Fort Smith Public Schools

Transcription

1 Fort Smith Public Schools Budget

2 Table of Contents Introductory Section Superintendent s Letter of Transmittal Graphs of Financial Data Summary of Financial Data Financial Section Introduction...15 Summary of Governmental Funds Teachers Salary Fund State and Local Operating Fund Debt Service Fund...35 Capital Projects Fund...36 Federal Fund Food Service Fund Activity Fund...46 Appendices Property Tax Assessments...47 Percent of Legal Fund Balance to Annual Budget...48 Percent of Operating Fund Balance to Annual Budget...49 Student Enrollment Trends...50 Glossary

3 Introductory Section

4 Board of Education August 10, 2007 Page 1 OFFICE OF THE SUPERINTENDENT August 10, 2007 Board of Education Fort Smith Public Schools Fort Smith, AR Dear Board Members: The following pages are presented to provide details of our financial operations for the immediate past and our projections for comparable operations for the coming year. These data reflect revenues and expenditures for the fiscal year and budget projections for revenue and expenditures during The format being utilized to classify and report these data is required by the Arkansas Department of Education. These requirements are based on the general format contained in Handbook 2R2, Financial Accounting for State and Local School Districts, issued by the Bureau of Educational Statistics of the U. S. Department of Education as expanded by the Arkansas Handbook. The Federal format is designed to allow for systematic reporting of school financial information which may be compared from state-tostate. The Arkansas Handbook is designed to provide specific modifications as required by actions of the Arkansas General Assembly and the State Board of Education. In response to additional requests by the Arkansas General Assembly, a large number of budget categories have again been reclassified for Changes to fund categories and creating new requirements continue to make the budget process more complex and in our view defeating the overall purposes which led to the establishment of a uniform accounting system more than a half-century ago. It is our intention to present budget material in such a manner as to be consistent with and comparable to the financial reports provided to the Board of Education on a monthly basis. Another priority is the maintenance of financial statements which will allow school administrators to effectively manage school budget implementation throughout the year. All these needs are supported by the need for an annual independent audit of financial operations which will conform to governmental auditing guidelines. This document is formatted to provide you with a better understanding of past fiscal activities of the Fort Smith School District while projecting operations for the future. Ms. Ellen Terry, Assistant Superintendent for Financial Services, and her staff have prepared this document utilizing input and involvement from several members of the FSPS administrative team. We have attempted to summarize information to provide an understanding of the overall financial operations of the Fort Smith Public Schools. Public Schools Service Center 3205 Jenny Lind Road PO Box 1948 Fort Smith, AR Fax

5 Board of Education August 10, 2007 Page 2 Graphs of Financial Data Pages 8-11 present summary data in a graphic format. It is possible to compare actual revenues for and budgeted revenues for You will note in the revenue graphs on page 8 that the revenue percentages for reflect little change in the proportional distribution of revenues between local, state and federal categories. The graphs on page 9 categorize expenditures by function. Any proportional variances are the result of projected increases in expenditures for capital projects which are in the other category. The static nature of most other operating expenses in relation to increases for capital purposes gives this result. Pages 10 and 11 present expenditures grouped by object with different classification parameters. Page 10 includes all categories of funds while page 11 excludes capital funds. The latter page is probably a more useful reflection as it is based on those ongoing expenditures which are current in nature. As you can see from these graphs, salaries and benefits continue to equal more than 80% of all funds expended. Any decline in percentage likely results from growth in scheduled purchased services and supplies as discussed later. The cost of servicing debt continues to be only a small percentage of our total budget. Pages present the same data in numeric fashion. There are also short descriptors of each function and object to clarify how these funds are received or expended. The higher revenues during are primarily the result of the anticipated issuance of bonds and fund proceeds during the year. The expenditures reflect a small increase as some of these funds will be expended during the year. Also scheduled for expenditure are revenues received during a prior year and held for the completion of specific projects and activities. When reviewing the various object categories, changes in expenditures from those actual in to those budgeted for reflect a variety of explanations. For example, the growth in salaries reflect the addition of personnel in response to enrollment growth, the addition of pre-k programs, additional support personnel and the overall salary increase of almost 3%. Benefits commensurate with these changes also are reflected as an increase for Purchased services increases are primarily driven by federal funds in several categories reflecting a required set-aside for Supplemental Educational Services from Title I funds in schools designated in school improvement and in other restricted funds. Supplies and materials include increases in projected energy and utility costs as well as rising textbook expenses. The capital outlay category includes a number of projects which are detailed in a later section of this document. The decrease in Federal revenue is due in part to continuing declines in program funding. The flat revenue picture at the local level continues to be highly troubling inasmuch as the Fort Smith Public Schools receive a higher percentage of total revenue from local sources than most Arkansas schools. This factor does not present a favorable revenue picture in comparison to our educational counterparts across the state. The modest increase in state revenues is almost entirely devoted to salary increases.

