TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

Comprehensive Annual Financial Report

Fiscal Year Ended June 30, 2018

2300 N. Tanque Verde Loop Rd. Bldg #1 ▪ Tucson, Arizona 85749

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

TUCSON, ARIZONA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018

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	6

GFOA Certificate of Achievement	7

Organizational Structure	8

List of Principal Officials	9

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	68

Joint Technical Education Fund	69

Pension Schedules	70

OPEB Schedules	71

Notes to Required Supplementary Information	73

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Governmental Funds:

Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type	78

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type	80

Special Revenue Funds:

Combining Balance Sheet	84

Combining Statement of Revenues, Expenditures and
Changes in Fund Balances	90

Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual	96

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	118

Capital Projects Funds:

Combining Balance Sheet	120

Combining Statement of Revenues, Expenditures and Changes in
Fund Balances	122

Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual	124

Agency Funds:

Combining Statement of Assets and Liabilities	132

Combining Statement of Changes in Assets and Liabilities	133

STATISTICAL SECTION

Financial Trends:

Net Position by Component	137

Expenses, Program Revenues, and Net (Expense)/Revenue	138

General Revenues and Total Changes in Net Position	140

Fund Balances – Governmental Funds	142

Governmental Funds Revenues	144

Governmental Funds Expenditures and Debt Service Ratio	146

Other Financing Sources and Uses and Net Changes in Fund
Balances – Governmental Funds	148

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	149

Net Full Cash Assessed Value of Taxable Property by Class	150

Property Tax Assessment Ratios	151

Direct and Overlapping Property Tax Rates	152

Principal Property Taxpayers	153

Property Tax Levies and Collections	154

Debt Capacity:

Outstanding Debt by Type	155

Direct and Overlapping Governmental Activities Debt	156

Direct and Overlapping General Bonded Debt Ratios	156

Legal Debt Margin Information	157

Demographic and Economic Information:

County-Wide Demographic and Economic Statistics	158

Principal Employers	159

Operating Information:

Full-Time Equivalent District Employees by Type	160

Operating Statistics	162

Capital Assets Information	163

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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

December 19, 2018

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, 2018.

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, 2018, 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, 2018, 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: Dr. Scott Hagerman, Superintendent; Adam Hamm, Business Manager Governing Board: Susan Fry, President; Jeremy Schalk, Clerk; Members: Steven Auslander, Jeffery Neff, Carlos Ruiz

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 2,040 students. The average age of the District’s buildings is 20 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 net limited assessed valuation increased 1.97% during the 2017-18 school year. The net limited 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 “bedroom community” with residents being in a retired status, or working in professional occupations in the Tucson area for IBM, the University of Arizona, or Raytheon.

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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.

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 agriculture-science.

Enrollment in this program exceeds 150 students, around 28% or our High School population, 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 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, whichhas 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.

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The District consists of two elementary schools, one junior high school, and one high school. 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 continuing override was approved in the November 2018 election. In addition the $15.0 million bond question on the ballot to address capital needs at the four District school sites was not approved.

The District continues to save an estimated $150,000 annually in electricity costs and will be for the next 17 years (the savings started in 2012-13). 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.

Student enrollment has remained stable and is anticipated to do so, holding at or around 2,040 students District-wide.

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.

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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, 2017. This was the twenty-fourth 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, 2017. 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, 2018 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,

Dr. Scott Hagerman Superintendent

Adam Hamm Business Manager

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

LIST OF PRINCIPAL OFFICIALS

GOVERNING BOARD

Susan Fry, President

Jeremy Schalk, Clerk

Steven Auslander, Member

Jeffrey Neff, Member

Carlos Ruiz, Member

ADMINISTRATIVE STAFF

Dr. Scott Hagerman Superintendent

Adam Hamm Business Manager

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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, 2018, 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, 2018, 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. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for the year ended June 30, 2018, which represents a change in accounting principle. Our opinion is not modified with respect to this matter.

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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, net pension liability information, and other postemployment benefit plan 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 theinformation 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 December 19, 2018, on our consideration of Tanque Verde Unified School District No. 13’s internal control over financial reporting and on 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
December 19, 2018

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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, 2018

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, 2018. 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 increased $1.0 million which represents a 75 percent increase from the prior fiscal year primarily due to pension related items and increased state aid.

	General revenues accounted for $15.8 million in revenue, or 85 percent of all current fiscal year revenues. Program specific revenue in the form of charges for services and grants and contributions accounted for $2.9 million or 15 percent of total current fiscal year revenues.

	The District had approximately $17.7 million in expenses related to governmental activities, an increase of three percent from the prior fiscal year.

	Among major funds, the General Fund had $13.0 million current fiscal year revenues, which primarily consisted of state aid and property taxes, and $13.3 million in expenditures. The General Fund’s fund balance decrease from $2.5 million at the prior fiscal year end to $2.4 million at the end of the current fiscal year was primarily due to decreased property tax revenue allocations and increased health insurance costs.

	The Joint Technical Education Fund had $1,443 in revenues and total expenditures were $165,779. The Joint Technical Education Fund’s fund balance decrease from a fund balance of $7,536 at the prior fiscal year end to a deficit fund balance of $156,800 was primarily due to reimbursements not received until after the period of availability.

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.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

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.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

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 and Joint Technical Education Funds, both 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 the major special revenue fund as required supplementary information. Schedules for the pension and other postemployment benefit plans 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 $2.4 million at the current fiscal year end.

The largest portion of the District’s 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.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The following table presents a summary of the District’s net position for the fiscal years ended June 30, 2018 and June 30, 2017.

Current and other assets Capital assets, net
Total assets

Deferred outflows

Current and other liabilities Long-term liabilities
Total liabilities

Deferred inflows

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

As of June 30, 2018
$        4,690,003 23,665,341
	28,355,344 

2,120,262

765,167 26,375,110
	27,140,277 

950,821

13,123,724 1,405,612
(12,144,828)
	$	2,384,508 

As of June 30, 2017
$        3,966,903 24,081,912
	28,048,815 

2,850,632

650,715 27,037,069
	27,687,784 

1,897,560

12,982,690 849,448
(12,518,035)
	$	1,314,103 

The District’s financial position is the product of several financial transactions including the net result of activities, the acquisition and payment of debt, the acquisition and disposal 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 $778,566 in accumulated depreciation through current year depreciation expense.

	The addition of $361,995 in capital assets through other school improvements and purchases of vehicles, furniture and equipment.

	The principal retirement of $675,000 in bonds payable.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Changes in net position. The District’s total revenues for the current fiscal year were $18.7 million. The total cost of all programs and services was $17.7 million. The following table presents a summary of the changes in net position for the fiscal years ended June 30, 2018 and June 30, 2017.

Revenues: Program revenues:

Fiscal Year Ended
June 30, 2018

Fiscal Year Ended
June 30, 2017

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 Student transportation services Operation of non-instructional Interest on long-term debt
Total expenses

Changes in net position Net position, beginning
Net position, ending

$      1,156,815 1,644,495 102,690

8,445,775 30,270 441,925 6,915,326 18,737,296

9,897,639 1,937,400 2,086,324 1,754,369 656,731 742,609 637,043 17,712,115
1,025,181 1,359,327
$	2,384,508

$      1,729,527 1,083,363 32,980

7,159,150 25,268 414,860 6,416,947 16,862,095

9,324,714 1,698,074 2,145,503 1,738,247 669,216 945,803 659,885 17,181,442
(319,347) 1,633,450
$	1,314,103

Page 21

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Expenses - FiscalYear2018

Student transportation services 4%

Operation of non-instructional services 4%

Interest on long-term debt 3%

Operation and maintenance of plant services 10%

Instruction 56%

Support services -administration 12%

Support services -students and staff 11%

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

	Property taxes increased $1.3 million primarily due to an increase in property valuations and tax rates.

	The $572,925 increase in expenses for instruction was primarily due to increases in health insurance costs.

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.

Page 22

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Year Ended June 30, 2018	Year Ended June 30, 2017

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

9,897,639 1,937,400 2,086,324

1,754,369 656,731

742,609

$	 (8,100,762) (1,851,680) (2,077,949)

(1,724,584) (644,102)

36,205

$	 9,324,714 1,698,074 2,145,503

1,738,247 669,216

945,803

$	 (8,069,845) (1,653,466) (2,145,503)

(1,679,629) (669,216)

237,590

Interest on long-term debt

Total

637,043

$ 17,712,115

(445,243) $ (14,808,115)

659,885

$	17,181,442

(355,503) $ (14,335,572)

	The cost of all governmental activities this year was $17.7 million.

	Federal and State governments and charges for services subsidized certain programs with grants and contributions and other local revenues of $2.9 million.

	 Net cost of governmental activities of $14.8 million was financed by general revenues, which are made up of primarily property taxes of $8.4 million and state and county aid of $7.4 million. Investment earnings accounted for $30,270 of funding.

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 $3.5 million, an increase of $283,912.

Page 23

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS

The General Fund comprises 69 percent of the total fund balance. At year end, the General Fund’s entire $2.4 million fund balance was unassigned.

The fund balance decreased $49,845 in the General Fund to $2.4 million as of fiscal year end. General Fund revenues decreased $275,800 primarily as a result of decreased property tax allocations. General Fund expenditures increased $669,508 as a result of increased health insurance costs.

The Joint Technical Education Fund had $1,443 in revenues and total expenditures were $165,779. The deficit fund balance of $156,800 was primarily due to reimbursements not received until after the period of availability.

BUDGETARY HIGHLIGHTS

Over the course of the year, the District revised the General Fund annual expenditure budget for changes in estimated student enrollment. The difference between the original budget and the final amended budget was an $83,078 decrease, or one 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 unfavorable variance of $129,986 in support services – students and staff was a result of unanticipated increase in demand for services.

	The favorable variance of $148,301 in support services – administration was a result of the Board’s continued emphasis to decrease administration costs at the District.

Page 24

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. At year end, the District had invested $38.1 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 $361,995. Total depreciation expense for the current fiscal year was $778,566.

The following schedule presents a summary of capital asset balances for the fiscal years ended June 30, 2018 and June 30, 2017.

Capital assets - non-depreciable Capital assets - depreciable, net

As of June 30, 2018
$            737,447 22,927,894

As of June 30, 2017
$             679,272 23,402,640

Total	$	23,665,341	$	24,081,912

The estimated cost to complete current construction projects is $1.0 million.

