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Home My WebLink AboutAtlanta Independent School System - Public Financial ReportAT L A N T A I N D E P E N D E N T SC H O O L S Y S T E M Popular Comprehensive Financial Report for the Fiscal Year Ended June 30, 2021 Atlanta, Georgia Introduction i PAFR Award for Outstanding Achievement ii Introductory Section 1-6 Financial Section 7-15 Glossary of Financial Terminology 15 TABLE OF CONTENTS March 14,2022 Dear Colleagues and Friends: We are pleased to present the Atlanta Public Schools Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. This report is designed to make the financial operations of our school district more understandable in a printed format. The PAFR summarizes the financial activities and operating results reported in the district’s audited Annual Comprehensive Financial Report (ACFR). The PAFR is unaudited and presented on a non-GAAP (Generally Accepted Accounting Principles) basis, which primarily deals with full disclosure and segregated funds. The state- ments presented on pages two and three are the district-wide financial statements. These state- ments incorporate all of the district’s financial activities into two statements. For more detailed financial information, a copy of the ACFR and PAFR is available at https://www.atlantapublicschools.us/Page/59285 The PAFR should help community members understand how their tax dollars are being utilized to educate our students. Questions and comments regarding this report are encouraged and may be directed to the Finance Department at (404) 802-2400. Respectfully, Lisa Bracken Chief Financial Officer i Award for Outstanding Achievement in Popular Annual Financial Reporting The Government Finance Officers Associa- tion of the United States and Canada (GFOA) has given an award for Outstanding Achievement in Popular Annual Financial Reporting to Atlanta Independent School System for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a PAFR, whose contents conform to program standards of creativity, presentation, under- standability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the PAFR requirements, and we are submitting it to GFOA. Atlanta Independent School System Annual Comprehensive Financial Reports for the years ended 2017-2020, from which the information on pages two through nine has been drawn, were awarded the Certificate of Achievement for Excellence in Financial Reporting by GFOA. The Certificate is the highest form of recogni-tion for excellence in state and local government financial reporting. In order to be awarded the Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report (ACFR), whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our ACFR continues to conform to the Certificate of Achievement program requirements and we are submitting our ACFR for the current year to the GFOA. ii INTRODUCTORYSECTION Fi s c a l Y e a r 2 0 2 1 Dear Students and Families of Atlanta Public Schools, We move into the 2021-2022 school year with a renewed excitement, commitment, and hope! Atlanta Public Schools (APS) continues to be a student-focused district where students love to learn, educators inspire, families engage and the community trusts the system. Our efforts to reimagine APS continue and it will take each of us – students, parents, educators, support staff, and administrators – to do all we can to ensure the success of every student. Education is the greatest equalizer. I believe strongly in the inner strength, power, and talent of our scholars. Look at what they were able to accomplish despite the distractions of a global crisis. Our students are resilient and inspiring. Through partnerships, we can maximize our students’ talents and provide opportunities so they may pursue whatever they choose for life. I am humbled and privileged to be able to put these beliefs and that personal mission into motion in our schools. Scholars, know that this Superintendent serves at the pleasure of a Board that is committed to your success, a community that is eager to enjoy the promise of your contributions, but most importantly, I serve at the pleasure of you. You are the reason this work is so important. I and every APS employee are committed to providing you with