LO RAD FFIC THE We Set the Standard for Good Government COLORADO SCHOOL DISTRICTS FISCAL HEALTH ANALYSIS FISCAL YEARS 2012-2014 in L141THE MISSION OF THE OFFICE OF THE STATE AUDITOR IS TO IMPROVE GOVERNMENT FOR THE PEOPLE OF COLORADO LEGISLATIVE AUDIT COMMITTEE Senator Lucia Guzman – Chair Representative Dan Nordberg – Vice-Chair Senator Chris Holbert Senator Cheri Jahn Senator Tim Neville Representative Dianne Primavera Representative Su Ryden Representative Lori Saine OFFICE OF THE STATE AUDITOR Dianne E. Ray State Auditor Kerri Hunter Deputy State Auditor Crystal Dorsey Gina Faulkner Scott Reid Madeline Beasley Jane Morrison Audit Manager Team Leader Staff Auditors AN ELECTRONIC VERSION OF THIS REPORT IS AVAILABLE AT WWW.STATE.CO.US/AUDITOR A BOUND REPORT MAY BE OBTAINED BY CALLING THE OFFICE OF THE STATE AUDITOR 303.869.2800 PLEASE REFER TO REPORT NUMBER 1539S WHEN REQUESTING THIS REPORT CONTENTS Report Highlights CHAPTER 1 BACKGROUND Roles of the Department and the OSA Legislation Temporary Cash Flow Deficits CHAPTER 2 FINANCIAL RATIOS, INDICATORS & ANALYSIS 1 3 5 7 8 Ratio 1: Asset Sufficiency Ratio (ASR) Ratio 2: Debt Burden Ratio (DBR) Ratio 3: Operating Reserve Ratio (ORR) Ratio 4: Operating Margin Ratio (OMR) Ratio 5: Change in Fund Balance Ratio (CFBR) Trend Analysis Evaluation of School Districts School Districts Missing Two or More Benchmarks Analysis of Per Funded Pupil Revenues and Expenditures Conclusion Colorado Department of Education Response to Analysis 11 12 14 17 20 23 26 27 28 34 36 37 APPENDIX A Understanding the Fiscal Health Ratios and Indicators A-1 APPENDIX B School Districts with Two or More Indicators Adams County Westminster 50 Alamosa County Alamosa RE-11J Arapahoe County Byers 32J Englewood 1 Baca County Pritchett RE-3 Springfield RE-4 B-1 B-3 B-5 B-7 B-9 B-11 CONTENTS Conejos County North Conejos RE-1J South Conejos RE-10 Costilla County Sierra Grande R-30 El Paso County Hanover 28 Manitou Springs 14 Widefield 3 Elbert County Big Sandy 100J Grand County East Grand 2 La Plata County Durango 9-R Lincoln County Karval RE-23 Logan County Frenchman RE-3 Mineral County Creede Moffat County Moffat County RE1 Morgan County Brush RE-2(J) Otero County East Otero R-1 Ouray County Ridgway R-2 Pueblo County Pueblo County Rural 70 Routt County Hayden RE-1 San Juan County Silverton 1 Washington County Arickaree R-2 Weld County Keenesburg RE-3J Pawnee RE-12 B-13 B-15 B-17 B-19 B-21 B-23 B-25 B-27 B-29 B-31 B-33 B-35 B-37 B-39 B-41 B-43 B-45 B-49 B-51 B-53 B-55 B-57 CONTENTS APPENDIX C Map of School Districts with Two or More Indicators C-1 APPENDIX D General Fund Revenue and Expenditures per Funded Pupil D-1 APPENDIX E School District Fiscal Health Data E-1 Glossary F-1 REPORT HIGHLIGHTS FISCAL HEALTH ANALYSIS INFORMATIONAL REPORT, MAY 2015 COLORADO SCHOOL DISTRICTS COLORADO DEPARTMENT OF EDUCATION CONCERN Colorado school districts and the Colorado Department of Education should review the fiscal health analysis and, if any benchmarks are missed over the three year period, determine the cause and take action, as appropriate.   ► ► ► ►  ► ►  ► ► ► KEY FACTS AND FINDINGS This year’s analysis reviewed the trends over the fiscal years ending 2012, 2013, and 2014. In the current year’s analysis of the State’s 178 school districts, 70 missed one or more benchmarks. In the Fiscal Year 2013 analysis, 76 districts missed one or more benchmarks. 1 district missed four benchmarks: o Pueblo County Rural 70 (Pueblo County) 4 districts missed three benchmarks: o Westminster 50 (Adams County) o Alamosa RE-11J (Alamosa County) o Englewood 1 (Arapahoe County) o Silverton 1 (San Juan County) 23 districts missed two benchmarks. 42 districts missed one benchmark. Most missed benchmarks occurred with: The ratio calculating the amount added to the reserves for every $1 in revenue, or the operating margin. The operating margin ratio identifies growth or decline in school districts' reserves over a three-year period. Missing the benchmark for this indicator identifies when a district may be deliberately spending down fund balance to supplement operations or when there is a reduction in state funding without a corresponding decrease in expenditures. The ratio calculating the change in general fund balance from previous to current years. Missing the benchmark for this indicator identifies when a school district’s general fund has reached the lowest point in four years. All 28 school districts missing two or more benchmarks provided explanations for the trends such as the spending down of fund balance due to reductions in state funding. For example: Twenty school districts reported that they have experienced the effects of the reductions in state school finance funding. Nine school districts indicated that they have experienced increases in the cost of maintenance, repairs, and construction in order to maintain or improve facilities. Several school districts reported various internal circumstances that affected their financial health, while others reported higher costs of salaries and benefits and a general sluggish economy. BACKGROUND  The Fiscal Health Analysis performed by the Office of the State Auditor provides a set of financial indicators for each school district.  The analysis examines the most current rolling three-year period for which audited financial statements are available.  Financial indicators can warn of financial stress that may require examination and remedial action by the appropriate parties.  The Fiscal Health Analysis uses five ratios to assess a school district’s financial health. These ratios look at the districts’ following financial indicators: ► ► ► ► ► The adequacy to meet obligations over the three-year period. The revenue coverage of debt service payments. The reserves available to cover future expenses. The amount added to the reserves for every $1 in revenue. The increase or decrease to the reserves in the general fund. FOR FURTHER INFORMATION ABOUT THIS REPORT, CONTACT THE OFFICE OF THE STATE AUDITOR 303.869.2800 - WWW.STATE.CO.US/AUDITOR CHAPTER 1 BACKGROUND This report provides information on the Fiscal Health Analysis of the State’s school districts performed by the Local Government Division of the Office of the State Auditor (OSA). This is the seventh year that the OSA has prepared a Fiscal Health Analysis report of school districts. The Fiscal Health Analysis provides a set of financial indicators for each school district that may be used by the Colorado Department of Education (Department), school districts, local government officials, and citizens to evaluate the financial health of Colorado’s school districts. These financial indicators may require examination and remedial action by the appropriate FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 4 parties. This report provides an analysis of the fiscal years ending June 30, 2012; 2013; and 2014. In Colorado, 178 school districts provide public education to more than 860,000 children enrolled in kindergarten through 12th grade (K-12). Funding for each school district’s total program is provided first by local sources of revenue, primarily through a property tax levy to finance the district’s local share. In limited cases across the state, the property tax resources may fully fund the district’s total program. For most school districts, the General Assembly appropriates additional funding to supplement local revenue in order to fund the district’s program. This additional funding is based on a formula under the Colorado Public School Finance Act that considers, in part, the school district’s annual pupil count, as well as the district’s local share of revenue. In 2010 the General Assembly passed House Bill 10-1369 which required, beginning in Fiscal Year 2011, a reduction in the amount of the annual appropriation to fund the State’s share of total program funding to school districts. This calculation is applied after the total program funding is calculated and is referred to by school districts as the “Negative Factor.” The Negative Factor was intended to reduce funding to school districts in order to assist in balancing the State’s budget. Statutes also require the Department to request a supplemental appropriation that incorporates actual figures, including, but not limited to actual pupil enrollment, assessed valuations, and specific ownership tax revenue. Mid-year adjustments are then made in accordance with statutes. According to Legislative Council, the Negative Factor resulted in reductions to State program funding of approximately $774 million in Fiscal Year 2012, and $1 billion in Fiscal Years 2013 and 2014, respectively. In Fiscal Year 2014, the General Assembly provided more than $3.4 billion to school districts’ programs. The State share includes funding from the general fund and cash funds. The table below shows the State program funding based on final appropriated funds approved by the general assembly for each fiscal year over the last 3 years: 5 FISCAL YEAR STATE FUNDING CHANGE OVER PREVIOUS YEAR PERCENT CHANGE OVER PREVIOUS YEAR 2012 2013 2014 $3,562.8 $3,309.5 $3,480.8 ($200.5) ($253.3) $171.3 (5%) (7%) 5% SOURCE: State of Colorado General Assembly Bill Digest per annual legislative session. ROLES OF THE DEPARTMENT AND THE OSA The Department and the OSA’s Local Government Division (Division) serve different, yet complementary, roles in supporting school districts across Colorado. The Department is responsible for overseeing and monitoring districts, including their financial operations, while the Division is responsible for ensuring that local governments comply with the Local Government Audit Law (Audit Law), as described below. THE DEPARTMENT As the administrative arm of the Colorado State Board of Education, the Department is responsible for overseeing K-12 education on a statewide basis. This responsibility includes supervising many aspects of school district administration and accreditation. Accreditation requires school districts to comply with many factors, such as ensuring that students meet state academic standards and are prepared for postsecondary and workforce success. Accreditation assesses the quality of education and learning in the public schools and administration of school districts. Sections 22-11206 and 209, C.R.S., include a financial component that links the districts’ compliance with statutorily required budget and accounting policies to the Department’s accreditation assessment of Colorado REPORT OF THE COLORADO STATE AUDITOR STATE OF COLORADO FISCAL HEALTH ANALYSIS STATE FUNDING FOR SCHOOL DISTRICT PROGRAMS (IN MILLIONS) FOR THE FISCAL YEAR ENDING JUNE 30, FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 6 school districts. Accreditation also requires compliance with financial and audit requirements. Per Section 22-11-206, C.R.S., each school district must be accredited annually by the State Board of Education. The State Board enters into an accreditation contract with each district’s local board. The Department also considers the OSA Fiscal Health Analysis in the accreditation assessment. Failure to comply with accreditation requirements may result in removal of accreditation and reorganization of the district. There are currently no districts in violation of the financial component of the accreditation contract. For more information on accreditation, see the Department’s website at: http://www.cde.state.co.us/cdefinance/Accreditation.htm. THE OSA’S LOCAL GOVERNMENT DIVISION The OSA’s Local Government Division ensures that Colorado’s local governments, including school districts, provide current financial reports, as required by the Audit Law (Section 29-1-601, et seq., C.R.S.). The Audit Law requires local governments to contract with independent certified public accountants for annual audits of their financial statements. School districts are required to complete their financial statement audits within five months following the end of their fiscal year of June 30, and to submit their audit reports to the Division within 30 days of completion. If a school district cannot meet the deadline, it may file for an extension of up to 60 days. If a district does not submit its audit report by the statutory deadline, the Division has the authority to direct the county treasurer to prohibit the release of all property taxes collected on behalf of the school district until a satisfactory audit is submitted. Once the school district submits its audit report, the Division reviews the report for deficiencies, contacts the auditor or the school district 7 LEGISLATION Commencing July 1, 2010, House Bill 10-1036, known as the “Public School Financial Transparency Act” (Transparency Act), requires school districts to post financial information online such as the annual budget; annual audited financial statements; quarterly financial statements; salary schedules; accounts payable check registers; credit, debit, and purchase card statements; and investment performance reports or statements. All information must be posted within 60 days following completion of or receipt of the applicable report in a downloadable format to allow free public access. The Department monitors compliance with the Transparency Act through the financial accreditation process. House Bill 14-1292, which was passed during the 2014 legislative session, added additional requirements to, and modified existing requirements of, the Transparency Act. The additional requirements require the Department to report information online regarding all districts’ mill levy override revenues beginning with Fiscal Year 2015. Districts are to provide total district and school-site level expenditures on the districts’ individual websites beginning with Fiscal Year 2016 data. The Financial Policies and Procedures Advisory Committee of the Department is required to develop a standard template for expenditures posted on each district’s website. The Department is then required to contract with a vendor to create a website view that translates expenditure information to ensure the greatest degree of clarity and comparability among school sites and school districts by no later than July 1, 2017. Also, as of July 1, 2017, school districts will no longer be required to post certain financial information online such as quarterly financial statements; accounts payable check REPORT OF THE COLORADO STATE AUDITOR for further information (if needed), and prepares a letter to the school district and its auditor if deficiencies are found. A deficiency may be related to noncompliance with statutory requirements or noncompliance with generally accepted accounting principles, such as the requirement that the audit report include both budgetary and actual information for certain funds. FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 8 registers; credit, debit, and purchase card statements; and investment performance reports or statements. TEMPORARY CASH FLOW DEFICITS As part of the Tax Anticipation Note Act (Section 29-15-101, et. seq. C.R.S.), the State Treasurer is authorized to issue tax and revenue anticipation notes (TRANS) to provide interest-free loans to school districts to alleviate temporary cash flow deficits (Section 29-15-112, C.R.S.). TRANS are short-term notes payable from anticipated pledged revenue. Statutes (Section 22-54-110(1)(a)(II), C.R.S.) require school districts to repay the loans by the next June 25th following the date the loan was made. The TRANS issued by the State Treasurer for this purpose are known as the Education Loan Program Tax and Revenue Anticipation Notes (ELP). To participate in the ELP, school district management must obtain approval from its board of directors to submit an application to the State Treasurer. The district must demonstrate to the State Treasurer that a general fund cash deficit will exist, and that the district has the capacity to repay the loan by June 25th. The following table shows Districts that participated in the program anytime during the last 3 years, with a note showing which districts have missed two or more benchmarks as noted in CHAPTER 3 of this report. 9 SCHOOL DISTRICTS AURORA (ADAMS-ARAPAHOE 28J) BOULDER VALLEY RE 2 BRIGGSDALE RE-10 CHERRY CREEK 5 COLORADO SPRINGS 11 COMMERCE CITY 14 CRIPPLE CREEK-VICTOR RE-1 CUSTER COUNTY C-1 DENVER COUNTY 1 DURANGO 9-R1 EAGLE COUNTY RE 50 ESTES PARK (PARK RE-3) GILCREST (WELD RE-1) GUNNISON WATERSHED RE1J HAYDEN RE-11 LAKE COUNTY R-1 (LEADVILLE) MONTEZUMA-CORTEZ RE-1 PLATTE VALLEY RE-7 (WELD) PUEBLO 702 SIERRA GRANDE R-301 SOUTH ROUTT RE-3 SUMMIT RE-1 WINDSOR RE-4 TOTAL LOANS 2012 $3,555 $87,547 $36,019 $13,840 $1,490 $893 $81,875 $15,934 $735 $1,302 $1,168 $915 $450 $325 $2,227 $374 $1,286 $249,935 2013 2014 $1,731 $96,261 $38,122 $17,429 $1,527 $915 $105,961 $8,665 $748 $2,704 $1,004 $1,381 $3,064 $3,000 $263 $2,246 $2,197 $287,218 $4,088 $107,722 $710 $41,244 $8,060 $2,396 $1,127 $512 $125,797 $1,300 $9,694 $1,143 $3,039 $1,316 $1,807 $3,318 $2,950 $8,386 $745 $1,754 $1,366 $751 $329,225 SOURCE: Department of Treasury (Unaudited). 1 School districts with two missed benchmarks. 2 School district with four missed benchmarks. EDUCATION LOAN PROGRAM NOTES ISSUED BY THE STATE TREASURER (IN THOUSANDS) FISCAL YEARS ENDING JUNE 30, 2012 THROUGH 2014 MONTH OF ISSUANCE JULY JANUARY TOTAL LOAN 2012 $100,000 $230,000 $330,000 2013 $125,000 $160,000 $285,000 SOURCE: OSA State of Colorado, Statewide Single Audit, Fiscal Years 2012-2014. 2014 $130,000 $210,000 $340,000 PERCENT CHANGE FROM 2012 15% 23% 15% (42%) (24%) (43%) 54% (39%) 56% 133% 44% 556% 129% (21%) 265% (42%) 32% REPORT OF THE COLORADO STATE AUDITOR OFFICE OF THE STATE AUDITOR SCHOOL DISTRICTS’ PARTICIPATION IN INTEREST FREE STUDENT LOAN PROGRAM (IN THOUSANDS) FISCAL YEARS ENDING JUNE 30, 2012 THROUGH 2014 CHAPTER 2 FINANCIAL RATIOS, INDICATORS & ANALYSIS The Division’s Fiscal Health Analysis is composed of a set of financial indicators by which to assess the financial health of Colorado school districts. The Division developed these fiscal health ratios by researching school district analyses conducted by other states, state agencies, and public accounting firms. These ratios, when tracked over time, offer trend information that can warn of potential financial deterioration in a particular school district, when compared with a standard benchmark. The Fiscal Health Analysis uses a 3-year period to evaluate trends. FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 12 The Fiscal Health Analysis focuses on the areas of highest risk for school districts. Accordingly, the analysis focuses primarily on each school district’s general fund, because this fund accounts for state funding and local property tax revenue received and expended for operations and discretionary items. The analysis also focuses on the school districts’ debt and includes any fund balance deficits. For the purpose of this analysis, we excluded proprietary funds, such as the school lunch program, because school districts can usually address deficits in these funds through increases in charges. The Fiscal Health Analysis uses five ratios to assess school districts’ financial health. Following are general descriptions of the five ratios, together with the associated benchmarks that are indicators of potential financial stress when evaluated over a 3-year period. APPENDIX A contains further information on each ratio, financial indicators, and benchmarks. RATIO 1: ASSET SUFFICIENCY RATIO (ASR) What will this ratio tell me? This ratio shows how much coverage a school district’s general fund total assets has over its current liabilities and provides a good indication as to whether the school district has the ability to pay its bills in the short term. What will a trend in this ratio tell me? An ASR that is trending downward indicates that a school district has decreasing assets, increasing liabilities, or both. This could be due to a timing issue, meaning the school district has incurred more liabilities at the end of the financial period, resulting in increased liabilities as of the balance sheet date. Alternatively, it could mean that the school district has paid off more liabilities at the end of the year, decreasing its assets as of the balance sheet date. 13 The information for this ratio comes from the general fund in the governmental funds balance sheet. If the school district has deferred outflows, they should be included with the total assets. If the school district has deferred inflows, they should be included with the total liabilities. How do I calculate the ratio? To calculate this ratio, divide the general fund total assets and deferred outflows by the general fund total liabilities and deferred inflows. ASR FORMULA GENERAL FUND TOTAL ASSETS + DEFERRED OUTFLOWS ————————————————————————— GENERAL FUND TOTAL LIABILITIES + DEFERRED INFLOWS What is the benchmark? The numeric benchmark for this ratio is 1.0. When a school district has an ASR of 1.0, it means that it has exactly enough total assets to cover its total liabilities. An ASR of less than 1.0 means that the school district’s liabilities exceed its assets. FINANCIAL INDICATOR CRITERIA CONTINUOUS DECLINE IN ASR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 1.0 —OR— ASR LESS THAN 1.0 ALL 3 YEARS This ratio has two different criteria. First, the ratio should not consistently decrease over time. Second, it should not consistently remain below 1.0. A decreasing ratio may mean a school district could be facing liquidity problems. REPORT OF THE COLORADO STATE AUDITOR Where do I find the information? FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 14 For analysis purposes, a school district is below the benchmark when there are consistent decreases in the ratio with the last year less than 1.0 or all 3 years less than 1.0. EXAMPLE TREND DATA RATIO YEAR ONE: 3.12 RATIO YEAR TWO: 2.09 RATIO YEAR THREE: 0.98 — BELOW BENCHMARK? YES What questions should I consider if my school district is below the benchmark?       Does the school district have consistent decreases in the ratio over time? Does the school district have trouble paying debts as they become due? Is the school district incurring more liabilities? Are more liabilities coming due faster than cash is coming in to pay them? Is the school district below the benchmark due to timing issues? For example, does the school district have significant cash flows in the early part of the year, after the balance sheet date? Is the school district’s cash flow structure sufficient to continue paying liabilities as they become due? RATIO 2: DEBT BURDEN RATIO (DBR) What will this ratio tell me? The ratio indicates whether the school district’s annual revenue will cover its annual debt payments, including principal and interest. The DBR is a very important way to assess a school district’s ability to continue to meet its debt service payments. This ratio shows the relationship between a school district’s revenue, or debt-paying capacity, and its required debt payment. 15 If the DBR shrinks every year, it might be a sign that the school district’s debt payment is becoming more burdensome, and concerning. This ratio can also provide other insights into how a school district is paying off its debt. In general, if a school district pays its debt service with revenues outside the general fund revenue in one year, and then uses general funds the next year, the DBR will fluctuate significantly. This becomes important if a school district has been paying its debt service with other revenue, not reported in the general fund, and then it begins to use general fund revenue. This could be a sign that the revenue stream the school district intended to use to pay off its debt might not be sufficient. Where do I find the information? To find the total governmental revenue of funds paying debt service, total all the revenue from any governmental fund with debt service expenditures. Then, examine transfers into any funds paying debt service, and add the revenue from the fund that is the source of the transfer into that fund. Total governmental debt payments are the sum of all debt service payments reported in all governmental funds. Additionally, this information could be located in a few different places within the audit report. Aside from the statement of revenues, expenditures, and changes in fund balance, the information could be in the long-term debt disclosure or in a related schedule of long-term debt. Sometimes it is necessary to dig deeper into the financial statements by examining the combining statements to determine specifically which non-major fund made debt service payments or transferred money into a fund that actually paid the debt service. How do I calculate the ratio? To calculate this ratio, divide the total governmental revenue of funds that pay debt service by the total governmental fund debt service payments, including principal and interest. REPORT OF THE COLORADO STATE AUDITOR What will a trend in this ratio tell me? FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 16 DBR FORMULA TOTAL GOVERNMENTAL REVENUE OF FUND(S) PAYING DEBT ————————————————————————— TOTAL GOVERNMENTAL DEBT PAYMENTS What is the benchmark? A DBR of 1.0 would indicate that annual debt service expenditures equals the annual revenue of the fund supporting the debt. FINANCIAL INDICATOR CRITERIA CONTINUOUS DECLINE IN DBR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 1.0 —OR— DBR LESS THAN 1.0 ALL 3 YEARS This ratio has a two-part criteria and both must apply. The first part of the criteria is that the ratio should remain constant or increase. When the ratio is consistently less than 1.0, it means that the school district does not have the appropriate amount of revenue in funds making debt service payments. The second part of the criteria is whether the ratio is less than 1.0 in the third year. A school district with a DBR of 1.0 has just enough revenue in its funds with debt service payments to pay those debt service expenditures. A DBR of less than 1.0 means that a school district does not have enough revenue in its funds paying debt service to cover those debt service expenditures and it must use fund balance to make up the difference. In our analysis, a school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s ratio less than 1.0 or all 3 years less than 1.0. 