KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28...KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 Annual Financial...

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28

Annual Financial Report

for the Fiscal Year Ended June 30, 2009

8700 South Kyrene Road • Tempe, Arizona 85284-2197


TEMPE, ARIZONA

ANNUAL FINANCIAL REPORTFOR THE FISCAL YEAR ENDED JUNE 30, 2009

Issued by:Business and Finance Department


TABLE OF CONTENTS

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)(Reqllired Supplementary Information)

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Balance Sheet - Governmental Funds

Reconciliation of the Balance Sheet -Governmental Funds to the Statement of Net Assets

Statemel1t of Revel1ues, Expenditures and Changes in Fund Balances Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures al1dChanges in Fund Balances - Governmental Funds to theStatement of Activities

Statement of Net Assets - Proprietary Funds

Statenlent of Revel1ues, Expenses and Changes in Fund Net AssetsProprietary Funds

Statemel1t of Cash Flows - Proprietary Funds

Statement of Fiduciary Assets and Liabilities

Notes to Financial Statements

1

5

18

19

22

25

26

28

29

30

31

32

33


TABLE OF CONTENTS (Cont'd)

FINANCIAL SECTION (Cont'd)

BASIC FINANCIAL STATEMENTS (Concl'd)

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES INFUNDBALANCES-BUDGETANDACTUAL(Required Supplementary Information)

General Fund

Note to Required Supplementary Information

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS ANDSCHEDULES

Other Major Governmental Funds Schedule of Revenues, Expenditures andChanges in Fund Balances - Budget and Actual:

Debt Service Fund

Bond Building Fund

Non-Major Governmental Funds:

Combining Balance Sheet - All Non-Major Governmental FundsBy Fund Type

Combining Statement of Revenues, Expenditures and Changes inFund Balances - All Non~Major Goyernmental Funds - By Fund Type

Non-Major Special Revenue Funds:

Combining Balance Sheet

Combining Statement of Revenues, Expenditures andChanges in Fund Balances

Combining Schedule of Revenues, Expenditures andChanges in Fund Balances - Budget and Actual

Non-Major Capital Projects Fllnds:

Combining Balance Sheet

52

53

58

59

62

63

68

76

84

110


TABLE OF CONTENTS (Cont'd)

FINANCIAL SECTION (Concl'd)

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS ANDSCHEDULES (Concl'd)

Combining Statement of Revenues, Expenditures and Changes inFund Balances

Combining Schedule of Revenues, Expenditures and Changes inFtlnd Balances - Budget and Actual

Internal Service Funds:

Combining Statement of Net Assets

Combining Statement of Revenues, Expenses and Changes inFund Net Assets

Combining Statement of Cash Flows

Agency Funds:

Conlbining Statement of Fiduciary Assets and Liabilities

Combining Statement of Changes in Fiduciary Assets and Liabilities

STATISTICAL SECTION

Financial Trends:

Net Assets by Component

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

General Revenues and Total Changes in Net Assets

Fund Balances -Governmental Ftmds

Governmental Funds Revenues

112

114

122

123

124

126

127

131

132

134

136

137


TABLE OF CONTENTS (Concl'd)

STATISTICAL SECTION (Concl'd)

Governmental Fllnds Expendiulres and Debt Service Ratio

Other Financing Sources and Uses and Net Changes in FundBalances - Governmental Funds

Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property

Direct and Overlapping Property Tax Rates

Principal Property Taxpayers

Property Tax Levies and Collections

Debt Capacity:

Outstanding Debt by Type

Direct and Overlapping Governmental Activities Debt

Legal Debt Margin Information

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics

Principal Employers

Operating Information:

Full-Time Equivalent District Employees by Type

Operating Statistics

Capital Assets Information

138

140

141

142

143

144

145

146

147

148

149

150

152

153

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FINANCIAL SECTION

HEINFELD, MEECH & CO., P.C.CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITORS' REPORT

10120 N. Oracle RoadTucson, Arizona 85704

Tel (520) 742-2611Fax (520) 742-2718

Governing BoardKyrene Elementary School District No. 28

We have audited the accompanying financial statements of the governmental activities, each majorfund, and the aggregate remaining fund informatioll oftIle Kyrene Elementary School District No. 28(District) as ofand for the year ended June 30, 2009, which collectively comprise the District's basicfinancial statements, as listed in the table of contents. These financial statements are theresponsibility of the District's management. Our responsibility is to express opinions on thesefinancial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates ofAmerica and the standards applicable to financial audits contained ill Government AuditingStandards, issued by the Comptroller General ofthe Ullited States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the aCCOl111tingprinciples used and significant estimates made by management, as well as evaluatillg the overallbasic finallcial statement presentatioll. We believe tllat our audit provides a reasonable basis for ouropinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, each major fund, and the aggregateremaining fund information for the Kyrene Elementary School District No. 28, as ofJllne 30, 2009,and the respective changes in financial position and cash flows, where applicable, thereoffor the yearthen· ended in conformity with accounting principles generally accepted in the United States ofAmerica.

In accordallce witll Government Auditing Standards, we 11ave also issued our report datedDecember 14,2009,011 our consideration of Kyrene Elementary School District No. 28's internalcontrol over finallcial reporting and on our tests of its compliance witll certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance and theresults ofthat testing, and not to provide an opinion on the internal control over financial reporting oron compliance. That report is an integral part ofan audit performed in accordance with GovernmentAuditing Standards and should be considered in assessing the results of our audit.

TUCSON • PHOENIX • FLAGSTAFFwww.heinfeldmeech.com

The management's discussion and analysis on pages 5 through 14 and the budgetary comparisoninformation on pages 52 and 53 are not a required part of the basic financial statements but aresupplementary information required bythe Governmental Accollnting Standards Board. We haveapplied certain limited procedures, which consisted principally of inquiries of management,regarding the methods ofmeasurement al1d presentation ofthe required supplementary information.However, we did not audit the informatiol1 and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the District's basic financial statements. The accompanying supplementaryinformation such as the combil1ing and individual fund financial statements and schedules, andstatistical section are presented for purposes ofadditional analysis and are not a required part ofthebasic final1cial statements. The combining and individual fund financial statements and scheduleshave been subjected to the auditing procedures applied in the audit ofthe basic financial statementsand, in our opinion, are fairly stated in all material respects in relation to the basic financialstatements taken as a whole. The statistical section has not been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, accordingly, we express no opinion on it.

ItWnftlo1. fll1Ju d{1HEINFELD, MEECH & CO., P.C.Certified Public Accountants

December 14,2009

Page 2

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

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30, 2009

As management ofthe Kyrene Elementary School District No. 28 (District), we offer readers oftheDistrict's financial statements this narrative overview and analysis of the financial activities of theDistrict for the fiscal year ended June 30, 2009.

FINANCIAL HIGHLIGHTS

• The District's total net assets of governmental activities il1creased $1.4 million whichrepresents a one percent il1crease from the prior fiscal year.

• General revenues accounted for $137.7 million in revenue, or 86 percent ofall current fiscalyear revenues. Program specific revenues in the form ofcharges for services and grants andcontributiol1S accounted for $22.5 million or 14 percent oftotal current fiscal year revenues.

• The District had approximately $158.9 nlillion in expenses related to governmental activities,a decrease of 2 percent from the prior fiscal year.

• Among major funds, the General Fund had $94.7 million in current fiscal year revenues,which primarily consisted ofstate aid and property taxes, and $99.9 million in expenditures.The General Fund's fund balance decrease from $8.9 million at the prior fiscal year end to$4.9 million at the end of the current fiscal year was primarily due to the lltilization of fundbalance to flInd current year expenditures primarily as a result ofthe deferral ofa portion ofthe May state equalization payment by the state until fiscal year 2009-10.

Page 5



OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the District's basic financialstatements. The District's basic financial statements comprise three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the finallcial statements. Thisreport also contains other supplementary information in addition to the basic financial statemelltsthemselves.

Government-wide financial statements. The government-wide financial statenlents are desiglledto provide readers with a broad overview ofthe District's finances, in a manner similar to a privatesector business. The accrual basis of accounting is used for the government-wide financialstatements.

The statement ofnet assets presents information on all ofthe District's assets and liabilities, with thedifference between the two reported as llet assets. Over time, increases or decreases in net assetsmay serve as a useful indicator of whether the financial position of the District is improving ordeteriorating.

The statement of activities presents information sllowing how tIle District's net assets changedduring the most recent fiscal year. All changes in net assets are reported as soon as the underlyingevent giving rise to the change OCCtlrS, regardless ofthe timing ofrelated cash flows. Thus, revenuesand expenses are reported in this statement for some items that will only result in cash flows infuture fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).

The government-wide financial statements outline functions of the District that are principallysupported by property taxes and intergovernmental revenues. TIle governmental activities of theDistrict include instruction, support services, operation and maintenance ofplant services, studenttransportation services, operation of non-instructional services, and interest on long-term debt.

Fund financial statements. A fund is a grouping ofrelated accounts that is used to maintain controlover resources that have been segregated for specific activities or objectives. TIle District uses fundaccounting to ensure and demonstrate compliance with finance-related legal requirements. All ofthefunds ofthe District call be divided into three categories: governmental funds, proprietary funds, andfiduciary funds.

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

Page 6



OVERVIEW OF FINANCIAL STATEMENTS (Concl'd)

Because the focus ofgovernmental funds is narrower than that ofthe government-wide financialstatements, it is useful to compare the information presented for governmental funds with similarinformation presented for governmental activities in the government-wide financial statements.By doing so, readers nlay better understand the long-term impact of the District's near-termfinancing decisions. Both the governmental fund balance sheet and the governmental fundstatement of revenues, expenditures and changes in fund balances provide a reconciliation tofacilitate this comparisoll between governnlental fUllds and governmental activities.

Information is presented separately in the governmental fund balance sheet and in thegovernmental fund statement of revenues, expenditures and changes in fund balances for theGeneral, Debt Service, and Bond Building Funds, all ofwhich are COllsidered 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 ofcombining statements and schedules.

Proprietary funds. The District maintains one type of proprietary fUlld. The internal servicefunds are accounting devices used to accumulate and allocate costs internally among theDistrict's various functions. The internal service funds include (1) the Employee Benefit TrustFund which provides employee health insurance, (2) the District Services Fund which accountsfor the operation ofDistrict functions that provide goods or services to other District departmentson a cost reimbursement basis and (3) the Intergovernmental Agreements Fund which accountsfor financial activities related to agreements with other govenlffients where the District is thefiscal agent. Because these activities predominately benefit governmental functions, they havebeen included within governmental activities in the government-wide financial statements.

The interllal service funds are combined into a single, aggregated presentation in tIle proprietaryfund financial statements.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit ofparties outside the District. Fiduciary funds are not reflected in the governnlellt-wide finallcialstatements because the resources of those funds are not available to support the District's ownprograms. 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 afull understanding of the data provided in the government-wide and fund financial statements. Thellotes 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, thisreport alsopresellts certain required supplementary information concerning the District's budgetprocess. The District adopts an annual expenditure budget for all governnlental funds. A scheduleof revenues, expenditures and changes in fund balances - budget and actual has been provided forthe General Fund as required supplementary information.

Page 7



GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net assets may serve over time as a useful indicator ofa government's financial position. In the caseof the District, assets exceeded liabilities by $164.8 million at the current fiscal year end.

The largest portion of the District's net assets (76 percent) reflects its investment in capital assets(e.g., land and improvements, buildings and improvements, vehicles, furniture and equipment andconstruction in progress), less any related debt used to acquire those assets that is still outstanding.The District uses these capital assets to provide services to its students; consequently, these assets arenot available for future spendil1g. Although the District's investment in its capital assets is reportednet of related debt, it should be noted that the resources needed to repay this debt must be providedfrom otl1er SOllrces, since the capital assets themselves cannot be used to liqllidate these liabilities. Inaddition, a portion of the District's l1et assets (7 percent) is restricted by statute for the specifiedpurposes of debt service repayment and capital outlay investment.

The following table presents a summary ofthe District's net assets for the fiscal years ended June 30,2009 and June 30, 2008.

Page 8

Current assetsCapital assets, net

Total assets, net

Current and other liabilitiesLong-term liabilities

Total liabilities

Net assets:Invested in capital assets, net of

related debtRestrictedUnrestricted

Total net assets

As ofJune 30, 2009

$ 107,308,346215,924,624323,232,970

16,715,019141,730,345158,445,364

124,571,38710,994,71529,221,504

$ 164,787,606

As ofJune 30, 2008$ 107,155,177

197,626,355304,781,532

14,123,395127,221,092141,344,487

115,964,87212,721,44434,750,729

$ 163,437,045



GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)

At the end of the current fiscal year the District reported positive balances in all tl1fee categories ofnet assets. The same situation held true for the prior fiscal year.

The District's financial position is the product of several financial transactiollS including the netresult ofactivities, the acquisition and payment ofdebt, the acquisition and disposal ofcapital assets,and the depreciation ofcapital assets. The following are significant current year transactions that hadan impact on the Statement of Net Assets.

• The principal retirement of$5.2 million of bonds alld $5.2 nlillion of bond premiunl.• The additioll of $28.2 nlillion in capital assets scllool improvements and purchases of

vehicles, furniture and equipment.• The disposal of $1.6 million of vehicles and equipment.• The issuance of $25.0 million in school improvement bonds.

Changes in net assets. The District's total revenues for the current fiscal year were $160.2 million.The total cost of all programs and services was $158.9 million. The followillg table presents asummary of the changes in net assets for the fiscal years ended June 30, 2009 and June 30,2008.

Fiscal Year Fiscal YearEnded Ended

June 30, 2009 June 30, 2008Revenues:

Program revenues:Charges for services $ 11,534,725 $ 11,179,152Operating grants and contributions 10,939,698 10,029,200Capital grants and contributions 62,349 84,254

General revenues:Property taxes 70,890,564 75,941,090Investment income 2,375,045 2,976,014Unrestricted state aid 64,405,267 71,319,402Total revenues 160,207,648 171,529,112

Expenses:Instruction 91,090,275 92,030,365Support services - students and staff 13,987,599 13,857,293Support services - administration 12,103,661 11,630,797Operation and maintenance of plant services 11,844,110 15,532,685Student transportation services 6,729,587 5,984,997Operation of non-instructional services 10,186,264 10,955,819Interest on long-term debt 12,915,591 11,372,066

Total expenses 158,857,087 161,364,022Change in net assets $ 1,350,561 $ 10,165,090

Page 9



GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)

Fiscal Year 2008-09 Expenses

8%

Fiscal Year 2007-08 Expenses

7%

58% 56%

I]] Instruction

[lJ Support services - administration

E!l Student transportation services

rII Interes t on long-term debt

iii Support services - students and staff

• Operation and maintenance ofplant services

~ Operation ofnon-instructional services

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

• State aid revenues decreased $6.9 million primarily due to a reduction in the Classroon1 Sitefunding as a result of a decrease in the per pupil allocation amount pursuant to A.R.S.§15-473(B).

• The decrease of $3.7n1illion in operation and maintenance of plant services was primarilydue to a reduction in the amount of prepaid liability and health il1surance premiumsconsumed in the currel1t fiscal year in comparisol1 to the prior fiscal year.

The following table presents the cost of the seven n1ajor District fUl1ctionai activities: instruction,support services - students and staff, support services - administration, operation and maintenance ofplant services, student transportation services, operation ofnon-instructional services and interest onlong-term debt. The table also shows each function's net cost (total cost less charges for servicesgenerated by the activities and intergovernmental aid provided for specific programs). The net costshows the financial burden that was placed on the State and District's taxpayers by each of thesefunctions.

Page 10



GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl'd)

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

Total

Year Ended June 30, 2009Total Net (Expense)/

Expenses Revenue$ 91,090,275 $ 79,499,333

13,987,599 12,814,67512,103,661 12,057,94711,844,110 10,533,0036,729,587 6,595,100

10,186,264 1,904,66612,915,591 12,915,591

$158,857,087 $ 136,320,315

Year Ended June 30, 2008Total Net (Expense)/

Expenses Revenue$ 92,030,365 $ 81,268,126

13,857,293 12,727,41011,630,797 11,559,41015,532,685 14,158,2595,984,997 5,881,944

10,955,819 3,104,20111,372,066 11,372,066

$161,364,022 $ 140,071,416

• The cost of all governmental activities this year was $158.9 million.

• Federal and State governments and charges for services subsidized certain programs withgrants and contributions and other local revenues of $22.5 million.

• Net cost of governmental activities of $136.3 million was financed by general revenues,which are made up of primarily property taxes of $70.9 million and state aid of $64.4nlillion. Investment earnings accounted for $2.4 million of funding.

FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

As noted earlier, the District uses fund accounting to ensure and denl0nstrate compliance witllfinance-related legal requirements.

Governmental funds. The focus ofthe District's governmental funds is to provide information onnear-term inflows, outflows, and balances of spendable resources. Such illfornlation is useful illassessing the District's financing requirements. 111 particular, unreserved fund balance may serve asa useful measure of the District's net resources available for spending at the end of the fiscal year.

The financial performance of the District as a whole is reflected in its governmental funds. As theDistrict completed the year, its governmental funds reported a combined fund balance of $70.2million, a decrease of $9.3 million primarily due to the utilization of fund balance to fund currentyear expenditures.

Page 11



FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS (Concl'd)

The General Fund is the principal operating fund of the District. The decrease in fund balance of$4.0 million to $4.9 million as of fiscal year end was a result of the lltilization of fund balance tofund Cllrrent year expenditures due to the deferral ofa portion ofthe Maystate equalization paymentby the state until fiscal year 2009-10. General Fund revenues decreased $7.3 million as a result ofthe deferral ofthe state equalization payment and a reduction in property tax revenues resulting froma decrease in the tax rate. General Fund expenditures decreased $614,555.

The Debt Service Fund had $20.8 million in current fiscal year revenues and $23.0 million inexpenditures. The Debt Service Fund's fund balance decreased from $3.2 million as ofprior fiscalyear end to $1.9 million as of the current fiscal year end.

