SCHOOL DISTRICT OF SPRINGFIELD R-12 SPRINGFIELD, GREENE ... · SCHOOL DISTRICT OF SPRINGFIELD R-12...

SCHOOL DISTRICT OF SPRINGFIELD R-12 SPRINGFIELD, GREENE COUNTY, MISSOURI

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED JUNE 30, 2006

Prepared by the Finance Department

Cherie Alderson – Director of Financial Services Steven M. Chodes – Comptroller

i

TABLE OF CONTENTS

INTRODUCTORY SECTION Letter of Transmittal .........................................................................................................................................1 Mission and Vision of the District ....................................................................................................................7 Board Members and Administrators.................................................................................................................8 Organization Chart ...........................................................................................................................................9 ASBO Certificate of Excellence in Financial Reporting ................................................................................10 GFOA Certificate of Achievement for Excellence in Financial Reporting ....................................................11 FINANCIAL SECTION Independent Auditor’s Report ........................................................................................................................13 Management’s Discussion and Analysis ........................................................................................................15 Basic Financial Statements: Government-wide Financial Statements:

Statement of Net Assets ............................................................................................................23 Statement of Activities ..............................................................................................................24

Fund Financial Statements:

Balance Sheet – Governmental Funds.......................................................................................25 Reconciliation of Balance Sheet – Governmental Funds with the Statement of Net Assets .....26

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ..........................................................................................................27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances – Governmental Funds to the Statement of Activities ...............................28 Statement of Net Assets – Proprietary Fund .............................................................................29 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Fund .........30 Statement of Cash Flows – Proprietary Fund............................................................................31 Statement of Fiduciary Net Assets – Fiduciary Funds ..............................................................32 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds............................................33

Notes to Basic Financial Statements ................................................................................................34

Required Supplementary Information:

Budgetary Comparison Schedules (Unaudited) General Fund – Incidental Fund................................................................................................51 Major Special Revenue Fund – Teachers’ Fund .......................................................................52

Note to Budgetary Comparison Schedules .......................................................................................53

ii

Other Supplementary Information:

Budgetary Comparison Schedules (Unaudited) Debt Service Fund.....................................................................................................................55 Capital Projects Fund ................................................................................................................56 All Governmental Funds ...........................................................................................................57

Summary Schedule of Revenues Collected, Expenditures Paid and Changes in Fund Balance...............................................................................................................................58

Schedule of Revenues by Source per Annual Secretary of Board Report (ASBR) – Governmental Funds ..........................................................................................................59

Schedule of Expenditures by Object per Annual Secretary of Board Report (ASBR) – All Governmental Funds ....................................................................................................61

STATISTICAL SECTION Net Assets by Component – Last Five Fiscal Years.......................................................................................63 Change in Net Assets – Last Five Fiscal Years ..............................................................................................64 Fund Balances of Governmental Funds – Last Ten Fiscal Years ...................................................................66 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................67 General School System Expenses by Function – Government-wide – Last Four Fiscal Years......................68 General School System Expenditures by Function – Fund Level – Last Ten Fiscal Years ............................69 General School System Revenues by Source – Government-wide – Last Five Fiscal Years .........................70 General School System Revenues by Source – Fund Level – Last Ten Fiscal Years.....................................71 Property Tax Levies and Collections – Last Ten Fiscal Years .......................................................................72 Assessed and Estimated Actual Value of Taxable Property – Last Ten Calendar Years................................73 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ...................................74 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita

– Last Ten Fiscal Years ....................................................................................................................75 Computation of Legal Debt Margin – Last Ten Fiscal Years.........................................................................76 Computation of Direct and Overlapping Debt................................................................................................77 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General

Expenditures – Last Ten Fiscal Years ..............................................................................................78 Demographic Statistics – Last Ten Years.......................................................................................................79 Property Value, Construction, and Bank Deposits – Last Ten Fiscal Years...................................................80 Principal Taxpayers ........................................................................................................................................81 Largest Employers ..........................................................................................................................................82 Capital Assets – Last Five Fiscal Years..........................................................................................................83 Miscellaneous Statistics..................................................................................................................................84

Introductory Section

1

Springfield Public Schools

Kraft Administrative Center

940 North Jefferson Springfield, Missouri 65802-3790

December 13, 2006 The Comprehensive Annual Financial Report (CAFR) for the School District of Springfield R-12 (District) for the fiscal year ended June 30, 2006 is submitted herewith. This report has been prepared by the District’s Finance Department. Responsibility for the accuracy of the data presented here and the completeness and fairness of the presentation, including all disclosures, rests with the District. We believe the data is presented in a manner designed to fairly set forth the financial position and results of operations of the District, as measured by the financial activity of the various funds; that all disclosures necessary for the reader to gain maximum understanding of the District’s financial activity have been included; and is accurate in all material respects. The CAFR for the fiscal year ended June 30, 2006 is presented in conformance with the reporting model adopted by the Governmental Accounting Standards Board (GASB) in their Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, issued in June 1999. Under the requirements of GASB Statement No. 34, the District implemented the new reporting model for the year ended June 30, 2002. Goals of this reporting model are to provide more relevant information that will result in greater accountability by state and local governments and to enhance the understanding and usefulness of the comprehensive annual financial report. The Governmental Accounting Standards Board has recognized accountability as the primary objective of government financial reporting. The minimum requirements for external financial statements now include: Management’s discussion and analysis (MD&A), government-wide financial statements, fund financial statements, notes to the financial statements and required supplementary information other than MD&A. Under the provisions for the CAFR, three sections are required; two of which expand upon the scope of Statement No. 34. The Introductory Section includes this Letter of Transmittal, the District’s mission and vision statement, the District’s organizational chart, a listing of elected Board of Education members and a listing of administrative officials. The Financial Section meets the requirements of Statement No. 34 and includes the independent auditor’s report, Management’s Discussion and Analysis, basic financial statements for the entity as a whole, notes to the basic financial statements, and required supplemental information. The Statistical Section includes government wide summary financial data, ten years of summary fund financial data, debt computations, and a variety of demographic, economic, and general information. This CAFR has been prepared using the guidelines recommended by the Government Finance Officers Association of the United States and Canada (GFOA) and the Association of School Business Officials International (ASBO). Each of these associations maintains a CAFR award program. Receiving these awards is recognition that a school system has met the highest of standards of excellence in school financial reporting. The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its CAFR for the fiscal year ended June 30, 2005. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of

2

Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The ASBO awarded a Certificate of Excellence in Financial Reporting to the District for its CAFR for the year ended June 30, 2005. We believe that our current CAFR continues to meet the Certificate of Excellence Program’s requirements and we are submitting it to the ASBO to determine its eligibility for another certificate. MANAGEMENT’S DISCUSSION AND ANALYSIS GASB Statement No. 34 requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of management’s discussion and analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in connection with it. The District’s MD&A can be found immediately following the report of the independent auditors. DISTRICT PROFILE The Springfield R-12 School District provides general and special education for 24,000 students in K-12; the third largest student enrollment in Missouri. Enrollment has remained steady in the 24,000-24,500 range over the last seven years and is projected to remain so during the next couple of years. The District’s facilities currently include 36 elementary schools serving grades kindergarten through five, 1 intermediate school serving grades five and six, 9 middle schools serving grades six, seven, and eight, and 5 high schools serving grades nine through twelve. Of the 48 school sites within the District, 3 are less than 10 years old, 4 are 11-30 years old, 30 are 31-50 years old and 11 are more than 50 years old, with the average school building age district-wide being 41 years. As of June 2006, the District had a total of 3,734 employees. The school calendar generally stipulates a school year with 186 teacher contract days with schools scheduled to be in session 176 days. Both elementary schools and secondary schools follow the traditional nine-month schedules, with summer school available. The District encompasses over 138 square miles and is located in the southwestern portion of Missouri in Greene County. The population of the District was 181,162 in 2005, according to the U.S. Census Bureau. The District is governed by a seven-member board of directors commonly known as the Board of Education. Under prior law, members of the Board were elected for six-year staggered terms with two or three members being elected every two years. This was changed in 1998 so that elections for Board members are now held annually in April and terms for members are now three years. All Board members are elected at-large and serve without compensation. The Board is responsible for all policy decisions. The President and Vice President of the Board are elected by the Board from among its members for terms of one year each and have no regular administrative duties. The Secretary and Treasurer are appointed by the Board and may or may not be members of the Board. The Board of Education appoints the Superintendent. Additional members of the administrative staff are appointed by the Board of Education upon recommendation by the Superintendent. The District operates as an urban school district and is not a component unit of another government as defined by GASB pronouncements since Board members are elected by the voting public to provide fiscal and operational management of the District. In addition, there are no component units included within the District. ECONOMIC CONDITION AND OUTLOOK The Springfield Region is comprised of five counties and has a population of over 380,000. The city of Springfield, which is the state's third-largest city, is at the heart of a transportation hub, which consists of a network of major interstates and highways. The presence of Table Rock Lake, Lake Taneycomo and a portion of the Mark Twain National Forest make this region an outdoorsman's paradise. The arts and minor league sports offer great options in Springfield entertainment. In addition to the great quality of life, the Springfield Region is, in many respects, the engine driving the state's economic growth. Every county in this region has experienced above average to phenomenal growth in the last decade. Springfield's economic output (gross metro product) doubled in the past decade--fastest growing in

3

Missouri and top 50 in the US. The Springfield metro workforce has grown more than 16% in the past 10 years and in 2004 accounted for more than one-third of Missouri's total job growth (business4springfield.com). The unemployment rate for the Springfield Region in July 2006 was.3.6%, well under the state’s rate of 4.8% (U.S. Dept. of Labor, Bureau of Labor Statistics). The education and health care sector employs over 30,000 people (15% of the total workforce) with an economic impact of over $3 billion. The manufacturing sector's economic impact is over $3 billion annually and the sector employs over 20,000 people. Major employers in this area are: CoxHealth, St. John’s Health System, Bass Pro, Kraft Foods, O”Reilly Auto Parts, Chase Card Services and Wal-Mart Stores (business4springfield.com). INTERNAL CONTROLS The District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. BUDGETARY CONTROLS In June of each year, the District adopts an annual budget for revenues and expenditures. The District’s budget is an instrument that provides a definite financial plan for the direction of business operations of the District. It provides a detailed outline of the probable expenditures and the anticipated receipts during a specified period of time. The budget is one of the most important legal documents of a school district. It is not a static document but rather a working document that changes, through Board approved budget amendments, throughout the year as actual financial data changes. The development of the annual budget for Springfield Public Schools is a combined effort of the Board of Education, District administration, school staff and the public. Driving the process are two objectives. The first is to provide every child in the District with a quality education. The second is to utilize the resources available to the District in the most efficient and effective manner. Preparation for the annual budget begins in January of the prior school year. At that time, preliminary revenue and expenditure projections are developed for the current year and the subsequent year. These projections are used in developing a “roll-ahead” budget for the subsequent year which provides the District with a first look of the new year budget. Meetings are then held with the Board of Education, District administration, school staff and the public to arrive at a final budget draft. In April, the preliminary budget is provided to the Board for review. The Board reviews the budget and approves the preliminary budget. The Board may request modification of the preliminary budget at this time and any time prior to official adoption. The result of this process, the annual budget, is a detailed analysis of the District’s revenues and expenditures developed to support educational programs and services. Final adoption of the budget occurs in June. Throughout the fiscal year, two-way communication is maintained between the Finance Department and the various budget administrators. Since events change throughout the year, budget administrators will periodically need to increase a budget item. What results is a “give and take” approach to the request for additional budget amounts. First, the administrator’s entire function is reviewed for areas that might have excess budget amounts. If it is determined that there are excess budget amounts, then a budget transfer is completed to move the excess budget amount needed to fill the request. If it is determined that the administrator’s function has no excess budget amount, then other functions are reviewed for excess budget amounts. Finally, if these reviews reveal no excess budget amounts, then a budget modification request is submitted to the Board for approval.

4

The Finance Department reviews actual performance compared to budget on a continuing basis. As the year progresses, this review increases in focus to the extent that, over the last few months of the fiscal year, the budget is reviewed on a line item by line item basis. ACCOMPLISHMENTS AND INITIATIVES In support of the District’s vision statement, activities of the District focus on academic and student development. To achieve this vision, the District has adopted three goals: Improve student achievement, improve graduation rate and ensure effective and efficient use of resources. Success in meeting these three goals is indicated by the following accomplishments:

• SPS Students continue to outperform state and national peers on ACT: Springfield students’ composite score was 22.5. This year’s state average composite score was 21.6; the national composite average score was 20.9.

• Springfield schools make state 'Top 10' lists: Springfield Public Schools were named to the Top 10 lists for “Highest Performing” and “Most Improved” schools by the Missouri Department of Elementary and Secondary Education. The lists are based on five-year averages of student performance demonstrated on the Missouri Assessment Program (MAP) Test. MAP is Missouri’s mandatory state-wide test used in public schools to measure performance under the federal No Child Left Behind Act. Springfield was recognized seven times in the highest performing schools category. Only three other Missouri school districts appeared more times on this list. The District was recognized nine times in the most improved schools category. Only three Missouri school districts were listed more times in this category.

• District again eligible for MSIP review waiver: For the third straight year, Springfield Public Schools is eligible to waive the On-Site Missouri School Improvement Program (MSIP) review. The District earned the waiver by meeting performance indicators at the accredited level on recent Annual Performance Reports (APR). Eligibility was based on APRs for the last three years and other information gathered in the 2000 MSIP review. Few districts receive this honor, which will save Springfield Public Schools officials $100,000 in preparation time.

• District earns state “Distinction in Performance” award: For the fourth straight year, Springfield Public Schools earned the state’s coveted “Distinction in Performance” award for continued progress in improving academic achievement, according to the Missouri Department of Elementary and Secondary Education. The annual recognition is based on a district’s performance on MAP test scores, ACT scores, attendance, dropout rates and other measures of academic performance during the 2004-05 school year.

Other District accomplishments included:

• District receives meritorious budget award: The District received the Meritorious Budget Award for its 2005-2006 fiscal budget from the Association of School Business Officials (ASBO) International. The award reflects the commitment of district officials to achieve the highest standard of school budgeting.

• District achieves unqualified audit: For the 14th year in a row, the 2005-06 audit is unqualified. An unqualified accountants’ opinion shows that the audited financial statements, as presented, are in conformity, in all material respects, with generally accepted accounting principles. Fewer than 5% of Missouri school districts received unqualified audits.

5

Major initiatives of the District included programs designed to meet federal, state and District goals. These included:

• The Missouri School Improvement Program: MSIP is the pathway by which the State Board of Education and the Department of Elementary and Secondary Education fulfill their responsibility to classify and accredit school districts in the state, as well as ensure that school improvement within each district and on a statewide basis is promoted.

• The Comprehensive School Improvement Plan: CSIP is an ongoing, written document that directs the District’s overall improvement of its education programs and services, and is a requirement of MSIP.

• The District’s Accountability System: The Accountability System is the overarching planning process that incorporates the mission, vision and beliefs of the Board of Education. The Accountability System focuses on continuous improvement, while providing the resources necessary to support improvement efforts and expands upon the ability to achieve the goals of the state and federal governments.

These processes represent the work plans of the District. They are the “blueprints” by which the District will measure progress and report results to the public.

Other District initiatives included:

• $96.5 Million General Obligation Bond: In April 2006 a $96.5 million bond was approved by the vote of the public. The bond will be used to add air conditioning at 18 schools, provide new science/technology labs for 3 high schools and expand and upgrade 9 schools.

• Financial Software: In April 2006 the District implemented a new financial software system.

CASH MANAGEMENT The District has written policies for the management of cash and investments. Cash receipts are physically secured and deposited in the authorized depository within twenty-four hours of receipt. Except for cash in certain restricted and special funds, cash balances from all funds are consolidated to maximize investment earnings. The District maintains a cash and investment pool that is available for use by all funds not required to be segregated. Deposits made to accounts in the funds that pool are swept into the investment pool. The pool uses accrual accounting and allocates income monthly to the various funds based upon their respective participation. Fair value adjustment is determined and recorded at fiscal year end. The District’s depository pays interest monthly on the average daily balance of accounts. No restrictions are placed on the amounts of deposits or withdrawals allowing cash to be placed where it will earn the highest return. Funds not required for current operations are identified as surplus funds and are invested on a competitive basis through the District’s authorized financial dealers (one primary) and institutions. Investment types include securities issued by State of Missouri, US Treasury, US Agencies; repurchase agreements, certificates of deposit, commercial paper, and bankers’ acceptances with diversification standards for each type and issuer. Repurchase agreements and certificates of deposit require collateralization. Investment in any type of derivative is prohibited. The District’s pool and restricted funds also participate in the Missouri Securities Investment Program (MOSIP) an intergovernmental investment pool. Reports are presented to the Board of Education each month that provide details of investments, collateralization of deposits, and cash position by fund. RISK MANAGEMENT The District is self-funded for medical benefits and workers compensation. Claims administration for both of these programs is handled by a third party administrator. Stop-loss protection for medical benefits is covered by a policy for individual claims in excess of $200,000 with an aggregate limit of $21.5 million. Stop-loss protection for workers compensation is covered by policies for aggregate claims exceeding $2.6 million and specific claims in excess of $350,000.

6

Programs to help control medical and workers compensation costs have proven to be effective and, as a result, the District has maintained an adequate reserve and has been able to avoid increases in benefit premiums. These programs include the establishment of a preferred health provider network, utilization review, and large case management for medical benefits and a directed medical program, centralized reporting, and utilizing the loss control services of Summit Safety Group for workers compensation. INDEPENDENT AUDIT Daniel Jones & Associates has audited the District’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2006 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the District’s financial statements for the fiscal year ended June 30, 2006 are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the District was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. As was the case with the financial statements, the independent auditor reported an unqualified opinion that the District complied, in all material respects with the requirements that are applicable to each of its major federal programs for the year ended June 30, 2006. ACKNOWLEDGEMENTS The efficient, knowledgeable and dedicated staff of the Finance Department accomplished the preparation of this report on a timely basis. We would like to express appreciation to all members of the department who assisted in the preparation of this report. We also wish to thank the members of the Board of Education for their interest and support in conducting the financial affairs of the District in a responsible and progressive manner.

Cherie D. Alderson Steven M. Chodes Director, Financial Services Comptroller

7

Mission and Vision of the District

Our Beliefs: All individuals associated with the Springfield Public Schools are expected to treat each other with dignity and respect, to advocate positively for the learning of students and to embrace the commonly held values of service, integrity, fairness, kindness, openness, equity, and responsibility. To accomplish this, we believe that:

• Parents are the primary educators of their children. Therefore, we are committed to actively engaging parents in the education of their children.

