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TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17

Comprehensive Annual Financial Report

Fiscal Year Ended June 30, 2015

9261 West Van Buren Street ▪ Tolleson, Arizona 85353


TOLLESON, ARIZONA

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

Issued by: Business and Finance Department


TABLE OF CONTENTS

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

Government-Wide Financial Statements:

Statement of Net Position 18 Statement of Activities 19

Fund Financial Statements: Balance Sheet - Governmental Funds 22 Reconciliation of the Balance Sheet -

Governmental Funds to the Statement of Net Position 25 Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 26 Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances - Governmental Funds to the Statement of Activities 28


TABLE OF CONTENTS

FINANCIAL SECTION Page BASIC FINANCIAL STATEMENTS

Statement of Assets and Liabilities – Fiduciary Funds 29

Notes to Financial Statements 30

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

Budget and Actual: General Fund 54 Classroom Site Fund 55 Food Service Fund 56

Schedule of Proportionate Share of the Net Pension Liability 57

Schedule of Contributions 57

Notes to Required Supplementary Information 58

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet - All Non-Major Governmental Funds -

By Fund Type 62 Combining Statement of Revenues, Expenditures and Changes in

Fund Balances - All Non-Major Governmental Funds - By Fund Type 63

Special Revenue Funds: Combining Balance Sheet 66 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances 72 Combining Schedule of Revenues, Expenditures and

Changes in Fund Balances - Budget and Actual 78


TABLE OF CONTENTS

FINANCIAL SECTION Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in 98 Fund Balance – Budget and Actual

Capital Projects Funds:

Combining Balance Sheet 100 Combining Statement of Revenues, Expenditures and Changes in

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

Fund Balances - Budget and Actual 104

Agency Funds: Combining Statement of Assets and Liabilities 112 Combining Statement of Changes in Assets and Liabilities 114

STATISTICAL SECTION Financial Trends:

Net Position by Component 116 Expenses, Program Revenues, and Net (Expense)/Revenue 117 General Revenues and Total Changes in Net Position 119 Fund Balances - Governmental Funds 121 Governmental Funds Revenues 123


TABLE OF CONTENTS

STATISTICAL SECTION Page Governmental Funds Expenditures and Debt Service Ratio 125 Other Financing Sources and Uses and Net Changes in Fund Balances - Governmental Funds 127

Revenue Capacity:

Primary Assessed Value and Estimated Actual Value of Taxable Property by Class 128 Secondary Assessed Value of Taxable Property by Class 129 Property Tax Assessment Ratios 130 Direct and Overlapping Property Tax Rates 131 Principal Property Taxpayers 132 Property Tax Levies and Collections 133

Debt Capacity:

Outstanding Debt by Type 134 Direct and Overlapping Governmental Activities Debt 135 Direct and Overlapping General Bonded Debt Ratios 135 Legal Debt Margin Information 136

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics 137 Principal Employers 138

Operating Information: Full-Time Equivalent District Employees by Type 139 Operating Statistics 141 Capital Assets Information 142

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INTRODUCTORY SECTION

i

December 16, 2015 Citizens and Governing Board Tolleson Elementary School District No. 17 9261 West Van Buren Street Tolleson, Arizona 85353 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Tolleson Elementary School District No. 17 (District) for the fiscal year ended June 30, 2015. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2015, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

ii

The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 58 public school districts located in Maricopa County, Arizona. It provides a program of public education from kindergarten through grade 8, with a fiscal year 2014-15 average daily membership of 2,741. The projected enrollment for fiscal year 2015-16 is 2,775 students. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities and food services.

iii

The Tolleson Elementary School District No. 17 is located 10 miles west of downtown Phoenix. The City of Tolleson, a portion of southwest Phoenix and the northeast section of the City of Avondale are included within the area served by the District. The District encompasses an area of approximately 6.25 square miles. The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have over expenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue, therefore a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The economy of the cities of Tolleson and Avondale and of Maricopa County, in general, is a mixture of farming, commercial enterprises, light manufacturing and food processing. The largest employers in the Tolleson area are Sun Land Beef, SYSCO Food Service, Frys/Kroger, Greater Auto Auction and Rousseau Farming. In recent years, the City of Tolleson has been successful in attracting businesses to locate their warehouse facilities in the City due to the freeway, railroad and airline accessibility. This has been and will continue to be a positive contributing factor to the District’s potential economic growth for many years to come. However, with the economic downturn, the District’s assessed valuation has dropped considerably. A few of the major firms represented in the Phoenix metropolitan area include Honeywell International, Inc., Banner Health Systems, Wal-Mart Stores, Inc., Wells Fargo Company, Bank of America, Raytheon Corporation and Apollo Group, Inc.. In addition, the metropolitan area provides excellent educational and training opportunities through seven community colleges, four private colleges and graduate schools, and one state university.

iv

Maricopa County is located in the south-central portion of Arizona and encompasses an area of approximately 9,226 square miles. Its boundaries encompass the cities of Phoenix, Scottsdale, Mesa, Tempe, Glendale, Chandler, and such towns as Gilbert, Paradise Valley and Fountain Hills. Maricopa County is currently the nation’s fourth largest county in terms of population size and the 14th in land area. The County’s 2014 population was estimated at 4.0 million and despite the current economic woes is still expected to reach 6 million by 2030. Maricopa County continues to have a very wide range of economic sectors supporting its potential growth and recovery. Maricopa County has, for some time, enjoyed an unemployment rate that was somewhat lower than the national average, however, the current rate of unemployment hovers around 5.9 percent. Service is the largest employment sector in the County, partly fueled by the tourism industry. The County has excellent accommodations, diverse cultural and recreational activities, and a favorable climate attracting millions to the area annually. Wholesale and retail trade is the second largest employment category. Long-term Financial Planning. In November 2006 the District’s voters approved $22.1 million in general obligation bonds. As of June 30, 2015, the Bond Building Fund had $169,516 in fund balance which is expected to be utilized during the next fiscal year. The average age of District school buildings is 16 years. In November of 2012, the District’s voters approved a seven year $750,000 per year capital override. The funds will be used to provide 21st Century classroom technology, paint and refurbish schools, purchase transportation equipment and to provide instructional materials. AWARDS AND ACKNOWLEDGMENTS Awards. The Association of School Business Officials (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2014. This was the eighteenth consecutive year that the District has received this prestigious award. In addition, the Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2014. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2015 certificates.

v

Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the business and finance department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted,

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

vi

Association of School Business Officials International

The Certificate of Excellence in Financial Reporting Award

is presented to

Tolleson Elementary School District No. 17

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

The CAFR has been reviewed and met or exceeded

ASBO International’s Certificate of Excellence standards

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

ix


LIST OF PRINCIPAL OFFICIALS (As of June 30, 2015)

GOVERNING BOARD

Adriana Morado, President

Bertha A. Estrada, Vice President

B. Dale Crandell, Member

Ruth H. Diaz, Member

Elizabeth T. Hunsaker, Member

ADMINISTRATIVE STAFF

Dr. Lupita Hightower, Superintendent

Dr. Wanda Williams, Administrator of Special Programs

Dr. Ramona Lomeli, Administrator of Human Resources

James S. Serbin, CPA, Executive Director of Business Services

Veronica Vasquez, Executive Director of Curriculum & Instruction

Vacant, Director of S.T.E.M.

Garrett Godoy, Director of Technology

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT Governing Board Tolleson Elementary School District No. 17 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Tolleson Elementary School District No. 17 (District), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Tolleson Elementary School District No. 17, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 1, the District implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, for the year ended June 30, 2015, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.

TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com

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

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

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, and net pension liability information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2015, on our consideration of Tolleson Elementary School District No. 17’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Tolleson Elementary School District No. 17’s internal control over financial reporting and compliance. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 16, 2015

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

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

YEAR ENDED JUNE 30, 2015

Page 5

As management of the Tolleson Elementary School District No. 17 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2015. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS

The District’s total net position of governmental activities increased $98,007 which

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

General revenues accounted for $18.0 million in revenue, or 75 percent of all current

fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $5.9 million or 25 percent of total current fiscal year revenues.

The District had approximately $23.9 million in expenses related to governmental

activities, an increase of nine percent from the prior fiscal year partially due to an increase in student enrollment.

Among major funds, the General Fund had $14.4 million in current fiscal year revenues,

which primarily consisted of state aid and property taxes, and $15.3 million in expenditures. The General Fund’s fund balance decreased from $3.5 million at the prior fiscal year end to $3.0 million at the end of the current fiscal year was primarily due to an increase in instructional expenditures for increased student enrollment.

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



Page 6

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

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

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



Page 7

OVERVIEW OF FINANCIAL STATEMENTS

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

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances - budget and actual has been provided for the General Fund and major Special Revenue Funds as required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $34.7 million at the current fiscal year end. The largest portion of the District’s net position reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, vehicles, furniture and equipment and construction in progress), less any related outstanding debt used to acquire those assets. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used.



Page 8

GOVERNMENT-WIDE FINANCIAL ANALYSIS The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2015 and June 30, 2014.

As of

June 30, 2015 As of

June 30, 2014 Current and other assets $ 10,834,642 $ 11,228,272 Capital assets, net 53,867,125 54,653,263

Total assets 64,701,767 65,881,535

Deferred outflows 2,314,668

Current and other liabilities 1,354,462 1,504,185 Long-term liabilities 27,705,012 10,347,903

Total liabilities 29,059,474 11,852,088

Deferred inflows 3,227,158

Net position: Net investment in capital assets 45,246,641 45,354,673 Restricted 5,232,083 4,661,075 Unrestricted (15,748,921) 4,013,699

Total net position $ 34,729,803 $ 54,029,447 At the end of the current fiscal year, the District reported positive balances in two categories of net position. Unrestricted net position, which is normally used to meet the District’s mission, reported a deficit of $15.7 million. The deficit arose because of the implementation of GASB Statement No. 68, which required the District to record a liability for its proportionate share of the state pension plan’s unfunded liability. All three components of net position were positive in the prior fiscal year.

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

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

The addition of $18.5 million in pension liabilities due to the implementation of new pension reporting standards.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS Changes in net position. The District’s total revenues for the current fiscal year were $24.0 million. The total cost of all programs and services was $23.9 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2015 and June 30, 2014.

Fiscal Year Ended

June 30, 2015 Fiscal Year Ended

June 30, 2014 Revenues:

Program revenues: Charges for services $ 425,547 $ 300,898 Operating grants and contributions 5,243,843 4,368,531 Capital grants and contributions 274,952 855,013

General revenues: Property taxes 6,659,941 5,830,940 Investment income 29,948 34,086 Unrestricted county aid 980,201 905,894 Unrestricted state aid 10,282,770 9,737,432 Unrestricted federal aid 60,202 29,982 Total revenues 23,957,404 22,062,776

Expenses: Instruction 12,211,924 10,987,980 Support services – students and staff 3,284,905 3,223,435 Support services – administration 2,753,821 2,473,634 Operation and maintenance of plant services 2,550,585 2,182,106 Student transportation services 581,706 549,204 Operation of non-instructional services 2,102,998 1,988,363 Interest on long-term debt 373,458 412,007

Total expenses 23,859,397 21,816,729 Changes in net position 98,007 246,047

Net position, beginning, as restated 34,631,796 53,783,400 Net position, ending $ 34,729,803 $ 54,029,447



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GOVERNMENT-WIDE FINANCIAL ANALYSIS

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

An increase of $545,338 in unrestricted state aid due to increased enrollment. Instruction expenses increased $1.2 million due to increased enrollment. Operating grants and contributions increased $875,312 due to an increase in federal grant

revenue. Property tax revenue increased $829,001 due to an increase in the secondary assessed

valuation of taxable property within the District.

