ProvoProvo CityCity SchoolSchool DistrictDistrict 280 West 940 North Provo, Utah 84604 ComprehensiveComprehensive AnnualAnnual FinancialFinancial ReportReport For Fiscal Year Ended June 30, 2004 ProvoProvo CityCity SchoolSchool DistrictDistrict 280 West 940 North Provo, Utah 84604 ComprehensiveComprehensive AnnualAnnual FinancialFinancial ReportReport For Fiscal Year Ended June 30, 2004 Randall J. Merrill, Ed.D. Superintendent of Schools Kerry J. Smith Business Administrator Certified Public Accountant Prepared By: Todd S. Burke Asst. Business Administrator/Accounting Certified Government Financial Manager Licensed Business Educator & Administrator MISSIONMISSION STATEMENTSTATEMENT Provo City schools maximize student achievement and development. Students in our schools enlarge their capacities, interests, and love of learning. They: • Master the basics (the foundations of literacy and numeracy) • Develop depth of content knowledge • Excel in their interests • Feel respected and loved in a safe and orderly environment • Develop responsible, respectful, and compassionate citizenship We will accomplish our mission through connecting with the community. Board of Education and Officers Front Row (left to right): Carolyn Wright, Sandy Packard, & Shannon Poulsen. Back Row (left to right): Dr. Randall Merrill, Darryl Alder, Richard Sheffield, & Kerry Smith. PROVO CITY SCHOOL DISTRICT Table of Contents Year Ended June 30, 2004 Page INTRODUCTORY SECTION: Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 16 ASBO Certificate of Excellence in Financial Reporting 17 Organizational Chart 18 List of Elected and Appointed Officials 19 Current Precincts of the Board of Education 20 Future Precincts of the Board of Education 21 FINANCIAL SECTION: Independent Auditor’s Report 25 Management’s Discussion and Analysis 27 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 40 Statement of Activities 41 Fund Financial Statements: Balance Sheet, Governmental Funds 42 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 43 Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds 44 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 45 Statement of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, General Fund 46 Statement of Fiduciary Fund Assets and Liabilities, Agency Funds 47 Notes to Basic Financial Statements 48 PROVO CITY SCHOOL DISTRICT Table of Contents Year Ended June 30, 2004 Page Combining and Individual Fund Statements and Schedules: Combining Balance Sheet, Nonmajor Governmental Funds 66 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances, Nonmajor Governmental Funds 67 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, Non K-12 Instruction, Nonmajor Special Revenue Fund 68 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, Food Services, Nonmajor Special Revenue Fund 69 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, General Fund 71 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, Major Debt Service Fund 72 Schedule of Revenues, Expenditures, and Changes in Fund Balances, Budget and Actual, Major Capital Projects Fund 73 Statement of Changes in Assets and Liabilities, Student Activities Agency Fund 75 Statement of Changes in Assets and Liabilities, Special Programs Agency Fund 76 STATISTICAL SECTION (unaudited): Financial Trends Information: Full-Accrual Basis of Accounting: Net Assets By Category, 2003 - 2004 80 Changes in Net Assets, 2003 - 2004 81 Expenses, Program Revenues, and Net Revenues (Expenses), 2003 - 2004 82 General Revenues and Other Changes in Net Assets, 2003 - 2004 83 Modified-Accrual Basis of Accounting: Fund Balances, Total Governmental Funds, 1995 - 2004 84 Changes In Fund Balances, Total Governmental Funds, 1995 - 2004 85 Revenues By Source, Total Governmental Funds, 1995 - 2004 86 Revenues By Source , Total Governmental Funds, Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 87 PROVO CITY SCHOOL DISTRICT Table of Contents Year Ended June 30, 2004 Page Comparison of Per Pupil Revenues By Source, Total Governmental Funds, 1995 - 2004 88 Comparison of Per Pupil Revenues By Source, Total Governmental Funds, Restated in 2004 Dollars (Using Consumer Price Index), 1995 - 2004 89 General Fund: Revenues By Source, 1995 - 2004 90 Revenues By Source, Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 91 Percentage Change In Revenues By Source, 1995 - 2004 92 Comparison Of Per Pupil Revenues By Source, 1995 - 2004 93 Comparison Of Per Pupil Revenues By Source, Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 94 Expenditures By Function, 1995 - 2004 95 Expenditures By Function, Restated In 2004 Dollars (Using Consumer Price 96 Index), 1995 - 2004 Capital Projects Fund: Revenues By Source, 1995 - 2004 97 Revenues By Source, Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 98 Non K-12 Instruction Fund: Revenues By Source, 1995 - 2004 99 Revenues By Source, Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 100 Food Services Fund: Revenues By Source, 1995 - 2004 101 Revenues By Source - Restated In 2004 Dollars (Using Consumer Price Index), 1995 - 2004 102 Revenue Capacity Information: Property Tax levies and Collections, 1995 - 2004 104 Comparison of Utah School District Property Tax Rates, Tax Year 2003 106 Comparison of Utah School District Property Tax Rates, Graphical Presentation, Tax Year 2003 107 PROVO CITY SCHOOL DISTRICT Table of Contents Year Ended June 30, 2004 Page Comparison of Utah School Districts’ Assessed Property Tax Valuation Per Student, Fiscal Year 2002-03 108 Comparison of Utah School Districts’ Assessed Property Tax Valuation Per Student, Graphical Presentation, Fiscal Year 2002-03 109 Fifteen Largest Property Taxpayers By Individual Properties, June 30, 2004 110 Property Tax Rates—Direct and Overlapping Governments 111 Taxable and Estimated Actual Value of Taxable Property, 1985 - 2004 112 History of the Value of the Weighted Pupil Unit, 1977 - 2004 113 Title 1 Low Income Report, Based on District Child Nutrition Program Participation, October 2003 114 Debt Capacity Information: Summary of Long-Term Debt, 1995 - 2004 116 Overlapping and Underlying General Obligation Debt, June 30, 2004 117 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita, 1995 - 2004 118 Computation of Legal Debt Margin, June 30, 2004 119 Ratio of Annual Debt Service Fund to General Fund Expenditures, 1995 - 2004 120 Demographic and Economic Information: Selected Utah Economic Statistics and Forecasts, 2000 - 2005 122 Demographic Information - Live Births, 1997 - 2002 123 General Population Growth, 1900 - 2000 124 Utah County Largest Employers, 2004 125 Operating Information: Full-Time Equivalent Positions By Function, Based Upon Average Annual Salary Per Job Category, Year Ended June 30, 2004 127 Average Daily Membership, As Reported in S-3 Report (audited), 1995 - 2004 128 Service Efforts, Accomplishments, and Miscellaneous Statistical Data: Average Daily Attendance 130 Advanced Placement Test Results 130 American College Test (ACT) Results 130 Graduates 130 Elementary Criterion-Referenced Testing (CRT) 131 Secondary Math & Science Criterion-Referenced Testing (CRT) 131 Stanford Achievement Test Results (SAT) 132 PROVO CITY SCHOOL DISTRICT Table of Contents Year Ended June 30, 2004 Page Transportation 132 Certified Staff 133 Classified Staff 133 Vandalism Costs 133 Schedule of Insurance in Force, Year Ended June 30, 2004 134 provostELEMENTARY SCHOOL HopeHope andand DreamsDreams I watch and I wait On this beach all alone In the starlight And moonlight Terribly cold With no hope for tomorrow And no dream for today What can I do here alone On the bay? A new day is dawning There is new light to spring Where dreams are forever And old things shall sing Now hope is my rain What a precious sweet thing While I sit here alone In my kingdom by the sea. This kingdom by the sea Was prepared for me While I wait and I dream Of things yet to be My hope here is found And my dreams are restored There’s a light in my eyes That I dream of no more. Amanda Autrey Student, Dixon Middle School I.I. IIntroductoryntroductory SectionSection ProvProvoo CityCity SchoolSchool DistrDistrictict 280 West 940 North Provo, Utah 84604 Dr. Randall J. Merrill Superintendent of Schools Kerry J. Smith Business Administrator September 14, 2004 To the Members of the Provo City School District Board of Education, and to the Patrons of Provo City School District: We are pleased to present to the public Provo City School District’s Comprehensive An- nual Financial Report (CAFR) for the fiscal year ended June 30, 2004. This report is published to provide information, both financial and non-financial in nature, to be used not only by the Board of Education and other administrative officers of the District, but also by taxpayers and patrons of the District, investors, creditors, grantor agencies, the State of Dr. Randall J. Merrill Utah and other oversight entities, consumer groups, and District employees. Superintendent The report is prepared in accordance with generally accepted accounting principles (GAAP) which are applicable to governmental entities throughout