17 RATIO YEAR ONE: 2.13 RATIO YEAR TWO: 1.04 RATIO YEAR THREE: 0.89 — BELOW BENCHMARK? YES What questions should I consider if my school district is below the benchmark?    Does this ratio indicate that the school district does not have the ability to pay its future debt service expenditures? Is the ratio consistently decreasing because the school district has decreasing revenue available to make debt service payments? Does the school district have plans to change the cause of the consistently decreasing DBR ratio? RATIO 3: OPERATING RESERVE RATIO (ORR) What will this ratio tell me? The ORR indicates the period of time (with 1.0 being one year) the school district’s general fund balance reserve is sufficient to cover future expenditures. Specifically, this ratio shows the amount of fund balance a school district has to pay its future expenditures. The ratio provides information based on the assumption that future expenditures will resemble past expenditures. This means that a school district with a high ORR should have reserves to pay for its expenditures further into the future, if expenditures remain consistent. This ratio also provides insight into how long a school district could operate if it were unable to collect any revenue. What will a trend in this ratio tell me? If the ORR decreases over time, it means the school district has either REPORT OF THE COLORADO STATE AUDITOR EXAMPLE TREND DATA FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 18 increasing expenditures or has less fund balance to cover its expenditures. Translated into a time measurement, the fund balance will not cover the same amount of time of operational expenditures as in previous years, assuming expenditures have remained consistent. There are many reasons that a school district might be decreasing its available fund balance, so even 3 years of consistent decline may not automatically mean there is a problem. Regardless of the actual results of calculating this ratio, the school district should evaluate the trend to determine the sufficiency of its reserves. The key to this ratio is that management is aware of the changes and they are intentional or planned. Where do I find the information? The information necessary to calculate the ORR is located on the governmental funds balance sheet, specifically in the general fund. Total general fund balance includes nonspendable, restricted, committed, assigned and unassigned. Expenditure information is located on the governmental funds statement of revenues, expenditures, and changes in fund balance. General fund total expenditures (net of transfers) are the total expenditures for the general fund, and add transfers out and subtract transfers in. How do I calculate the ratio? To calculate this ratio, divide general fund balance by general fund total expenditures (net of transfers). ORR FORMULA FUND BALANCE OF THE GENERAL FUND ————————————————————————— GENERAL FUND TOTAL EXPENDITURES (NET OF TRANSFERS) 19 The benchmark for ORR is general fund balance of no less than one week of regular current general fund expenditures, or a ratio of 0.0192 (1/52, or one week). FINANCIAL INDICATOR CRITERIA CONTINUOUS DECLINE IN ORR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 0.0192 —OR— ORR LESS THAN 0.0192 ALL 3 YEARS The ORR has two different criteria. First, a school district with an ORR of 0.0192 can pay for one week of expenditures in the event of a total loss of revenue inflows. A school district would be below the benchmark if it has consistent decreases in the ratio, with the most recent year less than 0.0192. This means that either expenditures are increasing or fund balance is decreasing to the point where the school district can no longer pay for one week of future expenditures. The second part of the criteria is whether a school district has less than one week of reserves in all 3 years. For our purposes, a school district is below the benchmark if it has consistent decreases in the ratio with the most current year’s ORR less than 0.0192, or all 3 years are less than 0.0192. EXAMPLE TREND DATA RATIO YEAR ONE: 0.0519 RATIO YEAR TWO: 0.0327 RATIO YEAR THREE: 0.0164 — BELOW BENCHMARK? YES REPORT OF THE COLORADO STATE AUDITOR What is the benchmark? FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 20 What questions should I consider if my school district is below the benchmark?    Will the school district have a problem paying its future expenditures? Does the school district understand the circumstances that resulted in a consistently decreasing ORR and was it planned? Do consistent decreases in the ratio mean that expenditures are increasing or fund balance is decreasing, or both? RATIO 4: OPERATING MARGIN RATIO (OMR) What will this ratio tell me? The OMR is a traditional financial performance indicator that private and public entities use for analysis. The OMR looks at revenues and expenditures in the general fund. The ratio indicates the amount added to the school district’s reserves for every $1 generated in revenue. In general, a school district that has sustainable operations will have more operating revenue than expenditures at any given time. There are numerous reasons why a school district would have more expenditures than revenues for a given year, but if the school district continually has more expenditures than revenue, it might be financing its expenditures with long-term debt or fund balance, which is not a sustainable operational model. What will a trend in this ratio tell me? First, the OMR will tend to change consistently over time. It is possible that a school district will have a negative OMR one year if there are one time capital expenditures, and a positive OMR the next. However, if a school district has a consistently negative OMR, it could indicate structural problems in the school district’s operating decisions, or generally poor economic conditions. A consistent decrease in the OMR, or an OMR consistently less than zero is not sustainable in the 21 Where do I find the information? The information for this ratio is located on the governmental funds statement of revenues, expenditures, and changes in fund balance. General fund total revenue is the total revenues for the general fund. General fund total expenditures (net of transfers), are the total expenditures for the fund, adding any transfers out and subtracting any transfers in. How do I calculate the ratio? To calculate this ratio, subtract total general fund expenditures, net of transfers, from general fund total revenue. Divide that result by general fund total revenue. OMR FORMULA GENERAL FUND TOTAL REVENUE – (GENERAL FUND TOTAL EXPENDITURES, NET OF TRANSFERS) ————————————————————————— GENERAL FUND TOTAL REVENUE What is the benchmark? The benchmark for the OMR is zero. An OMR of zero means that a government has equal revenue and expenditures. An OMR greater than zero is positive and indicates that the government has more revenue than expenditures. For example, An OMR of 0.01 would indicate that $.01 would result in net income for every $1 produced in gross revenue. REPORT OF THE COLORADO STATE AUDITOR long term because eventually a school district will run out of fund balance to cover the difference. Consistent increases in this ratio could indicate that a school district has a generally improving economic environment, or that it has made operating decisions that have created more sustainable operations. 22 FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 An OMR of less than zero means that the government has more expenditures than revenues. FINANCIAL INDICATOR CRITERIA DECREASE IN OMR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN ZERO —OR— OMR LESS THAN ZERO IN ALL 3 YEARS The OMR has a two part criteria. First, the OMR can fluctuate based on the district’s budget decisions, but should not consistently decrease over time. Second, it should not consistently be below zero. For our analysis, a school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. EXAMPLE TREND DATA RATIO YEAR ONE: 0.11 RATIO YEAR TWO: 0.05 RATIO YEAR THREE: -0.04 — BELOW BENCHMARK? YES What questions should I consider if my school district is below the benchmark?      Is the school district aware that it has a consistently negative OMR? Does this ratio indicate that the school district is spending too much money? Does the decrease in OMR indicate planned reductions in fund balance? Are there one-time capital expenditures that led to the decrease in OMR? What is causing the OMR to be consistently less than zero and can the school district fix this issue? 23 Is the consistent decrease due to a timing issue? RATIO 5: CHANGE IN FUND BALANCE RATIO (CFBR) What will this ratio tell me? The CFBR indicates whether the school district’s fund balance in its general fund is increasing or decreasing. This ratio could show that a school district needs to adjust its revenue and expense structure in order to remain solvent over time. This ratio subtracts the prior year general fund balance from the current year general fund balance; then divides that amount by the prior year general fund balance. This ratio evaluates a potential concern of declining fund balance and highlights when a school district’s general fund balance has reached the lowest point in four years. This ratio shows the change in a school district’s general fund balance, as a whole, over time. The CFBR goes beyond a traditional operating margin analysis and encompasses all sources and uses of resources for the general fund. What will a trend in this ratio tell me? A consistently decreasing CFBR over time could provide an indication that general fund activities are not sustainable without potential changes. A school district should ascertain why the general fund balance has declined to avoid a deficit and should determine how to return the general fund to operating sustainability. Where do I find the information? The information for this ratio is located on the governmental funds statement of revenues, expenditures, and changes in fund balance. REPORT OF THE COLORADO STATE AUDITOR  FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 24 Current year fund balance of the general fund is located on generally the last line of the statement. Prior year or beginning fund balance of the general fund is located on the same statement, generally just above the current year ending value. How do I calculate the ratio? To calculate this ratio, subtract the prior year general fund balance from the current year general fund balance; then divide that amount by the prior year general fund balance. CFBR FORMULA CURRENT YEAR FUND BALANCE OF THE GENERAL FUND – PRIOR YEAR FUND BALANCE ————————————————————————— PRIOR YEAR GENERAL FUND BALANCE What is the benchmark? The benchmark for the CFBR is zero. A CFBR of zero would indicate that the fund balance has not changed from the prior year. FINANCIAL INDICATOR CRITERIA DECREASE IN CFBR FROM YEAR ONE TO THREE, WITH YEAR THREE FUND BALANCE LESS THAN YEAR ONE BEGINNING FUND BALANCE —OR— CFBR LESS THAN ZERO FOR ALL 3 YEARS The CFBR has a two part criteria. The CFBR is similar to OMR in that a consistently declining or negative CFBR is not a sustainable operating model. Eventually, remaining fund balance will run out to cover the deficiency. For our purposes, a school district is below the benchmark if it has consistent decreases in the ratio and with year three fund balance less than year one beginning fund balance, or a ratio of less than zero for 25 EXAMPLE TREND DATA RATIO YEAR ONE: 0.10 RATIO YEAR TWO: 0.02 RATIO YEAR THREE: -0.15 — BELOW BENCHMARK? YES What questions should I consider if my school district misses the benchmark?    Do changes in this ratio indicate that the school district is spending too much? What does the school district plan to do to reverse this trend? Should the school district maintain more or less reserves? REPORT OF THE COLORADO STATE AUDITOR all 3 years, and with the most recent year’s fund balance less than zero. FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 26 TREND ANALYSIS The purpose of the Division’s trend analysis is to identify school districts whose ratios are below the benchmark over the three-year period. The Division established this analysis as a baseline to see how school districts are performing financially over the 3-year period through the latest audited fiscal year, which, for this report, is the year ending June 30, 2014. This analysis is conducted annually and examines the most current rolling 3-year period for which audited financial statements are available. The Department has stated that even though it receives and typically reviews information on a more detailed basis prior to the release of the Fiscal Health Analysis, the multiple-year view of a district’s fiscal health is valuable for the Department’s analysis. The Fiscal Health Analysis highlights districts that have missed the benchmark on two or more financial indicators, showing trends that might not have surfaced in the Department’s review of prior year financial data. The Fiscal Health Analysis has some limitations when identifying possible financial stress within a school district. First, the analysis does not highlight school districts that missed a benchmark for only one or two of the three years included in the review. The second limitation of the Fiscal Health Analysis is that it does not take into consideration any current budgetary actions the district has taken that may affect the school district’s financial condition. For example, if the district has significantly cut expenditures in Fiscal Year 2015, the changes would not appear until the actual results were reported at the end of the year in the 2015 audited financial statements. These financial statements will not be due to the Division until December 2015. Finally, since the analysis is based on historical data, it does not consider a school districts’ financial condition at the current point in time. 27 Our Fiscal Health Analysis revealed that of the State’s 178 school districts, 70 missed the benchmark on one or more financial indicator. Of these 70 school districts, 42 districts missed one benchmark, 23 districts missed two benchmarks, four districts missed three benchmarks, and one district missed four benchmarks. The table shown below demonstrates the number of school districts with indicators based on the analysis of each of the five ratios for the 3-year period ending June 30: STATE OF COLORADO FISCAL HEALTH ANALYSIS NUMBER OF SCHOOL DISTRICTS MISSING BENCHMARKS1 FOR THE THREE-YEAR PERIOD ENDING JUNE 30, FISCAL HEALTH RATIO Ratio 1: Asset Sufficiency Ratio Ratio 2: Debt Burden Ratio Ratio 3: Operating Reserve Ratio Ratio 4: Operating Margin Ratio Ratio 5: Change in Fund Balance Ratio Total Indicators TOTAL DISTRICTS WITH ONE OR MORE INDICATORS 2012 2013 2014 0 13 0 34 10 57 0 14 0 64 19 97 1 14 1 57 31 104 48 76 70 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. 1 Some districts had indicators in more than one category. The table shows that most of the benchmarks were missed in the Operating Margin and Change in Fund Balance Ratios for the current 3-year period ending June 30, 2014. There were 57 districts that triggered the Operating Margin Ratio, yet only 28 districts are highlighted in our report because they also missed another benchmark. The occurrence of missing one or more of the fiscal health benchmarks may not mean that a school district is facing financial stress. Nonetheless, a missed benchmark should prompt further examination by the decision makers of the school district to determine what led to the occurrence. The more benchmarks a school district misses, the more likely it is to be experiencing financial stress. Continued financial REPORT OF THE COLORADO STATE AUDITOR EVALUATION OF THE SCHOOL DISTRICTS FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 28 stress could cause a school district to reduce or eliminate programs and jobs and may affect the quality of education. SCHOOL DISTRICTS MISSING TWO OR MORE BENCHMARKS The table on the following page shows the districts that missed the benchmark for two or more financial ratios in our current and two prior years’ Fiscal Health Analysis reports. Our prior year report issued in July 2014 identified 20 school districts that missed two or more financial benchmarks. Since that time, six school districts decreased missing two financial benchmarks to zero; nine school districts decreased missing two financial benchmarks to one; and three school districts repeated missing two or more financial benchmarks and are part of our current year evaluation. In total, we identified 28 school districts that missed two or more financial benchmarks in this year’s analysis. The following table summarizes the districts identified with ratios that missed the benchmark in the current year analysis compared to the Fiscal Year 2013 and Fiscal Year 2012 analysis. 29 COUNTY Adams/Broomfield Adams/Arapahoe Adams Alamosa/Conejos Arapahoe/Adams Arapahoe Baca Baca Baca Baca Conejos/Alamosa Conejos Costilla El Paso El Paso El Paso Elbert Elbert Elbert Grand Jefferson/Broomfield Kit Carson Kit Carson La Plata Las Animas Lincoln Logan Logan Mineral Moffat Montezuma Morgan Morgan Otero Ouray Park Phillips Prowers Pueblo Rio Grande DISTRICT Adams 12 Five Star School District Strasburg 31J School District Westminster 50 School District Alamosa RE-11J School District Byers 32J School District Englewood 1 School District Campo RE-6 School District Pritchett RE-3 School District* Springfield RE-4 School District Walsh RE-1 School District North Conejos RE-1J School District South Conejos RE-10 School District Sierra Grande R-30 School District Hanover 28 School District Manitou Springs 14 School District Widefield 3 School District Agate 300 School District Big Sandy 100J School District Elizabeth C-1 School District East Grand 2 School District Jefferson County R-1 School District Arriba-Flagler C-20 School District Bethune R-5 School District* Durango 9-R School District Trinidad 1 School District Karval RE-23 School District* Frenchman RE-3 School District Valley RE-1 School District* Creede School District Moffat County RE1 School District Montezuma-Cortez RE-1 School District Brush RE-2(J) School District Weldon Valley RE-20(J) School District East Otero R-1 School District Ridgway R-2 School District Park County RE-2 School District Holyoke RE-1J School District Lamar RE-2 School District* Pueblo County Rural 70 School District* Monte Vista C-8 School District* 2012 2013 2014 2 0 0 0 0 0 0 1 0 2 0 1 0 0 0 0 0 0 2 0 2 0 2 0 2 1 0 1 0 0 2 0 1 0 0 2 0 1 1 1 0 2 1 1 1 0 2 1 1 1 1 0 0 1 1 0 2 2 2 1 0 2 2 1 0 2 1 2 1 1 0 1 2 1 0 0 2 2 2 2 0 0 3▲ 3▲ 2▲ 3▲ 1 2▲ 2▲ 0 2▲ 2▲ 2▲ 2▲ 2▲ 2▲ 0 2▲ 0 2▲ 0 0 1 2▲ 0 2 2▲ 1 2▲ 2▲ 0 2▲ 0 2▲ 2▲ 0 1 1 4▲ 1 REPORT OF THE COLORADO STATE AUDITOR STATE OF COLORADO FISCAL HEALTH ANALYSIS OF SCHOOL DISTRICTS SCHOOL DISTRICTS MISSING TWO OR MORE FINANCIAL BENCHMARKS FOR THE THREE-YEAR PERIOD ENDING JUNE 30, FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 30 STATE OF COLORADO FISCAL HEALTH ANALYSIS OF SCHOOL DISTRICTS SCHOOL DISTRICTS MISSING TWO OR MORE FINANCIAL BENCHMARKS FOR THE THREE-YEAR PERIOD ENDING JUNE 30, COUNTY DISTRICT Routt Hayden RE-1 School District San Juan Silverton 1 School District* Washington Akron R-1 School District Washington Arickaree R-2 School District* Washington Lone Star 101 School District* Weld/Adams Keenesburg RE-3J School District* Weld Pawnee RE-12 School District Yuma/Kit Carson Liberty J-4 School District* Yuma Wray RD-2 School District NUMBER OF DISTRICTS WITH TWO OR MORE RATIOS BELOW THE BENCHMARK 2012 2013 2014 0 1 1 1 1 1 0 2 0 1 3 2 2 2 1 0 2 2 2▲ 3 0 2 1 2▲ 2▲ 1 1 9 20 28 SOURCE: Office of the State Auditor, Local Government Division Fiscal Health of Colorado School District reports 2013-2015. ▲ Indicates an increase from 2013 to 2014. The Division discussed these benchmarks with the school districts to obtain information about the missed benchmarks and the steps the districts are taking to turn the trends around. APPENDIX B provides further information and explanations regarding the 28 school districts missing two or more benchmarks. All but one of the 28 districts noted above missed the Operating Margin Ratio benchmark, demonstrating losses in reserves. All but one of the 28 school districts also missed the benchmark for the Change in Fund Balance Ratio. This benchmark demonstrates the district’s reductions in the general fund balance, and illustrates that the general fund balance has hit a 4-year low. Out of the 28 school districts missing two or more benchmarks, six of the districts missed the benchmark for the Debt Burden Ratio, indicating that the debt service expenditures are greater than the revenue source. Overall, the 28 districts’ explanations regarding missing two or more benchmarks centered around two distinct themes: (1) districts have offset reductions in state school finance funding (Negative Factor) with reductions in fund balance in order to maintain current programs and (2) 31 REDUCTIONS IN STATE SCHOOL FUNDING. Twenty school districts indicated that they have experienced the effects of the reduction in state school funding (including the Negative Factor) resulting in required spend down of fund balance.                     Alamosa RE-11J Big Sandy 100J Brush RE-2J Byers 32J Creede East Grand 2 East Otero R-1 Englewood 1 Frenchman RE-3 Keenesburg RE-3J Manitou Springs 14 Moffat RE1 Pawnee RE-12 Pritchett RE-3 Pueblo County Rural 70 Sierra Grande R-30 Silverton 1 Springfield RE-4 Westminster 50 Widefield 3 Pueblo County Rural 70 reported that the decision was made to spend down reserves to offset reductions in state funding in order to reduce the impact on student learning. While the District has made multiple cuts over time, the District reports that, without spending down of reserves, drastic cuts would have been required that could have been devastating to student achievement. Silverton 1 reported that due to the severe decreases in funding the District has had to use more and more reserves to support its educational programming. REPORT OF THE COLORADO STATE AUDITOR districts have seen increases in the cost of maintenance, repairs, and construction in order to maintain or improve their facilities. FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 32 INCREASES IN THE COST OF MAINTENANCE, REPAIRS, AND CONSTRUCTION. The nine school districts listed below have experienced increases in the cost of maintenance, repairs, and construction in order to maintain or improve their facilities.          Arickaree R-2 Big Sandy 100J Byers 32J Frenchman RE-3 Hayden RE-1 Pawnee RE-12 Ridgway R-2 Sierra Grande R-30 Springfield RE-4 Frenchman RE-3 reported that the District School Board approved the purchase of a new bus and made technology updates. Ridgway R-2 reported that they made safety improvements to its elementary school and made District-wide technology improvements. Springfield RE-4 reported that they had unexpected transportation expenses to replace a bus that became inoperable. The District further reported that it has experienced an increase in the maintenance and repair costs to maintain its facility. Byers 32J reported that its K-12 facility had poor air quality and leaks in the roof that contributed to a poor learning environment. The District Board prioritized the expenditures by allowing spending of fund balance. Several school districts provided various other reasons for their negative indicators, as noted below:  STAFF COMPENSATION. The five districts listed below reported that staff compensation costs had an impact on their financial health.      Alamosa RE-11J Big Sandy 100J Durango 9-R East Otero R-1 Ridgway R-2 33 East Otero R-1 and Ridgway R-2 increased staff salaries. East Otero R-1 gave staff a pay increase for the first time in 3 years and Ridgway R-2 approved a staff compensation bonus structure. Big Sandy 100J and Durango 9-R reported they are over staffed, while Durango 9-R has also experienced an increase in salary and benefit costs. Alamosa RE-11J reports that the sluggish local economy has led to high unemployment and families have left the District to seek employment elsewhere. The District has struggled to provide compensation to retain quality staff in a rural area.  ACCOUNTING SYSTEMS. Hanover 28, North Conejos RE-1J, and Pritchett RE-3 reported various internal circumstances that affected their financial health. Hanover 28 reported that it had been using a 20-year-old accounting system that contributed to some inaccurate financial reporting that was used to make decisions. North Conejos RE-1J reported that there was some fiscal irresponsibility and erroneous accounting that led to unauthorized spending that depleted district reserves. Pritchett RE-3 reported that previous management failed to complete budgetary obligations. Although there are various explanations for the reasons these school districts are experiencing financial stress, the school districts reported that they are rectifying the problems in similar ways. Most of the school districts have had to make cuts to their annual budgets through a combination of eliminating jobs and cutting back educational programs. Some school districts are also planning to continue to supplement their revenue by spending down their existing fund balances. SEE APPENDIX B for further information regarding the districts’ explanations. Various economic conditions have adversely affected districts of all sizes and geographic areas across the state. Fifteen of the 28 school districts have pupil counts that are less than 1,000 students. The map in APPENDIX C shows the districts that have been identified with two or more missed benchmarks and where they are located within the State of Colorado. The map illustrates that these districts are located in metropolitan as well as rural areas. REPORT OF THE COLORADO STATE AUDITOR  FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 34 ANALYSIS OF PER FUNDED PUPIL REVENUES AND EXPENDITURES As noted, 20 districts reported experiencing economic hardship due to decreasing State funding amounts. Analysis of this information, illustrated in the following table, reveals that general fund revenue per funded pupil has generally increased over the 3-year period for the 28 districts highlighted in this section. However, in most cases expenditures per funded pupil have increased at a faster rate over the same period. Expenditures per funded pupil increasing at a faster rate than revenues per funded pupil can lead to the operating margin and fund balance issues noted at numerous districts earlier in this report. Because there is evidence of increasing revenue per funded pupil over time, districts may have less stress in addressing increasing per pupil expenditures than in prior years. However, given that per pupil expenditures continue to increase in many areas, districts may still be unable to effectively work toward financial improvement without waiting for State resources to possibly improve in the future. The chart in APPENDIX D shows the detail per year of each district’s general fund revenue and expenditures per funded pupil. 