,890 Federal and state projects 166,855 Auxiliary operations 2,501,040 Food service 130,791JTED 503,493 Civic center 444,444 Other purposes 399,976

Unassigned 5,327,779 (12,520)Total fund balances $ 7,264,457 $ 1,300,488 $ 3,410,045 $ 6,933,566

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balance – At year end, the Other Federal Projects Fund an individual non-major governmental fund reported a deficit in fund balance of $12,520. The deficit arose because of operations during the year. Additional revenues received in fiscal year 2016-17 are expected to eliminate the deficit.

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NOTE 4 – CASH AND INVESTMENTS Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure the District’s deposits may not be returned to the District. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $14,715,016 and the bank balance was $14,802,610. All of the bank balance was insured or collateralized by the pledging financial institution’s trust department or agent but not in the District’s name. Fair Value Measurements. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

Level 1 inputs are quoted prices in active markets for identical assets Level 2 inputs are significant other observable inputs Level 3 inputs are significant unobservable inputs

The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy. At year end, the District’s investments consisted of the following:

Average Maturities Fair Value County Treasurer’s investment pool 342 days $ 41,785,701 Total $ 41,785,701

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 $ 22,781 $ 3,866,172Due from state government 18,043,635 1,015,504Due from county government 28,582 Due from other districts 153,068

Net due from governmental entities $ 18,094,998 $ 5,034,744 NOTE 6 – CAPITAL ASSETS

A summary of capital asset activity for the current fiscal year follows:

Governmental Activities Beginning Balance Increase Decrease

Ending Balance

Capital assets, not being depreciated: Land $ 291,205 $ $ $ 291,205 Construction in progress 11,954,768 8,703,818 11,975,089 8,683,497

Total capital assets, not being depreciated 12,245,973 8,703,818 11,975,089 8,974,702

Capital assets, being depreciated: Land improvements 22,060,016 401,931 22,461,947 Buildings and improvements 283,809,875 13,379,560 616,128 296,573,307 Vehicles, furniture and equipment 16,066,971 630,629 289,118 16,408,482

Total capital assets being depreciated 321,936,862 14,412,120 905,246 335,443,736

Less accumulated depreciation for: Land improvements (15,975,529) (1,066,196) (17,041,725)Buildings and improvements (122,294,233) (8,824,388) (421,267) (130,697,354)Vehicles, furniture and equipment (13,647,329) (621,419) (250,149) (14,018,599)

Total accumulated depreciation (151,917,091) (10,512,003) (671,416) (161,757,678) Total capital assets, being depreciated, net 170,019,771 3,900,117 233,830 173,686,058 Governmental activities capital assets, net $ 182,265,744 $ 12,603,935 $ 12,208,919 $ 182,660,760

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

Instruction $ 8,389,181 Support services – students and staff 744,578 Support services – administration 447,891 Operation and maintenance of plant services 274,807 Student transportation services 147,694 Operation of non-instructional services 507,852 Total depreciation expense – governmental activities $ 10,512,003

Construction Commitments – At year end, the District had contractual commitments related to various capital projects for the construction of school renovations. At year end, the District had spent $8,683,497 on the projects and had estimated remaining contractual commitments of $5,817,510. These projects are being funded with Bond Building monies.

NOTE 7 – SHORT TERM DEBT

Tax Anticipation Notes – In July 2015, the District issued $13.0 million in tax anticipation notes in advance of property tax collections, depositing the proceeds in the General Fund. These notes are necessary to provide cash flow as most tax revenue is collected in November and May. Property tax revenues of the General Fund set aside in May of 2016 will be used to repay these notes maturing in July 2016. Short-term debt activity for the current fiscal year, was as follows:

Beginning Balance Issued Redeemed

Ending Balance

Tax anticipation notes $11,000,000 $13,000,000 $ 11,000,000 $ 13,000,000 Revolving Line of Credit – The District has a revolving line of credit to provide cash flow during the year to mitigate the impact of timing differences of expenditures and the receipt of state aid and property tax revenues. General Fund revenues will be used to repay the line of credit in July 2016. Short-term debt activity for the current fiscal year, was as follows:

Beginning Balance Issued Redeemed

Ending Balance

Revolving line of credit $ 6,695,000 $ 20,568,000 $ 17,376,000 $ 9,887,000

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

Governmental

Activities Asset:

Building improvements $ 6,727,094 Vehicles and equipment 876,775 Less: Accumulated depreciation 2,072,334

Total $ 5,531,535 The future minimum lease obligations and the net present value of these minimum lease payments as of year end were as follows:

Year Ending June 30: Governmental

Activities 2017 $ 1,852,298 2018 1,821,293 2019 1,718,738 2020 1,718,740 2021 1,667,304 2022 1,667,304

Total minimum lease payments 10,445,677 Less: amount representing interest 1,952,682 Present value of minimum lease payments 8,492,995 Due within one year $ 1,315,733

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NOTE 9 – GENERAL OBLIGATION BONDS PAYABLE Bonds payable at year end, consisted of the following outstanding general obligation bonds. In November 2015, the voters authorized $70,000,000 of general obligation bonds, of which all remains unissued. The bonds are both callable and noncallable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt.

Purpose

Original Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal

June 30, 2016 Due Within One Year

Governmental activities: School Improvement Bonds,

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

4.00% 7/1/18 $ 465,000 $ School Improvement Bonds, Project of 2011, Series A (2012) 22,440,000

3.00-4.00% 7/1/18-31 21,440,000

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

1.00% 7/1/16-17 2,125,000 1,350,000

Refunding Bonds, Series 2012 50,495,000 3.33% 7/1/16-17 27,675,000 13,615,000 School Improvement Bonds,

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

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

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

0.97-1.975% 7/1/16-18 19,725,000 850,000 School Improvement Bonds,

Project of 2011, Series E (2015) 8,435,000

2.00-4.00% 7/1/16-30 8,435,000 Total $ 102,665,000 $15,815,000

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

Governmental Activities Year ending June 30: Principal Interest

2017 $ 15,815,000 $ 3,006,839 2018 16,935,000 2,515,971 2019 18,335,000 2,071,289 2020 3,695,000 1,832,349 2021 3,805,000 1,727,205 2022-26 21,345,000 6,420,888 2027-31 20,670,000 2,080,680 2032 2,065,000 37,170

Total $ 102,665,000 $ 19,692,391

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

Beginning Balance Additions Reductions

Ending Balance

Due Within One Year

Governmental activities: Bonds payable:

General obligation bonds $ 109,690,000 $ 8,435,000 $15,460,000 $ 102,665,000 $ 15,815,000Premium 2,556,935 352,789 897,848 2,011,876

Total bonds payable 112,246,935 8,787,789 16,357,848 104,676,876 15,815,000 Obligations under capital leases 9,736,820 1,243,825 8,492,995 1,315,733 Compensated absences payable 3,961,846 1,959,550 1,596,734 4,324,662 220,000 Net pension liability 113,921,888 5,281,438 119,203,326Other postemployment benefits 18,131,561 2,084,137 993,330 19,222,368 Governmental activity long-term

liabilities $ 257,999,050 $18,112,914 $ 20,191,737 $ 255,920,227 $ 17,350,733

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

Due to/from other funds:

General

Fund


Funds Total Due to Other Funds

Non-Major Governmental Funds $ 3,156,049 $ 15,030 $ 3,171,079Total Due from Other Funds $ 3,156,049 $ 15,030 $ 3,171,079

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

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NOTE 11 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Interfund transfers:

Transfers in

Transfers out

General

Fund

Debt

Service


Funds

Total General Fund $ $ $ 1,234,818 $ 1,234,818 Bond Building Fund 240,921 240,921 Non-Major Governmental Funds 391,820 391,820 Total $ 391,820 $ 240,921 $ 1,234,818 $ 1,867,559

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

NOTE 12 – CONTINGENT LIABILITIES

Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial. Lawsuits – The District is a party to a number of various types of lawsuits, many of which normally occur in governmental operations. The ultimate outcome of the actions is not determinable, however, District management believes that the outcome of these proceedings, either individually or in the aggregate, will not have a materially adverse effect on the accompanying financial statements. Arbitrage – Under the Tax Reform Act of 1986, interest earned on the debt proceeds in excess of interest expense or expenditure prior to the disbursement of the proceeds must be rebated to the Internal Revenue Service (IRS). Management believes there is no tax arbitrage rebate liability at year-end.

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NOTE 13 – RISK MANAGEMENT The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance 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 quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. The District established an Employee Benefit Trust fund (an Internal Service Fund) to account for and finance its uninsured risks of loss related to employee health and accident claims. The District joined the Valley Schools Employee Benefit Trust (VSEBT) together with other districts in the state for the risks of loss related to employee health claims. VSEBT is a public entity risk pool currently operating as a common risk management and insurance program for member school districts. The District, through the Employee Benefit Trust Fund, pays a lump-sum annual premium to VSEBT for health insurance coverage. The agreement provides that VSEBT will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. Under this program, the Employee Benefit Trust Fund collects contributions and pays premiums on insurance.

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JUNE 30, 2016

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

Retirement Initial Membership Date:

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

age required to receive benefit

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

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

Final average salary is

based on Highest 36 months of last

120 months Highest 60 months of last

120 months Benefit percent per

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

*With actuarially reduced benefits

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

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JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Contributions. In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.47 percent (11.35 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.47 percent (10.85 percent for retirement, 0.50 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions to the pension plan for the year ended June 30, 2016 were $7,870,026. In addition, the District was required by statute to contribute at the actuarially determined rate of 9.36 percent (9.17 for retirement and 0.13 percent for health insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS.

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

Health Benefit Supplement

Fund

Long-Term Disability

Fund Year ending June 30:

2016 $ 362,674 $ 87,0422015 416,218 84,6542014 415,976 166,391

Pension Liability. At June 30, 2016, the District reported a liability of $119.2 million for its proportionate share of the net pension liability of the ASRS. The net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2014, to the measurement date of June 30, 2015. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2015, the District’s proportion was 0.77 percent, which was the same as its proportion measured as of June 30, 2014.