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

$0

$2

$4

$6

$8

$10

$12

$14

Mil

lion

sExpenses

FY2014-15

FY2013-14



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GOVERNMENT-WIDE FINANCIAL ANALYSIS

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

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $ 12,211,924 $ (9,547,555) $ 10,987,980 $ (8,745,512)Support services – students and staff 3,284,905 (2,702,824) 3,223,435 (2,446,316)Support services – administration 2,753,821 (2,753,821) 2,473,634 (2,439,095)Operation and maintenance of plant services 2,550,585 (2,289,153) 2,182,106 (2,095,759)Student transportation services 581,706 (581,706) 549,204 (531,935)Operation of non-instructional services 2,102,998 333,462 1,988,363 378,337 Interest on long-term debt 373,458 (373,458) 412,007 (412,007)

Total $ 23,859,397 $ (17,915,055) $ 21,816,729 $ (16,292,287)

The cost of all governmental activities this year was $23.9 million. Federal and state governments and charges for services subsidized certain programs with

grants and contributions and other local revenues of $5.9 million.

Net cost of governmental activities of $17.9 million was financed by general revenues, which are made up of primarily property taxes of $6.7 million and state aid of $10.3 million.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $8.0 million, a decrease of $438,468 due primarily to expenditures of bond proceeds in the Bond Building Fund as well as increased instruction expenditures due to hiring additional teachers because of increased enrollment.



Page 12

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

The General fund comprises 38 percent of the total fund balance, of which, $2.5 million or 85 percent is unassigned. The General Fund is the principal operating fund of the District. The fund balance decreased $503,857 in the General Fund to $3.0 million as of fiscal year end as a result of increased expenditures due to increased enrollment. General Fund revenues increased $603,498. General Fund expenditures increased $1.0 million.

The fund balance of the Classroom Site Fund increased by $346,418 due to revenues exceeding expenditures.

The fund balance of the Food Service Fund increased $276,273 due to additional federal revenue.

The fund balance of the Debt Service Fund decreased by $17,025.

BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised the General Fund annual expenditure budget for changes in student population. The difference between the original budget and the final amended budget was a $557,646 increase, or four percent due to an increase in student enrollment.

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

The favorable variance of $168,748 in support services-administration expenditures was a result of lower than projected purchased professional services and payroll costs.

The favorable variance of $224,413 in operation and maintenance of plant services expenditures was a result of lower than budgeted energy, insurance, and custodial expenditures.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. At year end, the District had invested $67.4 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 $558,474. Total depreciation expense for the year was $1.4 million.

The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2015 and June 30, 2014.

As of June 30, 2015

As of June 30, 2014

Capital assets – non-depreciable $ 8,055,164 $ 8,922,652 Capital assets – depreciable, net 45,811,961 45,730,611

Total $ 53,867,125 $ 54,653,263



Page 13

CAPITAL ASSETS AND DEBT ADMINISTRATION The estimated cost to complete current construction projects is $618,782. Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year-end, the District had $8.8 million in long-term debt outstanding, $960,000 due within one year. Long-term debt decreased by $945,000 million due to bond principal retirement. The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 15 percent of the total secondary assessed valuation) and the statutory debt limit on Class B bonds (the greater of 20 percent of the secondary assessed valuation or $1,500 per student). The current total debt limitation for the District is $22.4 million and the Class B debt limit is $15.0 million which are more than the District’s total outstanding general obligation and Class B debt respectively. Additional information on the District’s long-term debt can be found in Notes 8 and 9. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES Many factors were considered by the District’s administration during the process of developing the fiscal year 2015-16 budget. Among them:

Fiscal year 2014-15 budget balance carry forward of $500,000. District student population (estimated 2,775).

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 two percent to $15.7 million in fiscal year 2015-16. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2015-16 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business and Finance Department, Tolleson Elementary School District No. 17, 9261 West Van Buren Street, Tolleson, Arizona 85353.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ASSETSCurrent assets:

Cash and investmentsProperty taxes 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 RESOURCESPension plan items

LIABILITIESCurrent liabilities:

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

Total current liabilities

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

Total noncurrent liabilitiesTotal liabilities

DEFERRED INFLOWS OF RESOURCESPension plan items

NET POSITIONNet investment in capital assetsRestricted for:

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

UnrestrictedTotal net position

Governmental Activities

$ 5,862,724264,64014,658

4,228,924463,696

10,834,642

8,055,16445,811,96153,867,12564,701,767

2,314,668

746,56811,058

372,15975,000

185,61639,061

960,0002,389,462

26,670,01226,670,01229,059,474

3,227,158

45,246,641

2,472,527314,823710,625227,11460,96774,49957,18054,87715,630

1,243,841(15,748,921)

$ 34,729,803

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF NET POSITION

JUNE 30, 2015

The notes to the basic financial statements are an integral part of this statement.Page 18

Program Revenues

Net (Expense) Revenue and

Changes in Net Position

Functions/ProgramsGovernmental activities:

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

Total governmental activities

Expenses

$ 12,211,9243,284,9052,753,8212,550,585

581,7062,102,998

373,458$ 23,859,397

Charges for Services

$ 135,328

28,619

261,600

$ 425,547

Operating Grants and

Contributions

$ 2,254,089582,081

232,813

2,174,860

$ 5,243,843

Capital Grants and

Contributions

$ 274,952

$ 274,952

Governmental Activities

$ (9,547,555)

(2,702,824)(2,753,821)(2,289,153)

(581,706)333,462

(373,458)(17,915,055)

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, as restated

Net position, end of year

3,936,0201,320,1851,403,736

29,948980,201

10,282,77060,202

18,013,062

98,007

34,631,796

$ 34,729,803

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2015

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

FUND FINANCIAL STATEMENTS

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

Total assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:

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

Total liabilities

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

Total deferred inflows of resources

Fund balances (deficits):NonspendableRestrictedUnassigned

Total fund balances

Total liabilities, deferred inflows of resourcesand fund balances

General

$ 184,501

3,104,262

463,696

$ 3,752,459

$ 238,430

96,740244,478

579,648

165,500

165,500

463,696

2,543,6153,007,311

$ 3,752,459

Classroom Site

$ 2,141,672

74,825

$ 2,216,497

$ 1,894

10,513

12,407

2,204,090

2,204,090

$ 2,216,497

Food Service

$ 696,942

14,65849,007

$ 760,607

$ 43,514

6,468

49,982

710,625

710,625

$ 760,607

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

JUNE 30, 2015

Page 22

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

Debt Service

$ 1,139,09922,147

$ 1,161,246

$

960,000185,616

1,145,616

15,212

15,212

418

418

$ 1,161,246

Non-Major Governmental

Funds

$ 1,885,01157,992

1,000,830

570,864

$ 3,514,697

$ 462,73011,058

474,124110,70039,061

1,097,673

52,754301,936354,690

2,116,564

(54,230)2,062,334

$ 3,514,697

Total Governmental

Funds

$ 5,862,724264,64014,658

4,228,924570,864463,696

$ 11,405,506

$ 746,56811,058

570,864372,15939,061

960,000185,616

2,885,326

233,466301,936535,402

463,6965,031,6972,489,3857,984,778

$ 11,405,506

Page 23

Total governmental fund balances $ 7,984,778

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

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

Governmental capital assets $ 67,367,371Less accumulated depreciation (13,500,246) 53,867,125

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

Property taxes 233,466 Intergovernmental 301,936 535,402

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 2,314,668 Deferred inflows of resources related to pensions (3,227,158) (912,490)

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

Compensated absences payable (460,308)Net pension liability (18,454,704)Bonds payable (7,830,000) (26,745,012)

Net position of governmental activities $ 34,729,803


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

TO THE STATEMENT OF NET POSITIONJUNE 30, 2015

Page 25

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

Total revenues

Expenditures:Current -

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

Capital outlayDebt service -

Principal retirementInterest and fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses):Transfers inTransfers out

Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

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

Fund balances, end of year

General

$ 1,080,8793,950,4059,267,117

60,20214,358,603

8,179,8142,201,7602,420,2122,094,123

393,68650,716

15,340,311

(981,708)

356,868

356,868

(624,840)

3,511,168

194,297(73,314)

$ 3,007,311

Classroom Site

$ 8,074

897,890

905,964

495,72563,821

559,546

346,418

346,418

1,857,672

$ 2,204,090

Food Service

$ 210,685

2,202,0482,412,733

35330

1,804,526

27,188

1,832,079

580,654

(304,381)(304,381)

276,273

513,864

(79,512)

$ 710,625

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

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2015


Debt Service

$ 2,7331,312,981

1,315,714

960,000373,458

1,333,458

(17,744)

719

719

(17,025)

17,443

$ 418


Funds

$ 172,0611,385,4531,031,1042,196,2114,784,829

2,162,717947,623106,479381,59813,924

108,0981,471,949

5,192,388

(407,559)

(53,206)(53,206)

(460,765)

2,523,099

$ 2,062,334

Total Governmental

Funds

$ 1,474,4326,648,839

11,196,1114,458,461

23,777,843

10,838,2563,213,2042,526,7262,476,051

407,6101,963,3401,499,137

960,000373,458

24,257,782

(479,939)

357,587

(357,587)

(479,939)

8,423,246

194,297(152,826)

$ 7,984,778

Page 27

Net changes in fund balances - total governmental funds $ (438,468)

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

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

Expenditures for capitalized assets $ 588,474Less current year depreciation (1,374,612) (786,138)

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

Property taxes 11,102Intergovernmental 168,459 179,561

Repayment of bond principal are expenditures in the governmental funds,but the repayment reduces long-term liabilities in the Statement ofNet Position. 960,000

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 1,284,836Pension expense (1,254,379) 30,457

Compensated absences expenses reported in the Statement of Activities do not requirethe use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 152,595

Change in net position in governmental activities $ 98,007


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

AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

YEAR ENDED JUNE 30, 2015TO THE STATEMENT OF ACTIVITIES

Page 28

ASSETSCash and investments

Total assets

LIABILITIESDeposits held for othersDue to governmental entitiesDue to student groups

Total liabilities

Agency

$ 2,108,884$ 2,108,884

$ 2,014,99085,8258,069

$ 2,108,884

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

FIDUCIARY FUNDSJUNE 30, 2015


TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

Page 30

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Tolleson Elementary School District No. 17 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2015, the District implemented the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. This Statement requires governments providing defined benefit pensions to recognize the long-term obligation for pension benefits as a liability, and to more comprehensively and comparably measure the annual costs of pension benefits. This Statement also enhances accountability and transparency through revised note disclosures and new required supplementary information. The more significant of the District’s accounting policies are described below. A. Reporting Entity The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.


JUNE 30, 2015

Page 31

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted state, county and federal aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value.


JUNE 30, 2015

Page 32

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. As permitted by generally accepted accounting principles the District applies the “early recognition” option for debt service payments. Property tax resources are provided in the Debt Service Fund during the current year for the payment of debt service principal and interest due early in the following year (less than one month). Therefore, the expenditures and related liabilities have been recognized in the current period. Property taxes, federal, state and county aid, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Unearned revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. Delinquent property taxes and other receivables that will not be collected within the available period have been reported as unavailable revenues on the governmental fund financial statements. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type.

The District reports the following major governmental funds:

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


JUNE 30, 2015

Page 33

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Classroom Site Fund – The Classroom Site Fund accounts for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Food Service Fund – The Food Service Fund accounts for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Debt Service Fund – The Debt Service Fund accounts for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

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

The Agency Funds are custodial in nature and do not have a measurement focus and are reported using the accrual basis of accounting. The Agency Funds are reported by fund type. D. Cash and Investments A.R.S. require the District to deposit all cash with the County Treasurer, except as discussed below. Cash with the County Treasurer is pooled for investment purposes, except for cash of the Debt Service and Bond Building Funds that may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. As required by statute, interest earnings of the Bond Building Fund are recorded initially in that fund, but then transferred to the Debt Service Fund. All investments are stated at fair value. Statute authorizes the District to separately invest monies of the Bond Building and Debt Service Funds in the State Treasurer’s investment pools; obligations issued and guaranteed by the United States or any of its agencies or instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit.


JUNE 30, 2015

Page 34

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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.

E. Investment Income Investment income is composed of interest, dividends and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the fund financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances between governmental funds are eliminated on the Statement of Net Position. All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles.


JUNE 30, 2015

Page 35

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

Land improvements 5 – 60 years Buildings and improvements 5 – 100 years Vehicles, furniture and equipment 5 – 25 years


JUNE 30, 2015

Page 36

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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. The District did not have any items that qualified for reporting in this category. In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. 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. 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, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts, as well as the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method over the term of the related debt.