35 CHANGE IN COUNTY SCHOOL DISTRICT TOTAL GENERAL FUND REVENUE PER PUPIL FROM FY2012-2014 PERCENT CHANGE IN TOTAL GENERAL FUND REVENUE PER PUPIL FROM FY2012-2014 Adams Alamosa Arapahoe/Adams Arapahoe Baca Baca Conejos/Alamosa Conejos Costilla Elbert El Paso El Paso El Paso Grand La Plata Lincoln Logan Mineral Moffat Morgan Otero Ouray Pueblo Routt San Juan Washington Weld/Adams Weld Westminster 50 Alamosa RE-11J Byers 32J Englewood 1 Pritchett RE-3 Springfield RE-4 North Conejos RE-1J South Conejos RE-10 Sierra Grande R-30 Big Sandy 100J Hanover 28 Manitou Springs 14 Widefield 3 East Grand 2 Durango 9-R Karval RE-23 Frenchman RE-3 Creede Moffat County RE1 Brush RE-2(J) East Otero R-1 Ridgway R-2 Pueblo County Rural Hayden RE-1 Silverton 1 Arickaree R-2 Keenesburg RE-3J Pawnee RE-12 $96.29 $183.47 ($1,182.57) $831.09 $1,092.65 $229.07 $192.10 $1,310.11 $358.73 $623.71 $1,004.69 ($20.89) $257.88 $44.06 $370.17 $3,084.43 ($40.26) ($546.39) $571.93 $175.18 $315.38 $866.60 $231.97 $506.48 $3,111.54 $713.74 $219.11 $3,713.46 1% 3% -12% 10% 6% 2% 3% 13% 3% 6% 9% 0% 4% 1% 4% 36% 0% -3% 7% 2% 5% 8% 3% 4% 19% 5% 3% 20% PERCENT CHANGE IN CHANGE IN TOTAL GENERAL TOTAL GENERAL FUND FUND EXPENDITURES EXPENDITURES PER PUPIL FROM PER PUPIL FROM FY2012-2014 $694.70 $498.94 ($408.26) $1,962.91 $2,493.71 $1,385.87 $1,053.16 $1,917.88 ($597.46) $1,289.24 $2,976.77 $366.07 $623.75 $578.54 $1,271.81 $5,084.57 $1,485.59 $2,826.64 $940.46 $696.20 $1,092.89 $1,837.42 ($1,190.24) $1,702.25 $4,896.49 $1,898.52 ($662.46) $6,103.09 FY 2012-2014 9% 8% -4% 23% 14% 15% 14% 19% -5% 13% 27% 4% 9% 7% 15% 54% 13% 17% 11% 10% 16% 17% -14% 13% 29% 13% -7% 33% SOURCE: Analysis performed by the Office of the State Auditor, Local government Division, using data from audited financial statements submitted by school districts. District student count figures were obtained from the Department of Education’s statewide funded pupil counts for Fiscal Years 2012 through 2014. REPORT OF THE COLORADO STATE AUDITOR STATE OF COLORADO FISCAL HEALTH ANALYSIS OF SCHOOL DISTRICTS CHANGE IN TOTAL GENERAL FUND REVENUE AND EXPENDITURES PER FUNDED PUPIL FOR THE YEARS ENDING JUNE 30, 2012 THROUGH 2014 FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 36 CONCLUSION Financial trend analysis is an important tool because it can identify potential areas of concern for the Department, the school districts, and citizens. The analysis can be used to assist the Department and school district officials in their decision making to be able to take action when there is an indication of possible financial stress. 37 The Division of School Finance and Operations of the Colorado Department of Education has two main functions in regard to school district financial activities: 1) to provide technical assistance to school districts regarding complex funding formulas and reporting requirements; and 2) to monitor compliance with budgeting, accounting, and reporting requirements related to school district financial accreditation. The Department provides training and technical assistance to districts on financial reporting, including individualized support when needed. Additionally, each district’s audited financial statements are annually reviewed by the Department for compliance, and a “Financial Accreditation Report” is collected from each school district for the purpose of assuring compliance with Articles 44 and 45 of the Colorado Revised Statutes. During this review process, the Department works closely with finance staff within the districts providing detailed guidance and support on a variety of financial reporting topics. If any areas of non-compliance are identified, the Department follows-up with the district to resolve the issue, requiring a corrective action plan to be provided by the district when appropriate. If the violations are significant, further action is taken by the Department with respect to the District’s accreditation contract. This review process, coupled with educational outreach, has worked well to ensure financial compliance prospectively and to remedy any compliance concerns or deficiencies in reporting quickly. The Fiscal Health Analysis identified an overall decrease in the number of districts with one or more missed benchmarks, although more districts were identified with multiple missed benchmarks. This REPORT OF THE COLORADO STATE AUDITOR COLORADO DEPARTMENT OF EDUCATION RESPONSE TO ANALYSIS FISCAL HEALTH ANALYSIS OF COLORADO SCHOOL DISTRICTS – MAY 2015 38 is not unexpected as districts continue to experience the effect of the significant funding cuts that have occurred over the past few years. Districts are also experiencing increasing cost pressures, including increased maintenance and repair costs. Despite this, 15 of the 20 districts that were identified last year with two or more missed benchmarks improved their financial positions and have either eliminated the warnings or reduced them to one. This indicates that the reviews by both the Department and the Office of the State Auditor assist districts to understand potential financial problems and take corrective action in a positive manner. The information included in this report provides trending data that helps the Department focus on districts headed for potential financial difficulties. Early indicators are always useful when providing technical assistance to such districts. The Department will continue to work with the Office of the State Auditor to make meaningful comparisons of the financial data collected and reviewed, especially as that data is used to help districts facing financial difficulties. APPENDIX A UNDERSTANDING THE FISCAL HEALTH RATIOS AND INDICATORS The following table provides a description of the ratios, calculations, and benchmarks: RATIO ASSET SUFFICIENCY RATIO (ASR) CALCULATIONS GENERAL FUND TOTAL ASSETS + DEFERRED OUTFLOWS ————————————————————————— GENERAL FUND TOTAL LIABILITIES + DEFERRED INFLOWS DEBT BURDEN RATIO (DBR) TOTAL GOVERNMENTAL REVENUE OF FUND(S) PAYING DEBT ————————————————————————— TOTAL GOVERNMENTAL DEBT PAYMENTS OPERATING RESERVE RATIO (ORR) FUND BALANCE OF THE GENERAL FUND ————————————————————————— GENERAL FUND TOTAL EXPENDITURES (NET OF TRANSFERS) OPERATING MARGIN RATIO (OMR) GENERAL FUND TOTAL REVENUE – (GENERAL FUND TOTAL EXPENDITURES, NET OF TRANSFERS) ————————————————————————— GENERAL FUND TOTAL REVENUE CHANGE IN FUND BALANCE RATIO (CFBR) CURRENT YEAR FUND BALANCE OF THE GENERAL FUND – PRIOR YEAR FUND BALANCE ————————————————————————— PRIOR YEAR GENERAL FUND BALANCE A-1 DESCRIPTION BENCHMARK FINANCIAL INDICATORS Indicates the coverage of general fund assets to general fund liabilities. An ASR of 1.0 would indicate that total assets equals total liabilities. CONTINUOUS DECLINE IN ASR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 1.0 —OR— ASR LESS THAN 1.0 ALL 3 YEARS Indicates the coverage of revenue of fund(s) paying debt service to the annual principal and interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. CONTINUOUS DECLINE IN DBR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 1.0 —OR— DBR LESS THAN 1.0 ALL 3 YEARS Indicates the amount the general fund ending fund balance will cover of the current year general fund expenditures, including transfers. An ORR of 0.0192 (1/52, or one week) equates to one week of reserves for current expenditures and transfers. CONTINUOUS DECLINE IN ORR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN 0.0192 —OR— ORR LESS THAN 0.0192 ALL 3 YEARS Indicates the amount added to reserves for every $1 in total general fund gross revenue. Indicates the change in the fund balance of the general fund from one year to the next in relationship to the prior year fund balance. An OMR of zero means that revenue equals expenditures. DECREASE IN OMR FROM YEAR ONE TO YEAR THREE, WITH YEAR THREE LESS THAN ZERO —OR— OMR LESS THAN ZERO IN ALL 3 YEARS A CFBR of 0 would indicate that the fund balance had not changed from the prior year. DECREASE IN CFBR FROM YEAR ONE TO THREE, WITH YEAR THREE FUND BALANCE LESS THAN YEAR ONE BEGINNING FUND BALANCE —OR— CFBR LESS THAN ZERO FOR ALL 3 YEARS A-2 APPENDIX WESTMINSTER SCHOOL DISTRICT 50 ADAMS COUNTY Gen Fund Total Rev 82,000 80,000 Gen Fund Expenditures +/Net Transfers 78,000 76,000 74,000 72,000 20,000 PY Gen Fund Bal 15,000 10,000 Gen Fund Bal 5,000 2013 2014 2012 2012 2013 2014 -0.01 -0.05 2013 2,000 - 2014 2012 Rev for Debt $9,182,740 Debt Service $7,644,425 3 YEAR CFBR TRENDING Change in Fund Balance (%) Operating Margin Ratio (%) 0.03 0.02 0.01 0 -0.01 -0.02 -0.03 -0.04 -0.05 -0.06 0.02 4,000 2012 2013 2014 PY Fund Bal $17,913,171 $19,826,261 $18,642,729 CY Fund Bal $19,826,261 $18,642,729 $14,801,576 3 YEAR OMR TRENDING OMR 6,000 2012 2013 2014 Revenue $79,243,740 $80,182,246 $81,079,098 Expenditures $77,330,650 $81,365,778 $84,920,251 1.4 0.1 1.2 0 -0.05 -0.1 -0.15 2014 $8,457,078 $8,626,394 1 0.8 0.6 0.4 0.2 -0.2 0 -0.25 2012 2012 2013 2014 CFBR 2013 $8,632,635 $8,238,158 3 YEAR DBR TRENDING 0.15 0.05 Gov Funds Total Revenue Paying Debt Service Gov Funds Annual Debt Service 8,000 - 2012 2013 2014 2012 10,000 Debt Burden(%) 84,000 25,000 Dollars (In Thousands) 86,000 3 YEAR DEBT BURDEN RATIO (DBR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) 0.11 -0.06 -0.21 DBR 1.20 2013 2014 1.05 0.98 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-1 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. WESTMINSTER SCHOOL DISTRICT 50 ADAMS COUNTY An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. 9,652 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. Students ▲109 Since 2012 The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. RESPONSE WESTMINSTER SCHOOL DISTRICT: The underlying causes of the negative indicators are planned spend down of district reserves and reductions in state funding. The District deliberately spent down the district’s reserves and also made reductions going into the 2014-2015 fiscal year in order to further stabilize reserves spending. The District has requested mill levy funds from the community for the last two years and has been unsuccessful. The reduction in state funding has continued to negatively affect the District’s budget. The missed indicator regarding the District’s debt service is due to the fact the District refinanced its bonds in Fiscal Year 2012-2013, which resulted in a decrease in the bond payment as well as a decrease in bond revenue collected through property tax. ACTIONS TAKEN: In an effort to meet the budget challenges and continue to provide an excellent education, the District reduced expenditures going into Fiscal Year 2014-2015 and continues to adjust the budget to mitigate the utilization of the reserves moving forward. The District will be watching its debt collections closely to ensure bond payments are properly covered. The board of education has reduced expenditures by $5.25 million dollars over the last two years. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-2 ALAMOSA SCHOOL DISTRICT RE-11J ALAMOSA COUNTY Gen Fund Expenditures +/- Net Transfers 3,000 2012 $14,151,031 $13,884,898 2,000 500 2012 0.01 0 -0.01 -0.02 -0.03 -0.04 2012 2013 2014 OMR 0.02 -0.01 -0.03 $2,672,284 $2,938,417 2013 $2,938,417 $2,725,722 2012 2013 2014 2014 $2,725,722 $2,333,103 3 YEAR CFBR TRENDING 0.05 0 -0.05 -0.1 -0.15 -0.2 2012 Rev for Debt Debt Service 10 9 8 7 6 5 4 3 2 1 0 2012 2013 2014 CFBR 0.1 -0.07 -0.14 2013 DBR 2012 2013 2014 8.77 1 0.92 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-3 2014 $15,944,941 $1,786,552 $1,777,036 $1,818,426 $1,788,812 $1,928,186 3 YEAR DBR TRENDING 0.15 0.1 Gov Funds Annual Debt Service 5,000 - PY Fund Bal CY Fund Bal Change in Fund Balance (%) Operating Margin Ratio (%) 0.02 Gen Fund Bal 1,000 2014 $14,426,380 $14,818,999 3 YEAR OMR TRENDING 0.03 10,000 1,500 2012 2013 2014 2013 $14,441,312 $14,654,007 Gov Funds Total Revenue Paying Debt Service 15,000 PY Gen Fund Bal 2,500 2012 2013 2014 Revenue Expenditures 20,000 3,500 Dollars (In Thousands) Gen Fund Total Rev Debt Burden(%) 15,000 14,800 14,600 14,400 14,200 14,000 13,800 13,600 13,400 3 YEAR DEBT BURDEN RATIO (DBR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ALAMOSA SCHOOL DISTRICT RE-11J ALAMOSA COUNTY An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. 2,082 Students ▼16 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. Since 2012 RESPONSE ALAMOSA SCHOOL DISTRICT: The underlying causes of the missed benchmarks include the annual Negative Factor, a debt service payment made from the general fund in Fiscal Year 2012 that affected the governmental funds total revenue paying debt service calculation, and a sluggish local economy that led to high unemployment. The district has experienced a loss of enrollment and funding as families leave due to seeking employment elsewhere. The District is trying to retain staff in a rural setting by providing compensation for annual steps, higher education and cost of living while never having had to use beginning fund balance. The District is also trying to provide staff and students the resources they need to effectively teach and learn. ACTIONS TAKEN: The District will continue to build forthcoming annual budgets within the revenue provided via State equalization and local taxes while taking the factors listed above into account. The District will continue to strive to increase savings. The District’s Board of Education continues to build and approve annual budgets within the revenue provided via State equalization and local taxes. Our District Board also continues to analyze annual staffing patterns and any monetary savings from annual attrition that may apply toward cost savings while still maintaining reasonable classroom sizes. Over the years, the District Board has forgone filling some vacancies throughout the District in an effort to save funds. The District Board will continue to maintain savings by operating within the above established budget while always trying to add to District savings by virtue of conservative budgeting and prudent spending. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-4 BYERS SCHOOL DISTRICT 32J ARAPAHOE COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 2,500 Gen Fund Total Rev 6,000 Dollars (In Thousands) Dollars (In Thousands) 7,000 5,000 4,000 Gen Fund Expenditures +/- Net Transfers 3,000 2,000 1,000 2,000 PY Gen Fund Bal 1,500 Gen Fund Bal 1,000 500 - 2012 2013 2012 $4,507,039 $4,719,657 Revenue Expenditures 2012 2014 2013 $4,777,860 $5,170,788 2014 $5,066,573 $5,786,048 0.05 0 -0.05 -0.1 -0.15 2012 OMR -0.05 2013 -0.08 2014 2014 2013 $2,351,272 $1,958,344 2014 $1,958,344 $1,238,869 3 YEAR CFBR TRENDING Change in Fund Balance Ratio 0.1 2012 $1,300,575 $2,351,272 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING 0.15 2013 -0.14 1 0.8 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 2012 CFBR 0.81 2013 2014 -0.17 -0.37 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-5 BYERS SCHOOL DISTRICT 32J ARAPAHOE COUNTY UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. 579 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. Students ▲125 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. Since 2012 RESPONSE BYERS SCHOOL DISTRICT: Due to the legislative inception of the negative factor (over $500k current year), the District cut programs including music and upper level math and science. With these conditions it is impossible to build a general fund balance. Additionally, the K-12 facility had poor air quality and numerous leaks in the roof creating a poor learning environment. The District Board prioritized improving those areas during this time period, allowing the expenditure of the beginning fund balance. ACTIONS TAKEN: Letters have been sent to local legislators and the governor requesting the elimination of the negative factor to provide more funding for schools. Without the negative factor our District would not be faced with the current financial condition. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-6 ENGLEWOOD SCHOOL DISTRICT 1 ARAPAHOE COUNTY 28,000 27,000 26,000 Gen Fund Expenditur es +/- Net Transfers 25,000 24,000 23,000 22,000 14,000 12,000 10,000 8,000 6,000 2012 $25,601,073 $24,712,044 2013 $26,177,151 $26,544,093 2,000 2012 PY Fund Bal CY Fund Bal 0 -0.02 -0.04 -0.06 -0.08 -0.1 2012 2013 2014 OMR 0.03 -0.01 -0.09 2013 4,000 3,000 2,000 1,000 - 2014 3 YEAR CFBR TRENDING -0.05 -0.1 -0.15 -0.2 2012 Rev for Debt Debt Service 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2012 2013 2014 CFBR 0.07 -0.03 -0.18 2013 DBR 2012 2013 2014 1.34 0.98 0.97 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-7 2014 $5,484,311 $5,465,313 $5,403,386 $4,104,771 $5,583,408 $5,572,240 3 YEAR DBR TRENDING 0.1 0 Gov Funds Annual Debt Service 2012 2013 2014 $12,223,731 $13,112,760 $12,745,818 $13,112,760 $12,745,818 $10,469,406 0.05 Gov Funds Total Revenue Paying Debt Service 5,000 - 2014 $26,278,431 $28,554,843 Change in Fund Balance (%) Operating Margin Ratio (%) 0.02 6,000 2012 2013 2014 3 YEAR OMR TRENDING 0.04 Gen Fund Bal 4,000 2012 2013 2014 Revenue Expenditures PY Gen Fund Bal Dollars (In Thousands) Gen Fund Total Rev 3 YEAR DEBT BURDEN RATIO (DBR) Debt Burden(%) 29,000 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ENGLEWOOD SCHOOL DISTRICT 1 ARAPAHOE COUNTY 2,748 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. Students ▼183 Since 2012 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. RESPONSE ENGLEWOOD SCHOOL DISTRICT: The District purposely set the mills lower on the Debt Service Fund to strategically use the fund balance in the Debt Service Fund to lower the tax impact to the community. The district has an 18 year debt schedule that shows what mills to set during this time period to make sure the District is receiving enough tax revenue to meet the District’s debt obligation. The District plan was to strategically use fund balance until the State provided full funding based on the School Finance Act and Amendment 23. The District’s expenditures reflect the need to remain competitive as to employee compensation and for student program/learning opportunities. As a Turn-Around and Priority Improvement district, Englewood Schools cannot afford to skimp on the educational needs of our students and the staff that is required to meet those needs. ACTIONS TAKEN: The debt schedule in place is adequate to meet the needs of the district’s debt obligation, leaving a zero fund balance at the end of the debt payback period. The district is working on the Fiscal Year 2015-2016 budget, looking at making $500,000-$750,000 worth of cuts including reductions in: staffing, adding one furlough day, professional development, supply budgets, substitute coverage, extra duty pay, health benefit coverage and contributions to the Capital Reserve Fund. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-8 PRITCHETT SCHOOL DISTRICT RE-3 BACA COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 800 Gen Fund Total Rev 1,150 700 Dollars (In Thousands) Dollars (In Thousands) 1,200 1,100 Gen Fund Expenditures +/- Net Transfers 1,050 1,000 950 2012 2013 2012 $1,145,432 $1,186,968 500 400 Gen Fund Bal 300 200 100 2012 2014 2013 $1,037,152 $1,120,209 2014 $1,026,598 $1,140,882 Change in Fund Balance Ratio 0.1 0.05 0 -0.05 -0.1 -0.15 2013 -0.04 -0.08 2013 2014 2013 $657,043 $573,986 2014 $573,986 $459,702 3 YEAR CFBR TRENDING 0.15 2012 2012 $698,579 $657,043 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING OMR PY Gen Fund Bal - 900 Revenue Expenditures 600 2014 -0.11 0 -0.05 -0.1 -0.15 -0.2 -0.25 2012 CFBR -0.06 2013 2014 -0.13 -0.20 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-9 PRITCHETT SCHOOL DISTRICT RE-3 BACA COUNTY 57 Students UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. ▼10 Since 2012 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE PRITCHETT SCHOOL DISTRICT: The previous superintendent failed to complete budgetary obligations and was removed and replaced. The District is on pace to keep expenditures within projected revenues this year and will add back to reserves next year if projected funding remains without reductions. The District is making strides towards becoming financially sound in the near future. ACTIONS TAKEN: The Pritchett Board of Education is aware of the District’s financial situation that has been impacted by state funding cuts without corresponding cuts made by the district for Fiscal Years 2012-2014. The District Board of Education took the following actions for the Fiscal Year 2014-2015 school year: Teaching staff was cut by 3.5 members from a 12 member staff, 29%, one hot lunch personnel was cut 50% and maintenance was cut 0.25%. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-10 SPRINGFIELD SCHOOL DISTRICT RE-4 BACA COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 1,700 Gen Fund Total Rev 2,800 1,650 Dollars (In Thousands) Dollars (In Thousands) 2,900 2,700 Gen Fund Expenditures +/- Net Transfers 2,600 2,500 2,400 2012 1,550 1,500 1,400 1,350 2013 2012 $2,620,523 $2,500,724 2012 2014 2013 $2,571,267 $2,645,745 2014 $2,654,554 $2,845,094 0.05 2013 -0.03 2014 2013 $1,648,384 $1,633,363 2014 $1,633,363 $1,442,823 3 YEAR CFBR TRENDING 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 2012 2013 2012 $1,528,586 $1,648,385 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) Gen Fund Bal 1,450 3 YEAR OMR TRENDING OMR PY Gen Fund Bal 1,300 2,300 Revenue Expenditures 1,600 2014 -0.07 0.1 0.05 0 -0.05 -0.1 -0.15 CFBR 2012 0.08 2013 2014 -0.01 -0.12 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-11 SPRINGFIELD SCHOOL DISTRICT RE-4 BACA COUNTY 267 Students UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ▼3 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE SPRINGFIELD SCHOOL DISTRICT: An expected decrease in state funds due to the “negative factor” forced the District to off-set this loss through its general fund balance. The District had unexpected transportation expenses to replace a bus that became inoperable after the first of the year. This bus also required a new motor less than one month into its use. The District has also experienced an increase in maintenance costs to repair and maintain its facility. ACTIONS TAKEN: An increase in staff salaries will not be offered this year outside of the step for cost of living. The District will continue to use our current reading series one more year and budget a newer version in the 2015-2016 budget. Instead of buying a new maintenance pick-up, the District has decided to purchase a rebuilt motor for the current one. If expenses continue to increase and funding decreases, the District will be forced to cut programs/staff or decide to continue to spend down our fund balance. Consideration may also be given to working for an increase in the mill levy. The District Board is beginning to work with administration and staff on a three- and five-year plan for program, building and transportation costs. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-12 NORTH CONEJOS SCHOOL DISTRICT RE-1J CONEJOS COUNTY 9,000 8,800 8,600 8,400 8,200 8,000 7,800 7,600 7,400 7,200 7,000 6,800 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 7,000 Gen Fund Total Rev 6,000 Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) Gen Fund Expenditures +/- Net Transfers PY Gen Fund Bal 5,000 4,000 3,000 Gen Fund Bal 2,000 1,000 - 2012 2013 2012 $7,657,909 $7,845,272 Revenue Expenditures 2012 2014 2013 $7,539,175 $8,018,297 2014 $7,656,014 $8,719,218 0.1 0.05 0 -0.05 -0.1 -0.15 OMR 2012 2013 -0.02 -0.06 2014 2014 2013 $5,653,700 $5,174,578 2014 $5,174,578 $4,111,374 3 YEAR CFBR TRENDING Change in Fund Balance Ratio 0.15 2012 $5,841,063 $5,653,700 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING 2013 -0.14 0 -0.05 -0.1 -0.15 -0.2 -0.25 2012 CFBR -0.03 2013 2014 -0.08 -0.21 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-13 NORTH CONEJOS SCHOOL DISTRICT RE-1J CONEJOS COUNTY 1,023 UNDERSTANDING THE RATIOS Students ▼27 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. RESPONSE ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. NORTH CONEJOS SCHOOL DISTRICT: First, fiscal irresponsibility and erroneous accounting including but not limited to staff raises, fines incurred to the CDE and the spending of the beginning fund balance without District Board approval for purchases of new facilities and other expenditures, have seriously depleted reserves. Thus, expenditures outpacing revenues became the norm, and borrowing from reserves was utilized to provide revenue to cover such decisions. ACTIONS TAKEN: A budget will be established in alignment with incoming revenue. The District has made changes to operating procedures such as purchases will not be approved unless requests are within a balanced budget. Accurate and thorough accounting measures, including changing financial personnel has taken place, and practices of allowing monies to be utilized in excess of the budget will simply not be approved. Open and honest reporting to the District Board of Education is now underway with full disclosure. The District Board has established protocols with heavy oversight of financial movements. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-14 SOUTH CONEJOS SCHOOL DISTRICT RE-10 CONEJOS COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 700 Gen Fund Total Rev 2,700 600 Dollars (In Thousands) Dollars (In Thousands) 2,750 2,650 2,600 Gen Fund Expenditures +/- Net Transfers 2,550 2,500 2,450 400 300 100 - 2012 2013 2012 $2,533,635 $2,529,238 2012 2014 2013 $2,514,620 $2,585,934 2014 $2,583,589 $2,718,623 Change in Fund Balance Ratio Operating Margin Ratio (%) -0.01 -0.02 -0.03 -0.04 -0.05 -0.06 0 2013 -0.03 2013 2014 2013 $603,998 $532,684 2014 $483,922 $348,888 3 YEAR CFBR TRENDING 0 2012 2012 $599,601 $603,998 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING OMR Gen Fund Bal 200 2,400 Revenue Expenditures PY Gen Fund Bal 500 2014 -0.05 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 CFBR 2012 0.01 2013 2014 -0.12 -0.28 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-15 SOUTH CONEJOS SCHOOL DISTRICT RE-10 CONEJOS COUNTY 229 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. Students ▼25 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE SOUTH CONEJOS SCHOOL DISTRICT: South Conejos School District had a significant increase in assessed valuation for property taxes, which was planned, but not all of the taxes came in by June 30th. These excess funds were expected to be received in the fall. The actual receipts for the property taxes assessed for 2013 and received in 2014, were $220,000 short. Had the District received all of them, the District would have had an increase in the general fund balance of $85,000. ACTIONS TAKEN: In the future the financials will reflect property taxes in the year they are milled in order to present a more accurate financial picture. The board and school administration will also be looking at personnel structure to determine if there are areas where the district can reduce expenditures. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-16 SIERRA GRANDE SCHOOL DISTRICT R-30 COSTILLA COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 3,600 Gen Fund Total Rev 3,400 Dollars (In Thousands) Dollars (In Thousands) 3,500 3,300 Gen Fund Expenditures +/- Net Transfers 3,200 3,100 3,000 2,900 2,800 2012 2013 2012 $3,066,248 $3,526,841 Revenue Expenditures PY Gen Fund Bal Gen Fund Bal 2012 2014 2013 $3,349,457 $3,561,296 2014 $3,105,982 $3,304,269 0.1 0.05 0 -0.05 -0.1 -0.15 2012 2013 2014 -0.15 -0.06 -0.06 2013 2014 2013 $880,313 $668,474 2014 $668,474 $470,187 3 YEAR CFBR TRENDING Change in Fund Balance Ratio 0.15 2012 $740,906 $880,313 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING OMR 1,000 900 800 700 600 500 400 300 200 100 - 0.3 0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 2012 CFBR 0.19 2013 2014 -0.24 -0.30 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-17 SIERRA GRANDE SCHOOL DISTRICT R-30 COSTILLA COUNTY 266 Students UNDERSTANDING THE RATIOS ▼5 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE SIERRA GRANDE SCHOOL DISTRICT: The District missed the OMR and CFBR benchmarks due to the retirement of the District’s bond fund in 2012, which through voter approval moved the reserve to the general fund. The District however spent the additional fund balance to acquire a new roof and boiler system. Due to the negative factor, the District has struggled in maintaining a revenue source to meet general upkeep needs and to support the staff. The District has been forced to complete needed upgrades to the facility. Finally, additional staffing has been required to meet the needs of at-risk students. ACTIONS TAKEN: The District has reduced spending during the Fiscal Year 2014-2015 budget year through staffing cuts and spending reductions. The District Administration and Local Board of Education feel confident that the Fiscal Year 2014-2015 general fund balance will be higher than in Fiscal Year 20132014. Through attrition, the District will reduce staffing costs during the Fiscal Year 2015-2016 budget year as well. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-18 HANOVER SCHOOL DISTRICT 28 EL PASO COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) Gen Fund Total Rev 3,000 Dollars (In Thousands) Dollars (In Thousands) 3,500 2,500 2,000 Gen Fund Expenditures +/- Net Transfers 1,500 1,000 500 2012 2012 $2,710,846 $2,633,414 Revenue Expenditures PY Gen Fund Bal Gen Fund Bal 2012 2014 2013 $2,579,890 $2,855,126 2014 $2,799,697 $3,172,704 2012 $792,838 $870,270 PY Fund Bal CY Fund Bal 2013 2014 2013 $870,270 $595,034 3 YEAR OMR TRENDING 3 YEAR CFBR TRENDING 0.05 0.2 0.1 0 -0.1 -0.2 -0.3 -0.4 -0.5 -0.6 -0.7 Change in Fund Balance Ratio Operating Margin Ratio (%)e 2013 1,000 900 800 700 600 500 400 300 200 100 - 0 -0.05 -0.1 -0.15 OMR 2012 2013 0.03 -0.11 2014 -0.13 CFBR 2012 2013 0.10 -0.32 2014 $595,034 $222,027 2014 -0.63 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-19 HANOVER SCHOOL DISTRICT 28 EL PASO COUNTY 226 ▼13 UNDERSTANDING THE RATIOS Students Since 2012 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. RESPONSE ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. HANOVER SCHOOL DISTRICT: Due to budget cuts amounting to nearly $2 million dollars over five years, the District had to reduce accounting positions so as to not take teachers out of the classroom. During the same time period our student count increased each year causing us to need additional classrooms and teachers, which was also a result of the new state accountability measures. An accounting error was made giving the board and superintendent the belief that the District had more money than it did. It was not discovered until our audit was completed in December 2014. ACTIONS TAKEN: The District has adjusted its budgets and has recovered with the full expectation of slightly increasing our fund balance at the end of the 2015 fiscal year. The District has replaced a 20-year-old accounting system with one that is web based and provides real time data which will prevent errors from occurring again. The School Board has tightened the District’s spending, and is looking at additional energy saving costs including closing the buildings during the summer to avoid cooling costs. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-20 MANITOU SPRINGS SCHOOL DISTRICT 14 EL PASO COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 13,100 4,500 Gen Fund Total Rev 12,900 4,000 Dollars (In Thousands) Dollars (In Thousands) 13,000 12,800 12,700 Gen Fund Expenditures +/- Net Transfers 12,600 12,500 12,400 12,300 2012 2013 2,500 2,000 Gen Fund Bal 1,500 1,000 500 2012 2014 2012 2013 2014 Revenue $12,636,195 $12,504,698 $12,499,015 Expenditures $12,640,405 $12,817,630 $13,053,557 Change in Fund Balance Ratio -0.01 -0.02 -0.03 -0.04 -0.05 2013 2014 0 -0.03 -0.04 2014 2013 $4,233,593 $3,920,661 2014 $3,788,203 $3,233,661 3 YEAR CFBR TRENDING 0 2012 2013 2012 $4,237,803 $4,233,593 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING Operating Margin Ratio (%) PY Gen Fund Bal 3,000 - 12,200 OMR 3,500 0 -0.02 -0.04 -0.06 -0.08 -0.1 -0.12 -0.14 -0.16 2012 CFBR 0 2013 2014 -0.07 -0.15 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-21 MANITOU SPRINGS SCHOOL DISTRICT 14 EL PASO COUNTY ▼13 Since 2012 UNDERSTANDING THE RATIOS 1,422 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. Students An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE MANITOU SPRINGS SCHOOL DISTRICT: The District reached a low point for General Fund balance at the end of Fiscal Year 2006. The passage of a mill levy override in November 2006 corrected this situation, and the District made a deliberate effort to build up its fund balance to $4.2 million at the end of Fiscal Years 2011 and 2012. This was 36% of expenditures, well above the 15% or so that a District our size needs. Given the size of the fund balance, and the negative factor to State share payments of $1.793 million in Fiscal Year 2013 and $1.745 million in Fiscal Year 2014, the District adopted budgets for those years to begin to draw down the fund balance. ACTIONS TAKEN: The District plans to adopt a budget for Fiscal Year 2016 that draws down fund balance, but this may be the last such budget adopted. The District is strongly considering a mill levy override (MLO) election in November 2015. Our target at this time is to maintain a fund balance at or above 20% of expenditures. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-22 WIDEFIELD SCHOOL DISTRICT 3 EL PASO COUNTY 67,000 66,000 65,000 64,000 63,000 62,000 61,000 60,000 59,000 58,000 57,000 56,000 RATIO (CFBR) 17,500 Gen Fund Total Rev 17,000 Gen Fund Expenditures +/- Net Transfers 16,000 15,500 14,500 2013 2012 2014 2012 2013 2014 $60,977,962 $62,291,554 $64,063,766 $59,541,306 $62,374,736 $65,789,151 0.02 2013 2014 0 -0.03 2014 3 YEAR CFBR TRENDING 0.03 0.02 0.01 0 -0.01 -0.02 -0.03 -0.04 2012 2013 2012 2013 2014 $15,546,026 $16,982,682 $16,899,500 $16,982,682 $16,899,500 $15,174,115 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) Gen Fund Bal 15,000 3 YEAR OMR TRENDING OMR PY Gen Fund Bal 16,500 14,000 2012 Revenue Expenditures 3 YEAR CHANGE IN FUND BALANCE Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) 0.1 0.05 0 -0.05 -0.1 -0.15 2012 CFBR 0.09 2013 0 2014 -0.10 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-23 WIDEFIELD SCHOOL DISTRICT 3 EL PASO COUNTY 8,697 Students UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ▲119 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE WIDEFIELD SCHOOL DISTRICT: The District purposefully planned to use Fund Balance to address some of its lower performing schools as well as a district wide staff development process to increase student achievement. The fund balance still maintains the standard of between 2-3 months of operating expenses. Decreased funding from the State has forced the District to use fund balance rather than current operating funds to accomplish its goals. ACTIONS TAKEN: The District Board has set the goal of having a balanced budget by Fiscal Year 2017-2018 with a fund balance of $10+ million. The District Board has directed the District to use fund balance to improve our student achievement and the District has planned this usage carefully. The ratios over a couple year period do not concern the District Board as much as continuing to have enough resources in the fund balance which the District has planned for. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-24 BIG SANDY SCHOOL DISTRICT 100J ELBERT COUNTY 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 3 YEAR DEBT BURDEN RATIO (DBR) 1,400 200 Dollars (In Thousands) Dollars (In Thousands) 250 Gov Funds Total Revenue Paying Debt Service 150 100 Gov Funds Annual Debt Service 50 1,200 1,000 600 Gen Fund Bal 400 200 - 2012 Rev for Debt Debt Service PY Gen Fund Bal 800 2013 2012 $224,854 $ 57,409 2012 2014 2013 $237,476 $215,813 2014 $198,628 $213,454 2014 2013 $1,313,905 $1,095,284 2014 $1,095,284 $ 883,269 3 YEAR CFBR TRENDING 0 Change in Fund Balance Ratio 5 Debt Burden(%) 2012 $1,328,032 $1,313,905 PY Fund Bal CY Fund Bal 3 YEAR DBR TRENDING 4 3 2 1 0 DBR 2013 2012 2013 2014 3.92 1.1 0.93 -0.05 -0.1 -0.15 -0.2 2012 CFBR -0.01 2013 -0.17 2014 -0.19 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-25 BIG SANDY SCHOOL DISTRICT 100J ELBERT COUNTY 298 Students UNDERSTANDING THE RATIOS ▼8 The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. Since 2012 A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE BIG SANDY SCHOOL DISTRICT: The underlying factor that contributed to the missed benchmarks is due to the impact of the Negative Factor. ACTIONS TAKEN: The District has been working with our legislators to restore the revenue that was taken away from the District. The District has also been cutting programs, staff, and other budget items including not purchasing a new bus in the past nine years. The District used some fund balance for its new building project and some fund balance for over staffing as the District waited for some retirements. The District had built the fund balance up to a healthy amount 4 years ago and the District Board discussed spending fund balance each of these past 3 years. The money that the legislators used to buy down a portion of the negative factor during the 2014 session was a great start. The possibility of $20 million being given to rural schools during the 2015 legislative session is also a great start in restoring some of the inequities resulting from the unproportioned cuts in the funding factors caused by the Negative Factor. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-26 EAST GRAND SCHOOL DISTRICT 2 GRAND COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 3,800 Gen Fund Total Rev 11,400 3,700 Dollars (In Thousands) Dollars (In Thousands) 11,600 11,200 Gen Fund Expenditures +/- Net Transfers 11,000 10,800 10,600 2012 2013 3,400 3,300 Gen Fund Bal 3,200 3,100 3,000 2012 2014 2012 2013 2014 $11,462,368 $10,789,300 $10,909,919 $11,059,348 $11,002,373 $11,187,092 PY Fund Bal CY Fund Bal 2013 2012 $3,287,457 $3,690,477 2014 2013 $3,690,476 $3,477,403 3 YEAR OMR TRENDING 3 YEAR CFBR TRENDING 0.05 0.04 0.03 0.02 0.01 0 -0.01 -0.02 -0.03 -0.04 0.15 2012 OMR 0.04 2013 -0.02 Change in Fund Balance Ratio Operating Margin Ratio (%) PY Gen Fund Bal 3,500 2,900 10,400 Revenue Expenditures 3,600 2014 -0.03 2014 $3,477,403 $3,200,230 0.1 0.05 0 -0.05 -0.1 CFBR 2012 2013 0.12 -0.06 2014 -0.08 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-27 EAST GRAND SCHOOL DISTRICT 2 GRAND COUNTY 1,233 Students UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ▼69 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE EAST GRAND SCHOOL DISTRICT: The cause for the use of reserves and an overall decrease in the ending fund balance is because of reductions in funding by the State through the use of the Negative Factor, which has removed over $4.3M in funding for fiscal years ending 2012-2014. Also the District has been facing declining enrollment each year. The District is also a party in a legal suit concerning the taxability of a major property owner which has caused over $200k in uncollectible property tax for fiscal years ending 2012-2014. ACTIONS TAKEN: The District has made multiple cuts over time, including closing a school; however, without the spend-down of reserves, drastic cuts would have been required and the impact on student achievement would have been devastating. The District built the fund balance up to a healthy amount 3 years ago and the District Board of Education approved budgets where it knew reserves would be utilized in order to continue to preserve programs and staff. The District was aware that decreasing the fund balance would trigger the financial indicators but the District still feels it has adequate reserves which equal 3.5 months of general fund expenditures. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-28 DURANGO SCHOOL DISTRICT 9-R LA PLATA COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 44,000 14,000 Gen Fund Total Rev 42,000 12,000 Dollars (In Thousands) Dollars (In Thousands) 43,000 41,000 40,000 Gen Fund Expenditures +/- Net Transfers 39,000 38,000 37,000 36,000 8,000 6,000 Gen Fund Bal 4,000 2,000 - 35,000 2012 2013 2012 2014 2012 2013 2014 $39,409,150 $39,065,588 $40,300,181 $38,116,203 $41,193,463 $42,964,019 Revenue Expenditures Change in Fund Balance Ratio 0.02 0 -0.02 -0.04 -0.06 -0.08 OMR 0.03 2013 -0.05 2014 3 YEAR CFBR TRENDING 0.04 2012 2013 2012 2013 2014 $ 9,672,733 $11,430,802 $9,302,927 $10,965,680 $ 9,302,927 $6,639,089 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING Operating Margin Ratio (%) PY Gen Fund Bal 10,000 2014 -0.07 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 -0.35 CFBR 2012 2013 2014 0.13 -0.19 -0.29 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-29 DURANGO SCHOOL DISTRICT 9-R LA PLATA COUNTY ▼82 Since 2012 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. 4,362 Students An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE DURANGO SCHOOL DISTRICT: The underlying cause for missing the benchmarks was the result of an increase in the instructional and pupil support services salaries and benefits. The increase in salary and benefit costs to meet student needs exceeded our state and local revenue causing a reduction in fund balance from Fiscal Year 2012 and Fiscal Year 2013. ACTIONS TAKEN: The District has taken steps in Fiscal Year 2015 to turn the trend around through attrition and early retirement incentives for teachers. The District Board of Education and Superintendent have also worked together to improve the District’s financial condition by limiting the growth in new staff, keeping operational costs at a minimum and deferring capital maintenance. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-30 KARVAL SCHOOL DISTRICT RE-23 LINCOLN COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 2,000 1,600 Gen Fund Total Rev 1,600 1,400 Dollars (In Thousands) Dollars (In Thousands) 1,800 1,400 1,200 Gen Fund Expenditures +/- Net Transfers 1,000 800 600 400 200 1,200 PY Gen Fund Bal 1,000 800 Gen Fund Bal 600 400 200 - 2012 2013 2012 $1,732,304 $1,886,432 Revenue Expenditures 2012 2014 2013 $1,334,131 $1,623,255 2014 $1,247,880 $1,542,178 0.2 0.1 0 -0.1 -0.2 -0.3 OMR 2012 2013 2014 -0.09 -0.22 -0.24 2014 2013 $1,248,212 $1,059,088 2014 $1,059,088 $ 764,790 3 YEAR CFBR TRENDING Change in Fund Balance Ratio 0.3 2012 $1,402,340 $1,248,212 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING 2013 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 2012 CFBR -0.11 2013 2014 -0.15 -0.28 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-31 KARVAL SCHOOL DISTRICT RE-23 LINCOLN COUNTY 106 Students UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ▼94 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE KARVAL SCHOOL DISTRICT: The District’s enrollment of the brick and mortar and online schools were significantly lower for the 2013 October count than was anticipated and budgeted for. Current Fiscal Year 2015 on-site enrollment is at 41 students. The District is being funded at 50 students thanks to a school finance provision made in 2013. As long as this funding formula remains in place, the District will likely be able to operate in the black for the 2014-2015 school-year, and hopefully years to follow. ACTIONS TAKEN: There has been growth in the primary grades with increased enrollment in Kindergarten, first, and second grades. The District and the Local Board of Education continue to work diligently with all who will listen at the state level to work to continue to buy down the negative factor and restore state funding levels. This would be a positive financial step, not only for Karval School District, but also for all Colorado districts. District administration, staff, and the board are working to provide seamless communications with parents and the community, and to offer high quality 21st Century instruction in a safe, rural community. The primary short term goal for the district is to maintain the enrollment of the district, and focus on instruction and curriculum of the brick and mortar school now that the on-line school is closed. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-32 FRENCHMAN SCHOOL DISTRICT RE-3 LOGAN COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 1,400 Gen Fund Total Rev 2,500 1,200 Dollars (In Thousands) Dollars (In Thousands) 2,600 2,400 2,300 Gen Fund Expenditures +/- Net Transfers 2,200 2,100 2,000 2012 2013 Gen Fund Bal 400 200 2012 $2,233,304 $2,129,577 2012 2013 $2,236,407 $2,364,079 2014 $2,352,201 $2,532,812 0.05 2013 -0.06 2014 2013 $1,234,921 $1,107,249 2014 $1,107,249 $ 926,638 3 YEAR CFBR TRENDING 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 2012 2013 2012 $1,131,194 $1,234,921 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) 600 2014 3 YEAR OMR TRENDING OMR 800 - 1,900 Revenue Expenditures PY Gen Fund Bal 1,000 2014 -0.08 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 2012 CFBR 0.09 2013 2014 -0.10 -0.16 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-33 FRENCHMAN SCHOOL DISTRICT RE-3 LOGAN COUNTY UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. 190 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. Students RESPONSE ▲10 Since 2012 FRENCHMAN SCHOOL DISTRICT: The cause for the decrease in the ending fund balance is because of the reduction of funding from the State. Starting in 2009, the State has withheld over $1.5 million of funding from the District through the negative factor. The District has made cuts in staff, programs and other expenditures over the years to keep from using the fund balance. The last two years the District School Board approved the use of the beginning fund balance for the purpose of purchasing a new bus and technology updates. ACTIONS TAKEN: Although the District has a current reserve of four and half months of fund balance, the goal is to not use the fund balance. The District has worked hard over the years by cutting and asking staff to take on more responsibilities, and by delaying major purchases. Because of the Negative Factor and increases in expenditures that we have no control over, such as PERA, utilities, fuel, maintenance and repairs, the District found it difficult to not use fund balance for ongoing expenses. If there are any major purchases, the District will need to use its fund balance. The School Board is well aware of the decrease in the fund balance and has always monitored the finances on a monthly basis. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-34 CREEDE SCHOOL DISTRICT MINERAL COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 1,800 Gen Fund Total Rev 1,400 Dollars (In Thousands) Dollars (In Thousands) 1,600 1,200 1,000 Gen Fund Expenditures +/- Net Transfers 800 600 400 200 2012 2013 2012 $1,662,374 $1,591,977 Revenue Expenditures 2013 $1,506,223 $1,690,167 0 -0.05 -0.1 -0.15 -0.2 OMR 0.04 -0.12 Gen Fund Bal 2012 2014 $1,404,780 $1,631,037 2014 2013 2012 $1,814,841 $1,885,238 PY Fund Bal CY Fund Bal 2014 2013 $1,885,238 $1,701,294 2014 $1,701,294 $1,475,037 3 YEAR CFBR TRENDING Change in Fund Balance Ratio Operating Margin Ratio (%) 0.05 2013 PY Gen Fund Bal 2014 3 YEAR OMR TRENDING 2012 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - -0.16 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 -0.12 -0.14 CFBR 2012 2013 0.04 -0.10 2014 -0.13 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-35 CREEDE SCHOOL DISTRICT MINERAL COUNTY 85 UNDERSTANDING THE RATIOS Students The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ▼13 Since 2012 RESPONSE ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. CREEDE SCHOOL DISTRICT: The negative factor and declining enrollment have been the causes of the decreased revenues which has forced the District to rely on its fund balance. ACTIONS TAKEN: Due to the decreased revenue, the District has been forced to cut programs, faculty, and staff. Its vocational business program and home economics program have been eliminated. Three of the six elementary teachers have or will be cut; grades K-1 and grades 2-3 are now combined, and next year grades 4-5 will be combined. Maintenance and custodial staff has been reduced. Employee benefits have been reduced and salaries have been frozen for two years in a row. The District Board, in an attempt to stave off further cuts, is selling property to help offset the deficit caused in large part to the negative factor. The District Board is aware that unless the negative factor is eliminated, it will be forced to further reduce its beginning fund balance or continue to make drastic cuts and program eliminations. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-36 MOFFAT SCHOOL DISTRICT RE1 MOFFAT COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 8,200 Gen Fund Total Rev 20,000 8,000 Dollars (In Thousands) Dollars (In Thousands) 20,500 19,500 19,000 Gen Fund Expenditures +/- Net Transfers 18,500 18,000 17,500 7,800 7,400 7,200 Gen Fund Bal 7,000 6,800 6,600 6,400 17,000 2012 2013 2012 2014 2012 2013 2014 $18,995,271 $18,391,258 $19,753,898 $18,733,593 $18,813,731 $20,297,973 Revenue Expenditures Change in Fund Balance Ratio 0.01 0 -0.01 -0.02 -0.03 -0.04 OMR 0.01 2013 -0.02 2014 2013 $7,961,721 $7,539,248 2014 $7,539,248 $6,995,173 3 YEAR CFBR TRENDING 0.02 2012 2013 2012 $7,700,043 $7,961,721 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING Operating Margin Ratio (%) PY Gen Fund Bal 7,600 2014 -0.03 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 CFBR 2012 0.03 2013 2014 -0.05 -0.07 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-37 MOFFAT SCHOOL DISTRICT RE1 MOFFAT COUNTY 2,168 Students UNDERSTANDING THE RATIOS ▼57 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. Since 2012 RESPONSE MOFFAT SCHOOL DISTRICT: The underlying causes for missing the benchmarks are a combination of decreases in revenue and increase in expenses. On the revenue side the District is not only dealing with the negative factor but is also in the bottom of the state for per pupil funding combined with decreasing enrollment. On the expenditure side the District is dealing with increased state and federal mandates for teacher evaluations, student testing and special populations. The District is also in the process of aligning its curriculum to ensure that the framework is in place for student achievement. ACTIONS TAKEN: The District has had a healthy fund balance, which has allowed for the spending of one-time costs for training needs and technology infrastructure necessary for testing over the last several years. The District has also frozen salaries for the 2014-2015 school year and reduced capital budgets to mainly technology needs. The District Board of Education has set a goal to create a 3 to 5 year financial plan, which is in process with a completion date of December 31, 2015. This financial plan will integrate the District’s vision for the future along with the funding necessary. With not much hope from the state legislature in the form of reducing the negative factor it is likely that the District will go to local taxpayers with a ballot question for increased property taxes in the near future. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-38 BRUSH SCHOOL DISTRICT RE-2(J) MORGAN COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 4,000 Gen Fund Total Rev 11,500 3,500 Dollars (In Thousands) Dollars (In Thousands) 12,000 11,000 Gen Fund Expenditures +/- Net Transfers 10,500 10,000 2012 2013 2,000 Gen Fund Bal 1,500 1,000 500 2012 2012 2013 2014 $10,519,366 $10,971,726 $11,143,571 $10,275,334 $11,328,690 $11,661,081 0.02 2013 -0.03 2014 2013 $3,712,860 $3,371,871 2014 $3,371,871 $2,854,361 3 YEAR CFBR TRENDING 0.03 0.02 0.01 0 -0.01 -0.02 -0.03 -0.04 -0.05 -0.06 2012 2013 2012 $3,468,828 $3,712,860 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) 2,500 2014 3 YEAR OMR TRENDING OMR PY Gen Fund Bal - 9,500 Revenue Expenditures 3,000 2014 -0.05 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 2012 CFBR 0.07 2013 2014 -0.09 -0.15 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-39 BRUSH SCHOOL DISTRICT RE-2(J) MORGAN COUNTY UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. 1,478 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. Students A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. ▲50 Since 2012 RESPONSE BRUSH SCHOOL DISTRICT: The District School Board purposely approved the budgets knowing the revenues would be less than the expenditures plus transfers. This occurred as part of the District Board approving the use of beginning fund balance to help offset the negative factor from the state underfunding for the Public School Finance Act. ACTIONS TAKEN: The District Board and Superintendent have acknowledged the use of beginning fund balance as part of their recent budgets, but will implement a balanced budget for Fiscal Year 2015-2016. The District Board will approve a balanced budget for Fiscal Year 2015-2016 and will avoid a negative operating margin ratio for the fiscal year and will also avoid using prior year fund balance. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-40 EAST OTERO SCHOOL DISTRICT R-1 OTERO COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 4,500 Gen Fund Total Rev 10,000 4,000 Dollars (In Thousands) Dollars (In Thousands) 10,500 9,500 Gen Fund Expenditures +/- Net Transfers 9,000 8,500 3,500 2,500 2,000 1,000 500 - 2012 2013 2012 $9,262,305 $8,917,088 2012 2014 2013 $9,687,033 $9,807,736 2014 $ 9,566,942 $10,248,017 0.04 -0.01 Change in Fund Balance Ratio Operating Margin Ratio (%) 2013 2014 2013 $4,135,023 $4,014,320 2014 $4,014,320 $3,333,245 3 YEAR CFBR TRENDING 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 2012 2013 2012 $3,789,806 $4,135,023 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING OMR Gen Fund Bal 1,500 8,000 Revenue Expenditures PY Gen Fund Bal 3,000 2014 -0.07 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 CFBR 2012 0.09 2013 2014 -0.03 -0.17 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-41 EAST OTERO SCHOOL DISTRICT R-1 OTERO COUNTY 1,315 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. Students ▼16 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE EAST OTERO SCHOOL DISTRICT: The District missed benchmarks due to decreased revenue from state equalization per the negative factor. The District also provided staff with an increase in salary and the benefit package after three years of no increase in order to promote staff morale and retention. ACTIONS TAKEN: The District has reclassified employee salaries and benefits to Title funds to reduce impact on the General Fund. The District Board is also considering mill levy override in the November 2015 election. The District has reduced staff where possible, both classified and certified, and limited the insurance benefit given to staff. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-42 RIDGWAY SCHOOL DISTRICT R-2 OURAY COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 4,200 1,600 Gen Fund Total Rev 4,000 1,550 Dollars (In Thousands) Dollars (In Thousands) 4,100 3,900 3,800 Gen Fund Expenditures +/- Net Transfers 3,700 3,600 3,500 3,400 1,450 1,400 Gen Fund Bal 1,350 1,300 1,250 3,300 2012 2012 $3,792,150 $3,636,406 Revenue Expenditures 2013 2012 2014 2013 $3,792,340 $3,809,825 2014 $3,972,364 $4,136,003 Change in Fund Balance Ratio 0.04 0.02 0 -0.02 -0.04 -0.06 OMR 0.04 2013 0 2014 2013 $1,562,706 $1,545,221 2014 $1,545,221 $1,381,582 3 YEAR CFBR TRENDING 0.06 2012 2013 2012 $1,406,962 $1,562,706 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING Operating Margin Ratio (%) PY Gen Fund Bal 1,500 2014 -0.04 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 2012 CFBR 0.11 2013 2014 -0.01 -0.11 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-43 RIDGWAY SCHOOL DISTRICT R-2 OURAY COUNTY 325 UNDERSTANDING THE RATIOS Students The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. ▼9 Since 2012 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. RESPONSE ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RIDGWAY SCHOOL DISTRICT: The District’s reasons behind the reductions in fund balance include: A B C D Use of fund balance/reserves to address capital projects which improved the safety of the elementary school (i.e. safety glass, secured entrance, alarm system upgrade). District-wide technology upgrades and procurement of computers for instruction. Approval of a staff compensation bonus structure as a nonrecurring expense, thus ensuring continued ability of the district to meet future operational financial obligations. Completion of secondary school athletic field upgrade. ACTIONS TAKEN: While the District retains a 33% fund balance, the District Board is cognizant of the need to protect the fund using a balanced budget approach. With an overall reserve ratio of 0.334 for Fiscal Year 2014, the district operational reserves are healthy. The District Board is actively involved in budgetary prioritization and oversight and aware of the need to maintain operational reserves of no less than 28%. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-44 PUEBLO COUNTY RURAL SCHOOL DISTRICT 70 PUEBLO COUNTY UNDERSTANDING THE RATIOS 16,000 14,000 12,000 10,000 8,000 6,000 2,000 - 2012 2013 2014 A school district is below the benchmark if it has consistently decreasing ORR with the most recent year's fund balance less than one week of expenditures, or an ORR below 0.0192 for all three years. 2012 $15,354,884 $ 9,142,054 Assets Liabilities 2013 2014 $10,170,358 $8,099,676 $ 8,287,839 $8,541,684 80,000 70,000 2 1.5 1 0.5 0 2012 2013 2014 ASR 1.68 1.23 0.95 Gen Fund Expenditures +/Net Transfers 60,000 50,000 40,000 30,000 20,000 Gen Fund Bal 10,000 - 2012 2013 2014 (10,000) 2012 2013 Expenditures $71,891,094 $62,725,239 Gen Fund Bal $ 6,212,830 $ 1,882,519 2014 $63,404,245 ($ 442,008) 3 YEAR ORR TRENDING 3 YEAR ASR TRENDING Asset Sufficiency(%) An ORR of 1/52 or 0.0192, equates or one week of reserves for current expenditures and transfers. Gen Fund Total Liabilities and Deferred Inflows 4,000 ——— The OPERATING RESERVE RATIO indicates the amount the general fund ending fund balance will cover of the current year general fund expenditures, including transfers. Gen Fund Total Assets and Deferred Outflows Operating Reserve (%) A school district is below the benchmark if it has consistently decreasing ASR with the most recent year less than 1.0,or an ASR less than 1.0 for all three years under analysis. 18,000 Dollars (In Thousands) An ASR of 1.0 would indicate that total assets equals total liabilities. 3 YEAR OPERATING RESERVE RATIO (ORR) 3 YEAR ASSET SUFFICIENCY RATIO (ASR) Dollars (In Thousands) The ASSET SUFFICIENCY RATIO indicates the coverage of general fund assets to general fund liabilities. 0.1 0.08 0.06 0.04 0.02 0 -0.02 2012 2013 2014 ORR 0.09 0.03 -0.01 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-45 PUEBLO COUNTY RURAL SCHOOL DISTRICT 70 PUEBLO COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) BALANCE RATIO (CFBR) Gen Fund Total Rev 70,000 60,000 50,000 40,000 Gen Fund Expend itures +/- Net Transfe rs 30,000 20,000 10,000 - 2012 2013 2014 12,000 10,000 Dollars (In Thousands) Dollars (In Thousands) 80,000 3 YEAR CHANGE IN FUND PY Gen Fund Bal 8,000 6,000 4,000 2,000 Gen Fund Bal (2,000) 2012 2013 2014 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— Revenue Expenditures 2012 $57,401,403 $71,891,094 2013 2014 $58,394,928 $61,053,035 $62,725,239 $63,404,245 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING 0.2 0.1 0 -0.1 -0.2 -0.3 OMR 2012 2013 2014 -0.25 -0.07 -0.04 2013 2014 $6,212,830 $1,882,519 $1,882,519 ($442,008) 3 YEAR CFBR TRENDING Change in Fund Balance Ratio 0.3 2012 $9,578,652 $6,212,830 0 -0.2 -0.4 -0.6 -0.8 -1 -1.2 -1.4 A CFBR of 0 would indicate that the fund balance had not changed from the prior year. 2012 2013 2014 CFBR The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. -0.35 -0.7 -1.23 A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-46 PUEBLO COUNTY RURAL SCHOOL DISTRICT 70 PUEBLO COUNTY 8,820 Students ▲240 Since 2012 RESPONSE PUEBLO COUNTY RURAL SCHOOL DISTRICT: Due to the decisions of the State Legislature to reduce funding for schools over the past several years, and in an effort to reduce the impact on student learning and provide a strong educational program for our students, the District Board of Education authorized the expenditure of reserves to offset a portion of the funding cuts. The District has made multiple cuts over this time, however, without the spend-down of reserves, drastic cuts would have been required and the impact on student achievement would have been devastating. ACTIONS TAKEN: The District presented a budget to the District Board of Education for fiscal year 2014-2015 that allows reserve levels to begin to be restored. Over the coming three-year period, the District will continue to restore these reserves in order to establish a fund balance acceptable to the Board of Education. The District Board of Education has approved a fund balance policy with a minimum reserve level in the General Fund to be 3% of general fund revenues in addition to the required TABOR reserves. The District has frequent and ongoing discussions about the financial position with the District Board of Education. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-47 HAYDEN SCHOOL DISTRICT RE-1 ROUTT COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 1,400 Gen Fund Total Rev 5,300 1,200 Dollars (In Thousands) Dollars (In Thousands) 5,400 5,200 Gen Fund Expenditures +/- Net Transfers 5,100 5,000 4,900 2012 2013 Gen Fund Bal 400 200 2012 $5,142,626 $4,989,734 2012 2013 $5,014,025 $5,171,490 2014 $5,068,239 $5,368,833 0.02 0 -0.02 -0.04 -0.06 -0.08 0.03 2013 -0.03 2014 2013 $1,162,519 $1,005,054 2014 $1,005,054 $ 704,460 3 YEAR CFBR TRENDING 0.04 2012 2013 2012 $1,009,627 $1,162,519 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) 600 2014 3 YEAR OMR TRENDING OMR 800 - 4,800 Revenue Expenditures PY Gen Fund Bal 1,000 2014 -0.06 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 -0.25 -0.3 -0.35 2012 CFBR 0.15 2013 2014 -0.14 -0.30 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-49 HAYDEN SCHOOL DISTRICT RE-1 ROUTT COUNTY ▼20 Since 2012 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. 373 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. Students A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE HAYDEN SCHOOL DISTRICT: The District Board of Education approved the Fiscal Year 2014 budget projecting a $765,635 ending fund balance and the actual fund balance was $704,460. The District passed a voter approved mill levy that stated the District would provide adequate upgrades and repairs to aging facilities. The District feels it is able to accomplish that goal and can move forward without having such an impact on the budget. The District is projecting a fund balance of $755,680 at the end of Fiscal Year 2015. ACTIONS TAKEN: The District Administration and the District Board of Education are working together for the Fiscal Year 2016 budget to ensure that its fund balance does not decline. The District is projecting a decline in enrollment during the next school year and plans to eliminate the equivalent of two full time positions. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-50 SILVERTON SCHOOL DISTRICT 1 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 1,600 1,400 1,200 1,000 800 600 400 200 - 900 800 700 600 500 400 300 200 100 - Gen Fund Total Rev Gen Fund Expenditur es +/- Net Transfers PY Gen Fund Bal Gen Fund Bal 2013 $1,352,034 $1,432,185 2014 2012 $1,298,512 $1,421,613 PY Fund Bal CY Fund Bal 3 YEAR OMR TRENDING OMR 2012 2013 2014 -0.01 -0.06 -0.09 60 40 0 -0.02 -0.04 -0.06 -0.08 -0.1 -0.12 -0.14 -0.16 -0.18 20 - 2012 Rev for Debt $82,836 Debt Service $87,052 2013 2014 $78,933 $87,021 $71,205 $86,988 3 YEAR DBR TRENDING 1 0.95 0.9 0.85 0.8 0.75 2012 2013 2014 CFBR Gov Funds Annual Debt Service 2014 $831,943 $826,163 $746,012 $826,163 $746,012 $622,911 3 YEAR CFBR TRENDING Change in Fund Balance (%) 0.1 0.08 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 2013 Gov Funds Total Revenue Paying Debt Service 80 2012 2013 2014 Debt Burden(%) 2012 100 2012 2013 2014 2012 2013 2014 Revenue $1,118,707 Expenditures $1,124,487 3 YEAR DEBT BURDEN RATIO (DBR) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) Dollars (In Thousands) Dollars (In Thousands) SAN JUAN COUNTY -0.01 -0.10 -0.17 DBR 2012 2013 2014 0.95 0.91 0.82 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-51 UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. SILVERTON SCHOOL DISTRICT 1 SAN JUAN COUNTY 66 An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. Students ▼1 A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. Since 2012 The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. RESPONSE SILVERTON SCHOOL DISTRICT: The District has missed the benchmark for the Debt Burden ratio for the third year in a row due to the same reason it has been missed in the past. In 2010, the District passed a bond to raise the matching Better Schools Today (BEST) funds for a school rehabilitation project. The District is currently using excess bond revenue from the first year (Fiscal Year 2011) to cover the revenue shortfall as opposed to raising the mill levy. The missed indicators in both the Operating Margin Ratio and the Change in Fund Balance ratio are due to the same reasons as in prior years. These ratios have both changed due to decreases in funding from the state, federal, and local sources. As less money comes in, the District has had to use more and more reserves to support its educational programming. ACTIONS TAKEN: In future years, the District recognizes that it will need to raise the mill levy to cover the revenue shortfall. When that happens, the District expects that it would be back in compliance with the Debt Burden Ratio. In addition, the District Board of Education is fully aware of all of these circumstances and understands these struggles to be issues that are common to many small, rural districts. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-52 ARICKAREE SCHOOL DISTRICT R-2 WASHINGTON COUNTY 1,800 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 1,600 Gen Fund Total Rev Gen Fund Expenditure s +/- Net Transfers 1,400 PY Gen Fund Bal 1,200 1,000 Gen Fund Bal 800 600 400 200 - 2012 Revenue Expenditures 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) Dollars (In Thousands) Dollars (In Thousands) 3 YEAR OPERATING MARGIN RATIO (OMR) 2012 $1,407,273 $1,508,875 2013 2014 2013 $1,473,087 $1,713,050 2012 2014 $1,605,326 $1,845,431 PY Fund Bal CY Fund Bal OMR -0.07 -0.16 Change in Fund Balance Ratio 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15 -0.2 2013 2012 $1,667,680 $1,566,078 2014 2013 $1,566,078 $1,326,115 2014 $1,326,115 $1,086,010 3 YEAR CFBR TRENDING 3 YEAR OMR TRENDING 2012 2013 2014 -0.15 0 -0.05 -0.1 -0.15 -0.2 CFBR 2012 -0.06 2013 2014 -0.15 -0.18 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-53 ARICKAREE SCHOOL DISTRICT R-2 WASHINGTON COUNTY UNDERSTANDING THE RATIOS The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. 110 Students A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— ▲9 Since 2012 RESPONSE The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. ARICKAREE SCHOOL DISTRICT: The underlying causes of the missed benchmarks were because staffing was increased two years ago to service students and we had repairs and improvements to buildings. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. ACTIONS TAKEN: The District’s budget is watched closely and there have been spending cuts. There are no further improvements that the District can afford. The District Board of Education approved and received mill levy increase of $250,000 to help keep school in a positive position. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-54 KEENESBURG SCHOOL DISTRICT RE-3J WELD COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR DEBT BURDEN RATIO (DBR) 5,000 Gov Funds Total Revenue Paying Debt Service 4,000 Dollars (In Thousands) Dollars (In Thousands) 6,000 3,000 2,000 Gov Funds Annual Debt Service 1,000 2012 Rev for Debt Debt Service 2012 $3,068,117 $3,191,744 2013 2014 2013 $3,221,389 $4,786,090 20,000 19,500 19,000 18,500 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 Gen Fund Expenditures +/- Net Transfers 2012 2013 2014 2014 $2,858,013 $2,898,260 2012 2013 2014 $16,360,537 $16,600,183 $17,039,023 $19,122,994 $19,377,132 $17,922,850 Revenue Expenditures 3 YEAR DBR TRENDING 3 YEAR OMR TRENDING 1.2 0.2 1 0.1 0.8 0.6 0 0.4 -0.1 0.2 -0.2 0 2012 2013 2014 DBR Gen Fund Total Rev 0.96 0.67 0.99 OMR 2012 2013 -0.17 -0.17 2014 -0.05 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-55 KEENESBURG SCHOOL DISTRICT RE-3J WELD COUNTY UNDERSTANDING THE RATIOS The DEBT BURDEN RATIO indicates the coverage of revenue of fund(s) paying debt service to the annual principal interest payments, including leases. A DBR of 1.0 would indicate that debt service equals the annual revenue of the fund supporting the debt. A school district is below the benchmark when it has a consistently decreasing DBR with the most recent year’s DBR less than 1.0. ——— The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. 2,170 Students ▲27 Since 2012 RESPONSE KEENESBURG SCHOOL DISTRICT: The underlying cause for missing the benchmark for the DBR ratio is the District took advantage of a bond refunding which decreased the amount of payments due during the year and thus the mill levy was higher than the actual payments made. The underlying cause for missing the OMR is the continued lack of funding from the State of Colorado. The negative factor has caused the District to continue to have to use fund balance to operate each of these years. ACTIONS TAKEN: To change the trend the District will analyze the repayment schedule and set the mill levy to ensure that the District meets the DBR benchmark. The District Board looks at the financial condition and takes advantage of opportunities for bond refunding to lower the tax burden to the District’s residents. For the past several years the District has made cuts to the budget with the most significant for the current Fiscal Year 2015 of $750,000 affecting several areas of operation including staffing. The District Board is continuing to look at budget cuts to operate without having to spend down our depleting fund balance and meet the needs of the district. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-56 PAWNEE SCHOOL DISTRICT RE-12 WELD COUNTY 3 YEAR OPERATING MARGIN RATIO (OMR) 3 YEAR CHANGE IN FUND BALANCE RATIO (CFBR) 2,000 Gen Fund Total Rev 2,000 1,950 Dollars (In Thousands) Dollars (In Thousands) 2,500 1,500 Gen Fund Expenditures +/- Net Transfers 1,000 500 2012 2013 1,800 Gen Fund Bal 1,750 1,700 1,650 2012 $1,816,167 $1,764,492 2012 2013 $1,685,722 $1,761,431 2014 $1,901,971 $2,056,461 0.03 2013 -0.04 2014 2013 $1,950,491 $1,874,782 2014 $1,874,782 $1,720,292 3 YEAR CFBR TRENDING 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 2012 2013 2012 $1,898,816 $1,950,491 PY Fund Bal CY Fund Bal Change in Fund Balance Ratio Operating Margin Ratio (%) 1,850 2014 3 YEAR OMR TRENDING OMR PY Gen Fund Bal 1,600 - Revenue Expenditures 1,900 2014 -0.08 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 2012 CFBR 0.03 2013 2014 -0.04 -0.08 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Audit Division using data from annual audited financial statements submitted by school districts for Fiscal Years 2012-2014. B-57 PAWNEE SCHOOL DISTRICT RE-12 WELD COUNTY 84 Students ▼11 UNDERSTANDING THE RATIOS Since 2012 The OPERATING MARGIN RATIO indicates the amount added to reserves for every $1 in total general fund gross revenue. An OMR of 0.01 would indicate that $.01would result in net income for every $1 in gross revenue. A school district is below the benchmark if it has consistently decreasing OMR with the most recent year less than zero, or a negative OMR for all 3 years under analysis. ——— The CHANGE IN FUND BALANCE RATIO indicates the change in the balance of the general fund from one year in relation to the prior year. A CFBR of 0 would indicate that the fund balance had not changed from the prior year. A school district is below the benchmark if it has consistent decreases in the CFBR and with year three fund balance less than year one beginning fund balance, or a CFBR of less than zero for all 3 years, and with the most recent year’s fund balance less than zero. RESPONSE PAWNEE SCHOOL DISTRICT: The District missed the benchmarks due to declining enrollment, inadequate student funding for public schools, a number of capital expenditures, and paying the District bond. ACTIONS TAKEN: The District is considering budget cut options. The District Board of Education approved a bond issue in December 2014 for capital improvements which should decrease expenditures affecting the General Fund. SOURCE: Response provided by the School District. District student count figures were obtained from the Department of Education's statewide funded pupil counts for Fiscal Year 2012 and Fiscal Year 2014. B-58 APPENDIX SCHOOL DISTRICTS WITH TWO OR MORE MISSED BENCHMARKS LEGEND: 2 Missed Benchmarks 3 Missed Benchmarks 4 Missed Benchmarks SOURCE: Office of the State Auditor’s analysis, Local Government Division using data obtained from the Colorado Department of Education. C-1 APPENDIX STATE OF COLORADO FISCAL HEALTH ANALYSIS OF SCHOOL DISTRICTS GENERAL FUND TOTAL REVENUE AND EXPENDITURES PER FUNDED PUPIL FOR THE YEARS ENDING JUNE 30, 2012 THROUGH 2014 PERCENT PERCENT CHANGE IN GENERAL CHANGE IN CDE CHANGE IN CHANGE IN GENERAL FUND REVENUE PER REVENUE FUND EXPENDITURES EXPENDITURES FISCAL FUNDED REVENUE PER EXPENDITURES TOTAL FUNDED PER PUPIL EXPENDITURES PER FUNDED PER PUPIL YEAR PUPIL PUPIL FROM PER PUPIL REVENUE PUPIL FROM NET OF PUPIL FROM COUNT FY2012-2014 FROM FY FY2012TRANSFERS FY2012-2014 2012-2014 2014 WESTMINSTER 50, ADAMS COUNTY 2012 9,543.3 $79,243,740 $8,303.60 $77,330,650 $8,103.14 2013 9,526.4 $80,182,246 $8,416.85 $81,365,778 $8,541.08 2014 9,652.4 $81,079,098 $8,399.89 $96.29 1% $84,920,251 $8,797.84 $694.70 9% ALAMOSA RE-11J, ALAMOSA/CONEJOS COUNTY 2012 2,097.6 $14,151,031 $6,746.30 $13,884,898 $6,619.42 2013 2,085.0 $14,441,312 $6,926.29 $14,654,007 $7,028.30 2014 2,081.8 $14,426,380 $6,929.76 $183.47 3% $14,818,999 $7,118.36 $498.94 8% BYERS 32J, ARAPAHOE/ADAMS COUNTY 2012 453.6 $4,507,039 $9,936.15 $4,719,657 $10,404.89 2013 518.5 $4,777,860 $9,214.77 $5,170,788 $9,972.59 2014 578.8 $5,066,573 $8,753.58 ($1,182.57) -12% $5,786,048 $9,996.63 ($408.26) -4% ENGLEWOOD 1, ARAPAHOE COUNTY 2012 2,931.4 $25,601,073 $8,733.39 $24,712,044 $8,430.12 2013 2,839.9 $26,177,151 $9,217.63 $26,544,093 $9,346.84 2014 2,747.5 $26,278,431 $9,564.49 $831.09 10% $28,554,843 $10,393.03 $1,962.91 23% PRITCHETT RE-3, BACA COUNTY 2012 67.2 $1,145,432 $17,045.12 $1,186,968 $17,663.21 2013 60.4 $1,037,152 $17,171.39 $1,120,209 $18,546.51 2014 56.6 $1,026,598 $18,137.77 $1,092.65 6% $1,140,882 $20,156.93 $2,493.71 14% SPRINGFIELD RE-4, BACA COUNTY 2012 270.0 $2,620,523 $9,705.64 $2,500,724 $9,261.94 2013 268.3 $2,571,267 $9,583.55 $2,645,745 $9,861.14 2014 267.2 $2,654,554 $9,934.71 $229.07 2% $2,845,094 $10,647.81 $1,385.87 15% NORTH CONEJOS RE-1J, CONEJOS/ALAMOSA COUNTY 2012 1,050.0 $7,657,909 $7,293.25 $7,845,272 $7,471.69 2013 1,039.0 $7,539,175 $7,256.18 $8,018,297 $7,717.32 2014 1,022.8 $7,656,014 $7,485.35 $192.10 3% $8,719,218 $8,524.85 $1,053.16 14% SOUTH CONEJOS RE-10, CONEJOS COUNTY 2012 253.7 $2,533,635 $9,986.74 $2,529,238 $9,969.40 2013 240.3 $2,514,620 $10,464.50 $2,585,934 $10,761.27 2014 228.7 $2,583,589 $11,296.85 $1,310.11 13% $2,718,623 $11,887.29 $1,917.88 19% SIERRA GRANDE R-30, COSTILLA COUNTY 2012 270.5 $3,066,248 $11,335.48 $3,526,841 $13,038.23 2013 267.0 $3,349,457 $12,544.78 $3,561,296 $13,338.19 2014 265.6 $3,105,982 $11,694.21 $358.73 3% $3,304,269 $12,440.77 ($597.46) -5% HANOVER 28, EL PASO COUNTY 2012 238.6 $2,710,846 $11,361.47 $2,633,414 $11,036.94 2013 224.2 $2,579,890 $11,507.09 $2,855,126 $12,734.73 2014 226.4 $2,799,697 $12,366.15 $1,004.69 9% $3,172,704 $14,013.71 $2,976.77 27% MANITOU SPRINGS 14, EL PASO COUNTY 2012 1,434.5 $12,636,195 $8,808.78 $12,640,405 $8,811.71 2013 1,429.7 $12,504,698 $8,746.38 $12,817,630 $8,965.26 2014 1,422.3 $12,499,015 $8,787.89 ($20.89) 0% $13,053,557 $9,177.78 $366.07 4% WIDEFIELD 3, EL PASO COUNTY 2012 8,578.3 $60,977,962 $7,108.40 $59,541,306 $6,940.92 2013 8,664.5 $62,291,554 $7,189.28 $62,374,736 $7,198.88 2014 8,696.9 $64,063,766 $7,366.28 $257.88 4% $65,789,151 $7,564.67 $623.75 9% BIG SANDY 100J, ELBERT COUNTY 2012 306.0 $3,038,275 $9,929.00 $3,052,402 $9,975.17 2013 298.5 $3,023,090 $10,127.60 $3,241,711 $10,860.00 2014 297.9 $3,143,654 $10,552.72 $623.71 6% $3,355,668 $11,264.41 $1,289.24 13% EAST GRAND 2, GRAND COUNTY 2012 1,301.6 $11,462,368 $8,806.37 $11,059,348 $8,496.73 2013 1,266.5 $10,789,300 $8,518.99 $11,002,373 $8,687.23 2014 1,232.7 $10,909,919 $8,850.43 $44.06 1% $11,187,092 $9,075.28 $578.54 7% DURANGO 9-R, LA PLATA COUNTY 2012 4,443.7 $39,409,150 $8,868.54 $38,116,203 $8,577.58 2013 4,395.1 $39,065,588 $8,888.44 $41,193,463 $9,372.59 2014 4,362.1 $40,300,181 $9,238.71 $370.17 4% $42,964,019 $9,849.39 $1,271.81 15% D-1 STATE OF COLORADO FISCAL HEALTH ANALYSIS OF SCHOOL DISTRICTS GENERAL FUND TOTAL REVENUE AND EXPENDITURES PER FUNDED PUPIL FOR THE YEARS ENDING JUNE 30, 2012 THROUGH 2014 PERCENT PERCENT CHANGE IN GENERAL CHANGE IN CDE CHANGE IN CHANGE IN GENERAL FUND REVENUE PER REVENUE FUND EXPENDITURES EXPENDITURES FISCAL FUNDED REVENUE PER EXPENDITURES TOTAL FUNDED PER PUPIL EXPENDITURES PER FUNDED PER PUPIL YEAR PUPIL PUPIL FROM PER PUPIL