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FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2016
_____________________________ 1556 West Prince Road – Tucson, Arizona 85705
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
TUCSON, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016
Issued by: Business Services Department
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
TABLE OF CONTENTS
INTRODUCTORY SECTION Page Letter of Transmittal 1 ASBO Certificate of Excellence 6 GFOA Certificate of Achievement 7 Organizational Chart 8 List of Principal Officials 9 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 17 BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 30 Statement of Activities 31
Fund Financial Statements: Balance Sheet – Governmental Funds 34 Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 37 Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 38 Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the Statement of Activities 40
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
TABLE OF CONTENTS
FINANCIAL SECTION Page BASIC FINANCIAL STATEMENTS
Statement of Assets and Liabilities – Fiduciary Funds 41
Notes to Financial Statements 42
REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues Expenditures and Changes in Fund Balances –
Budget and Actual: General Fund 66
Schedule of Proportionate Share of the Net Pension Liability 67
Schedule of Contributions 67
Notes to Required Supplementary Information 68
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 74
Special Revenue Funds: Combining Balance Sheet 78 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 84
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 90
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
TABLE OF CONTENTS
FINANCIAL SECTION Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual 115
Capital Projects Funds:
Combining Balance Sheet 118 Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 120 Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 122 Agency Funds:
Combining Statement of Assets and Liabilities 128 Combining Statement of Changes in Assets and Liabilities 129
STATISTICAL SECTION Financial Trends:
Net Position by Component 133 Expenses, Program Revenues, and Net (Expense)/Revenue 134 General Revenues and Total Changes in Net Position 136 Fund Balances – Governmental Funds 138 Governmental Funds Revenues 140
Governmental Funds Expenditures and Debt Service Ratio 142
Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 144
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
TABLE OF CONTENTS
STATISTICAL SECTION Page Revenue Capacity:
Net Limited Assessed Value and Full Cash Value of Taxable Property by Class 145 Net Full Cash Assessed Value of Taxable Property by Class 146 Property Tax Assessment Ratios 147 Direct and Overlapping Property Tax Rates 148 Principal Property Taxpayers 149 Property Tax Levies and Collections 150
Debt Capacity:
Outstanding Debt by Type 151 Direct and Overlapping Governmental Activities Debt 152 Direct and Overlapping General Bonded Debt Ratios 152 Legal Debt Margin Information 153
Demographic and Economic Information:
County-Wide Demographic and Economic Statistics 154 Principal Employers 155
Operating Information: Full-Time Equivalent District Employees by Type 156 Operating Statistics 158 Capital Assets Information 159
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INTRODUCTORY SECTION
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December 19, 2016 Citizens and Governing Board Flowing Wells Unified School District No. 8 1556 West Prince Road Tucson, Arizona 85705-3087 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 Flowing Wells Unified School District No. 8 (District) for the fiscal year ended June 30, 2016. This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package.
Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE DISTRICT
The District is one of 18 public school districts located in Pima County, Arizona. It provides a program of public education from preschool through grade 12, with current enrollment of 5,646 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, food services, bookstore, and athletic functions.
The Flowing Wells School District is located on the northwest side of metropolitan Tucson covering an area of 13 square miles. Approximately, one-fourth of the District's area lies within the limits of the City of Tucson. During the 2015-16 school year, the District experienced a minimal decrease in net limited assessed valuation of $2,953,352 and a decrease in its net full cash assessed valuation of $4,630,994. Part of the decrease in the secondary valuation was due to a legislative change in how the value is calculated. The District anticipates an increase in its assessed valuations in the next couple of years to reflect market conditions. The Flowing Wells District has earned numerous National and State awards including eight schools receiving an A+ State award recognition and seven being recognized as National Blue Ribbon Schools. Flowing Wells has had six teachers earn Arizona State Teacher of the Year honors and 14 teachers recognized as Arizona Ambassadors for Education which means a Top Five Teacher of the Year. Additionally, 15 teachers have earned the Exemplary Teacher Award from the Rodel Foundation. Seven teachers have also earned National Board Certification. Eight programs have earned the prestigious Golden Apple Award presented by the Arizona School Boards Association. The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates. Local Economy. The economy in the Flowing Wells School District remains constant, with no significant positive or negative changes. The District is primarily residential with some small local businesses. The District had a small decrease in enrollment in the 2015-16 school year. The District expects stable enrollment in the 2016-17 school year. The District consists of a preschool, six elementary schools, one junior high school, one traditional high school, an alternative high school, and an on-line (digital) high school. Support facilities include District administrative offices, maintenance and transportation facilities and a District warehouse. The average age of the school buildings is approximately 30 years. All campuses and facilities are maintained in a serviceable condition that meets local code and safety standards.
Long-term Financial Planning. The District has experienced a relatively stable average daily membership and, as a result of the passage of Proposition 123, Arizona has increased the Base Support Level resulting in an increase in state aid revenue. The District expects enrollment to remain stable. However, with the uncertainty of future state funding the District continues to review staffing needs and set priorities based on student needs. The Governing Board authorized the call to renew the District’s 10 percent maintenance and operations budget override in November 2015. The voters approved renewal of the override which will be in effect for seven years and will help the District continue its efforts to provide a premier education for our students. In 2014, the Arizona Department of Education awarded Flowing Wells School District $2.4 million 21st Century Schools grant. This five-year grant provides resources to extend our school day and school year with additional academic tutoring and enrichment, along with a partnership with Flowing Wells Extension Programs, Inc., to provide parental engagement training. Another component of the grant includes providing students with opportunities to engage in credit and non-credit summer activities. These are all strategies which have recently been promoted by local, state, and national policy makers as keys to restructuring and reinventing education for the 21st Century student. Major Initiatives. The District was successful in passing a bond election in November 2008, which gave the District the ability to issue $19.9 million in school improvement bonds. The large construction projects such as new schools and classroom additions have been completed. The remaining bond funds will be used to complete various construction and renovation projects including the replacement of aging HVAC units and maintaining building roofs. Due to historically low interest rates, the Governing Board authorized refunding a portion of the outstanding school improvement bonds in June 2016. The refunding of the bonds in July 2016 resulted in a net present value savings of $942,263 for the District’s taxpayers. AWARDS AND ACKNOWLEDGMENT Awards. The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2015. This was the twenty-eighth 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, 2015. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2016 certificates.
Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the business services department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible. Respectfully submitted, Dr. David R. Baker Stacy Trueblood Superintendent Chief Financial Officer
The Certificate of Excellence in Financial Reporting Award
is presented to
Flowing Wells Unified School District No. 8
for its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2015.
The CAFR has been reviewed and met or exceeded
ASBO International’s Certificate of Excellence standards.
Brenda R. Burkett, CPA, CSBA, SFO John D. Musso, CAE, RSBA President Executive Director
Flowing Wells School District Organizational Chart
2015-2016
Davis C. Miller Principal
Kevin Stoltzfus, Ed.D. Assistant
Superintendent
René Ground, Ed.D. Assistant
Superintendent
FW Governing Board
Contract Services
Business Services
Hendricks P. Wells Principal
Douglas T. McAllister
Principal C. Nogami
Assistant Principal
Curriculum/ Standards
Richardson L. Dunbar Principal
Laguna J. Camacho
Principal
FW Junior High K. Parkinson
Principal D. Valles-Wallace Assistant Principal
C. Gallegos Assistant Principal
Special Projects
Compliance
Emily Meschter Early Learning
Center
David Baker, Ed.D. Superintendent
Food Services
Special Projects
Shipping/ Receiving
District Communications
Maintenance M. Medeiros
Director
FW High School J. Brunenkant
Principal R. Hurst H. Linker A. Ranjel
Assistant Principals
Title I English
Language Learners
Sentinel Peak High School A. Schmidt
Principal
Centennial K. Dale Principal
Stacy Trueblood Chief Financial Officer
Special Ed/ Student Svcs
S. Olson-Shinn Director
Health Services
Community Outreach
Technology
Special Projects
Open Enrollment
Professional Development T. Gutierrez
Director
Federal Programs A. Reff Director
Athletics P. Weber Director
Human Resources
Transportation L. Carloss Director
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
LIST OF PRINCIPAL OFFICIALS
GOVERNING BOARD
Jeretta Douglas, President
Gerald Long, Clerk
Kevin Daily, Member
Tom Jacobs, Member
James Love, Member
ADMINISTRATIVE STAFF
Dr. David R. Baker, Superintendent
Dr. Kevin Stoltzfus, Assistant Superintendent
Dr. René Ground, Assistant Superintendent
Stacy Trueblood, Chief Financial Officer
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT Governing Board Flowing Wells Unified School District No. 8 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 Flowing Wells Unified School District No. 8 (District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Flowing Wells Unified School District No. 8, as of June 30, 2016, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Change in Accounting Principle As described in Note 1, the District implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, for the year ended June 30, 2016, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.
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 19, 2016, on our consideration of Flowing Wells Unified School District No. 8’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 Flowing Wells Unified School District No. 8’s internal control over financial reporting and compliance. Heinfeld, Meech & Co., P.C. Tucson, Arizona December 19, 2016
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information)
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FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
As management of the Flowing Wells Unified School District No. 8 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the current fiscal year. 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 $619,294 from a
deficit of $1.6 million in the prior fiscal year primarily due to additional state funding received during the year.
General revenues accounted for $33.4 million in revenue, or 74 percent of all current fiscal
year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $11.6 million or 26 percent of total current fiscal year revenues.
The District had approximately $44.3 million in expenses related to governmental
activities, a decrease of two percent from the prior fiscal year due to continued efforts by the District to decrease expenditures.
Among major funds, the General Fund had $30.6 million in current fiscal year revenues,
which primarily consisted of state aid and property taxes, and $29.1 million in expenditures. The General Fund’s fund balance increase from $5.5 million at the prior fiscal year end to $7.2 million at the end of the current fiscal year was primarily due to an increase in state aid and grants.
The Unrestricted Capital Outlay Fund’s fund balance decreased from $4.5 million at the
prior fiscal year end to $4.1 million at the end of the current fiscal year. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
OVERVIEW OF FINANCIAL STATEMENTS 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. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
OVERVIEW OF FINANCIAL STATEMENTS
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.
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 and Unrestricted Capital Outlay Funds, both of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, fiduciary funds do not have a measurement focus.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process and pension plan. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has been provided for the General Fund as required supplementary information. Schedules for the pension plan have been provided as required supplementary information.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
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, liabilities and deferred inflows exceeded assets and deferred outflows by $979,937 at the current fiscal year-end. The largest portion of the District’s positive net position reflects its investment in capital assets (e.g., land 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 outstanding debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance is unrestricted and may be used to meet the District’s ongoing obligations to its citizens and creditors, however, as discussed below, this balance is in a deficit position. The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2016 and June 30, 2015.
As of
June 30, 2016 As of
June 30, 2015 Current assets $ 19,553,427 $ 18,265,512 Capital assets, net 42,379,240 42,007,965
Total assets 61,932,667 60,273,477
Deferred outflows 3,994,822 4,803,284
Current liabilities 2,678,345 2,263,716 Long-term liabilities 60,755,337 57,629,748
Total liabilities 63,433,682 59,893,464
Deferred inflows 3,473,744 6,782,528
Net position: Net investment in capital assets 24,092,627 24,812,730 Restricted 8,792,574 9,469,901 Unrestricted (33,865,138) (35,881,862)
Total net position $ (979,937) $ (1,599,231) At the end of the current fiscal year the District reported positive balances in two categories of net position and a deficit unrestricted net position of $33.9 million. The deficit unrestricted net position occurred as a result of recording the District’s proportionate share of the unfunded pension liability. The District’s financial position is the product of several financial transactions including the net result of activities, the acquisition of capital assets, and the depreciation of capital assets.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
GOVERNMENT-WIDE FINANCIAL ANALYSIS The following are significant current year transactions that have had an impact on the Statement of Net Position.
The principal retirement of $1.4 million of bonds. The change of $2.3 million in pension liabilities due to increased pension expense. The addition of $2.9 million in capital assets through school improvement projects and
purchases of vehicles, furniture and equipment. Changes in net position. The District’s total revenues for the current fiscal year were $44.9 million. The total cost of all programs and services was $44.3 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2016 and June 30, 2015.
Fiscal Year Ended
June 30, 2016
Fiscal Year Ended
June 30, 2015 Revenues:
Program revenues: Charges for services $3,516,979 $ 3,692,826 Operating grants and contributions 7,721,121 7,666,253 Capital grants and contributions 330,778 310,594
General revenues: Property taxes 11,305,735 11,501,779 Investment income 72,972 53,418 Unrestricted county aid 2,010,153 1,945,722 Unrestricted state aid 19,816,228 18,307,824 Unrestricted federal aid 155,640 126,746 Total revenues 44,929,606 43,605,162
Expenses:
Instruction 23,797,530 24,416,291 Support services – students and staff 5,044,693 4,947,880 Support services – administration 4,355,587 4,682,031 Operation and maintenance of plant services 5,685,776 5,806,271 Student transportation services 1,739,543 1,841,991 Operation of non-instructional services 2,850,419 2,797,966 Interest on long-term debt 836,764 884,425
Total expenses 44,310,312 45,376,855 Changes in net position 619,294 (1,771,693)
Net position, beginning (1,599,231) 172,462 Net position, ending (979,937) $ (1,599,231)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following are significant current year transactions that had an impact on the change in net position.
State aid revenues increased $1.5 million due to a change in the state funding formula.
