TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016

_____________________________
2300 N. Tanque Verde Loop, Building #1 – Tucson, Arizona 85749

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TUCSON, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016

Issued by: Business Office

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

INTRODUCTORY SECTION	Page

Letter of Transmittal	1

ASBO Certificate of Excellence	7

GFOA Certificate of Achievement	8

Organizational Structure	9

List of Principal Officials	10

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT	13

MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)	17

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements:

Statement of Net Position	30

Statement of Activities	31

Fund Financial Statements:

Balance Sheet – Governmental Funds	34

Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position	37

Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	38

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds to the
Statement of Activities	40

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

FINANCIAL SECTION	Page

BASIC FINANCIAL STATEMENTS

Statement of Assets and Liabilities – Fiduciary Funds	41

Notes to Financial Statements	42

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Revenues Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund	66

Special Education Grants Fund	67

Schedule of Proportionate Share of the Net Pension Liability	68

Schedule of Contributions	68

Notes to Required Supplementary Information	69

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type	74

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type	75

Special Revenue Funds:

Combining Balance Sheet	78

Combining Statement of Revenues, Expenditures and
Changes in Fund Balances	84

Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual	90

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

FINANCIAL SECTION	Page

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Debt Service Fund:

Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual	114

Capital Projects Funds:

Combining Balance Sheet	116

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances	118

Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual	120

Agency Funds:

Combining Statement of Assets and Liabilities	128

Combining Statement of Changes in Assets and Liabilities	129

STATISTICAL SECTION

Financial Trends:

Net Position by Component	133

Expenses, Program Revenues, and Net (Expense)/Revenue	134

General Revenues and Total Changes in Net Position	136

Fund Balances – Governmental Funds	138

Governmental Funds Revenues	140

Governmental Funds Expenditures and Debt Service Ratio	142

Other Financing Sources and Uses and Net Changes in Fund
Balances – Governmental Funds	144

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TABLE OF CONTENTS

STATISTICAL SECTION	Page

Revenue Capacity:

Net Limited Assessed Value and Full Cash Value of Taxable Property by Class	145

Net Full Cash Assessed Value of Taxable Property by Class	146

Property Tax Assessment Ratios	147

Direct and Overlapping Property Tax Rates	148

Principal Property Taxpayers	149

Property Tax Levies and Collections	150

Debt Capacity:

Outstanding Debt by Type	151

Direct and Overlapping Governmental Activities Debt	152

Direct and Overlapping General Bonded Debt Ratios	152

Legal Debt Margin Information	153

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics	154

Principal Employers	155

Operating Information:

Full-Time Equivalent District Employees by Type	156

Operating Statistics	158

Capital Assets Information	159

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INTRODUCTORY SECTION

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Tanque Verde Unified School District #13 2300N. Tanque Verde Loop Rd., Bldg. 1
Tucson, Arizona 85749

Phone: 520.749.5751▪ Fax: 520.749.5400 ▪ www.tanqueverdeschools.org

January 26, 2017

Citizens and Governing Board
Tanque Verde Unified School District No. 13 2300 N. Tanque Verde Loop Road, Bldg. #1 Tucson, Arizona 85749-8524

State law mandates that school districts required to undergo an annual single audit publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Tanque Verde Unified School District No. 13 (District) for the fiscal year ended June 30, 2016.

This report consists of management’s representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the District has established a comprehensive internal control framework that is designed both to protect the District’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the District’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The District’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the District’s financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

District Administration: Kimberly C. Sharp, Superintendent; Adam Hamm, Business Manager Governing Board: Carlos Ruiz, President; Members: Steven Auslander, Susan Fry, Jeffrey Neff

Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately following the report of the independent auditors.

PROFILE OF THE DISTRICT

The District is one of 18 public school districts located in Pima County, Arizona. It provides a program of public education from preschool through grade 12, with current enrollment of approximately 2,050 students. The average age of the District’s buildings is 21 years.

The District’s Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses.

The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools. The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls.

The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District 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 of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.

The District is located entirely in Pima County on the far east side of Tucson. The District is bounded on the north and east borders by the Coronado National Forest and by the Saguaro National Park as well as the Tucson Unified School District to the west and Vail School District to the south. The primary assessed valuation increased 2.75% during the 2015-16 school year. The assessed valuation places Tanque Verde in the middle of the other school districts in Pima County. However, the total primary and secondary school tax rate is among the lowest of the districts in the Tucson area. There are a few commercial operations within the District, including several plant nurseries, a golf country club, an internationally known resort, utility substations and a few retail stores. The District is mainly a quiet low density “bedroomcommunity” with residents being in a retired status, or working in professional occupations in the Tucson area for IBM, the University of Arizona, or Raytheon.

Each year the District focuses on state and national trends and possible changes in the education industry. The District continues to be involved in training and developing strategies for the new Arizona Evaluation Framework for Teachers and Administrators. This will partially base evaluation on student achievement.

District professional development activities include the ongoing focus on Marzano instructional strategies. These are research-based strategies which have been shown to improve student achievement. Teachers continue to focus their efforts on these strategies.

The District has high scholastic ratings, and is recognized as a leading school district in the state of Arizona. Students are offered a viable curriculum throughout the District, and recent employment of newly hired teachers has prompted the District to review and document the current curriculum, and to formalize how curriculum is accessed throughout the District. The District is committed to documenting curriculum through the retention of a Curriculum Consultant, with the goal of making the curriculum easily accessible to all teachers in the District.

The character education program known as Capturing Kids’ Hearts continues to be used as a guide for employees in their interactions with one another and with students. The tools enable the school to look at each child’s needs and provide necessary instruction and intervention to address learning deficits and promote academic strengths. Use of these tools continues to enable teachers to “inform instruction” which is required for improvement of academic achievement in a school environment where respect and dignity are cultural norms. Employees serve as “champions” at the Tanque Verde Elementary School, Agua Caliente Elementary School, and at Emily Gray Junior High School. These “champions” work with staff members to ensure the continued implementation of this dynamic character education initiative. The character education program initiative was introduced to the Agua Caliente Elementary School staff members during professional development sessions during summer 2016.

Tanque Verde Unified School District student test scores continue to far exceed both the state and national norms and are among the highest in the Tucson area as well as the State of Arizona. The District administrators and board members continue to be active in the Pima County Collaborative, a group composed of school board members and administrators from each district in Pima County. The major goal of the collaborative is to help formulate legislation that affects education in the State of Arizona and to make positive contacts with our legislators to that end.

Tanque Verde Unified School District is also proud of its athletic programs. The District strives to ensure that every student plays so that all interested can have a full experience in the programs that are offered. The District is delighted to have added a stadium to our High School during the 2015-16 school year in order to complete the traditional high school experience for our students, staff and community. The stadium was one of the first in the state of Arizona in a public school setting to offer top-of-the-line LED field lights to ensure games were properly illuminated while adhering to the Dark Sky Commitments of the greater Tucson area. This has garnered more participation in all realms from the sports themselves to higher attendances at our games and events.

Lastly, the District continues its membership in the Pima County Joint Technological Education District (JTED). Through JTED, the District offers its students enhanced career and technical education opportunities in such fields as computer technology, drafting and design, graphic communications, health care, and agri-science. Previously, a computer lab and a greenhouse were added as part of the curriculum resources.

Enrollment in this program exceeds 100 students and continued program offerings will enable our students to receive college credit by successfully completing the required course work. The JTED academic offerings at TVHS have been bolstered with an expansion of the veterinary science program and the expansion of an engineering/precision manufacturing program.

The online digital learning program at the high school continues to be highly successful, and during its initial years of implementation, continues to provide students with an opportunity to study and learn at their own pace. This program will continue into the next school year with closely defined guidelines and a detailed budgetary allowance.

The annual expenditure budget serves as the foundation for the District’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual expenditure budget approved by the District’s Governing Board.

The expenditure budget is prepared by fund for all Governmental Funds, and includes function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The legal level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the individual fund level for all funds. Funds that are not required to legally adopt a budget may have overexpenditures of budgeted funds. The budget for these funds is simply an estimate and does not prevent the District from exceeding the budget as long as the necessary revenue is earned. The District is not required to prepare an annual budget of revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the District’s ability to expend monies.

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the District operates.

Local Economy. The economy of the District is centered on Pima County, which has a population of nearly 1.0 million. The City of Tucson encompasses approximately 226 square miles. Principal economic activities within the District include manufacturing, services, government, education, and tourism. Some of Tucson’s largest employers include the following: Davis Monthan Air Force Base, the University of Arizona, and the Raytheon Missile Systems. Tucson is home to one of the world’s largest gem, mineral, and fossil shows, and the International Mariachi Festival.

The District consists of two elementary schools, one junior high school, and one high school. A private preschool is located on the campus of one elementary school, and preschool students with special needs receive services at this site. Support facilities include District administrative offices, maintenance facilities, and a transportation facility. All campuses and facilities are maintained in a serviceable condition that meets local code and safety standards.

Long-term Financial Planning. In the November 2014 election, District voters approved the continuance of a 15% Maintenance and Operations override (continuation of 10% override and 5% special programs override). This was used primarily to fund teacher salaries, to maintain class sizes, to support educational programs and to continue student support services. The previous elections (November 2011 and again in 2012) did not result in District voters approving a new Special Programs Override. In May 2014, a School Board Advisory Committee, Tanque Verde On Target (TOT) was implemented to determine the feasibility of the continuance of a school district maintenance and operations override in November 2014. This 20-member Board Advisory Committee unanimously recommended that the TVUSD Board of Education call for the continuance of a 15% Maintenance and Operations override (continuation of 10% override and 5% special programs override) election for November 14, 2014. With the continued support of the TOT committee and additional local support the override passed and is projected to raise $1.5 million.

The District continues to save an estimated $150,000 annually in electricity costs and will be for the next 22 years. This was the initiative in conjunction with the Tucson Electric Power Company’s Energy Rebate Program; a solar company completed a $5.0 million lease purchase solar project in 2012 on the District’s campuses. The project was 100% paid for by the solar company.

With the prior sale of general obligation bonds in the principal amount not to exceed $14,000,000 in 2009, and the Arizona School Facilities Board award in fiscal year 2009-10, the District was able to make substantial additions and upgrades to its facilities. We built the Emily Gray Junior High School, added building upgrades at the three other school sites, and also added approximately 21,000 square feet of new classroom space at Tanque Verde High School. Finally, in fiscal year 2015-16, the District was awarded approximately $850,000 in federal and state grants, and received $807,460 in revenues under Proposition 301 funding, which primarily goes towards increasing teacher salaries.

Student enrollment continues to increase, albeit slightly, as students outside of the school district open-enroll in our schools. Tanque Verde is an A rated school district as determined by the Arizona Department of Education. With the start of the new school year 2015-16, the District enrollment has reached 2,050 students. The maximum student capacity is approximately 2,100, and this will likely be reached next year.

District administrators will continue to be active in the Pima County Collaborative which is composed of school board members and administrators from each district in Pima County. Active participation in the Southern Arizona School Business Officials, Southern Arizona School Personnel Administrators, Southern Arizona Professional Development, Southern Arizona Special Education Administrators, and Council for Exceptional Students, organizations will allow District administrators to meet with their respective professional groups to share training, interests, and concerns.

District Plans. The District plans to document and assess curriculum throughout the District, and review curriculum delivery methods with an emphasis on 21st Century Learning. This initiative will be continued with the intended outcome of documenting a comprehensive curriculum, with an emphasis on the core subjects of English Language Arts and Mathematics. There will be a clear curriculum map, aligned to standards and appropriate for systemic deployment.

The District has successfully implemented a new teacher base salary to $32,300 at minimum, in order to attract and retain quality teachers. In addition, the District plans on implementing a 2% increase to its classified staff during the 2016-17 school year. The District also has plans to bolster support in professional development and technology within the same school year.

The District is researching the feasibility of opening a District preschool within the boundaries of the District, with a tentative implementation date to correlate with the start of school in school year 2017-18.

AWARDS AND ACKNOWLEDGMENT

Awards.	The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2015. This was the twenty-second consecutive year that the District has received this prestigious award. In addition, the Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its comprehensive annual financial report for the fiscal year ended June 30, 2015. In order to be awarded these certificates, the District published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements.

These certificates are valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the programs’ requirements and we are submitting it to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2016 certificates.

Acknowledgments. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the business office. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report.

In closing, without the leadership and support of the Governing Board of the District, preparation of this report would not have been possible.

Respectfully submitted,

Kimberly C. Sharp Superintendent

Adam Hamm Business Manager

		

The Certificate of Excellence in Financial Reporting Award is presented to

Tanque Verde Unified School District No. 13

for its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2015.

The CAFR has been reviewed and met or exceeded ASBO International’s Certificate of Excellence standards.

Brenda R. Burkett, CPA, CSBA, SFO	John D. Musso, CAE, RSBA President                                                                                     Executive Director

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Peter Livingston, President

Carlos Ruiz, Clerk

Steven Auslander, Member

Jeffrey M. Neff, Member

Susan Fry, Member

ADMINISTRATIVE STAFF

Kimberly C. Sharp Superintendent

Adam Hamm Business Manager

FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT

Governing Board
Tanque Verde Unified School District No. 13

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Tanque Verde Unified School District No. 13 (District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
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 from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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, and the aggregate remaining fund information of the Tanque Verde Unified School District No. 13, as of June 30, 2016, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principle
As described in Note 1, the District implemented the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, for the year ended June 30, 2016, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, and net pension liability information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The Introductory Section, Combining and Individual Fund Financial Statements and Schedules, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Fund Financial Statements and Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated January 26, 2017, on our consideration of Tanque Verde Unified School District No. 13’s internal control over financial reporting andon our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Tanque Verde Unified School District No. 13’s internal control over financial reporting and compliance.

Heinfeld, Meech & Co., P.C. Tucson, Arizona
January 26, 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information)

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

As management of the Tanque Verde Unified School District No. 13 (District), we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2016. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report.

FINANCIAL HIGHLIGHTS

	The District’s total net position of governmental activities decreased $827,580 which represents a 35 percent decrease from the prior fiscal year primarily due to pension expenses and increases in insurance premiums and classified salaries.

	 General revenues accounted for $14.1 million in revenue, or 85 percent of all current fiscal year revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $2.5 million or 15 percent of total current fiscal year revenues.

	The District had approximately $17.4 million in expenses related to governmental activities, an increase of two percent from the prior fiscal year primarily due to pension expenses and increases in insurance premiums and classified salaries.