The Bond Building Fund had $944,518 in revenues and $27.7 million in expenditures. The BondBuilding Fund reported a decrease ill fund balance to $37.8 million due to the utilization of fundbalance to fund expenditures for various construction projects.

Proprietary funds. Net assets ofthe Internal Service Funds at the end ofthe fiscal year amounted to$7.3 million. Operating revenues of$13.5 million exceeded operating expenses of$12.0 million.

BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised the General Fllnd annual expenditure budget for areduction in the state base support level funding and a reduction in student count. The differencebetween the origillal budget and the final amended budget was a.$l.7 million decrease, or 2 percent.

Significant variances for the final amended budget and actual revenues resulted from the District notbeing required by the State ofArizona to prepare a revenue budget. A schedule showing the originaland final budget amounts compared to the District's actual financial activity for the General Fund isprovided in this report as required supplementary information. There were no significant variancesbetween the final amended budget and actual expenditllres.

Page 12



CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. As of June 30, 2009, the District had invested $33.1 million in capital assets,including school buildings, athletic facilities, buses and other vehicles, computers, and otherequipment. This amount represents a net increase prior to depreciation of $26.6 million fronl theprior fiscal year, primarily due to various construction projects for building improvements. Totaldepreciation expense for the current fiscal year was $9.5 million.

The following schedule presents a summary of capital asset balances for the fiscal years endedJune 30, 2009 and June 30, 2008.

Capital assets - non-depreciableCapital assets - depreciable, net

Total

As ofJune 30, 2009$ 49,605,380

166,319,244$ 215,924,624

As ofJune 30, 2008$ 29,362,706

168,263,649$ 197,626,355

The estimated cost to complete current construction projects is $10.9 million.

Additional information on the District's capital assets can be found in Note 5.

Debt Administration. At year end, the District had $136.7 million in long-term debt outstanding,$9.8 million due witllin one year. This represents a net increase of$14.8 millioll due to the issuanceof $25.0 million ill scll001 improvement bonds.

The District's general obligation bonds are subject to two limits; the Constitutional debt limit (totaldebt limit) on all general obligation bonds (up to 15 percent of the total secondary assessedvaluation) and the statutory debt limit on Class B bonds (the greater of 5 percent of the totalsecondary assessed valuation or $1,500 per student). The Cllrrent total debt limitation for the Districtis $434.2 million and the Class B debt limit is $144.7 million, which are more than the District'stotal outstallding general obligation and Class B debt, respectively.

Additional information on the District's long-term debt can be found in Notes 6 through 8.

Page 13



ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES

Many factors were considered by the District's administration during the process of developing thefiscal year 2009-10 budget. Among them:

• Fiscal year 2008-09 budget balance carry forward (estimated $3.3 million).• District student population (estimated decrease of 175 in average daily membership).• Increases in salary schedules.• 2% increase in revenue from the legislatllre.• Educational growth movement.• Program needs for new and continuing signature schools.

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

Budgeted expenditures in the General Fund decreased 2 percent to $102.1 million in fiscal year2009-10. Increased payroll and employee benefit costs is the prin1ary reason for the increase. Stateaid and property taxes are expected to be the primary funding sources. No new programs were addedto the 2009-10 budget.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, and investors and creditors with ageneral overview of the District's finances and to demonstrate the District's accountability for theresources it receives. Ifyou have questions about this report or need additional il1formation, contacttl1e Business and Finance Department; Kyrene Elementary School District No. 28; 8700 SouthKyrene Road; Tempe, Arizona 85284-2197.

Page 14

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF NET ASSETS

JUNE 30, 2009

GovernmentalActivities

ASSETSCurrent assets:

Cash and investments

Deposits held by others

Property taxes receivable

Accounts receivable

Due from governmental entities

Prepaid items

Inventory, at cost

Total current assets

Noncurrent assets:

Land

Land improvements

Buildings and improvements

Vehicles, furniture and equipment

Construction in progress

Accumulated depreciation

Total noncurrent assets

Total assets

LIABILITIESCurrent liabilities:

Accounts payable

Construction contracts payable

Claims payable

Compensated absences payable

Accrued interest payable

Unearned revenues

Obligations under capital leases

Bonds payable

Bond premium payable

Total current liabilities

Noncurrent liabilities:

Deferred charges

Non-current portion of long-term obligations

Total non-current liabilities

Total liabilities

NET ASSETSInvested in capital assets, net of related debt

Restricted for:

Debt service

Capital outlay

Unrestricted

Total net assets

$

$

85,197,694

55,000

3,443,888'118,329

16,331,895

1,448,065

713,475

107,308,346

26,061,982

28,169,477

233,796,387

19,405,443

23,543,398

(115,052,063)

215,924,624

323,232,970

1,219,320

7,541,656

1,713,790

350,000

5,722,260

157,069

50,255

5,035,000

4,727,980

26,517,330

260,924

131,667,110

131,928,034

158,445,364

124,571,387

2,212,598

8,782,117

29,221,504

164,787,606

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

Page 18

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2009

Net (Expense)Revenue

and ChangesProgram Revenues in Net Assets

Operating CapitalCharges for Grants and Grants and Governmental

FunctionslPrograms Expenses Services Contributions Contributions ActivitiesGovernmental activities:

Instruction $ 91,090,275 $ 6,019,615 $ 6,921,496 $ 62,349 $ (78,086,815)Support services - students and staff 13,987,599 1,479,119 (12,508,480)Support services - administration 12,103,661 61,640 (12,042,021 )Operation and maintenance of plant services 11,844,110 917,234 448,728 (10,478,148)Student transportation services 6,729,587 181,338 (6,548,249)Operation of non-instructional services 10,186,264 4,597,876 1,847,377 (3,741,011)Interest on long-term debt 12,915,591 (12,915,591)

Total governmental activities $158,857,087 $ 11,534,725 $ 10,939,698 $ 62,349 (136,320,315)

Page 19

General revenues:Taxes:

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

Investment incomeUnrestricted state aid

Total general revenues

Changes in net assets

Net assets, beginning of year

Net assets, end of year


42,537,45820,482,691

7,870,4152,375,045

64,405,267137,670,876

1,350,561

163,437,045

$164,787,606

FUND FINANCIAL STATEMENTS

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28BALANCE SHEET-GOVERNMENTAL FUNDS

JUNE 30, 2009

General Debt Service Bond BuildingASSETSCash and investments $ $ 13,997,066 $ 45,303,010Property taxes receivable 2,752,625 461,492Accounts receivableDue from governmental entities 13,037,351Due from other fundsPrepaid items 1,448,065Inventory, at cost 623,883

Total assets $ 17,861,924 $ 14,458,558 $ 45,303,010

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payable $ 532,994 $ $Construction contracts payable 7,541,656Due to other funds 6,422,120Deferred revenues 6,023,778 352,319Bonds payable 4,465,000Bond premium payable 2,058,700Bond interest payable 5,722,260

Total liabilities 12,978,892 12,598,279 7,541,656

Fund balances:Reserved for prepaid items 1,448,065Reserved for inventory 623,883Unreserved:

Undesignated 2,811,084 1,860,279 37,761,354Unreserved reported in:

Special revenue fundsCapital projects fundsTotal fund balances 4,883,032 1,860,279 37,761,354

Total liabilities and fund balances $ 17,861,924 $ 14,458,558 $ 45,303,010


Page 22

Non-Major TotalGovernmental Governmental

Funds Funds

$ 17,042,755 $ 76,342,831229,771 3,443,888

46,004 46,0043,260,217 16,297,5689,805,213 9,805,213

1,448,06589,592 713,475

$ 30,473,552 $ 108,097,044

$ 659,635 $ 1,192,6297,541,656

3,403,477 9,825,597668,571 7,044,668

4,465,0002,058,7005,722,260

4,731,683 37,850,510

1,448,06589,592 713,475

42,432,717

17,145,181 17,145,1818,507,096 8,507,096

25,741,869 70,246,534

$ 30,473,552 $ 108,097,044

Page 23

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET ASSETSJUNE 30, 2009

Total governmental fund balances $ 70,246,534

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

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

Governmental capital assets $ 330,423,436Less accumulated depreciation (114,696,651) 215,726,785

Some revenues will not be available to pay for current periodexpenditures and, therefore, are deferred in the governmental funds.

Property taxes 3,078,173Intergovernmental 3,809,426 6,887,599

Deferred items related to the net cost of issuance of bondsare amortized over the life of the associated bond issue in thegovernment-wide statements but not reported in the governmental funds. (260,924)

The Internal Service Funds are used by management to chargethe costs of district services, intergovernmental agreementsand employee benefits to the individual funds. The assetsand liabilities of the Internal Service Funds are included ingovernmental activities in the Statement of Net Assets. 7,298,384

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

Compensated absences payable (5,174,098)Bonds payable (120,945,000)Bond premium payable (8,991,674) (135,110,772)

Net assets of governmental activities $ 164,787,606


Page 25

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2009

General Debt Service Bond BuildingRevenues:

Other local $ 173,725 $ 342,748 $ 944,518Property taxes 40,381,704 20,425,259State aid and grants 54,147,234Federal aid, grants and reimbursements

Total revenues 94,702,663 20,768,007 944,518

Expenditures:Current -

Instruction 63,947,266Support services - students and staff 9,868,389Support services - administration 9,157,567Operation and maintenance of plant services 11,851,780Student transportation services 4,530,700Operation of non-instructional services 76,972

Capital outlay 27,394,553Debt service -

Claims and judgments 482,452Interest and fiscal charges 12,925,563Principal retirement 10,078,756Bond issuance costs 334,953Total expenditures 99,915,126 23,004,319 27,729,506

Excess (deficiency) of revenues over expenditures (5,212,463) (2,236,312) (26,784,988)

Other financing sources (uses):Transfer in 944,518Transfer out (944,518)Issuance of school improvement bonds 25,000,000Premium on sale of bonds 334,953

Total other financing sources (uses) 944,518 24,390,435

Changes in fund balances (5,212,463) (1,291,794) (2,394,553)

Fund balances, beginning of year 8,910,360 3,152,073 40,155,907

(Decrease) in reserve for inventory (262,930)Increase in reserve for prepaid items 1,448,065

Fund balances, end of year $ 4,883,032 $ 1,860,279 $ 37,761,354


Page 26

Non-Major TotalGovernmental Governmental

Funds Funds

$ 13,792,975 $ 15,253,9667,812,034 68,618,9979,225,876 63,373,1107,182,360 7,182,360

38,013,245 154,428,433

13,560,442 77,507,7083,351,319 13,219,708

861,883 10,019,450852,593 12,704,373830,206 5,360,906

9,783,366 9,860,33810,340,221 37,734,774

482,45212,925,56310,078,756

334,95339,580,030 190,228,981

(1,566,785) (35,800,548)

217,325 1,161,843(217,325) (1,161,843)

25,000,000334,953

25,334,953

(1,566,785) (10,465,595)

27,330,603 79,548,943

(21,949) (284,879)1,448,065

$ 25,741,869 $ 70,246,534

Page 27

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FlTNDS TO THE STATEMENT OF ACTIVITIESJUNE 30, 2009

Net changes in fund balances - total governmental funds $ (9,302,409)

Amounts reported for governmental activities in the Statement of Activities are

different because:

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

Expenditures for capitalized assets $ 27,995,669Less current year depreciation (9,521,000) 18,474,669

Some revenues in the Statement of Activities that do not providecurrent financial resources are not reported as revenues in the fund,s.

Property taxes 2,271,567Intergovernmental 3,335,109Microsoft settlement (48,722) 5,557,954

Repayment of long-term debt are expenditures in the governmental funds,but the repayment reduces long-term liabilities in the Statement of Net Assets.

Bond principal retirement 5,065,000Bond premium retirement 5,013,756 10,078,756

Issuance of long-term debt provides current financial resourcesto governmental funds, but the issuance increases long-term liabilities inthe Statement of Net Assets. (25,000,000)

Governmental funds report the effect of issuance costs, premium, discounts, andsinlilar items when debt is first issued, whereas these amounts are deferred andamortized in the Statement of Activities. 334,953

Some expenses reported in the Statement of Activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures ingovernmental funds.

Loss on disposal of capital assets (374,239)Judgments 482,452Amortization of deferred items (324,981)Compensated absences (252,848) (469,616)

Internal Service Funds are used by management to charge the costs of districtservices, intergovernmental agreements, and employee benefits to the individualfunds. The changes in net assets of the Internal Service Funds is reported withgovernmental activities in the Statement of Activities. 1,676,254

Change in net assets in governmental activities $ 1,350,561


Page 28

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF NET ASSETS

PROPRIETARY FUNDSJUNE 30, 2009

GovernmentalActivities:

Internal ServiceFunds


Cash and investments $ 8,854,863Deposits held by others 55,000Accounts receivable 72,325Due from governmental entities 34,327Due from other funds 35,256

Total current assets 9,051,771

Noncurrent assets:Vehicles, furniture and equipment 553,251Accumulated depreciation (355,412)

Total noncurrent assets 197,839Total assets 9,249,610


Accounts payable 26,691Claims payable 1,713,790Due to other funds 14,872Obligations under capital leases 50,255

Total current liabilities 1,805,608


Non-current portion of long-termobligations 145,618Total non-current liabilities 145,618

Total liabilities 1,951,226

NET ASSETSInvested in capital assets, net of related debt 1,966Unrestricted 7,296,418

Total net assets $ 7,298,384


Page 29

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS

PROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2009

GovernmentalActivities:

Internal ServiceFunds

Operating revenues:Contributions $ 12,417,015Charges for services 1,081,528

Total operating revenues 13,498,543

Operating expenses:Depreciation 11,456Claims 8,803,366Premiunls 1,284,276Administrative fees 870,181Cost of services 1,023,335

Total operating expenses 11,992,614

Operating income 1,505,929

Nonoperating revenues (expenses):Investment income 221,261

Total nonoperating revenues(expenses) 221,261

Income before capital contributions andtransfers 1,727,190

Transfer (50,936)

Changes in net assets 1,676,254

Total net assets, beginning of year 5,622,130

Total net assets, end of year $ 7,298,384


Page 30


STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2009

Governmental

Activities: Internal

Service Funds

Increase in Cash and Cash Equivalents

Cash flows fronl operating activities:

Cash received for services

Cash received from contributions

Cash payments for claims

Cash payments to suppliers for goods and services

$ 1,222,435

12,484,376

(8,713,664)

(3,210,686)

Net cash provided by operating activities 1,782,461

Cash flows from capital and related financing activities:

Acquisition of capital assets

Obliations under capital leases

Principal paid on long-term debt

209,295

(209,295)

(13,422)

Net cash used for capital and related financing activities (13,422)

Cash flows from noncapital financing activities:

Transfers to other funds (50,936)

Net cash used for noncapital financing activities (50,936)

Cash flows from investing activities:

Proceeds from sale of investments

Investment income

301,782

221,261

Net cash provided by investing activities 523,043

Net increase in cash and cash equivalents 2,241,146

Cash and cash equivalents, beginning of year 6,613,717

8,854,863$=========

Cash and cash equivalents, end of year

Reconciliation of Operating Inconle to Net Cash Used for Operating Activities

Operating income

Adjustments to reconcile operating loss to net cash used for operating activities:

$ 1,505,929

Depreciation expense 11,456

Changes in assets and liabilities:

Increase in accounts receivable

Decrease in due from govemnlental entities

Increase in due from other funds

Decrease in accounts payable

Decrease in due to other funds

Increase in claims payable

67,001

32,455108,812

(2,502)

(30,392)

89,702

Total adjustments 276,532

1,782,461$=======:::::::::===

Net cash provided by operating activities

Page 31The notes to the financial statements are an integral part of this statement.

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

JUNE 30, 2009

AgencyASSETSCash and investments $ 1,186,162

Total assets $ 1,186,162

LIABILITIESDeposits held for others 911,401Due to student groups 274,761

Total liabilities $ 1,186,162


Page 32

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2009

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Kyrene Elementary School District No. 28 (District) have beenprepared in conformity with aCCOll1lting principles generally accepted in the United States ofAmerica as applied to government units. The Governmelltal Accounting Stalldards Board(GASB) is the accepted standard-setting body for establishing governnlental accounting alldfinancial reporting principles.

The more significant of the District's accounting policies are described below.

A. Reporting Entity

The Governing Board is organized under Section 15-321 of tIle Arizona Revised Statutes(A.R.S.). Management of the District is illdependellt of other state or local governments. TheCounty Treasurer collects taxes for the District, but exercises no cOlltrol over itsexpenses/expenditures.

The membership ofthe Governing Board consists of five members elected by the public. Underexisting statutes, the Governing Board's duties and powers include, but are not limited to, theacquisition, maintenance and disposition of scllool property; tIle development and adoption ofaschool program; and the establishment, organization and operation of schools.

The Board also has broad financial responsibilities, including the approval ofthe annual budget,and the establishment of a system of accounting and budgetary controls.

The financial reportillg entity consists of a primary government and its component units. Acomponent unit is a legally separate entity that nlust be included in the reporting entity inconformity with generally accepted accounting principles. The District is a prinlary governmentbecause it is a special-purpose government that has a separately elected governing body, is legallyseparate, and is fiscally independent ofother state or local governments. Furthermore, there areno component units combined with the District for financial statement presentation purposes, andthe District is not included in any other governmental reporting entity. Consequently, theDistrict's financial statements include only the funds ofthose organizational entities for which itselected governing board is financially accountable. The District's major operations includeeducation, student transportation, construction and maintenance of District facilities, and foodservices.

Page 33


JUNE 30, 2009

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

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement ofactivities) present financial information about the District as a whole. The reported informationincludes all of the nonfiduciary activities of the District and its component unit. For the mostpart, tIle effect of internal activity has been removed from these statements. Tllese statements areto distillguish between the goverl1ffiental and busilless-type activities of the District.Governmental activities normally are supported by taxes and intergovernmental revenues, and arereported separately from business-type activities, which rely to a significant extent on fees andcharges for support. The District does not have any business-type activities.