The decrease of $1.1 million in overall expenses is due to the overall efforts by the District to decrease expenditures.
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$5
$10
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FY2015-16
FY2014-15
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
GOVERNMENT-WIDE FINANCIAL ANALYSIS The following table presents the cost of the District’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and District’s taxpayers by each of these functions.
Year Ended June 30, 2016 Year Ended June 30, 2015
Total
Expenses
Net (Expense)/ Revenue
Total Expenses
Net (Expense)/ Revenue
Instruction $ 23,797,530 $(17,816,209) $ 24,416,291 $(17,588,781)Support services – students and staff 5,044,693 (3,424,984) 4,947,880 (3,690,327)Support services – administration 4,355,587 (4,210,066) 4,682,031 (4,317,323)Operation and maintenance of plant services 5,685,776 (5,071,846) 5,806,271 (5,694,426)Student transportation services 1,739,543 (1,559,982) 1,841,991 (1,662,187)Operation of non-instructional services 2,850,419 178,417 2,797,966 130,287 Interest on long-term debt 836,764 (836,764) 884,425 (884,425)
Total $ 44,310,312 $(32,741,434) $ 45,376,855 $(33,707,182)
The cost of all governmental activities this year was $44.3 million.
Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $11.6 million.
Net cost of governmental activities of $32.7 million was financed by general revenues, which are made up of primarily property taxes of $11.3 million and state aid of $19.8 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $16.4 million, an increase of $843,672 due primarily to a $1.5 million increase in state aid and grants. The General Fund comprises 44 percent of the total fund balance. Approximately $6.6 million, or 92 percent of the General Fund’s fund balance is unassigned. The General Fund is the principal operating fund of the District. The increase in fund balance of $1.8 million to $7.2 million as of fiscal year end was a result of an increase in state aid and grants. General Fund revenues increased $1.1 million as a result of an increase in state aid and grants. General Fund expenditures decreased $676,661. The Unrestricted Capital Outlay Fund’s fund balance decreased $338,668 to $4.1 million at fiscal year as a result of capital-related purchases and debt service for capital leases. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget. The difference between the original budget and the final amended budget was a $1.3 million increase, or four percent, due to anticipated additional funding under Proposition 123. 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 favorable variances of $1.5 million in instruction, $190,492 in support services – students and staff, $528,680 in operation and maintenance of plant services, and $330,453 in student transportation services were a result of continued efforts by the District to decrease expenditures.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of year end, the District had invested $77.2 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of $2.8 million from the prior fiscal year primarily due to several construction and renovation projects. Total depreciation expense for the current fiscal year was $2.5 million. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2016 and June 30, 2015.
As of June 30, 2016
As of June 30, 2015
Capital assets – non-depreciable $ 4,222,562 $ 4,227,351 Capital assets – depreciable, net 38,156,678 37,780,614
Total $ 42,379,240 $ 42,007,965 The estimated cost to complete current construction projects is $644,267. Additional information on the District’s capital assets can be found in Note 6. Debt Administration. At year end, the District had $16.3 million in long-term debt outstanding, $1.5 million due within one year. The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 30 percent of the total net full cash assessed valuation) and the statutory debt limit on Class B bonds (the greater of 20 percent of the net full cash assessed valuation or $1,500 per student). The current total debt limitation for the District is $57.3 million and the Class B debt limit is $38.2 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 7 through 9.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2016
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES Many factors were considered by the District’s administration during the process of developing the fiscal year 2016-17 budget. Among them:
Fiscal year 2015-16 budget balance carry forward. Stable District student population. Additional revenue received under Proposition 123.
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 five percent to $1.4 million in fiscal year 2016-17. No new programs were added to the 2016-17 budget. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business Services Department, Flowing Wells Unified School District No. 8, 1556 West Prince Road, Tucson, Arizona 85705-3087.
BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
ASSETSCurrent assets:
Cash and investmentsCash and investments - restrictedProperty taxes receivableDue from governmental entitiesPrepaid itemsInventory
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 payableUnearned revenuesObligations under capital leasesBonds 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:
Instructional purposesFederal and state projectsFood serviceNon-instructional purposesDebt serviceCapital outlay
UnrestrictedTotal net position
Governmental Activities
$ 11,413,731299,472694,965
6,462,887371,160311,212
19,553,427
4,222,56238,156,67842,379,24061,932,667
3,994,822
755,052336,687
1,528,936605,50057,670
185,4851,450,0004,919,330
58,514,35258,514,35263,433,682
3,473,744
24,092,627
908,068675,122917,551
1,865,448280,710
4,145,675(33,865,138)
$ (979,937)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8STATEMENT OF NET POSITION
JUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
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
$ 23,797,5305,044,6934,355,5875,685,7761,739,5432,850,419
836,764$ 44,310,312
Charges for Services
$ 2,140,284
443,0051,713
464,12884,895
382,954
$ 3,516,979
Operating Grants and
Contributions
$ 3,510,2591,176,704
143,808149,80294,666
2,645,882
$ 7,721,121
Capital Grants and
Contributions
$ 330,778
$ 330,778
Governmental Activities
$ (17,816,209)
(3,424,984)(4,210,066)(5,071,846)(1,559,982)
178,417(836,764)
(32,741,434)
General revenues:Taxes:
Property taxes, levied for general purposesProperty taxes, levied for debt serviceProperty taxes, levied for capital outlay
Investment incomeUnrestricted county aidUnrestricted state aidUnrestricted federal aid
Total general revenues
Changes in net position
Net position, beginning of year
Net position, end of year
9,573,1261,732,605
472,972
2,010,15319,816,228
155,64033,360,728
619,294
(1,599,231)
$ (979,937)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
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FUND FINANCIAL STATEMENTS
ASSETSCash and investmentsCash and investments - restrictedProperty taxes receivableDue from governmental entitiesDue from other fundsPrepaid itemsInventory
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:
Accounts payableConstruction contracts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues
Total liabilities
Deferred inflows of resources:Unavailable revenues - property taxes
Fund balances:NonspendableRestrictedUnassigned
Total fund balances
Total liabilities, deferred inflows of resourcesand fund balances
General
$ 1,920,685
560,3936,081,041
746371,160197,869
$ 9,131,894
$ 430,848
1,201,276
1,632,124
347,211
569,029
6,583,5307,152,559
$ 9,131,894
Unrestricted Capital Outlay
$ 4,065,851
69,500
$ 4,135,351
$ 15,072
15,072
4,120,279
4,120,279
$ 4,135,351
Non-Major Governmental
Funds
$ 5,427,195299,472134,572312,346
113,343$ 6,286,928
$ 309,132336,687
746327,66057,670
1,031,895
96,303
113,3435,045,387
5,158,730
$ 6,286,928
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
Total Governmental
Funds
$ 11,413,731299,472694,965
6,462,887746
371,160311,212
$ 19,554,173
$ 755,052336,687
7461,528,936
57,6702,679,091
443,514
682,3729,165,6666,583,530
16,431,568
$ 19,554,173
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Total governmental fund balances 16,431,568$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financialresources and, therefore, are not reported in the funds.
Governmental capital assets 77,177,511$ Less accumulated depreciation (34,798,271) 42,379,240
Property tax receivables are not available to pay for current periodexpenditures and, therefore, are reported as unavailablerevenues in the funds. 443,514
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 3,994,822Deferred inflows of resources related to pensions (3,473,744) 521,078
Long-term liabilities are not due and payable in the currentperiod and, therefore, are not reported in the funds.
Compensated absences payable (1,088,346)Obligations under capital leases (2,256,845)Unamortized premium on long-term debt (195,819)Net pension liability (41,134,327)Bonds payable (16,080,000) (60,755,337)
Net position of governmental activities (979,937)$
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITIONJUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
Revenues:Other localProperty taxesState aid and grantsFederal aid, grants and reimbursements
Total revenues
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer outCapital lease agreements
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for prepaid itemsIncrease (decrease) in reserve for inventory
Fund balances, end of year
General
$ 3,648,6169,552,475
17,219,389155,640
30,576,120
14,917,4283,329,0124,028,1005,312,2291,389,322
98,12148,221
29,122,433
1,453,687
318,071
318,071
1,771,758
5,457,352
8,339(84,890)
$ 7,152,559
Unrestricted Capital Outlay
$ 168,1854
194,381
362,570
785,383
63,8802,966
852,229
(489,659)
150,991150,991
(338,668)
4,458,947
$ 4,120,279
Non-Major Governmental
Funds
$ 2,100,4001,723,6422,853,6987,283,562
13,961,302
6,272,7081,600,861
147,451275,30197,119
2,683,2503,029,386
1,375,000
850,92716,332,003
(2,370,701)
(318,071)2,110,8021,792,731
(577,970)
5,671,597
65,103
$ 5,158,730
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
Total Governmental
Funds
$ 5,917,20111,276,12120,267,4687,439,202
44,899,992
21,190,1364,929,8734,175,5515,587,5301,486,4412,781,3713,862,990
1,438,880
853,89346,306,665
(1,406,673)
318,071
(318,071)2,261,7932,261,793
855,120
15,587,896
8,339(19,787)
$ 16,431,568
Changes in fund balances - total governmental funds 855,120$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over theirestimated useful lives as depreciation expense.
Expenditures for capitalized assets 2,912,507$ Less current year depreciation (2,520,234) 392,273
The issuance of capital leases provides current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position. (2,261,793)
Property tax revenues in the Statement of Activities that do not provide current financialresources are not reported as revenues in the funds. 29,614
Repayments of long-term debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement ofNet Position.
Capital lease principal retirement 63,880 Bond principal retirement 1,375,000 1,438,880
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 2,519,058Pension expense (2,366,754) 152,304
Some expenses reported in the Statement of Activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures in governmental funds.
Prepaid items 8,339 Inventory (19,787) Loss on disposal of assets (20,998)Amortization of deferred bond items 17,129Compensated absences 28,213 12,896
Changes in net position in governmental activities 619,294$
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
ASSETSCash and investments
Total assets
LIABILITIESDeposits held for othersDue to student groups
Total liabilities
Agency
$ 2,222,030$ 2,222,030
$ 1,977,086244,944
$ 2,222,030
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDSJUNE 30, 2016
The notes to the basic financial statements are an integral part of this statement.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Flowing Wells Unified School District No. 8 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. During the year ended June 30, 2016, the District implemented the provisions of GASB Statement 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and establishes a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also enhances accountability and transparency through revised note disclosures. The more significant of the District’s accounting policies are described below. A. Reporting Entity The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District's financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, and bookstore and athletic functions.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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 federal, state and county aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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. Property taxes, state and county aid, tuition, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. 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 the certain activities budgeted in separate funds in accordance with A.R.S. These funds are maintained as separate funds for accounting and budgetary purposes but do not meet the criteria for separate reporting in the financial statements. Unrestricted Capital Outlay – The Unrestricted Capital Outlay Fund accounts for transactions relating to the acquisition of capital items.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the District reports the following fund type. Fiduciary Funds – The Fiduciary Funds are agency funds which account for resources held by the District on behalf of others. This fund type includes the Student Activities Fund which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds.
The Agency Funds are custodial in nature and do not have a measurement focus and are reported on 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 certain cash with the County Treasurer, except as discussed below. That cash is pooled for investment purposes, except for cash of the Debt Service and Bond Building Funds that may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. All investments are stated at fair value. Statute authorizes the District to separately invest monies of the Bond Building and Debt Service Funds in the State Treasurer’s investment pools; obligations issued and guaranteed by the United States or any of its agencies of instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit. Statute authorizes the District to deposit monies of the Auxiliary Operations and Student Activities Funds in bank accounts. Monies in these funds may also be invested. In addition, statute authorizes the District to maintain various bank accounts such as clearing accounts to temporarily deposit receipts before they are transmitted to the County Treasurer; revolving accounts to pay minor disbursements; and withholdings accounts for taxes and employee insurance programs. Some of these bank accounts may be interest bearing. Statute does not include any requirements for credit risk, concentration of credit risk, interest rate risk, or foreign currency risk. Statute requires collateral for deposits of Bond Building and Debt Service Funds monies in interest bearing savings accounts and certificates of deposit at 101 percent of all deposits not covered by federal depository insurance.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 governmental fund financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances between governmental funds are eliminated on the Statement of Net Position. All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles.
G. Property Tax Calendar The County Treasurer is responsible for collecting property taxes for all governmental entities within the county. The county levies real and personal 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. The billings are considered past due after these dates, at which time the applicable property is subject to penalties and interest. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES H. Inventory All inventories are valued at cost using the average cost method with the exception of food service inventory, which is valued at cost using the first-in/first-out (FIFO) method. Inventories consist of expendable supplies held for consumption. Inventories are recorded as expenses when consumed on the government-wide financial statements and as expenditures when purchased on the fund financial statements. The United States Department of Agriculture (USDA) commodity portion of the food services inventory consists of food donated by the USDA. It is valued at estimated market prices paid by the USDA. I. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed on the government-wide financial statements and as expenditures when purchased on the fund financial statements. J. Capital Assets Capital assets, which include land and improvements; buildings and improvements; vehicles, furniture, and equipment; and construction in progress, are reported in the government-wide financial statements. 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 - 22 years Buildings and improvements 20 - 80 years Vehicles, furniture and equipment 3 - 15 years
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. L. Compensated Absences The District’s employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Accrued sick leave is earned by all full-time employees at a rate of one day for every month. All full-time classified employees earn vacation at rates depending on length of service; however, accumulated vacation as of June 30 must be taken by July 1 of the year following the year it is earned or it will be forfeited. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences. M. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N. 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 are amortized over the life of the bonds using the straight-line method. Deferred amounts on refunding result from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. O. 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. P. 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. Q. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 2 – FUND BALANCE CLASSIFICATIONS Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. 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 by the Director of Business and Finance who has been delegated that authority by a formal Governing Board action. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 2 – FUND BALANCE CLASSIFICATIONS The table below provides detail of the major components of the District’s fund balance classifications at year end.