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

Debt Administration. At year end, the District had $11.3 million in long-term debt outstanding, $880,317 due within one year. Long-term debt decreased by $616,697.

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 net full cash assessed valuation or $1,500 per student). The current total debt limitation for the District is $57.2 million and the Class B debt limit is $38.1 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 debt can be found in Notes 7 through 9.

Page 25

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2018

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 2018-19 budget. Among them:

	Fiscal year 2017-18 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.

Budgeted expenditures in the General Fund increased seven percent to $13.9 million in fiscal year 2018-19. The state’s base support level is expected to increase is the primary reason for the increase. State aid and property taxes are expected to be the primary funding sources. No new programs were added to the 2018-19 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.

Page 26

BASIC FINANCIAL STATEMENTS

Page 27

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Page 28

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Page 29

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF NET POSITION JUNE 30, 2018

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

Noncurrent assets:
Net other postemployment benefit assets Capital assets not being depreciated
Capital assets, net of accumulated depreciation Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES Pension and other postemployment benefit plan items

LIABILITIES Current liabilities:
Accounts payable Construction contracts payable
Accrued payroll and employee benefits Compensated absences payable 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 and other postemployment benefit plan items

Governmental Activities

$         2,115,319 225,786
17,698 2,233,132 48,805 4,640,740

49,263 737,447 22,927,894 23,714,604 28,355,344

2,120,262

130,679 15,959 618,529 103,282 160,317 720,000 1,748,766

25,391,511 25,391,511 27,140,277

950,821

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

13,123,724

147,598 27,228 36,390 124,855 223,099 150,771 34,374 225,417 435,880 (12,144,828)
$	2,384,508

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

Page 30

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018

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

9,897,639 $             527,338 $          1,208,117 $               61,422 $       (8,100,762) 1,937,400                                               44,452                  41,268           (1,851,680) 2,086,324                                                 8,375                                       (2,077,949) 1,754,369                  29,785                                                                    (1,724,584) 656,731                  12,629                                                                       (644,102) 742,609                587,063                191,751                                               36,205 637,043                                             191,800                                          (445,243) 17,712,115 $          1,156,815 $          1,644,495 $             102,690         (14,808,115)

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

6,681,968 1,165,152 598,655 30,270 441,925 6,915,326 15,833,296

1,025,181

1,359,327

Net position, end of year	$	2,384,508

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

Page 31

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Page 32

FUND FINANCIAL STATEMENTS

Page 33

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2018

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

General

$            918,694 192,910
13,644 1,728,291 367,886

$	3,221,425

Joint Technical Education

$

157,000

$	157,000

Non-Major Governmental Funds

$         1,196,625 32,876
4,054 347,841

48,805 $	1,630,201

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

91,719	$

554,900 646,619

18,551	$

124,240 14,009 156,800

20,409 15,959 243,646 49,620 329,634

Deferred inflows of resources: Unavailable revenues - property taxes
Unavailable revenues - intergovernmental Total deferred inflows of resources

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

162,897

162,897

2,411,909 2,411,909

157,000 157,000

(156,800) (156,800)

25,255 50,964 76,219

48,805 1,331,552 (156,009) 1,224,348

Total liabilities, deferred inflows of resources
and fund balances	$	3,221,425	$	157,000	$	1,630,201

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

Page 34

Total Governmental Funds

$         2,115,319 225,786
17,698 2,233,132 367,886 48,805
$	5,008,626

$            130,679 15,959
367,886 618,529 1,133,053

188,152 207,964 396,116

48,805 1,331,552 2,099,100 3,479,457

$	5,008,626

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Page 36

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION JUNE 30, 2018

Total governmental fund balances	$	3,479,457

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	$ 38,075,239

Less accumulated depreciation	(14,409,898)	23,665,341

Some receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds.

Property taxes Intergovernmental

188,152
207,964	396,116

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

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

2,120,262
(950,821)	1,169,441

The Net OPEB asset is not a current financial resource and,

therefore, is not reported in the funds.	49,263

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 OPEB liability
Net pension liability Bonds payable

(526,140) (1,341,669) (33,381) (14,563,920)
(9,910,000)	(26,375,110)

Net position of governmental activities	$	2,384,508

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

Page 37

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018

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

General

$	 651,837 6,682,959 5,683,908

13,018,704

Joint Technical Education

$	1,443

1,443

Non-Major Governmental Funds

$         1,422,813 1,738,552 1,503,011 766,648 5,431,024

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

Excess (deficiency) of revenues over expenditures

7,494,366 1,246,412 1,897,814 1,638,600 542,981 39 357,244

91,388 26,129 13,294,973

(276,269)

139,768 146

25,865

165,779

(164,336)

1,716,988 700,892 104,346 79,000 1,273 706,746 322,473

741,604 610,914 4,984,236

446,788

Other financing sources (uses): Transfers in
Transfers out
Capital lease agreements Insurance recoveries
Total other financing sources (uses)

2,500 (2,500)
216,295 12,629
226,424	2,500

Changes in fund balances

Fund balances, beginning of year, as restated

(49,845)

2,461,754

(164,336)

7,536

449,288

726,255

Increase (decrease) in reserve for prepaid items	48,805

Fund balances, end of year	$	2,411,909	$	(156,800)	$	1,224,348

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

Page 38

Total Governmental Funds

$         2,076,093 8,421,511 7,186,919 766,648 18,451,171

9,351,122 1,947,450 2,002,160 1,717,600 544,254 706,785 705,582

832,992 637,043 18,444,988

6,183

2,500 (2,500) 216,295 12,629 228,924

235,107

3,195,545

48,805

$	3,479,457

Page 39

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, 2018

Changes in fund balances - total governmental funds	$	235,107

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 Assets donated to District
Less current year depreciation

$             320,727 41,268
(778,566)	(416,571)

Capital lease agreements provide current financial resources to governmental funds,

but the issuance increases long term liabilities in the Statement of Net Position.	(216,295)

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

Property taxes Intergovernmental

24,264
207,964	232,228

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

157,992
675,000	832,992

Governmental funds report pension/OPEB contributions as expenditures. However, they are reported as deferred outflows of resources in the Statement of Net Position. The change in the net pension/OPEB liability, adjusted for deferred items, is reported as pension/OPEB expense in the Statement of Activities.

Current year pension/OPEB contributions Pension/OPEB expense

1,095,244
(729,279)	365,965

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.

Prepaid items Compensated absences

48,805
(57,050)	(8,245)

Changes in net position in governmental activities	$	1,025,181

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

Page 40

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 STATEMENT OF ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2018

ASSETS
Cash and investments Total assets

LIABILITIES
Deposits held for others Due to student groups
Total liabilities

Agency

$            135,156 $            135,156

$                4,654 130,502
$	135,156

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

Page 41

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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, 2018, the District implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This Statement requires governments providing defined benefit postemployment benefits other than pensions to recognize the long-term obligation for those benefits as a liability, and to more comprehensively and comparably measure the annual costs of those benefits. This Statement also enhances accountability and transparency through revised note disclosures and new required supplementary information. 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.

Page 42

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 programrevenues 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.

Page 43

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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.

Joint Technical Education Fund – The Joint Technical Education Fund accounts for monies received from Joint Technical Education Districts for vocational education programs.

Page 44

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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.

Page 45

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 accordingto case law, an enforceable legal claim to the asset does not arise.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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. Capital assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at acquisition 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.

Page 47

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 and Other Postemployment Benefits

For purposes of measuring the net pension and other postemployment benefit (OPEB) assets and liabilities, related deferred outflows of resources and deferred inflows of resources, and related expenses, information about the pension and OPEB plans’ fiduciary net position and additions to/deductions from the plans’ 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.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 notcontained 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.

Page 50

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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: Nonspendable:
Prepaid items Restricted:
Debt service Capital projects
Teacher compensation Federal and state projects Auxiliary operations Food service
Community school Extracurricular activities Other purposes
Unassigned
Total fund balances

General Fund

$

2,411,909 $	2,411,909

Joint Technical Education Fund

$

(156,800) $	(156,800)

Non-Major Governmental Funds

$	48,805

208,752 398,173 147,598 7,540 223,099 36,390 124,855 150,771 34,374
(156,009) $	1,224,348

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Individual Deficit Fund Balances – At year end, the following individual major and non-major governmental funds reported deficits in fund balance.

Major Fund:
Joint Technical Education Non-Major Governmental Funds:
Structured English Immersion Title I Grants
Professional Development and Technology Grants
Title IV Grants
Special Education Grants Vocational Education
State Vocational Education Results-Based Funding Other State Projects Building Renewal Grant

Deficit

$	156,800

164 13,877

20,790 4,348 1,826 7,218 2,191 1,595 550 103,450

The deficits arose because of operations during the year and/or because of pending grant and other reimbursements. Additional revenues received in fiscal year 2018-19 are expected to eliminate the deficits.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

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.

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 $511,529 and the bank balance was $1,427,181. At year end, $986,180 of the District’s deposits were covered by collateral held by the pledging financial institution’s trust department or agent but not in the District’s name.

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.

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

Average Maturities County Treasurer’s investment pool	270 days

Fair Value $1,738,946

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.

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.

Page 52

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 other districts
Net due from governmental entities

General Fund

$
1,728,291

$	1,728,291

Joint Technical Education Fund

$

157,000 $	157,000

Non-Major Governmental Funds

$          156,892 190,949

$	347,841

NOTE 6 – CAPITAL ASSETS

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

Governmental Activities
Capital assets, not being depreciated: Land
Construction in progress
Total capital assets, not being depreciated Capital assets, being depreciated:
Land improvements Buildings and improvements
Vehicles, furniture and equipment Total capital assets being depreciated

Beginning Balance

$	679,272 $

679,272

1,173,848 33,294,342 2,690,961 37,159,151

Increase

58,175 58,175

54,026 49,801 199,993 303,820

Decrease

$	$

125,179 125,179

Ending Balance

679,272 58,175 737,447

1,227,874 33,344,143 2,765,775 37,337,792

Less accumulated depreciation for: Land improvements
Buildings and improvements Vehicles, furniture and equipment
Total accumulated depreciation

(457,923) (11,039,234) (2,259,354) (13,756,511)

(45,325) (686,578) (46,663) (778,566)

(125,179) (125,179)

(503,248) (11,725,812) (2,180,838) (14,409,898)

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

23,402,640
$ 24,081,912 $

(474,746) (416,571) $

22,927,894 $ 23,665,341

Page 53

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 6 – CAPITAL ASSETS

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

$     605,415 2,208 64,892 21,743 58,533 25,775
$ 778,566

Construction Commitments – At year end, the District had contractual commitments related to capital projects for the construction of various building improvement projects. At year end the District had spent $58,175 on the projects and had estimated remaining contractual commitments of $1.0 million. These projects are being funded primarily by Building Renewal Grant Funds.

