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Home My WebLink AboutFarmington Municipal School District No. 5 - Public Financial Report ` � � `� / � / � # � � / . r � to exceUence in every pursuit � � � � � -� � ., / � � _ � _ _ V-,-,--,-,_�,- � _ ,� � `, .� MUNICIPAL SCHOOLS ' � � � � �� ANNUAL COMPREHENSIVE . � FINANCIAL REPORT � � FOR THE YEAR ENDING - J u n e 30, 2022 ' FARMINGTON MUNICIPAL SCHOOL DISTRICT, NO. 5 FMS Business and Finance Office � 3401 E. 30th Street, Su ite A / Farmington, NM 87402 district.fms.kl2.nm.us , ' / � . THIS PAGE INTENTIONALLY LEFT BLANK -2- FARMINGTON MUNICIPAL SCHOOL DISTRICT, NO. 5 LIST OF PRINCIPAL OFFICIALS STEPHANIE THOMPSON SCHOOL BOARD PRESIDENT CODY DIEHL SUPERINTENDENT KEITH CORLEY SCHOOL BOARD VICE PRESIDENT JOAN VALLEE SCHOOL BOARD SECRETARY KYLE RHODES SCHOOL BOARD DEPUTY SECRETARY ANDRA STRADLING SCHOOL BOARD MEMBER TED LASIEWICZ CHIEF OF OPERATIONS NATHAN PIERANTONI EXECUTIVE DIRECTOR OF SUPPORT SERVICES CHRIS PASH EXECUTIVE DIRECTOR OF HUMAN RESOURCES BOBBI NEWLAND CHIEF FINANCIAL OFFICER NICOLE LAMBSON EXECUTIVE DIRECTOR OF CURRICULUM AND INSTRUCTION FARMINGTON MUNICIPAL SCHOOL DISTRICT, NO. 5 3401 E. 30th Street, Suite A Farmington, NM 87402 d istrict.fms.kl2.n m.us -3 - THIS PAGE INTENTIONALLY LEFT BLANK -4- State of New Mexico Farmington Municipal School District No. 5 Annual Comprehensive Financial Report For the Year Ended June 30, 2022 Prepared by Bobbi Newland, Chief Financial Officer -5 - THIS PAGE INTENTIONALLY LEFT BLANK -6- Introductory Section Farmington Municipal School District No. 5 -7- THIS PAGE INTENTIONALLY LEFT BLANK -8- State of New Mexico Farmington Municipal School District No. 5 Table of Contents June 30, 2022 INTRODUCTORY SECTION Table of Contents 9-13 Official Roster 14 Organizational Chart 15 Government Finance Officers Association Award 16 Transmittal Letter 17-23 FINANCIAL SECTION Independent Auditors' Report 25-28 Management's Discussion and Analysis 29-38 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 40-41 Statement of Activities 42-43 Fund Financial Statements Balance Sheet-Governmental Funds 44 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 45 Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds 46 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 47 Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget (Non-GAAP Budgetary Basis) and Actual General Fund (11000, 13000) 48 CARES Act, ESSER II Special Revenue Fund (24308) 49 Statement of Fiduciary Net Position - Fiduciary Funds 50 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 51 Notes to Financial Statements 52-104 REQUIRED SUPPLEMENTARY INFORMATION Educational Retirement Board (ERB) Pension Plan Schedule of Proportionate Share of the Net Pension Liability 106-107 Schedule of Contributions 108-109 New Mexico Retiree Health Care Authority (NMRHCA) Plan Schedule of Proportionate Share of the Net OPEB Liability 110-111 Schedule of Contributions 112-113 Notes to Required Supplementary Information 114 -9- State of New Mexico Farmington Municipal School District No. 5 Table of Contents June 30, 2022 SUPPLEMENTARY INFORMATION Nonmajor Governmental Fund Descriptions 116-123 Combining and Individual Fund Statements and Schedules Combining Balance Sheet- Nonmajor Governmental Funds 124-137 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Nonmajor Governmental Funds 138-151 Combining Balance Sheet-General Fund 152 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- General Fund 153 Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget (Non-GAAP Budgetary Basis) and Actual Operating Fund (11000) 154 Pupil Transportation Fund (13000) 155 Food Services Special Revenue Fund (21000) 156 Athletic Special Revenue Fund (22000) 157 Non-Instructional Support Special Revenue Fund (23000) 158 Title I - ESEA Special Revenue Fund (24101) 159 Javits Gifted and Talented Special Revenue Fund (24102) 160 Entitlement IDEA-B Special Revenue Fund (24106) 161 Preschool IDEA-B Special Revenue Fund (24109) 162 Education of Homeless Special Revenue Fund (24113) 163 IDEA-B Private Schools Share Special Revenue Fund (24115) 164 Fresh Fruits and Vegetables Special Revenue Fund (24118) 165 21st Century Community Learning Centers Special Revenue Fund (24119) 166 Title I - 1003g Special Revenue Fund (24124) 167 English Language Acquisition Special Revenue Fund (24153) 168 Teacher/Principal Training& Recruiting Special Revenue Fund (24154) 169 Carl D Perkins Sepcial Projects-Current Special Revenue Fund (24171) 170 Carl D Perkins Secondary- Current Special Revenue Fund (24174) 171 Carl D Perkins Secondary- PY Unliq. Obligations Special Revenue Fund (24175) 172 Carl D Perkins Secondary- Redistribution Special Revenue Fund (24176) 173 AMP Advancing Measurement at PED Special Revenue Fund (24188) 174 Student Supp Academic Achievement Title IV Special Revenue Fund (24189) 175 Title I -Comprehensive Support and Improvement (CSI) Special Revenue Fund (24190) 176 Title I - HS Redesign Special Revenue Fund (24191) 177 - 10- State of New Mexico Farmington Municipal School District No. 5 Table of Contents June 30, 2022 SUPPLEMENTARY INFORMATION (Continued) ARRA- IDEA-B CEIS Special Revenue Fund (24212) 178 CARES Act, ESSER Special Revenue Fund (24301) 179 CARES Act, GEER Special Revenue Fund (24305) 180 CARES Act, ESSER Social Emotional Learingin Special Revenue Fund (24309) 181 CRRSA-SEA Reserve/Retention Stipends Special Revenue Fund (24312) 182 CARES Act, ESSER II -Air Quality Special Revenue Fund (24316) 183 ARP Act, ESSER II Special Revenue Fund (24330) 184 ARP Act, ESSER III Homeless Children and Youth Special Revenue Fund (24350) 185 ARP II - Emergency Homeless Children and Youth Special Revenue Fund (24355) 186 Johnson O'Malley Special Revenue Fund (25131) 187 Impact Aid Special Education Special Revenue Fund (25145) 188 Impact Aid Indian Education Special Revenue Fund (25147) 189 Title XIX Medicaid 3/21 Years Special Revenue Fund (25153) 190 Indian ED Formula Grant Special Revenue Fund (25184) 191 Mentoring For Safe Schools Special Revenue Fund (25187) 192 Native American Program Special Revenue Fund (25248) 193 Kellogg Fund/Kellogg Foundation Special Revenue Fund (26121) 194 2009 Dual Credit Instructional Materials/HB 2 Special Revenue Fund (27103) 195 27107 GOB Library Special Revenue Fund (27107) 196 Instructional Materials-Special Appropriation Special Revenue Fund (27109) 197 New Mexico Reads To Lead K-3 Special Revenue Fund (27114) 198 PreK Initiative Special Revenue Fund (27149) 199 Indian Education Act Special Revenue Fund (27150) 200 Breakfast For Elementary Students Special Revenue Fund (27155) 201 Libraries GO Bond 2006 Special Revenue Fund (27170) 202 School Buses Special Revenue Fund (27178) 203 NM Grown FVV Special Revenue Fund (27183) 204 Open Sci Ed Expansion Initiative Special Revenue Fund (27202) 205 - 11 - State of New Mexico Farmington Municipal School District No. 5 Table of Contents June 30, 2022 SUPPLEMENTARY INFORMATION (Continued) Public School Bus Cameras Special Revenue Fund (27405) 206 Family Income Index Special Revenue Fund (27407) 207 Career Technical Education Program (Pilot) Special Revenue Fund (27502) 208 Youth Conservation Corp NMEMNR Special Revenue Fund (28133) 209 GEAR-UP CHE Special Revenue Fund (28178) 210 NM Schools Covid-19 Testing Program DOH Special Revenue Fund (28211) 211 Westmeath Foundation Special Revenue Fund (29102) 212 Bond Building Capital Projects Fund (31100) 213 Special Capital Outlay- Local Capital Projects Fund (31300) 214 Special Capital Outlay-State Capital Projects Fund (31400) 215 Capital Improvements HB-33 Capital Projects Fund (31600) 216 Capital Improvements SB-9-State Capital Projects Fund (31700) 217 Capital Improvements SB-9- Local Capital Projects Fund (31701) 218 SB-9 -State Match Cash Capital Projects Fund (31703) 219 Ed.Technology Equipment Act Capital Projects Fund (31900) 220 Debt Service Fund (41000) 221 Ed.Tech Debt Service Fund (43000) 223 Combining Statement of Fiduciary Net Position - Fiduciary Funds 224 Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds 225 SUPPORTING SCHEDULES Schedule of Deposit and Investment Accounts 228-229 Cash Reconciliation 230-235 Schedule of Collateral Pledged by Depository for Public Funds 236 STATISTICAL SECTION Financial Trends Net Position by Component 239 Expenses, Program Revenues, and Net (Expense)/Revenue 240-241 General Revenues and Total Changes in Net Position 242 Fund Balances of Governmental Funds 243 Changes in Fund Balances of Governmental Funds 