General
Fund
Unrestricted Capital Outlay
Fund
Non-Major Governmental
Funds Fund Balances:
Nonspendable: Inventory $ 197,869 $ $ 113,343 Prepaid items 371,160
Restricted: Debt service 184,407 Capital projects 4,120,279 25,396 Bond building projects 582,738 Voter approved initiatives 908,068 Federal and state projects 675,122 Auxiliary operations 774,391 Food service 814,233 Civic center 245,882 Gifts and donations 388,611 Non-instructional purposes 446,539
Unassigned 6,583,530 Total fund balances $ 7,152,559 $ 4,120,279 $ 5,158,730
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budgets, however, this does not constitute a violation of any legal provisions.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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 $3,435,425 and the bank balance was $3,501,331. At year end, $2,824,830 of the District’s deposits were covered by collateral held by the pledging financial institution’s trust department or agent but not in the District’s name. Fair Value Measurements. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets Level 2 inputs are significant other observable inputs Level 3 inputs are significant unobservable inputs
The State Treasurer’s pools are external investment pools, the Local Government Investment Pool (Pool 5) and Local Government Investment Pool - Government (Pool 7), with no regulatory oversight. The pools are not required to register (and are not registered) with the Securities and Exchange Commission. The activity and performance of the pools are reviewed monthly by the State Board of Investment. The fair value of each participant’s position in the State Treasurer investment pools approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy. The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy. At year end, the District’s investments consisted of the following:
Average Maturities Fair Value County Treasurer’s investment pool 203 days $ 9,836,842State Treasurer’s investment pool 7 73 days 662,966 Total $ 10,499,808
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 4 – CASH AND INVESTMENTS
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. The State Treasurer’s investment pool 7 had a weighted average rating of AAA at year end as it was invested in obligations of the U.S. Government or obligations guaranteed by the U.S. Government.
Custodial Credit Risk – Investments. The District’s investment in the State and County Treasurer’s investment pools 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.
NOTE 5 – RECEIVABLES Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate, were as follows:
General Fund
Unrestricted Capital Outlay
Fund
Non-Major Governmental
Funds Due from other governmental entities:
Due from federal government $ $ $ 71,362 Due from state government 6,036,220 68,988 240,984 Due from county government 44,821 512 Due from other districts
Net due from governmental entities $ 6,081,041 $ 69,500 $ 312,346
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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 $ 3,931,586 $ $ $ 3,931,586 Construction in progress 295,765 240,203 244,992 290,976
Total capital assets, not being depreciated 4,227,351 240,203 244,992 4,222,562 Capital assets, being depreciated:
Land improvements 3,852,060 116,003 3,968,063 Buildings and improvements 58,948,635 2,629,730 61,578,365 Vehicles, furniture and equipment 7,307,652 171,563 70,694 7,408,521
Total capital assets being depreciated 70,108,347 2,917,296 70,694 72,954,949 Less accumulated depreciation for:
Land improvements (2,079,308) (288,467) (2,367,775)Buildings and improvements (25,703,490) (1,746,379) (27,449,869)Vehicles, furniture and equipment (4,544,935) (485,388) (49,696) (4,980,627)
Total accumulated depreciation (32,327,733) (2,520,234) (49,696) (34,798,271)
Total capital assets, being depreciated, net 37,780,614 397,062 20,998 38,156,678 Governmental activities capital assets, net $ 42,007,965 $ 637,265 $ 265,990 $ 42,379,240
Depreciation expense was charged to governmental functions as follows:
Instruction $ 2,023,120Support services – students and staff 14,330 Support services – administration 98,096 Operation and maintenance of plant services 93,433 Student transportation services 175,057 Operation of non-instructional services 116,198 Total depreciation expense – governmental activities $ 2,520,234
Construction Commitments – At year end, the District had contractual commitments related to various capital projects for the construction of new facilities and improvements to current facilities. At year end the District had spent $290,976 on the projects and had estimated remaining contractual commitments of $644,267. These projects are being funded with School Facilities Board grants, E-rate, and bond proceeds.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 7 – OBLIGATIONS UNDER LEASES Capital Leases – The District has acquired computers under the provisions of long-term lease agreements classified as capital leases. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The assets acquired through capital leases did not meet the District’s capitalization threshold. Revenues from the Unrestricted Capital Outlay Fund are used to pay the capital lease obligations. Amortization of assets recorded under capital leases is included with depreciation expense. Capital leases that meet the District’s capitalization threshold related to building improvements were $2,100,052 for the current fiscal year. The future minimum lease obligations and the net present value of these minimum lease payments at year end were as follows:
Year Ending June 30: Governmental
Activities 2017 $ 257,601 2018 268,532 2019 261,488 2020 233,779 2021 235,525 2022-26 1,301,360
Total minimum lease payments 2,558,285 Less: amount representing interest 301,440 Present value of minimum lease payments $ 2,256,845 Due within one year $ 185,485
Operating Leases – The District leases copiers under the provisions of a long-term lease agreement classified as an operating lease for accounting purposes. Rental expenditures under the terms of the operating lease totaled $48,316 for the current fiscal year. The operating lease has a remaining noncancelable lease term of three years and provides renewal options. The future minimum rental payments required under the operating lease at year end were as follows:
Year Ending June 30: 2017 $ 48,566 2018 48,816 2019 49,066
Total minimum payments required $ 146,448
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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, 2016 Due Within One Year
Governmental activities: School Improvement Bonds, Project of 2008, Series A $ 9,950,000
4.00-5.00% 7/1/17-28 $ 7,855,000 $ 750,000
School Improvement Bonds, Project of 2008, Series B 9,950,000
3.25-5.375% 7/1/17-30 8,225,000 700,000
Total $ 16,080,000 $ 1,450,000 Annual debt service requirements to maturity on general obligation bonds at year end are summarized as follows:
Governmental Activities Year ending June 30: Principal Interest
2017 $ 1,450,000 $ 788,2502018 1,550,000 723,250 2019 1,650,000 651,750 2020 1,750,000 575,250 2021 925,000 495,406 2022-26 5,630,000 1,729,970 2027-29 3,125,000 336,559
Total $ 16,080,000 $ 5,300,435
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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 Within One Year
Governmental activities: Bonds payable:
General obligation bonds $ 17,455,000 $ $ 1,375,000 $ 16,080,000 $ 1,450,000 Premium 212,948 17,129 195,819
Total bonds payable 17,667,948 1,392,129 16,275,819 1,450,000 Obligations under capital leases 58,932 2,261,793 63,880 2,256,845 185,485 Net pension liability 38,786,309 2,348,018 41,134,327 Compensated absences payable 1,116,559 635,299 663,512 1,088,346 605,500 Governmental activity long-term
liabilities $ 57,629,748 $ 5,245,110 $ 2,119,521 $ 60,755,337 $ 2,240,985 NOTE 10 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At year end, interfund balances were as follows: Due to/from other funds – At year end, the Limited English & Immigrant Students Fund, a non-major governmental fund, had a negative cash balance of $746 in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with the General Fund. The interfund balance is expected to be paid within one year. Interfund transfers – Transfers between funds of $318,071 were used to move federal grant funds restricted for indirect costs.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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. The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. The District continues to carry commercial insurance for all other risks of loss, including employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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. 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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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 11.47 percent (11.35 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.47 percent (10.85 percent for retirement, 0.50 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions to the pension plan for the year ended June 30, 2016 were $2,519,058. In addition, the District was required by statute to contribute at the actuarially determined rate of 9.36 percent (9.17 for retirement, 0.13 percent for health insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS. The District's contributions to the pension plan for the year ended June 30, 2016 were $46,772.
The District’s contributions for the current and two preceding years for OPEB, all of which were equal to the required contributions, were as follows:
Health Benefit Supplement
Fund
Long-Term Disability
Fund Year ending June 30:
2016 $ 116,086 $ 27,861 2015 146,299 58,520 2014 144,135 57,654
Pension Liability. At June 30, 2016, the District reported a liability of $41.1 million for its proportionate share of the net pension liability of the ASRS. The net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2014, to the measurement date of June 30, 2015. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2015, the District’s proportion was 0.264 percent, which was a decrease of 0.002 from its proportion measured as of June 30, 2014.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2016, the District recognized pension expense of $2.4 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 $ 1,122,467 $ 2,155,480Net difference between projected and actual earnings on
pension plan investments 1,318,264 Changes in proportion and differences between
contributions and proportionate share of contributions 353,297 Contributions subsequent to the measurement date 2,519,058
Total $ 3,994,822 $ 3,473,744 The deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ending June 30: 2017 $ (670,397)2018 (1,346,617)2019 (932,588)2020 951,622
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
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, 2014 Actuarial roll forward date June 30, 2015 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, 2014 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return. The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class Target
Allocation
Long-Term Expected Real Rate of Return
Equity 58% 6.79% Fixed income 25% 3.70 Real estate 10% 4.25 Multi-asset 5% 3.41% Commodities 2% 3.93
Total 100%
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2016
NOTE 13 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
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 $53,900,025 $41,134,327 $32,385,640
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.
NOTE 14 – SUBSEQUENT EVENT On July 7, 2016 , the District issued $9.8 million in refunding bonds with an effective interest rate of 1.97 percent, to advance refund $10.2 million of general obligation bonds, with an average interest rate of 4.75 percent.
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REQUIRED SUPPLEMENTARY INFORMATION
Revenues:Other localProperty taxesState aid and grants
Total revenues
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for prepaid itemsIncrease (decrease) in reserve for inventory
Fund balances (deficits), end of year
Budgeted Amounts
Original
$
15,588,3152,967,5343,835,8795,527,5621,655,982
87,86229,663,134
(29,663,134)
$ (29,663,134)
Final
$
16,417,4223,195,0123,870,0315,691,3331,651,882
94,81630,920,496
(30,920,496)
$ (30,920,496)
Non-GAAP Actual
$ 3,300,1439,552,475
17,219,38930,072,007
14,885,4833,004,5203,771,6925,162,6531,321,429
98,12128,243,898
1,828,109
1,849,864
8,339(84,890)
$ 3,601,422
Variance with Final Budget
Positive (Negative)
$ 3,300,1439,552,475
17,219,38930,072,007
1,531,939190,49298,339
528,680330,453(3,305)
2,676,598
32,748,605
1,849,864
8,339(84,890)
$ 34,521,918
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL
YEAR ENDED JUNE 30, 2016
See accompanying notes to this schedule.
2016 2015 2014 2013
District's proportion of the net pensionliability (asset) 0.264% 0.262% 0.00% 0.00%
District's proportionate share of the netpension liability (asset) 41,134,327$ 38,786,309$ $ $
District's covered payroll 23,839,210$ 24,022,561$ $ $
District's proportionate share of the net pension liability (asset) as a percentageof its covered payroll 172.55% 161.46% #DIV/0! #DIV/0!
Plan fiduciary net position as a percentage of the total pension liability 68.35% 69.49% 0.00% 0.00%
2016 2015 2014 2013
Actuarially determined contribution 2,519,058$ 2,596,090$ $ $
Contributions in relation to the actuarially determined contribution 2,519,058 2,596,090
Contribution deficiency (excess) $ $ $ $
District's covered payroll 23,217,124$ 23,839,210$ $ $
Contributions as a percentageof covered payroll 10.85% 10.89% #DIV/0! #DIV/0!
NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.
SCHEDULE OF CONTRIBUTIONSARIZONA STATE RETIREMENT SYSTEM
LAST TWO FISCAL YEARS
FLOWING WELLSSCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
ARIZONA STATE RETIREMENT SYSTEMLAST TWO FISCAL YEARS
See accompanying notes to this schedule.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2016
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING The District budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the following items.
Certain activities reported in the General Fund are budgeted in separate funds in accordance with Arizona Revised Statutes.
The following schedule reconciles expenditures and fund balances at the end of year:
Total
Expenditures Fund Balances
End of Year Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds $ 29,122,433 $ 7,152,559 Activity budgeted as special revenue funds (878,535) (3,551,137)Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund $ 28,243,898 $ 3,601,422
NOTE 2 – PENSION PLAN SCHEDULES
Change in Accounting Principle. For the year ended June 30, 2016, the District implemented the provisions of GASB Statement No. 82, Pension Issues. The statement changed the measure of payroll that is required to be presented in required supplementary information from covered-employee payroll to covered payroll. Accordingly, payroll amounts presented in the pension plan schedules and related ratios for prior periods have been restated. Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements. Factors that Affect Trends. The actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2014, actuarial valuation. The study did not include an analysis of the assumed investment rate of return.