	 Among major funds, the General Fund had $12.0 million in current fiscal year revenues, which primarily consisted of state aid and property taxes, and $12.5 million in expenditures. The General Fund’s fund balance decrease from $2.3 million at the prior fiscal year end to $1.8 million at the end of the current fiscal year was primarily due to an increase in insurance premiums and a decrease in state aid.

	The Special Education Grants Fund had $323,881 in revenues and total expenditures were $323,881.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the District’s basic financial statements. The District’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements.	The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

OVERVIEW OF FINANCIAL STATEMENTS

The statement of net position presents information on all of the District’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).

The government-wide financial statements outline functions of the District that are principally supported by property taxes and intergovernmental revenues. The governmental activities of the District include instruction, support services, operation and maintenance of plant services, student transportation services, operation of non-instructional services, and interest on long-term debt.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use the modified accrual basis of accounting and focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

OVERVIEW OF FINANCIAL STATEMENTS

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Special Education Grants, and Debt Service Funds, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements and schedules.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District’s own programs. Due to their custodial nature, the fiduciary funds do not have a measurement focus.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the District’s budget process and pension plan. The District adopts an annual expenditure budget for all governmental funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has been provided for the General Fund and major special revenue fund as required supplementary information. Schedules for the pension plan have been provided as required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows exceeded liabilities and deferred inflows by $1.5 million at the current fiscal year end.

The largest portion of the District’s positive net position reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, and vehicles, furniture and equipment), less any related outstanding debt used to acquire those assets. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District’s investment in its capital assets is reported net of related outstanding debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the District’s net position represents resources that are subject to external restrictions on how they may be used.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2016 and June 30, 2015. The prior year table below has been restated for the effects of Note 12.

Current assets Capital assets, net
Total assets

Deferred outflows

Current liabilities Long-term liabilities
Total liabilities

Deferred inflows

Net position:
Net investment in capital assets Restricted
Unrestricted
Total net position

As of June 30, 2016
$	 4,021,905 24,641,852 28,663,757

2,010,559

617,521 27,115,636 27,733,157

1,393,107

13,018,852 1,482,005
(12,952,805) $	1,548,052

As of June 30, 2015
(as restated) $ 4,782,747
25,021,747 29,804,494

2,811,172

917,866 26,928,714 27,846,580

2,393,454

13,236,767 1,526,532
(12,387,667) $ 2,375,632

The District’s financial position is the product of several financial transactions including the net result of activities, the payment of debt, the acquisition of capital assets, and the depreciation of capital assets.

The following are significant current year transactions that had an impact on the Statement of Net Position.

	The addition of $816,987 in accumulated depreciation through current year depreciation expense.

	The change of $451,586 in pension liabilities.

	The principal retirement of $575,000 in bonds payable.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Changes in net position. The District’s total revenues for the current fiscal year were $16.6 million. The total cost of all programs and services was $17.4 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2016 and June 30, 2015.

Revenues: Program revenues:
Charges for services
Operating grants and contributions Capital grants and contributions
General revenues: Property taxes Investment income Unrestricted county aid Unrestricted state aid
Total revenues Expenses:
Instruction
Support services – students and staff Support services – administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total expenses
Changes in net position Net position, beginning
Net effect of prior period adjustments Net position, beginning restated

Fiscal Year Ended
June 30, 2016

$      1,595,714 846,658 95,214

7,309,835 16,399 402,109 6,323,234 16,589,163

10,021,236 1,584,374 2,234,179 1,535,988 501,094 873,531 666,341 17,416,743
(827,580) 3,257,735
(882,103) 2,375,632

Fiscal Year Ended
June 30, 2015

$       1,766,129 786,528 48,736

6,292,584 11,058 466,615 6,569,926
15,941,576

9,957,570 1,243,850 2,069,735 1,639,384 704,817 852,547 661,261 17,129,164
(1,187,588) 4,445,323

Net position, ending	$	1,548,052	$	3,257,735

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Expenses

$12

Millions
$8

$4

$0

FY2015-16

FY2014-15

The following are significant current year transactions that have had an impact on the change in net position.

	Property tax revenues increased $1.0 million due to increases in the assessed valuation of taxable property in the District.
	Unrestricted state aid decreased $246,692 due to a reduction in state aid.
	The $340,524 increase in expenses for support services – students and staff was due to increases in employee compensation during the year.

The following table presents the cost of the District’s major functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and District’s taxpayers by each of these functions.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Year Ended June 30, 2016	Year Ended June 30, 2015

Total Expenses

Net (Expense)/ Revenue

Total Expenses

Net (Expense)/ Revenue

Instruction
Support services – students and staff Support services – administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt

$ 10,021,236 1,584,374 2,234,179 1,535,988 501,094 873,531 666,341

$     (8,832,115) (1,487,849) (2,234,179) (1,526,669) (501,094)
264,961 (562,212)

$ 9,957,570 1,243,850 2,069,735 1,639,384 704,817 852,547 661,261

$ (8,836,711) (1,226,083) (2,069,735) (1,600,747) (704,817)
364,443 (454,121)

Total	$ 17,416,743	$ (14,879,157)	$ 17,129,164	$ (14,527,771)

	The cost of all governmental activities this year was $17.4 million.

	Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $2.5 million.

	Net cost of governmental activities of $14.9 million was financed by general revenues, which are made up of primarily property taxes of $7.3 million and unrestricted state aid of $6.3 million.

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year.

The financial performance of the District as a whole is reflected in its governmental funds. As the District completed the year, its governmental funds reported a combined fund balance of $3.2 million, a decrease of $554,925.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

The General Fund comprises 55 percent of the total fund balance. The entire $1.8 million of the General Fund’s fund balance is unassigned.

The General Fund is the principal operating fund of the District. The fund balance decreased $551,892 in the General Fund to $1.8 million as of fiscal year end. General Fund revenues decreased $249,496 as a result of decreases in state equalization funding due to a reduction in state aid. General Fund expenditures increased $143,997 as a result of increases in employee compensation during the year.

The Special Education Grants Fund had $323,881 in revenues and total expenditures were $323,881.

BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised the General Fund annual expenditure budget to account for student growth. The difference between the original budget and the final amended budget was a $188,212 increase, or two percent.

Significant variances for the final amended budget and actual revenues resulted from the District not being required by the State of Arizona to prepare a revenue budget. A schedule showing the original and final budget amounts compared to the District’s actual financial activity for the General Fund is provided in this report as required supplementary information. The significant variances are summarized as follows:

	 The favorable variance of $383,905 in instruction was a result of the District budgeting for potential expenditures relating to the retirement and replacement of senior staff.

	The unfavorable variance of $335,864 in operation and maintenance of plant services was a result of a reduction in state aid for maintenance and operation costs.

	The favorable variance of $273,399 in student transportation services was a result of the District budgeting for potential school bus replacements and increased usage of District vehicles.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. As of year end, the District had invested $37.8 million in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment. This amount represents a net increase prior to depreciation of $425,338 from the prior fiscal year. Total depreciation expense for the current fiscal year was $816,987.

The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2016 and June 30, 2015.

Capital assets – non-depreciable Capital assets – depreciable, net
Total

As of June 30, 2016
$         679,272 23,962,580
$	24,641,852

As of June 30, 2015 $	679,272
24,342,475 $ 25,021,747

Additional information on the District’s capital assets can be found in Note 6.

Debt Administration. At year end, the District had $12.4 million in long-term debt outstanding, $716,633 due within one year. Long-term debt decreased by $217,626 from the prior fiscal year.

The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds (up to 30 percent of the total net full cash assessed valuation) and the statutory debt limit on Class B bonds (the greater of 20 percent of the total net full cash assessed valuation or $1,500 per student). The current total debt limitation for the District is $52.8 million and the Class B debt limit is $35.2 million, which are more than the District’s total outstanding general obligation and Class B debt, respectively.

Additional information on the District’s long-term liabilities can be found in Notes 7 through 9.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2016

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

Many factors were considered by the District’s administration during the process of developing the fiscal year 2016-17 General Fund budget. Among them:

	Fiscal year 2015-16 budget balance carry forward. 	District student population.
	Employee salary and benefit rates.

Also considered in the development of the budget is the local economy and inflation of the surrounding area.

Expenditures for the adopted budget in the General Fund increased five percent to $13.1 million in fiscal year 2016-17. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2016-17 budget.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Business Office; Tanque Verde Unified School District No. 13; 2300 North Tanque Verde Loop, Building #1; Tucson, Arizona 85749.

BASIC FINANCIAL STATEMENTS

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GOVERNMENT-WIDE FINANCIAL STATEMENTS

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF NET POSITION JUNE 30, 2016

ASSETS Current assets:
Cash and investments Property taxes receivable Accounts receivable
Due from governmental entities Total current assets

Noncurrent assets:
Capital assets not being depreciated
Capital assets, net of accumulated depreciation Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES Pension plan items

LIABILITIES Current liabilities:
Accounts payable
Accrued payroll and employee benefits Compensated absences payable Unearned revenues
Obligations under capital leases Bonds payable
Total current liabilities

Noncurrent liabilities:
Non-current portion of long-term obligations Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES Pension plan items

Governmental Activities

$         1,583,976 245,272
55,285 2,137,372 4,021,905

679,272 23,962,580 24,641,852 28,663,757

2,010,559

87,909 526,391 105,492 3,221 91,633 625,000 1,439,646

26,293,511 26,293,511 27,733,157

1,393,107

NET POSITION
Net investment in capital assets Restricted for:
Teacher compensation Federal and state projects Food service
Community school Auxiliary operations Other local initiatives Debt service
Capital outlay Unrestricted
Total net position

13,018,852

40,103 254 54,256 140,400 361,730 52,976 811,536 20,750
(12,952,805) $	1,548,052

The notes to the basic financial statements are an integral part of this statement.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016

Net (Expense) Revenue and Changes in Net
Program Revenues	Position

Functions/Programs Governmental activities:
Instruction	$ Support services - students and staff
Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total governmental activities	$

Operating	Capital Grants
Charges for	Grants and	and	Governmental Expenses	Services            Contributions       Contributions           Activities

10,021,236 $            659,322 $            434,585 $              95,214 $      (8,832,115) 1,584,374                                               96,525                                       (1,487,849) 2,234,179                                                                                                 (2,234,179) 1,535,988                    9,319                                                                    (1,526,669) 501,094                                                                                                    (501,094) 873,531                927,073                211,419                                             264,961 666,341                                             104,129                                          (562,212) 17,416,743 $         1,595,714 $            846,658 $              95,214         (14,879,157)

General revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid
Total general revenues

Changes in net position

Net position, beginning of year, as restated

6,026,983 1,135,210 147,642 16,399 402,109 6,323,234 14,051,577

(827,580)

2,375,632

Net position, end of year	$	1,548,052

The notes to the basic financial statements are an integral part of this statement.

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FUND FINANCIAL STATEMENTS

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2016

ASSETS
Cash and investments Property taxes receivable Accounts receivable
Due from governmental entities Due from other funds
Total assets

General

$            274,282 206,836
55,285 1,286,648 649,362
$	2,472,413

Special Education Grants

$

318,217

$	318,217

Debt Service

$            673,517 33,890

104,129

$	811,536

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Accrued payroll and employee benefits Unearned revenues
Total liabilities

$	56,125

466,188

522,313

$                                    $ 306,701
11,516

318,217

Deferred inflows of resources: Unavailable revenues - property taxes

Fund balances (deficits): Restricted
Unassigned
Total fund balances

185,731

1,764,369 1,764,369

30,721

780,815

780,815

Total liabilities, deferred inflows of resources
and fund balances	$	2,472,413	$	318,217	$	811,536

The notes to the basic financial statements are an integral part of this statement.

Non-Major Governmental Funds

Total Governmental Funds

$            636,177 4,546

428,378

$	1,069,101

$              31,784 342,661
48,687 3,221 426,353

$         1,583,976 245,272
55,285 2,137,372 649,362
$	4,671,267

$	 87,909 649,362 526,391
3,221 1,266,883

4,124

666,345 (27,721) 638,624

220,576

1,447,160 1,736,648 3,183,808

$	1,069,101	$	4,671,267

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION JUNE 30, 2016

Total governmental fund balances	$	3,183,808

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Governmental capital assets	$ 37,790,567

Less accumulated depreciation	(13,148,715)	24,641,852

Property taxes receivable are not available to pay for current period expenditures and, therefore, are reported as unavailable
revenues in the funds.	220,576

Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds.

Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions

2,010,559
(1,393,107)	617,452

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.

Compensated absences payable Obligations under capital leases Net pension liability
Bonds payable

(527,457) (1,239,477) (14,138,702)
(11,210,000)	(27,115,636)

Net position of governmental activities	$	1,548,052

The notes to the basic financial statements are an integral part of this statement.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
State aid and grants
Federal aid, grants and reimbursements Total revenues

General

$	 620,771 5,952,976 5,393,224

11,966,971

Special Education Grants

$

323,881 323,881

Debt Service

$                3,805 1,118,913

104,129 1,226,847

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

7,292,745 1,232,787 1,989,721 1,496,592 412,700 2,282 9,330

55,626 27,080 12,518,863

251,988 71,893

323,881

575,000 639,261 1,214,261

Excess (deficiency) of revenues over expenditures	(551,892)	12,586

Other financing sources (uses): Capital lease agreements
Total other financing sources (uses):

Changes in fund balances

Fund balances, beginning of year

(551,892)

2,316,261

12,586

768,229

Fund balances, end of year	$	1,764,369	$	$	780,815

The notes to the basic financial statements are an integral part of this statement.

Non-Major Governmental Funds

Total Governmental Funds

$         1,469,705 143,518 963,677 400,136 2,977,036

$         2,094,281 7,215,407 6,356,901 828,146 16,494,735

1,534,633 242,844 119,581 2,321
40 837,233 669,003

3,405,655

(428,619)

413,000 413,000

(15,619)

654,243

9,079,366 1,547,524 2,109,302 1,498,913 412,740 839,515 678,333

630,626 666,341 17,462,660

(967,925)

413,000 413,000

(554,925)

3,738,733

$	638,624	$	3,183,808

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016

Changes in fund balances - total governmental funds	$	(554,925)

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense.

Expenditures for capitalized assets Less current year depreciation

$	479,189
(816,987)	(337,798)

Capital lease agreements provide current financial resources to governmental funds, but the issuance increases long term liabilities in the Statement of Net Position.

Some property tax revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

(413,000)

94,428

Repayments of long-term debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.