• Students are responsible for active participation in their learning process. Therefore, we shall provide students the

opportunity to pursue their maximum potential in a safe, positive and challenging learning environment. • Staff members will focus on high expectations for themselves and students. Therefore, we are committed to

working with staff to define the expectations for their respective responsibilities, to develop a system of accountability to measure achievement of these expectations and to provide the on-going staff development and support needed to achieve these expectations.

• A representative republic depends upon educated citizens. It is the responsibility of all stakeholders, including the community and governmental bodies to support public education. Therefore, as elected representatives, the Board of Education shall solicit the fiscal, moral and volunteer support needed to achieve the District’s mission and goals and hold itself accountable for the effective and efficient use of same.

Our Vision: The Springfield Public Schools shall be a national leader in academic and student development. In addition to the mastery of basic skills, students shall be engaged in challenging academic programs designed to allow students to reach their highest potential. To achieve this vision, the Board of Education adopts the following goals: Goals to Achieve the Vision Goal 1: Improve Student Achievement - All students will demonstrate proficiency or

higher in math, reading, and writing as measured by the benchmark standards.

Goal 2: Improve Graduation Rate – Students will persist in their efforts to complete an educational program.

Goal 3: Ensure Effective and Efficient Use of Resources – High quality, fiscally-

responsible services will be provided.

MISSION STATEMENT

Springfield Public Schools exists for the academic excellence of all students.

8

SPRINGFIELD PUBLIC SCHOOL DISTRICT

BOARD MEMBERS AND ADMINISTRATORS

Board of Education

Michael Hoeman.....................................................................................................President Kris Callen .....................................................................................................Vice-President Pam Bodine..............................................................................................................Member Andy Hosmer ...........................................................................................................Member Mary Norman...........................................................................................................Member Bruce Renner ...........................................................................................................Member Debbie Tolliver ........................................................................................................ Member Administration Norm Ridder, Ed.D ....................................................................................... Superintendent Chuck Stockton.............................................................Special Assistant to Superintendent Cherie Alderson .................................................................... Director of Financial Services Danny Fuller ..........................................................................Director of Human Resources Del Phillips, Ph D .........................................................................Associate Superintendent Teresa White, Ed.D.......................................................................Associate Superintendent Peggy Riggs, Ed.D........................................................................Associate Superintendent Bob Keyes...................................................................................Public Information Officer Anita Kissinger .....................................................................Director of Staff Development Denise Fredrick..........................................Director of Accountability & Federal Programs Marc Maness.......... Director of Community Services, Academic Development and Grants

9

Boa

rd o

f Edu

catio

n

Supe

rinte

nden

t

Ass

ocia

teSu

perin

tend

ent

(Zon

e I)

Coo

rdin

ator

of

Alte

rnat

ive

Pro

gram

s

KH

S/G

HS

and

all

Feed

er S

choo

ls

Dire

ctor

of

Early

Chi

ldho

od

HH

S/P

HS

and

all

Feed

er S

choo

ls

Ass

ocia

teSu

perin

tend

ent

(Zon

e II)

Rec

ords

Offi

ce

Coo

rdin

ator

of G

ifted

Coo

rdin

ator

of

Libr

ary

Serv

ices

Ass

ocia

teSu

perin

tend

ent

(Zon

e III

)

Dire

ctor

of

Ath

letic

s

Dire

ctor

of

Stu

dent

Sup

port

Serv

ices

Dire

ctor

of

Fina

ncia

l Se

rvic

es

Com

ptro

ller

Coo

rdin

ator

of P

urch

asin

g

Dire

ctor

of

Faci

litie

s

Dire

ctor

of

Food

Ser

vice

s

Dire

ctor

of

Pub

lic S

afet

yan

d C

usto

dial

Dire

ctor

of

Hum

an

Res

ourc

es

Coo

rdin

ator

of B

enef

its

Publ

ic In

form

atio

n O

ffice

r

Spec

ial A

ssis

tant

fo

r C

urric

ulum

In

stru

ctio

n an

d Te

achi

ng

Dire

ctor

of

Acc

ount

abilit

y an

dFe

dera

l Pro

gram

s

Dire

ctor

of

Com

mun

ity

Dev

elop

men

t

Dire

ctor

of

Info

rmat

ion

Tech

nolo

gy

Dire

ctor

of

Inst

ruct

iona

lIm

prov

emen

t

Dire

ctor

of

Sta

ff D

evel

opm

ent

Sprin

gfie

ld P

ublic

Sch

ools

2005

-200

6

Coo

rdin

ator

of

Tran

spor

tatio

n

Dire

ctor

of

Spe

cial

Edu

catio

n/C

ompe

nsat

ory

Svc.

Sum

mer

Sch

ool

CH

S an

d al

lFe

eder

Sch

ools

Exe

cutiv

e D

irect

or

of Q

ualit

y &

D

evel

opm

ent

Rev

ised

Feb

ruar

y 20

06

12

This page intentionally left blank.

Financial Section

13

INDEPENDENT AUDITOR’S REPORT

Board of Education The School District of Springfield R-12 Springfield, Missouri We have audited the accompanying financial statements of the governmental activities, each major fund and the remaining fund information of The School District of Springfield R-12 as of and for the year ended June 30, 2006, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of The School District of Springfield R-12’s management. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the government activities, each major fund, and the remaining fund information of The School District of Springfield R-12 as of June 30, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated August 18, 2006, on our consideration of The School District of Springfield R-12’s internal control over financial reporting and on our tests of its compliance with certain provision of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management’s discussion and analysis on pages 15 through 22 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted inn the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The budgetary comparison information on pages 51 through 53 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects, in relation to the basic financial statements taken as a whole.

14

INDEPENDENT AUDITOR’S REPORT CONTINUED

Our audit was conducted for the purpose of forming opinions on the basic financial statements that collectively comprise the School District of Springfield R-12’s basic financial statements. The introductory section and statistical information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Daniel Jones & Associates Certified Public Accountants August 18, 2006

15

The School District of Springfield R-12 Springfield, Missouri

Management's Discussion and Analysis Year Ended June 30, 2006

(Unaudited)

The Management's Discussion and Analysis (MD&A) of The School District of Springfield R-12 (District) provides an overview and analysis of the District's financial activities for the fiscal year ended June 30, 2006. The intent of the MD&A is to look at the District's financial performance as a whole. Readers should also review the financial statements found in the Financial Section and the notes thereto to enhance their understanding of the District's financial performance.

The MD&A is an element of Required Supplementary Information specified in the Governmental Accounting Standards Board (GASB) Statement No. 34 - Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments issued in 1999. Certain comparative information between the current fiscal year ended June 30, 2006 (2006) and the prior fiscal year ended June 30, 2005 (2005) is required to be presented in the MD&A and is included herein.

Financial Highlights

Key financial highlights for the fiscal year ended June 30, 2006 include:

• The total assets of the District exceeded the liabilities by $74,449,431. Of this amount, $22,113,178 (unrestricted net assets) may be used to meet the District’s ongoing obligations.

• The District’s total net assets increased by $13,558,626 with total assets increasing $97,850,779 and total liabilities increasing $84,292,153. The majority of the increase in assets and liabilities was due to the issuance of a $96,500,000 general obligation bond, approved by the vote of the public in April 2006.

• The governmental funds reported combined ending fund balances of $164,430,000, an increase of $85,597,817 from the prior year. The increase was primarily due to the $96.5 million bond, offset by increased operating costs.

• Of the $164.430, 000 in fund balance, $20,157,204 is unreserved fund balance and is available for spending at the District’s discretion. The unreserved fund balance for the General Fund was $18,466,199, an increase of $2,019,482 over the prior year. The Teachers’ Fund, as required by statute, had a zero fund balance. The unreserved fund balance for the General Fund represents 11.3% of the total expenditures for these two funds.

• The difference between the changes in governmental activities and the governmental funds reflects the difference in the accrual basis of accounting and the modified-accrual basis. Some of the significant differences are capitalization and depreciation of fixed assets, method of reporting payments of bond principal and revenue recognition.

• Program revenues made up 53% of the total revenues. General revenues made up the balance. Program revenues covered 56% of the program expenditures leaving 44% to be covered by general revenues.

• In June 2004, a levy was passed by a vote of the public resulting in an increase to the operating levy of $.15 for 2005 and an additional $.10 for 2006. Due to property tax reassessments, resulting in higher than anticipated assessed valuations, the District elected to voluntarily rollback the operating levy from $3.1435 to $3.0003.

• A 3.5% cost of living increase was applied to employee salaries for 2006.

16

THE SCHOOL DISTRICT OF SPRINGFIELD R-12 MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2006

Overview of the Financial Statements

The District's basic financial statements consist of a series of financial statements and the associated notes to those statements. The statements are organized so the reader can understand the operations of the District as a whole, i.e., an entire operating entity. The "Basic Financial Statements" section includes government-wide financial statements, fund financial statements and notes to financial statements.

The government-wide financial statements, consisting of the Statement of Net Assets and the Statement of Activities provide highly consolidated financial information and render a government-wide perspective of the District's financial condition. They present an aggregate view of the District's finances. These statements seek to address the matter of whether the District is better financially this year or is it worse than the prior year. These statements include all assets and liabilities using the accrual basis of accounting used by most private-sector enterprises. The accrual basis takes into account all of the District's current year revenues and expenses regardless of when paid or received.

The changes which are discussed in this MD&A may be financial or non-financial in nature. Non-financial factors which may have an impact on the District's financial condition include increases in or erosion of the property or sales tax base within Springfield, facilities maintenance and condition, mandated educational programs for which little or no funding is provided, or other external factors.

To provide more in-depth reporting of the District's financial position and changes in financial position, fund basis financial information is presented in the "Fund Financial Statements" section. These fund financial statements, which should be familiar to those who have read previous governmental financial statements, report governmental activities on more of a current rather than long-term basis, indicating sources and uses of funding, as well as sources available for spending in future periods.

Fund financial statements also provide more in-depth data on the District's most significant funds, the General Fund, Teachers' Fund, Debt Service Fund and Capital Projects Fund. These funds are considered "major funds" under GASB Statement No. 34. A reconciliation of the relationship between governmental activities reported in the government-wide financial statements and the governmental funds reported in the fund financial statements is included in the financial statements.

Relationship between Government-wide and Fund based Financial Statements Fund Financial Statements

Government-wide

Statements Governmental Funds Proprietary Funds Fiduciary Funds Definition Incorporates all

funds except fiduciary funds

Funds generally used to account for tax supported activities

Funds for activities that operate similar to private businesses and funds for services furnished by a department of the District to other departments on a cost reimbursement basis

Funds used to report assets held on behalf of other entities

Basis of accounting

Accrual Modified accrual Accrual Accrual

Measurement focus

Economic resources

Current financial resources Economic resources Economic resources

Financial Statements

● Statement of net assets ● Statement of activities

● Balance Sheet ● Statement of revenues, expenditures, and changes in fund balances ● Budgetary Comparison Schedule for the General Fund and the major special revenue funds

● Statement of net assets ● Statement of revenues, expenses, and changes in fund net assets ● Statement of cash flows

● Statement of fiduciary net assets ● Statement of changes in fiduciary net assets

17



The remaining financial statements of the proprietary fund and the fiduciary funds present financial information relative to the internal service fund, which accounts for the self-insured medical plan, and the fiduciary fund assets held by the District on behalf of employees, private organizations or other governments in a position of trust. Fiduciary funds are excluded from the government-wide financial statements because the assets are not available for District operations.

The notes to the financial statements are provided to enhance the presentation of the District’s financial performance.

Government-Wide Financial Analysis

The June 30, 2006 net assets invested in capital assets, net of related debt makes up 15.5% of the District’s net assets is comprised of its investment in capital assets less any related outstanding debt used to acquire those assets. These assets include land, buildings and improvements, vehicles, furniture and office equipment and construction in progress. The District uses these assets to provide services to its students, teachers, administrators and citizens; consequently, these assets are not available for future spending.

2006 2005 ASSETS Current assets $ 211,257,807 $ 131,203,489 Capital assets 141,416,811 123,620,353

Total assets 352,674,618 254,823,842

LIABILITIES Current liabilities 51,473,065 59,508,871 Long-term liabilities 226,752,127 134,424,166

Total liabilities 278,225,192 193,933,037

NET ASSETS Invested in capital assets, net of related debt 11,562,995 11,462,689 Restricted for Debt Service 40,773,258 15,259,995 Unrestricted 22,113,173 34,168,121

Total net assets $ 74,449,426 $ 60,890,805

The District’s 2006 investment in capital assets, net of related debt was $11,562,995. Although the District’s investment in its capital assets is reported net of debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the District’s 2006 net assets, 54.8%, represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net assets, $22,113,175 or 29.7%, may be used to meet the District’s ongoing obligations to citizens and creditors. As noted above, the District’s net assets increased $13,558,621 over the prior year. This increase is largely contributable to a $6.8 million increase in property tax revenue due to reassessment of property values and a $5.4 million increase in interest earnings due to increased interest rates.

Governmental Activities

The following table highlights the District’s revenues and expenses for the fiscal years end June 30, 2006 and 2005. These two components are netted to determine the change in net assets. This table utilizes the full accrual method of accounting.

18



Revenue is further divided into two major components, program revenues and general revenues. Program revenues are defined as charges for services, operating and capital grants and contributions. General revenues include taxes and entitlements not restricted to specific programs.

Expenses are divided into major components of governmental activities. The largest expenses are in instruction, administration, transportation and food service.

2006 2005 Revenues

Program revenues Charges for services $ 113,750,419 $ 11,985,726 Operating grants and contributions 43,444,677 40,661,231 Capital grants and contributions 502,651 369,314

General revenues Property taxes 91,397,982 84,566,332 Sales taxes, Prop C 19,420,304 18,716,565 Other taxes 3,188,711 3,370,197 Federal and state grants not restricted to specific

programs 14,662,875 20,384,984 Other 10,274,115 4,521,132 Total revenues 296,641,734 184,575,481

Expenses Instruction 116,144,770 90,553,582 Instructional staff support 24,365,987 24,975,328 Administration 10,628,258 9,177,955 Business and central office support services 5,931,517 5,508,728 Operation of plant 17,283,638 17,330,222 Security services 1,347,188 1,294,892 Transportation 6,237,265 6,115,145 Food services 8,556,074 7,618,337 Community services 1,574,277 1,307,368 Facilities acquisition and construction 80,219,599 9,989,266 Interest and fees 10,794,540 7,083,544

Total expenses 283,083,113 180,954,367

Change in net assets 13,558,621 3,621,114 Net assets, beginning of year 60,890,805 57,269,691 Net assets, end of year 74,449,426 $ 60,890,805

As reflected above, the expenses of the District’s governmental activities are not all borne by the taxpayers of Springfield, Missouri. Of the $283,083,113 in expenses, $113,750,419 (40.2%) was paid by individuals who used or benefited from the services (i.e. school lunches, bonds) and $43,444,677 (15.3%) was paid through various federal and state grants.

19



The table below shows the total cost of programs and the net cost of these programs (after deducting charges for services and grant revenue) of the various categories of expenses for the years ended June 30, 2006 and 2005. The "net cost" presentation allows District taxpayers and others to determine the remaining cost of the various categories which were borne by them or paid from other general revenues, and allows them the opportunity to assess the cost of each of these functions in comparison to the perceived benefits received.

2006 2005

Total Cost of

Programs Net Cost of Programs

Total Cost of Programs

Net Cost of Programs

Instruction $ 116,144,770 $ 80,147,038 $ 90,553,582 $ 54,634,446 Instructional staff support 24,365,987 19,758,973 24,975,328 22,294,556 Administration 10,628,258 10,628,258 9,177,955 9,177,955 Business and central office

support services 5,931,517 5,711,819 5,508,728 5,447,631 Operation of plant 17,283,638 17,046,892 17,330,222 17,195,349 Security services 1,347,188 1,321,160 1,294,892 1,287,445 Transportation 6,237,265 3,193,773 6,115,145 3,570,737 Food services 8,556,074 (93,891) 7,618,337 (200,557) Community services 1,574,277 718,216 1,307,368 478,702 Facilities acquisition and

construction 80,219,599 (17,130,131) 9,989,266 9,989,266 Interest and fees 10,794,540 4,083,259 7,083,544 4,062,566 Total $ 283,083,113 $ 125,385,366 $ 180,954,367 $ 127,938,096

Governmental Funds Financial Analysis

The District uses funds to control and manage money for particular purposes (e.g., dedicated taxes and bond proceeds). The fund basis financial statements allow the District to demonstrate its stewardship over and accountability for resources provided by taxpayers and other entities. These statements also allow the reader to obtain more insight into the financial workings of the District, and assess further the District's financial health.

Fund Balances

The District completed the fiscal year ended June 30, 2006 with a combined fund balance for governmental funds of $164,430,000, an increase of $85,597,817 in comparison to the prior year. The increase was primarily due to a $96.5 million bond issue, offset by increased operating costs.

The General Fund is the chief operating fund of the District. For the year ended June 30, 2006, the fund balance of the General Fund increased by $2,717,800. Key factors contributing to the increase were food services with a fund balance contribution of a little over $300,000, a decision to maintain an additional $975,000 in M&M surtax in the general fund, an increase in interest earnings of $467,000 due to increased interest rates and additional property tax revenues due to increased assessed valuations offset by increased operating costs.

The fund balance of the General Fund includes a reserve for encumbrances of $1,250,622. In addition, $1,691,005 is designated for student activities. The $40,275,977 fund balance of the Debt Service Fund is legally restricted for payment of bond principal, interest and related fees. Of the $102,746,197 fund balance in the Capital Projects Fund, $101,682,318 or 99% is restricted for bond projects.

20



Revenues and Expenditures

The major source of local revenue for operations and debt service is local property taxes amounting to $87,914,688. This amount is derived from the District's 2006 operating levy of $3.0003 and the debt service levy of $.33 for a total levy of $3.3303. Other significant local revenues are $19,420,304 from sales tax, $6,011,080 from M&M surtax (commercial property), food service revenues of $4,158,109 and student activity revenues of $4,221,285.

County revenue of $2,398,836 is derived primarily from county fine receipts and state assessed utilities taxes.

The largest component of state funding is provided by the Missouri state foundation formula, which declined from the previous year by $471,839 to $19,816,308. Other significant state revenues are:

At-risk students program $ 9,244,360 Exceptional pupil, early childhood, remedial reading and gifted aid $ 7,050,640 State transportation aid $ 2,391,295 Cigarette tax $ 618,342 Missouri free textbook aid (foreign insurance) $ 2,267,999

Title I funding of approximately $6 million continues to be the largest federal revenue source. The Title I and Safe Schools Healthy Students programs are the only major federal programs that are fully funded. Federal food services reimbursements amounted to approximately $4.4 million for 2006 and P.L. 94-142 special education funds totaled approximately $5.5 million. All other federal revenues are designated for special programs, such as improving teacher quality, comprehensive school reform, safe schools, drug free education, instructional improvement and various other directed grants.