JUNE 30, 2015

Page 37

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. N. Interfund Activity Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund financial statements are reported as other financing sources/uses in governmental funds. O. Net Position Flow Assumption In the government-wide financial statements the District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available. P. Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

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.


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NOTE 2 – FUND BALANCE CLASSIFICATIONS Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported. Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or the Executive Director of Business Services, who has been delegated that authority by formal Governing Board action. No assigned fund balance amounts are reported. Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.


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NOTE 2 – FUND BALANCE CLASSIFICATIONS The table below provides detail of the major components of the District’s fund balance classifications at year end. Voter approved initiatives include monies restricted in the Classroom Site and Instructional Improvement Funds.

General

FundClassroom Site Fund

Food Service Fund

Debt Service Fund


FundsFund Balances:

Nonspendable: Prepaid items $ 463,696 $ $ $ $

Restricted: Debt service 418 Capital projects 1,191,087 Bond building projects 169,516 Voter approved initiatives 2,204,090 268,437 Federal and state projects 12,887 Civic center 227,114 Community school 60,967 Gifts and donations 74,499 Extracurricular activities 57,180 Food service 710,625 Other purposes 54,877

Unassigned 2,543,615 (54,230)Total fund balances $ 3,007,311 $ 2,204,090 $ 710,625 $ 418 $ 2,062,334

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

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

Deficit Non-Major Governmental Funds:

Other Federal Projects $ (42,824)Building Renewal Grant (11,406)

The deficits arose because of operations during the year. Additional revenues received in fiscal year 2015-16 are expected to eliminate the deficits. Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budget, however this does not constitute a violation of any legal provisions.


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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 $2,037,749 and the bank balance was $2,041,934. At year end, $1,791,934 of the District’s deposits were covered by collateral held by the pledging financial institution in the District’s name. The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. At year end, the District’s investments consisted of the following:

Average Maturities Fair Value County Treasurer’s investment pool 367 days $ 5,933,859Total $ 5,933,859

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

FundClassroom Site Fund

Food Service Fund

Non-MajorGovernmental

FundsDue from other governmental entities:

Due from federal government $ $ $ 49,007 $ 814,859Due from state government 3,104,262 74,825 180,662 Due from city government 5,309

Net due from governmental entities $ 3,104,262 $ 74,825 $ 49,007 $ 1,000,830 NOTE 6 – CAPITAL ASSETS

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

Governmental Activities Beginning Balance Increase Decrease

Ending Balance

Capital assets, not being depreciated: Land $ 7,870,817 $ $ $ 7,870,817 Construction in progress 1,051,835 211,284 1,078,772 184,347

Total capital assets, not being depreciated 8,922,652 211,284 1,078,772 8,055,164

Capital assets, being depreciated: Land improvements 4,448,122 115,151 4,563,273 Buildings and improvements 51,028,557 1,328,920 52,357,477 Vehicles, furniture and equipment 2,379,566 11,891 2,391,457

Total capital assets being depreciated 57,856,245 1,455,962 59,312,207 Less accumulated depreciation for:

Land improvements (952,735) (194,548) (1,147,283)Buildings and improvements (9,878,885) (988,813) (10,867,698)Vehicles, furniture and equipment (1,294,014) (191,251) (1,485,265)

Total accumulated depreciation (12,125,634) (1,374,612) (13,500,246)

Total capital assets, being depreciated, net 45,730,611 81,350 45,811,961 Governmental activities capital assets, net $ 54,653,263 $ 292,634 $ 1,078,772 $ 53,867,125


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

Instruction $ 817,199 Support services – students and staff 46,522 Support services – administration 207,540 Operation and maintenance of plant services 177,625 Student transportation services 85,959 Operation of non-instructional services 39,767 Total depreciation expense – governmental activities $ 1,374,612

Construction Commitments – At year end, the District had contractual commitments related to various capital projects. At year end, the District had spent $184,347 on the projects and had estimated remaining contractual commitments of $618,782. These projects are being funded with Bond Building and Adjacent Ways monies.

NOTE 7 – OBLIGATIONS UNDER OPERATING LEASES

The District leases various technology equipment under the provisions of a long-term lease agreement classified as an operating lease for accounting purposes. There were no rental expenditures under the terms of the operating lease for the current fiscal year. The operating lease has a remaining noncancelable lease term of two years from 2016 to 2017. The future minimum rental payments required under the operating lease at year end were as follows:

Year Ending June 30:

2016 $ 146,007 2017 146,007

Total minimum payments required $ 292,014


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NOTE 8 – GENERAL OBLIGATION BONDS PAYABLE Bonds payable at year end, consisted of the following outstanding general obligation bonds. The bonds are both callable and noncallable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt.

Purpose

Original Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal

June 30, 2015Due WithinOne Year

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

4.00-4.50% 7/1/15-22 $ 3,320,000 $ 360,000

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

4.00-5.00% 7/1/15-28 2,810,000 600,000

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

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

Total $ 8,790,000 $ 960,000 Annual debt service requirements to maturity on general obligation bonds at year end are summarized as follows:

Governmental Activities Year ending June 30: Principal Interest

2016 $ 960,000 $ 351,1322017 945,000 312,332 2018 930,000 274,382 2019 970,000 235,032 2020 1,005,000 194,107 2021-25 3,150,000 421,849 2026-30 830,000 78,626

Total $ 8,790,000 $ 1,867,460


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NOTE 9 – CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the current fiscal year was as follows:

Beginning Balance Additions Reductions

Ending Balance

Due WithinOne Year

Governmental activities: Bonds payable: General obligation bonds $ 9,735,000 $ $ 945,000 $ 8,790,000 $ 960,000 Net pension liability 19,397,651 942,947 18,454,704 Compensated absences payable 612,903 253,156 405,751 460,308 75,000 Governmental activity long-term

liabilities $ 29,745,554 $ 253,156 $ 2,293,698 $ 27,705,012 $ 1,035,000 NOTE 10 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

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

Non-MajorGovernmental

Funds

Total Due to Other

Funds General Fund $ 96,740 $ 96,740 Non-Major Governmental

Funds 474,124 474,124 Total Due from Other Funds $ 570,864 $ 570,864

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. All interfund balances are expected to be paid within one year.


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NOTE 10 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Interfund transfers:

Transfers in

Transfers out General

FundDebt Service

Fund Total Food Service Fund $ 304,381 $ $ 304,381 Non-Major Governmental Funds 52,487 719 53,206Total $ 356,868 $ 719 $ 357,587

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 and (3) to close out an inactive fund.

NOTE 11 – CONTINGENT LIABILITIES

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

NOTE 12 – RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.


JUNE 30, 2015

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NOTE 12 – RISK MANAGEMENT The District’s employees have health and accident insurance coverage with the Valley Schools Employee Benefit Trust (VSEBT). VSEBT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to VSEBT for employees’ health and accident insurance coverage. The agreement provides that VSEBT will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. The District continues to carry commercial insurance for all other risks of loss, including workers’ compensation, employee vision and life insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 13 – 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.


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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS 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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NOTE 13 – 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 11.60 percent (11.48 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.60 percent (10.89 percent for retirement, 0.59 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions to the pension plan for the year ended June 30, 2015 were $1,284,836. In addition, the District was required by statute to contribute at the actuarially determined rate of 9.57 percent (9.51 for retirement and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS.

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

Health Benefit Supplement

Fund

Long-Term Disability

Fund Year ending June 30:

2015 $ 69,610 $ 14,1582014 65,720 26,2882013 71,496 26,399

Pension Liability. At June 30, 2015, the District reported a liability of $18.5 million for its proportionate share of the net pension liability of the ASRS. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2013, to the measurement date of June 30, 2014. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2014, the District’s proportion was 0.12 percent which was the same as its proportion measured at June 30, 2013.


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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2015, the District recognized pension expense of $1.3 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 $ 937,922 $ Net difference between projected and actual earnings on

pension plan investments 3,227,158Changes in proportion and differences between

contributions and proportionate share of contributions 91,910Contributions subsequent to the measurement date 1,284,836

Total $ 2,314,668 $ 3,227,158 The deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30: 2016 $ (359,036)2017 (359,036)2018 (672,464)2019 (806,790)


JUNE 30, 2015

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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension liability are as follows:

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

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


JUNE 30, 2015

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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Target

Allocation

Long-Term Expected Real Rate of Return

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

Total 100%

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

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

1%

Decrease (7.0%)

Current Discount Rate

(8.0%) 1% Increase

(9.0%) Proportionate share of the net

pension liability $23,325,799 $ 18,454,704 $15,811,890

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.


JUNE 30, 2015

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NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS Beginning Net Position Restatement. The implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, represents a change in accounting principle. Net position as of July 1, 2014, has been restated as follows for this change in accounting principle:

Statement of

Activities Net position, June 30, 2014, as previously reported $ 54,029,447 Net pension liability (19,397,651)Net position, July 1, 2014, as restated $ 34,631,796

REQUIRED SUPPLEMENTARY INFORMATION

Revenues:Other localProperty taxesState aid and grants

Total revenues



Total expenditures


Other financing sources (uses):Transfers in




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

Fund balances (deficits), end of year

Budgeted Amounts

Original

$ 917,6714,064,6628,711,601

13,693,934

8,360,8511,975,2582,173,9291,817,316

472,00940,000

14,839,363

(1,145,429)

(1,145,429)

$ (1,145,429)

Final

$ 917,3864,064,6628,711,601

13,693,649

8,125,2242,168,0312,432,3702,143,223

488,16140,000

15,397,009

(1,703,360)

(1,703,360)

$ (1,703,360)

Non-GAAP Actual

$ 1,034,8253,950,4059,219,242

14,204,472

8,142,6272,132,2172,263,6221,918,810

392,19540,000

14,889,471

(684,999)

9595

(684,904)

2,072,385

194,297(73,314)

$ 1,508,464

Variance with Final Budget

Positive (Negative)

$ 117,439(114,257)

507,641510,823

(17,403)35,814

168,748224,41395,966

507,538

1,018,361

9595

1,018,456

2,072,385

194,297(73,314)

$ 3,211,824

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

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


Page 54

Revenues:Other localState aid and grants

Total revenues


InstructionSupport services - students and staff

Total expenditures




Budgeted Amounts

Original & Final

$ 6,194911,107917,301

3,129,34896,442

3,225,790

(2,308,489)

$ (2,308,489)

Actual

$ 8,074897,890905,964

495,72563,821

559,546

346,418

1,857,672

$ 2,204,090


Positive (Negative)

$ 1,880(13,217)(11,337)

2,633,62332,621

2,666,244

2,654,907

1,857,672

$ 4,512,579


CHANGES IN FUND BALANCES - BUDGET AND ACTUALCLASSROOM SITE


Page 55

Revenues:Other localFederal aid, grants and reimbursements

Total revenues


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

Capital outlayTotal expenditures


Other financing sources (uses):Transfers out




Increase (decrease) in reserve for inventory


Budgeted Amounts

Original

$ 181,2911,861,0292,042,320

1,0004,000

1,950,00045,000

2,000,000

42,320

42,320

$ 42,320

Final

$ 181,2911,861,0292,042,320

1,1007,000

2,555,00055,000

2,618,100

(575,780)

(575,780)

$ (575,780)

Actual

$ 210,6852,202,0482,412,733

35330

1,804,52627,188

1,832,079

580,654

(304,381)(304,381)

276,273

513,864

(79,512)

$ 710,625


Positive (Negative)

$ 29,394341,019370,413

1,0656,670

750,47427,812

786,021

1,156,434

(304,381)(304,381)

852,053

513,864

(79,512)

$ 1,286,405


CHANGES IN FUND BALANCES - BUDGET AND ACTUALFOOD SERVICE


Page 56

2015 2014 2013 2012 2011

District's proportion of the net pensionliability (asset) 0.12% 0.00% 0.00% 0.00% 0.00%

District's proportionate share of the netpension liability (asset) 18,454,704$ $ $ $ $

District's covered-employee payroll 11,036,563$ $ $ $ $

District's proportionate share of the net pension liability (asset) as a percentageof its covered-employee payroll 167.21% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

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

2015 2014 2013 2012 2011

Actuarially determined contribution 1,284,836$ $ $ $ $

Contributions in relation to the actuarially determined contribution 1,284,836

Contribution deficiency (excess) $ $ $ $ $

District's covered-employee payroll 11,664,378$ $ $ $ $

Contributions as a percentageof covered-employee payroll 11.02% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

YEAR ENDED JUNE 30, 2015ARIZONA STATE RETIREMENT SYSTEM

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITYTOLLESON ELEMENTARY DISTRICT NO. 17

YEAR ENDED JUNE 30, 2015ARIZONA STATE RETIREMENT SYSTEM

SCHEDULE OF CONTRIBUTIONS

See accompanying notes to this schedule.