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JUNE 30, 2016


Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2016, the District recognized pension expense of $5.3 million and reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience $ 3,252,800 $ 6,246,375Net difference between projected and actual earnings on

pension plan investments 3,820,202Changes in proportion and differences between

contributions and proportionate share of contributions 1,630,890Contributions subsequent to the measurement date 7,870,026

Total $11,122,826 $11,697,467 The deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30: 2017 $ (3,614,492)2018 (4,778,345)2019 (2,809,537)2020 2,757,707

Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension liability are as follows:

Actuarial valuation date June 30, 2014 Actuarial roll forward date June 30, 2015 Actuarial cost method Entry age normal Discount rate 8.0% Projected salary increases 3.0-6.75% Inflation 3.0% Permanent base increases Included Mortality rates 1994 GAM Scale BB

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JUNE 30, 2016


The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return. The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Target

Allocation

Long-Term Expected Real Rate of Return

Equity 58% 6.79% Fixed income 25% 3.70 Real estate 10% 4.25 Multi-asset 5% 3.41 Commodities 2% 3.93

Total 100%

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

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JUNE 30, 2016


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

1% Decrease (7.0%)

Current Discount Rate

(8.0%) 1% Increase

(9.0%) Proportionate share of the net

pension liability $156,197,093 $119,203,326 $93,850,473

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.

NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN

Plan Description. Under authority of the Governing Board, the District provides postretirement insurance (medical, dental and life) benefits, for certain retirees and their dependents, in accordance with the District’s Early Retiree Program. An employee is eligible if he/she has served 10 consecutive years or more before entering the program and the employee retires under the State of Arizona’s retirement plan. However, beginning July 1, 2013 an employee must serve 15 years or more. Employees hired after July 1, 2009 will not be eligible to participate in the District’s program. The plan is a single-employer defined benefit plan administered by the District. For the current fiscal year, the District contributed $993,330 for these benefits. The District’s regular insurance providers underwrite the retiree policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. A separate financial report is not issued for the plan. The number of participants as of year end, the effective date of the biannual OPEB valuation, follows:

Participants Active employees 838 Retired employees 303

Total 1,141

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JUNE 30, 2016

NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN Funding Policy. The District currently pays for postemployment benefits on a pay-as-you-go basis, and these financial statements assume that pay-as-you-go funding will continue. Generally, resources from the General Fund are used to pay for postemployment benefits.

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

Annual required contribution $ 2,407,425 Interest on net OPEB obligation 725,262 Adjustment to annual required contribution (1,048,550)Annual OPEB cost (expense) 2,084,137 Contributions made 993,330 Increase in net OPEB obligation 1,090,807 Net OPEB obligation – beginning of year 18,131,561 Net OPEB obligation – end of year $ 19,222,368

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, 2016 and the preceding two years is as follows:

Fiscal Year Ended

Annual OPEB Cost

Annual OPEB Cost Contributed

Percentage of Annual OPEB

Cost Contributed

Net OPEB Obligation

June 30, 2016 $ 2,084,137 $ 993,300 47.66% $ 19,222,368June 30, 2015 2,072,957 2,700,000 130.25 18,131,561 June 30, 2014 3,917,618 2,350,000 60.00 18,758,604

Funded Status and Funding Progress. As of June 30, 2015, the most recent actuarial valuation date, the plan was 0.0 percent funded. The actuarial accrued liability for benefits was $24,341,834, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability (UAAL) of $24,341,834. The covered payroll (annual payroll of active employees covered by the plan) was $45,932,070, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 53.0 percent.

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JUNE 30, 2016

NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit cost between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future.

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

NOTE 16 – SUBSEQUENT EVENTS

Tax Anticipation Notes – In July of 2016, the District issued $15,000,000 of tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. School Improvement Bonds – On July 12, 2016, the District issued School Improvement Bonds, Series A (2016) in the amount of $30.0 million, maturing on July 1, 2035, with an average interest rate of 2.69 percent. The purpose of the bonds is construction and renovation of school facilities and to purchase equipment, transportation vehicles, and technology.

Page 69


Page 70

REQUIRED SUPPLEMENTARY INFORMATION

Page 71

Revenues:Other localProperty taxesState aid and grants

Total revenues



Total expenditures


Other financing sources (uses):Transfer out





Fund balances (deficits), end of year

Budgeted Amounts

Original

$ 5,149,81741,668,99944,572,40791,391,223

55,115,34811,612,0227,883,938

14,185,0004,420,000

725,00093,941,308

(2,550,085)

(1,200,000)(1,200,000)

(3,750,085)

3,750,085

$

Final

$ 5,149,81741,668,99944,572,40791,391,223

58,698,84410,867,0228,857,938

14,940,0004,375,000

670,00098,408,804

(7,017,581)

(1,200,000)(1,200,000)

(8,217,581)

3,750,085

$ (4,467,496)

Non-GAAP Actual

$ 5,383,42436,055,89653,047,76494,487,084

52,473,83911,869,415

8,739,52114,833,947

4,064,810662,683

92,644,215

1,842,869

(1,234,818)(1,234,818)

608,051

2,918,224

563,183

$ 4,089,458

Variance with Final Budget

Positive (Negative)

$ 233,607(5,613,103)

8,475,3573,095,861

6,225,005(1,002,393)

118,417106,053310,190

7,3175,764,589

8,860,450

(34,818)(34,818)

8,825,632

(831,861)

563,183

$ 8,556,954

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

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


See accompanying notes to this schedule.

Page 72

2016 2015 2014 2013

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

District's proportionate share of the netpension liability (asset) 119,203,326$ 113,921,888$ $ $

District's covered payroll 70,545,381$ 69,329,374$ $ $

District's proportionate share of the net pension liability (asset) as a percentageof its covered payroll 168.97% 164.32% #DIV/0! #DIV/0!

Plan fiduciary net position as a percentage of the total pension liability 68.35% 69.49% 0.00% 0.00%

2016 2015 2014 2013

Actuarially determined contribution 7,870,026$ 7,682,392$ $ $

Contributions in relation to the actuarially determined contribution 7,870,026 7,682,392

Contribution deficiency (excess) $ $ $ $

District's covered payroll 72,534,802$ 70,545,381$ $ $

Contributions as a percentageof covered payroll 10.85% 10.89% #DIV/0! #DIV/0!

NOTE:

LAST TWO FISCAL YEARS

SCHEDULE OF CONTRIBUTIONSARIZONA STATE RETIREMENT SYSTEM

LAST TWO FISCAL YEARS

The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.

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

ARIZONA STATE RETIREMENT SYSTEM

See accompanying notes to this schedule.Page 73

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

40359 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Covered Payroll

UAAL as a Percentage of

Covered Payroll

OTHER POSTEMPLOYMENT BENEFITS PLAN

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

Actuarial Valuation

Date

LAST THREE ACTUARIAL VALUATIONS

Actuarial Valuation of Assets

Actuarial Accrued Liability (AAL)

Unfunded AAL (UAAL)

Funded Ratio

See accompanying notes to this schedule.Page 74

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

JUNE 30, 2016

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

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

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

Total

Expenditures Fund Balances

End of Year Statement of Revenues, Expenditures and Changes in

Fund Balances – Governmental Funds $ 95,229,624 $ 7,264,457 Activity budgeted as special revenue funds (1,412,502) (1,801,504)Activity budgeted as capital projects funds (1,172,907) (1,373,495)Schedule of Revenues, Expenditures and Changes in

Fund Balances – Budget and Actual – General Fund $ 92,644,215 $ 4,089,458

NOTE 2 – PENSION PLAN SCHEDULES Change in Accounting Principle. For the year ended June 30, 2016, the District implemented the provisions of GASB Statement No. 82, Pension Issues. The statement changed the measure of payroll that is required to be presented in required supplementary information from covered-employee payroll to covered payroll. Accordingly, payroll amounts presented in the pension plan schedules and related ratios for prior periods have been restated. Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements. Factors that Affect Trends. The actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2014, actuarial valuation. The study did not include an analysis of the assumed investment rate of return.

Page 75


Page 76

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

Page 77


Page 78

GOVERNMENTAL FUNDS

Page 79

ASSETSCash and investmentsDepositsAccounts receivableDue from governmental entitiesDue from other fundsPrepaid items

Total assets


Accounts payableDue to other fundsAccrued payroll and employee benefits

Total liabilities

Deferred inflows of resources:Unavailable revenues - intergovernmental


Total fund balances


Special Revenue

$ 6,171,878119,03017,883

5,034,74415,030

118,597$ 11,477,162

$ 924,8003,171,079

265,6984,361,577

182,019

118,5976,827,489

(12,520)6,933,566

$ 11,477,162

Capital Projects

$ 27,605

$ 27,605

$ 27,605

27,605

$ 27,605

Total Non-Major

Governmental Fund

$ 6,199,483119,030

17,8835,034,744

15,030118,597

$ 11,504,767

$ 952,4053,171,079

265,6984,389,182

182,019

118,5976,827,489

(12,520)6,933,566

$ 11,504,767

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

JUNE 30, 2016

Page 80

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

Total revenues




Principal retirementInterest and fiscal charges

Total expenditures


Other financing sources (uses):Transfer inTransfer out



Fund balances (deficits), beginning of year



Special Revenue

$ 5,533,9538,533,396

16,662,96730,730,316

15,436,8606,322,385

353,2131,075,659

91,6265,426,7661,914,082

30,620,591

109,725

(391,820)(391,820)

(282,095)

7,097,064

118,597

$ 6,933,566

Capital Projects

$ 727,82523,744

751,569

10,420787150

43,1186,256

94,888

1,074,685592,619

1,822,923

(1,071,354)

1,234,818

1,234,818

163,464

(163,464)

$

Total Non-Major

Governmental Funds

$ 6,261,7788,557,140

16,662,96731,481,885

15,447,2806,323,172

353,3631,118,777

97,8825,426,7662,008,970

1,074,685592,619

32,443,514

(961,629)

1,234,818(391,820)

842,998

(118,631)

6,933,600

118,597

$ 6,933,566

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

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2016

Page 81

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. Title I Grants - to account for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing, to meet challenging state academic standards. Professional Development & Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities. Limited English and Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Vocational Education - to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree. Homeless Education - to account for financial assistance received for the education of homeless students. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. E-Rate - To account for financial assistance received for broadband internet and telecommunication costs. Other Federal Projects - to account for financial assistance received for other supplemental federal projects. State Vocational Education - to account for financial assistance received for the preparation of individuals for employment. Other State Projects - to account for financial assistance received for other state projects. School Plant - to account for proceeds from the sale or lease of school property. Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions.

