pinon unified school district no.4 pinon, arizona comprehensive

Transcription

PINON UNIFIED SCHOOL DISTRICT NO.4 PINON, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 (This page intentionally left blank)
PINON UNIFIED SCHOOL DISTRICT NO.4 TABLE OF CONTENTS INTRODUCTORY SECTION
Letter of Transmittal
ASBO Certificate of Excel1ence
List of Principal Officials
Organizational Chart
1
Vll
Vl11
ix
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
1
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
5
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Assets
18
Statement of Activities
19
Fund Financial Statements:
Balance Sheet - Governmental Funds
22
Reconciliation of the Balance Sheet
Governmental Funds to the Statement of Net Assets
23
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
24
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds to the
Statement of Activities
25
Statement of Fiduciary Assets and Liabilities
26
Notes to Financial Statements
27
PINON UNIFIED SCHOOL DISTRICT NO.4 TABLE OF CONTENTS FINANCIAL SECTION (Cont'd)
SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL:
General Fund
42
Title I Grants Fund
43
Note to Required Supplementary Information
44
COMBl]~ING
AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
Non-Major Governmental Funds:
Combining Balance Sheet
All Non-Major Governmental Funds - By Fund Type
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual All Non-Major Governmental Funds By Fund Type
48
49
Special Revenue Funds:
Combining Balance Sheet - Non-Major Special Revenue Funds
52
Balances - Non-Major Special Revenue Funds
58
Combining Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual Non-Major Special Revenue Funds
64
Capital Projects Funds:
Combining Balance Sheet Non-Major Capital Projects Funds
87
Balances - Non-Major Capital Projects Funds
88
Combining Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual All Capital Projects Funds
89
PINON UNIFIED SCHOOL DISTRICT NO.4 TABLE OF CONTENTS FINANCIAL SECTION (Concl'd)
Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Debt Service Fund
94 Agency Fund:
Statement of Fiduciary Assets and Liabilities - Agency Fund
96 Statement of Changes in Fiduciary Assets and Liabilities - Agency Fund
97 STATISTICAL SECTION
Financial Trends: Financial Trends: Net Assets by Component
Expenses, Program Revenues, and Net (Expense)/Revenue
General Revenues and Total Changes in Net Assets
Fund Balances of Governmental Funds
Governmental Fund Revenues
Governmental Fund Expenditures and Debt Service Ratio
Other Financing Sources and Uses and Net Changes in Fund Balance - Governmental Funds
Debt Capacity Ratio of Outstanding Debt by Type
Demographic and Economic Information Demographic and Economic Statistics
Principal Employers
Operating Information Full-time Equivalent Employees by Function
Operating Statistics
School Building Information
100 101 102 103 104 105 106 107 108 109 110 111 112 PINON UNIFIED SCHOOL DISTRICT NO.4
TABLE OF CONTENTS
SINGLE AUDIT SECTION
Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
115
Independent Auditor's Report on Compliance With Requirements That
Could Have a Direct and Material Effect on Each Major Program and on
Internal Control over Compliance in Accordance With OMB Circular A-133
117
Schedule of Expenditures of F ederal Awards
121
Notes to Schedule of Expenditures of Federal Awards
122
Schedule of Findings and Questioned Costs:
Section I - Summary of Auditors' Results
123
Section II - Financial Statement Findings
124
Section III - Federal Award Findings and Questioned Costs
124
Summary Schedule of Prior Audit Findings
125
PINON UNIFIED SCHOOL DISTRICT NO.4
=
PO Box 839 1 Pinon Arizona 86510
December 20, 2012
Governing Board and Citizens of
Pinon Unified School District No.4
P.O. Box 839
Pinon, Arizona 86510
State law mandates that school districts required to undergo an annual single audit
publish a complete set of financial statements presented in conformity with accounting
principles generally accepted in the United States of America by a certified public
accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby
issue the comprehensive annual financial report of the Pinon United School District No.4
for the fiscal year ended June 30,2012.
This report consists of management's representations concerning the finances of the
District. Consequently, management assumes full responsibility for the completeness and
reliability of all of the information presented in this report. To provide a reasonable basis
for making these representations, management of the District has established a
comprehensive internal control framework that is designed both to protect the District's
assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the district's financial statements in conformity with accounting principles
generally accepted in the United States of America. Because the cost of internal controls
should not outweigh their benefits, the District's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we attest
that, to the best of our knowledge and belief, this financial report is complete and reliable
in all material respect.
The comprehensive annual financial report is presented in three sections: introductory,
financial and statistical. The introductory section includes this transmittal letter, the
District's organizational chart, and a list of District officials and administrative staff. The
financial section includes the financial statements and the combined and individual fund
financial statements and schedules, as well as the auditor's report on the financial
statements and schedules. The statistical section includes certain unaudited financial and
demographic information, generally presented on a multiyear basis.
Phone: (928) 725-3450 Fax: (928) 725-2123
The District's financial statements have been audited by Hafen Buckner Everett & Graff,
PC, a firm of licensed certified public accountants. 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, 2012, 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 30,2012, are fairly presented in conformity with
accounting principles generally accepted in the United States of America. The
independent auditor's report is presented as the first component of the financial section of
this report.
The independent audit of the financial statements of the District was part of a broader,
federally mandated Single Audit as required by the provisions of the Single Audit Act
Amendments of 1996 and U.S. Office of Management and Budget Circular A-133 , Audits
of States, Local Governments and non-profit Organizations designed to meet the special
needs of federal grantor agencies. The standards governing Single Audit engagements
require the independent auditor to report not only on the fair presentation of the financial
statements, but also on the audited District's internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving
the administration of federal awards. These reports are available in a separately issued
Audit Reporting Package.
Accounting principles generally accepted in the United States of America require that
management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement the MD&A and should be
read in conjunction with it. The District's MD&A can be found immediately following
the report of the independent auditors.
PROFILE OF THE DISTRICT
The District is one of 21 school districts and charter schools located in Navajo County,
Arizona. It provides a program of public education from pre-kindergarten through grade
twelve, with an estimated current enrollment of 1,327 students.
The District's Governing Board is organized. under Section 15-321 of the Arizona
Revised Statutes (A.R.S.). Management of the District is independent of other state or
local governments. The County Treasurer administers cash receipts and disbursements
for the District but exercises no control over its expenditures/expenses.
The membership of the Governing Board consists of five members elected by the public.
Under existing statutes, the Governing Board's duties and powers include, but are not
limited to, the acquisition, maintenance and disposition of school property; the
development and adoption of a school program; and the establishment, organization and
operation of schools. The Governing Board also has broad financial responsibilities,
including the approval of the annual budget, and the establishment of a system of
accounting and budgetary controls.
The financial reporting entity consists of a primary government and its component units.
A component unit is a legally separate entity that must be included in the reporting entity
in conformity with generally accepted accounting principles. The District is a primary
government because it is a special-purpose government that has a separately elected
governing body, is legally separate, and is fiscally independent of other state or local
governments. The District has one component unit included in its financial statements.
See the Notes to Financial Statements section for a description of the component unit.
Furthermore, the District is not included in any other governmental reporting entity.
Consequently, the District's financial statements include only the funds of those
organizational entities for which its elected governing board is financially accountable.
The District's major operations include education, student transportation, construction
and maintenance of District facilities, food services, bookstore, and athletic functions.
The Pinon Unified School District No.4 Municipal Property Corporation (MPC) was
formed for the sole purpose of acting as a lessor, with the Governing Board acting as
lessee to finance the acquisition andlor construction of facilities to be used in the
District's operations. The MPC's board of directors consists of three members who are
appointed by the Pinon Unified School District Governing Board. Separate financial
statements for the MPC are not prepared. There was no financial activity in the MPC in
the fiscal year 2011-12; therefore the MPC is not presented in this financial report.
The District lies in the north end of Navajo County, approximately 150 miles northeast of
Flagstaff, Arizona, and encompasses approximately 2,000 square miles. U.S. Interstate
40 is 90 miles south of the district, and provides access to a variety of scenic areas and
outdoor activities such as hiking, fishing, and camping.
The primary towns in the District are the Navajo Nation Chapters of Pinon, Black Mesa,
Blue Gap, Forest Lake, Hard Rock, Low Mountain, Tselani-Cottonwood, and
WhippoorwilL Each Chapter functions as an independent community within the Navajo
Nation, and each is geographically separated from the others. The estimated number of
people living within the District is 8,721. Much of the traditional Navajo culture
continues today, blended with more modern mainstream culture in an internet-connected
technology-driven lifestyle that maintains respect for and practice of traditional Navajo
lifestyle and values.
There is a severe lack of housing in the area as well as a network of primarily dirt roads
that presents challenges to living and moving about within the District. The District
provides housing for its teachers as needed, but the isolation and primitive roads continue
to dissuade many would-be residents from moving to the area. This, combined with a
severe lack of taxable property has had a limiting effect on community growth and
District revenue.
The annual expenditure budget serves as the foundation for the District's financial
planning and control. The objective of these budgetary controls is to ensure compliance
with legal provisions embodied in the annual expenditure budget approved by the
District's Governing Board.
The District's proposed expenditure budget is presented to the Governing Board for
review prior to July 5th • The Governing Board is required to hold a public hearing on the
proposed budget and to adopt the final budget no later than July 15th , The expenditure
budget is prepared by fund for all Governmental funds, and includes function and object
code detail for the General Fund and some Special Revenue and Capital Projects funds.
The legal level of budgetary control (that is, the level at which expenditures cannot
exceed the appropriated amount) is established at the individual fund level for all funds.
The District is not required to prepare an annual budget of revenue; therefore, a deficit
budget fund balance may be presented. However, this does not affect the District's ability
to expend monies.
A schedule of revenues, expenditure, and changes to fund balance - budget and actual is
provided in this report for the General Fund. For other Governmental Funds, these
schedules are presented in the Combining and Individual Fund Financial Statements and
Schedules section of this report.
Funds that have over expenditures of budgeted funds have revenue earned throughout the
year. The budget for these funds is simply an estimate and does not prevent the District
from exceeding the budget as long as the necessary revenue is earned.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it
is considered from the broader perspective of the specific environment within which the
District operates.
Local Economy. Pinon is in an isolated portion of Navajo County, and is wholly
contained within the Navajo Nation. The economy is primarily dependent upon
employment with Pinon Unified School District, the Bureau of Indian Affairs
Community School, a small health clinic, a handful of local merchants, the Peabody Coal
mine located north of town, and small-scale agriculture.
Long-Term Financial Planning. The District has been experiencing a slow, gradual
decline in student membership over the past few years.
This has generated a
commensurate decrease in formula-funded revenues from both the State of Arizona and
the US Department of Education. However, we have experienced a growth of 55
students during the 2012 fiscal year. Because we do not yet know if this represents a
reversal of the declining enrolment or a short-term variation from the norm, our financial
plans have continued to center around reducing expenditures and maintaining and
preserving current improvements to land and buildings while fully funding classroom
instruction in order to provide a quality educational experience for our students. To that
end the District has recently invested in an energy saving refurbishment of existing
buildings involving upgrades of old lighting to energy efficient T8 fluorescent fixtures
with automatic controls, a retrofit of computer monitoring and control of all heating and
cooling equipment, and the replacement of select hot water heaters with solar units.
Additionally, the District has instituted an aggressive preventive maintenance plan with
the intent of extending service life of equipment to avoid excessive capital expenses.
Plans for the immediate future include upgrading the teacherage with improved insulation
and double glazed windows as a means to reduce the energy costs and increase employee
comfort.
The District has also embarked on a comprehensive marketing plan to increase our
student enrolment. This has resulted in a slight increase in our student population over
previous years, and has resulted in some growth-based funding increases. In order to
attract highly effective instructional personnel, the District has also initiated an
aggressive marketing campaign at teacher recruiting fairs and colleges. We have
maintained a competitive salary scale in order to attract and retain quality instructional
talent.
The District consists of one elementary school, grades k-5; a middle school, grades 6-8;
and a high school, grades 9-12. Current enrollment is approximately 1,327. The District
employs approximately 253 full and part-time staff that includes 99 certified teachers.
The District's Food Service Program is managed by Southwest Foodservice Excellence,
serving breakfast and lunch under the National School Lunch Program. Additional
revenue is generated by catering functions for the District and for others on and off
campus. The District also owns and operates its own transportation department, which
consists of 34 buses and 26 other fleet vehicles (cars, vans, and trucks). The District
maintenance department maintains its facilities and grounds with major construction
projects done by outside contractors.
Cash Management. Cash temporarily idle during the year is pooled by the County
Treasurer with funds from all districts in the County and invested; allocating the interest
back to the districts based upon the District's average balances with the County
Treasurer. The District's investment policy is to minimize credit and market risks while
maintaining a positive cash flow to meet district expenses without resorting to borrowing.
Risk Management. The District's administration is charged with the responsibility of
supervising the protection of the District's assets by employing various risk management
techniques and procedures to reduce, absorb, minimize, or transfer risk. The District is a
member of the Arizona School Risk Retention Trust (The Trust) for general liability and
auto liability. District property is insured for its replacement value. The District
contracts with The Arizona School Alliance for Worker's Compensation (The Alliance)
for the provision of worker's compensation insurance. The District makes available group
health insurance coverage from the Rural Schools of Northern Arizona cooperative
(RSNA) to its employees on a voluntary basis.
Pension Plan. The District contributes to a cost-sharing multiple-employer defined
benefit pension plan administered by the Arizona State Retirement System. Benefits are
established by state statute and generally provide retirement, death, long-term disability,
survivor, and health insurance premium benefits. The District's contribution to the
System for the year ended June 30, 2012 was equal to the required contribution for the
year.
A WARDS AND ACKNOWLEDGEMENTS
Awards. The District has been awarded the Certificate of Excellence in Financial
Reporting by the Association of School Business Officials International (ASBO) for its
submission of a Comprehensive Annual Financial Report (CAFR) for the fiscal years
2009-10 and 2010-11. In order to be awarded this certification, the District must publish
an easily readable and efficiently organized CAFR that satisfies both accounting
principles generally accepted in the United States of America and applicable legal
requirements. We believe our current CAFR meets these requirements and we are
submitting it to ASBO International to determine its eligibility for the fiscal year 2011-12
certificate.
Acknowledgements. The preparation of this CAFR on a timely basis was made possible
by the dedicated service of the entire staff of the business and finance department. Each
member of the department has our sincere appreciation for the contributions made in the
preparation of this report. Additionally, we acknowledge the support and direction
provided by our audit team from Hafen Buckner Everett & Graff, Pc.
In closing, without the leadership and support of the District Governing Board,
preparation of this report would not have been possible.