6 Board of Education August 10, 2007 Page 3 Introduction Page 15 provides a general introduction to the presentation of detailed financial data throughout the entire budget. It gives an overview of several issues associated with school budgeting and some aspects of financial accounting which may not be apparent to the casual observer. Please review these data and note specific questions which you may have regarding our revenues and expenditures from or projections for Your thoughtful questions will enhance our presentation of the budget and will contribute to the understanding of all. Combined Statement of Budgeted Revenues, Expenditures and Fund Balances Pages present combined statements of the various funds in terms of revenues received and expenditures made during , as well as budgeting in comparable categories for The format used to present these data will remain consistent throughout the rest of the document. You will note that actual figures for are presented in a shaded area. This presentation method will be used throughout the budget presentation to help distinguish actual figures from budget projections as presented in a comparable position on each page. You will note a small increase in the operating fund balance during Most of these funds are offset by encumbrances which will be paid during the coming year. The increase projected in debt service fund balance is due to the annual payments toward retirement of the Qualified Zone Academy Bonds (QZAB) issued and reflects the additional escrow funds approved by the Board of Education. This fund balance is held in anticipation of the single payment to be made to retire the issue after a tenyear term. Page 20 compares budgeted amounts to actual amounts for all funds by function for and presents comparable budgeted categories for Pages 21 and 22 use a similar format to compare actual and budgeted categories for revenues and expenditures among various funds and function groups for and Pages present similar comparisons of budgeted and actual categories by fund and object for both fiscal years. Teachers Salary Fund Pages summarize actual and budgeted activities in the Teachers Salary Fund. This fund receives revenue by transfer from the General Operating Fund for the purpose of paying salaries and certain benefits for certified personnel. The sole purpose of this fund is to allow for the identification of local school district expenditures for selected certified employees. The fund has no real purpose in view of the complex accounting structure utilized by Arkansas schools. It is a relic from a past era.

7 Board of Education August 10, 2007 Page 4 Also included on pages 28 and 29 are the full-time equivalency (FTE) for employees in each functional category. These numbers are reflective of the number of certified employees who provide services in the respective categories. It is also possible to note the amount of salary dollars devoted to each category of employee for both direct instruction and support. Minor FTE fluctuations in several of the instructional categories are the result of assigning costs to or from various Federal fund accounts. It should be noted that a change in coding requirements for those who have any association with interscholastic athletics has created the appearance of a vast increase in this category. While the mandated definition and coding method defies the logic of rational accounting processes, we are required to participate in this deception. State and Local Operating Fund Pages summarize revenues and expenditures associated with the State and Local operating funds. To see a total picture, these data should be considered in combination with the Teachers Salary Fund as they represent the majority of financial transactions performed by the School District. These revenues represent the funds which are available to local school districts to employ and compensate staff, to pay benefits attendant to staff, to operate school facilities and to fund all those operations which are necessary for the accomplishment of the mission of the Fort Smith Public Schools. These data are presented in the same format as other sections by presenting both actual revenues and expenditures for and budgeted revenues for in various functional categories as well as segregated into the various object categories. Revenues reflected on page 32 detail the primary sources of funds with which the school district supports current operations. These revenue estimates are conservative as prudent practice would dictate. However, as can be noted from the past year, variations are the result of increases in categories which are impossible to predict or which were unknown at the time the budget was prepared. These include interest earnings, student growth funds, Federal mineral leases and other local revenue. We have continued to control the commitment of any of the one-time funding to categories which would become continuing obligations. These expenditures have included property acquisition, facility improvements on several campuses and other one-time purchases. This will position the school district well to continue meeting the needs of students and staff. The relatively small increase in proceeds from ad valorem taxes is indicative of an assessment base that is not increasing significantly. Although the reappraisal of real property gives taxpayers an indication of significant tax increases, the 5% cap on annual increases in assessments on residential property and the cap for those 65 years old or older will significantly limit this growth. The increase in State Foundation Aid reflects the funding approved by the General Assembly. It is worthy of note that the total growth in Foundation Aid represents almost exactly the statewide growth in revenues produced by the Amendment 74 uniform tax. This is substantially devoted to salaries and benefits for staff. The targeted funds categories were increased by the General Assembly for the first year of the biennium. This increase will be used to cover required salary increases for affected personnel. Student growth funds received in are not budgeted as there is no assurance that enrollment will increase in the future. The Federal funds shown on this page are unrestricted in nature. They are never predictable and are therefore not budgeted from year-to-year.

8 Board of Education August 10, 2007 Page 5 The total State revenue is based on students. Continuing increases in average daily membership (ADM) will increase Foundation Aid, but will be accompanied by the need for additional staff. Higher interest rates will present a small increase in local revenue while other categories are relatively constant. Pages 33 and 34 reflect the allocation of operating fund expenditures into various functional categories as distributed into various object groups. Noteworthy in these numbers are salary increases for classified employees, and the increases in utilities, vehicle fuel and insurance costs which have been discussed earlier. The budgeted increases in costs related to energy sources may be inadequate in terms of past experiences and predictions for the future. Also included are the encumbrances from the prior budget year. These commitments are relatively consistent with past years. Debt Service Fund Page 35 presents activity relative to the servicing of long-term debt maintained by the Fort Smith Public Schools. Revenues on this page are produced by the.7 mill tax dedicated to the 2000 mandatory call bond issue. Other revenues are in the form of transfers from the general operating fund as required for debt payments. These funds are designed to pay principal and interest on the 2004 issues and to make payments on the Qualified Zone Academy Bonds (QZAB) being paid through post-dated warrants. You will note that the fund balance for the Debt Service Fund increased significantly. This reflects the addition of funds to the escrow account held to pay QZAB principal. This is the result of the escrow feature of the QZAB financing. This balance is invested and will have the ultimate effect of requiring significantly less payback than the amount originally borrowed. Capital Projects Fund Page 36 details activities relative to the receipt and use of bond proceeds for the improvement of school facilities. The sale of bonds during anticipates the receipt of these proceeds during the year. A significant amount of these proceeds will be allocated to support a number of projects which are planned for the year. Also reflected is interest income and a small amount of state facility funding. Expenditures include the major project completions at Fairview Elementary School and Southside High School as well as other smaller projects. It is anticipated that the major project at Albert Pike Elementary School will be contracted during this year. Construction costs continue to increase and are a cause for concern as we attempt to plan for future facility needs in relation to the revenues available. Our ability to utilize second lien bonds to complete needed projects helps greatly as we address our facility priorities.