Page 82

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

Page 83


Total assets



Total liabilities



Total fund balances


Classroom Site

$ 1,899,424

551,502

$ 2,450,926

$

23,10423,104

2,427,822

2,427,822

$ 2,450,926

Instructional Improvement

$ 79,208

173,860

$ 253,068

$

253,068

253,068

$ 253,068

Title I Grants

$

545,452

$ 545,452

$ 96,696320,775127,981545,452

$ 545,452

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

JUNE 30, 2016

Page 84

Professional Development

and Technology Grants

$

835,109

$ 835,109

$ 19,292770,67445,143

835,109

$ 835,109

Title IV Grants

$

13,910

$ 13,910

$9,5684,342

13,910

$ 13,910

Limited English & Immigrant

Students

$

11,308

$ 11,308

$ 10,845314149

11,308

$ 11,308

Special Education

Grants

$

699,651

$ 699,651

$698,194

1,457699,651

$ 699,651

Vocational Education

$

1,042,320

$ 1,042,320

$ 97,880944,440

1,042,320

$ 1,042,320

Homeless Education

$ 7,921

13,841

$ 21,762

$ 21,762

21,762

$ 21,762

(Continued)

Page 85


Total assets



Total liabilities



Total fund balances


E-Rate

$

348,874

$ 348,874

$

182,019

166,855

166,855

$ 348,874

Other Federal Projects

$

311,656

$ 311,656

$ 13,026301,818

9,332324,176

(12,520)(12,520)

$ 311,656

State Vocational Education

$ 137,429

$ 137,429

$ 137,429

137,429

$ 137,429


JUNE 30, 2016

Page 86

Other State Projects

$

290,142

$ 290,142

$ 207,17682,966

290,142

$ 290,142

Food Service

$ 5,006119,030

44,0517

$ 168,094

$ 4,50726,947

5,84937,303

130,791

130,791

$ 168,094

Civic Center

$ 509,444

4,818

13,247

$ 527,509

$ 83,065

83,065

444,444

444,444

$ 527,509

Community School

$ 38,824

5,371

891

$ 45,086

$

45,08645,086

$ 45,086

Auxiliary Operations

$ 2,516,070

$ 2,516,070

$15,030

15,030

2,501,040

2,501,040

$ 2,516,070

Gifts and Donations

$ 264,833

$ 264,833

$ 29,274

29,274

235,559

235,559

$ 264,833

(Continued)

Page 87


Total assets



Total liabilities



Total fund balances


Career, Technical and

Vocational Education Projects

$

353

$ 353

$353

353

$ 353

Fingerprint

$ 18,884

$ 18,884

$

18,884

18,884

$ 18,884

Textbooks

$ 144,648

885

$ 145,533

$

145,533

145,533

$ 145,533


JUNE 30, 2016

Page 88

Insurance Refund

$

118,597$ 118,597

$

118,597

118,597

$ 118,597

Joint Technical Education

$ 550,187

7,341153,068

$ 710,596

$ 203,848

3,255207,103

503,493

503,493

$ 710,596

Totals

$ 6,171,878119,030

17,8835,034,744

15,030118,597

$ 11,477,162

$ 924,8003,171,079

265,6984,361,577

182,019

118,5976,827,489

(12,520)6,933,566

$ 11,477,162

Page 89


Total revenues



Capital outlayTotal expenditures








Classroom Site

$ 11,5426,618,020

6,629,562

6,481,455477,795

6,959,250

(329,688)

(329,688)

2,757,510

$ 2,427,822


$ 759677,287

678,046

338,64321,36760,534

126,083

546,627

131,419

131,419

121,649

$ 253,068

Title I Grants

$

4,955,5724,955,572

2,286,8061,864,341

74,9055,174

16,501

414,3694,662,096

293,476

(293,476)(293,476)

$


ALL SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2016

Page 90

Professional Development

and Technology Grants

$

835,110835,110

789,004

789,004

46,106

(46,106)(46,106)

$

Title IV Grants

$

130,461130,461

68,2314,025

30,898

4,20715,196

122,557

7,904

(7,904)(7,904)

$

Limited English & Immigrant

Students

$

82,22582,225

40,52428,723

996

954

10,79281,989

236

(236)(236)

$

Special Education

Grants

$

2,223,2552,223,255

1,486,087719,384

17,4872,222,958

297

(297)(297)

$


$

1,954,7441,954,744

348,162901,26122,879

645,3561,917,658

37,086

(37,086)(37,086)

$

Homeless Education

$

31,96031,960

15,9733,051

11,000

30,024

1,936

(1,936)(1,936)

$

(Continued)

Page 91


Total revenues











E-Rate

$

664,968664,968

130,861

37,102330,150

498,113

166,855

166,855

$ 166,855


$

1,154,7001,154,700

1,014,778119,856

7,98214,805

16,6281,174,049

(19,349)

(4,779)(4,779)

(24,128)

11,608

$ (12,520)


$661,107

661,107

376,16447,781

35180

236,947661,107

$



Page 92


$576,982

576,982

18,706555,625

2,651576,982

$

Food Service

$ 1,008,087

4,629,9725,638,059

5,356,283147

5,356,430

281,629

281,629

(150,838)

$ 130,791

Civic Center

$ 520,633

520,633

138,6015,146

28,784272,370

20,9141,195

132,987599,997

(79,364)

(79,364)

523,808

$ 444,444

Community School

$ 312,909

312,909

200,53798,123

200989

12,886

174312,909

$


$ 1,667,822

1,667,822

1,345,56126,11526,850

1,06852,992

1,452,586

215,236

215,236

2,285,804

$ 2,501,040

Gifts and Donations

$ 88,473

88,473

13,99460,9041,604

1,10010,91188,513

(40)

(40)

235,599

$ 235,559

(Continued)

Page 93


Total revenues











Fingerprint

$ 8,437

8,437

8,437

8,437

10,447

$ 18,884

Textbooks

$ 17,277

17,277

7,0213,690

10,711

6,566

6,566

138,967

$ 145,533

Insurance Refund

$ 118,788

118,788

118,788

118,788

118,597

$ 118,597



Page 94


$ 1,779,226

1,779,226

1,005,968596,19468,426

332,7319,291

425,6332,438,243

(659,017)

(659,017)

1,162,510

$ 503,493

Totals

$ 5,533,9538,533,396

16,662,96730,730,316

15,436,8606,322,385

353,2131,075,659

91,6265,426,7661,914,082

30,620,591

109,725

(391,820)(391,820)

(282,095)

7,097,064

118,597

$ 6,933,566

Page 95

Total revenues












Classroom Site

Budget

$6,543,695

6,543,695

8,360,435777,500

9,137,935

(2,594,240)

(2,594,240)

2,500,000

$ (94,240)

Actual

$ 11,5426,618,020

6,629,562

6,481,455477,795

6,959,250

(329,688)

(329,688)

2,757,510

$ 2,427,822

Variance - Positive

(Negative)

$ 11,54274,325

85,867

1,878,980299,705

2,178,685

2,264,552

2,264,552

257,510

$ 2,522,062

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

BUDGET AND ACTUALALL SPECIAL REVENUE FUNDS


Page 96


Budget

$700,000

700,000

1,000,000

1,000,000

(300,000)

(300,000)

300,000

$

Actual

$ 759677,287

678,046

338,64321,36760,534

126,083

546,627

131,419

131,419

121,649

$ 253,068

Variance - Positive

(Negative)

$ 759(22,713)

(21,954)

661,357(21,367)(60,534)

(126,083)

453,373

431,419

431,419

(178,351)

$ 253,068

Title I Grants

Budget

$

3,580,7552,919,245

6,500,000

(6,500,000)

(6,500,000)

$ (6,500,000)

Actual

$

4,955,5724,955,572

2,286,8061,864,341

74,9055,174

16,501

414,3694,662,096

293,476

(293,476)(293,476)

$

Variance - Positive

(Negative)

$

4,955,5724,955,572

1,293,9491,054,904

(74,905)(5,174)

(16,501)

(414,369)1,837,904

6,793,476

(293,476)(293,476)

6,500,000

$ 6,500,000

(Continued)

Page 97

Total revenues












Professional Development and Technology Grants

Budget

$

1,000,000

1,000,000

(1,000,000)

(1,000,000)

$ (1,000,000)

Actual

$

835,110835,110

789,004

789,004

46,106

(46,106)(46,106)

$

Variance - Positive

(Negative)

$

835,110835,110

210,996

210,996

1,046,106

(46,106)(46,106)

1,000,000

$ 1,000,000




Page 98

Title IV Grants

Budget

$

200,000

200,000

(200,000)

(200,000)

$ (200,000)

Actual

$

130,461130,461

68,2314,025

30,898

4,20715,196

122,557

7,904

(7,904)(7,904)

$

Variance - Positive

(Negative)

$

130,461130,461

131,769(4,025)

(30,898)

(4,207)(15,196)

77,443

207,904

(7,904)(7,904)

200,000

$ 200,000

Limited English & Immigrant Students

Budget

$

200,000

200,000

(200,000)

(200,000)

$ (200,000)

Actual

$

82,22582,225

40,52428,723

996

954

10,79281,989

236

(236)(236)

$

Variance - Positive

(Negative)

$

82,22582,225

159,476(28,723)