Capital lease principal retirement Bond principal retirement

55,626
575,000	630,626

they are reported as deferred outflows of resources in the Statement of Net Position. The change in the net pension liability, adjusted for deferred
pension items, is reported as pension expense in the Statement of Activities.

Current year pension contributions Pension expense

944,678
(1,196,530)	(251,852)

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Loss on disposal of assets Compensated absences

(42,097)
47,038	4,941

Changes in net position in governmental activities	$	(827,580)

The notes to the basic financial statements are an integral part of this statement.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2016

ASSETS
Cash and investments Total assets

LIABILITIES
Deposits held for others Due to student groups
Total liabilities

Agency

$            153,329 $            153,329

$                4,792 148,537
$	153,329

The notes to the basic financial statements are an integral part of this statement.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Tanque Verde Unified School District No. 13 (District) have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

During the year ended June 30, 2016, the District implemented the provisions of GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements and establishes a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also enhances accountability and transparency through revised note disclosures.

The more significant of the District’s accounting policies are described below.

A. Reporting Entity

The Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.). Management of the District is independent of other state or local governments. The County Treasurer collects taxes for the District, but exercises no control over its expenditures/expenses.

The membership of the Governing Board consists of five members elected by the public. Under existing statutes, the Governing Board’s duties and powers include, but are not limited to, the acquisition, maintenance and disposition of school property; the development and adoption of a school program; and the establishment, organization and operation of schools.

The Board also has broad financial responsibilities, including the approval of the annual budget, and the establishment of a system of accounting and budgetary controls.

The financial reporting entity consists of a primary government and its component units. A component unit is a legally separate entity that must be included in the reporting entity in conformity with generally accepted accounting principles. The District 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 of other state or local governments. Furthermore, there are no component units combined with the District for financial statement presentation purposes, and the District is not included in any other governmental reporting entity. Consequently, the District’s financial statements include only the funds of those organizational entities for which its elected governing board is financially accountable. The District’s major operations include education, student transportation, construction and maintenance of District facilities, and food services.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) present financial information about the District as a whole. The reported information includes all of the nonfiduciary activities of the District. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the District. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, unrestricted state and county aid, and other items not included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements.	Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

Government-Wide Financial Statements – The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. As a general rule, the effect of internal activity has been eliminated from the government-wide financial statements; however, the effects of interfund services provided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund Financial Statements – Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due.

Property taxes, federal, state, and county aid, tuition, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Food services and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Unearned revenues arise when resources are received by the District before it has legal claim to them, as when grant monies are received prior to meeting all eligibility requirements imposed by the provider.

Delinquent property taxes and other receivables that will not be collected within the available period have been reported as unavailable revenues on the governmental fund financial statements.

The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type.

The District reports the following major governmental funds:

General Fund – The General Fund is the District’s primary operating fund. It accounts for all resources used to finance District maintenance and operation except those required to be accounted for in other funds. The General Fund includes the District’s Maintenance and Operation Fund as well as certain activities budgeted in separate funds in accordance with A.R.S. These funds are maintained as separate funds for purposes but do not meet the criteria for separate reporting in the financial statements.

Special Education Grants Fund – The Special Education Grants Fund accounts for supplemental financial assistance received to provide a free, appropriate public education to disabled children.

Debt Service Fund – The Debt Service Fund accounts for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Additionally, the District reports the following fund type:

Fiduciary Funds – The Fiduciary Fund is an Agency Fund which account for resources held by the District on behalf of others. This fund type includes the Student Activities Fund, which accounts for monies raised by students to finance student clubs and organizations held by the District as an agent. In addition, funds that account for employee withholdings before the monies are remitted to the appropriate entities are included in the Agency Funds.

The agency funds are custodial in nature and do not have a measurement focus and are reported on the accrual basis of accounting. The agency funds are reported by fund type.

D. Cash and Investments

A.R.S. require the District to deposit all cash with the County Treasurer, except as discussed below. Cash with the County Treasurer is pooled for investment purposes, except for cash of the Debt Service and Bond Building Funds which may be invested separately. Interest earned from investments purchased with pooled monies is allocated to each of the District’s funds based on their average balances. All investments are stated at fair value.

Statute authorizes the District to separately invest monies of the Bond Building and Debt Service Funds in the State Treasurer’s investment pools; obligations issued and guaranteed by the United States or any of its agencies or instrumentalities; specified state and local government bonds and notes; and interest bearing savings accounts or certificates of deposit.

Statute authorizes the District to deposit monies of the Auxiliary Operations and Student Activities Funds in bank accounts. Monies in these funds may also be invested. In addition, statute authorizes the District to maintain various bank accounts such as clearing accounts to temporarily deposit receipts before they are transmitted to the County Treasurer; revolving accounts to pay minor disbursements; and withholdings accounts for taxes and employee insurance programs. Some of these bank accounts may be interest bearing.

Statute does not include any requirements for credit risk, concentration of credit risk, interest rate risk, or foreign currency risk. Statute requires collateral for deposits of Bond Building and Debt Service Funds monies in interest bearing savings accounts and certificates of deposit at 101 percent of all deposits not covered by federal depository insurance.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Arizona statute requires a pooled collateral program for public deposits and a Statewide Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of the pooled collateral program is to ensure that governmental entities’ public deposits placed in participating depositories are secured with collateral of 102 percent of the public deposits, less any applicable deposit insurance. An eligible depository may not retain or accept any public deposit unless it has deposited the required collateral with a qualified escrow agent or the Administrator. The Administrator manages the pooled collateral program, including reporting on each depository’s compliance with the program.

E. Investment Income

Investment income is composed of interest, dividends, and net changes in the fair value of applicable investments. Investment income is included in other local revenue in the fund financial statements.

F. Receivables and Payables

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Interfund balances between governmental funds are eliminated on the Statement of Net Position. All receivables, including property taxes receivable, are shown net of an allowance for uncollectibles.

G. Property Tax Calendar

The County Treasurer is responsible for collecting property taxes for all governmental entities within the county. The county levies real and personal property taxes on or before the third Monday in August, that become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May.

Pursuant to A.R.S., a lien against assessed real and personal property attaches on the first day of January preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does not arise.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

H. Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements and as expenditures when purchased in the fund financial statements.

I. Capital Assets

Capital assets, which include land and improvements; buildings and improvements; vehicles, furniture, and equipment; and construction in progress, are reported in the government-wide financial statements.

Capital assets are defined by the District as assets with an initial, individual cost in excess of $5,000, and an estimated useful life of more than one year. Such assets are recorded at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Land improvements Buildings and improvements
Vehicles, furniture and equipment

5 - 50 years 5 - 50 years 5 - 40 years

J. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

K. Compensated Absences

The District's employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. All employees continuously employed by the District for more than three years may accrue sick leave up to a maximum of 180 days. All full-time classified employees earn vacation at rates depending on length of service; however, accumulated vacation as of June 30 cannot exceed 40 days at the end of any fiscal year. The current and long-term liabilities, including related benefits, for accumulated vacation and sick leave are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations and retirements. Generally, resources from the General Fund are used to pay for compensated absences.

L. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Long-term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities on the statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Deferred amounts on refunding result from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

N. Interfund Activity

Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund financial statements are reported as other financing sources/uses in governmental funds.

O. Net Position Flow Assumption

In the government-wide financial statements the District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted amounts are available.

P. Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on the use of those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications.

Nonspendable. The nonspendable fund balance classification includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact.

Restricted. Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Committed. The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of the Governing Board. Those committed amounts cannot be used for any other purpose unless the Governing Board removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District does not have a formal policy or procedures for the utilization of committed fund balance, accordingly, no committed fund balance amounts are reported.

Assigned. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by the Governing Board or a management official delegated that authority by the formal Governing Board action. The District does not have a formal policy for the utilization of assigned fund balance, accordingly, no assigned fund balance amounts are reported.

Unassigned. Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The District applies restricted resources first when outlays are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 2 – FUND BALANCE CLASSIFICATIONS

The table below provides detail of the major components of the District’s fund balance classifications at year end.

Fund Balances: Restricted:
Debt service Capital projects
Teacher compensation Federal and state projects Auxiliary operations Food service
Community school Other purposes
Unassigned
Total fund balances

General Fund

$

1,764,369 $	1,764,369

Non-Major Debt Service	Governmental
Fund	Funds

$	780,815 $
16,626 40,103 254 361,730 54,256 140,400 52,976
(27,721) $	780,815 $	638,624

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balance – At year end, the Classroom Site and Emergency Deficiencies Correction Funds, non-major governmental funds, reported deficits of $26,824 and $897 in fund balance, respectively.

The deficits arose because of operations during the year. Additional revenues received in fiscal year 2016-17 are expected to eliminate the deficits.

Excess Expenditures Over Budget – At year end, the District had expenditures in funds that exceeded the budget, however, this does not constitute a violation of any legal provisions.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 4 – CASH AND INVESTMENTS

Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank failure the District’s deposits may not be returned to the District. The District does not have a deposit policy for custodial credit risk. At year end, the carrying amount of the District’s deposits was $1,068,085 and the bank balance was $1,074,698. At year end, $40,568 was uninsured and uncollateralized.

Fair Value Measurements. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

	Level 1 inputs are quoted prices in active markets for identical assets 	Level 2 inputs are significant other observable inputs
	Level 3 inputs are significant unobservable inputs

The County Treasurer’s pool is an external investment pool with no regulatory oversight. The pool is not required to register (and is not registered) with the Securities and Exchange Commission. The fair value of each participant’s position in the County Treasurer investment pool approximates the value of the participant’s shares in the pool and the participants’ shares are not identified with specific investments. Participants in the pool are not required to categorize the value of shares in accordance with the fair value hierarchy.

Average Maturities County Treasurer’s investment pool	203 days

Fair Value $     669,220

At year end, the District’s investments consisted of the following:

Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 4 – CASH AND INVESTMENTS

Credit Risk. The District has no investment policy that would further limit its investment choices. As of year end, the District’s investment in the County Treasurer’s investment pools did not receive a credit quality rating from a national rating agency.

Custodial Credit Risk – Investments. The District’s investment in the County Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the District’s portion is not identified with specific investments and is not subject to custodial credit risk.

NOTE 5 – RECEIVABLES

Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presented separately in the financial statements with the exception of due from governmental entities. Due from governmental entities, net of allowance for uncollectibles, as of year end for the District’s individual major funds and non-major governmental funds in the aggregate were as follows:

Due from other governmental entities: Due from federal government
Due from state government Due from county government Due from other districts
Net due from governmental entities

Special	Non-Major General	Education       Debt Service Governmental
Fund	Grants Fund	Fund	Funds

$                       $        318,217 $        104,129 $        163,003 1,277,711                                                              100,375
8,937
165,000 $	1,286,648 $	318,217 $	104,129 $	428,378

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 6 – CAPITAL ASSETS

A summary of capital asset activity for the current fiscal year follows:

Governmental Activities
Capital assets, not being depreciated: Land
Total capital assets, not being depreciated

Beginning
Balance	Increase

$	679,272 $ 679,272

Decrease

$

Ending Balance

$        679,272 679,272

Capital assets, being depreciated: Land improvements
Buildings and improvements Vehicles, furniture and equipment
Total capital assets being depreciated Less accumulated depreciation for:
Land improvements Buildings and improvements
Vehicles, furniture and equipment Total accumulated depreciation

726,548 33,303,665 2,655,744 36,685,957

(398,202) (9,679,614) (2,265,666) (12,343,482)

439,500

39,689 479,189

(28,107) (685,100) (103,780) (816,987)

53,851

53,851

(11,754)

(11,754)

1,166,048 33,249,814 2,695,433 37,111,295

(426,309) (10,352,960) (2,369,446) (13,148,715)

Total capital assets, being depreciated, net Governmental activities capital assets, net

24,342,475
$ 25,021,747 $

(337,798) (337,798) $

42,097       23,962,580 42,097 $ 24,641,852

Depreciation expense was charged to governmental functions as follows:

Instruction
Support services – students and staff Support services – administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services
Total depreciation expense – governmental activities

$ 649,943 1,815 65,719 22,168 56,486 20,856
$ 816,987

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 7 – OBLIGATIONS UNDER LEASES

Capital Leases – The District has acquired stadium lighting and seating upgrades, utility management, and energy efficient equipment under the provisions of long-term lease agreements classified as capital leases. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. Revenues from the General Fund and Unrestricted Capital Outlay Fund, a non-major governmental fund, are used to pay the capital lease obligations. Amortization of assets recorded under capital leases is included with depreciation expense.

The assets acquired through capital leases that meet the District’s capitalization threshold are as follows:

Governmental Activities

Asset:
Building improvements	$ Less: Accumulated depreciation
Total	$

413,000 10,325 402,675

The future minimum lease obligations and the net present value of these minimum lease payments at year end were as follows:

Year Ending June 30:

2017 2018 2019 2020 2021 2022-26 2027-30
Total minimum lease payments

Less: amount representing interest

Governmental Activities
$           136,137 136,137 136,137 136,137 136,137 680,686 175,412 1,536,784

297,307

Present value of minimum lease payments	$

Due within one year	$

1,239,477

91,633

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 8 – GENERAL OBLIGATION BONDS PAYABLE

Bonds payable at year end consisted of the following general obligation bonds. The bonds are callable with interest payable semiannually. Property taxes from the Debt Service Fund are used to pay bonded debt. In addition, a portion of the District’s school improvement bonds are Qualified Build America Bonds (BABS). The District receives a direct subsidy payment from the United States of America for a portion of the interest due on the bonds.

Original Amount
Purpose	Issued

Interest Rates

Remaining Maturities

Outstanding Principal June 30, 2016

Due Within One Year

Governmental activities:
School Improvement Bonds, Build America, Series 2010 (Class B)
Total

$     11,785,000 4.453-6.073% 7/1/17-29 $ $

11,210,000 $ 11,210,000 $

625,000 625,000

Governmental Activities

Year ending June 30: 2017 2018 2019 2020 2021
2022-26 2027-29
Total

Principal
$       625,000 675,000 720,000 740,000 770,000 4,525,000 3,155,000
$ 11,210,000

Interest
$        600,640 570,953 537,639 501,511 463,010 1,613,785 289,188
$	4,576,726

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 9 – CHANGES IN LONG-TERM LIABILITIES

Long-term liability activity for the current fiscal year was as follows:

Beginning Balance
(as restated)	Additions	Reductions

Ending Balance

Due Within One Year

Governmental activities: General obligation bonds Obligations under capital leases Net pension liability Compensated absences payable Governmental activity long-
term liabilities

$11,785,000 $
882,103          413,000 13,687,116          451,586 574,495          163,633

$26,928,714 $ 1,028,219

$ 575,000 55,626

210,671

$ 841,297

$ 11,210,000 $ 1,239,477
14,138,702 527,457

$ 27,115,636 $

625,000 91,633

105,492

822,125

NOTE 10 – INTERFUND RECEIVABLES AND PAYABLES

At year end, interfund balances were as follows:

Due to/from other funds – At year end, the Special Education Grants Fund, a major governmental fund, and several non-major governmental funds had negative cash balances of $306,701 and $342,661 respectively, in the Treasurer’s pooled cash accounts. Negative cash on deposit with the County Treasurer was reduced by interfund borrowing with the General Fund. All interfund balances are expected to be paid within one year.