244-245 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 247 Computation of Direct and Overlapping General Obligation Millage Rates 248-249 Computation of Direct and Overlapping General Obligation Debt 250 - 12 - State of New Mexico Farmington Municipal School District No. 5 Table of Contents June 30, 2022 STATISTICAL SECTION (Continued) Principal Property Taxpayers 251 Property Taxes Levies and Collections 252 Debt Capacity Outstanding Debt by Type 253 Ratios of General Bonded Debt Outstanding 254 Computation of Legal Debt Margin 255 Demographic and Economic Information Demographic and Economic Statistics 256 Principal Employers 257 Full-Time Equivalent District Employees by Function 258 Operating Information Operating Statistics 259 School Building Information 260-261 COMPLIANCE SECTION Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards 263-264 Independent Auditors' Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 265-267 Schedule of Expenditures of Federal Awards 268-269 Notes to Schedule of Expenditures of Federal Awards 271 Schedule of Findings and Questioned Costs 273-282 Other Disclosures 283 - 13 - State of New Mexico Farmington Municipal School District No. 5 Official Roster June 30, 2022 Name Title Board of Education Stephanie Thompson President Keith Corley Vice President Joan Vallee Secretary Kyle Rhodes Deputy Secretary Andra Stradling Member Administrative Officials Cody Diehl Superinendent Bobbi Newland Chief Financial Officer Christy Dunson Comptroller Lisa Evans Payroll/Procurement Phyllis Timme AP Specialist Audit Committee Andra Stradling Member-FMS Board Joan Vallee Member-FMS Board Linda Rogers Member-FMS Community Cody Diehl Member-FMS Bobbi Newland Member-FMS Christy Dunson Member-FMS Phyllis Timme Member-FMS Finance Committee Andra Stradling Member-FMS Board Keith Corley Member-FMS Board Cody Diehl Member-FMS Bobbi Newland Member-FMS Chrisy Dunson Member-FMS Phyllis Timme Member-FMS - 14- Farmington Municipal Schools 2021-2022 Organizational Chart Board of Education Stephanie Thompson,President Keith Corley,Vice President Joan Vallee,Secretary Kyle Rhodes,Deputy Secretary Andra Stradling,Member Cody Diehl Superintendent Chris Pash Nicole Lambson Nathan Pierantoni Robert Emerson Ted Lasiewicz Dale Bode Roberto Taboada guildin Princi als Bobbi Newland Isaac Gamboa g p Executive Director Executive Director of Public of Human Curriculum& Executive Director of Chief of Chief of Chief Financial District Athletic& Safety&Security Animas:Nicole Murillo Su ort Services Technolo O erations Su ervisor Information Resources Instruction PP gY P Officer Activities P Officer Apache:Davina Terry Bluffview:Luanne Davis Jennifer sowles Christa Kulidge Rick Horacek 5teve vollmert Country Club:Terrill Henegar Christy Dunsan EarIY Education oirecror of oirecmr of plan�operacions Compvoller Esperanza:Dr.Virginia Hedges oireaor exceP�ionai �eadership Ladera:Phyllis Maestas Program Development& 5uppon McCormick:Lyn White siny Huish McKinley:Carla Pfeffer Korth Ellsworth Dlane Arrington Transportation 5econdar leff 5mith 5upervi Mesa Verde:Pam Schritter Y Director of arriculum oireccor rotulticul�ural Computer Northeast:Candace Young Programs Information System Manager Marie Johnson 5tuden�rvutrition Heights:Chris Jones nnn oiehl program Hermosa:Kyle Haws School and Family Stacy Chang Coordinator Support Services Director of Nursing Linda Kerr Mesa VieW:Cody Gfeen Director &Wellness DistrictAssessment Coordina�or Tibbetts:Tammie Hansen oaniel Fear Farmington High:Rocky Torres Mark Harris FineAns Piedra Vista High:KellyThur Coordinator Community outreach Rocinante High:Bruce Hatch Coordinator San Juan College High:Seth Martinez Erin Gockel Teacher Orlando Montoya Development& Behavior Equity Goordinator Coordinator - 15 - � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Farmington Municipal School District No. 5 New Mexico For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 ��i�u�,e�w,. P• ��er�%��-C Executive Director/CEO - 16- ADMINISTRATIVE OFFICES 3401 E.30th Street,Suite A to excellence in every pursuit Farmington, N M 87402 fms.kl2.nm.us Office:(505)324-9840 �'�. �� , � � Fax:(844)833-2819 MUNICIPAL SCHOOLS November 15, 2022 To the Citizens and Board of Education of Farmington Municipal School District We are pleased to present to you the annual comprehensive financial report of the Farmington Municipal School District for the fiscal year ended June 30, 2022. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the Farmington Municipal School District for the fiscal year ended June 30, 2022. This report consists of management's representations concerning the finances of the Farmington Municipal School District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Farmington Municipal School District has established a comprehensive internal control framework that is designed both to protect the government's assets from loss,theft, or misuse and to compile sufficient reliable information for the preparation of the Farmington Municipal School District's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Farmington Municipal School District's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Farmington Municipal School District's financial statements have been audited by Carr, Riggs and Ingram, LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Farmington Municipal School District for the fiscal year ended June 30, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;assessing the accounting principles used and significant estimates made by management;and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Farmington Municipal School District's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Farmington Municipal School District was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report - 17- internal controls and compliance with legal requirements,with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the Farmington Municipal School District's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Farmington Municipal School District's MD&A can be found immediately following the report of the independent auditors. Profile of the District The District is a political subdivision of the State organized for the purpose of operating and maintaining an educational program for school-age children residing within its boundaries. The Farmington Municipal School District No. 5 is the seventh largest district in the State with an enrollment of 10,900 students. There are 10 elementary schools, 4 middle schools, an alternative senior high school, an early college high school,two senior high schools and two pre-schools within the District. The District's educational program also includes vocational, technical and occupational training. The District provides education services for the detainees of the County Juvenile Detention Center, which averages approximately 25 students. The District's powers are subject to regulations promulgated by the New Mexico Secretary of Public Education. The Public Education Department Secretary is the governing authority of the public-school systems in New Mexico and has control, management and direction over all public schools. The Governor appoints the Secretary of Public Education. Generally, the powers of the Secretary include determining policy of operations of all public schools; designating courses of instruction for all public schools in the State; adopting regulations for the administration of all public schools; determining qualifications for teachers, counselors, and their assistants; and prescribing minimum educational standards for all public schools. The Secretary of the Public Education Department may order the creation of new school districts or may require consolidation of school districts. The District Board (the "Board"), subject to regulations of the Public Education Department, supervises and controls all public schools and property within the District. The Board employs a superintendent of schools, delegates administrative and supervisory functions to the superintendent, fixes the budget, has the capacity to sue and be sued, contracts, leases, purchases and sells for the District, acquires and disposes of all property, and adopts regulations pertaining to the administration of all powers or duties of the Board. Members serve without compensation for four-year terms of office in non-partisan elections held every two years on the first Tuesday in November. Currently, the District operates and maintains a variety of facilities in