Oracle School District #2gfoa.net/cafr/COA2012/OracleElementarySchoolDistrictAZ.pdf · southeastern...

ORACLE SCHOOLDISTRICT #2

725 N. Carpenter Dr. • Oracle, Arizona 85623

Elizabeth Harmon [email protected]

520-896-2789

Oracle School District #2 ORACLE RIDGE CAMPUS Pre-School and Kindergarten 520-896.3080/520.896.3082 Oracle School District #2

725 N. Carpenter Dr., Oracle, Arizona 85623 Phone: 520.896.3071 Fax: 520.896.3088 MOUNTAIN VISTA CAMPUS Grades First-Eighth

520-896.3000/520.896.3001

G O V E R N I N G B O A R D Nellie Doran

[email protected] 520-896-9257

Alicia Bristow [email protected]

520-896-9150

Jack Siddle [email protected]

520-896-2507

Kurt Steffens [email protected]

520-498-1944

Comprehensive Annual Financial Reportfor the Fiscal Year Ended June 30, 2012

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2

ORACLE, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012

Issued by: Business Department


TABLE OF CONTENTS

INTRODUCTORY SECTION Page Letter of Transmittal i ASBO Certificate of Excellence vi GFOA Certificate of Achievement vii Organizational Chart viii List of Principal Officials ix FINANCIAL SECTION INDEPENDENT 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 25 Statement of Revenues, Expenditures and Changes in Fund Balances –

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

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

Statement of Fiduciary Assets and Liabilities 29

Notes to Financial Statements 30


TABLE OF CONTENTS (Cont’d)

FINANCIAL SECTION (Cont’d) Page SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES – BUDGET AND ACTUAL (Required Supplementary Information)

General Fund 46 Other Federal Projects Fund 47 Note to Required Supplementary Information 48

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds: Combining Balance Sheet – All Non-Major Governmental Funds –

By Fund Type 52

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 53

Special Revenue Funds:

Combining Balance Sheet 56 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances 60 Combining Schedule of Revenues, Expenditures and

Changes in Fund Balances – Budget and Actual 64

Capital Projects Funds: Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures and

Changes in Fund Balances 82 Combining Schedule of Revenues, Expenditures and

Changes in Fund Balances – Budget and Actual 84


TABLE OF CONTENTS (Cont’d)

FINANCIAL SECTION (Concl’d) Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl’d)

Agency Funds:

Combining Statement of Fiduciary Assets and Liabilities 92 Combining Statement of Changes in Fiduciary Assets and Liabilities 93

STATISTICAL SECTION Financial Trends:

Net Assets by Component 97 Expenses, Program Revenues, and Net (Expense)/Revenue 98 General Revenues and Total Changes in Net Assets 100 Fund Balances – Governmental Funds 102 Governmental Funds Revenues 104

Governmental Funds Expenditures and Debt Service Ratio 106 Other Financing Sources and Uses and Net Changes in Fund Balances – Governmental Funds 108

Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property 109 Direct and Overlapping Property Tax Rates 110 Principal Property Taxpayers 111 Property Tax Levies and Collections 112


TABLE OF CONTENTS (Concl’d)

STATISTICAL SECTION (Concl’d) Page Debt Capacity:

Outstanding Debt by Type 113 Direct and Overlapping Governmental Activities Debt 114 Legal Debt Margin Information 115

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics 116 Principal Employers 117

Operating Information: Full-Time Equivalent District Employees by Type 118 Operating Statistics 120 Capital Assets Information 121

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INTRODUCTORY SECTION

Elizabeth Harmon [email protected]

520-896-2789

Oracle School District #2 ORACLE RIDGE CAMPUS Pre-School and Kindergarten 520-896.3080/520.896.3082 Oracle School District #2

725 N. Carpenter Dr., Oracle, Arizona 85623 Phone: 520.896.3071 Fax: 520.896.3088 MOUNTAIN VISTA CAMPUS Grades First-Eighth

520-896.3000/520.896.3001

G O V E R N I N G B O A R D

Nellie Doran [email protected]

520-896-9257

Alicia Bristow [email protected]

520-896-9150

Jack Siddle [email protected]

520-896-2507

Kurt Steffens [email protected]

520-498-1944

December 11, 2012 Citizens and Governing Board Oracle Elementary School District No. 2 725 N. Carpenter Dr. Oracle, AZ 85623 State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Oracle Elementary School District No. 2 (District) 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 of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 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 auditors 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 auditors’ report is presented as the first component of the financial section of this report.

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The independent audit of the financial statements of the District was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the District’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE DISTRICT The District is one of 19 public school districts located in Pinal County, Arizona. The Oracle Elementary School District was organized in 1905. Our aging buildings are an ongoing task with the preventive maintenance and maintaining operating efficiency. The oldest building is 74 years old and the newest building is 10 years old with the funding for that newest building provided by School Facilities Board grants. The District encompasses 314 square miles which includes Eagle Crest Ranch a family residential development, SaddleBrooke retirement communities, unincorporated town of Oracle and the outlying areas of Willow Springs and Falcon Valley. It provides a program of public education from preschool through grade eight, with an estimated current enrollment of 510 students. Our district operates a Community Schools Learning Center providing preschool and before and after school child care. Oracle Elementary School District has no high school. Our estimated 235 high school students are tuitioned out to either Mammoth/San Manuel Unified School District or Canyon del Oro High School in the Amphitheater Unified School District. Both high schools are large enough to offer an excellent academic, athletic, arts and other extracurricular programs. Oracle’s elevation is 4,524 and the vegetation consists of mostly Emory oak and grasses with granite boulders adding intrigue to the landscape. Daily summer temperatures range from 75 to 95 degrees with cooling monsoon rains and picturesque sunsets. Oracle is located in southeastern Arizona close to snow skiing, water skiing, sand dunes, hunting, fishing, camping, golfing, Arizona historical sites, the Tucson Symphony, and other cultural offerings. Oracle itself is a historically interesting town, the community began to grow in the late 1870’s as gold and silver were discovered and the Christmas and New Year mines opened. By 1880, a post office had been established. Other history includes a Buffalo Bill Cody owned mine in about 1911. Other points of interest within the District for indoor/outdoor entertainment are at the Oracle State Park, Peppersauce Canyon Campground, YMCA, Rancho Linda Vista Art Gallery, Triangle L Ranch Gallery, Arizona Trail, Mt. Lemmon Valley Ski Range, Biosphere 2, Santa Catalina Mountain Range, San Pedro River Valley (beautiful wild flowers scenery), and Acadia Ranch Museum (Oracle Historical Society). The town has a yearly Oracle Oaks Festival, Fiesta, and Art Tour. Oracle also offers a few unique Bed & Breakfast and two historical retreat settings 3C Ranch and The Historical C.O.D. Ranch.

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Eagle Crest Ranch is approximately 15 miles from the schools in the District and offers a suburban feeling with spectacular mountain views. This community is adjoined by thousands of acres of state and federal lands. The one and two story homes are convenient to Catalina State Park, medical facilities, major employers, and shopping. SaddleBrooke is approximately 17 miles from the schools in the District. SaddleBrooke offers a luxurious premier Golf, Tennis & Spa Resort with biking, three clubhouses with pools, and other amenities. A fitness center, pro shop, library, restaurants and numerous daily and nightly activities all at the base of the Santa Catalina Mountains. The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses. The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls. The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, food services, auxiliary, athletic functions and Community Schools Learning Center. The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board. The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies.

iv

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. Oracle is small town servicing a population of approximately 3,686. The Oracle Elementary School District is the major employer in our District. Tucson, Arizona our neighboring large city is approximately 32 miles away and its industries provide employment for many of our residents. Many residents are employed in the copper mining industry and commute to the neighboring towns of Hayden and Globe, Arizona. The town of Florence, Arizona which is the county seat also provides employment opportunities for our residents. Oracle’s unemployment rate is estimated at 10.10%, poverty rate is estimated at 8% and median household income is at approximately $42,789. Our local businesses even with the slow economy have held in place consistently during the past several years, some of the local businesses include convenience stores, dollar stores, real estate, restaurants, grocery store, schools, library, county services, fitness centers, massage therapy services, senior citizens center, electric utility company, dental facility, health medical center, flower shop, arts and others. The financial condition of the District has remained steady. The District has utilized the financial funding formulas available to us by the State of Arizona. Student enrollment has increased approximately 3 to 5 percent each year for the last seven years, with last year leveling out. The District’s conservative, consistent review of budgeting, planning and adjusting has provided District stability to stay within budget limits and retain the allowable carry forward amount yearly. The State of Arizona's unknown funding consistency is challenging to all Arizona school districts. Long-term Financial Planning. The District’s awareness to evolving economic challenges and its careful long-range planning have been important factors in the District’s fiscal stability. The capability to maintain fiscal conservatism, flexibility, adherence to the highest accounting and management practices, and maintain reserve has been the 4 practiced key aspects in the finance department. For the past seven years we have been able to maintain approximately the allowable 4% carry forward which allows our District to adjust to the State’s fluctuating funding challenges. Student enrollment has increased each year for the past seven years and in the current year has leveled out. Our District’s tax rate of 3.01 is one of the lowest in Arizona. The primary tax rate is 2.76. The secondary tax rate, which funds our override, is 0.25. The override is a 7 year override with the first 5 years at the full 15% and the two remaining years at a reducing phase down amount. The override is in two parts one which is a 5% Kindergarten through 3rd grade Maintenance and Operation and a second part which is a 10% Maintenance and Operation with both portions emphasizing high quality instruction, enhancing educational programs, and class size reduction. The override expires at the end of fiscal year 2015-16. The value of assessed valuation coming from the number of homes in the Eagle Crest Ranch, Oracle, and SaddleBrooke area and the budget limitations keep the tax rate low. Our Eagle Crest, Oracle and SaddleBrooke communities are very supportive of the District needs and provide us with approximately 50 volunteers.

v

ACKNOWLEDGMENTS Awards. The Association of School Business Officials International (ASBO) awards a Certificate of Excellence in Financial Reporting and the Government Finance Officers Association (GFOA) awards a Certificate of Achievement for Excellence for comprehensive annual financial reports. In order to be awarded these certificates, the District must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. The District was awarded the certifications from ASBO and GFOA for fiscal year 2010-11. This was the first year the District applied for this prestigious award. The Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report meets the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year 2011-12 certificates. Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedication services of the entire staff of the business department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. We also wish to express our sincere appreciation to the entire staff of the Oracle School District for their unfailing support in maintaining the highest standards of professionalism in the management of their individual departments and support to the District’s management of finances. In closing, without the leadership and support of the Governing Board of the District, the administrative personnel in various departments, and through the competent service of Heinfeld & Meech, P.,C., Certified Public Accountant Firm, preparation of the report would not have been possible. Respectfully submitted, Todd Kissick Dawn Ruiz Superintendent Business Manager

ix


LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Alicia Bristow President

Jack Siddle Nellie Doran Clerk Member Elizabeth Harmon Kurt Steffens Member Member

ADMINISTRATIVE STAFF

Todd Kissick, Superintendent

Dennis Blauser, Principal

Nannette Soule, Assistant Principal for Academic Programs

Dawn Ruiz, Business Manager

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT Governing Board Oracle Elementary School District No. 2 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Oracle Elementary School District No. 2 (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 the 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 Oracle Elementary School District No. 2, 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. In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2012, on our consideration of the Oracle Elementary School District No. 2’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.

