COMPREHENSIVE ANNUAL FINANCIAL REPORT For Fiscal Year Ended June 30, 2009 Provo City School District 280 West 940 North Provo, UT 84604 www.provo.edu Provo City School District 280 West 940 North Provo, Utah 84604 www.provo.edu Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2009 Randall J. Merrill, Ed.D. Superintendent of Schools Kerry J. Smith Business Administrator Certified Public Accountant Prepared By: Stefanie Bryant Director of Accounting Services Certified Public Accountant Provo City School District Board of Education and Officers Front (left to right): Sue Curtis, Carolyn Wright, Shannon Poulsen, Kristine Manwaring, Mary Ann Christiansen Back (left to right): Kerry Smith, Richard Sheffield, Darryl Alder, Dr. Randall J. Merrill Provo City School District For Fiscal Year Ended June 30, 2009 Table of Contents 1. INTRODUCTORY SECTION: Letter of Transmittal. 1 . 8 GFOA Certificate of Achievement for Excellence in Financial. Reporting. 9 AOrSBOganizational Certificate Chart of Excellence. in. .Financial . .Reporting . 10 . 11 ElectPrecinctsed and of Appointedthe Board of Officials Education. 12 2. FINANCIAL SECTION: Independent Auditor’s Report. .15 Management’s Discussion and Analysis. .17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets . .28 Statement of Activities. 29 Fund Financial Statements: Balance Sheet, Governmental Funds. .30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets. 31 Governmental Funds. .32 Statement of Revenues, Expenditures, and Changes in Fund Balances, in Fund Balances of Governmental Funds to the Statement of Activities. 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes Budget and Actual, General Fund. .34 Statement of Revenues, Expenditures, and Changes in Fund Balances, . .35 NotesStat toement Basic ofFinancial Fiduciary Statements Fund Assets (integral and Liabilities, part of the Agency Basic Funds Financial Statements). .36 Combining and Individual Fund Statements and Schedules: Major Governmental Funds: Comparative Balance Sheets, General Fund, With Comparative Totals for 2008. .56 Budget and Actual, General Fund, With Comparative Totals for 2008. .57 Schedule of Revenues, Expenditures, and Changes in Fund Balances, i Provo City School District For Fiscal Year Ended June 30, 2009 Table of Contents Comparative Balance Sheets, Debt Service Fund, With Comparative Totals for 2008. 58 Budget and Actual, Debt Service Fund, With Comparative Totals for 2008. 59 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Comparative Balance Sheets, Capital Projects Fund, With Comparative Totals for 2008. 60 Budget and Actual, Capital Projects Fund, Schedule With Compar of Revenues,ative Totals Expenditures, for 2008. .and . Changes . in. .Fund . Balances,. 61 Non Major Governmental Funds: . 64 Combining Balance Sheet, Governmental Funds Governmental Funds. .65 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances, Comparative Balance Sheets, Non K-12 Instruction, Special Revenue Fund, With comparative totals for 2008 . .66 Budget and Actual, Non K-12 Instruction, Special Revenue Fund, Schedule With compar of Revenues,ative totals Expenditures, for 2008 . and. Changes. in. .Fund . Balances,. .67 Comparative Balance Sheets, Student Activities, Special Revenue Fund, With comparative totals for 2008 . .68 Budget and Actual, Student Activities, Special Revenue Fund, Schedule Special R ofevenue Revenues, Fund, Expenditures, With comparative and Changes totals for in 2008 Fund. Balances,. .69 Comparative Balance Sheets, Food Services, Special Revenue Fund, With comparative totals for 2008 . .70 Budget and Actual, Food Services, Special Revenue Fund, Schedule With compar of Revenues,ative totals Expenditures, for 2008 . and. Changes. in. .Fund . Balances,. .71 Comparative Balance Sheets, Building Reserve, Special Revenue Fund, With comparative totals for 2008 . .72 Budget and Actual, Building Reserve, Special Revenue Fund, Schedule With compar of Revenues,ative totals Expenditures, for 2008 . and. Changes. in. .Fund . Balances,. .73 Comparative Balance Sheets, Provo School District Foundation, Special Revenue Fund, With comparative totals for 2008 . .74 ii Provo City School District For Fiscal Year Ended June 30, 2009 Table of Contents Budget and Actual, Provo School District Foundation, Special Revenue Fund, Schedule of Revenues, With compar Expenditures,ative totals and for Changes2008 . .in . Fund. .Balances, . .75 Fiduciary Funds (Agency Funds): . 77 Comparative Statement of Fiduciary Fund Assets and Liabilities . 78 Statement of Changes in Assets and Liabilities, Special Programs Agency Fund 3. STATISTICAL SECTION (unaudited): Financial Trends Information: . 