Total governmental funds expenditures were $214,698,246 for the 2006. The General Fund accounts for $85,791,881 or 40.0% of the total expenditures. The Special Revenue (Teachers') Fund, accounts for $93,087,789 or 43.4% of the expenditures and consists of certificated (teachers') salaries and insurance benefits. Debt Service Fund expenditures of $22,205,955 are for principal and interest payments on general obligation bonds. Capital Projects Fund expenditures for capital equipment and facility repairs and construction projects amounted to $13,612,621, of which $6,661,179 were bond funded projects.

The following table summarizes the governmental fund revenues and expenditures for the years ended June 30, 2006 and 2005.

Revenue FY2006 FY2005 Expenditures FY2006 FY2005

Local $ 132,813,156 $ 119,065,468 Instruction $ 105,949,234 $ 96,940,678County 2,398,836 2,504,654 Support services 73,255,990 71,156,586

State 43,269,320 41,960,209 Acquisition and

construction 10,852,879 21,036,967Federal 21,210,092 19,818,833 Debt service 23,067,229 9,408,044Other 104,147 128,863 Community services 1,572,914 1,306,326 Total Revenue $ 199,795,551 $ 183,478,027 Total Expenditures $ 214,698,246 $ 199,848,601

21



General Fund Budgetary Highlights

Over the course of the year, the School Board revises its budget to take into consideration expected changes in revenues or expenditures. Missouri Statutes for public school finance, Section 67.010, RSMo., require a budget amendment if anticipated expenditures are in excess of budgetary goals. The original budget was adopted on June 28, 2005 and the final budget amendment was adopted on June 20, 2006.

A schedule showing the General Fund’s original budget and the final budget compared with actual operating results is provided in the Required Supplementary Information section of this report.

The General Fund's final budgeted revenues reflect an increase of $3.2 million or 3.0% over the original budgeted revenues. The General Fund's final budgeted expenditures reflect an increase of $3.0 million or 3.5% over the original budgeted expenditures.

Total actual revenues were less than the total budgeted revenues by $1,496,800 or 1.4%. Total actual expenditures were less than the total budgeted expenditures by $1,608,119 or 1.8%.

Capital Assets and Debt Administration

Capital Assets

At June 30, 2006, the District had $141,416,811 (net of accumulated depreciation) invested in a broad range of capital assets, including land, buildings, construction in progress, furniture, buses and vehicles, library collections, textbook adoptions, computers, and other equipment. Increases during the year represent additions to those categories, while decreases represent retirements of assets during the year and depreciation for the year.

During the current fiscal year, $22,910,058 of depreciable assets was capitalized as additions, including $10.9 million for district-wide air conditioning projects, $2.5 million for textbooks and $3.4 million in equipment. Disposals totaling $7,475,473 included the retirement of old equipment and textbooks. Depreciation for the year amounted to $10,326,273 on buildings, vehicles, buses, equipment, library collections and textbooks adoptions.

Additional information of the District's capital assets and construction commitments can be found in the Notes to Accompanying Financial Statements.

Long-term Debt

At June 30, 2006, the District had outstanding general obligation bonded indebtedness of $229,253,852.

The District received a current credit rating of AAA from Standard & Poors for bonds issued with a Municipal Bond Insurance policy and a rating of AA+ when participating in the Missouri Direct Deposit Program without a Municipal Bond Insurance policy. The District's current underlying rating is AA-. Ratings on the bond issues from 1992 to 2006 range from AA to AAA.

State statutes limit the amount of general obligation debt a school district may issue to 15% of the assessed valuation. The debt limitation of $403,155,881 at June 30, 2006 is an increase of $37,564,917 over the June 30, 2005 debt limitation.

The District also incurs obligations for compensated absences and claims associated with the self insured worker's compensation program. At June 30, 2006, these obligations totaled $2,589,682 of which the long-term portion was $861,569.

Additional information of the District's long-term debt can be found in the Notes to Accompanying Financial Statements.

22



Economic Factors and Next Year’s Budget

The Missouri state legislature adopted a new school adopted a new school funding formula in 2005 that will be implemented in July 2006. The state funding for the year ending June 30, 2007 is expected to increase $2 million over 2006.

At the time these financial statements were prepared, the district was aware of the following impacts on the 2006-2007 budget:

• The maximum authorized operating levy available to the District is $3.1436. Due to increases in assessed values the District has elected to roll back the levy by $0.0980 to $3.0456

• In April 2006, an increase to the debt service levy of $0.18 was approved by vote of the public, raising the debt service levy to $0.51.

• The $96.5 million general obligation bond will be used to add air conditioning at 18 schools, provide new science/technology labs for 3 high schools and expand and upgrade 9 schools.

• A cost of living adjustment (COLA) of 2.5% for salaries was included in the budget.

• Due to rising gas and energy costs, an additional $904,500 was included in the budget.

• Compliance with current and new state and federal programs can require additional expenditures that are not included in the budget.

• The District continues to experience substantial increases in employee benefit and liability insurance costs.

Contacting the District's Financial Management

While this Management's Discussion & Analysis is designed to provide a general overview of the financial condition and operations of the District, citizens groups, taxpayers, parents, students, investors or creditors may want further details. To obtain such details, please contact Cherie Alderson, Director of Financial Services at the Kraft Administrative Center business office, 940 N. Jefferson Avenue, Springfield, Missouri 65802 or call (417) 523-0159 during regular office hours, Monday through Friday, 8:00 a.m. to 5:00 p.m., Central Time.

Basic Financial Statements

23

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Net Assets

As of June 30, 2006

Governmental Activities Assets

Cash and cash equivalents 26,477$ Investments 57,831,478 Receivables: Taxes, net of allowance for uncollectibles of $641,031 3,414,378 Other local 210,933 State 228,800 Federal 4,016,153 Other 1,297 Investment earnings 146,545 Inventories 446,707 Prepaid Expenses 18,625 Restricted assets: Cash 68,450 Investments 142,688,996 Bond Discount, net of accumulated amortization of $53,734 52,755 Bond Issue Costs, net of accumulated amortization of $1,393,212 2,106,213 Capital Assets, net of accumulated depreciation of $196,971,589 141,416,811

Total assets 352,674,618 Liabilities

Accounts payable 523,859 Accrued interest payable 6,597,665 Accrued payroll and related benefits 21,448,590 Benefit claims payable 1,029,568 Due to State 166,264 Unearned revenue - property taxes 2,527,785 Unearned revenue - other 5,169,663 Bond Premium, net of accumulated amortization of $1,831,493 7,916,558 Compensated absences payable - sick pay benefits: -

Due within one year 100,000 Due in more than one year 901,706

Worker's compensation claims:Due within one year 1,728,113 Due in more than one year 861,569

General obligation bonds payable:Due within one year 4,265,000 Due in more than one year 224,988,852

Total liabilities 278,225,192 Net Assets

Investment in capital assets net of related debt 11,562,995 Restricted for: Debt Service 40,773,258 Unrestricted 22,113,173

Total net assets 74,449,426

Total liabilities and net assets 352,674,618$

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

24

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Activities

For the Year ended June 30, 2006

Net (Expenses) Revenue and Changes in

Program Revenues Net Assets

Functions/Programs ExpensesCharges for

Services

OperatingGrants and

Contributions

Capital Grants and

Contributions District ActivitiesDistrict activities:

Instruction 116,144,770$ 4,917,987$ 30,886,143$ 193,602$ (80,147,038)$ Attendance 1,971,673 - 3,174 - (1,968,499) Guidance 6,884,252 - 403,595 31,420 (6,449,237) Health, Psych Speech and Audio 5,378,002 - 1,493,323 1,727 (3,882,952) Improvement of Instruction 4,703,111 - 2,413,671 56,204 (2,233,236) Professional Development 2,034,156 - 203,900 - (1,830,256) Media Services (Library) 3,394,793 - - - (3,394,793) Board of Education Services 386,663 - - - (386,663) Executive Administration 1,768,111 - - - (1,768,111) Building Level Administration 8,473,484 - - - (8,473,484) Business Central Service 2,887,878 - - - (2,887,878) Operation of Plant 17,283,638 236,746 - - (17,046,892) Security Services 1,347,188 26,028 - - (1,321,160) Pupil Transportation 6,237,265 324,194 2,719,298 - (3,193,773) Food Services 8,556,074 4,184,453 4,465,512 - 93,891 Central Office Support Services 3,043,639 - - 219,698 (2,823,941) Community Services 1,574,277 - 856,061 - (718,216) Facilities Acquisition and Construction 80,219,599 97,349,730 - - 17,130,131 Interest and Fees on Debt 10,794,540 6,711,281 - - (4,083,259) Total District activities 283,083,113 113,750,419 43,444,677 502,651 (125,385,366)

Totals 283,083,113 113,750,419 43,444,677 502,651 (125,385,366)

General revenues: Property taxes, levied for general purposes 82,083,355 Property taxes, levied for debt service 9,314,627 Sales taxes, Prop C 19,420,304 Other local taxes 171,532 Other county taxes 2,398,837 Other state taxes 618,342 Federal, State and County aid not restricted to specific purposes 14,662,875 Unrestricted interest and investment earnings 7,176,548 Change in Self Insurance Fund Assets 3,067,181 Miscellaneous 30,386 Subtotal, general revenues 138,943,987

Changes in net assets 13,558,621

Net assets, July 1, 2005 60,890,805

Net assets, June 30, 2006 74,449,426$


25

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Balance Sheet

Governmental Funds - Modified AccrualAs of June 30, 2006

General FundSpecial Revenue

FundDebt Service

Fund Capital Fund

TotalGovernmental

FundsASSETS

Cash and cash equivalents 23,630$ -$ -$ -$ 23,630$ Investments 34,219,102 7,104,356 - 2,492,868 43,816,326 Receivables: - Taxes, net of allowance for uncollectibles of $641,031 1,747,225 1,328,822 338,331 - 3,414,378 Other local 103,632 78,446 28,855 - 210,933 State - 228,800 - - 228,800 Federal 769,550 3,026,473 - - 3,796,023 Other - - Inventories - - - - - Prepaid Expenses 18,625 - - - 18,625 Restricted assets: Cash - - 41 68,409 68,450 Investments - - 40,157,087 102,531,909 142,688,996

Total Assets 36,881,764 11,766,897 40,524,314 105,093,186 194,266,161

LIABILITIES AND FUND BALANCES

LiabilitiesAccounts payable 429,335 - - 94,524 523,859 Accrued payroll and benefits 10,021,737 10,809,741 4,635 612,477 21,448,590 Due to State 166,264 - - - 166,264 Unearned revenue - property taxes 1,258,533 957,156 243,702 68,394 2,527,785 Unearned revenue - other 3,598,069 - - 1,571,594 5,169,663

Total Liabilities 15,473,938 11,766,897 248,337 2,346,989 29,836,161

Fund Balances:Reserved for: Encumbrances 1,250,622 - - 855,782 2,106,404 Capital improvements - - - 101,682,318 101,682,318 Debt service - - 40,275,977 - 40,275,977 Unreserved, designated for student activities 1,691,005 - - - 1,691,005 Unreserved, undesignated 18,466,199 - - 208,097 18,674,296

Total Fund Balances 21,407,826 - 40,275,977 102,746,197 164,430,000

Total Liabilities and Fund Balances 36,881,764$ 11,766,897$ 40,524,314$ 105,093,186$ 194,266,161$


26

Amounts reported for District activities in the statement of net assets for Governmental activities are different because:

Total fund balance - District funds 164,430,000$

Capital assets used in District activities are not financial resources and therefore arenot reported as assets in District funds.

The cost of capital assets is 338,388,401 Accumulated depreciation is (196,971,590)

141,416,811

Certain federal revenues are not available soon enough to pay for the current periodsexpenditures and therefore are not reported as receivables in the governmental funds 220,130

Property taxes receivable will be collected this year, but are not available soon enough topay for the current period's expenditures, and therefore are deferred in the funds. -

The assets and liabilities of the self insurance fund are included in the governmental 13,136,273 activities in the statement of net assets

Certain liabilities for claims and judgments and compensated absences are recognizedas liabilities in the governmental funds when the amounts are normally expectedto be liquidated with expendable available financial resources

Sick pay benefits (1,001,706) Worker's compensation claims (2,589,682) (3,591,388)

Long-term liabilities, including bonds payable, are not due and payable in the current periodand therefore are not reported as liabilities in the funds.

Bonds payable (229,253,852) Bond premium/discount, net of accumulated amortization (7,863,803) Accrued interest payable on the bonds (6,597,665) Bond issue cost, net of accumulated amortization 2,106,213

(241,609,107)

To consolidate financial statements by deleting Due To/From balances 497,281

Inventories are not included in the governmental activities but are included in the statement ofnet assets. 446,707

To remove interfund balances. (497,277)

Rounding (4) -

Total net assets - District activities 74,449,426$

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Reconciliation of the Balance Sheet - Governmental Funds

with the Statement of Net AssetsJune 30, 2006


27

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds - Modified AccrualFor the Year Ended June 30, 2006


FundDebt Service

Fund Capital Fund

TotalGovernmental

FundsRevenues

70,890,786$ 43,556,348$ 11,292,906$ 7,073,116$ 132,813,156$ County Sources 758,095 1,414,518 226,223 - 2,398,836

25,225,702 17,385,623 488,900 169,095 43,269,320 11,189,470 9,900,140 - 120,482 21,210,092

Other Sources 104,147 - - - 104,147 108,168,200 72,256,629 12,008,029 7,362,693 199,795,551

ExpendituresInstruction 31,475,684 74,355,770 - 117,780 105,949,234 Attendance 1,330,512 637,235 - 3,926 1,971,673 Guidance 2,938,528 3,658,537 - 287,187 6,884,252 Health, Psych Speech & Audio 5,075,810 299,145 - 3,047 5,378,002 Improvement of Instruction 1,644,694 3,050,683 - 7,734 4,703,111 Professional Development 598,593 1,435,563 - - 2,034,156 Media Services 1,443,551 1,951,241 - - 3,394,792 Board of Education Services 386,663 - - - 386,663 Executive Administration 736,265 993,749 - 33,290 1,763,304 Building Level Administration 2,854,210 5,619,029 - - 8,473,239 Business Central Services 2,067,104 - - 668,183 2,735,287 Operation of Plant 16,777,703 - - 131,998 16,909,701 Security Services 1,325,308 - - 21,880 1,347,188 Pupil Transportation 5,253,179 - - 576,987 5,830,166 Food Service 8,399,529 - - 1,288 8,400,817 Central Office Support Services 3,000,334 - - 43,305 3,043,639 Other Supporting Services - - - - - Community Services 484,214 1,086,837 - 1,863 1,572,914 Facilities Acquisition and Construction - - - 10,852,879 10,852,879 Debt Service: Principal - - 15,115,000 - 15,115,000 Interest and Charges - - 7,090,955 861,274 7,952,229 Total Expenditures 85,791,881 93,087,789 22,205,955 13,612,621 214,698,246

Excess (deficiency) of revenues over expenditures 22,376,319 (20,831,160) (10,197,926) (6,249,928) (14,902,695)

Other Financing Sources (Uses): Transfers (20,831,160) 20,831,160 - - - Sale of Bonds - - - 96,500,000 96,500,000 Net Insurance Recovery - - - - - Sale of School Buses - - - - - Sale of Other Property - - - 155,642 155,642 Refunding Bonds - - 4,750,000 - 4,750,000 Trans from other LEAS Non-Handicapped - - - - - Trans from other LEAS for Handicapped - - - - - Trans from other LEAS for ECSE Handicapped - - - - -

Total Other Financing Sources (Uses) (20,831,160) 20,831,160 4,750,000 96,655,642 101,405,642

Net Change in Fund Balances 1,545,159 - (5,447,926) 90,405,714 86,502,947

Fund Balances, July 1, 2005 20,270,517 - 46,221,184 12,340,483 78,832,184 Prior Period Adjustment - Inventory (407,850) - - - (407,850) Adjusted Fund Balance, July 1, 2005 19,862,667 - 46,221,184 12,340,483 78,424,334

Fund Balances, June 30, 2006 21,407,826$ -$ 40,773,258$ 102,746,197$ 164,927,281$

Local Sources

State SourcesFederal Sources

Total Revenues


28

Total net change in fund balances - governmental funds 86,502,947$

Amounts Reported for governmental activities in the statement of activities are different because:

Certain federal revenues will not be collected for several months after the District's fiscal year ends.They are not considered as available revenues in the governmental funds and are not reported as revenues. They are however, recorded as revenue in the statement of activities. 220,130

Capital outlays are reported in the governmental funds as expenditures. In the statement of activitiesthe cost of those assets are allocated over their estimated useful lives as depreciation expense.

Depreciation expense (10,326,274) Capital outlays 31,883,280 21,557,006

Some property taxes will not be collected for several months after the District's fiscal year ends.They are not considered as available revenues in the governmental funds and are instead reportedas unearned revenues. They are not recorded as revenue in the statement of activities. (2,527,785)

Some state and federal grants will not be collected for several months after the District's fiscal year (5,169,663) ends. They are not considered as available revenues in the governmental funds and are insteadreported as unearned revenues. They are not recorded as revenue in the statement of activities.

An internal service fund is used by the district to charge the costs of the self funded healthinsurance program to the individual funds. The net revenue of the activities is reported with governmental activities 3,067,181

Repayment on bond principal is an expenditure in the governmental funds but reduces long term liabilities in the statement of net assets and does not affect the statement of activities. 15,115,000

Interest on long term debt is recorded as an expenditure when it is due on governmental funds. In the statement of activities, however, interest expense is recognized as the interest accrues. (824,004)

The statement of activities includes amortization of bond issue costs, discounts and premiums,which is not recognized in the governmental funds. (2,018,307)

Certain liabilities for claims and judgments and compensated absences are recognized as expenditures in the governmental funds when the amounts are to be liquidated with expendableavailable financial resources. However, they are reported as expenses in the statement of activitieswhen the liability is incurred.

Sick Pay 43,774 Workers' compensation claims (1,008,330) (964,556)

Fair value adjustment is not included on governmental funds. (110,471)

Change in inventory is not included on governmental funds. (38,857)

Bond proceeds are recorded as revenues in the governmental expenditures. They are not, however, recorded as revenue in the statement of activities.