9 Board of Education August 10, 2007 Page 6 Federal Fund Pages represent the various Federal restricted funds presented in a variety of formats to facilitate their analysis. These reports are detailed by function, by object and also provide an index of categorical Federal programs. In this format it should be possible to compare actual revenues and expenditures for with those anticipated for Page 39 details the various programs which support the Federally-funded initiatives. The aggregate of these funds does not reflect the school lunch and breakfast assistance. Part of the decline is the result of completion of all approved FEMA-funded tornado shelters. It is worthy of note that these FEMA-funded projects have brought more than $10 million in Federal assistance to the school district. Nonetheless, declines in funding for several Federal projects are certain in view of the appropriation scene from Washington, D.C. The use of all these Federal programs to address the needs of our students requires considerable coordination by various staff. It is worthy of note that these funds address student needs in virtually every Fort Smith school. Food Service Fund Pages present actual and budgeted revenues and expenditures in the Food Service Fund reported by function, by object and by function and object. This budget again anticipates the transfer of general operating funds to cover the costs of employee retirement and benefits which were formerly funded directly by the State when the formula was changed in The importance of effectively operating the school food service program as a successful enterprise account is also closely tied to targeted assistance for students who qualify for free or reduced price meals. As the number of eligible students continues to rise, the impact of this program becomes more evident. Accuracy and technical compliance with all USDA and State rules make this process critical to financial operations which extend beyond the serving of meals in local schools. Increased costs associated with fuel and food will continue to make balancing this budget a challenge despite our increase in prices for paying students. Activity Fund Page 46 reflects the operation of our summarized Activity Fund accounts during It is expected that each of these accounts will be self-supporting and that expenditures will generally equal revenues. Each Fort Smith school maintains a number of separate activity accounts which receive funds from a number of sources. These accounts are under the general oversight of the individual school units and are administered by the business office. They are also subject to our internal control procedures and are audited annually as part of the independent school district audit.

10 Board of Education August 10, 2007 Page 7 Appendices Pages provide several data items which support the budget document and reflect various trends which have an impact on financial operations. Appendix 1 summarizes local property assessments for more than a decade. These data reveal the relatively slow growth in the tax base due to several legislative acts governing reappraisals and property assessments. Appendix 2 reflects the legal fund balance relative to the annual budget. It includes escrow accounts for QZAB payments and is therefore limited in usefulness to describe a true financial picture. Appendix 3 presents the operating fund balance relative to the budget for generally current operations and is therefore more reflective of the true financial picture of the school district. Appendix 4 details school enrollment as of October 1 for the last decade. The slight growth during the past several years has served to stabilize the level of State funding in support of District operations while presenting challenges associated with space and staff. Appendix 5 provides a detailed definition of various budget terms which are used throughout this document. Summary The financial document presented on the following pages provides a detailed analysis of actual revenue and expenditures for the fiscal year and presents projections in a similar format for These estimates represent our best projections of what can be expected to occur during the fiscal period. They are based on trend data from past years as well as our analysis of changing financial conditions resulting from economic changes, program needs and legislative action. Steady student growth has helped to ensure a level of state funds which will help support needed services. Careful controls on spending and monitoring of long-term commitments has helped to maintain a sound financial picture. The negative revenue factors associated with a stagnant Federal level of support and a property tax base which is not increasing offset the positive growth in state funds. We continue to be challenged by rising energy costs which are reflected in many areas. All these expenditures support programs which facilitate our stated mission: The mission of the Fort Smith Public Schools is to ensure academic and personal success for each student today and in the future. I recommend that this revenue and expenditure plan for be adopted. Respectfully submitted, Benny L. Gooden, Ed.D. Superintendent of Schools Enclosures

11 WHAT ARE THE SOURCES OF REVENUES? Budgeted Revenues Federal 13% Local * 38% State 49% * Approximately 2/3 of local revenues are controlled by the state in accordance with Amendment 74 and Act 917 of Actual Revenues Federal 14% Local * 37% State 49% 8

12 HOW IS THE MONEY SPENT? Budgeted Expenditures by Function Food Service 4% Pupil Transportation 2% Other 9% Direct Instruction 51% Maintenance & Operations 11% Central Services 2% Administrative Services 6% Staff Services 9% Pupil Services 6% Regular Instruction 39% Special Education 7% Vocational Educatio 2% Compensatory Education 3% Food Service 4% Other 13% Actual Expenditures by Function Direct Instruction 49% Pupil Transportation 2% Maintenance 11% Central Services 2% Administrative Support 6% Staff Support 8% Pupil Support 5% Regular Instruction 37% Special Education 7% Vocational Education 2% Compensatory Education 3% 9

13 WHAT DOES THE MONEY BUY? Total Funds Budgeted Expenditures by Object Benefits 16% Purchased Services 5% Supplies & Materials 9% Other 13% Capital Outlay 11% Salaries 57% Debt Service 2% Actual Expenditures by Object Benefits 16% Purchased Services 4% Supplies & Materials 9% Other 10% Capital Outlay 8% Debt Service 2% Salaries 61% 10

14 WHAT DOES THE MONEY BUY? All Funds Excluding Capital Funds Benefits 17% Budgeted Expenditures by Object Purchased Services 6% Supplies & Materials 10% Capital Outlay 2% Other 4% Debt Service 2% Salaries 64% Actual Expenditures by Object Benefits 17% Purchased Services 4% Supplies & Materials 9% Other 5% Capital Outlay 3% Debt Service 2% Salaries 65% 11