Respectfully Submitted,
Douglas A. Vaughan
Assistant Superintendent of Business Services
ASSOCIATION OF SCHOOL BUSINESS OFFICIALS INTERNATIONAL
This Certificate of Excellence in Financial Reporting
is presented to
Pinon Unified School District #4
~
For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30,2011 upon recommendation of the Association's Panel of Review which has judged that the Report substantially conforms to principles and standards of ASBO's Certificate of Excellence vii
PINON UNIFIED SCHOOL DISTRICT NO.4 LIST OF PRINCIPAL OFFICIALS JUNE 30, 2012
Governing Board
Ms. Shirlene Shonie-Klain
Governing Board President
Ms. Carmelita Redsteer Governing Board Vice-President Ms. Ramona Nalwood Governing Board Member Ms. Bessie Allen Governing Board Member Ms. Nellie Judy Governing Board Member Administrative Staff
Mr. Larry E. Wallen Superintendent Mr. Douglas A. Vaughan Business Manager viii
PINON UNIFIED SCHOOL DISTRICT NO.4 ORGANIZATIONAL CHART
JUNE 30, 2012
Governing Board
Superintendent
Director of Funded
Programs
Executive Secretary
Director of Human
Resources
Elementary Principal
Technology Director
Middle School
Principal
Security Supervisor
High School Principal
Transportation
Director
Special Education
Director
Facilities Director
Healthy Uving Project
Coordinator
Director of Curriculum,
Instruction & Assessment Business Manager
Receptionist
Assista nt Bus;ness
Manager
Accounts Payable
Technician
Property Control
Technician
""
""
I-
Food Service Director
Secretary
Payroll Technician
Student Data
Specialist
Activity Accounts
Clerk
""
IX
English language
Learner Technician
I-
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FINANCIAL SECTION (This page intentionally left blank)
HAFEN
BUCKNER
EVERETT
&GRAFF,pc
hbeg.com
(435)673-6167 F: (435)673-6166
90 East 200 North, St George, UT 84770
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report
Governing Board
Pinon, Arizona
We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Pinon Unified School District
No.4 (District) as of and for the year ended June 30, 2012, which collectively comprise the
District's basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the District's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free 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 significant estimates made by management
as well as evaluating the overall 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 governmental activities, each major fund, and the
aggregate remaining fund information of the Pinon Unified School District No.4 as of June 30,
2012, and the respective changes in financial position thereof for the year then ended In
conformity with accounting principles generally accepted in the United States of America.
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In accordance with Government Auditing Standards, we have also issued our report dated March
15, 2013 on our consideration of the Pinon Unified School District No. 4's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information as listed in the
table of contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the
basic fmancial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District's financial statements as a whole. The accompanying
supplementary information such as the introductory section, combining and individual fund
financial statements and schedules, and statistical section are presented for purposes of additional
analysis and are not a required part of the basic financial statements. The combining and
individual fund fmancial statements are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the basic financial
statements as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we
express no opinion or provide any assurance on them.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
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PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 As management of the Pinon Unified School District No.4 (District), we offer readers of the
District's financial statements this narrative overview and analysis of the financial activities ofthe
District for the fiscal year ended June 30, 2012. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
• The District's total net assets of governmental activities decreased $1.1 million from fiscal
year 2010-11.
• General revenues accounted for $14.9 million in revenue, or 74 percent of all fiscal year
2011-12 revenues. Program specific revenues in the form ofcharges for services and grants
and contributions accounted for $5.1 million or 26 percent of total fiscal year 2011-12
revenues.
• The District had approximately $21.1 million in expenses related to governmental activities,
a 7% increase from the prior year.
• Among major funds, the General Fund had $14.7 million in fiscal year 2011-12 revenues,
which primarily consisted offederal aid, state aid and local revenues. The General Fund also
had $12.8 million in expenditures and net transfers.
• The Title I Grants Fund had $1.8 million in fiscal year 2011-12 revenues, which primarily
consisted offederal grant monies and $1.8 million in expenditures and transfers.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the District's basic financial
statements. The District's basic financial statements comprise three components: 1) government
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
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PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Cont'd)
Government-wide financial statements. The government-widefinancial statements are designed to
provide readers with a broad overview of the District's finances, in a manner similar to a private
sector business.
The statement ofnet assets presents information on all ofthe District's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets
may serve as a useful indicator of whether the financial position of the District is improving or
deteriorating.
The statement ofactivities presents information showing how the District's net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless ofthe timing ofrelated cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., earned but unused compensated absences).
The government-wide financial statements outline functions of the District that are principally
supported by intergovernmental revenues. The governmental activities of the District include
instruction, support services, operation and maintenance of plant services, student transportation
services, and operation of non-instructional services, and interest on long-term debt.
Fund financial statements. Afund is a grouping ofrelated accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The District uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All ofthe
funds of the District can be divided into two categories: governmental funds and fiduciary funds.
Governmentalfunds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows ofspendable resources, as well as on balances ofspendable resources
available at the end of the fiscal year. Such information may be useful in evaluating the
District's near-term financing requirements.
Because the focus of governmental funds is narrower than that ofthe government-wide financial
statements, it is useful to compare the information presented for governmentalfunds with similar
information presented for governmental activities in the government-wide [mancial statements.
By doing so, readers may better understand the long-term impact of the District's near-term
financing decision. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
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PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 OVERVIEW OF FINANCIAL STATEMENTS (Concl'd)
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for the
General Fund, and the Title I Grants Fund which are considered to be major funds. Data from
the other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each ofthese non-major governmental funds is provided in the form ofcombining
schedules.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit ofparties
outside the District. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the District's own
programs.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding ofthe data provided in the government-wide and fund fmancial statements. The
notes to the financial statements can be found immediately following the basic financial statements.
Other information. In addition to the basic fmancial statements and accompanying notes, this
report also presents certain required supplementary information concerning the District's budget
process. The District adopts an annual expenditure budget for all governmental funds. A schedule
ofrevenues, expenditures and changes in fund balance - budget and actual has been provided for the
General Fund and major special revenue funds as required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over time as a useful indicator ofa government's financial position. In the case
of the District, assets exceeded liabilities by $65.7 million at the end of the current fiscal year.
The largest portion of the District's net assets (80 percent) reflects its investment in capital assets
(e.g., land and improvements, buildings and improvements, vehicles, furniture and equipment and
construction in progress), less any related debt used to acquire those assets that is still outstanding.
The District uses these capital assets to provide services to its students; consequently, these assets are
not available for future spending. Although the District's investment in its capital assets is reported
net ofrelated debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
In addition, a portion ofthe District's net assets are restricted by statute for the specified purposes of
special purposes, debt service repayment and capital outlay investment.
-7
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
The following table presents a summary of the District's net assets for the fiscal years ended
June 30, 2012 and June 30,2011.
Current assets
Capital assets, net
Total assets, net Current liabilities
Long-term obligations outstanding
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted
Umestricted
Total net assets
As of
June 30, 2012
$ 14,717,779
54,474,461
69,192,240
As of
June
2011
$ 15,545,151
54,946,445
70,491,596
1,446,851
2,090,357
3,537,208
1,233,959
2,485,499
3,719,458
52,392,905
1,017,590
12,244,537
$ 65,655,032
52,505,819
3,149,087
1111
$
At the end of the current fiscal year the District reported positive balances in all three categories of
net assets. The same situation held true for the prior year.
The District's financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets. The following are significant current year transactions
that have had an impact on the Statement of Net Assets.
• There was a net addition of $1.9 million in capital assets through school improvements and
purchases offurniture, equipment and vehicles less $2.4 million ofdepreciation on capital assets.
• The District paid off $359,070 of loans payable during the year ended June 30,2012.
• The District's unrestricted portion of net assets at June 30, 2012 increased due to unexpended
impact aid funds.
-8
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
Changes in net assets. The District's total revenues for the fiscal year ended June 30, 2012, were
$20.0 million. The total cost of all programs and services was $21.1 million. The following table
presents a summary of the changes in net assets for the fiscal years ended June 30, 2012 and
June 30, 2011.
Fiscal Year Fiscal Year Ended Ended June 30, 2012 June 30, 2011 Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues: Investment income County aid State aid Federal aid Total revenues Expenses: Instruction
Support services - students and staff
Support services - administration
Operation and maintenance of plant services
Student transportation services
Operation of non-instructional services
Interest on long-term debt
Total expenses
Change in net assets Net assets, beginning Net assets, ending -9
$
712,585
3,809,710
579,842
66,137
428,409
6,706,274
7,696,280
19,999,237
9,007,872
3,069,563
.2,520,928
3,465,029
1,779,626
1,049,357
223,968
21,116,343
{1,117,106)
66,772,138
$ 65,655,032
$
799,441
4,800,571
1,658,530
64,789
328,637
6,539,853
7,535,634
21,727,455
7,703,393
3,128,997
2,401,699
3,220,309
2,167,100
1,010,400
11
16
19,748,214
1,979,241
64,792,897
$ 66,772,138
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl'd)
Expenses
Interest on 10ng-1erm
debt
1%
Opemtion of non
ins truetional services
5%
Instruction
43%
Student tmnsportalion
services
8%
Operation and
maintenance of plant
selVices
16%
15%
Support services
adm in istmtion
12%
The following table presents the cost of the seven major District functional activities: instruction,
support services - students and staff, support services - administration, operation and maintenance of
plant services, student transportation services, operation ofnon-instructional services and interest on
long-term debt. The table also shows each function's net cost (total cost less charges for services
generated by the activities and intergovernmental aid provided for specific programs). The net cost
shows the financial burden that was placed on the State and District's taxpayers by each ofthese
functions.
Instruction
Operation of non- instructional services
Total
Year Ended June 30, 2011
Year Ended June
2012
Total
Total
Net (Expense)
Net (Expense)
Expenses
$ 9,007,872 $ (7,099,451) $ 7,703,393 $ (4,455,074)
(1,073,291)
(1,593,400)
3,069,563
3,128,997
(1,730,483)
(2,250,070)
2,520,928
2,401,699
(2,898,128)
(2,991,709)
3,465,029
3,220,309
(2,084,432)
(1,691,407)
1,779,626
2,167,100
(131,948)
(161,201)
1,010,400
1,049,357
(223,968)
(116,316)
223,968
16
1
14 $ (12,489,672)
$ 21,116,343 $ (16,014,206)
• The cost of all governmental activities this year was $21.1 million.
• Federal and State governments and charges for services subsidized certain programs with
grants and contributions and other local revenues of$5.1 million.
• Net cost ofgovernmental activities ($16.0 million) was fmanced by general revenues, which
were made up of primarily federal, state, and county aid ($14.9 million) and net assets ($1.1
million).
- 10
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus ofthe District's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the District's financing requirements. In particular, unreserved fund balance may serve as
a useful measure of the District's net resources available for spending at the end of the fiscal year.
The financial performance ofthe District as a whole is reflected in its governmental funds. As the
District completed the year, its governmental funds reported a combined fund balance of
$14.0 million, a decrease of $860,768. The General Fund comprises 93 percent of the total fund
balance. Approximately $12.7 million or 97 percent ofthe General Fund's fund balance constitutes
unassigned fund balance.
The General Fund is the principal operating fund of the District. The increase in fund balance of
$1.3 million in the General Fund to $13.0 million as of June 30, 2012 was a result of federal
revenues received and unexpended during the year. The Non-Major Governmental Funds' fund
balance decreased $2.2 million to $1.0 million as of June 30, 2012. The decrease was a result of
capital outlays involving energy efficiency improvements and the repayment ofloan principal during
the current fiscal year.
BUDGETARY HIGHLIGHTS
Over the course of the year, the District revised the General Fund annual expenditure budget for
changes in student enrollment. The difference between the original budget and the final amended
budget was an increase of $83,567, or 1 percent.
Significant budget to actual variances for the District's revenues were because the State ofArizona
does not require the preparation of a revenue budget. A schedule showing the original and final
budget amounts compared to the District's actual financial activity for the General Fund and major
Special Revenue Fund is provided in this report as required supplementary information. The
variances involving expenditures were not significant.
- 11
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2012, the District had invested $74.1 million in capital assets,
including school buildings, athletic facilities, buses and other vehicles, computers, and other
equipment. This amount represents a net increase prior to depreciation of$l,795,591 from last year,
primarily due to energy efficiency projects and equipment purchases. Total depreciation expense for
the year was $2 .4 million.
The following schedule presents capital asset balances net of depreciation for the fiscal years ended
June 30, 2012 and June 30, 2011.
Land and improvements
Buildings and improvements
Vehicles, furniture and equipment
Total
As of
June 30, 2012
$ 6,119,119
45,619,113
2,736,229
$ 54,474,461
As of
June
2011
$ 6,533,776
45,397,916
3,014,753
$ 54,946,445
Additional information on the District's capital assets can be found in Note 6.
Debt Administration: At year-end, the District had $2.1 million in loans payable outstanding, with
$189,556 due within one year. The following table presents a summary ofthe District's outstanding
debt for the fiscal years ended June 30, 2012 and June 30, 2011.
Loans payable
Total
As of
June
2012
$ 2,081,556
$ 2,081,556
As of
June
2011
$ 2,440,626
$ 2,440,626
Additional information on the District's long-term debt can be found in Notes 7 and 8.
- 12
PINON UNIFIED SCHOOL DISTRICT NO.4 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2012 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
Many factors were considered by the District's administration during the process of developing the
fiscal year 2012-13 budget. The primary factor was the District's student population and employee
salaries. Also considered in the development ofthe budget is the local economy.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a
general overview of the District's finances and to demonstrate the District's accountability for the
resources it receives. Ifyou have questions about this report or need additional information, contact
the Business and Finance Department, Pinon Unified School District No.4, P. O. Box 839, Pinon,
Arizona 86510.
- 13
- 14
BASIC FINANCIAL STATEMENTS
- 15
- 16
GOVERNMENT-WIDE FINANCIAL STATEMENTS
- 17
PINON UNIFIED SCHOOL DISTRICT NO.4 STATEMENT OF NET ASSETS JUNE 30, 2012 Governmental Activities ASSETS
Current assets:
Cash and investments
Due from governmental entities
Inventory, at cost
Prepaid items
Total current assets
$
Noncurrent assets:
Land and improvements
Vehicles, furniture, and equipment
Accumulated depreciation
Total noncurrent assets Total assets 11,306,854
3,050,089
248,003
112,833
14,717,779
9,270,408
57,853,601
6,988,157
(19,637,705)
54,474,461
69,192,240
LIABILITIES
Current liabilities:
Accounts payable
Unearned revenues
Compensated absences payable
Loans payable
Total current liabilities
461,926
201,544
594,137
189,244
1,446,851
Noncurrent liabilities:
Non-current portion oflong-term obligations
Total non-current liabilities
Total liabilities
2,090,357
2,090,357
3,537,208
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Federal and state projects Food service Other local initiatives Debt service Capital outlay Unrestricted
Total net assets
52,392,905
$
383,047
265,068
237,787
16,837
114,851
12,244,537
65,655,032
The notes to the basic financial statements are an integral part of this statement.