equitable opportunities to be the best that you can be. We come with a renewed mission focused on equity – treating everyone in our community – justly and fairly. Everything we do in our district whether it involves academics, operations, our district culture, and our resources must be considered through the lens of equity. That is why equity stands at the core of the district’s 2020- 2025 strategic plan and will guide all of our work as a school system. We do this with the hope that you will exceed our accomplishments and be the better leaders of tomorrow. As APS families, you play a critical role in supporting our efforts, and your engagement matters to the district and your child. As support, we have provided you with this 2021-2022 APS Student Handbook to serve as your comprehensive guide to student and parental rights, responsibilities, and expectations for the upcoming school year. Be sure to read this document carefully and sign the electronic acknowledgement located in the Infinite Campus Portal within five days to acknowledge receipt of this handbook. Please inform your school if a paper copy is needed. Thank you for your ongoing partnership. Welcome back, and have a great school year! Yours in Service, Dr. Lisa N. Herring, Superintendent, Atlanta Public Schools About APS Page 1 Atlanta Public Schools | 2020-2025 Strategic Plan ABOUTAPS Atlanta Public Schools is one of the largest districts in Georgia, serving more than 52,000 students throughout Atlanta. APS is organized into nine high school feeder patterns. The cluster model allows all students from the cluster elementary schools to matriculate to the same middle and high school. The cluster model ensures continuity for students from kindergarten through grade 12 and enables all students to have access to music, arts, foreign language and core academic programs. The cluster model also provides opportunities for curriculum alignment, college and career programming (i.e. Science, Technology, Engineering, and Mathematics (STEM), Science, Technology, Engineering, Art, and Mathematics (STEAM), International Baccalaureate (IB) and College & Career Prep) as well as strategies focused on student achievement. n 74.4% Students qualify for free or reduced lunch 16 GHSA Middle + High School Athletic Programs 21,215 Bus miles traveled per day293 Total bus routes32,069 Students transported St u d e n t Population 72.9% African American15.9% Caucasian7.6% Hispanic2.4% Multi-racial1.3% Other 2,506 Class of 2019 graduatesWashington High School, Class of 2019 5,294 Total teachers3,217 Traditional2,077 Non-traditional South Atlanta High School Data as of January 31, 2020 Sm i t h E l e m e n t a r y S c h o o l 52,416Students2020 school year projection 91 Schools+ Programs 9 Clusters Page 2 % # # # # X # # # # # # # # " # X # # # # X " " " X " % % ! ! ! # # # # # % # # # # # # # # # # # # # ' " X ^ ! ! ! ' # ! # % % # % % ^ ^ % % ^ # % ^ ! % % % " # " % % " " # # # " # % # X ! £¤400 §¨¦85 §¨¦75§¨¦85 §¨¦75 §¨¦20 §¨¦285 §¨¦20 §¨¦75 §¨¦285 §¨¦75 §¨¦75 §¨¦285 §¨¦20 §¨¦675 §¨¦285 §¨¦285 KindeziWest Lake Beecher Hills(PermanentLocation) Benteen Finch Garden Hills Gideons(PermanentLocation) HeritageAcademy Hope-Hill Humphries Jackson Parkside Peyton Forest Scott Slater Smith SmithIntermediate Harper-Archer Price Washington BoltonAcademy Boyd Brandon Cascade Deerwood Dobbs Dunbar Fickett Lin Morningside West Manor Young Crim Grady CorettaScott King SpringdalePark BrandonPrimary JacksonPrimary Hillside Kindezi Old4th Ward ContinentalColony Westside Atlanta(PermanentLocation) Bunche Rivers Sylvan Tuskegee AirmenGlobal Academy WestsideAtlanta(Relocation Site) Beecher Hills(RelocationSite) Gideons(RelocationSite) KIPP STRIVE Primary KIPP Vision Primary KIPP WAYS Primary Barack andMichelleObama Academy BEST KIPP WAYS KIPP STRIVE KIPP Vision KIPP AtlantaCollegiate West End CarverEarlyCollege Sutton SixthGrade Campus Stanton, F.L. Thomasville Inman Long Sutton Drew Charter South Atlanta Therrell Burgess-Peterson ClevelandAvenue Jones Kimberly Toomer Usher North Atlanta WesleyInternationalAcademy Forrest Hill North Metro AtlantaClassicalAcademy Brown Woodson ParkAcademy Maynard Jackson Jr Perkerson Miles Carver Douglass Mays King Michael R. HollisInnovation Academy