15 Summary of Financial Data Revenues Revenues and Other Sources Budget Actual Local Includes taxes (current, pullback, delinquent and excess commissions), tuition, transportation fees, earnings on investments and other (contributions, rents, etc.) types of local revenue. $44,826,964 $44,977,737 State Includes unrestricted and restricted grants-in-aid. Unrestricted aid, such as State Equalization, Student Growth and Incentive Funding can be used for any local purpose approved by the District. Restricted aid, such as Limited English Proficiency and General Facilities Funding, must be used for a categorical purpose. 59,155,978 58,173,990 Federal Includes restricted revenues received directly from the federal government and restricted revenues received from the federal government through the state. Federal revenues, such as Title I, Title VI-B and the Child Nutrition Programs, must be used for a categorical or specific purpose. 15,007,962 16,962,700 Other Sources Includes proceeds from all borrowing activities. 11,485,000 6,625,000 Total $130,475,904 $126,739,427 12

16 Functional Categories Fort Smith Public Schools Summary of Financial Data Expenditures By Function Budget Actual Instruction Instructional activities for students kindergarten through high school. Includes regular instruction, special education, vocational education, compensatory education and other educational programs. $65,687,442 $61,124,303 Pupil and Instructional Staff Services Activities designed to assess and improve the welfare of students and supplement the teaching process and to assist the instructional staff with the learning process. 19,723,122 18,018,404 Administrative Services Activities concerned with the establishing and administering of district policy including the Board of Education, the Superintendent s Office and the Principal s Office. 7,436,927 7,110,310 Central Support Services Activities other than general administration which support other instructional and operational services. Includes business, purchasing and personnel services. 2,685,010 2,304,982 Maintenance and Operation Service Activities concerned with keeping the physical plant open, comfortable, and in good working order. They include custodial, utilities, and all other property services. 12,686,276 11,918,569 Transportation Services Activities concerned with student transportation, including student activities. Includes drivers, aides, bus maintenance and bus purchases. 2,722,152 2,211,992 Food Service Activities concerned with preparing and serving meals in connection with school activities and food delivery. 5,931,700 5,545,446 Debt Service Activities associated with the retirement of debt and payment of interest on debt. 1,895,375 1,866,391 Capital Projects Activities concerned with site acquisition services, site improvement services, architectural and engineering services and building construction and improvement services. 12,750,835 7,342,598 Other Functions Activities concerned with the functions not otherwise classified above. Includes adult education, community services and other activities. 2,269,401 2,458,646 Total $133,788,240 $119,901,641 13

17 Summary of Financial Data Expenditures By Object Object Categories Budget Actual Salaries Compensation paid to permanent and temporary employees of the district. $76,537,050 $72,963,461 Employee Benefits Costs paid on behalf of employees not included as part of an employee s gross salary. 21,028,030 19,688,393 Purchased Services and Professional and Technical Services Services performed by persons with specific expertise in a specialized field; services purchased to operate, repair, maintain, and rent property owned or used by the district; other contracted services. Supplies and Materials Expenditures for supplies and materials. 6,276,974 4,837,239 12,610,428 10,766,030 Capital Outlay Expenditures for the acquisition of land, buildings, improvements of grounds, construction of buildings, additions to buildings, remodeling of buildings, initial equipment and replacement of equipment or vehicles. 15,243,696 9,586,625 Other Objects Amounts paid for goods and services not otherwise classified above. 196, ,503 Debt Service Expenditures for the retirement of debt and interest on debt. 1,895,375 1,866,390 Total $133,788,240 $119,901,641 14

18 Financial Section

19 Introduction This section presents the budget for the school year and compares that data with actual results for and budget for The first section presents summarized District-wide information and the remainder of the sections present information for individual funds. In the District-wide section, budgets are presented in both a combined and combining format. Combined statements present District-wide information in a single column. Combining statements include a column for each fund and a column for the District-wide total. Some statements include only budgeted information for , while others report only actual information for Each part of the financial section includes comparative statements. These statements compare the amounts budgeted for with the actual results of and the budget for All actual information reported for is shown with a shaded background. Expenditures are reported in one of three ways: by function, by object, or by function and object. The function describes the activity being performed when a service is provided or a material object is received. The functions of the District are reported in broad categories, such as regular instruction on some statements and in more detailed categories, such as elementary instruction on other statements. Object classifications are used to describe a service or commodity obtained as a result of a specific expenditure. The major object categories reported in these statements include salaries, employee benefits, purchased services, supplies and materials, capital outlay, other and debt service. The third presentation, function and object, reports object information for each function. An example of this presentation would be salaries paid for elementary instruction. Revenues are reported in one of two ways. In statements reporting revenues, expenditures and changes in fund balance, revenues are reported by revenue source. In the individual fund sections, a separate statement provides detail of revenues by source. The Debt Service, Capital Projects and Capital Outlay Funds are an exception to this presentation. All revenues for these funds are derived from local sources and the detail is presented on the statement of revenues, expenditures and changes in fund balance. No amounts are budgeted for the Activity Funds. A statement is included that reports Activity Funds cash balances, receipts, disbursements and transfers for the school year. The Activity Funds generally reflect revenues which equal expenditures. 15