NOTE 7 – OBLIGATIONS UNDER CAPITAL LEASES

The District has acquired stadium lighting and seating upgrades, utility management, energy efficient equipment, and vehicles under the provisions of long-termlease 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
Vehicles, furniture and equipment Less: Accumulated depreciation
Total

$          413,000 378,539 56,933
$	734,606

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 7 – OBLIGATIONS UNDER CAPITAL LEASES

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

Governmental Year Ending June 30:	Activities

2019 2020 2021 2022 2023 2024-28 2029-30
Total minimum lease payments

$           211,021 211,019 211,019 174,482 166,955 600,876 10,000 1,585,372

Less: amount representing interest	243,703

Present value of minimum lease payments

Due within one year

$	1,341,669

$	160,317

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 Purpose	Amount Issued

Interest Rates

Remaining Maturities

Outstanding Principal June 30, 2018

Due Within One Year

Governmental activities:
School Improvement Bonds, Build
America, Series 2010 (Class B)	$	11,785,000 4.873-6.073%	7/1/19-29 $	9,910,000 $	720,000

Page 55

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 8 – GENERAL OBLIGATION BONDS PAYABLE

Governmental Activities

Year ending June 30:
2019 2020 2021 2022 2023 2024-28 2029
Total

Principal
$         720,000 740,000 770,000 825,000 875,000 4,900,000 1,080,000
$	9,910,000

Interest
$          537,639 501,511 463,010 421,137 375,235 1,073,807 32,794
$	3,405,133

NOTE 9 – CHANGES IN LONG-TERM LIABILITIES

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

Beginning
Balance	Additions	Reductions

Ending Balance

Due Within One Year

Governmental activities: General obligation bonds Obligations under capital leases Net OPEB liability
Net pension liability Compensated absences payable

$ 10,585,000 $ 1,283,366
33,094 14,669,613 469,090

$ 216,295
287

223,216

675,000 $ 157,992

105,693 166,166

9,910,000 $ 1,341,669
33,381 14,563,920 526,140

720,000 160,317

103,282

Governmental activity long-term
liabilities	$ 27,040,163 $	439,798 $ 1,104,851 $ 26,375,110 $	983,599

NOTE 10 – INTERFUND RECEIVABLES AND PAYABLES

At year end, interfund balances were as follows:

Due to/from other funds – At year end, the Joint Technical Education Funds, a major governmental fund, and several non-major governmental funds had negative cash balances of $124,240 and $243,646 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.

Interfund transfers – Transfers of $2,500 between funds were used to move cash from the General Fund to the Fingerprint Fund.

Page 56

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 11 – CONTINGENT LIABILITIES

Compliance – The District has received a notice from the Office of the Auditor General that indicated the District had failed to substantially comply with the Uniform System of Financial Records (USFR), the manual which outlines State mandated internal control policies and procedures. According to A.R.S. Section 15-271, the District has 90 days to implement procedures to correct the deficiencies. The District is currently awaiting the status review report from the Office of the Auditor General. If the Auditor General’s review results in a noncompliance status, the State Board of Education may withhold a portion of the District’s monthly state aid distribution, until such time as the Districtis found to be in compliance. Upon reaching a substantial compliance status, the State Board of Education will distribute all funds previously withheld. However, it is management’s opinion that the District will be found in compliance upon the next status review.

In addition, 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.

NOTE 12 – PRIOR PERIOD ADJUSTMENTS

The July 1, 2017 government-wide net position and fund balances do not agree to the prior year financial statements due to the correction of errors, reclassifications of fund balances, and due to the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, represents a change in accounting principle.

Statement of Activities

Non-Major Governmental Funds Extracurricular
Auxiliary	Activities Fees
Operations	Tax Credit	Agency Fund                 Fund                Funds

Net position/fund balance, June 30, 2017, as previously reported
Correction of errors and reclassifications Other reclassifications
Net OPEB asset Net OPEB liability
Net position/fund balance, July 1, 2017, as restated

$	1,314,103 $ 43,245

22,548 (20,569)

$	1,359,327 $

359,712 $ 43,245
(165,214)

237,743 $

$

165,214

165,214 $

152,045 (43,245)

108,800

Page 57

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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 liabilityinsurance 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 premiumto 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 excessof specified amounts for each insured event.

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, vision, and life coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

Page 58

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

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.

Aggregate Amounts. At June 30, 2018, the District reported the following aggregate amounts related to pensions and OPEB for all plans to which it contributes:

Net assets Net liability
Deferred outflows of resources Deferred inflows of resources Expense
Contributions

Pension

$		$ 14,563,920
2,063,119 890,296 682,657
1,038,101

OPEB (49,263)
33,381 57,143 60,525 46,622
57,143

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

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT 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.

Retired and disabled members, with at least five years of credited service, are eligible to receive health insurance premium benefits. The benefits are payable only with respect to allowable health insurance premiums for which the member is responsible. For members with 10 or more years of service, benefits range from $150 per month to $260 per month depending on the age of the member and dependents. For members with five to nine years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on completed years of service.

Active members are eligible for a long-term disability benefit in the event they become unable to perform their work. The monthly benefit is equal to two-thirds of their monthly earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with long-term disability commencement dates after June 30, 1999 are limited to 30 years of service or the service on record as of the effective disability date, if their service is greater than 30 years.

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 11.50 percent (11.34 percent for retirement and 0.16 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 11.50 percent (10.90 percent for retirement, 0.44 percent for health insurance premium benefit, and 0.16 percent for long-term disability) of the active members’ annual covered payroll. The District’s contributions for the year ended June 30, 2018 were as follows:

Contributions

Pension

Health Insurance Premium

Long-Term Disability

$           1,038,101 41,905
15,238

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members who return to work in positions that would typically be filled by an employee who contributes to ASRS. The District was required by statute to contribute at the actuarially determined rate of 9.49 percent (9.26 for retirement, 0.10 percent for health insurance premium benefit, and 0.13 percent for long-term disability). ACR contributions are included in employer contributions presented above.

The District’s pension and OPEB contributions are paid by the same funds as the employee’s salary, with the largest component coming from the General Fund.

Pension and OPEB Assets/Liability. The net pension and OPEB assets/liability were measured as of June 30, 2017. The total liability used to calculate the net asset or net liability was determined using update procedures to roll forward the total liability from an actuarial valuation as of June 30, 2016, to the measurement date of June 30, 2017. The District’s proportion of the net assets/liability was based on the District’s actual contributions to the applicable plan relative to the total of all participating employers’ contributions to the plan for the year ended June 30, 2017.

At June 30, 2018, the District reported the following amounts for its proportionate share of the ASRS plans net assets/liability. In addition, at June 30, 2017, the District’s percentage proportion for each plan and the related change from its proportion measured as of June 30, 2016 was:

Net

(Assets) Liability

District

% Proportion

Increase

(Decrease)

Pension

Health Insurance Premium

Long-Term Disability

$	14,563,920	0.093	0.002 (49,263)	0.090
33,381	0.092

Pension/OPEB Expense and Deferred Outflows/Inflows of Resources. The District has deferred outflows and inflows of resources related to the net pension and OPEB assets/liabilities. Certain changes in the net pension and OPEB assets/liability are recognized as pension and OPEB expense over a period of time rather than the year of occurrence. For the year ended June 30, 2018, the District recognized pension and OPEB expense as follows:

	Expense	

Pension

Health Insurance Premium

Long-TermDisability

$          682,657 28,813
17,809

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The District reported deferred outflows of resources and deferred inflows of resources related to pensions and OPEB from the following sources:

Deferred Outflows of Resources

Health Insurance
Pension	Premium

Long-Term

Disability

Differences between expected and actual experience Changes of assumptions or other inputs
Net difference between projected and actual earnings on pension investments

Changes in proportion and differences between contributions and proportionate share of contributions

Contributions subsequent to the measurement date

Total

$		$ 632,544

104,559

287,915 1,038,101
$	2,063,119	$

$

41,905	15,238

41,905	$	15,238

Deferred Inflows of Resources

Health Insurance
Pension	Premium

Long-Term

Disability

Differences between expected and actual experience Changes of assumptions or other inputs
Net difference between projected and actual earnings on pension investments
Changes in proportion and differences between contributions and proportionate share of contributions
Total

$	 436,707	$ 435,487

18,102

$	890,296	$

$

55,468	4,993

60	4

55,528	$	4,997

Page 62

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The amounts of deferred outflows of resources resulting from contributions subsequent to the measurement date as reported in the table above will be recognized as an adjustment of the net pension and OPEB assets/liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions and OPEB will be recognized in pension and OPEB expense as follows:

Health Insurance
Year Ending June 30:	Pension	Premium

Long-Term

Disability

2019	$	(464,783)	$ 2020                       731,567 2021                       202,952 2022                    (335,014)
2023

(13,880)	$ (13,880) (13,880) (13,880)
(8)

(1,249) (1,249) (1,249)
(1,249)

Actuarial Assumptions. The significant actuarial assumptions used to measure the total pension and OPEB 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 Healthcare cost trend rate

Pension June 30, 2016 June 30, 2017 Entry age normal 8.0%
3.0-6.75% 3.0% Included
1994 GAM Scale BB Not applicable

OPEB June 30, 2016 June 30, 2017 Entry age normal 8.0%
Not applicable 3.0%
Not applicable
1994 GAM Scale BB Not applicable

The actuarial assumptions used in the June 30, 2016 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.

Page 63

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

The long-term expected rate of return on ASRS plan investments was determined to be 8.70 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of 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 for all ASRS plans 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
6.73% 3.70 4.25 3.41% 3.84

Discount Rate. The discount rate used to measure the ASRS total pension and OPEB liability was 8.0 percent, which is less than the long-term expected rate of return of 8.70 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 plans’ 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 investments was applied to all periods of projected benefit payments to determine the total pension and OPEB liability.