81 ComparNet Assetsative by Statements Component, of June Net Assets,30, 2003 June through 30, 2003 2009 through 2009. 82 Changes in Net Assets, Years Ended June 30, 2003 through 2009. .84 Governmental Funds - Aggregate Fund Balances, June 30, 2000 through 2009 . .86 Governmental Funds - Net Changes in Aggregate Fund Balances, Years Ended June 30, 2000 through 2009. .87 Governmental Funds - Reserved and Unreserved Fund Balances, June 30, 2000 through 2009 . .88 Total Governmental Funds - Changes in Fund Balances, Years Ended June 30, 2000 through 2009. .90 Revenue Capacity Information: Years Ended June 30, 2000 through 2009. .92 Property Tax Levies and Collections, . .94 Comparison of Utah School District Property Tax Rates, Tax Year 2008, Fiscal Year 2008-09 Fiscal Year 2008-09. 95 Comparison of Assessed Property Tax Valuation Per Student, . 96 Twelve Largest Property Taxpayers by Individual Properties, June 30, 2009 and 2000 . .97 Property Tax Rates—Direct and Overlapping Governments, Based on $1,000 Assessed Valuation, 2000 - 2009 Years Ended June 30, 2000 through 2009. .98 Taxable and Estimated Actual Value of Taxable Property, iii Provo City School District For Fiscal Year Ended June 30, 2009 Table of Contents Utah Legislative Funding Method, 1978 - 2009. 99 History of the Value of the Weighted Pupil Unit (WPU), Debt Capacity Information: General Fund - Changes in Fund Balances . 100 & Ratio of Annual Debt Service to General Fund Expenditures, Years Ended June 30, 2000 through 2009 Years Ending June 30, 2010 through 2027 . 102 Schedule of Long-Term Debt Service, . 104 Ratios of Outstanding Debt, June 30, 2000 through 2009 . 106 Overlapping and Underlying General Obligation Debt, June 30, 2008 Years Ended June 30, 2003 through 2009. 107 Computation of Legal Debt Margin, Demographic and Economic Information: Selected Utah County Economic Statistics. 108 . 109 DemogrUtah Countyaphic Lar Informationgest Employers, - Population 2008. Growth. 110 Operating Information: Years Ended June 30, 2005 through 2009. 111 Full-Time Equivalent Positions by Function, Years Ended June 30, 2000 through 2009. 112 Student Average Daily Membership By School, As Reported in S-3 Report (unaudited), As Reported in S-3 Report (unaudited), Year Ended June 30, 2009 . 113 Student Average Daily Membership By School and Grade, Years Ended June 30, 2003 through 2009. 114 Number of Students per Teacher Years Ended June 30, 2003 through 2009. 115 Average Expenditures by Function per Pupil Buildings - Original Year of Construction/Square Footage. 116 Service Efforts, Accomplishments, and Miscellaneous Statistical Data. 117 . 122 Schedule of Insurance in Force, June 30, 2009 iv This section of theIntroductory District’s Comprehensive Annual Financial Report Section presents a general overview of the District and this report. Letter of Transmittal (pages 1 - 7) This executive letter is a narrative introduction to the report. The letter describes the profile of the District, major initiatives and long-term financial planning issues, the local economy, and relevant financial policies. Certificate of Achievement for Excellence in Financial Reporting - Government Finance Officers Association (page 8) Certificate of Excellence in Financial Reporting - Association of School Business Officials (page 9) Organizational Chart (page 10) This chart provides a general schemata of the overall District organizational structure. Elected and Appointed Officials (page 11) District. This list provides names and position descriptions of key elected and appointed officials within the Map - Precincts of the Board of Education (page 12) electorate. This map provides the names of elected Board members and their associated geographic Dr. Randall J. Merrill Superintendent of Schools Kerry J. Smith Business Administrator October 1, 2009 To the Members of the Provo City School District Board of Education and the Patrons of Provo City School District: Superinten- dent’s Message This Comprehensive We are pleased to present, to the public, Provo City School District’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2009. Annual Financial Report (CAFR) includes financial and non-financial information to meet the Theneeds report of a broad is prepared spectrum in accordance of readers. with generally accepted accounting principles (GAAP) - principles.which are applicable This report to conformsgovernmental to all entities current, throughout relevant pronouncements the United States. of theThe GASB, Gov which, takenernmental as a whole,Accounting are referred Standards to as Board generally (GASB) accepted establishes accounting local government principles (GAAP). accounting Management assumes full responsibility for all