20 Summary of Governmental Funds

21 Combined Statement of Budgeted Revenues, Expenditures and Fund Balances By Fund Actual Budgeted Beginning Ending Fund Balance Fund Balance 6/30/2007 Revenues Transfers In Expenditures Transfer Out 6/30/2008 Teachers Salary Funds General 50,133,213 50,133,213 Professional Development 176, ,787 Alternative Learning 1,103,298 1,103,298 English Language Acquisition 1,031,481 1,031,481 National School Lunch Act 1,039,085 1,039,085 Arkansas Better Chance 533, ,351 Total Teachers Salary Funds 54,017,215 54,017,215 State and Local Operating Funds General 8,460,031 92,645,478 41,571,990 52,603,796 6,929,723 Professional Development 184, , , ,443 39,423 Alternative Learning 411,826 1,311, ,222 1,103,298 English Language Acquisition 725, , ,953 1,031,481 National School Lunch Act 3,968, , ,002 3,242, ,698 Secondary Workforce Education 28, , ,213 56,975 Arkansas Better Chance 1,176, , ,351 Adult Education 62,746 1,215,223 1,241,000 36,969 State Preschool 240, ,124 18,876 Spice 82, ,000 13, , ,465 Total State and Local Operating Fund 8,818, ,346,026 2,379,023 46,259,567 58,853,821 7,430,129 Debt Service Funds Debt Service Fund , , , ,919 Debt Service Fund ,112,960 1,112,960 Sinking Fund #1 2,164, ,735 2,450,600 Sinking Fund #2 5,217, ,087 5,909,873 Sinking Fund #3 29,801 29,801 59,602 Total Debt Service Funds 7,550, ,415 2,120,583 1,895,375 8,557,994 Capital Projects Fund Capital Projects 6,069,717 8,600,000 9,431,000 5,238,717 QZAB 234,835 3,085,000 3,319,835 Academic Facilities - Transitional Academic Facilities - Partnership Total Capital Projects Fund 6,304,552 11,685,000 12,750,835 5,238,717 16

22 Combined Statement of Budgeted Revenues, Expenditures and Fund Balances By Fund Actual Budgeted Beginning Ending Fund Balance Fund Balance 6/30/2007 Revenues Transfers In Expenditures Transfer Out 6/30/2008 Federal Projects Fund ROTC Fund 57,000 57,000 21st Century 69,133 84, ,133 Small Learning Communities Grant Title VII - Indian Education 162, ,818 FEMA Hazard Mitigation FEMA Impact Aid Hurricane Relief - Homeless Title I 899,748 4,104,516 5,003, Title I Migrant 241, ,961 1 Program Improvement Grant Even Start Family Literacy 5,856 75,000 75,000 5,856 Title I - Neglected and Delinquent 13,665 18,157 31,822 Title I - School Reform Demonstration 43,894 43,894 Title V 2,265 25,000 27,265 Title I - Reading First 235, , , ,250 Stuart B. McKinney Homeless 2,116 43,000 44, Federal Spice 13,000 13,000 REA Grant Vocational Education 282, ,858 Title II D Technology 99,503 99,503 Title II D 2,805 1, Adult Education 237, ,489 Title VI-B - IDEA 102,457 2,984,241 2,986, ,503 Title VI-B - Headstart 6,180 6,180 Federal Preschool 6, , ,215 46,620 School Based Mental Health 100, , , ,327 Medicaid Catastrophic 32, , ,392 26,153 ARMAC 233, , , ,628 Adult Refugee 56,190 36,040 55,271 36,959 Math and Science 42, , ,550 20,649 Title II A 251, ,637 1,017,555 Title III English Language Acquisition 177, , ,294 Drug Free Schools and Communities Act 17,244 81,763 98, Other Restricted Federal Funds Total Federal Fund 2,394,856 11,257,962 12,933,550 13, ,268 Food Service Fund 1,211,158 5,404, ,000 5,931,700 1,033,958 Activity Funds (no budget) 763, ,350 17

23 Combined Statement of Actual Revenues, Expenditures and Fund Balances By Fund Actual Ending Ending Fund Balance Fund Balance 6/30/2006 Revenues Transfers In Expenditures Transfer Out 6/30/2007 Teachers Salary Funds General 48,435,052 48,435,052 Professional Development 159, ,727 Alternative Learning 1,012,482 1,012,482 English Language Acquisition 1,020,041 1,020,041 National School Lunch Act 1,014,870 1,014,870 Arkansas Better Chance 301, ,225 Total Teachers Salary Funds 51,943,398 51,943,398 State and Local Operating Funds General 7,992,970 92,600, ,526 37,362,150 55,630,480 8,460,031 Professional Development 130, , , , ,473 Alternative Learning 309,368 1,186, ,748 1,012,482 English Language Acquisition 483,015 1,184, ,597 1,020,041 National School Lunch Act 40,227 3,875, ,851 3,300,897 Secondary Workforce Education 230, ,313 28,438 Arkansas Better Chance 636, , ,225 Adult Education 59,471 1,300,329 1,297,054 62,746 State Preschool 218, ,838 Spice 44, ,807 13, ,657 4,500 82,780 Total State and Local Operating Fund 8,267, ,392,376 3,244,027 41,570,681 61,514,812 8,818,467 Debt Service Funds Debt Service Fund , , , ,919 Debt Service Fund ,097,511 1,097,511 Sinking Fund #1 1,236, ,164 2,164,865 Sinking Fund #2 2,963,395 2,254,391 5,217,786 Sinking Fund #3 29,801 29,801 Total Debt Service Funds 4,341, ,476 4,310,630 1,842,103 7,550,371 Capital Projects Fund Capital Projects 3,331,735 6,897,837 2,019,769 5,460, ,239 6,069,717 QZAB 477, , ,835 Academic Facilities - Transitional 383, ,434 Academic Facilities - Partnership Total Capital Projects Fund 3,809,266 7,281,271 2,019,769 6,086, ,239 6,304,552 18