John LewisInvictusAcademy MorningsideK Center Hutchinson Atlanta Neighborhood Charter School (Primary Grades) Centennial Academy Atlanta Neighborhood Charter School (Middle Grades) Atlanta Public Schools 0 2 41 Miles Ü North AtlantaCluster DouglassCluster GradyCluster CarverCluster TherrellCluster South AtlantaCluster Mays Cluster JacksonCluster WashingtonCluster #Elementary "Middle !High 'Single Gender Academy %Charter X Partner School ^Non-Traditional Elementary School Zone Page 3 Atlanta Independent School System Demographic Statistics from City of Atlanta Last Ten Fiscal Years Demographic and Economic Information This table presents demographic and economic information to assist users in understanding the socioeconomic environment within which the School System operates. This information is from City of Atlanta. Personal Income Per Capita Fiscal Year (thousands of Personal Median Unemployment Ended Population dollars) Income 1 Age Rate 1 Per Capita Personal Income is the average income earned per person in the City of Atlanta. Sources: Statistical section of the City of Atlanta, Georgia 2021 Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021. Enrollment data from GA Department of Education (1) Statistical Data from the City of Atlanta is one year in arrears. June 30, 2011 432,092 214,002 39,826 33 9.9% June 30, 2012 444,002 222,204 40,738 32.2 8.8% June 30, 2013 448,312 228,134 41,307 33.2 7.8% June 30, 2014 456,143 228,134 41,307 33.4 6.8% June 30, 2015 463,878 244,065 43,856 33.3 5.3% June 30, 2016 472,522 261,782 45,934 33 4.6% June 30, 2017 486,290 274,129 47,348 33.5 3.8% June 30, 2018 498,044 295,295 50,269 33.5 3.5% June 30, 2019 506,811 312,213 52,473 33.2 8.5% June 30, 2020 506,811 328,450 54,557 36.8 3.2% Page 4 Graduation Rate APS achieved an 83.1 percent graduation rate for cohort 2021, according to graduation data released today by the Georgia Department of Education. By achieving its all-time high graduation rate, APS has also narrowed its gap with the state rate of – 83.7% – by 2.9 percentage points to a difference of 0.6 percentage points. This is the first time that APS has been this close to the state graduation rate. A total of 2,557 of students graduated on-time from APS in 2021. The percentage of students who graduated in 2021 is higher than any other year since 2012, when the state adopted the cohort graduation rate as required by federal law. While the overall number of graduates is 13 fewer than cohort 2020, the 2021 cohort contained 126 fewer students than the 2020 cohort. Page 5 District Representative Schools Leslie Grant District 1 Elementary Schools: Barack & Michelle Obama Academy, Benteen, Dobbs, Hope-Hill, Mary Lin, Parkside, Slater, Thomasville Heights Middle Schools: King, Price High Schools: Carver, Carver Early College, Grady, Jackson Charter Schools: Atlanta Neighborhood Charter School (K-8), KIPP Vision Academy (K-8) The Kindezi School - Old Fourth Ward (K-8) Wesley International Academy (K-8) Aretta Baldon District 2 Elementary Schools: Dunbar, Finch, Hollis Innovation Academy (K-8), Jones, Stanton Middle Schools: Brown High Schools: Douglass, North Metro, Washington Charter Schools: Centennial Academy (K-8), KIPP Strive Academy (K-8), KIPP WAYS Academy (K-8), KIPP Atlanta Collegiate (9-12) Michelle D. Olympiadis District 3 Elementary Schools: Burgess-Peterson Academy, Morningside, Springdale Park, Toomer Middle Schools: Inman High Schools: Adult Literacy Program, Alonzo Crim Open Campus, Grady, Phoenix Academy Charter Schools: Drew Charter (K-12) Residential Flexible Learning Program: Hillside Conant (Grades 2-12) Nancy M. Meister District 4 Elementary Schools: Brandon, Brandon Primary, E. Rivers, Garden Hills, Jackson, Jackson Primary, Smith, Smith Primary Middle Schools: Sutton High Schools: North Atlanta Charter Schools: Atlanta Classical Academy Erika Y. Mitchell District 5 Elementary Schools: Beecher Hills, Bolton Academy, Boyd, Peyton Forest, Scott, Tuskegee Airmen Global Academy, Usher-Collier, West Manor, Woodson Park Academy, Harper-Archer Middle Schools: John Lewis Invictus Academy, Young High Schools: Mays Single Gender Schools: B.E.S.T. Academy (6-12), Coretta Scott King Young Women’s Leadership Academy (6-12) Charter Schools: Kindezi West, Westside Atlanta Charter s District 6 Elementary Schools: Cascade, Cleveland Avenue, Continental Colony, Deerwood Academy, Fickett, Heritage Academy, Humphries, Hutchinson, Kimberly, Kindezi at Gideons, Perkerson Middle Schools: Bunche, Forrest Hill Academy, Long, Sylvan Hills High Schools: Forrest Hill Academy, South Atlanta, Therrell Kandis Wood Jackson At-Large, Seat 7 Districts 1 & 2 Cynthia Briscoe Brown At-Large, Seat 8 Districts 3 & 4 Jason F. Esteves At-Large, Seat 9 Districts 5 & 6 (Rev 01/27/20) 130 Trinity Avenue, SW | Atlanta, GA 30303 | 404-802-2255 | www.atlantapublicschools.us Eshè P. Collins, Vice Chair District 6 2018-2022 At-Large Members Jason Esteves, Chair Page 6 FINANCIALSECTION Fi s c a l Y e a r 2 0 2 1 Summarized Financial Reports Readers of the Financial Position Statement (Benefits over Detriments) and Financial Activity Statement (Revenue over Expense) should keep in mind that the numbers in both reports are taken from the district’s ACFR, but are presented in a non-GAAP format. Governmental-type activities consist of programs and services that include instruction, pupil services, improvement of instruction, educational media, federal grant administration, general administration, school administration, business services, maintenance/operation of facilities, student transportation, central support and capital construction. The following financial highlights present district-wide financial information for governmental activities. Financial Highlights Overall, net position in fiscal year 2021 increased by 20.4% over fiscal year 2020. This was primarily due to an in-crease in tax revenues. The key financial highlights for fiscal year 2021 as represented are the following: (See page 4.) •Total net position for the School System increased from $395.05 million in fiscal year 20120 to $475.68 million in fiscal year 2021, an increase of approximately $80.63 million or 20.4% due to an increase in revenues. •Total revenues increased from approximately $1065.00 million in fiscal year 2020 to approximately $1107.30 mil- lion in fiscal year 2021, an increase of approximately $42.30 million or 3.97%. •Total expenses increased approximately $69.84 million or 7.3% from approximately $957.54 million in fiscal year 2020 to approximately $1,027.38 million in fiscal year 2021. Page 7 Benefits over Detriments (District-Wide) The Financial Position Statement reports the benefits (assets) available to provide services and the detriments (liabilities) for which the district is obligated to pay in the future (shown in mil- lions). The difference between benefits and detriments equals the net worth of the district. A glossary of the financial terminology is provided on page 14. Restated Financial Benefits 2021 2020 2019 Current and other assets $ 390.14 $ 308.00 $ 292.19 Net capital assets and net pension asset 1,477.81 1,454.57 1,422.68 Total benefits $ 1,867.95 $ 1,762.57 $ 1,714.87 Deferred outflows of resources $ 317.65 $ 239.20 $ 183.74 Financial Detriments Long-term debt outstanding $ 1,488.71 $ 1,363.33 $ 1,329.41 Other liabilities 106.17 94.54 108.52 Total detriments $ 1,594.88 $ 1,457.87 $ 1,437.93 Deferred inflows of resources $ 131.97 $ 148.85 $ 173.09 Net position Net investment in capital assets $ 1,378.17 $ 1,363.41 $ 1,326.32 Restricted for athletics - 0.09 0.37 Restricted for debt services 0.81 1.81 2.79 Restricted for capital projects 88.87 77.90 95.28 Restricted for school nutrition program 8.86 8.54 10.64 Unrestricted (1,017.96) (1,056.70) (1,147.81) Total net position $ 458.75 $ 395.05 $ 287.59 *Amounts shown in millions Page 8 Resources over Services (District-Wide) The Financial Activity Statement provides summary of the resources (revenues) and services (expenses) of the district (shown in millions). A glossary of financial terminology is provided on page 14. Restated 2021 2020 2019 Resources Taken In Local taxes $ 693.18 $ 647.29 $ 599.88 Sales taxes income 106.43 100.11 105.28 State revenues 193.68 222.79 198.77 Federal revenues 96.88 74.15 78.28 Investment income 0.15 3.03 3.13 Facility rental fees 0.77 0.79 1.26 Tuition charges 0.01 0.10 0.05 Charges for services 0.78 2.91 5.30 Other 15.37 13.81 17.42 Gains on the sale of capital assets 0.05 