meeting its obligations to provide an education program for the school-age children residing within its boundaries. The District operates 20 school sites. The capacity of the school facilities is estimated at 12,000 students (FTE basis). In addition to the school buildings and their contents, the District owns 290 acres of land upon which school buildings and facilities are located, approximately 579 acres of additional vacant property, the District Administration Building, a maintenance shop and custodial center, bus terminal, an Exceptional Program and Bilingual Education building, an instructional materials warehouse and 40 vehicles. The District owns its bus fleet(75). - 18- The Farmington Schools, as a whole, is accredited by the State of New Mexico's Public Education Department. The District is required by State law to submit to the Public Education Department by April 15 of each year, a projected budget for the District for the ensuing fiscal year. If the District fails to submit a budget, the Public Education Department must prepare a projected budget for the District for the ensuing fiscal year. Prior to June 20th of each year, the Board must hold a public hearing to establish the projected budget for the district for the next year. On or before July 1 of each year,the Public Education Department must approve and certify to the District an approved budget for use by the District based upon the estimated budget fixed by the District. No school board, officer or employee of a school district may make expenditure or incur any obligation for the expenditure of public funds unless such expenditure is made in accordance with an operating budget approved by the Public Education Department, but this does not prohibit the transfer of funds between line items within an object of a budget. Approved budgets may not be altered or amended after approval by the Public Education Department except upon request to the Public Education Department by the District. Instances in which such requests will be approved include a change within the budget, which does not increase the total amount of the budget. Additional budget items may also be approved if the District is to receive unanticipated revenues. Finally, if it becomes necessary to increase the District's budget by more than $1,000 for any reason other than those listed above, the Public Education Department may order a special public hearing to consider the requested increase. Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds, Capital Projects and Debt Service Fund with appropriations lapsing at year- end. Total expenditures of any activity category may not exceed categorical appropriations. To conform to Public Education Department requirements, budgets for all funds of the District are adopted on the cash basis of accounting except for state instructional materials credit, which provides free textbooks from the Public Education Department. Hence,the budgets are not prepared in conformity with generally accepted accounting principles (GAAP) and budgetary comparisons are presented on the (Non-GAAP) basis of accounting. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund,this comparison is found on page 48 as part of the basic financial statements for the government funds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report,which starts on page 154. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which Farmington Municipal School District operates. Local economy. The Farmington Municipal School District (the "District") is located in the mineral rich "Four Corners" area in northwestern New Mexico. The economy of the area is dependent upon trade, electric power generation, oil,gas and coal production, government, tourism and agriculture. - 19- Retail trade. Farmington is the largest city in the Four Corners area of Colorado, Arizona, Utah and New Mexico with a population of over 42,000. It serves as the retail, distribution and service center for an estimated population of over 260,000 including the Navajo Nation, the largest Indian reservation in the cou ntry. Electrical Generation The economic base of the area was broadened beyond agriculture and oil and gas production in the 1960's with construction of two coal-fired generating plants, the Four Corners Generating Station located 15 miles west of Farmington and the San Juan Generating Station. Four Corners ("APS") Company operates Four Corners Power Plant, a five-unit 2,040 megawatt coal-fired plant. Three of the five units closed in December 2013 as part of a $182 million plan for APS to meet environmental regulations. APS purchased a larger stake in Units 4 and 5 of the Four Corners Power Plant that will remain open and do not need as much investment to meet EPA standards. APS has not been replacing workers at the plant as they quit or retired since 2010 when the plan was first proposed,avoiding layoffs from the closure. APS currently owns 63% of Units 4 and 5. P.S.C. of New Mexico, Salt River Project,Tucson Electric Power and Navajo Transitional Energy Company also own minority stakes in Units 4 and 5.1 The Public Service Company of New Mexico ("PNM") owns a significant portion of San Juan Generating Station (SJGS), a four-unit, 1,684 megawatt of net accredited generation capacity, coal-fired plant located approximately 15 miles west of Farmington. In 2017, Units 2 and 3 were closed as part of a settlement agreement between the State of New Mexico and the U.S. Environmental Protection Agency(EPA). PNM retired the remaining coal-burning units in 2022, 20 years before the end of its useful life, as part of their larger plan of completely removing coal from their generation mix by 2031. In lieu of demolishing the remaining facilities, the City of Farmington, one of the remaining owners, has indicated interest in retaining its ownership and supporting Enchant Energy and its plans to repurpose the power plant into carbon capture utilization and sequestration (CCUS) facility and as a wholesale power generator. If built, the$1.6 billion project would be one of the largest carbon capture projects worldwide and among only a handful of CCUS projects in the United States in the power generation sector.z,3 Oil and Gas Production The oil and gas industry has been important to the San Juan County economy since the 1920's and between the early 1950's and early 1980's was its mainstay. Large scale development began in 1951 and continued until 1983 when cheaper foreign crude oil and natural gas supplies dominated the market. New Mexico oil and natural gas reserves are estimated at over 3.365 billion barrels of oil and over 23.698 trillion cubic feet of natural gas, according to the New Mexico Energy, Minerals and Natural Resources Division. In 2021, New Mexico became the nation's second-largest crude oil-producing state, after Texas, when it surpassed North Dakota's production.4 In addition, New Mexico is ranked among the top 10 in natural gas production and has 6%of the Country's natural gas reserves.4 San Juan County has been ranked third in gas production in New Mexico and third in oil production for the past five years.s Exploration for natural gas in coal seams throughout the San Juan Basin has increased potential reserves by as much as 50 trillion cubic feet. 1 https://www.srpnet.com/about/stations/fourcorners.aspx 2 https://www.pnm.com/reducinp-coal 3 https://www.eenews.net/articles/can-n-m-build-worlds-larqest-coal-ccs-proiect/ 4 https://www.eia.pov/state/print.php?sid=NM S https://www.mineralanswers.com/new-mexico/san-ivan-county - 20- Crude Oil San Juan County New Mexico Calendar Volume Value Volume Value Year (Barrels) (000's) (Barrels) (000's) 2012 561,651 45,514 83,919,902 7,238,924 2013 1,274,573 107,152 100,986,118 9,176,093 2014 2,367,099 194,924 121,071,928 10,788,344 2015 4,112,885 156,173 148,711,044 6,582,600 2016 3,924,905 131,989 147,090,860 5,762,847 2017 4,728,892 199,529 167,271,496 7,935,246 2018 5,672,284 318,521 251,316,401 13,849,206 2019 4,645,169 224,525 335,207,981 17,784,339 2020 4,878,396 163,511 373,243,493 13,664,583 2021 4,165,231 262,552 468,158,481 31,516,558 Source: New Mexico ONGARD. Natural Gas San Juan County New Mexico Calendar Volume Value Volume Value Year (Barrels) (000's) (Barrels) (000's) 2012 240,905,680 650,723 528,027,589 1,472,412 2013 386,166,366 1,738,715 1,165,872,601 5,407,090 2014 380,567,113 1,970,285 1,200,327,161 6,267,444 2015 365,471,873 1,024,309 1,181,568,177 3,289,951 2016 342,850,067 899,432 1,185,300,793 3,186,977 2017 330,759,782 