NOTE 11 – CONTINGENT LIABILITIES

Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial.

Lawsuits – The District is a party to a number of various types of lawsuits, many of which normally occur in governmental operations. The ultimate outcome of the actions is not determinable, however, District management believes that the outcome of these proceedings, either individually or in the aggregate, will not have a materially adverse effect on the accompanying financial statements.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 12 – PRIOR PERIOD ADJUSTMENT AND RECLASSIFICATIONS

The July 1, 2015, government-wide net position and fund balances do not agree to the prior year financial statements due to a correction of errors. The corrections are to properly recognize an existing capital lease and to reclassify revenues from a prior year.

Net position/fund balance,
June 30, 2015, as previously reported Capital lease obligation
Revenue reclassification
Net position/fund balance, July 1, 2015, as restated

Statement of Activities

$	3,257,735 (882,103)

$	2,375,632

Governmental Funds Auxiliary
Community	Operations Schools Fund           Fund

$	(77,370) $	448,140

173,962	(173,962)

$	96,592 $	274,178

NOTE 13 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

The District was unable to obtain general property and liability insurance at a cost it considered to be economically justifiable. Therefore, the District joined the Arizona School Risk Retention Trust, Inc. (ASRRT). ASRRT is a public entity risk pool currently operating as a common risk management and insurance program for school districts and community colleges in the State. The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.

The District joined the Arizona School Alliance for Workers’ Compensation, Inc. (Alliance) together with other school districts in the state for risks of loss related to workers’ compensation claims. The Alliance is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays quarterly premiums to the Alliance for its employee workers’ compensation coverage. The agreement provides that the Alliance will be self-sustaining through members’ premiums and will reinsure through commercial companies for claims in excess of specified amounts for each insured event.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 13 – RISK MANAGEMENT

The District’s employees have health and accident insurance coverage with the Arizona School Board Association Insurance Trust (ASBAIT). ASBAIT is a public entity risk pool currently operating as a common risk management and insurance program for school districts in the State. The District pays a monthly premium to ASBAIT for employees’ health and accident insurance coverage. The agreement provides that ASBAIT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of specified amounts.

The District continues to carry commercial insurance for employee dental and life coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Plan Description. District employees participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. ASRS is a component unit of the State of Arizona. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on the ASRS website at www.azasrs.gov.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Benefits Provided. The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:

Years of service and age required to receive benefit

Retirement Initial Membership Date:
Before July 1, 2011	On or After July 1, 2011 Sum of years and age equals 80     30 years age 55
10 years age 62	25 years age 60 5 years age 50*	10 years age 62 Any years age 65	5 years age 50*
Any years age 65

Final average salary is based on

Highest 36 months of last 120 months

Highest 60 months of last 120 months

Benefit percent per year of service

2.1% to 2.3%	2.1% to 2.3%

*With actuarially reduced benefits

Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earnings. Members with a membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Contributions. In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.47 percent (11.35 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the District was required by statute to contribute at the actuarially determined rate of 11.47 percent (10.85 percent for retirement, 0.50 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions to the pension plan for the year ended June 30, 2016 were $944,678.

In addition, the District was required by statute to contribute at the actuarially determined rate of 9.36 percent (9.17 for retirement, 0.13 percent for health insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked in positions that would typically be filled by an employee who contributes to ASRS.

The District’s contributions for the current and two preceding years for OPEB, all of which were equal to the required contributions, were as follows:

Health Benefit Supplement Fund

Long-Term Disability Fund

Year ending June 30:
2016	$ 2015
2014

43,534	$	10,448 49,430                10,054 48,617                19,447

Pension Liability. At June 30, 2016, the District reported a liability of $14.1 million for its proportionate share of the net pension liability of the ASRS. The net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2014, to the measurement date of June 30, 2015. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2015, the District’s proportion was 0.09 percent, which was a decrease of 0.002 from its proportion measured as of June 30, 2014.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended June 30, 2016, the District recognized pension expense of $1.2 million and reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual experience Net difference between projected and actual earnings on
pension plan investments
Changes in proportion and differences between contributions and proportionate share of contributions
Contributions subsequent to the measurement date Total

Deferred Outflows of Resources
$	385,815

680,066 944,678
$ 2,010,559

Deferred Inflows of Resources
$	740,882

453,114

199,111

$ 1,393,107

The deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30:
2017 2018 2019 2020

$	 132,570 (441,366) (345,523)
327,093

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension liability are as follows:

Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation
Permanent base increases Mortality rates

June 30, 2014 June 30, 2015 Entry age normal 8.0%
3.0-6.75% 3.0% Included
1994 GAM Scale BB

The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return.

The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Equity
Fixed income Real estate Multi-asset Commodities
Total

Target Allocation 58% 25% 10% 5%
2% 100%

Long-Term Expected Real Rate of Return
6.79% 3.70 4.25 3.41% 3.93

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2016

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Discount Rate. The discount rate used to measure the ASRS total pension liability was 8.0 percent, which is less than the long-term expected rate of return of 8.79 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 8.0 percent, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:

Proportionate share of the net pension liability

1% Decrease (7.0%)

$18,526,531

Current Discount Rate (8.0%)

$14,138,702

1% Increase (9.0%)

$11,131,601

Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.

REQUIRED SUPPLEMENTARY INFORMATION

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL
YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
State aid and grants Total revenues

Budgeted Amounts

Original	Final

$	$

Non-GAAP Actual

$            539,205 5,952,976 5,393,224 11,885,405

Variance with Final Budget Positive (Negative)

$            539,205 5,952,976 5,393,224 11,885,405

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Changes in fund balances

7,420,001 1,012,871 1,953,341 1,210,401 686,099 20,340

12,303,053

(12,303,053)

7,657,886 1,012,871 1,953,341 1,160,728 686,099 20,340

12,491,265

(12,491,265)

7,273,981 1,208,805 1,988,251 1,496,592 412,700 2,282
31

55,626 27,080 12,465,348

(579,943)

383,905 (195,934) (34,910) (335,864) 273,399 18,058 (31)

(55,626) (27,080) 25,917

11,911,322

Fund balances, beginning of year	2,185,600	2,185,600

Fund balances (deficits), end of year	$ (12,303,053)	$ (12,491,265)	$	1,605,657	$	14,096,922

See accompanying notes to this schedule.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL EDUCATION GRANTS YEAR ENDED JUNE 30, 2016

Revenues:
Federal aid, grants and reimbursements Total revenues

Budgeted Amounts

Original & Final

$

Actual

$            323,881 323,881

Variance with Final Budget Positive (Negative)

$            323,881 323,881

Expenditures: Current -
Instruction
Support services - students and staff Total expenditures

272,309 77,691 350,000

251,988                       20,321 71,893                         5,798 323,881                       26,119

Changes in fund balances	(350,000)	350,000

Fund balances, beginning of year

Fund balances (deficits), end of year	$	(350,000)	$	$	350,000

See accompanying notes to this schedule.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ARIZONA STATE RETIREMENT SYSTEM LAST TWO FISCAL YEARS

2016	2015	2014	2013

District's proportion of the net pension

liability (asset)	0.09%	0.09%	0.00%	0.00%

District's proportionate share of the net pension liability (asset)

District's covered payroll

$	14,138,702

$	8,377,952

$	13,687,116	$	$

$	8,102,832	$	$

District's proportionate share of the net pension liability (asset) as a percentage of its covered payroll

Plan fiduciary net position as a percentage of the total pension liability

168.76%

68.35%

168.92%

69.49%

#DIV/0!

0.00%

#DIV/0!

0.00%

SCHEDULE OF CONTRIBUTIONS ARIZONA STATE RETIREMENT SYSTEM LAST TWO FISCAL YEARS

2016	2015	2014	2013

Actuarially determined contribution	$	944,678	$	912,359	$	$

Contributions in relation to the

actuarially determined contribution	944,678	912,359

Contribution deficiency (excess)	$	$	$	$

District's covered payroll	$	8,706,710	$	8,377,952	$	$

Contributions as a percentage

of covered payroll	10.85%	10.89%	#DIV/0!	#DIV/0!

NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and additional information will be displayed as it becomes available.

See accompanying notes to this schedule.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2016

NOTE 1 – BUDGETARY BASIS OF ACCOUNTING

The District budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the following items.

	Certain activities reported in the General Fund are budgeted in separate funds in accordance with Arizona Revised Statutes.

The following schedule reconciles expenditures and fund balances at the end of year:

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds
Activity budgeted as special revenue funds

Total Expenditures

$ 12,518,863 (53,515)

Fund Balances End of Year

$	1,764,369 (158,712)

Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual – General Fund	$ 12,465,348	$	1,605,657

NOTE 2 – PENSION PLAN SCHEDULES

Change in Accounting Principle. For the year ended June 30, 2016, the District implemented the provisions of GASB Statement No. 82, Pension Issues. The statement changed the measure of payroll that is required to be presented in required supplementary information from covered-employee payroll to covered payroll. Accordingly, payroll amounts presented in the pension plan schedules and related ratios for prior periods have been restated.

Actuarial Assumptions for Valuations Performed. The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used are disclosed in the notes to the financial statements.

Factors that Affect Trends. The actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the five-year period ended June 30, 2012. The purpose of the experience study was to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study recommended changes which were applied to the June 30, 2013, actuarial valuation. The study did not include an analysis of the assumed investment rate of return.

(This page intentionally left blank)

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

(This page intentionally left blank)

GOVERNMENTAL FUNDS

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2016

ASSETS
Cash and investments Property taxes receivable
Due from governmental entities Total assets

Special Revenue

$	612,186

419,954 $	1,032,140

Capital Projects

$	23,991 4,546 8,424
$	36,961

Total Non-Major Governmental Fund

$            636,177 4,546
428,378 $	1,069,101

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Accrued payroll and employee benefits Unearned revenues
Total liabilities

$              15,573            $ 341,764
48,687 3,221 409,245

16,211	$ 897

17,108

31,784 342,661 48,687 3,221 426,353

Deferred inflows of resources:
Unavailable revenues - property taxes	4,124	4,124

Fund balances (deficits): Restricted
Unassigned
Total fund balances

649,719 (26,824) 622,895

16,626                         666,345 (897)                        (27,721) 15,729                         638,624

Total liabilities, deferred inflows of resources
and fund balances	$	1,032,140	$	36,961	$	1,069,101

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
State aid and grants
Federal aid, grants and reimbursements Total revenues

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Excess (deficiency) of revenues over expenditures

Special Revenue

$	1,461,201

919,702 400,136 2,781,039

1,534,633 242,844 119,581 2,321
40 837,233 86,797 2,823,449

(42,410)

Capital Projects

$                8,504 143,518
43,975

195,997

582,206 582,206

(386,209)

Total Non-Major Governmental Funds

$         1,469,705 143,518 963,677 400,136 2,977,036

1,534,633 242,844 119,581 2,321
40 837,233 669,003 3,405,655

(428,619)

Other financing sources (uses): Capital lease agreements
Total other financing sources (uses):

413,000 413,000

413,000 413,000

Changes in fund balances

Fund balances (deficits), beginning of year

(42,410)

665,305

26,791

(11,062)

(15,619)

654,243

Fund balances, end of year	$	622,895	$	15,729	$	638,624

SPECIAL REVENUE FUNDS

Classroom Site - to account for the financial activity for the portion of state sales tax collections and permanent state school fund earnings as approved by the voters in 2000.

Instructional Improvement - to account for the activity of monies received from gaming revenue.

Structured English Immersion - to account for monies received to provide for the incremental cost of instruction to English language learners.

Student Success - to account for student success monies.

Title I 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 academic standards.

Professional Development and Technology Grants - to account for financial assistance received to increase student academic achievement through improving teacher quality.

Title IV Grants - to account for financial assistance received for chemical abuse awareness programs and expanding projects that benefit educational and health needs of the communities.

Promote Informed Parent Choice - to account for financial assistance received to promote parent choices in the education of their students.

Johnson O’Malley - to account for financial assistance received to meet the unique educational needs of eligible Indian children.

Vocational Education – to account for financial assistance received for preparation of individuals for employment or advancement in a career not requiring a baccalaureate or advanced degree.

Medicaid Reimbursement - to account for reimbursements related to specific health services provided to eligible students.

E-Rate - to account for monies received to reimburse the District for broadband internet and telecommunications costs.

Other Federal Projects - to account for financial assistance received for other supplemental federal projects.

State Vocational Education - to account for financial assistance received for the preparation of individuals for employment.

Early Childhood Block Grant - to account for financial assistance received for preschool education.

Extended School Year – Pupils with Disabilities - to account for financial assistance from the State for year-round services for the special education program.

Chemical Abuse Prevention Programs - to account for financial assistance received for chemical abuse awareness programs.

Gifted - to account for financial assistance received for programs for gifted students.

Failing Schools Tutoring Grant - to account for monies used to assist high school students to pass the AIMS test or to assist students who are underperforming.

Other State Projects - to account for financial assistance received for other State projects.

School Plant - to account for proceeds from the sale or lease of school property.

Food Service - to account for the financial activity of school activities that have as their purpose the preparation and serving of regular and incidental 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 activity related to academic and skill development for all citizens.

Auxiliary Operations - to account for activity arising from bookstore, athletic and miscellaneous District related operations and activity related to monies collected in support of extracurricular activities to be taken as a tax credit by the tax payer in accordance with A.R.S. §43-1089.01.

Gifts and Donations - to account for activity related to gifts, donations, bequests and private grants made to the District.

Fingerprint - to account for activity of fingerprinting employees as mandated by the State.

Insurance Proceeds - to account for the monies received from insurance claims.

Textbooks - to account for monies received from students to replace or repair lost or damaged textbooks.