Bond refinancing (4,750,000) New bond issuance (96,500,000) (101,250,000)

Change in net assets of governmental activities 13,558,621$

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances - Governmental Funds with the Statement of ActivitiesFor the Year Ended June 30, 2006


29

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Net Assets

Proprietary FundAs of June 30, 2006

ASSETS

Current AssetsCash and cash equivalents 2,847$ Investments 14,015,152 Other receivables 1,297 Investments earnings receivable 146,545

Total Current Assets 14,165,841 Total Assets 14,165,841

LIABILITIES

Current LibilitiesBenefit claims payable 1,029,568

Total Current Liabilities 1,029,568 Total Liabilities 1,029,568

NET ASSETS Unrestricted 13,136,273

Total Net Assets 13,136,273$

Self Insurance Fund


30

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Revenues, Expenses, and Changes in Fund Net Assets

Proprietary FundFor the Year Ended June 30, 2006

Operating revenuesContributions- Employees 4,357,735$ Contributions- District 12,623,499 Insurance Reimbursement 39,590

Total Operating Revenues 17,020,824

Operating expensesBenefit Claims 13,540,282 Insurance Premiums 538,405 Administration 396,391

Total Operating Expenses 14,475,078

Operating income (loss) 2,545,746

Nonoperating revenues (expenses) Interest income 521,435

Change in net assets 3,067,181

Total net assets, July 1, 2005 10,069,092

Total net assets, June 30, 2006 13,136,273$

Self Insurance Fund


31

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Cash Flows

Proprietary FundAs of June 30, 2006

Cash Flows from Operating Activities Receipts from Employees 4,357,735$ Receipts from the District 12,623,499 Receipts from Insurance Carriers 39,590 Payments to health care service providers (13,567,945) Payments to insurance carriers (538,405) Payments to administration service providers (396,391) Net cash provided by operating activities 2,518,083

Cash Flows from Investing Activities Investment Earnings Received 521,435 Purchase of Investments (11,372,112)

Net cash from investing activities (10,850,676)

Net decrease in cash and cash equivalents (8,332,594)

Cash and cash equivalents - Beginning 8,335,441 Cash and cash equivalents - Ending 2,847$

Reconciliation of operating income to net cash provided by operating activities: Operating income 2,545,746

Change in other receivables - Change in benefits payable liability (27,663)

Net cash provided by operating activities 2,518,083$

Self InsuranceFund


32

Private-PurposeTrust Fund

ASSETSCash 2,000$ Investments 1,971,651

Total Assets 1,973,651

LIABILITIESAccounts Payable 10,314 Accrued Payroll and Benefits 39,265 Total Liabilities 49,579

NET ASSETSHeld in trust for private purposes 1,924,072

Total Net Assets 1,924,072$

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Fiduciary Net Assets

Fiduciary FundsAs of June 30, 2006


33

Private-PurposeTrust Fund

AdditionsCharges for services 694,994$ Program Funding 505,438 Interest Income 95,298

Total additions 1,295,730

DeductionsPrograms

Missouri Reading Initiative 1,263,069 Underprivileged School Children's Fund 74,242

Total deductions 1,337,311

Change in Net Assets (41,581)

Net Assets, July 1, 2005 1,965,653

Net Assets, June 30, 2006 1,924,072$

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Statement of Changes in Fiduciary Net Assets

Fiduciary FundsYear Ended June 30, 2006


34

THE SCHOOL DISTRICT OF SPRINGFIELD R-12 NOTES TO BASIC FINANCIAL STATEMENTS


I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of The School District of Springfield R-12 have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Following are the more significant of the District’s accounting policies. The School District of Springfield R-12 (the District) was established under the Statutes of the State of Missouri. The District operates as a "six director" district (with seven members of the Board of Education) as described in RSMo Chapter 162.

Reporting Entity

In evaluating how to define the District, for financial reporting purposes, management has considered all potential component units. A decision whether to include a potential component unit in the reporting entity would be made by applying criteria set forth in GAAP. The basic, but not the only, criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations and accountability for fiscal matters. The other criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the District is able to exercise oversight responsibilities. Based upon the application of these criteria, the District has determined that no other outside agency meets the above criteria and therefore, no other agency has been included as a component unit in the District’s financial statements. In addition, the District is not aware of any entity which would exercise such oversight that would result in the District being considered a component unit of the entity.

Basis of Presentation The District’s basic financial statements consist of government-wide statements, including a statement of net assets and a statement of activities, and fund financial statements which provide a more detailed level of financial information.

Government-Wide Financial Statements

The statement of Net Assets and the Statement of Activities display information about the District, the primary government, as a whole. These statements include the non-fiduciary financial activities of the District. The effect of interfund activity of the internal service fund has been eliminated from these statements. These statements report those activities of the District that are governmental (i.e. generally supported by taxes and intergovernmental revenues). Fiduciary funds are not included in the government-wide financial statements.

The statement of net assets presents the financial position of the District’s governmental activities at year-end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the District’s governmental activities. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions (including related investment earnings) that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues of the District. The comparison of direct expenses with program revenues identifies the extent to which each governmental function is self-financing or draws from the general revenues.

35



I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Fund Financial Statements

The District maintains fund accounting in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the District at a more detailed level. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds. The focus of governmental fund financial statements is on major funds. Each major fund is presented in a single column. The fiduciary funds are reported by fiduciary fund type. Governmental Funds

Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they are to be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and liabilities is reported as fund balance. The following are the District’s principal governmental funds:

General (Incidental) Fund: Accounts for general activities of the District.

Special Revenue (Teachers') Fund: Accounts for expenditures for certificated employees involved in administration and instruction. It includes revenues restricted by the State for the payment of certificated salaries.

Debt Service Fund: Accounts for the accumulation of resources for, and the payment of, principal, interest and fiscal charges on general long-term debt.

Capital Projects Fund: Accounts for the proceeds of long-term debt and other revenues designated for acquisition or construction of major capital assets and other capital outlay purchases required by law or the State of Missouri Department of Elementary and Secondary Education (DESE) regulations to be reported in the Capital Projects Fund.

Proprietary Funds

Proprietary funds include enterprise and internal service funds. Enterprise funds account for ongoing organizations and activities, which are similar to those often found in the private sector. The measurement focus is upon the determination of change in net assets. Internal service funds are established to account for services furnished by a department of the District to other departments on a cost reimbursement basis. The District’s only proprietary fund is the following internal service fund:

Self-Insurance Health Fund: Accounts for transactions of the District’s self-funded medical plan.

Fiduciary Funds

Fiduciary fund reporting focuses on net assets and changes in net assets. The fiduciary fund category is split into four classifications: pension or other employee benefit trust funds, investment trust funds, private-purpose trust funds and agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of changes in net assets. The District has no agency funds. The District’s only fiduciary fund is the following private-purpose trust fund:

36




Private-Purpose Trust Fund: Accounts for activities that are not District programs but are programs sponsored by private organizations or other governments. Although the District serves as fiscal agent, the funds received and held under these programs are not available to support the District’s activities and programs but are received and held for the benefit of individuals, private organization or other governments participating in the sponsored programs. The programs accounted for within this fund include:

Missouri Reading Initiative Underprivileged School Children’s Fund

Measurement Focus/Basis of Accounting

The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The measurement focus establishes the basis of accounting. The basis of accounting determines when transactions are recorded in the financial records and reported in the financial statements. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, recording of deferred revenue, presentation of expenses versus expenditures, recording of long-term liabilities. Governmental fund financial statements include a reconciliation with brief explanations to better identify the relationship between the government-wide financial statements and the governmental fund financial statements.

The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when the related liability is incurred, regardless of the timing of related cash flows.

The governmental fund financial statements are prepared using a flow of current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The District considers revenues to be available if they are collected within 60 days after the end of the current fiscal period. Property taxes, state and federal grants and interest associated with the current fiscal period are all considered to be susceptible to accrual. Expenditures are recorded when the liability is incurred, except for claims and judgments, compensated absences and interest on long-term debt which are recorded when normally expected to be liquidated with expendable available financial resources. Proceeds from issuance of long-term debt are recognized when received and payment of long-term debt principal is reported as an expenditure when paid. Capital asset purchases are recorded as expenditures and depreciation is not recognized.

Nonexchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. Revenues from property taxes are recognized in the period for which the taxes are levied. Revenues from grants, entitlements and donations are recognized when all eligibility requirements imposed by the provider have been satisfied.

37



I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Eligibility requirements include timing requirements, which specify the year the resources are required to be used or the year when use is first permitted, matching requirements and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. On the modified accrual basis, revenues from nonexchange transactions must also be available before they are recognized.

Proprietary funds distinguish between operating revenues and expenses from nonoperating items. Operating revenues and expenses normally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s internal service fund are District and employee contributions. Operating services of this internal service fund include benefit payments, insurance premiums and administrative costs. Investment income is reported as nonoperating revenue.

Cash and Cash Equivalents

The District considers all liquid investments with original maturities of three months or less to be cash equivalents. At June 30, 2006, cash equivalents consisted primarily of certificates of deposits.

Receivables

State and Federal receivables reflect reimbursements due for program grant expenses and outlays incurred but unreimbursed at June 30, 2006.

Inventories

Inventories consist of supplies held for consumption. Inventories are presented in the government-wide financial statements at the lower of cost, determined on a first-in, first-out basis, or market and are expensed when used. Inventories of the governmental funds are presented in the fund financial statements at the lower of cost, determined on a first-in, first-out basis, or market and recorded as expenditures when purchased. Reported inventories are equally offset by a fund balance reserve in the fund financial statements to indicate they are unavailable for appropriation.

Capital Assets

General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in the governmental funds. These assets are reported in the governmental activities column of the government-wide statement of net assets but are not reported in the balance sheet -governmental funds.

Capital assets are recorded at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their estimated fair value as of the date received. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized.

The District does not possess any material amounts of infrastructure capital asset, such as sidewalks and parking lots. Such items are considered to be part of the cost of buildings or other improvable property.

38



I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital assets not being depreciated include land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Since surplus assets are sold for an immaterial amount when declared as no longer needed for public school purposes, no salvage value is taken into consideration for depreciation purposes. Depreciation is computed using the straight-line method over the estimated useful life of the asset. The District has established capitalization thresholds and estimated useful lives as follows:

Description

Capitalization

Threshold

Estimated

Useful Lives in Years Land All --- Construction in Progress $ 100,000 --- Buildings and improvements $ 100,000 20 - 40 Vehicles $ 5,000 3 - 5 Buses $ 5,000 8 Equipment $ 1,000 3 – 15 Library collections All 7 Textbooks Adoption 7

For textbooks, the District capitalizes by the aggregate cost of the textbook adoption. Retirements are recognized when replaced by a new adoption. For library collections, the District capitalizes the aggregate purchases for the year. Retirements are reflected on a first-in/first-out basis. Investments and Cash Pools The District maintains an investment pool that is available for use by all funds except the Debt Service Fund and the bond proceeds portion of the Capital Projects Fund. Debt Service Funds are required by Section 165.011 RSMo. to maintain separate cash and investment accounts. The pool consists of an interest bearing sweep account, certificates of deposit, U. S. Treasury, agency and instrumentality fixed-rate securities and the Missouri Securities Investment Program, an unregulated external investment pool. Each fund’s equity in this pool is included in investments. The District also maintains a pooled checking account for the District’s disbursements. Each fund’s equity in this pool is included in cash. In addition, other cash and investments are separately held by the District’s funds.

Investments in U.S. Treasury, agency and instrumentality obligations with a remaining maturity of one year or less at time of acquisition and in nonnegotiable certificates of deposit are carried at amortized cost. All other investments are carried at fair value. Fair value is determined using quoted market prices for all investments carried at fair value other than equity in the Missouri School District Direct Deposit Program and the Missouri Securities Investment Program, unregulated external investment pools in which participation is voluntary. Fair value of the equity in the Missouri School District Direct Deposit Program and the Missouri Securities Investment Program is the same as the value of the pool shares determined using the fair value of each pool’s underlying investment portfolio.

Investment earnings include interest income and the net change for the year in the fair value of investments carried at fair value. Investment income earned in the pooled accounts is allocated to the participating funds in proportion to the average balances in each fund. Other investment income is assigned to the funds with which the related investment asset is associated.

Unearned Revenue

Unearned revenue represents advances on state and federal grants for which the District has not yet met all of the applicable eligibility requirements.

39




Compensated Absences

It is the District’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Accumulated vacation and sick pay benefits, within limits set by Board of Education policy, which are unused and vested to the employee are payable upon termination. Sick pay is accrued in the government-wide financial statements for the amount of sick pay benefits accumulated at year end. Compensated absences are only reported in the governmental funds once they have matured. A liability for the sick pay benefits is not reported in the governmental funds as the fund liability is not incurred, under the modified accrual basis of accounting, until the period in which the amounts are normally expected to be liquidated.

Bond Issue Costs and Bond Premium/Discount

Bond issue costs are capitalized and amortized using the straight line basis over the number of years the bond issue is outstanding. Bond issue costs, net of accumulated amortization, are reported as an asset in the statement of net assets. Premiums and discounts on bond issues are amortized using the interest method over the number of years the bond issue is outstanding. Bond premiums, net of accumulated amortization, are reported in the statement of net assets as a liability. Bond discounts, net of accumulated amortization, are reported as an asset in the statement of net assets.

Accrued Liabilities and Long-term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements, and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported in the proprietary fund financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, claims and judgments, compensated absences, special termination benefits and contractually required pension contributions that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are normally expected to be paid with expendable available financial resources. Bonds are recognized as a liability in the fund financial statements when due.

Net Assets

Net assets represents the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The District applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.

II. DEPOSITS, INVESTMENTS AND INVESTMENT INCOME

Deposits At June 30, 2006, the carrying value of the District’s deposits was $144,757,574 and the bank balance was $159,236,954. The District’s Deposits included $4,432,000 of certificates of deposits. The certificates of deposits earned $801,837 of interest income during the 2006 fiscal year.

40



II. DEPOSITS, INVESTMENTS AND INVESTMENT INCOME (CONTINUED)

Deposits (Continued) Custodial credit risk is the risk that in the event of a bank failure, a government’s deposits may not be returned to it. The District’s deposit policy for custodial credit risk requires compliance with the provisions of state law. District policy further requires that certificates of deposit collateral securities and all securities which serve as collateral against the deposits of a depository institution must be held in safekeeping at a non-affiliated custodial facility.

State law requires collateralization of all deposits with federal depository insurance; bonds and other obligations of the U.S. Treasury, U.S. agencies or instrumentalities of the state of Missouri; bonds of any city having a population of not less than two thousand, county, school district or special road district of the state of Missouri; bonds of any state, tax anticipation notes issued by any first class county, or a surety bond having an aggregate value at least equal to the amount of the deposits. The balances of the district’s deposits are sufficiently collateralized.

Investments

The District may legally invest in direct obligations of and other obligations guaranteed as to principal by the U.S. Treasury and U. S. agencies and instrumentalities; obligations guaranteed by the full faith and credit of the state of Missouri; repurchase agreement, certificates of deposit; bankers acceptances; and commercial paper. The Missouri Securities Investment Program and the Missouri School District Direct Deposit Program also operate under state law and are restricted to the above investments.

As of June 30, 2006, the District had the following investments and maturities.

Type

Fair Value

Maturity Less Than 1

Year

Maturity 1-5 Years

U.S. Treasury Obligations State and Local Government Series

$30,366,230

$ -

$30,366,230

Certificates of Deposit 4,432,000 - 4,432,000 U.S. Agencies and Instrumentalities Obligations Federal National Mortgage Association bonds 2,002,973 2,002,973 - Federal Home Loan Bank bonds 6,308,145 1,055,400 5,252,745 Federal Home Loan Mortgage Corp. bonds External Investment Pools Missouri Securities Investment Program 10,691,699 10,691,699 - Missouri School District Direct Deposit Program 3,039,491 3,039,491 - Fannie Mae Notes Series 2 990,940 24,375 966,565 Commercial Paper UBS Finance A-1+, P-1 rating - - -

$57,831,478

$16,813,938

$41,017,540

41




Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the District’s investment policy mandates structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations thereby avoiding the need to sell securities on the open market prior to maturity. The investment policy also mandates investing operating funds primarily in shorter-term securities. The maximum maturity allowed under District policy is five years from the date of purchase.

The investments in the Missouri School District Direct Deposit Program (Direct Deposit Program) external investment pool are presented with a maturity of less than one year because they are redeemable every six months based on the general obligation bonds principal and interest debt service requirements. The underlying securities of Rounds 2, 4, 7, 9, 10 and 12 of this program are guaranteed investment contracts maturing as follows:

Fair Value Maturity Date Round 2 $ - December 1, 2016 Round 4 $ - March 1, 2017 Round 7 $ 126,421 March 1, 2018 Round 9 $ 690,203 March 1, 2020 Round 10 $ 848,015 March 1, 2021 Round 12 $ 1,273,352 March 1, 2023

Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. At June 30, 2006, the District’s investments in the Missouri School District Direct Deposit Program external investment pool is rated AAA by Standard & Poor’s. The Missouri Securities Investment Program external investment pool is rated AAAm by Standard & Poor’s.

Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. To minimize custodial credit risk, it is the District’s policy that all securities purchased be perfected in the name of or for the account of the District and be held by a third-party custodian as evidenced by appropriate safekeeping receipts.

Concentration of Credit Risk. As a means of limiting its exposure to losses arising from concentration of investments, the District’s investment policy mandates that the portfolio not have a concentration of assets in specific maturity, specific issuer, or specific class of securities. At a minimum, diversification standards by security type and issuer are established as: a.) U.S. treasuries and securities having principal and/or interest guaranteed by the U.S. Government 100%; b.) collateralized time and demand deposits – 100%; c.) U.S. Government agencies, and government sponsored enterprises, no more than 60%; d.) collateralized repurchase agreements, no more than 50%; e.) U.S. Government agency callable securities, no more than 30%; f.) commercial paper, no more than 30%; and, g.) bankers’ acceptances, no more than 30%.

42




SUMMARY OF CARRYING VALUES

The carrying values of deposits and investments shown above are included in the financial statements at June 30, 2006, as follows:

Carrying value Deposits $ 144,757,574 Investments 57,831,478 $ 202,589,052 Included in the following fund financial statement captions:

Balance Sheet – Government Funds Cash $ 23,630 Investments 43,816,326 Restricted cash 68,450 Restricted investments 142,688,996 Statement of Net Assets – Proprietary Fund Cash and cash equivalents 2,847 Investments 14,015,152 Statement of Fiduciary Net Assets – Private-Purpose Trust Fund Cash 2,000 Investments 1,971,651 $ 202,589,052

Investment Income

Investment income for the year ended June 30, 2006, consisted of interest income of $3,800,573.

III. PROPERTY TAXES

The District’s property tax is levied each year on the assessed value listed as of the prior January 1 for all real and personal property in the District. Taxes are payable on November 1 and become delinquent on December 31. Assessed values are established by the County. The January 1, 2005 assessed value upon which the 2005 levy was based was $2,700,473,892.