Page 57

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

JUNE 30, 2015

Page 58

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

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

Prepaid items are budgeted in the year prepaid. The following schedule reconciles expenditures and fund balances at the end of year:

Total

Expenditures Fund Balances

End of Year Statement of Revenues, Expenditures and Changes in

Fund Balances – Governmental Funds $ 15,340,311 $ 3,007,311 Activity budgeted as special revenue funds (277,559) (1,498,847)Prior-year prepaid items (173,281) Schedule of Revenues, Expenditures and Changes in

Fund Balances – Budget and Actual – General Fund $ 14,889,471 $ 1,508,464

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

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

GOVERNMENTAL FUNDS

ASSETSCash and investmentsProperty taxes receivableDue from governmental entitiesDue from other funds

Total assets


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

Total liabilities

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

Total deferred inflows of resources

Fund balances (deficits):RestrictedUnassigned

Total fund balances


Special Revenue

$ 704,043

996,624

$ 1,700,667

$ 64,937

470,896110,70039,061

685,594

301,936301,936

755,961(42,824)713,137

$ 1,700,667

Capital Projects

$ 1,180,96857,9924,206

570,864$ 1,814,030

$ 397,79311,0583,228

412,079

52,754

52,754

1,360,603(11,406)

1,349,197

$ 1,814,030

Total Non-Major

Governmental Fund

$ 1,885,01157,992

1,000,830570,864

$ 3,514,697

$ 462,73011,058

474,124110,70039,061

1,097,673

52,754301,936354,690

2,116,564(54,230)

2,062,334

$ 3,514,697

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

JUNE 30, 2015

Page 62

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

Total revenues










Special Revenue

$ 160,873

908,7272,196,2113,265,811

1,767,281904,514106,479380,03911,838

108,098185,775

3,464,024

(198,213)

(52,487)(52,487)

(250,700)

963,837

$ 713,137

Capital Projects

$ 11,1881,385,453

122,377

1,519,018

395,43643,109

1,5592,086

1,286,1741,728,364

(209,346)

(719)(719)

(210,065)

1,559,262

$ 1,349,197

Total Non-Major

Governmental Funds

$ 172,0611,385,4531,031,1042,196,2114,784,829

2,162,717947,623106,479381,59813,924

108,0981,471,9495,192,388

(407,559)

(53,206)(53,206)

(460,765)

2,523,099

$ 2,062,334

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

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

Page 63

SPECIAL REVENUE FUNDS Instructional Improvement - to account for the activity of monies received from gaming revenue. County, City and Town Grants - to account for monies received from county, city and town grants. Structured English Immersion - to account for monies received to provide for the incremental cost of instruction to English language learners. Student Success - to account for student success monies. Title I Grants - to account for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing, to meet challenging state academic standards. Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities. Limited English and Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. 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 supplemental federal projects. Other State Projects - to account for financial assistance received for other state projects. School Plant - to account for proceeds from the sale or lease of school property. Civic Center - to account for monies received from the rental of school facilities for civic activities.

Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations. Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01. Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. Fingerprint - to account for activity of fingerprinting employees as mandated by the State. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Indirect Costs - to account for monies received from federal projects for administrative costs. Insurance Refund - to account for insurance premium payments that are refunded to the District. Grants and Gifts to Teachers - to account for grants and gifts under $1,500 received from private sources that are restricted for use by a teacher for instructional purposes.

ASSETSCash and investmentsDue from governmental entities

Total assets


Accounts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues

Total liabilities

Deferred inflows of resources:Unavailable revenues - intergovernmental


Total fund balances


Instructional Improvement

$ 223,49444,943

$ 268,437

$

268,437

268,437

$ 268,437

County, City, and Town

Grants

$ 132

$ 132

$

132

132

$ 132

Title I Grants

$ 53,317

$ 53,317

$ 30,83521,1421,340

53,317

$ 53,317

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

JUNE 30, 2015

Page 66

Professional Development

and Technology Grants

$ 6,397

$ 6,397

$ 6,397

6,397

$ 6,397

Title IV Grants

$ 114,912

$ 114,912

$ 22,95442,17949,779

114,912

$ 114,912

Limited English and Immigrant

Students

$ 38,805

$ 38,805

$ 4,54715,76118,497

38,805

$ 38,805

Special Education

Grants

$ 24,396

$ 24,396

$ 1,1508,667

14,579

24,396

$ 24,396

Homeless Education

$ 521

$ 521

$ 521

521

$ 521

E-Rate

$ 10,060306,348

$ 316,408

$ 1,585

1,585

301,936

12,887

12,887

$ 316,408

Page 67(Continued)


Total assets



Total liabilities



Total fund balances


Other Federal Projects

$ 270,163

$ 270,163

$ 312,987

312,987

(42,824)(42,824)

$ 270,163

Other State Projects

$ 131,513

$ 131,513

$ 2,70563,24226,50539,061

131,513

$ 131,513

Civic Center

$ 227,114

$ 227,114

$

227,114

227,114

$ 227,114


JUNE 30, 2015

Page 68

Community School

$ 55,6585,309

$ 60,967

$

60,967

60,967

$ 60,967

Extracurricular Activities Fees

Tax Credit

$ 57,180

$ 57,180

$

57,180

57,180

$ 57,180

Gifts and Donations

$ 75,660

$ 75,660

$ 1,161

1,161

74,499

74,499

$ 75,660

Fingerprint

$ 1,310

$ 1,310

$

1,310

1,310

$ 1,310

Textbooks

$ 12,847

$ 12,847

$

12,847

12,847

$ 12,847

Insurance Refund

$ 34,281

$ 34,281

$

34,281

34,281

$ 34,281

Page 69(Continued)


Total assets



Total liabilities



Total fund balances


Grants and Gifts to Teachers

$ 6,307

$ 6,307

$

6,307

6,307

$ 6,307

Totals

$ 704,043996,624

$ 1,700,667

$ 64,937470,896110,70039,061

685,594

301,936

755,961(42,824)713,137

$ 1,700,667


JUNE 30, 2015

Page 70

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

Total revenues








Fund balances (deficits), beginning of year



$ 745104,490

105,235

22,90422,904

82,331

82,331

186,106

$ 268,437

County, City, and Town

Grants

$ 500

500

368

368

132

(95)(95)

37

95

$ 132

Structured English

Immersion

$ 2,878

2,878

2,878

2,878

$


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2015

Page 72

Title I Grants

$

742,299742,299

238,289473,376

6,634

718,299

24,000

(24,000)(24,000)

$

Professional Development

and Technology Grants

$

88,16188,161

68,67516,626

85,301

2,860

(2,860)(2,860)

$

Title IV Grants

$

448,753448,753

320,35110,68553,422

7,251

37,189

428,898

19,855

(19,855)(19,855)

$

Limited English and Immigrant

Students

$

103,630103,630

73,34414,661

837

14,188103,030

600

(600)(600)

$

Special Education

Grants

$

389,745389,745

363,11418,818

543

3,682386,157

3,588

(3,588)(3,588)

$

Homeless Education

$

20,54420,544

15,796

3,748

19,544

1,000

(1,000)(1,000)

$

Page 73(Continued)


Total revenues










E-Rate

$

63,72563,725

289,718

75,678365,396

(301,671)

(301,671)

314,558

$ 12,887


$

339,354339,354

218,37790,76014,953

324,090

15,264

(489)(489)

14,775

(57,599)

$ (42,824)


$ 800,609

800,609

498,918191,722

52290,321

19,126800,609

$



Page 74

Civic Center

$ 29,538

29,538

1,000

262

12,22813,490

16,048

16,048

211,066

$ 227,114

Community School

$ 89,538750

90,288

35,37618,778

108,098780

163,032

(72,744)

(72,744)

133,711

$ 60,967

Extracurricular Activities Fees

Tax Credit

$ 10,341

10,341

2,365

799

602

3,766

6,575

6,575

50,605

$ 57,180

Gifts and Donations

$ 26,151

26,151

12,276290

11,881

237

24,684

1,467

1,467

73,032

$ 74,499

Fingerprint

$ 287

287

287

287

1,023

$ 1,310

Textbooks

$ 1,333

1,333

953

953

380

380

12,467

$ 12,847

Page 75(Continued)


Total revenues










Insurance Refund

$ 148

148

148

148

34,133

$ 34,281


$ 2,292

2,292

625

625

1,667

1,667

4,640

$ 6,307

Totals

$ 160,873908,727

2,196,2113,265,811

1,767,281904,514106,479380,03911,838

108,098185,775

3,464,024

(198,213)

(52,487)(52,487)

(250,700)

963,837

$ 713,137



Page 76

Total revenues












Budget

$ 1,230103,184

104,414

245,992245,992

(141,578)

(141,578)

$ (141,578)

Actual

$ 745104,490

105,235

22,90422,904

82,331

82,331

186,106

$ 268,437

Variance - Positive

(Negative)

$ (485)1,306

821

223,088223,088

223,909

223,909

186,106

$ 410,015

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

BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS


Page 78

County, City, and Town Grants

Budget

$

$

Actual

$ 500

500

368

368

132

(95)(95)

37

95

$ 132

Variance - Positive

(Negative)

$ 500

500

(368)

(368)

132

(95)(95)

37

95

$ 132

Structured English Immersion

Budget

$

$

Actual

$ 2,878

2,878

2,878

2,878

$

Variance - Positive

(Negative)

$ 2,878

2,878

(2,878)

(2,878)

$

Page 79(Continued)

Total revenues











Student Success

Budget

$

30,2916,9984,6592,0321,4912,403

47,874

(47,874)

(47,874)

$ (47,874)

Non-GAAP Actual

$ 47,875

47,875

30,2926,9984,6592,0321,4912,403

47,875

$

Variance - Positive

(Negative)

$ 47,875

47,875

(1)

(1)

47,874

47,874

$ 47,874




Page 80

Title I Grants

Budget

$

443,390443,390

270,451550,00010,000

830,451

(387,061)

(387,061)

$ (387,061)

Actual

$

742,299742,299

238,289473,376

6,634

718,299

24,000

(24,000)(24,000)

$

Variance - Positive

(Negative)

$

298,909298,909

32,16276,6243,366

112,152

411,061

(24,000)(24,000)

387,061

$ 387,061

Professional Development and Technology Grants

Budget

$

80,00023,217

103,217

(103,217)

(103,217)

$ (103,217)

Actual

$

88,16188,161

68,67516,626

85,301

2,860

(2,860)(2,860)

$

Variance - Positive

(Negative)

$

88,16188,161

11,3256,591

17,916

106,077

(2,860)(2,860)

103,217

$ 103,217

Page 81(Continued)

Total revenues











Title IV Grants

Budget

$

193,269193,269

400,00015,00065,000

10,000

75,587

565,587

(372,318)

(372,318)

$ (372,318)

Actual

$

448,753448,753

320,35110,68553,422

7,251

37,189

428,898

19,855

(19,855)(19,855)

$

Variance - Positive

(Negative)

$

255,484255,484

79,6494,315

11,578

2,749

38,398136,689

392,173

(19,855)(19,855)

372,318

$ 372,318




Page 82

Limited English and Immigrant Students

Budget

$

39,54139,541

77,00016,0001,000

21,917115,917

(76,376)

(76,376)

$ (76,376)

Actual

$

103,630103,630

73,34414,661

837

14,188103,030

600

(600)(600)

$

Variance - Positive

(Negative)

$

64,08964,089

3,6561,339

163

7,72912,887

76,976

(600)(600)

76,376

$ 76,376

Special Education Grants

Budget

$

329,224329,224

375,00021,0001,000

9,683406,683

(77,459)