Page 64

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018

NOTE 14 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS

Sensitivity of the Proportionate Share of the Net Pension and OPEB Asset/Liability to Changes in the Discount Rate. The following presents the District’s proportionate share of the net pension and OPEB assets/liability calculated using the discount rate of 8.0 percent, as well as what the proportionate share of the net pension and OPEB asset/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 (assets) liability

1% Decrease

Rate	7.0%

Current Discount Rate

8.0%

1% Increase

9.0%

Pension

Health Insurance Premium

Long-Term Disability

$	18,693,044	$ 81,811
39,915

14,563,920	$ (49,263)
33,381

11,113,683 (160,653)
27,840

Pension and OPEB Plan Fiduciary Net Position. Detailed information about the pension and OPEB 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.

Page 65

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Page 66

REQUIRED SUPPLEMENTARY INFORMATION

Page 67

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL
YEAR ENDED JUNE 30, 2018

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

Budgeted Amounts

Original	Final

$	$

Non-GAAP Actual

$            490,102 6,682,959 5,683,908 12,856,969

Variance with Final Budget Positive (Negative)

$            490,102 6,682,959 5,683,908 12,856,969

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

Excess (deficiency) of revenues over expenditures

7,409,155 1,191,399 2,008,040 1,621,300 711,500 93,594

13,034,988

(13,034,988)

7,524,431 1,053,810 2,009,208 1,722,419 588,293 53,749

12,951,910

(12,951,910)

7,450,765 1,183,796 1,860,907 1,638,600 531,353 39
90,445

91,388 26,129 12,873,422

(16,453)

73,666 (129,986) 148,301 83,819 56,940 53,710 (90,445)

(91,388) (26,129) 78,488

12,935,457

Other financing sources (uses): Transfers out
Total other financing sources (uses)

(2,500) (2,500)

(2,500) (2,500)

Changes in fund balances	(13,034,988)	(12,951,910)	(18,953)	12,932,957

Fund balances, beginning of year	2,303,233	2,303,233

Fund balances (deficits), end of year	$	(13,034,988)	$	(12,951,910)	$	2,284,280	$	15,236,190

See accompanying notes to this schedule.

Page 68

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL JOINT TECHNICAL EDUCATION YEAR ENDED JUNE 30, 2018

Revenues: Other local
Total revenues

Budgeted Amounts

Original & Final

$

Variance with Final Budget Positive
Actual	(Negative)

$                1,443       $                1,443 1,443                         1,443

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

Changes in fund balances

160,170 190 29,640 190,000

(190,000)

139,768                       20,402 146                              44 25,865                         3,775 165,779                       24,221

(164,336)	25,664

Fund balances, beginning of year	7,536	7,536

Fund balances (deficits), end of year	$	(190,000)	$	(156,800)	$	33,200

See accompanying notes to this schedule.

Page 69

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

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

2018	2017	2016	2015

Measurement date

District's proportion of the net pension

(assets) liability

June 30, 2017

0.09%

June 30, 2016

0.09%

June 30, 2015

0.09%

June 30, 2014

0.09%

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

District's covered payroll

$	14,563,920

$	9,067,653

$	14,699,613

$	8,706,710

$	14,138,702

$	8,377,952

$	13,687,116

$	8,102,832

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

Plan fiduciary net position as a

percentage of the total pension liability

160.61%

69.92%

168.83%

67.06%

168.76%

68.35%

168.92%

69.49%

SCHEDULE OF PENSION CONTRIBUTIONS ARIZONA STATE RETIREMENT SYSTEM LAST FOUR FISCAL YEARS

2018	2017	2016	2015

Actuarially determined contribution	$	1,038,101	$	977,493	$	944,678	$	912,359

Contributions in relation to the

actuarially determined contribution	1,038,101	977,493	944,678	912,359

Contribution deficiency (excess)	$	$	$	$

District's covered payroll	$	9,523,862	$	9,067,653	$	8,706,710	$	8,377,952

Contributions as a percentage

of covered payroll	10.90%	10.78%	10.85%	10.89%

NOTE: The pension and OPEB 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. Page 70

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - HEALTH INSURANCE PREMIUM JUNE 30, 2018

2018	2017	2016	2015

Measurement date	June 30, 2017	0	0	0

District's proportion of the net OPEB

(assets) liability	0.09%	0.00%	0.00%	0.00%

District's proportionate share of the net OPEB (assets) liability

District's covered payroll

$	(49,263)	$	$	$

$	9,067,653	$	$	$

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

Plan fiduciary net position as a

percentage of the total OPEB liability

-0.54%

103.57%

#DIV/0!

0.00%

#DIV/0!

0.00%

#DIV/0!

0.00%

SCHEDULE OF OPEB CONTRIBUTIONS

ARIZONA STATE RETIREMENT SYSTEM - HEALTH INSURANCE PREMIUM JUNE 30, 2018

2018	2017	2016	2015

Actuarially determined contribution	$	41,905	$	$	$

Contributions in relation to the

actuarially determined contribution	41,905

Contribution deficiency (excess)	$	$	$	$

District's covered payroll	$	9,523,862	$	$	$

Contributions as a percentage

of covered payroll	0.44%	#DIV/0!	#DIV/0!	#DIV/0!

NOTE: The pension and OPEB 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. Page 71

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET OPEB LIABILITY ARIZONA STATE RETIREMENT SYSTEM - LONG-TERM DISABILITY JUNE 30, 2018

2018	2017	2016	2015

Measurement date	June 30, 2017	0	0	0

District's proportion of the net OPEB

(assets) liability	0.09%	0.00%	0.00%	0.00%

District's proportionate share of the net OPEB (assets) liability

District's covered payroll

$	33,381	$	$	$

$	9,067,653	$	$	$

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

Plan fiduciary net position as a

percentage of the total OPEB liability

0.37%	#DIV/0!

84.44%	0.00%

#DIV/0!

0.00%

#DIV/0!

0.00%

SCHEDULE OF OPEB CONTRIBUTIONS

ARIZONA STATE RETIREMENT SYSTEM - LONG-TERM DISABILITY JUNE 30, 2018

2018	2017	2016	2015

Actuarially determined contribution	$	15,238	$	$	$

Contributions in relation to the

actuarially determined contribution	15,238

Contribution deficiency (excess)	$	$	$	$

District's covered payroll	$	9,523,862	$	$	$

Contributions as a percentage

of covered payroll	0.16%	#DIV/0!	#DIV/0!	#DIV/0!

NOTE: The pension and OPEB 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. Page 72

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2018

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.
	Current-year capital lease agreements.

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

Total Expenditures

Fund Balances End of Year

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds
Activity budgeted as special revenue funds Current-year capital lease agreements
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund

$	13,294,973	$ (205,256) (216,295)

$	12,873,422	$

2,411,909 (127,629)

2,284,280

NOTE 2 – PENSION AND OPEB PLAN SCHEDULES

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, 2016, 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.

Page 73

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Page 74

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

Page 75

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Page 76

GOVERNMENTAL FUNDS

Page 77

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2018

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

Special Revenue

$	652,880

4,054 290,892 19,688
$	967,514

Debt Service

$            203,560 21,857

$	225,417

Capital Projects

$            340,185 11,019

56,949 29,117
$	437,270

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

19,019	$

156,155 49,620 224,794

$	 1,390 15,959 87,491

104,840

Deferred inflows of resources: Unavailable revenues - property taxes
Unavailable revenues - intergovernmental Total deferred inflows of resources

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

50,964 50,964

19,688 724,627 (52,559) 691,756

16,665

16,665

208,752

208,752

8,590

8,590

29,117 398,173 (103,450) 323,840

Total liabilities, deferred inflows of resources
and fund balances	$	967,514	$	225,417	$	437,270

Page 78

Total Non-Major Governmental Funds

$         1,196,625 32,876
4,054 347,841 48,805
$	1,630,201

$              20,409 15,959
243,646 49,620 329,634

25,255 50,964 76,219

48,805 1,331,552 (156,009) 1,224,348

$	1,630,201

Page 79

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, 2018

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
Debt service -Principal retirement
Interest and fiscal charges Total expenditures

Excess (deficiency) of revenues over expenditures

Special Revenue

$	1,396,817

1,322,765 574,848 3,294,430

1,716,988 700,892 104,346 79,000 1,273 706,746 75,331

3,384,576

(90,146)

Debt Service

$                6,858 1,148,487

191,800 1,347,145

675,000 587,550 1,262,550

84,595

Capital Projects

$	 19,138 590,065 180,246

789,449

247,142

66,604 23,364 337,110

452,339

Other financing sources (uses):
Transfers in                                                                                                   2,500 Total other financing sources (uses)                                                      2,500

Changes in fund balances

Fund balances (deficits), beginning of year, as restated

(87,646)

759,714

84,595

124,157

452,339

(157,616)

Increase (decrease) in reserve for prepaid items	19,688	29,117

Fund balances, end of year	$	691,756	$	208,752	$	323,840

Page 80

Total Non-Major Governmental Funds

$         1,422,813 1,738,552 1,503,011 766,648 5,431,024

1,716,988 700,892 104,346 79,000 1,273 706,746 322,473

741,604 610,914 4,984,236

446,788

2,500 2,500

449,288

726,255

48,805

$	1,224,348

Page 81

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.

Special Education Grants - to account for supplemental financial assistance received to provide a free, appropriate public education to disabled 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.

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

College Credit Exam Incentives - to account for financial assistance received for college credit exams.

Results-based Funding - to account for financial assistance received for academic performance results in accordance with A.R.S. §15-249.08.

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.

Page 82

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.

Extracurricular Activities Fees Tax Credit - to account for 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 fromprivate sources that are designated for use by a teacher for instructional purposes.

