Comprehensive Annual Financial Report ANCHORAGE SCHOOL DISTRICT for the Fiscal Year Ended June 30, 2011 Carol Comeau Superintendent Prepared by Business Management Division Chad Stiteler, Chief Financial Officer Susan Jolin, Controller A Component Unit of the Municipality of Anchorage Anchorage, Alaska Non Discrimination Statement It is the policy of the Anchorage School District to provide equal educational and employment opportunities, and to provide services and benefits to all students and employees without regard to race, color, religion, disability, national origin, gender, marital status, change in marital status, pregnancy, parenthood or other prohibitions. This policy is consistent with numerous laws, regulations, and executive orders enforced by various federal, state, and municipal agencies, including but not limited to Executive Order 11246, Title 41, part 60-1,60-2,60-3,60-20, Title VI and VII of the 1964 Civil Rights Act, Title IX of the Education Amendments Act of 1972, and Section 504. Inquiries or complaints may be addressed to the School District's Equal Employment Opportunity Director, who also serves as the Title IX Coordinator, ASD Education Center, Anchorage, AK 99504-3135, (907) 742-4132 or to any of the following external agencies: Alaska State Commission for Human Rights, Anchorage Equal Rights Commission, Director of the Office for Civil Rights, Department of Education, Department of Health and Hu­ man Services. ii ANCHORAGE SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2011 T ABLE OF CONTENTS Title Page ................................................................................................................................................ EEO Policy.. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. ..... .. .. .. ... .... .. .... .. .. .. .. .. ... ... .. .. .. .. ii Table of Contents. .. ... .. .. .. .. .. ... .... .. .. ... ... .. ... ... .. .. .. .. .. .. ... .. .. ... .. .. .... .. .. .. .. .. .. iii INTRODUCTORY SECTION Letter of Transmittal .................................................................................................................................... v School Board ............................................................................................................................. ... .. .. xxii Organizational Chart.. .. .. .. .. .. .. .. ..... .. .. .. .. ... ... .... .... .. .... .. .... .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .... .. xxiii Certificate of Achievement.................................................................................................................... .. .. .. xxiv Certificate of Excellence .......... ........ ........................ .... ..... ... .... ... .... .......................... .......... ................ ....... ... xxv FINANCIAL SECTION Independent Auditor's Report......................................................................................................................... 1 Management's Discussion and Analysis ............................................................................................................. 3 Basic Financial Statements: Govermnent-wide Financial Statements: Statement of Net Assets ......................................................................................................................... 15 II Statement of Activities ......................................................................................................................... 16 Fund Financial Statements: ill Balance Sheet - Govermnental Funds. .... .. ... ... ... ..... ... .. ... .. .. .... .. .. ..... .. .. .. .. .. .. .. .. ... .. .. ..... .. .. .. 17 IV Reconciliation of the Balance Sheet Govermnental Funds to the Statement of Net Assets............................................. 18 V Statement of Revenues, Expenditures and Changes in Fund Balances - Govermnental Funds ........................................ 19 VI Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities.............. .......................... ................................................ 20 VII Statement of Net Assets - Proprietary Funds ................................................................................................. 21 Vill Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds.................. ..... ............................. 22 IX Statement of Cash Flows - Proprietary Funds ............................................................................................... 23 Notes to the Basic Financial Statements............................................................................................ .............. 24 x Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual- General Fund ................................................................................ ' 47 XI Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Basis) and Actual- State and Federal Grants Special Revenue Funds ........................................................................................ , 49 Notes to the Required Supplementary Information............................................................................................. 52 Combining and Individual Fund Statements and Schedules: Schedule General Fund: A-I Balance Sheet ..................................................................................................................................... 55 A-2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - GAAP Basis .................................................. ' 56 A-3 Schedule of Expenditures - GAAP Basis... ........ ...... ... .......... ........ ........ ...... .............. ..... .... ...... .......... .......... 58 A-4 Schedule of Expenditures, Budget (Non-GAAP Basis) and Actual..... .... ......... ... ........ ... ... ... ... .... ... ..... ... .............. 60 A-5 Schedule of Expenditures by Function, Activity, and Object - GAAP Basis ...... ... ... ........ ... ... ...... .... ..... ... ....... .... ..... 64 Special Revenue Funds: State and Federal Grants Fund: B-1 Balance Sheet. ... .. ... .... .. .. ... .. .. .. .. ..... ... .. ... .. .. .. ... .. .. .. ... .. .. ..... .. .. .. .... .. ... .. .. .... 67 B-2 Schedule of Revenues, Expenditures and Changes in Fund Balance - GAAP Basis.................. ......... ............... ...... 68 B-3 Schedule of Expenditures - GAAP Basis .................................................................................................. 71 B-4 Schedule of Expenditures, Budget (Non-GAAP Basis) and Actual.... .... ........ ... ... ...... ........ .... .... ....................... 73 B-5 Schedule of Expenditures by Function, Activity, and Object - GAAP Basis ........................................................ , 83 B-6 Combining Balance Sheet - Nonmajor Govermnental Funds....... .............................. ....... ..... .............................. 86 B-7 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Govermnental Funds............. 87 Food Service Fund: B-8 Balance Sheet. .. ... ... ... .. .... .. .. ... .. ... .. ..... ... .. .... ... .... ... ........ .. .. ... ... .. .... .. ...... .. .. ... .. ... .. .. .. ...... .. 88 B-9 Schedule of Revenues, Expenditures, and Changes in Fund Balance - GAAP Basis....... ...... .......... ...... .................. 89 B-IO Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget (Non-GAAP Basis) and Actual... ........... ... 90 B-11 Schedule of Expenditures by Function, Activity, and Object - GAAP Basis ........................................................ ' 92 iii (Continued) Schedule Student Activity Fund: Page B-12 Balance Sheet - By Account. .. .. .. .. ... .. .. .. .. .. .. ... ... .. .... .. .. .. ... ... .. ... ... .. .. .. .. .. ... ... .. .. .. .. .. .. .. 93 B-13 Schedule of Revenues, Expenditures, and Changes in Fund Balance - By Account.......................................... ....... 94 B-14 Balance Sheet - Decentralized Activities - By Department.. .. .. .. ... ..... .... .. .. .. .. .. ...... .. .. .. ... .. ....... .. .. .... .. .. .. 95 B-15 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Decentralized Activities - By Department. ..... .. .. .. .. ... .. .. ........... .. .. .. .. .... ... .. .. ..... .............. .. .... .. .. ...... ... ... .. .. ...... ..... .. .. ... ... .. 96 B-16 Balance Sheet - Centralized Activities - By Department........ ...... .. ...... ....... .. ..... ..... .. .. .. ... ... .. ... .. ... ... .. 97 B-17 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Centralized Activities - By Department............... ... .... .... ...... ...... ..... .. ... .... ............. ..... .... .. .. .......... ... .. ... ... ... ... .. .. .. .... ... .. 98 Debt Service Fund: C-I Balance Sheet.... ... ..... .. .. .. .. .... .. .. .. .. .. .. .. .. .. ... .. .. ..... .... .. .. .. .. .. ... .... .... ... ... .. .. .. .. .. ...... 99 C-2 Schedule of Revenues, Expenditures, and Changes in Fund Balance, Budget (GAAP Basis) and Actual.......................... 100 Capital Projects Fund: D-I Balance Sheet. ... .. .. .. .. .. .. .. ... ... ....... .. ...... ... ... .. .. .. ..... ......... .. .. .. .. .. ..... .... ... .. ... ... ...... .. ... ..... 101 D-2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - GAAP Basis ..................................................