(77,459)

$ (77,459)

Actual

$

389,745389,745

363,11418,818

543

3,682386,157

3,588

(3,588)(3,588)

$

Variance - Positive

(Negative)

$

60,52160,521

11,8862,182

457

6,00120,526

81,047

(3,588)(3,588)

77,459

$ 77,459

Page 83(Continued)

Total revenues











Homeless Education

Budget

$

20,000

5,000

25,000

(25,000)

(25,000)

$ (25,000)

Actual

$

20,54420,544

15,796

3,748

19,544

1,000

(1,000)(1,000)

$

Variance - Positive

(Negative)

$

20,54420,544

4,204

1,252

5,456

26,000

(1,000)(1,000)

25,000

$ 25,000




Page 84

Medicaid Reimbursement

Budget

$

29,98229,982

5,37980,000

85,379

(55,397)

(55,397)

$ (55,397)

Non-GAAP Actual

$ 2

60,20260,204

5507,371

7,921

52,283

52,283

33,842

$ 86,125

Variance - Positive

(Negative)

$ 2

30,22030,222

4,82972,629

77,458

107,680

107,680

33,842

$ 141,522

E-Rate

Budget

$

300,000

122,510422,510

(422,510)

(422,510)

$ (422,510)

Actual

$

63,72563,725

289,718

75,678365,396

(301,671)

(301,671)

314,558

$ 12,887

Variance - Positive

(Negative)

$

63,72563,725

10,282

46,83257,114

120,839

120,839

314,558

$ 435,397

Page 85(Continued)

Total revenues












Budget

$

154,138154,138

290,000100,00025,991

415,991

(261,853)

(261,853)

$ (261,853)

Actual

$

339,354339,354

218,37790,76014,953

324,090

15,264

(489)(489)

14,775

(57,599)

$ (42,824)

Variance - Positive

(Negative)

$

185,216185,216

71,6239,240

11,038

91,901

277,117

(489)(489)

276,628

(57,599)

$ 219,029




Page 86


Budget

$ 387,943

387,943

554,937220,000

1,00097,000

30,000902,937

(514,994)

(514,994)

$ (514,994)

Actual

$ 800,609

800,609

498,918191,722

52290,321

19,126800,609

$

Variance - Positive

(Negative)

$ 412,666

412,666

56,01928,278

4786,679

10,874102,328

514,994

514,994

$ 514,994

School Plant

Budget

$ 28,225

28,225

12,285

181,251

193,536

(165,311)

(165,311)

$ (165,311)

Non-GAAP Actual

$ 28,781

28,781

2,94667

24,001

27,014

1,767

1,767

172,188

$ 173,955

Variance - Positive

(Negative)

$ 556

556

9,339(67)

157,250

166,522

167,078

167,078

172,188

$ 339,266

Page 87(Continued)

Total revenues











Civic Center

Budget

$ 9,208

9,208

30,000

1,654

200,000231,654

(222,446)

(222,446)

$ (222,446)

Actual

$ 29,538

29,538

1,000

262

12,22813,490

16,048

16,048

211,066

$ 227,114

Variance - Positive

(Negative)

$ 20,330

20,330

29,000

1,392

187,772218,164

238,494

238,494

211,066

$ 449,560




Page 88

Community School

Budget

$ 306,082

306,082

56,37424,000

150,0002,000

232,374

73,708

73,708

$ 73,708

Actual

$ 89,538750

90,288

35,37618,778

108,098780

163,032

(72,744)

(72,744)

133,711

$ 60,967

Variance - Positive

(Negative)

$ (216,544)750

(215,794)

20,9985,222

41,9021,220

69,342

(146,452)

(146,452)

133,711

$ (12,741)

Auxiliary Operations

Budget

$ 11,164

11,164

6,000

10,486

16,486

(5,322)

(5,322)

$ (5,322)

Non-GAAP Actual

$ 12,918

12,918

2,285

73

8,313

10,671

2,247

2,247

4,027

$ 6,274

Variance - Positive

(Negative)

$ 1,754

1,754

3,715

(73)

2,173

5,815

7,569

7,569

4,027

$ 11,596

Page 89(Continued)

Total revenues











Extracurricular Activities Fees Tax Credit

Budget

$ 8,427

8,427

55,000

3,458

3,458

61,916

(53,489)

(53,489)

$ (53,489)

Actual

$ 10,341

10,341

2,365

799

602

3,766

6,575

6,575

50,605

$ 57,180

Variance - Positive

(Negative)

$ 1,914

1,914

52,635

2,659

2,856

58,150

60,064

60,064

50,605

$ 110,669




Page 90

Gifts and Donations

Budget

$ 29,843

29,843

55,0002,658

32,600

1,000

91,258

(61,415)

(61,415)

$ (61,415)

Actual

$ 26,151

26,151

12,276290

11,881

237

24,684

1,467

1,467

73,032

$ 74,499

Variance - Positive

(Negative)

$ (3,692)

(3,692)

42,7242,368

20,719

763

66,574

62,882

62,882

73,032

$ 135,914

Fingerprint

Budget

$ 312

312

3,763

3,763

(3,451)

(3,451)

$ (3,451)

Actual

$ 287

287

287

287

1,023

$ 1,310

Variance - Positive

(Negative)

$ (25)

(25)

3,763

3,763

3,738

3,738

1,023

$ 4,761

Page 91(Continued)

Total revenues











Textbooks

Budget

$ 1,598

1,598

13,001

13,001

(11,403)

(11,403)

$ (11,403)

Actual

$ 1,333

1,333

953

953

380

380

12,467

$ 12,847

Variance - Positive

(Negative)

$ (265)

(265)

12,048

12,048

11,783

11,783

12,467

$ 24,250




Page 92

Indirect Costs

Budget

$ 3,274

3,274

125,760281,000650,000

1,056,760

(1,053,486)

(1,053,486)

$ (1,053,486)

Non-GAAP Actual

$ 4,353

4,353

1,66461,928

120,486

184,078

(179,725)

356,773

356,773

177,048

1,055,445

$ 1,232,493

Variance - Positive

(Negative)

$ 1,079

1,079

124,096219,072529,514

872,682

873,761

356,773

356,773

1,230,534

1,055,445

$ 2,285,979

Insurance Refund

Budget

$ 140

140

34,178

34,178

(34,038)

(34,038)

$ (34,038)

Actual

$ 148

148

148

148

34,133

$ 34,281

Variance - Positive

(Negative)

$ 8

8

34,178

34,178

34,186

34,186

34,133

$ 68,319

Page 93(Continued)

Total revenues












Budget

$ 1,617

1,617

5,389

5,389

(3,772)

(3,772)

$ (3,772)

Actual

$ 2,292

2,292

625

625

1,667

1,667

4,640

$ 6,307

Variance - Positive

(Negative)

$ 675

675

4,764

4,764

5,439

5,439

4,640

$ 10,079




Page 94

Totals

Budget

$ 401,120491,127

1,189,5442,081,791

2,377,6651,355,0361,084,593

399,03220,949

162,889707,689

6,107,853

(4,026,062)

(4,026,062)

$ (4,026,062)

Non-GAAP Actual

$ 206,927956,602

2,256,4133,419,942

1,804,468974,057263,069382,07113,329

118,814185,775

3,741,583

(321,641)

356,773(52,487)304,286

(17,355)

2,229,339

$ 2,211,984

Variance - Positive

(Negative)

$ (194,193)465,475

1,066,8691,338,151

573,197380,979821,52416,9617,620

44,075521,914

2,366,270

3,704,421

356,773(52,487)304,286

4,008,707

2,229,339

$ 6,238,046

Page 95

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

Revenues:Other localProperty taxes

Total revenues

Expenditures:Debt service -

Principal retirementInterest and fiscal charges

Total expenditures


Other financing sources (uses):Transfers in





Budgeted Amounts

Original

$ 7,417657,298664,715

960,000372,481

1,332,481

(667,766)

(667,766)

$ (667,766)

Final

$ 7,417657,298664,715

960,000379,494

1,339,494

(674,779)

(674,779)

$ (674,779)

Actual

$ 2,7331,312,9811,315,714

960,000373,458

1,333,458

(17,744)

719719

(17,025)

17,443

$ 418


Positive (Negative)

$ (4,684)655,683650,999

6,0366,036

657,035

719719

657,754

17,443

$ 675,197


CHANGES IN FUND BALANCES - BUDGET AND ACTUALDEBT SERVICE


Page 98

CAPITAL PROJECTS FUNDS Insurance Proceeds - to account for the monies received from insurance claims. Litigation Recovery - to account for monies received for and derived from litigation. Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items. Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property. Bond Building - to account for proceeds from District bond issues that are expended on the acquisition or lease of sites; construction or renovation of school buildings; supplying school buildings with furniture, equipment and technology; improving school grounds; or purchasing pupil transportation vehicles. Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions. Building Renewal Grant - to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.

ASSETSCash and investmentsProperty taxes receivableDue from governmental entitiesDue from other funds

Total assets


Accounts payableConstruction contracts payableDue to other funds

Total liabilities

Deferred inflows of resources:Unavailable revenues - property taxes


Total fund balances


Insurance Proceeds

$ 42,330

$ 42,330

$

42,330

42,330

$ 42,330

Litigation Recovery

$ 24,230

$ 24,230

$

24,230

24,230

$ 24,230

Unrestricted Capital Outlay

$ 466,60735,9364,206

570,864$ 1,077,613

$ 219,296

219,296

31,946

826,371

826,371

$ 1,077,613

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

JUNE 30, 2015

Page 100

Adjacent Ways

$ 475,31822,056

$ 497,374

$ 178,497

178,497

20,808

298,069

298,069

$ 497,374

Bond Building

$ 172,396

$ 172,396

$ 2,880

2,880

169,516

169,516

$ 172,396

Gifts and Donations -

Capital

$ 87

$ 87

$

87

87

$ 87

Building Renewal Grant

$

$

$ 8,1783,228

11,406

(11,406)(11,406)

$

Totals

$ 1,180,96857,9924,206

570,864$ 1,814,030

$ 397,79311,0583,228

412,079

52,754

1,360,603(11,406)

1,349,197

$ 1,814,030

Page 101


Total revenues


InstructionSupport services - students and staffOperation and maintenance of plant servicesStudent transportation services








Insurance Proceeds

$ 739

739

1,2922,086

3,378

(2,639)

(2,639)

44,969

$ 42,330

Litigation Recovery

$ 4,880

4,880

22,83422,834

(17,954)

(17,954)

42,184

$ 24,230


$ 3,4611,071,304

13,2731,088,038

395,43643,109

267

684,5041,123,316

(35,278)

(35,278)

861,649

$ 826,371


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2015

Page 102

Adjacent Ways

$ 1,388314,149

315,537

200,883200,883

114,654

114,654

183,415

$ 298,069

Bond Building

$ 719

719

266,894266,894

(266,175)

(719)(719)

(266,894)

436,410

$ 169,516

Gifts and Donations -

Capital

$ 1

1

1

1

86

$ 87


$

109,104109,104

111,059111,059

(1,955)

(1,955)

(9,451)

$ (11,406)

Totals

$ 11,1881,385,453

122,3771,519,018

395,43643,1091,5592,086

1,286,1741,728,364

(209,346)

(719)(719)

(210,065)

1,559,262

$ 1,349,197

Page 103

Total revenues










Increase (decrease) in reserve for prepaid items


Insurance Proceeds

Budget

$ 2,233

2,233

20,00025,027

45,027

(42,794)

(42,794)

$ (42,794)

Actual

$ 739

739

1,2922,086

3,378

(2,639)

(2,639)

44,969

$ 42,330

Variance - Positive

(Negative)

$ (1,494)

(1,494)

18,70822,941

41,649

40,155

40,155

44,969

$ 85,124


BUDGET AND ACTUALNON-MAJOR CAPITAL PROJECTS FUNDS


Page 104

Litigation Recovery

Budget

$ 259

259

42,65242,652

(42,393)

(42,393)

$ (42,393)

Actual

$ 4,880

4,880

22,83422,834

(17,954)

(17,954)

42,184

$ 24,230

Variance - Positive

(Negative)