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

Page 83

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2018

ASSETS
Cash and investments Accounts receivable
Due from governmental entities Prepaid items
Total assets

Classroom Site

$	47,103

80,076

$	127,179

Instructional Improvement

$	23,443

38,854

$	62,297

Structured English Immersion

$

164

$	164

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	$	9,660	$
Due to other funds	164 Accrued payroll and employee benefits                                                     29,947                             2,271
Total liabilities	29,947	11,931	164

Deferred inflows of resources:
Unavailable revenues - intergovernmental	164

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

97,232	50,366
(164) 97,232	50,366	(164)

Total liabilities, deferred inflows of resources
and fund balances	$	127,179	$	62,297	$	164

Page 84

Professional Development and Technology
Title I Grants	Grants	Title IV Grants

Special Education Grants

Vocational Education

State Vocational Education

$	$	$	$	$	$

29,817 19,688
$	49,505	$

$		$ 15,939
13,878 29,817

20,790

20,790	$

$ 20,790

20,790

4,348	94,719

4,348	$	94,719	$

$	$ 4,348                           92,981
1,738 4,348	94,719

7,218	12,587

7,218	$	12,587

$
5,432	12,587 1,786
7,218	12,587

13,877	20,790	4,348	1,826	7,218	2,191

19,688

(13,877) 5,811

(20,790) (20,790)

(4,348) (4,348)

(1,826) (1,826)

(7,218) (7,218)

(2,191) (2,191)

$	49,505	$	20,790	$	4,348	$	94,719	$	7,218	$	12,587

(Continued)

Page 85

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2018

ASSETS
Cash and investments Accounts receivable
Due from governmental entities Prepaid items
Total assets

College Credit Exam Incentives

$	7,540

$	7,540

Results-based Funding

$

$

Other State Projects

$

2,319

$	2,319

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

$	$
1,595	2,319

1,595	2,319

Deferred inflows of resources:
Unavailable revenues - intergovernmental	550

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

7,540
(1,595)	(550) 7,540	(1,595)	(550)

Total liabilities, deferred inflows of resources
and fund balances	$	7,540	$	$	2,319

Page 86

Community Food Service	Civic Center	School

Auxiliary Operations

Extracurricular Activities Fees
Tax Credit	Fingerprint

$	36,390	$

$	36,390	$

30,519	$

30,519	$

126,244	$ 4,054

130,298	$

227,015	$

227,015	$

150,771	$	1,526

150,771	$	1,526

$	$	$	5,443	$	3,916	$	$

5,443	3,916

36,390	30,519

36,390	30,519

124,855

124,855

223,099

223,099

150,771	1,526

150,771	1,526

$	36,390	$	30,519	$	130,298	$	227,015	$	150,771	$	1,526

(Continued)

Page 87

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2018

ASSETS
Cash and investments Accounts receivable
Due from governmental entities Prepaid items
Total assets

Textbooks

$	11

$	11

Insurance Refund

$	2,278

$	2,278

Grants and Gifts to Teachers

$	40

$	40

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

Deferred inflows of resources:
Unavailable revenues - intergovernmental

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

11	2,278	40

11	2,278	40

Total liabilities, deferred inflows of resources
and fund balances	$	11	$	2,278	$	40

Page 88

Totals

$            652,880 4,054
290,892 19,688
$	967,514

$              19,019 156,155
49,620 224,794

50,964

19,688 724,627 (52,559) 691,756

$	967,514

Page 89

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, 2018

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

Excess (deficiency) of revenues over expenditures

Classroom Site

$                3,905 960,905

964,810

872,270 8,790

881,060

83,750

Instructional Improvement

$                   725 90,267

90,992

8,073 68,307 76,446

152,826

(61,834)

Structured English Immersion

$

164

164

(164)

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances

Fund balances, beginning of year, as restated

83,750	(61,834)	(164)

13,482	112,200

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	97,232	$	50,366	$	(164)

Page 90

Professional Development and Technology
Title I Grants	Grants	Title IV Grants

Special Education Grants

Vocational Education

State Vocational Education

$	$	$

114,779                                    1 114,779                                    1

$	$	$
17,725 257,647	10,670
257,647	10,670	17,725

89,599

39,057 128,656

(13,877)

(13,877)

12,935 7,856

20,791

(20,790)

(20,790)

4,348

4,348

(4,348)

(4,348)

228,260 25,077

6,136 259,473

(1,826)

(1,826)

6,150

11,738 17,888

(7,218)

(7,218)

15,328 97

4,491 19,916

(2,191)

(2,191)

19,688

$	5,811	$	(20,790)	$	(4,348)	$	(1,826)	$	(7,218)	$	(2,191)

(Continued)

Page 91

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, 2018

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

College Credit Exam Incentives

$
7,540

7,540

Results-based Funding

$
245,109

245,109

Other State Projects

$
1,219

1,219

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

246,704	1,769

246,704	1,769

Excess (deficiency) of revenues over expenditures	7,540	(1,595)	(550)

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances	7,540	(1,595)	(550)

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	7,540	$	(1,595)	$	(550)

Page 92

Community Food Service	Civic Center	School

Auxiliary Operations

Extracurricular Activities Fees
Tax Credit	Fingerprint

$	358,044	$	19,638	$	306,750	$	229,396	$	474,562	$	501

191,751 549,795

7,629

550,173 13,314 571,116

(21,321)

19,638	306,750

107,851 620

19,000	60,000

156,573

19,000	325,044

638	(18,294)

229,396

244,040

244,040

(14,644)

474,562

141,119 334,876 12,415

595 489,005

(14,443)

501

1,503

1,503

(1,002)

2,500 2,500

(21,321)

57,711

638	(18,294)

29,881	143,149

(14,644)

237,743

(14,443)	1,498

165,214	28

$	36,390	$	30,519	$	124,855	$	223,099	$	150,771	$	1,526

(Continued)

Page 93

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, 2018

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

Textbooks

$

Insurance Refund

$	3,296

3,296

Grants and Gifts to Teachers

$

Expenditures: Current -
Instruction
Support services - students and staff Support services - administration
Operation and maintenance of plant services
Student transportation services	1,273 Operation of non-instructional services
Capital outlay
Total expenditures	1,273

Excess (deficiency) of revenues over expenditures	2,023

Other financing sources (uses): Transfers in
Total other financing sources (uses)

Changes in fund balances	2,023

Fund balances, beginning of year, as restated	11	255	40

Increase (decrease) in reserve for prepaid items

Fund balances, end of year	$	11	$	2,278	$	40

Page 94

Totals

$         1,396,817 1,322,765 574,848 3,294,430

1,716,988 700,892 104,346 79,000 1,273 706,746 75,331 3,384,576

(90,146)

2,500 2,500

(87,646)

759,714

19,688

$	691,756

Page 95

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, 2018

Classroom Site

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

Budget	Actual

$                                    $                3,905 960,905

964,810

Variance -Positive (Negative)

$                3,905 960,905

964,810

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

1,022,858

1,022,858

(1,022,858)

872,270 8,790

881,060

83,750

150,588 (8,790)

141,798

1,106,608

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	(1,022,858)	83,750	1,106,608

Fund balances, beginning of year, as restated	13,482	13,482

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(1,022,858)	$	97,232	$	1,120,090

Page 96

Instructional Improvement

Budget	Actual

Variance -Positive (Negative)

Structured English Immersion

Budget	Actual

Variance -Positive (Negative)

$	$		725	$	725	$	$	$ 90,267                           90,267

90,992	90,992

75,000

75,000

(75,000)

(75,000)

8,073 68,307 76,446

152,826

(61,834)

(61,834)

(8,073) 6,693 (76,446)

(77,826)

13,166

13,166

164	(164)

164	(164)

(164)	(164)

(164)	(164)

112,200	112,200

$	(75,000)	$	50,366	$	125,366	$	$	(164)	$	(164)

(Continued)

Page 97

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, 2018

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

Student Success

Non-GAAP Budget	Actual

$	$	36

36

Variance -Positive (Negative)

$	36

36

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	36	36

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	36	36

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	36	$	36

Page 98

Title I Grants	Professional Development and Technology Grants

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

114,779 114,779

89,599

39,057 128,656

(13,877)

(13,877)

114,779 114,779

(89,599)

(39,057) (128,656)

(13,877)

(13,877)

1 1

12,935 7,856

20,791

(20,790)

(20,790)

1 1

(12,935) (7,856)

(20,791)

(20,790)

(20,790)

19,688	19,688

$	$	5,811	$	5,811	$	$	(20,790)	$	(20,790)

(Continued)

Page 99

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, 2018

Title IV Grants

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

Excess (deficiency) of revenues over expenditures

4,348

4,348

(4,348)

(4,348)

(4,348)

(4,348)

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	(4,348)	(4,348)

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	(4,348)	$	(4,348)

Page 100

Special Education Grants

Budget	Actual

Variance -Positive (Negative)

Vocational Education

Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	$

257,647 257,647

228,260 25,077

6,136 259,473

(1,826)

(1,826)

257,647 257,647

(228,260) (25,077)

(6,136) (259,473)

(1,826)

(1,826)

10,670 10,670

6,150

11,738 17,888

(7,218)

(7,218)

10,670 10,670

(6,150)

(11,738) (17,888)

(7,218)

(7,218)

$	$	(1,826)	$	(1,826)	$	$	(7,218)	$	(7,218)

(Continued)

Page 101

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, 2018

State Vocational Education

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

Budget	Actual

$	$
17,725

17,725

Variance -Positive (Negative)

$
17,725

17,725

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

15,328 97

4,491 19,916

(2,191)

(15,328) (97)

(4,491) (19,916)

(2,191)

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	(2,191)	(2,191)

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	(2,191)	$	(2,191)

Page 102

College Credit Exam Incentives

Budget	Actual

Variance -Positive (Negative)

Results-based Funding

Budget	Actual

Variance -Positive (Negative)

$	$		$	$ 7,540                             7,540

$	$
245,109	245,109

7,540	7,540	245,109	245,109

246,704

246,704

(246,704)

(246,704)

7,540	7,540

7,540	7,540

(1,595)

(1,595)

(1,595)

(1,595)

$	$	7,540	$	7,540	$	$	(1,595)	$	(1,595)

(Continued)

Page 103

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, 2018

Other State Projects

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

Budget	Actual

$	$
1,219

1,219

Variance -Positive (Negative)

$
1,219

1,219

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

1,769	(1,769)

1,769	(1,769)

(550)	(550)

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	(550)	(550)

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	(550)	$	(550)

Page 104

School Plant

Non-GAAP Budget	Actual

Variance -Positive (Negative)

Food Service

Budget	Actual

Variance -Positive (Negative)

$	$	10,778	$	10,778	$	$	358,044	$	358,044

191,751 10,778	10,778	549,795

191,751 549,795

7,629	(7,629)

50,000 50,000

(50,000)

(50,000)

2,445                           47,555 2,445                           47,555

8,333	58,333

8,333	58,333

575,000

575,000

(575,000)

(575,000)

550,173 13,314 571,116

(21,321)

(21,321)

24,827 (13,314) 3,884

553,679

553,679

17,700	17,700	57,711	57,711

$	(50,000)	$	26,033	$	76,033	$	(575,000)	$	36,390	$	611,390

(Continued)

Page 105

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, 2018

Civic Center

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

Budget	Actual

$	$	19,638

19,638

Variance -Positive (Negative)

$	19,638

19,638

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

50,000

50,000

(50,000)