The tax levy per $100 of the assessed valuation of tangible taxable property for the calendar year 2005 for purposes of local taxation was as follows:

Incidental Fund $ 1.7042 Teacher’s Fund 1.2961 Debt Service Fund .3300 $ 3.3303

43



IV. CAPITAL ASSETS

Capital assets balances and activity for the year ended June 30, 2006 were as follows:

Balance June 30, 2005

Adjustments to

beginning balance Note XII

Additions

Disposals

Balance June 30, 2006

Nondepreciable capital assets

Land $ 11,812,973 $ - $ 118,508 $ (29,668) $11,901,813

Construction in progress 7,055,344 - 8,854,713 (3,585,746) 12,324,311

Total Nondepreciable

Capital assets

18,868,317

-

8,973,221

(3,615,414)

24,226,124

Depreciable Capital Assets

Buildings and improvements 238,321,757 45,898 15,681,401 (1,186,081) 252,862,975

Vehicles 1,101,991 43,041 142,685 (20,790) 1,266,927

Buses 5,186,339 - 503,893 - 5,690,232

Equipment 31,425,058 (88,939) 3,358,037 (1,815,092) 32,879,064

Library collection 11,057,236 - 699,025 (2,802,667) 8,953,594

Textbooks adoptions 11,635,310 - 2,525,017 (1,650,843) 12,509,484

Total Depreciable Capital Assets

298,727,69

-

22,910,058

(7,475,473)

314,162,276

Less accumulated depreciation

Buildings and improvements (156,267,399) (2,295) (3,989,188) 1,161,989 (159,096,893)

Vehicles (773,287) (32,472) (199,972) 19,179 (986,552)

Buses (4,255,027) - (365,163) - (4,620,190)

Equipment (17,711,357) 40,583 (3,114,043) 1,689,845 (19,094,972)

Library collection (8,793,116) - (870,838) 2,802,667 (6,861,287)

Textbook adoptions (6,175,469) - (1,787,069) 1,650,843 (6,311,695)

Total Accumulated Depreciation

(193,975,655)

5,816

(10,326,273)

7,324,523

(196,971,589)

Total Depreciable Capital Assets, Net

104,752,036

5,816

12,583,785

(150,950)

117,190,687

Total Capital Assets, Net $123,620,353 $ 5,816 $ 21,557,006 $ 3,766,364 $ 141,416,811

44



IV. CAPITAL ASSETS (CONTINUED)

Depreciation expense was charged to governmental functions as follows:

Instruction $ 7,401,273 Student activities 136,328 Student services 43,835 Instructional staff support 1,649,537 Administration 4,808 School Administration Support 246 Business and central services 152,590 Operation of plant 373,937 Transportation 407,099 Food service 155,257 Community Service 1,363 $10,326,273

V. RISK MANAGEMENT

The District is exposed to various risks of loss from tort; theft of, damage to and destruction of assets; business interruption; errors and omissions; natural disasters; employee injuries and illnesses; and employee health, dental and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters other than employee health and dental benefits and worker’s compensation claims. There has been no significant reduction in insurance coverage from the prior year. Settled claims have not exceeded this commercial coverage in any of the three preceding years. Health Fund The District is participating in a self-funded medical plan covering substantially all employees. The plan operates on a fiscal year ended September 30. The results of operations for the plans’ fiscal year, rather than the District’s fiscal year, are used to set premiums. A monthly fee is paid to a third-party administrator, which includes an amount for administrative costs and a premium cost for specific insurance. At June 30, 2006, the maximum liability of the District is $200,000 for each individual covered with a limit of $15.4 million in the aggregate per plan year.

The transactions of the health insurance plan are accounted for in the Self-Insurance Health Fund, an internal service fund. Liabilities are reported in this internal service fund at the time claims are incurred and can be reasonably estimated. At June 30, 2006 the District estimated the claims payable based on historic claims experience and claims reported subsequent to year end. Changes in benefit claims payable during the past two years are as follows:

Year Ended June 30 2006 2005

Benefits claims payable, beginning of year $ 1,057,231 $ 1,283,200 Claims incurred 13,727,085 13,641,202 Claims Paid (13,754,748) (13,867,171) Benefits claims payable, end of year $ 1,029,568 $ 1,057,231

45



V. RISK MANAGEMENT (CONTINUED) Worker’s Compensation Claims The District’s self-insured worker’s compensation program is reported in and claims are paid from the General Fund. A third party administrator processes claims for the District and a monthly fee is paid to the third-party administrator, which includes an amount for administrative costs and a premium cost for specific insurance. At June 30, 2006, the maximum liability of the District is $200,000 for each individual covered and $21.5 million aggregate per plan year.

The worker’s compensation claims liability, as determined by an actuary, is accrued within the government-wide financial statements when the liability is incurred and the amount can be reasonably estimated. The liability for worker’s compensation claims is not reported in the governmental funds as the fund liability is not incurred, under the modified accrual basis of accounting, until the period in which the amounts are normally expected to be liquidated. Changes in the worker’s compensation claims payable during the past two years are as follows:

Year Ended June 30 2006 2005

Worker’s compensation claims payable, beginning of year $ 1,581,352 $ 1,670,214 Claims incurred 2,355,459 913,087 Claims Paid (1,347,129) (1,001,949) Worker’s compensation claims payable, end of year $ 2,589,682 $ 1,581,352

VI. PENSION PLANS

The School District of Springfield R-12 contributes to The Public School Retirement System of Missouri (PSRS), a cost-sharing multiple-employer defined benefit pension plan. PSRS provides retirement and disability benefits to full-time (and certain part-time) certificated employees and death benefits to members and beneficiaries. Positions covered by the Public School Retirement System of Missouri are not covered by Social Security. PSRS benefit provisions are set forth in Chapter 169.010-.141 of the Missouri Revised Statutes. The statutes assign responsibility for the administration of the system to a seven-member Board of Trustees. PSRS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to: The Public School Retirement System of Missouri, P.O. Box 268, Jefferson City, Missouri 65102, or by calling 1-800-392-6848. The School District of Springfield R-12 also contributes to: The Public Education Employee Retirement System of Missouri (PEERS) a cost-sharing multiple-employer defined benefit pension plan. PEERS provides retirement and disability benefits to employees of the District who work 17 or more hours per week who do not contribute to the Public School Retirement System of Missouri. Positions covered by The Public Education Employee Retirement System of Missouri are also covered Benefit provisions are set forth in Chapter 169.600-.715 of the Missouri Revised Statutes. The statutes assign responsibility for the administration of the system to the Board of Trustees of the Public School Retirement System of Missouri. PEERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to: The Public Education Employee Retirement System of Missouri, P. O. Box 268, Jefferson City, Missouri 65102 or by calling 1-800-392-6848.

46



VI. PENSION PLANS (CONTINUED) Members and the District are each required to contribute 11.5% and 5.25% of the member’s annual covered salary to PSRS and PEERS, respectively. Contribution requirements are established and may be changed by the respective Board of Trustees. The District’s contributions to PSRS and PEERS for the years ended June 30, 2006, 2005 and 2004 were 100% of the required contributions and are summarized as follows:

Year Ended June 30,

PSRS

PEERS

Total

2006 $ 10,284,959 $ 1,758,897 $ 12,043,856 2005 9,293,005 1,534,844 10,827,849 2004 8,608,940 1,443,070 10,052,010

VII. LONG-TERM LIABILITIES

Long-term liability balances and activity for the year ended June 30, 2006 were as follows:

Balance June 30,

2005

Additions

Deletions

Balance June 30,

2006

Due Within One Year

Worker’s compensation claims 1,581,352 2,355,459 (1,347,129) 2,589,682 1,728,113

General obligation bonds 143,118,853 101,250,000 (15,115,001) 229,253,852 4,265,000

Unamortized premium on bonds payable

3,973,631

4,584,327

(641,400)

7,916,558

Total long-term Liabilities

$

148,673,836

$

108,189,786

$

(17,103,530)

$

239,760,092

Compensated absences (sick pay benefits) had a balance of $1,001,706 and $1,045,480 for 2006 and 2005 respectively. The amount due within one year is $100,000. Payments on bonds payable are made by the Debt Service Fund. The compensated absences liabilities will be liquidated by the governmental funds from which the related salaries are paid. The worker’s compensation claims will be paid by the General Fund.

General Obligation Bonds

The District issues general obligation (GO) bonds to provide for acquisition and construction of new buildings and improvements, repair and renovation of existing buildings and furnishing and equipping the facilities. In addition, the District issues GO bonds to refund previously issued GO bonds.

47



VII. LONG-TERM LIABILITIES (CONTINUED) Bonds payable at June 30, 2006 consist of:

Original

Issue Amount

Interest Rates

Outstanding Balance

Issue of May 1, 1991 – Series B $ 2,765,000 9.5% $ 2,765,000 Issue of August 15, 1993 – Series B 30,783,852 5.7%-7% 5,233,852 Issue of October 15, 1998 7,000,000 4.45%-4.6% 7,000,000 Issue of May 15, 2000 30,000,000 5.55%-5.85% 30,000,000 Issue of August 15, 2002 12,490,000 3%-5.5% 12,250,000 Issue of December 1, 2002 11,475,000 3%-5% 11,475,000 Issue of May 15, 2003 30,000,000 3.7%-5.25% 30,000,000 Issue of May 1, 2005 29,280,000 4.30% 29,280,000 Issue of December 15, 2005 4,750,000 4.00% 4,750,000 Issue of May 15, 2006 96,500,000 4-5.25% 96,500,000

$

229,253,852

The bonds contain call features exercisable at the District’s option as follows: Issue of May 1, 1991 – Series B Bonds are not subject to optional redemption. Issue of August 15, 1993

The remaining outstanding bonds may be called for redemption and payment prior to maturity at 100% of the principal plus accrued interest to the redemption date. Series B Capital Appreciation Bonds are not subject to optional redemption and mature in the years 2010 to 2012.

Issue of October 15, 1998

All bonds are callable for redemption and payment on March 1, 2008 or thereafter at 100% of principal plus accrued interest to the redemption date.

Issue of May 15, 2000

All bonds are callable for redemption and payment on March 1, 2010 or thereafter at 100% or principal plus accrued interest to the redemption date. The District intends to call these bonds on March 1, 2010. Proceeds from the issue of May 1, 2005 have been placed in escrow to fund this payment.

Issue of August 15, 2002 Bonds are not subject to optional redemption.

48



VII. LONG-TERM LIABILITIES (CONTINUED) Issue of December 1, 2002 Bonds are not subject to optional redemption. Issue of May 15, 2003

All bonds are callable for redemption and payment on March 1, 2013 or thereafter at 100% or principal plus accrued interest to the redemption date.

Issue of May 1, 2005

All bonds are callable for redemption and payment on March 1, 2016 or thereafter at 100% or principal plus accrued interest to the redemption date

Issue of December 15, 2003 Bonds are not subject to optional redemption. Issue of May 15, 2006

All bonds or portions thereof maturing on March 1, 2017, and thereafter will be subject to redemption prior to maturity at the option of the District on March 1, 2016, or thereafter.

The District is participating in the Missouri School District Direct Deposit Program for the June 15, 1996, March 1, 1997, October 15, 1998, May 15, 2000, December 1, 2000, August 15, 2002, December 1, 2002, May 15, 2003 and May 1, 2005 bond issues. This program provides for the District to pledge its state aid, except for state aid for gifted and exceptional pupils and remedial reading, for payment of bonds and for the State of Missouri to directly deposit a portion of the District’s state aid monies into a Missouri School District Direct Deposit Program account. The principal and interest payments on the bonds are paid directly from this account when due. General obligation bond interest expense during 2006 was $7,023,093.

General obligation bond debt service requirements at June 30, 2006 are:

Year Ending

June 30,

Principal

Interest

Total 2007 $ 4,265,000 $ 12,763,386 $ 17,028,386 2008 4,825,000 11,037,363 15,862,363 2009 5,675,000 10,805,487 16,480,487 2010 35,735,093 13,203,543 48,938,636 2011 6,086,312 9,271,076 15,357,388

2012 – 2016 42,242,447 56,722,748 98,965,195 2017 – 2021 66,425,000 55,605,312 122,030,312 2022 - 2023 64,000,000 61,751,150 125,751,150

Totals $ 229,253,852 $ 231,160,065 $ 460,413,917

The table above reflects maturity on call dates for those bonds scheduled to be called and paid from refunding bond issue proceeds held in escrow.

49



VII. LONG-TERM LIABILITIES (CONTINUED) Article VI, Section 26(b), Constitution of Missouri, limits the outstanding amount of authorized general obligation bonds of a District to 15 percent of the assessed valuation of the District. The legal debt margin (excluding state-assessed railroad and utility) of the District at June 30, 2006 was:

Constitutional debt limit $ 403,155,881 General obligation bonds payable (229,253,852) Amount in Debt Service Fund available for payment of principal 40,773,258 Available Legal Debt Margin $ 214,675,287

VIII. INTERFUND TRANSFERS

During 2006, transfers were made to the Capital Projects Fund and Special Revenue Fund from the General Fund. The transfer to the Capital Projects Fund is a guaranteed tax base transfer. The maximum allowable transfer is the greater of the prior year guaranteed tax base or nine percent of the prior June 30 line one entitlement. Transfers are made to the Special Revenue in order to achieve a zero fund balance in the account. The following is a summary of interfund transfers for the year ended June 30, 2006.

Transfers To

Transfers From

Special Revenue

(Teacher’s) Fund

Capital Projects

Fund

Total General (Incidental) Fund $ 20,831,160 $ -0- $ 20,831,160 $ 20,831,160 $ -0- $ 20,831,160

IX. CONTINGENCIES

The District is involved in pending lawsuits and claims on matters containing allegations of discrimination. No provision has been made in the financial statements for any loss that might arise in the event of an unfavorable outcome of these matters. District management believes that such litigation and claims will ultimately be resolved without material financial liability to the District. However, events could occur in the near term that would change this estimate materially.

X. OTHER POSTEMPLOYMENT BENEFITS

In addition to the pension benefits describe in Note VI, the District provides health care benefits to employees who retire, or who have retired, and receive or are eligible to receive benefits under the retirement plans described in Note VI, as mandated by Section 169.590 of the Missouri Revised Statutes. Retirees who submit a signed written request for coverage under the plan within 31 days of the retirement date are eligible for coverage under the plan upon submission and approval of a written request and evidence of good health. Retirees are required to contribute the entire amount of premium necessary for their participation in the plan, which is funded on a pay-as-you-go basis. The amount of expense incurred by the plan for benefits paid to retirees during the year ended June 30, 2006 is not reasonably determinable. Currently 456 people are eligible to participate in the plan.

50



XI. RECONCILIATION TO ANNUAL SECRETARY OF THE BOARD REPORT (ASBR)

Fund Balance The fund balance of the General Fund as reported on the ABSR does not include the reserve for inventories. The General Fund and Total Government Funds fund balances as reported in the Statement of Assets, Liabilities & Fund Balances – Governmental Funds are reconciled to the fund balances reported in the ASBR as follows:

Per Balance Sheet –

Governmental Funds

Reserved for Inventories

Per ASBR

General Fund Fund balance, June 30, 2005 $ 18,690,026 $ (407,850) $ 18,282,176 Total Government Funds Fund balances, June 30, 2005 78,832,183 (407,850) 78,424,333

XII. ADJUSTMENTS TO CAPITAL ASSETS

Fiscal Year 2005 assets have been restated due to a $89,939 reclass in equipment. The $88,939 in equipment was reclassed to buildings and improvements for $45,898 and vehicles for $43,041.

XII. PRIOR PERIOD ADJUSTMENTS

The beginning balance in the General Fund was restated due to a reclassification of inventory for prior year in the amount of $407,850

Required Supplementary Information

51

Variance Actual Over

(Under) FinalOriginal Final Actual Budget

Revenues Local Sources 68,442,312$ 69,260,752$ 70,890,786$ 1,630,034$ County Sources 795,196 795,196 758,095 (37,101) State Sources 25,319,996 25,319,996 25,225,702 (94,294) Federal Sources 11,884,648 14,289,056 11,189,470 (3,099,586) Other Sources - - 104,147 104,147

TOTAL REVENUES 106,442,152 109,665,000 108,168,200 (1,496,800)

Expenditures Instruction 29,335,577 30,516,940 31,475,684 (958,744) Attendance 1,711,322 1,805,447 1,330,512 474,935 Guidance 1,009,005 3,117,046 2,938,528 178,518 Health, Psych Speech & Audio 5,309,031 5,447,956 5,075,810 372,146 Improvement of Instruction 3,469,816 1,579,487 1,644,694 (65,207) Professional Development 277,284 777,292 598,593 178,699 Media Services 2,941,736 1,447,827 1,443,551 4,276 Board of Education Services 527,263 412,263 386,663 25,600 Executive Administration 243,418 775,687 736,265 39,422 Building Level Administration 3,172,466 3,114,515 2,854,210 260,305 Business Central Services 3,694,867 2,154,195 2,067,104 87,091 Operation of Plant 16,460,683 17,290,504 16,777,703 512,801 Security Services 1,348,100 1,347,739 1,325,308 22,431 Pupil Transportation 5,093,013 5,275,974 5,253,179 22,795 Food Service 7,564,214 8,400,000 8,399,529 471 Central Office Support Services 1,884,696 3,420,944 3,000,334 420,610 Other Supporting Services - - - - Community Services 392,166 516,184 484,214 31,970 Capital Outlay - - - - Debt Service: Principal - - - - Interest and Charges - - - - Total Expenditures 84,434,657 87,400,000 85,791,881 1,608,119

Revenues Over (Under) Expenditures 22,007,495 22,265,000 22,376,319 111,319

Other Financing Sources (Uses):Transfers (24,007,355) (19,600,000) (20,831,160) (1,231,160) Sale of Bonds - - - - Net Insurance Recovery - - - - Sale of School Buses - - - - Sale of Other Property - - - - Refunding Bonds - - - - Tuition from other Districts - - - - Area Voc Fees from Other LEAS - - - - Contracted Educational Services - - - - Trans from other LEAS Non-Handi - - - - Facilities Acquisition and Construction - - - - Other (Fin Fees, Etc-Exclude DS) - - - - Total Other Financing - - - - Sources (Uses) (24,007,355) (19,600,000) (20,831,160) (1,231,160)

Net Change in Fund Balances (1,999,860) 2,665,000 1,545,159 (1,119,841)

Fund Balance July 1, 2005 19,862,667 19,862,667 19,862,667 -

Fund Balance June 30, 2006 17,862,807$ 22,527,667$ 21,407,826$ (1,119,841)$

Budgeted Amounts

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Budgetary Comparison Statement (Unaudited)

General FundFor the Year Ended June 30, 2006

52



RevenuesLocal Sources 45,012,448$ 45,012,448$ 43,556,348$ (1,456,100)$ County Sources 1,354,804 1,354,804 1,414,518 59,714 State Sources 17,529,594 18,500,695 17,385,623 (1,115,072) Federal Sources 9,532,053 9,532,053 9,900,140 368,087 Other Sources - - - - TOTAL REVENUES 73,428,899 74,400,000 72,256,629 (2,143,371)

ExpendituresCurrent

Instruction 75,253,444 74,717,908 74,355,770 (362,138) Attendance 476,046 1,067,765 637,235 (430,530) Guidance 3,627,008 3,845,256 3,658,537 (186,719) Health, Psych Speech & Audio 358,278 275,780 299,145 23,365 Improvement of Instruction 3,783,785 2,945,315 3,050,683 105,368 Professional Development 14,832 1,316,483 1,435,563 119,080 Media Services 2,074,975 1,950,024 1,951,241 1,217 Board of Education Services - - - - Executive Administration 273,809 1,020,096 993,749 (26,347) Building Level Administration 5,889,405 5,721,202 5,619,029 (102,173) Business Central Services - - - - Operation of Plant - - - - Security Services - - - - Pupil Transportation - - - - Food Service - - - - Central Office Support Services 181,008 4,341 - (4,341) Other Supporting Services - - - - Community Services 1,208,689 1,135,830 1,086,837 (48,993) Capital Outlay - - - - Debt Service: - Principal - - - - Interest and Charges - - - - Total Expenditures 93,141,279 94,000,000 93,087,789 (912,211)

Revenues Over (Under) Expenditures (19,712,380) (19,600,000) (20,831,160) (1,231,160)

Other Financing Sources (Uses):Transfers 19,712,380 19,600,000 20,831,160 1,231,160 Sale of Bonds - - - - Net Insurance Recovery - - - - Sale of School Buses - - - - Sale of Other Property - - - - Refunding Bonds - - - - Tuition from other Districts - - - - Area Voc Fees from Other LEAS - - - - Contracted Educational Services - - - - Trans from other LEAS Non-Handi - - - - Facilities Acquisition and Construction - - - - Other (Fin Fees, Etc-Exclude DS) - - - - Total Other Financing - - Sources (Uses) 19,712,380 19,600,000 20,831,160 1,231,160

Net Change in Fund Balances - - - -

Fund Balances - June 30, 2005 - - - -

Fund Balances - June 30, 2006 -$ -$ -$ -$

Budgeted Amounts

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Budgetary Comparison Statement (Unaudited)Major Special Revenue Fund - Teachers' Fund

For the Year Ended June 30, 2006

53

NOTE A – BUDGETS Budgets for District governmental funds are prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is the same method of accounting used for the governmental funds. The financial statements include a reconciliation between the modified accrual basis of accounting and the accrual basis of accounting. The original budget is approved by the Board of Education prior to each July 1. The Board of Education amended the budget on various dates throughout the year. Expenditures of a particular fund may not legally exceed the budgeted expenditures for that fund.