-18
PINON UNIFIED SCHOOL DISTRICT NO.4 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 FunctionslPrograms
EXEenses
Charges for
Services
Program Revenues
Capital Grants
Operating
Grants and
and
Contributions
Contributions
Net (Expense)
Revenue and
Changes in Net
Assets
Governmental
Activities
Governmental activities:
Instruction
Operation and maintenance ofplant services
Total governmental activities
$ 9,007,872
3,069,563
2,520,928
3,465,029
1,779,626
1,049,357
223,968
$21,116,343
$
89,627
1,305
1,033
467,407
2,012
151,201
$
1,238,952
1,474,858
269,825
5,913
86,207
733,955
$
579,842
$
$
712,585
$
3,809,710
$
579,842
$
(7,099,451)
(l,593,400)
(2,250,070)
(2,991,709)
(1,691,407)
(164,201)
(223,968)
(16,014,206)
General
revenues:
66,137
428,409
6,706,274
7,696,280
14,897,100
Investment ineome
Unrestricted County aid
Unrestricted State aid
Unrestricted Federal aid
Total general revenues
Changes in net assets
(1,117,106)
Net assets, beginning of year
66,772,138
Net assets, end of year
-19
$
65,655,032
- 20
FUND FINANCIAL STATEMENTS
- 21
BALANCE SHEET-GOVERNMENTAL FUNDS
JUNE 30, 2012
Title I Grants
Non-Major Governmental Funds $ 10,092,686
2,410,988
300,298
112,833
248,003
$ 13,164,808
$
$
1,214,168
336,938
151,375
$
302,163
$
1,702,481
$
$
1,865
300,298
$
331,972
151,375
232,364
715,711
General
Assets:
Due from other funds
Inventory, at cost
Prepaid Insurance
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable
Due to other funds
Deferred revenues
Total liabilities Fund balances:
Nonspendable
Restricted
Unassigned
Total fund balances
Total liabilities and fund balances
128,089
302,163
128,089
302,163
$
302,163
$
461,926
451,673
232,364
1,145,963
1,702,481
$ 15,169,452
-22
$
986,770
986,770
$ 13,164,808
$ 11,306,854
3,050,089
451,673
112,833
248,003
$ 15,169,452
360,836
986,770
12,675,883
14,023,489
360,836
12,675,883
13,036,719 Total Governmental Funds PINON UNIFIED SCHOOL DISTRICT NO.4 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 $
Total governmental fund balances
14,023,489
Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not fmancial resources and therefore are not reported in the funds. $
Governmental capital assets
Less accumulated depreciation
74,112,166
(19,637,705)
54,474,461
Some revenues will not be available to pay for current period
expenditures and therefore are deferred in the funds.
30,820
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Compensated absences payable
Loans payable
(792,182) (2,081,556)
Net assets of governmental activities
(2,873,738) $
-23
65,655,032
PINON UNIFIED SCHOOL DISTRICT NO.4 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2012 Title I Grants General
Revenues:
Other local
State aid and grants
Federal aid, grants and reimbursements
Total revenues
Expenditures:
Current
Instruction
Capital outlay
Debt service
Interest, premium and fiscal charges Principal retirement Total expenditures Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Changes in fund balances
Fund balances (deficits), beginning of year
$
713,028
6,299,096
7,723,048
14,735,172
$
4
Non-Major
Governmental
Funds
Total
Governmental
Funds
$
$
1,780,036
1,780,040
522,265
640,098
2,290,842
3,453,205
1,235,297
6,939,194
11,793,926
19,968,417
1,335,496
418,099
61,838
421,820
79,567
739,327
2,288,720
6,762,038
2,996,169
2,353,756
3,587,651
1,380,814
830,110
2,598,952
223,968
359,070
5,927,905
223,968
359,070
2],092,528
(2,474,700)
(1,124,111)
629,199
(316,816)
312,383
],116,221
(1,116,221)
1,038,206
(2,162,317)
(1,124,111)
11,735,170
3,149,087
14,884,257
4,866,262
1,496,235
2,171,206
3,165,831
1,301,247
90,783
310,232
560,280
1,081,835
120,712
13,401,796
1,762,827
1,333,376
17,213
487,022
(782,192)
(295,170)
Changes in nonspendable resources:
Increase (Decrease) in inventory
Increase (Decrease) in prepaid items
15,340
248,003
Fund balances (deficits), end of year
$13,036,719
(17,213)
(17,213)
15,340
248,003
$
$
986,770
-24
$ 14,023,489
PINON UNIFIED SCHOOL DISTRICT NO.4 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 $
Net changes in fund balances - total governmental funds
(860,768)
Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. $
Expenditures for capitalized assets
Less current year depreciation
2,115,051 (2,388,726)
(273,675) Intergovernmental revenues in the Statement of Activities that do not provide
current fInancial resources are not reported as revenues in the funds.
30,820
Repayment of bond principal, capital leases and loans are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. Loan retirement
359,070
Compensated absences are recognized as expenditures in the governmental
funds when paid. In the statement of activities, the expenditures are
recognized as they accrue. The effect for the difference in treatment is
as follows:
(174,244)
The disposal of capital assets resulted in a gain on the Statement of Activities.
However, the loss is not reflected in the governmental funds.
(198,309)
Change in net assets in governmental activities
$ ==::'!:(1=,1=1:::::i7,=10:::::6=)
-25
PINON UNIFIED SCHOOL DISTRICT NO.4 STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES JUNE 30, 2012 Agency
ASSETS
Total assets
$
$
36,433
36,433
LIABILITIES
Due to student groups
Total liabilities
$
$
36,433
36,433
-26
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Pinon Unified School District No.4 (District) have been
prepared in conformity with accounting principles generally accepted in the United States of
America as applied to government units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles.
The more significant of the District's accounting policies are described below.
A. Reporting Entity
The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes
(A.R.S.). Management of the District is independent of other state or local governments. The
County Treasurer collects taxes for the District, but exercises no control over its
expenditures/expenses.
The membership of the Governing Board consists of five members elected by the public.
Under existing statutes, the Governing Board's duties and powers include, but are not limited
to, the acquisition, maintenance and disposition of school property; the development and
adoption of a school program; and the establishment, organization and operation of schools.
The Board also has broad financial responsibilities, including the approval of the annual
budget, and the establishment of a system of accounting and budgetary controls.
The financial reporting entity consists of a primary government and its component units. A
component unit is a legally separate entity that must be included in the reporting entity in
conformity with generally accepted accounting principles. The District is a primary
government because it is a special-purpose government that has a separately elected
governing body, is legally separate, and is fiscally independent of other state or local
governments. Furthermore, component units combined with the District for fmancial
statement presentation purposes, and the District is not included in any other governmental
reporting entity. Consequently, the District's financial statements include only the funds of
those organizational entities for which its elected governing board is financially accountable.
The District's major operations include education, student transportation, construction and
maintenance of District facilities, food services, bookstore and athletic functions.
Blended Component Units - The Pinon Unified Municipal Property Corporation was
formed for the sole purpose of acting as a lessor with the Governing Board acting as lessee to
finance the acquisition and/or construction of facilities to be used in the District's operations.
The Pinon Unified Municipal Property Corporation's (MPC) board of directors consists of
three members which are appointed by the Pinon Governing Board. Separate financial
statements for the Pinon Unified Municipal Property Corporation are not prepared. There
was no financial activity in the MPC in the fiscal year 2011-12; therefore the MPC is not
presented in these financial statements.
- 27
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30,2012 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement
of activities) present fmancial information about the District as a whole. The reported
information includes all of the nonfiduciary activities of the District and its component units.
For the most part, the effect of internal activity has been removed from these statements.
These statements are to distinguish between the governmental and business-type activities of
the District. Governmental activities normally are supported by taxes and intergovernmental
revenues, and are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support. The District does not have any business
type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include I) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes, Federal, State and County aid, and other items not included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major
individual governmental funds are reported as separate columns in the fund fmancial
statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-Wide Financial Statements - The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of related cash flows. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or
provider have been met. As a general rule the effect of internal activity has been eliminated
from the government-wide financial statements; however, the effects of interfund services
. provided and used between functions are reported as expenses and program revenues at
amounts approximating their external exchange value.
- 28
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
Fund Financial Statements - Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis ofaccounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the District considers
revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service resources are provided during the current year for
payment of long-term debt principal and interest due early in the following year (not to
exceed one month) and, therefore, the expenditures and related liabilities have been
recognized. Compensated absences are recorded only when payment is due.
Umestricted Federal, State and County aid, tuition and investment income associated with
the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Food services and miscellaneous
revenues are not susceptible to accrual because generally they are not measurable until
received in cash. Grants and similar awards are recognized as revenue as soon as all
eligibility requirements imposed by the grantor or provider have been met. Deferred
revenues also arise when resources are received by the District before it has legal claim to
them, as when grant monies are received prior to meeting all eligibility requirements imposed
by the provider.
Receivables that will not be collected within the available period have also been reported as
deferred revenue on the governmental fund financial statements.
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single column. Fiduciary funds are reported by fund type.
The District reports the following major governmental funds:
General Fund - The General Fund is the District's primary operating fund. It accounts for
all resources used to finance District maintenance and operation except those required to
be accounted for in other funds. The General Fund includes the District's Maintenance
and Operations Fund as well as the Federal Impact Aid Fund, Medicaid Reimbursement,
School Plant, Litigation Recovery, Insurance Proceeds, Auxiliary Operations, Indirect
Costs, Gifts and Donations, advertisement, and Soft Capital Allocation Funds. These
funds are maintained as separate fund for accounting and budgetary purposes but do not
meet the criteria for separate reporting in the financial statements.
Title I Grants fund - The Title I Grants Fund accounts for financial assistance to local
educational agencies for the purpose of improving the teaching and learning of children
failing, or most at-risk of failing, to meet challenging State academic standards.
- 29
Additionally, the District reports the following fund type:
Fiduciary Funds - The Fiduciary Funds are Agency Funds, which account for resources
held by the District on behalf of others and includes the Student Activities Fund. This
Fund accounts for monies raised by students to finance student clubs and organizations
held by the District as an agent.
The Agency Fund is custodial in nature and does not have a measurement focus and are
reported using the accrual basis of accounting. The Agency Fund is reported by fund type.
D. Cash and Investments
A.R.S. require the District to deposit certain cash with the County Treasurer. That cash is
pooled for investment purposes, except for cash of the Debt Service and Bond Building
Funds that may be invested separately. Interest earned from investments purchased with
pooled monies is allocated to each of the District's funds based on their average balances. As
required by statute, interest earnings of the Bond Building Fund are recorded initially in that
fund, but then transferred to the Debt Service Fund. All investments are stated at fair value.
E. Investment Income
Investment income is composed of interest and net changes in the fair value of applicable
investments. Investment income is included in other local revenue in the governmental fund
financial statements.
F. Receivables and Payables
Activity between funds that are representative of lendinglborrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non
current portion of interfund loans). All other outstanding balances between funds are
reported as "due to/from other funds."
All receivables are shown net of an allowance for uncollectable.
G. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements.
Prepaid items are recorded as expenses when consumed in the government-wide financial
statements.
- 30
H. Inventory
All inventories are valued at cost using the first-inffirst-out (FIFO) method. Inventories
consist of expendable supplies held for consumption. Inventories are recorded as expenses
when consumed on the government-wide financial statements and as expenditures when
purchased on the fund financial statements.
I. Capital Assets
Capital assets, which include land and improvements, buildings and improvements, vehicles,
furniture, equipment and construction in progress, are reported in the government-wide
financial statements.
Capital assets are defined by the District as assets with an initial, individual cost in excess of
$5,000 and an estimated useful life of more than one year. Such assets are recorded at
historical cost, or estimated historical cost if actual historical cost is not available. Donated
capital assets are recorded at the estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Capital assets are depreciated using the straight-line method over the following estimated
useful lives:
Land improvements
20 years
10-50 years
5-20 years
J. Compensated Absences
The District's employee vacation and sick leave policies generally provide for granting
vacation and sick leave with pay. Full-time employees eam vacation and sick leave at the
rate of one day per month. In the event of termination, an employee is reimbursed for
accrued sick leave at varying rates depending on position of classified or certified and the
number of sick days accumulated. The current and long-term liabilities, including related
benefits, for accumulated vacation and sick leave are reported on the government-wide
financial statements. A liability for these amounts, including related benefits, is reported in
governmental funds only if they have matured, for example, as a result of employee leave,
resignations and retirements. Generally, resources from the General Fund are used to pay for
compensated absences.
- 31
K. Long-term Obligations
In the government-wide financial statements, long-tenn debt and other long-tenn obligations
are reported as liabilities on the statement of net assets.
L. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
Statement of Activities. Interfund transfers in the fund financial statements are reported as
other financing sources/uses in governmental funds.
M. Estimates
The preparation of the financial statements in confonnity with accounting principles
generally accepted in the United States of America requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
NOTE 2 - FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, and unrestricted, which includes
committed, assigned, and unassigned fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot
be spent because they are not in spendable fonn, or legally or contractually required to be
maintained intact.
Restricted Fund balance is reported as restricted when constraints place on the use of
resources are either externally imposed by creditors (such as through debt covenants),
grantors, contributors, or laws or regulations of other governments or is imposed by law
through constitutional provisions or enabling legislation.
Committed The committed fund balance classification includes amounts that can be used
only for the specific purposes imposed by fonnal action of the Governing Board. Those
committed amounts cannot be used for any other purpose unless the Governing Board
removes or changes the specified use by taking the same type of action it employed to
previously commit those accounts.
- 32
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 2 - FUND BALANCE CLASSIFICATIONS (Cont'd)
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
District for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the Governmental Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Governing Board or a
management official delegated that authority by formal Governing Board action.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other
governmental funds, the unassigned classification is used only to report a deficit balance
resulting from overspending for specific purposes for which amounts had to be restricted,
committed, or assigned.
The District applies restricted resources first when expenditures are incurred for purposes for
which either restricted or unrestricted (committed, assigned, and unassigned) amounts are
available. Similarly, within unrestricted fund balance, committed amounts are reduced first
followed by assigned, and then unassigned amounts when expenditures are incurred for
purposes for which amounts in any of the unrestricted fund balance classifications could be
used.
The table below provides detail of the major components of the District's fund balance
classifications at year end.