19,000	31,000

19,000	31,000

638	50,638

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	(50,000)	638	50,638

Fund balances, beginning of year, as restated	29,881	29,881

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(50,000)	$	30,519	$	80,519

Page 106

Community School

Budget	Actual

Variance -Positive (Negative)

Auxiliary Operations

Budget	Actual

Variance -Positive (Negative)

$	$	306,750	$	306,750	$	$	229,396	$	229,396

306,750	306,750	229,396	229,396

107,851 620

(107,851)
(620)	600,000	244,040	355,960

60,000	(60,000)

300,000	156,573	143,427

300,000

(300,000)

(300,000)

325,044

(18,294)

(18,294)

(25,044)

281,706

281,706

600,000

(600,000)

(600,000)

244,040

(14,644)

(14,644)

355,960

585,356

585,356

143,149	143,149	237,743	237,743

$	(300,000)	$	124,855	$	424,855	$	(600,000)	$	223,099	$	823,099

(Continued)

Page 107

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, 2018

Extracurricular Activities Fees Tax Credit

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

Budget	Actual

$	$	474,562

474,562

Variance -Positive (Negative)

$	474,562

474,562

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

141,119 334,876 12,415

595 489,005

(14,443)

(141,119) (334,876) (12,415)

(595) (489,005)

(14,443)

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances

Fund balances, beginning of year, as restated

(14,443)

165,214

(14,443)

165,214

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	150,771	$	150,771

Page 108

Gifts and Donations

Non-GAAP Budget	Actual

Variance -Positive (Negative)

Fingerprint

Budget	Actual

Variance -Positive (Negative)

$	$	146,824	$	146,824	$	$	501	$	501

146,824	146,824	501	501

100,000

100,000

(100,000)

43,601 62,616 33,954

48,059 188,230

(41,406)

(43,601) 37,384 (33,954)

(48,059) (88,230)

58,594

5,000

5,000

(5,000)

1,503	3,497

1,503	3,497

(1,002)	3,998

2,500	2,500

2,500	2,500

(100,000)	(41,406)	58,594	(5,000)	1,498	6,498

132,196	132,196	28	28

$	(100,000)	$	90,790	$	190,790	$	(5,000)	$	1,526	$	6,526

(Continued)

Page 109

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, 2018

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

Insurance Proceeds

Non-GAAP Budget	Actual

$	$	42

42

Variance -Positive (Negative)

$	42

42

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

5,000

5,000

(5,000)

11,628

11,628

(11,586)

(6,628)

(6,628)

(6,586)

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

12,629                           12,629 12,629                           12,629

Changes in fund balances	(5,000)	1,043	6,043

Fund balances, beginning of year, as restated	3,029	3,029

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	(5,000)	$	4,072	$	9,072

Page 110

Textbooks

Budget	Actual

Variance -Positive (Negative)

Litigation Recovery

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$	$	$	$	$	628	$	628

628	628

5,000	5,000	5,000	5,000

5,000	5,000	5,000	5,000

(5,000)

(5,000)

5,000	(5,000)

5,000	(5,000)

628	5,628

628	5,628

11	11	4,690	4,690

$	(5,000)	$	11	$	5,011	$	(5,000)	$	5,318	$	10,318

(Continued)

Page 111

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, 2018

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

Indirect Costs

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

Excess (deficiency) of revenues over expenditures

25,000	25,000

25,000	25,000

(25,000)	25,000

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

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

Fund balances, beginning of year, as restated

Increase (decrease) in reserve for prepaid items

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

Page 112

Insurance Refund

Budget	Actual

Variance -Positive (Negative)

Grants and Gifts to Teachers

Budget	Actual

Variance -Positive (Negative)

$	$	3,296	$	3,296	$	$	$

3,296	3,296

10,000	10,000

5,000	1,273	3,727

5,000	1,273

(5,000)	2,023

(5,000)	2,023

3,727	10,000	10,000

7,023	(10,000)	10,000

7,023	(10,000)	10,000

255	255	40	40

$	(5,000)	$	2,278	$	7,278	$	(10,000)	$	40	$	10,040

(Continued)

Page 113

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, 2018

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

Advertisement

Non-GAAP Budget	Actual

$	$	3,427

3,427

Variance -Positive (Negative)

$	3,427

3,427

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

2,953	(2,953)

2,953	(2,953)

474	474

Other financing sources (uses): Transfers in
Insurance recoveries
Total other financing sources (uses)

Changes in fund balances	474	474

Fund balances, beginning of year, as restated	906	906

Increase (decrease) in reserve for prepaid items

Fund balances (deficits), end of year	$	$	1,380	$	1,380

Page 114

Totals

Non-GAAP Budget	Actual

Variance -Positive (Negative)

$                                    $         1,558,552 1,322,765
574,848 3,456,165

$         1,558,552 1,322,765 574,848 3,456,165

1,072,858 775,000

50,000 10,000 875,000 50,000 2,832,858

(2,832,858)

1,760,589 763,508 141,253 79,000 12,901 706,746 125,835 3,589,832

(133,667)

(687,731) 11,492 (141,253) (29,000) (2,901) 168,254 (75,835) (756,974)

2,699,191

2,500	2,500 12,629                           12,629 15,129                           15,129

(2,832,858)	(118,538)	2,714,320

918,235

19,688

918,235

19,688

$	(2,832,858)	$	819,385	$	3,652,243

Page 115

(This page intentionally left blank)

Page 116

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.

Page 117

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUND YEAR ENDED JUNE 30, 2018

Debt Service

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

Budget	Actual

$                                    $                6,858 1,148,487
191,800 1,347,145

Variance -Positive (Negative)

$                6,858 1,148,487 191,800 1,347,145

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

Changes in fund balances

675,000 540,000 1,215,000

(1,215,000)

675,000 587,550 1,262,550

84,595

(47,550) (47,550)

1,299,595

Fund balances, beginning of year	124,157	124,157

Fund balances (deficits), end of year	$	(1,215,000)	$	208,752	$	1,423,752

Page 118

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.

Page 119

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2018

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

Unrestricted Capital Outlay

$            106,907 7,294
56,949 29,117
$	200,267

Adjacent Ways

$            232,546 3,725

$	236,271

Gifts and Donations -Capital

$	673

$	673

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	1,390	$	$ Construction contracts payable
Due to other funds
Total liabilities	1,390

Deferred inflows of resources: Unavailable revenues - property taxes

Fund balances (deficits): Nonspendable Restricted
Unassigned
Total fund balances

5,783

29,117 163,977

193,094

2,807

233,464	673

233,464	673

Total liabilities, deferred inflows of resources
and fund balances	$	200,267	$	236,271	$	673

Page 120

Emergency Deficiencies
Condemnation	Correction

Building Renewal Grant

New School
Facilities	Totals

$	23	$	3	$	$

$	23	$	3	$	$

33	$	340,185 11,019 56,949 29,117
33	$	437,270

$	$	$		$ 15,959
87,491 103,450

$	 1,390 15,959 87,491
104,840

8,590

23	3
(103,450) 23	3	(103,450)

29,117 33	398,173
(103,450) 33	323,840

$	23	$	3	$	$	33	$	437,270

Page 121

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, 2018

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

Unrestricted Capital Outlay

$	 17,441 358,808 180,246 556,495

Adjacent Ways

$                1,690 231,257

232,947

Gifts and Donations -Capital

$	7

7

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

143,648

66,604 23,364 233,616

Changes in fund balances

Fund balances (deficits), beginning of year

322,879

(158,902)

232,947	7

517	666

Increase (decrease) in reserve for prepaid items	29,117

Fund balances (deficits), end of year	$	193,094	$	233,464	$	673

Page 122

Emergency Deficiencies
Condemnation	Correction

Building Renewal Grant

New School
Facilities	Totals

$	$	$	$	$	 19,138 590,065 180,246 789,449

103,494

103,494

(103,494)

247,142

66,604 23,364 337,110

452,339

23	3	44	33	(157,616)

29,117

$	23	$	3	$	(103,450)	$	33	$	323,840

Page 123

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, 2018

Unrestricted Capital Outlay

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

Budget	Actual

$	$	 17,441 358,808 180,246 556,495

Variance -Positive (Negative)

$	 17,441 358,808 180,246 556,495

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

Changes in fund balances

276,364

66,604 23,364 366,332

(366,332)

143,648

66,604 23,364 233,616

322,879

132,716

132,716

689,211

Fund balances (deficits), beginning of year

Increase (decrease) in reserve for prepaid items

(158,902)

29,117

(158,902)

29,117

Fund balances (deficits), end of year	$	(366,332)	$	193,094	$	559,426

Page 124

Adjacent Ways

Budget	Actual

Variance -Positive (Negative)

Gifts and Donations - Capital

Budget	Actual

Variance -Positive (Negative)

$	$	    1,690	$ 231,257

1,690	$	$	7	$	7 231,257

232,947	232,947	7	7

243,764

243,764

243,764	50,000	50,000

243,764	50,000	50,000

(243,764)	232,947	476,711	(50,000)	7	50,007

517	517	666	666

$	(243,764)	$	233,464	$	477,228	$	(50,000)	$	673	$	50,673

(Continued)

Page 125

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, 2018

Condemnation

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

Budget	Actual

$	$

Variance -Positive (Negative)

$

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

Changes in fund balances

Fund balances (deficits), beginning of year	23	23

Increase (decrease) in reserve for prepaid items

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

Page 126

Emergency Deficiencies Correction	Building Renewal Grant

Variance -Positive
Budget	Actual	(Negative)	Budget

Variance -Positive
Actual	(Negative)

$	$	$	$	$	$

103,494

103,494

(103,494)

(103,494)

(103,494)

(103,494)

3	3	44	44

$	$	3	$	3	$	$	(103,450)	$	(103,450)

(Continued)

Page 127

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, 2018

New School Facilities

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

Budget	Actual

$	$

Variance -Positive (Negative)

$

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

Changes in fund balances

Fund balances (deficits), beginning of year	33	33

Increase (decrease) in reserve for prepaid items

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

Page 128

Totals

Budget	Actual

Variance -Positive (Negative)

$	$	 19,138	$ 590,065 180,246 789,449

19,138 590,065 180,246 789,449

570,128

66,604 23,364 660,096

(660,096)

247,142

66,604 23,364 337,110

452,339

322,986

322,986

1,112,435

(157,616)

29,117

(157,616)

29,117

$	(660,096)	$	323,840	$	983,936

Page 129

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Page 130

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.