54


Other Supplementary Information

55



Revenues Local Sources 10,940,000$ 11,290,000$ 11,292,906$ 2,906$ County Sources 260,000 260,000 226,223 (33,777) State Sources - - 488,900 488,900 Federal Sources - - - - Other Sources - - - -

TOTAL REVENUES 11,200,000 11,550,000 12,008,029 458,029

Expenditures Current

Instruction - - - - Attendance - - - - Guidance - - - - Health, Psych Speech & Audio - - - - Improvement of Instruction - - - - Professional Development - - - - Media Services - - - - Board of Education Services - - - - Executive Administration - - - - Building Level Administration - - - - Business Central Services - - - - Operation of Plant - - - - Security Services - - - - Pupil Transportation - - - - Food Service - - - - Central Office Support Services - - - - Other Supporting Services - - - - Community Services - - - - Capital Outlay - - - - Debt Service: Principal 10,350,000 15,115,000 15,115,000 - Interest and Charges 6,991,315 7,385,000 7,090,955 294,045

Total Expenditures 17,341,315 22,500,000 22,205,955 294,045

Revenues Over (Under) Expenditures (6,141,315) (10,950,000) (10,197,926) 752,074

Other Financing Sources (Uses):Transfers - - - - Sale of Bonds - - - - Net Insurance Recovery - - - - Sale of School Buses - - - - Sale of Other Property - - - - Refunding Bonds - 4,750,000 4,750,000 - Tuition from other Districts - - - - Area Voc Fees from Other LEAS - - - - Contracted Educational Services - - - - Trans from other LEAS Non-Handi - - - - Facilities Acquisition and Construction - - - - Other (Fin Fees, Etc-Exclude DS) - - - -

Total Other Financing - - - - Sources (Uses) - 4,750,000 4,750,000 -

Net Change in Fund Balances (6,141,315) (6,200,000) (5,447,926) 752,074

Fund Balances - June 30, 2005 46,221,184 46,221,184 46,221,184 -

Fund Balances - June 30, 2006 40,079,869$ 40,021,184$ 40,773,258$ 752,074$

Budgeted Amounts

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Budgetary Comparison Statement (Unaudited)

Debt Service FundFor the Year Ended June 30, 2006

56

Budgetary Comparison Statement (Unaudited)



Revenues CollectedLocal Sources 273,901$ 7,454,329$ 7,073,116$ (381,213)$ County Sources - - - - State Sources - - 169,095 169,095 Federal Sources 245,671 245,671 120,482 (125,189) Other Sources - - - -

TOTAL REVENUES 519,572 7,700,000 7,362,693 (337,307)

Expenditures PaidCurrent

Instruction 100,087 118,594 117,780 814 Attendance 2,167 4,231 3,926 305 Guidance 70,280 288,533 287,187 1,346 Health, Psych Speech & Audio 93,535 3,047 3,047 - Improvement of Instruction 10,800 7,734 7,734 - Professional Development - - - - Media Services 946,958 - - - Board of Education Services - - - - Executive Administration 1,500 33,299 33,290 9 Building Level Administration - - - - Business Central Services 2,005,899 681,609 668,183 13,426 Operation of Plant 254,268 138,548 131,998 6,550 Security Services 22,268 22,268 21,880 388 Pupil Transportation 647,900 578,325 576,987 1,338 Food Service - (4,233) 1,288 (5,521) Central Office Support Services 74,100 46,378 43,305 3,073 Other Supporting Services - - - - Community Services 2,212 4,075 1,863 2,212 Capital Outlay 13,060,907 12,577,592 10,852,879 1,724,713 Debt Service: Principal - - - - Interest and Charges - - 861,274 (861,274) Total Expenditures 17,292,881 14,500,000 13,612,621 887,379


Other Financing Sources (Uses):Transfers - - - - Sale of Bonds - 96,500,000 96,500,000 - Net Insurance Recovery - - - - Sale of School Buses - - - - Sale of Other Property - - 155,642 155,642 Refunding Bonds - - - - Tuition from other Districts - - - - Area Voc Fees from Other LEAS - - - - Contracted Educational Services - - - - Trans from other LEAS Non-Handi - - - - Facilities Acquisition and Construction - - - - Other (Fin Fees, Etc-Exclude DS) - - - - Total Other Financing - - Sources (Uses) - 96,500,000 96,655,642 155,642

Net Change in Fund Balances (16,773,309) 89,700,000 90,405,714 705,714

Fund Balances - June 30, 2005 12,340,483 12,340,483 12,340,483 -

Fund Balances - June 30, 2006 (4,432,826)$ 102,040,483$ 102,746,197$ 705,714$

Budgeted Amounts

THE SCHOOL DISTRICT OF SPRINGFIELD R-12

Capital Projects FundFor the Year Ended June 30, 2006

57

Budgetary Comparison Statement (Unaudited)



Revenues Local Sources 124,668,661$ 133,017,529$ 132,813,156$ (204,373)$ County Sources 2,410,000 2,410,000 2,398,836 (11,164) State Sources 42,849,590 43,820,691 43,269,320 (551,371) Federal Sources 21,662,372 24,066,780 21,210,092 (2,856,688) Other Sources - - 104,147 104,147 TOTAL REVENUES 191,590,623 203,315,000 199,795,551 (3,519,449)

Expenditures Current

Instruction 104,689,108 105,353,442 105,949,234 (595,792) Attendance 2,189,535 2,877,443 1,971,673 905,770 Guidance 4,706,293 7,250,835 6,884,252 366,583 Health, Psych Speech & Audio 5,760,844 5,726,783 5,378,002 348,781 Improvement of Instruction 7,264,401 4,532,536 4,703,112 (170,576) Professional Development 292,116 2,093,775 2,034,156 59,620 Media Services 5,963,669 3,397,851 3,394,792 3,059 Board of Education Services 527,263 412,263 386,663 25,600 Executive Administration 518,727 1,829,082 1,763,304 65,778 Building Level Administration 9,061,871 8,835,717 8,473,239 362,478 Business Central Services 5,700,766 2,835,804 2,735,287 100,517 Operation of Plant 16,714,951 17,429,052 16,909,701 519,352 Security Services 1,370,368 1,370,007 1,347,188 22,819 Pupil Transportation 5,740,913 5,854,299 5,830,166 24,133 Food Service 7,564,214 8,395,767 8,400,817 (5,050) Central Office Support Services 2,139,804 3,471,663 3,043,639 428,024 Other Support Services - - - - Community Services 1,603,067 1,656,089 1,572,915 83,175 Capital Outlay 13,060,907 12,577,592 10,852,879 1,724,713 Debt Service: Principal 10,350,000 15,115,000 15,115,000 - Interest and Charges 6,991,315 7,385,000 7,952,229 (567,229) Total Expenditures 212,210,132 218,400,000 214,698,246 3,701,754


Other Financing Sources (Uses):Transfers (4,294,975) - - - Sale of Bonds - 96,500,000 96,500,000 - Net Insurance Recovery - - - - Sale of School Buses - - - - Sale of Other Property - - 155,642 (155,642) Refunding Bonds - 4,750,000 4,750,000 - Tuition from other Districts - - - - Area Voc Fees from Other LEAS - - - - Contracted Educational Services - - - - Trans from other LEAS Non-Handicapped - - - - Facilities Acquisition and Construction - - - - Other (Fin Fees, Etc-Exclude DS) - - - - Total Other Financing Sources (Uses) (4,294,975) 101,250,000 101,405,642 (155,642)

NET CHANGE IN FUND BALANCES (24,914,484) 86,165,000 86,502,947 (337,947)

Fund Balance July 1, 2004 78,424,334 78,424,334 78,424,334 -

Fund Balance June 30, 2005 53,509,850$ 164,589,334$ 164,927,281$ (337,947)$

Budgeted Amounts

THE SCHOOL DISTRICT OF SPRINGFIELD R-12

All Governmental FundsFor the Year Ended June 30, 2006

58

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Summary Schedule of Revenues Collected, Expenditures Paid and Changes in Fund Balance

All Government FundsFor the Year Ended June 30, 2006


Fund Debt Service Fund Capital FundTotal Governmental

Funds

Revenues 108,064,053$ 72,256,629$ 12,008,029$ 7,362,693$ 199,691,404$

Expenditures 85,791,881 93,087,789 22,205,955 13,612,621 214,698,246

Excess of Revenues Collected Over (Under) Expenditures Paid 22,272,172 (20,831,160) (10,197,926) (6,249,928) (15,006,842)

Other Sources (Uses) & Transfers (20,727,013) 20,831,160 4,750,000 96,655,642 101,509,789

Excess of Revenue Collected and Other Sources Over (Under) Expenditures Paid and Other Uses 1,545,159 - (5,447,926) 90,405,714 86,502,947

Fund Balance July 1, 2005 19,862,667 - 46,221,184 12,340,483 78,424,334

Fund Balance June 30, 2006 21,407,826$ -$ 40,773,258$ 102,746,197$ 164,927,281$

59

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Schedule of Revenues By Source per Annual Secretary of the Board Report


General Fund Special Revenue

Fund Debt Service Fund Capital Fund Total Governmental

Funds LOCAL

Current Taxes 44,492,361$ 33,837,888$ 8,623,799$ -$ 86,954,048$ Delinquent Taxes 491,589 373,862 95,190 - 960,641 School District Trust Fund (Prop C) 11,030,868 8,389,435 - - 19,420,303 Financial Institution Tax - - 11,272 102,479 113,751 M&M Surtax 4,000,000 - 595,639 1,415,441 6,011,080 In Lieu of Tax - - 5,725 52,055 57,780 Transportation Fees From Patrons 49,100 - - - 49,100 Earnings on Investments 1,591,847 955,163 1,961,281 5,349,970 9,858,261 Food Service Program 2,156,994 - - - 2,156,994 Food Service Non-Program 2,001,115 - - - 2,001,115 Student Activities 4,221,285 - - - 4,221,285 Other-From Local Sources 855,627 - - 153,171 1,008,798 Other Sources 104,147 - - - 104,147 TOTAL LOCAL 70,994,933 43,556,348 11,292,906 7,073,116 132,917,303

COUNTYFines, Escheat, Etc. - 837,962 - - 837,962 State Assessed Utilities 704,482 535,782 215,843 - 1,456,107 County Stock Insurance Fund 53,613 40,774 10,381 - 104,768 TOTAL COUNTY 758,095 1,414,518 226,224 - 2,398,837

STATEBasic Formula 11,255,770 8,560,538 - - 19,816,308 Transportation 1,358,273 1,033,022 - - 2,391,295 Exceptional Pupil 1,830,560 1,392,217 - - 3,222,777 Early Childhood Special Education 1,454,951 1,106,546 - - 2,561,497 Remedial Reading 223,430 169,927 - - 393,357 Gifted 495,876 377,133 - - 873,009 Free & Reduced Lunch/At Risk 4,973,101 3,782,359 488,900 - 9,244,360 Educational Screening Prog/PAT 453,962 345,253 - - 799,215 Foreign Insurance (Textbook Fund) 2,267,999 - - - 2,267,999 Vocational/Technical Aid 47,752 - - - 47,752 Food Service - State 63,692 - - - 63,692 Fair Share (Cigarette Tax) - 618,342 - - 618,342 Handicapped Census 3,174 - - - 3,174 Safe Schools Initiative Grant 60 286 - - 346 Grant for School Technology - - - 169,095 169,095 Residential Placement/Excess Cost 456,062 - - - 456,062 Select Teachers (STARR) - - - - - Extraordinary Cost-Sp Education 300,473 - - - 300,473 Other State 40,567 - - - 40,567

TOTAL STATE 25,225,702 17,385,623 488,900 169,095 43,269,320

FEDERALMedicaid 521,032 - - - 521,032 ROTC - 53,036 - - 53,036 Ind w/Disability Ed Act (IDEA) 1,493,256 3,964,677 - 55,927 5,513,860 Early Childhood Sp Education - Fed 374,323 390,800 - - 765,123

60

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Schedule of Revenues By Source per Annual Secretary of the Board Report


General Fund Special Revenue

Fund Debt Service Fund Capital Fund Total Governmental

Funds

FEDERAL (Continued)School Lunch Program 3,413,393 - - - 3,413,393 School Breakfast Program 975,672 - - - 975,672 After School Snack Program 12,756 - - - 12,756 Title I -ESEA 1,836,722 4,146,187 - 13,203 5,996,112 Title I, Part C-Migrant Education 183 - - - 183 Title I, Part F-Comp School Reform - - - - - Title V - ESEA 38,670 257,559 - - 296,229 21st Century Comm Learning Centers Grant 435,326 - - - 435,326 Title IV, Drug Free Schools 148,224 38,299 - - 186,523 Title III, ESEA-English Language Acq 81,313 - - - 81,313 Ed for Homeless Children & Youth 1 - - - 1 Title II, Part A, ESEA-Teach & Princ Qual 195,244 1,007,152 - - 1,202,396 Title II, Part D, ESEA Enhanced Ed 40,021 10,556 - 56,204 106,781 Childcare Development Fund Grant 19,620 - - - 19,620 Nat'l & Community Serv Trust Act - - - - - Summer Food Service Program 56,846 - - - 56,846 Impact Aid, Restricted Purpose 78,840 - - - 78,840 Other- Federal 1,468,028 31,874 - (4,852) 1,495,050

TOTAL FEDERAL 11,189,470 9,900,140 - 120,482 21,210,092

OTHER REVENUESale of Bonds - - - 96,500,000 96,500,000

Sale of Other Property - - - 155,642 155,642 Refunding Bonds - - 4,750,000 - 4,750,000 TOTAL OTHER REVENUE - - 4,750,000 96,655,642 101,405,642

TOTAL REVENUES 108,168,200$ 72,256,629$ 16,758,030$ 104,018,335$ 301,201,194$

61

THE SCHOOL DISTRICT OF SPRINGFIELD R-12Schedule of Expenditures by Object per Annual Secretary of the Board Report



Fund Debt Service Fund Capital Fund Total

Salaries 28,730,154$ 84,716,515$ -$ -$ 113,446,669$

Employee Benefits 21,643,743 7,897,695 - - 29,541,438

Purchased Services 14,766,912 473,579 - - 15,240,491

Supplies 19,492,047 - - - 19,492,047

Capital Outlay 1,159,025 - - 12,751,347 13,910,372

Other Objects - - 22,205,955 861,274 23,067,229

Total 85,791,881$ 93,087,789$ 22,205,955$ 13,612,621$ 214,698,246$

62


Statistical Section

63

SCHOOL DISTRICT OF SPRINGFIELD R-12

NET ASSETS BY COMPONENTLAST FIVE FISCAL YEARS

Fiscal Year2002 2003 2004 2005 2006

Governmental funds

(4,292,090)$ 7,054,843$ 15,338,027$ 11,462,689$ 11,562,995$ Restricted 13,173,583 10,320,117 10,175,593 15,259,995 40,773,258 Unrestricted 25,532,427 25,295,236 24,250,451 24,099,029 8,976,900

Total governmental funds net assets 34,413,920 42,670,196 49,764,071 50,821,713 61,313,153

Proprietary fundsUnrestricted 1,289,414 3,116,745 7,505,620 10,069,092 13,136,273

Total proprietary funds net assets 1,289,414 3,116,745 7,505,620 10,069,092 13,136,273

Primary government

(4,292,090) 7,054,843 15,338,027 11,462,689 11,562,995 Restricted 13,173,583 10,320,117 10,175,593 15,259,995 40,773,258 Unrestricted 26,821,841 28,411,981 31,756,071 34,168,121 22,113,173

Total primary government net assets 35,703,334$ 45,786,941$ 57,269,691$ 60,890,805$ 74,449,426$

NOTE: Due to the timing of GASB 34 implementation, only five years of data are presented.