Title I
Grants
General Fund
Fund Balances:
Nonspendable:
Inventory
Prepaid items
Total nonspendable
Restricted:
Debt service
Capital projects
Voter approved initiatives
Food services
Other purposes
Total restricted
Unassigned
Total fund balances
$
112,833
248,003
360,836
$
Non-Major
Governmental
Funds
$
$
- 33
$
$
112,833
248,003
360,836
16,837
114,851
279,085
265,068
310,929
986,770
16,837
114,851
279,085
265,068
310,929
986,770
12,675,883
986,770
$ 14,023,489
12,675,883
$ 13,036,719
Total
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Excess Expenditures Over Budget - At June 30, 2012, the District had expenditures in the
funds that exceeded the budgets, however, this does not constitute a violation of any legal
provIsIOns.
NOTE 4 - CASH AND INVESTMENTS
A.R.S. authorize the District to invest public monies in the State Treasurer's local government
investment pools, the County Treasurer's investment pool, obligations of the U.S. Government
and its agencies, obligations of the State and certain local government subdivisions,
interest-bearing savings accounts and certificates of deposit, collateralized repurchase
agreements, certain obligations of U.S. corporations, and certain other securities. The statutes
do not include any requirements for credit risk, custodial credit risk, concentration of credit
risk, interest rate risk, or foreign currency risk for the District's investments.
Custodial Credit Risk Deposits. Custodial credit risk is the risk that in the event of bank
failure the District's deposits may not be returned to the District. At June 30, 2012, the
carrying amount of the District's total cash in bank was $186,315 and the bank balance was
$374,761. At June 30, 2012, the District's deposits were entirely covered by Federal
depository insurance.
The State Treasurer's pools are external investment pools, the Local Government Investment
Pool (pool 5) and Local Government Investment Pool-Government (Pool 7), with no
regulatory oversight. The pools are not required to register (and are not registered) with the
Securities and Exchange Commission. The activity and performance of the pools are
reviewed monthly by the State Board of Investment. The fair value of each participant's
position in the State Treasurer investment pools approximates the value of the participant's
shares in the pool and the participants' shares are not identified with specific investments.
No regulatory oversight is provided for the County Treasurer's investment pool and that
pool's structure does not provide for shares.
At June 30, 2012, the District's investments consisted of the following.
Investment Tvpe
County Treasurer's investment pool
Total
Average Maturities Fair Value
3.695 years
$11,156,973
$11,156,973
Interest Rate Risk. The District does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to fair value losses arising from
increasing interest rates.
- 34
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 4 - CASH AND INVESTMENTS (Cont'd)
Credit Risk. The District has no investment policy that would further limit its investment
choices. As of June 30, 2012, the District's investment in the County Treasurer's investment
pool did not receive a credit quality rating from a national rating agency.
Custodial Credit Risk. The District's investment in the County Treasurer's investment pool
represents a proportionate interest in the pool's portfolio; however the District's portion is
not identified with specific investments and is not subject to custodial credit risk.
Concentration of Credit Risk. The District places no limit on the amount the District may
invest in anyone issuer.
NOTE 5 - RECEIV ABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type
and presented separately in the financial statements with the exception of due from
governmental entities. Due from governmental entities, net of allowance for uncollectibles,
as of year-end for the District's individual major funds and non-major governmental funds in
the aggregate, are as follows:
General
Fund
Due from governmental entities:
Due from Federal government
Due from State government
Net due from governmental
entities
Non-Major
Governmental
Funds
Title I
Grants
Total
$
1,182
2,409,806
$
302,163
$
254,496
82,442
$
557,841
2,492,248
$
2,410,988
$
302,163
$
336,938
$ 3,050,089
Governmental funds report deferred revenue in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental
funds also defer revenue recognition in connection with resources that have been received,
but not yet earned. At the end of the current fiscal year, the various components of deferred
revenue reported in the governmental funds were as follows:
Unavailable
Grant drawdowns prior to meeting all
eligibility requirements (Non-Major
governmentalfunds)
Measurable but unavailable revenues
(Non-Major governmental funds)
Total deferred revenue for
governmental funds
- 35
$
$
30,820
$
Unearned
30,820
~~~=="'~-
201,544
-----
$
201,544
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 - CAPITAL ASSETS
A summary of capital asset activity for the fiscal year ended June 30, 2012 follows:
Beginning
Balance
Governmental Activities
Capital assets, being depreciated:
Land improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Land improvements
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
$
9,270,408
56,378,858
6,667,309
72,316,575
1,765,779
349,272
2,115,051
9,270,408
57,853,601
6,988,157
74,112,166
106,124
15,027
121,151
(3,151,289)
(12,234,488)
{4,251,9282
(19,637,705)
$
(414,657)
(1,359,670)
{614,3992
(2,388,726 2
(2,736,632)
(10,980,942)
{3,652,5562
(17,370,130)
54,946,445
$ 54,946,445
(291,036)
(28,4242
(319,4602
$
$
$
Ending
Balance
Decrease
Increase
(273,675 2
(273,675 2 $
{198,309)
~198,309)
54,474,461
$ 54,474,461
Depreciation expense was charged to governmental functions as follows:
Instruction
Total depreciation expense - governmental activities
$ 1,608,370
59,755
96,977
101,321
332,681
189,622
$ 2,388,726
NOTE 7 - RURAL DEVELOPMENT LOAN
The Pinon Unified Municipal Property Corporation (MPC), an entity formed by the District
to facilitate a financing with the United States Department of Agriculture through its Rural
Development Administration entered into three loans during the fiscal year 1997-98. The
proceeds along with District funds are being utilized to construct teacher-housing facilities
with the District. The loans (97-01, 97-02 and 97-03) had principal amounts of $1,620,000,
$1,400,000, and $1,400,000, respectively and have all been drawn down. The MPC is leasing
the improvements back to the District. Monthly payments to Rural Development in the
amount of $24,291 were made in fiscal year 2011-12. In addition to the monthly payments,
additional payments of $2,430 per month will be made until the reserve required by Rural
Development of$169,704 is fully funded.
- 36
PINON lJNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 7 - RITRAL DEVELOPMENT LOAN (Cont'd)
Annual debt service requirements to maturity on the loans at year end are summarized as
follows:
Principal
Interest
Total
Year
$ 189,244
102,248
291,492
2013
198,543
92,949
291,492
2014
2015
208,298
83,194
291,492
2016
218,533
72,959
291,492
2017
229,271
62,221
291,492
1,037,667
131,760
1,169,427
2018-22
$ 2,081,556
$ 545,331 $ 2,626,887
Total
NOTE 8 - CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2012 was as follows:
Beginning
Balance
Ending
Balance
Due Within
One Year
Additions
Reductions
$ 2,440,626
617,938
$
$
359,070
435,459
$ 2,081,556 $
792,182
189,244
594,137
$ 3,058,564
$ 609,703
$
794,529
$ 2,873,738 $
783,381
Loans payable
Compensated absences
Governmental activity long-term
liabilities
609,703
NOTE 9 - INTERFlJND RECEIVABLES, PAYABLES, AND TRANSFERS
At June 30, 2012, interfund balances were as follows:
Due to/from other funds:
.sv
8 General Fund
on-Major Governmental Funds
Total
Due from
Non-Major
Governmental
Title I
Funds
Grants
$ 300,298
-,----
$
$
Total
300,298
151,375
451,673
At June 30, 2012, several funds had negative cash balances in the Treasurer's pooled cash
accounts. Negative cash on deposit with the County Treasurer was reduced by interfund
borrowing. All interfund balances are expected to be paid within one year.
- 37
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 9 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Cont'd)
Interfund transfers:
~
o
I-<
~ General Fund
§
~
itle I Grants
on-Major Governmental Funds
Total
General Fund
$ 444,485
17,213
25,324
$ 487,022
Transfer in
Non-Major
Governmental
Funds
$
337,707
$
291,492
629,199
Total
782,192
17,213
316,816
$ 1,116,221
$
Transfers between funds are used to (l) transfer funds from the General Fund and the
Teacherage fund, a non-major governmental fund to be expended in the Debt Service Fund, a
non-major governmental fund, (2) move Federal grant funds restricted for indirect costs (3)
move unbudgeted funds from the District's Unrestricted Capital Outlay fund, a non-major
governmental funds, to the General Fund.
NOTE 10 - CONTINGENT LIABILITIES
Compliance - Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be
determined at this time, although the District expects such amounts, if any, to be immateriaL
Lawsuits - The District is a defendant in various lawsuits. Although the outcome of these
lawsuits is not presently determinable, in the opinion of the District's counsel, the resolution
of these matters will not have a material adverse effect on the financial condition of the
District.
NOTE 11 - RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
District was unable to obtain general property and liability insurance at a cost it considered to
be economically justifiable. Therefore, the District joined the Arizona School Risk Retention
Trust, Inc. (ASRRT), together with other school districts in the State. ASRRT is a public
entity risk pool currently operating as a common risk management and insurance program for
member school districts. The District pays an annual premium to ASRRT for its general
insurance coverage. The agreement provides that ASRRT will be self-sustaining through
member premiums and will reinsure through commercial companies for claims in excess of
specified amounts.
The District continues to carry commercial insurance for all other risks of loss, including
property and liability, workers' compensation. Settled claims resulting from these risks have
not exceeded commercial insurance coverage in any of the past three fiscal years.
- 38
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 12 - PENSIONS AND OTHER POSTEMPLOYlVIENT BENEFITS
Plan Description - The District contribut~s to a cost-sharing multiple-employer defined benefit pension
plan; a cost-sharing multiple employer defined benefit health care plan; and a cost-sharing, mUltiple
employer defined benefit long-term disability plan, all of which are administered by the Arizona State
Retirement System (ASRS). The ASRS (through its Retirement Fund) provides retirement (i.e., pension),
death, and survivor benefits; the Health Benefit Supplement Fund provides health insurance premium
benefits (i.e., a monthly subsidy); and the Long-Term Disability Fund provides long-term disability
benefits. Benefits are established by state statute. The ASRS is governed by the Arizona State
Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The ASRS issues a comprehensive annual financial report that includes financial statements and required
supplementary information. The most recent report may be obtained by writing the System,3300 North
Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling (602) 240-2000 or (800)
621-3778. The report is also available on the ASRS' website at www.azsars.gov.
Funding Policy - The Arizona State Legislature establishes and may amend active plan members' and the
District's contribution rates. For the current year, active ASRS members were required by statute to
contribute at the actuarially determined rate of 10.74 percent (10.5 percent for retirement and 0.24 percent
for long-term disability) of the members' annual covered payroll and the District was required by statute
to contribute at the actuarially determined rate of] 0.74 percent (9.87 percent for retirement, 0.63 percent
for health insurance premium, and 0.24 percent for long-term disability) of the members' annual covered
payroll.
The District's contributions for the current and two preceding year, all of which were equal to
the required contributions, were as follows:
Retirement
Fund
Health
Benefit
Supplement
Fund
Long-Term
Disability
Fund
$
$
$
Year ending June 30:
2012
2011
2010
887,293
762,705
678,080
- 39
56,636
49,944
53,661
21,779
21,180
32,549
- 40
SCHEDULES OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
- 41
PINON UNIFIED SCHOOL DISTRICT NO.4 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND YEAR ENDED JUNE 30, 2012 Budgeted Amounts
Ori~inal
Revenues:
Other local
Total revenues
$
Expenditures:
Regular education
Instruction
Total regular education
Special education
Instruction
Total special education
700,000
6,431,361
7,131,361
$
700,000
6,431,361
7,131,361
Non-GAAP
Actual
$
$
(221,598)
(141,262) .
(362,860)
(26,758)
(7,603)
40,466
9,972
(1,331 )
14,746
2,663,663
164,656
786,181
1,859,537
89,203
5,563,240
2,690,421
172,259
745,715
1,849,565
90,534
5,548,494
632,106
388,980
1,021,086
552,429
290,976
843,405
506,051
275,023
781,074
46,378
15,953
62,331
810,374
810,374
800,057
800,057
830,232
830,232
(30,175)
(30,175)
7,123,135
7,206,702
7,159,800
Excess (deficiency) of revenues over expenditures
8,226
(75,341)
Transfers in
Transfers out
Change in fund balances
Fund balances (deficits), July 1,2011
8,226
(75,341)
40,432
40,432
Increase (Decrease) in inventory
Fund balances (deficits), June 30, 2012
478,402
6,290,099
6,768,501
2,927,527
8,935
611,452
1,660,289
83,472
5,291,675
Total student transportation services
Total expenditures
Final
Variance with
Final Budget
Positive
(Negative)
$
48,658
$
(34,909)
See accompanying notes to this schedule.
-42
$
46,902
(391,299)
(315,958)
444,485
(46,215)
398,270
444,485
(46,215)
398,270
6,971
82,312
137,924
97,492
15,340
15,340
160,235
$
195,144
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - TITLE I GRANTS
YEAR ENDED JUNE 30, 2012
Budgeted Amounts
Original
Revenues:
Other local
Total revenues
$
Expenditures:
CurrentInstruction
Support services-students and staff
Support services-administration
Total expenditures
Transfers in
Transfers out
Actual
Final
$
$
Variance with
Final Budget
Positive
(Negative)
$
2,075,862
2,075,862
4
1,780,036
1,780,040
772,573
1,491,748
166,450
2,430,771
653,392
1,261,623
140,773
2,055,788
560,280
1,081,835
120,712
1,762,827
23,735
20,074
17,213
(2,861)
(23,735)
(23,735)
(20,074)
(20,074)
(17,213)
(17,213)
2,861
2,861
93,112
179,788
20,061
292,961
4
(295,826)
(295,822)
2,454,506
2,454,506
$
$
See accompanying notes to this schedule.
-43
$
$
PINON UNIFIED SCHOOL DISTRICT NO .. 4 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2012 NOTE 1 - BUDGETARY BASIS OF ACCOUNTING
The adopted budget of the District is prepared on a basis consistent with accounting
principles generally accepted in the United States of America with the following exception
a portion of the General Fund activity is budgeted for separately as special revenue funds and
capital projects funds. The following schedule shows the adjustments necessary to present
actual expenditures, other financing sources (uses), fund balance at July 1,2011 and fund
balance at June 30, 2012 on a budgetary basis in order to provide a meaningful comparison.