REVENUE PUPIL FROM NET OF PUPIL FROM COUNT FY2012-2014 FROM FY FY2012TRANSFERS FY2012-2014 2012-2014 2014 KARVAL RE-23, LINCOLN COUNTY 2012 199.9 $1,732,304 $8,665.85 $1,886,432 $9,436.88 2013 133.9 $1,334,131 $9,963.64 $1,623,255 $12,122.89 2014 106.2 $1,247,880 $11,750.28 $3,084.43 36% $1,542,178 $14,521.45 $5,084.57 54% FRENCHMAN RE-3, LOGAN COUNTY 2012 180.0 $2,233,304 $12,407.24 $2,129,577 $11,830.98 2013 190.8 $2,236,407 $11,721.21 $2,364,079 $12,390.35 2014 190.2 $2,352,201 $12,366.99 ($40.26) 0% $2,532,812 $13,316.57 $1,485.59 13% CREEDE, MINERAL COUNTY 2012 97.7 $1,662,374 $17,015.09 $1,591,977 $16,294.54 2013 90.4 $1,506,223 $16,661.76 $1,690,167 $18,696.54 2014 85.3 $1,404,780 $16,468.70 ($546.39) -3% $1,631,037 $19,121.18 $2,826.64 17% MOFFAT COUNTY RE1, MOFFAT COUNTY 2012 2,224.8 $18,995,271 $8,537.97 $18,733,593 $8,420.35 2013 2,197.0 $18,391,258 $8,371.08 $18,813,731 $8,563.37 2014 2,168.4 $19,753,898 $9,109.90 $571.93 7% $20,297,973 $9,360.81 $940.46 11% BRUSH RE-2(J), MORGAN COUNTY 2012 1,428.3 $10,519,366 $7,364.96 $10,275,334 $7,194.10 2013 1,453.6 $10,971,726 $7,547.97 $11,328,690 $7,793.54 2014 1,477.9 $11,143,571 $7,540.14 $175.18 2% $11,661,081 $7,890.30 $696.20 10% EAST OTERO R-1, OTERO COUNTY 2012 1,330.5 $9,262,305 $6,961.52 $8,917,088 $6,702.06 2013 1,320.0 $9,687,033 $7,338.66 $9,807,736 $7,430.10 2014 1,314.7 $9,566,942 $7,276.90 $315.38 5% $10,248,017 $7,794.95 $1,092.89 16% RIDGWAY R-2, OURAY COUNTY 2012 333.6 $3,792,150 $11,367.36 $3,636,406 $10,900.50 2013 329.6 $3,792,340 $11,505.89 $3,809,825 $11,558.94 2014 324.7 $3,972,364 $12,233.95 $866.60 8% $4,136,003 $12,737.92 $1,837.42 17% PUEBLO COUNTY RURAL, PUEBLO COUNTY 2012 8,579.9 $57,401,403 $6,690.22 $71,891,094 $8,379.01 2013 8,694.5 $58,394,928 $6,716.31 $62,725,239 $7,214.36 2014 8,819.9 $61,053,035 $6,922.19 $231.97 3% $63,404,245 $7,188.77 ($1,190.24) -14% HAYDEN RE-1, ROUTT COUNTY 2012 392.8 $5,142,626 $13,092.23 $4,989,734 $12,702.99 2013 382.5 $5,014,025 $13,108.56 $5,171,490 $13,520.24 2014 372.7 $5,068,239 $13,598.71 $506.48 4% $5,368,833 $14,405.24 $1,702.25 13% SILVERTON 1, SAN JUAN COUNTY 2012 67.3 $1,118,707 $16,622.69 $1,124,487 $16,708.57 2013 64.5 $1,352,034 $20,961.77 $1,432,185 $22,204.42 2014 65.8 $1,298,512 $19,734.22 $3,111.54 19% $1,421,613 $21,605.06 $4,896.49 29% ARICKAREE R-2, WASHINGTON COUNTY 2012 101.0 $1,407,273 $13,933.40 $1,508,875 $14,939.36 2013 100.6 $1,473,087 $14,643.01 $1,713,050 $17,028.33 2014 109.6 $1,605,326 $14,647.14 $713.74 5% $1,845,431 $16,837.87 $1,898.52 13% KEENESBURG RE-3J, WELD/ADAMS COUNTY 2012 2,143.3 $16,360,537 $7,633.34 $19,122,994 $8,922.22 2013 2,142.0 $16,600,183 $7,749.85 $19,377,132 $9,046.28 2014 2,169.9 $17,039,023 $7,852.45 $219.11 3% $17,922,850 $8,259.76 ($662.46) -7% PAWNEE RE-12,WELD COUNTY 2012 95.4 $1,816,167 $19,037.39 $1,764,492 $18,495.72 2013 87.5 $1,685,722 $19,265.39 $1,761,431 $20,130.64 2014 83.6 $1,901,971 $22,750.85 $3,713.46 20% $2,056,461 $24,598.82 $6,103.09 33% SOURCE: Analysis performed by the Office of the State Auditor, Local government Division, using data from audited financial statements submitted by school districts. District student count figures were obtained from the Department of Education’s statewide funded pupil counts for Fiscal Years 2012 through 2014. D-2 APPENDIX School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT SERVICE Adams Broomfield Adams Adams Arapahoe Adams Broomfield Weld Adams Adams Arapahoe Adams Alamosa Conejos Alamosa Saguache Arapahoe Adams Arapahoe Adams Arapahoe Arapahoe Adams Arapahoe Arapahoe Adams 12 Five Star School District 2012 2013 2014 Adams County 14 School 2012 District 2013 2014 Bennett 29J School District 2012 2013 2014 Brighton 27J School District 2012 2013 2014 Mapleton 1 School District 2012 2013 2014 Strasburg 31J School District 2012 2013 2014 Westminster 50 School 2012 District 2013 2014 Alamosa RE-11J School 2012 District 2013 2014 Sangre De Cristo RE-22J 2012 School Distirct 2013 2014 Adams-Arapahoe 28J School 2012 District 2013 2014 Byers 32J School District 2012 2013 2014 Cherry Creek 5 School 2012 District 2013 2014 Deer Trail 26J School District 2012 2013 2014 Englewood 1 School District 2012 2013 2014 Littleton 6 School District 2012 2013 2014 42,899,645 42,128,012 35,118,665 6,643,581 5,871,140 8,055,494 863,379 987,959 977,147 14,297,948 22,157,621 14,944,500 4,485,614 4,129,542 4,323,472 802,654 915,163 837,300 7,644,425 8,238,158 8,626,394 1,818,426 1,788,812 1,928,186 298,991 300,979 300,101 31,720,596 35,500,901 33,882,811 272,135 338,374 341,840 53,161,250 50,710,399 51,985,163 30,734 54,115 52,318 4,104,771 5,583,408 5,572,240 10,328,292 8,935,819 11,450,054 GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 352,850,201 356,476,850 358,221,439 66,804,257 70,429,299 69,359,680 7,778,213 8,568,967 8,680,620 112,923,764 116,669,363 123,836,689 58,412,070 60,722,264 68,128,436 952,659 884,574 849,258 9,182,740 8,632,635 8,457,078 15,944,941 1,786,552 1,777,036 332,491 3,477,345 360,486 25,848,240 28,166,481 35,328,255 10,542 4,777,908 5,066,859 462,853,383 483,747,645 505,953,053 2,215,659 2,210,690 2,254,189 5,484,311 5,465,313 5,403,386 144,514,405 145,063,095 10,946,337 92,081,258 93,052,685 87,203,041 24,251,420 20,267,615 16,228,936 2,549,362 2,511,841 2,794,950 32,613,718 30,857,391 31,113,268 12,359,721 12,491,571 12,403,963 3,303,620 3,167,140 3,132,638 24,537,455 24,645,525 21,023,855 4,686,520 4,337,070 3,936,958 1,289,389 1,207,104 1,430,117 59,744,278 68,892,449 72,693,681 2,884,875 2,354,033 1,903,304 99,257,728 111,614,111 121,272,712 825,345 781,766 775,022 15,646,287 15,287,805 13,167,260 45,728,123 48,752,419 49,827,286 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 42,209,652 43,372,516 42,172,138 5,317,434 5,504,934 6,088,137 799,504 1,072,244 693,593 13,573,429 11,888,497 13,971,042 5,905,589 5,272,606 5,360,898 620,348 672,642 698,225 4,711,194 6,002,796 6,222,279 1,748,103 1,611,348 1,603,855 348,336 340,686 360,190 25,439,499 26,332,880 28,225,508 533,603 395,689 664,435 56,246,604 57,165,694 56,623,225 143,771 164,040 165,249 2,034,152 2,541,987 2,697,854 8,664,097 8,736,868 9,131,500 49,871,606 49,680,169 45,030,903 18,933,986 14,762,681 10,140,799 1,749,858 1,439,597 2,101,357 19,040,289 18,968,894 17,142,226 6,454,132 7,218,965 7,043,065 2,683,272 2,494,498 2,434,413 19,826,261 18,642,729 14,801,576 2,938,417 2,725,722 2,333,103 941,053 866,418 1,069,927 34,304,779 42,559,569 44,468,173 2,351,272 1,958,344 1,238,869 43,011,124 54,448,417 64,649,487 681,574 617,726 609,773 13,112,760 12,745,818 10,469,406 37,064,026 40,015,551 40,695,786 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-1 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 306,874,608 316,261,932 318,549,071 60,388,070 63,908,026 62,336,248 7,521,436 7,349,158 7,559,565 98,593,464 102,170,872 108,647,096 55,091,322 57,101,900 63,327,089 7,213,123 7,247,676 8,043,928 79,243,740 80,182,246 81,079,098 14,151,031 14,441,312 14,426,380 3,176,941 3,148,900 3,184,976 272,017,834 288,869,238 307,791,993 4,507,039 4,777,860 5,066,573 409,387,621 436,248,867 455,107,702 2,215,659 2,210,505 2,253,991 25,601,073 26,177,151 26,278,431 134,285,961 134,257,578 138,239,865 304,479,207 304,384,505 309,236,904 57,697,521 63,254,331 65,498,130 7,460,172 7,409,106 6,602,492 91,837,148 99,866,575 106,941,267 53,903,546 54,366,645 62,462,177 6,964,444 7,123,057 7,769,415 74,891,702 79,058,755 82,544,569 13,252,130 13,997,347 14,146,139 3,004,214 3,129,175 2,870,467 266,326,788 280,330,843 305,331,888 4,706,614 5,156,370 5,778,048 411,239,251 421,671,774 440,400,525 2,198,129 2,163,067 2,148,175 24,512,044 25,865,419 27,904,843 123,702,865 126,753,331 133,388,749 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (5,454,759) (10,538,921) (13,961,433) (1,607,000) (4,825,000) (1,460,000) (135,313) (250,313) (295,313) (2,617,247) (2,489,110) (4,004,177) (1,858,302) (1,970,422) (1,040,812) (199,000) (313,393) (334,598) (2,438,948) (2,307,023) (2,375,682) (632,768) (656,660) (672,860) (75,000) (146,000) (111,000) (463,008) (283,605) (302,750) (13,043) (14,418) (8,000) (765,913) (3,139,800) (4,506,107) (110,110) (111,286) (113,769) (200,000) (678,674) (650,000) (4,196,432) (4,552,722) (4,170,881) Ratio 1 Ratio 2 ASR DBR Ratio Ratio 52,930,964 48,341,663 49,680,169 17,850,437 18,933,986 14,762,681 1,772,345 1,749,858 1,439,597 13,014,861 19,040,289 18,968,894 7,124,658 6,454,132 7,218,965 2,633,593 2,683,272 2,494,498 17,913,171 19,826,261 18,642,729 2,672,284 2,938,417 2,725,722 843,326 941,053 866,418 29,076,741 34,304,779 42,559,569 1,300,575 2,351,272 1,958,344 45,628,667 43,011,124 54,448,417 774,154 681,574 617,726 12,223,731 13,112,760 12,745,818 30,677,362 37,064,026 40,015,551 2.18 2.15 2.07 4.56 3.68 2.67 3.19 2.34 4.03 2.40 2.60 2.23 2.09 2.37 2.31 5.33 4.71 4.49 5.21 4.11 3.38 2.68 2.69 2.45 3.70 3.54 3.97 2.35 2.62 2.58 5.41 5.95 2.86 1.76 1.95 2.14 5.74 4.77 4.69 7.69 6.01 4.88 5.28 5.58 5.46 8.23 8.46 10.20 10.06 12.00 8.61 9.01 8.67 8.88 7.90 5.27 8.29 13.02 14.70 15.76 1.19 0.97 1.01 1.20 1.05 0.98 8.77 1.00 0.92 1.11 11.55 1.20 0.81 0.79 1.04 0.04 14.12 14.82 8.71 9.54 9.73 72.09 40.85 43.09 1.34 0.98 0.97 13.99 16.23 0.96 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio (0.01) (0.01) 0.02 (0.07) (0.07) (0.01) (0.04) 0.09 0.04 (0.02) (0.01) 0.01 0.01 (0.03) (0.01) 0.02 (0.01) (0.05) 0.02 (0.01) (0.03) 0.03 (0.04) 0.06 0.02 0.03 0.01 (0.05) (0.08) (0.14) (0.01) 0.03 0.02 (0.04) (0.03) 0.03 (0.01) (0.09) 0.05 0.02 - (0.06) 0.03 (0.09) 0.06 (0.22) (0.31) (0.01) (0.18) 0.46 0.46 (0.10) (0.09) 0.12 (0.02) 0.02 (0.07) (0.02) 0.11 (0.06) (0.21) 0.10 (0.07) (0.14) 0.12 (0.08) 0.23 0.18 0.24 0.04 0.81 (0.17) (0.37) (0.06) 0.27 0.19 (0.12) (0.09) (0.01) 0.07 (0.03) (0.18) 0.21 0.08 0.02 0.16 0.16 0.14 0.32 0.22 0.15 0.23 0.19 0.30 0.20 0.19 0.15 0.12 0.13 0.11 0.37 0.34 0.30 0.26 0.23 0.17 0.21 0.19 0.16 0.31 0.26 0.36 0.13 0.15 0.15 0.50 0.38 0.21 0.10 0.13 0.15 0.30 0.27 0.27 0.53 0.48 0.37 0.29 0.30 0.30 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 1 1 1 3 3 3 3 3 3 2 2 2 3 3 3 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-2 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT SERVICE Arapahoe Archuleta Baca Baca Baca Baca Baca Bent Bent Boulder Boulder Chaffee Chaffee Cheyenne Cheyenne Sheridan 2 School District 2012 2013 2014 Archuleta County 50 JT 2012 School District 2013 2014 Campo RE-6 School District 2012 2013 2014 Pritchett RE-3 School District 2012 2013 2014 Springfield RE-4 School 2012 District 2013 2014 Vilas RE-5 School District 2012 2013 2014 Walsh RE-1 School District 2012 2013 2014 Las Animas RE-1 School 2012 District 2013 2014 McClave RE-2 School 2012 District 2013 2014 Boulder Valley RE 2 School 2012 District 2013 2014 St. Vrain Valley RE 1J School 2012 District 2013 2014 Buena Vista R-31 School 2012 District 2013 2014 Salida R-32 School District 2012 2013 2014 Cheyenne County RE-5 2012 School District 2013 2014 Kit Carson R-1 School 2012 District 2013 2014 1,447,705 1,684,563 1,914,364 905,045 1,014,118 1,028,615 26,331 47,305 33,284 23,778 26,813 29,849 14,200 9,169 4,174 215,921 217,036 208,158 143,959 80,000 143,073 31,505,268 28,132,292 28,102,930 34,949,668 35,461,367 33,868,017 638,703 592,205 913,488 2,085,241 2,040,601 2,181,370 739,546 727,675 727,725 30,855 31,073 27,893 GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 1,495,465 15,761,051 16,340,917 976,775 11,599,223 12,489,983 2,620,523 2,571,267 2,654,554 2,151,692 1,847,925 1,473,121 1,795,053 1,784,736 2,078,705 4,472,364 4,195,946 4,166,381 2,790,945 2,688,429 2,810,838 290,995,796 28,167,785 28,432,486 35,326,684 35,862,493 36,016,041 581,811 1,003,768 929,253 11,797,658 2,138,663 2,278,823 737,999 744,536 738,589 1,856,584 1,802,589 1,853,294 7,933,862 7,382,897 7,195,106 10,083,721 9,755,080 9,376,222 1,325,034 1,245,404 1,187,223 746,880 696,488 551,417 1,903,238 1,927,485 1,738,010 463,949 409,176 434,979 2,051,327 1,974,307 2,192,075 2,233,208 2,123,145 1,971,173 2,788,660 2,819,111 2,590,369 51,481,583 55,023,667 54,266,090 69,720,754 87,678,313 88,893,909 4,672,878 5,489,010 5,644,041 4,968,053 4,351,331 4,357,490 1,087,467 930,675 1,399,726 2,175,170 2,023,616 1,995,346 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 1,826,323 1,945,457 1,906,159 1,182,179 1,253,351 1,205,501 106,724 105,419 99,381 89,837 122,502 91,715 254,853 294,122 295,187 262,884 216,690 178,494 143,042 146,286 184,564 435,264 495,238 461,875 219,760 363,340 224,901 23,672,467 26,691,051 26,695,087 19,828,529 23,156,205 22,736,896 1,064,245 1,231,844 1,404,493 1,212,374 1,261,816 1,272,142 161,417 170,668 166,068 148,173 148,163 149,629 6,107,539 5,437,440 5,288,947 8,901,542 8,501,729 8,170,721 1,218,310 1,139,985 1,087,842 657,043 573,986 459,702 1,648,385 1,633,363 1,442,823 201,065 192,486 256,485 1,908,285 1,828,021 2,007,511 1,797,944 1,627,907 1,509,298 2,568,900 2,455,771 2,365,468 27,809,116 28,332,616 27,571,003 49,892,225 64,522,108 66,157,013 3,608,633 4,257,166 4,239,548 3,755,679 3,089,515 3,085,348 842,782 760,008 1,233,659 2,026,998 1,875,453 1,845,716 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-3 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 13,917,685 13,819,414 14,318,327 12,469,210 10,648,487 10,857,059 938,937 854,053 956,989 1,145,432 1,037,152 1,026,598 2,620,523 2,571,267 2,654,554 2,151,692 1,847,925 1,473,121 1,795,053 1,784,736 2,078,705 4,273,974 3,996,187 3,965,707 2,790,945 2,688,429 2,810,838 262,697,605 267,469,439 283,803,810 203,121,758 224,874,721 235,143,597 8,915,805 9,612,933 9,912,507 9,815,582 9,974,062 10,264,535 2,520,895 2,440,192 2,928,127 1,839,520 1,789,517 1,844,837 13,568,712 14,192,971 13,962,953 10,363,660 12,295,456 10,797,634 911,593 876,766 963,531 1,148,968 1,064,209 1,095,882 2,466,765 2,620,745 2,825,094 2,028,964 1,756,844 1,366,493 1,866,741 1,843,000 1,872,215 3,944,280 4,008,796 3,954,317 2,596,198 2,825,768 2,906,352 257,017,273 260,420,410 283,863,630 199,832,176 206,766,951 233,508,692 8,414,268 8,964,400 9,880,125 8,997,767 9,150,760 9,476,863 2,523,941 2,584,960 2,405,976 1,766,204 1,936,683 1,817,887 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (610,000) (500,000) (503,867) (485,445) (229,763) (390,433) (40,516) (55,612) (45,601) (38,000) (56,000) (45,000) (33,959) (25,000) (20,000) (39,526) (37,283) (56,644) (22,000) (22,000) (27,000) (183,000) (126,000) (130,000) (20,000) (10,000) (20,000) (8,496,538) (6,525,529) (5,443,575) (3,477,887) (50,000) (334,375) (1,489,466) (791,839) (184,889) (21,274) (48,500) (85,972) (4,378) (58,000) 6,368,566 6,107,539 5,437,440 7,223,151 8,901,542 8,501,729 1,231,482 1,218,310 1,139,985 698,579 657,043 573,986 1,528,586 1,648,384 1,633,363 117,863 288,442 192,486 1,994,295 1,908,285 1,828,021 1,651,250 1,829,370 1,627,908 2,394,153 2,603,110 2,455,771 30,625,322 27,809,116 28,332,616 46,602,643 49,892,225 64,522,108 3,107,096 3,608,633 4,257,166 3,272,239 3,755,679 3,089,515 1,113,985 926,050 760,008 2,039,654 2,026,998 1,875,453 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 4.34 3.79 3.77 8.53 7.78 7.78 12.42 11.81 11.95 8.31 5.69 6.01 7.47 6.55 5.89 1.76 1.89 2.44 14.34 13.50 11.88 5.13 4.29 4.27 12.69 7.76 11.52 2.17 2.06 2.03 3.52 3.79 3.91 4.39 4.46 4.02 4.10 3.45 3.43 6.74 5.45 8.43 14.68 13.66 13.34 1.03 9.36 8.54 1.08 11.44 12.14 99.52 54.36 79.75 90.49 68.92 49.35 126.41 194.65 498.01 20.71 19.33 20.02 19.39 33.61 19.65 9.24 1.00 1.01 1.01 1.01 1.06 0.91 1.69 1.02 5.66 1.05 1.04 1.00 1.02 1.01 60.17 58.01 66.44 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio (0.02) (0.06) (0.01) 0.13 (0.18) (0.03) (0.01) (0.09) (0.05) (0.04) (0.08) (0.11) 0.05 (0.03) (0.07) 0.04 0.03 0.03 (0.05) (0.04) 0.09 0.03 (0.03) (0.03) 0.06 (0.05) (0.04) (0.01) (0.02) 0.02 0.07 0.01 0.06 0.07 0.05 (0.07) (0.07) (0.07) 0.16 (0.01) (0.08) (0.02) (0.04) (0.11) (0.03) 0.23 (0.04) (0.04) (0.01) (0.06) (0.05) (0.06) (0.13) (0.20) 0.08 (0.01) (0.12) 0.71 (0.33) 0.33 (0.04) (0.04) 0.10 0.09 (0.11) (0.07) 0.07 (0.06) (0.04) (0.09) 0.02 (0.03) 0.07 0.29 0.03 0.16 0.18 0.15 (0.18) (0.24) (0.18) 0.62 (0.01) (0.07) (0.02) 0.43 0.37 0.37 0.82 0.68 0.73 1.28 1.22 1.08 0.55 0.51 0.40 0.66 0.62 0.51 0.10 0.11 0.18 1.01 0.98 1.06 0.44 0.39 0.37 0.98 0.87 0.81 0.10 0.11 0.10 0.25 0.31 0.28 0.43 0.47 0.43 0.40 0.29 0.30 0.31 0.29 0.50 1.09 0.97 0.98 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 1 1 1 2 2 2 2 2 2 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-4 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT SERVICE Clear Creek Clear Creek RE-1 School District Conejos Alamosa North Conejos RE-1J School District Conejos Alamosa Sanford 6J School District Conejos South Conejos RE-10 School District Costilla Centennial R-1 School District Costilla Sierra Grande R-30 School District Crowley Crowley County RE-1-J School District Custer Consolidated C-1 School District Delta Delta County School District 50(J) Denver Denver County 1 School District Dolores Dolores County RE No. 2 School District Douglas Douglas County RE 1 School District Eagle Eagle County RE 50 School District El Paso Academy 20 School District El Paso Calhan RJ-1 School District 2012 1,917,440 2013 2,032,136 2014 2,044,620 2012 2013 2014 2012 23,697 2013 89,083 2014 88,110 2012 40,974 2013 40,975 2014 150,576 2012 543,358 2013 352,313 2014 468,557 2012 329,813 2013 1,112,878 2014 83,073 2012 161,671 2013 562,816 2014 113,702 2012 382,828 2013 442,525 2014 403,294 2012 6,394,154 2013 2,871,362 2014 2,790,374 2012 132,760,809 2013 667,942,107 2014 167,896,173 2012 338,731 2013 340,469 2014 355,969 2012 70,113,712 2013 72,892,615 2014 74,044,963 2012 15,487,609 2013 15,525,459 2014 15,551,340 2012 20,845,465 2013 19,464,282 2014 19,364,299 2012 141,601 2013 140,863 173,953 2014 GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 2,078,210 2,053,959 2,055,202 84,592 94,896 99,114 94 2,514,653 3,301,342 3,040,610 479,481 492,454 3,397,987 3,349,457 3,105,982 3,996,817 3,902,411 3,998,838 402,102 398,459 397,669 38,214,659 37,814,687 38,648,693 720,631,479 823,561,996 896,248,029 384,991 397,390 423,621 523,689,142 538,453,215 568,503,049 69,461,258 69,385,329 70,950,707 195,321,702 196,992,330 205,634,376 59,129 39,491 3,994 7,223,247 7,902,593 8,197,780 6,685,660 6,239,991 5,222,253 2,612,885 2,584,839 2,594,890 925,288 822,035 876,788 1,510,562 1,786,996 1,939,217 1,241,216 1,144,199 919,650 2,461,008 2,485,765 2,368,719 1,010,682 1,009,431 1,221,298 11,103,076 10,710,581 12,403,011 190,581,975 192,732,678 194,651,599 1,913,235 1,891,631 1,784,767 126,621,789 139,388,887 118,386,840 16,846,063 17,994,588 18,486,190 56,398,584 58,512,894 59,585,804 1,892,660 1,930,403 1,885,299 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 663,131 892,192 996,839 1,031,960 1,065,413 1,110,879 292,191 243,702 299,786 321,290 289,351 527,900 263,966 201,079 240,920 360,903 475,725 449,463 392,797 397,300 411,373 418,095 376,701 389,173 4,244,567 4,498,880 4,978,221 88,912,407 83,193,234 96,353,746 348,334 315,982 361,105 26,237,449 34,960,620 30,160,938 6,334,141 7,282,686 7,397,688 22,082,929 22,657,862 22,577,337 265,197 234,509 243,692 6,560,116 7,010,401 7,200,941 5,653,700 5,174,578 4,111,374 2,320,694 2,341,137 2,295,104 603,998 532,684 348,888 1,246,596 1,585,917 1,698,297 880,313 668,474 470,187 2,068,211 2,088,465 1,957,346 592,587 632,730 832,125 6,858,509 6,211,701 7,424,790 101,669,568 109,539,444 98,297,853 1,564,901 1,575,649 1,423,662 100,384,340 104,428,267 88,225,902 10,511,922 10,711,902 11,088,502 34,315,655 35,855,032 37,008,467 1,627,463 1,695,894 1,641,607 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-5 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 9,078,261 9,223,171 9,275,588 7,657,909 7,539,175 7,656,014 2,821,333 2,878,575 3,221,862 2,533,635 2,514,620 2,583,589 2,532,291 2,311,954 2,416,288 3,066,248 3,349,457 3,105,982 3,996,627 3,902,411 3,998,838 3,745,895 3,659,833 3,826,362 36,066,202 35,721,355 34,822,868 634,318,577 709,140,224 753,189,921 2,878,706 2,931,975 3,026,793 453,973,917 470,239,973 495,831,314 53,772,086 54,633,516 57,755,922 174,153,431 178,667,429 187,409,593 4,212,074 4,051,596 4,152,193 7,733,390 8,353,686 8,538,048 7,785,272 7,958,297 8,529,677 2,550,379 2,628,132 2,900,895 2,459,238 2,505,934 2,617,573 2,023,663 1,902,633 2,233,908 3,475,841 3,801,592 3,254,269 3,998,057 4,404,883 4,129,957 3,698,481 3,552,040 3,562,767 34,316,939 34,943,463 32,159,779 622,489,783 1,216,447,709 762,308,633 2,871,292 2,877,227 3,131,780 431,179,221 468,113,816 504,407,995 53,922,545 53,145,353 55,059,075 162,381,394 167,290,398 174,378,504 4,248,044 3,957,316 4,196,480 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (385,000) (419,200) (547,000) (60,000) (60,000) (189,541) (152,000) (230,000) (367,000) (70,000) (80,000) (101,050) (55,000) (70,000) (70,000) (51,000) 240,296 (50,000) (373,500) (22,274) (72,000) (67,650) (64,200) (1,591,183) (1,425,000) (1,450,000) (26,672,964) (18,873,508) (7,000,824) (33,000) (44,000) (47,000) (6,438,323) (5,819,193) (11,279,203) (534,352) (1,288,183) (2,320,247) (8,661,038) (9,837,654) (11,877,654) (1,233,000) (25,850) (10,000) 5,600,245 6,560,116 7,010,401 5,841,063 5,653,700 5,174,578 2,201,740 2,320,694 2,341,137 599,601 603,998 483,922 792,967 1,246,596 1,585,917 740,906 880,313 668,474 2,443,141 2,068,211 2,088,465 617,173 592,587 632,730 6,715,008 6,858,509 6,211,701 116,513,738 104,473,699 114,417,389 1,590,487 1,564,901 1,575,649 80,549,837 100,384,340 104,428,267 11,196,733 10,511,922 10,711,902 31,204,656 34,315,655 35,855,032 2,896,433 1,627,463 1,695,894 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 10.89 8.86 8.22 6.48 5.86 4.70 8.94 10.61 8.66 2.88 2.84 1.66 5.72 8.89 8.05 3.44 2.41 2.05 6.27 6.26 5.76 2.42 2.68 3.14 2.62 2.38 2.49 2.14 2.32 2.02 5.49 5.99 4.94 4.83 3.99 3.93 2.66 2.47 2.50 2.55 2.58 2.64 7.14 8.23 7.74 1.08 1.01 1.01 3.57 1.07 1.12 61.37 21.92 5.60 1.36 1.05 10.30 3.01 37.39 24.72 6.93 35.17 1.05 0.90 0.99 5.98 13.17 13.85 5.43 1.23 5.34 1.14 1.17 1.19 7.47 7.39 7.68 4.48 4.47 4.56 9.37 10.12 10.62 0.42 0.28 0.02 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.11 0.05 0.02 (0.02) (0.06) (0.14) 0.04 0.01 (0.01) (0.03) (0.05) 0.18 0.15 0.05 (0.15) (0.06) (0.06) (0.09) (0.13) (0.03) (0.01) 0.01 0.05 (0.02) 0.03 (0.02) (0.74) (0.02) (0.01) (0.05) 0.04 (0.01) (0.04) (0.01) 0.01 0.02 0.01 0.01 (0.30) 0.02 (0.01) 0.17 0.07 0.03 (0.03) (0.08) (0.21) 0.05 0.01 (0.02) 0.01 (0.12) (0.28) 0.57 0.27 0.07 0.19 (0.24) (0.30) (0.15) 0.01 (0.06) (0.04) 0.07 0.32 0.02 (0.09) 0.20 (0.13) 0.05 (0.14) (0.02) 0.01 (0.10) 0.25 0.04 (0.16) (0.06) 0.02 0.04 0.10 0.04 0.03 (0.44) 0.04 (0.03) 0.81 0.80 0.79 0.72 0.65 0.47 0.86 0.82 0.70 0.24 0.21 0.13 0.60 0.80 0.74 0.25 0.19 0.14 0.47 0.47 0.47 0.16 0.17 0.23 0.19 0.17 0.22 0.16 0.09 0.13 0.54 0.54 0.45 0.23 0.22 0.17 0.19 0.20 0.19 0.20 0.20 0.20 0.30 0.43 0.39 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 2 2 2 1 1 1 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-6 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT SERVICE El Paso Cheyenne Mountain 12 School District El Paso Colorado Springs 11 School District El Paso Edison 54 JT School District El Paso Ellicott 22 School District El Paso Falcon 49 School District El Paso Fountain 8 School District El Paso Hanover 28 School District El Paso Harrison 2 School District El Paso Lewis Palmer 38 School District El Paso Manitou Springs 14 School District El Paso Miami/Yoder 60 JT School District El Paso Peyton 23 JT School District El Paso Widefield 3 School District Elbert Agate 300 School District Elbert Big Sandy 100J School District 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 18,904,176 3,689,612 3,778,750 20,801,013 20,063,819 20,721,493 58,015 43,292 29,200 620,646 753,769 2,506,034 13,952,248 13,765,741 13,722,953 2,027,248 1,989,820 2,060,123 726,047 742,100 748,400 7,507,327 7,560,791 7,602,633 7,907,403 8,356,965 8,356,523 715,605 777,200 775,300 244,313 249,125 243,550 3,502,636 466,297 417,391 1,835,220 1,815,878 1,894,342 57,409 215,813 213,454 GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 34,863,159 34,825,950 37,172,137 199,829,638 199,616,939 204,902,114 2,099,730 2,066,483 2,222,881 1,244,490 7,939,648 7,804,257 95,298,318 96,571,519 100,910,969 66,630,114 73,415,091 76,086,325 751,996 712,833 734,919 76,884,523 75,656,029 79,424,944 51,068,815 51,090,600 54,750,352 797,607 781,575 784,208 280,036 283,855 279,790 482,148 475,216 529,821 2,038,253 1,935,750 66,313,618 224,854 237,476 198,628 17,086,560 17,841,959 17,950,565 61,043,558 59,659,995 58,110,557 432,265 508,866 653,786 3,953,216 4,101,907 4,269,413 38,776,195 37,153,373 38,674,368 12,314,489 13,017,960 13,289,876 1,141,145 852,733 541,750 30,415,519 30,697,130 30,611,358 15,695,406 19,038,932 18,261,076 5,860,758 5,531,083 4,846,696 2,327,335 2,202,995 2,331,660 2,530,663 2,705,125 2,927,346 24,409,664 24,222,519 23,074,280 373,239 313,887 658,439 1,651,484 1,424,796 1,203,903 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 3,410,269 3,626,420 3,630,882 40,447,135 41,083,933 35,035,824 160,179 163,679 175,669 771,211 729,784 944,181 10,244,291 11,613,128 12,827,773 6,991,997 7,658,800 7,832,552 270,875 257,699 319,723 7,687,512 7,462,912 7,414,355 4,634,984 7,269,825 5,335,997 1,627,165 1,610,422 1,613,035 334,170 270,619 351,127 524,785 523,743 544,030 7,426,982 7,323,019 7,900,165 13,314 19,103 20,386 337,579 329,512 320,634 13,676,291 14,215,539 14,319,683 20,596,423 18,576,062 23,074,733 272,086 345,187 478,117 3,182,005 3,372,123 3,325,232 28,531,904 25,540,245 25,846,595 5,322,492 5,359,160 5,457,324 870,270 595,034 222,027 22,728,007 23,234,218 23,197,003 11,060,422 11,769,107 12,925,079 4,233,593 3,920,661 3,233,661 1,993,165 1,932,376 1,980,533 2,005,878 2,181,382 2,383,316 16,982,682 16,899,500 15,174,115 359,925 294,784 638,053 1,313,905 1,095,284 883,269 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-7 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 31,108,450 31,478,347 32,471,603 180,246,138 179,463,363 184,682,400 2,066,456 2,033,785 2,150,709 7,052,099 7,492,918 7,497,112 87,844,451 89,154,682 93,505,875 66,050,230 73,243,326 75,894,883 2,710,846 2,579,890 2,799,697 69,788,212 68,751,121 72,539,753 42,724,572 42,960,287 