TUCSON • PHOENIX • FLAGSTAFF • ALBUQUERQUE www.heinfeldmeech.com

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

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

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 5 through 14 and budgetary comparison information on pages 46 through 48 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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 financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the 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 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 do not express an opinion or provide any assurance on them. HEINFELD, MEECH & CO., P.C. CPAs and Business Consultants December 11, 2012

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

YEAR ENDED JUNE 30, 2012

Page 5

As management of the Oracle Elementary School District No. 2 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 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 increased $608,269 which

represents a 12 percent increase from the prior fiscal year primarily as a result of efforts by the District to maximize budget and cash carryforward for future year expenditures.

General revenues accounted for $6.0 million in revenue, or 85 percent of all current fiscal

year revenues. Program specific revenue in the form of charges for services and grants and contributions accounted for $1.1 million or 15 percent of total current fiscal year revenues.

The District had approximately $6.5 million in expenses related to governmental

activities, a decrease of 2 percent from the prior fiscal year.

Among major funds, the General Fund had $5.5 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $5.3 million in expenditures. The General Fund’s fund balance increase from $706,798 at the prior fiscal year end to $904,635 at the end of the current fiscal year was primarily due to efforts by the District to maximize budget and cash carryforward for future year expenditures.



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OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements. The statement of net assets presents information on all of the 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 of activities 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 of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). The government-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, operation of non-instructional services, and interest on long-term debt. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds.

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



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OVERVIEW OF FINANCIAL STATEMENTS (Concl’d) Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Other Federal Projects, and Unrestricted Capital Outlay Funds , all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, the fiduciary funds do not have a measurement focus and are reported on the accrual basis.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has been provided for the General Fund and a Special Revenue Fund as required supplementary information.



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GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $5.7 million at the current fiscal year end. By far the largest portion of the District’s net assets 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. The District had no related debt. In addition, a portion of the District’s net assets are restricted for special purposes, debt service repayment, and capital outlay investment. The following table presents a summary of the District’s net assets for the fiscal years ended June 30, 2012 and June 30, 2011.

As of

June 30, 2012As of

June 30, 2011 Current assets $ 2,912,503 $ 1,903,811Capital assets, net 3,460,473 3,477,577

Total assets, net 6,372,976 5,381,388 Current liabilities 503,910 119,806 Long-term liabilities 148,758 149,543

Total liabilities 652,668 269,349 Net assets:

Invested in capital assets 3,460,473 3,477,577 Restricted 1,435,908 387,549 Unrestricted 823,927 1,246,913

Total net assets $ 5,720,308 $ 5,112,039



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d) 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 fiscal year. The District’s financial position is the product of several financial transactions including the net result of activities, the acquisition and disposal of capital assets, and the depreciation of capital assets. The addition of $235,683 in accumulated depreciation as a result of current year depreciation expense related to capital assets was a significant current year transaction that had an impact on the Statement of Net Assets. Changes in net assets. The District’s total revenues for the current fiscal year were $7.1 million. The total cost of all programs and services was $6.5 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 Ended

June 30, 2012

Fiscal Year Ended

June 30, 2011Revenues:

Program revenues: Charges for services $ 125,097 $ 125,066 Operating grants and contributions 955,123 720,191 Capital grants and contributions 10,275 18,162

General revenues: Property taxes 4,051,419 3,578,459 Investment income 16,950 16,467 Unrestricted county aid 10,804 Unrestricted state aid 1,892,086 1,677,179 Unrestricted federal aid 16,234 20,311 Total revenues 7,067,184 6,166,639

Expenses: Instruction 3,906,591 4,210,900 Support services – students and staff 443,383 403,386 Support services – administration 735,921 675,961 Operation and maintenance of plant services 641,159 577,082 Student transportation services 468,491 447,166 Operation of non-instructional services 261,533 281,838 Interest on long-term debt 1,837 3,533

Total expenses 6,458,915 6,599,866 Change in net assets $ 608,269 $ (433,227)

Net assets, beginning 5,112,039 5,545,266 Net assets, ending $ 5,720,308 $ 5,112,039



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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)

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

The increase of $234,932 in operating grants and contributions was due to new federal grant funding for the Education Jobs Fund and the ARRA State Energy Grant.

The increase of $472,960 in property taxes was due to an increase in the District’s primary levy as a result of an increase in the primary tax rate.

The decrease of $304,309 in instruction was primarily due to a decrease in high school tuition paid by the District.

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

Year Ended June 30, 2012 Year Ended June 30, 2011 Total

Expenses Net (Expense)/

Revenue Total

Expenses Net (Expense)/

Revenue Instruction $ 3,906,591 $ (3,169,737) $ 4,210,900 $ (3,657,568)Support services – students and staff 443,383 (366,526) 403,386 (370,616)Support services – administration 735,921 (697,492) 675,961 (672,431)Operation and maintenance of plant services 641,159 (623,443) 577,082 (530,685)Student transportation services 468,491 (462,086) 447,166 (443,636)Operation of non-instructional services 261,533 (47,299) 281,838 (57,978)Interest on long-term debt 1,837 (1,837) 3,533 (3,533)

Total $ 6,458,915 $ (5,368,420) $ 6,599,866 $ (5,736,447)

The cost of all governmental activities this year was $6.5 million.

Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $1.1 million.

Net cost of governmental activities of $5.4 million was financed by general revenues, which are made up of primarily property taxes of $4.1 million and state aid of $1.9 million.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year.



Page 12

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS (Concl’d) The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $2.3 million, an increase of $591,371 due primarily to an increase in fund balance for the District’s major funds as noted below. The General Fund is the principal operating fund of the District. The increase in fund balance of $197,837 to $904,635 as of fiscal year end was a result of efforts by the District to maximize budget and cash carryforward for future year expenditures. General Fund revenues increased $234,535 as a result of increased property tax revenue due to an increase in the primary levy. General Fund expenditures decreased $45,024. The Other Federal Projects Fund’s fund balance increased $181,007 as a result of increase in reserve for prepaid health insurance. The Other Federal Projects Fund revenues increased $314,499 due to an increase in federal grant funding for the Education Jobs Fund and the ARRA State Energy Grant. The Unrestricted Capital Outlay Fund revenues increased $264,688 due to increased property tax revenue as a result of an increase in the primary levy. BUDGETARY HIGHLIGHTS Over the course of the year, the District revised the General Fund annual expenditure budget for a decrease in high school tuition and a legislative capital budget reduction. The difference between the original budget and the final amended budget was a $402,989 decrease, or 7 percent. The revenue budget for the General Fund was not revised, therefore, a positive budgeted fund balance occurred when the expenditure budget was decreased. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows:

The favorable variance of $179,451 in instruction expenditures was a result of budgeting to the maximum general budget limit to maximize the budget carryforward to provide capacity in future years for contingencies.

The unfavorable variance of $107,510 in support services – students and staff was a result of an unanticipated increase in expenditures for the District’s support staff and instructional aids.



Page 13

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of year end, the District had invested $6.9 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. Total depreciation expense for the current fiscal year was $235,683. The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2012 and June 30, 2011.

As of June 30, 2012

As of June 30, 2011

Capital assets – non-depreciable $ 280,000 $ 280,000 Capital assets – depreciable, net 3,180,473 3,197,577

Total $ 3,460,473 $ 3,477,577 Additional information on the District’s capital assets can be found in Note 6. Debt Administration. The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 15 percent of the total secondary assessed valuation) and the statutory debt limit on Class B bonds (the greater of 5 percent of the secondary assessed valuation or $1,500 per student). The current total debt limitation for the District is $29.0 million and the Class B debt limit is $9.7 million. At fiscal year end, the District had no outstanding general obligation debt. 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. Among them:

Fiscal year 2011-12 budget balance carry forward. (4%) District student population (estimated 418 students). Employee salaries remained constant. Employee benefits remained constant.

Also considered in the development of the budget is the local economy and inflation of the surrounding area. Budgeted expenditures in the General Fund decreased one percent to $5.0 million in fiscal year 2012-13. State aid and property taxes are expected to be the primary funding sources.



Page 14

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business Office, Oracle Elementary School District No. 2, 725 North Carpenter Drive, Oracle, Arizona 85623.

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ASSETSCurrent assets:

Cash and investmentsProperty taxes receivableAccounts receivableDue from governmental entitiesPrepaid items

Total current assets

Noncurrent assets:LandLand improvementsBuildings and improvementsVehicles, furniture and equipmentAccumulated depreciation

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:

Accounts payableCompensated absences payableUnearned revenues

Total current liabilities

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

Total noncurrent liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debtRestricted for:

Federal and state projectsFood serviceOther local initiativesCapital outlay

UnrestrictedTotal net assets

Governmental Activities

$ 1,956,43084,4122,117

689,966179,578

2,912,503

280,000501,448

4,670,6341,447,465

(3,439,074)3,460,4736,372,976

499,04345,0004,867

548,910

103,758103,758652,668

3,460,473

312,9268,116

275,810839,056823,927

$ 5,720,308

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2STATEMENT OF NET ASSETS

JUNE 30, 2012

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

Page 18

heatherl

Text Box

Program Revenues

Net (Expense) Revenue and

Changes in Net Assets

Functions/ProgramsGovernmental activities:

InstructionSupport services - students and staffSupport services - administrationOperation and maintenance

of plant servicesStudent transportation servicesOperation of non-instructional servicesInterest on long-term debt

Total governmental activities

Expenses

$ 3,906,591443,383735,921

641,159468,491261,533

1,837$ 6,458,915

Charges for Services

$ 78,713

1,135

45,249

$ 125,097

Operating Grants and

Contributions

$ 647,86676,85738,429

16,5816,405

168,985

$ 955,123

Capital Grants and

Contributions

$ 10,275

$ 10,275

Governmental Activities

$ (3,169,737)(366,526)(697,492)

(623,443)(462,086)(47,299)(1,837)

(5,368,420)

General revenues:Taxes:

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

Investment incomeUnrestricted state aidUnrestricted federal aid

Total general revenues

Changes in net assets

Net assets, beginning of year

Net assets, end of year

3,851,323200,09616,950

1,892,08616,234

5,976,689

608,269

5,112,039

$ 5,720,308

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

Page 19


FUND FINANCIAL STATEMENTS

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

Total assets

LIABILITIES AND FUND BALANCESLiabilities:

Accounts payableDue to other fundsDeferred revenues

Total liabilities

Fund balances:RestrictedUnassigned

Total fund balances

Total liabilities and fund balances

General

$ 902,48380,285

393,860

$ 1,376,628

$ 403,940

68,053471,993

904,635904,635

$ 1,376,628

Other Federal Projects

$

198,296

179,578$ 377,874

$ 43,547153,320

196,867

181,007

181,007

$ 377,874

Unrestricted Capital Outlay

$ 630,3034,127

20,013

$ 654,443

$ 29,047

2,86031,907

622,536

622,536

$ 654,443

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2 BALANCE SHEET - GOVERNMENTAL FUNDS

JUNE 30, 2012

Page 22


Non-Major Governmental

Funds

$ 423,644

2,11777,797

180,613

$ 684,171

$ 22,50927,2934,867

54,669

629,502

629,502

$ 684,171

Total Governmental

Funds

$ 1,956,43084,412

2,117689,966180,613179,578

$ 3,093,116

$ 499,043180,61375,780

755,436

1,433,045904,635

2,337,680

$ 3,093,116

Page 23

Total governmental fund balances 2,337,680$

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

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

Governmental capital assets 6,899,547$ Less accumulated depreciation (3,439,074) 3,460,473

Some property tax revenues will not be available to pay for current period expenditures and, therefore, are deferred in the funds. 70,913

Long-term liabilities for compensated absences payable are notdue and payable in the current period and, therefore, are not reported in the funds. (148,758)

Net assets of governmental activities 5,720,308$

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET ASSETSJUNE 30, 2012

Page 25


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

Total revenues

Expenditures:Current -

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

Capital outlayDebt service -

Principal retirementInterest and fiscal charges

Total expenditures

Excess (deficiency) of revenues over expenditures

Other financing sources (uses):Transfers inTransfers out

Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

Increase (decrease) in reserve for prepaid items

Fund balances, end of year

General

$ 20,9153,821,4851,612,079

16,2345,470,713

3,141,428386,104658,058571,223407,26935,27552,877

22,1551,837

5,276,226

194,487

3,350

3,350

197,837

706,798

$ 904,635


$ 64

337,215337,279

113,12414,53238,17514,27525,752

129,992

335,850

1,429

1,429

179,578

$ 181,007


$ 3,709196,695

82,697

283,101

113,929

113,929

169,172

169,172

453,364

$ 622,536

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDSYEAR ENDED JUNE 30, 2012

Page 26



Funds

$ 234,86522

197,310510,677942,874

525,91245,99425,00916,5817,122

222,11753,434

896,169

46,705

(3,350)(3,350)

43,355

586,147

$ 629,502

Total Governmental

Funds

$ 259,5534,018,2021,892,086

864,1267,033,967

3,780,464446,630721,242602,079440,143257,392350,232

22,1551,837

6,622,174

411,793

3,350(3,350)

411,793

1,746,309

179,578

$ 2,337,680

Page 27

Net changes in fund balances - total governmental funds 591,371$

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

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

Expenditures for capitalized assets 218,579$ Less current year depreciation (235,683) (17,104)

Some property tax revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 33,217

Repayments of capital lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement ofNet Assets. 22,155

Expenses for compensated absences reported in the Statement of Activities do not requirethe use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (21,370)

Change in net assets in governmental activities 608,269$

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYEAR ENDED JUNE 30, 2012

Page 28


ASSETSCash and investments

Total assets

LIABILITIESDeposits held for othersDue to student groups

Total liabilities

Agency

$ 11,176$ 11,176

$ 3,8987,278

$ 11,176

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

JUNE 30, 2012

Page 29


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2 NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012

Page 30

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Oracle Elementary School District No. 2 (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, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services. 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 financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District.


JUNE 30, 2012

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted Federal, State and County aid, and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service 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.


JUNE 30, 2012

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) Property taxes, Federal, State, and County aid, tuition and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Deferred revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider. Delinquent property taxes and other receivables that will not be collected within the available period have been reported as 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 Operation Fund as well as the Medicaid Reimbursement, School Plant, Indirect Costs, Auxiliary Operations, Insurance Proceeds, Litigation Recovery, Intergovernmental Agreements, and Soft Capital Allocation Funds. These funds are maintained as separate funds for accounting and budgetary purposes but do not meet the criteria for separate reporting in the financial statements. Other Federal Projects Fund – The Other Federal Projects Fund accounts for financial assistance received for other supplemental federal projects.

Unrestricted Capital Outlay Fund – The Unrestricted Capital Outlay Fund accounts for transactions relating to the acquisition of capital items.


JUNE 30, 2012

Page 33

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

Additionally, the District reports the following fund type: Fiduciary Funds – The Fiduciary Funds are Agency Funds which account for resources held by the District on behalf of others. This fund type includes the Student Activities Fund, which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds.

The agency funds are custodial in nature and do not have a measurement focus and are reported on the accrual basis of accounting. The agency funds are reported by fund type. D. Cash and Investments A.R.S. require the District to deposit certain cash with the County Treasurer. 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, dividends, and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the governmental fund financial statements. F. Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles.


JUNE 30, 2012

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

G. Property Tax Calendar Property tax levies are obtained by applying tax rates against either the primary assessed valuation or the secondary assessed valuation. Primary and secondary valuation categories are composed of the exact same properties. However, the primary category limits the increase in property values to 10% from the previous year, while there is no limit to the increase in property values for secondary valuation. Override and debt service tax rates are applied to the secondary assessed valuation and all other tax rates are applied to the primary assessed valuation. The County levies real property taxes on or before the third Monday in August, which become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May. The billings are considered past due after these dates, at which time the applicable property is subject to penalties and interest. The County also levies various personal property taxes during the year, which are due the second Monday of the month following receipt of the tax notice, and become delinquent 30 days thereafter. Pursuant to A.R.S., a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise. H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements. I. Capital Assets Capital assets, which include land and improvements, buildings and improvements; vehicles, furniture, and equipment; and construction in progress, are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost in excess of $5,000 and an estimated useful life of more than one year. Such assets are recorded at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation.


JUNE 30, 2012

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d) 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 3 – 20 years Buildings and improvements 5 – 50 years Vehicles, furniture and equipment 5 – 25 years

J. Compensated Absences The District’s employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Vacation may accumulate at a rate of 10-20 days per year based on years of service and position. Sick leave may accumulate between 10-12 days per year determined by the length of the employees' work year. Both vacation and sick leave are limited to a maximum of 180 days each. Any days in excess of the maximum amount that are unused are forfeited. Vacation and sick leave benefits are cumulative but do not vest with employees with five years of service or less. For employees who have more than five years of service, vacation benefits vest at the employee's per diem rate and sick leave vests at one-third of the employee's per diem rate, based on the final year of service. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences. K. Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net assets. Bond premiums and discounts, as well as issuance costs and the difference between the reacquisition price and the net carrying amount of the old debt, are deferred and amortized over the life of the bonds using the straight-line method over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.


JUNE 30, 2012

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d) 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 conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact.

Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation. Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported. Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a management official delegated that authority by the formal Governing Board action. The District does not have a formal policy for the utilization of assigned fund balance, accordingly, no assigned fund balance amounts are reported.


JUNE 30, 2012

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NOTE 2 – FUND BALANCE CLASSIFICATIONS (Concl’d) Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The District applies restricted resources first when 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.

General

Fund


Fund

Unrestricted Capital Outlay Fund


FundsFund Balances:

Restricted: Capital projects $ $ $ 622,536 $ 213,657 Voter approved initiatives 131,919 Federal and State projects 181,007 Food service 8,116 Other purposes 275,810

Unassigned 904,635 Total fund balances $ 904,635 $ 181,007 $ 622,536 $ 629,502

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Excess Expenditures Over Budget – At year end, the Soft Capital Allocation Fund had expenditures of $139,621 that exceeded the budget of $111,114 by $28,507, which constitutes a violation of legal provisions. The District will work with the Arizona Department of Education to rectify the overbudget situation. At year end, the District had expenditures in other funds that exceeded the budgets, however, this does not constitute a violation of any legal provisions.


JUNE 30, 2012

Page 38

NOTE 4 – CASH AND INVESTMENTS A.R.S. authorize the District to invest public monies the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, in 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. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $11,176 and the bank balance was $230,495. 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 year end, the District’s investments consisted of the following.

Average Maturities Fair Value County Treasurer’s investment pool 949 days $ 1,956,430 Total $ 1,956,430

Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pool did not receive a credit quality rating from a national rating agency.

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


JUNE 30, 2012

Page 39

NOTE 5 – RECEIVABLES Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate, were as follows.

General

FundOther Federal Projects Fund

Unrestricted Capital

Outlay Fund


FundsDue from other governmental entities:

Due from Federal government $ 3,684 $ 198,296 $ $ 47,762 Due from State government 390,176 20,013 30,035

Net due from governmental entities $ 393,860 $ 198,296 $ 20,013 $ 77,797 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 UnearnedDelinquent property taxes receivable (General

Fund) $ 68,053 $ Delinquent property taxes receivable (Unrestricted

Capital Outlay Fund) 2,860 Grant drawdowns prior to meeting all eligibility

requirements (Non-Major Governmental Funds) 4,867 Total deferred revenue for governmental funds $ 70,913 $ 4,867


JUNE 30, 2012

Page 40

NOTE 6 – CAPITAL ASSETS A summary of capital asset activity for the current fiscal year follows.

Governmental Activities BeginningBalance Increase Decrease

EndingBalance

Capital assets, not being depreciated: Land $ 280,000 $ $ $ 280,000

Total capital assets, not being depreciated 280,000 280,000 Capital assets, being depreciated:

Land improvements 501,448 501,448 Buildings and improvements 4,628,834 41,800 4,670,634 Vehicles, furniture and equipment 1,305,946 176,779 35,260 1,447,465

Total capital assets being depreciated 6,436,228 218,579 35,260 6,619,547 Less accumulated depreciation for:

Land improvements (223,395) (21,491) (244,886)Buildings and improvements (2,343,896) (144,332) (2,488,228)Vehicles, furniture and equipment (671,360) (69,860) (35,260) (705,960)

Total accumulated depreciation (3,238,651) (235,683) (35,260) (3,439,074)

Total capital assets, being depreciated, net 3,197,577 (17,104) 3,180,473 Governmental activities capital assets, net $ 3,477,577 $ (17,104) $ $ 3,460,473

Depreciation expense was charged to governmental functions as follows.