The statement of activities demollstrates the degree to which the direct expenses of a givenfunction or segment are offset by program revenues. Direct expenses are those that are clearlyidentifiable with a specific function or segment. Program revenues include 1) charges tocustomers or applicants who purchase, use, or directly benefit from goods, services, or privilegesprovided by a given function or segment and 2) grants and contributions that are restricted tomeeting the operational or capital requirements of a particular function or segment. Taxes,unrestricted State and County aid, and other items not included among program revenues arereported instead as gelleral revenues.

Separate finallcial statements are provided for governmental funds, the proprietary funds and thefiduciary funds, even though the latter are excluded from the government-wide finallcialstatements. Major individual governmental funds are reported as separate columns in the fundfinancial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Government-Wide Financial Statements - The government-wide financial statements arereported 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 tIleyear for which they are levied. Grants and similar items are recognized as revenue as soon as alleligibility requirements imposed by the grantor or provider have been met. As a general rule, theeffect 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 asexpenses and program revenues at amoullt approximating their external excllange value.

Page 34


JUNE 30, 2009

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

Fund Financial Statements - Governmental fund financial statements are reported using thecurrent financial resources measurement focus and the modified accrual basis of accounting.Revenues are recognized as soon as they are both measurable and available. Revenues areconsidered to be available when they are collectible within the ClIrrent period or soon enoughthereafterto pay liabilities ofthe current period. For this purpose, the District considers revenuesto be available if they are collected withi11 60 days of the end of the current fiscal period.Expenditures generally are recorded when a liability is incurred, as under accrual accou11ting.However, debt service resources are provided during the current year for payment of long-termdebt pri11cipal and interest due early in the followi11g year (110t to exceed one month) and,therefore, the expenditures and related liabilities have been recognized. Compensated absencesare recorded only when payment is due.

Property taxes, State and County aid, and investment income associated with the current fiscalperiod are all considered to be susceptible to accrual and have been recognized as revenues ofthecurrent fiscal period. Food services and miscellaneous revenues are not susceptible to accrualbecause generally they are not measurable until received in cash. Grants and similar awards arerecognized as revenue as soon as all eligibility requirements imposed by tIle grantor or providerhave been met. Deferred revenues arise when resources are received by the District before it haslegal claim to them, as when grant monies are received prior to meeting all eligibilityrequirements imposed by the provider.

Delinquent property taxes have been recorded as deferred revenue. Receivables that will not becollected within the available period have also been reported as deferred revenue on thegovernmental fund financial statements.

When both restricted and llnrestricted resources are available for use, it is the District's policy touse restricted resources first, then llnrestricted resources as they are needed.

The focus ofgovernmental flInd financial statements is 011 major funds rather than reporting fundsby type. Each major fund is presented in a separate colllnln. Non-major funds are aggregated andpresented in a single column. The Internal Service Funds are combined and the totals arepresented in a single colllnln on the face of the proprietary fund statements. Fiduciary flInds arereported by fund type.

Page 35


JUNE 30, 2009

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

The District reports the following major governmental funds:

General Fllnd - The General Fllnd is the District's primary operating fund. It accounts for allresources used to finance District maintenance and operation except those required to beaccounted for in other funds. It is described as the Maintenance and Operatioll Fund byA.R.S.

Debt Service Fund - TIle Debt Service Fund accounts for tIle accunlulation ofresources for,and the payment of, long-term debt principal, interest and related costs.

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

Additionally, the District reports the following fund types:

Proprietary Funds - The Proprietary Funds are Internal Service Funds that account foractivities related to (1) the operation ofDistrict functions that provide goods alld services toother District departments on a cost reimbursement basis, (2) activities related to agreementswith other governments where the District is the fiscal agent, alld (3) the District's selfinsurance program.

Fiduciary Funds - The Fiduciary Funds are Agency Funds which account for resources heldby the District on behalfofothers and include the Student Activities, Sure Pay Account, andUnemployment Insurance Clearing Funds. The Student Activities Fund accounts for moniesraised by students to finance student cllLbs and organizations. The Sure Pay Accountaccounts for employee payroll deposits temporarily held by the District until distributed andthe Unemployment InSllrance Clearing Fund accounts for unremitted unemploymentinsurance payments temporarily held by the District as an agent.

The Proprietary Fund financial statements are reported using the economic resourcesnleaSllrement focus and are presented in a single column.

Proprietary funds distinguish operating revenues and expenses from nonoperating items.Operating revellues and expenses generally result from providing services and producing anddelivering goods in connection with a proprietary fund's principal ongoing operatiolls. Theprincipal operating revenues of the District's internal service funds are charges for llealtll

Page 36


JUNE 30, 2009


benefits and charges to District departments for goods and services. Operating expenses forinternal service funds include the cost of goods and services and administrative expenses. Allrevenues and expenses not meeting this definition are reported as nonoperating revenues andexpenses.

The Agency Ftlnds are custodial in nature and do not have a measurement focus. The AgencyFunds are reported by fUlld type.

D. Cash and Investmellts

For purposes ofthe Statement ofCash Flows, the District considers all highly liquid investmentswith a maturity of three months or less when purchased to be cash equivalents. Cash and cashequivalellts at year end were cash and illvestments held by the County TreaStlrer.

A.R.S. require tIle District to deposit certain cash with the County Treasurer. That cash is pooledfor investment purposes, except for cash ofthe Debt Service and Bond Building Funds that maybe invested separately. Interest earned fronl investments purchased with pooled monies isallocated to each of the District's funds based on their average balances. As required by statute,interest earnings ofthe Bond Building Fund are recorded initially in that nlnd, but then transferredto the Debt Service Fund. All investments are stated at fair value.

E. Investment Income

Investnlent income is conlposed of interest, dividends, and net changes in the fair value ofapplicable investments. Investment inconle is illcluded in other local revenue in the governmentalfund financial statements and ill nonoperating revenues in the proprietary fund financialstatenlellts.

F. Receivables and Payables

Activity between funds that is representative of lending/borrowing arrangements outstanding atthe end ofthe fiscal year is referred to as either "due to/from other funds" (i.e., the current portionof interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfundloans). All other outstanding balances between funds are reported as "due to/from other funds."

All receivables, including property taxes receivable, are shown net of an allowance fortlncollectibles.

Page 37


JUNE 30, 2009


Property tax levies are obtained by applying tax rates against either the primary assessed valuationor the secondary assessed valuation. Primary and secondary valuation categories are composed ofthe exact same properties. However, the primary category limits the increase in property values to10% from the previous year, while there is no limit to the increase in property values for thesecondary valuation. Override and debt service tax rates are applied to the secondary assessedvaluation and all other tax rates are applied to the primary assessed valuation.

The County levies real property taxes on or before the third Monday in August, which becomedue and payable in two equal installments. The first installment is due on the first day ofOctoberand becomes delinquent after the first business day ofNovember. The second installment is dueon the first day of March of the next year and becomes delinquent after the first business day ofMay. The billings are considered past due after these dates, at which time the applicable propertyis subject to penalties and interest.

The County also levies various personal property taxes during the year, which are due the secondMonday of the month following receipt of the tax notice, and become delinquent 30 daysthereafter.

Pursuant to A.R.S., a lien against assessed real and personal property attaches on tIle first day ofJanuary preceding assessnlel1t and levy; however according to case law, an enforceable legalclaim to the asset does not arise.

G. Inventory

Inventories are valued at cost using the average cost and first-inlfirst-out (FIFO) methods.Inventories consist of expendable supplies held for consumption. Inventories are recorded asexpenses when consumed on the government-wide financial statenlents and as expenditures whenpurchased on the flInd financial statements.

The United States Department of Agriculture (USDA) commodity portion of the food servicesinvel1tory consists of food donated by the USDA. It is valued at estimated market prices paid bythe USDA.

Page 38


JUNE 30, 2009


H. Prepaid Items

Certain payments to vendors reflect costs applicable to future accoul1ting periods and are recordedas prepaid items in botll the government-wide and fund financial statements. Prepaid items arerecorded as expenses when consumed in the government-wide financial statements. Prepaiditems are recorded as expenditures when purchased in the fund financial statements and are offsetby a reserve of fund balance.

I. Capital Assets

Capital assets, which include land and improvements; buildings and improvements; vehicles,furniture, al1d equipnlel1t; and construction in progress, are reported in the government-widefinancial 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 historicalcost, or estimated historical cost ifpurchased or constructed. Donated capital assets are recordedat the estimated fair market value at the date of donation.

The costs ofnormal maintenance and repairs that do not add to the value ofthe asset or materiallyextend the life of the asset are not capitalized.

Capital assets are depreciated using the straight line nlethod over the following estimated usefullives.

Lal1d improvementsBuildings and improvementsVehicles, furl1iture and equipment

J. Compensated Absences

10 - 50 years5 - 50 years5 -25 years

The District's employee vacation and sick leave policies generally provide for granting vacationand sick leave with pay. Accrued sick leave is earned by all enlployees working at least 9 monthsa year, at a rate of 12 days a year, not to exceed 200 days maximum, depending 011 length ofservice. All twelve-month classified employees earn vacation, at a rate of 10 days a year, withincreases depending on length ofservice. The current and long-term liabilities, including related

Page 39


JUNE 30, 2009

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl'd)

benefits, for accllmulated vacation and sick leave are reported on the government-wide financialstatements. A liability for tllese amounts is reported in governmental funds only if they havematured, for example, as a result of enlployee leave, resigllations and retirements. Generally,resources from the General Fund are used to pay for compensated absences.

K. Long-term Obligations

In the government-wide financial statements, and proprietary fund type in the fund financialstatements, long-term debt and other long-ternl obligations are reported as liabilities on thestatement of net assets. Bond premiums and discounts, and issuance costs as well as tIledifference between the reacquisition price and the net carrying amount ofthe old debt are deferredand amortized over the life of the bonds using the straight line method.

In the fund financial statements, governmental fund types recogllize bond premiums anddiscounts, as well as bond issuance costs, during the current period. The face amount of debtissued is reported as other financing sources. Premiums received on debt issuances are reportedas other financing sources while discollnts on debt issuances are reported as other financing uses.Issuance costs, whether or not withheld from the actual debt proceeds received, are reported asdebt service expenditures.

L. Fund Equity

In the fund financial statements, governmental funds report reservations of fund balance foramounts that are not available for expenditllres or are legally restricted by outside parties for usefor a specific purpose. Desigllations of fund balance represent tentative management plans thatare subject to change.

M. Interfund Activity

Flows of casll fronl one fund to another without a requirement for repayment are reported asinterfund transfers. Interfund transfers between governmental funds are eliminated in theStatement ofActivities. Interfund transfers in the flmd financial statements are reported as otherfinancing sOllrces/uses in governmental funds and after non-operating revenues/expenses inproprietary funds.

N. Estimates

The preparatioll of the financial statemellts in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the amounts reported in the financial statements and accompanying notes.Actual results may differ from those estimates.

Page 40


JUNE 30, 2009

NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balance - At year end, the Classroom Site Fund, a non-majorgovernmental fund, reported a deficit of $1 ,200,558 in fund balance.

The deficit arose because of a shortfall in the prior fiscal year per pupil allocation due to adecrease in the state's collection of sales tax. Budgeted expenditures have been reduced in fiscalyear 2009-10 to eliminate the deficit.

NOTE 3 - CASH AND INVESTMENTS

A.R.S. authorize the District to invest public monies in the State Treasurer's local governmentinvestment pools, the County Treasurer's investment pool, obligations of the U.S. Governmentand its agencies, obligations of the State and certain local government subdivisions, interestbearing savings accounts and certificates ofdeposit, collateralized repurchase agreements, certainobligations of U.S. corporations, and certain other securities. The statutes do not include anyrequirements for credit risk, custodial credit risk, concentration ofcredit risk, interest rate risk, orforeign currency risk for the District's investments.

Custodial Credit Risk- Deposits. Custodial credit risk is the risk that in the event ofbank failurethe District's deposits may not be returned to the District. The District does not have a depositpolicy for custodial credit risk. At year end, the carrying amount of the District's deposits was$50,356 and the bank balance was $129,376. At year end, the District's deposits were entirelycovered by Federal depository insurance.

The State Treasurer's pools are external investment pools, the Local Government InvestmentPool (Pool 5) al1d Local Government Investment Pool-Government (Pool 7), with no regulatoryoversight. The pools are not required to register (and are not registered) with the Securities andExchange Commission. The fair value of each participant's position in the State Treasurerinvestment pools approximates the value of the participant's shares in the pool and theparticipants' shares are not identified with specific investments. No regulatory oversight isprovided for the County Treasurer's investment pool and that pool's structure does not providefor shares.

Page 41


JUNE 30, 2009

NOTE 3 - CASH AND INVESTMENTS (Concl'd)

At year end, the District's investments consisted of tIle following.

County Treasurer's investment poolTotal

Average Maturities547 days

Fair Value$86,333,500$86,333,500

Interest Rate Risk. The District does not have a formal investment policy that limits investmentmaturities as a means ofmanaging its exposure to fair value losses arising from increasing interestrates.

Credit Risk. The District has no investment policy that would further limit its investnlent clloices.As of year end, the District's investment in the County Treasurer's investment pool did notreceive a credit quality rating from a national rating agency.

Custodial Credit Risk - Investments. The District's investment in the County Treasurer'sinvestment pool represents a proportionate interest ill tIle pool's portfolio; however, the District'sportion is not identified with specific investments and is not subject to custodial credit risk.

Page 42


JUNE 30, 2009

NOTE 4 - RECEIVABLES

Receivable balances, net of allowance for uncollectibles, have been disaggregated by type andpresented separately in the financial statements with the exception of due from governmentalentities. Due from governmental entities, net ofallowance for uncollectibles, as ofyear end forthe District's individual major funds and non-major governmental funds in the aggregate, were asfollows.

Due from other governmental entities:Due from Federal governmentDue from State governmentDue from other districts

Net due from governmental entities

GeneralFllnd

$13,037,351

$13,037,351

Non-MajorGovernmental

and OtherFllnds

$ 1,816,9691,443,248

34,327$ 3,294,544

Governmental funds report deferred revenue in connection with receivables for revenues that arenot considered to be available to liquidate liabilities of the current period. Governmental fundsalso defer revenue recognition in connection with resources that have been received, but not yetearned. At the end ofthe current fiscal year, the various components ofdeferred revenue reportedin the governmental funds were as follows.

Delinquent property taxes receivable (General Fund)Delinquent property taxes receivable (Debt Service Fund)Delinquent property taxes receivable

(Non-Major Governmental Funds)Grant drawdowns prior to meeting all eligibility

requirements (Non-Major Govennnental Funds)Measurable but unavailable revenues

(General Fund)Measurable but unavailable revenues

(Non-Major Governmental Funds)Total deferred revenue for governmental funds

Unavailable Unearned$ 2,537,908 $

352,319

187,946

157,069

3,485,870

323,556$ 6,887,599 $ 157,069

Page 43


JUNE 30, 2009

NOTE 5 - CAPITAL ASSETS

A sunlmary of capital asset activity for the current fiscal year follows.

Beginning EndingGovernmental Activities Balance Increase Decrease BalanceCapital assets, not being depreciated:

Land $ 26,061,982 $ $ $ 26,061,982Construction in process 3,300,724 22,402,662 2,159,988 23,543,398

Total capital assets, not being depreciated 29,362,706 22,402,662 2,159,988 49,605,380Capital assets, being depreciated:

Land improvements 27,927,576 241,901 28,169,477Buildings and improvements 227,327,706 6,468,681 233,796,387Vehicles, furniture and equipment 19,765,223 1,251,708 1,611,488 19,405,443

Total capital assets being depreciated 275,020,505 7,962,290 1,611,488 281,371,307Less accumulated depreciation for:

Land improvements (18,914,369) (1,154,777) (20,069,146)Buildings and improvements (78,676,373) (6,982,465) (85,658,838)Vehicles, furniture and equipment (9,166,114) (1,395,214) (1,237,249) (9,324,079)

Total accumulated depreciation (106,756,856) (9,532,456) (1,237,249) (115,052,063)

Total capital assets, being depreciated, net 168,263,649 (1,570,166) 374,239 166,319,244Governmental activities capital assets, net $ 197,626,355 $20,832,496 $ 2,534,227 $ 215,924,624

Depreciation expel1se was charged to governmel1tal fllnctions as follows.

InstructionSupport services - students al1d staffSupport services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services

Total depreciation expense - governmental activities

$7,377,38346,593

955,986244,572857,841

50,081$9,532,456

Construction Commitments - At year el1d, the District 11ad contractual commitnlents related tovarious capital projects for the construction of various building and improvenlent projects. Atyear end the District had spent $23.5 million on the projects and 11ad estinlated remainingcontractual commitmel1ts of$10.9 million. These projects are being funded primarily with bondproceeds.

Page 44


JUNE 30, 2009

NOTE 6 - OBLIGATIONS UNDER CAPITAL LEASES

The District has acquired copiers under the provisiol1S ofa long-term lease agreement classifiedas a capital lease. The lease agreement qualifies as a capital lease for accounting purposes and,therefore, has been recorded at the present value of its futllre minimllm lease payments as oftheinception date. Revenues from the District Services Fund, a proprietary fund, are used to pay thecapital lease obligation.

The assets acquired through capital leases that meet the District's capitalization threshold are asfollows.


Asset:Vehicles, furniture and equipmentLess: Accumulated depreciation

Total

$

$

209,29511,456

197,839

The future minimum lease obligations and the net present value of these minimum leasepayments at year end were as follows.

Year Ending June 30:2010201120122013

Total mininlum lease payments

Less: amount representing interest


$ 53,68853,68856,09153,688

217,155

21,282

Page 45

Present value of minimum lease payments

Due within one year

$

$

195,873

50,255


JUNE 30, 2009

NOTE 7 - GENERAL OBLIGATION BONDS PAYABLE

Bonds payable at year end, consisted of the following outstandil1g general obligation bonds,supplemental interest certificates and unamortized bond premium. Ofthe total amount originallyallthorized, $22.4 million remains unissued. The bonds are both callable and noncallable withinterest payable semiannually. Property taxes from the Debt Service Fund are used to pay bondeddebt.