(996)

(954)

(10,792)118,011

200,236

(236)(236)

200,000

$ 200,000

(Continued)

Page 99

Total revenues












Special Education Grants

Budget

$

2,500,000

2,500,000

(2,500,000)

(2,500,000)

$ (2,500,000)

Actual

$

2,223,2552,223,255

1,486,087719,384

17,4872,222,958

297

(297)(297)

$

Variance - Positive

(Negative)

$

2,223,2552,223,255

1,013,913(719,384)

(17,487)277,042

2,500,297

(297)(297)

2,500,000

$ 2,500,000




Page 100


Budget

$

1,746,165

1,253,8353,000,000

(3,000,000)

(3,000,000)

$ (3,000,000)

Actual

$

1,954,7441,954,744

348,162901,26122,879

645,3561,917,658

37,086

(37,086)(37,086)

$

Variance - Positive

(Negative)

$

1,954,7441,954,744

(348,162)844,904(22,879)

608,4791,082,342

3,037,086

(37,086)(37,086)

3,000,000

$ 3,000,000

Homeless Education

Budget

$

100,000

100,000

(100,000)

(100,000)

$ (100,000)

Actual

$

31,96031,960

15,9733,051

11,000

30,024

1,936

(1,936)(1,936)

$

Variance - Positive

(Negative)

$

31,96031,960

84,027(3,051)

(11,000)

69,976

101,936

(1,936)(1,936)

100,000

$ 100,000

(Continued)

Page 101

Total revenues












Medicaid Reimbursement

Budget

$

177,952299,073

172,975

650,000

(650,000)

(650,000)

$ (650,000)

Non-GAAP Actual

$

584,108584,108

117,032196,689120,792113,75951,37748,9451,366

649,960

(65,852)

(65,852)

561,888

$ 496,036

Variance - Positive

(Negative)

$

584,108584,108

60,920102,384

(120,792)59,216

(51,377)(48,945)(1,366)

40

584,148

584,148

561,888

$ 1,146,036




Page 102

E-Rate

Budget

$

250,000

1,750,000

2,000,000

(2,000,000)

(2,000,000)

$ (2,000,000)

Actual

$

664,968664,968

130,861

37,102330,150

498,113

166,855

166,855

$ 166,855

Variance - Positive

(Negative)

$

664,968664,968

119,139

(37,102)1,419,850

1,501,887

2,166,855

2,166,855

$ 2,166,855


Budget

$

1,450,000

1,450,000

(1,450,000)

(1,450,000)

$ (1,450,000)

Actual

$

1,154,7001,154,700

1,014,778119,856

7,98214,805

16,6281,174,049

(19,349)

(4,779)(4,779)

(24,128)

11,608

$ (12,520)

Variance - Positive

(Negative)

$

1,154,7001,154,700

435,222(119,856)

(7,982)(14,805)

(16,628)275,951

1,430,651

(4,779)(4,779)

1,425,872

11,608

$ 1,437,480

(Continued)

Page 103

Total revenues













Budget

$

700,000

700,000

(700,000)

(700,000)

$ (700,000)

Actual

$661,107

661,107

376,16447,781

35180

236,947661,107

$

Variance - Positive

(Negative)

$661,107

661,107

323,836(47,781)

(35)(180)

(236,947)38,893

700,000

700,000

$ 700,000




Page 104


Budget

$

700,000

700,000

(700,000)

(700,000)

$ (700,000)

Actual

$576,982

576,982

18,706555,625

2,651576,982

$

Variance - Positive

(Negative)

$576,982

576,982

(18,706)144,375

(2,651)123,018

700,000

700,000

$ 700,000

School Plant

Budget

$ 50,000

50,000

50,000

50,000

$

Non-GAAP Actual

$ 16,186

16,186

16,186

16,186

17,969

$ 34,155

Variance - Positive

(Negative)

$ (33,814)

(33,814)

50,000

50,000

16,186

16,186

17,969

$ 34,155

(Continued)

Page 105

Total revenues












Food Service

Budget

$ 1,140,000

4,560,0005,700,000

6,000,000

6,000,000

(300,000)

(300,000)

500,000

$ 200,000

Actual

$ 1,008,087

4,629,9725,638,059

5,356,283147

5,356,430

281,629

281,629

(150,838)

$ 130,791

Variance - Positive

(Negative)

$ (131,913)

69,972(61,941)

643,717(147)

643,570

581,629

581,629

(650,838)

$ (69,209)




Page 106

Civic Center

Budget

$ 50,000

50,000

152,881

300,431

146,688600,000

(550,000)

(550,000)

450,000

$ (100,000)

Actual

$ 520,633

520,633

138,6015,146

28,784272,37020,914

1,195132,987599,997

(79,364)

(79,364)

523,808

$ 444,444

Variance - Positive

(Negative)

$ 470,633

470,633

14,280(5,146)

(28,784)28,061

(20,914)(1,195)13,701

3

470,636

470,636

73,808

$ 544,444

Community School

Budget

$ 500,000

500,000

500,000

500,000

$

Actual

$ 312,909

312,909

200,53798,123

200989

12,886

174312,909

$

Variance - Positive

(Negative)

$ (187,091)

(187,091)

299,463(98,123)

(200)(989)

(12,886)

(174)187,091

$

(Continued)

Page 107

Total revenues













Budget

$ 1,186,802

1,186,802

3,100,000

3,100,000

(1,913,198)

(1,913,198)

1,913,198

$

Actual

$ 1,667,822

1,667,822

1,345,56126,11526,850

1,06852,992

1,452,586

215,236

215,236

2,285,804

$ 2,501,040

Variance - Positive

(Negative)

$ 481,020

481,020

1,754,439(26,115)(26,850)

(1,068)(52,992)

1,647,414

2,128,434

2,128,434

372,606

$ 2,501,040




Page 108

Gifts and Donations

Budget

$ 250,000

250,000

500,000

500,000

(250,000)

(250,000)

250,000

$

Actual

$ 88,473

88,473

13,99460,904

1,604

1,10010,91188,513

(40)

(40)

235,599

$ 235,559

Variance - Positive

(Negative)

$ (161,527)

(161,527)

(13,994)439,096(1,604)

(1,100)(10,911)411,487

249,960

249,960

(14,401)

$ 235,559

Career, Technical and Vocational Education Projects

Budget

$ 50,000

50,000

50,000

50,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (50,000)

(50,000)

50,000

50,000

$

(Continued)

Page 109

Total revenues












Fingerprint

Budget

$ 10,000

10,000

10,000

10,000

$

Actual

$ 8,437

8,437

8,437

8,437

10,447

$ 18,884

Variance - Positive

(Negative)

$ (1,563)

(1,563)

10,000

10,000

8,437

8,437

10,447

$ 18,884




Page 110

Textbooks

Budget

$

100,000

100,000

(100,000)

(100,000)

100,000

$

Actual

$ 17,277

17,277

7,0213,690

10,711

6,566

6,566

138,967

$ 145,533

Variance - Positive

(Negative)

$ 17,277

17,277

92,979(3,690)

89,289

106,566

106,566

38,967

$ 145,533

Litigation Recovery

Budget

$ 400,000

400,000

500,000500,000

(100,000)

(100,000)

100,000

$

Non-GAAP Actual

$ 4,894

4,894

28,74228,742

(23,848)

(23,848)

95,582

$ 71,734

Variance - Positive

(Negative)

$ (395,106)

(395,106)

471,258471,258

76,152

76,152

(4,418)

$ 71,734

(Continued)

Page 111

Total revenues












Indirect Costs

Budget

$

750,000

750,000

(750,000)

200,000

200,000

(550,000)

(550,000)

$ (1,100,000)

Non-GAAP Actual

$ 4,147

4,147

487,5276

234,746

11,521

733,800

(729,653)

391,820

391,820

(337,833)

1,537,412

$ 1,199,579

Variance - Positive

(Negative)

$ 4,147

4,147

262,473(6)

(234,746)

(11,521)

16,200

20,347

191,820

191,820

212,167

2,087,412

$ 2,299,579




Page 112

Insurance Refund

Budget

$ 250,000

250,000

250,000

250,000

$

Actual

$ 118,788

118,788

118,788

118,788

118,597

$ 118,597

Variance - Positive

(Negative)

$ (131,212)

(131,212)

131,212

131,212

118,597

$ 118,597

Grants and Gifts to Teachers

Budget

$ 25,000

25,000

25,000

25,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (25,000)

(25,000)

25,000

25,000

$

(Continued)

Page 113

Total revenues












Advertisement

Budget

$ 25,000

25,000

25,000

25,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (25,000)

(25,000)

25,000

25,000

$




Page 114


Budget

$ 1,750,000

1,750,000

1,100,000750,000

400,000

750,0003,000,000

(1,250,000)

(1,250,000)

1,250,000

$

Actual

$ 1,779,226

1,779,226

1,005,968596,19468,426

332,7319,291

425,6332,438,243

(659,017)

(659,017)

1,162,510

$ 503,493

Variance - Positive

(Negative)

$ 29,226

29,226

94,032153,806(68,426)

67,269(9,291)

324,367561,757

590,983

590,983

(87,490)

$ 503,493

Totals

Budget

$ 5,686,8027,243,6954,560,000

17,490,497

24,582,0238,691,983

2,673,406

6,000,0002,650,523

44,597,935

(27,107,438)

200,000

200,000

(26,907,438)

6,813,198

$ (20,094,240)

Non-GAAP Actual

$ 5,559,1808,533,396

17,247,07531,339,651

16,041,4196,519,080

708,7511,189,418

154,5245,475,7111,944,190

32,033,093

(693,442)

391,820(391,820)

(693,442)

9,309,915

118,597

$ 8,735,070

Variance - Positive

(Negative)

$ (127,622)1,289,701

12,687,07513,849,154

8,540,6042,172,903(708,751)1,483,988(154,524)

524,289706,333

12,564,842

26,413,996

191,820(391,820)(200,000)

26,213,996

2,496,717

118,597

$ 28,829,310

Page 115


Page 116

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.