Instruction $ 141,166 Support services – students and staff 361 Support services – administration 11,396 Operation and maintenance of plant services 41,091 Student transportation services 40,439 Operation of non-instructional services 1,230 Total depreciation expense – governmental activities $ 235,683

NOTE 7 – OBLIGATIONS UNDER CAPITAL LEASES The District has acquired an asset under the provisions of a long-term lease agreement classified as a capital lease. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments as of the inception date. The asset acquired through the capital lease does not meet the District’s capitalization criteria. Revenues from the General Fund were used to pay the capital lease obligation. At June 30, 2012, the capital lease was paid in full.


JUNE 30, 2012

Page 41

NOTE 8 – CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the current fiscal year was as follows.

BeginningBalance Additions Reductions

Ending Balance

Due WithinOne Year

Governmental activities: Obligations under capital leases $ 22,155 $ $ 22,155 $ $ Compensated absences payable 127,388 86,674 65,304 148,758 45,000 Governmental activity long-term

liabilities $ 149,543 $ 86,674 $ 87,459 $ 148,758 $ 45,000

NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Due to/from other funds – At year end, the Other Federal Projects Fund and several non-major governmental funds had negative cash balances of $153,320 and $27,293, respectively, in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with other funds. All interfund balances are expected to be paid within one year. Interfund transfers – Transfers between funds of $3,350 were used to move Federal grant funds restricted for indirect costs 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.


JUNE 30, 2012

Page 42

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). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event. The District’s employees have health and accident insurance coverage with the Arizona School Board Association Insurance Trust (ASBAIT). ASBAIT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to ASBAIT for employees’ health and accident insurance coverage. The agreement provides that ASBAIT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 12 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The District contributes to the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing, multiple-employer defined benefit pension plan; a cost-sharing, multiple-employer defined health insurance premium plan; and a cost-sharing, multiple-employer defined benefit long-term disability plan that covers employees of the State of Arizona and employees of participating political subdivisions and school districts. 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.


JUNE 30, 2012

Page 43

NOTE 12 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl’d) Plan Description – Benefits are established by state statute and the plan generally provides retirement, long-term disability, and health insurance premium benefits, including death and survivor benefits. The retirement benefits are generally paid at a percentage, based on years of service, of the retirees’ average compensation. Long-term disability benefits vary by circumstance, but generally pay a percentage of the employee’s monthly compensation. Health insurance premium benefits are paid as a fixed dollar amount per month towards the retiree’s healthcare insurance premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or her dependents. 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 ASRS, 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.azasrs.gov. Funding Policy – The Arizona State Legislature establishes and may amend active plan members’ and the District’s contribution rates. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 10.74 percent (10.50 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 10.74 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 years, 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 $ 205,585 $ 13,122 $ 4,999 2011 229,267 15,013 6,361 2010 226,851 17,952 10,880

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

(Required Supplementary Information)

Revenues:Other localProperty taxesState aid and grants

Total revenues



Total expenditures


Other financing sources (uses):Transfers out





Fund balances (deficits), end of year

Budgeted Amounts

Original

$3,765,0621,569,6235,334,685

3,560,362257,859657,211625,290334,187

5,3455,440,254

(105,569)

(105,569)

$ (105,569)

Final

$3,765,0621,569,6235,334,685

3,157,373257,859657,211625,290334,187

5,3455,037,265

297,420

297,420

$ 297,420

Non-GAAP Actual

$ 14,8703,721,7731,570,0275,306,670

2,977,922365,369642,640564,880386,443

39,4274,976,681

329,989

(137)(137)

329,852

326,600

156,925

$ 813,377

Variance with Final Budget

Positive (Negative)

$ 14,870(43,289)

404(28,015)

179,451(107,510)

14,57160,410

(52,256)(34,082)

60,584

32,569

(137)(137)

32,432

326,600

156,925

$ 515,957

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUALGENERAL


Page 46

See accompanying notes to this schedule.

Revenues:Other localFederal aid, grants and reimbursements

Total revenues


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

Capital outlayTotal expenditures





Budgeted Amounts

Original

$

$

Final

$

65,323

65,323

(65,323)

$ (65,323)

Actual

$ 64337,215337,279

113,12414,53238,17514,27525,752

129,992335,850

1,429

179,578

$ 181,007

Variance with Final Budget

Positive (Negative)

$ 64337,215337,279

(47,801)(14,532)(38,175)(14,275)(25,752)

(129,992)(270,527)

66,752

179,578

$ 246,330

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUALOTHER FEDERAL PROJECTSYEAR ENDED JUNE 30, 2012

Page 47

See accompanying notes to this schedule.

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2 NOTE TO REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2012

Page 48

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 exceptions: 1) a portion of the General Fund activity is budgeted for separately as special revenue and capital projects funds, 2) a portion of fiscal year 2012-13 insurance payments were charged against the fiscal year 2011-12 budget, and 3) a portion of the fiscal year 2011-12 insurance payments were budgeted for in fiscal year 2010-11. Consequently, the following adjustments were necessary to present actual expenditures, increase for prepaid items, fund balance at July 1, 2011, and fund balance at June 30, 2012 on a budgetary basis in order to provide a meaningful comparison.

Total

Expenditures Increase for

Prepaid Items Fund Balance, June 30, 2012

Fund Balance,July 1, 2011

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds $ 5,276,226 $ $ 904,635 $ 706,798

Fiscal year 2011-12 activity budgeted as special revenue funds (8,448) (54,523) (37,296)

Fiscal year 2011-12 activity budgeted as capital projects funds (139,621) (36,735) (34,501)

Fiscal year 2012-13 insurance payments charged against fiscal year 2011-12 budget 156,925 156,925

Fiscal year 2011-12 insurance payments budgeted in 2010-11 (308,401) (308,401)

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund $ 4,976,681 $ 156,925 $ 813,377 $ 326,600

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES

GOVERNMENTAL FUNDS

ASSETSCash and investmentsAccounts receivableDue from governmental entitiesDue from other funds

Total assets



Total liabilities

Fund balances:Restricted

Total fund balances


Special Revenue

$ 208,6292,117

77,797180,613

$ 469,156

$ 21,15127,2934,867

53,311

415,845415,845

$ 469,156

Capital Projects

$ 215,015

$ 215,015

$ 1,358

1,358

213,657213,657

$ 215,015

Total Non-Major

Governmental Fund

$ 423,6442,117

77,797180,613

$ 684,171

$ 22,50927,2934,867

54,669

629,502629,502

$ 684,171

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE

JUNE 30, 2012

Page 52

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

Total revenues










Special Revenue

$ 234,730

155,510510,677900,917

525,91245,99425,00916,5817,122

222,11710,275

853,010

47,907

(3,350)(3,350)

44,557

371,288

$ 415,845

Capital Projects

$ 13522

41,800

41,957

43,15943,159

(1,202)

(1,202)

214,859

$ 213,657

Total Non-Major

Governmental Funds

$ 234,86522

197,310510,677942,874

525,91245,99425,00916,5817,122

222,11753,434

896,169

46,705

(3,350)(3,350)

43,355

586,147

$ 629,502

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPEYEAR ENDED JUNE 30, 2012

Page 53

SPECIAL REVENUE FUNDS Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000. Instructional Improvement - to account for the activity of monies received from gaming revenue. Title I Grants - to account for financial assistance received for the purpose of improving the teaching and learning of children failing, or most at-risk of failing, to meet challenging State academic standards. Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality. Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled children. Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students. Erate - to account for monies received to reimburse the District for broadband internet and telecommunications costs. Other State Projects - to account for financial assistance received for other State projects. School Plant - to account for proceeds from the sale or lease of school property. Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental meals and snacks in connection with school functions. Civic Center - to account for monies received from the rental of school facilities for civic activities. Community School - to account for activity related to academic and skill development for all citizens. Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations. Extracurricular Activities Fees Tax Credit - to account for activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01.

Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District. Fingerprint - to account for activity of fingerprinting employees as mandated by the State. Insurance Proceeds - to account for the monies received from insurance claims. Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks. Litigation Recovery - to account for monies received for and derived from litigation. Indirect Costs - to account for monies transferred from Federal projects for administrative costs. Intergovernmental Agreements - to account for the financial activities relating to agreements with other governments not required to be accounted for elsewhere.


Total assets



Total liabilities


Total fund balances


Classroom Site

$ 57,827

21,555

$ 79,382

$

79,38279,382

$ 79,382

Instructional Improvement

$ 44,057

8,480

$ 52,537

$

52,53752,537

$ 52,537

Title I Grants

$

9,529

$ 9,529

$9,529

9,529

$ 9,529

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS

JUNE 30, 2012

Page 56

Professional Development

and Technology Grants

$ 1,287

$ 1,287

$

1,2871,287

$ 1,287

Special Education

Grants

$ 3,080

13,023

$ 16,103

$13,023

3,08016,103

$ 16,103

E-Rate

$

2,494

$ 2,494

$2,494

2,494

$ 2,494

Other State Projects

$ 500

$ 500

$

500500

$ 500

Food Service

$

22,716

$ 22,716

$ 12,3532,247

14,600

8,1168,116

$ 22,716

Civic Center

$ 5,716

$ 5,716

$

5,7165,716

$ 5,716

Page 57

(Continued)


Total assets



Total liabilities


Total fund balances


Community School

$ 19,8392,117

$ 21,956

$ 8,798

8,798

13,15813,158

$ 21,956

Extracurricular Activities Fees

Tax Credit

$

140,456$ 140,456

$

140,456140,456

$ 140,456

Gifts and Donations

$ 75,371

40,157$ 115,528

$

115,528115,528

$ 115,528

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS

JUNE 30, 2012

Page 58

Fingerprint

$ 29

$ 29

$

2929

$ 29

Textbooks

$ 923

$ 923

$

923923

$ 923

Totals

$ 208,6292,117

77,797180,613

$ 469,156

$ 21,15127,2934,867

53,311

415,845415,845

$ 469,156

Page 59

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

Total revenues










Classroom Site

$ 305136,028

136,333

133,7922,342

136,134

199

199

79,183

$ 79,382


$ 25319,482

19,735

8,794

8,794

10,941

10,941

41,596

$ 52,537

Title I Grants

$

135,085135,085

107,885

23,584

2,382

133,851

1,234

(1,234)(1,234)

$


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2012

Page 60

Professional Development

and Technology Grants

$

19,60519,605

9,212

10,27519,487

118

(118)(118)

$

Special Education

Grants

$

158,845158,845

132,60022,822

1,425

156,847

1,998

(1,998)(1,998)

$

E-Rate

$

16,58116,581

16,581

16,581

$

Food Service

$ 45,268

168,985214,253

218,268

218,268

(4,015)

(4,015)

12,131

$ 8,116

Civic Center

$ 1,160

1,160

1,160

1,160

4,556

$ 5,716

Community School

$ 61,492

11,57673,068

56,4928,867

3,849

69,208

3,860

3,860

9,298

$ 13,158

Page 61

(Continued)