Statement of
Revenues,
Expenditures and
Changes in Fund
Balances
Governmental Funds
Fiscal year 2011-12
activity budgeted as
special revenue funds
Fiscal year 2011-12
activity budgeted as
capital projects funds
Schedule of
Revenues,
Expenditures and
Changes in Fund
Balances Budget
and Actual General
Fund
Total
Expenditures
Other
Financing
Sources/
(Uses)
Fund Balance,
June
2012
Fund Balance,
July 1, 2011
$ 13,153,793
$ (295,170)
$ 13,036,719
$ 11,735,170
(5,961,025)
693,440
(12,865,959)
(11,564,353)
(10,525)
(32,893)
(32,968)
$
7,159,800
$
398,270
- 44
$
160,235
$
137,924
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES - 45
- 46
GOVERNMENTAL FUNDS
- 47
COMBINING BALANCE SHEET ~ ALL NON-MAJOR GOVERNMENTAL FUNDS ~ BY FUND TYPE JUNE 30, 2012 Special
Revenue
Assets:
Total assets
Liabilities:
Accounts payable
Due to other funds
Deferred revenues
Total liabilities
$
$
$
Fund balances:
Restricted
Total fund balances
Capital Projects
919,839
288,098
102,535
1,310,472
120,491
102,535
232,364
455,390
$
$
$
1,310,472
-48
277,492
48,840
48,840
375,172
$
16,837
$
$
16,837
$
211,481
48,840
$
$
260,321
855,082
855,082
$
Debt Service
Total
Non-Major
Governmental
Funds
114,851
114,851
$
375,172
16,837
16,837
$
16,837
1,214,168
336,938
151,375
1,702,481
331,972
151,375
232,364
715,711
986,770
986,770
$
1,702,481
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
Non-Major
Special
Revenues
Revenues:
Other local
Federal.aid, grants and reimbursements
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Debt serviceInterest, premium and fiscal charges
Principal retirement
Total expenditures
517,416
640,098
1,801,721
2,959,235
$
(162,664)
(316,816)
(316,816)
(479,480)
Fund balances (deficits), beginning of year
855,082
-49
$
7
7
2,222,968
223,968
359,070
583,038
223,968
359,070
5,927,905
(1,729,005)
(583,031)
(2,474,700)
46,215
582,984
46,215
582,984
629,199
(316,816)
312,383
(47)
1,797,641
$
522,265
640,098
2,290,842
3,453,205
1,335,496
418,099
61,838
421,820
79,567
739,327
2,288,720
(1,682,790)
1,334,562
$
$
2,222,968
3,121,899
Transfers in
Transfers out
4,842
Debt Service
Total
Non-Major
Governmental
Funds
489,121
493,963
1,335,496
418,099
61,838
421,820
79,567
739,327
65,752
Fund balances (deficits), end of year
Non-Major
Capital
Projects
114,851
(2,162,317)
16,884
$
16,837
3,149,087
$
986,770
SPECIAL REVENUE FUNDS The following Special Revenue Funds are maintained by the District. Arizona Revised Statutes
(A.R.S.) and the Uniform System of Financial Records (USFR) require the establishment of these
funds for the specified financial activities.
Classroom Site - to account for the financial activity for the portion of state sales tax collections
and pennanent state school fund earnings as approved by the voters in 2000.
Instructional Improvement
revenue.
to account for the activity of monies received from gammg
Title I Grants fund - to account for financial assistance to local educational agencies for the
purpose of improving the teaching and learning of children failing, or most at-risk of failing, to
meet challenging State academic standards.
Professional Development and Technology Grants - to account for financial assistance received to
increase student academic achievement through improving teacher quality.
Limited English and Immigrant Students - to account for financial assistance to local educational
agencies for educational services and costs for limited English and immigrant children.
Indian Education - to account for support for Indian education at preschool, elementary, secondary
and adult levels.
Special Education Grants - to account for supplemental financial assistance to State and local
educational agencies in providing a free, appropriate public education to disabled children.
Johnson - O'Malley - to account for financial assistance to provide educational opportunities to
Native American children.
Vocational Education Grants - to account for financial assistance for preparation of individuals for
employment or advancement in a career not requiring a baccalaureate or advanced degree.
Medicaid Reimbursement - to account for financial assistance for Medicaid programs.
Impact Aid - to account for support for Indian education.
E-Rate - to account for financial assistance received for broadband internet and telecommunication
costs.
Other Federal Projects - to account for financial assistance received from the Federal
government for other supplemental federal projects.
State Vocational Education - to account for financial assistance received from the State for the
preparation of individuals for employment.
First Things First - to account for financial assistance received to increase the quality and access of
early childhood development and healthcare.
School Plant - to account for proceeds from the sale or lease of school property.
- 50
Food Services - to account for the financial activity of school activities that have as their purpose the
preparation and serving of regular and incidental meals and snacks in connection with school
functions.
Civic Center - to account for monies received from the rental of school facilities for civic activities.
Community School - to account for activities related to academic and skill development for all
citizens.
Auxiliary Operations - to account for activity arising from bookstore, athletic, and miscellaneous
District related operations.
Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in
support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with
A.R.S.43-1089.01.
Gifts and Donations - to account for the revenues and expenditures of gifts, donations, bequests and
private grants made to the District.
Career and Technical Education - to account for revenues and expenditures relating to the
production and subsequent sale of items produced in an instructional program by vocational and
technical education pupils.
Fingerprinting - to account for activity of fingerprinting employees as mandated by the State.
Insurance Proceeds - to account for the monies received from insurance companies to be used for
the repair or replacement oflost, stolen or damaged property.
Textbooks - to account for the monies received from students to replace or repair lost or damaged
textbooks, subject matter materials, supplementary books, or instructional computer software.
Litigation Recovery - to account for proceeds received for and derived from the settlement of legal
controversies or from recovery of costs, attorney fees, or damages in litigation.
Indirect Costs - to account for monies transferred from Federal projects for administrative costs.
Teacherage - to account for the operations of District housing facilities provided for employees of
the District exclusively on Indian and federal lands.
Insurance Refund - to account for insurance premium refunds received at fiscal year-end.
Advertisement - Accounts for the monies received from sale of advertising that may be used for any
district purpose.
NATIVE - Accounts for revenues and expenditures relating to the District's involvement in ajoint
technical education program - Northeast Arizona Technological Institute of Vocational Education.
Intergovernmental Agreements - Accounts for the monies received from other governmental
agencies through agreements and memorandums of understanding.
- 51
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 Instructional
ImErovement
Professional
Development
and
Technology
Grants
72,513
60,435
$
$
132,948
$
Classroom Site
Assets:
Due from other governmental entities
Total assets
Liabilities:
Accounts payable
Due to other funds
Deferred revenues
Total liabilities
$
$
$
$
3,849
$
6,543
$
3,849
$
$
6,543
$
6,543
30,820
30,820
Fund balances:
Restricted
Total fund balances
52,414
22,008
102,535
176,957
Limited
English &
Immigrant
Students
3,849
3,849
102,128
102,128
$
132,948
-52
6,543
176,957
176,957
$
176,957
$
3,849
$
6,543
Special
Education
Grants
Indian
Education
$
$
26,856
$
$
68,065
68,065
$
$
524
67,541
$
26,856
26,856
68,065
26,856
$
68,065
Vocational
Education Basic Grant
1,595
E-Rate
Other Federal
Projects
$
9,356
11,672
$
24,810
$
159,108
148
$
21,028
$
24,810
$
159,256
$
2,168
$
24,790
$
3,322
1,595
$
26,856
$
$
Johnson O'Malley
1,595
18,860
21,028
1,595
$
1,595
$
21,028
-53
155,934
159,256
20
24,810
$
24,810
$
159,256
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 (Continued) State Vocational
Education
Assets:
Total assets
Liabilities:
Accounts payable
Due to other funds
Deferred revenues
Total liabilities
First Things
First
Food Services
$
7,388
$
59,994
$
193,447
90,776
$
55,053
$
7,388
$
59,994
$
284,223
$
55,053
$
669
$
43,832
$
19,155
$
6,719
7,388
16,162
59,994
19,155
Fund balances:
Restricted
Total fund balances
Civic Center
265,068
265,068
$
7,388
-54
$
59,994
$
284,223
55,053
55,053
$
55,053
Community
School
Extracurricular
Activities Fees
Tax Credit
Career &
Technical
Education &
Vocational
Education
Projects
Fingerprinting
Textbooks
Teacherage
$
13,813
$
3,358
$
11,788
$
755
$
15,797
$
122,473
$
13,813
$
3,358
$
11,788
$
755
$
15,797
$
122,473
$
25,298
$
$
$
$
$
25,298
13,813
13,813
$
13,813
3,358
3,358
$
3,358
11,788
11,788
$
11,788
15,797
15,797
755
755
$
755
-55
$
15,797
97,175
97,175
$
122,473
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2012 (Concluded) Assets:
Total assets
Liabilities:
Accounts payable
Due to other funds
Deferred revenues
Total liabilities
Fund balances:
Restricted
Total fund balances
NATIVE
Intergovern
mental
Agreements
$ 104,695
$
9,228
$
$ 104,695
$
9,228
$
$
$
733
Totals
$
733
103,962
103,962
$ 104,695
9,228
9,228
$
-56
9,228
919,839
288,098
102,535
1,310,472
120,491
102,535
232,364
455,390
855,082
855,082
$
1,310,472
- 57
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Classroom Site
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
823
325,825
Instructional
Improvement
$
808
50,533
Professional
Development
and Technology
Grants
$
5
326,648
51,341
201,402
201,407
594,026
7,163
31,638
22,180
54,225
143,532
601,189
53,818
197,757
(274,541)
(2,477)
3,650
Transfers in
Transfers out
(3,650)
(3,650)
(274,541)
(2,477)
376,669
$
-58
102,128
179,434
$
176,957
$
Limited English
& Immigrant
Students
$
$
10
Special
Education
Grants
Indian
Education
$
80
$
Vocational
Education
Basic Grants
Johnson O'Malley
2
$
89
$
30
E-Rate
$
11
51,755
51,765
236,596
236,676
257,614
257,616
82,448
82,537
31,632
31,662
74,363
74,374
22,386
28,591
250
194,837
25,182
153,316
33,019
446
39,724
26,101
3,680
14,164
16,768
674
45,898
67,188
12,256
28,476
74,374
51,227
220,019
253,969
81,761
31,606
538
16,657
3,647
776
56
(538)
(538)
(16,657)
(16,657)
(3,647)
(3,647)
(776)
(776)
(56)
(56)
$
$
$
$
-59
$
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Other Federal
Projects
Revenues:
Other local
Total revenues
$
946
$
132,578
133,524
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
First Things
First
State Vocational
Education
119
30,342
$
53,838
30,461
53,838
29,324
89,830
9,742
4,628
29,252
1,209
18,896
1,001
133,524
30,461
33,941
53,838
Transfers in
Transfers out
Fund balances (deficits). June 30, 2012
$
-60
$
$
Food Services
$
84,255
Community
School
Civic Center
$
733,333
817,588
28,257
$
28,257
408
Career &
Technical
Education &
Vocational
Education
Projects
Extracurricular
Activities Fees
Tax Credit
$
664
408
$
8,512
Fingerprinting
$
8,512
664
3
3
6,777
243
1,026
3,721
$
12
736,319
2,615
738,934
6,635
123
337
720
2,206
78,654
21,622
(1,798)
664
1,723
3
78,654
21,622
(1,798)
664
1,723
3
186,414
33,431
15,611
2,694
10,065
752
265,068
2,671
$
55,053
$
13,813
6,789
$
3,358
-61
$
11,788
$
755
======
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ~ NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Concluded) Textbooks
Revenues:
Other local
Total revenues
$
2,536
$
2,536
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
NATIVE
Teacheras;e
388,988
$
388,988
344
179,560
179,904
144,939
22,236
1,148
18
413,459
18
2,518
Otber financing sources (uses):
Transfers in
Transfers out
Total otber financing sources (uses)
413,459
168,323
(24,471)
11,581
(291,492)
(291,492)
Cbange in fund balances
Fund balances (deficits), June 30,2012
$
-62
2,518
(315,963)
11,581
l3,279
413,138
92,381
15,797
$
97,175
$
103,962
Intergovern
mental
Agreements
$
526
526
1,992
1,992
(1,466)
Totals
$
517,416
640,098
1,801,721
2,959,235
1,335,496
418,099
61,838
421,820
79,567
739,327
65,752
3,121,899
(162,664)
(316,816)
(316,816)
(1,466)
10,694
$
9,228
(479,480)
1,334,562
=$===8=5=5',=08=2=
-63
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 Classroom Site
Bud~et
Revenues:
Other local
Total revenues
Actual
356,645
$
823
325,825
356,645
326,648
(29,997)
735,944
44,742
594,026
7,163
141,918
37,579
780,686
601,189
179,497
(424,041)
(274,541)
149,500
(424,041)
(274,541)
149,500
347,120
376,669
29,549
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
Variance
Positive
(Negative)
$
823
(30,820)
Transfers in
Transfers out
Increase(decrease) in prepaid items
$
-64
F6,921)
$
102,128
$
179,049
Professional Development and Technology
Variance
Positive
Actual
(Negative)
Budget
Instructional Improvement
Actual
Budget
$
808
201,753
201,753
201,402
201,407
(351)
51,341
119,960
84,098
31,638
22,180
88,322
61,918
54,318
143,782
54,225
143,532
93
250
204,058
53,818
150,240
198,100
197,757
343
(153,525)
(2,477)
151,048
3,653
3,650
(3)
(3,653)
(3,653)
(3,650)
(3,650)
3
(2,477)
179,434
25,909
$
5
50,533
808
$
$
808
50,533
$
$
5
50,533
(153,525)
$
Variance
Positive
(Negative)
(346l
3
151,048
179,434
$
176,957
=$===1==5=1,=04=8=
$
$
$
(Continued)
-65
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Continued)
Limited English & Immigrant Students
Variance
Positive
(Negative)
Budget
Actual
Revenues:
Other local
Total revenues
$
Expenditu res:
Current
Instruction
Capital outlay
Total expenditures
Transfers in
Transfers out
$
10
$
118,752
118,752
51,755
51,765
(66,997)
(66,987)
51,355
65,589
574
22,386
28,591
250
28,969
36,998
324
117,518
51,227
66,291
1,234
538
(696)
(1,234)
(1,234)
(538)
(538)
696
696
$
-66
10
$
Indian Education
Budget
$
$
SEecial Education Grants
Variance
Positive
(Negative)
Actual
$
80
$
80
Budget
$
Variance
Positive
(Negative)
Actual
$
2
$
2
219,945
219,945
236,596
236,676
16,651
16,731
257,661
257,661
257,614
257,616
(47)
(45)
181,064
23,410
194,837
25,182
(13,773)
(1,772)
153,343
33,025
446
153,316
33,019
446
27
6
67,200
67,188
12
254,014
253,969
45
204,474
220,019
(15,545)
15,471
16,657
1,186
3,647
3,647
(15,471)
(15,471)
(16,657)
(16,657)
(1,186)
(1,186)
(3,647)
(3,647)
(3,647)
(3,647)
$
$
$
$
(Continued)
-67
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012
(Continued)
Johnson-O'Malle~
Budget
Revenues:
Other local
Total revenues
Actual
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
Transfers in
Transfers out
Variance
Positive
(Negative)
$
89
$
81,762
81,762
82,448
82,537
686
775
39,351
25,856
3,645
39,724
26,101
3,680
(373)
(245)
(35)
12,408
12,256
152
81,260
81,761
(501)
502
776
274
(502)
(502)
(776)
(776)
(274)
(274)
$
-68
89
$
Medicaid Reimbursement
Vocational Education - Basic Grants
Variance
Positive
(Negative)
Budget
Actual
$
$
30
$
30
Budget
$
$
951
$
951
74,930
74,930
31,632
31,662
(43,298)
(43,268)
118,210
118,210
26,768
27,719
(91,442)
(90,491)
33,520
39,682
1,595
14,164
16,768
674
19,356
22,914
921
2,846
113,801
1,563
1,923
76,894
1,056
923
36,907
507
74,797
31,606
43,191
118,210
79,873
38,337
133
56
(77)
(52,154)
(52,154)
(133)
(133)
(56)
(56)
77
77
(52,154)
(52,154)
211,237
$
Variance
Positive
(Negative)
Non-GAAP Actual $
$
$
211,237
211,237
$
159,083
=$==::::::l:(5=2=,1=54~)
(Continued)
-69
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Federal Im.eact Aid
Budget
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
Transfers in
Transfers out
$
Fund balances (deficits), July 1, 2011
51,945
$
51,945
13,362,516
13,362,516
7,696,280
7,748,225
(5,666,236)
(5,614,291)
2,806,082
1,674,040
2,312,577
1,773,186
799,670
1,616,192
964,181
1,331,953
1,269,288
460,578
1,189,890
709,859
980,624
503,898
339,092
464,867
9,830,422
267,745
5,909,937
197,122
3,920,485
3,532,094
1,838,288
(1,693,806)
(1,277,826)
(1,277,826)
Variance
Positive
(Nesative)
Non-GAAP
Actual
(735,977)
(735,977)
541,849
541,849
2,254,268
1,102,311
(1,151,957)
11,053,285
11,042,421
(10,864)
248,003
$
-70
13,307,553
$
12,392,735
248,003
$
~914,818)
E-Rate
Budget
$
Actual
$
100,000
100,000
$
Other Federal Projects
Variance
Positive
(Negative)
11
$
11
(25,637)
(25,626)
74,363
74,374
61,712
45,898
15,814
38,288
100,000
28,476
74,374
9,812
25,626
$
$
Actual
Budget
$
$
$
Variance
Positive
(Negative)
946
$
946
166,536
166,536
132,578
133,524
(33,958)
(33,012)
36,574
112,039
12,151
5,772
29,324
89,830
9,742
4,628
7,250
22,209
2,409
1,144
166,536
133,524
33,012
$
$
(Continued)
-71
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES· BUDGET AND ACTUAL· NON·MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Continued) State Vocational Education
Budget
Revenues:
Other local
Total revenues
Actual
$
$
37,061
37,061
30,461
(6,600)
35,590
1,471
29,252
1,209
6,338
262
37,061
30,461
6,600
Transfers in
Transfers out
$
$
* The First Things First Grant Fund was included in the district's budget, however, the budget was -0-.