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS
AND SCHEDULES
(This page intentionally left blank)
GOVERNMENTAL FUNDS
ASSETSCash and investmentsCash and investments - restrictedProperty taxes receivableDue from governmental entitiesInventory
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCESLiabilities:
Accounts payableConstruction contracts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues
Total liabilities
Deferred inflows of resources:Unavailable revenues - property taxes
Fund balances:NonspendableRestricted
Total fund balances
Total liabilities, deferred inflows of resourcesand fund balances
Special Revenue
$ 4,608,664
312,346113,343
$ 5,034,353
$ 282,088
746327,66057,670
668,164
113,3434,252,8464,366,189
$ 5,034,353
Debt Service
$ 146,138
134,572
$ 280,710
$
96,303
184,407184,407
$ 280,710
Capital Projects
$ 672,393299,472
$ 971,865
$ 27,044336,687
363,731
608,134608,134
$ 971,865
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2016
Total Non-Major
Governmental Fund
$ 5,427,195299,472134,572312,346113,343
$ 6,286,928
$ 309,132336,687
746327,66057,670
1,031,895
96,303
113,3435,045,3875,158,730
$ 6,286,928
Revenues:Other localProperty taxesState aid and grantsFederal aid, grants and reimbursements
Total revenues
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer outCapital lease agreements
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances, end of year
Special Revenue
$ 2,008,263
2,560,2237,283,562
11,852,048
6,272,7081,600,861
147,451275,30197,119
2,683,250395,744
11,472,434
379,614
(318,071)
(318,071)
61,543
4,239,543
65,103
$ 4,366,189
Debt Service
$ 89,8611,723,642
1,813,503
1,375,000850,927
2,225,927
(412,424)
(412,424)
596,831
$ 184,407
Capital Projects
$ 2,276
293,475
295,751
2,633,642
2,633,642
(2,337,891)
2,110,8022,110,802
(227,089)
835,223
$ 608,134
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2016
Total Non-Major
Governmental Funds
$ 2,100,4001,723,6422,853,6987,283,562
13,961,302
6,272,7081,600,861
147,451275,30197,119
2,683,2503,029,386
1,375,000850,927
16,332,003
(2,370,701)
(318,071)2,110,8021,792,731
(577,970)
5,671,597
65,103
$ 5,158,730
SPECIAL REVENUE FUNDS Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Instructional Improvement - to account for the activity of monies received from gaming revenue. County, City and Town Grants - to account for monies received from agreements with other governments. 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 & Immigrant Students - to account for financial assistance received for educational services and costs for limited English and immigrant children. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Vocational Education - to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. E-Rate - to account for monies received to reimburse the District for broadband internet and telecommunications costs. Other Federal Projects - to account for financial assistance received for other supplemental federal projects. State Vocational Education - to account for financial assistance received for the preparation of individuals for employment. Other State Projects - to account for financial assistance received for other State projects.
School Plant - to account for proceeds from the sale or lease of school property. Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Civic Center - to account for monies received from the rental of school facilities for civic activities. Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for revenues and expenditures arising from bookstore and athletic activities and activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the taxpayer in accordance with A.R.S. §43-1089.01 Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. Fingerprint - to account for activity of fingerprinting employees as mandated by the State. Insurance Proceeds - to account for the monies received from insurance claims. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Litigation Recovery - to account for monies received for and derived from litigation. Indirect Costs - to account for monies received from federal projects for administrative costs. Insurance Refund - to account for insurance premium payments that are refunded to the District. Advertisement - to account for monies received from the sale of advertising Joint Technical Education - to account for monies received from Joint Technical Education Districts for vocational education programs. District Services - to account for the financial activity or providing goods and services to departments or schools within the District.
ASSETSCash and investmentsDue from governmental entitiesInventory
Total assets
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues
Total liabilities
Fund balances:NonspendableRestricted
Total fund balances
Total liabilities and fund balances
Classroom Site
$ 201,382180,603
$ 381,985
$
105,162
105,162
276,823276,823
$ 381,985
Instructional Improvement
$ 581,59560,381
$ 641,976
$
10,731
10,731
631,245631,245
$ 641,976
Structured English
Immersion
$ 772
$ 772
$
772772
$ 772
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016
Title I Grants
$ 51,1049,307
$ 60,411
$
60,411
60,411
$ 60,411
Professional Development
and Technology Grants
$ 23,400
$ 23,400
$ 11,847
7,4714,082
23,400
$ 23,400
Title IV Grants
$ 200,654
$ 200,654
$ 84,111
78,02938,514
200,654
$ 200,654
Limited English & Immigrant
Students
$ 746
$ 746
$ 746
746
$ 746
Special Education
Grants
$ 32,5893,623
$ 36,212
$
36,212
36,212
$ 36,212
Vocational Education
$ 6,438
$ 6,438
$
1,4894,9496,438
$ 6,438
(Continued)
ASSETSCash and investmentsDue from governmental entitiesInventory
Total assets
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues
Total liabilities
Fund balances:NonspendableRestricted
Total fund balances
Total liabilities and fund balances
E-Rate
$ 439,673
$ 439,673
$
439,673439,673
$ 439,673
Other Federal Projects
$ 253,755
$ 253,755
$
16,3032,003
18,306
235,449235,449
$ 253,755
State Vocational Education
$ 11,323
$ 11,323
$ 3,973
7,35011,323
$ 11,323
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016
Other State Projects
$ 4,616
$ 4,616
$
4,616
4,616
$ 4,616
Food Service
$ 934,79157,686
103,318$ 1,095,795
$ 175,509
2,735
178,244
103,318814,233917,551
$ 1,095,795
Civic Center
$ 246,858
$ 246,858
$ 976
976
245,882245,882
$ 246,858
Community School
$ 49,113
$ 49,113
$
49,11349,113
$ 49,113
Auxiliary Operations
$ 774,391
10,025$ 784,416
$
10,025774,391784,416
$ 784,416
Gifts and Donations
$ 390,922
$ 390,922
$ 2,311
2,311
388,611388,611
$ 390,922
(Continued)
ASSETSCash and investmentsDue from governmental entitiesInventory
Total assets
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payableDue to other fundsAccrued payroll and employee benefitsUnearned revenues
Total liabilities
Fund balances:NonspendableRestricted
Total fund balances
Total liabilities and fund balances
Fingerprint
$ 8,800
$ 8,800
$
8,8008,800
$ 8,800
Textbooks
$ 16,898
$ 16,898
$
16,89816,898
$ 16,898
Insurance Refund
$ 168,681
$ 168,681
$
168,681168,681
$ 168,681
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016
Joint Technical Education
$ 210,909
$ 210,909
$ 3,361
4,501
7,862
203,047203,047
$ 210,909
Totals
$ 4,608,664312,346113,343
$ 5,034,353
$ 282,088746
327,66057,670
668,164
113,3434,252,8464,366,189
$ 5,034,353
Revenues:Other localState 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 outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances, end of year
Classroom Site
$ 4,2892,167,237
2,171,526
2,078,42757,558
2,135,985
35,541
35,541
241,282
$ 276,823
Instructional Improvement
$ 4,057235,221
239,278
224,63095,301
319,931
(80,653)
(80,653)
711,898
$ 631,245
Structured English
Immersion
$ 1,034
1,034
1,034
1,034
$
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2016
Title I Grants
$
1,453,2731,453,273
1,070,889278,71121,386
21,847
19,678
1,412,511
40,762
(40,762)(40,762)
$
Professional Development
and Technology Grants
$
435,645435,645
399,94123,484
423,425
12,220
(12,220)(12,220)
$
Title IV Grants
$
803,075803,075
547,498181,87354,201
1,591785,163
17,912
(17,912)(17,912)
$
Limited English & Immigrant
Students
$
53,97553,975
50,8361,465
150
52,451
1,524
(1,524)(1,524)
$
Special Education
Grants
$
1,068,5451,068,545
1,036,51025,7675,657
1,067,934
611
(611)(611)
$
Vocational Education
$
83,02683,026
30,96047,225
305
511
91579,916
3,110
(3,110)(3,110)
$
(Continued)
Revenues:Other localState 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 outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances, end of year
E-Rate
$ 1,550
144,602146,152
4,056217,125
92,858314,039
(167,887)
(167,887)
607,560
$ 439,673
Other Federal Projects
$ 51
595,539595,590
513,81381,20232,238
280
5,658
633,191
(37,601)
(37,601)
273,050
$ 235,449
State Vocational Education
$ 64,001
64,001
42,0759,819
8242,185
450
8,64864,001
$
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2016
Other State Projects
$ 92,730
92,730
84,6816,505
339392
81392,730
$
Food Service
$ 380,179
2,645,8823,026,061
2,647,674100,414
2,748,088
277,973
(241,932)(241,932)
36,041
817,478
64,032
$ 917,551
Civic Center
$ 87,391
87,391
28,96831,77360,741
26,650
26,650
219,232
$ 245,882
Community School
$ 682
682
682
682
48,431
$ 49,113
Auxiliary Operations
$ 792,240
792,240
394,638217,986
1,2994,069
72,3496,6088,172
705,121
87,119
87,119
696,226
1,071
$ 784,416
Gifts and Donations
$ 248,748
248,748
87,464113,806
3,3904,082
558
44,694253,994
(5,246)
(5,246)
393,857
$ 388,611
(Continued)
Revenues:Other localState 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 outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances, end of year
Fingerprint
$ 952
952
22
22
930
930
7,870
$ 8,800
Textbooks
$ 12,610
12,610
40,901
40,901
(28,291)
(28,291)
45,189
$ 16,898
Insurance Refund
$ 975
975
975
975
167,706
$ 168,681
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2016
Joint Technical Education
$ 474,539
474,539
69,38682,668
10047,4481,124
80,530
281,256
193,283
193,283
9,764
$ 203,047
Totals
$ 2,008,2632,560,2237,283,562
11,852,048
6,272,7081,600,861
147,451275,30197,119
2,683,250395,744
11,472,434
379,614
(318,071)(318,071)
61,543
4,239,543
65,103
$ 4,366,189
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Classroom Site
Budget
$
2,354,45463,626
2,418,080
(2,418,080)
(2,418,080)
$ (2,418,080)
Actual
$ 4,2892,167,237
2,171,526
2,078,42757,558
2,135,985
35,541
35,541
241,282
$ 276,823
Variance - Positive
(Negative)
$ 4,2892,167,237
2,171,526
276,0276,068
282,095
2,453,621
2,453,621
241,282
$ 2,694,903
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Instructional Improvement
Budget
$
747,481102,519
850,000
(850,000)
(850,000)
$ (850,000)
Actual
$ 4,057235,221
239,278
224,63095,301
319,931
(80,653)
(80,653)
711,898
$ 631,245
Variance - Positive
(Negative)
$ 4,057235,221
239,278
522,8517,218
530,069
769,347
769,347
711,898
$ 1,481,245
County, City, and Town Grants
Budget
$
25,000
25,000
(25,000)
(25,000)
$ (25,000)
Actual
$
$
Variance - Positive
(Negative)
$
25,000
25,000
25,000
25,000
$ 25,000
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Structured English Immersion
Budget
$
1,797
1,797
(1,797)
(1,797)
$ (1,797)
Actual
$ 1,034
1,034
1,034
1,034
$
Variance - Positive
(Negative)
$ 1,034
1,034
763
763
1,797
1,797
$ 1,797
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Student Success
Budget
$
7,0773,310
15,433
59,18085,000
(85,000)
(85,000)
$ (85,000)
Non-GAAP Actual
$ 266
266
3,7891,772
8,263
31,68645,510
(45,244)
(45,244)
71,277
$ 26,033
Variance - Positive
(Negative)
$ 266
266
3,2881,538
7,170
27,49439,490
39,756
39,756
71,277
$ 111,033
Title I Grants
Budget
$
1,440,477374,90028,767
29,387
26,469
1,900,000
(1,900,000)
(1,900,000)
$ (1,900,000)
Actual
$
1,453,2731,453,273
1,070,889278,71121,386
21,847
19,678
1,412,511
40,762
(40,762)(40,762)
$
Variance - Positive
(Negative)
$
1,453,2731,453,273
369,58896,1897,381
7,540
6,791
487,489
1,940,762
(40,762)(40,762)
1,900,000
$ 1,900,000
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Professional Development and Technology Grants
Budget
$
472,27027,730
500,000
(500,000)
(500,000)
$ (500,000)
Actual
$
435,645435,645
399,94123,484
423,425
12,220
(12,220)(12,220)
$
Variance - Positive
(Negative)
$
435,645435,645
72,3294,246
76,575
512,220
(12,220)(12,220)
500,000
$ 500,000
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Title IV Grants
Budget
$
627,574208,47462,128
1,824900,000
(900,000)
(900,000)
$ (900,000)
Actual
$
803,075803,075
547,498181,87354,201
1,591785,163
17,912
(17,912)(17,912)
$
Variance - Positive
(Negative)
$
803,075803,075
80,07626,6017,927
233114,837
917,912
(17,912)(17,912)
900,000
$ 900,000
Limited English & Immigrant Students
Budget
$
67,8451,955
200
70,000
(70,000)
(70,000)
$ (70,000)
Actual
$
53,97553,975
50,8361,465
150
52,451
1,524
(1,524)(1,524)
$
Variance - Positive
(Negative)
$
53,97553,975
17,00949050
17,549
71,524
(1,524)(1,524)
70,000
$ 70,000
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Special Education Grants