$ 4,621

4,621

19,81819,818

24,439

24,439

42,184

$ 66,623


Budget

$ 8,9641,114,732

12,5901,136,286

757,19475,000

500

1,050,0001,882,694

(746,408)

(746,408)

$ (746,408)

Non-GAAP Actual

$ 3,4611,071,304

13,2731,088,038

395,43643,109

267

716,9021,155,714

(67,676)

(67,676)

861,649

32,398

$ 826,371

Variance - Positive

(Negative)

$ (5,503)(43,428)

683(48,248)

361,75831,891

233

333,098726,980

678,732

678,732

861,649

32,398

$ 1,572,779

Page 105(Continued)

Total revenues












Adjacent Ways

Budget

$ 1,459172

1,631

372,773372,773

(371,142)

(371,142)

$ (371,142)

Actual

$ 1,388314,149

315,537

200,883200,883

114,654

114,654

183,415

$ 298,069

Variance - Positive

(Negative)

$ (71)313,977

313,906

171,890171,890

485,796

485,796

183,415

$ 669,211




Page 106

Bond Building

Budget

$

465,413465,413

(465,413)

(465,413)

$ (465,413)

Actual

$ 719

719

266,894266,894

(266,175)

(719)(719)

(266,894)

436,410

$ 169,516

Variance - Positive

(Negative)

$ 719

719

198,519198,519

199,238

(719)(719)

198,519

436,410

$ 634,929

Gifts and Donations - Capital

Budget

$

$

Actual

$ 1

1

1

1

86

$ 87

Variance - Positive

(Negative)

$ 1

1

1

1

86

$ 87

Page 107(Continued)

Total revenues













Budget

$

149,023149,023

525,303525,303

(376,280)

(376,280)

$ (376,280)

Actual

$

109,104109,104

111,059111,059

(1,955)

(1,955)

(9,451)

$ (11,406)

Variance - Positive

(Negative)

$

(39,919)(39,919)

414,244414,244

374,325

374,325

(9,451)

$ 364,874




Page 108

Totals

Budget

$ 12,9151,114,904

161,6131,289,432

757,19475,00020,50025,027

2,456,1413,333,862

(2,044,430)

(2,044,430)

$ (2,044,430)

Non-GAAP Actual

$ 11,1881,385,453

122,3771,519,018

395,43643,1091,5592,086

1,318,5721,760,762

(241,744)

(719)(719)

(242,463)

1,559,262

32,398

$ 1,349,197

Variance - Positive

(Negative)

$ (1,727)270,549(39,236)229,586

361,75831,89118,94122,941

1,137,5691,573,100

1,802,686

(719)(719)

1,801,967

1,559,262

32,398

$ 3,393,627

Page 109

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

ASSETSCash and investments

Total assets

LIABILITIESDeposits held for othersDue to governmental entitiesDue to student groups

Total liabilities

Student Activities

$ 8,069$ 8,069

$

8,069$ 8,069

Employee Withholding

$ 2,014,990$ 2,014,990

$ 2,014,990

$ 2,014,990

Intergovernmental Agreements

$ 85,825$ 85,825

$ 85,825

$ 85,825

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

AGENCY FUNDSJUNE 30, 2015

Page 112

Totals

$ 2,108,884$ 2,108,884

$ 2,014,99085,8258,069

$ 2,108,884

Page 113

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

ALL AGENCY FUNDSYEAR ENDED JUNE 30, 2015

Beginning EndingBalance Additions Deductions Balance

AssetsCash and investments $ 8,264 $ 30,931 $ 31,126 $ 8,069

Total assets $ 8,264 $ 30,931 $ 31,126 $ 8,069

LiabilitiesDue to student groups $ 8,264 $ 30,931 $ 31,126 $ 8,069

Total liabilities $ 8,264 $ 30,931 $ 31,126 $ 8,069

EMPLOYEE WITHHOLDING FUND

AssetsCash and investments $ 1,728,611 $ 1,515,842 $ 1,229,463 $ 2,014,990

Total assets $ 1,728,611 $ 1,515,842 $ 1,229,463 $ 2,014,990

LiabilitiesDeposits held for others $ 1,728,611 $ 1,515,842 $ 1,229,463 $ 2,014,990

Total liabilities $ 1,728,611 $ 1,515,842 $ 1,229,463 $ 2,014,990

INTERGOVERNMENTAL AGREEMENTS

AssetsCash and investments $ 85,631 $ 370 $ 176 $ 85,825

Total assets $ 85,631 $ 370 $ 176 $ 85,825

LiabilitiesDue to governmental entities 85,631 370 176 85,825

Total liabilities $ 85,631 $ 370 $ 176 $ 85,825

TOTAL AGENCY FUNDS

AssetsCash and investments $ 1,822,506 $ 1,547,143 $ 1,260,765 $ 2,108,884

Total assets $ 1,822,506 $ 1,547,143 $ 1,260,765 $ 2,108,884

LiabilitiesDeposits held for others 1,728,611 1,515,842 1,229,463 2,014,990Due to governmental entities 85,631 370 176 85,825Due to student groups 8,264 30,931 31,126 8,069

Total liabilities $ 1,822,506 $ 1,547,143 $ 1,260,765 $ 2,108,884

STUDENT ACTIVITIES FUND

Page 114

STATISTICAL SECTION

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

Financial Trends

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

Revenue Capacity

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

Debt Capacity

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

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

Operating Information

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

2015 2014 2013 2012 2011Net Position:

Net investment in capital assets 45,246,641$ 45,354,673$ 44,097,255$ 42,966,411$ 41,035,544$ Restricted 5,232,083 4,661,075 6,932,887 7,770,335 6,163,771 Unrestricted (15,748,921) 4,013,699 2,753,258 2,253,280 5,406,126

Total net position 34,729,803$ 54,029,447$ 53,783,400$ 52,990,026$ 52,605,441$

2010 2009 2008 2007 2006Net Position:

Net investment in capital assets 35,858,240$ 34,776,373$ 32,149,707$ 31,560,835$ 29,732,950$ Restricted 4,310,070 3,817,549 2,282,707 1,686,828 1,495,963 Unrestricted 7,529,214 6,410,968 6,490,338 4,663,861 4,398,417

Total net position 47,697,524$ 45,004,890$ 40,922,752$ 37,911,524$ 35,627,330$

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

Page 116

2015 2014 2013 2012 2011

Instruction 12,211,924$ 10,987,980$ 9,852,917$ 12,914,550$ 12,348,715$ Support services - students and staff 3,284,905 3,223,435 3,185,281 2,473,014 2,163,411 Support services - administration 2,753,821 2,473,634 2,535,006 2,509,864 3,103,069 Operation and maintenance of plant services 2,550,585 2,182,106 1,934,821 1,888,304 1,881,082 Student transportation services 581,706 549,204 449,625 451,878 582,123 Operation of non-instructional services 2,102,998 1,988,363 1,771,719 1,603,656 1,634,857 Interest on long-term debt 373,458 412,007 449,556 502,479 575,150

Total expenses 23,859,397 21,816,729 20,178,925 22,343,745 22,288,407

Program RevenuesCharges for services:

Instruction 135,328 64,863 32,208 148,061 100,769 Operation of non-instructional services 261,600 236,035 300,643 211,973 174,672 Other activities 28,619 25,094 123,074

Operating grants and contributions 5,243,843 4,368,531 3,891,507 4,038,734 4,530,533 Capital grants and contributions 274,952 855,013 861,442 42,963 86,060

Total program revenues 5,944,342 5,524,442 5,085,800 4,466,825 5,015,108

Net (Expense)/Revenue (17,915,055)$ (16,292,287)$ (15,093,125)$ (17,876,920)$ (17,273,299)$

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

only six years are shown.

(Continued)

Note:

LAST TEN FISCAL YEARS(Accrual basis of accounting)


Expenses

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

Source:

Page 117

2010 2009 2008 2007 2006Expenses

Instruction 13,242,347$ 12,377,468$ 12,067,700$ 11,643,334$ 10,784,163$ Support services - students and staff 3,096,019 3,287,085 2,803,498 2,606,466 2,330,283 Support services - administration 3,395,950 2,715,829 3,340,825 2,503,541 2,287,772 Operation and maintenance of plant services 2,318,532 1,918,209 2,095,758 1,999,588 1,663,190 Student transportation services 452,766 554,339 530,811 487,716 516,554 Operation of non-instructional services 1,629,019 1,636,779 1,709,907 1,612,100 1,471,457 Interest on long-term debt 512,204 509,878 448,732 246,386 282,507

Total expenses 24,646,837 22,999,587 22,997,231 21,099,131 19,335,926

Program RevenuesCharges for services:

Instruction 75,352 343,507 42,066 105,139 127,087 Operation of non-instructional services 185,353 213,434 266,018 206,722 195,472 Other activities 106,671 76,166 9,610 21,067 16,832

Operating grants and contributions 4,600,256 4,272,316 3,977,492 3,156,528 3,361,682 Capital grants and contributions 322,909 92,129 583,122 18,962 243,148

Total program revenues 5,290,541 4,997,552 4,878,308 3,508,418 3,944,221


(Concluded)

(Accrual basis of accounting)LAST TEN FISCAL YEARS


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

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

Page 118

2015 2014 2013 2012 2011


General Revenues: Taxes:

Property taxes, levied for general purposes 3,936,020 4,029,371 5,212,610 5,917,475 5,620,663 Property taxes, levied for debt service 1,320,185 654,691 701,890 2,741,424 5,231,260 Property taxes, levied for capital outlay 1,403,736 1,146,878 103,852 194,829 1,367,233

Investment income 29,948 34,086 37,739 70,272 114,652 Unrestricted county aid 980,201 905,894 858,246 878,815 933,379 Unrestricted state aid 10,282,770 9,737,432 8,944,928 8,410,653 8,903,392 Unrestricted federal aid 60,202 29,982 27,234 48,037 123,285

Total general revenues 18,013,062 16,538,334 15,886,499 18,261,505 22,293,864

Changes in Net Position 98,007$ 246,047$ 793,374$ 384,585$ 5,020,565$


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

(Continued)


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

LAST TEN FISCAL YEARS(Accrual basis of accounting)

Page 119

2010 2009 2008 2007 2006


General Revenues: Taxes:

Property taxes, levied for general purposes 3,145,217 4,149,555 4,710,025 4,741,581 3,267,472 Property taxes, levied for debt service 5,690,850 2,256,538 1,786,383 1,283,205 1,155,435 Property taxes, levied for capital outlay 1,510,083 2,361,148 878,730 1,092,385 1,865,529

Investment income 141,283 379,371 400,312 241,734 112,045 Unrestricted county aid 936,891 8,981 740,804 Unrestricted state aid 9,259,126 12,937,561 13,354,701 12,507,021 15,638,275 Gain on sale of capital assets 387,136

Total general revenues 22,048,930 22,084,173 21,130,151 19,874,907 22,779,560

Changes in Net Position 2,692,634$ 4,082,138$ 3,011,228$ 2,284,194$ 7,387,855$

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

(Concluded)

GENERAL REVENUES AND TOTAL CHANGES IN NET POSITIONLAST TEN FISCAL YEARS


(Accrual basis of accounting)

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


Source: Note:

Page 120

2015 2014 2013 2012 2011General Fund:

Nonspendable 463,696$ 342,713$ 570,498$ 386,525$ 105,765$ Unassigned 2,543,615 3,168,455 1,513,917 841,638 942,268 Reserved Unreserved

Total General Fund 3,007,311$ 3,511,168$ 2,084,415$ 1,228,163$ 1,048,033$

All Other Governmental Funds:Nonspendable $ 79,512$ 47,125$ 68,686$ 61,891$ Restricted 5,031,697 4,899,616 9,158,537 11,025,906 10,143,062 Unassigned (54,230) (67,050) Reserved Unreserved, reported in:

Special revenue funds Capital projects funds Debt service fund

Total all other governmental funds 4,977,467$ 4,912,078$ 9,205,662$ 11,094,592$ 10,204,953$

(Continued)

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


LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 121

2010 2009 2008 2007 2006General Fund:

Reserved 145,092$ 155,953$ 550,484$ 140,342$ 216,692$ Unreserved (897,767) 1,622,890 2,716,830 2,524,756 1,869,575