Total revenues










Extracurricular Activities Fees

Tax Credit

$ 118,699

118,699

74,5092,281

4,740

81,530

37,169

37,169

103,287

$ 140,456

Gifts and Donations

$ 7,538

7,538

11,828470

12,298

(4,760)

(4,760)

120,288

$ 115,528

Fingerprint

$

29

$ 29


NON-MAJOR SPECIAL REVENUE FUNDSYEAR ENDED JUNE 30, 2012

Page 62

Textbooks

$ 15

15

12

12

3

3

920

$ 923

Totals

$ 234,730155,510510,677900,917

525,91245,99425,00916,581

7,122222,11710,275

853,010

47,907

(3,350)(3,350)

44,557

371,288

$ 415,845

Page 63

Total revenues











Classroom Site

Budget

$

295,226

295,226

(295,226)

(295,226)

$ (295,226)

Actual

$ 305136,028

136,333

133,7922,342

136,134

199

199

79,183

$ 79,382

Variance - Positive

(Negative)

$ 305136,028

136,333

161,434(2,342)

159,092

295,425

295,425

79,183

$ 374,608

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUALNON-MAJOR SPECIAL REVENUE FUNDS


Page 64


Budget

$

60,000

60,000

(60,000)

(60,000)

$ (60,000)

Actual

$ 25319,482

19,735

8,794

8,794

10,941

10,941

41,596

$ 52,537

Variance - Positive

(Negative)

$ 25319,482

19,735

51,206

51,206

70,941

70,941

41,596

$ 112,537

Title I Grants

Budget

$

310,011

310,011

(310,011)

(310,011)

$ (310,011)

Actual

$

135,085135,085

107,885

23,584

2,382

133,851

1,234

(1,234)(1,234)

$

Variance - Positive

(Negative)

$

135,085135,085

202,126

(23,584)

(2,382)

176,160

311,245

(1,234)(1,234)

310,011

$ 310,011

Page 65(Continued)

Total revenues











Professional Development and Technology Grants

Budget

$

27,388

27,388

(27,388)

(27,388)

$ (27,388)

Actual

$

19,60519,605

9,212

10,27519,487

118

(118)(118)

$

Variance - Positive

(Negative)

$

19,60519,605

18,176

(10,275)7,901

27,506

(118)(118)

27,388

$ 27,388




Page 66

Special Education Grants

Budget

$

153,87511,506

165,381

(165,381)

(165,381)

$ (165,381)

Actual

$

158,845158,845

132,60022,822

1,425

156,847

1,998

(1,998)(1,998)

$

Variance - Positive

(Negative)

$

158,845158,845

21,275(11,316)(1,425)

8,534

167,379

(1,998)(1,998)

165,381

$ 165,381

Medicaid Reimbursement

Budget

$

36,500

36,500

(36,500)

(36,500)

$ (36,500)

Non-GAAP Actual

$ 6

16,23416,240

5002,890

3,390

12,850

12,850

17,147

$ 29,997

Variance - Positive

(Negative)

$ 6

16,23416,240

(500)33,610

33,110

49,350

49,350

17,147

$ 66,497

Page 67(Continued)

Total revenues











E-Rate

Budget

$

$

Actual

$

16,58116,581

16,581

16,581

$

Variance - Positive

(Negative)

$

16,58116,581

(16,581)

(16,581)

$




Page 68

School Plant

Budget

$

4,000

4,000

(4,000)

(4,000)

$ (4,000)

Non-GAAP Actual

$ 343

343

343

343

2,653

$ 2,996

Variance - Positive

(Negative)

$ 343

343

4,000

4,000

4,343

4,343

2,653

$ 6,996

Food Service

Budget

$

230,000

230,000

(230,000)

(230,000)

$ (230,000)

Actual

$ 45,268

168,985214,253

218,268

218,268

(4,015)

(4,015)

12,131

$ 8,116

Variance - Positive

(Negative)

$ 45,268

168,985214,253

11,732

11,732

225,985

225,985

12,131

$ 238,116

Page 69(Continued)

Total revenues











Civic Center

Budget

$

6,000

6,000

(6,000)

(6,000)

$ (6,000)

Actual

$ 1,160

1,160

1,160

1,160

4,556

$ 5,716

Variance - Positive

(Negative)

$ 1,160

1,160

6,000

6,000

7,160

7,160

4,556

$ 11,716




Page 70

Community School

Budget

$

110,000

110,000

(110,000)

(110,000)

$ (110,000)

Actual

$ 61,492

11,57673,068

56,4928,867

3,849

69,208

3,860

3,860

9,298

$ 13,158

Variance - Positive

(Negative)

$ 61,492

11,57673,068

53,508(8,867)

(3,849)

40,792

113,860

113,860

9,298

$ 123,158

Auxiliary Operations

Budget

$

12,000

12,000

(12,000)

(12,000)

$ (12,000)

Non-GAAP Actual

$ 5,594

5,594

713

8

721

4,873

4,873

8,391

$ 13,264

Variance - Positive

(Negative)

$ 5,594

5,594

11,287

(8)

11,279

16,873

16,873

8,391

$ 25,264

Page 71(Continued)

Total revenues











Extracurricular Activities Fees Tax Credit

Budget

$

200,000

200,000

(200,000)

(200,000)

$ (200,000)

Actual

$ 118,699

118,699

74,5092,281

4,740

81,530

37,169

37,169

103,287

$ 140,456

Variance - Positive

(Negative)

$ 118,699

118,699

125,491(2,281)

(4,740)

118,470

237,169

237,169

103,287

$ 340,456




Page 72

Gifts and Donations

Budget

$

120,000

120,000

(120,000)

(120,000)

$ (120,000)

Actual

$ 7,538

7,538

11,828470

12,298

(4,760)

(4,760)

120,288

$ 115,528

Variance - Positive

(Negative)

$ 7,538

7,538

108,172(470)

107,702

115,240

115,240

120,288

$ 235,528

Fingerprint

Budget

$

50

50

(50)

(50)

$ (50)

Actual

$

29

$ 29

Variance - Positive

(Negative)

$

50

50

50

50

29

$ 79

Page 73(Continued)

Total revenues











Insurance Proceeds

Budget

$

37,500

37,500

(37,500)

(37,500)

$ (37,500)

Non-GAAP Actual

$ 11

11

850

850

(839)

(839)

2,721

$ 1,882

Variance - Positive

(Negative)

$ 11

11

36,650

36,650

36,661

36,661

2,721

$ 39,382




Page 74

Textbooks

Budget

$

1,500

1,500

(1,500)

(1,500)

$ (1,500)

Actual

$ 15

15

12

12

3

3

920

$ 923

Variance - Positive

(Negative)

$ 15

15

1,488

1,488

1,503

1,503

920

$ 2,423

Litigation Recovery

Budget

$

$

Non-GAAP Actual

$

1,017

$ 1,017

Variance - Positive

(Negative)

$

1,017

$ 1,017

Page 75(Continued)

Total revenues











Indirect Costs

Budget

$

10,000

10,000

(10,000)

(10,000)

$ (10,000)

Non-GAAP Actual

$

3,487

3,487

(3,487)

3,487

3,487

$

Variance - Positive

(Negative)

$

6,513

6,513

6,513

3,487

3,487

10,000

$ 10,000




Page 76

Intergovernmental Agreements

Budget

$

5,726

5,726

(5,726)

(5,726)

$ (5,726)

Non-GAAP Actual

$

5,367

$ 5,367

Variance - Positive

(Negative)

$

5,726

5,726

5,726

5,726

5,367

$ 11,093

Totals

Budget

$

1,268,38838,89446,50037,500

240,000

1,631,282

(1,631,282)

(1,631,282)

$ (1,631,282)

Non-GAAP Actual

$ 240,684155,510526,911923,105

526,62546,49431,39417,4317,122

222,11710,275

861,458

61,647

3,487(3,350)

137

61,784

408,584

$ 470,368

Variance - Positive

(Negative)

$ 240,684155,510526,911923,105

741,763(7,600)15,10620,069(7,122)17,883

(10,275)769,824

1,692,929

3,487(3,350)

137

1,693,066

408,584

$ 2,101,650

Page 77

CAPITAL PROJECTS FUNDS Unrestricted Capital Outlay – to account for transactions relating to the acquisition of capital items. Adjacent Ways – to account for monies received to finance improvements of public ways adjacent to school property. Soft Capital Allocation - to account for transactions relating to the acquisition of short-term capital items required to meet academic adequacy standards. Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions. Emergency Deficiencies Correction - to account for monies received from the School Facilities Board to correct emergency deficiencies. Building Renewal - to account for monies received from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems or buildings that will maintain or extend their useful life. Building Renewal Grant – to account for building renewal grant monies that districts may request from the School Facilities Board. New School Facilities - to account for monies received from the School Facilities Board to be used for constructing new school facilities and purchasing land for new school sites.


Total assets


Accounts payableTotal liabilities


Total fund balances


Adjacent Ways

$ 209,946$ 209,946

$

209,946209,946

$ 209,946

Gifts and Donations -

Capital

$ 1,801$ 1,801

$ 1,3581,358

443443

$ 1,801

Emergency Deficiencies Correction

$ 83$ 83

$

8383

$ 83

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS

JUNE 30, 2012

Page 80

Building Renewal

$ 552$ 552

$

552552

$ 552

Building Renewal Grant

$ 95$ 95

$

9595

$ 95

New School Facilities

$ 2,538$ 2,538

$

2,5382,538

$ 2,538

Totals

$ 215,015$ 215,015

$ 1,3581,358

213,657213,657

$ 215,015

Page 81


Total revenues

Expenditures:Capital outlay

Total expenditures




Adjacent Ways

$ 2622

48

48

209,898

$ 209,946

Gifts and Donations -

Capital

$

1,3591,359

(1,359)

1,802

$ 443


$

83

$ 83


NON-MAJOR CAPITAL PROJECTS FUNDSYEAR ENDED JUNE 30, 2012

Page 82

Building Renewal

$ 2

2

2

550

$ 552


$ 95

41,80041,895

41,80041,800

95

$ 95


$ 12

12

12

2,526

$ 2,538

Totals

$ 13522

41,80041,957

43,15943,159

(1,202)

214,859

$ 213,657

Page 83

Total revenues



InstructionSupport services - students and staff



Total expenditures





Budget

$198,57882,684

281,262

542,089

542,089

(260,827)

$ (260,827)

Actual

$ 3,709196,69582,697

283,101

113,929

113,929

169,172

453,364

$ 622,536

Variance - Positive

(Negative)

$ 3,709(1,883)

131,839

428,160

428,160

429,999

453,364

$ 883,363


BUDGET AND ACTUALALL CAPITAL PROJECTS FUNDS


Page 84

Adjacent Ways

Budget

$

209,943

209,943

(209,943)