Budget
$
1,067,63226,5415,827
1,100,000
(1,100,000)
(1,100,000)
$ (1,100,000)
Actual
$
1,068,5451,068,545
1,036,51025,7675,657
1,067,934
611
(611)(611)
$
Variance - Positive
(Negative)
$
1,068,5451,068,545
31,122774170
32,066
1,100,611
(611)(611)
1,100,000
$ 1,100,000
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Vocational Education
Budget
$
44,55267,957
439
735
1,317115,000
(115,000)
(115,000)
$ (115,000)
Actual
$
83,02683,026
30,96047,225
305
511
91579,916
3,110
(3,110)(3,110)
$
Variance - Positive
(Negative)
$
83,02683,026
13,59220,732
134
224
40235,084
118,110
(3,110)(3,110)
115,000
$ 115,000
Medicaid Reimbursement
Budget
$
68,6251,197,040
34,335
1,300,000
(1,300,000)
(1,300,000)
$ (1,300,000)
Non-GAAP Actual
$ 3,030
155,640158,670
18,474322,247
9,243
349,964
(191,294)
(191,294)
1,222,848
$ 1,031,554
Variance - Positive
(Negative)
$ 3,030
155,640158,670
50,151874,79325,092
950,036
1,108,706
1,108,706
1,222,848
$ 2,331,554
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
E-Rate
Budget
$
9,687518,546
221,767750,000
(750,000)
(750,000)
$ (750,000)
Actual
$ 1,550
144,602146,152
4,056217,125
92,858314,039
(167,887)
(167,887)
607,560
$ 439,673
Variance - Positive
(Negative)
$ 1,550
144,602146,152
5,631301,421
128,909435,961
582,113
582,113
607,560
$ 1,189,673
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Other Federal Projects
Budget
$
608,60096,18138,185
332
6,702
750,000
(750,000)
(750,000)
$ (750,000)
Actual
$ 51
595,539595,590
513,81381,20232,238
280
5,658
633,191
(37,601)
(37,601)
273,050
$ 235,449
Variance - Positive
(Negative)
$ 51
595,539595,590
94,78714,9795,947
52
1,044
116,809
712,399
712,399
273,050
$ 985,449
State Vocational Education
Budget
$
49,30611,506
9662,561
527
10,13475,000
(75,000)
(75,000)
$ (75,000)
Actual
$ 64,001
64,001
42,0759,819
8242,185
450
8,64864,001
$
Variance - Positive
(Negative)
$ 64,001
64,001
7,2311,687
14237677
1,486
10,999
75,000
75,000
$ 75,000
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Other State Projects
Budget
$
91,1677,139
372430
892100,000
(100,000)
(100,000)
$ (100,000)
Actual
$ 92,730
92,730
84,6816,505
339392
81392,730
$
Variance - Positive
(Negative)
$ 92,730
92,730
6,4866343338
797,270
100,000
100,000
$ 100,000
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
School Plant
Budget
$
421,500
421,500
(421,500)
(421,500)
$ (421,500)
Non-GAAP Actual
$ 28,414
28,414
28,414
28,414
394,502
$ 422,916
Variance - Positive
(Negative)
$ 28,414
28,414
421,500
421,500
449,914
449,914
394,502
$ 844,416
Food Service
Budget
$
3,083,073116,927
3,200,000
(3,200,000)
(3,200,000)
$ (3,200,000)
Actual
$ 380,179
2,645,8823,026,061
2,647,674100,414
2,748,088
277,973
(241,932)(241,932)
36,041
817,478
64,032
$ 917,551
Variance - Positive
(Negative)
$ 380,179
2,645,8823,026,061
435,39916,513
451,912
3,477,973
(241,932)(241,932)
3,236,041
817,478
64,032
$ 4,117,551
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Civic Center
Budget
$
135,919149,081285,000
(285,000)
(285,000)
$ (285,000)
Actual
$ 87,391
87,391
28,96831,77360,741
26,650
26,650
219,232
$ 245,882
Variance - Positive
(Negative)
$ 87,391
87,391
106,951117,308224,259
311,650
311,650
219,232
$ 530,882
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Community School
Budget
$
50,000
50,000
(50,000)
(50,000)
$ (50,000)
Actual
$ 682
682
682
682
48,431
$ 49,113
Variance - Positive
(Negative)
$ 682
682
50,000
50,000
50,682
50,682
48,431
$ 99,113
Auxiliary Operations
Budget
$
912,269503,910
3,0039,406
167,24615,27518,891
1,630,000
(1,630,000)
(1,630,000)
$ (1,630,000)
Actual
$ 792,240
792,240
394,638217,986
1,2994,069
72,3496,6088,172
705,121
87,119
87,119
696,226
1,071
$ 784,416
Variance - Positive
(Negative)
$ 792,240
792,240
517,631285,924
1,7045,337
94,8978,667
10,719924,879
1,717,119
1,717,119
696,226
1,071
$ 2,414,416
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Gifts and Donations
Budget
$
206,613268,839
8,0089,6431,318
105,579600,000
(600,000)
(600,000)
$ (600,000)
Actual
$ 248,748
248,748
87,464113,806
3,3904,082
558
44,694253,994
(5,246)
(5,246)
393,857
$ 388,611
Variance - Positive
(Negative)
$ 248,748
248,748
119,149155,033
4,6185,561
760
60,885346,006
594,754
594,754
393,857
$ 988,611
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Fingerprint
Budget
$
10,000
10,000
(10,000)
(10,000)
$ (10,000)
Actual
$ 952
952
22
22
930
930
7,870
$ 8,800
Variance - Positive
(Negative)
$ 952
952
9,978
9,978
10,930
10,930
7,870
$ 18,800
Insurance Proceeds
Budget
$
516
14,61436,824
18,04670,000
(70,000)
(70,000)
$ (70,000)
Non-GAAP Actual
$ 71,089
71,089
473
13,39033,741
16,53564,139
6,950
6,950
53,184
$ 60,134
Variance - Positive
(Negative)
$ 71,089
71,089
43
1,2243,083
1,5115,861
76,950
76,950
53,184
$ 130,134
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Textbooks
Budget
$
50,000
50,000
(50,000)
(50,000)
$ (50,000)
Actual
$ 12,610
12,610
40,901
40,901
(28,291)
(28,291)
45,189
$ 16,898
Variance - Positive
(Negative)
$ 12,610
12,610
9,099
9,099
21,709
21,709
45,189
$ 66,898
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Litigation Recovery
Budget
$
154,000
154,000
(154,000)
(154,000)
$ (154,000)
Non-GAAP Actual
$ 887
887
887
887
152,679
$ 153,566
Variance - Positive
(Negative)
$ 887
887
154,000
154,000
154,887
154,887
152,679
$ 307,566
Indirect Costs
Budget
$
1,400,000
1,400,000
(1,400,000)
(1,400,000)
$ (1,400,000)
Non-GAAP Actual
$ 8,470
8,470
247,165
247,165
(238,695)
318,071
318,071
79,376
1,555,430
$ 1,634,806
Variance - Positive
(Negative)
$ 8,470
8,470
1,152,835
1,152,835
1,161,305
318,071
318,071
1,479,376
1,555,430
$ 3,034,806
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
Insurance Refund
Budget
$
168,000
168,000
(168,000)
(168,000)
$ (168,000)
Actual
$ 975
975
975
975
167,706
$ 168,681
Variance - Positive
(Negative)
$ 975
975
168,000
168,000
168,975
168,975
167,706
$ 336,681
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Advertisement
Budget
$
1,000
1,000
(1,000)
(1,000)
$ (1,000)
Actual
$
$
Variance - Positive
(Negative)
$
1,000
1,000
1,000
1,000
$ 1,000
Joint Technical Education
Budget
$
115,950138,144
16779,2891,878
134,572470,000
(470,000)
(470,000)
$ (470,000)
Actual
$ 474,539
474,539
69,38682,668
10047,4481,124
80,530
281,256
193,283
193,283
9,764
$ 203,047
Variance - Positive
(Negative)
$ 474,539
474,539
46,56455,476
6731,841
754
54,042188,744
663,283
663,283
9,764
$ 673,047
(Continued)
Total revenues
Revenues:Other localState aid and grantsFederal aid, grants and reimbursements
Expenditures:Current -
InstructionSupport services - students and staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services
Capital outlayTotal expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Increase (decrease) in reserve for inventory
Fund balances (deficits), end of year
District Services
Budget
$
21,421
283,02075,559
380,000
(380,000)
(380,000)
$ (380,000)
Non-GAAP Actual
$ 236,317
236,317
9,682
127,92334,152
171,757
64,560
64,560
157,568
$ 222,128
Variance - Positive
(Negative)
$ 236,317
236,317
11,739
155,09741,407
208,243
444,560
444,560
157,568
$ 602,128
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2016
Totals
Budget
$
8,879,0433,546,6241,629,814
932,942313,806
3,655,767871,381
19,829,377
(19,829,377)
(19,829,377)
$ (19,829,377)
Non-GAAP Actual
$ 2,356,7362,560,2237,439,202
12,356,161
6,304,6531,925,353
403,859424,877165,012
2,683,250443,965
12,350,969
5,192
318,071
(318,071)
5,192
7,847,031
65,103
$ 7,917,326
Variance - Positive
(Negative)
$ 2,356,7362,560,2237,439,202
12,356,161
2,574,3901,621,2711,225,955
508,065148,794972,517427,416
7,478,408
19,834,569
318,071
(318,071)
19,834,569
7,847,031
65,103
$ 27,746,703
(This page intentionally left blank)
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.
(This page intentionally left blank)
Total revenues
Revenues:Other localProperty taxes
Expenditures:Debt service -
Principal retirementInterest and fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Debt Service
Budget
$
1,375,000925,000
2,300,000
(2,300,000)
$ (2,300,000)
Actual
$ 89,8611,723,6421,813,503
1,375,000850,927
2,225,927
(412,424)
596,831
$ 184,407
Variance - Positive
(Negative)
$ 89,8611,723,6421,813,503
74,07374,073
1,887,576
596,831
$ 2,484,407
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALNON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2016
(This page intentionally left blank)
CAPITAL PROJECTS FUNDS Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items. Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property. Bond Building - to account for proceeds from District bond issues that are expended on the acquisition or lease of site sites; construction or renovation of school buildings; supplying school buildings with furniture, equipment, and technology; improving school grounds; or purchasing pupil transportation vehicles. Energy and Water Savings - to account for capital investment monies, energy related rebate, or grant monies, and monies from other funding sources to fund energy or water savings projects in school facilities in accordance with A.R.S. §15-910.02. Emergency Deficiencies Correction - to account for monies received from the School Facilities Board to correct emergency deficiencies. Building Renewal Grant - to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.
ASSETSCash and investmentsCash and investments - restricted
Total assets
LIABILITIES AND FUND BALANCESLiabilities:
Accounts payableConstruction contracts payable
Total liabilities
Fund balances:Restricted
Total fund balances
Total liabilities and fund balances
Adjacent Ways
$ 25,376
$ 25,376
$
25,37625,376
$ 25,376
Bond Building
$ 646,997
$ 646,997
$ 27,04437,21564,259
582,738582,738
$ 646,997
Energy and Water Savings
$ 299,472
$ 299,472
$ 299,472299,472
$ 299,472
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2016
Emergency Deficiencies Correction
$ 17
$ 17
$
1717
$ 17
Building Renewal Grant
$ 3
$ 3
$
33
$ 3
Totals
$ 672,393299,472
$ 971,865
$ 27,044336,687363,731
608,134608,134
$ 971,865
Revenues:Other localState aid and grants
Total revenues
Expenditures:Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):Capital lease agreements
Total other financing sources (uses):
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances, end of year
Adjacent Ways
$ 768
768
105,872105,872
(105,104)
(105,104)
130,480
$ 25,376
Bond Building
$ 1,487
1,487
161,189161,189
(159,702)
(159,702)
742,440
$ 582,738
Energy and Water Savings
$
2,110,8022,110,802
(2,110,802)
2,110,8022,110,802
$
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2016
Emergency Deficiencies Correction
$ 1779,18579,202
79,18579,185
17
17
$ 17
Building Renewal Grant
$ 4214,290214,294
176,594176,594
37,700
37,700
(37,697)
$ 3
Totals
$ 2,276293,475295,751
2,633,6422,633,642
(2,337,891)
2,110,8022,110,802
(227,089)
835,223
$ 608,134
Total revenues
Revenues:Other localProperty taxesState aid and grants
Expenditures:Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
Unrestricted Capital Outlay
Budget
$
2,647,007
64,0003,000
2,714,007
(2,714,007)
$ (2,714,007)
Non-GAAP Actual
$ 168,1854
194,381362,570
634,392
63,8802,966
701,238
(338,668)
4,458,947
$ 4,120,279
Variance - Positive
(Negative)
$ 168,1854
194,381362,570
2,012,615
12034
2,012,769
2,375,339
4,458,947
$ 6,834,286
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2016
Adjacent Ways
Budget
$
131,000
131,000
(131,000)
$ (131,000)
Actual
$ 768
768
105,872
105,872
(105,104)
130,480
$ 25,376
Variance - Positive
(Negative)
$ 768
768
25,128
25,128
25,896
130,480
$ 156,376
Bond Building
Budget
$
750,000
750,000
(750,000)
$ (750,000)
Actual
$ 1,487
1,487
161,189
161,189
(159,702)
742,440
$ 582,738
Variance - Positive
(Negative)
$ 1,487
1,487
588,811
588,811
590,298
742,440
$ 1,332,738
(Continued)
Total revenues
Revenues:Other localProperty taxesState aid and grants
Expenditures:Capital outlayDebt service -
Principal retirementInterest and fiscal charges
Total expenditures
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
Emergency Deficiencies Correction
Budget
$
80,000
80,000
(80,000)
$ (80,000)
Actual
$ 17
79,18579,202
79,185
79,185
17
$ 17
Variance - Positive
(Negative)
$ 17
79,18579,202
815
815
80,017
$ 80,017
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2016
Building Renewal Grant
Budget
$
480,000
480,000
(480,000)
$ (480,000)
Actual
$ 4
214,290214,294
176,594
176,594
37,700
(37,697)
$ 3
Variance - Positive
(Negative)
$ 4
214,290214,294
303,406
303,406
517,700
(37,697)
$ 480,003
Totals
Budget
$
4,088,007
64,0003,000
4,155,007
(4,155,007)
$ (4,155,007)
Non-GAAP Actual
$ 170,4614
487,856658,321
1,157,232
63,8802,966
1,224,078
(565,757)
5,294,170
$ 4,728,413
Variance - Positive
(Negative)
$ 170,4614
487,856658,321
2,930,775
12034
2,930,929
3,589,250
5,294,170
$ 8,883,420
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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 and employee payroll deposits temporarily held by the District as an agent.