Invested in capital assets, net of related debt

Invested in capital assets, net of related debt

64


CHANGE IN NET ASSETSLAST FIVE FISCAL YEARS

Fiscal Year2002 2003 2004 2005 2006

ExpensesGovernmental funds

Instruction 96,247,521 93,298,085 93,137,970 100,542,848 116,144,770 Administration 8,659,627 8,224,323 8,172,884 8,759,230 10,241,595 Business & central services 4,848,096 6,055,666 6,830,339 5,508,728 5,931,517 Operation of plant 18,372,051 15,772,080 19,461,776 17,330,222 17,283,638 Transportation 5,734,416 5,199,602 5,241,789 6,115,145 6,237,265 Food services 7,361,610 7,889,139 7,217,453 7,618,337 8,556,074 Community services 2,224,620 1,793,955 1,284,940 1,307,368 1,574,277 Interest & fees on long-term debt 5,455,418 5,612,166 6,251,163 7,083,544 10,794,540 Facilities Acquisition and Construction - - - - 80,219,599 Other 18,230,813 19,068,055 20,354,576 26,688,945 26,099,838

Total governmental funds expenses 167,134,172 162,913,071 167,952,890 180,954,367 283,083,113

Proprietary fundsMedical insurance claims & premiums 14,174,505 12,622,639 12,726,132 14,538,905 14,475,078

Total proprietary funds expenses 14,174,505 12,622,639 12,726,132 14,538,905 14,475,078

Total primary government expenses 181,308,677 175,535,710 180,679,022 195,493,272 297,558,191

Program revenuesGovernmental funds

Charges for services 10,202,773 14,199,543 14,508,444 11,985,726 113,750,419 Operating grants and contributions 39,312,218 37,210,820 37,966,974 40,661,231 43,444,677 Capital grants and contributions 3,755,868 1,454,565 394,072 369,314 502,651

Total governmental funds program revenues 53,270,859 52,864,928 52,869,490 53,016,271 157,697,747

Proprietary fundsContributions to medical trust 15,289,539 14,421,061 17,051,004 16,857,531 17,020,824

Total proprietary funds program revenues 15,289,539 14,421,061 17,051,004 16,857,531 17,020,824

Total primary government program revenues 68,560,398 67,285,989 69,920,494 69,873,802 174,718,571

Net (expense)/revenueGovernmental funds (113,863,313) (110,048,143) (115,083,400) (127,938,096) (125,385,366) Proprietary funds 1,115,034 1,798,422 4,324,872 2,318,626 2,545,746

Total primary government net (expense)/revenue (112,748,279) (108,249,721) (110,758,528) (125,619,470) (122,839,620)

65


CHANGE IN NET ASSETS (Continued)LAST FIVE FISCAL YEARS

Fiscal Year2002 2003 2004 2005 2006

General revenuesGovernmental funds

63,917,331$ 65,523,929$ 67,879,134$ 76,126,075$ 82,083,355$ Property taxes levied for debt service 7,351,611 7,479,284 7,741,094 8,440,257 9,314,627 Sales taxes, Prop C 17,758,034 17,402,661 18,106,539 18,716,565 19,420,304 Other taxes 6,430,407 5,866,886 3,887,749 3,370,197 3,188,711

23,824,584 22,405,428 21,020,008 20,384,984 14,662,875 Unrestricted investment earnings 2,061,774 1,300,334 1,127,960 1,773,175 7,176,548 Other 36,110 219,194 254,690 184,485 30,386

Total governmental funds general revenues 121,379,851 120,197,716 120,017,174 128,995,738 135,876,806

Proprietary fundsInvestment earnings 24,788 28,909 64,003 244,846 521,435

Total proprietary funds general revenues 24,788 28,909 64,003 244,846 521,435

Total primary government general revenues 121,404,639 120,226,625 120,081,177 129,240,584 136,398,241

Change in net assetsGovernmental funds 7,516,538 10,149,573 4,933,774 1,057,642 10,491,440 Proprietary funds 1,139,822 1,827,331 4,388,875 2,563,472 3,067,181

Total primary government change in net assets 8,656,360$ 11,976,904$ 9,322,649$ 3,621,114$ 13,558,621$


Federal, state and county aid not restricted to specific purposes

Property taxes levied for general purposes

66


FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS

Fiscal Year1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

General fundReserved 17,566,562$ 17,490,797$ 5,590,477$ 4,141,996$ 2,441,294$ 790,856$ 443,332$ 497,862$ 407,850$ 1,250,622$ Unreserved 11,261,778 19,256,833 21,588,314 19,997,225 25,810,383 22,646,456 21,723,336 23,168,808 18,282,176 20,157,204

Total general fund 28,828,340 36,747,630 27,178,791 24,139,221 28,251,677 23,437,312 22,166,668 23,666,670 18,690,026 21,407,826

All other governmental fundsReserved

Teachers fund - - - - - - - - - - Debt service fund 24,766,111 24,934,799 32,135,830 32,330,625 18,393,801 12,810,326 14,177,579 14,910,603 46,221,183 40,275,977 Capital projects fund 3,992,518 585,602 2,347,000 29,920,607 22,073,895 6,129,324 33,009,054 25,845,619 7,829,175 102,538,100

UnreservedCapital projects fund 3,566,985 2,998,809 1,413,180 4,625,553 - 4,058,969 2,980,700 1,586,933 6,091,799 208,097

Total all other governmental funds 32,325,614 28,519,210 35,896,010 66,876,785 40,467,696 22,998,619 50,167,333 42,343,155 60,142,157 143,022,174

Total governmental funds 61,153,954$ 65,266,840$ 63,074,801$ 91,016,006$ 68,719,373$ 46,435,931$ 72,334,001$ 66,009,825$ 78,832,183$ 164,430,000$

67


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS

Fiscal Year1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

RevenuesLocal 82,729,259$ 87,590,834$ 93,185,593$ 97,545,046$ 105,922,477$ 104,974,037$ 109,622,003$ 111,389,459$ 119,065,468$ 132,813,156$County 1,961,785 1,976,590 1,977,569 2,200,622 2,251,571 2,297,347 2,304,501 2,503,753 2,504,654 2,398,836State 38,474,392 42,969,304 41,149,546 42,816,311 48,094,999 45,520,563 45,005,902 42,693,550 41,960,209 43,269,320Federal 7,094,479 8,867,879 9,981,895 10,780,386 11,572,446 16,234,214 15,220,727 16,308,530 19,818,833 21,210,092Other 6,817,715 1,015,004 7,837,451 94,655 74,835 47,072 427,359 106,142 128,862 104,147

Total revenues 137,077,630 142,419,611 154,132,054 153,437,020 167,916,328 169,073,233 172,580,492 173,001,434 183,478,026 199,795,551

ExpendituresInstruction 73,247,224 78,428,621 84,361,297 87,909,714 89,740,919 91,757,472 94,439,466 93,321,006 96,940,678 105,949,234Attendance 311,155 833,607 1,493,672 1,613,235 1,678,220 1,710,435 1,847,132 1,973,195 2,020,975 1,971,673Guidance 2,734,961 3,018,565 3,238,460 3,654,122 4,036,014 4,323,294 4,459,546 4,217,386 4,361,429 6,884,252Health, Psych Speech & Audio 2,133,219 1,876,260 2,081,440 2,241,285 2,309,259 2,439,124 2,573,960 2,956,182 4,706,639 5,378,002Improvement of Instruction 3,130,848 3,610,933 3,411,387 4,499,616 4,083,706 4,051,167 4,053,819 6,473,126 7,760,049 4,703,111Professional Development 180,384 247,396 274,518 219,938 233,365 240,940 227,019 240,310 227,222 2,034,156Media Services 2,689,596 2,704,700 2,846,785 2,998,599 3,826,691 4,325,679 4,553,131 5,512,087 5,899,015 3,394,792Board of Education Services 280,370 383,780 343,316 227,680 310,279 485,472 397,142 512,206 418,725 386,663Executive Administration 318,004 268,994 297,190 382,881 368,846 377,169 362,485 381,700 425,663 1,763,304Building Level Administration 6,739,001 7,089,905 7,005,968 7,137,637 7,440,257 7,615,741 8,041,549 8,129,705 8,331,975 8,473,239Business Central Services 3,544,429 2,735,287Operation of Plant 12,106,731 13,249,831 14,350,291 18,232,411 20,074,951 21,595,998 14,401,005 16,857,864 17,035,649 16,909,701Security Services 1,027,598 1,133,883 1,191,029 1,204,257 1,294,891 1,347,188Pupil Transportation 3,644,608 3,600,964 5,222,821 5,027,975 5,250,672 5,438,939 4,806,812 5,022,293 5,782,054 5,830,166Food Service 5,870,228 6,310,143 6,608,346 6,556,747 6,813,120 7,634,748 7,710,754 7,168,603 7,507,818 8,400,817Central Office Support Services 3,790,123 5,229,256 4,572,115 4,421,534 2,510,826 4,385,881 5,182,150 5,645,922 1,840,053 3,043,639Other Supporting ServicesCommunity Services 1,758,399 1,863,154 1,944,852 2,192,648 2,175,135 2,225,017 1,771,828 1,271,577 1,306,326 1,572,914Facilities Acquisition and Construction 3,427,783 3,484,430 490,119 417,793 13,595,504 15,481,476 11,020,031 9,989,266 21,036,967 10,852,879Debt Service: Principal 4,782,216 5,438,231 5,914,950 6,312,344 32,441,266 14,477,143 27,515,000 2,800,000 3,105,000 15,115,000 Interest and Charges 3,362 3,313 3,035 - 65,574 10,289 5,752,608 5,731,337 6,303,044 7,952,229

Total expenditures 127,148,212 137,642,083 144,460,562 154,046,159 197,982,202 189,709,869 200,306,466 179,408,022 199,848,601 214,698,246

Other financing sources (uses)Transfers in (out) - - - - - - - - - - Increase (decrease) in inventories 323,616 (86,891) (11,863,531) (1,449,656) (1,715,759) (1,646,808) (340,954) 82,411 (90,012) - Sale of property 2,946 155,642Change in accounting principle (577,751)Refunding bonds issued 23,965,000 29,280,000 4,750,000Bonds issued - - - 30,000,000 9,485,000 - 30,000,000 - - 96,500,000

Total other financing sources (uses) 323,616 (664,642) (11,863,531) 28,550,344 7,769,241 (1,646,808) 53,624,046 82,411 29,192,934 101,405,642

Net change in fund balances 10,253,034$ 4,112,886$ (2,192,039)$ 27,941,205$ (22,296,633)$ (22,283,444)$ 25,898,072$ (6,324,177)$ 12,822,359$ 86,502,947$

3.9% 4.1% 4.1% 4.1% 17.6% 8.3% 17.6% 5.0% 5.3% 11.3%Debt service as a percentage of noncapital expenditures

68


GENERAL SCHOOL SYSTEM EXPENSES BY FUNCTION - GOVERNMENT-WIDELAST FIVE FISCAL YEARS (GASB Statement No. 34 adopted in 2001-02)

InstructionPlant

Operations Transportation Food Services1999 2540 2551-2558 2561

01-02 84,142,497$ 18,372,051$ 5,734,416$ 7,361,610$ 31,738,536$ 63,206,613$ 02-03 83,178,113 15,772,080 5,199,602 7,889,139 33,348,044 62,208,865 03-04 83,148,704 19,461,776 5,241,789 7,217,453 35,357,799 67,278,817 04-05 79,505,881 17,330,222 6,115,145 7,618,337 40,956,903 72,020,607 05-06 116,144,770 17,283,638 6,237,265 8,556,074 42,272,950 74,349,927

Community Services

3000

01-02 2,224,620$ 12,105,024$ 5,455,418$ 167,134,172$ 02-03 1,793,955 10,119,972 5,612,166 162,913,071$ 03-04 1,284,940 9,989,266 6,251,163 167,952,890$ 04-05 1,307,368 21,036,967 7,083,544 180,954,367$ 05-06 1,574,277 80,219,599 10,794,540 283,083,113$

NOTE: Includes all governmental fund activities


Source: Audit Report and Financial Statements

Total ExpensesFiscal Year Debt Service

Facilities Acquisition & Construction

Fiscal Year

Other Support Services

Total Support Services

69


GENERAL SCHOOL SYSTEM EXPENDITURES BY FUNCTION - FUND LEVELLAST TEN FISCAL YEARS

Fiscal Year Instruction

Plant Operations Transportation

FoodServices

Other SupportServices

Total SupportServices

1999 2540 2551-2558 2561

96-97 73,246,378 12,106,731 3,644,607 5,870,228 22,307,662 43,929,229 97-98 78,427,776 13,249,831 3,600,965 6,310,142 25,263,396 48,424,334 98-99 83,815,712 14,350,291 5,768,406 6,608,346 25,564,850 52,291,894 99-00 87,909,714 18,232,411 5,027,974 6,556,747 27,396,528 57,213,660 00-01 89,740,921 20,074,951 5,250,672 6,813,120 27,825,062 59,963,805 01-02 91,757,472 21,595,998 5,438,939 7,634,748 31,088,786 65,758,472 02-03 94,439,466 14,401,005 4,806,812 7,710,754 32,888,962 59,807,533 03-04 93,321,008 16,857,864 5,022,292 7,168,603 37,246,076 66,294,835 04-05 96,940,678 17,035,650 5,453,484 7,507,818 41,159,635 71,156,587 05-06 105,949,233 16,909,701 5,830,166 8,400,817 42,115,307 73,255,990

Fiscal Year

Community Services

Facilities Acquisition/ Construction

Other Non-Instruction

Total Non-Instruction /

Support Services Debt Service

Total Expenditures

3000 4000

96-97 1,758,398 3,427,783 4,208 5,190,389 4,782,216 127,148,212 97-98 1,868,254 3,484,430 (941) 5,351,742 5,438,230 137,642,083 98-99 1,944,852 490,119 121,841 2,556,813 5,796,144 144,460,562 99-00 2,192,648 417,793 - 2,610,441 6,312,344 154,046,159 00-01 2,175,135 13,595,503 65,574 15,836,212 32,441,266 197,982,204 01-02 2,225,017 12,105,024 - 14,330,041 14,487,432 186,333,416 02-03 1,771,828 10,119,972 - 11,891,799 33,267,608 199,406,407 03-04 1,271,577 9,989,266 - 11,260,844 8,531,337 179,408,023 04-05 1,306,325 21,036,967 - 22,343,292 9,408,044 199,848,601 05-06 1,572,914 10,852,879 861,274 13,287,067 22,205,955 214,698,246

NOTE: Includes all governmental fund types

Source: Annual Secretary of the Board Report

70


GENERAL SCHOOL SYSTEM REVENUES BY SOURCE - GOVERNMENT-WIDELAST FIVE FISCAL YEARS (GASB Statement No. 34 adopted for 2001-02)

Fiscal Year

Charges for Services

Operating Grants and

Contributions

Capital Grantsand

Contributions

01-02 10,202,773$ 39,312,218$ 3,755,868$ 02-03 14,199,543 37,210,820 1,454,565 03-04 14,508,444 37,966,974 394,072 04-05 11,985,726 40,661,231 369,314 05-06 113,750,419 43,444,677 502,651

General Revenues

Fiscal Year

Property Taxes Other Taxes

Non-specific State and

Federal Grants

Unrestricted Investment Earnings Miscellaneous Total Revenues

01-02 71,268,942$ 25,328,263$ 23,824,584$ 2,061,774$ 36,110$ 175,790,532$ 02-03 73,003,213 25,096,878 22,405,428 1,300,334 219,194 174,889,975$ 03-04 75,620,228 26,383,163 21,020,008 1,127,960 254,690 177,275,539$ 04-05 84,566,332 22,086,762 20,384,984 1,773,175 2,747,957 184,575,481$ 05-06 91,397,982 22,609,015 14,662,875 7,176,548 3,097,567 296,641,734$

NOTE: Includes all governmental fund activities



Program Revenues

71

SPRINGFIELD R-12 SCHOOL DISTRICT

GENERAL SCHOOL SYSTEM REVENUES BY SOURCE -- FUND LEVELLAST TEN FISCAL YEARS

Fiscal Year

Property Taxes

Interest Earnings Other Local Total Local

StateAssessed Utilities Other County Total County

5111, 5112 5140 5221

96-97 52,301,116 3,031,116 27,397,027 82,729,259 1,189,757 772,028 1,961,785 97-98 55,057,522 3,194,491 29,338,820 87,590,833 1,261,334 715,256 1,976,590 98-99 58,352,387 2,950,975 31,882,231 93,185,593 1,227,984 749,585 1,977,569 99-00 60,031,544 4,989,576 32,523,924 97,545,045 1,504,243 696,379 2,200,622 00-01 65,030,712 6,333,097 34,558,670 105,922,479 1,622,259 629,312 2,251,570 01-02 69,795,223 2,921,370 32,257,445 104,974,037 1,562,875 734,471 2,297,346 02-03 72,815,456 4,819,204 31,987,342 109,622,002 1,501,079 803,422 2,304,501 03-04 76,393,262 2,141,021 32,855,176 111,389,459 1,407,578 1,096,175 2,503,753 04-05 80,823,679 4,808,076 33,433,713 119,065,468 1,570,037 934,617 2,504,653 05-06 87,914,688 9,858,261 35,040,207 132,813,156 1,456,106 942,730 2,398,836

Fiscal Year

Basic Formula

Free & Reduced

Lunch

ForeignInsurance (Textbook

Fund) Other State Total State5311 5318 5331

96-97 22,079,597 4,464,995 2,186,349 9,743,451 38,474,392 97-98 25,737,815 4,856,997 2,063,978 10,310,514 42,969,304 98-99 23,195,650 5,480,678 2,030,813 10,442,405 41,149,546 99-00 21,552,041 6,926,224 2,034,308 12,303,739 42,816,311 00-01 24,769,250 7,431,351 2,056,445 13,837,953 48,094,999 01-02 23,482,932 7,330,234 1,971,504 12,735,894 45,520,564 02-03 22,008,309 7,597,129 2,271,886 13,128,579 45,005,902 03-04 20,608,138 7,641,777 1,805,680 12,637,955 42,693,550 04-05 20,288,147 8,281,510 2,090,780 11,299,772 41,960,210 05-06 19,816,308 9,244,360 2,267,999 11,940,653 43,269,320

Fiscal Year

Food Services (Federal

only) Title IOther

Federal Total Federal

Other Revenue

DetailTotal

Revenue5445-5449 5451-5454 5699 + 5898

96-97 2,622,055 2,279,183 2,193,241 7,094,479 6,817,715 137,077,630 97-98 2,925,401 3,248,624 2,693,856 8,867,880 1,015,004 142,419,611 98-99 3,024,994 3,861,177 3,095,724 9,981,895 7,837,451 154,132,054 99-00 3,062,683 3,804,245 3,913,459 10,780,387 30,094,655 183,437,020 00-01 3,114,628 3,356,915 5,100,904 11,572,447 9,559,835 177,401,330 01-02 3,369,539 4,020,687 5,467,537 12,857,763 47,072 165,696,782 02-03 3,508,690 4,406,762 6,405,216 14,320,668 54,392,359 225,645,432 03-04 3,762,738 5,370,973 7,174,819 16,308,530 106,142 173,001,434 04-05 4,016,565 5,785,909 10,016,359 19,818,833 29,411,809 212,760,972 05-06 4,401,820 5,996,295 10,811,977 21,210,092 101,509,789 301,201,193