-72
119
(6,719)
119
30,342
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
Variance
Positive
(Negative)
$
First Thin~s First
Budget'"
$
$
School Plant
Variance
Positive
(Negative)
Actual
$
$
$
53,838
53,838
53,838
18,896
1,001
(18,896)
(1,001)
33,941
53,838
(33,941)
(53,838)
$
Budget
$
$
53,838
$
Variance
Positive
(Negative)
Non-GAAP
Actual
3,032
$
3,032
3,032
3,032
19,994
19,994
8,033
8,033
11,961
11,961
(19,994)
(5,001)
14,993
(19,994)
(5,001)
14,993
20,035
20,035
41
$
15,034
=$===,,;1:::::l4':;.99=3=
(Continued)
-73
(Continued)
Food Services
Actual
Budget
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
144,000
Variance
Positive
(Negative)
$
84,255
$
(59,745)
700,000
844,000
733,333
817,588
33,333
(26,412)
829,317
2,945
832,262
736,319
2,615
738,934
92,998
330
93,328
11,738
78,654
66,916
11,738
78,654
66,916
182,410
186,414
4,004
Transfers in
Transfers out
Fund balances (deficits), July 1, 20ll
$
-74
194,148
$
265,068
$
70,920
Community School
Civic Center
Budget
$
$
20,000
Variance
Positive
(Negative)
Actual
$
28,257
$
8,257
Budget
$
20,000
Variance
Positive
(Negative)
Actual
$
408
$
(19,592)
(19,592)
20,000
28,257
8,257
20,000
408
1,230
243
987
1,481
1,026
455
18,833
3,721
15,112
123
337
720
2,206
55
150
319
979
13,518
2,671
10,847
33,581
6,635
26,946
178
487
1,039
3,185
(13,581)
21,622
35,203
16,815
(1,798)
(18,613)
(13,581)
21,622
35,203
16,815
(1,798)
(18,613)
33,431
33,431
3,185
15,611
12,426
19,850
$
55,053
=$====3=5,::::::20:::3=
$
20,000
$
13,813
=$====(6=,1::::::87:6:)
(Continued)
-75
(Continued)
Auxiliary 0)2erations
Bud~et
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
Variance
Positive
(Negative)
Non-GAAP
Actual
20,000
$
64,882
$
44,882
20,000
64,882
44,882
17,100
47,363
(30,263)
79
220
(141)
17,179
47,583
(30,404)
2,821
17,299
14,478
2,821
17,299
14,478
19,321
8,791
(10,530)
Transfers in
Transfers out
$
-76
22,142
$
26,090
$
3,948
Gifts and Donations
Extra Curricular Activities Fees Tax Credit
Variance
Positive
(Negative)
Budget
Actual
$
1,500
$
1,500
664
$
(836)
Budget
$
(836)
20,000
$
4,337
$
(15,663)
(15,663)
20,000
4,337
3,000
2,865
135
l35
2,694
2,694
2,694
2,694
3,000
2,865
(1,194)
664
1,858
17,000
1,472
(15,528)
(1,194)
664
1,858
17,000
1,472
(15,528)
2,694
400
7,168
2,829
(4,339)
4,301
=$=====:l:(=19=,8:::::67=)
2,294
$
664
Variance
Positive
(Negative)
Non-GAAP
Actual
1,100
$
3,358
=$======2,=25:=8=
$
24,168
$
(Continued)
-77
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES· BUDGET AND ACTUAL - NON·MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Career &Technical Ed. & Vocational Education
Variance
Positive
(Negative)
Budget
Actual
Revenues:
Other local
Total revenues
$
7,000
$
8,512
$
1,512
7,000
8,512
1,512
11,193
6,777
4,416
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
20
12
8
11,213
6,789
4,424
(4,213)
1,723
5,936
(4,213)
1,723
5,936
10,065
10,065
Otber financing sources (uses):
Transfers in
Transfers out
Total otber financing sources (uses)
$
-78
5,852
$
11,788
$
5,936
Insurance Proceeds
Fingerprinting
Budget
$
Variance
Positive
(Negative)
Actual
1,000
$
1,000
3
3
800
(997)
Non-GAAP
Actual
Budget
$
20,000
$
106,322
$
86,322
20,000
106,322
86,322
1,216
55,501
2,293
1,000
45,653
1,886
216
9,848
407
800
59,010
48,539
10,471
(997)
800
800
$
$
Variance
Positive
(Negative)
200
3
(197)
(39,010)
57,783
96,793
200
3
(197)
(39,010)
57,783
96,793
752
752
57,010
57,010
952
$
755
=$===~(1=97=) $
18,000
$
114,793
=$===9=6,=79=3=
(Continued)
-79
(Continued)
Textbooks
Variance
Positive
Budget
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Operation ofnon-instructional services
Capital outlay
Total expenditures
20,000
(Ne~ative)
Actual
$
2,536
$
(17,464)
(17,464)
20,000
2,536
13,983
18
13,965
13,983
18
13,965
6,017
2,518
(3,499)
6,017
2,518
(3,499)
13,279
13,279
Transfers in
Transfers out
Fund balances (deficits). June 30, 2012
$
-80
19,296
$
15,797
$
(3,499)
Indirect Costs
Litigation Recovery
Variance
Positive
(Negative)
Non-GAAP
Actual
Budget
$
240
$
240
Budget
$
$
3,387
18,452
213,765
3,104
20,029
583
3,481
262,801
(110,885)
264,115
42,537
42,537
42,537
42,537
(375,000)
(68,348)
306,652
168,455
168,455
49,000
49,000
49,240
(375,000)
240
48,811
(189)
49,240
48,811
$
49,051
$
49,240
======
$
1,314
1,446
7,878
91,264
1,325
8,551
249
1,486
112,199
49,000
(49,000)
$
1,314
49,000
240
1,314
1,314
240
4,833
26,330
305,029
4,429
28,580
832
4,967
375,000
(49,000)
$
240
Variance
Positive
(Negative)
Non-GAAP
Actual
(206,545)
$
100,107
=$===3=0=6,=65=2=
(Continued)
-81
(Continued)
Teacherage
Actual
Budget
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
327,000
$
388,988
61,988
766,941
413,459
353,482
766,941
413,459
353,482
(439,941)
(24,471)
(291,492)
(291,492)
(291,492)
(291,492)
(439,941)
(315,963)
123,978
413,138
413,138
$
-82
61,988
388,988
$
327,000
Transfers in
Transfers out
Variance
Positive
(Negative)
(26,803)
$
97,175
NATIVE
Advertisement
Non-GAAP
Actual
Budget
$
5,000
Variance Positive
(Negative)
$
$
(5,000)
Actual
$
$
225,710
5,000
5,000
5,000
4,764
4,764
$
4,764
=$======
$
-83
$
344
(46,150)
(45,806)
144,939
22,236
1,148
97,336
14,933
771
168,323
113,040
11,581
67,234
(55,653)
11,581
67,234
92,381
92,381
242,275
37,169
1,919
5,000
344
179,560
179,904
(5,000)
5,000
Variance
Positive
(Negative)
36,728
$
103,962
=$====67=,=23=4=
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2012 (Concluded) Intergovernmental Agreements
Variance
Positive
(Negative)
Budget
Actual
Revenues:
Other local
Total revenues
$
Expenditures:
Current
Instruction
Capital outlay
Total expenditures
$
526
$
526
526
526
10,703
1,992
8,711
10,703
1,992
8,711
(10,703)
(1,466)
9,237
(10,703)
(1,466)
9,237
10,694
10,694
Transfers in
Transfers out
Fund balances (deficits), July 1, 2011
=$=======(9=)
-84
$
9,228
=$=========9,=23=7=
Totals
Budget
$
605,500
669,949
15,402,065
16,677,514
$
750,439
640,098
9,524,769
10,915,306
$
144,939
(29,851)
(5,877,296)
(5,762,208)
4,539,851
2,441,728
2,751,506
2,624,682
915,329
846,848
100
14,652,044
3,005,285
1,467,052
1,487,331
1,738,086
550,582
739,576
343,016
9,330,928
2,025,470
1,584,378
(441,092)
~1,302,4662
42,537
(l ,052,793)
(1,010,256)
42,537
249,673
292,210
(1,302,466)
$
Variance
Positive
(Negative)
Non-GAAP
Actual
1,534,566
974,676
1,264,175
886,596
364,747
107,272
189,084
5,321,116
723,004
574,122
12,878,269
12,898,915
20,646
248,003
248,003
13,601,273
$
13,721,040
(148,882)
$
119,767
-85
CAPITAL PROJECTS FUNDS The following Non-major Capital Projects Funds are maintained by the District. Arizona
Revised Statutes (A.R.S.) and the Uniform System of Financial Records (USFR) require the
establishment ofthese funds for the specified financial activities.
ARRA Ener2V Grant to account for transactions relating to energy efficiency upgrades
funded by the Federal Government.
Unrestricted Capital Outlay
items.
to account for transactions relating to the acquisition of capital
Soft Capital Allocation - to account for transactions relating to the acquisition of short-term
capital items required to meet academic adequacy standards.
Federal Impact Aid (Construction) - to account for impact aid monies that are received
specifically for construction.
- 86
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2012 ARRA Energy
Grant
Assets:
Total assets
Liabilities:
Accounts payable
Due to other funds
Total liabilities
$
Unrestricted
CaEital
Federal Impact
Aid
Construction
$
130,879
$
146,613
$
$
48,840
179,719
$
146,613
$
$
179,719
$
31,762
$
48,840
$
48,840
$
48,840
48,840
179,719
Fund balances:
Restricted
Total fund balances
Totals
$
48,840
-87
$
179,719
$
277,492
48,840
48,840
375,172
31,762
211,481
48,840
260,321
114,851
114,851
114,851
114,851
146,613
$
375,172
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 ARRA Energy
Grant
Revenues:
Other local
Total revenues
$
Expenditures:
Capital outlay
Total expenditures
Unrestricted
Capital
$
$
756
Total
$
4,842
489,121
489,121
4,086
756
489,121
493,963
489,121
489,121
1,602,085
1,602,085
131,762
131,762
2,222,968
2,222,968
(1,597,999)
(131,006)
(1,729,005)
Transfers in
Transfers out
Fund balances, July 1,2011
4,086
Federal Impact
Aid
Construction
$
$
-88
46,215
46,215
46,215
46,215
(1,551,784)
(131,006)
(1,682,790)
1,551,784
245,857
1,797,641
$
114,851
$
114,851
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 ARRA Energy Grant
Budget
Revenues:
Other local
Total revenues
Expenditures:
Capital outlay
Total expenditures
Actual
$
$
$
Variance
Positive
(Negative)
489,121
489,121
489,121
489,121
489,121
489,121
489,121
489,121
Transfers in
Transfers out
$
-89
$
$
Soft Capital Allocation
Unrestricted CaEital
Budget
Actual
$
$
Variance
Positive
(Negative)
4,086
$
4,086
$
1,602,085
1,602,085
1,602,085
1,602,085
(1,602,085)
(1,597,999)
46,215
46,215
1,551,784
1,551,784
$
$
4,086
46,215
(1,551,784)
Budget
4,086
46,215
(1,602,085)
i 5O,301)
4,086
50,301
$
50,301
$
-90
15,915
398,690
Variance
Positive
(Negative)
Non-GAAP
Actual
$
1,603
8,997
$
(14,312)
(389,693)
(404,005)
414,605
10,600
32,968
32,968
32,968
32,968
381,637
(22,368)
(404,005)
381,637
(22,368)
(404,005)
32,893
32,893
414,530
$
10,525
$
(404,005)
PINON UNIFIED SCHOOL DISTRICT NO.4 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2012 (Concluded) Federal ImEact Aid Construction
Variance
Positive
Bud~et
Revenues:
Other local
Total revenues
$
Expenditures:
Capital outlay
Total expenditures
(Ne~ative)
Actual
$
756
$
756
756
756
246,000
246,000
131,762
131,762
114,238
114,238
(246,000)
(131,006)
114,994
(246,000)
(131,006)
114,994
245,857
245,857
Transfers in
Transfers out
$
-91
(143)
$
114,851
$
114,994
Totals
Budget
$
$
15,915
398,690
489,121
903,726
Variance
Positive
(Negative)
Non-GAAP
Actual
$
6,445
8,997
489,121
504,563
$
(9,470)
(389,693)
(399,163)
2,370,174
2,370,174
2,255,936
2,255,936
114,238
114,238
(1,466,448)
(1,751,373)
(284,925)
46,215
46,215
46,215
46,215
(1,466,448)
(1,705,158)
1,830,534
1,830,534
364,086
$
125,376
(238,710)
$
(238,710)
-92
DEBT SERVICE FUND Debt Service Fund - to account for the accumulation of resources for, and the payment of, long
term debt principal, interest and related costs.