ASSETSCash and investments
Total assets
LIABILITIESDeposits held for othersDue to student groups
Total liabilities
Student Activities
$ 244,944$ 244,944
$ 244,944
$ 244,944
Employee Insurance
$ 1,977,086$ 1,977,086
$ 1,977,086
$ 1,977,086
Totals
$ 2,222,030$ 2,222,030
$ 1,977,086244,944
$ 2,222,030
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDSJUNE 30, 2016
Beginning EndingBalance Additions Deductions Balance
STUDENT ACTIVITIES FUND
AssetsCash and investments $ 208,561 $ 429,490 $ 393,107 $ 244,944
Total assets $ 208,561 $ 429,490 $ 393,107 $ 244,944
Liabilities Due to student groups $ 208,561 $ 429,490 $ 393,107 $ 244,944
Total liabilities $ 208,561 $ 429,490 $ 393,107 $ 244,944
EMPLOYEE INSURANCE FUND
AssetsCash and investments $ 2,190,045 29,425,830 29,638,789 $ 1,977,086
Total assets $ 2,190,045 $ 29,425,830 $ 29,638,789 $ 1,977,086
LiabilitiesDeposits held for others $ 2,190,045 $ 29,425,830 $ 29,638,789 $ 1,977,086
Total liabilities $ 2,190,045 $ 29,425,830 $ 29,638,789 $ 1,977,086
TOTAL AGENCY FUNDS
AssetsCash and investments $ 2,398,606 $ 29,855,320 $ 30,031,896 $ 2,222,030
Total assets $ 2,398,606 $ 29,855,320 $ 30,031,896 $ 2,222,030
LiabilitiesDeposits held for others $ 2,190,045 $ 29,425,830 $ 29,638,789 $ 1,977,086Due to student groups 208,561 429,490 393,107 244,944
Total liabilities $ 2,398,606 $ 29,855,320 $ 30,031,896 $ 2,222,030
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED JUNE 30, 2016AGENCY FUNDS
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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 property taxes.
Debt Capacity
These schedules present information to help the reader evaluate the District’s current levels of outstanding debt as well as assess the District’s ability to make debt payments and/or issue additional debt in the future.
Demographic and Economic Information These schedules present various demographic and economic indicators to help the reader understand the environment in which the District’s financial activities take place and to help make comparisons with other school districts.
Operating Information
These schedules contain information about the District’s operations and various resources to help the reader draw conclusions as to how the District’s financial information relates to the services provided by the District.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to five percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits.
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2016 2015 2014 2013 2012Net Position:
Net investment in capital assets 24,092,627$ 24,812,730$ 25,170,955$ 23,701,048$ 23,872,917$ Restricted 8,792,574 9,469,901 10,697,873 9,844,179 9,500,287 Unrestricted (33,865,138) (35,881,862) 5,010,342 8,185,304 9,894,441
Total net position (979,937)$ (1,599,231)$ 40,879,170$ 41,730,531$ 43,267,645$
2011 2010 2009 2008 2007Net Position:
Net investment in capital assets 23,987,659$ 24,545,942$ 24,715,819$ 23,991,150$ 22,201,492$ Restricted 8,671,300 5,485,249 5,292,567 4,603,719 3,776,321 Unrestricted 11,526,946 10,443,544 7,888,759 9,925,511 9,277,222
Total net position 44,185,905$ 40,474,735$ 37,897,145$ 38,520,380$ 35,255,035$
Note: Negative unrestricted net position was due to the implementation of Governmental Accounting Standards Board (GASB) Statement No. 68 in fiscal year 2014-15.
The source of this information is the District's financial records.Source:
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
(Accrual basis of accounting)
2016 2015 2014 2013 2012
Instruction 23,797,530$ 24,416,291$ 23,230,551$ 22,630,089$ 21,825,817$ Support services - students and staff 5,044,693 4,947,880 4,888,880 4,860,351 4,884,465 Support services - administration 4,355,587 4,682,031 4,467,273 4,484,144 4,170,644 Operation and maintenance of plant services 5,685,776 5,806,271 5,686,411 5,609,774 5,355,853 Student transportation services 1,739,543 1,841,991 1,826,102 1,788,886 1,531,310 Operation of non-instructional services 2,850,419 2,797,966 2,758,328 2,656,459 2,603,557 Interest on long-term debt 836,764 884,425 960,722 1,055,486 1,237,986
Total expenses 44,310,312 45,376,855 43,818,267 43,085,189 41,609,632
Program RevenuesCharges for services:
Instruction 2,140,284 2,861,211 2,537,148 2,305,102 2,393,490 Operation of non-instructional services 382,954 395,497 397,266 398,362 387,526 Other activities 993,741 436,118 377,557 372,398 350,356
Operating grants and contributions 7,721,121 7,666,253 7,518,260 7,205,183 6,904,820 Capital grants and contributions 330,778 310,594 261,557 303,062 118,143
Total program revenues 11,568,878 11,669,673 11,091,788 10,584,107 10,154,335
Net (Expense)/Revenue (32,741,434)$ (33,707,182)$ (32,726,479)$ (32,501,082)$ (31,455,297)$
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)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
Source: Note:
LAST TEN FISCAL YEARS(Accrual basis of accounting)
Fiscal Year Ended June 30
Expenses
2011 2010 2009 2008 2007Expenses
Instruction 21,193,617$ 24,147,217$ 26,712,794$ 27,127,069$ 25,895,675$ Support services - students and staff 5,374,109 5,075,431 4,957,194 4,998,090 3,921,726 Support services - administration 4,097,324 3,823,937 3,920,155 4,154,022 3,756,037 Operation and maintenance of plant services 5,638,515 5,423,307 5,773,454 5,765,809 5,456,674 Student transportation services 1,623,623 1,486,012 1,449,137 1,571,071 1,429,651 Operation of non-instructional services 2,708,750 2,789,726 2,500,851 2,443,743 3,162,739 Interest on long-term debt 651,747 890,764 577,280 584,926 639,638
Total expenses 41,287,685 43,636,394 45,890,865 46,644,730 44,262,140
Program RevenuesCharges for services:
Instruction 2,691,103 2,608,346 2,929,249 2,348,354 2,336,435 Operation of non-instructional services 425,040 478,419 561,718 1,091,049 1,336,253 Other activities 269,948 123,659 75,224 27,728 65,171
Operating grants and contributions 7,909,199 6,842,145 6,136,311 6,168,014 5,717,306 Capital grants and contributions 325,834 339,359 146,644 171,150 124,206
Total program revenues 11,621,124 10,391,928 9,849,146 9,806,295 9,579,371
Net (Expense)/Revenue (29,666,561)$ (33,244,466)$ (36,041,719)$ (36,838,435)$ (34,682,769)$
(Concluded)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
(Accrual basis of accounting)LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
Source: The source of this information is the District's financial records.
2016 2015 2014 2013 2012
Net (Expense)/Revenue (32,741,434)$ (33,707,182)$ (32,726,479)$ (32,501,082)$ (31,455,297)$
General Revenues: Taxes:
Property taxes, levied for general purposes 9,573,126 9,806,714 9,964,424 8,588,037 8,496,476 Property taxes, levied for debt service 1,732,605 1,695,060 1,871,372 2,931,255 2,889,704 Property taxes, levied for capital outlay 4 5 74 85
Investment income 72,972 53,418 65,307 137,035 71,821 Unrestricted county aid 2,010,153 1,945,722 1,923,971 1,904,018 1,613,268 Unrestricted state aid 19,816,228 18,307,824 18,135,679 17,261,140 17,292,481 Unrestricted federal aid 155,640 126,746 161,497 142,398 173,287
Total general revenues 33,360,728 31,935,489 32,122,324 30,963,968 30,537,037
Changes in Net Position 619,294$ (1,771,693)$ (604,155)$ (1,537,114)$ (918,260)$
Source: The source of this information is the District's financial records.
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)
Fiscal Year Ended June 30
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS(Accrual basis of accounting)
2011 2010 2009 2008 2007
Net (Expense)/Revenue (29,666,561)$ (33,244,466)$ (36,041,719)$ (36,838,435)$ (34,682,769)$
General Revenues: Taxes:
Property taxes, levied for general purposes 9,988,442 10,144,865 9,991,857 9,652,649 9,567,601 Property taxes, levied for debt service 2,516,168 2,550,044 2,111,826 1,868,469 1,640,798 Property taxes, levied for capital outlay 332,951 621,397 237,169
Investment income 97,158 177,655 277,310 629,653 595,163 Unrestricted county aid 1,459,486 1,316,470 15,465 15,097 Unrestricted state aid 19,084,987 19,937,132 22,689,075 27,331,612 26,466,385 Unrestricted federal aid 231,490 1,695,890
Total general revenues 33,377,731 35,822,056 35,418,484 40,103,780 38,522,213
Changes in Net Position 3,711,170$ 2,577,590$ (623,235)$ 3,265,345$ 3,839,444$
The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.
(Concluded)
(Accrual basis of accounting)
The source of this information is the District's financial records.
Fiscal Year Ended June 30
Source: Note:
GENERAL REVENUES AND TOTAL CHANGES IN NET POSITIONLAST TEN FISCAL YEARS
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8
2016 2015 2014 2013 2012General Fund:
Nonspendable 569,029$ 645,580$ 886,994$ 858,379$ 1,000,613$ Unassigned 6,583,530 4,811,772 4,870,251 6,415,291 8,070,158
Total General Fund 7,152,559$ 5,457,352$ 5,757,245$ 7,273,670$ 9,070,771$
All Other Governmental Funds:Nonspendable 113,343$ 48,240$ 75,601$ 69,169$ 52,201$ Restricted 9,165,666 10,120,001 12,158,034 12,554,480 15,075,445 Unassigned (37,697) (27,136)
Total all other governmental funds 9,279,009$ 10,130,544$ 12,206,499$ 12,623,649$ 15,127,646$
(Continued)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8FUND BALANCES - GOVERNMENTAL FUNDS
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS(Modified accrual basis of accounting)
2011 2010 2009 2008 2007General Fund:
Nonspendable 735,929$ $ $ $ $ Unassigned 10,037,516 Reserved $ 702,898$ 304,718$ 404,402$ 367,156$ Unreserved 5,179,726 3,328,312 4,050,360 3,097,601
Total General Fund 10,773,445$ 5,882,624$ 3,633,030$ 4,454,762$ 3,464,757$
All Other Governmental Funds:Nonspendable 137,965$ $ $ $ $ Restricted 17,853,310 Reserved $ 72,307$ 172,685$ 158,556$ 79,874$ Unreserved, reported in:
Special revenue funds 4,439,282 4,264,740 4,892,492 4,617,765 Capital projects funds 8,366,457 13,373,673 4,139,311 3,518,624 Debt service fund 1,159,395 1,002,296 371,641 183,036
Total all other governmental funds 17,991,275$ 14,037,441$ 18,813,394$ 9,562,000$ 8,399,299$
Source:Note: 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.