Page 131

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2018

ASSETS
Cash and investments Total assets

Student Activities

$            130,502 $            130,502

Employee Withholding

$                4,654 $                4,654

Totals

$            135,156 $            135,156

LIABILITIES
Deposits held for others Due to student groups
Total liabilities

$		$ 130,502
$	130,502	$

4,654           $                4,654 130,502
4,654	$	135,156

Page 132

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS YEAR ENDED JUNE 30, 2018

Beginning
Balance	Additions	Deductions

Ending Balance

STUDENT ACTIVITIES

Assets

Cash and investments

Total assets

Liabilities

Due to student groups

Total liabilities

$	103,938	$

$	103,938	$

$	103,938	$

$	103,938	$

460,516	$

460,516	$

460,516	$

460,516	$

433,952	$

433,952	$

433,952	$

433,952	$

130,502

130,502

130,502

130,502

EMPLOYEE WITHHOLDING

Assets

Cash and investments

Total assets

Liabilities

Deposits held for others

Total liabilities

$	4,862	$	3,455	$	3,663	$	4,654

$	4,862	$	3,455	$	3,663	$	4,654

$	4,862	$	3,455	$	3,663	$	4,654

$	4,862	$	3,455	$	3,663	$	4,654

TOTAL AGENCY FUNDS

Assets

Cash and investments

Total assets

Liabilities

Deposits held for others Due to student groups

Total liabilities

$	108,800	$

$	108,800	$

$		4,862	$ 103,938

$	108,800	$

463,971	$

463,971	$

3,455	$ 460,516

463,971	$

437,615	$

437,615	$

3,663	$ 433,952

437,615	$

135,156

135,156

4,654 130,502

135,156

Page 133

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Page 134

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 tomake 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.) Proposition117, 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.

Page 135

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Page 136

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

2018

$      13,123,724 1,405,612
(12,144,828) $	2,384,508

2013

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

2017

$      12,982,690 849,448
(12,518,035) $	1,314,103

2012

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

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

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.

Page 137

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

2018

$         9,897,639 1,937,400 2,086,324 1,754,369 656,731 742,609 637,043 17,712,115

2017

$         9,324,714 1,698,074 2,145,503 1,738,247 669,216 945,803 659,885 17,181,442

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

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

527,338 587,063 42,414 1,644,495 102,690 2,904,000

729,098 941,811 58,618 1,083,363 32,980 2,845,870

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

Net (Expense)/Revenue	$	(14,808,115)	$	(14,335,572)	$	(14,879,157)	$	(14,527,771)	$	(13,815,081)

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)

Page 138

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

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

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

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

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

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

Net (Expense)/Revenue	$	(13,071,251)	$	(8,631,639)	$	(11,359,211)	$	(9,831,544)	$	(11,236,563)

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

(Concluded)

Page 139

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

2018	2017	2016	2015	2014

Net (Expense)/Revenue	$	(14,808,115)	$	(14,335,572)	$	(14,879,157)	$	(14,527,771)	$     (13,815,081)

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

6,681,968 1,165,152 598,655 30,270 441,925 6,915,326 15,833,296

7,000,432 158,718

25,268 414,860 6,416,947 14,016,225

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

Changes in Net Position	$	1,025,181	$	(319,347)	$	(827,580)	$	(1,187,588)	$	(336,654)

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)

Page 140

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

2013	2012	2011	2010	2009

Net (Expense)/Revenue	$	(13,071,251)	$	(8,631,639)	$	(11,359,211)	$	(9,831,544)	$     (11,236,563)

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

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

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

Changes in Net Position	$	(1,438,700)	$	2,379,919	$	(482,942)	$	1,117,477	$	632,429

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 year 2008-09.

(Concluded)

Page 141

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

2018

$	2,411,909	$

2017

2,461,754	$

2016

1,764,369	$

2015

2,316,261	$

2014

2,474,660

Total General Fund	 $	2,411,909   $	2,461,754   $	1,764,369   $	2,316,261   $	2,474,660 

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

$		48,805	$ 1,331,552
(312,809)
$	1,067,548	$

$ 849,448
(158,902) 690,546	$

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

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

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

(Continued)

Page 142

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

2013

$		$ 2,495,796

$	2,495,796	$

$	1,527,268	$

$	1,527,268	$

2012

$ 3,707,704

3,707,704	$

1,468,385	$

1,468,385	$

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

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)

Page 143

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
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

2018

$	574,897	$ 191,751 766,648

5,864,154 270,653

1,052,112 7,186,919

8,421,511 441,925 356,733 30,270 1,247,165 10,497,604
$	18,451,171	$

2017

715,129	$ 224,829 939,958

5,509,587 23,539

907,360 6,440,486

7,215,838 414,860 357,290 25,268 1,491,086 9,504,342
16,884,786	$

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

(Continued)

Page 144

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) 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

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	$

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

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 year 2008-09.

(Concluded)

Page 145

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

2018	2017	2016	2015	2014

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

$	9,351,122	$ 1,947,450 2,002,160 1,717,600
544,254 706,785 705,582

637,043 832,992

$	18,444,988	$

$	320,727	$

8,420,627	$ 1,641,512 2,053,271 1,685,755
590,594 911,093 491,841

659,885 753,170

17,207,748	$

235,619	$

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

Debt service as a percentage of

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

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

(Continued)

Page 146

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

2013	2012	2011	2010	2009

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

$          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	$

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

Debt service as a percentage of

noncapital expenditures	8%	8%	9%	10%	9%

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

(Concluded)

Page 147

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

2018	2017	2016	2015	2014

Excess (deficiency) of

revenues over expenditures	$	6,183	$	(322,962)	$	(967,925)	$	(83,107)	$	(201,224)

Other financing sources (uses): Capital lease agreements Transfers in
Transfers out Insurance Recoveries
Total other financing sources (uses)

216,295 2,500
(2,500) 12,629
228,924

172,059 204,286 (204,286)
33,997

206,056

413,000

413,000

Changes in fund balances	$	235,107	$	(116,906)	$	(554,925)	$	(83,107)	$	(201,224)

2013	2012	2011	2010	2009

Excess (deficiency) of

revenues over expenditures	$	(1,153,025)	$	(3,548,154)	$	(11,692,968)	$	(173,890)	$	180,493

Other financing sources (uses): Issuance of school improvement bonds Premium on sale of bonds
Transfers in Transfers out
Total other financing sources (uses)

1,684

(1,684)

5,702

(5,702)

16,805

(16,805)

14,000,000 200,151 37,720
(37,720)

14,200,151

205,748

(205,748)

Changes in fund balances	$	(1,153,025)	$	(3,548,154)	$	(11,692,968)	$	14,026,261	$	180,493

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

Page 148

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	2018	2017	2016	2015	2014

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

$	 8,260,222	$ 17,442,233
140,542,386 17,950,652 56,882

$	184,252,375	$

8,979,496	$ 17,900,204
136,891,998 16,851,329 56,506

180,679,533	$

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

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 1,948,672,789

9%

5.76

$ 1,951,500,164

9%

5.23

$ 1,790,361,226

10%

5.30

$ 1,721,553,223

10%

5.03

$ 1,728,748,371

10%

5.00

Fiscal Year

Class	2013	2012	2011	2010	2009

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Certain Government Property Improvements

Total

$	 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	$

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

Gross Full Cash Value

Ratio of Net Limited Assessed Value to Gross Full Cash Value

Total Direct Rate

$ 1,861,329,633

10%

4.15

$ 2,003,464,671

10%

3.80

$ 2,235,227,040

10%

3.35

$ 2,324,387,909

9%

3.18

$ 2,309,601,776

9%

4.37

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.

Page 149

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13

NET FULL CASH ASSESSED VALUE OF TAXABLE PROPERTY BY CLASS LAST TEN FISCAL YEARS

Fiscal Year

Class	2018	2017	2016	2015	2014

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 8,292,720     $ 18,085,076
145,543,278 18,698,741 56,882

$	190,676,697     $

$     1,948,672,789     $

9,126,623     $ 18,304,844
146,065,495 18,063,663 58,174

191,618,799     $

1,951,500,164     $

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

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value Estimated Net Full Cash Value
Total Direct Rate

10% 1,754,806,269
5.76

10% 1,761,733,686
5.23

10% 1,592,380,593
5.30

10% 1,522,842,039
5.03

10% 1,535,270,185
5.00

Fiscal Year

Class	2013	2012	2011	2010	2009

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Historical Property

Total

Gross Full Cash Value

$	 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     $

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

2,309,601,776

Ratio of Net Full Cash Assessed Value to Gross Full Cash Value Estimated Net Full Cash Value
Total Direct Rate

10% 1,661,944,889
4.15

10% 1,814,293,135
3.80

10% 2,055,576,149
3.35

10% 2,157,295,115
3.18

10% 2,147,600,249
4.37

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.

Page 150

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PROPERTY TAX ASSESSMENT RATIOS LAST TEN FISCAL YEARS

Fiscal Year

Class	2018	2017	2016	2015	2014

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

18 %	18 %	19 %	19 %	20 % 15	15	16	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
15	14	15	16	15

Fiscal Year

Class	2013	2012	2011	2010	2009

Commercial, Industrial, Utilities and Mining Agricultural and Vacant
Residential (Owner Occupied) Residential (Rental)
Railroad, Private Cars and Airlines

20 %	20 %	21 %	22 %	23 % 16	16	16	16	16
10                       10                       10                      10                      10 10                       10                       10                      10                      10
15	15	17	18	20

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.

Page 151

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

2018	0.49	5.16 2017	0.50	4.99 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

Library

0.51 0.52 0.52 0.44 0.38 0.35 0.35 0.31 0.26
0.34

District

0.31 0.33 0.31 0.30 0.26 0.26 0.26 0.26 0.26
0.29

District

1.39 1.37 1.37 1.33 1.29 1.17 1.11 1.08 1.08
1.14

Assistance

0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04
0.04

Water	Tucson	JTED

0.14	1.43	0.05 0.14	1.60	0.05 0.14	1.60	0.05 0.14	1.46	0.05 0.14	1.43	0.05 0.10	1.26	0.05 0.10	1.16	0.05 0.10	0.96	0.05 0.10	0.93	0.05
0.10	0.96	0.05

F.D.	Primary

1.90	4.23 1.20	4.22 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

Secondary	Total

1.53	5.76 1.01	5.23 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

Source: The source of this information is the Property Tax Rates and Assessed Values, Arizona Tax Research Foundation.