OutstandingOriginal Principal/Amount Premium Due Within

Description Issued Interest Rates Maturity June 30, 2009 One YearGovernmental Activities:Refunding Bonds, Series 1993C $ 14,115,000 5.70% 7/1/09-11 $ 2,345,000 $ 1,010,000Unamortized premium on Refunding

Bonds, Series 1993C 47,468,302 0.00% 7/1/09-11 11,050,374 4,727,9801993 School Improvement Bonds,

Series C 15,970,000 4.50%-4.60% 7/1/09-11 6,345,000 2,025,000Refunding Bonds, Series 2001 28,420,000 4.375%-5.00% 7/1/09-14 25,610,000 2,000,000Refunding Bonds and Supplemental

Interest Certificates, Series 2002 2,110,000 4.00% 7/1/12 2,110,0002005 School Improvement Bonds,

Series A (Class B) 16,000,000 3.875%-5.00% 7/1/12-25 16,000,0002005 School Improvement Bonds,

Series B (Class B) 18,000,000 4.00%-5.125% 7/1/13-26 18,000,0002005 School Inlprovement Bonds,

Series C (Class B) 30,000,000 3.75%-5.00% 7/1/13-27 30,000,0002005 School Improvement Bonds,

Series D (Class B) 25,000,000 4.375%-6.20% 7/1/15-26 25,000,000Total $ 136,460,374 $ 9,762,980

Annual debt service requirements to matllrity on general obligation bonds at year end aresummarized as follows.

Governmental Activities

Page 46

Year el1ding June 30:

Total

201020112012201320142015-192020-242025-28

Pril1cipal Premium Interest$ 5,035,000 $ 4,727,980 $ 13,393,658

5,465,000 4,479,380 14,133,9915,105,000 1,843,014 9,111,6779,825,000 5,010,6238,415,000 4,587,807

29,880,000 18,315,15033,625,000 11,369,94028,060,000 2,766,247

$125,410,000 $ 11,050,374 $ 78,689,093


JUNE 30, 2009

NOTE 8 - CHANGES IN LONG-TERM LIABILITIES

Long-term liability activity for the current fiscal year was as follows.

Beginning Ending Due WithinBalance Additions Reductions Balance One Year

Governmental activities:Bonds payable $ 105,600,000 $ 25,000,000 $ 5,190,000 $125,410,000 $ 5,035,000Bond premium payable 16,217,390 5,167,016 11,050,374 4,727,980Obligations under capital leases 209,295 13,422 195,873 50,255Judgments payable 482,452 482,452Compensated absences payable 4,921,250 2,160,155 1,907,307 5,174,098 350,000Governmental activity long-term

liabilities $ 127,221,092 $ 27,369,450 $12,760,197 $141,830,345 $ 10,163,235

NOTE 9 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

At year end, interfund balances were as follows.

Due to/from other funds:

Due from

Due toGeneral FundNon-Major and Other Governnlental FundsTotal


and OtherFunds

$ 6,422,1203,418,349

$ 9,840,469

At year end, the General Fund owed the District Services and Intergovernmental AgreementsFunds, both proprietary fllnds, for services rendered. In addition at year end, several funds hadnegative cash balances in the Treasurer's pooled cash accounts. Negative cash on deposit withthe County Treasurer was reduced by interulnd borrowing witll other funds. Further, severalFederal grant fllnds, all non-major governmental funds, owed monies to the Indirect Costs Fund,a non-major governmental fl111d.

Page 47


JUNE 30, 2009

NOTE 9 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Concl'd)

Interfund transfers:

Transfers in

Transfers out

DebtServiceFund


Funds Total$ 944,518

217,325$1,161,843217,325

217,325$$ 944,518

$ 944,518." $===========

Bond Building FundNon-Major Governmental FundsTotal

Transfers between funds are used to (1) move investmel1t income earned in the Bond Building Fundthat is required by statute to be expended in the Debt Service Fund, (2) to move premium on issuanceof general obligation bonds earned in the Bond Building Fund to the Debt Service Fund, and (3) tomove Federal grant funds restricted for indirect costs to the Indirect Costs Fund, a non-majorgovernmental fund.

NOTE 10 - CONTINGENT LIABILITIES

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

Lawsuits - The District is a defendant in various lawsllits. Although the outcome ofthese lawsuits isnot presently determinable, in the opinion ofthe District's counsel, the resolution ofthese matters willnot have a material adverse effect on the financial condition of the District.

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

Page 48


JUNE 30, 2009

NOTE 11- RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; 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 beeconomically 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 andinsurance program for school districts and community colleges in the State. The District pays anannual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRTwill be self-sustaining through member premiums and will reinsure through commercial companies forclaims in excess of specified amounts.

The District joined the Arizona School Alliance for Workers' Compensation, Inc. (Alliance) togetherwith other school districts in the state for risks of loss related to workers' con1pensation claims. TheAlliance is a public entity risk pool currently operating as a common risk management and insuranceprogram for school districts in the State. The District pays quarterly premiums to the Alliance for itsemployee workers' compensation coverage. The agreement provides that the Alliance will be selfsustaining through members' premiums and will reinsure through commercial companies for claims inexcess of specified amounts for each insured event.

The District established the Employee Benefit Trust Fund, an Internal Service Fund, to account for andfinance the uninsured risks of loss related to employee health. Under this program, the Fund providescoverage for up to a maximum of$175,000 for each claim, not to exceed an annual aggregate of$l 0.6million. The Fund purchases commercial insurance for claims in excess of this coverage. Settledclaims have not exceeded this coverage in any of the past three fiscal years.

Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of theloss can be reasonably estimated. Liabilities include an amount for claims that have been incurred butnot reported (IBNRs). The result ofthe process to estimate the claims liability is not an exact amountas it depends on many complex factors, such as inflation, changes in legal doctrines, and damageawards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recentclaim settlement trends (including frequency and amount ofpay-outs), and other economic and socialfactors. The estimate of the claims liability also includes amounts for incremental claim adjustmentexpenses related to specific clain1s and other clain1 adjustment expenses regardless of whetherallocated to specific claims. Estimated recoveries, for example from salvage or subrogation, areanother component ofthe claims liability estimate. Changes in the balances ofclain1s liabilities duringthe past two years are as follows.

Page 49

Unpaid claims, beginning of fiscal yearIncurred claims (including IBNRs)Claim payn1entsUnpaid claims, end of fiscal year

Year endedJune 30, 2009$ 1,624,088

8,803,366(8,713,664)

$ 1,713,790

Year endedJune 30, 2008$ 1,434,765

8,757,151(8,567,828)

$ 1,624,088


JUNE 30, 2009

NOTE 12 - RETIREMENT PLAN

Plan Description - The District contributes to a cost-sllaring, multiple-employer defined benefitpension plan; a cost-sharing multiple employer defined benefit health care plan; and a costsharing, multiple-employer defined benefit long-term disability plan, all of which areadministered by the Arizona State Retirement System (ASRS). The ASRS (through itsRetirement Fund) provides retirement (i.e., pension), death, and survivor benefits; the HealthBenefit Supplement Fund provides health inslrrance premium benefits (i.e., a monthly subsidy);and the Long-Term Disability Fund provides long-term disability benefits. Benefits areestablished by state statllte. The System is governed by the Arizona State Retirement SystemBoard according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.

The System issues a comprehensive annual financial report that includes financial statements andrequired supplementary information. The most recent report may be obtained by writing theSystem, 3300 North Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or bycalling (602) 240-2000 or (800) 621-3778.

Funding Policy - The Arizona State Legislatllre establishes and may amend active planmembers' and the District's contribution rates. For the year ended June 30, 2009, active ASRSmembers were required by statute to contribute at the actuarially determined rate of9.45 percent(8.95 percent for retirement and 0.5 percent for long-term disability) of the members' annualcovered payroll and the District was required by statute to contribute at the actuariallydetermined rate of9.45 percent (7.99 percent for retirement, 0.96 percent for health insurancepremium, and 0.5 percent for long-term disability) of the members' annual covered payroll.

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

RetirementFund

Health BenefitSupplement

Fund

Long-TermDisability

Fund

Page 50

Year ending June 30:200920082007

$ 6,469,344 $6,413,0475,814,631

777,293836,484808,657

$ 404,840398,326385,075

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCES - BUDGET AND ACTUAL

(Required Supplementary Information)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BlTDGET AND ACTUAL - GENERAL FUNDYEAR ENDED JUNE 30, 2009

Budgeted Amounts Variance withFinal Budget

Original Final Non-GAAP Actual Positive (Negative)

Revenues:

Other local $ $ $ 173,725 $ 173,725

Property taxes 40,381,704 40,381,704

State aid and grants 54,147,234 54,147,234

Total revenues 94,702,663 94,702,663

Expenditures:

Regular education

Instruction 54,312,777 52,783,570 51,439,886 1,343,684

Support services - students and staff 6,742,776 6,435,843 5,970,485 465,358

Support services - administration 9,457,836 9,641,691 9,199,441 442,250

Operation and maintenance of plant services 13,201,636 13,161,871 12,660,580 501,291

Operation of non-instructional services 163,726 213,366 76,972 136,394

Total regular education 83,878,751 82,236,341 79,347,364 2,888,977

Special education

Instruction 9,518,666 8,936,294 8,675,186 261,108

Support services - students and staff 4,364,639 4,080,798 3,904,086 176,712

Support services - administration 3,018 3,018

Operation and maintenance of plant services 440 385 55

Total special education 13,883,305 13,020,550 12,582,675 437,875

Pupil transportation

Student transportation services 4,401,410 4,694,864 4,579,111 115,753

Total pupil transportation 4,401,410 4,694,864 4,579,111 115,753

Special K-3 program override

Instruction 4,223,827 4,195,535 4,213,431 (17,896)

Support services - students and staff 41,139 69,432 51,536 17,896

Total special K-3 program override 4,264,966 4,264,967 4,264,967

Debt service

Claims and judgments 482,452 482,452

Total debt service 482,452 482,452

Total expenditures 106,428,432 104,699,174 101,256,569 3,442,605

Change in fund balances (106,428,432) (104,699,174) (6,553,906) 98,145,268

Fund balances, July 1, 2008 6,989,274 6,989,274

(Decrease) in reserve for inventory (262,930) (262,930)

Increase in reserve for prepaid items 4,710,594 4,710,594

Fund balances (deficits), June 30, 2009 $ (106,428,432) $ (104,699,174) $ 4,883,032 $ 109,582,206

See accompanying notes to this schedule.

Page 52

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2009

NOTE 1 - BUDGETARY BASIS OF ACCOUNTING

The adopted budget of the District is prepared on a basis consistent with accounting principlesgenerally accepted in the United States ofAmerica with the following exceptions: 1) a portion offiscal year 2009-10 insurance payments were charged against the fiscal year 2008-09 budget and2) a portion of the fiscal year 2008-09 insurance payments were budgeted for in fiscal year2007-08. Consequelltly, the following adjustnlellts were necessary to presellt actualexpenditures, increase in reserve for prepaid itenls, and fund balance at July 1, 2008 011 abudgetary basis ill order to provide a meaningful comparison.

3,262,529

4,710,594 $ 6,989,274

1,448,065 $ 8,910,360

(1,921,086)

Fund Balance,July 1,2008

Increase inReserve for

Prepaid ItemsTotal

ExpendituresStatement of Revenues, Expenditllres and

Changes in Fund Balances -Governmental Funds $ 99,915,126 $

Fiscal year 2009-10 il1surance paymentscllarged against fiscal year 2008-09budget 3,262,529

Fiscal year 2008-09 insurance paymentsbudgeted in 2007-08 (1,921,086)

Schedule of Revenues, Expenditures andChanges in Fund Balances - Budget andActual- General Fllnd $ 101,256,569 $

Page 53

COMBINING AND INDIVIDUAL FUNDFINANCIAL STATEMENTS AND SCHEDULES

OTHER MAJOR GOVERNMENTAL FUNDSSCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES-BUDGET AND ACTUAL


CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - DEBT SERVICEYEAR ENDED JUNE 30, 2009

$ 342,748 $

20,425,259

Revenues:Other localProperty taxesTotal revenues

Expenditures:Debt service -

Interest and fiscal chargesPrincipal retirement

Total expenditures

BudgetedAmounts

Original & Final

$

12,957,24410,078,75623,036,000

Actual

20,768,007

12,925,56310,078,75623,004,319

Variance withFinal Budget

Positive(Negative)

342,74820,425,25920,768,007

31,681

31,681

Excess (deficiency) of revenues overexpenditures (23,036,000) _------"--(2....::....-,2_36----'--,3_12---"'-) __20----'--,7_99~,6_8_8

Other financing sources (uses):Transfer in

Total other financing sources (uses)944,518944,518

944,518944,518

Change in fund balances (23,036,000) _------"--(1-"--,2_91---"-,7_94----.<,..) __21----<---,7_44----:::....,2_0_6


Fund balances (deficits), June 30, 2009

Page 58

$ (23,036,000) $ 1,860,279 $ 24,896,279


CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - BOND BUILDINGYEAR ENDED JUNE 30, 2009

Variance withBudgeted Amounts Final Budget

PositiveOriginal Final Actual (Negative)

Revenues:Other local $ $ $ 944,518 $ 944,518

Total revenues 944,518 944,518

Expenditures:Capital outlay 36,349,522 40,420,962 27,394,553 13,026,409Debt service -

Bond issuance costs 334,953 (334,953)Total expenditures 36,349,522 40,420,962 27,729,506 12,691,456

Excess (deficiency) of revenues overexpenditures (36,349,522) (40,420,962) (26,784,988) 13,635,974

Other financing sources (uses):Transfer out (944,518) (944,518)Issuance of school improvement bonds 25,000,000 25,000,000Premium on sale of bonds 334,953 334,953

Total other financing sources (uses) 24,390,435 24,390,435

Change in fund balances (36,349,522) (40,420,962) (2,394,553) 38,026,409

Fund balances, July 1,2008 40,155,907 40,155,907

Fund balances (deficits), June 30, 2009 $ (36,349,522) $ (40,420,962) $ 37,761,354 $ 78,182,316

Page 59

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NON-MAJOR GOVERNMENTAL FUNDS

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE

JUNE 30, 2009

TotalNon-Major

GovernmentalSpecial Revenue Capital Projects Funds

ASSETSCash and investments $ 14,891,718 $ 2,151,037 $ 17,042,755Property taxes receivable 229,771 229,771Accounts receivable 46,004 46,004Due from governmental entities 2,770,637 489,580 3,260,217Due from other funds 3,403,477 6,401,736 9,805,213Inventory, at cost 89,592 89,592

Total assets $ 21,201,428 $ 9,272,124 $ 30,473,552


Accounts payable $ 169,628 $ 490,007 $ 659,635Due to other funds 3,403,477 3,403,477Deferred revenues 393,550 275,021 668,571

Total liabilities 3,966,655 765,028 4,731,683

Fund balances:Reserved for inventory 89,592 89,592Unreserved:

Undesignated 17,145,181 8,507,096 25,652,277Total fund balances 17,234,773 8,507,096 25,741,869

Total liabilities and fund balances $ 21,201,428 $ 9,272,124 $ 30,473,552

Page 62

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2009

TotalNon-Major

GovernnlentalSpecial Revenue Capital Projects Funds

Revenues:Other local $ 13,532,515 $ 260,460 $ 13,792,975Property taxes 7,812,034 7,812,034State aid and grants 7,958,003 1,267,873 9,225,876Federal aid, grants and reimbursements 7,182,360 7,182,360

Total revenues 28,672,878 9,340,367 38,013,245


Instruction 13,560,442 13,560,442Support services - students and staff 3,351,319 3,351,319Support services - administration 861,883 861,883Operation and maintenance of plant services 852,593 852,593Student transportation services 830,206 830,206Operation of non-instructional services 9,783,366 9,783,366

Capital outlay 362,031 9,978,190 10,340,221Total expenditures 29,601,840 9,978,190 39,580,030

Excess (deficiency) of revenues over expenditures (928,962) (637,823) (1,566,785)

Other financing sources (uses):Transfer in 217,325 217,325Transfer out (217,325) (217,325)

Total other financing sources (uses)

Change in fund balances (928,962) (637,823) (1,566,785)

Fund balances, beginning of year 18,185,684 9,144,919 27,330,603


Fund balances, end of year $ 17,234,773 $ 8,507,096 $ 25,741,869

Page 63

NON-MAJOR SPECIAL REVENUE FUNDS

The following non-major Special Revenue Funds are maintained by the District. Arizona RevisedStatutes (A.R.S.) and tIle Uniform System ofFinancial Records (USFR) require the establishnlent ofthese funds for the specified financial activities.

Classroom Site - to account for the financial activity for the portion ofstate sales tax collections andpermanent state school fund earnings as approved by the voters in 2000.

Instructional Improvement - to account for the activity ofnlonies received from gamillg revellue.

County, City, and Town Grants - to account for monies received from county, city and towngrants.

Structured English Immersion - to account for monies received to provide for the incremental costof instruction to English language learners.

Title I Grants - to account for financial assistance received for the purpose of improving theteaching and learning of children failing, or most at-risk of failing, to meet challenging Stateacademic standards.

Professional Development and Technology Grants - to account for financial assistance received toincrease student academic achievement through improving teacher quality.

Title IV Grants - to account for financial assistance received for chemical abuse awarenessprograms and expanding projects that benefit educational and health needs of the communities.

Promote Informed Parent Choice - to account for financial assistance received to promote parentchoices in the education of their students.

Limited English and Inlmigrant Students - to account for financial assistance received foreducational services and costs for limited English and immigrant children.

Indian Education - to account for financial assistance received for Indian education at preschool,elementary, secolldary and adult levels.

Special Education Grants - to account for supplemental financial assistance received to provide afree, appropriate public education to disabled children.

Medicaid Reimbursement - to account for reimbursements related to specific health servicesprovided to eligible students.

Other Federal Projects - to account for financial assistance received for other supplemental federalprojects.

Early Childhood Block Grant - to account for financial assistance received for preschooleducation.

Page 64

Extended School Year - Pupils with Disabilities - to account for financial assistance from theState for year-round services for the special education program.

Chemical Abuse Prevention Programs - to account for financial assistance received for chemicalabuse awareness programs.

Academic Contests - to account for financial assistance received for participation in academiccontests.