1,086,211 1,303,860,366 4,324,880 2018 429,915,040 1,024,661 1,826,519,308 5,240,661 2019 250,601,122 506,513 1,401,342,297 2,501,473 2020 256,450,765 577,051 1,903,353,609 3,875,435 2021 223,358,212 1,009,926 2,364,803,283 12,528,357 Source: New Mexico ONGARD. Navajo Indian Irrigation Project The Navajo Indian Irrigation Project (NIIP), representing a joint federal and tribal investment is farmed by the Navajo Agricultural Products Industry (NAPI), an enterprise of the Navajo Nation. Composed of over 110,000 acres between 11 blocks, eight blocks currently under irrigation,the project is 70%complete with approximately 88,000 acres under cultivation and over 22,000 acres still to be developed.6 NAPI produces high value crops such as potatoes, flour, melons, onions, pinto beans, alfalfa, pumpkin, barley, corn, wheat and more. The enterprise also includes a 12,000 head custom feed yard, testing laboratory, fresh pack operation, bean plant, pellet/granary operation, and potato storage facilities. Business ventures contracted with NAPI include production of sod and an orchard (apples, peaches, apricots, and pears) along with an expansion in organic and traditional Navajo crops. Located on the project and just seven miles south of Farmington on Highway 371, is a 300-acre industrial park. NAPI's success is dependent on its employment which varies between 300-400 people during a crop season. 97% of the employees are members of the Navajo Nation. NAPI's mission is to develop, grow and maintain 6 https://www.usbr.gov/prolects/index.php?id=360 - 21 - the resources of the projected 110,000 acres. As a grower, NAPI provides quality products under the "Navajo Pride" label in both regional and in international markets.' Education More than 11,140 students attended the District in school year 2021-22. There are five private and one Bureau of Indian Affairs ("BIA") contract schools in the District. San Juan College (the "College") offers a two-year college program, enabling students to obtain Associate Degrees in Arts or Sciences in addition to occupational degrees and certificate programs. The College was founded in 1956 and has grown dramatically in size and scope since its founding. It is the most affordable post-secondary school in New Mexico. The College offers an Energy and Power program which will allow students to access careers in the oil and gas industry. It also has similar programs in pre-medicine and education. Medical San Juan Regional Medical Center("SJRMC") is an acute care hospital and Level III trauma center in the Four Corners region with over 198 licensed beds and 165 private patient rooms. It received the Healthgrades Distinguished Hospital Award for Clinical Excellence in 2013. In addition to this national recognition, SJRMC is one of the only hospitals in New Mexico and the Four Corners region to receive this distinction. San Juan Regional Medical Center is designated a Level III Trauma Center and provides air ambulance service with a helicopter and a fixed wing aircraft. SJRMC provides a very broad range of inedical, surgical and rehabilitation services. In addition to those services,the hospital also provides a Childbirth Center, a nephrology unit, a pediatric unit, an inpatient behavioral health unit, a day surgery center and extensive imaging and lab testing services. In addition, the hospital operates a number of offsite facilities and is a Medicaid provider for New Mexico,Arizona, Colorado, and Utah.B Tourism The Four Corners area boasts internationally known tourist attractions including Mesa Verde, Canyon de Chelly, Monument Valley and Lake Powell. Equally worthy attractions within the County include Chaco Cultural National Historical Park(a major Anasazi cultural center during the 12th and 13th centuries), Aztec Ruins National Monument (500 room Indian community ruin with reconstructed Kiva), white water river rafting and nationally renowned trout fishing on the San Juan River just below Navajo Lake. Tourist visits to Aztec Ruins have increased significantly over the years. The Connie Mack Baseball World Championship Tournament is held in Farmington each summer. Navajo rugs, Native American jewelry, paintings and sculpture are available at local trading posts and shops. Long-term financial planning. The district has a Master Facility Plan that determines the district's capital improvements for the next five years and the district's financial planning for future bond elections. Financial planning for the district has been driven by state mandates that result from the school grading reform requiring greater accountability for student success. CURRENT PROJECTS On November 2, 2021 voters approved issuing $8,000,000 in bonds to fund renovation, repair and numerous improvement projects at all schools throughout the district. Remaining funds from a 2017 bond issue supplement the funding of these projects. The District will receive Public School Critical Capital Outlay funds to help with the Facility Master Plan. 7 https://napi.navalopride.com/ 8 https://www.sanivanrepional.com/about - 22 - INDEPENDENT AUDIT As required by New Mexico State law, an annual audit of the financial records, books of account and the transactions of all administrative departments of the Farmington Municipal School District No. 5 have been made by an independent auditor. The independent auditors'opinion as prepared by Carr, Riggs and Ingram, LLC is included within the Financial Section of this report. The 2022 audit was an organization- wide single audit under the provisions of the Single Audit Act Amendments of 1996 and related Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The auditors' reports related specifically to the single audit area in the Compliance Section of this report. ACKNOWLEDGEMENT The preparation of the report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Central Office with special appreciation to the employees working in the business office. We would like to express appreciation to all of the members of the District who assisted in the timely closing of the District's financial records and the preparation of this report. We would also like to thank President Stephanie Thompson and members of the Board of Education for their continuing interest and support in conducting the financial affairs of this school district for the 2021- 2022 fiscal year,thereby advancing the effort toward excellence in education in the Farmington Municipal School District. In addition, we express our gratitude to Regina Gaysina financial advisor and the staff with RBC Dain Rauscher, whose dedication, understanding and insight are unsurpassed. Respectfully submitted, � Bobbi Newland Chief Financial Office - 23 - Financial Section Farmington Municipal School District No. 5 - 24- C A R R Carr,Riggs&Ingram,LLC �/:` R RIGGS & 2424 Louisiana Boulevard NE �� ■ \I INGRAM Suite300 CPAs and Advisors Albuquerque,NM 87110 505.883.2721 505.884.6719(fax) CRlcpa.com INDEPENDENT AUDITORS' REPORT Brian S. Colon, Esq., New Mexico State Auditor The Office of Management and Budget and The Board of Education Farmington Municipal School District No. 5 Farmington, New Mexico Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, the aggregate remaining fund information,and the budgetary comparisons for the general fund and major special revenue fund that has a legally adopted annual budget of the Farmington Municipal School District No. 5 (the "District"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Entity's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, the aggregate remaining fund information, and the budgetary comparisons for the general fund and major special revenue fund that has a legally adopted annual budget of the District, as of June 30, 2022, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter Change in Accounting Principle As described in Note 2 to the financial statements, the District implemented GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter. - 25 - Responsibilities of Management for the Financial Statements Management is responsible forthe preparation and fair presentation ofthe financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate,that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and GovernmentAuditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material ifthere is a substantial likelihood that, individually or in the aggregate,they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment,there are conditions or events, considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. - 