Reconciliation of the statement of income, expenses and changes in cash balances - State funds with. The objective of the independent audit was to provide reasonable assurance that the district's financial statements for the fiscal year ended June 30, 2014, are free from material misstatement. The independent auditors have determined, based on their audit, that there is a reasonable basis for issuing an unmodified opinion that the financial statements of the district for the fiscal year ended June 30, 2014 are fairly presented in accordance with accounting principles generally accepted in the United States of America.
The district's MD&A can be found immediately after the independent auditors' report. The district continues to have above average revenues and expects to grow in the near future. In the district, our community has stated that they expect high standards and hard work from the students and employees of the district.
The annual expenditure budget serves as the basis for the district's financial planning and control. The information in the financial statements is perhaps best understood when viewed from the broader perspective of the specific environment in which the district operates.
Association of School Business Officials International
Deer Valley Unified School District No. 97
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Reporting Entity
- Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The committee also has broad financial responsibilities, including approving the annual budget and establishing a system of accounting and budgetary control. A county 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 from other state or local governments. In addition, there are no constituent units consolidated with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting unit.
Consequently, the District's financial statements include only the funds of those organizational entities for which its elected governing board is financially responsible. The District's primary operations include education, student transportation, construction and maintenance of District facilities, food services, bookstore, and athletic functions. The government-wide financial statements (ie, statement of net position and statement of activities) present financial information for the District as a whole.
These statements are intended to distinguish between the governmental and business activities of the district. Revenues are recorded when they are earned and expenses when an obligation is incurred, regardless of the timing of the related cash flows.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
- Cash and Investments
- Investment Income
- Receivables and Payables
- Property Tax Calendar
- Inventory
- Prepaid Items
- Capital Assets
- Compensated Absences
- Long-term Obligations
Trust Funds – Trust funds are agency funds that account for resources held by the District on behalf of others. Cash with the county treasurer is pooled for investment purposes, with the exception of Debt Service cash and Bond Building Funds which may be separately invested. Interest earned on investments purchased with pooled money is allocated to each of the district's funds based on their average balance.
As required by law, the interest earnings of the Bond Building Fund are initially recorded in this fund and then transferred to the Debt Service Fund. The statute authorizes the county to separately invest monies from bond creation funds and debt service funds into the state treasurer's investment funds; obligations issued and guaranteed by the United States or any of its agencies or instrumentalities; certain state and local government bonds and debentures; and interest-bearing savings accounts or certificates of deposit. The statute authorizes the district to deposit monies from the auxiliary and student activities funds into bank accounts.
Interfund activity representing lending/borrowing arrangements outstanding at the end of the fiscal year is called either "due to/from other funds" (ie, the current portion of interfund loans) or "advances to/from other funds." . ” (ie, the non-current part of inter-fund loans). The second installment is paid on the first day of March of the following year and is made late after the first working day of May. The county also assesses various personal property taxes during the year, which are due on the second Monday of the month following receipt of the tax notice and are 30 days late thereafter.
The United States Department of Agriculture's (USDA) commodity portion of the food service inventory consists of food donated by the USDA. Capital assets are defined by the district as assets with an initial, individual cost in excess of Costs for normal maintenance and repairs that do not increase the value of the asset or significantly extend the life of the asset are not capitalized.
The obligation for vacation and sick leave is reported in the government-wide annual accounts. In the government-wide annual accounts, long-term debts and other long-term liabilities are reported as liabilities in the statement of net position. Bond premiums and discounts, as well as the difference between the acquisition price and the net book value of the old debt, are deferred and amortized on a straight-line basis over the term of the bonds, over the term of the related debt.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl’d)
- Interfund Activity
- Net Position Flow Assumption
- Estimates
FUND BALANCE CLASSIFICATIONS
FUND BALANCE CLASSIFICATIONS (Cont’d)
FUND BALANCE CLASSIFICATIONS (Concl’d)
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
CASH AND INVESTMENTS
RECEIVABLES
CAPITAL ASSETS
CAPITAL ASSETS (Concl’d)
SHORT TERM DEBT
OBLIGATIONS UNDER CAPITAL LEASES
GENERAL OBLIGATION BONDS PAYABLE
GENERAL OBLIGATION BONDS PAYABLE (Concl’d)
CHANGES IN LONG-TERM LIABILITIES
INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
CONTINGENT LIABILITIES
PRIOR PERIOD ADJUSTMENT
RISK MANAGEMENT
RISK MANAGEMENT (Concl’d)
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl’d)
OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN
OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN (Cont’d)
OTHER POSTEMPLOYMENT BENEFITS – SINGLE EMPLOYER PLAN (Concl’d) Actuarial Methods and Assumptions – Projections of benefits for financial reporting
SUBSEQUENT EVENTS
NEW ACCOUNTING PRONOUNCEMENT
Changes in the balance of funds Fund balances, beginning of the year Increase (decrease) in reserve for inventory Fund balances (deficits), end of the year.
BUDGETARY BASIS OF ACCOUNTING
Changes in fund holdings Department balances, beginning of the year Increase (decrease) in reserve for holdings Department balances, end of the year. COMBINED STATEMENT OF INCOME, EXPENDITURE AND CHANGES IN THE FUND BALANCE - ALL NOT LARGER PUBLIC FUNDS - BREAKDOWN BY FUND TYPE. Classroom Site - to account for the financial activity of the portion of state sales tax collections and permanent state school fund revenues as approved by voters in 2000.
Structured Immersion in English - to account for funds received to meet the additional costs of instruction for English language learners. Compensatory Instruction – to take into account funds received for programs in addition to normal classroom instruction to improve the English language skills of current English language learners.
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
Rate - to account for financial assistance received for broadband internet and telecommunication costs
Food service - to account for the financial activity of school activities aimed at the preparation and serving of regular and occasional 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 activities related to academic and skill development for all citizens.
Auxiliary Operations – to account for activities arising from bookstore, athletics and various district related operations. Reimbursements for Extracurricular Activities Tax Credit - to account for activities related to funds raised in support of extracurricular activities, which are to be considered a tax benefit by the taxpayer in accordance with A.R.S. Gifts and Donations - to account for activities related to gifts, donations, bequests and private grants to the district.
Textbooks - to account for fees received from students to replace or repair lost or damaged textbooks. Joint Technical Education - to account for funds received from Joint Technical Education Districts for vocational education programs. Fund balances (deficits), beginning of year Increase (decrease) in reserve for inventory Fund balances (deficits), end of year.
Debt service - to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs. Adjacent Ways - to account for fees received to fund public way improvements adjacent to school property. Bond building - to account for the proceeds of district bond issues spent on the acquisition or lease of premises; construction or renovation of school buildings; the provision of school buildings with furniture, equipment and technology; the improvement of school grounds; or the purchase of pupil transport vehicles.
Condemnation - to account for the proceeds of right-of-way settlements and sales by condemnation or threat of condemnation. Energy and Water Conservation - to account for capital investment funds, energy-related rebate, or grant funds, and funds from other funding sources to fund energy or water conservation projects in school facilities in accordance with A.R.S. New School Facilities - to account for monies received from the School Facilities Board to be used for the construction of new school facilities and the purchase of land for new school sites.
Student Activities - To account for money raised by students to fund student clubs and organizations, but held by the District as agent. Employee Insurance - to account for voluntary withholdings temporarily withheld by the District as agent.