Page 152

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL PROPERTY TAXPAYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2018	2009
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 18152 Galiuro TR
Qwest Communications Landmark Title - TR 18300 MPL Communications Inc Macco LLC
Reay Gordon & Lois Family TR Tucson Electric Power
49er Country Club Private Individual Private Individual Private Individual Private Individual

$	 3,052,871 1,934,093 1,068,603
529,195 474,553 431,875 406,958 368,216 313,524 309,440

$	8,889,328

1.66	% $	% 1.05                          1,951,589                    0.82 0.58                          3,269,225                    1.37 0.29
0.26
0.23	2,736,189	1.15 0.22
0.20
0.17	639,579	0.27 0.17
2,614,012	1.10 518,184	0.22 436,017	0.18 305,201	0.13 292,458	0.12 241,863	0.10
4.83	%	$	13,004,317	5.46 %

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.

Page 153

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

2018	$	8,503,666 2017                      7,279,090 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

$      8,352,798                    98.23 % 7,100,175                    97.54 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

N/A 147,971 202,503 202,737 240,969 209,077 216,370 217,813 228,413
344,460

$      8,352,798                      98.23 % 7,248,146                      99.57 7,272,206                      99.87 6,561,506                      99.92 6,601,458                      99.80 5,997,338                      99.87 5,927,414                      99.97 5,813,366                      99.98 5,532,308                      99.98
7,225,362	100.00

Source: The source of this information is the 2018 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.

Page 154

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

2018	$ 9,910,000 2017            10,585,000 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

$	 225,417 124,157 811,536 782,653 853,522 914,438 890,156 776,359 459,928 721,445

9,684,583 10,460,843 10,398,464 11,002,347 11,481,478 12,455,562 12,899,844 13,223,641 14,700,072 1,548,555

0.50 %	$	692 0.54                            747 0.58                            743 0.64                            786 0.66                            820 0.67                            890 0.64                            921 0.59                            945 0.63                         1,050 0.07                            155

$ 1,341,669 1,283,366 1,239,477

$ 11,251,669 11,868,366 12,449,477 11,785,000 12,335,000 13,370,000 13,790,000 14,000,000 15,160,000 2,270,000

0.58 %	$	804	N/A % 0.61                            848                       0.03 0.70                            889                       0.03 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 0.10                            227                       0.01

Source: The source of this information is the District's financial records. Note: N/A indicates that the information is not available.

Page 155

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2018

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

$ 1,081,642,140 None 974,150,186

2.42 %      $     26,175,740 2.42                            None 5.93                   57,767,106 83,942,846

Direct:

Tanque Verde Unified School District No. 13	100.00	11,251,669

Total Direct and Overlapping Governmental Activities Debt	$	95,194,515

DIRECT AND OVERLAPPING GENERAL BONDED DEBT RATIOS

Net Direct General Obligation Bonded Debt

As a Percentage of Net Limited Assessed Valuation	5.26 %

Net Direct and Overlapping General Bonded Debt

Per Capita	$	6,688

As a Percentage of Net Limited Assessed Valuation                                                     50.81 % As a Percentage of Gross Full Cash Value                                                                       4.80 %

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, 2017 is presented for the overlapping governments as this is the most recent available information.

Page 156

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 2018: Net full cash assessed valuation	$	190,676,697
Debt limit (20% of assessed value)	38,135,339

Total Legal Debt Margin Calculation for Fiscal Year 2018: Net full cash assessed valuation	$	190,676,697 Debt limit (30% of assessed value)                                 57,203,009

Debt applicable to limit Legal debt margin

9,910,000 $	28,225,339

Debt applicable to limit (total) Legal debt margin

9,910,000 $	47,293,009

Fiscal Year Ended June 30

2018	2017	2016	2015	2014

Debt Limit	$	57,203,009	$	57,485,640	$	52,786,271	$	50,766,107	$	51,212,925

Total net debt applicable to limit	9,910,000	10,585,000	11,210,000	11,785,000	12,335,000

Legal debt margin	$	47,293,009	$	46,900,640	$	41,576,271	$	38,981,107	$	38,877,925

Total net debt applicable to the limit

as a percentage of debt limit	17%	18%	21%	23%	24%

2013	2012	2011	2010	2009

Debt Limit	$	55,463,418	$	60,344,473	$	68,252,706	$	71,729,612	$	71,530,178

Total net debt applicable to limit	13,370,000	13,790,000	14,000,000	15,160,000	2,270,000

Legal debt margin	$	42,093,418	$	46,554,473	$	54,252,706	$	56,569,612	$	69,260,178

Total net debt applicable to the limit

as a percentage of debt limit	24%	23%	21%	21%	3%

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 outstanding and the statutory debt limit on Class B bonds outstanding. The calculations of the debt margins are presented in detail for the current fiscal year only.
2) Prior to FY17, net bond premium was restricted by amount and not subject to the statutory debt limit. Beginning with FY17, any additional net premium used for capital projects, bond counsel, printing and preparation of offering documents, a financial advisor, paying agent costs or to pay down debt is counted against both debt limits with the exception of amounts of premium deposited into the Debt Service Fund or a refunding escrow to pay interest payments.

Page 157

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

2017	1,026,099	$ 2016	1,013,103 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

N/A	$	N/A 40,182,115                       39,541 38,922,402                       38,536 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

4.5	%	14,000 4.9                            14,000 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

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 2008 through 2010 is the University of Arizona, Eller College of Management, Economic and Business Research Center. For 2011 through 2017, the source of the information is the Arizona Office of Employment and Population Statistics. N/A indicates that the information is not available.

Page 158

TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR

2018	2009

Percentage of Total
Employer	Employees	Employment

Percentage of Total
Employees	Employment

University of Arizona Davis Monthan AFB Raytheon Missile Systems Pima County
Banner Health City of Tucson
Wal-Mart Stores, Inc. Tucson Medical Center
Veterans Health Administration Carondelet Health Network State of Arizona
Tucson Unified School District Fort Huachuca

Total

13,160	3.67     % 10,630	2.97 10,620	2.96
6,710	1.87 6,210	1.73 4,370	1.22 4,200	1.17 3,820	1.07 3,240	0.90 3,160	0.88

66,120	18.44     %

10,575	2.37 % 7,509	1.68
11,539                          2.58 6,235                          1.40

5,635	1.26 6,715	1.50 3,184	0.71

9,329	2.09 7,227	1.62 6,463	1.45

74,411	16.66 %

Total employment	358,240	446,600

Source: The source of this information is Arizona Daily Star - Star 200 and the 2017 Arizona COG/MPO Employer Database, employers with 5 or more employees.

Page 159

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

2018	2017	2016	2015	2014

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

2                            4                            4                            4                            4 4                            4                            4                            4                            4 4                            2                            2                            2                            1 10                          10                          10                          10                            9

129                        127                        133                        132                        128 10                            9                            7                            1                            1 47                          55                          55                          51                          49 186                        191                        195                        184                        178

4	4	4	3	3 3	1	1	1	1 7	5	5	4	4

85                          81                          81                          78                          78 85                          81                          81                          78                          78

288	287	291	276	269

(Continued)

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS

2013	2012	2011	2010	2009

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 1	1	1	1	1 9	9	9	9	9

124                        116                        109                        105                        103 1                            1                            1                            1                            1 47                          46                          44                          40                          37 172                        163                        154                        146                        141

3	3	3	3	3 1	1	1	1	1 4	4	4	4	4

78                          77                          77                          74                          71 78                          77                          77                          74                          71

263	253	244	233	225

Source: The source of this information is District personnel records.

(Concluded)

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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

2018	2,026 2017	2,028 2016	1,994 2015	1,997 2014	1,915 2013	1,847 2012	1,687 2011	1,583 2010	1,500 2009	1,402 2008	1,299

$     16,269,371	$	8,031 15,302,852                7,547 15,487,360                7,767 14,982,054                7,502 14,364,038                7,501 13,551,614                7,337 12,876,311                7,633 12,107,202                7,648 11,024,342                7,350 11,918,040                8,501 11,938,098                9,190

6.41 %	$ (2.83)
3.53 0.02 2.23 (3.87) (0.20) 4.06
(13.54) (7.50) #DIV/0!

17,712,115	$	8,743 17,181,442                8,474 17,416,743                8,735 17,129,164                8,577 16,068,026                8,391 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

3.18 %	186	10.9	14.0     % (2.99)	191	10.6	15.0
1.83                   195                10.2                   15.0 2.23                   184                10.9                   15.0 1.86                   178                10.8                   16.0 (6.40)                  172                10.7                   15.9 0.65                   163                10.3                   14.1 10.76                    154                10.3                   41.8 (14.45)                  146                10.3                   12.0 (9.11)                  141                  9.9                     9.6
#DIV/0!

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

Note: Operating expenditures are total expenditures less debt service and capital outlay.

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TANQUE VERDE UNIFIED SCHOOL DISTRICT NO. 13 CAPITAL ASSETS INFORMATION LAST TEN FISCAL YEARS

Fiscal Year Ended June 30

2018	2017	2016	2015	2014	2013	2012	2011	2010	2009

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 1,089

5 57,124 450 367

11 94,194 650 576

4 10,178

1 14,425

1 24

1 4 3 3

23 103,660 1,100 1,089

5 57,124 450 367

11 94,194 650 576

4 10,178

1 14,425

1 23

1 4 3 3

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 98,371               98,371 1,100                 1,100 1,130                 1,138

1                        1 57,124               57,124 450                    450 376                    371

1                        1 94,194               94,194 650                    650 555                    479

4                        4 10,178               10,178

1                        1 14,425               14,425

1                        1 17                      17

1	1 4	4 3	3 3	3

2                        2                        2                        2                        2 98,371               98,371               98,371               98,371               98,371 1,100                 1,050                 1,050                 1,000                 1,000 1,087                 1,040                 1,025                    975                    924

1                        1                        1                        1                        1 57,124               57,124               57,443               57,443               57,443 450                    450                    370                    370                    370 367                    350                    340                    310                    308

1                        1                        1                        1                        1 94,194               94,194               17,100               17,100               17,100 650                    650                    230                    230                    230 449                    375                    330                    350                    260

4                        4                        1                        1                        1 10,178               10,718                    758                    758                    758

1                        1                        1                        1                        1 14,425               14,425               40,211               40,211               40,211

1                        1                        1                        1                        1 17                      17                      17                      17                      17

1	1	1	1	1 4	3	2	2	2 3	7	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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