Gifted - to account for financial assistance received for programs for gifted students.

Environmental Special Plate - to account for the proceeds received from the sale ofenvironmentallicense plates.

Other State Projects - to account for financial assistance received for otller State projects.

School Plant - to account for proceeds from the sale or lease of school property.

Food Service - to account for the financial activity ofschool activities that have as their purpose thepreparation and serving of regular and incidental meals and snacks in· connection with schoolfunctions.

Civic Center - to account for monies received from the rental ofschool facilities for civic activities.

Community School - to aCCOllnt for activity related to academic and skill development for allcitizens.

Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneousDistrict related operations.

Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected insupport of extracurricular activities to be taken as a tax credit by the tax payer in accordance withA.R.S. §43-1089.01.

Gifts and Donations - to account for activity related to gifts, donations, bequests and private grantsmade 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 damagedtextbooks.

Page 65

NON-MAJOR SPECIAL REVENUE FUNDS(Concluded)

Litigation Recovery - to account for monies received for and derived from litigation.

Indirect Costs - to aCCOllnt for monies transferred from Federal projects for administrative costs.

Unemployment Insurance - to aCCOllnt for unemployment insurance contributiol1S using thereimbursement method of accounting to the Department of Economic Security.

Grants and Gifts to Teachers - to account for grants and gifts under $1,500 received from privatesources that are designated for use by a teacher for instructional purposes.

Page 66

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KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS

JUNE 30, 2009

StructuredInstructional County, City, English

Classroom Site Improvement and Town Grants ImmersionASSETSCash and investments $ $ 1,549,418 $ $ 132,195Accounts receivable 5,500Due from governmental entities 772,917 180,751Due from other fundsInventory, at cost

Total assets $ 772,917 $ 1,730,169 $ 5,500 $ 132,195


Accounts payable $ $ $ $Due to other funds 1,973,475 4,867Deferred revenues 132,195

Total liabilities 1,973,475 4,867 132,195

Fund balances (deficits):Reserved for inventoryUnreserved:

Undesignated (1,200,558) 1,730,169 633Total fund balances (1,200,558) 1,730,169 633

Total liabilities and fund balances $ 772,917 $ 1,730,169 $ 5,500 $ 132,195

Page 68

ProfessionalDevelopment Limited English

and Technology and Immigrant SpecialTitle I Grants Grants Title IV Grants Students Indian Education Education Grants

$ $ $ $ $ $

458,856 134,900 23,530 8,246 21,794 557,907

$ 458,856 $ 134,900 $ 23,530 $ 8,246 $ 21,794 $ 557,907

$ 4,884 $453,972

16,607 $118,293

$23,530

5,380 $2,866 21,794

$ 14,438543,469

458,856 134,900 23,530 8,246 21,794 557,907

557,90721,794 $==================

8,246 $23,530 $134,900 $458,856 $$

(Continued)

Page 69


JUNE 30, 2009(Continued)

Extended SchoolMedicaid Other Federal Early Childhood Year - Pupils

Reimbursement Projects Block Grant with DisabilitiesASSETSCash and investments $ 3,899,018 $ $ 4,129 $ 43Accounts receivableDue fronl governmental entities 8,530 461,501Due from other fundsInventory, at cost

Total assets $ 3,907,548 $ 461,501 $ 4,129 $ 43


Accounts payable $ $ $ $Due to other funds 225,020Deferred revenues 236,481 4,129 43

Total liabilities 461,501 4,129 43

Fund balances (deficits):Reserved for inventoryUnreserved:

Undesignated 3,907,548Total fund balances 3,907,548

Total liabilities and fund balances $ 3,907,548 $ 461,501 $ 4,129 $ 43

Page 70

Chemical AbusePreventionPrograms

AcademicContests G-ifted

EnvironmentalSpecial Plate

Other StateProjects School Plant

$ 1,290 $ 1,441 $ 2,741 $ 2,449 $ 49,154 $ 567,911

567,91149,154 $===============::=====

2,449 $2,741 $1,441 $1,290 $$

$ $ $ $ $ 36,373 $

1,290 1,441 2,741 2,449 12,7811,290 1,441 2,741 2,449 49,154

567,911567,911

567,91149,154 $==================~

2,449 $2,741 $1,441 $1,290 $$

(Continued)

Page 71


JUNE 30, 2009(Continued)

Community AuxiliaryFood Service Civic Center School Operations

ASSETSCash and investments $ 1,491,000 $ 951,799 $ 3,532,879 $ 347,148Accounts receivable 3,205 33,846 3,453Due from governmental entities 141,705Due from other funds 40,179 3,150,742Inventory, at cost 89,592

Total assets $ 1,722,297 $ 995,183 $ 6,717,467 $ 350,601


Accounts payable $ 21,299 $ 8,512 $ 23,018 $Due to other funds 35,823Deferred revenues

Total liabilities 21,299 8,512 58,841

Fund balances (deficits):Reserved for inventory 89,592Unreserved:

Undesignated 1,611,406 986,671 6,658,626 350,601Total fund balances 1,700,998 986,671 6,658,626 350,601

Total liabilities and fund balances $ 1,722,297 $ 995,183 $ 6,717,467 $ 350,601

Page 72

ExtracurricularActivities Fees Gifts and Insurance Litigation

Tax Credit Donations Fingerprint Proceeds Textbooks Recovery

$ 928,363 $ 430,628 $ 2,006 $ 264,365 $ 78,445 $ 54,235

54,23578,445 $====================

264,365 $2,006 $430,628 $928,363 $$

$ 3,398 $368

$ $ 14,063 $ $

3,766 14,063

924,597 430,628 2,006 250,302 78,445 54,235924,597 430,628 2,006 250,302 78,445 54,235

54,23578,445 $====================

264,365 $2,006 $430,628 $928,363 $$

(Continued)

Page 73


JUNE 30, 2009(Concluded)

Unemployment Grants and GiftsIndirect Costs Insurance to Teachers Totals

ASSETSCash and investments $ 512,254 $ 86,737 $ 2,070 $ 14,891,718Accounts receivable 46,004Due from governmental entities 2,770,637Due from other funds 212,556 3,403,477Inventory, at cost 89,592

Total assets $ 724,810 $ 86,737 $ 2,070 $ 21,201,428


Accounts payable $ $ 21,656 $ $ 169,628Due to other funds 3,403,477Deferred revenues 393,550

Total liabilities 21,656 3,966,655

Fund balances (deficits):Reserved for inventory 89,592Unreserved:

Undesignated 724,810 65,081 2,070 17,145,181Total fund balances 724,810 65,081 2,070 17,234,773

Total liabilities and fund balances $ 724,810 $ 86,737 $ 2,070 $ 21,201,428

Page 74


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2009

ProfessionalStructured Development Promote Limited English

English and Technology Informed Parent and ImmigrantImmersion Title I Grants Grants Title IV Grants Choice Students

$ $ $ $ $ $1,516,176

1,019,477 331,740 71,369 978 83,6881,516,176 1,019,477 331,740 71,369 978 83,688

1,516,176 561,714 55,784 66,402388,775 316,697 12,349 978 14,892

18,913

3,848

1,516,176 973,250 316,697 68,133 978 81,294

46,227 15,043 3,236 2,394

$

Page 77

$

(46,227)(46,227)

$

(15,043)(15,043)

$

(3,236)(3,236)

$ $

(2,394)(2,394)

(Continued)



(Continued)

Special MedicaidIndian Education Education Grants Reimbursement

Revenues:Other local $ $ $ 86,779State aid and grantsFederal aid, grants and reimbursements 100,407 3,137,113 294,002

Total revenues 100,407 3,137,113 380,781


Instruction 28,489 2,344,465 39,381Support services - students and staff 64,438 267,022 195,138Support services - administration 480 4,635 95,791Operation and maintenance ofplant servicesStudent transportation services 2,231 378,736 11,172Operation ofnon-instructional services

Capital outlayTotal expenditures 95,638 2,994,858 341,482

Excess (deficiency) of revenues over expenditures 4,769 142,255 39,299

Other financing sources (uses):Transfer inTransfer out (4,769) (142,255)

Total other financing sources (uses) (4,769) (142,255)

Change in fund balances 39,299

Fund balances, beginning of year 3,868,249

(Decrease) in reserve for inventory

Fund balances (deficits), end of year $ $ $ 3,907,548

Page 78

Extended School Chemical AbuseOther Federal Early Childhood Year - Pupils Prevention Academic

Projects Block Grant with Disabilities Programs Contests Gifted

$ $ $ $ $ $137,963 10,076 9,075 2,998 67,700

296,209296,209 137,963 10,076 9,075 2,998 67,700

$

Page 79

66,84416,6282,083

207,253

292,808

3,401

(3,401)(3,401)

$

109,03428,929

137,963

$

10,076

10,076

$

9,075

9,075

$

2,998

2,998

$

8,92158,779

67,700

(Continued)



(Continued)

Other StateProjects School Plant Food Service

Revenues:Other local $ $ 65,058 $ 4,122,232State aid and grants 543,734Federal aid, grants and reinlbursements 1,847,377

Total revenues 543,734 65,058 5,969,609


InstructionSupport services - students and staff 542,109Support services - administration 1,625 11,075Operation and maintenance of plant services 256,373Student transportation servicesOperation of non-instructional services 5,407,000

Capital outlay 179,736Total expenditures 543,734 5,854,184

Excess (deficiency) of revenues over expenditures 65,058 115,425

Other financing sources (uses):Transfer inTransfer out


Change in fund balances 65,058 115,425

Fund balances, beginning of year 502,853 1,607,522

(Decrease) in reserve for inventory (21,949)

Fund balances (deficits), end of year $ $ 567,911 $ 1,700,998

Page 80

ExtracurricularCommunity Auxiliary Activities Fees Gifts and

Civic Center School Operations Tax Credit Donations Fingerprint

$ 892,954 $ 6,187,237 $ 546,718 $ 1,081,459 $ 225,781 $ 7,324

892,954 6,187,237 546,718 1,081,459 225,781 7,324

5,146 175,843 442,039 831,435 163,85425,753 550,314 37,157 914 12,90066,239 404,651 841 6,071 4,103 6,773

344,992 5,687 10,235139,320 44,462 70,609 153,563 6,09199,874 4,273,795 82218,213 17,226 45,672 18,647 21,772

699,537 5,471,978 596,318 1,010,630 219,777 6,773

193,417 715,259 (49,600) 70,829 6,004 551

193,417 715,259 (49,600) 70,829 6,004 551

793,254 5,943,367 400,201 853,768 424,624 1,455

2,006430,628 $============::::=::::::::====

924,597 $350,601 $6,658,626 $986,671 $$

(Continued)

Page 81



(Concluded)

Insurance LitigationProceeds Textbooks Recovery

Revenues:Other local $ 136,849 $ 13,117 $ 49,288State aid and grantsFederal aid, grants and reimbursements

Total revenues 136,849 13,117 49,288


Instruction 387 2,252Support services - students and staff 455 3,670Support services - administrationOperation and maintenance of plant services 26,939Student transportation services 19,271Operation of non-instructional services

Capital outlay 60,589Total expenditures 107,641 5,922

Excess (deficiency) of revenues over expenditures 29,208 7,195 49,288



Change in fund balances 29,208 7,195 49,288

Fund balances, beginning of year 221,094 71,250 4,947


Fund balances (deficits), end of year $ 250,302 $ 78,445 $ 54,235

Page 82

Unemployment Grants and GiftsIndirect Costs Insurance to Teachers Totals

$ 20,416 $ 44,520 $ 805 $ 13,532,5157,958,0037,182,360

20,416 44,520 805 28,672,878

1,000 13,560,442127,358 3,351,319174,800 63,803 861,883

1,114 852,593903 830,206

1,875 9,783,366176 362,031

306,226 63,803 1,000 29,601,840

(285,810) (19,283) (195) (928,962)

217,325 217,325(217,325)

217,325

(68,485) (19,283) (195) (928,962)

793,295 84,364 2,265 18,185,684

(21,949)

$ 724,810 $ 65,081 $ 2,070 $ 17,234,773

Page 83

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2009

Classroom Site

Variance -Positive

Budget Actual (Negative)Revenues:

Other local $ $ $State aid and grants 4,969,811 4,969,811Federal aid, grants and reimbursementsTotal revenues 4,969,811 4,969,811


Instruction 8,492,082 6,807,415 1,684,667Support services - students and staff 469,388 406,486 62,902Support services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services

Capital outlayTotal expenditures 8,961,470 7,213,901 1,747,569

Excess (deficiency) of revenues overexpenditures (8,961,470) (2,244,090) 6,717,380



Change in fund balances (8,961,470) (2,244,090) 6,717,380

Fund balances, July 1,2008 1,043,532 1,043,532


Fund balances (deficits), June 30, 2009 $ (8,961,470) $ (1,200,558) $ 7,760,912

Page 84

Instructional Inlprovement County, City, and Town Grants

Variance Positive

Budget Actual (Negative)

Variance Positive


$ $ 46,477 $700,470

46,477700,470

$ $ 5,501 $ 5,501

746,947 746,947 5,501 5,501

456,950402,708

311,712274,710

145,238127,998 6,000 4,868 1,132

859,658 586,422 273,236 6,000 4,868 1,132

(859,658) 16_0....:::....-,5_2_5 __----::1,:......-02_0~,1_8_3 __--------"--(6----<-,0_00----L) 6_3_3 6~,6_3_3

(859,658) 16_0....:::....-,5_2_5 __----::1,~02_0....:::....-,1_8_3 __------->-(6--=--,0_0----"-0) 6_3_3 6~,6_3_3

1,569,644 1,569,644

6,633633 $===================

(6,000) $$1,730,169 =$=========2,=58==9=,8==2==7(859,658) $$

(Continued)

Page 85



(Continued)

Structured English Immersion

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

$

Budget

1,648,235

1,648,235

$

Actual

1,516,176

1,516,176

1,516,176

1,516,176

$

Variance Positive

(Negative)

1,516,176

1,516,176

132,059

132,059

Excess (deficiency) of revenues overexpenditures



Change in fund balances

Fund balances, July 1, 2008



Page 86

$

(1,648,235) --::1,_64_8-==--,2_35_

(1,648,235) ----'1,:......-64_8....::...-,2_3_5

(1,648,235) ==$================== ==$====:::::::::::1,==64==8=,2==3==5

Professional Development and Technology Grants

Variance Positive


Title I Grants

Variance -Positive


$ $ $ $

1,019,477 1,019,4771,019,477 1,019,477

$

331,740331,740

$

331,740331,740

665,903 561,714 104,189460,887 388,775 72,112 485,957 316,697 169,260

22,421 18,913 3,508

4,562 3,848 714

1,153,773 973,250 180,523 485,957 316,697 169,260

(1,153,773) 46,227 1,200,000 (485,957) 15,043 501,000

__------:(>.-46---"-,2_2---L..7 ) __------:(>.-46---"-,2_2---L..7 ) ----

__-----:(>.-46---:::.....,2_2---L-7 ) __------:(>.-46---"-,2_2---L..7 ) -----

(1,200,000) -----'1,'---20_0~,0_0_0

__------:(>---15----'--,0_43----«-.) __------:(>.-15---"-,0_43---L-) _

__-----:(>---15-"--,0_43-L..) (15,043) _

(501,000) 5_0~1,0_0_0

$ (1,200,000) ==$================== ==$====:::::::::::1,==20==0=,0==0==:0

Page 87

$ (501,000) ==$================== ==$==========50==1=,0==0==0

(Continued)



(Continued)

Title IV Grants

Variance -Positive


Revenues:Other local $ $ $State aid and grantsFederal aid, grants and reimbursements 71,369 71,369



Instruction 56,301 55,784 517Support services - students and staff 12,463 12,349 114Support services - administrationOperation and maintenance of plant servicesStudent transportation servicesOperation of non-instructional services

Capital outlayTotal expenditures 68,764 68,133 631

Excess (deficiency) of revenues overexpenditures (68,764) 3,236 72,000

Other financing sources (uses):Transfer inTransfer out (3,236) (3,236)

Total other financing sources (uses) (3,236) (3,236)

Change in fund balances'· (72,000) 72,000

Fund balances, July 1,2008


Fund balances (deficits), June 30, 2009 $ (72,000) $ $ 72,000

Page 88

Promote Informed Parent Choice Limited English and Immigrant Students

$

Budget

1,000

1,000

$

Actual

978978

978

978

$

Variance Positive

(Negative)

978978

22

22

$

Budget

96,06221,544

117,606

$

Actual

83,68883,688

66,40214,892

81,294

$

Variance Positive

(Negative)

83,68883,688

29,6606,652

36,312

__------"--(1---"---,°_°---f-°) -------::....1,0_0_0

__~(1----=::..-,0_00~) --------"-1,0_0_0

(117,606) 2--::....-,3_94 12_0--::....-,0_0_0

__------"--(2----=::..-,3_94~)__------"--(2----=::..-,3_94---..£..) ___------"--(2~,3_94____"_) __------"--(2~,3_94____"_) _

(120,000) 1_20----"-,0_0_0

$

Page 89

(1,000) ==$================== ==$============1=,0==0==0 $ (120,000) ==$================== ==$==========12==0=,0==0==0

(Continued)



(Continued)

Indian Education


Total revenues




$

Budget

28,66664,838

483

2,244

96,231

Actual

$

100,407100,407

28,48964,438

480

2,231

95,638

$

Variance Positive

(Negative)

100,407100,407

177400

3

13

593







__------"-(9_6"""'---,2_3----<0..1) 4~,7_6_9 10_1~,0_0_0

__------"--(4----"----,7_69----<:-) __------"--(4........::..-,7_69----"-) ___------"--(4---'--,7_69----<:-) (4,769) _

(101,000) 1_0----"-1,0_0_0


Page 90

$ (101,000) ==$================== ==$==========10==1=,0==0==0

Special Education Grants Medicaid Reimbursement

Variance Positive


Variance Positive


$ $ $ $ $ 86,779 $ 86,779

3,137,113 3,137,113 294,002 294,0023,137,113 3,137,113 380,781 380,781

3,019,959 2,344,465 675,494 51,896 39,381 12,515343,957 267,022 76,935 257,150 195,138 62,012