44,713,108 12,636,195 12,504,698 12,499,015 2,905,295 2,870,800 2,950,154 5,007,710 4,945,145 5,265,561 60,977,962 62,291,554 64,063,766 725,759 640,626 1,126,827 3,038,275 3,023,090 3,143,654 28,215,581 29,937,930 31,322,326 205,679,125 202,056,760 204,893,328 2,000,954 1,930,684 1,986,372 6,877,443 7,002,800 7,534,003 85,058,389 91,726,364 92,931,241 56,359,715 58,908,763 63,189,574 2,567,755 2,751,466 3,082,495 69,262,429 67,333,272 71,212,473 40,856,694 39,249,553 41,388,581 11,843,905 11,845,630 12,050,271 2,682,342 2,936,761 2,714,497 4,769,443 4,581,737 4,863,627 58,641,306 60,874,736 63,889,151 685,613 675,936 756,023 2,984,976 3,148,914 3,272,951 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (540,380) (758,030) (856,412) 21,484,754 20,573,037 24,709,599 (25,300) (30,000) (31,407) (300,000) (10,000) (1,200,299) (419,977) (268,284) (8,518,594) (14,297,895) (12,607,145) (65,659) (103,660) (90,209) (695,223) (1,038,481) (1,420,645) (904,979) (3,002,049) (2,168,555) (796,500) (972,000) (1,003,286) (43,500) (47,500) (187,500) (192,000) (187,904) (200,000) (900,000) (1,500,000) (1,900,000) (28,909) (29,981) (27,535) (67,426) (92,797) (82,717) 11,609,374 13,676,291 14,215,539 24,544,656 20,596,423 18,576,062 231,884 272,086 345,187 3,007,349 3,182,005 3,372,123 25,214,948 28,531,904 25,540,245 4,150,571 5,322,492 5,359,160 792,838 870,270 595,034 22,574,755 22,728,007 23,234,218 10,097,523 11,060,422 11,769,107 4,237,803 4,233,593 3,788,203 1,813,712 1,993,165 1,932,376 1,959,611 2,005,878 2,181,382 15,546,026 16,982,682 16,899,500 346,738 359,925 294,784 1,328,032 1,313,905 1,095,284 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 5.01 4.92 4.94 1.51 1.45 1.66 2.70 3.11 3.72 5.13 5.62 4.52 3.79 3.20 3.01 1.76 1.70 1.70 4.21 3.31 1.69 3.96 4.11 4.13 3.39 2.62 3.42 3.60 3.43 3.00 6.96 8.14 6.64 4.82 5.16 5.38 3.29 3.31 2.92 28.03 16.43 32.30 4.89 4.32 3.75 1.84 9.44 9.84 9.61 9.95 9.89 36.19 47.73 76.13 2.01 10.53 3.11 6.83 7.02 7.35 32.87 36.90 36.93 1.04 0.96 0.98 10.24 10.01 10.45 6.46 6.11 6.55 1.11 1.01 1.01 1.15 1.14 1.15 0.14 1.02 1.27 1.11 1.07 35.01 3.92 1.10 0.93 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.08 0.02 0.01 (0.02) (0.01) 0.02 0.02 0.04 0.06 0.02 0.03 (0.01) 0.02 (0.03) 0.02 0.03 (0.11) (0.13) 0.01 0.02 0.02 0.03 (0.03) (0.04) 0.06 (0.04) 0.02 0.01 0.04 0.04 0.02 (0.03) 0.02 (0.10) 0.30 (0.07) (0.07) 0.18 0.04 0.01 (0.16) (0.10) 0.24 0.17 0.27 0.39 0.06 0.06 (0.01) 0.13 (0.10) 0.01 0.28 0.01 0.02 0.10 (0.32) (0.63) 0.01 0.02 0.10 0.06 0.10 (0.07) (0.15) 0.10 (0.03) 0.02 0.02 0.09 0.09 0.09 (0.10) 0.04 (0.18) 1.16 (0.01) (0.17) (0.19) 0.48 0.46 0.45 0.11 0.10 0.13 0.13 0.18 0.24 0.46 0.46 0.44 0.33 0.28 0.28 0.08 0.07 0.07 0.33 0.21 0.07 0.32 0.34 0.32 0.26 0.28 0.30 0.33 0.31 0.25 0.73 0.65 0.68 0.40 0.46 0.47 0.29 0.27 0.23 0.50 0.42 0.81 0.43 0.34 0.26 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 2 2 2 2 2 2 2 2 2 2 2 2 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-8 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT SERVICE Elbert Elbert County School District 2012 No. 200 2013 2014 Elbert Elizabeth C-1 School District 2012 2013 2014 Elbert Kiowa C-2 School District 2012 2013 2014 Fremont Canon City RE-1 School 2012 District 2013 2014 Fremont Cotopaxi RE-3 School 2012 District 2013 2014 Fremont Florence RE-2 School District 2012 Custer El 2013 Paso 2014 Garfield Garfield 16 School District 2012 2013 2014 Garfield Garfield RE-2 School District 2012 2013 2014 Garfield Roaring Fork RE-1 School 2012 Eagle Pitkin District 2013 2014 Gilpin Gilpin County RE1 School 2012 District 2013 2014 Grand East Grand 2 School District 2012 2013 2014 Grand Eagle West Grand 1-JT School 2012 District 2013 2014 Gunnison Gunnison RE1J School 2012 District 2013 2014 Hinsdale Hinsdale County RE 1 School 2012 District 2013 2014 Huerfano Huerfano RE-1 School 2012 District 2013 2014 22,578 64,582 214,521 1,682,156 1,756,782 1,701,525 253,120 340,825 284,744 2,029,526 2,280,993 2,110,977 133,698 135,022 136,137 1,572,319 1,513,887 1,707,219 4,790,054 4,347,434 4,807,685 9,215,104 9,246,786 9,064,189 8,720,504 9,024,389 9,015,939 1,841,714 1,830,079 1,852,415 3,128,437 3,164,340 3,132,863 884,543 876,674 918,437 4,556,763 4,555,425 4,570,338 92,884 95,387 92,403 415,242 415,200 404,550 GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 63,428 2,329,237 2,545,372 1,646,250 1,586,947 1,707,034 3,253,011 4,835,780 3,281,525 26,222,728 26,292,723 27,530,789 2,464,993 2,460,921 2,496,017 1,244,989 1,791,951 1,812,741 15,202,173 14,870,135 14,540,057 47,112,704 46,853,804 46,356,898 56,941,306 57,374,786 60,433,430 6,409,838 6,686,917 5,582,334 14,539,101 13,801,851 13,972,319 900,532 893,467 889,984 4,779,191 4,585,319 4,434,053 103,473 98,666 114,820 463,178 493,271 466,898 1,113,968 1,109,511 1,205,595 5,453,130 4,716,902 4,904,289 1,930,609 2,318,651 2,244,045 5,383,116 5,084,821 4,912,024 1,342,007 1,410,089 1,502,616 6,576,678 6,221,619 8,249,710 4,254,093 3,990,797 3,611,033 16,066,972 16,331,455 15,111,862 24,410,214 26,295,792 21,931,445 3,061,762 3,278,921 3,754,863 4,842,292 4,642,200 4,405,755 2,550,127 2,454,835 2,227,439 5,961,473 6,227,667 6,682,831 1,524,657 1,448,554 1,502,234 2,543,818 2,680,322 2,750,065 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 90,521 106,363 105,930 1,939,738 1,970,051 1,921,639 345,173 346,838 422,446 3,171,315 3,241,610 3,371,811 275,972 279,187 271,032 1,556,984 1,341,814 1,255,354 766,365 829,117 773,526 2,592,532 2,663,179 2,524,229 12,800,758 14,809,857 10,807,512 438,010 425,503 527,166 1,151,815 1,164,797 1,205,525 553,831 581,926 414,601 1,864,523 3,207,551 3,291,860 153,758 131,893 149,346 454,005 455,595 817,263 1,023,447 1,003,148 1,099,665 3,513,392 2,746,851 2,982,650 1,585,437 1,971,813 1,821,599 2,211,801 1,843,211 1,540,213 1,066,035 1,130,902 1,231,584 5,019,694 4,879,805 6,994,356 3,487,728 3,161,680 2,837,507 13,474,440 13,668,276 12,587,633 11,609,456 11,485,935 11,123,933 2,623,752 2,853,418 3,227,697 3,690,477 3,477,403 3,200,230 1,996,296 1,872,909 1,812,838 4,096,950 3,020,116 3,390,971 1,370,899 1,316,661 1,352,888 2,089,813 2,224,727 1,932,802 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-9 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 2,330,133 2,327,667 2,329,137 18,991,417 18,355,065 18,914,144 3,252,682 4,835,573 3,232,486 24,174,753 24,108,475 24,692,800 2,356,931 2,346,409 2,385,627 11,128,487 11,007,665 13,105,100 10,129,476 9,696,840 9,449,823 37,046,102 36,711,361 38,399,325 47,759,797 48,623,929 51,552,045 4,486,197 4,697,698 5,300,923 11,462,368 10,789,300 10,909,919 4,585,076 4,504,060 4,530,638 15,022,198 14,481,915 15,838,529 1,413,691 1,346,138 1,338,580 4,383,485 4,404,827 4,203,050 2,304,929 2,271,118 2,164,370 19,205,287 18,663,316 18,258,345 3,148,177 4,361,197 3,326,675 23,629,314 23,419,284 24,113,289 2,268,490 2,201,542 2,214,945 11,087,489 11,025,139 10,868,141 9,523,477 10,279,601 9,713,996 36,482,395 35,806,798 38,000,992 41,535,234 44,874,513 47,670,902 3,943,998 4,214,333 4,410,947 10,157,091 10,389,525 10,624,277 4,211,236 4,223,976 4,125,258 14,324,185 14,199,451 14,923,509 1,411,104 1,412,675 1,302,353 3,921,555 3,990,153 4,329,819 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (27,538) (76,848) (68,250) (513,498) (458,290) (420,000) (188,000) (88,000) (56,025) (981,043) (1,057,781) (882,509) (93,000) (80,000) (70,000) (247,118) (122,415) (122,408) (60,000) (6,087) (60,000) (1,322,147) (710,728) (1,478,976) (2,155,835) (3,872,937) (4,243,144) (353,077) (253,699) (515,697) (902,257) (612,848) (562,815) (457,354) (403,471) (465,451) (443,978) (1,360,000) (546,673) (25,000) 12,299 (115,000) (245,000) (165,156) 1,025,781 1,023,447 1,003,148 4,240,760 3,513,392 2,746,851 1,668,932 1,585,437 1,971,813 2,647,405 2,211,801 1,843,211 1,070,594 1,066,035 1,130,902 5,225,814 5,019,694 4,879,805 2,921,478 3,487,728 3,161,680 14,232,881 13,474,441 13,668,276 7,540,728 11,609,456 11,485,934 2,434,630 2,623,752 2,853,418 3,287,457 3,690,476 3,477,403 2,079,810 1,996,296 1,872,909 3,522,964 4,096,950 3,020,116 1,393,312 1,370,899 1,316,661 1,742,883 2,124,573 2,224,727 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 12.31 10.43 11.38 2.81 2.39 2.55 5.59 6.69 5.31 1.70 1.57 1.46 4.86 5.05 5.54 4.22 4.64 6.57 5.55 4.81 4.67 6.20 6.13 5.99 1.91 1.78 2.03 6.99 7.71 7.12 4.20 3.99 3.65 4.60 4.22 5.37 3.20 1.94 2.03 9.92 10.98 10.06 5.60 5.88 3.36 2.81 36.07 11.87 0.98 0.90 1.00 12.85 14.19 11.52 12.92 11.53 13.04 18.44 18.23 18.33 0.79 1.18 1.06 3.17 3.42 3.02 5.11 5.07 5.11 6.53 6.36 6.70 3.48 3.65 3.01 4.65 4.36 4.46 1.02 1.02 0.97 1.05 1.01 0.97 1.11 1.03 1.24 1.12 1.19 1.15 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio (0.01) 0.04 (0.04) (0.04) 0.01 (0.03) 0.08 (0.05) (0.02) (0.02) (0.01) 0.03 0.04 (0.02) (0.01) 0.16 0.05 (0.06) (0.03) (0.02) 0.01 (0.03) 0.09 (0.01) 0.04 0.05 0.07 0.04 (0.02) (0.03) (0.02) (0.03) (0.01) 0.02 (0.07) 0.02 (0.02) (0.04) 0.03 0.08 0.04 (0.07) (0.02) 0.10 (0.17) (0.22) 0.09 (0.05) 0.24 (0.08) (0.16) (0.17) (0.16) 0.06 0.09 (0.04) (0.03) 0.43 0.19 (0.09) (0.10) (0.05) 0.01 (0.08) 0.54 (0.01) (0.03) 0.08 0.09 0.13 0.12 (0.06) (0.08) (0.04) (0.06) (0.03) 0.16 (0.26) 0.12 (0.02) (0.04) 0.03 0.20 0.05 (0.13) 0.44 0.43 0.49 0.18 0.14 0.16 0.48 0.44 0.54 0.09 0.08 0.06 0.45 0.50 0.54 0.44 0.44 0.64 0.36 0.31 0.29 0.36 0.37 0.32 0.27 0.24 0.21 0.61 0.64 0.66 0.33 0.32 0.29 0.43 0.40 0.39 0.28 0.19 0.22 0.95 0.94 1.04 0.52 0.53 0.43 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 1 1 1 1 1 1 2 2 2 1 1 1 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-10 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 2,494,043 2,297,380 2,634,562 2,526,087 2,647,122 671,674,910 683,839,334 696,501,440 166,897 179,251 197,655 5,990,441 6,126,811 6,603,131 220,433 227,236 2,049,846 2,132,314 1,650,503 1,543,513 1,261,043 46,768,515 46,582,797 48,288,180 12,081,224 12,127,429 11,538,568 203,572 864,491 781,182 1,702,252 1,657,432 1,666,248 1,093,583 986,528 1,085,015 1,501,845 1,591,825 1,541,082 114,315,678 125,812,661 141,512,192 1,510,750 1,448,745 1,396,858 1,101,790 1,035,453 1,070,840 1,594,737 1,391,860 1,467,304 1,168,447 900,982 838,289 2,942,009 2,866,721 2,891,113 1,359,678 1,415,802 1,415,115 1,688,322 1,669,122 1,673,275 4,995,543 5,483,339 5,538,200 16,043,038 14,211,321 11,501,010 5,973,824 6,310,060 6,293,445 2,982,836 2,954,656 2,853,626 5,089,195 5,029,894 4,891,057 SERVICE Huerfano Jackson Jefferson Kiowa Kiowa Kit Carson Kit Carson Kit Carson Kit Carson Kit Carson La Plata Archuleta La Plata La Plata Archuleta Lake Larimer La Veta RE-2 School District 2012 2013 2014 North Park R-1 School 2012 District 2013 2014 Jefferson County R-1 School 2012 District 2013 2014 Eads RE-1 School District 2012 2013 2014 Plainview RE-2 School 2012 District 2013 2014 Arriba-Flagler C-20 School 2012 District 2013 2014 Bethune R-5 School District 2012 2013 2014 Burlington RE-6J School 2012 District 2013 2014 High Plains R-23 School 2012 District 2013 2014 Stratton R-4 School District 2012 2013 2014 Bayfield 10 JT-R School 2012 District 2013 2014 Durango 9-R School District 2012 2013 2014 Ignacio 11 JT School District 2012 2013 2014 Lake County R-1 School 2012 District 2013 2014 Park (Estes Park) R-3 School 2012 District 2013 2014 113,172 108,386 100,400 881 3,522 77,283,672 77,111,542 53,099,907 125,028 131,475 127,475 536,188 540,981 535,606 41,662 198,552 5,562 5,562 2,603,904 2,343,895 1,702,384 8,142,810 10,254,242 7,879,313 677,021 3,348,485 3,246,536 114,725 282,626 881,568 1,568,172 1,701,630 1,639,125 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 289,268 347,257 342,495 345,930 358,231 338,712 78,261,125 75,846,096 80,214,309 156,091 164,071 158,074 88,905 66,807 155,998 134,314 152,224 193,984 135,225 151,581 147,967 621,460 515,001 589,585 120,885 124,930 134,378 190,138 192,978 207,855 626,210 692,501 498,666 5,077,358 4,908,394 4,861,921 825,195 768,043 777,802 791,805 931,127 865,547 1,657,647 1,138,393 1,226,274 804,315 639,271 742,520 1,155,915 1,233,594 1,202,370 36,054,553 49,966,565 61,297,883 1,354,659 1,284,674 1,238,784 1,012,885 968,646 914,842 1,460,423 1,239,636 1,273,319 1,033,222 749,401 690,321 2,320,549 2,351,720 2,301,528 1,238,793 1,290,872 1,280,737 1,498,184 1,476,144 1,465,420 4,369,333 4,790,838 5,039,534 10,965,680 9,302,927 6,639,089 5,148,629 5,542,017 5,515,643 2,191,031 2,023,529 1,988,079 3,431,548 3,891,501 3,664,783 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-11 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 2,419,926 2,236,454 2,327,449 2,841,755 2,526,087 2,647,122 593,902,199 631,867,806 644,380,306 1,960,527 1,933,427 2,155,084 1,251,586 1,143,008 1,122,243 1,855,246 1,845,672 2,062,308 1,635,716 1,623,487 1,874,350 5,373,685 5,552,614 5,960,689 1,604,508 1,678,455 1,664,092 2,049,846 2,132,314 2,144,913 10,504,480 11,650,954 12,229,902 39,409,150 39,065,588 40,300,181 8,330,238 8,326,622 8,142,541 9,073,517 8,912,998 9,203,242 10,385,524 10,397,124 10,787,510 2,283,561 2,311,498 2,159,200 2,403,807 2,431,246 2,631,902 566,139,750 566,507,652 577,225,551 1,847,257 1,925,012 2,106,574 1,099,519 1,167,247 1,057,956 1,792,077 1,916,459 1,952,525 1,762,012 1,848,840 1,880,609 5,183,463 5,333,443 5,811,491 1,518,280 1,573,875 1,611,728 2,147,308 2,143,593 2,122,327 10,070,215 10,602,642 11,461,206 36,549,075 38,470,903 41,056,519 7,976,846 8,058,234 8,233,915 8,889,662 9,000,500 9,198,692 10,510,558 9,891,089 10,174,790 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (95,000) (90,000) (65,000) (157,084) (29,662) (46,444) (46,468,984) (51,448,042) (55,823,437) (75,000) (78,400) (94,400) (25,220) (20,000) (30,000) (11,000) (150,000) (76,100) (54,703) (58,468) (52,821) (175,000) (188,000) (199,390) (32,000) (52,500) (62,500) (754) (10,760) (33,310) (370,962) (626,807) (520,000) (1,567,128) (2,722,560) (1,907,500) (233,352) 125,000 65,000 (1,000,000) (80,000) (40,000) (1,039,000) (46,082) (839,438) 704,486 804,315 639,271 875,051 1,155,915 1,233,594 54,761,088 36,054,553 49,966,565 1,316,389 1,354,659 1,284,674 886,038 1,012,885 880,555 1,408,254 1,460,423 1,239,636 1,214,221 1,033,222 749,401 2,305,327 2,320,549 2,351,720 1,184,566 1,238,793 1,290,872 1,596,400 1,498,184 1,476,144 4,306,030 4,369,333 4,790,838 9,672,733 11,430,802 9,302,927 5,028,589 5,148,629 5,542,017 3,007,176 2,191,031 2,023,529 4,595,282 3,431,548 3,891,501 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 3.78 2.84 3.17 4.34 4.44 4.55 1.46 1.66 1.76 9.68 8.83 8.84 12.39 15.50 6.86 11.87 9.14 7.56 8.64 5.94 5.67 4.73 5.57 4.90 11.25 11.33 10.53 8.88 8.65 8.05 7.98 7.92 11.11 3.16 2.90 2.37 7.24 8.22 8.09 3.77 3.17 3.30 3.07 4.42 3.99 22.04 21.20 26.24 2,867.30 751.60 8.69 8.87 13.12 1.33 1.36 1.55 11.17 11.33 12.33 5.29 1.14 368.54 383.37 0.63 0.66 0.74 5.74 4.54 6.13 17.84 3.62 3.55 1.77 3.06 0.89 1.09 0.97 1.02 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.02 (0.07) 0.04 0.10 0.03 (0.01) (0.03) 0.02 0.02 0.02 (0.04) (0.02) 0.10 (0.04) 0.03 0.03 (0.12) 0.02 (0.11) (0.17) (0.03) 0.01 (0.01) 0.03 0.03 (0.01) (0.05) (0.01) 0.01 0.04 0.02 0.03 (0.05) (0.07) 0.01 0.05 (0.09) (0.02) (0.11) 0.04 (0.02) 0.14 (0.21) 0.16 0.32 0.07 (0.03) (0.34) 0.39 0.23 0.03 (0.05) (0.04) 0.14 (0.04) 0.04 0.04 (0.15) 0.03 (0.15) (0.27) (0.08) 0.01 0.01 (0.02) 0.05 0.04 (0.01) (0.06) (0.01) (0.01) 0.01 0.10 0.05 0.13 (0.19) (0.29) 0.02 0.08 (0.27) (0.08) (0.02) (0.25) 0.13 (0.06) 0.34 0.27 0.33 0.45 0.50 0.45 0.06 0.08 0.10 0.70 0.64 0.56 0.90 0.82 0.84 0.81 0.60 0.63 0.57 0.39 0.36 0.43 0.43 0.38 0.80 0.79 0.77 0.70 0.69 0.68 0.42 0.43 0.42 0.29 0.23 0.15 0.63 0.70 0.68 0.22 0.22 0.22 0.30 0.39 0.33 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 1 1 1 1 1 1 2 2 2 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-12 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS SERVICE Larimer Poudre R-1 School District 2012 2013 2014 Larimer Thompson R-2J School 2012 District 2013 2014 Las Animas Aguilar Reorganized 6 School 2012 District 2013 2014 Las Animas Branson Reorganized 82 2012 School District 2013 2014 Las Animas Hoehne Reorganized 3 2012 School District 2013 2014 Las Animas Kim Reorganized 88 School 2012 District 2013 2014 Las Animas Primero Reorganized 2 2012 School District 2013 2014 Las Animas Trinidad 1 School District 2012 2013 2014 Lincoln Genoa-Hugo C113 School 2012 District 2013 2014 Lincoln Karval RE-23 School District 2012 2013 2014 Lincoln Limon RE-4J School District 2012 Elbert 2013 2014 Buffalo RE-4J School District 2012 Logan 2013 2014 Logan Frenchman RE-3 School 2012 District 2013 2014 Logan Plateau RE-5 School District 2012 2013 2014 Logan Valley RE-1 School District 2012 2013 2014 36,467,786 29,467,738 29,785,054 11,663,711 12,783,249 10,829,506 84,648 82,672 72,022 175,111 169,492 178,193 54,365 1,368,696 1,363,371 1,350,100 533,050 530,000 646,794 122,268 220,596 567,660 189,526 240,706 187,871 158,317 160,413 162,313 40,889 44,570 43,130 319,084 72,374 1,578,917 1,650,150 1,633,950 35,287,991 30,128,659 27,975,852 124,238,106 123,468,941 130,389,216 1,888,251 1,731,807 75,220 135,244 129,343 161,692 198,691 4,272,754 3,978,485 1,443,870 541,202 542,057 9,798,143 2,244,792 2,687,936 2,790,126 249,238 263,480 822,735 166,300 175,256 166,690 46,818 44,294 44,371 2,721,522 3,226,740 1,864,104 1,860,512 1,856,994 73,249,389 73,276,445 76,278,974 41,879,090 43,020,988 39,808,240 637,715 510,978 260,016 1,065,414 1,146,417 1,193,566 2,154,125 2,472,731 3,001,751 1,096,696 1,163,058 1,199,075 3,033,663 3,002,582 3,084,119 2,676,196 2,838,222 3,394,440 1,774,171 1,775,267 1,781,555 1,450,264 1,192,265 884,078 1,663,691 1,539,828 1,197,370 1,611,069 1,551,686 1,534,074 1,406,403 1,304,751 1,129,493 2,601,485 2,111,382 2,126,332 7,019,607 6,506,662 6,689,467 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 19,816,464 20,510,460 21,703,845 13,260,328 13,202,051 13,492,816 184,979 177,526 181,844 308,917 320,325 282,255 1,279,485 1,515,923 1,563,500 124,062 76,633 76,289 187,082 235,415 217,364 1,036,604 841,926 967,239 220,318 223,104 228,188 202,051 133,177 119,288 315,892 391,894 390,193 220,764 232,842 260,559 171,482 197,502 202,855 195,466 196,275 214,234 2,097,004 2,130,719 2,440,045 53,432,925 52,765,985 54,575,129 28,618,762 29,818,937 26,315,424 452,736 333,452 78,172 756,497 826,092 911,311 874,640 956,808 1,438,251 972,634 1,086,425 1,122,786 2,846,581 2,767,167 2,866,755 1,639,592 1,996,296 2,427,201 1,553,853 1,552,163 1,553,367 1,248,212 1,059,088 764,790 1,347,799 1,147,934 807,177 1,390,305 1,318,844 1,273,515 1,234,921 1,107,249 926,638 2,406,019 1,915,107 1,912,098 4,922,603 4,375,943 4,249,422 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-13 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 207,167,480 213,283,923 223,908,089 111,685,897 112,983,461 117,308,649 1,801,872 1,669,256 1,565,535 2,935,229 2,943,927 3,212,773 2,861,524 2,930,072 3,298,868 1,026,696 1,021,127 994,033 2,869,727 2,645,116 2,811,529 10,014,824 9,607,284 9,239,608 2,069,828 1,995,046 2,054,127 1,732,304 1,334,131 1,247,880 3,547,606 3,650,402 3,822,704 2,879,933 2,942,967 2,958,433 2,233,304 2,236,407 2,352,201 2,667,866 2,721,522 3,226,740 16,687,337 16,163,209 16,490,800 201,605,257 213,068,611 221,256,345 110,150,738 109,742,524 117,720,052 1,914,037 1,714,501 1,751,325 2,801,715 2,829,332 3,097,554 2,576,634 2,732,754 2,774,925 997,296 867,336 911,672 2,526,452 2,563,723 2,517,437 10,736,554 8,980,580 9,753,897 2,026,693 1,972,736 1,979,923 1,852,197 1,596,442 1,503,461 3,452,805 3,872,448 3,994,918 2,853,811 3,009,428 2,998,762 2,111,360 2,342,681 2,512,812 3,558,780 3,196,827 3,203,901 16,851,575 16,718,901 16,622,471 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (755,130) (908,322) (686,081) (2,643,417) (2,040,762) (3,092,110) (55,370) (44,027) (69,489) (51,000) (45,000) (30,000) (55,000) (60,000) (42,500) (25,700) (40,000) (46,000) (193,456) (160,808) (154,074) (350,000) (270,000) (264,256) (24,000) (24,000) (73,000) (34,235) (26,813) (38,717) (35,665) (71,219) (72,200) (10,000) (5,000) (7,000) (18,217) (21,398) (20,000) (27,408) (15,607) (25,848) (716) - 48,606,399 53,432,925 52,765,985 29,727,020 28,618,762 29,818,937 620,271 422,724 333,451 673,983 756,497 826,092 644,750 929,790 956,808 993,899 972,634 1,086,425 2,696,762 2,846,582 2,726,737 2,711,322 1,639,592 1,996,296 1,521,057 1,553,853 1,552,163 1,402,340 1,248,212 1,059,088 1,288,663 1,347,799 1,147,934 1,373,783 1,390,305 1,318,844 1,131,194 1,234,921 1,107,249 2,068,300 2,406,019 1,915,107 5,087,557 4,922,603 4,375,943 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 3.70 3.57 3.51 3.16 3.26 2.95 3.45 2.88 1.43 3.45 3.58 4.23 1.68 1.63 1.92 8.84 15.18 15.72 16.22 12.75 14.19 2.58 3.37 3.51 8.05 7.96 7.81 7.18 8.95 7.41 5.27 3.93 3.07 7.30 6.66 5.89 8.20 6.61 5.57 13.31 10.76 9.93 3.35 3.05 2.74 0.97 1.02 0.94 10.65 9.66 12.04 22.31 20.95 1.04 0.77 0.76 0.91 3.65 3.12 2.92 1.07 1.02 1.02 15.15 18.36 12.18 4.92 1.32 1.09 4.38 1.05 1.09 1.03 1.15 0.99 1.03 8.53 44.58 1.18 1.13 1.14 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.02 0.01 (0.01) 0.01 (0.03) (0.09) (0.05) (0.16) 0.03 0.02 0.03 0.08 0.05 0.15 0.11 0.04 0.05 (0.03) 0.05 (0.11) 0.04 (0.08) 0.01 (0.09) (0.22) (0.24) 0.02 (0.08) (0.06) 0.01 (0.02) (0.02) 0.05 (0.06) (0.08) (0.34) (0.18) (0.01) (0.03) (0.01) 0.10 (0.01) 0.03 (0.04) 0.04 (0.12) (0.27) (0.21) (0.77) 0.12 0.09 0.10 0.36 0.03 0.50 (0.02) 0.12 0.03 0.06 (0.03) 0.05 (0.40) 0.22 0.22 0.02 (0.11) (0.15) (0.28) 0.05 (0.15) (0.30) 0.01 (0.05) (0.03) 0.09 (0.10) (0.16) 0.16 (0.20) (0.03) (0.11) (0.03) 0.26 0.25 0.25 0.25 0.27 0.22 0.23 0.19 0.04 0.27 0.29 0.29 0.33 0.34 0.51 0.95 1.20 1.17 1.05 1.02 1.07 0.15 0.22 0.24 0.76 0.78 0.76 0.66 0.65 0.50 0.39 0.29 0.20 0.49 0.44 0.42 0.58 0.47 0.37 0.67 0.60 0.59 0.29 0.26 0.26 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 1 1 1 2 2 2 1 1 1 2 2 2 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-14 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS SERVICE Mesa Garfield DeBeque 49JT School District 2012 2013 2014 Mesa Mesa County Valley 51 2012 School District 2013 2014 Mesa Plateau Valley 50 School 2012 District 2013 2014 Mineral Creede School District 2012 2013 2014 Moffat Moffat County RE1 School 2012 District 2013 2014 Montezuma Dolores RE-4A School 2012 District 2013 2014 Montezuma Mancos RE-6 School District 2012 2013 2014 Montezuma Montezuma-Cortez RE-1 2012 School District 2013 2014 Montrose Montrose County RE-1J 2012 Gunnison School District 2013 Ouray 2014 Montrose West End RE-2 School 2012 District 2013 2014 Morgan Brush RE-2(J) School District 2012 2013 2014 Fort Morgan RE-3 School Morgan 2012 District 2013 2014 Morgan Weldon Valley RE-20(J) 2012 School District 2013 2014 Morgan Wiggins RE-50(J) School 2012 Adams District 2013 Weld 2014 Otero Cheraw 31 School District 2012 2013 2014 262,250 260,513 262,487 11,914,331 13,176,454 13,143,788 266,612 294,556 282,031 149,321 2,571,242 2,637,963 12,389,378 325,707 361,078 474,257 189,549 189,365 37,600 296,800 1,432,825 737,796 884,124 1,018,443 38,804 1,206,445 1,114,467 1,167,375 2,047,915 2,152,274 2,229,919 79,585 78,035 74,656 392,484 390,801 378,589 33,535 33,535 33,535 296,774 287,124 255,154 157,048,147 158,512,146 161,669,927 351,779 354,593 353,353 314,542 21,449,231 20,860,872 22,283,024 6,061,506 6,537,388 6,529,568 3,500,620 3,704,996 3,965,617 1,456,588 1,483,756 42,561,346 41,725,082 42,986,765 2,883,856 11,804,633 12,312,765 12,546,788 24,542,226 24,198,557 25,687,242 76,735 77,273 77,362 405,076 393,541 513,768 2,259,705 2,329,542 2,388,723 1,798,863 1,628,799 2,059,457 29,931,908 30,001,937 32,419,146 2,288,677 2,748,708 2,581,871 2,057,245 1,868,825 1,644,508 9,695,271 9,330,918 8,944,356 3,589,469 3,710,558 3,461,246 1,732,889 1,734,901 1,804,984 5,825,335 5,459,368 5,808,492 15,480,414 17,210,667 14,352,809 1,579,256 2,494,638 1,742,221 4,799,436 4,695,869 4,190,007 11,796,964 10,645,872 10,597,849 1,586,711 1,573,412 1,527,200 2,134,417 1,832,964 1,767,222 996,004 957,852 893,971 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 136,122 173,010 178,656 21,163,844 21,028,841 23,331,797 352,152 385,469 475,427 172,007 167,531 169,471 1,733,550 1,791,670 1,949,183 599,920 625,697 662,739 300,657 301,630 356,749 2,242,675 2,118,727 2,260,420 4,497,733 6,767,876 5,614,547 224,176 1,131,686 271,134 1,086,576 1,323,998 1,335,646 2,806,781 2,619,363 2,778,939 106,503 160,515 106,825 490,927 618,291 511,309 224,964 220,779 258,346 1,662,741 1,455,789 1,880,801 8,768,064 8,973,096 9,087,349 1,936,525 2,363,239 2,106,444 1,885,238 1,701,294 1,475,037 7,961,721 7,539,248 6,995,173 2,989,549 3,084,861 2,798,507 1,432,232 1,433,271 1,448,235 3,582,660 3,340,641 3,548,072 10,982,681 10,442,791 8,738,262 1,355,080 1,362,952 1,471,087 3,712,860 3,371,871 2,854,361 8,990,183 8,026,509 7,818,910 1,480,208 1,412,897 1,420,375 1,643,490 1,214,673 1,255,913 771,040 737,073 635,625 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-15 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 1,859,928 1,906,146 2,011,905 147,137,648 146,814,242 150,715,235 3,695,278 4,196,017 4,130,621 1,662,374 1,506,223 1,404,780 18,995,271 18,391,258 19,753,898 5,745,692 5,919,700 6,099,938 3,422,499 3,698,215 3,965,617 18,886,708 19,085,276 19,681,266 41,682,730 40,857,240 42,112,516 2,883,856 2,887,797 3,044,546 10,519,366 10,971,726 11,143,571 22,598,305 22,302,402 23,354,829 2,269,583 2,276,915 2,337,187 4,171,282 3,981,773 4,226,916 2,234,118 2,329,542 2,388,723 1,619,820 2,044,296 1,963,531 143,380,830 143,367,189 147,382,092 3,643,668 3,746,863 4,364,196 1,534,940 1,660,167 1,581,037 18,560,837 18,318,499 19,635,907 5,261,985 5,615,888 5,996,292 3,417,700 3,401,088 3,916,289 19,084,783 18,619,295 19,045,577 35,565,156 41,582,832 40,829,336 2,861,140 2,853,225 2,903,557 10,138,001 11,245,882 11,657,236 22,766,431 23,165,642 24,017,527 2,112,691 2,240,476 2,235,208 4,063,596 4,305,535 4,185,676 2,335,284 2,336,611 2,443,966 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (43,000) (43,000) 376,638 (3,397,166) (3,242,021) (3,218,890) (24,940) (22,440) (23,220) (57,037) (30,000) (50,000) (172,756) (495,232) (662,066) (73,500) (208,500) (390,000) (61,774) (296,088) (34,364) (895,559) (428,258) (1,678,200) (1,967,000) (1,886,200) (27,100) (26,700) (32,854) (137,333) (82,808) (3,845) (92,151) (100,434) (109,040) (163,000) (103,750) (94,500) (3,675) (105,055) (46,247) (26,898) (11,739) 