24 Combined Statement of Actual Revenues, Expenditures and Fund Balances By Fund Actual Ending Ending Fund Balance Fund Balance 6/30/2006 Revenues Transfers In Expenditures Transfer Out 6/30/2007 Federal Projects Fund ROTC Fund 56,358 56,358 21st Century 51, , ,799 69,133 Small Learning Communities Grant Title VII - Indian Education 154, ,060 FEMA Hazard Mitigation 638, ,116 1,256,083 FEMA Impact Aid 258,160 20, ,910 Hurricane Relief - Homeless 17,750 17,750 Title I 742,045 4,104,606 3,946, ,748 Title I Migrant 234, ,966 Program Improvement Grant 6,386 6, Even Start Family Literacy 24, , ,745 5,856 Title I - Neglected and Delinquent 21,664 18,157 26,157 13,665 Title I - School Reform Demonstration ,035 49,250 43,894 Title V 5,604 25,341 28,681 2,265 Title I - Reading First 278, , , ,128 Stewart B. McKinney Homeless 24,148 43,000 65,031 2,116 Federal Spice 13,015 13,015 REA Grant Vocational Education 270, ,590 Title II D Technology 53, , ,460 99,503 Title II D 177, ,395 2,805 Adult Education 234, ,987 Title VI-B - IDEA 119,323 2,848,612 2,865, ,457 Title VI-B - Headstart 6,180 6,180 Federal Preschool 13, , ,063 6,835 School Based Mental Health 68, , , ,120 Medicaid Catastrophic 43, , ,454 32,545 ARMAC 180, , , ,228 Adult Refugee 56,190 61,470 61,470 56,190 Math and Science 105,550 62,901 42,649 Title II A 1,112, , , ,918 Title III English Language Acquisition 226, , , ,473 Drug Free Schools and Communities Act 15,161 81,763 67,680 12,000 17,244 Other Restricted Federal Funds Total Federal Fund 1,949,345 12,992, ,211 12,913, ,985 2,394,856 Food Service Fund 1,074,118 5,332, ,000 5,545,446 1,211,158 Activity Funds 867,356 2,064, ,363 2,168, , ,350 19

25 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - By Function All Funds Budgeted Actual Budgeted Revenues Local Revenues 44,809,964 44,960,919 42,518,231 County Revenues 17,000 16,818 17,000 State Revenues 59,155,978 58,173,990 56,700,751 Federal Revenues 15,007,962 16,962,664 15,091,453 Total Revenues 118,990, ,114, ,327,435 Expenditures Instruction Regular Education 45,844,166 42,246,904 42,842,013 Special Education 9,087,019 8,954,348 9,108,504 Vocational Education 2,908,661 2,868,115 2,826,101 Compensatory Education 3,911,489 3,136,239 3,663,823 Other Education 3,936,108 3,918,698 3,909,782 Total Instruction Expenditures 65,687,442 61,124,303 62,350,223 Support Pupil Services 7,840,180 7,245,798 7,124,229 Instructional Staff Services 11,882,942 10,772,606 11,528,644 Administrative Services 839, , ,250 School Administrative Services 6,597,468 6,369,473 6,374,565 Central Services 2,685,010 2,304,982 2,564,554 Maintenance and Operation Services 12,686,276 11,918,569 12,593,100 Pupil Transportation Services 2,722,152 2,211,992 2,558,050 Food Services 5,931,700 5,545,446 5,328,424 Other Services 58,000 64,731 8,000 Total Support Expenditures 51,243,187 47,174,435 48,881,815 Adult, Community and Other Expenditures 2,211,401 2,393,914 1,865,459 Debt Service 1,895,375 1,866,391 1,741,162 Capital Projects 12,750,835 7,342,598 7,947,153 Total Expenditures 133,788, ,901, ,785,812 Excess(Deficiency) of Revenues over Expenditures (14,797,336) 212,750 (8,458,377) Bond Proceeds 11,485,000 6,625,000 6,400,000 Transfers in(out) Excess(Deficiency) of Revenues and Other Sources over Expenditures (3,312,336) 6,837,750 (2,058,377) Fund Balances: Beginning of Year 26,279,405 19,441,655 19,441,654 End of Year 22,967,069 26,279,405 17,383,277 20

26 Combining Statement of Budgeted Revenues, Expenditures and Changes in Fund Balances By Fund and Function All Funds Teachers State & Local Debt Capital Special Revenue School Budgeted Salary Operating Service Projects Federal Lunch Revenues Local Revenues 42,213, , ,000 1,614,500 44,809,964 County Revenues 17,000 17,000 State Revenues 59,115,978 40,000 59,155,978 Federal Revenues 11,257,962 3,750,000 15,007,962 Total Revenues 101,346, , ,000 11,257,962 5,404, ,990,904 Expenditures Instruction Regular Education 33,411,843 12,270, ,360 45,844,166 Special Education 4,654,566 2,550,979 1,881,474 9,087,019 Vocational Education 2,016, , ,858 2,908,661 Compensatory Education 645, ,336 2,894,193 3,911,489 Other Education 2,237,359 1,435, ,435 3,936,108 Total Instruction Expenditures 42,966,113 17,238,009 5,483,320 65,687,442 Support Pupil Services 3,485,995 2,459,949 1,894,236 7,840,180 Instructional Staff Services 3,327,039 3,691,636 4,864,267 11,882,942 Administrative Services 318, , ,459 School Administrative Services 3,571,935 3,025,533 6,597,468 Central Services 114,023 2,444, ,200 2,685,010 Maintenance and Operation Services 100,523 12,585,753 12,686,276 Pupil Transportation Services 81,163 2,640,989 2,722,152 Food Services 5,931,700 5,931,700 Other Services 58,000 58,000 Total Support Expenditures 10,998,818 27,427,966 6,884,703 5,931,700 51,243,187 Adult, Community and Other Expenditures 52,284 1,593, ,527 2,211,401 Debt Service 1,895,375 1,895,375 Capital Projects 12,750,835 12,750,835 Total Expenditures 54,017,215 46,259,565 1,895,375 12,750,835 12,933,550 5,931, ,788,240 Excess(Deficiency) of Revenues over Expenditures (54,017,215) 55,086,462 (1,112,960) (12,550,835) (1,675,588) (527,200) (14,797,336) Bond Proceeds 11,485,000 11,485,000 Transfers in(out) 54,017,215 (56,474,798) 2,120,583 (13,000) 350,000 Excess(Deficiency) of Revenues and Other Sources over Expenditures (1,388,336) 1,007,623 (1,065,835) (1,688,588) (177,200) (3,312,336) Fund Balances: Beginning of Year 8,818,468 7,550,371 6,304,552 2,394,856 1,211,158 26,279,405 End of Year 7,430,132 8,557,994 5,238, ,268 1,033,958 22,967,069 21