5,970 4,635 1,335 126,232 95,791 30,441

487,859 378,736 109,123 14,722 11,172 3,550

3,857,745 2,994,858 862,887 450,000 341,482 108,518

(3,857,745) 142,255 4,000,000 (450,000) 39,299 489,299

(142,255) __--"--(1_42---"-,2_55~) _(142,255) (142,255) _

(4,000,000) ------'4,'-----00_0--"----,0_0_0 (450,000) 3_9--"----,2_9_9 48_9-,,--,2_9_9

3,868,249 3,868,249

4,357,5483,907,548 $========:::::::::::=========

(450,000) $$$ (4,000,000) ==$================== ==$====:::::=:::::::4,==00==0=,0==00==

(Continued)

Page 91



(Continued)

Other Federal Projects


Total revenues




$

Budget

79,900'19,8762,490

244,333

346,599

$

Actual

296,209296,209

66,84416,6282,083

207,253

292,808

$

Variance Positive

(Negative)

296,209296,209

13,0563,248

40737,080

53,791







(346,599) 3~,4_0_1 35_0~,0_0_0

__~(3---,--,4_0~1)__~(3---,--,4_0~1) ___------»-(3----=:..-,4_0

---L...1) __------»-(3----=:..-,4_0 ---L...1) -----

(350,000) 35_0~,0_0_0


Page 92

$ (350,000) ==$================== ==$==========35==0=,0==0==0

Early Childhood Block Grant Extended School Year - Pupils with Disabilities

_________10~,0_7_6 10,076

Variance Positive


$

Budget

Variance -Positive

Actual (Negative)

$ $137,963 137,963

137,963 137,963

$ $ $

10,076 10,076

114,59530,405

145,000

109,03428,929

137,963

5,5611,476

7,037

30,000

30,000

10,076

10,076

19,924

19,924

(145,000) 14_5~,0_0_0

(145,000) 14_5~,0--.,..-0_0

__----:(>---30-.:-,0_0-L-0) 30---"-,0_0_0

__----:(>---30-.:-,0_0---L..0) 30---"-,0----.:...0_0

$

Page 93

(145,000) =:$================== =:$==========14==5=,0==0==0 $ (30,000) =:$================== =:$==========3==0=,0==0==0

(Continued)



(Continued)

Chemical Abuse Prevention Programs

Variance Positive


Other localState aid and grantsFederal aid, grants and reimbursements

Total revenues


InstructionSupport services - students and staffSupport services - adnlinistrationOperation and maintenance of plant servicesStudent transportation servicesOperation ofnon-instructional services


$

11,000

11,000

$9,075

9,075

9,075

9,075

$9,075

9,075

1,925

1,925




__-----'("--11~,0_0___"_0) 1~1,0_0_0




__----'('---11~,0_00----"-) _ 11,000 _


Page 94

$ (11,000) ==$================== ==$==========1==1=,0==0==0

Academic Contests Gifted

Variance - Variance -Positive Positive

Budget Actual (Negative) Budget Actual (Negative)

$ $ $ $ $ $2,998 2,998 67,700 67,700

2,998 2,998 67,700 67,700

3,000

3,000

2,998

2,998

2

2

9,88365,117

75,000

8,92158,779

67,700

9626,338

7,300

___(~3..::....-,0_00---L.) 3--=-,0_0_0

__-----"-(3----'-,0_0----"-0) 3--=-,0_0_0

__-----'("---75----'-,0_0----"-0) 75--=-,0_0_0

_~---,(,---75----,-,0_00~) 75--=-,0_0_0

$

Page 95

(3,000) ==$================== ==$============3=,0==0==0 $ (75,000) ==$================== ==$==========7==5=,0==0==0

(Continued)



(Continued)

Environmental Special Plate

Variance Positive


Other localState aid and grantsFederal aid, grants and reimbursements

Total revenues




$

3,000

3,000

$ $

3,000

3,000







__------"--(3----"----,0_00---L.) 3--<:-,0_0_0

__--------"-(3--<:-,0_0----L..0) 3--<:-,0_0_0


Page 96

$ (3,000) ==$================== ==$============3=,0==0==0

Other State Projects School Plant



$ $ $ $ $ 65,058 $ 65,058543,734 543,734

543,734 543,734 65,058 65,058

648,057 542,109 105,9481,943 1,625 318

85,000 85,000

650,000 543,734 106,266 85,000 85,000

(650,000) 650,000 (85,000) 65,058 150,058

(650,000) 6_50----"-,0_0_0 __------>.....(8_5--"----,0_00----L-) 6_5....::....-'0_5_8 15_0....::..-'0_5_8

502,853 502,853

652,911567,911 $===================

(85,000) $$(650,000) ==$================== ==$==========65==0=,0==0==0$

(Continued)

Page 97



(Continued)

Food Service

Variance -Positive


Other local $ $ 4,122,232 $ 4,122,232State aid and grantsFederal aid, grants and reimbursements 1,847,377 1,847,377

Total revenues 5,969,609 5,969,609


InstructionSupport services - students and staffSupport services - administration 11,351 11,075 276Operation and maintenance of plant services 262,759 256,373 6,386Student transportation servicesOperation of non-instructional services 5,541,678 5,407,000 134,678

Capital outlay 184,212 179,736 4,476Total expenditures 6,000,000 5,854,184 145,816

Excess (deficiency) of revenues overexpenditures (6,000,000) 115,425 6,115,425



Change in fund balances (6,000,000) 115,425 6,115,425



Fund balances (deficits), June 30, 2009 $ (6,000,000) $ 1,700,998 $ 7,700,998

Page 98

Civic Center Community School



$ $ 892,954 $ 892,954 $ $ 6,187,237 $ 6,187,237

892,954 892,954 6,187,237 6,187,237

6,621 5,146 1,475 208,879 175,843 33,03633,133 25,753 7,380 653,702 550,314 103,38885,221 66,239 18,982 480,673 404,651 76,022

443,855 344,992 98,863 6,755 5,687 1,068179,244 139,320 39,924 52,815 44,462 8,353128,494 99,874 28,620 5,076,714 4,273,795 802,91923,432 18,213 5,219 20,462 17,226 3,236

900,000 699,537 200,463 6,500,000 5,471,978 1,028,022

(900,000) 193,417 1,093,417 (6,500,000) 715,259 7,215,259

(900,000) 19_3~,4_1_7 __-----=1,'--09_3....:..-,4_1_7 (6,500,000) 7_15-::..-,2_5_9 __-----=7,:......-2_15....:..-,2_5_9

793,254 793,254 5,943,367 5,943,367

6,658,626 $ 13,158,626$ (6,500,000) $1,886,671986,671 $========:::::::::::====:=====

(900,000) $$

(Continued)

Page 99



(Continued)

Auxiliary Operations

Variance -Positive


Other local $ $ 546,718 $ 546,718State aid and grantsFederal aid, grants and reimbursements



Instruction 963,665 442,039 521,626Support services - students and staff 81,004 37,157 43,847Support services - administration 1,833 841 992Operation and maintenance of plant servicesStudent transportation services 153,931 70,609 83,322Operation of non-instructional services

Capital outlay 99,567 45,672 53,895Total expenditures 1,300,000 596,318 703,682

Excess (deficiency) of revenues overexpenditures (1,300,000) (49,600) 1,250,400



Change in fund balances (1,300,000) (49,600) 1,250,400

Fund balances, July 1,2008 400,201 400,201


Fund balances (deficits), June 30, 2009 $ (1,300,000) $ 350,601 $ 1,650,601

Page 100

Extracurricular Activities Fees Tax Credit Gifts and Donations



$ $ 1,081,459 $ 1,081,459 $ $ 225,781 $ 225,781

1,081,459 1,081,459 225,781 225,781

1,028,362 831,435 196,927 335,496 163,854 171,6421,130 914 216 26,413 12,900 13,5137,509 6,071 1,438 8,401 4,103 4,298

20,956 10,235 10,721189,935 153,563 36,372 12,472 6,091 6,381

1,683 822 86123,064 18,647 4,417 44,579 21,772 22,807

1,250,000 1,010,630 239,370 450,000 219,777 230,223

(1,250,000) 70,829 1,320,829 (450,000) 6,004 456,004

(1,250,000) 7_0....::...-,8_2_9 __----:1,:......-32_0....::...-,8_2_9 (450,000) 6....::...-,0_04 45_6....:...-,0_04_

853,768 853,768 424,624 424,624

880,628430,628 $====================:

(450,000) $$2,174,597924,597 $========:::::::::::====:====:

$ (1,250,000) $

(Continued)

Page 101



(Continued)

Fingerprint

Variance -Positive


Other local $ $ 7,324 $ 7,324State aid and grantsFederal aid, grants and reimbursements



InstructionSupport services - students and staffSupport services - administration 10,000 6,773 3,227Operation and maintenance ofplant servicesStudent transportation servicesOperation ofnon-instructional services

Capital outlayTotal expenditures 10,000 6,773 3,227

Excess (deficiency) of revenues overexpenditures (10,000) 551 10,551



Change in fund balances (10,000) 551 10,551

Fund balances, July 1, 2008 1,455 1,455


Fund balances (deficits), June 30, 2009 $ (10,000) $ 2,006 $ 12,006

Page 102

Insurance Proceeds Textbooks



$ $ 136,849 $ 136,849 $ $ 13,117 $ 13,117

136,849 136,849 13,117 13,117

1,079 387 692 22,817 2,252 20,5651,268 455 813 37,183 3,670 33,513

75,080 26,939 48,14153,709 19,271 34,438

168,864 60,589 108,275300,000 107,641 192,359 60,000 5,922 54,078

(300,000) 29,208 329,208 (60,000) 7,195 67,195

(300,000) 2_9....::....-,2_0_8 32_9....::....-,2_0_8 __------"-(6_0....::....-,0_00---"-) 7.....::....-,1_9_5 6_7....:::....-,1_9_5

221,094 221,094 71,250 71,250

138,44578,445 $====================

(60,000) $$550,302250,302 $=====================

(300,000) $$

(Continued)

Page 103



(Continued)

Litigation Recovery

Variance -Positive

Budget* Actual (Negative)Revenues:

Other local $ $ 49,288 $ 49,288State aid and grantsFederal aid, grants and reimbursementsTotal revenues 49,288 49,288




Excess (deficiency) of revenues overexpenditures 49,288 49,288



Change in fund balanc~s 49,288 49,288



Fund balances (deficits), June 30, 2009 $ $ 54,235 $ 54,235

*The Litigation Recovery Fund was included in the District's budget, however, the budget was -0-.

Page 104

Indirect Costs Unemployment Insurance



$ $ 20,416 $ 20,416 $ $ 44,520 $ 44,520

20,416 20,416 44,520 44,520

291,127 127,358 163,769399,574 174,800 224,774 100,000 63,803 36,197

2,546 1,114 1,4322,064 903 1,1614,286 1,875 2,411

403 176 227700,000 306,226 393,774 100,000 63,803 36,197

(700,000) (285,810) 414,190 (100,000) (19,283) 80,717

217,325 217,325

217,325 217,325

(700,000) _'-------:("----68---::.....,4_8~5) 6_31--=-,5_1_5 (1 00,000) -'----_-----'("----19----"-,2_8~3) 80----"-,7_1_7

793,295 793,295 84,364 84,364

165,08165,081 $=================

(100,000) $$1,424,810724,810 $===========:::::::::::====

(700,000) $$

(Continued)

Page 105



(Concluded)

Grants and Gifts to Teachers


Total revenues

$

Budget

$

Actual

805 $

805

Variance Positive

(Negative)

805

805


InstructionSupport services - students and staffSupport services - adnlinistrationOperation and maintenance ofplant servicesStudent transportation servicesOperation of non-instructional services


5,000

5,000

1,000

1,000

4,000

4,000

Excess (deficiency) of revenues overexpenditures __-------"-(5---=---,o_oo---L..) ----:.....(1_9---L..5) 4---=--,8_0_5



Change in fund balances __------"--(5----=----,0_0~0) ----:.....(1_9~5) 4---=--,8_0_5



7,0702,070 $===============:::::::::::===

(5,000) $$Fund balances (deficits), June 30, 2009

Page 106

Totals

Variance -Positive


$ $ 13,532,515 $ 13,532,5157,958,003 7,958,0037,182,360 7,182,360

28,672,878 28,672,878

17,339,351 13,560,442 3,778,9094,414,307 3,351,319 1,062,9881,264,101 861,883 402,2181,056,284 852,593 203,6911,153,557 830,206 323,351

10,837,855 9,783,366 1,054,489564,583 362,031 202,552

36,630,038 29,601,840 7,028,198

(36,630,038) (928,962) 35,701,076

217,325 217,325(217,325) (217,325)(217,325) 217,325

(36,847,363) (928,962) 35,918,401

18,185,684 18,185,684

(21,949) (21,949)

$ (36,847,363) $ 17,234,773 $ 54,082,136

Page 107

NON-MAJOR CAPITAL PROJECTS FUNDS

The following non-major Capital Projects Funds are maintained by the District. Arizona RevisedStatutes (A.R.S.) and the Uniform System ofFinancial Records (USFR) require the establishment ofthese funds for the specified financial activities.

Unrestricted Capital Outlay - to account for transactions relating to the acquisition ofcapital items.

Adjacent Ways - to aCCOllnt for monies received to finance improvements ofpublic ways adjacentto school property.

Soft Capital Allocation - to account for transactions relating to the acquisition ofshort-term capitalitems required to meet academic adequacy standards.

Gifts and Donations - to account for gifts and donations to be expended for capital acquisitions.

Condemnation - to account for proceeds from right-of-way settlements and sales by condemnationor threat of condemnation.

Deficiencies Correction - to account for monies received from the School Facilities Board that areused to correct deficiencies in square footage and in quality of facilities and equipment.

Building Renewal - to account for monies received from the School Facilities Board that are usedfor infrastructure or for major upgrades, repairs, or renovations to areas, systems or buildings thatwill maintain or extend their useful life.

Page 109

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS

JUNE 30, 2009

Unrestricted Soft Capital Gifts andCapital Outlay Adjacent Ways Allocation Donations

ASSETSCash and investments $ 1,164,734 $ 386,567 $ $ 85,546Property taxes receivable 152,495 77,276Due from governmental entities 40,944 448,636Due from other funds 1,287,298 5,114,438

Total assets $ 1,358,173 $ 1,751,141 $ 5,563,074 $ 85,546


Accounts payable $ 163,155 $ 221,676 $ 97,798 $ 7,378Deferred revenues 123,700 71,496 79,825

Total liabilities 286,855 293,172 177,623 7,378

Fund balances:Unreserved:

Undesignated 1,071,318 1,457,969 5,385,451 78,168Total fund balances 1,071,318 1,457,969 5,385,451 78,168

Total liabilities and fund balances $ 1,358,173 $ 1,751,141 $ 5,563,074 $ 85,546

Page 110

Deficiencies BuildingCondemnation Correction Renewal Totals

$ 36,285 $ 90 $ 477,815 $ 2,151,037229,771489,580

6,401,736$ 36,285 $ 90 $ 477,815 $ 9,272,124

$ $ $ $ 490,007275,021765,028

36,285 90 477,815 8,507,09636,285 90 477,815 8,507,096

9,272,124477,815 $=======:::::::::::::=========

36,285 $ 90 $================

$

Page 111


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2009

Unrestricted Soft CapitalCapital Outlay Adjacent Ways Allocation

Revenues:Other local $ $ 40,628 $ 137,095Property taxes 6,738,827 1,073,207State aid and grants 114,051 1,153,822

Total revenues 6,852,878 1,113,835 1,290,917

Expenditures:Capital outlay 7,493,297 561,780 1,621,168

Total expenditures 7,493,297 561,780 1,621,168

Change in fund balances (640,419) 552,055 (330,251)

Fund balances, beginning of year 1,711,737 905,914 5,715,702

5,385,4511,457,969 $=========:::::::=========

1,071,318 $$Fund balances, end of year

Page 112

Gifts and Deficiencies BuildingDonations Condemnation Correction Renewal Totals

$ 64,400 $ 1,587 $ 3 $ 16,747 $ 260,4607,812,0341,267,873

64,400 1,587 3 16,747 9,340,367

67,218 19,591 215,136 9,978,19067,218 19,591 215,136 9,978,190

(2,818) (18,004) 3 (198,389) (637,823)

80,986 54,289 87 676,204 9,144,919

8,507,096477,815 $===================

36,285 $ 90 $====================

78,168 $$

Page 113


FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2009

Revenues:Other localProperty taxesState aid and grantsTotal revenues

Expenditures:Capital outlay

Total expenditures




Page 114

Unrestricted Capital Outlay

Variance -Positive


$ $ $6,738,827 6,738,827

114,051 114,0516,852,878 6,852,878

8,115,226 7,493,297 621,9298,115,226 7,493,297 621,929

(8,115,226) (640,419) 7,474,807

1,711,737 1,711,737

$ (8,115,226) $ 1,071,318 $ 9,186,544

Adjacent Ways Soft Capital Allocation



$ $ 40,628 $ 40,628 $ $ 137,095 $ 137,0951,073,207 1,073,207

1,153,822 1,153,8221,113,835 1,113,835 1,290,917 1,290,917

2,000,000 561,780 1,438,220 7,296,326 1,621,168 5,675,1582,000,000 561,780 1,438,220 7,296,326 1,621,168 5,675,158

(2,000,000) 552,055 2,552,055 (7,296,326) (330,251) 6,966,075

905,914 905,914 5,715,702 5,715,702

$ (2,000,000) $ 1,457,969 $ 3,457,969 $ (7,296,326) $ 5,385,451 $ 12,681,777

Page 115

(Continued)



(Continued)

G"ifts and Donations

Variance -Positive


Other local $ $ 64,400 $ 64,400Property taxesState aid and grantsTotal revenues 64,400 64,400

Expenditures:Capital outlay 125,000 67,218 57,782

Total expenditures 125,000 67,218 57,782

Change in fund balances (125,000) (2,818) 122,182


Fund balances (deficits), June 30, 2009 $ (125,000) $ 78,168 $ 203,168

*The Deficiencies Correction Fund was included in the District's budget, however, the budget was -0-.