$ (209,943)

Actual

$ 2622

48

48

209,898

$ 209,946

Variance - Positive

(Negative)

$ 2622

48

209,943

209,943

209,991

209,898

$ 419,889

Soft Capital Allocation

Budget

$100,845

42,041142,886

87,122

22,1551,837

111,114

31,772

$ 31,772

Non-GAAP Actual

$ 9199,71242,052

141,855

57,0105,742

52,877

22,1551,837

139,621

2,234

34,501

$ 36,735

Variance - Positive

(Negative)

$ 91(1,133)

11(1,031)

(57,010)(5,742)34,245

(28,507)

(29,538)

34,501

$ 4,963

Page 85(Continued)

Total revenues






Total expenditures




Gifts and Donations - Capital

Budget

$

10,000

10,000

(10,000)

$ (10,000)

Actual

$

1,359

1,359

(1,359)

1,802

$ 443

Variance - Positive

(Negative)

$

8,641

8,641

8,641

1,802

$ 10,443




Page 86


Budget

$

100

100

(100)

$ (100)

Actual

$

83

$ 83

Variance - Positive

(Negative)

$

100

100

100

83

$ 183

Building Renewal

Budget

$

600

600

(600)

$ (600)

Actual

$ 2

2

2

550

$ 552

Variance - Positive

(Negative)

$ 2

2

600

600

602

550

$ 1,152

Page 87(Continued)

Total revenues






Total expenditures





Budget

$

41,800

41,800

(41,800)

$ (41,800)

Actual

$ 95

41,80041,895

41,800

41,800

95

$ 95

Variance - Positive

(Negative)

$ 95

41,80041,895

41,895

$ 41,895




Page 88


Budget

$

3,000

3,000

(3,000)

$ (3,000)

Actual

$ 12

12

12

2,526

$ 2,538

Variance - Positive

(Negative)

$ 12

12

3,000

3,000

3,012

2,526

$ 5,538

Totals

Budget

$299,423124,725424,148

894,654

22,1551,837

918,646

(494,498)

$ (494,498)

Non-GAAP Actual

$ 3,935296,429166,549466,913

57,0105,742

209,965

22,1551,837

296,709

170,204

702,724

$ 872,928

Variance - Positive

(Negative)

$ 3,935(2,994)41,82442,765

(57,010)(5,742)

684,689

621,937

664,702

702,724

$ 1,367,426

Page 89

AGENCY FUNDS Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent. Employee Insurance - to account for voluntary deductions temporarily held by the District as an agent.


Total assets

LIABILITIESDeposits held for othersDue to student groups

Total liabilities

Student Activities

$ 7,278$ 7,278

$7,278

$ 7,278

Employee Insurance

$ 3,898$ 3,898

$ 3,898

$ 3,898

Totals

$ 11,176$ 11,176

$ 3,8987,278

$ 11,176

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDSJUNE 30, 2012

Page 92

Beginning Ending Balance Additions Deductions Balance

STUDENT ACTIVITIES

AssetsCash and investments $ 10,055 $ 4,782 $ 7,559 $ 7,278

Total assets $ 10,055 $ 4,782 $ 7,559 $ 7,278

LiabilitiesDue to student groups $ 10,055 $ 4,782 $ 7,559 $ 7,278

Total liabilities $ 10,055 $ 4,782 $ 7,559 $ 7,278

EMPLOYEE INSURANCE


Total assets $ 18,981 $ 578,135 $ 593,218 $ 3,898

LiabilitiesDeposits held for others $ 18,981 $ 578,135 $ 593,218 $ 3,898


TOTAL AGENCY


Total assets $ 29,036 $ 582,917 $ 600,777 $ 11,176

LiabilitiesDeposits held for others $ 18,981 $ 578,135 $ 593,218 $ 3,898Due to student groups 10,055 4,782 7,559 7,278


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES


Page 93

STATISTICAL SECTION

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

Financial Trends

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

Revenue Capacity

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

Debt Capacity

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

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

Operating Information

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

Due to cost considerations for the accumulation of data, the District has elected to present less than ten years of data, or data from less than nine years prior, for certain statistical schedules. This information will be accumulated and reported each year until the complete ten years of data is presented.

2012 2011 2010 2009 2008Net Assets:

Invested in capital assets, net of related debt 3,460,473$ 3,477,577$ 3,732,074$ 3,945,490$ 3,757,325$ Restricted 1,435,908 1,040,260 874,608 45,221 946,499 Unrestricted 823,927 594,202 938,584 1,295,986 409,864

Total net assets 5,720,308$ 5,112,039$ 5,545,266$ 5,286,697$ 5,113,688$

2007 2006 2005 2004Net Assets:

Invested in capital assets, net of related debt 3,902,782$ 3,902,336$ 3,658,572$ 3,455,320$ Restricted 821,276 585,068 668,147 647,593 Unrestricted 326,385 845,961 1,270,417 1,339,094

Total net assets 5,050,443$ 5,333,365$ 5,597,136$ 5,442,007$


Note:

NET ASSETS BY COMPONENTLAST NINE FISCAL YEARS

Fiscal Year Ended June 30

(Accrual basis of accounting)

The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2004therefore only nine years are shown.

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

Page 97

2012 2011 2010 2009 2008

Instruction 3,906,591$ 4,210,900$ 4,163,714$ 3,995,141$ 3,962,255$ Support services - students and staff 443,383 403,386 576,615 386,976 345,940 Support services - administration 735,921 675,961 643,205 761,828 726,979 Operation and maintenance of plant services 641,159 577,082 528,377 642,686 631,245 Student transportation services 468,491 447,166 397,588 345,185 369,038 Operation of non-instructional services 261,533 281,838 266,135 219,532 211,239 Interest on long-term debt 1,837 3,533 17,858 16,422

Total expenses 6,458,915 6,599,866 6,575,634 6,369,206 6,263,118

Program RevenuesCharges for services:

Instruction 78,713 73,929 85,108 87,398 172,522Operation of non-instructional services 45,249 50,627 58,422 48,284 55,627Other activities 1,135 510 232 6,648 19,433

Operating grants and contributions 955,123 720,191 810,216 678,158 876,400Capital grants and contributions 10,275 18,162 15,878 124,135

Total program revenues 1,090,495 863,419 969,856 944,623 1,123,982

Net (Expense)/Revenue (5,368,420)$ (5,736,447)$ (5,605,778)$ (5,424,583)$ (5,139,136)$

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

only six years are shown.

(Continued)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Source: Note:

LAST NINE FISCAL YEARS(Accrual basis of accounting)


Expenses

Page 98

2007 2006 2005 2004Expenses

Instruction 3,778,772$ 3,527,873$ 3,101,108$ 3,022,819$ Support services - students and staff 272,927 265,795 210,793 226,021 Support services - administration 625,499 478,455 436,505 490,233 Operation and maintenance of plant services 597,021 602,207 416,300 365,932 Student transportation services 388,417 353,365 353,467 290,226 Operation of non-instructional services 199,662 184,257 161,354 139,544 Interest on long-term debt 8,948 1,557 12,400 26,104

Total expenses 5,871,246 5,413,509 4,691,927 4,560,879

Program RevenuesCharges for services:

Instruction 146,321 127,887 133,271 53,568Operation of non-instructional services 58,691 34,790 33,290 35,646Other activities 19,673 26,771 1,054

Operating grants and contributions 892,177 814,269 714,174 731,301 Capital grants and contributions 49,046

Total program revenues 1,116,862 1,003,717 880,735 870,615

Net (Expense)/Revenue (4,754,384)$ (4,409,792)$ (3,811,192)$ (3,690,264)$

(Concluded)

Note:

(Accrual basis of accounting)LAST NINE FISCAL YEARS


The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2004therefore only nine years are shown.

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE

Page 99

2012 2011 2010 2009 2008

Net (Expense)/Revenue (5,368,420)$ (5,736,447)$ (5,605,778)$ (5,424,583)$ (5,139,136)$

General Revenues: Taxes:

Property taxes, levied for general purposes 3,851,323 3,577,397 3,509,438 3,574,681 3,299,129 Property taxes, levied for debt service 11,208 11,594Property taxes, levied for capital outlay 200,096 1,062 274,927 278,245 246,325

Investment income 16,950 16,467 24,769 43,534 74,876Unrestricted county aid 10,804 33,507 9Unrestricted state aid 1,892,086 1,677,179 1,722,389 1,719,365 1,582,042Unrestricted federal aid 16,234 20,311 288,109

Total general revenues 5,976,689 5,303,220 5,864,347 5,627,419 5,202,381

Changes in Net Assets 608,269$ (433,227)$ 258,569$ 202,836$ 63,245$


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

(Continued)


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETS

LAST NINE FISCAL YEARS(Accrual basis of accounting)

Page 100

2007 2006 2005 2004

Net (Expense)/Revenue (4,754,384)$ (4,409,792)$ (3,811,192)$ (3,690,264)$

General Revenues: Taxes:

Property taxes, levied for general purposes 2,660,450 2,715,596 2,621,592 2,452,042 Property taxes, levied for debt service 211,111 231,598Property taxes, levied for capital outlay 396,044 304,407 118,035 134,420

Other local 4,499 31 100,717Investment income 75,990 61,659 30,850 18,991Unrestricted county aid 459 4,423 36,210 18,485Unrestricted state aid 1,338,519 1,055,437 948,492 1,128,110 Unrestricted federal aid

Total general revenues 4,471,462 4,146,021 3,966,321 4,084,363

Changes in Net Assets (282,922)$ (263,771)$ 155,129$ 394,099$

1)

2)

(Concluded)

GENERAL REVENUES AND TOTAL CHANGES IN NET ASSETSLAST NINE FISCAL YEARS


(Accrual basis of accounting)

The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2004therefore only nine years are shown.The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

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


Source: Notes:

Page 101

2012 2011 2010 2009 2008General Fund:

NonspendableRestrictedCommittedAssignedUnassigned 904,635$ 706,798$ Reserved 286,493$ Unreserved 635,417$ 221,349 429,113$

Total General Fund 904,635$ 706,798$ 635,417$ 507,842$ 429,113$

All Other Governmental Funds:NonspendableRestricted 1,433,045$ 1,039,511$ CommittedAssignedUnassignedReservedUnreserved, reported in:

Special revenue funds 367,678$ 209,365$ 304,913$ Capital projects funds 858,140 657,207 638,604 Debt service fund 11,208

Total all other governmental funds 1,433,045$ 1,039,511$ 1,237,026$ 866,572$ 943,517$

(Continued)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2FUND BALANCES - GOVERNMENTAL FUNDS


LAST NINE FISCAL YEARS(Modified accrual basis of accounting)

Page 102

2007 2006 2005 2004General Fund:

ReservedUnreserved 374,631$ 901,538$ 1,108,227$ 995,214$

Total General Fund 374,631$ 901,538$ 1,108,227$ 995,214$

All Other Governmental Funds:ReservedUnreserved, reported in:

Special revenue funds 326,099$ 312,760$ 282,141$ 211,616$ Capital projects funds 491,692 269,544 403,931 630,034 Debt service fund 5,945

Total all other governmental funds 817,791$ 582,304$ 686,072$ 847,595$

Source:Note:

(Concluded)

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


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2FUND BALANCES - GOVERNMENTAL FUNDS


Page 103

2012 2011 2010 2009 2008Federal sources:

Federal grants 515,563$ 429,081$ 456,215$ 387,160$ 465,384$ State Fiscal Stabilization (ARRA) 20,311 288,109 Education Jobs 179,578 National School Lunch Program 168,985 173,233 173,240 153,168 142,998 Total federal sources 864,126 622,625 917,564 540,328 608,382

State sources:State equalization assistance 1,694,776 1,595,480 1,521,309 1,569,056 1,850,069 State grants 4,727 11,314 School Facilities Board 41,800 123,480 Other revenues 155,510 134,093 148,686 150,854 Total state sources 1,892,086 1,729,573 1,674,722 1,854,704 1,850,069

Local sources:Property taxes 4,018,202 3,588,264 3,847,563 3,840,643 3,505,036 County aid 10,804 33,507 9 Food service sales 45,249 50,627 53,366 46,671 51,068 Investment income 16,950 16,467 24,769 43,534 74,876 Other revenues 197,354 210,478 289,186 215,407 196,505 Total local sources 4,277,755 3,876,640 4,248,391 4,146,255 3,827,494 Total revenues 7,033,967$ 6,228,838$ 6,840,677$ 6,541,287$ 6,285,945$

(Continued)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2GOVERNMENTAL FUNDS REVENUES

LAST TEN FISCAL YEARS


(Modified accrual basis of accounting)

Page 104

2007 2006 2005 2004 2003Federal sources:

Federal grants 463,840$ 458,801$ 407,365$ 438,548$ 411,568$ State Fiscal Stabilization (ARRA)Education Jobs National School Lunch Program 139,622 133,901 117,613 106,891 108,787 Total federal sources 603,462 592,702 524,978 545,439 520,355

State sources:State equalization assistance 1,627,693 1,281,427 1,173,898 1,381,503 1,795,579 State grants 46,119School Facilities BoardOther revenuesTotal state sources 1,627,693 1,281,427 1,173,898 1,381,503 1,841,698

Local sources:Property taxes 3,046,861 3,010,395 2,957,050 2,820,587 2,576,624 County aid 459 4,423 36,210 18,485 Food service sales 53,297 31,927 33,290 53,568 Investment income 75,990 61,659 30,850 18,991 Other revenues 170,929 157,597 97,092 118,932 244,349 Total local sources 3,347,536 3,266,001 3,154,492 3,030,563 2,820,973 Total revenues 5,578,691$ 5,140,130$ 4,853,368$ 4,957,505$ 5,183,026$

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

(Concluded)

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2GOVERNMENTAL FUNDS REVENUES

LAST TEN FISCAL YEARS(Modified accrual basis of accounting)

Page 105

2012 2011 2010 2009 2008


Instruction 3,780,464$ 3,944,740$ 3,846,085$ 3,760,681$ 3,763,003$ Support services - students and staff 446,630 386,512 549,613 943,044 344,906 Support services - administration 721,242 643,675 618,950 1,063,433 735,926 Operation and maintenance of plant services 602,079 533,097 508,164 617,460 Student transportation services 440,143 394,040 338,266 340,169 Operation of non-instructional services 257,392 277,845 260,940 217,070 207,040

Capital outlay 350,232 151,071 263,244 282,980 3,960 Debt service -

Interest and fiscal charges 1,837 3,533 17,858 16,422 Principal retirement 22,155 20,459 23,992 213,539 76,851

Total expenditures 6,622,174$ 6,354,972$ 6,409,254$ 6,498,605$ 6,105,737$

Expenditures for capitalized assets 218,579$ 11,453$ 38,066$ 232,097$ 18,287$

Debt service as a percentage ofnoncapital expenditures 0% 0% 0% 4% 2%

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

(Continued)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO



Page 106

2007 2006 2005 2004


Instruction 3,579,509$ 3,296,359$ 2,952,589$ 2,868,725$ Support services - students and staff 272,886 263,597 209,360 237,001 Support services - administration 619,669 500,189 426,278 480,846 Operation and maintenance of plant services 583,644 631,499 424,098 374,430 Student transportation services 587,582 427,254 432,859 347,863 Operation of non-instructional services 199,122 182,542 170,985 138,924

Capital outlay 155,391 212,312 162,337 6,815 Debt service -

Interest and fiscal charges 8,948 1,557 12,400 26,104 Principal retirement 84,325 42,633 200,000 200,000

Total expenditures 6,091,076$ 5,557,942$ 4,990,906$ 4,680,708$

Expenditures for capitalized assets 387,140$ 319,459$ 368,810$ 115,853$

Debt service as a percentage ofnoncapital expenditures 2% 1% 5% 5%

Source:

(Concluded)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO




Page 107

2012 2011 2010 2009 2008

Excess (deficiency) of revenues over expenditures 411,793$ (126,134)$ 431,423$ 42,682$ 180,208$

Other financing sources (uses):Refunding bonds issuedPremium on sale of bondsCapital lease agreements 66,606 Transfers in 3,350 59,454 4,379 3,812 1,805 Transfers out (3,350) (59,454) (4,379) (3,812) (1,805) Payment to refunded bond escrow agent

Total other financing sources (uses) - 66,606 - -

Special Item:Judgment against the District (11,071)

Changes in fund balances 411,793$ (126,134)$ 486,958$ 42,682$ 180,208$

2007 2006 2005 2004

Excess (deficiency) of revenues over expenditures (512,385)$ (417,812)$ (137,538)$ 276,797$

Other financing sources (uses):Refunding bonds issuedPremium on sale of bondsCapital lease agreements 220,965 107,355 89,028 Transfers in 2,013 1,300 9,450 1,092 Transfers out (2,013) (1,300) (9,450) (1,092) Payment to refunded bond escrow agent

Total other financing sources (uses) 220,965 107,355 89,028

Changes in fund balances (291,420)$ (310,457)$ (48,510)$ 276,797$


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

LAST NINE FISCAL YEARS


(Modified accrual basis of accounting)

Page 108

FiscalYear Less: Total Taxable Total Estimated

Ended Residential Commercial Personal Tax Exempt Assessed Direct Actual June 30 Property Property Property Real Property Valuation Rate Value

2012 161,448,298$ 25,900,118$ 10,325,598$ 4,040,973$ 193,633,041$ 3.01 1,825,087,457$ 10.61 %2011 160,696,515 28,683,964 10,516,753 3,977,141 195,920,091 2.62 1,832,487,756 10.692010 175,755,822 32,409,092 10,258,217 4,050,131 214,373,000 2.62 2,002,236,254 10.712009 215,497,822 2.93 2,025,746,232 10.64 2008 175,994,921 3.00 1,649,162,936 10.67 2007 141,379,614 3.05 1,305,058,132 10.83 2006 126,866,383 3.25 1,145,841,798 11.07 2005 112,809,005 3.49 1,016,352,985 11.10 2004 102,186,138 3.88 920,576,362 11.102003 88,267,098 4.10 788,132,429 11.20

Source:Note: Total taxable assessed valuation is displayed by major component beginning with fiscal year ended June 30, 2010.

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


Ratio of

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

Net Assessed to EstimatedActual Value

Real Property

Page 109

Fiscal Year County Flood Community Fire Central Golder

Ended State Free Control College District Arizona Oracle RanchJune 30 Equalization County Library District District Assistance Water F.D. F.D. Primary Secondary Total

2012 0.43 4.00 0.10 0.17 1.85 0.06 0.10 2.61 1.73 2.76 0.25 3.01 2011 0.36 4.00 0.10 0.17 1.59 0.05 0.10 2.64 1.73 2.38 0.24 2.62 2010 0.33 3.36 0.10 0.17 1.46 0.04 0.10 2.61 1.75 2.39 0.23 2.62 2009 3.56 0.10 0.15 1.41 0.04 0.10 2.61 1.76 2.73 0.20 2.93 2008 4.14 0.08 0.13 1.80 0.05 0.10 2.62 1.88 2.77 0.23 3.00 2007 4.44 0.06 0.11 2.05 0.09 0.12 2.35 2.09 2.79 0.26 3.05 2006 4.59 0.06 0.09 2.10 0.09 0.12 2.10 2.11 2.99 0.26 3.25 2005 4.60 0.06 0.09 2.15 0.09 0.12 1.70 1.95 3.05 0.44 3.49 2004 4.60 0.06 0.09 2.17 0.09 0.12 1.35 1.96 3.66 0.22 3.88 2003 4.60 0.06 0.09 2.17 0.10 0.13 1.23 1.99 3.87 0.23 4.10

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2DIRECT AND OVERLAPPING PROPERTY TAX RATES


Source:

District Direct Rates

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

Overlapping Rates

Page 110

Secondary Assessed Valuation

Secondary Assessed Valuation

Arizona Public Service Company 2,749,508$ 1.42 % 1,678,338$ 1.90 %Wal-Mart Stores, Inc. 378,373 0.20Beazer Homes Holding Corp. 178,867 0.09San Tan Borgata Development LLC 149,056 0.08Brighton Village Landbank LLC 98,606 0.05Cole Marilyn F. Tr 91,727 0.05Qwest Corporation 82,554 0.04 684,533 0.78 Pulte Home Corporation 80,261 0.04Kinder Morgan Energy Partners 75,675 0.04Ad Alliance VI LP Etal 73,381 0.04BHP Copper Inc 10,724,082 12.15 BHP Copper Inc (Environmental) 1,420,000 1.61 Southwest Commodity Warehouses Inc 499,263 0.57 MAGMA Copper Co. 371,480 0.42 San Manuel Arizona Railroad Co. 353,565 0.40 Arizona Water Co. 277,250 0.31 Southwest Gas Corporation 270,282 0.31 Mega Enterprises Inc. 269,529 0.31

Total 3,958,008$ 2.05 % 16,548,322$ 18.76 %

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2PRINCIPAL PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Percentage of District's Net