Page 117

Total revenues

Revenues:Other localProperty taxes

Expenditures:Debt service -


Total expenditures


Other financing sources (uses):Transfer in





Debt Service

Budget

$18,748,70118,748,701

15,815,0004,185,000

20,000,000

(1,251,299)

(1,251,299)

26,023

$ (1,225,276)

Actual

$ 91,17019,094,54119,185,711

15,815,0003,175,621

18,990,621

195,090

240,921240,921

436,011

864,477

$ 1,300,488

Variance - Positive

(Negative)

$ 91,170345,840437,010

1,009,3791,009,379

1,446,389

240,921240,921

1,687,310

838,454

$ 2,525,764


BUDGET AND ACTUALALL DEBT SERVICE FUNDSYEAR ENDED JUNE 30, 2016

Page 118

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

Page 119

ASSETSCash and investments

Total assets

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payableTotal liabilities

Fund balances:Total fund balances

Total liabilities and fund balances

Insurance Proceeds

$ 27,605$ 27,605

$ 27,60527,605

$ 27,605

Totals

$ 27,605$ 27,605

$ 27,60527,605

$ 27,605

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

JUNE 30, 2016

Page 120


Page 121

Revenues:Other localState aid and grants

Total revenues


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



Total expenditures


Other financing sources (uses):Transfer in





Insurance Proceeds

$ 727,825

727,825

10,420787150

43,1186,256

71,144

131,875

595,950

595,950

(595,950)

$

Energy and Water Savings

$

1,074,685592,619

1,667,304

(1,667,304)

1,234,8181,234,818

(432,486)

432,486

$

Building Renewal Grant

$23,74423,744

23,744

23,744

$


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2016

Page 122

Totals

$ 727,82523,744

751,569

10,420787150

43,1186,256

94,888

1,074,685592,619

1,822,923

(1,071,354)

1,234,8181,234,818

163,464

(163,464)

$

Page 123

Total revenues






Total expenditures







Insurance Proceeds

Budget

$ 1,000,000

1,000,000

1,000,000

1,000,000

$

Actual

$ 727,825

727,825

10,420787150

43,1186,256

71,144

131,875

595,950

595,950

(595,950)

$

Variance - Positive

(Negative)

$ (272,175)

(272,175)

(10,420)(787)(150)

(43,118)(6,256)

928,856

868,125

595,950

595,950

(595,950)

$


BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS


Page 124

Unrestricted Capital Outlay

Budget

$ 5,000

867,393872,393

2,150,131

169,14015,855

2,335,126

(1,462,733)

(1,462,733)

1,127,607

$ (335,126)

Non-GAAP Actual

$ 3,474482,461

1,086,5181,572,453

987,912

169,14015,855

1,172,907

399,546

399,546

973,949

$ 1,373,495

Variance - Positive

(Negative)

$ (1,526)482,461219,125700,060

1,162,219

1,162,219

1,862,279

1,862,279

(153,658)

$ 1,708,621

Bond Building

Budget

$

25,000,000

25,000,000

(25,000,000)

8,500,000

8,500,000

(16,500,000)

16,500,000

$

Actual

$ 26,172

26,172

11,790,440

169,17611,959,616

(11,933,444)

(240,921)8,435,000

352,7898,546,868

(3,386,576)

6,796,621

$ 3,410,045

Variance - Positive

(Negative)

$ 26,172

26,172

13,209,560

(169,176)13,040,384

13,066,556

(240,921)(65,000)352,78946,868

13,113,424

(9,703,379)

$ 3,410,045

(Continued)

Page 125

Total revenues






Total expenditures







Gifts and Donations - Capital

Budget

$ 50,000

50,000

50,000

50,000

$

Actual

$

$

Variance - Positive

(Negative)

$ (50,000)

(50,000)

50,000

50,000

$




Page 126

Energy and Water Savings

Budget

$ 1,320,000

1,320,000

1,074,685595,315

1,670,000

(350,000)

(350,000)

350,000

$

Actual

$

1,074,685592,619

1,667,304

(1,667,304)

1,234,818

1,234,818

(432,486)

432,486

$

Variance - Positive

(Negative)

$ (1,320,000)

(1,320,000)

2,696

2,696

(1,317,304)

1,234,818

1,234,818

(82,486)

82,486

$

Building Renewal Grant

Budget

$

150,000150,000

150,000

150,000

$

Actual

$

23,74423,744

23,744

23,744

$

Variance - Positive

(Negative)

$

(126,256)(126,256)

126,256

126,256

$

(Continued)

Page 127

Total revenues






Total expenditures







Totals

Budget

$ 2,375,000

1,017,3933,392,393

28,350,131

1,243,825611,170

30,205,126

(26,812,733)

8,500,000

8,500,000

(18,312,733)

17,977,607

$ (335,126)

Non-GAAP Actual

$ 757,471482,461

1,110,2622,350,194

10,420787150

43,1186,256

12,873,240

1,243,825608,474169,176

14,955,446

(12,605,252)

1,234,818(240,921)8,435,000

352,7899,781,686

(2,823,566)

7,607,106

$ 4,783,540

Variance - Positive

(Negative)

$ (1,617,529)482,46192,869

(1,042,199)

(10,420)(787)(150)

(43,118)(6,256)

15,476,891

2,696(169,176)

15,249,680

14,207,481

1,234,818(240,921)

(65,000)352,789

1,281,686

15,489,167

(10,370,501)

$ 5,118,666




Page 128

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

Page 129

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


Beginning EndingBalance Additions Deductions Balance

STUDENT ACTIVITIES FUND

AssetsCash and investments $ 1,283,684 $ 3,797,815 $ 3,642,901 $ 1,438,598

Total assets $ 1,283,684 $ 3,797,815 $ 3,642,901 $ 1,438,598

Liabilities

Due to student groups

Apollo High School $ 95,025 $ 526,957 $ 501,543 $ 120,439

Cortez High School 73,794 221,680 210,380 85,094

Glendale High School 109,390 283,294 274,915 117,769

Greenway High School 167,225 577,040 563,172 181,093

Independence High School 54,360 332,211 270,048 116,523

Moon Valley High School 136,069 519,810 491,648 164,231

Sunnyslope High School 215,833 466,536 468,114 214,255

Thunderbird High School 240,787 478,706 481,632 237,861

Washington High School 191,201 391,581 381,449 201,333

Total liabilities $ 1,283,684 $ 3,797,815 $ 3,642,901 $ 1,438,598

Page 130

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.

Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to five percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits.

Page 131

2016 2015 2014 2013 2012Net Position:

Net investment in capital assets 73,647,569$ 68,571,880$ 65,519,857$ 71,522,904$ 72,717,622$ Restricted 9,978,544 10,735,131 12,156,390 14,157,650 14,231,302 Unrestricted (106,328,746) (107,574,564) 14,586,455 11,748,023 13,471,826

Total net position (22,702,633)$ (28,267,553)$ 92,262,702$ 97,428,577$ 100,420,750$

2011 2010 2009 2008 2007Net Position:

Net investment in capital assets 82,831,958$ 81,208,024$ 77,528,552$ 76,283,953$ 75,353,598$ Restricted 13,006,076 5,410,076 6,327,344 7,073,274 8,123,977 Unrestricted 15,425,903 26,315,868 23,270,954 26,783,596 20,848,604

Total net position 111,263,937$ 112,933,968$ 107,126,850$ 110,140,823$ 104,326,179$

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

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

LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

Page 132

2016 2015 2014 2013 2012

Instruction 78,117,947$ 80,760,277$ 85,631,212$ 78,842,960$ 83,521,195$ Support services - students and staff 19,580,900 18,621,487 16,471,428 16,684,162 16,511,684 Support services - administration 9,887,794 11,175,762 10,294,806 11,078,706 11,150,842 Operation and maintenance of plant services 16,533,064 16,464,033 16,130,826 17,036,763 17,163,902 Student transportation services 4,518,602 5,468,997 4,762,011 5,022,715 5,083,748 Operation of non-instructional services 6,684,502 6,777,999 6,555,844 6,211,470 6,128,182 Interest on long-term debt 3,632,883 3,960,593 4,212,301 3,425,549 3,304,805

Total expenses 138,955,692 143,229,148 144,058,428 138,302,325 142,864,358

Program RevenuesCharges for services:

Instruction 3,284,776 6,004,775 3,309,228 3,016,730 3,435,111 Operation of non-instructional services 1,008,091 1,125,315 1,164,804 1,181,326 1,347,068 Other activities 1,249,866 1,413,698 1,309,266 1,806,638 1,614,832

Operating grants and contributions 15,790,506 15,957,107 14,828,503 15,549,564 16,393,238 Capital grants and contributions 1,344,377 2,417,024 2,193,458 1,187,994 1,514,210

Total program revenues 22,677,616 26,917,919 22,805,259 22,742,252 24,304,459

Net (Expense)/Revenue (116,278,076)$ (116,311,229)$ (121,253,169)$ (115,560,073)$ (118,559,899)$

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)

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

Source: Note:

LAST TEN FISCAL YEARS(Accrual basis of accounting)


Expenses

Page 133

2011 2010 2009 2008 2007Expenses

Instruction 76,512,201$ 79,696,099$ 83,091,797$ 81,886,676$ 79,109,165$ Support services - students and staff 16,457,842 15,171,959 14,690,034 14,470,210 13,148,057 Support services - administration 10,388,425 10,447,009 10,557,989 9,915,076 9,253,468 Operation and maintenance of plant services 17,427,231 16,824,102 17,791,027 18,195,724 17,045,674 Student transportation services 4,400,204 4,120,576 4,380,713 4,296,129 3,797,317 Operation of non-instructional services 5,868,445 5,949,267 5,583,176 5,374,049 5,047,045 Interest on long-term debt 3,712,985 4,161,608 4,560,667 4,996,778 5,877,283

Total expenses 134,767,333 136,370,620 140,655,403 139,134,642 133,278,009

Program RevenuesCharges for services:

Instruction 4,667,193 3,826,784 5,283,590 5,897,677 3,874,662 Operation of non-instructional services 1,416,067 3,236,349 1,780,752 2,136,321 4,410,043 Other activities 435,170 433,974 403,877 434,902 481,805

Operating grants and contributions 18,483,695 13,971,040 11,924,732 10,773,122 10,372,374 Capital grants and contributions 2,529,106 3,252,134 1,319,350 1,487,994 2,007,476

Total program revenues 27,531,231 24,720,281 20,712,301 20,730,016 21,146,360


(Concluded)

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

(Accrual basis of accounting)LAST TEN FISCAL YEARS


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

Page 134

2016 2015 2014 2013 2012


General Revenues: Taxes:

Property taxes, levied for general purposes 34,514,938 37,276,839 37,765,761 38,423,129 37,864,238 Property taxes, levied for debt service 19,025,570 18,166,723 17,103,221 16,401,494 14,200,832 Property taxes, levied for capital outlay 533,170 1,352,839

Investment income 446,623 231,113 256,701 164,202 229,392 Unrestricted county aid 5,285,254 5,052,003 4,983,135 4,779,193 4,883,397 Unrestricted state aid 61,453,333 57,506,823 56,425,097 52,530,318 49,001,621 Unrestricted federal aid 584,108 874,648 279,751 269,564 184,393

Total general revenues 121,842,996 119,108,149 116,813,666 112,567,900 107,716,712

Changes in Net Position 5,564,920$ 2,796,920$ (4,439,503)$ (2,992,173)$ (10,843,187)$


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

(Continued)


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

LAST TEN FISCAL YEARS(Accrual basis of accounting)

Page 135

2011 2010 2009 2008 2007


General Revenues: Taxes:

Property taxes, levied for general purposes 35,513,430 45,041,668 44,761,841 42,171,029 39,000,253 Property taxes, levied for debt service 14,830,489 14,045,415 13,008,629 13,189,880 12,146,164 Property taxes, levied for capital outlay 523,661 374,110 1,562,790 1,434,009 1,585,838

Investment income 194,500 343,373 1,043,095 1,601,145 1,841,569 Unrestricted county aid 4,525,886 3,950,808 41,507 Unrestricted state aid 49,087,899 49,294,432 56,552,774 65,823,207 64,202,679 Unrestricted federal aid 890,206 4,407,651

Total general revenues 105,566,071 117,457,457 116,929,129 124,219,270 118,818,010

Changes in Net Position (1,670,031)$ 5,807,118$ (3,013,973)$ 5,814,644$ 6,686,361$

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

(Concluded)

(Accrual basis of accounting)

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


Source: Notes:

GENERAL REVENUES AND TOTAL CHANGES IN NET POSITIONLAST TEN FISCAL YEARS


Page 136

2016 2015 2014 2013 2012General Fund:

Nonspendable 563,183$ $ $ 43,198$ 143,422$ Restricted 1,373,495 973,949 2,231,096 2,481,616 2,661,692 Unassigned 5,327,779 5,131,075 5,039,954 5,075,285 6,473,998 Reserved Unreserved

Total General Fund 7,264,457$ 6,105,024$ 7,271,050$ 7,600,099$ 9,279,112$

All Other Governmental Funds:Nonspendable 118,597$ $ $ $ $ Restricted 11,538,022 15,341,486 31,350,457 17,358,271 23,400,794 Unassigned (12,520) (746,788) Reserved Unreserved, reported in:

Special revenue funds Capital projects funds Debt service fund

Total all other governmental funds 11,644,099$ 14,594,698$ 31,350,457$ 17,358,271$ 23,400,794$

(Continued)

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


LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 137

2011 2010 2009 2008 2007General Fund:

Nonspendable 144,418$ $ $ $ $ Restricted 1,859,084 Unassigned 8,330,554 Reserved 1,294,676 1,514,225 1,042,351 1,026,297 Unreserved 5,452,000 (1,283,461) 1,929,331 911,875

Total General Fund 10,334,056$ 6,746,676$ 230,764$ 2,971,682$ 1,938,172$

All Other Governmental Funds:Restricted 12,875,813 Unassigned Reserved 60,895 55,554 74,883 Unreserved, reported in:

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

Total all other governmental funds 12,875,813$ 17,891,296$ 24,157,515$ 27,004,129$ 29,462,883$

Source:Note:

(Concluded)

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


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


Page 138

2016 2015 2014 2013 2012Federal sources:

Federal grants 12,617,103$ 13,740,107$ 12,573,933$ 12,529,067$ 12,333,073$ Education Jobs 1,294,845 National School Lunch Program 4,629,972 3,917,114 4,063,662 3,790,118 3,906,184 Total federal sources 17,247,075 17,657,221 16,637,595 16,319,185 17,534,102

State sources:State equalization assistance 54,134,282 50,780,535 49,613,883 46,946,869 44,208,984 State grants 1,238,089 1,151,164 519,020 681,854 602,092 School Facilities Board 23,744 Other revenues 7,295,307 6,629,290 6,811,216 5,516,877 4,792,637 Total state sources 62,691,422 58,560,989 56,944,119 53,145,600 49,603,713

Local sources:Property taxes 55,632,898 55,394,716 54,913,206 54,453,151 53,537,575 County aid 5,285,254 5,052,003 4,983,135 4,779,193 4,883,397 Food service sales 1,008,091 1,125,315 1,164,804 1,181,326 1,347,068 Investment income 261,660 190,687 263,696 123,780 199,394 Other revenues 5,236,240 6,832,454 4,648,999 4,949,123 5,117,826 Total local sources 67,424,143 68,595,175 65,973,840 65,486,573 65,085,260 Total revenues 147,362,640$ 144,813,385$ 139,555,554$ 134,951,358$ 132,223,075$

(Continued)


(Modified accrual basis of accounting)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS REVENUES


Page 139

2011 2010 2009 2008 2007Federal sources:

Federal grants 14,947,393$ 17,014,604$ 9,058,259$ 8,880,521$ 9,046,411$ State Fiscal Stabilization (ARRA) 672,657 Education Jobs 1,651,769 National School Lunch Program 3,727,349 3,493,989 2,902,406 2,393,767 2,086,601 Total federal sources 20,999,168 20,508,593 11,960,665 11,274,288 11,133,012

State sources:State equalization assistance 44,800,422 44,644,392 50,699,942 55,076,675 52,585,167 State grants 679,042 810,382 1,147,341 986,828 708,350 School Facilities Board 1,301,233 3,915,505 Other revenues 4,574,640 4,863,402 5,834,837 9,003,197 7,702,007 Total state sources 50,054,104 50,318,176 57,682,120 66,367,933 64,911,029

Local sources:Property taxes 51,838,935 56,837,104 56,955,277 56,396,723 53,237,457 County aid 4,525,886 3,950,808 41,507 Food service sales 1,416,067 1,568,075 1,780,752 2,136,321 2,107,289 Investment income 154,108 303,310 906,424 1,510,370 1,717,534 Other revenues 5,152,219 5,929,032 5,823,543 6,332,579 7,197,709 Total local sources 63,087,215 68,588,329 65,465,996 66,375,993 64,301,496 Total revenues 134,140,487$ 139,415,098$ 135,108,781$ 144,018,214$ 140,345,537$

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

(Concluded)

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

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205GOVERNMENTAL FUNDS REVENUES


Page 140

2016 2015 2014 2013 2012


Instruction 68,525,678$ 67,162,259$ 66,779,255$ 65,814,866$ 64,124,472$ Support services - students and staff 18,389,282 17,059,899 15,475,648 15,297,385 14,665,021 Support services - administration 9,448,422 10,146,560 9,703,132 9,899,853 9,825,148 Operation and maintenance of plant services 16,066,483 15,747,597 15,829,716 16,212,502 16,367,662 Student transportation services 4,225,590 4,612,160 4,364,117 4,363,831 3,880,454 Operation of non-instructional services 6,138,394 6,079,435 5,982,059 5,570,195 5,433,331

Capital outlay 14,817,430 21,434,343 32,220,582 13,188,198 28,478,258 Debt service -

Principal retirement 17,058,825 16,634,790 15,854,070 14,110,460 11,112,891 Interest, premium and fiscal charges 3,784,095 4,089,756 4,341,464 3,428,581 3,260,305 Bond issuance costs 169,176 384,735 235,300 607,693

Total expenditures 158,623,375$ 162,966,799$ 170,934,778$ 148,121,171$ 157,755,235$

Expenditures for capitalized assets 11,140,849$ 13,376,586$ 29,543,313$ 10,696,631$ 19,293,013$

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

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

(Continued)

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



Page 141

2011 2010 2009 2008 2007


Instruction 64,906,264$ 64,939,128$ 68,547,107$ 69,122,480$ 67,750,209$ Support services - students and staff 15,288,444 14,096,986 13,596,691 13,787,354 12,360,293 Support services - administration 9,517,615 9,311,974 9,403,770 9,011,279 8,680,068 Operation and maintenance of plant services 15,655,937 16,065,689 17,380,775 17,751,427 16,621,124 Student transportation services 3,724,180 3,516,154 3,711,663 3,748,614 3,349,652 Operation of non-instructional services 5,273,236 5,220,842 5,093,620 4,852,733 4,624,612

Capital outlay 6,639,595 11,081,662 7,888,681 13,949,543 25,054,723 Debt service -

Principal retirement 11,052,541 10,656,562 10,214,474 9,464,635 8,534,196 Interest, premium and fiscal charges 3,712,985 4,161,608 5,336,747 4,996,778 5,815,008 Bond issuance costs

Total expenditures 135,770,797$ 139,050,605$ 141,173,528$ 146,684,843$ 152,789,885$

Expenditures for capitalized assets 868,756$ 6,450,721$ 3,999,164$ 8,420,592$ 20,501,173$

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

Source:

(Concluded)