0.02 0.03 Special Item -Impairment loss - - - Special Item -Principal Forgiveness of Debt - - - Total Revenues & Resources $ 1,107.30 $ 1,065.00 $ 1,009.41 Services Provided Instruction $ 664.57 $ 588.12 $ 528.38 Support services: Pupil services 59.57 52.07 51.63 Improvement of instructional services 41.04 44.89 44.95 Educational media 5.68 6.17 6.48 Federal grant administration 2.43 2.33 2.01 General administration 14.86 16.27 12.20 School administration 42.73 40.44 39.22 Business administration 8.39 8.03 7.24 Maintenance and operations 110.60 108.53 106.75 Student transportation 32.55 40.15 32.62 Central support 24.43 19.40 20.61 Food services 1.23 24.35 26.53 Other support services 14.63 2.42 2.22 Interest expense 4.67 4.37 4.56 Total Expenses & Service $ 1,027.38 $ 957.54 $ 885.39 Revenues & Resources Over(Under) Expenses & Services 79.92 $ 107.45 $ 124.02 *Amounts shown in millions Page 9 Our Resources: Where Does the Money Come From? Our Services: Where Does the Money Go? Page 10 Local Taxes: The Atlanta Public Schools (APS) district is financed through a combination of local, state and federal sources. During fiscal year 2021, Atlanta Public Schools revenue totaled $1,107.30 million. APS received 62.60% of its revenue from local taxes. Property taxes provide a majority of the local revenue to operate and maintain our schools. The graph to the right represents the amount of local SPLOST (Special Purpose Local Option Sales Tax): On May 24, 2016, the SPLOST V referendum was approved. It is estimat- ed that SPLOST V will generate approxi- mately $525 million for APS that will fund numerous Capital Improvement projects and liquidate debt for the Certificates of Participation issued in 2011. State Funding: The chart to the right displays the District’s Governmental Funds received from the State of Georgia. Funds re- ceived from the state are to ensure that all children in the state receive a quality basic educational experience. SOURCES OF FUNDING: Where Does the Money Come From? (Governmental Funds Only) Page 11 Outstanding Debt at Year End: What We Owe? The chart below captures the district’s long-term debt obligations. Over the years, the City of Atlanta has is- sued various general obligation bonds and general obligation refunding bonds on behalf of APS. In October 2006, Education Resource Services (ERS) issued certificates of participation (COPS) on behalf of the school system to finance renovations and improvements to the Instructional Service Center. COPS is different from a general obligation bond because in COPS, only the building associated with the project is pledged as collat- eral, not the full taxing authority of the government. In June 2011, ERS issued COPS to finance the construc- tion and renovation of North Atlanta High School. Outstanding Debt 2021 2020 2019 Long-term debt Capital leases $16,926,272 $ -$ - Intergovernmental agreement- City of Atlanta 1,411,150 2,332,375 3,196,999 ERS, Inc. (COPS, Series 2006/2007) 925,000 1,815,000 2,670,000 ERS, Inc. (COPS, Series 2011A) 72,460,000 72,460,000 72,460,000 Total long-term debt $91,722,422 $ 76,607,375 $ 78,326,999 Page 12 Investments: How Safe is our Money? Investors who purchase municipal bonds use debt ratings as an indicator of the financial stability of an organization and consequently the safety and security of the debt sold by that organization. In general, higher credit ratings often result in lower borrowing costs via reduced interest rates paid on municipal bonds. Strong ratings also promote a wider market by attracting more buyers of municipal bonds. There are three major rating agencies that assign ratings to municipal debt Standard & Poor, Moody’s Investors Services and Fitch Ratings . As of June 30, 2021, APS’ GA Fund 1 investments were rated AAAf and Aa2 by Standard and Poor ‘s and Moody’s Investor Service, respectively. As of June 30, 2021, the district had $214,431,654 in investments and $28,224,295 in bonds. Investments subject to credit quality risk are reflected below. Credit Risk Moody's C ol u m n 1 Fitch C ol u m n 2 S&P Investment grade Highest grade credit Aaa AAA AAA Very high grade credit AA1, Aa2, Aa3 AA+, AA, AA- AA+, AA, AA- High grade credit A1, A2, A3 A+, A, A- A+, A, A- Good credit grade