NOTE: Includes all governmental fund types


72


PROPERTY TAX LEVIES AND COLLECTIONSLAST TEN FISCAL YEARS

Fiscal Year Tax Levy

Assessed Valuation

Total PropertyTaxes Levied

Current Property Taxes Collected Percent of Levy

Collected

Delinquent Property Taxes

Collected

Total Collections

Percent of Total

Collections to Tax Levy

5111 5112

1996-97 3.3200 1,615,977,838 53,650,464 51,748,297 96.45% 552,819 52,301,116 97.48%1997-98 3.1700 1,763,786,116 55,912,020 54,321,317 97.15% 736,205 55,057,522 98.47%1998-99 3.1800 1,859,097,626 59,119,305 57,642,868 97.50% 709,519 58,352,387 98.70%1999-00 3.1800 1,914,605,743 60,884,463 59,321,937 97.43% 709,607 60,031,544 98.60%2000-01 3.2701 2,011,888,708 65,790,773 64,141,298 97.49% 889,414 65,030,712 98.84%2001-02 3.2006 2,239,323,750 71,671,796 68,758,569 95.94% 1,036,653 69,795,223 97.38%2002-03 3.2162 2,298,704,572 73,930,936 71,576,284 96.82% 1,239,172 72,815,456 98.49%2003-04 3.2235 2,382,906,170 76,812,980 74,704,095 97.25% 1,689,167 76,393,262 99.45%2004-05 3.3735 2,437,273,090 82,221,408 79,699,204 96.93% 1,124,475 80,823,679 98.30%2005-06 3.3303 2,687,705,870 89,508,669 86,954,047 97.15% 960,641 87,914,688 98.22%


73


ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)LAST TEN CALENDAR YEARS

Tax Levy Year Assessed Value

Estimated Actual Value

Assessed Value

Estimated Actual Value Assessed Value

Estimated Actual Value

Ratio of TotalAssessed to Total Actual

Value

1997 1,304,390,518 5,874,779,260 311,587,320 934,761,960 1,615,977,838 6,809,541,220 23.73%1998 1,445,029,806 6,543,564,919 318,756,310 956,268,930 1,763,786,116 7,499,833,849 23.52%1999 1,511,993,976 6,826,352,003 347,103,650 1,041,310,950 1,859,097,626 7,867,662,953 23.63%2000 1,558,297,283 7,034,161,439 356,308,460 1,068,925,380 1,914,605,743 8,103,086,819 23.63%2001 1,616,622,908 7,271,660,720 395,265,800 1,185,797,400 2,011,888,708 8,457,458,120 23.79%2002 1,774,055,680 7,970,317,880 465,268,070 1,395,804,210 2,239,323,750 9,366,122,090 23.91%2003 1,831,293,162 8,213,076,169 467,411,410 1,402,234,230 2,298,704,572 9,615,310,399 23.91%2004 1,878,953,360 8,438,973,034 503,952,810 1,511,858,430 2,382,906,170 9,950,831,464 23.95%2005 1,948,671,520 8,778,422,807 488,601,570 1,465,804,710 2,437,273,090 10,244,227,517 23.79%2006 2,182,966,710 9,821,848,620 504,739,160 1,514,368,917 2,687,705,870 11,336,217,536 23.71%

(1) Assessed valuations were made by the Greene County Assessment Department. Estimated actual property values were calculated using percentages set forth in Section 137.115 of Missouri Revised Statutes.

Source: Greene County Assessor's Office

Real Estate Personal Property Total

74


PROPERTY TAX RATES (1) - DIRECT AND OVERLAPPING GOVERNMENTSLAST TEN FISCAL YEARS

Tax Year (2) (Ended December 31)

State of Missouri

Greene County General

Greene County Road

Greene County

Sheltered Workshop

Springfield-Greene County Library

Ozarks Technical

Community College

City of Springfield

Springfield R-12

School District Total

1996 0.0300 0.0800 0.0800 0.0500 0.2100 0.0900 0.6000 3.3200 4.4600 1997 0.0300 0.0800 0.0800 0.0500 0.2000 0.0900 0.6000 3.1700 4.3000 1998 0.0300 0.0900 0.0900 0.0500 0.2100 0.1000 0.6000 3.1800 4.3500 1999 0.0300 0.1000 0.1000 0.0500 0.2100 0.1500 0.6000 3.1800 4.4200 2000 0.0300 0.0848 0.0848 0.0500 0.2100 0.1500 0.6000 3.2701 4.4797 2001 0.0300 0.1072 0.1072 0.0487 0.2045 0.1458 0.5992 3.2006 4.4432 2002 0.0300 0.1050 0.1050 0.0488 0.2547 0.1458 0.5993 3.2162 4.5048 2003 0.0300 0.1120 0.1120 0.0488 0.2547 0.1458 0.5994 3.2235 4.5262 2004 0.0300 0.1010 0.1010 0.0488 0.2547 0.1458 0.6258 3.3735 4.6806 2005 0.0300 0.1099 0.1099 0.0470 0.2455 0.1406 0.6086 3.3303 4.6218

(1) Tax rates are expressed in dollars per $100 of assessed valuation

(2) Tax rates for 2006 were not available at the time of this report

Source: Greene County Collector's Office

75


RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITALAST TEN FISCAL YEARS

Fiscal Year

June 30Tax Year Dec 31

Gross Bonded Debt

Debt Service Fund

Net General Bonded Debt

Assessed Valuation

Ratio of NetGeneral Bonded

Debt to Assessed Valuation

Estimated Actual Value of Taxable

Property

Ratio of NetGeneral

Bonded Debt to Estimated Actual Value

District Population

(1)

Net General Bonded Debt per Capita

1997 1996 84,208,852$ 24,766,111$ 59,442,741$ 1,615,977,838$ 3.68% 1,640,743,949$ 3.6% 179,952 330$ 1998 1997 83,648,852 24,934,799 58,714,053 1,763,786,116 3.33% 1,788,720,915 3.3% 182,117 322 1999 1998 89,818,852 32,135,830 57,683,022 1,859,097,626 3.10% 1,891,233,456 3.1% 184,283 313 2000 1999 118,668,852 32,330,625 86,338,227 1,914,605,743 4.51% 1,946,936,368 4.4% 186,448 463 2001 2000 102,163,852 18,393,801 83,770,051 2,011,888,708 4.16% 2,030,282,509 4.1% 188,614 444 2002 2001 93,293,852 12,810,326 80,483,526 2,239,323,750 3.59% 2,252,134,076 3.6% 190,779 422 2003 2002 119,743,852 14,177,579 105,566,273 2,298,705,022 4.59% 2,312,882,601 4.6% 192,945 547 2004 2003 116,943,852 14,910,603 102,033,249 2,382,906,170 4.28% 2,397,816,773 4.3% 195,110 523 2005 2004 143,118,852 46,221,184 96,897,669 2,437,273,090 3.98% 2,483,494,274 3.9% 197,275 491 2006 2005 229,253,852 40,773,258 188,480,594 2,687,705,870 7.01% 2,728,479,128 6.9% 199,248 946

(1) Population estimates are based on less than 1% growth. 2000 census is an actual amount.

Source: Annual Secretary of the Board Report; Bureau of Census

76


COMPUTATION OF LEGAL DEBT MARGINLAST TEN FISCAL YEARS

Fiscal Year

Assessed Valuation Legal Debt Limit

Outstanding Debt

Debt Service Fund Bal.

available for payment of

principalLegal Debt

Margin

Ratio of legal debt margin to debt limit

1997 * 1,615,977,838 161,597,784 (84,208,852) 24,766,111 102,155,043 63.2%1998 1,763,786,116 176,378,612 (83,648,852) 24,934,799 117,664,559 66.7%1999 * 1,859,097,626 278,864,644 (89,818,852) 32,135,830 221,181,622 79.3%2000 1,914,605,743 287,190,861 (118,668,852) 32,330,625 200,852,634 69.9%2001 * 2,011,888,708 301,783,306 (102,163,852) 18,393,801 218,013,255 72.2%2002 2,239,323,750 335,898,563 (93,293,852) 12,810,326 255,415,037 76.0%2003 * 2,298,705,022 344,805,753 (119,743,852) 14,177,579 239,239,480 69.4%2004 2,382,906,170 357,435,926 (116,943,852) 11,946,570 252,438,644 70.6%2005 * 2,437,273,090 365,590,964 (143,118,852) 46,221,184 268,693,295 73.5%2006 2,687,705,870 403,155,881 (229,253,852) 40,773,258 214,675,287 53.2%

(1) The bond indebtedness of the District is limited by Section 26(b) of the Missouri Constitution, Article VI to 15% (10% for years prior to 1999) of the value of the taxable tangible property as shown by the last completed assessment for state and county purposes.

* Reassessment Year


77


COMPUTATION OF DIRECT AND OVERLAPPING DEBTJUNE 30, 2006

JurisdictionObligations Outstanding

Percentage Attributable to

District

AmountAttributable to

District

Overlapping (1)City of Springfield, Missouri 169,916,000$ 95.0% 161,420,200$ Ozarks Technical Community College 43,605,000 58.4% 25,456,599 Greene County 10,240,000 76.4% 7,825,705 Greene County Library District 6,605,000 72.6% 4,794,371

Total Overlapping Debt 230,366,000 199,496,875

Direct Debt (2)Springfield R-12 School District 229,253,852 100.0% 229,253,852

Total Direct and Overlapping Debt 428,750,727$

(1) Source: City of Springfield; OTC Business Office; Greene County Auditor's Office; Greene County Library(2) Source: Annual Secretary of the Board Report

Note: Percentage attributable to District is based on assessed valuations of the jurisdictions

78


RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURESLAST TEN FISCAL YEARS

Fiscal Year Principal Interest

Total Debt Service Fund Expenditures Total Expenditures

Ratio of Debt Service

Expenditures to Total

Expenditures

1997 325,000 4,427,204 4,782,216 127,148,212 3.76%1998 560,000 4,859,269 5,438,230 137,642,083 3.95%1999 830,000 4,947,324 5,796,144 144,460,562 4.01%2000 1,150,000 5,137,369 6,312,344 154,046,159 4.10%2001 * 25,990,000 6,425,866 32,441,266 197,982,204 16.39%2002 8,870,000 5,606,543 14,487,432 186,333,416 7.78%2003 * 27,515,000 5,406,375 33,267,608 199,406,407 16.68%2004 2,800,000 5,721,315 8,531,337 179,408,023 4.76%2005 3,105,000 5,928,065 9,408,044 199,848,601 4.71%2006 * 15,115,000 7,023,093 22,205,955 214,698,246 10.34%

NOTE: Debt Service Fund expenditures represent payment of principal, interest, and fiscal agent fees on General Bonded Debt.


* Includes principal on scheduled debt and amounts paid by escrow agents.

79


DEMOGRAPHIC STATISTICSLAST TEN FISCAL YEARS

Fiscal Year

District Population (1)

SeptemberSchool

Membership

Ratio ofMembership to Population

Average DailyAttendance

Ratio of Attendance to Membership

1996 177,786 23,771 13.37% 21,967 92.41%1997 179,952 23,940 13.30% 22,268 93.02%1998 182,117 24,998 13.73% 23,094 92.38%1999 184,283 24,742 13.43% 22,888 92.51%2000 186,448 24,420 13.10% 22,676 92.86%2001 188,614 24,291 12.88% 22,516 92.69%2002 190,779 24,201 12.69% 22,649 93.59%2003 192,945 24,122 12.50% 22,523 93.37%2004 195,110 24,050 12.33% 22,702 94.40%2005 197,275 23,983 12.16% 22,331 93.11%

Fiscal Year Asian Black Hispanic Indian White

Free/ReducedLunch

1996 1.70% 3.80% 1.20% 0.50% 92.80% 30.00%1997 1.70% 4.60% 1.60% 0.60% 91.50% 33.00%1998 1.80% 4.50% 1.70% 0.70% 91.30% 34.00%1999 1.88% 4.83% 1.81% 0.71% 90.76% 34.77%2000 1.83% 4.86% 1.82% 0.70% 90.79% 35.96%2001 1.94% 5.19% 2.01% 0.65% 90.21% 35.60%2002 1.91% 5.37% 2.20% 0.65% 89.87% 36.77%2003 2.18% 5.68% 2.22% 0.67% 89.25% 37.82%2004 2.20% 6.10% 2.40% 0.60% 88.60% 39.30%2005 2.30% 6.50% 2.70% 0.70% 87.90% 40.70%

(1) Population estimates are based on less than 1% growth. 2000 census is an actual amount.

Notes: Data for 2006 was not available at the time of this report

Source: DESE; Annual Report; Census Bureau

80


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITSLAST TEN FISCAL YEARS

Fiscal Year ended June 30

Total Assessed Valuation

Construction Estimated Value

CommercialBank Deposits

(000's)

1997 * 1,615,977,838 90,420,890 3,018,301 1998 1,763,786,116 30,463,130 3,214,288 1999 * 1,859,097,626 86,171,720 3,333,350 2000 1,914,605,743 38,013,880 3,497,359 2001 * 2,011,888,708 91,023,730 3,269,892 2002 2,239,323,750 111,596,180 4,011,313 2003 * 2,298,705,022 57,321,410 4,344,615 2004 2,382,906,170 76,927,340 4,621,690 2005 * 2,437,273,090 57,911,990 5,032,000 2006 2,687,705,870 94,391,130 5,611,000

NOTE: Commercial Bank Deposits represents total deposits of FDIC-insured institutions in Greene County.

* Reassessment Year

Source: Missouri State Auditor's Office; Annual Secretary of the Board Report FDIC Statistics on Depository Institutions (www.fdic.gov/sdi/index.asp

81


PRINCIPAL TAXPAYERS - June 30, 2006

Total assessed valuation = 2,687,705,870

ASSESSED VALUATION

PERCENTAGEOF TOTAL ASSESSED VALUATION

ST JOHNS REGIONAL HEALTH CTR $11,801,950 0.44%

HERMEL INC 10,279,100 0.38%

HAMMONS, JOHN Q TR 8,848,320 0.33%

FERRELL-DUNCAN BLDG CO LLC 5,225,820 0.19%

FIRST CARD SERVICES INC 5,124,260 0.19%

LESTER E COX MEDICAL CENTERS 5,082,660 0.19%

ST JOHNS HEALTH SYSTEM INC 4,988,480 0.19%

BASS PRO INC 4,875,040 0.18%

BATTLEFIELD MALL LLC 4,816,130 0.18%

PRIMROSE PLACE INC 4,077,980 0.15%

TOTAL $65,119,740 2.42%

Source: Greene County Assessor's Office

PRINCIPAL TAXPAYERS

82


LARGEST EMPLOYERS

Employer Industry Employees

CoxHealth Health care 8,815

St. Johns Health System Health care 8,000

Wal-Mart Retail 4,120

Springfield Public Schools Education 3,000

Bass Pro / Tracker Marine Retail 2,615

United States Government Government 2,540

State of Missouri Government 2,385

Missouri State University Education 2,130

Chase Card Services Customer service 1,595

Citizens Memorial Healthcare Health care 1,580

Source: Springfield Area Chamber of Commerce / www.business4sprinfield.com

83


CAPITAL ASSETSLAST FIVE FISCAL YEARS

2002 2003 2004 2005 2006

Non-depreciable capital assetsLand 11,439,495$ 11,362,000$ 11,405,381$ 11,812,973$ 11,901,813$ Construction in progress 21,699,154 2,282,117 8,640,869 7,055,344 12,324,311

Total non-depreciable capital assets 33,138,649 13,644,117 20,046,250 18,868,317 24,226,124

Depreciable capital assetsBuildings & improvements 179,978,865 213,099,436 218,921,761 238,321,757 252,862,975 Vehicles 799,547 814,035 910,715 1,101,991 1,266,927 Buses 5,022,651 5,022,651 5,058,393 5,186,339 5,690,232 Equipment 20,654,838 24,431,796 28,977,084 31,425,058 32,879,064 Library collection 9,909,393 10,248,568 10,649,079 11,057,236 8,953,594 Textbook adoptions 9,367,930 9,973,111 9,712,107 11,635,310 12,509,484

Total depreciable capital assets 225,733,224 263,589,597 274,229,139 298,727,691 314,162,276

Less accumulated depreciationBuildings & improvements 148,255,496 150,144,655 152,545,959 156,267,399 159,096,893 Vehicles 721,579 713,740 714,145 773,287 986,552 Buses 3,994,959 4,218,193 4,378,821 4,255,027 4,620,190 Equipment 12,493,662 14,045,051 15,810,535 17,711,357 19,094,972 Library collection 6,328,694 7,191,827 8,086,111 8,793,116 6,861,287 Textbook adoptions 4,924,109 5,840,714 5,562,934 6,175,469 6,311,695

Total accumulated depreciation 176,718,499 182,154,180 187,098,505 193,975,655 196,971,589

Total depreciable capital assets, net 49,014,725 81,435,417 87,130,634 104,752,036 117,190,687

Total capital assets, net 82,153,374$ 95,079,534$ 107,176,884$ 123,620,353$ 141,416,811$


84


MISCELLANEOUS STATISTICSJUNE 30, 2005

Area served by the District:

Number of Schools:Elementary SchoolsIntermediate SchoolMiddle SchoolsHigh Schools

Number of Employees 2005-2006Certified (FTE)Non-Certified (FTE)

Pupil to staff ratio

Cost per student

Total Enrollment September, 2006:ElementaryMiddle SchoolHigh School

Average class size 2005-2006:Elementary SchoolsMiddle SchoolsHigh Schools

City of Springfield population: Based on 2000 censusCity of Springfield population: Based on 1990 census

Change

City of Springfield Per Capita Income for 2000City of Springfield Per Capita Income for 1990

Change

City of Springfield Unemployment % as of July 2006City of Springfield Unemployment % as of 1990

Change

Source: Census Bureau; U.S. Department of Labor; Annual Report

6.50%-1.20%

5,833

5.30%

17,71111,878

151,580140,49411,086

20.622.027.2

7,570

24,25711,2315,456

22:1

$11,670

1,896991

138 square miles

36

95

1

SCHOOL DISTRICT OF SPRINGFIELD R-12 SPRINGFIELD, GREENE ... · SCHOOL DISTRICT OF SPRINGFIELD R-12...

Documents

Transcript of SCHOOL DISTRICT OF SPRINGFIELD R-12 SPRINGFIELD, GREENE ... · SCHOOL DISTRICT OF SPRINGFIELD R-12...