- 93
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - DEBT SERVICE FUND
Debt Service
Actual
Budget *
Revenues:
Other local
Total revenues
$
Variance
Positive
(Negative)
$
7
7
Expenditures:
Debt service
Interest, premium and fiscal charges
Total expenditures
$
223,968
359,070
583,038
(223,968)
(359,070)
(583,038)
(583,031)
(583,031)
582,984
582,984
582,984
582,984
Transfers in
Transfers out
(47)
(47)
16,884
16,884
Fund balances (deficits), June 30. 2012
$
$
*The Debt Service Fund was included in the District's budget, however, the budget was -0-.
-94
7
7
16,837
$
16,837
AGENCY FUNDS Student Activities - to account for monies raised by students to finance student clubs and
organizations but held by the District as an agent.
- 95
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUND
JUNE 30, 2012
Agency
ASSETS
Total assets
$
$
36,433 36,433 LIABILITIES
Total liabilities
$
$
36,433 36,433 -96
PINON UNIFIED SCHOOL DISTRICT NO.4 STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES AGENCY FUND
JUNE 30, 2012
STUDENT ACTIVITIES FUND
Beginning
Balance
Additions
Ending
Balance
Deductions
ASSETS
Total assets
$
$
46,296
46,296
$
$
75,848
75,848
$
$
85,711
85,711
$
$
36,433
36,433
$
$
46,296
46,296
$
$
75,848
75,848
$
$
85,711
85,711
$
$
36,433
36,433
LIABILITIES
Total liabilities
-97
- 98
STATISTICAL SECTION The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended
to enhance the reader's understanding of the information presented in the financial statements,
notes to the financial statements, and other supplementary information presented in this report.
The statistical section is comprised of the five categories of statistical information presented
below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the District's financial position and fmancial activities have changed over time.
Revenue Capacity
These schedules are not included as the District does not generate or collect property taxes
but relies on state and federal grants and aid.
Debt Capacity
These schedules present information to help the reader evaluate the District's current levels
of outstanding debt as well as assess the District's ability to make debt payments andlor
issue additional debt in the future. As the District does not generate or collect property
taxes, the schedules presented do not include those that depend on assessed property
valuations.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the District's financial activities take place and to
help make comparisons with other school districts.
Operating Information
These schedules contain information about the District's operations and various resources
to help the reader draw conclusions as to how the District's financial information relates to
the services provided by the District.
Due to availability and cost considerations for the accumulation of data, the District has elected to
present less than ten years of data for the statistical schedules. This information will he accumulated
and reported each year until the complete ten years of data is presented.
- 99
PINON UNIFIED SCHOOL DISTRICT NO.4 NET ASSETS BY COMPONENT LAST EIGHT FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Governmental Activities
Invested in capital assets,
Net of related debt
Restricted
Unrestricted
Net assets
Fiscal Year Ended June 30
2008
2009
2005
2006
2007
$ 45,096,789
$ 49,578,284
$ 50,355,192
$ 51,881,537
18,145
9,688,095
3,468,540
5,418,551
3,535,999
6,480,010
1,881,912
7,799,455
54,803,029
$ 58,465,375
$ 60,371,201
$ 61,562,904
$
2010
2011
2012
$ 54,096,548
3,377,897
5,360,491
$ 54,443,527
1,766,242
8,583,128
$ 52,505,819
3,149,087
11,117,232
$ 52,392,905
1,0175,590
12,244,537
$
$ 64,792,897
$ 66,772,138
$ 65,655,032
62,834,936
Source: District's Business and Finance Department.
Note 1: The District financial records prior to fiscal year 2004-05 are unavailable therefore only eight years are presented.
Note 2: The District only reports governmental activities.
- 100
PINON UNIFIED SCHOOL DISTRICT NO.4 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST EIGHT FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Expenses
Instruction
Support Services:
Support Services Students and staff
Support Services administration
Operation and maintenance of plant
Student Transportation
Program Revenues
Instruction
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program
revenues
Net (expense)lRevenue
Governmental activities
2010
2005
2006
2007
$ 10,675,577
$ 8,498,581
$ 8,929,068
$ 9,356,500
$ 7,493,268
$ 7,879,491
$ 7,703,393
$ 9,007,872
1,917,768
2,022,716
2,710,613
1,576,688
1,028,658
142,776
20,074,796
2,150,438
1,707,883
2,591,61 ]
1,498,909
1,002,859
165,534
17,615,815
2,447,127
2,107,275
2,660,140
1,820,356
1,033,182
161,848
19,158,996
2,795,201
2,106,092
3,026,155
1,816,270
986,096
159,726
20,246,040
2,828,867
2,359,558
2,857,968
1,454,363
1,020,508
141,820
18,156,352
3,496,087
2,176,304
2,756,811
1,787,631
1,100,699
62,781
19,259,804
3,128,997
2,401,699
3,220,309
2,167,100
1,010,400
116,316
19,748,214
3,069,563
2,520,928
3,465,029
1,779,626
1,049,357
223,968
21,116,343
99,880
133,124
536,508
3,780,036
261,171
4,810,719
43,057
185,198
478,045
3,551,452
57,718
4,315,470
24,087
147,828
422,096
4,317,408
318,626
5,230,045
51,456
169,564
422,387
4,489,200
278,412
5,411,019
19,592
149,362
291,562
3,928,016
596,102
4,984,634
35,094
145,851
363,694
4,891,807
339,360
5,775,806
272,032
168,557
358,852
4,800,571
1,658,530
7,258,542
89,627
151,201
471,757
3,809,710
579,842
5,102,137
$(13,300,345) $(13,928,951) $(14,835,021)
$(13,171,718)
$(15,264,077)
Source: The District's Business and Finance Department.
Note: The District financial records prior to fiscal year 2004-05 are unavailable therefore only eight years are presented.
- 101
$(13A83,998). $(12,489,672) $(16,014,206)
PINON UNIFIED SCHOOL DISTRICT NO.4 GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS LAST EIGHT FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2005
Net (Expense)lRevenue
General Revenues:
Investment income
Unrestricted state aid
Unrestricted county aid
Unrestricted federal aid
Total general revenues
2006
Fiscal Year
2008
2007
$(15,264,077)
$(13,300,345)
$(13,928,951)
360,275
7,551,049
268,199
7,690,089
15,869,612
286,265
8,993,135
261,060
7,370,070
16,910,530
376,690
8,583,466
13,764
6,860,857
15,834,777
$(14,835,021)
338,493
8,597,440
3,041
7,087,750
16,026,724
2009
$(13,171,718)
272,921
7,388,727
108
7,088,922
14,750,678
2010
2012
$(13,483,998)
$(12,489,672)
${16,014,206)
76,079
6,632,232
272,985
8,460,663
15,441,959
64,789
6,539,853
328,637
7,535,634
14,468,913
66,137
6,706,274
428,409
7,696,280
14,897,100
Change in Net Assets
Source: The District's Business and Finance Department. Note: The District financial records prior to fiscal year 2004-05 are unavailable therefore only eight years are presented. - 102
2011
PINON UNIFIED SCHOOL DISTRICT NO.4 FUND BALANCES OF GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2005
General Fund
Nonspendable
Unassigned
Reserved
Unreserved
Total general fund
All other governmental funds
Nonspendable
Restricted
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital projects funds
Total all other governmental flmds
2006
2007
Fiscal Year Ended June 30
2008
2009
$
$
40,003
12,281,666
$ 12,321,669
$
$
$
$
656,926
18,145
(3,149,058)
(2,473,987)
$
$
42,064
4,421,863
4,463,927
$
$
276,875
5,037,752
5,314,627
$
1,135,414
17,984
3,450,556
4,603,954
$
$
$
317,255
6,226,268
6,543,523
$
$
1,044,718
2,631,719
3,676,437
1,491,311
17,655
1,864,257
3,373,223
$
$
314,334
$
314,334
360,836
12,675,883
$ 11,735,170
$ 13,036,719
$
3,149,087
$
986,770
2,093,628
17,457
3,360.440
5,471,525
8,880,035
17,168
1,749,074
$ 10,646,277
$
3,149,087
$
986,770
Source: The District's Business and Finance Department
- 103
$
$
$
$
3,511,574
24,425
1,350,300
4,886,299
$
97,493
11,637,677
PINON UNIFIED SCHOOL DISTRICT NO.4 GOVERNMENTAL FUND REVENUES LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Ycar Ended June 30
2005
Revenues
Federal sources
Federal Grants
Impact aid
Food Services
Total federal sourccs
State Resources
State equalization assistance
State grants
School Facilities Board
Other revenues
Total state sources
Local Sources
County aid
Food services sales
Investment income
Other Revenues
Total local sources
Total revenues
$
$
3,184,941
7,690,089
667,820
11,542,850
2006
$
2,654,565
7,370,070
495,962
10,520,597
$
2007
2008
3,234,223
7,043,739
501,141
10,779,103
$3,388,875
7,253,880
552,868
11,195,623
2009
$
2,864,014
7,471,210
654,098
10,898,322
2010
$
4,332,949
7,730,796
714,393
12,778,138
2011
$
4,135,100
9,025,449
709,895
13,870,444
2012
$
3,364,313
7,696,280
733,333
11,793,926
6,822,919
862,309
40,472
8,342,572
1,056,310
48,618
7,926,980
1,307,318
57,428
7,849,819
1,337,876
31,778
6,914,669
1,167,171
6,230,240
1,205,916
6,171,110
498,762
6,299,096
640,098
268,199
155,499
360,275
614,317
1,398,290
20,666,840
261,060
133,825
23,532
836,308
1,254,725
21,222,822
13,764
94,792
376,690
508,639
993,885
21,064,714
3,041
125,472
338,493
561,205
1,028,211
21,443,307
108
106,170
272,922
387,426
766,626
19,746,788
272,985
94,332
76,079
561,861
1,005,257
21,219,551
328,637
110,727
64,789
713,543
1,217,696
21,758,012
428,409
83,373
66,137
657,378
1,235,297
$
$
$
$
$
$
- 104
$
I
PINON UNIFIED SCHOOL DISTRICT NO.4 GOVERNMENTAL FUND EXPENDITURES AND DEBT SERVICE RATIO LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Ended June 30
2005
Expenditures:
Current
Instruction
Support selVices-students and staff
Support selVices-administration
Operation and maintenance of plant
Student transportation
Operation of non-instructional selVices
Capital Outlay
Debt SelVice
Total Expenditures
Expenditures for capitalized assets
Debt selVice as a percentage of noncapital
expenditures
2006
$ 6,930,831
1,812,854
1,938,948
2,700,660
1,233,082
930,776
8,793,091
$
193,452
$
7,020,770
2%
2007
6,403,160
2,060,780
1,684,744
2,518,926
1,155,787
886,544
7,030,936
$
150,434
$
6,108,621
6,767,945
2,373,143
2,085,936
2,622,074
1,209,538
917,654
3,674,628
$
129,827
$
2%
2009
2008
2,719,094
2%
6,266,040
2,658,532
2,063,923
2,895,274
1,326,997
861,457
5,347,999
$
3,321,537
2%
5,565,074
2,721,501
2,214,788
2,755,050
1,125,588
872,350
4,679,386
$
149,885
131,968
$
2010
$
4,290,631
2%
2011
5,581,174
3,407,760
2,034,350
2,657,380
1,373,508
917,393
3,187,717
$
229,010
$
2,598,389
5,619,439
3,091,975
2,240,174
2,2944,119
1,390,982
829,038
1,452,962
$
175,467
1
$
416,420
2%
- 105
2012
2%
6,762,038
2,996,169
2,353,756
3,587,651
1,380,814
830,110
2,598,952
223,968
$
2,llS,OSI
3%
PINON UNIFIED SCHOOL DISTRICT NO.4 OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST EIGHT FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Excess (deficiency) of revenues over
expenditures
$
(4,009,630)
$
(834,023)
$
1,149,121
$
(268,609)
$
(478,654)
$
1,768,478
$
3,897,540
$
(l,l 24, 11 1)
Transfers in
Transfers out
6,737,875
(6,737,875)
13,908,184
(13,908,184)
3,421,754
(3,421,754)
3,549,928
(3,549,928)
8,467,281
(8,467,281 )
10,504,411
(10,504,41l)
650,317
(650,317)
3,897,540
- 106
1,116,221
(1,116,221)
$
(1,124,111)
RATIO OF OUTSTANDING DEBT BY TYPE
LAST EIGHT FISCAL YEARS
(UNAUDITED)
Fiscal
Year
USDA Loans
Percentage of
Estimated Actuai
Value
Per Ca~ita
Percentage of
Personal
Income
34
2.09%
2005
$ 3,600,667
N/A
2006
3,407,215
N/A
31
1.85
2007
3,256,781
N/A
29
1.63
2008
3,126,954
N/A
27
1.47
2009
2,845,102
N/A
25
1.26
2010
2,616,093
N/A
23
1.63
2011
2,440,626
N/A
23
.93
2012
2,081,556
N/A
19
1.14
$
Source: The District's Business and Finance Department for long-term debt. Population and
personal income prepared in cooperation with the U.S. Department of Labor and Bureau of
Labor Statistics
NIA: Not available at time of printing.