Baa1, Baa2, Baa3, Baa4 BBB+, BBB, BBB- BBB+, BBB, BBB- Speculative grade credit Ba1, Ba2, Ba3 BB+, BB, BB- BB+, BB, BB- Very speculative credit B1, B2, B3 B+, B, B- B+, B, B- Substantial risks - In de-fault Caa1, Caa2, Caa3, Ca CCC, CC, C, RD, D CCC+, CCC, CCC-, CC, C, D Quality Rating by Agency Issuer Investment Type Amount Percent S&P Moody's US MONEY MARKET- Georgia Fund 1 Money Market Funds $ 214,431,654 86.4% AAAf Aa2 U.S. Treasury Bond U.S. Treasury Bond $ 28,224,295 11.6% AA- Aa3 Page 13 Student Enrollment Student enrollment (including charter schools) in the district has increased over the last 10 years due in part to demographic changes. Those changes led to school closings in some cases and new schools or expansions in other areas. These changes constitute a high mobility rate for students in our district. Nearly one-third of APS students relocated within and outside the district during the shifts. The district’s budget provides funding for academic and special services that support our diverse student enrollment. APS students represent several ethnic, economic and special needs groups. Source: GA Department of Education, Enrollment by Grade report, based on the October count of each fiscal year. ACFR Statistical Schedule 21 Page 14 Glossary of Financial Terminology Instruction is the largest expenditure category and relates directly to the classroom instruction of children, including teacher salaries. Pupil Services comprise all guidance, counseling, testing, attendance, social work, and health ser- vices. Improvement of Instructional Services consists of activities designed primarily for assisting instructional staff in planning, developing and evaluating the process of providing challenging learn- ing experiences for students. Educational Media Services costs are concerned with directing, managing, and operating educa- tional media centers; included are school libraries and educational television. Federal Grant Administration consists of activities concerned with the demands of the Federal Programs Grant Management. General & School Administration costs represent the Atlanta Board of Education’s operation of the District. Also included in this area are administrative support personnel, deputy, associate, or assistant superintendent, principals, assistant principals, and clerical staff. Business Administration expenditures include business services such as budgeting and report- ing, accounting, payroll, accounts payable, auditing, warehousing, purchasing, and office support. Maintenance and Plant Operation expenditures relate to the safe and efficient environment of the school, including building maintenance, energy, grounds and custodial services. Student Transportation expenditures relate to providing transportation to students who live in the APS district. Central Support costs include personnel services, information technology maintenance staff and computer network maintenance contracts, and risk management. Other Support & Nutrition includes the preparation and serving of regular and incidental meals or snacks in connection with school activities. Capital Assets are assets used in operations with an initial useful life extending beyond one re- porting period. Capital Outlays includes acquisitions of land and buildings, renovating buildings, and construction of buildings. Debt Service includes payments of principal and interest on capital leases and long-term debt. Net Investment in Capital Assets: Total capital assets, less accumulated depreciation, less debt directly related to capital assets (i.e. bond issues or donations for capital assets). Restricted: Resources where use is restricted externally for specific purposes. Unrestricted: Assets with no external restriction as to use or purpose. They can be employed for any purpose designated by the governing board. Certificates of Participation (COPS): Tax-exempt bonds that are issued by state entities usually secured with revenue from an equipment or facility lease. College and Career Ready Performance Index (CCRPI): A comprehensive school improvement, accountability , and communication platform for all educational stakeholders that will promote college and career readiness for all Georgia public schools students. Page 15