27 Combining Statement of Actual Revenues, Expenditures and Changes in Fund Balances By Fund and Function All Funds Teachers State & Local Debt Capital Special Revenue School Actual Salary Operating Service Projects Federal Lunch Revenues Local Revenues 42,029, , ,271 1,535,014 44,960,919 County Revenues 16,818 16,818 State Revenues 58,134,035 39,954 58,173,990 Federal Revenues 212,365 12,992,781 3,757,518 16,962,664 Total Revenues 100,392, , ,271 12,992,781 5,332, ,114,391 Expenditures Instruction Regular Education 31,862,754 10,108, ,530 42,246,904 Special Education 4,610,986 2,445,192 1,898,171 8,954,348 Vocational Education 2,032, , ,590 2,868,115 Compensatory Education 636, ,038 2,201,676 3,136,239 Other Education 2,166,459 1,532, ,483 3,918,698 Total Instruction Expenditures 41,309,311 14,949,543 4,865,449 61,124,303 Support Pupil Services 3,203,555 2,109,413 1,932,830 7,245,798 Instructional Staff Services 3,282,342 3,486,950 4,003,314 10,772,606 Administrative Services 327, , ,837 School Administrative Services 3,472,440 2,897,032 6,369,473 Central Services 111,344 2,104,819 88,820 2,304,982 Maintenance and Operation Services 98,713 11,819,855 11,918,569 Pupil Transportation Services 79,163 2,132,829 2,211,992 Food Services 5,545,446 5,545,446 Other Services 64,731 64,731 Total Support Expenditures 10,574,861 25,029,163 6,024,964 5,545,446 47,174,435 Adult, Community and Other Expenditures 59,226 1,567, ,001 2,393,914 Debt Service 24,287 1,842,103 1,866,391 Capital Projects 6,086,516 1,256,083 7,342,598 Total Expenditures 51,943,398 41,570,681 1,842,103 6,086,516 12,913,497 5,545, ,901,641 Excess(Deficiency) of Revenues over Expenditures (51,943,398) 58,821,695 (1,101,627) (5,430,245) 79,284 (212,959) 212,750 Bond Proceeds 6,625,000 6,625,000 Transfers in(out) 51,943,398 (58,270,785) 4,310,630 1,300, , ,000 Excess(Deficiency) of Revenues and Other Sources over Expenditures 550,910 3,209,002 2,495, , ,041 6,837,750 Fund Balances: Beginning of Year 8,267,557 4,341,369 3,809,266 1,949,345 1,074,118 19,441,655 End of Year 8,818,468 7,550,371 6,304,552 2,394,856 1,211,159 26,279,405 22

28 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - By Object All Funds Budgeted Actual Budgeted Revenues Local Revenues 44,809,964 44,960,919 42,518,231 County Revenues 17,000 16,818 17,000 State Revenues 59,155,978 58,173,990 56,700,751 Federal Revenues 15,007,962 16,962,664 15,091,453 Total Revenues 118,990, ,114, ,327,435 Expenditures Salaries 76,537,050 72,963,461 73,043,848 Benefits 21,028,030 19,688,393 19,812,232 Purchased Services 6,276,974 4,837,239 6,263,607 Supplies and Materials 12,610,428 10,766,030 11,350,059 Capital Outlay 15,243,696 9,586,625 10,418,870 Other 196, , ,034 Debt Service 1,895,375 1,866,391 1,741,162 Total Expenditures 133,788, ,901, ,785,812 Excess(Deficiency) of Revenues over Expenditures (14,797,336) 212,750 (8,458,377) Bond Proceeds 11,485,000 6,625,000 6,400,000 Transfers in(out) Excess(Deficiency) of Revenues and Other Sources over Expenditures (3,312,336) 6,837,750 (2,058,377) Fund Balances: Beginning of Year 26,279,405 19,441,655 19,441,654 End of Year 22,967,069 26,279,405 17,383,277 23