26- We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 29 through 38,the GASB required pension schedules on pages 106 through 109,the GASB required other post-employment benefit schedules on pages 110 through 113, and the notes to the required supplementary information on page 114 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements.The accompanying combining and individual nonmajor fund financial statements, budgetary schedules, schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and supporting schedules as identified in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary schedules, schedule of expenditures of federal awards, and supporting schedules as identified in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report.The other information comprises the introductory, statistical sections, and other disclosures but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. - 27- In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by GovernmentAuditing Standards In accordance with GovernmentAuditing Standards,we have also issued our report dated November 15,2022, on our consideration of the District's internal control over financial reporting and on ourtests of its compliance with certain provisions of laws, regulations,contracts,and grant agreements and other matters.The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the District's internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the District's internal control over financial reporting and compliance. �Q.e,� /�ce�a.� F d2►�.�,�� L.t.C, Carr, Riggs& Ingram, LLC Albuquerque, New Mexico November 15, 2022 - 28- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 As management of the Farmington Municipal School District, we offer readers of Farmington Municipal School District's financial statements this narrative overview and analysis of the financial activities of the Farmington Municipal School District for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 17-23. Financial Highlights • The liabilities and deferred inflows of resources of the Farmington Municipal School District exceeded assets and deferred outflows of resources at the close of the most recent fiscal year by $100,050,011 (net position). Of this amount, $6,462,757 (Unrestricted net position excludinq pension/OPEB liability of$188,344,104 and net pension/OPEB related deferred inflows/outflows of ($90,585,823) may be used to meet the School District's ongoing obligations excluding the pension liability. • As of the close of the current fiscal year, Farmington Municipal School District's governmental funds reported combined ending fund balances of $32,695,753 an increase of $2,050,963 in comparison with the prior year. Approximately 17.23% of this total amount, $5,635,964 is committed for subsequent year's expenditures at the District's discretion (unassigned fund balance). • At the end of the current fiscal year,committed for subsequent year's expenditure for the general fund was$5,635,964 or 5.72%of the total general fund expenditures. • The Farmington Municipal School District's total net debt decreased by $4,865,883 or 6.15% during the current fiscal year. The district retired $7,364,942 of debt and issued $2,000,000 in new debt. • On November 2, 2021, a bond election was held for $8,000,000 and passed by 58% of the vote. The bonds will be sold over a four-year period. Overview of Financial Statements This discussion and analysis are intended to serve as an introduction to the Farmington Municipal School District's basic financial statements. The School District's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Farmington Municipal School District's finances, in a manner similar to a private-sector business. - 29- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Overview of Financial Statements(Continued) The statement of net position presents information on all of the Farmington Municipal School District's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Farmington Municipal Schools is improving or deteriorating. The statement of activities presents information showing how Farmington Municipal School District's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. (e.g., uncollected taxes and earned but unused vacation leave, etc.) Both of the government-wide financial statements reflect functions of the Farmington Municipal School District that are principally supported by taxes and intergovernmental revenues(governmental activitiesJ. The governmental activities of the Farmington Municipal School District include general government operations, transportation of students and instructional materials allocations. The government-wide financial statements can be found on pages 40 through 43 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Farmington Municipal School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Farmington Municipal School District are governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Farmington Municipal School District maintains four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,and changes in fund balances for the general fund,special revenue fund, and the debt service fund, all of which are considered to be major funds. Data from the 66 governmental funds are combined into a single, aggregated presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements following the notes to the financial statements (page 124). - 30- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Overview of Financial Statements(Continued) Farmington Municipal School District adopts an annual appropriated budget for each of its funds. Budgetary comparative statements have been provided for these funds to demonstrate compliance with these budgets. The basic governmental fund financial statements can be found on pages 44-49 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because of the resources of those funds are not available to support the Farmington Municipal Schools' own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 50-51 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 52-104 of this report. Government-wide Financial Analysis As noted earlier, over time, net position may serve as a useful indicator of a government's financial position. In the case of Farmington Municipal School District, the liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $100,050,011 at the close of the most recent fiscal year. A portion of Farmington Municipal School District's net position is invested in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. Farmington Municipal School District uses these capital assets to provide educational services;consequently,these assets are not available forfuture spending. Although Farmington Municipal School District's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. - 31 - STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Government-wide Financial Analysis(Continued) Farmington Municipal School District's Net Position Governmental Activities Total FY 2022 FY 2021 FY 2022 FY 2021 Current and other assets $ 39,153,370 $ 37,282,784 $ 39,153,370 $ 37,282,784 Capital assets 220,198,668 224,772,698 220,198,668 224,772,698 Total assets 259,352,038 262,055,482 259,352,038 271,237,534 Deferred outflows of resources 135,839,301 217,330,874 135,839,301 217,330,874 Current Liabilities 6,243,245 6,459,515 6,243,245 6,459,515 Noncurrent liabilities Due within one year 6,804,157 7,572,575 6,804,157 7,572,575 Due in more than one year 67,424,720 71,522,185 67,424,720 71,522,185 Net pension liability 143,996,770 413,101,925 143,996,770 413,101,925 Net other post employment benefit liabiltiy 44,347,334 57,630,013 44,347,334 57,630,013 Totalliabilities 268,816,226 556,286,213 268,816,226 556,286,213 Deferred inflows of resources 226,425,124 23,124,761 226,425,124 23,124,761 Net position Net investment in capital assets 150,894,965 149,684,300 150,894,965 149,684,300 Restricted 21,522,194 23,033,641 21,522,194 23,033,641 Unrestricted (deficit) (272,467,170) (272,742,559) (272,467,170) (272,742,559) Total net position $ (100,050,011) $ (100,024,618) $ (100,050,011) $ (100,024,618) A large portion of Farmington Municipal School District's net position (89%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, excluding net pension and net OPEB liabilities of$188,344,104 and net pension related deferred inflows/outflows of ($90,585,823), $6,462,757 may be used to meet the District's ongoing obligations excluding the pension liability. At the end of the current fiscal year, Farmington