Assessed Valuation

Percentage of District's Net

Assessed Valuation

2003

Taxpayer

2012

Page 111

FiscalYear Taxes Levied Collections in

Ended for the Subsequent June 30 Fiscal Year Amount Fiscal Years Amount

2012 3,966,921$ 3,895,956$ 98.21 % $ 3,895,956$ 98.21 %2011 3,504,868 3,458,550 98.68 3,100 3,461,650 98.772010 3,715,492 3,634,484 97.82 33,167 3,667,651 98.712009 3,786,015 3,679,629 97.19 106,239 3,785,868 100.002008 3,477,170 3,395,801 97.66 81,369 3,477,170 100.002007 3,109,401 3,075,421 98.91 33,980 3,109,401 100.002006 2,971,912 2,947,276 99.17 24,636 2,971,912 100.002005 2,881,874 2,863,686 99.37 18,188 2,881,874 100.002004 2,741,062 2,711,860 98.93 29,202 2,741,062 100.00

Source:Notes: 1)

2)

Fiscal Year of the LevyCollected within the

of the Current Fiscal Year

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2PROPERTY TAX LEVIES AND COLLECTIONS

LAST NINE FISCAL YEARS

Collected to the End

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

Amounts collected are on a cash basis.The source of this information is the 2012 County Treasurer's records.

of LevyPercentage

of LevyPercentage

Page 112

Fiscal Less:Year General Amounts Percentage of Percentage of Percentage of

Ended Obligation Restricted for Estimated Per Capital Estimated Per Personal June 30 Bonds Principal Total Actual Value Capita Leases Total Actual Value Capita Income

20122011 22,155$ 22,155$ 0.00 % 2 0 %2010 42,614 42,614 0.00 4 0 2009 - - 2008 213,539 213,539 0.01 19 0 2007 290,390 290,390 0.02 25 0 2006 153,750 153,750 0.01 13 0 2005 89,028 89,028 0.01 8 0 2004 200,000$ 200,000$ 2003 400,000 200,000 200,000$ 0.03 % 20$ 200,000 0.03 20 0

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


General Obligation Bonds

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2OUTSTANDING DEBT BY TYPE


Total Outstanding Debt

Page 113

Estimated EstimatedPercentage Amount

Debt Applicable to Applicable toOutstanding School District School District

Direct:Oracle Elementary School District No. 2 NONE 100.00 % -

Total Direct and Overlapping Debt -$

Source:

Note: There is no governmental activities debt for any of the overlapping governmental units.

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

JUNE 30, 2012

Governmental Unit

Page 114

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2012: Total Legal Debt Margin Calculation for Fiscal Year 2012:Secondary assessed valuation 193,633,041$ Secondary assessed valuation 193,633,041$

Debt limit (5% of assessed value) 9,681,652 Debt limit (15% of assessed value) 29,044,956 Debt applicable to limit - Debt applicable to limit - Legal debt margin 9,681,652$ Legal debt margin 29,044,956$

2012 2011 2010 2009 2008

Total Debt limit 29,044,956$ 29,388,014$ 32,155,950$ 32,324,673$ 26,399,238$

Total net debt applicable to limit - - - - -

Legal debt margin 29,044,956$ 29,388,014$ 32,155,950$ 32,324,673$ 26,399,238$

Total net debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 0%

2007 2006 2005 2004 2003

Debt limit 21,206,942$ 19,029,957$ 16,921,351$ 15,327,921$ 13,240,065$

Total net debt applicable to limit - - - - 200,000

Legal debt margin 21,206,942$ 19,029,957$ 16,921,351$ 15,327,921$ 13,040,065$

Total net debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 2%

Source:Notes: 1)

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

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2LEGAL DEBT MARGIN INFORMATION




Page 115

Personal EstimatedIncome Per Capita District

Year Population (thousands) Income Population

2011 384,231 $ N/A $ N/A % N/A2010 375,770 8,860,496 23,060 13,622 2009 356,303 8,259,897 24,225 11.4 11,507 2008 350,558 7,892,358 23,985 7.1 11,507 2007 327,670 6,912,473 22,975 4.5 11,507 2006 299,875 6,041,934 22,518 4.9 11,507 2005 246,660 5,371,964 22,636 5.6 11,507 2004 217,465 4,579,887 20,831 6.0 10,663 2003 202,940 4,124,916 19,846 7.0 10,063 2002 190,140 3,806,125 19,297 7.3 9,863

Sources:

Note:

Unemployment

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS

Rate

The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.The source of the "Population" and "Unemployment Rate" information from 2002 through 2010 is the University ofArizona, Eller College of Management, Economic and Business Research Center. For the year 2011 the source ofthe information is the Arizona Office of Employment and Population Statistics.N/A indicates that the information is not available.

10.3 9.2

Page 116

Percentage Percentageof Total of Total

Employees Employment Employees Employment

Raytheon Missile Systems 10,500 2.90 % 10,400 2.62 %University of Arizona 10,681 2.95 10,100 2.55 State of Arizona 9,061 2.50 9,870 2.49 Davis Monthan AFB 8,566 2.37 8,340 2.10 Tucson Unified School District 6,674 1.84 6,557 1.65 Wal-Mart Stores, Inc. 7,300 2.02 2,250 0.57 Pima County 6,198 1.71 10,969 2.77 City of Tucson 6,170 1.70 6,259 1.58 Carondelet Health Network 4,541 1.25 4,638 1.17 Tohono O'odham Nation 4,635 1.28 Tucson Medical Center 4,350 1.20 2,800 0.71 University of Arizona 2,904 0.80 2,540 0.64 Southern AZ VA Healthcare 5,594 1.55 4,300 1.08 BHP Copper 2,151 0.59 3,340 0.84

Total 89,325 24.66 % 82,363 20.77 %

Total employment 361,919 396,393

Source:

Note: Information for principal employers is presented for the Tucson metropolitan area as this is the most accurate information currently available.

The source of the data for individual employers was a website of the Arizona Daily Star. The sourceof the total employment was the Arizona Department of Commerce.

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

Employer

2012 2003

Page 117

2012 2011 2010 2009 2008

SupervisorySuperintendent 1 1 1 1 1 Assistant superintendentsConsultants/supervisors of instructionPrincipals 1 1 1 1 1 Assistant principals 1 1 1 1 Student services/Grants/Curriculum 1

Total supervisory 3 3 3 3 3 Instruction

Teachers 28 28 31 30 29 Other professionals (instructional) 1 1 1 1 1 Aides 24 24 24 23 23

Total instruction 53 53 56 54 53 Student Services

Medical Assistant 1 1 1 1 1 Counselors/Advisors 1 1 1 Librarians 1 Technicians 2 2 2 2 2

Total student services 4 4 4 3 4 Support and Administration

Clerical workers 9 9 9 9 8 Maintenance workers 4 4 4 4 4 Bus Drivers 8 8 10 9 8 Food Service workers 6 6 6 6 6 Other classified 5 7 7 4 5

Total support and administration 32 34 36 32 31

Total 92 94 99 92 91

(Continued)

Full-time Equivalent Employees as of June 30


ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2FULL-TIME-EQUIVALENT DISTRICT EMPLOYEES BY TYPE

Page 118

2007 2006 2005 2004 2003

SupervisorySuperintendent 1 1 1 1 1 Assistant superintendentsConsultants/supervisors of instructionPrincipals 1 1 1 1 1 Assistant principalsStudent services/Grants/Curriculum 1 1 1 1 1

Total supervisory 3 3 3 3 3 Instruction

Teachers 26 27 26 26 27 Other professionals (instructional) 1 1 1 1 1 Aides 21 20 18 19 21

Total instruction 48 48 45 46 49 Student Services

Medical Assistant 1 1 1 1 1 Counselors/Advisors 1 1 1 1 1 LibrariansTechnicians 2 2 2 2 1

Total student services 4 4 4 4 3 Support and Administration

Clerical workers 7 7 5 5 5 Maintenance workers 4 5 5 5 5 Bus Drivers 8 8 8 9 7 Food Service workers 6 4 5 5 5 Other classified 5 4 7 6 5

Total support and administration 30 28 30 30 27

Total 85 83 82 83 82

Source: (Concluded)The source of this information is District personnel records.

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2FULL-TIME-EQUIVALENT DISTRICT EMPLOYEES BY TYPE


Page 119

FiscalYear Average Cost Cost Pupil-

Ended Daily Operating per Percentage per Percentage Teaching TeacherJune 30 Membership Expenditures Pupil Change Expenses Pupil Change Staff Ratio

2012 429 6,247,950$ 14,564$ 15.24 % 6,458,915$ 15,056$ 11.55 % 53 8.1 57.9 %2011 489 6,179,909 12,638 (1.74) 6,599,866 13,497 (2.30) 53 9.2 58.2 2010 476 6,122,018 12,861 (3.07) 6,575,634 13,814 (2.18) 56 8.5 60.7 2009 451 5,984,228 13,269 (7.03) 6,369,206 14,122 (5.07) 54 8.4 57.3 2008 421 6,008,504 14,272 (3.02) 6,263,118 14,877 0.59 53 7.9 53.9 2007 397 5,842,412 14,716 2.43 5,871,246 14,789 0.81 48 8.3 54.6 2006 369 5,301,440 14,367 10.18 5,413,509 14,671 10.69 48 7.7 62.0 2005 354 4,616,169 13,040 1.73 4,691,927 13,254 0.84 45 7.9 54.0 2004 347 4,447,789 12,818 N/A 4,560,879 13,144 N/A 46 7.5 58.0 2003 363 N/A N/A N/A N/A N/A N/A 49 7.4 56.0

1)2)

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2OPERATING STATISTICSLAST TEN FISCAL YEARS

Percentage of

N/A indicates that the information is not available due to the provisions of Governmental AccountingStandards Board (GASB) Statement No. 34 not being adopted until fiscal year 2004.

Students

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

Free/Reduced

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

Page 120

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

SchoolsElementary

Buildings 7 7 7 7 7 7 7 7 7 7Square feet 36,719 36,719 36,719 36,719 36,719 36,719 36,719 36,719 36,719 36,719Capacity 650 650 650 650 650 650 650 650 650 650Enrollment 499 511 511 491 471 451 431 411 391 371

OtherBuildings 9 9 9 9 9 9 9 9 9 9Square feet 34,708 34,708 34,708 34,708 34,708 34,708 34,708 34,708 34,708 34,708

AdministrativeBuildings 1 1 1 1 1 1 1 1 1 1Square feet 2,732 2,732 2,732 2,732 2,732 2,732 2,732 2,732 2,732 2,732

TransportationGarages 1 1 1 1 1 1 1 1 1 1Buses 11 11 11 11 11 11 11 11 11 11

AthleticsFootball fields 1 1 1 1 1 1 1 1 1 1Soccer fields 1 1 1 1 1 1 1 1 1 1Running tracks 1 1 1 1 1 1 1 1 1 1Baseball/softball 2 2 2 2 2 2 2 2 2 2Swimming pools 3 3 3 3 3 3 3 3 3 3

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

ORACLE ELEMENTARY SCHOOL DISTRICT NO. 2CAPITAL ASSETS INFORMATION



Page 121

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