Total General Fund (752,675)$ 1,778,843$ 3,267,314$ 2,665,098$ 2,086,267$

All Other Governmental Funds:Reserved 55,874$ 29,246$ 29,044$ 28,928$ 33,853$ Unreserved, reported in:

Special revenue funds 3,339,064 2,155,428 1,900,968 1,070,022 1,538,839 Capital projects funds 9,217,480 4,714,909 3,585,437 3,801,149 846,750 Debt service fund 569,753 622,112 920,855 748,814 507,428

Total all other governmental funds 13,182,171$ 7,521,695$ 6,436,304$ 5,648,913$ 2,926,870$

Source:Note:

(Concluded)

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


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


Page 122

2015 2014 2013 2012 2011Federal sources:

Federal grants 2,256,413$ 2,174,902$ 2,316,127$ 1,974,922$ 2,127,345$ State Fiscal Stabilization (ARRA) 123,285 Education Jobs 17,255 487,069 National School Lunch Program 2,202,048 1,957,967 1,820,542 1,671,198 1,598,818 Total federal sources 4,458,461 4,132,869 4,136,669 3,663,375 4,336,517

State sources:State equalization assistance 9,232,515 8,724,191 8,181,417 7,653,635 8,220,113 State grants 803,487 783,829 488,803 419,969 356,614 School Facilities Board 109,104 235,495 12,225 Other revenues 1,051,005 1,013,241 763,511 757,018 683,748 Total state sources 11,196,111 10,756,756 9,445,956 8,830,622 9,260,475

Local sources:Property taxes 6,648,839 5,830,514 6,059,209 9,029,927 12,139,723 County aid 980,201 905,894 858,246 883,315 937,376 Food service sales 208,471 179,099 169,828 188,644 165,954 Investment income 29,948 34,086 37,739 70,272 104,759 Other revenues 255,812 162,394 232,770 238,374 284,735 Total local sources 8,123,271 7,111,987 7,357,792 10,410,532 13,632,547 Total revenues 23,777,843$ 22,001,612$ 20,940,417$ 22,904,529$ 27,229,539$

(Continued)

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS REVENUES



(Modified accrual basis of accounting)

Page 123

2010 2009 2008 2007 2006Federal sources:

Federal grants 3,180,403$ 2,336,714$ 2,718,144$ 1,597,157$ 2,018,286$ National School Lunch Program 1,640,251 1,562,355 1,509,782 1,427,262 1,240,107 Total federal sources 6,403,099 3,899,069 4,227,926 3,024,419 3,258,393

State sources:State equalization assistance 8,507,494 11,935,102 11,929,424 11,163,237 8,391,567 State grants 231,646 581,763 132,644 151,071 120,823 School Facilities Board 33,257 247,753 5,818,260 Other revenues 751,632 1,002,459 1,392,020 1,096,031 1,434,371 Total state sources 9,490,772 13,519,324 13,487,345 12,658,092 15,765,021

Local sources:Property taxes 10,307,157 8,620,437 7,338,515 7,044,197 6,379,136 County aid 936,891 8,981 740,804 Food service sales 184,485 212,959 209,386 206,722 195,472 Investment income 141,283 396,495 400,423 241,734 112,045 Other revenues 384,638 420,148 326,271 157,206 143,919 Total local sources 11,954,454 9,650,039 8,274,595 7,658,840 7,571,376 Total revenues 27,848,325$ 27,068,432$ 25,989,866$ 23,341,351$ 26,594,790$

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

(Concluded)

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17GOVERNMENTAL FUNDS REVENUES


Page 124

2015 2014 2013 2012 2011


Instruction 10,838,256$ 9,807,769$ 8,912,255$ 10,133,630$ 10,862,945$ Support services - students and staff 3,213,204 2,979,511 3,236,118 2,333,645 1,992,982 Support services - administration 2,526,726 2,259,584 2,232,514 2,312,360 2,762,827 Operation and maintenance of plant services 2,476,051 1,799,211 1,922,817 2,031,235 1,821,318 Student transportation services 407,610 429,017 337,382 345,487 445,660 Operation of non-instructional services 1,963,340 1,976,357 1,701,185 1,570,926 1,579,750

Capital outlay 1,499,137 4,064,589 2,248,680 1,468,423 6,390,398 Debt service -

Judgments against the district Interest and fiscal charges 373,458 412,007 449,556 502,479 551,415 Principal retirement 960,000 945,000 1,095,000 1,424,130 4,789,061 Bond issuance costs 85,812

Total expenditures 24,257,782$ 24,673,045$ 22,135,507$ 22,122,315$ 31,282,168$

Expenditures for capitalized assets 588,474$ 3,517,739$ 1,945,626$ 1,158,407$ 5,542,378$

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

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

(Continued)

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



Page 125

2010 2009 2008 2007 2006


Instruction 11,362,447$ 10,798,527$ 10,522,071$ 10,084,052$ 8,757,017$ Support services - students and staff 2,773,280 3,251,634 2,776,484 2,448,491 2,305,523 Support services - administration 2,817,817 2,712,710 3,040,061 2,380,363 2,146,888 Operation and maintenance of plant services 1,827,175 1,737,699 2,006,035 1,882,546 1,662,565 Student transportation services 419,243 380,053 438,620 403,007 461,984 Operation of non-instructional services 1,612,144 1,607,402 1,668,947 1,557,329 1,414,718

Capital outlay 7,321,026 8,366,841 2,844,385 4,357,080 9,264,640 Debt service -

Judgments against the district Interest and fiscal charges 541,327 509,878 448,732 252,629 282,507 Principal retirement 5,732,190 2,666,701 1,760,179 1,144,948 986,112 Bond issuance costs 191,640 71,351 92,232

Total expenditures 34,598,289$ 32,102,796$ 25,505,514$ 24,602,677$ 27,281,954$

Expenditures for capitalized assets 4,886,872$ 7,448,289$ 1,174,801$ 3,304,936$ 7,477,985$

Debt service as a percentage ofnoncapital expenditures 21% 13% 9% 7% 6%

Source:

(Concluded)

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




Page 126

2015 2014 2013 2012 2011

Excess (deficiency) of revenues over expenditures (479,939)$ (2,671,433)$ (1,195,090)$ 782,214$ (4,052,629)$

Other financing sources (uses):General obligation bonds issued 2,960,000 Premium on sale of bonds 62,077 Proceeds from sale of capital assets Transfers in 357,587 2,232,268 436,190 238,171 147,950 Transfers out (357,587) (2,232,268) (436,190) (238,171) (147,950)

Total other financing sources (uses) 3,022,077

Changes in fund balances (479,939)$ (2,671,433)$ (1,195,090)$ 782,214$ (1,030,552)$

2010 2009 2008 2007 2006

Excess (deficiency) of revenues over expenditures (6,749,964)$ (5,034,364)$ 484,352$ (1,261,326)$ (687,164)$

Other financing sources (uses):General obligation bonds issued 9,600,000 5,045,000 4,545,000 Premium on sale of bonds 220,763 54,227 98,475 Proceeds from sale of capital assets 42,392 430,000 Capital lease agreements 494,997 999,137 Transfers in 420,422 319,216 263,518 297,167 136,750 Transfers out (420,422) (319,216) (263,518) (297,167) (136,750)

Total other financing sources (uses) 9,863,155 5,099,227 494,997 4,643,475 1,429,137

Changes in fund balances 3,113,191$ 64,863$ 979,349$ 3,382,149$ 741,973$


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



(Modified accrual basis of accounting)

Page 127

Class 2015 2014 2013 2012 2011

Commercial, Industrial, Utilities and Mining $ 103,140,597 $ 101,084,914 $ 116,567,834 $ 140,646,514 $ 157,455,478

Agricultural and Vacant 9,989,781 9,488,919 13,025,329 17,316,222 14,866,641

Residential (Owner Occupied) 13,205,244 12,794,835 15,802,550 19,717,007 27,204,673

Residential (Rental) 13,558,914 11,918,055 11,313,644 11,497,307 13,305,766

Railroad, Private Cars and Airlines 802,418 729,361 563,334 397,082 413,468

Historical Property 1,206,010 1,226,017 1,260,946 1,597,234 1,944,300

Total $ 141,902,964 $ 137,242,101 $ 158,533,637 $ 191,171,366 $ 215,190,326

Estimated Actual Value (Full Cash Value) $ 1,188,317,026 $ 1,089,274,236 $ 1,203,115,235 $ 1,427,761,225 $ 1,758,571,294

Ratio of Primary Assessed Value to Estimated Actual Value 11.94% 12.60% 13.18% 13.39% 12.24%Total Direct Rate 4.57 4.19 4.05 4.93 5.30

Class 2010 2009 2008 2007 2006






Historical Property 1,895,552 2,198,596 2,352,288 384,102 620,831

Total $ 223,986,544 $ 189,230,206 $ 162,588,675 $ 136,101,370 $ 120,447,214

Estimated Actual Value (Full Cash Value) $ 1,983,394,506 $ 1,799,459,099 $ 1,444,571,697 $ 1,119,466,703 $ 919,976,598

Ratio of Primary Value to Estimated Actual Value 11.29% 10.52% 11.26% 12.16% 13.09%

Total Direct Rate 3.91 4.15 4.21 4.87 5.24

Source:

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

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


Fiscal Year

Fiscal Year

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

Page 128

Class 2015 2014 2013 2012 2011






Historical Property 1,672,000 1,738,824 1,307,649 1,671,727 2,178,443

Total $ 149,595,601 $ 138,355,884 $ 159,437,524 $ 194,630,208 $ 244,848,725

Ratio of Secondary Assessed Value to Estimated Actual Value 12.59% 12.70% 13.25% 13.63% 13.92%


Class 2010 2009 2008 2007 2006






Historical Property 2,127,634 2,361,779 2,461,473 488,273 737,531

Total $ 275,146,610 $ 241,078,826 $ 194,656,750 $ 150,922,738 $ 130,236,357

Ratio of Secondary Assessed Value to Estimated Actual Value 13.87% 13.40% 13.48% 13.48% 14.16%


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

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

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


Fiscal Year

Fiscal Year

Page 129

Class 2015 2014 2013 2012 2011

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

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 16 15 15 15 17

Class 2010 2009 2008 2007 2006

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

Agricultural and Vacant 16 16 16 16 16

Residential (Owner Occupied) 10 10 10 10 10

Residential (Rental) 10 10 10 10 10

Railroad, Private Cars and Airlines 18 20 21 22 21

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.Note: Additional classes of property exist, but do not amount to a significant portion of the District's total valuation, therefore they are not

included on this schedule.