29 Combining Statement of Budgeted Revenues, Expenditures and Changes in Fund Balances By Fund and Object All Funds Teachers State & Local Debt Capital Special Revenue School Budget Salary Operating Service Projects Federal Lunch Revenues Local Revenues 42,213, , ,000 1,614,500 44,809,964 County Revenues 17,000 17,000 State Revenues 59,115,978 40,000 59,155,978 Federal Revenues 11,257,962 3,750,000 15,007,962 Total Revenues 101,346, , ,000 11,257,962 5,404, ,990,904 Expenditures Salaries 52,458,843 14,171,276 7,623,988 2,282,943 76,537,050 Benefits 1,558,372 16,632,001 2,038, ,732 21,028,030 Purchased Services 4,269,629 1,943,145 64,200 6,276,974 Supplies and Materials 8,803,319 1,058,284 2,748,825 12,610,428 Capital Outlay 2,328,721 12,750, ,140 37,000 15,243,696 Other 54, , ,687 Debt Service 1,895,375 1,895,375 Total Expenditures 54,017,215 46,259,565 1,895,375 12,750,835 12,933,550 5,931, ,788,240 Excess(Deficiency) of Revenues over Expenditures (54,017,215) 55,086,462 (1,112,960) (12,550,835) (1,675,588) (527,200) (14,797,336) Bond Proceeds 11,485,000 11,485,000 Transfers in(out) 54,017,215 (56,474,798) 2,120,583 (13,000) 350,000 Excess(Deficiency) of Revenues and Other Sources over Expenditures (1,388,336) 1,007,623 (1,065,835) (1,688,588) (177,200) (3,312,336) Fund Balances: Beginning of Year 8,818,468 7,550,371 6,304,552 2,394,856 1,211,158 26,279,405 End of Year 7,430,132 8,557,994 5,238, ,268 1,033,958 22,967,069 24

30 Combining Statement of Actual Revenues, Expenditures and Changes in Fund Balances By Fund and Object All Funds Teachers State & Local Debt Capital Special Revenue School Actual Salary Operating Service Projects Federal Lunch Revenues Local Revenues 42,029, , ,271 1,535,014 44,960,919 County Revenues 16,818 16,818 State Revenues 58,134,035 39,954 58,173,990 Federal Revenues 212,365 12,992,781 3,757,518 16,962,664 Total Revenues 100,392, , ,271 12,992,781 5,332, ,114,391 Expenditures Salaries 50,440,277 13,287,596 7,066,400 2,169,188 72,963,461 Benefits 1,503,121 15,461,155 1,951, ,256 19,688,393 Purchased Services 3,623,440 1,153,688 60,110 4,837,239 Supplies and Materials 7,292,334 1,086,328 2,387,368 10,766,030 Capital Outlay 1,827,318 6,086,516 1,516, ,524 9,586,625 Other 54, , ,503 Debt Service 24,287 1,842,103 1,866,391 Total Expenditures 51,943,398 41,570,681 1,842,103 6,086,516 12,913,497 5,545, ,901,641 Excess(Deficiency) of Revenues over Expenditures (51,943,398) 58,821,695 (1,101,627) (5,430,245) 79,284 (212,959) 212,750 Bond Proceeds 6,625,000 6,625,000 Transfers in(out) 51,943,398 (58,270,785) 4,310,630 1,300, , ,000 Excess(Deficiency) of Revenues and Other Sources over Expenditures 550,910 3,209,002 2,495, , ,041 6,837,750 Fund Balances: Beginning of Year 8,267,557 4,341,369 3,809,266 1,949,345 1,074,118 19,441,655 End of Year 8,818,468 7,550,371 6,304,552 2,394,856 1,211,159 26,279,405 25

31 Teachers Salary Fund

32 Comparative Statement of Revenues, Expenditures and Changes in Fund Balances Budget to Actual - By Function Teachers Salary Fund Budgeted Actual Budgeted Revenues Local Revenues County Revenues State Revenues Federal Revenues Total Revenues Expenditures Instruction Regular Education 33,411,843 31,862,754 32,199,684 Special Education 4,654,566 4,610,986 4,646,238 Vocational Education 2,016,385 2,032,587 1,992,728 Compensatory Education 645, , ,340 Other Education 2,237,359 2,166,459 2,110,492 Total Instruction Expenditures 42,966,113 41,309,311 41,525,482 Support Pupil Services 3,485,995 3,203,555 3,131,128 Instructional Staff Services 3,327,039 3,282,342 3,185,520 Administrative Services 318, , ,065 School Administrative Services 3,571,935 3,472,440 3,442,218 Central Services 114, , ,344 Maintenance and Operation Services 100,523 98,713 98,714 Pupil Transportation Services 81,163 79,163 79,173 Food Services Other Services Total Support Expenditures 10,998,818 10,574,861 10,357,162 Adult, Community and Other Expenditures 52,284 59,226 81,216 Debt Service Capital Projects Total Expenditures 54,017,215 51,943,398 51,963,860 Excess(Deficiency) of Revenues over Expenditures (54,017,215) (51,943,398) (51,963,860) Bond Proceeds Transfers in(out) 54,017,215 51,943,398 51,963,860 Excess(Deficiency) of Revenues and Other Sources over Expenditures Fund Balances: Beginning of Year End of Year 26

33 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual - By Object Teachers Salary Fund Budgeted Actual Budgeted Revenues Local Revenues County Revenues State Revenues Federal Revenues Total Revenues Expenditures Salaries 52,458,843 50,440,277 50,448,142 Benefits 1,558,372 1,503,121 1,515,718 Purchased Services Supplies and Materials Capital Outlay Other Debt Service Total Expenditures 54,017,215 51,943,398 51,963,860 Excess(Deficiency) of Revenues over Expenditures (54,017,215) (51,943,398) (51,963,860) Bond Proceeds Transfers in(out) 54,017,215 51,943,398 51,963,860 Excess(Deficiency) of Revenues and Other Sources over Expenditures Fund Balances: Beginning of Year End of Year 27