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State of New Mexico Hobbs Municipal School District #33

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State of New Mexico Hobbs Municipal School District #33 Accounting & Consulting Group, LLP Certified Public Accountants STATE OF NEW MEXICO HOBBS MUNICIPAL SCHOOL DISTRICT #33 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 (This page intentionally left blank) 2 INTRODUCTORY SECTION 3 (This page intentionally left blank) 4 STATE OF NEW MEXICO Hobbs Municipal School District #33 Table of Contents June 30, 2012 Exhibit Page INTRODUCTORY SECTION Table of Contents 5-7 Official Roster 9 FINANCIAL SECTION Independent Auditors’ Report 12-13 Management’s Discussion and Analysis 15-29 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Assets A-1 32-33 Statement of Activities A-2 34-35 Fund Financial Statements: Balance Sheet – Governmental Funds B-1 36-37 Reconciliation of the Balance Sheet to the Statement of Net Assets 39 Statements of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds B-2 40-41 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 43 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual: General Fund C-1 44 Title I IASA Special Revenue Fund C-2 45 Statement of Fiduciary Assets and Liabilities - Agency Funds D-1 47 NOTES TO FINANCIAL STATEMENTS 49-85 Schedule/ SUPPLEMENTARY INFORMATION Statement Nonmajor Governmental Fund Descriptions 91-95 Combining and Individual Fund Statements and Schedules Combining Balance Sheet – Nonmajor Governmental Funds A-1 96-105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds A-2 106-115 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual: Food Service Special Revenue Fund B-1 117 Athletics Special Revenue Fund B-2 118 Javits Gifted & Talented Students Special Revenue Fund B-3 119 Entitlement IDEA-B Special Revenue Fund B-4 120 Competitive IDEA-B Special Revenue Fund B-5 121 Preschool IDEA-B Special Revenue Fund B-6 122 “Risk Pool” IDEA-B Special Revenue Fund B-7 123 Partnership in Character Education Special Revenue Fund B-8 124 Enhancing Education Through Technology (E2T2-F) Special Revenue Fund B-9 125 Comprehensive School Reform Special Revenue Fund B-10 126 Title III – Incentive Award Special Revenue Fund B-11 127 Enhancing Education Through Technology (E2T2-C) Special Revenue Fund B-12 128 5 STATE OF NEW MEXICO Hobbs Municipal School District #33 Table of Contents June 30, 2012 Statement Page SUPPLEMENTARY INFORMATION (continued) Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual (Continued): Title V Innovative Education Program Special Revenue Fund B-13 129 English Language Acquisition Special Revenue Fund B-14 130 Teacher/Principal Training & Recruiting Special Revenue Fund B-15 131 Safe & Drug Free Schools & Communities Special Revenue Fund B-16 132 Title I School Improvement Special Revenue Fund B-17 133 Immigrant Funding Title III Special Revenue Fund B-18 134 Carl Perkins Secondary Special Revenue Fund B-19 135 Carl Perkins Secondary PY Special Revenue Fund B-20 136 Carl Perkins Secondary – Redistribution Special Revenue Fund B-21 137 Title I IASA – Federal Stimulus Special Revenue Fund B-22 138 Entitlement IDEA-B – Federal Stimulus Special Revenue Fund B-23 139 Enhancing Education Through Technology –Federal Stimulus Special Revenue Fund B-24 140 Title XIX Medicaid Special Revenue Fund B-25 141 SEG Federal Stimulus Special Revenue Fund B-26 142 Education Jobs Fund Special Revenue Fund B-27 143 J.F Maddox Foundation Special Revenue Fund B-28 144 Microsoft Settlement Funds Special Revenue Fund B-29 145 2009 Dual Credit IM/HB2 Special Revenue Fund B-30 146 2008 G.O. Bond Student Library Special Revenue Fund B-31 147 2010 G.O. Bond Student Library Special Revenue Fund B-32 148 Technology for Education PED Special Revenue Fund B-33 149 Incentives for School Improvement Special Revenue Fund B-34 150 G.O. Library Bonds Special Revenue Fund B-35 151 Pre-K Initiative Special Revenue Fund B-36 152 Beginning Teacher Mentoring Special Revenue Fund B-37 153 Breakfast for Elementary Students Special Revenue Fund B-38 154 Technology Equity Special Revenue Fund B-39 155 School Improvement Framework Special Revenue Fund B-40 156 Kindergarten – Three Plus Special Revenue Fund B-41 157 Libraries – G.O. Bonds Special Revenue Fund B-42 158 Start Smart K-3 Utah State University Study Special Revenue Fund B-43 159 TCA Value Options Special Revenue Fund B-44 160 Bond Building Capital Projects Fund B-45 161 Public School Capital Outlay Capital Projects Fund B-46 162 Special Building Local Capital Projects Fund B-47 163 Special Capital Outlay - State Capital Projects Fund B-48 164 Capital Improvements HB-33 Capital Projects Fund B-49 165 SB-9 Capital Improvements Capital Projects Fund B-50 166 Debt Service Fund B-51 167 Combining Balance Sheet – General Fund C-1 169 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – General Fund C-2 170 6 STATE OF NEW MEXICO Hobbs Municipal School District #33 Table of Contents June 30, 2012 Statement Page SUPPLEMENTARY INFORMATION (continued) Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual: Operating Fund C-3 171 Pupil Transportation Fund C-4 172 Instructional Materials Fund C-5 173 Schedule Page SUPPORTING SCHEDULES Schedule of Deposit and Investment Accounts I 176-177 Cash Reconciliation II 178-181 Schedule of Collateral Pledged by Depository for Public Funds III 182-183 Schedule of Changes in Assets and Liabilities–Agency Funds IV 185 COMPLIANCE SECTION Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 188-189 FEDERAL FINANCIAL ASSISTANCE Independent Auditors’ Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 192-193 Schedule of Expenditures of Federal Awards V 194-195 Schedule of Findings and Questioned Costs VI 197-202 OTHER DISCLOSURES 203 7 (This page intentionally left blank) 8 STATE OF NEW MEXICO Hobbs Municipal School District #33 Official Roster June 30, 2012 Name Title Board of Education Lance Wiseman Board President Joseph Calderon Board Vice President Patricia D. Jones Board Secretary Gary Eidson Board Member Oscar Gonzalez Board Member Administrative Officials T.J. Parks Superintendent Sabrina Amador Director of Finance Will Hawkins Assistant Superintendent for Secondary Instruction Debbie Cooper Assistant Superintendent for Elementary Instruction Pam Thompson Assistant Superintendent for Human Resources 9 (This page intentionally left blank) 10 FINANCIAL SECTION 11 Accounting & Consulting Group, LLP Certified Public Accountants INDEPENDENT AUDITORS’ REPORT Hector H. Balderas New Mexico State Auditor The Office of Management and Budget The Board of Education Hobbs Municipal School District #33 Hobbs, New Mexico We have audited the accompanying financial statements of the governmental activities, each major fund, the budgetary comparison for the General Fund and major special revenue fund and the aggregate remaining fund information of Hobbs Municipal School District #33 (the 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. We also have audited the financial statements of each of the District’s nonmajor governmental funds, the combining financial statements for the General Fund and the respective budgetary comparisons for the major capital projects fund, the major debt service fund, and the remaining nonmajor governmental funds presented as supplementary information in the accompanying combining and individual fund financial statements as of and for the year ended June 30, 2012 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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,
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