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PROPERTY TAX ASSESSMENT RATIOS


Fiscal Year

Fiscal Year

Page 130

Fiscal Year City

Ended ofJune 30 County Avondale Primary Secondary Total

2015 0.51 1.32 0.14 1.52 0.14 1.82 3.75 1.75 4.53 1.98 2.59 4.57 2014 0.51 1.28 0.14 1.53 0.14 1.82 3.76 1.81 5.49 1.92 2.27 4.19 2013 0.47 1.24 0.18 1.38 0.10 1.82 3.42 1.33 4.85 2.38 1.67 4.05 2012 0.43 1.24 0.18 1.21 0.10 1.82 2.91 1.33 4.07 2.47 2.46 4.93 2011 0.36 1.05 0.15 0.97 0.10 1.82 2.44 1.11 2.72 2.19 3.11 5.30 2010 N/A 0.99 0.14 0.88 0.10 1.82 2.51 1.11 2.10 0.98 2.93 3.91 2009 N/A 1.03 0.14 0.94 0.10 1.82 2.30 1.11 2.61 2.46 1.69 4.15 2008 N/A 1.10 0.15 0.98 0.10 1.82 2.67 1.11 2.86 2.06 2.15 4.21 2007 N/A 1.18 0.20 1.06 0.12 1.82 2.97 1.17 4.26 2.64 2.23 4.87 2006 N/A 1.20 0.21 1.03 0.12 1.82 2.43 1.17 3.79 2.90 2.34 5.24

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17DIRECT AND OVERLAPPING PROPERTY TAX RATES


Source:

District Direct Rates

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

Overlapping Rates

State Equalization

Flood Control District

Community College District

Central Arizona Water

City of Phoenix

City of Tolleson

Tolleson Union High School

District No. 214

Page 131

Secondary Assessed Valuation

Secondary Assessed Valuation

LBA Realty Fund III Company IX LLC 8,272,637$ 5.53 % $ %ABS SW Investor LLC 4,831,938 3.23Raintree Pad 2 LLC 3,829,647 2.5691st Avenue Investments LLC 3,395,820 2.27Banner Health Systems 2,991,912 2.00Pratte Buckeye Property LLC 2,528,166 1.69The Prince Company 2,468,327 1.65Credit Suisse 1st Boston Mortgage Securities 2,468,327 1.65BRY PL LP 2,154,177 1.44Quiktrip Corporation 2,109,298 1.41Stokely Van Kamp 17,738,192 13.62 Smith's Food & Drug 14,990,205 11.51 Continental Pet Tech. 11,473,823 8.81 Albertson's Inc. 9,520,278 7.31 Willamette Industries Inc. 7,618,827 5.85 Landis Plastics, Inc. 6,069,014 4.66 Holsum Bakery 4,909,911 3.77 Cabot Industrial Properties 4,701,532 3.61 Reckitt&Coleman Inc. 4,206,634 3.23 Autozone 4,128,493 3.17

Total 35,050,249$ 23.43 % 85,356,909$ 65.54 %

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PRINCIPAL PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Percentage of District's Net

Assessed Valuation

Percentage of District's Net

Assessed Valuation

2006

Taxpayer

2015

Page 132

FiscalYear Taxes Levied Collections in

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

2015 6,712,294$ 6,569,985$ 97.88 % $ 6,569,985$ 97.88 %2014 5,875,068 5,758,897 98.02 113,206 5,872,103 99.952013 6,248,122 6,115,586 97.88 128,333 6,243,919 99.932012 9,517,820 8,917,804 93.70 578,149 9,495,953 99.772011 12,320,281 11,882,138 96.44 436,628 12,318,766 99.992010 10,372,359 9,976,501 96.18 328,031 10,304,532 99.352009 8,880,739 8,570,904 96.51 278,008 8,848,912 99.642008 7,606,016 7,317,560 96.21 278,521 7,596,081 99.872007 7,461,004 7,305,362 97.91 155,168 7,460,530 99.992006 6,434,077 6,297,234 97.87 130,784 6,428,018 99.91

Source:Notes: 1)

2)

Fiscal Year of the LevyCollected within the

of the Current Fiscal Year

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PROPERTY TAX LEVIES AND COLLECTIONS


Collected to the End

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

Amounts collected are on a cash basis.The source of this information is the 2014 Maricopa County Treasurer's records.

of LevyPercentage

of LevyPercentage

Page 133

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

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

2015 8,790,000$ 15,630$ 8,774,370$ 0.74 % 1,302$ $ 8,790,000$ 0.74 % 1,302$ 0.01 %2014 9,735,000 17,443 9,717,557 0.89 1,452 9,735,000 0.89 1,452 0.01 2013 10,830,000 707,157 10,122,843 0.84 1,615 10,830,000 0.90 1,615 0.01 2012 12,240,000 1,503,489 10,736,511 0.75 1,871 12,240,000 0.86 1,871 0.01 2011 17,015,000 535,314 16,479,686 0.94 2,589 14,130 17,029,130 0.97 2,591 0.01 2010 19,355,000 569,753 18,785,247 0.95 2,987 28,191 19,383,191 0.98 2,991 0.01 2009 12,040,000 622,112 11,417,888 0.63 1,847 417,989 12,457,989 0.69 1,911 0.01 2008 8,365,000 920,855 7,444,145 0.52 1,252 799,690 9,164,690 0.63 1,372 0.01 2007 9,300,000 748,814 8,551,186 0.76 1,661 694,872 9,994,872 0.89 1,785 0.01 2006 5,615,000 507,428 5,107,572 0.56 1,037 904,820 6,519,820 0.71 1,204 0.01


General Obligation Bonds

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17OUTSTANDING DEBT BY TYPE


Total Outstanding Debt

General Obligation

Bonds

Amounts Restricted

for PrincipalCapital Leases

Page 134

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Overlapping:Maricopa Community College District 654,190,000$ 0.49 % 3,205,531$ City of Tolleson 19,413,720 62.23 12,081,158 City of Avondale 28,560,000 5.52 1,576,512 City of Phoenix 1,526,775,000 0.31 4,733,003 Tolleson Union High School District No. 214 43,628,307 17.40 7,591,325

Subtotal, Overlapping Debt 29,187,529

Direct:Tolleson Elementary School District No. 17 8,790,000

Total Direct and Overlapping Governmental Activities Debt 37,977,529$

Net Direct General Obligation Bonded DebtAs a Percentage of Net Secondary Assessed Valuation 5.87 %

Net Direct and Overlapping General Bonded DebtPer Capita 5,624$ As a Percentage of Net Secondary Assessed Valuation 25.38 %As a Percentage of Estimated Actual Value (Full Cash Value) 3.19 %

Source:

Note:

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

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

JUNE 30, 2015

Governmental Unit

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

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

Page 135

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2015: Total Legal Debt Margin Calculation for Fiscal Year 2015:Secondary assessed valuation 149,595,601$ Secondary assessed valuation 149,595,601$ Debt limit (10% of assessed value) 14,959,560 Debt limit (15% of assessed value) 22,439,340 Debt applicable to limit 8,790,000 Debt applicable to limit 8,790,000 Legal debt margin 6,169,560$ Legal debt margin 13,649,340$

2015 2014 2013 2012 2011

Debt Limit 22,439,340$ 20,753,383$ 23,915,629$ 29,194,531$ 36,727,309$

Total net debt applicable to limit 8,790,000 9,735,000 10,830,000 12,240,000 17,015,000

Legal debt margin 13,649,340$ 11,018,383$ 13,085,629$ 16,954,531$ 19,712,309$

Total net debt applicable to the limit as a percentage of debt limit 39% 47% 45% 42% 46%

2010 2009 2008 2007 2006

Debt Limit 41,271,992$ 36,161,824$ 29,198,513$ 22,638,411$ 19,535,454$

Total net debt applicable to limit 19,355,000 12,040,000 8,365,000 9,300,000 5,615,000

Legal debt margin 21,916,992$ 24,121,824$ 20,833,513$ 13,338,411$ 13,920,454$

Total net debt applicable to the limit as a percentage of debt limit 47% 33% 29% 41% 29%

Source:Notes: 1)

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

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17LEGAL DEBT MARGIN INFORMATION




Page 136

Estimated

Year Population (thousands)

2014 4,087,191 $ 168,483,421 $ 41,222 % 6,750 2013 4,009,412 147,700,000 27,552 6,704 2012 3,942,000 147,724,392 37,474 6,704 2011 3,843,370 142,864,275 37,352 6,541 2010 3,817,117 142,091,618 35,319 6,573 2009 4,023,331 147,122,078 37,168 6,480 2008 3,987,942 139,665,253 36,135 6,520 2007 3,907,492 132,423,154 35,046 6,680 2006 3,792,675 120,716,738 33,178 5,600 2005 3,648,545 111,103,576 31,757 5,415

Sources:

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

LAST TEN CALENDAR YEARS

Personal Income Per Capita

IncomeUnemployment

RateDistrict

Population

The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.

The source of the "Population" and "Unemployment Rate" information from 2004 through 2010 is theUniversity of Arizona, Eller College of Management, Economic and Business Research Center. For 2011through 2014, the source of the information is the Arizona Office of Employment and Population Statistics.

5.9 6.2 7.1 8.4 8.3 8.3 4.9 3.2 3.5 4.1

Page 137

Percentage Percentageof Total of Total

Employees Employment Employees Employment

State of Arizona 49,800 2.71 % 49,958 2.61 %Wal-Mart Stores Inc. 30,634 1.67 28,246 1.47 Banner Health Systems 26,472 1.44 19,250 1.00 City of Phoenix 15,100 0.82 13,844 0.72 Wells Fargo Company 13,287 0.72 11,533 0.60 Maricopa County 12,698 0.69 13,002 0.68 Fry's Food and Drug Stores 12,510 0.68 Intel Corp. 11,760 0.64 10,100 0.58 Arizona State University 11,185 0.61 11,202 0.53 Bank of America 9,809 0.53 U.S. Postal Service 11,000 0.57 Honeywell 10,700 0.56

Total 193,255 10.51 % 178,835 9.32 %

Total employment 1,863,600 1,916,003

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

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2015 2006

Page 138

2015 2014 2013 2012 2011

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

Total supervisory 7 7 7 7 7 Instruction

Teachers 144 136 140 127 143 Other professionals (instructional) 12 9 13 17 23 Aides 30 26 28 16 18

Total instruction 186 171 181 160 184 Student Services

Nurses 3 2 Health services 2 3 4 5 3 Librarians 3 3 3 4 2 Technicians 9 8 2 2

Total student services 17 16 9 11 5 Support and Administration

Office staff 8 8 9 12 8 Secretaries and clerical 10 10 6 5 8 Maintenance and custodial 10 10 9 8 8 Transportation 9 9 9 9 9 Technology 3 4 4 3 3 Food service 7 9 9 8 9 Other 7 8 5 4 4

Total support and administration 54 58 51 49 49

Total 264 252 248 227 245

(Continued)

Full-time Equivalent Employees as of June 30


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

Page 139

2010 2009 2008 2007 2006

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

Total supervisory 7 7 7 6 7 Instruction

Teachers 146 148 119 115 107 Other professionals (instructional) 15 19 40 39 39 Aides 18 17 19 15 11

Total instruction 179 184 178 169 157 Student Services

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

Total student services 6 14 11 11 8 Support and Administration

Office staff 9 11 10 9 10 Secretaries and clerical 8 9 11 12 10 Maintenance and custodial 9 19 20 20 27 Transportation 9 6 7 7 10 Technology 3 3 3 1 1 Food service 9 10 11 12 18 Other 4 12 2 3 6

Total support and administration 51 70 64 64 82

Total 243 275 260 250 254

Source:

(Concluded)

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


The source of this information is District personnel records.

Page 140

FiscalYear Cost Cost Pupil-

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

2015 2,741 21,425,187$ 7,817$ 6.87 % 23,859,397$ 8,705$ 5.01 % 144 19.0 80.0 %2014 2,632 19,251,449 7,314 1.41 21,816,729 8,289 4.46 136 19.4 80.0 2013 2,543 18,342,271 7,213 (1.13) 20,178,925 7,935 (8.84) 140 18.2 84.3 2012 2,567 18,727,283 7,295 (5.10) 22,343,745 8,704 (1.12) 127 20.2 81.0 2011 2,532 19,465,482 7,688 (2.48) 22,288,407 8,803 (5.71) 143 17.7 79.2 2010 2,640 20,812,106 7,883 4.78 24,646,837 9,336 10.53 146 18.1 80.3 2009 2,723 20,488,025 7,524 2.31 22,999,587 8,446 2.14 148 18.4 80.5 2008 2,781 20,452,218 7,354 7.71 22,997,231 8,269 7.66 119 23.4 76.6 2007 2,747 18,755,788 6,828 8.84 21,099,131 7,681 6.06 115 23.9 75.6 2006 2,670 16,748,695 6,273 (7.15) 19,335,926 7,242 (3.26) 107 25.0 76.4 2004 1,898 12,822,810 6,756 15.41 14,208,500 7,486 N/A 85 22.3 74.8

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17OPERATING 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 141

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

SchoolsElementary

Buildings 25 25 30 30 30 30 28 26 26 26 Square feet 365,648 365,648 283,857 283,857 283,857 283,857 257,857 329,532 329,532 329,532 Capacity 3,500 3,500 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 Enrollment 3,193 2,813 2,796 2,700 2,700 2,750 2,750 2,900 2,900 2,900

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

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

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

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

TOLLESON ELEMENTARY SCHOOL DISTRICT NO. 17CAPITAL ASSETS INFORMATION



Page 142

tolleson elementary school district no. 17€¦ · comprehensive annual financial report fiscal...

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