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




Page 142

2016 2015 2014 2013 2012

Excess (deficiency) of revenues over expenditures (11,260,735)$ (18,153,414)$ (31,379,224)$ (13,169,813)$ (25,532,160)$

Other financing sources (uses):General obligation bonds issued 8,435,000 44,000,000 5,125,000 22,440,000 Premium on sale of bonds 352,789 595,619 4,014,785 563,193 Capital lease agreements 231,629 489,940 141,893 12,000,000 Transfers in 1,867,559 1,773,535 2,067,327 1,253,086 629,601 Transfers out (1,867,559) (1,773,535) (2,067,327) (1,253,086) (629,601) Issuance of refunding bonds 50,495,000 Payment to refunded bond escrow agent (54,228,177)

Total other financing sources (uses) 8,787,789 231,629 45,085,559 5,548,501 35,003,193

Changes in fund balances (2,472,946)$ (17,921,785)$ 13,706,335$ (7,621,312)$ 9,471,033$

2011 2010 2009 2008 2007

Excess (deficiency) of revenues over expenditures (1,630,310)$ 364,493$ (6,064,747)$ (2,666,629)$ (12,444,348)$

Other financing sources (uses):General obligation bonds issued Premium on sale of bonds Capital lease agreements 213,753 165,644 1,244,630 Transfers in 1,141,385 381,315 496,641 287,705 918,463 Transfers out (1,141,385) (381,315) (496,641) (287,705) (918,463)

Total other financing sources (uses) 213,753 165,644 1,244,630

Changes in fund balances (1,416,557)$ 530,137$ (6,064,747)$ (1,421,999)$ (12,444,348)$


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



(Modified accrual basis of accounting)

Page 143

Class 2016 2015 2014 2013 2012

Commercial, Industrial, Utilities and Mining $ 541,331,130 $ 549,271,453 $ 564,452,948 $ 630,413,894 $ 690,178,704

Agricultural and Vacant 25,190,672 23,847,520 29,590,751 34,958,819 41,459,228

Residential (Owner Occupied) 530,298,428 511,164,324 482,112,023 572,905,669 676,105,997

Residential (Rental) 251,701,944 232,460,158 205,966,262 191,990,564 224,635,000

Railroad, Private Cars and Airlines 1,512,721 1,610,083 1,479,206 1,566,518 1,380,945

Historical Property 382,124 424,720 379,667 393,019 268,869

Certain Government Property Improvements 101,399 101,963 71,136 79,365 93,427

Total $ 1,350,518,418 $ 1,318,880,221 $ 1,284,051,993 $ 1,432,307,848 $ 1,634,122,170

Gross Full Cash Value $ 16,758,728,677 $ 13,307,316,052 $ 11,951,889,810 $ 13,036,334,497 $ 14,871,250,140

Ratio of Net Limited Assessed Value to Gross Full Cash Value 8% 10% 11% 11% 11%Total Direct Rate 4.46 4.42 4.58 4.10 3.53

Class 2011 2010 2009 2008 2007



Residential (Owner Occupied) 905,575,989 1,181,955,906 1,079,217,763 933,361,976 823,983,141




Certain Government Property Improvements - - - - -

Total $ 2,120,524,072 $ 2,416,157,641 $ 2,222,057,420 $ 1,981,959,464 $ 1,799,850,656

Gross Full Cash Value $ 19,664,740,062 $ 24,798,056,858 $ 25,399,826,339 $ 20,980,606,849 $ 15,538,728,841

Ratio of Net Limited Assessed Value to Gross Full Cash Value 11% 10% 9% 9% 12%

Total Direct Rate 2.73 2.60 2.73 3.03 3.33

Source: Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015

(Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. Primary taxes are used for general District operations. Secondary taxes are used to service District bonded debt requirement and other voter-approved overrides.



Fiscal Year

Fiscal Year

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

NET LIMITED ASSESSED VALUE AND FULL CASH VALUE OF TAXABLE PROPERTY BY CLASS

Page 144

Class 2016 2015 2014 2013 2012



Residential (Owner Occupied) 781,111,093 558,656,703 483,626,031 574,520,495 677,202,606




Certain Government Property Improvements 107,594 103,652 71,136 79,365 93,427

Total $ 1,733,704,874 $ 1,403,097,844 $ 1,290,863,099 $ 1,435,960,904 $ 1,638,565,455

Gross Full Cash Value 16,758,728,677$ 13,307,316,052$ 11,951,889,810$ 13,036,334,497$ 14,871,250,140$

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value 10% 11% 11% 11% 11%


Class 2011 2010 2009 2008 2007

Commercial, Industrial, Utilities and Mining $ 929,277,519 $ 1,019,303,793 $ 945,098,205 $ 847,320,913 $ 776,910,451


Residential (Owner Occupied) 906,857,896 1,322,864,086 1,485,931,153 1,226,136,967 834,535,566



Historical Property 1,220,486 1,111,534 511,744 383,781 60,177

Certain Government Property Improvements - - - - -

Total $ 2,216,354,285 $ 2,794,704,869 $ 2,869,219,100 $ 2,422,636,313 $ 1,886,109,179

Gross Full Cash Value 19,664,740,062$ 24,798,056,858$ 25,399,826,339$ 20,980,606,849$ 15,538,728,841$

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value 11% 11% 11% 12% 12%


Source: Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both

primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the District's bonding capacity and as the ceiling for net limited assessed value.


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

Fiscal Year

Fiscal Year

LAST TEN FISCAL YEARSNET FULL CASH ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS

Page 145

Class 2016 2015 2014 2013 2012

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

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 15 16 15 15 15

Class 2011 2010 2009 2008 2007

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

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 17 18 20 21 22

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

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

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


Fiscal Year

Fiscal Year

Page 146

Fiscal Year

Ended MaricopaJune 30 County Primary Secondary Total

2016 0.51 1.36 1.49 2.20 1.82 5.84 5.79 0.07 2.47 1.98 4.46 2015 0.51 1.32 1.52 2.15 1.82 6.46 5.70 0.08 2.59 1.83 4.42 2014 0.51 1.28 1.53 2.29 1.82 7.30 6.02 0.06 2.69 1.89 4.58 2013 0.47 1.24 1.38 1.90 1.82 6.94 4.71 0.05 2.46 1.64 4.10 2012 0.43 1.24 1.21 1.60 1.82 6.41 4.61 0.05 2.24 1.29 3.53 2011 0.36 1.05 0.97 1.60 1.82 4.77 3.38 0.05 1.68 1.05 2.73 2010 0.33 0.66 0.88 1.60 1.82 3.99 3.08 0.05 1.84 0.76 2.60 2009 1.03 0.94 1.60 1.82 4.31 3.69 0.05 2.02 0.71 2.73 2008 1.10 0.98 1.62 1.82 5.38 3.84 0.05 2.20 0.83 3.03 2007 1.18 1.06 1.72 1.82 6.51 4.12 0.05 2.31 1.02 3.33

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

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


Source:

District Direct Rates

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

Overlapping Rates

State Equalization

Community College District

City of Glendale

City of Phoenix

Glendale Elementary

School District No. 40

West-MEC No. 402

Washington Elementary

School District No. 6

Page 147

Net Limited Assessed Valuation

Net Full Cash Assessed Valuation

Arizona Public Service Company 110,160,954$ 6.35 % $ 67,522,709 3.58 %Qwest Corporation 13,889,614 0.80 42,437,457 Canyon Corporate Plaza Properties LLC 6,475,000 0.37VHS of Phoenix, Inc 5,994,402 0.35 7,733,048 0.41 PDG America Properties LLC 5,967,462 0.34M2 Phoenix 1222 LLC 5,599,129 0.32Southwest Gas Corp. 5,106,249 0.29Bay Pacific Phoenix Coporate Center LLC 4,482,470 0.26Granite Black Canyon Holdings LLC 3,812,609 0.22Arizona Public Service Company (CWIP) 3,685,284 0.21TP Racing LLP 11,316,655 0.60 Metrocenter Associates LLC 9,807,768 0.52 Metropolitan Life Insurance Company 9,241,935 0.49 Transwestern Phoenix Corporate Center 7,544,437 0.40 Metrorising Ams Owner LLC 7,167,215 0.38 Bell Towne Centre Associates LLC 6,601,382 0.35

Total 165,173,173$ 9.52 % 169,372,606$ 6.73 %

Source:Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning

with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value.

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

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PRINCIPAL PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Percentage of District's Net

Limited Assessed Valuation

Percentage of District's Net Full Cash Assessed

Valuation

2007

Taxpayer

2016

Page 148

FiscalYear Taxes Levied Collections in

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

2016 60,242,707$ 58,895,925$ 97.76 % $ 58,895,925$ 97.76 %2015 59,924,837 57,169,148 95.40 2,710,891 59,880,039 99.932014 58,680,826 55,790,795 95.07 2,861,583 58,652,378 99.952013 58,908,471 55,691,901 94.54 3,207,397 58,899,298 99.982012 57,541,427 54,278,035 94.33 2,773,606 57,051,641 99.152011 57,552,868 54,410,329 94.54 3,136,546 57,546,875 99.992010 65,875,793 59,204,539 89.87 3,991,147 63,195,686 95.932009 65,182,598 60,417,389 92.69 4,029,503 64,446,892 98.872008 63,860,753 61,502,222 96.31 2,355,287 63,857,509 99.992007 60,571,827 58,637,059 96.81 1,931,411 60,568,470 99.99