- 107
PINON UNIFIED SCHOOL DISTRICT NO.4 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST EIGHT CALENDAR YEARS
(UNAUDITED)
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
Population
Personal
Income
(in thousands)
Per Capita
Personal
Income
Navajo County Unemployment Rate Estimated
District
Population
107,420
109,985
113,470
113,796
114,780
112,975
107,449
107,094
$1,722,659
$1,841,241
$1,994,113
$2,128,949
$2,262,529
$1,600,610
$2,634,137
$1,821,026
$15,917
$16,421
$18,380
$19,505
$20,369
$14,551
$23,316
$17,004
8.7
8.5
7.3
6.4
9.2
15.4
15.7
14.9
10,102
9,756
9,411
8,852
8,866
8,817
8,386
8,721
Source: "Personal Income" and "Per Capita" information from the Bureau of Economic Analysis
"Population" and "Unemployment Rate" is from the State of Arizona
- 108
PINON UNIFIED SCHOOL DISTRICT NO.4 PRINCIPAL EMPLOYERS JUNE 30, 2012
(UNAUDITED)
Employees
430
Rank 1
Percentage of
Total District Employment 43
Pinon Unified School District #4
318
2
32
Pinon Health Center
134
3
13
Basha's Grocery Store
50
4
5
Pinon Community School
44
5
4
Conoco Gas Station
20
6
2
Pinon Chapter House
4
7
1
Employer
Peabody Energy
Total District Employment
1,000
Source: Census Bureau Statistics of U.S. Businesses, Local Employer Poll
*Data not available
NI A: Not available at time of printing.
- 109
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST EIGHT FISCAL YEARS
(UNAUDITED)
Function
2005
Full-time Equivalent Employees as of June 30
2006
2007
2008
2009
2010
2011
2012
5
3
3
3
3
3
9
Supervisory
Consultants/supervisors of instruction
Principals
Assistant Principals
Total Supervisory
7
3
2
12
7
3
2
12
6
3
2
11
8
3
2
13
8
3
4
15
7
2
3
12
Instruction
Teachers
Aides
Total Instruction
91
17
108
79
21
100
77
18
95
85
5
90
80
4
84
80
8
88
81
92
84
7
91
Student Services
Counselors
Librarians
Technicians
Clerical/Other
Total Student services
2
4
7
12
25
33
5
18
36
3
1
10
16
30
3
3
0
8
14
2
3
0
8
13
3
3
0
8
14
2
2
0
8
12
3
1
0
8
12
Support and Administration
Administration
Service Workers
Clerical/Other/Aides
Total support & Adm.
7
62
8
77
4
64
17
85
7
68
14
89
7
65
23
95
6
67
22
95
6
67
22
95
6
70
20
96
7
67
17
91
Total
222
233
225
212
207
209
211
203
10
Source: This source of this information is from the District Human Resources Department.
*: Data Prior to 2005 was not available
- 110
11
II
PINON UNIFIED SCHOOL DISTRICT NO.4 OPERATING STATISTICS LAST EIGHT YEARS (UNAUDITED) Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
Average
Daily
Membership
1413
1363
1282
1284
1277
1248
1213
1268
n
Operating
Expenditures
$15,547,151
14,709,935
15,976,290
16,072,223
15,254,351
15,971,565
16,115,727
17,910,538
Cost
per
Pupil
$11,003
10,793
12,462
12,517
11,945
12,798
13,286
14,125
Percentage
Change_
N/A
(1.9)%
15.5%
0%
(4.6)%
6.2%
3.8%
6.3%
Governmental
Activities
Cost per Percentage
:E;xpenses _ _
Pupi_1__ c;hanges
20,074,796
$14,207
N/A
17,615,815
12,924
(9.0)%
19,158,996
14,945
15.6%
20,246,040
15,768
5.7%
18,156,352
14,218
(9.8)%
19,259,804
15,433
8.5%
19,748,214
16,280
5.5%
21,116,343
16,653
2.3%
Source: The District's Business and Finance Department, and ADE School Lunch Program
*: Data Prior to 2005 was not available
N/A: Not available at time of printing
- 111
Teaching
Staff
91
79
77
85
80
80
81
84
Pupil
Teacher
Ratio
15.5
17.3
16.7
15.1
16.0
15.6
15.0
15.1
Percentage
of Students
Receiving
Free or
Reduced
Meals
88.1
88.0
86.7
86.5
89.0
90.0
91.1
89.6
PINON UNIFIED SCHOOL DISTRICT NO.4 SCHOOL BUILDING INFORMAnON LAST EIGHT FISCAL YEARS Fiscal Year
Schools
Elementary
June 30
2006
2007
2008
2009
2010
2011
2012
Buildings
Sq. Peet
Capacity
Enrollment
1
87,373
925
627
1
87,373
925
588
I
87,373
925
536
1
87,373
925
524
1
87,373
925
509
1
87,373
925
497
1
87,373
925
462
1
87,373
925
508
Buildings
Sq. Feet
Capacity
Enrollment
2
66,668
1,095
353
2
66,668
1,095
352
2
66,668
1,095
374
2
66,668
1,095
347
2
66,668
1,095
365
2
66,668
1,095
356
2
66,668
1,095
341
2
66,668
1,095
343
Buildings
Sq. Feet
Capacity
Enrollment
2
102,806
775
433
3
147,246
1,110
423
3
147,246
1,110
372
5
154,546
1,166
413
5
154,546
1,166
403
5
154,546
1,166
395
5
154,546
1,166
410
5
154,546
1,166
417
Buildings
Sq. Peet
5
9,402
5
9,402
5
9,402
5
9,402
5
9,402
5
9,402
5
9,402
5
9,402
Sq. Peet
1
14,752
1
14,752
1
14,752
1
14,752
I
14,752
I
14,752
1
14,752
1
14,752
Garages
Buses
1
44
1
44
1
44
1
44
1
34
1
34
1
34
1
34
Football Pields
Running Tracks
Base/softball
Playgrounds
1
1
1
4
1
1
I
4
1
1
1
4
1
1
1
4
1
1
2
4
I
1
2
4
I
1
2
4
I
1
2
4
Middle
High School
Other
Administrative
Transportation
Athletics
Source: The District's facilities records and School Facilities Board records.
NIA: Not available at the time of printing.
- 112
SINGLE AUDIT SECTION
- 113
- 114
HAFEN
BUCKNER
EVERETT
&GRAFF, PC
hbeg.com
(435)673-6167 F: (435)673-6166
90 East 200 North, St
UT 84770
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Governing Board
Pinon, AZ
Members of the Board:
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the Pinon Unified School District No.4 (District) as of and
for the year ended June 30, 2012, which collectively comprise the District's basic financial statements
and have issued our report thereon dated March 15,2013. 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.
Internal Control Over Financial Reporting
Management of Pinon Unified School District No.4, is responsible for establishing and maintaining
effective internal control over financial reporting. In planning and performing our audit, we
considered the District's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the District's internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of Pinon Unified School
District No. 4's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the District's financial statements will not be prevented, or detected and
corrected on a timely basis.
- 115
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identifY all deficiencies in
internal control over financial reporting that might be deficiencies, significant deficiencies, or
material weaknesses. We did not identifY any deficiencies in internal control over financial reporting
that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit and, accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to the management of the Pinon Unified School
District No.4, in a separate letter dated March 15,2013.
This report is intended solely for the information and use of the Governing Board, management of Pinon
Unified School District No.4, federal awarding agencies and pass-through agencies and is not intended
to be and should not be used by anyone other than these specified parties.
Ckner'EVer~~ (~(r.e,
- 116
HAFEN
BUCKNER
EVERETT
&GRAFF,pc
hbeg.com
(435)673-6167 F: (435)673-6166
90 East 200 North, St George, UT 84770
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Governing Board Pinon Unified School District No.4 Pinon, AZ Members of the Board: Compliance
We have audited Pinon Unified School District No. 4's compliance with the types of compliance
requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-133
Compliance Supplement that could have a direct and material effect on each of Pinon Unified School
District No. 4's major federal programs for the year ended June 30, 2012. Pinon Unified School District
No. 4's major federal programs are identified in the summary of auditors' results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts and grants applicable to each of its major federal programs is the responsibility of
Pinon Unified School District No. 4's management. Our responsibility is to express an opinion on Pinon
Unified School District No. 4's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-I33
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about
Pinon Unified School District No. 4's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of Pinon Unified
School District No. 4's compliance with those requirements.
- 117
In our opinion, Pinon Unified School District No.4 complied, in all material respects, with the
compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2012.
Internal Control Over Compliance
Management of Pinon Unified School District No.4 is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to federal programs. In planning and performing our audit, we considered the
Pinon Unified School District No. 4's internal control over compliance with requirements that could
have a direct and material effect on a major federal program to determine the auditing procedures for
the purpose of expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of Pinon Unified School District No. 4's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of the internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in the internal
control over compliance that might be deficiencies, significant deficiencies, or material weaknesses.
We did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the Pinon Unified School District No.4 as and for the year
ended June 30,2012, and have issued our report thereon dated March 15,2013, which contained
unqualified opinions on those financial statements. Our audit was performed for the purpose of
forming opinions on the financial statements as a whole. The accompanying schedule of expenditures
of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133
and is not a required part of the financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
- 118
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the information is fairly stated in all material respects in relation to the financial
statement taken as a whole.
This report is intended solely for the information and use ofthe Governing Board, management of
Pinon Unified School District No. 4's, federal awarding agencies and pass-through entities, and is not
intended to be and should not be used by anyone other than these specified parties.
/5t4{)/Ivvv c~~/&1I,
er, Everett, & Graff pc
- 119
re.
- 120
PINON UNIFIED SCHOOL DISTRICT NO.4 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2012
«'ederal
Grantor's
Major
_ _ _ _ _ _ _ _;..Fe;;.;d;.;;e.;.;ra;;.;l..;;o.;.r.;.P.;.as;.;;s..,;-T;;.;h;.;;r.;.ou~gii,;h.;.G;;;.;;.;ra;.;;n;.;,to;.;;r_ _ _ _ _ _ _ _ CFDA # _ _......N..,;'u;.,;m;;.,b..,e...r_ _ _ Expenditures Program
U.S. DEPARTMENT OF EDUCATION
Direct Programs:
Federal Impact Aid
Title VII - Indian Education
Passed through Arizona Department of Education:
Title I, Part A Cluster:
Title I, Part A Grants to Local Educational Agencies
ARRA - Title I, Part A Grants to Local Educational Agencies
Improving Teacher Quality - Title II
Education Technology Title II Part D
ESEA Title III-Ltd English & Immigrant Students
Special Education Cluster:
Special Education - Grants to States
Special Education - Preschool Grants
Special Education - Navajo Nation
ARRA - Special Education - Preschool Grants
Vocational Education Grant After School Learning Centers - 21 st Century Community Learning Centers ARRA - Education Jobs Fund 84.041
84.060
S041B20 125748
S060AII0034
84.010
84.389
84.367
84.318
84.365
SOlOAII0003
S389A090003
S281A030003
S318X040003
T365A200003
84.027
84.173
84.173
84.392
84.048
84.287
84.410
H027AOllOO07
H173AllOO03
99-0S4-ED
H392A090003
V048A 11 0003
S287C020003A
ISAOER-II-ISA-EJ-OOI
$ 6,777,676
X
236,676
1,691,636
88,400
136,675
1,413
63,319
239,527 723 16,736 630 31,662 51,766 48,951 9,385,790
Total U.S. Department of Education
U.S. DEPARTMENT OF ENERGY
Passed through State of Arizona School Facilities Board: ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) U.S. DEPARTMENT OF AGRICULTURE
Passed through Arizona Department of Education: Commodities - Food Distribution Frcsh Fruit and Vegetable Program Nutrition Cluster: School Breakfast Programs National School Lunch Programs 8l.128
090204000-9999-0(llEFF
10.565
10.582
F73166
10.553
10.555
7F3072
71"3072
489,121
----'-'-
32,490
N/A
137,737
563, lOS
733,332
Total U.S. Department of Agriculture
U.S. DEPARTMENT OF INTERIOR Direct Programs: Payments in Lieu of Taxes Passed through Navajo Nation: Johnson O'Malley Supplemental Assistance 15.226
N/A
55,437
15.130
1450CTHOOX80103
82,537
Total U.S. Department ofinterior
137,974
U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES
Passed through Navajo Nation: Comprchensive School Health 93.237
N/A
2,297
U.S. DEPARTMENT OF DEFENSE ROTC Language and Culture Training Grants 12.357
N/A
26,839
TOTAL EXPENDITURES OF FEDERAL AWARDS
$ 10,775,353
See accompanying notes to schedule.
-121
X
PINON UNIFIED SCHOOL DISTRICT NO.4 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 NOTE 1 - BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal grant activity of Pinon
Unified School District No.4 and is presented on the modified accrual basis ofaccounting. The
information in this schedule is presented in accordance with the requirements ofOMB Circular
A-133, Audits ofStates, Local Governments, and Non-Profit Organizations.
NOTE 2 - CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS
The program titles and CFDA numbers were obtained from the federal or pass-through grantor or
the Catalog ofFederal Domestic Assistance.
NOTE 3 - E-RATE FUNDING
The District received $74,363 of assistance associated with the E-Rate reimbursement program
sponsored by the Federal Communication Commission, passed through the Universal Service
Administrative Co. Schools and Libraries Division. This assistance is not considered Federal
Awards in accordance with OMB Circular A-133, and therefore the related expenditures are not
presented in this schedule.
- 122
PINON UNIFIED SCHOOL DISTRICT NO.4 SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Unqualified
Type of auditors' report issued: Internal control over financial reporting:
• Material weaknesses identified?
• Significant deficiencies identified that are not
considered to be material weaknesses?
_ _--'yes
X
No
_ _ _yes
X
none reported
Noncompliance material to financial statements noted?
_ _ _yes
X
No
X
No
X
none reported
X
No
Federal Awards
Internal control over major programs:
• Material weaknesses identified?
• Significant deficiencies identified that are not
considered to be material weaknesses?
Type of auditors' report issued on compliance for major
programs:
Unqualified
Any audit findings disclosed that are required to be reported in
accordance with section 510(a) ofOMB Circular A-l33?
Identification of major programs:
CFDA Numbers 81.128 84.041 Name of Federal Program or Cluster
ARRA - Energy Efficiency and Conservation Block Grant Program
Federal impact Aid
Dollar threshold used to distinguish between Type A and Type
B programs:
$300,000
Auditee qualified as low-risk auditee? X
- 123
- - -no
PINON UNIFIED SCHOOL DISTRICT NO.4 SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 SECTION II - FINANCIAL STATEMENT FINDINGS
We noted no material weaknesses, significant deficiencies, or instances ofnoncompliance related to
the financial statements that are required to be reported in accordance with Government Auditing
Standards.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
We noted no material weaknesses, significant deficiencies, or instances ofnoncompliance related to
the audit of major federal programs as required to be reported by OMB Circular A-l33.
- 124
PINON UNIFIED SCHOOL DISTRICT NO.4 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2012 Status of Federal Award Findings and Questioned Costs
The District had no findings or questioned costs related to federal awards noted in prior audits
that require a status.
- 125
- 126

pinon unified school district no.4 pinon, arizona comprehensive

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