Page 116

Condemnation Deficiencies Correction


Budget Actual (Negative) Budget* Actual (Negative)

$ $ 1,587 $ 1,587 $ $ 3 $ 3

1,587 1,587 3 3

100,000 19,591 80,409100,000 19,591 80,409

(100,000) (18,004) 81,996 3 3

54,289 54,289 87 87

$ (100,000) $ 36,285 $ 136,285 $ $ 90 $ 90

Page 117

(Continued)



(Concluded)

Building Renewal

Variance -Positive


Other local $ $ 16,747 $ 16,747Property taxesState aid and grantsTotal revenues 16,747 16,747

Expenditures:Capital outlay 666,301 215,136 451,165

Total expenditures 666,301 215,136 451,165

Change in fund balances (666,301) (198,389) 467,912


Fund balances (deficits), June 30, 2009 $ (666,301) $ 477,815 $ 1,144,116

Page 118

Totals

Variance -Positive


$ $ 260,460 $ 260,4607,812,034 7,812,0341,267,873 1,267,8739,340,367 9,340,367

18,302,853 9,978,190 8,324,66318,302,853 9,978,190 8,324,663

(18,302,853) (637,823) 17,665,030

9,144,919 9,144,919

$ (18,302,853) $ 8,507,096 $ 26,809,949

Page 119

INTERNAL SERVICE FUNDS

District Services - to account for the operation ofDistrict functions that provide goods or services toother District departments on a cost-reimbllrsement basis.

Intergovernmental Agreements - to account for the financial activities relating to agreements withother governments, where the District is the fiscal agent.

Employee Benefit Trust - to account for the financial activity associated with tIle District's selfinsllrance program.

Page 121

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING STATEMENT OF NET ASSETS - ALL INTERNAL SERVICE FUNDS

JUNE 30, 2009

Intergovernmental EmployeeDistrict Services Agreements Benefit Trust Totals


Cash and investments $ 315,516 $ $ 8,539,347 $ 8,854,863Deposits held by others 55,000 55,000Accounts receivable 243 72,082 72,325Due from governnlental entities 25,037 9,290 34,327Due from other funds 29,674 5,582 35,256

Total current assets 370,470 14,872 8,666,429 9,051,771

Noncurrent assets:Vehicles, furniture and equipment 553,251 553,251Accumulated depreciation (355,412) (355,412)

Total noncurrent assets 197,839 197,839Total assets 568,309 14,872 8,666,429 9,249,610


Accounts payable $ 26,691 $ $ $ 26,691Claims payable 1,713,790 1,713,790Due to other funds 14,872 14,872Obligations under capital leases 50,255 50,255

Total current liabilities 76,946 14,872 1,713,790 1,805,608


Non-current portion of long-termobligations 145,618 145,618Total non-current liabilities 145,618 145,618

Total liabilities 222,564 14,872 1,713,790 1,951,226

NET ASSETSInvested in capital assets, net of related debt 1,966 1,966Unrestricted 343,779 6,952,639 7,296,418

Total net assets $ 345,745 $ $ 6,952,639 $ 7,298,384

Page 122

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS

ALL INTERNAL SERVICE FUNDSFOR THE YEAR ENDED JUNE 30, 2009

Intergovernmental EmployeeDistrict Services Agreements Benefit Trust Totals

Operating revenues:Contributions $ $ $ 12,417,015 $ 12,417,015Charges for services 1,005,814 75,714 1,081,528

Total operating revenues 1,005,814 75,714 12,417,015 13,498,543

Operating expenses:Depreciation 11,456 11,456Clainls 8,803,366 8,803,366Premiums 1,284,276 1,284,276Administrative fees 870,181 870,181Cost of services 947,621 75,714 1,023,335

Total operating expenses 959,077 75,714 10,957,823 11,992,614

Operating income 46,737 1,459,192 1,505,929

Nonoperating revenues (expenses):Investment income 9,892 211,369 221,261

Total nonoperating revenues(expenses) 9,892 211,369 221,261

Income before capital contributions andtransfers 56,629 1,670,561 1,727,190

Transfer (50,936) (50,936)

Change in net assets 5,693 1,670,561 1,676,254

Total net assets, beginning of year 340,052 5,282,078 5,622,130

Total net assets, end ofyear $ 345;745 $ $ 6,952,639 $ 7,298,384

Page 123

AGENCY FUNDS

Student Activities - to account for mOl1ies raised by students to finance student clubs andorganizations but held by the District as an agent.

Unemployment Insurance Clearing - to account for unremitted unemployment insurance paymentstemporarily held by the District as an agent.

Surepay Account - to account for employee payroll and related taxes held by the District untildistributed.

Page 125

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

ALL AGENCY FUNDSJUNE 30, 2009

UnemploymentStudent Ins\ITance

Activities Clearing Surepay Account TotalsASSETSCash and investments $ 274,761 $ 909,242 $ 2,159 $ 1,186,162

Total assets $ 274,761 $ 909,242 $ 2,159 $ 1,186,162

LIABILITIESDeposits held for others 909,242 2,159 911,401Due to student groups 274,761 274,761

Total liabilities $ 274,761 $ 909,242 $ 2,159 $ 1,186,162

Page 126

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES


Beginning EndingBalance Additions Deductions Balance

STITDENT ACTIVITIES FUND

AssetsCash and investments $ 361,982 $ 505,279 $ 592,500 $ 274,761

Total assets $ 361,982 $ 505,279 $ 592,500 $ 274,761

Liabilities

Due to student groups $ 361,982 $ 505,279 $ 592,500 $ 274,761

Total liabilities $ 361,982 $ 505,279 $ 592,500 $ 274,761

UNEMPLOYMENT INSURANCE CLEARING FUND

AssetsCash and investments $ 960,223 $ 547,548 $ 598,529 $ 909,242

Total assets $ 960,223 $ 547,548 $ 598,529 $ 909,242

LiabilitiesDeposits held for others $ 960,223 $ 547,548 $ 598,529 $ 909,242

Total liabilities $ 960,223 $ 547,548 $ 598,529 $ 909,242

SUREPAY ACCOUNT

AssetsCash and investments $ $ 91,563,905 $ 91,561,746 $ 2,159

Total assets $ $ 91,563,905 $ 91,561,746 $ 2,159

LiabilitiesDeposits held for others $ $ 91,563,905 $ 91,561,746 $ 2,159

Total liabilities $ $ 91,563,905 $ 91,561,746 $ 2,159

TOTAL AGENCY FUNDS

AssetsCash and investments $ 1,322,205 $ 92,616,732 $ 92,752,775 $ 1,186,162

Total assets $ 1,322,205 $ 92,616,732 $ 92,752,775 $ 1,186,162

LiabilitiesDue to student groups $ 361,982 $ 505,279 $ 592,500 $ 274,761Deposits held for others 960,223 92,111,453 92,160,275 911,401

Total liabilities $ 1,322,205 $ 92,616,732 $ 92,752,775 $ 1,186,162

Page 127

STATISTICAL SECTION

The statistical section presents financial statement trends as well as detailed financial and operationalinformation not available elsewhere in the report. The statistical section is intel1ded to enhance thereader's understanding ofthe information presented in the financial statements, notes to the financialstatements, and other supplementary information presented in this report. The statistical section iscomprised of the· five categories of statistical information presented below.

Financial TrendsThese schedules contain information on financial trends to help the reader understand howthe District's financial position and financial activities have changed over time.

Revenue CapacityThese schedules contain information to help the reader assess the factors affecting theDistrict's ability to generate revenue.

Debt CapacityThese schedules present information to help the reader evaluate the District's current levelsof outstanding debt as well as assess the District's ability to make debt payments and/orissue additional debt in the future.

Demographic and Economic InformationThese schedules present various demographic and economic indicators to help the readerunderstand the environment in which the District's financial activities take place and tohelp make comparisons with other school distric~~.

Operating InformationThese schedules contain information abollt the District's operations and various resourcesto help the reader draw conclusions as to how the District's financial information relates tothe services provided by the District.

Due to cost considerations for the accumulation ofdata, the District has elected to present less thanten years of data, or data from less than nine years prior, for certain statistical schedules. Thisinformation will be accllmulated and reported each year lmtil the complete ten years of data ispresented.

Page 129

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28NET ASSETS BY COMPONENT

LAST 8 FISCAL YEARS(Accrual basis of accounting)

Fiscal Year Ended June 302009 2008 2007 2006 2005

Net Assets:Invested in capital assets, net of related debt $ 124,571,387 $ 115,964,872 $ 112,704,781 $ 111,099,987 $ 105,544,609Restricted 10,994,715 12,721,444 7,810,145 3,974,617 4,470,352Unrestricted 29,221,504 34,750,729 32,757,029 27,373,916 26,700,647

Total net assets $ 164,787,606 $ 163,437,045 $ 153,271,955 $ 142,448,520 $ 136,715,608

2004 2003 2002Net Assets:

Invested in capital assets, net of related debt $ 99,857,299 $ 94,510,247 $ 82,202,027Restricted 4,779,329 8,091,421 7,884,231Unrestricted 22,704,344 16,335,522 17,344,619

Total net assets $ 127,340,972 $ 118,937,190 $ 107,430,877

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 2002 thereforeonly eight years are shown.

Page 131

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)IREVENUE



ExpensesInstruction $ 91,090,275 $ 89,803,441 $ 89,270,018 $ 84,221,135 $ 78,893,995Support services - students and staff 13,987,599 13,857,293 13,925,765 13,800,324 12,586,935Support services - administration 12,103,661 11,630,797 10,132,227 9,088,886 8,452,203Operation and maintenance of plant services 11,844,110 15,532,685 11,222,932 12,045,552 11,147,183Student transportation services 6,729,587 8,211,921 7,115,503 5,098,919 4,062,562Operation of non-instructional services 10,186,264 10,955,819 9,260,379 8,659,249 8,282,483Interest on long-term debt 12,915,591 11,372,066 11,488,882 10,246,413 9,699,764

Total expenses 158,857,087 161,364,022 152,415,706 143,160,478 133,125,125

Program RevenuesCharges for services:

Instruction 6,019,615 5,667,559 5,691,166 8,013,225 7,029,543Operation of non-instructional services 4,597,876 4,705,987 5,011,395 4,383,180 5,112,441Other activities 917,234 805,606 1,229,365 959,985 524,755

Operating grants and contributions 10,939,698 10,029,200 9,768,988 9,234,191 9,402,913Capital grants and contributions 62,349 84,254 155,257 140,090 25,903

Total program revenues 22,536,772 21,292,606 21,856,171 - 22,730,671 22,095,555

Net (Expense)lRevenue $ (136,320,315) $ (140,071,416) $ (130,559,535) $ (120,429,807) $ (111,029,570)

(Continued)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)IREVENUE


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

Total expenses

Program RevenuesCharges for services:

InstructionOperation of non-instructional servicesOther activities

Operating grants and contributionsCapital grants and contributions

Total program revenues

Net (Expense)/Revenue

2004 2003 2002

$ 77,255,138 $ 70,371,597 $ 72,376,59411,297,708 10,542,765 10,101,2917,953,369 9,988,417 10,399,556

10,797,105 11,257,690 10,911,9854,133,277 3,965,118 3,755,0927,420,715 7,809,938 7,780,8119,613,856 9,105,609 8,510,172

128,471,168 123,041,134 123,835,.501

4,578,192 2,062,810 2,580,1716,352,242 7,591,291 6,305,848

293,545 1,926,588 2,363,0877,942,561 6,837,364 5,880,014

22,120 170,38419,166,540 18,440,173 - 17,299,504

$ (109,304,628) $ (104,600,961) $ (106,535,997)

Page 133

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 2002 therefore

only eight years are shown.

(Concluded)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS



Net (Expense)/Revenue $ (136,320,315) $ (140,071,416) $ (130,559,535) $ (120,429,807) $ (111,029,570)

General Revenues:Taxes:

Property taxes, levied for general purposes 42,537,458 42,849,524 40,237,137 39,310,410 38,455,046Property taxes, levied for debt service 20,482,691 21,678,552 20,722,450 19,197,804 19,386,124Property taxes, levied for capital outlay 7,870,415 11,413,014 10,550,195 5,186,442 5,199,193

Investment income 2,375,045 2,976,014 2,423,934 1,316,879 759,070Unrestricted county aid 47,053 3,973,056 3,815,724Unrestricted state aid 64,405,267 71,319,402 67,402,201 57,178,128 52,789,049

Total general revenues 137,670,876 150,236,506 141,382,970 126,162,719 - 120,404,206

Changes in Net Assets $ 1,350,561 $ 10,165,090 $ 10,823,435 $ 5,732,912 $ 9,374,636

Page 134 (Continued)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS


2004 2003 2002

Net (Expense)/Revenue $ (109,304,628) $ (104,600,961 ) $ (106,535,997)

General Revenues:Taxes:

Property taxes, levied for general purposes 37,169,288 32,796,704 30,229,171Property taxes, levied for debt service 19,272,499 18,206,004 19,974,545Property taxes, levied for capital outlay 5,251,786 4,920,843 4,667,604

Investment income 432,604 557,958 1,057,208Unrestricted county aid 3,828,415 3,821,523 3,795,782Unrestricted state aid 52,691,133 53,722,904 54,514,862

Total general revenues 118,645,725 114,025,936 - 114,239,172

Changes in Net Assets $ 9,341,097 $ 9,424,975 $ 7,703,175

Source: The source of this information is the District's financial records.Notes: 1) The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2002 therefore

only eight years are shown.2) The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

As a result state equalization revenues were increased.

Page 135 (Concluded)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28FUNDBALANCES-GOVERNMENTALFUNDS

LAST 8 FISCAL YEARS(Modified accrual basis of accounting)


General Fund:Reserved $ 2,071,948 $ 886,813 $ 601,283 $ 709,264 $ 782,613Unreserved 2,811,084 8,023,547 6,526,860 4,087,229 3,783,516

Total General Fund $ 4,883,032 $ 8,910,360 $ 7,128,143 $ 4,796,493 $ 4,566,129

All Other Governmental Funds:Reserved $ 89,592 $ 111,541 $ 58,613 $ 55,994 $ 65,890Unreserved, reported in:

Special revenue funds 17,145,181 18,074,143 17,554,131 13,969,335 12,515,971Capital projects funds 46,268,450 49,300,826 28,088,973 18,299,575 3,455,052Debt service fund 1,860,279 3,152,073 1,750,583 762,462 737,483

Total all other governmental funds $ 65,363,502 $ 70,638,583 $ 47,452,300 $ 33,087,366 $ 16,774,396

2004 2003 2002General Fund:

Reserved $ 1,041,185 $ 686,080 $ 906,835Unreserved 3,436,524 2,598,280 1,384,586

Total General Fund $ 4,477,709 $ 3,284,360 $ 2,291,421

All Other Governmental Funds:Reserved $ 70,526 $ 36,970 $ 109,034Unreserved, reported in:

Special revenue funds 8,953,031 6,650,091 4,890,950Capital projects funds 3,770,920 6,685,191 4,804,558Debt service fund 675,181 1,023,756 2,372,229

Total all other governmental funds $ 13,469,658 $ 14,396,008 $ 12,176,771


KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28GOVERNMENTAL FUNDS REVENUES



Federal sources:Federal grants $ 5,334,983 $ 5,930,886 $ 7,720,315 $ 7,470,690 $ 7,661,068National School Lunch Program 1,847,377 1,664,110 1,480,183 1,275,143 1,400,496

Total federal sources 7,182,360 7,594,996 9,200,498 8,745,833 9,061,564

State sources:State equalization assistance 55,415,107 61,565,115 58,556,450 48,846,531 46,181,257State grants 2,287,722 802,058 602,585 494,249 455,496School Facilities Board 630,350 1,251,150 1,013,665 933,480Other revenues 5,670,281 8,870,871 7,594,601 7,327,059 6,466,838

Total state sources 63,373,110 71,868,394 68,004,786 57,681,504 54,037,071

Local sources:Property taxes 68,618,997 76,365,297 72,129,888 63,460,826 63,191,830County aid 47,053 3,973,056 3,815,724Food service sales 4,063,460 4,143,347 4,195,829 4,027,902 4,023,727lnvestrnentincome 2,153,784 2,665,840 2,134,575 1,108,560 596,211Other revenues 9,036,722 8,530,954 7,857,259 9,404,838 8,682,394

Total local sources 83,872,963 91,705,438 86,364,604 81,975,182 80,309,886

Total revenues $ 154,428,433 $ 171,168,828 $ 163,569,888 $ 148,402,519 $ 143,408,521

2004 2003 2002Federal sources:

Federal grants $ 6,021,432 $ 5,217,624 $ 4,588,289National School Lunch Program 1,265,795 1,155,976 1,029,345

Total federal sources 7,287,227 6,373,600 5,617,634State sources:

State equalization assistance 46,505,755 47,107,205 46,472,497State grants 428,868 5,447,720 287,727School Facilities Board 1,328,977 1,602,249 949,183Other revenues 4,684,146 7,054,493

Total state sources 52,947,746 54,157,174 54,763,900Local sources:

Property taxes 61,540,145 55,224,469 55,139,828County aid 3,828,415 3,821,523 3,797,782Food service sales 3,848,774 3,902,595 3,936,860Investment income 351,174 440,442 796,893Other revenues 7,883,780 7,678,094 7,482,512

Total local sources 77,452,288 71,067,123 71,153,875Total revenues $ 137,687,261 $ 131,597,897 $ 131,535,409

Source: The source of this information is the District's [mancial records.Note: The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07

through 2008-09. As a result state equalization revenues were increased.