Litigation Recovery - to account for monies received for and derived from litigation.

Indirect Costs - to account for monies received from federal projects for administrative costs.

Insurance Refund - to account for insurance premium payments that are refunded to the District.

Grants and Gifts to Teachers - to account for grants and gifts under $1,500 received from private sources that are designated for use by a teacher for instructional purposes.

Advertisement - to account for monies received from the sale of advertising.

Joint Technical Education - to account for monies received from Joint Technical Education Districts for vocational education programs.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016

ASSETS
Cash and investments
Due from governmental entities Total assets

Classroom Site

$
67,288 $	67,288

Instructional Improvement

$              17,766 22,337
$	40,103

Structured English Immersion

$
161 $	161

LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable	$	$	$
Due to other funds	65,833	161 Accrued payroll and employee benefits	28,279
Unearned revenues
Total liabilities	94,112	161

Fund balances (deficits): Restricted
Unassigned
Total fund balances

40,103 (26,824)
(26,824)	40,103

Total liabilities and fund balances	$	67,288	$	40,103	$	161

Professional Development and Technology
Title I Grants	Grants

Promote Informed Parent
Title IV Grants	Choice

Vocational
Education	E-Rate

$                                    $ 109,423
$	109,423	$

$		$ 98,254
11,169

109,423

$	1,775	$ 38,669
38,669	$	1,775	$

$	$ 38,669

1,775 38,669	1,775

11	$		$	254 10,318
11	$	10,318	$	254

$		$ 10,318

11
11	10,318

254

254

$	109,423	$	38,669	$	1,775	$	11	$	10,318	$	254

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016

ASSETS
Cash and investments
Due from governmental entities Total assets

Other Federal Projects

$
4,593 $	4,593

State Vocational Education

$
2,030 $	2,030

Early Childhood Block Grant

$
135 $	135

LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Accrued payroll and employee benefits Unearned revenues
Total liabilities

$	$	$
4,593	2,030	135

4,593	2,030	135

Fund balances (deficits): Restricted
Unassigned
Total fund balances

Total liabilities and fund balances	$	4,593	$	2,030	$	135

Failing Schools Tutoring Grant

Other State Projects

Community Food Service	Civic Center	School

Auxiliary Operations

$	980	$	455	$

$	980	$	455	$

54,256	$

54,256	$

17,503	$

17,503	$

147,214

147,214

$	370,489

$	370,489

$	$	$	$	$	6,814	$	8,759

980	455
980	455	6,814	8,759

54,256	17,503

54,256	17,503

140,400

140,400

361,730

361,730

$	980	$	455	$	54,256	$	17,503	$	147,214	$	370,489

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2016

ASSETS
Cash and investments
Due from governmental entities Total assets

LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Accrued payroll and employee benefits Unearned revenues
Total liabilities

Fund balances (deficits): Restricted
Unassigned
Total fund balances

Fingerprint

$	864

$	864

$

864

864

Textbooks

$	11

$	11

$

11

11

Insurance Refund

$	253

$	253

$

253

253

Total liabilities and fund balances	$	864	$	11	$	253

Grants and Gifts
to Teachers	Advertisement

Joint Technical
Education	Totals

$	40	$	315

$	40	$	315

$
165,000 $	165,000

$            612,186 419,954
$	1,032,140

$	$	$
121,771 9,239

131,010

$              15,573 341,764
48,687 3,221 409,245

40	315	33,990

40	315	33,990

649,719 (26,824) 622,895

$	40	$	315	$	165,000	$	1,032,140

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

Fund balances, beginning of year

Classroom Site

$                5,687 807,460

813,147

1,043,471 21,780

1,065,251

(252,104)

225,280

Instructional Improvement

$                   119 86,992

87,111

36,753 8,286 2,000

47,039

40,072

31

Title I Grants

$

125,232 125,232

125,232

125,232

Fund balances (deficits), end of year	$	(26,824)	$	40,103	$

Professional Development and Technology Grants

Vocational Education

Other Federal E-Rate	Projects

State Vocational Education

Other State Projects

$	$	$

48,193                           10,838 48,193                           10,838

$	$	$
23,956	1,294 4,454
4,454	23,956	1,294

16,513
31,680	4,060

6,778 48,193	10,838

3,897	14,014	1,294 557                             4,471

5,471
4,454	23,956	1,294

254

$	$	$	254	$	$	$

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Food Service

$	361,079

211,419 572,498

Civic Center

$	9,394

9,394

Community School

$	338,012

338,012

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

19,317 2,321

531,633 16,822 570,093

167,007

127,197

294,204

Changes in fund balances

Fund balances, beginning of year

2,405	9,394	43,808

51,851	8,109	96,592

Fund balances, end of year	$	54,256	$	17,503	$	140,400

Auxiliary
Operations	Fingerprint	Textbooks

Insurance Refund

Grants and Gifts
to Teachers	Advertisement

$	568,837	$	779	$	$	2	$	$	315

568,837	779	2	315

1,552 170,919
98,264

40 178,403 33,659
481,285	1,552

87,552	(773)	2	315

274,178	1,637	11	251	40

$	361,730	$	864	$	11	$	253	$	40	$	315

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Joint Technical Education

$	176,977

176,977

Totals

$         1,461,201 919,702 400,136 2,781,039

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

Fund balances, beginning of year

124,900 1,091

24,067 150,058

26,919

7,071

1,534,633 242,844 119,581 2,321
40 837,233 86,797 2,823,449

(42,410)

665,305

Fund balances, end of year	$	33,990	$	622,895

(This page intentionally left blank)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Classroom Site

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$                                    $                5,687 807,460

813,147

Variance -Positive (Negative)

$                5,687 807,460

813,147

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

1,086,451 25,133

1,111,584

(1,111,584)

1,043,471 21,780

1,065,251

(252,104)

42,980 3,353

46,333

859,480

Fund balances, beginning of year	225,280	225,280

Fund balances (deficits), end of year	$	(1,111,584)	$	(26,824)	$	1,084,760

Instructional Improvement

Budget	Actual

Variance -Positive (Negative)

Student Success

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$		119	$	119	$	$	248	$	248 86,992                           86,992

87,111	87,111	248	248

200,000

200,000

36,753	163,247 8,286                          (8,286) 2,000                          (2,000)

47,039	152,961

(200,000)	40,072	240,072	248	248

31	31	38,252	38,252

$	(200,000)	$	40,103	$	240,103	$	$	38,500	$	38,500

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Title I Grants

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

125,232 125,232

Variance -Positive (Negative)

$

125,232 125,232

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

150,000

150,000

125,232	24,768

125,232	24,768

Changes in fund balances	(150,000)	150,000

Fund balances, beginning of year

Fund balances (deficits), end of year	$	(150,000)	$	$	150,000

Professional Development and Technology Grants	Title IV Grants

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

48,193                           48,193 48,193                           48,193

16,513 50,000	31,680

50,000	48,193

(16,513)	10,000	10,000 18,320

1,807	10,000	10,000

(50,000)	50,000	(10,000)	10,000

$	(50,000)	$	$	50,000	$	(10,000)	$	$	10,000

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Promote Informed Parent Choice

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

25,000	25,000

25,000	25,000

(25,000)	25,000

Fund balances, beginning of year

Fund balances (deficits), end of year	$	(25,000)	$	$	25,000

Johnson O'Malley

Budget	Actual

Variance -Positive (Negative)

Vocational Education

Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	$

10,838                           10,838 10,838                           10,838

50,000	50,000

50,000	50,000

50,000	4,060

6,778 50,000	10,838

45,940

(6,778) 39,162

(50,000)	50,000	(50,000)	50,000

$	(50,000)	$	$	50,000	$	(50,000)	$	$	50,000

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Medicaid Reimbursement

Non-GAAP Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

5,000	5,000

5,000	5,000

(5,000)	5,000

Fund balances, beginning of year	67	67

Fund balances (deficits), end of year	$	(5,000)	$	67	$	5,067

E-Rate

Budget	Actual

Variance -Positive (Negative)

Other Federal Projects

Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	$

4,454                             4,454 4,454                             4,454

50,000	50,000

50,000	50,000

150,000

150,000

3,897                         146,103 557                             (557)

4,454	145,546

(50,000)	50,000	(150,000)	150,000

254	254

$	(50,000)	$	254	$	50,254	$	(150,000)	$	$	150,000

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

State Vocational Education

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$
23,956

23,956

Variance -Positive (Negative)

$
23,956

23,956

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

25,000                           14,014 4,471

5,471 25,000	23,956

10,986 (4,471)

(5,471) 1,044

Changes in fund balances	(25,000)	25,000

Fund balances, beginning of year

Fund balances (deficits), end of year	$	(25,000)	$	$	25,000

Early Childhood Block Grant	Extended School Year - Pupils with Disabilities

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

25,000

25,000

(25,000)

25,000	25,000	25,000

25,000	25,000	25,000

25,000	(25,000)	25,000

$	(25,000)	$	$	25,000	$	(25,000)	$	$	25,000

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Chemical Abuse Prevention Programs

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

10,000	10,000

10,000	10,000

(10,000)	10,000

Fund balances, beginning of year

Fund balances (deficits), end of year	$	(10,000)	$	$	10,000

Gifted

Budget	Actual

Variance -Positive (Negative)

Other State Projects

Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	$
1,294	1,294

1,294	1,294

25,000	25,000	25,000

25,000	25,000	25,000

1,294	23,706

1,294	23,706

(25,000)	25,000	(25,000)	25,000

$	(25,000)	$	$	25,000	$	(25,000)	$	$	25,000

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

School Plant

Non-GAAP Budget	Actual

$	$	49

49

Variance -Positive (Negative)

$	49

49

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services	50,000	50,000 Capital outlay
Total expenditures	50,000	50,000

Changes in fund balances	(50,000)	49	50,049

Fund balances, beginning of year	7,610	7,610

Fund balances (deficits), end of year	$	(50,000)	$	7,659	$	57,659

Food Service

Budget	Actual

Variance -Positive (Negative)

Civic Center

Budget	Actual

Variance -Positive (Negative)

$	$	361,079	$	361,079	$	$	9,394	$	9,394

211,419 572,498

211,419
572,498	9,394	9,394

19,317                        (19,317) 2,321                          (2,321)

550,000

550,000

531,633 16,822 570,093

18,367	50,000	50,000 (16,822)
(20,093)	50,000	50,000

(550,000)	2,405	552,405	(50,000)	9,394	59,394

51,851	51,851	8,109	8,109

$	(550,000)	$	54,256	$	604,256	$	(50,000)	$	17,503	$	67,503

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Community School

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$	338,012

338,012

Variance -Positive (Negative)

$	338,012

338,012

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

300,000

300,000

(300,000)

167,007

127,197

294,204

43,808

132,993

(127,197)

5,796

343,808

Fund balances, beginning of year	96,592	96,592

Fund balances (deficits), end of year	$	(300,000)	$	140,400	$	440,400

Auxiliary Operations

Budget	Actual

Variance -Positive (Negative)

Gifts and Donations

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$	568,837	$	568,837	$	$	80,719	$	80,719

568,837	568,837	80,719	80,719

500,000

500,000

(500,000)

170,919 98,264

40 178,403 33,659 481,285

87,552

329,081 (98,264)

(40) (178,403) (33,659) 18,715

587,552

100,000

100,000

(100,000)

18,764                           81,236 23,982                        (23,982) 1,470                          (1,470)

9,299                          (9,299) 53,515                           46,485

27,204	127,204

274,178	274,178	84,703	84,703

$	(500,000)	$	361,730	$	861,730	$	(100,000)	$	111,907	$	211,907

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Fingerprint

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$	779

779

Variance -Positive (Negative)

$	779

779

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

10,000	1,552	8,448

10,000	1,552	8,448

(10,000)	(773)	9,227

Fund balances, beginning of year	1,637	1,637

Fund balances (deficits), end of year	$	(10,000)	$	864	$	10,864

Insurance Proceeds

Non-GAAP Budget	Actual

Variance -Positive
(Negative)	Budget

Textbooks

Actual

Variance -Positive (Negative)

$	$	$	$	$	$

5,000

5,000

(5,000)

5,000	5,000	5,000

5,000	5,000	5,000

5,000	(5,000)	5,000

27	27	11	11

$	(5,000)	$	27	$	5,027	$	(5,000)	$	11	$	5,011

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Litigation Recovery

Non-GAAP Budget	Actual

$	$	550

550

Variance -Positive (Negative)

$	550

550

Expenditures: Current -
Instruction	1,000	1,000 Support services - students and staff
Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures	1,000	1,000

Changes in fund balances	(1,000)	550	1,550

Fund balances, beginning of year	2	2

Fund balances (deficits), end of year	$	(1,000)	$	552	$	1,552

Indirect Costs

Non-GAAP Budget	Actual

Variance -Positive (Negative)

Insurance Refund

Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	2	$	2

2	2

25,000	25,000	5,000	5,000

25,000	25,000	5,000	5,000

(25,000)	25,000	(5,000)	2	5,002

251	251

$	(25,000)	$	$	25,000	$	(5,000)	$	253	$	5,253

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Grants and Gifts to Teachers

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

10,000	10,000

10,000	10,000

(10,000)	10,000

Fund balances, beginning of year	40	40

Fund balances (deficits), end of year	$	(10,000)	$	40	$	10,040

Advertisement

Budget	Actual

Variance -Positive (Negative)

Joint Technical Education

Budget	Actual

Variance -Positive (Negative)

$	$	315	$	315	$	$	176,977	$	176,977

315	315	176,977	176,977

150,000

150,000

124,900 1,091

24,067 150,058

25,100 (1,091)

(24,067) (58)

315	315	(150,000)	26,919	176,919

7,071	7,071

$	$	315	$	315	$	(150,000)	$	33,990	$	183,990

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local
State aid and grants
Federal aid, grants and reimbursements Total revenues

Totals

Non-GAAP Budget	Actual

$	$	1,542,767 919,702 400,136
2,862,605

Variance -Positive (Negative)

$         1,542,767 919,702 400,136 2,862,605

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Total expenditures

Changes in fund balances

2,472,451 625,133

650,000

3,747,584

(3,747,584)

1,553,397 266,826 121,051 2,321
40 837,233 96,096 2,876,964

(14,359)

919,054 358,307 (121,051) (2,321) (40) (187,233) (96,096) 870,620

3,733,225

Fund balances, beginning of year	795,966	795,966

Fund balances (deficits), end of year	$	(3,747,584)	$	781,607	$	4,529,191

DEBT SERVICE FUND

Debt Service - to account for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEBT SERVICE
YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
Federal aid, grants and reimbursements Total revenues

Budgeted Amounts

Original & Final

$

Actual

$                3,805 1,118,913 104,129 1,226,847

Variance with Final Budget Positive (Negative)

$                3,805 1,118,913 104,129 1,226,847

Expenditures: Debt service -
Principal retirement Interest and fiscal charges
Total expenditures

Changes in fund balances

575,000 640,000 1,215,000

(1,215,000)

575,000 639,261 1,214,261

12,586

739 739

1,227,586

Fund balances, beginning of year	768,229	768,229

Fund balances (deficits), end of year	$	(1,215,000)	$	780,815	$	1,995,815

CAPITAL PROJECTS FUNDS

Unrestricted Capital Outlay - to account for transactions relating to the acquisition of capital items.