1,465,633 1,662,741 1,455,789 8,408,412 8,768,064 8,973,096 1,909,855 1,936,525 2,363,239 1,814,841 1,885,238 1,701,294 7,700,043 7,961,721 7,539,248 2,579,342 2,989,549 3,084,861 1,489,207 1,432,232 1,433,271 4,676,294 3,582,660 3,340,641 7,689,904 10,982,681 10,442,791 1,359,464 1,355,080 1,362,952 3,468,828 3,712,860 3,371,871 9,250,460 8,990,183 8,026,509 1,486,316 1,480,208 1,412,896 1,539,479 1,643,490 1,214,673 918,453 771,040 702,607 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 13.22 9.41 11.53 1.41 1.43 1.39 6.50 7.13 5.43 11.96 11.16 9.70 5.59 5.21 4.59 5.98 5.93 5.22 5.76 5.75 5.06 2.60 2.58 2.57 3.44 2.54 2.56 7.04 2.20 6.43 4.42 3.55 3.14 4.20 4.06 3.81 14.90 9.80 14.30 4.35 2.96 3.46 4.43 4.34 3.46 1.13 1.10 0.97 13.18 12.03 12.30 1.32 1.20 1.25 2.11 8.34 7.91 1.80 18.61 18.11 13.77 18.47 19.57 105.47 4.91 1.04 57.69 47.19 42.21 74.32 9.78 11.05 10.75 11.98 11.24 11.52 0.96 0.99 1.04 1.03 1.01 1.36 67.38 69.47 71.23 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.11 (0.10) 0.21 0.01 0.10 (0.06) 0.04 (0.12) (0.16) 0.01 (0.02) (0.03) 0.07 0.02 (0.05) (0.02) (0.06) 0.02 0.01 0.11 (0.07) (0.01) 0.04 0.02 (0.03) (0.05) (0.01) (0.04) (0.03) (0.03) 0.02 (0.11) 0.01 (0.07) (0.01) (0.03) 0.13 (0.12) 0.29 0.04 0.02 0.01 0.01 0.22 (0.11) 0.04 (0.10) (0.13) 0.03 (0.05) (0.07) 0.16 0.03 (0.09) (0.04) 0.01 (0.23) (0.07) 0.06 0.43 (0.05) (0.16) 0.01 0.08 0.07 (0.09) (0.15) (0.03) (0.11) (0.03) (0.05) 0.01 0.07 (0.26) 0.03 (0.16) (0.04) (0.10) 1.00 0.70 1.19 0.06 0.06 0.06 0.53 0.63 0.48 1.18 1.01 0.90 0.43 0.40 0.34 0.56 0.53 0.44 0.41 0.39 0.37 0.18 0.18 0.18 0.29 0.24 0.20 0.47 0.47 0.50 0.36 0.30 0.24 0.39 0.35 0.32 0.65 0.60 0.61 0.40 0.28 0.30 0.32 0.31 0.26 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 2 2 2 2 2 2 1 1 1 2 2 2 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-16 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS 697,898 744,922 1,041,699 213,346 141,060 188,867 187,132 193,045 181,591 192,294 194,771 192,869 4,685,598 4,376,218 4,810,564 7,283,859 7,171,406 7,240,052 907,107 911,890 902,483 263,428 209,910 5,280,744 5,546,281 7,047,331 7,372,905 7,140,910 311,241 308,101 299,048 547,325 366,464 25,821 4,596,212 4,411,944 3,987,945 1,363,430 1,370,559 1,363,598 1,705,519 1,507,974 1,522,059 3,051,589 3,057,270 3,290,301 2,251,094 2,135,920 2,119,096 1,323,136 1,448,101 1,622,999 1,838,948 1,827,807 1,741,171 2,136,771 2,330,015 2,337,045 2,424,913 2,611,631 2,690,847 1,894,639 1,835,645 1,720,021 2,046,296 1,850,666 1,840,619 12,668,815 11,544,212 10,841,414 2,329,916 2,361,935 2,409,627 2,554,778 2,800,127 2,893,463 2,939,986 2,886,193 3,539,719 SERVICE Otero East Otero R-1 School District Otero Crowley Fowler R-4J School District Otero Crowley Manzanola 3J School District Otero Rocky Ford R-2 School District Otero Swink 33 School District Ouray Ouray R-1 School District Ouray Ridgway R-2 School District Park Park County RE-2 School District Park Platte Canyon 1 School District Phillips Logan Haxtun RE-2J School District Phillips Holyoke RE-1J School District Pitkin Aspen 1 School District Prowers Granada RE-1 School District Prowers Holly RE-3 School District Prowers Lamar RE-2 School District 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 671,403 840,790 866,806 1,508,204 169,950 147,250 191,170 187,212 188,112 192,951 192,507 186,814 753,761 816,703 764,871 1,842,161 1,854,609 1,825,041 902,414 900,892 900,781 67,746 190,321 405,721 405,219 6,347,988 7,147,744 7,070,556 256,286 250,492 250,444 366,018 366,818 2,976,186 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 461,189 397,624 654,700 400,674 360,249 357,522 196,907 198,099 247,612 659,495 595,180 649,725 381,465 328,433 323,754 224,648 218,372 343,533 276,242 282,586 359,589 427,917 408,359 416,088 649,308 694,309 699,584 306,612 254,234 281,024 437,832 452,933 511,621 3,151,254 2,586,985 1,906,094 249,230 256,059 231,565 242,809 246,115 268,019 1,067,772 1,157,688 1,264,758 4,135,023 4,014,320 3,333,245 962,756 1,010,310 1,006,076 1,508,612 1,309,875 1,274,447 2,392,094 2,462,090 2,640,576 1,869,629 1,807,487 1,795,342 1,098,488 1,229,729 1,279,466 1,562,706 1,545,221 1,381,582 1,708,854 1,921,656 1,920,957 1,775,605 1,917,322 1,991,263 1,588,027 1,581,411 1,438,997 1,608,464 1,397,733 1,328,998 9,517,561 8,957,227 8,935,320 2,080,686 2,105,876 2,178,062 2,311,969 2,554,012 2,625,444 1,872,214 1,728,505 2,274,961 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-17 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 9,262,305 9,687,033 9,566,942 3,410,897 3,444,200 3,504,113 2,195,999 2,093,181 2,176,211 6,540,128 6,290,090 6,592,855 3,240,269 3,252,277 3,221,902 2,747,413 2,715,856 2,694,119 3,792,150 3,792,340 3,972,364 5,417,516 5,281,923 5,302,866 9,041,451 8,931,565 8,773,184 2,664,451 2,668,437 2,783,932 5,113,095 5,065,088 5,295,684 18,779,477 19,175,468 21,509,405 2,616,397 2,401,248 2,451,360 2,779,464 2,770,681 2,834,431 11,216,339 11,192,169 11,910,196 8,311,903 8,561,383 8,878,648 3,449,338 3,471,646 3,559,044 2,246,614 2,241,918 2,121,596 6,113,989 5,913,856 6,198,051 3,218,961 3,264,419 3,182,397 2,532,771 2,485,519 2,545,382 3,471,406 3,654,893 3,968,488 5,308,490 5,056,466 5,101,444 8,881,587 8,644,848 8,654,243 2,724,872 2,675,053 2,911,346 4,865,108 5,246,268 5,359,669 18,020,309 18,823,402 20,458,669 2,674,022 2,310,858 2,329,174 2,543,922 2,528,638 2,762,999 9,492,681 9,479,283 10,279,259 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (605,185) (1,246,353) (1,369,369) 27,500 75,000 50,697 (75,000) (50,000) (45,000) (239,000) (306,238) (216,318) (80,000) (50,000) (51,650) (101,000) (99,000) (99,000) (165,000) (154,932) (167,515) (185,146) (156,240) (208,694) (59,345) (145,000) (45,000) (47,000) (15,000) (411,672) (30,000) (10,000) (615,871) (912,400) (1,089,103) (116,600) (65,200) (50,000) (25,303) (1,817,139) (1,856,594) (1,084,481) 3,789,806 4,135,023 4,014,320 973,697 962,756 1,010,310 1,634,227 1,508,612 1,264,832 2,204,955 2,392,094 2,462,090 1,928,321 1,869,629 1,807,487 984,846 1,098,392 1,229,729 1,406,962 1,562,706 1,545,221 1,784,974 1,708,854 1,921,656 1,675,086 1,775,605 1,917,322 1,695,448 1,588,027 1,581,411 1,768,149 1,608,464 1,397,733 9,374,264 9,517,561 8,973,687 2,254,911 2,080,686 2,105,876 2,101,730 2,311,969 2,554,012 1,965,695 1,872,213 1,728,505 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 9.97 11.10 6.09 3.40 3.80 3.81 8.66 7.61 6.15 4.63 5.14 5.06 5.90 6.50 6.55 5.89 6.63 4.72 6.66 6.47 4.84 4.99 5.71 5.62 3.73 3.76 3.85 6.18 7.22 6.12 4.67 4.09 3.60 4.02 4.46 5.69 9.35 9.22 10.41 10.52 11.38 10.80 2.75 2.49 2.80 1.04 0.89 1.20 0.14 0.83 1.28 0.98 1.03 0.97 1.00 1.01 1.03 6.22 5.36 6.29 3.95 3.87 3.97 1.01 1.01 1.00 3.89 1.10 13.02 13.69 1.11 1.03 1.01 1.21 1.23 1.19 1.50 1.00 0.01 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.04 (0.01) (0.07) 0.01 (0.06) (0.09) 0.03 0.01 0.03 (0.02) (0.02) 0.04 0.05 0.02 0.04 (0.04) (0.01) 0.01 0.01 0.02 0.01 (0.04) (0.05) (0.03) (0.04) (0.01) 0.01 (0.03) (0.07) 0.01 0.03 0.08 0.09 0.03 (0.01) (0.01) 0.05 0.09 (0.03) (0.17) (0.01) 0.05 (0.08) (0.13) 0.01 0.08 0.03 0.07 (0.03) (0.03) (0.01) 0.12 0.12 0.04 0.11 (0.01) (0.11) (0.04) 0.12 0.06 0.08 0.04 (0.06) (0.09) (0.09) (0.13) (0.05) 0.02 (0.06) (0.08) 0.01 0.03 0.10 0.10 0.03 (0.05) (0.08) 0.32 0.46 0.41 0.33 0.28 0.30 0.29 0.65 0.57 0.59 0.38 0.40 0.41 0.57 0.55 0.56 0.42 0.48 0.48 0.43 0.41 0.33 0.31 0.37 0.36 0.20 0.22 0.23 0.57 0.59 0.49 0.30 0.26 0.25 0.51 0.45 0.41 0.75 0.89 0.92 0.90 1.01 0.95 0.17 0.15 0.20 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 2 2 2 2 2 2 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-18 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS SERVICE Prowers Bent Wiley RE-13 JT School District Pueblo Pueblo City Schools Pueblo Pueblo County Rural 70 School District Rio Blanco Meeker RE1 School District Rio Blanco Rangely RE-4 School District Rio Grande Del Norte C-7 School District Rio Grande Monte Vista C-8 School District Rio Grande Sargent RE-33J School Alamosa District Routt Hayden RE-1 School District Routt Rio Blanco South Routt RE 3 School District Routt Steamboat Springs RE-2 School District Saguache Center 26 JT School District Alamosa Rio Grande Saguache Moffat 2 School District Saguache Mountain Valley RE 1 School District San Juan Silverton 1 School District 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 88,656 90,963 83,167 8,402,996 7,910,562 7,953,362 11,431,413 15,330,169 11,789,931 2,051,544 2,049,331 2,048,544 1,834,888 1,824,787 1,831,238 370,574 427,877 391,241 864,092 652,047 685,389 373,713 371,473 373,225 50,064 514,809 68,779 859,126 854,426 860,726 3,526,044 3,366,861 3,274,747 524,576 517,053 496,895 229,428 225,283 277,945 87,052 87,021 86,988 2,274,197 2,233,584 2,254,947 113,734,662 8,270,503 8,343,085 64,140,730 62,327,133 68,698,011 2,241,726 2,221,774 2,222,072 1,761,386 1,858,631 1,898,235 396,859 5,290,055 5,274,412 8,726,696 8,516,579 8,674,563 385,397 392,285 394,457 5,337,785 5,017,586 5,068,264 869,676 862,958 870,745 3,488,597 3,479,693 3,493,434 5,758,589 6,731,999 6,119,772 167,187 161,690 387,202 82,836 78,933 71,205 2,106,460 2,047,864 2,086,927 29,939,252 29,569,422 35,056,657 15,354,884 10,170,358 8,099,676 4,341,783 4,855,289 4,742,847 1,604,596 1,666,180 3,292,408 1,251,483 2,172,352 2,415,921 3,032,091 2,696,957 2,747,354 1,721,325 1,634,384 1,488,990 1,671,282 1,576,625 1,344,795 2,065,841 1,507,799 1,278,958 10,860,918 10,628,004 10,829,533 943,538 1,252,278 1,182,143 1,507,589 1,652,486 1,842,904 1,364,003 1,134,859 935,232 980,493 845,428 728,814 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 241,503 214,287 251,652 14,112,937 13,256,708 20,909,092 9,142,054 8,287,839 8,541,684 481,702 691,246 627,981 492,872 499,274 487,664 492,478 482,151 537,361 941,257 906,421 952,559 314,214 343,033 316,249 508,763 571,571 640,335 639,807 543,971 565,149 2,406,489 2,728,778 2,619,117 483,820 537,632 492,494 265,307 241,910 248,986 254,340 235,573 213,976 154,330 99,416 105,903 1,864,957 1,833,577 1,835,275 15,826,315 16,312,714 14,147,565 6,212,830 1,882,519 (442,008) 3,860,081 4,164,043 4,114,866 1,111,724 1,166,906 2,804,744 759,005 1,690,201 1,878,560 2,090,834 1,790,536 1,794,795 1,407,111 1,291,351 1,172,741 1,162,519 1,005,054 704,460 1,426,034 963,828 713,809 8,454,429 7,899,226 8,210,416 459,718 714,646 689,649 1,242,282 1,410,576 1,593,918 1,109,663 899,286 721,256 826,163 746,012 622,911 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-19 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 2,274,197 2,233,584 2,254,947 105,572,955 106,589,338 110,319,072 57,401,403 58,394,928 61,053,035 6,296,751 6,546,904 6,373,041 4,335,432 4,895,479 5,473,412 4,130,525 4,901,314 5,088,137 8,169,136 7,921,847 8,086,065 3,442,550 3,500,436 3,576,943 5,142,626 5,014,025 5,068,239 5,269,836 4,509,137 4,607,470 20,620,606 21,714,252 22,074,983 5,400,538 6,362,954 5,761,007 3,006,229 3,128,380 3,301,980 2,143,534 1,745,072 2,059,643 1,118,707 1,352,034 1,298,512 2,086,986 2,182,964 2,198,051 106,447,150 105,400,921 110,989,890 71,140,094 61,795,239 62,559,245 5,554,263 6,082,220 6,387,219 4,392,664 4,840,123 4,780,739 4,114,581 3,809,235 4,546,780 8,132,247 8,070,345 8,498,586 3,473,758 3,550,056 3,650,553 4,784,734 4,885,490 5,178,833 4,516,240 4,791,333 4,774,992 19,222,649 21,112,262 21,418,744 5,530,883 6,077,593 5,948,599 2,762,845 2,828,812 2,982,773 1,771,866 1,905,449 2,055,673 1,109,487 1,476,200 1,360,401 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (72,000) (82,000) (55,198) (1,146,178) (702,018) (1,494,331) (751,000) (930,000) (845,000) (37,804) (160,722) (35,000) (165,000) (227,000) 945,165 (107,800) (160,883) (352,998) (122,100) (152,100) (112,100) (51,343) (116,343) (45,000) (205,000) (286,000) (190,000) (355,272) (180,010) (82,497) (329,742) (1,157,193) (345,049) (31,041) (30,433) (13,405) (162,347) (131,274) (113,381) (50,000) (50,000) (182,000) (15,000) 44,015 (61,212) Ratio 1 Ratio 2 ASR DBR Ratio Ratio 1,749,746 1,864,957 1,833,577 17,846,688 15,826,315 16,312,714 9,578,652 6,212,830 1,882,519 3,155,397 3,860,081 4,164,044 1,333,956 1,338,550 1,166,906 850,861 759,005 1,690,201 2,134,829 2,090,834 1,790,536 1,489,662 1,457,314 1,291,351 1,009,627 1,162,519 1,005,054 1,027,710 1,426,034 963,828 7,873,481 8,454,429 7,899,226 621,104 459,718 714,646 1,161,245 1,242,282 1,388,092 787,995 1,109,663 899,286 831,943 826,163 746,012 8.72 9.56 8.29 2.12 2.23 1.68 1.68 1.23 0.95 9.01 7.02 7.55 3.26 3.34 6.75 2.54 4.51 4.50 3.22 2.98 2.88 5.48 4.76 4.71 3.28 2.76 2.10 3.23 2.77 2.26 4.51 3.89 4.13 1.95 2.33 2.40 5.68 6.83 7.40 5.36 4.82 4.37 6.35 8.50 6.88 25.65 24.55 27.11 13.54 1.05 1.05 5.61 4.07 5.83 1.09 1.08 1.08 0.96 1.02 1.04 1.07 12.36 13.48 10.10 13.06 12.66 1.03 1.06 1.06 106.62 9.75 73.69 1.01 1.01 1.01 0.99 1.03 1.07 10.98 13.02 12.32 0.73 0.72 1.39 0.95 0.91 0.82 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.86 0.81 0.81 0.15 0.15 0.13 0.09 0.03 (0.01) 0.69 0.67 0.64 0.24 0.23 0.73 0.18 0.43 0.38 0.25 0.22 0.21 0.40 0.35 0.32 0.23 0.19 0.13 0.29 0.19 0.15 0.43 0.35 0.38 0.08 0.12 0.12 0.42 0.48 0.51 0.61 0.46 0.32 0.73 0.52 0.44 0.05 (0.01) (0.02) (0.02) (0.25) (0.07) (0.04) 0.11 0.05 (0.01) (0.05) (0.04) 0.30 (0.02) 0.19 0.04 (0.01) (0.04) (0.06) (0.02) (0.05) (0.03) 0.03 (0.03) (0.06) 0.08 (0.10) (0.05) 0.05 (0.03) 0.01 (0.03) 0.04 (0.03) 0.03 0.05 0.06 0.15 (0.12) (0.09) (0.01) (0.06) (0.09) 0.07 (0.02) (0.11) 0.03 (0.13) (0.35) (0.70) (1.23) 0.22 0.08 (0.01) (0.17) (0.13) 1.40 (0.11) 1.23 0.11 (0.02) (0.14) (0.06) (0.11) (0.09) 0.15 (0.14) (0.30) 0.39 (0.32) (0.26) 0.07 (0.07) 0.04 (0.26) 0.55 (0.03) 0.07 0.14 0.15 0.41 (0.19) (0.20) (0.01) (0.10) (0.17) # of Missed Colorado School District Fiscal Health Data 2012 through 2014 4 4 4 1 1 1 1 1 1 1 1 1 2 2 2 1 1 1 3 3 3 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-20 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS SERVICE San Miguel Montrose Norwood R-2J School District San Miguel Telluride R-1 School District Sedgwick Phillips Julesburg RE-1 School District Sedgwick Platte Valley RE-3 School District Summit Summit RE-1 School District Teller Cripple Creek-Victor RE-1 School District Teller Woodland Park RE-2 School District Washington Akron R-1 School District Washington Arickaree R-2 School District Washington Lone Star 101 School District Washington Otis R-3 School District Washington Woodlin R-104 School District Weld Ault-Highland RE-9 School District Weld Morgan Briggsdale School District RE10J Weld Eaton RE-2 School District 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 284,324 292,701 285,453 1,997,908 6,882,893 71,153 327,386 6,607,726 7,010,595 6,738,170 1,173,767 995,471 995,670 1,986,173 5,390,000 1,890,054 814,323 586,532 588,820 60,970 104,301 253,833 712,038 498,310 497,681 335,467 412,500 444,248 1,015,930 1,626,535 924,525 301,733 288,165 303,369 1,858,644 89,652 376,883 404,097 6,614,739 6,908,660 6,822,288 6,046,641 6,405,083 7,005,824 21,290,810 20,999,392 21,148,487 3,975,267 3,389,328 4,158,751 66,073 261,305 258,729 7,887,381 7,781,206 7,941,482 439,857 2,513,058 2,873,640 13,777,998 14,005,410 14,452,225 1,841,508 1,848,231 1,774,844 3,838,652 5,010,652 5,102,036 3,469,530 3,766,719 4,269,761 1,012,710 1,071,161 1,206,056 11,230,076 11,991,627 12,425,840 1,715,947 1,733,018 2,373,530 10,297,261 9,841,425 11,882,873 1,383,633 1,245,474 1,413,087 1,705,962 1,458,518 1,218,428 1,427,553 1,333,793 999,763 688,969 763,001 807,419 1,504,621 1,505,282 1,517,604 4,966,860 4,867,842 4,936,297 713,459 677,821 851,489 7,596,629 7,433,677 7,581,457 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 353,072 358,757 362,725 1,103,099 921,868 986,678 268,718 251,385 291,173 162,543 141,291 129,051 3,636,780 3,603,471 3,725,944 705,093 494,233 411,301 2,252,650 2,093,271 1,955,077 373,635 375,283 458,400 139,884 132,403 132,418 170,864 316,021 149,908 195,268 193,120 208,836 193,958 167,237 146,585 1,070,819 1,079,372 1,034,549 151,100 148,009 163,104 1,285,705 1,419,641 1,424,057 1,488,436 1,489,474 1,412,119 2,735,553 4,088,784 4,115,358 3,200,812 3,515,334 3,978,588 850,167 929,870 1,077,005 7,593,296 8,388,156 8,699,896 1,010,854 1,238,785 1,962,229 8,044,611 7,748,154 9,927,796 1,009,998 870,191 954,687 1,566,078 1,326,115 1,086,010 1,256,689 1,017,772 849,855 493,701 569,881 598,584 1,310,663 1,338,045 1,371,019 3,896,041 3,788,470 3,901,748 562,359 529,812 688,385 6,310,924 6,014,036 6,157,400 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-21 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 3,150,189 3,123,998 3,233,851 8,149,456 9,447,892 9,873,155 5,834,208 7,106,366 6,380,788 1,793,142 1,768,525 1,996,434 28,474,614 28,624,167 30,436,562 5,054,318 5,236,788 5,653,480 19,308,756 18,988,031 19,106,566 3,418,036 3,324,870 3,406,762 1,407,273 1,473,087 1,605,326 1,483,478 1,712,622 1,811,258 2,252,665 2,236,038 2,378,112 1,626,408 1,615,486 1,592,278 7,396,374 7,279,249 7,415,919 1,982,389 2,139,898 2,504,267 12,838,084 13,071,878 13,523,282 3,183,081 3,110,460 3,298,706 7,479,872 8,645,420 9,474,081 5,488,507 6,764,844 5,917,534 1,645,621 1,604,296 1,752,222 26,893,321 27,494,541 29,505,403 4,779,758 4,819,203 4,743,382 19,524,364 19,275,488 19,024,040 3,297,655 3,339,827 3,250,192 1,478,875 1,678,050 1,825,431 1,529,963 1,926,182 1,979,175 2,122,046 2,136,858 2,510,278 1,479,194 1,545,385 1,501,582 6,786,967 7,269,548 7,220,369 2,040,692 2,103,945 2,315,354 11,637,914 12,895,766 12,628,301 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (22,500) (12,500) (12,500) (288,779) (565,903) (372,500) (30,000) (27,000) (134,664) (84,526) (97,077) (380,689) (334,766) (619,419) (333,227) (189,654) (186,654) (9,000) (1,000) (192,618) (125,000) (72,549) (30,000) (35,000) (20,000) (20,000) (25,357) (22,000) (23,000) (27,000) (42,719) (42,719) (57,722) (137,395) (117,272) (82,272) (23,492) (68,500) (30,340) (535,000) (475,000) (760,000) 1,543,828 1,488,436 1,489,474 2,354,748 3,852,715 4,088,784 2,885,111 3,200,812 3,515,334 837,310 850,167 929,870 6,392,691 7,593,296 8,388,156 1,069,521 1,010,854 1,238,785 8,260,219 8,044,611 7,748,154 1,082,235 1,009,998 870,191 1,667,680 1,566,078 1,326,115 1,323,174 1,256,689 1,017,772 385,082 493,701 569,881 1,206,168 1,310,663 1,338,045 3,424,029 3,896,041 3,788,470 644,154 562,359 529,812 5,645,000 6,310,924 6,014,036 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 5.22 5.15 4.89 3.48 5.44 5.17 12.91 14.98 14.66 6.23 7.58 9.35 3.09 3.33 3.33 2.43 3.51 5.77 4.57 4.70 6.08 3.70 3.32 3.08 12.20 11.02 9.20 8.35 4.22 6.67 3.53 3.95 3.87 7.76 9.00 10.35 4.64 4.51 4.77 4.72 4.58 5.22 5.91 5.24 5.32 1.06 0.98 1.06 0.93 0.01 5.30 1.23 1.00 0.99 1.01 5.15 6.43 7.04 10.72 3.90 11.19 4.88 5.78 7.06 1.08 2.51 1.02 11.08 15.62 15.96 1.31 6.09 6.47 13.56 8.61 15.63 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio (0.02) (0.02) 0.05 0.03 0.05 0.04 0.07 0.01 0.05 0.07 0.04 0.03 0.01 (0.01) 0.04 0.13 (0.01) (0.02) (0.02) (0.04) 0.02 (0.07) (0.16) (0.15) (0.04) (0.14) (0.09) 0.05 0.03 (0.07) 0.06 0.02 0.02 0.06 (0.01) 0.02 (0.04) (0.02) 0.06 0.05 (0.02) 0.01 (0.04) (0.05) 0.16 0.06 0.01 0.11 0.10 0.13 0.02 0.09 0.16 0.19 0.10 0.04 (0.05) 0.23 0.58 (0.03) (0.04) 0.28 (0.07) (0.14) 0.10 (0.06) (0.15) (0.18) (0.05) (0.19) (0.16) 0.28 0.15 0.05 0.09 0.02 0.02 0.14 (0.03) 0.03 (0.13) (0.06) 0.30 0.12 (0.05) 0.02 0.46 0.48 0.43 0.35 0.44 0.42 0.58 0.52 0.67 0.48 0.55 0.58 0.28 0.30 0.29 0.20 0.25 0.40 0.41 0.40 0.52 0.29 0.25 0.29 1.04 0.77 0.59 0.81 0.52 0.43 0.23 0.26 0.24 0.86 0.84 0.88 0.56 0.51 0.53 0.27 0.24 0.29 0.52 0.45 0.46 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 1 1 1 2 2 2 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-22 School District Fiscal Health Analysis Colorado School District Fiscal Health Data 2012 through 2014 GOV FUNDS COUNTY SCHOOL DISTRICT NAME YEAR ANNUAL DEBT GOV FUNDS GEN FUND TOTAL REVENUE TOTAL ASSETS PAYING DEBT AND DEFFERED SERVICE OUTFLOWS SERVICE Weld Greeley 6 School District Weld Johnstown-Milliken RE-5J School District Weld Adams Keenesburg RE-3J School District Weld Pawnee RE-12 School District Weld Platte Valley RE-7 School District Weld Logan Prairie RE-11J School District Weld Gilcrest RE-1 School District Weld Broomfield Weld County RE-8 School District Weld Windsor RE-4 School District Yuma Kit Carson Idalia RJ-3 School District Yuma Kit Carson Liberty J-4 School District Yuma Wray RD-2 School District Yuma Yuma 1 School District 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014 9,439,475 9,545,653 9,955,761 2,109,441 1,859,694 3,587,497 3,191,744 4,786,090 2,898,260 56,566 59,093 141,795 1,900,144 1,411,096 1,584,204 68,421 256,856 254,398 174,976 159,825 159,922 1,013,660 1,157,088 1,846,605 7,291,149 7,300,584 7,294,980 76,594 288,434 284,788 7,300 8,513 7,300 591,480 520,729 624,200 789,942 761,281 765,660 10,055,475 10,636,480 10,777,964 21,352,132 24,320,687 26,264,970 3,068,117 3,221,389 2,858,013 83,080 85,026 1,902,167 11,920,928 11,487,528 12,440,047 275,815 275,413 283,235 15,556,092 17,066,565 17,268,457 20,754,608 21,124,453 21,976,271 39,442,463 41,128,926 41,610,757 2,147,310 293,347 279,792 1,407,665 1,221,334 1,426,978 749,569 718,403 627,805 7,909,558 8,511,583 8,636,021 40,758,102 35,651,541 33,171,217 5,206,305 5,484,875 5,288,550 7,306,725 7,738,723 6,582,144 2,100,272 2,015,228 1,877,124 4,751,211 4,788,173 4,888,499 2,407,346 2,669,837 2,765,538 6,270,777 6,899,101 6,451,050 14,617,015 14,955,944 14,636,986 10,848,045 11,946,796 12,124,563 1,221,102 1,376,642 1,266,838 997,584 725,630 635,840 3,420,554 3,015,500 2,783,427 7,400,036 7,555,437 7,313,552 GEN FUND TOTAL FUND BALANCE LIABILITIES OF THE AND DEFFERED GENERAL FUND INFLOWS 11,260,736 11,900,988 12,381,097 1,888,937 2,157,815 1,948,749 2,450,508 2,054,455 1,781,703 149,781 140,446 156,832 1,053,141 1,069,251 1,165,606 237,657 322,101 207,584 1,505,874 895,490 829,123 1,882,708 2,207,333 2,225,716 6,258,900 6,547,848 6,837,078 180,702 231,590 224,066 154,610 135,989 136,282 621,941 651,721 554,978 763,625 710,912 1,028,258 29,497,366 23,750,553 20,790,120 3,317,368 3,327,060 3,339,801 4,856,217 5,684,268 4,800,441 1,950,491 1,874,782 1,720,292 3,698,070 3,718,922 3,722,893 2,169,689 2,347,736 2,557,954 4,764,903 6,003,611 5,621,927 12,734,307 12,748,611 12,411,270 4,589,145 5,398,948 5,287,485 1,040,400 1,145,052 1,042,772 842,974 589,641 499,558 2,798,613 2,363,779 2,228,449 6,636,411 6,844,525 6,285,294 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-23 School District Fiscal Health Analysis GEN FUND GEN FUND TOTAL TOTAL REVENUE EXPENDITURES 131,188,358 135,189,467 144,966,643 22,025,427 22,210,935 24,165,271 16,360,537 16,600,183 17,039,023 1,816,167 1,685,722 1,901,971 10,019,519 9,931,119 10,877,893 2,096,043 2,136,736 2,354,316 15,556,092 17,066,565 17,268,457 19,755,053 19,348,582 20,181,996 32,252,623 33,788,283 34,503,656 1,853,019 2,028,709 2,162,114 1,407,665 1,221,334 1,312,192 5,872,616 6,008,035 6,076,065 7,909,515 7,801,139 7,931,232 128,090,698 140,695,331 146,960,075 21,034,171 21,905,243 21,827,597 17,222,994 19,177,132 17,577,850 1,734,492 1,726,431 1,961,496 9,657,194 9,917,456 10,952,997 1,916,667 1,863,689 2,044,098 14,682,152 15,951,628 16,827,934 17,981,263 19,034,278 20,219,337 31,450,926 32,582,886 34,199,451 1,756,560 1,813,707 2,046,588 1,563,510 1,451,505 1,362,384 5,976,731 6,380,869 6,502,951 6,884,879 7,262,235 8,041,945 GEN FUND GEN FUND INTERFUND PRIOR YEAR TRANSFERS NET FUND BAL (1,303,214) (258,669) (967,000) (918,893) (296,000) (728,233) (1,900,000) (200,000) (345,000) (30,000) (35,000) (94,965) (85,000) (95,000) (100,000) (34,457) (980,300) (310,225) (300,000) (300,000) (441,100) (395,594) (415,668) (92,474) (110,350) (217,806) (16,835) (23,162) (39,891) (72,000) (35,000) (669,832) (330,790) (448,518) 27,509,020 29,497,366 23,750,553 3,245,005 3,317,368 3,327,060 7,618,674 4,856,217 5,684,268 1,898,816 1,950,491 1,874,782 3,304,947 3,698,070 3,718,922 2,075,313 2,169,689 2,347,736 3,748,145 4,764,903 6,003,611 11,270,742 12,734,307 12,748,611 4,228,548 4,589,145 5,398,948 1,036,415 1,040,400 1,145,052 1,015,654 842,974 589,641 2,902,728 2,798,613 2,363,779 6,281,607 6,636,411 6,844,525 Ratio 1 Ratio 2 ASR DBR Ratio Ratio 3.62 3.00 2.68 2.76 2.54 2.71 2.98 3.77 3.69 14.02 14.35 11.97 4.51 4.48 4.19 10.13 8.29 13.32 4.16 7.70 7.78 7.76 6.78 6.58 1.73 1.82 1.77 6.76 5.94 5.65 6.45 5.34 4.67 5.50 4.63 5.02 9.69 10.63 7.11 1.07 1.11 1.08 10.12 13.08 7.32 0.96 0.67 0.99 1.47 1.44 13.41 6.27 8.14 7.85 4.03 1.07 1.11 88.90 106.78 107.98 20.47 18.26 11.90 5.41 5.63 5.70 28.03 1.02 0.98 192.83 143.47 195.48 1.27 1.38 1.01 10.01 11.18 11.28 Ratio 3 Ratio 4 Ratio 5 ORR OMR CFBR Ratio Ratio Ratio 0.01 (0.04) (0.02) 0.07 (0.17) (0.17) (0.05) 0.03 (0.04) (0.08) 0.04 (0.01) 0.05 0.08 0.09 0.06 0.06 (0.03) 0.07 (0.02) 0.01 0.02 0.05 (0.05) (0.12) (0.21) (0.07) (0.02) (0.07) (0.08) 0.04 0.03 (0.07) 0.07 (0.19) (0.12) 0.02 (0.36) 0.17 (0.16) 0.03 (0.04) (0.08) 0.12 0.01 0.05 0.08 0.09 0.27 0.26 (0.06) 0.13 (0.03) 0.09 0.18 (0.02) 0.10 (0.09) (0.17) (0.30) (0.15) (0.04) (0.16) (0.06) 0.06 0.03 (0.08) 0.23 0.17 0.14 0.15 0.15 0.15 0.25 0.29 0.27 1.11 1.06 0.84 0.38 0.38 0.34 1.08 1.20 1.19 0.32 0.38 0.32 0.70 0.66 0.60 0.14 0.16 0.15 0.56 0.60 0.46 0.53 0.40 0.36 0.47 0.37 0.34 0.88 0.90 0.74 # of Missed Colorado School District Fiscal Health Data 2012 through 2014 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 SOURCE: Analysis performed by the Office of the State Auditor, Local Government Division using data from audited financial statements submitted by school districts. E-24 GLOSSARY TERMS BEST Act Building Excellent Schools Today Act, Section 22-43.7-102, et seq., C.R.S. Department Colorado Department of Education. ABBREVIATIONS CDE Colorado Department of Education. K-12 Kindergarten through twelfth grade. CSI Charter School Institute. OSA Office of the State Auditor. TABOR Taxpayer’s Bill of Rights, Article X, Section 20 of the Colorado Constitution. ASR Asset Sufficiency Ratio. DBR Debt Burden Ratio. ORR Operating Reserve Ratio. F-1 OMR CFBR Operating Margin Ratio. Change in Fund Balance Ratio. F-Z