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

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


Collected to the End

Page 149

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

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

2016 104,676,876$ 1,544,832$ 103,132,044$ 0.62 % 314$ 8,492,995$ 113,169,871$ 0.68 % 345$ N/A %2015 112,246,935 1,177,792 111,069,143 0.83 342 9,736,820 121,983,755 0.92 375 0.07 2014 124,390,000 1,492,224 122,897,776 1.03 378 10,679,981 135,069,981 1.13 416 0.09 2013 93,475,000 2,229,306 91,245,694 0.70 281 11,344,111 104,819,111 0.80 323 0.07 2012 99,365,000 1,477,668 97,887,332 0.66 301 12,227,678 111,592,678 0.75 343 0.08 2011 87,505,000 10,580,000 76,925,000 0.39 237 325,569 87,830,569 0.45 270 0.06 2010 97,635,000 10,130,000 87,505,000 0.35 230 584,357 98,219,357 0.40 258 0.07 2009 107,340,000 9,705,000 97,635,000 0.38 257 945,275 108,285,275 0.43 285 0.08 2008 116,090,000 8,750,000 107,340,000 0.51 290 1,454,749 117,544,749 0.56 318 0.09 2007 123,965,000 7,875,000 116,090,000 0.75 322 924,754 124,889,754 0.80 347 0.10

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


General Obligation Bonds

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


Total Outstanding Debt

General Obligation

Bonds

Amounts Restricted

for PrincipalCapital Leases

Page 150

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Overlapping:Maricopa County Community College District 593,820,000$ 3.90 % 23,158,980$ Maricopa County Special Healthcare District 106,000,000 3.90 4,134,000$ City of Glendale 153,590,000 22.00 33,789,800 City of Phoenix 1,482,096,582 10.16 150,581,013 Washington Elementary School District No. 6 89,165,000 100.00 89,165,000 Glendale Elementary School District No. 40 28,590,000 100.00 28,590,000 Western Maricopa Education Center (West-Mec) 72,995,000 10.56 7,708,272

Subtotal, Overlapping Debt 337,127,065

Direct:Glendale Union High School District No. 205 113,169,871

Total Direct and Overlapping Governmental Activities Debt 450,296,936$

Net Direct General Obligation Bonded DebtAs a Percentage of Net Limited Assessed Valuation 5.92 %

Net Direct and Overlapping General Bonded DebtPer Capita 1,339$ As a Percentage of Net Limited Assessed Valuation 25.37 %As a Percentage of Estimated Gross Full Cash Value 2.62 %

Source:

Notes: 1)

2)

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

Estimated percentage of debt outstanding applicable to the District is calculated based on a portionof the District's net limited assessed valuation as a percentage of the net limited assessed valuation ofthe overlapping jurisdiction.Outstanding debt as of June 30, 2015 is presented for the overlapping governments as this is the most recent available information.

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

JUNE 30, 2016

Governmental Unit

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Page 151

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2016: Total Legal Debt Margin Calculation for Fiscal Year 2016:Net full cash assessed valuation 1,733,704,874$ Net full cash assessed valuation 1,733,704,874$ Debt limit (10% of assessed value) 173,370,487 Debt limit (15% of assessed value) 260,055,731 Debt applicable to limit 102,665,000 Debt applicable to limit 102,665,000 Legal debt margin 70,705,487$ Legal debt margin 157,390,731$

2016 2015 2014 2013 2012

Debt Limit 260,055,731$ 210,464,677$ 193,629,465$ 215,394,136$ 245,784,818$

Total net debt applicable to limit 102,665,000 109,690,000 124,390,000 93,475,000 99,365,000

Legal debt margin 157,390,731$ 100,774,677$ 69,239,465$ 121,919,136$ 146,419,818$

Total net debt applicable to the limit as a percentage of debt limit 39% 52% 64% 43% 40%

2011 2010 2009 2008 2007

Debt Limit 332,453,143$ 419,205,730$ 430,382,865$ 363,395,447$ 282,916,377$

Total net debt applicable to limit 87,505,000 97,635,000 107,340,000 116,090,000 123,965,000

Legal debt margin 244,948,143$ 321,570,730$ 323,042,865$ 247,305,447$ 158,951,377$

Total net debt applicable to the limit as a percentage of debt limit 26% 23% 25% 32% 44%

Source:Notes: 1)

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

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

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




Page 152

Estimated

Year Population (thousands)

2015 4,076,439 $ N/A $ N/A % 328,488 2014 4,087,191 168,483,421 41,222 325,000 2013 3,944,859 154,926,697 39,273 325,000 2012 3,824,058 147,374,500 38,538 325,000 2011 3,843,370 142,864,275 37,352 325,000 2010 3,817,117 142,091,618 35,319 325,000 2009 4,023,331 147,122,078 37,168 380,000 2008 4,338,500 139,665,253 36,135 380,000 2007 3,907,492 132,423,154 35,046 370,000 2006 3,791,675 120,716,738 33,178 360,000

Sources: The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.The source of the "Population" and "Unemployment Rate" information from 2006 through 2010 is theUniversity of Arizona, Eller College of Management, Economic and Business Research Center. For 2011through 2015, the source of the information is the Arizona Office of Employment and Population Statistics.

5.5 5.9 6.7 9.1 8.4 8.5 8.7 4.9 3.2 3.5

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

LAST TEN CALENDAR YEARS

Personal Income Per Capita

IncomeUnemployment

RateDistrict

Population

Page 153

Percentage Percentageof Total of Total

Employees Employment Employees Employment

State of Arizona 31,800 1.69 % 34,600 1.88 %Wal-Mart Stores Inc. 21,000 1.12 29,500 1.60 Banner Health Systems 27,200 1.45 16,000 0.87 City of Phoenix 14,421 0.77 16,318 0.89 Wells Fargo 12,000 0.64 Maricopa County 12,800 0.68 13,000 0.71 Arizona State University 12,200 0.65 11,200 0.61 Intel Corp. 10,800 0.57 10,000 0.54 Fry's Food & Drug Stores 11,000 0.58 Honor Health 10,500 Bashas 14,000 Honeywell International 12,000 0.65 US Airways 9,900 0.54

Total 163,721 8.15 % 166,518 8.29 %

Total employment 1,880,900 1,838,500

Source:Note: The information presented above is for the Greater Phoenix Area.

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

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2016 2007

Page 154

2016 2015 2014 2013 2012

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

Total supervisory 36 36 36 36 36 Instruction

Teachers 712 712 712 706 681 Other professionals (instructional) 29 26 21 5 10 Aides 195 203 203 197 191

Total instruction 936 941 936 908 882 Student Services

Librarians 9 9 9 9 9 Technicians 17 10 12 11 13 Social Workers/Counselors 45 42 42 43 41

Total student services 71 61 63 63 63 Support and Administration

Support staff - Office 209 177 169 210 206 Support staff - Maintenance 151 151 154 162 142 Support staff - Transportation 58 64 62 61 70 Support staff - Food services 71 54 64 59 51

Total support and administration 489 446 449 492 469

Total 1,532 1,484 1,484 1,499 1,450

(Continued)

Full-time Equivalent Employees as of June 30


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

Page 155

2011 2010 2009 2008 2007

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

Total supervisory 36 36 36 36 36 Instruction

Teachers 682 698 707 734 754 Other professionals (instructional) 5 8 9 8 2 Aides 195 195 169 163 160

Total instruction 882 901 885 905 916 Student Services

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

Total student services 56 56 61 70 70 Support and Administration

Support staff - Office 180 180 184 178 175 Support staff - Maintenance 158 162 160 151 144 Support staff - Transportation 46 49 57 31 33 Support staff - Food services 57 57 62 66 42

Total support and administration 441 448 463 426 394

Total 1,415 1,441 1,445 1,437 1,416

Source:

(Concluded)

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


The source of this information is District personnel records.

Page 156

FiscalYear Cost Cost Pupil-

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

2016 15,139 122,793,849$ 8,111$ 1.36 % 138,955,692$ 9,179$ (3.26) % 712 21.3 63.5 %2015 15,096 120,807,910 8,003 1.48 143,229,148 9,488 (1.33) 712 21.2 64.5 2014 14,981 118,133,927 7,886 (0.52) 144,058,428 9,616 2.76 712 21.0 63.4 2013 14,780 117,158,632 7,927 2.44 138,302,325 9,357 (3.25) 706 20.9 62.6 2012 14,771 114,296,088 7,738 (1.45) 142,864,358 9,672 4.54 681 21.7 61.6 2011 14,566 114,365,676 7,852 2.04 134,767,333 9,252 (0.23) 682 21.4 59.2 2010 14,705 113,150,773 7,695 (4.05) 136,370,620 9,274 (3.20) 698 21.1 62.6 2009 14,681 117,733,626 8,019 0.24 140,655,403 9,581 1.80 707 20.8 57.6 2008 14,784 118,273,887 8,000 4.43 139,134,642 9,411 4.51 734 20.1 47.9 2007 14,801 113,385,958 7,661 8.90 133,278,009 9,005 10.46 754 19.6 42.1 2006 14,786 104,010,771 7,034 #DIV/0! 120,535,161 8,152 #DIV/0!

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

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

Percentage of

StudentsFree/Reduced

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

Average Daily

MembershipOperating

Expenditures

Page 157

Fiscal Year

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

2016 BA 142 33,982$ 50,419$ 42,122$ BA+15 46 35,206 53,635 48,096 BA+30/MA 310 36,430 66,315 52,105 MA+12 63 37,284 67,168 57,509 MA+24 50 38,138 68,022 57,515 MA+36 55 38,992 68,876 60,712 MA+48 30 39,845 69,730 59,441 MA+60 15 40,699 70,584 60,845 MA+72/Doctorate 38 41,553 71,438 63,991


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


(Continued)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205TEACHER DEMOGRAPHIC INFORMATION

LAST EIGHT FISCAL YEARS

Page 158

Fiscal Fiscal Year

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




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

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

(Concluded)

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205TEACHER DEMOGRAPHIC INFORMATION

LAST EIGHT FISCAL YEARS

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

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

Page 159

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

SchoolsHigh

Buildings 201 197 207 212 217 220 220 220 220 220 Square feet 2,335,690 2,439,274 2,368,694 2,294,170 2,215,014 2,252,164 2,252,164 2,252,164 2,258,687 2,258,687 Capacity 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 19,000 Enrollment 15,695 15,376 15,304 15,059 15,051 14,816 15,262 15,276 15,427 15,473

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

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

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

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

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

GLENDALE UNION HIGH SCHOOL DISTRICT NO. 205CAPITAL ASSETS INFORMATION



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