Adjacent Ways - to account for monies received to finance improvements of public ways adjacent to school property.

Gifts and Donations - Capital - to account for gifts and donations to be expended for capital acquisitions.

Condemnation - to account for monies received from proceeds from sales by condemnation or right-of-way settlements.

Emergency Deficiencies Correction - to account for monies received from the School Facilities Board that are used to correct deficiencies in square footage and in quality of facilities and equipment.

Building Renewal Grant – to account for building renewal grant monies requested from the School Facilities Board that are used for infrastructure or for major upgrades, repairs, or renovations to areas, systems, or buildings that will maintain or extend their useful life.

New School Facilities - to account for monies received from the School Facilities Board that are used to purchase land, to construct new school buildings, and related architectural and engineering fees.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2016

ASSETS
Cash and investments Property taxes receivable
Due from governmental entities Total assets

Unrestricted Capital Outlay

$	22,718 4,546 8,424
$	35,688

Adjacent Ways

$	513

$	513

Gifts and Donations -Capital

$	660

$	660

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:
Accounts payable Due to other funds
Total liabilities

$	16,211	$	$

16,211

Deferred inflows of resources:
Unavailable revenues - property taxes	4,124

Fund balances (deficits): Restricted
Unassigned
Total fund balances

15,353	513	660

15,353	513	660

Total liabilities, deferred inflows of resources
and fund balances	$	35,688	$	513	$	660

Emergency Deficiencies
Condemnation	Correction

Building Renewal Grant

New School
Facilities	Totals

$	23	$	$	44	$

$	23	$	$	44	$

33	$	23,991 4,546 8,424
33	$	36,961

$	$		$	$	$	16,211 897                                                                                                           897 897                                                                                                      17,108

4,124

23
(897) 23	(897)

44                                  33                           16,626 (897)
44	33	15,729

$	23	$	$	44	$	33	$	36,961

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
State aid and grants Total revenues

Unrestricted Capital Outlay

$                8,496 143,518
35,558 187,572

Adjacent Ways

$	4

4

Gifts and Donations -Capital

$	4

4

Expenditures: Capital outlay
Total expenditures

581,306 581,306

Excess (deficiency) of revenues over expenditures	(393,734)	4	4

Other financing sources (uses): Capital lease agreements
Total other financing sources (uses):

413,000 413,000

Changes in fund balances

Fund balances (deficits), beginning of year

19,266	4	4

(3,913)	509	656

Fund balances (deficits), end of year	$	15,353	$	513	$	660

Emergency Deficiencies
Condemnation	Correction

Building Renewal Grant

New School
Facilities	Totals

$                                    $                                    $                                    $                                    $                8,504 143,518
8,417                                                                43,975 8,417                                                              195,997

900                                                                                                    582,206 900                                                                                                    582,206

(900)	8,417	(386,209)

413,000 413,000

(900)	8,417	26,791

23	3	(8,373)	33	(11,062)

$	23	$	(897)	$	44	$	33	$	15,729

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2016

Revenues: Other local Property taxes
State aid and grants Total revenues

Unrestricted Capital Outlay

Non-GAAP Budget	Actual

$                                    $                8,496 143,518
35,558 187,572

Variance -Positive (Negative)

$                8,496 143,518
35,558 187,572

Expenditures: Capital outlay
Total expenditures

Changes in fund balances

302,911 302,911

(302,911)

168,306 168,306

19,266

134,605 134,605

322,177

Fund balances (deficits), beginning of year	(3,913)	(3,913)

Fund balances (deficits), end of year	$	(302,911)	$	15,353	$	318,264

Adjacent Ways

Budget	Actual

Variance -Positive (Negative)

Gifts and Donations - Capital

Budget	Actual

Variance -Positive (Negative)

$	$	4	$	4	$	$	4	$	4

4	4	4	4

50,000                                                                50,000 50,000                                                                50,000

4	4	(50,000)	4	50,004

509	509	656	656

$	$	513	$	513	$	(50,000)	$	660	$	50,660

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2016

Condemnation

Revenues: Other local Property taxes
State aid and grants Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Capital outlay
Total expenditures

Changes in fund balances

500                                                                     500 500                                                                     500

(500)	500

Fund balances (deficits), beginning of year	23	23

Fund balances (deficits), end of year	$	(500)	$	23	$	523

Emergency Deficiencies Correction	Building Renewal Grant

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

8,417                             8,417 8,417                             8,417

900                             (900) 900                             (900)

(900)	(900)

3	3

8,417

(8,373)

8,417

(8,373)

$	$	(897)	$	(897)	$	$	44	$	44

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2016

New School Facilities

Revenues: Other local Property taxes
State aid and grants Total revenues

Budget	Actual

$	$

Variance -Positive (Negative)

$

Expenditures: Capital outlay
Total expenditures

Changes in fund balances

Fund balances (deficits), beginning of year	33	33

Fund balances (deficits), end of year	$	$	33	$	33

Totals

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$                                    $                8,504 143,518
43,975 195,997

$                8,504 143,518
43,975 195,997

353,411 353,411

(353,411)

169,206 169,206

26,791

184,205 184,205

380,202

(11,062)	(11,062)

$	(353,411)	$	15,729	$	369,140

(This page intentionally left blank)

AGENCY FUNDS

Student Activities - to account for monies raised by students to finance student clubs and organizations but held by the District as an agent.

Employee Withholding - to account for voluntary deductions temporarily held by the District as an agent.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2016

ASSETS
Cash and investments Total assets

Student Activities

$            148,537 $            148,537

Employee Withholding

$                4,792 $                4,792

Totals

$            153,329 $            153,329

LIABILITIES
Deposits held for others Due to student groups
Total liabilities

$                                    $ 148,537
$	148,537	$

4,792            $                4,792 148,537
4,792	$	153,329

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS YEAR ENDED JUNE 30, 2016

Beginning
Balance	Additions	Deductions

Ending Balance

STUDENT ACTIVITIES

Assets

Cash and investments

Total assets

Liabilities

Due to student groups

Total liabilities

$	140,921	$

$	140,921	$

$	140,921	$

$	140,921	$

538,375	$

538,375	$

538,375	$

538,375	$

530,759	$

530,759	$

530,759	$

530,759	$

148,537

148,537

148,537

148,537

EMPLOYEE WITHHOLDING

Assets

Cash and investments	$

Total assets	$

Liabilities

Deposits held for others	$

Total liabilities	$

$	14,430	$

$	14,430	$

$	14,430	$

$	14,430	$

9,638	$	4,792

9,638	$	4,792

9,638	$	4,792

9,638	$	4,792

TOTAL AGENCY FUNDS

Assets

Cash and investments

Total assets

Liabilities

Deposits held for others Due to student groups

Total liabilities

$	140,921	$

$	140,921	$

$		$ 140,921

$	140,921	$

552,805	$

552,805	$

14,430	$ 538,375

552,805	$

540,397	$

540,397	$

9,638	$ 530,759

540,397	$

153,329

153,329

4,792 148,537

153,329

(This page intentionally left blank)

STATISTICAL SECTION

The statistical section presents financial statement trends as well as detailed financial and operational information not available elsewhere in the report. The statistical section is intended to enhance the reader’s understanding of the information presented in the financial statements, notes to the financial statements, and other supplementary information presented in this report. The statistical section is comprised of the five categories of statistical information presented below.

Financial Trends
These schedules contain information on financial trends to help the reader understand how the District’s financial position and financial activities have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the District’s ability to generate revenue.

Debt Capacity
These schedules present information to help the reader evaluate the District’s current levels of outstanding debt as well as assess the District’s ability to make debt payments and/or issue additional debt in the future.

Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader understand the environment in which the District’s financial activities take place and to help make comparisons with other school districts.

Operating Information
These schedules contain information about the District’s operations and various resources to help the reader draw conclusions as to how the District’s financial information relates to the services provided by the District.

Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal year 2014-15 be based upon property values limited to five percent in annual growth. The aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying assessment ratios based on the use of a property), including property values with a growth limit, is currently referred to as net limited assessed value and formerly as primary assessed value. In accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash assessed value and formerly as secondary assessed value. This remains the value utilized for determining debt capacity limits.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Net Position:

Net investment in capital assets Restricted
Unrestricted Total net position

Net Position:
Net investment in capital assets Restricted
Unrestricted Total net position

2016

$       13,018,852 1,482,005
(12,952,805) $	1,548,052

2011

$	10,685,283 1,677,711 4,556,263
$	16,919,257

2015

$       13,236,747 1,526,552
(11,505,564) $	3,257,735

2010

$	 9,639,277 1,409,409 6,353,513
$	17,402,199

2014

$	13,790,926 1,460,282 2,272,614
$	17,523,822

2009

$	10,193,084 1,782,334 4,309,304
$	16,284,722

2013

$	13,587,558 1,542,118 2,730,800
$	17,860,476

2008

$	 8,394,898 1,493,586 5,763,809
$	15,652,293

2012

$	13,927,904 1,485,356 3,885,916
$	19,299,176

2007

$         7,610,523 766,493 4,992,270
$	13,369,286

Source: The source of this information is the District's financial records.

Note: The provisions of Governmental Accounting Standards Board (GASB) Statement No. 68 were adopted in fiscal year 2015. The standard required the recognition of net pension liabilities which resulted in decreases in the unrestricted net position at fiscal year end.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Expenses Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total expenses

2016

$       10,021,236 1,584,374 2,234,179 1,535,988 501,094 873,531 666,341 17,416,743

2015

$         9,957,570 1,243,850 2,069,735 1,639,384 704,817 852,547 661,261 17,129,164

2014

$         9,366,070 1,071,992 2,014,582 1,501,218 664,236 767,742 682,186 16,068,026

2013

$         8,767,736 1,090,665 1,901,848 1,356,566 658,550 735,868 702,586 15,213,819

2012

$         7,987,861 1,164,971 1,948,137 1,532,044 731,315 758,700 723,586 14,846,614

Program Revenues Charges for services:
Instruction
Operation of non-instructional services Other activities
Operating grants and contributions Capital grants and contributions
Total program revenues

659,322 927,073 9,319 846,658 95,214 2,537,586

734,265 1,024,731 7,133 786,528 48,736 2,601,393

450,877 793,597 9,281 963,876 35,314 2,252,945

498,080 754,893 20,507 805,290 63,798 2,142,568

399,354 719,384 24,632 1,257,574 3,814,031 6,214,975

Net (Expense)/Revenue	$	(14,879,157)	$	(14,527,771)	$	(13,815,081)	$	(13,071,251)	$	(8,631,639)

Source: The source of this information is the District's financial records.

Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown.

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

Expenses Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Interest on long-term debt
Total expenses

2011

$         7,352,384 1,128,476 1,901,768 1,164,884 710,209 651,310 932,029 13,841,060

2010

$         6,734,215 1,136,111 1,680,781 1,078,542 633,464 517,588
60,124 11,840,825

2009

$         7,762,695 1,138,342 1,525,808 1,213,598 637,986 547,764 110,315 12,936,508

2008

$         7,686,593 1,162,706 1,555,981 1,314,067 720,856 587,168 159,664 13,187,035

2007

$         7,445,761 986,463 1,569,113 1,280,082 763,859 461,551 214,322 12,721,151

Program Revenues Charges for services:
Instruction
Operation of non-instructional services Other activities
Operating grants and contributions Capital grants and contributions
Total program revenues

506,574 690,668 275 1,256,895 27,437 2,481,849

320,529 480,402 108,670 1,084,317 15,363 2,009,281

191,023 103,428 450,367 933,630 21,497 1,699,945

229,463 422,470 100,830 865,536 35,340 1,653,639

145,034 555,437 20,260 440,734 12,000 1,173,465

Net (Expense)/Revenue	$	(11,359,211)	$	(9,831,544)	$	(11,236,563)	$	(11,533,396)	$	(11,547,686)

Source: The source of this information is the District's financial records.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

2016	2015	2014	2013	2012

Net (Expense)/Revenue	$	(14,879,157)	$	(14,527,771)	$	(13,815,081)	$	(13,071,251)	$	(8,631,639)

General Revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid
Total general revenues

6,026,983 1,135,210 147,642 16,399 402,109 6,323,234 14,051,577

5,311,469 930,045 51,070 11,058 466,615 6,569,926 13,340,183

5,676,670 937,675 14,205 12,343 479,603 6,357,931 13,478,427

5,067,886 1,005,109 14,862 30,630 336,894 5,177,170 11,632,551

5,084,933 1,031,717 117 24,835 244,435 4,625,521
11,011,558

Changes in Net Position	$	(827,580)	$	(1,187,588)	$	(336,654)	$	(1,438,700)	$	2,379,919

Source: The source of this information is the District's financial records.

Note:	The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34 were adopted in fiscal year 2001 therefore only six years are shown.

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (Accrual basis of accounting)

Fiscal Year Ended June 30

2011	2010	2009	2008	2007

Net (Expense)/Revenue	$	(11,359,211)	$	(9,831,544)	$	(11,236,563)	$	(11,533,396)	$     (11,547,686)

General Revenues: Taxes:
Property taxes, levied for general purposes Property taxes, levied for debt service Property taxes, levied for capital outlay
Investment income Unrestricted county aid Unrestricted state aid Unrestricted federal aid
Total general revenues

4,619,548 1,172,518 2,965 46,539 202,339 4,491,717 340,643 10,876,269

4,626,466 918,273

89,188 194,609 4,405,999 714,486 10,949,021

5,378,968 1,134,293 388,769 125,772 2,613 4,838,577

11,868,992

5,763,693 1,784,578 261,272 273,152

5,733,708

13,816,403

5,537,815 1,273,146 321,409 290,678 2,408 5,507,479

12,932,935

Changes in Net Position	$	(482,942)	$	1,117,477	$	632,429	$	2,283,007	$	1,385,249

Source: The source of this information is the District's financial records.