The source of this information is the District's financial records.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS(Modified accrual basis of accounting)
2016 2015 2014 2013 2012Federal sources:
Federal grants 4,784,320$ 5,180,092$ 4,867,094$ 4,732,432$ 4,434,794$ Education Jobs 15,121 National School Lunch Program 2,654,882 2,532,756 2,560,220 2,431,567 2,285,107 Total federal sources 7,439,202 7,712,848 7,427,314 7,163,999 6,735,022
State sources:State equalization assistance 17,413,770 16,043,535 15,891,586 15,465,219 15,656,612 State grants 157,772 244,142 218,861 307,855 212,400 School Facilities Board 293,475 239,517 105,886 Other revenues 2,402,451 2,264,325 2,244,093 1,795,921 1,636,197 Total state sources 20,267,468 18,791,519 18,460,426 17,568,995 17,505,209
Local sources:Property taxes 11,276,121 11,606,810 11,807,713 11,486,643 11,573,940 County aid 2,010,153 1,945,722 1,923,971 1,904,018 1,613,268 Food service sales 372,443 384,262 389,350 392,935 385,882 Investment income 72,972 53,907 65,307 137,035 71,821 Other revenues 3,461,633 3,215,125 3,111,874 2,861,716 2,994,034 Total local sources 17,193,322 17,205,826 17,298,215 16,782,347 16,638,945 Total revenues 44,899,992$ 43,710,193$ 43,185,955$ 41,515,341$ 40,879,176$
(Continued)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
(Modified accrual basis of accounting)
2011 2010 2009 2008 2007Federal sources:
Federal grants 4,597,027$ 4,403,639$ 3,631,751$ 3,912,625$ 3,849,495$ State Fiscal Stabilization (ARRA) 231,490 1,695,890 National School Lunch Program 2,152,228 1,992,447 1,742,071 1,773,008 1,618,930 Total federal sources 7,965,932 8,091,976 5,373,822 5,685,633 5,468,425
State sources:State equalization assistance 17,630,781 18,299,444 20,833,934 23,871,044 22,850,391 State grants 170,959 209,068 700,725 473,559 373,086 School Facilities Board 413,808 827,747 Other revenues 1,590,776 1,598,902 1,956,765 2,945,136 2,788,248 Total state sources 19,392,516 20,107,414 23,491,424 27,703,547 26,839,472
Local sources:Property taxes 12,400,383 12,703,618 12,293,497 12,187,823 11,328,104 County aid 1,459,486 1,316,470 15,465 15,097 Food service sales 366,360 421,525 451,831 510,672 579,896 Investment income 97,158 177,655 277,310 629,653 595,163 Other revenues 3,251,579 3,365,249 3,683,887 3,112,575 3,169,489 Total local sources 17,574,966 17,984,517 16,721,990 16,440,723 15,687,749 Total revenues 44,933,414$ 46,183,907$ 45,587,236$ 49,829,903$ 47,995,646$
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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS(Modified accrual basis of accounting)
2016 2015 2014 2013 2012
Expenditures:Current -
Instruction 21,190,136$ 21,768,437$ 20,885,766$ 19,855,181$ 20,126,200$ Support services - students and staff 4,929,873 4,784,411 4,827,700 4,718,700 4,789,466 Support services - administration 4,175,551 4,421,107 4,260,005 4,376,932 3,995,245 Operation and maintenance of plant services 5,587,530 5,578,554 5,529,864 5,406,671 5,285,569 Student transportation services 1,486,441 1,550,724 1,594,744 1,540,842 1,348,207 Operation of non-instructional services 2,781,371 2,698,230 2,700,687 2,603,417 2,488,686
Capital outlay 3,862,990 2,805,263 2,408,565 4,162,231 4,732,527 Debt service -
Interest and fiscal charges 853,893 901,554 977,851 1,055,486 1,237,986 Principal retirement 1,438,880 1,377,010 1,969,395 1,881,713 1,620,514 Bond issuance costs
Total expenditures 46,306,665$ 45,885,290$ 45,154,577$ 45,601,173$ 45,624,400$
Expenditures for capitalized assets 2,912,507$ 1,693,714$ 1,695,076$ 3,243,504$ 4,117,011$
Debt service as a percentage ofnoncapital expenditures 5% 5% 7% 7% 7%
Source: The source of this information is the District's financial records.Notes:
(Continued)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS(Modified accrual basis of accounting)
2011 2010 2009 2008 2007
Expenditures:Current -
Instruction 19,394,272$ 21,692,784$ 24,197,268$ 24,635,205$ 23,622,083$ Support services - students and staff 5,197,363 5,000,685 4,928,384 4,844,523 3,856,016 Support services - administration 3,809,344 3,628,763 3,809,332 4,037,775 3,587,053 Operation and maintenance of plant services 5,522,750 5,531,037 5,547,260 5,574,478 5,274,314 Student transportation services 1,379,688 1,346,652 1,320,167 1,411,549 1,303,473 Operation of non-instructional services 2,608,305 2,534,924 2,301,469 2,828,752 3,025,805
Capital outlay 6,196,061 6,702,128 2,774,371 2,547,063 3,434,215 Debt service -
Claims and judgments 147,787 Interest and fiscal charges 684,029 890,764 600,680 584,926 639,638 Principal retirement 1,892,182 1,713,410 1,133,909 1,369,722 1,306,628 Bond issuance costs 93,588 251,247
Total expenditures 46,777,582$ 49,041,147$ 47,011,874$ 47,833,993$ 46,049,225$
Expenditures for capitalized assets 4,971,858$ 4,983,234$ 1,309,404$ 1,253,355$ 1,908,851$
Debt service as a percentage ofnoncapital expenditures 6% 6% 4% 4% 4%
Source:
(Concluded)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
The source of this information is the District's financial records.
Fiscal Year Ended June 30
LAST TEN FISCAL YEARS(Modified accrual basis of accounting)
2016 2015 2014 2013 2012
Excess (deficiency) of revenues over expenditures (1,406,673)$ (2,175,097)$ (1,968,622)$ (4,085,832)$ (4,745,224)$
Other financing sources (uses):Capital lease agreements 2,261,793 68,024 Transfers in 318,071 250,071 2,557,872 330,192 220,090 Transfers out (318,071) (250,071) (2,557,872) (330,192) (220,090)
Total other financing sources (uses) 2,261,793 68,024
Changes in fund balances 855,120$ (2,107,073)$ (1,968,622)$ (4,085,832)$ (4,745,224)$
2011 2010 2009 2008 2007
Excess (deficiency) of revenues over expenditures (1,844,168)$ (2,857,240)$ (1,424,638)$ 1,995,910$ 1,946,421$
Other financing sources (uses):School improvement bonds issued 9,950,000 9,950,000 Refunding bonds issued 7,380,000 Premium on sale of bonds 125,870 439,866 Capital lease agreements 434,367 33,079 49,885 40,868 337,740 Transfers in 90,034 101,790 335,005 85,649 81,773 Transfers out (90,034) (101,790) (335,005) (85,649) (81,773) Payment to refunded bond escrow agent (7,545,219)
Total other financing sources (uses) 10,510,237 33,079 10,274,532 40,868 337,740
Changes in fund balances 8,666,069$ (2,824,161)$ 8,849,894$ 2,036,778$ 2,284,161$
Source: The source of this information is the District's financial records.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
(Modified accrual basis of accounting)
Class 2016 2015 2014 2013 2012
Commercial, Industrial, Utilities and Mining $ 103,613,262 $ 108,115,016 $ 108,646,346 $ 117,028,380 $ 115,885,389
Agricultural and Vacant 4,864,782 5,133,265 5,596,377 6,006,160 6,419,440
Residential (Owner Occupied) 45,879,412 45,906,498 48,103,134 55,089,281 59,833,213
Residential (Rental) 28,211,503 26,631,922 23,819,874 24,602,502 24,477,012
Railroad, Private Cars and Airlines 1,339,071 1,074,849 908,886 866,428 735,611
Historical Property 111,799 382,032
Certain Government Property Improvements
Total $ 183,908,030 $ 186,861,550 $ 187,074,617 $ 203,704,550 $ 207,744,740
Gross Full Cash Value $ 1,603,347,327 $ 1,551,507,923 $ 1,528,762,890 $ 1,624,311,957 $ 1,681,789,943
Ratio of Net Limited Value to Gross Full Cash Value 11% 12% 12% 13% 12%
Total Direct Rate 6.63 6.61 6.71 5.98 5.97
Class 2011 2010 2009 2008 2007
Commercial, Industrial, Utilities and Mining $ 119,121,232 $ 117,283,584 $ 111,318,333 $ 107,762,064 $ 98,358,422
Agricultural and Vacant 6,539,972 6,054,845 5,843,111 5,909,768 5,750,153
Residential (Owner Occupied) 69,648,932 70,726,460 65,980,093 59,922,649 55,132,033
Residential (Rental) 25,056,971 23,237,784 20,935,301 18,656,398 16,562,888
Railroad, Private Cars and Airlines 684,499 677,980 768,438 817,582 1,048,848
Historical Property 308,798 308,864 399,920 250 252
Certain Government Property Improvements
Total $ 221,360,404 $ 218,289,517 $ 205,245,196 $ 193,068,711 $ 176,852,596
Gross Full Cash Value $ 1,765,177,346 $ 1,762,306,563 $ 1,685,032,896 $ 1,475,448,427 $ 1,275,545,521
Ratio of Net Limited Value to Gross Full Cash Value 13% 12% 12% 13% 14%
Total Direct Rate 6.04 6.13 6.26 6.57 6.86
Source:
Note:
The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. Primary taxes are used for general District operations. Secondary taxes are used to service District bonded debt requirements and other voter-approved overrides.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8NET LIMITED ASSESSED VALUE AND FULL CASH VALUE OF TAXABLE PROPERTY BY CLASS
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
Class 2016 2015 2014 2013 2012
Commercial, Industrial, Utilities and Mining $ 107,392,880 $ 109,340,130 $ 109,940,821 $ 120,572,082 $ 121,451,430
Agricultural and Vacant 4,961,780 5,212,117 5,776,203 6,485,635 7,219,438
Residential (Owner Occupied) 48,169,512 46,102,323 48,127,140 55,147,501 59,948,263
Residential (Rental) 28,944,070 26,800,291 24,050,117 24,663,656 24,920,187
Railroad, Private Cars and Airlines 1,362,614 1,084,163 916,837 881,512 814,148
Historical Property 447,195 1,528,123
Certain Government Property Improvements 12,602
Total $ 190,830,856 $ 188,539,024 $ 188,811,118 $ 208,197,581 $ 215,894,191
Gross Full Cash Value $ 1,603,347,327 $ 1,551,507,923 $ 1,528,762,890 $ 1,624,311,957 $ 1,681,789,943
Ratio of Net Full Cash Value to Gross Full Cash Value 12% 12% 12% 13% 13%
Total Direct Rate 6.63 6.61 6.71 5.98 5.97
Class 2011 2010 2009 2008 2007
Commercial, Industrial, Utilities and Mining $ 128,937,745 $ 130,715,977 $ 122,507,754 $ 116,420,660 $ 102,713,707
Agricultural and Vacant 8,085,468 8,087,323 7,790,217 7,723,853 7,469,425
Residential (Owner Occupied) 70,127,699 74,044,249 75,414,558 64,052,331 55,858,545
Residential (Rental) 26,651,322 26,363,043 24,560,573 22,476,278 17,698,115
Railroad, Private Cars and Airlines 807,216 789,522 857,166 894,200 1,102,983
Historical Property 1,296,954 1,358,962 1,838,714 250 252
Certain Government Property Improvements
Total $ 235,906,404 $ 241,359,076 $ 232,968,982 $ 211,567,572 $ 184,843,027
Gross Full Cash Value $ 1,765,177,346 $ 1,762,306,563 $ 1,685,032,896 $ 1,475,448,427 $ 1,275,545,521
Ratio of Net Full Cash Value to Gross Full Cash Value 13% 14% 14% 14% 14%
Total Direct Rate 6.04 6.13 6.26 6.57 6.86
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the District's bonding capacity and as the ceiling for net limited assessed value.
Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8NET FULL CASH ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
Class 2016 2015 2014 2013 2012
Commercial, Industrial, Utilities and Mining 19 % 19 % 20 % 20 % 20 %
Agricultural and Vacant 16 16 16 16 16
Residential (Owner Occupied) 10 10 10 10 10
Residential (Rental) 10 10 10 10 10
Railroad, Private Cars and Airlines 15 16 15 15 15
Class 2011 2010 2009 2008 2007
Commercial, Industrial, Utilities and Mining 21 % 22 % 23 % 24 % 25 %
Agricultural and Vacant 16 16 16 16 16
Residential (Owner Occupied) 10 10 10 10 10
Residential (Rental) 10 10 10 10 10
Railroad, Private Cars and Airlines 17 18 20 21 22
Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.Note: Additional classes of property exist, but do not amount to a significant portion of the District's total valuation, therefore they are not included on this
schedule.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8PROPERTY TAX ASSESSMENT RATIOS
LAST TEN FISCAL YEARS
Fiscal Year
Fiscal Year
Fiscal Year City
Ended ofJune 30 County Tucson Primary Secondary Total
2016 0.51 5.09 0.52 0.31 1.37 0.05 0.14 1.60 2.91 4.32 2.31 6.63 2015 0.51 4.98 0.44 0.30 1.33 0.05 0.14 1.46 2.93 4.42 2.20 6.61 2014 0.51 4.45 0.38 0.26 1.29 0.05 0.14 1.43 3.02 4.43 2.28 6.71 2013 0.47 4.20 0.35 0.26 1.17 0.04 0.10 1.26 2.83 3.37 2.60 5.98 2012 0.43 4.20 0.35 0.26 1.11 0.04 0.10 1.16 2.71 3.41 2.56 5.97 2011 0.36 3.31 0.31 0.26 0.11 0.04 0.10 0.96 2.46 3.88 2.16 6.04 2010 0.33 4.02 0.26 0.26 1.08 0.04 0.10 0.93 2.21 3.99 2.14 6.13 2009 4.00 0.34 0.29 1.13 0.04 0.10 0.96 2.26 4.22 2.04 6.26 2008 4.29 0.40 0.34 1.18 0.04 0.10 1.13 2.57 4.42 2.15 6.57 2007 4.56 0.37 0.37 1.25 0.04 0.12 1.23 2.47 4.57 2.29 6.86
Note: There was no state equalization overlapping rate prior to 2010.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
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
County Free
Library
Flood Control District
Community College District
Fire District
Assistance
Central Arizona Water
Northwest Fire
District
Net Limited Assessed
Valuation
Net Limited Assessed
Valuation
Unisource Energy Corp 10,717,269 5.83 % %Marana Marketplace Partners, LLC 2,789,552 1.52Verizon Wireless 2,548,118 1.39Southwest Gas Corp 2,419,108 1.32 1,940,852 1.05 Realty Income Properties LLC 2,216,280 1.21Qwest Corp 1,844,401 1.00 5,526,807 2.99 Orange Grove Properties LLC 1,752,372 0.95Precision Shooting Equipment 1,182,995 0.64 GRH Marana LLC 1,604,026 0.87Union Pacific Railroad 1,367,570 0.74Tucson Electric Power 5,434,385 2.94 EMH Investments LLC (K-Mart) 3,234,753 1.75 Target Corp (FKA Dayton Hudson Corporation 1,295,732 0.70 2,587,802 1.40 Noth Pime Center LLC 1,552,681 0.84 The Tanager Company 1,238,448 0.67 Price Company 2,070,242 1.12 Phillips Industries Inc. 1,293,901 0.70
Total 28,554,428$ 15.53 % 26,062,866$ 14.10 %
Source:Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with
Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value.