Page 137

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO




Instruction $ 77,507,708 $ 76,717,422 $ 73,733,849 $ 71,561,754 $ 67,322,046Support services - students and staff 13,219,708 13,244,757 13,371,694 13,445,878 12,537,238Support services - administration 10,019,450 9,661,140 9,150,251 8,288,821 8,053,200Operation and maintenance of plant services 12,704,373 14,762,759 10,782,351 11,906,059 10,759,750Student transportation services 5,360,906 5,127,271 4,087,208 3,670,095 3,262,225Operation of non-instructional services 9,860,338 10,414,234 9,123,022 8,467,141 8,136,902

Capital outlay 37,734,774 25,018,078 21,668,789 8,937,274 8,132,558Debt service-

Claims and judgments 482,452Interest and fiscal charges 12,925,563 13,005,534 13,864,730 14,162,616 13,559,381Principal retirement 10,078,756 8,845,565 9,045,754 7,444,052 7,988,855Bond issuance costs 334,953 240,500 205,271 245,955

Total expenditures $ 190,228,981 $ 177,037,260 $ 165,032,919 $ 148,129,645 $ 139,752,155

Expenditures for capitalized assets $ 27,995,669 $ 14,926,173 $ 10,005,781 $ 2,537,437 $ 1,924,890

Debt service as a percentage ofnoncapital expenditures 14% 14% 15% 15% 16%

Page 138(Continued)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO


2004 2003 2002


Instruction $ 65,036,827 $ 59,495,129 $ 58,180,968Support services - students and staff 11,207,949 10,310,293 9,844,903Support services - administration 7,763,981 9,236,296 9,796,385Operation and maintenance of plant services 10,898,427 10,871,191 10,756,945Student transportation services 3,077,863 3,039,562 3,262,327Operation of non-instructional services 7,406,650 7,620,243 7,625,988

Capital outlay 10,805,449 5,881,314 9,709,533Debt service -

Claims and judgmentsInterest and fiscal charges 13,917,735 13,528,926 15,154,772Principal retirement 7,820,302 8,109,948 5,750,000Bond issuance costs 99,422

Total expenditures $ 137,935,183 $ 128,192,324 $ 130,081,821

Expenditures for capitalized assets $ 3,895,829 $ 2,333,978 $ 2,297,882

Debt service as a percentage ofnoncapital expenditures 16% 17% 16%


Page 139(Concluded)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS



Excess (deficiency) ofrevenues over expenditures $ (35,800,548) $ (5,868,432) $ (1,463,031 ) $ 272,874 $ 3,656,366

Other financing sources (uses):General obligation bonds issued 25,000,000 30,000,000 18,000,000 16,000,000Refunding bonds issuedPremium on sale of bonds 334,953 471,297 237,800 353,705Capital lease agreementsTransfers in 1,161,843 1,084,200 1,034,990 600,246 333,432Transfers out (1,161,843) (1,057,023) (1,007,813) (600,246) (333,432)Payment to refunded bond escrow agent

Total other financing sources (uses) - 25,334,953 30,498,474 18,264,977 16,353,705

Changes in fund balances $ (10,465,595) $ 24,630,042 $ 16,801,946 $ 16,626,579 $ 3,656,366

2004 2003 2002

Excess (deficiency) ofrevenues over expenditures $ (247,922) $ 3,405,573 $ 1,453,588

Other financing sources (uses):General obligation bonds issuedRefunding bonds issued 2,184,397Premium on sale of bonds 25,025Capital lease agreements 126,260Transfers in 206,780 158,891 202,385Transfers out (206,780) (158,891) (202,385)Payment to refunded bond escrow agent (2,110,000)

Total other financing sources (uses) - 126,260 99,422

Changes in fund balances $ (121,662) $ 3,504,995 $ 1,453,588


KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST 10 FISCAL YEARS

Fiscal Ratio ofYear Secondary Total Estimated Net Assessed

Ended Assessed Direct Actual to EstimatedJune 30 Valuation Rate Value Actual Value

2009 $ 2,894,830,446 2.89 $ 24,422,238,451 11.85 . %

2008 2,596,108,136 3.97 22,161,674,713 11.712007 1,945,691,504 3.97 15,665,270,012 12.422006 1,877,025,201 3.73 14,986,864,173 12.522005 1,768,674,408 3.90 14,157,956,711 12.492004 1,665,048,018 4.09 13,637,675,542 12.212003 1,453,177,253 4.18 11,655,754,695 12.472002 1,396,119,136 4.37 11,191,589,195 12.472001 1,298,470,420 4.68 10,236,903,324 12.682000 1,130,711,430 5.16 9,026,077,391 12.53

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

Arizona Department of Revenue.

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28DIRECT AND OVERLAPPING PROPERTY TAX RATES


Overlapping RatesFiscalYear County Flood Community Fire Central City City City Tempe District Direct Rates

Ended Free Control College District Arizona of of of Union HighJune 30 CountL Library District District Assistance Water Phoenix Tempe Chandler School District Primary Secondary Total

2009 1.03 0.04 0.14 0.94 0.01 0.10 1.82 1.40 1.18 2.28 1.52 1.37 2.89

2008 1.10 0.04 0.15 0.98 0.01 0.10 1.82 1.40 1.20 2.50 1.95 1.54 3.49

2007 1.18 0.05 0.20 1.06 0.01 0.12 1.82 1.40 1.25 2.63 1.89 2.08 3.97

2006 1.20 0.05 0.21 1.03 0.01 0.12 1.82 1.40 1.28 2.65 1.96 1.77 3.73

2005 1.21 0.05 0.21 1.04 0.01 0.12 1.82 1.35 1.28 3.04 2.06 1.84 3.90

2004 1.28 0.05 0.21 1.08 0.01 0.12 1.82 1.35 1.28 3.29 2.13 1.96 4.09

2003 1.29 0.04 0.21 1.11 0.01 0.13 1.82 1.35 1.28 3.32 2.27 1.91 4.18

2002 1.27 0.04 0.23 1.11 0.01 0.13 1.82 1.35 1.29 3.19 2.24 2.13 4.37

2001 1.28 0.04 0.25 1.12 0.01 0.13 1.82 1.82 1.30 3.31 2.28 2.40 4.68

2000 1.30 0.04 0.29 1.13 0.01 0.14 1.82 1.40 1.31 3.90 2.38 2.78 5.16

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

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28PRINCIPAL PROPERTY TAXPAYERS

ClTRRENT FISCAL YEAR AND EIGHT YEARS AGO

2009 2002

Percentage of Percentage ofSecondary District's Net Secondary District's NetAssessed Assessed Assessed Assessed

Taxpayer Valuation Valuation Valuation Valuation

TWC-Chandler LLC $ 35,316,931 1.22 % $ %Intel Corporation 25,763,991 0.89 31,552,292 2.26DDRA Ahwatukee Foothills LLC 21,711,228 0.75 14,798,863 1.06Target Corporation 17,368,983 0.60Qwest Communications 15,632,084 0.54Honeywell International Inc. 13,895,186 0.48Park At San Tan LLC 12,158,288 0.42BRE Property Investors LLC 11,000,356 0.38Ikea Property Inc. 10,131,907 0.35 36,717,933 2.63Tempe Marketplace Commerce Associates 9,842,424 0.34Freescale Semiconductor Inc. 6,561,760 0.47

Motorola, Inc. 21,639,847 1.55Equity Residential Properties 13,681,968 0.98

Foothills Towne Center III Inc. 10,191,670 0.73

KIMCO Realty 8,795,551 0.63

Phoenix Coca-Cola Bottling Co. 8,655,939 0.62

DDRA Community Centers 6,561,760 0.47Total $ 172,821,378 5.97 % $ 159,157,583 11.40 %

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

Page 143


PROPERTY TAX LEVIES AND COLLECTIONS


Collected within the Collected to the End

Fiscal Fiscal Year of the Levy of the Current Fiscal Year

Year Taxes Levied Collections inEnded for the Percentage Subsequent Percentage

June 30 Fiscal Year Amount of Levy Fiscal Years Amount of Levy

2009 $ 68,652,956 $ 65,431,128 95.31 % $ $ 65,431,128 95.31 %

2008 74,097,893 72,437,425 97.76 1,623,985 74,061,410 99.95

2007 69,926,284 68,481,535 97.93 1,403,860 69,885,395 99.94

2006 67,540,561 65,569,332 97.08 1,940,810 67,510,142 99.95

2005 67,137,384 65,000,673 96.82 2,126,729 67,127,402 99.99

2004 65,561,073 63,706,818 97.17 1,837,480 65,544,298 99.97

2003 59,450,995 57,413,326 96.57 1,998,204 59,411,530 99.93

2002 58,878,374 57,027,219 96.86 1,805,389 58,832,608 99.92

2001 55,236,242 53,888,619 97.56 1,345,461 55,234,080 100.00

2000 52,757,912 51,500,042 97.62 1,257,870 52,757,912 100.00

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

Notes: 1) Amounts collected are on a cash basis.2) Unsecured personal property taxes are not included in this schedule because the dates of the monthly rolls vary

each year. On the average, 90% of unsecured property taxes are collected within 90 days after the due date.

Page 144

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28OUTSTANDING DEBT BY TYPE

LAST 7 FISCAL YEARS

General Obligation Bonds Total Outstanding DebtFiscal Less:Year General Amounts Percentage of Percentage of

Ended Obligation Restricted for Estimated Per Certificates of Capital Estimated PerJune 30 Bonds Principal Total Actual Value Capita Participation Leases Total Actual Value Capita

2009 $136,460,380 $ 6,523,700 $129,936,680 0.53 % $ 852 $ $ 195,873 $130,132,553 0.53 % $ 8532008 121,817,390 10,357,010 111,460,380 0.50 733 111,460,380 0.50 7332007 101,051,490 5,574,580 95,476,910 0.61 640 870,000 25,985 96,372,895 0.62 6462006 92,235,480 5,275,910 86,959,570 0.58 581 2,650,000 50,829 89,660,399 0.60 5992005 85,812,938 5,295,298 80,517,640 0.57 538 4,350,000 74,583 84,942,223 0.60 5672004 95,957,923 1,555,000 94,402,923 0.69 629 5,975,000 99,083 100,477,006 0.74 6702003 106,595,658 1,650,000 104,945,658 0.90 698 7,530,000 N/A 112,475,658 0.96 749

Source: The source of this infonnation is the District's financial records.Notes: 1) General obligation bonds includes unamortized bond premium payable for applicable issuances.

2) N/A indicates that infonnation is not available.

Page 145

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2009

Governmental Unit

Community College DistrictCity of PhoenixCity of TempeCity of ChandlerTempe Union High School District No. 213

Subtotal, Overlapping Debt

Direct:Kyrene Elementary School District No. 28

Total Direct and Overlapping Debt

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

$ 707,390,000 4.96 % $ 35,086,5441,405,031,000 4.27 59,994,824

407,595,000 34.16 139,234,452438,200,000 25.12 110,075,840128,000,000 57.42 73,497,600

417,889,260

130,132,553

$ 548,021,813

Source: The source of this information is the District's records and the State and County Abstract of the AssessmentArizona Department of Revenue and the applicable governmental unit.

Note: Outstanding debt as of June 30, 2008 is presented for the overlapping governments as this is the most recentavailable information.

Page 146

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28LEGAL DEBT MARGIN INFORMATION

LAST 8 FISCAL YEARS

Class·B Bond Legal Debt Margin Calculation for Fiscal Year 2009:Secondary assessed valuation $ 2,894,830,446Debt limit (5% of assessed value) 144,741,522Debt applicable to limit 89,000,000Legal debt margin $ 55,741,522

Legal Debt Margin Calculation for Fiscal Year 2009:Secondary assessed valuation $ 2,894,830,446Debt limit (15% of assessed value) 434,224,567Debt applicable to limit 129,936,680Legal debt margin $ 304,287,887


Debt limit $ 434,224,567 $ 389,416,220 $ 291,853,726 $ 281,553,780 $ 265,301,161

Total net debt applicable to limit 129,936,680 111,460,380 95,476,910 - 86,959,570 80,517,640

Legal debt margin $ 304,287,887 $ 277,955,840 $ 196,376,816 $ 194,594,210 $ 184,783,521

Total net debt applicable to the limitas a percentage of debt limit 30% 29% 33% 31% 30%

2004 2003 2002

Debt limit $ 249,757,203 $ 217,976,588 $ 209,417,870

Total net debt applicable to limit 94,402,923 - 104,945,658 109,923,569

Legal debt margin $ 155,354,280 $ 113,030,930 $ 99,494,301

Total net debt applicable to the limitas a percentage of debt limit 38% 48% 52%

Source: The source of this information is the District's financial records.Note: The District's general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds and the

statutory debt limit on Class B bonds. The calculations of the debt margins are presented in detail for the current fiscal year only.Page 147

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST 10 CALENDAR YEARS

Personal EstimatedIncome Per Capita Unemploymen1 District

Year Population (thousands) Income Rate Population

2008 3,987,942 $ N/A $ N/A 4.8 0/0 152,5002007 3,778,598 139,665,253 36,135 3.3 152,0002006 3,792,675 132,423,154 35,046 3.5 149,2002005 3,648,545 120,716,738 33,178 4.1 149,7892004 3,498,587 111,103,576 31,757 4.5 149,7502003 3,388,711 102,277,852 30,182 5.2 150,0002002 3,293,441 96,998,974 29,452 5.6 150,2502001 3,195,893 93,544,549 29,270 4.2 150,5002000 3,096,692 89,771,608 28,990 2.7 150,7231999 3,004,985 80,924,901 26,930 3.1 147,500

Sources: The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.The source of the "Population" and "Unemployment Rate" information is State of Arizona,Department of Economic Security.

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

Page 148

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND NINE YEARS AGO

2009 2000

Employer

Arizona State UniversityWells FargoSRPFreescale Semi ConductorUS AirwaysInsight Direct Inc.HoneywellBank One Telephone Banking DivisionCity of TempeAmerica West AirlinesMotorolaMicroageChase Bankcard ServicesWells Fargo Operation Center

Total

Total employment

Employees

10,3363,4063,3313,0002,8002,5002,0002,0001,740

55,473

Percentageof Total

Employment

18.63 0/06.146.005.415.054.513.613.613.14

56.10 0/0

Employees

15,212

2,175

1,9984,0003,7752,7001,7321,700

41,125

Percentageof Total

Employment

36.99 %

5.29

4.869.739.186.574.214.1380.95 0/0

Source: The City of Tempe Comprehensive Annual Financial Report for fiscal years 2008-09 and 1999-2000.Note: The information presented is for the Tempe metropolitan area. Kyrene Elementary School District also serves

portions of the City of Chandler and City of Phoenix communities.

Page 149

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

LAST 8 FISCAL YEARS

Full-time Equivalent Employees as of June 302009 2008 2007 2006 2005

SupervisoryPrincipals 25 24 26 25 25Assistant principals 19 16 18 18 16

Total supervisory 44 40 44 43 41Instruction

Teachers 1,070 985 949 1,029 968Other professionals (instructional) 238 216 207 180 150

Total instruction 1,308 1,201 1,156 1,209 1,118Student Services

Librarians 25 25 23 25 25Technicians 14 13 12 13 13

Total student services 39 38 35 38 38Support and Administration

Service workers 105 96 89 82 71Other 82 80 88 105 136

Total support and administration 187 176 177 187 207

Total 1,578 1,455 1,412 1,477 1,404

(Continued)

Page 150

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE

LAST 8 FISCAL YEARS

2004 2003 2002

SupervisoryPrincipals 25 25 25Assistant principals 16 22 26

Total supervisory 41 47 51Instruction

Teachers 1,068 1,044 1,096Other professionals (instructional) 197 202 228

Total instruction 1,265 1,246 1,324Student Services

Librarians 25 25 25Technicians 14 16 17

Total student services 39 41 42Support and Administration

Service workers 77 84 98Other 145 144 153

Total support and administration 222 228 251

Total 1,567 1,562 1,668

Source: District contract database.

Page 151

(Concluded)

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28OPERATING STATISTICS

LAST 8 FISCAL YEARS

FiscalYear Average Cost Cost Pupil- Percentage of

Ended Daily Operating per Percentage per Percentage Teaching Teacher Free/Reduced

June30 MeDlbership Expenditures Pupil Chan2;e Expenses Pupil Chan2;e Staff Ratio Students

2009 16,993 $ 128,672,483 $ 7,572 (0.30) % $ 158,857,087 $ 9,348 (0.89) % 1,070 15.9 20.3 %2008 17,108 129,927,583 7,595 11.71 161,364,022 9,432 9.45 985 17.4 18.22007 17,687 120,248,375 6,799 6.53 152,415,706 8,617 10.68 949 18.6 15.52006 18,387 117,339,748 6,382 7.05 143,160,478 7,786 7.99 1,029 17.9 16.02005 18,464 110,071,361 5,961 (0.68) 133,125,125 7,210 (1.46) 968 19.1 14.62004 17,558 105,391,697 6,002 6.34 128,471,168 7,317 5.95 1,068 16.4 14.02003 17,817 100,572,714 5,645 2.68 123,041,134 6,906 0.90 1,044 17.1 12.02002 18,093 99,467,516 5,498 N/A 123,835,501 6,844 N/A 1,096 16.5 11.0

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

Page 152

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28CAPITAL ASSETS INFORMATION

LAST 8 FISCAL YEARS

Fiscal Year Ended June 302009 2008 2007 2006 2005 2004 2003 2002

SchoolsElementary

Buildings 65 69 69 69 69 69 69 69Square feet 1,457,650 1,451,378 1,451,378 1,451,378 1,451,378 1,451,378 1,450,087 1,450,087Capacity 16,069 16,000 16,000 16,000 16,000 16,000 16,000 16,000

MiddleBuildings 46 46 46 46 46 46 46 46Square feet 915,260 915,260 915,260 915,260 915,260 915,260 915,260 915,260Capacity 7,125 7,125 7,125 7,125 7,125 7,125 7,125 7,125

AdministrativeBuildings 3 3 3 3 3 3 3 3Square feet 70,947 70,947 70,947 70,947 70,947 70,947 70,947 70,947

TransportationGarages 7 7 7 7 7 7 7 7

AthleticsSoccer fields 6 6 6 6 6 6 6 6Running tracks 6 6 6 6 6 6 6 6Baseball/softball 11/12 11/12 11/12 11/12 11/12 11/12 11/12 11/12Playgrounds 29 29 29 29 29 29 29 29

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

Page 153

KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28...KYRENE ELEMENTARY SCHOOL DISTRICT NO. 28 Annual Financial...

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