Note: The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

General Fund: Unassigned

2016

$	1,764,369	$

2015

2,316,261	$

2014

2,474,660	$

2013

2,495,796	$

2012

3,707,704

Total General Fund	 $	1,764,369   $	2,316,261   $	2,474,660   $	2,495,796   $	3,707,704 

All Other Governmental Funds: Restricted
Unassigned
Total all other governmental funds

$	1,447,160	$ (27,721)
$	1,419,439	$

1,512,128	$ (89,656)
1,422,472	$

1,448,527	$ (101,347)
1,347,180	$

1,527,268	$

1,527,268	$

1,468,385

1,468,385

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

General Fund: Nonspendable Unassigned Reserved Unreserved
Total General Fund

All Other Governmental Funds: Restricted
Reserved
Unreserved, reported in: Special revenue funds Capital projects funds Debt service fund
Total all other governmental funds

2011

$             203,440 4,616,782

$	4,820,222

$	4,107,461

$	4,107,461

2010

$	$

104,348 4,169,785
$	4,274,133	$

$	$

1,180,953 14,627,820 438,653
$	16,247,426	$

2009

$

27,481 3,565,116 3,592,597	$

$ 5,061

1,086,900 1,050,592 688,342
2,830,895	$

2008

$

41,826 3,094,754 3,136,580	$

$ 6,368

1,833,467 688,542 593,694
3,122,071	$

2007

39,041 2,067,602 2,106,643

15,184

2,204,896 544,164 170,303 2,934,547

Source: The source of this information is the District's financial records.

Note: The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011. The standard replaces the previous reserved and unreserved fund balance categories with the following five fund balance classifications: nonspendable, restricted, committed, assigned, and unassigned fund balance.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

Federal sources: Federal grants
State Fiscal Stabilization (ARRA) Education Jobs
National School Lunch Program Total federal sources
State sources:
State equalization assistance State grants
School Facilities Board Other revenues
Total state sources Local sources:
Property taxes County aid
Food service sales Investment income Other revenues
Total local sources Total revenues

2016

$	616,727	$

211,419 828,146

5,307,077 25,250 8,417 1,016,157 6,356,901

7,215,407 402,109 347,041 16,399 1,328,732 9,309,688
$	16,494,735	$

2015

592,537	$

192,259 784,796

5,809,987 10,860

798,610 6,619,457

6,637,180 466,615 330,297 11,038 1,436,789 8,881,919
16,286,172	$

2014

666,289	$

195,319 861,608

5,541,143 5,638

816,788 6,363,569

6,537,158 479,603 344,596 12,343 932,159 8,305,859
15,531,036	$

2013

627,299

183,383 810,682

4,671,239 1,024 57,382 505,931 5,235,576

6,094,262 336,894 355,780 30,630 917,700 7,735,266 13,781,524

2012

$	803,248

150,475 150,126 1,103,849

4,119,965 10,687 3,799,345 505,556 8,435,553

5,865,771 244,435 350,232 24,835 950,862 7,436,135
$	16,975,537

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Federal sources: Federal grants
State Fiscal Stabilization (ARRA) National School Lunch Program
Total federal sources State sources:
State equalization assistance State grants
School Facilities Board Other revenues
Total state sources Local sources:
Property taxes County aid
Food service sales Investment income Other revenues
Total local sources Total revenues

2011

$	1,393,012	$ 85,945
139,300 1,618,257

4,066,132 558,364

1,956 4,626,452

5,794,132 202,339 362,348 46,539 835,169 7,240,527
$	13,485,236	$

2010

650,149	$ 714,486 117,030
1,481,665

3,856,443 4,427

421,539 4,282,409

5,598,296 194,609 369,979 89,188 867,696 7,119,768
12,883,842	$

2009

462,687	$

95,996 558,683

4,412,569 15,801

470,711 4,899,081

7,184,854 2,613 357,958 125,776 748,209 8,419,410
13,877,174	$

2008

382,909

82,250 465,159

4,911,590 23,062 49,682 747,023 5,731,357

7,554,479

339,407 273,152 844,528 9,011,566 15,208,082

2007

$	333,402

90,313 423,715

4,884,632 17,019 99,359 523,488 5,524,498

7,080,927 2,408 248,476 290,678 454,624 8,077,113
$	14,025,326

Source: The source of this information is the District's financial records.

Note: The Arizona State Legislature suspended county equalization payments to school districts for fiscal years 2006-07 through 2008-09.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2016	2015	2014	2013	2012

Expenditures: Current -
Instruction

Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -

Claims and judgments Interest and fiscal charges Principal retirement
Total expenditures

Expenditures for capitalized assets

$	 9,079,366	$ 1,547,524 2,109,302 1,498,913
412,740 839,515 678,333

666,341 630,626
$	17,462,660	$

$	479,189	$

8,820,174	$ 1,192,583 1,960,115 1,583,821
597,598 827,763 175,964

661,261 550,000
16,369,279	$

41,839	$

8,611,301 1,050,679 1,902,719 1,456,686 587,749 754,904 161,036

682,186 525,000 15,732,260

91,413

$         8,077,648        $ 1,081,336 1,781,396 1,320,272
577,018 713,944 170,349

702,586 510,000
$	14,934,549	$

$	148,442	$

7,246,054 1,142,045 1,833,652 1,288,065 631,667 734,828 6,503,794

723,586 420,000 20,523,691

6,378,149

Debt service as a percentage of

noncapital expenditures	8%	7%	8%	8%	8%

Source: The source of this information is the District's financial records. Notes:

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2011	2010	2009	2008	2007

Expenditures: Current -
Instruction

Support services - students and staff Support services - administration
Operation and maintenance of plant services Student transportation services
Operation of non-instructional services Capital outlay
Debt service -

Claims and judgments Interest and fiscal charges Principal retirement
Bond issuance costs Total expenditures

Expenditures for capitalized assets

$	 6,789,084	$ 1,095,676 1,761,103 1,210,658
618,369 632,312 11,928,973

932,029 210,000

$	25,178,204	$

$	11,770,328	$

6,094,038	$ 1,126,222 1,652,044 1,123,431
545,268 483,339 613,115

56,475 1,160,000 203,800
13,057,732	$

475,506	$

7,113,082	$ 1,118,350 1,493,891 1,094,962
565,153 532,602 519,770

38,556 110,315 1,110,000

13,696,681	$

242,086	$

6,918,375	$ 1,151,946 1,474,986 1,245,946
586,868 559,977 826,828

159,664 1,060,000

13,984,590	$

521,475	$

6,773,719 926,638 1,464,535 1,102,254 614,691 439,499 817,785

214,322 1,005,000

13,358,443

440,972

Debt service as a percentage of

noncapital expenditures	9%	11%	9%	9%	9%

Source: The source of this information is the District's financial records.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified accrual basis of accounting)

Fiscal Year Ended June 30

2016	2015	2014	2013	2012

Excess (deficiency) of

revenues over expenditures	$	(967,925)	$	(83,107)	$	(201,224)	$	(1,153,025)	$	(3,548,154)

Other financing sources (uses): Capital lease agreements Transfers in
Transfers out

Total other financing sources (uses)

413,000

413,000

1,684

(1,684)

5,702

(5,702)

Changes in fund balances	$	(554,925)	$	(83,107)	$	(201,224)	$	(1,153,025)	$	(3,548,154)

2011	2010	2009	2008	2007

Excess (deficiency) of

revenues over expenditures	$	(11,692,968)	$	(173,890)	$	180,493	$	1,223,492	$	666,883

Other financing sources (uses): Issuance of school improvement bonds Premium on sale of bonds
Transfers in Transfers out
Total other financing sources (uses)

16,805

(16,805)

14,000,000 200,151 37,720
(37,720)

14,200,151

205,748

(205,748)

1,427

(1,427)

1,783

(1,783)

Changes in fund balances	$	(11,692,968)	$	14,026,261	$	180,493	$	1,223,492	$	666,883

Source: The source of this information is the District's financial records.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

NET LIMITED ASSESSED VALUE AND FULL CASH VALUE OF TAXABLE PROPERTY BY CLASS LAST TEN FISCAL YEARS

Fiscal Year

Class	2016	2015	2014	2013	2012

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Certain Government Property Improvements

Total

$	 6,952,635	$ 19,319,855
130,843,020 16,143,404 55,132

$	173,314,046	$

6,681,647	$ 20,147,121
128,288,690 13,509,506 53,963

168,680,927	$

6,174,230	$ 21,481,242
134,604,074 7,841,097 51,706

170,152,349	$

6,167,792	$ 24,784,313
145,580,914 7,546,474 55,623
-

184,135,116	$

6,240,606 27,443,331 161,144,061 4,498,664 57,482 9,435

199,393,579

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 1,790,361,226

10%

5.30

$ 1,721,553,223

10%

5.03

$ 1,728,748,371

10%

5.00

$ 1,861,329,633

10%

4.15

$ 2,003,464,671

10%

3.80

Fiscal Year

Class	2011	2010	2009	2008	2007

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

$	 6,150,101	$ 29,604,611
179,734,775 4,792,568 59,414

$	220,341,469	$

7,178,113	$ 28,972,009
178,059,958 4,114,000 57,243

218,381,323	$

7,444,314	$ 25,926,129
162,264,230 3,469,371 52,186

199,156,230	$

7,423,812	$ 22,168,604
142,425,872 3,272,474 47,424

175,338,186	$

7,057,463 19,408,417 125,963,607 2,869,395 42,559

155,341,441

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 2,235,227,040

10%

3.35

$ 2,324,387,909

9%

3.18

$ 1,943,053,074

10%

4.37

$ 1,975,056,876

9%

5.10

$ 1,640,754,290

9%

5.48

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. Primary taxes are used for general District operations. Secondary taxes are used to service District bonded debt requirements and other voter-approved overrides.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

NET FULL CASH ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS LAST TEN FISCAL YEARS

Fiscal Year

Class	2016	2015	2014	2013	2012

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 6,979,059     $ 19,634,181
132,786,136 16,499,727 55,132

$	175,954,235     $

$     1,790,361,226     $

6,691,415     $ 20,403,238
128,424,010 13,647,729 53,963

169,220,355     $

1,721,553,223     $

6,306,055     $ 21,681,196
134,725,227 7,944,854 52,419

170,709,751     $

1,728,748,371     $

6,183,034     $ 25,334,411
145,689,889 7,614,102 56,623

184,878,059     $

1,861,329,633     $

6,334,940 28,827,259 161,412,859 4,506,267 66,917

201,148,242

2,003,464,671

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value

Total Direct Rate

10%	10%

5.30	5.03

10%	10%	10%

5.00	4.15	3.80

Fiscal Year

Class	2011	2010	2009	2008	2007

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 6,371,777     $ 34,734,376
181,495,989 4,846,850 60,029

$	227,509,021     $

$     2,235,227,040     $

7,481,560     $ 37,914,344
189,234,195 4,406,724 61,884

239,098,707     $

2,324,387,909     $

8,075,955     $ 38,602,352
187,616,164 4,078,632 60,823

238,433,926     $

1,943,053,074     $

7,580,440     $ 31,645,592
160,592,930 3,793,117 58,048

203,670,127     $

1,975,056,876     $

7,189,411 26,701,611 132,887,737 3,139,078 48,650

169,966,487

1,640,754,290

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value

Total Direct Rate

10%	10%

3.35	3.18

12%	10%	10%

4.37	5.10	5.48

Source:

Note:

The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for determining the District's
bonding capacity and as the ceiling for net limited assessed value.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PROPERTY TAX ASSESSMENT RATIOS LAST TEN FISCAL YEARS

Fiscal Year

Class	2016	2015	2014	2013	2012

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

19 %	19 %	20 %	20 %	20 % 16	16	16	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
15	16	15	15	15

Fiscal Year

Class	2011	2010	2009	2008	2007

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

21 %	22 %	23 %	24 %	25 % 16	16	16	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
17	18	20	21	22

Source: The source of this information is the State and County Abstract of the Assessment Roll, Arizona Department of Revenue.

Note: Additional classes of property exist, but do not amount to a significant portion of the District's total valuation, therefore they are not included on this schedule.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS

Overlapping Rates

Fiscal Year
Ended	State

County	Flood Free            Control

Community College

Fire District

Central	City Arizona              of

Pima	Tanque	District Direct Rates County       Verde Valley

June 30 Equalization	County

2016	0.51	5.09 2015	0.51	4.98 2014	0.51	4.45 2013	0.47	4.20 2012	0.43	4.20 2011	0.36	4.06 2010	0.33	4.02 2009	0.00	4.00 2008	0.00	4.29
2007	0.00	4.56

Library

0.52 0.44 0.38 0.35 0.35 0.31 0.26 0.34 0.40
0.37

District

0.31 0.30 0.26 0.26 0.26 0.26 0.26 0.29 0.34
0.37

District

1.37 1.33 1.29 1.17 1.11 1.08 1.08 1.14 1.18
1.25

Assistance	Water	Tucson	JTED

0.05	0.14	1.60	0.05 0.05	0.14	1.46	0.05 0.05	0.14	1.43	0.05 0.04	0.10	1.26	0.05 0.04	0.10	1.16	0.05 0.04	0.10	0.96	0.05 0.04	0.10	0.93	0.05 0.04	0.10	0.96	0.05 0.04	0.10	1.13	0.05
0.04	0.12	1.23	0.00

F.D.	Primary

1.06	3.72 1.00	3.89 1.41	3.80 1.26	3.00 1.15	2.72 1.27	2.37 1.16	2.37 1.26	3.42 1.37	3.78
0.00	4.09

Secondary	Total

1.58	5.30 1.14	5.03 1.20	5.00 1.15	4.15 1.08	3.80 0.98	3.35 0.81	3.18 0.95	4.37 1.32	5.10
1.39	5.48

Source: The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2016	2007
Percentage of

Net Limited Assessed
Taxpayer	Valuation

Percentage of District's Net Limited Assessed Valuation

Net Full Cash Assessed Valuation

District's Net Full Cash Assessed Valuation

Unisource Energy Group Southwest Gas Company Arizona Sunshine Ranches Landmark Title - TR 18300 Landmark Title - TR 18152 Galiuro TR
Qwest Communications

$	 2,988,227 1,618,144 1,055,752
602,372 503,995 464,933 458,879

1.72	% $	% 0.93                          1,648,675                    1.06 0.61                          2,770,454                    1.78 0.35
0.29 0.27
0.26	2,430,521	1.56

Schifman Ronald Bruce & Stolov Sheila MLP communications, Inc.
Macco LLC
Tucson Electric Power 49er Country Club Private Individual Private Individual Private Individual Private Individual
$

428,842 426,533 331,541

8,879,218

0.25
0.25	543,893	0.35 0.19
2,209,564	1.42 339,933	0.22 288,943	0.19 203,960	0.13 203,960	0.13 186,963	0.12
5.11	%	$	10,826,866	6.97 %

Source: The source of this information is the Pima County Assessor's records.

Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS

Fiscal

Year	Taxes Levied

Ended	for the

Collected within the Fiscal Year of the Levy

Percentage

Collections in

Subsequent

Collected to the End

of the Current Fiscal Year

Percentage

June 30	Fiscal Year	Amount	of Levy	Fiscal Years	Amount(2)	of Levy

2016	$	7,281,966 2015                       6,566,441 2014                       6,614,750 2013                       6,005,212 2012                       5,929,011 2011                       5,814,400 2010                       5,533,500 2009                       7,225,380 2008                       7,530,783
2007	7,095,240

$      7,069,703                    97.09 % 6,358,769                    96.84 6,360,489                    96.16 5,788,261                    96.39 5,711,044                    96.32 5,595,553                    96.24 5,303,895                    95.85 6,880,902                    95.23 6,931,228                    92.04
6,840,635	96.41

N/A 202,737 240,969 208,890 216,370 217,813 228,413 344,457 599,535
254,590

$      7,069,703                      97.09 % 6,561,506                      99.92 6,601,458                      99.80 5,997,151                      99.87 5,927,414                      99.97 5,813,366                      99.98 5,532,308                      99.98 7,225,359                    100.00 7,530,763                    100.00
7,095,225	100.00

Source: The source of this information is the 2016 Pima County Treasurer's records. Notes: 1) Amounts collected are on a cash basis.
2) Unsecured personal property taxes are not included in this schedule because the dates of the monthlyrolls vary each year. On the average, 90% of unsecured property taxes are collected within 90 days after the due date.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

General Obligation Bonds
Fiscal	Less:	Percentage of

Total Outstanding Debt Percentage of

Year            General Ended        Obligation
June 30	Bonds

Amounts Restricted for
Principal

Estimated
Actual Value	Per Total	(Full Cash Value)               Capita

Capital

Leases

Estimated Actual Value
Total	(Full Cash Value)

Percentage of Per	Personal
Capita	Income

2016	$ 11,210,000 2015            11,785,000 2014            12,335,000 2013            13,370,000 2012            13,790,000 2011            14,000,000 2010            15,160,000 2009              2,270,000 2008              3,330,000 2007              4,335,000

$	811,536 782,653 853,522 914,438 890,156 776,359 459,928 721,445 797,846 211,638

10,398,464 11,002,347 11,481,478 12,455,562 12,899,844 13,223,641 14,700,072 1,548,555 2,532,154 4,123,362

0.58 %	$	743 0.64                            786 0.66                            820 0.67                            890 0.64                            921 0.59                            945 0.63                         1,050 0.08                            155 0.13                            253 0.25                            412

$ 1,239,477	$ 12,449,477 11,785,000 12,335,000 13,370,000 13,790,000 14,000,000 15,160,000
2,270,000 3,330,000 4,335,000

0.70 %	$	889	N/A % 0.68                            842                       0.03 0.71                            881                       0.03 0.72                            955                       0.04 0.69                            985                       0.04 0.63                         1,000                       0.04 0.65                         1,083                       0.04 0.12                            227                       0.01 0.17                            333                       0.01 0.26                            434                       0.01

Source: The source of this information is the District's financial records. Note: N/A indicates that the information is not available.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2016

Debt Governmental Unit	Outstanding

Estimated Percentage Applicable to School District

Estimated Amount Applicable to School District

Overlapping: Pima County
Pima Community College District City of Tucson
Subtotal, Overlapping Debt

$ 1,106,703,716 None 566,683,691

2.42 %      $     26,782,230 2.42                            None 5.93                   33,604,343 60,386,573

Direct:

Tanque Verde Unified School District No. 13	100.00	12,449,477

Total Direct and Overlapping Governmental Activities Debt	$	72,836,050

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Net Direct General Obligation Bonded Debt

As a Percentage of Net Limited Assessed Valuation	6.00 %

Net Direct and Overlapping General Bonded Debt

Per Capita	$	5,056

As a Percentage of Net Limited Assessed Valuation                                                     40.84 % As a Percentage of Gross Full Cash Value                                                                       3.95 %

Source: The source of this information is the District's records and the State and County Abstract of the Assessment Roll, Arizona Department of Revenue and the applicable governmental unit.
Notes: 1) Estimated percentage of debt outstanding applicable to the District is calculated based on a portion of the District's net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping net limited jurisdiction.
2) Outstanding debt as of June 30, 2015 is presented for the overlapping governments as this is the most recent available information.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Class B Bond Legal Debt Margin Calculation for Fiscal Year 2016:	Total Legal Debt Margin Calculation for Fiscal Year 2016:

Net full cash assessed valuation Debt limit (20% of assessed value) Debt applicable to limit
Legal debt margin

$	175,954,235 35,190,847 11,210,000
$	23,980,847

Net full cash assessed valuation Debt limit (30% of assessed value)

Debt applicable to limit Legal debt margin

$	175,954,235 52,786,271 11,210,000
$	41,576,271

Fiscal Year Ended June 30

2016	2015	2014	2013	2012

Debt Limit	$	52,786,271	$	50,766,107	$	51,212,925	$	55,463,418	$	60,344,473

Total net debt applicable to limit	11,210,000	11,785,000	12,335,000	13,370,000	13,790,000

Legal debt margin	$	41,576,271	$	38,981,107	$	38,877,925	$	42,093,418	$	46,554,473

Total net debt applicable to the limit

as a percentage of debt limit	21%	23%	24%	24%	23%

2011	2010	2009	2008	2007

Debt Limit	$	68,252,706	$	71,729,612	$	71,530,178	$	61,101,038	$	50,989,946

Total net debt applicable to limit	14,000,000	15,160,000	2,270,000	3,330,000	4,335,000

Legal debt margin	$	54,252,706	$	56,569,612	$	69,260,178	$	57,771,038	$	46,654,946

Total net debt applicable to the limit

as a percentage of debt limit	21%	21%	3%	5%	9%

Source: The source of this information is the District's financial records.

Notes: 1) The District’s general obligation bonds are subject to two limits; the Constitutional debt limit (total debt limit) on all general obligation bonds and the statutory debt limit on Class B bonds. The calculations of the debt margins are presented in detail for the current fiscal year only.
2) Bond premium is not subject to the statutory debt limit.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COUNTY-WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS

Personal Income
Year	Population	(thousands)

Per Capita Income

Unemployment Rate

Estimated District Population

2015	1,010,025	$ 2014	1,004,516 2013                   996,554 2012                   992,394 2011                   986,081 2010                   980,263 2009	1,018,012 2008	1,012,018 2007	1,003,235 2006                   981,280

N/A	$	N/A 37,198,714                       37,031 36,935,363                       37,063 35,813,670                       35,371 36,058,871                       36,335 34,360,759                       34,987 34,516,424                       33,833 34,392,945                       34,058 31,646,777                       31,755 29,806,619                       31,418

6.2	%	14,000 6.2                            14,000 7.0                            14,000 7.2                            14,000 9.1                            14,000 9.0                            14,000 8.3                            14,000 5.1                            10,000 3.8                            10,000 4.0                            10,000

Sources:

Note:

The source of the "Personal Income" and "Per Capita" information is the Bureau of Economic Analysis.
The source of the "Population" and "Unemployment Rate" information from 2006 through 2010 is the University of Arizona, Eller College of Management, Economic and Business Research Center. For 2011 through 2015, the source of the information is the Arizona Office of Employment and Population Statistics. N/A indicates that the information is not available.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2016	2007

Percentage of Total
Employer	Employees	Employment

Percentage of Total
Employees	Employment

University of Arizona Raytheon Missile Systems State of Arizona
Davis Monthan AFB Pima County
Tucson Unified School District Banner-University Medicine
U.S. Customs and Border Protection Freeport-McMoran Mining
Wal-Mart Stores, Inc. Fort Huachuca
City of Tucson

Phelps Dodge Mining Co.

Total

11,251	2.48     % 9,600	2.12 8,580	1.89 8,406	1.85 7,060	1.56 6,770	1.49 6,272	1.38 5,739	1.27 5,530	1.22 5,500	1.21

74,708	16.47     %

10,354	2.48 % 11,184	2.67
9,927	2.37

7,290                          1.74 7,419                          1.77

8,233	1.97

5,625	1.35 9,119	2.18 5,849	1.40 4,900	1.17

79,900	19.10 %

Total employment	453,300	418,111

Source: The source of this information is Arizona Daily Star - Star 200 and Bureau of Labor Statistics.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS

Full-time Equivalent Employees as of June 30

2016	2015	2014	2013	2012

Supervisory

Consultants/supervisors of instruction Principals
Assistant principals Total supervisory
Instruction Teachers
Other professionals (instructional) Aides
Total instruction Student Services
Librarians Technicians
Total student services Support and Administration
Service workers

Total support and administration

Total

4                            4                            4                            4                            4 4                            4                            4                            4                            4 2                            2                            1                            1                            1 10                          10                            9                            9                            9

133                        132                        128                        124                        116 7                            1                            1                            1                            1 55                          51                          49                          47                          46 195                        184                        178                        172                        163

4	3	3	3	3 1	1	1	1	1 5	4	4	4	4

81                          78                          78                          78                          77 81                          78                          78                          78                          77

291	276	269	263	253

(Continued)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS

2011	2010	2009	2008	2007

Supervisory

Consultants/supervisors of instruction Principals
Assistant principals Total supervisory
Instruction Teachers
Other professionals (instructional) Aides
Total instruction Student Services
Librarians Technicians
Total student services Support and Administration
Service workers

Total support and administration

Total

4	4	4	4	4 4	4	4	3	3 1	1	1	2	2 9	9	9	9	9

109                        105                        103                          95                          95 1                            1                            1                            1                            1 44                          40                          37                          35                          35 154                        146                        141                        131                        131

3	3	3	3	3 1	1	1	1	1 4	4	4	4	4

77                          74                          71                          72                          72 77                          74                          71                          72                          72

244	233	225	216	216

Source: The source of this information is District personnel records.

(Concluded)

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 OPERATING STATISTICS LAST TEN FISCAL YEARS

Fiscal
Year	Average Ended                 Daily
June 30	Membership

Operating Expenditures

Cost
per	Percentage
Pupil	Change	Expenses

Cost
per	Percentage Pupil               Change

Teaching Staff

Pupil-Teacher Ratio

Percentage of Free/Reduced Students

2016	1,994 2015	1,997 2014	1,915

$     15,487,360	$	7,767 14,982,054                7,502 14,364,038                7,501

3.53 %	$	17,416,743	$	8,735 0.02                    17,129,164                8,577 2.23                    16,068,026                8,391

1.83 %	195	10.2	15.0     % 2.23	184	10.9	15.0 1.86	178	10.8	16.0

2013	1,847 2012	1,687 2011	1,583 2010	1,500 2009	1,402 2008	1,299 2007	1,425 2006	1,342

13,551,614 12,876,311 12,107,202 11,024,342 11,918,040 11,938,098 11,321,336 11,321,336

7,337	(3.87) 7,633	(0.20) 7,648                    4.06 7,350                 (13.54) 8,501	(7.50) 9,190                  15.68 7,945	(5.82) 8,436               #DIV/0!

15,213,819	8,237 14,846,614	8,801 13,841,060	8,744 11,840,825	7,894 12,936,508	9,227 13,187,035              10,152 12,721,151	8,927 12,248,641	9,127

(6.40) 0.65
10.76 (14.45)
(9.11) 13.72
(2.19) #DIV/0!

172	10.7	15.9 163	10.3	14.1 154	10.3	41.8 146	10.3	12.0 141                   9.9                      9.6 131                   9.9                      8.3 131	10.9                      8.3

Source: The source of this information is the District's financial records.

Note: Operating expenditures are total expenditures less debt service and capital outlay.

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 CAPITAL ASSETS INFORMATION LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

2016	2015	2014	2013	2012	2011	2010	2009	2008	2007

Schools Elementary
Buildings Square feet Capacity Enrollment
Middle Buildings Square feet Capacity Enrollment
High Buildings
Square feet Capacity Enrollment
Other Buildings Square feet

Administrative Buildings Square feet

Transportation Garages Buses

Athletics
Football fields Soccer fields Baseball/softball Playgrounds

23 103,660 1,100 1,130

5 57,124 450 376

11 94,194 650 555

4 10,178

1 14,425

1 19

1 4 3 3

2                         2                         2                         2 98,371                98,371                98,371                98,371 1,100                  1,100                  1,100                  1,050 1,130                  1,138                  1,087                  1,040

1                         1                         1                         1 57,124                57,124                57,124                57,124 450                     450                     450                     450 376                     371                     367                     350

1                         1                         1                         1 94,194                94,194                94,194                94,194 650                     650                     650                     650 555                     479                     449                     375

4                         4                         4                         4 10,178                10,178                10,178                10,718

1                         1                         1                         1 14,425                14,425                14,425                14,425

1                         1                         1                         1 17                       17                       17                       17

1	1	1	1 4	4	4	3 3	3	3	7 3	3	3	3

2                         2                         2                         2                         2 98,371                98,371                98,371                98,371                98,371 1,050                  1,000                  1,000                  1,000                  1,000 1,025                     975                     924                     834                     884

1                         1                         1                         1                         1 57,443                57,443                57,443                57,443                57,443 370                     370                     370                     370                     455 340                     310                     308                     322                     325

1                         1                         1                         1                         1 17,100                17,100                17,100                17,100                17,100 230                     230                     230                     230                     150 330                     350                     260                     194                     132

1                         1                         1                         1                         1 758                     758                     758                     758                     758

1                         1                         1                         1                         1 40,211                40,211                40,211                40,211                40,211

1                         1                         1                         1                         1 17                       17                       17                       17                       17

1	1	1	1	1 2	2	2	2	2 6	6	6	6	6 3	3	3	3	3

Source: The source of this information is the District's facilities records.

Note: Prior to fiscal year 2015-16, the buildings are listed by the individual site.

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