The source of this information is the Pima County Assessor's records.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR
Percentage of District's Net
Limited Assessed Valuation
Percentage of District's Net
Full Cash Valuation
2007
Taxpayer
2016
FiscalYear Taxes Levied Collections in
Ended for the Subsequent June 30 Fiscal Year Amount Fiscal Years Amount(2)
2016 11,343,045$ 10,765,389$ 94.91 % $ 10,765,389$ 94.91 %2015 11,478,903 10,952,587 95.41 513,110 11,465,697 99.882014 10,908,887 10,420,496 95.52 442,909 10,863,405 99.582013 10,570,986 10,079,622 95.35 490,284 10,569,906 99.992012 10,650,472 10,145,194 95.26 476,393 10,621,587 99.732011 12,450,248 11,805,314 94.82 640,540 12,445,854 99.962010 12,843,796 12,105,651 94.25 723,655 12,829,306 99.892009 11,105,267 10,503,863 94.58 601,261 11,105,124 100.002008 10,802,675 10,344,041 95.75 458,285 10,802,326 100.002007 10,234,789 9,840,903 96.15 393,601 10,234,504 100.00
Source:Notes: 1)
2)
Unsecured personal property taxes are not included in this schedule because the dates of the monthly rollsvary each year. On the average, 90% of unsecured property taxes are collected within 90 days after thedue date.
Amounts collected are on a cash basis.The source of this information is the 2016 Pima County Treasurer's records.
of LevyPercentage
of LevyPercentage
Fiscal Year of the LevyCollected within the
of the Current Fiscal Year
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected to the End
Fiscal Less: Percentage of Percentage of Year Estimated Estimated Percentage of
Ended Actual Value Per Actual Value Per Personal June 30 Total (Full Cash Value) Capita Total (Full Cash Value) Capita Income
2016 16,275,819$ 280,710$ 15,995,109$ 1.00 % 171$ 2,256,845$ 18,532,664$ 1.16 % 198$ N/A %2015 17,667,948 684,171 16,983,777 1.09 182 58,932 17,726,880 1.14 190 0.05 2014 18,970,077 1,008,072 17,962,005 1.17 193 82,918 19,052,995 1.25 205 0.05 2013 22,370,000 1,809,556 20,560,444 1.27 225 187,313 22,557,313 1.39 247 0.06 2012 23,945,000 1,577,966 22,367,034 1.33 239 304,026 24,249,026 1.44 260 0.07 2011 25,680,000 1,369,504 24,310,496 1.38 280 349,540 26,029,540 1.47 300 0.08 2010 17,330,000 1,266,351 16,063,649 0.91 222 72,355 17,402,355 0.99 241 0.05 2009 18,340,000 1,096,149 17,243,851 1.02 247 152,686 18,492,686 1.10 265 0.05 2008 9,590,000 445,015 9,144,985 0.62 122 226,710 9,816,710 0.67 131 0.03 2007 10,730,000 248,325 10,481,675 0.82 250 355,564 11,085,564 0.87 264 0.04
Source:Note: N/A indicates that the information is not available.
The source of this information is the District's financial records.
General Obligation Bonds
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Total Outstanding Debt
General Obligation
Bonds
Amounts Restricted
for PrincipalCapital Leases
Estimated EstimatedPercentage Amount
Debt Applicable to Applicable toOutstanding School District School District
Overlapping:Pima County 394,415,000$ 2.50 % 9,860,375$ Community College District None 2.50 NoneCity of Tucson 566,683,691 6.01 34,057,690 Northwest Fire District 26,400,000 12.70 3,352,800
Subtotal, Overlapping Debt 47,270,865
Direct:Flowing Wells Unified School District No. 8 18,532,664 100.00 18,532,664
Total Direct and Overlapping Governmental Activities Debt 65,803,529$
Net Direct General Obligation Bonded DebtAs a Percentage of Net Limited Assessed Valuation 8.74 %
Net Direct and Overlapping General Bonded DebtPer Capita 678$ As a Percentage of Net Limited Assessed Valuation 34.45 %As a Percentage of Gross Full Cash Value 3.95 %
Source:
Notes: 1)
2)
Outstanding debt as of June 30, 2015 is presented for the overlapping governments as this is the most recent available information.
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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Governmental Unit
Estimated percentage of debt outstanding applicable to the District is calculated based on a portionof the District's net limited assessed valuation as a percentage of the net limited assessed valuationof the overlapping jurisdiction.
JUNE 30, 2016
DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS
Class B Bond Legal Debt Margin Calculation for Fiscal Year 2016: Total Legal Debt Margin Calculation for Fiscal Year 2016:Net full cash assessed valuation 190,830,856$ Net full cash assessed valuation 190,830,856$ Debt limit (20% of assessed value) 38,166,171 Debt limit (30% of assessed value) 57,249,257 Debt applicable to limit 16,080,000 Debt applicable to limit 16,080,000 Legal debt margin 22,086,171$ Legal debt margin 41,169,257$
2016 2015 2014 2013 2012
Debt Limit 57,249,257$ 56,561,707$ 56,643,335$ 62,459,274$ 64,768,257$
Total net debt applicable to limit 16,080,000 17,455,000 18,740,000 22,370,000 23,945,000
Legal debt margin 41,169,257$ 39,106,707$ 37,903,335$ 40,089,274$ 40,823,257$
Total net debt applicable to the limit as a percentage of debt limit 28% 31% 33% 36% 37%
2011 2010 2009 2008 2007
Debt Limit 70,771,921$ 72,407,723$ 69,890,695$ 63,470,272$ 55,452,908$
Total net debt applicable to limit 25,680,000 17,330,000 18,340,000 9,590,000 10,730,000
Legal debt margin 45,091,921$ 55,077,723$ 51,550,695$ 53,880,272$ 44,722,908$
Total net debt applicable to the limit as a percentage of debt limit 36% 24% 26% 15% 19%
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.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
The source of this information is the District's financial records.
Estimated
Year Population (thousands)
2015 1,009,371 $ N/A $ N/A % 93,460 2014 1,007,162 37,198,714 37,031 93,105 2013 992,394 36,935,363 37,063 93,033 2012 989,569 36,058,871 36,335 91,490 2011 986,081 34,596,360 34,961 93,403 2010 960,263 34,360,759 34,987 86,769 2009 1,018,012 34,516,424 33,833 72,305 2008 1,012,018 34,392,945 34,058 69,748 2007 1,003,235 31,646,777 31,755 74,861 2006 981,280 29,806,619 31,418 42,000
Sources:
Note:
The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.
The source of the "Population" and "Unemployment Rate" information from 2006 through 2010 is theUniversity of Arizona, Eller College of Management, Economic and Business Research Center. For 2011through 2015, the source of the information is the Arizona Office of Employment and Population Statistics.
N/A indicates that the information is not available.
5.6 6.2 6.9 6.7 8.4 9.0 8.3 5.1 3.7 4.0
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Personal Income Per Capita
IncomeUnemployment
RateDistrict
Population
Percentage Percentageof Total of Total
Employees Employment Employees Employment
University of Arizona 11,251 2.71 % 10,354 2.48 %Raytheon Missile Systems 9,600 2.31 11,184 2.67 State of Arizona 8,580 2.07 9,927 2.37
8,406 2.03 8,233 1.97 Pima County 7,060 1.70 7,290 1.74 Tucson Unified School District 6,770 1.63 7,419 1.77 Banner University of Arizona Health Network 6,272 1.51 U.S. Customs and Border Protection 5,739 1.38 Freeport-McMoran Mining 5,530 1.33 4,900 Wal-Mart Stores, Inc. 5,500 1.33 5,625 1.35 Fort Huachuca 13,098 3.13 U.S. Army 9,119
Total 74,708 18.00 % 87,149 17.48 %
Total employment 415,048 418,111
Source: The source of this information is Arizona Daily Star -Star 200 and Bureau of Labor Statistics.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR
Employer
2016 2007
Davis Monthan AFB
2016 2015 2014 2013 2012
SupervisoryPrincipals 9 9 9 9 9 Assistant principals 6 6 6 5 5
Total supervisory 15 15 15 14 14 Instruction
Teachers 293 293 293 293 290 Aides 104 106 113 106 93
Total instruction 397 399 406 399 383 Student Services
Certified 25 24 27 26 25 Classified 28 27 26 24 23
Total student services 53 51 53 50 48 Support and Administration
Certified 9 9 13 14 16
Classified 140 151 147 147 144 Total support and administration 149 160 160 161 160
Total 614 625 634 624 605
(Continued)
Full-time Equivalent Employees as of June 30
LAST TEN FISCAL YEARS
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
2011 2010 2009 2008 2007
SupervisoryPrincipals 8 8 8 8 8 Assistant principals 5 5 5 5 5
Total supervisory 13 13 13 13 13 Instruction
Teachers 300 310 332 325 318 Aides 93 103 113 116 121
Total instruction 393 413 445 441 439 Student Services
Certified 21 25 25 26 26 Classified 26 33 41 43 43
Total student services 47 58 66 69 69 Support and Administration
Certified 19 17 16 16 15
Classified 143 151 163 163 160 Total support and administration 162 168 179 179 175
Total 615 652 703 702 696
Source:
(Concluded)
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS
The source of this information is District personnel records.
FiscalYear Cost Cost Pupil-
Ended per Percentage per Percentage Teaching TeacherJune 30 Pupil Change Expenses Pupil Change Staff Ratio
2016 5,386 40,150,902$ 7,455$ (2.11) % 44,310,312$ 8,227$ (2.87) % 397 13.6 75.8 %2015 5,358 40,801,463 7,616 2.99 45,376,855 8,470 4.03 399 13.4 72.8 2014 5,382 39,798,766 7,395 3.27 43,818,267 8,142 1.61 406 13.3 75.8 2013 5,377 38,501,743 7,160 (0.71) 43,085,189 8,013 1.56 399 13.5 74.9 2012 5,274 38,033,373 7,211 1.27 41,609,632 7,890 1.74 383 13.8 73.1 2011 5,324 37,911,722 7,121 (3.84) 41,287,685 7,755 (4.64) 393 13.5 72.2 2010 5,366 39,734,845 7,405 (5.98) 43,636,394 8,132 (5.27) 413 13.0 69.2 2009 5,346 42,103,880 7,876 0.95 45,890,865 8,584 2.21 445 12.0 64.4 2008 5,554 43,332,282 7,802 9.73 46,644,730 8,398 8.53 441 12.6 62.9 2007 5,720 40,668,744 7,110 11.33 44,262,140 7,738 12.86 439 13.0 63.1 2006 6,053 38,655,917 6,386 #DIV/0! 41,503,511 6,857 #DIV/0!
Operating expenditures are total expenditures less debt service and capital outlay.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8OPERATING 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
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
SchoolsElementary
Buildings 45 45 45 45 45 44 44 44 44 44 Square feet 321,505 321,505 320,827 319,387 315,706 311,615 311,615 311,615 311,615 311,615 Enrollment 2,894 2,934 2,951 3,044 2,960 2,915 2,911 2,908 2,921 2,991
MiddleBuildings 21 21 21 21 21 21 21 21 21 21 Square feet 127,333 127,333 127,333 127,333 127,333 127,333 127,333 127,333 127,333 127,333 Enrollment 771 852 889 813 795 809 796 790 882 981
HighBuildings 51 51 51 51 50 52 52 52 52 52 Square feet 278,879 278,879 279,406 278,906 277,304 270,249 270,249 270,249 270,249 270,249 Enrollment 2,017 1,795 1,720 1,632 1,682 1,676 1,804 1,779 1,761 1,860
OtherBuildings 11 11 11 11 11 10 10 10 10 10 Square feet 43,706 43,706 55,517 55,517 55,517 50,172 40,001 33,068 33,068 33,068 Enrollment 145 133 150 164 190 191 160 158 158 170
AdministrativeBuildings 8 8 8 8 8 8 8 8 8 8 Square feet 18,794 18,794 18,794 18,794 18,794 18,794 18,794 15,556 15,556 15,556
TransportationGarages 1 1 1 1 1 1 1 1 1 1 Buses 25 25 25 25 23 23 23 25 25 24
AthleticsFootball fields 3 3 3 3 3 3 3 3 3 3 Soccer fields 3 3 3 3 3 3 3 3 3 3 Running tracks 5 5 5 5 5 5 5 5 5 5 Baseball/softball 12 12 12 12 12 11 11 11 11 11 Swimming pools 1 1 1 1 1 1 1 1 1 1 Playgrounds 15 15 15 15 15 14 14 14 14 14
Source: Note: To better align with data maintained the School Facilities Board, the information presented for 2015 slightly differs from prior years.
The source of this information is the District's facilities records.
FLOWING WELLS UNIFIED SCHOOL DISTRICT NO. 8CAPITAL ASSETS INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year Ended June 30
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