Municipal School District has achieved positive balances in the Governmental Activities category of net position. The same situation held true in the prior fiscal year. Farmington Municipal School District's net position decreased by $25,393 during the current fiscal year. Total assets decreased slightly primarily due to a decrease in cash from the bond fund. Noncurrent liabilities decreased primarily due to the retirement of debt. - 32 - STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Government-wide Financial Analysis(Continued) Governmental activities. Governmental activities decreased Farmington Municipal School District's net position by$25,393. Key elements of this decrease are as follows: • A 4.6% increase in state equalization revenue as shown in the comparison of grants and contributions not restricted to specific programs. • A 34%decrease in operational expenses for the district lowered spending when compared to the prior year. • The revenue increases and operational expenses reductions were offset by pension and OPEB activity. - 33 - STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Government-wide Financial Analysis(Continued) Farmington Municipal School District's Changes in Net Position Governmental Activities Total FY2022 FY2021 FY 2022 FY 2021 Revenues Program revenues Charges for services $ 1,680,303 $ 648,540 $ 1,680,303 $ 648,540 Operating grants&contributions 30,205,968 23,981,290 30,205,968 23,981,290 Capital grants&contributions 4,414,701 1,835,849 4,414,701 1,835,849 General revenues Property taxes-general purpose 576,803 592,179 576,803 592,179 Property taxes-debt service 8,693,935 9,237,045 8,693,935 9,237,045 Property taxes-capital projects 5,100,952 4,715,657 5,100,952 4,715,657 Oil&gas 635,230 343,056 635,230 343,056 Grants and contributions not restricted to specific programs 93,515,835 89,432,759 93,515,835 89,432,759 Miscellaneous income 194,246 159,276 194,246 159,276 Total revenues $ 145,017,973 $ 130,945,651 $ 145,017,973 $ 130,945,651 Expenses Direct instruction $ 81,836,408 $ 134,506,105 $ 81,836,408 $ 134,506,105 Support services Students 16,089,269 28,535,879 16,089,269 28,535,879 Instruction-support 1,557,353 2,445,709 1,557,353 2,445,709 General administrative 2,514,303 3,975,985 2,514,303 3,975,985 School administrative 7,721,719 14,258,282 7,721,719 14,258,282 Central services 1,723,755 3,058,311 1,723,755 3,058,311 Operations and maintenance 20,483,503 20,001,061 20,483,503 20,001,061 Student transportation 4,260,450 6,099,771 4,260,450 6,099,771 Other support services - 425 - 425 Non-instructional services Food services 6,875,044 5,587,764 6,875,044 5,587,764 Community services 50 12,073 50 12,073 Interest on long-term obligations 1,981,512 1,563,489 1,981,512 1,563,489 Total expenses $ 145,043,366 $ 220,044,854 $ 145,043,366 $ 220,044,854 Increase/(decrease)in net position $ (25,393) $ (89,099,203) $ (25,393) $ (89,099,203) Net position-beginning of year, as originally stated $ (100,024,618) $ (9,625,302) $ (100,024,618) $ (9,625,302) Net position-restatement - (1,300,113) - (1,300,113) Net position-beginning of year, as restated (100,024,618) (10,925,415) (100,024,618) (10,925,415) Net position-end of year $ (100,050,011) $ (100,024,618) $ (100,050,011) $ (100,024,618) - 34- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Financial Analysis of the Government's Funds As noted earlier, Farmington Municipal School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Farmington Municipal School District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing Farmington Municipal School District's financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, Farmington Municipal School District's governmental funds reported combined ending fund balances of$32,695,753 an increase in comparison with the prior year. Approximately negative 0.6%of this total amount$(209,950) constitutes unassigned fund balance, which is available for spending at the government's discretion. There is $453,076 that is nonspendable, and $5,635,964 that is committed to subsequent year's expenditures. The remainder of fund balance is restricted to indicate that it is not available for new spending because it has already been committed 1) to pay debt service ($10,687,564), 2) for capital projects ($9,564,809) and 3) a variety of other restricted purposes ($6,564,290). The general fund is the chief operating fund of Farmington Municipal School District. At the end of the current fiscal year, unassigned fund balance of the general funds was $193,147 and total fund balance was$6,121,869. As a measure ofthe general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned represents 1.69% percent of the total general fund expenditures, and the total fund balance represents 6.21% in the general fund balance at June 30, 2022. The fund balance of Farmington Municipal School District's general fund decreased by $210,859 during the current fiscal year. Farmington Municipal Schools District's board and management recognizes the need for maintaining an adequate operational cash fund balance to assure sound fiscal management of its financial resources while maintaining the district's high bond rating and to assure the availability of funds when unexpected financial demands are made on the Farmington Municipal Schools. The revenue increases from the state did materialize to the level forecasted by the state. The district decreased expenditures primarily by decreasing the number of teachers and support staff throughout the district.The current fiscal year budget reflects an increase in the cash balance to comply with Board policy. The fund balance is expected to increase this next fiscal year as additional staff reductions will be made. The District's CARES Act, ESSER II fund 24308 is a major program in FY22. The fund's total fund balance is $0 which remains consistent with prior year. The District's GO Bonds debt service fund's total fund balance was $8,994,632 that is restricted for the payment of debt service. This is a net increase in fund balance of$7,115.The increase during the current year resulted primarily from decreased principal and interest payments. - 35 - STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Financial Analysis of the Government's Funds(Continued) General Fund Budgetary Highlights Differences between the original budgeted revenues and the final amended budgeted revenues resulted in a budget increase of$891,603 which can be briefly summarized as follows: • The difference resulted primarily from a mid-year increase in revenue from the state in state equalization funds of$2.16 per program unit. • Expenditures were increased in an attempt to balance the budget. • Additional cash from 6/30/21 was carried forward and budgeted in 2021-2022. Capital Asset and Debt Administration Capital assets. Farmington Municipal School District's investment in capital assets for its governmental activities as of June 30, 2022 amounts to $220,198,668 (net of accumulated depreciation/amortization). This investment in capital assets includes land, construction in progress, buildings,improvements,furniture and equipment, ROU-lease asset buildings and improvements. For the governmental activities, a total of $220,198,668 was determined as the current value of all the capital assets owned by the District. Major capital asset events during the current fiscal year included the following: • Phase II of construction and renovation of an elementary school completed August 2021. • The sale of the Multi-Cultural building at 1390 E 20t" St in Farmington. Additional information on Farmington Municipal School District's capital assets can be found in note 7 on pages 81-82 of this report. - 36- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Capital Asset and Debt Administration (Continued) Government Activities Total FY2022 FY2021 FY2022 FY2021 Land $ 4,142,761 $ 4,142,761 $ 4,142,761 $ 4,142,761 Construction in progress 1,001,385 7,760,466 1,001,385 7,760,466 Land improvements 16,728 19,421 16,728 19,421 Buildings and improvements 210,039,701 208,553,197 210,039,701 208,553,197 Furniture and equipment 4,953,224 4,296,853 4,953,224 4,296,853 ROU-lease asset- buildings and improvements 44,869 - 44,869 - Total $ 220,198,668 $ 224,772,698 $ 220,198,668 $ 224,772,698 Long-term debt. As of June 30, 2022, Farmington Municipal School District had total bonded debt outstanding of $71,610,000. The total outstanding debt represents general obligation bonds secured solely by specified revenue sources (i.e., property tax collections). Governmental activities Tota I Tota I FY 2022 FY 2021 General obligation bonds $71,610,000 $76,495,000 Farmington Municipal School District's total GO Bond debt decreased by $4,865,883 during the current fiscal year. The district retired $7,364,942 of debt and issued $2,000,000 in new debt. Farmington Municipal School District maintains an AA3 bond rating from Moody's Investor Service, Inc. The District carries lease liabilities of$44,962 on its statement on net position relating to the right-of-use assets described above. These liabilities also arise as a result of the implementation of GASB Statement No. 87, Leases. Lease liabilities are further detailed in Note 8 to the financial statements. State statute limits the amount of general obligation debt a governmental entity may issue to 6% of its total assessed valuation. The current debt limitation for Farmington Municipal School District is $89,985,991 which is in excess of Farmington Municipal School District's outstanding general obligation debt. More information of Farmington Municipal School District's debt can be found in note 8 of this report on pages 83-85. - 37- STATE OF NEW MEXICO FARMINGTON MUNCIPAL SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALY515 For The Year Ended June 30,2022 Economic Factors and Next Year's Budget Farmington Municipal School District is located in San Juan County. San Juan County, like the rest of New Mexico and the nation, has experienced increased inflation and a declining economy. Due to the economic factors post pandemic affecting the entire country, the State of New Mexico and San Juan County have seen a decrease in unemployment and a slight uptick in the oil and gas economy. The taxes on oil and gas in New Mexico are a vital revenue factor in the state's budget. 98% of Farmington Municipal Schools' operating revenue comes from the state and the district does anticipate an increase in funding allocated for schools in FY2023. The board of education is being proactive and considering ways to reduce expenditures on an opportunistic basis and improve the district's cash balance in preparation for an increase in revenues. San Juan County's population shows some decline in past years and Farmington Municipal School's enrollment has shown a slight decline for the current fiscal year. The current enrollment has decreased slightly when compared to the same period in the prior year.The projections are that the enrollment will remain relatively flat with a slight increase over the next two to three years pending the impact of the pandemic on the local economy. Farmington Municipal School District receives approximately 98%of its annual operating budget from the State of New Mexico through the State Equalization Guaranteed Funding. The objectives of the formula are (1) to equalize educational opportunity statewide (by crediting certain local and federal support and then distributing state support in an objective manner) and (2) to retain local autonomy in actual use of funds by allowing funds to be used in local districts at the discretion of local policy making bodies. The basis for the formula is in the number of students enrolled. Weighting factors are assigned to students that receive special services,i.e.,special education and bilingual education services as well as otherfactors based on the training and experience of the teaching staff and the district's at-risk population. Farmington Municipal School District has appropriated $5,635,964 of its unassigned fund balance for spending in the 2023 fiscal year budget. The $5,635,964 was budgeted primarily into direct classroom instruction to fund additional staff needed to meet the state mandated class sizes while accommodating the slight growth in the secondary student population. Requests for information This financial report is designed to provide a general overview of Farmington Municipal School District's finances for all those with an interest in the district's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Financial Officer, 3401 E 30th St. Suite A, Farmington, New Mexico 87402. - 38- Basic Financial Statements Farmington Municipal School District No. 5 - 39- State of New Mexico Farmington Municipal School District No. 5 Statement of Net Position Governmental June 30, 2022 Activities Assets Current assets Cash and cash equivalents $ 9,519,711 Investments 3,183,722 Receivables Property taxes 1,036,335 Intergovernmental 7,743,823 Inventory 453,076 Total current assets 21,936,667 Noncurrent assets Restricted cash and cash equivalents 16,435,577 Restricted investments 781,126 Capital assets not being depreciated 5,144,146 Capital assets being depreciated 341,262,827 Less accumulated depreciation (126,253,174) Right-to-use lease assets 224,345 Less accumulated amortization (179,476) Total noncurrent assets 237,415,371 Total assets 259,352,038 Deferred outflows of resources Deferred outflows- pension 120,704,107 Deferred outflows-OPEB 15,135,194 Total deferred outflows of resources 135,839,301 Total assets and deferred outflows of resources $ 395,191,339 The accompanying notes are an integral part of these financial statements. -40- Governmental June 30, 2022 Activities Liabilities Current liabilities Accounts payable $ 3,570,606 Accrued payroll 1,913,879 Accrued interest 704,394 Unearned revenue 54,366 Long-term liabilities, current 6,804,157 Total current liabilities 13,047,402 Noncurrent liabilities Long-term liabilities, net of current portion 67,424,720 Net pension liability 143,996,770 Net other post employment benefit liability 44,347,334 Total noncurrent liabilities 255,768,824 Total liabilities 268,816,226 Deferred inflows of resources Deferred inflows- pension 200,691,288 Deferred inflows-OPEB 25,733,836 Total deferred inflows of resources 226,425,124 Net position Net investment in capital assets 150,894,965 Restricted for Debt service 10,775,312 Capital projects 5,272,651 Special revenue 5,474,231 Unrestricted (deficit) (272,467,170) Total net position (100,050,011) Total liabilities, deferred inflows of resources, and net position $ 395,191,339 The accompanying notes are an integral part of these financial statements. -41 - State of New Mexico Farmington Municipal School District No. 5 Statement of Activities For the Year Ended June 30, 2022 Program Revenues Charges for Operating Grants Functions/Programs Expenses Services and Contributions Primary government Governmental activities Instruction $ 81,836,408 $ 932,984 $ 16,587,445 Support services-students 16,089,269 183,427 3,261,138 Support services- instruction 1,557,353 17,755 315,660 Support services-general administration 2,514,303 28,665 509,625 Support services-school administration 7,721,719 88,032 1,565,117 Central services 1,723,755 19,652 349,388 Operation and maintenance of plant 20,483,503 233,524 4,151,808 Student transportation 4,260,450 - 3,016,861 Food services operations 6,875,044 176,264 448,926 Community services operations 50 - - Interest and other charges 1,981,512 - - Total governmental activities $ 145,043,366 $ 1,680,303 $ 30,205,968 General revenues Taxes Property taxes, levied for operating programs Property taxes, levied for capital projects Property taxes, levied for debt services Oil and gas taxes State equalization guarantee Investment income Miscellaneous Gain on disposition of assets Total general revenues Change in net position Net position - beginning of year Net position -end of year The accompanying notes are an integral part of these financial statements. -42 - Program Revenues Net Revenue (Expense) and Capital Grants and Changes in Contributions Net Position $ 2,738,523 $ (61,577,456) 538,401 (12,106,303) 52,114 (1,171,824) 84,137 (1,891,876) 258,395 (5,810,175) 57,683 (1,297,032) 685,448 (15,412,723) - (1,243,589) - (6,249,854) - (50) - (1,981,512) $ 4,414,701 (108,742,394) 576,803 5,100,952 8,693,935 635,230 93,515,835 15,268 63,596 115,382 108,717,001 (25,393) (100,024,618) $ (100,050,011) The accompanying notes are an integral part of these financial statements. -43 - State of New Mexico Farmington Municipal School District No. 5 Balance Sheet - Governmental Funds CARES Act, Nonmajor Total General Fund ESSER II Debt Service Governmental Governmental June 30,2022 11000, 13000 24308 41000 Funds Funds Assets Cash and cash equivalents $ 3,031,749 $ 4,293 $8,347,892 $ 14,571,354 $ 25,955,288 Investments 12,982 - 586,325 3,365,541 3,964,848 Receivables Property taxes 43,579 - 542,724 450,032 1,036,335 Intergovernmental - 2,122,764 - 5,621,059 7,743,823 Due from other funds 6,058,501 - - - 6,058,501 Inventory 292,758 - - 160,318 453,076 Total assets $ 9,439,569 $ 2,127,057 $ 9,476,941 $ 24,168,304 $ 45,211,871 Liabilities,deferred inflows of resources,and fund balances Liabilities Accounts payable $ 1,544,048 $ 49 $ 1,104 $ 2,025,405 $ 3,570,606 Accrued payroll 1,734,903 4,293 - 174,683 1,913,879 Unearned revenue - - - 54,366 54,366 Due to other funds - 2,122,715 - 3,935,786 6,058,501 Totalliabilities 3,278,951 2,127,057 1,104 6,190,240 11,597,352 Deferred inflows of resources Unavailable revenue-property taxes 38,749 - 481,205 398,812 918,766 Total deferred inflows of resources 38,749 - 481,205 398,812 918,766 Fund balances Nonspendable 292,758 - - 160,318 453,076 Spendable Restricted - - 8,994,632 17,822,031 26,816,663 Committed 5,635,964 - - - 5,635,964 Unassigned (deficit) 193,147 - - (403,097) (209,950) Total fund balances 6,121,869 - 8,994,632 17,579,252 32,695,753 Total liabilities, deferred inflows of resources,and fund balances $ 9,439,569 $ 2,127,057 $ 9,476,941 $ 24,168,304 $ 45,211,871 The accompanying notes are an integral part of these financial statements. -44- State of New Mexico Farmington Municipal School District No. 5 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30,2022 Amounts reported for governmental activities in the statement of net position are different because Fund balances-total governmental funds $ 32,695,753 Capital assets, net of accumulated depreciation, used in governmental activities are not financial resources and,therefore, are not reported in the funds. 220,153,799 Right-to-use lease assets, net of accumulated amortization, used in governmental activities are not financial resources and,therefore, are not reported in the funds. 44,869 Delinquent property taxes not collected within sixty days after year end are not considered "available" revenues and are considered to be unavailable revenue in the fund financial statements, but are considered revenue in the statement of activities 918,766 Deferred outflows and inflows of resources pensions and other post employment benefits are applicable to future periods and,therefore, are not reported in funds Deferred outflows- pension 120,704,107 Deferred outflows-OPEB 15,135,194 Deferred inflows- pension (200,691,288) Deferred inflows-OPEB (25,733,836) Liabilities, including accrued compensated absences, accrued interest, bonds payable, leases, net pension liability, and net OPEB liability are not due and payable in the current period and,therefore, are not reported in the funds Accrued compensated absences not due and payable (661,730) Accrued interest payable (704,394) Bond premiums (1,912,185) Bonds payable (71,610,000) Lease liability (44,962) Net pension liability (143,996,770) Net OPEB liability (44,347,334) Total net position -governmental activities $ (100,050,011) The accompanying notes are an integral part of these financial statements. -45 - State of New Mexico Farmington Municipal School District No. 5 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds CARES Act, Nonmajor Total General Fund ESSER II Debt Service Governmental Governmental For the Year Ended June 30,2022 11000,13000 24308 41000 Funds Funds Revenues Property taxes $ 577,288 $ - $ 7,538,169 $ 6,268,081 $ 14,383,538 Oil and gas taxes 31,863 - 332,657 270,710 635,230 Intergovernmental Federal flowthrough 225,028 8,011,052 - 15,465,875 23,701,955 Federal direct 126,664 - - 3,156,459 3,283,123 Local sources 166,438 - - 15,028 181,466 State flowthrough 611,749 - - 3,001,378 3,613,127 State direct 93,515,835 - - 824,137 94,339,972 Transportation distribution 3,016,861 - - - 3,016,861 Charges for services 31,856 - - 1,648,447 1,680,303 Investment income 12 - 494 14,762 15,268 Miscellaneous 34,146 - - 29,450 63,596 Total revenues 98,337,740 8,011,052 7,871,320 30,694,327 144,914,439 Expenditures Current Instruction 62,278,074 6,868,506 - 7,175,299 76,321,879 Support services-students 10,367,348 322,526 - 4,344,466 15,034,340 Support services-instruction 1,313,318 - - 125,133 1,438,451 Support services-general administration 1,756,965 190,391 66,231 339,120 2,352,707 Support services-school administration 6,023,029 42,413 - 1,080,608 7,146,050 Central services 1,593,100 - - - 1,593,100 Operation and maintenance of plant 11,788,509 587,216 - 6,999,631 19,375,356 Student transportation 3,174,303 - - 86,521 3,260,824 Food services operations - - - 6,507,171 6,507,171 Community services operations 288 - - - 288 Capital outlay 253,665 - - 2,556,747 2,810,412 Debt service Principal - - 5,635,000 1,560,034 7,195,034 Interest and other charges - - 2,162,974 36,187 2,199,161 Total expenditures 98,548,599 8,011,052 7,864,205 30,810,917 145,234,773 Excess(deficiency)of revenues over expenditures (210,859) - 7,115 (116,590) (320,334) Other financing sources/(uses) Proceeds from sale of capital assets - - - 371,297 371,297 Bond proceeds - - - 2,000,000 2,000,000 Total other financing sources/(uses) - - - 2,371,297 2,371,297 Net change in fund balances (210,859) - 7,115 2,254,707 2,050,963 Fund balances-beginning of year 6,332,728 - 8,987,517 15,324,545 30,644,790 Fund balances-end of year $ 6,121,869 $ - $ 8,994,632 $ 17,579,252 $ 32,695,753 The accompanying notes are an integral part of these financial statements. -46- State of New Mexico Farmington Municipal School District No. 5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30,2022 Amounts reported for governmental activities in the statement of activities are different because Net change in fund balances-total governmental funds $ 2,050,963 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense Capital expenditures 2,810,412 Depreciation expense (7,173,396) Amortization expense (310,127) Book value of capital assets disposed (255,915) Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds Change in unavailable revenue related to property taxes receivable (11,848) Governmental funds report district pension and OPEB contributions as expenditures. However, in the statement of activities,the cost of pension and OPEB benefits earned net of employee contributions is reported as pension and OPEB benefit Contributions subsequent to the measurement date- pension 9,605,208 Pension expense (17,458,206) Contributions subsequent to the measurement date -OPEB 1,366,511 OPEB benefit 4,082,385 The issuance of long-term debt (e.g. bonds, notes, leases) provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also,governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities Decrease in accrued compensated absences not due and payable (144,063) Decrease in accrued interest payable 47,741 Bond premium amortization 169,908 Bond proceeds (2,000,000) Principal payments on bonds 6,885,000 Principal payments on leases 310,034 Change in net position of governmental activities $ (25,393) The accompanying notes are an integral part of these financial statements. -47- State of New Mexico Farmington Municipal School District No. 5 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual General Fund (11000, 13000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30,2022 Original Final Actual Final to Actual Revenues Property taxes $ 584,503 $ 584,503 $ 583,499 $ (1,004) Oil and gas taxes 20,150 20,150 31,863 11,713 Intergovernmental Federal flowthrough 17,628 17,628 225,028 207,400 Federal direct 203,330 203,330 126,664 (76,666) Local sources 56,603 56,603 166,438 109,835 State flowthrough - 1,271,479 611,749 (659,730) State direct 90,451,699 93,618,625 93,515,835 (102,790) Transportation distribution 3,400,070 3,400,070 3,016,861 (383,209) Charges for services 21,673 21,673 31,856 10,183 Investment Income 14 14 12 (2) Miscellaneous 41,479 41,479 34,146 (7,333) Total revenues 94,797,149 99,235,554 98,343,951 (891,603) Expenditures Current Instruction 64,678,702 65,793,377 62,545,399 3,247,978 Support services-students 11,052,677 11,663,648 10,360,507 1,303,141 Support services-instruction 1,852,385 1,852,385 1,309,646 542,739 Support services-general administration 1,696,668 1,796,168 1,748,037 48,131 Support services-school administration 5,663,303 6,616,314 6,017,382 598,932 Central services 2,594,922 2,743,922 1,868,437 875,485 Operation and maintenance of plant 11,430,686 12,930,686 11,919,787 1,010,899 Student transportation 3,250,070 3,372,598 3,233,812 138,786 Other support services 98,703 98,703 - 98,703 Food services operations - - - - Community services operations 1,974 1,974 288 1,686 Total expenditures 102,470,090 107,019,775 99,245,842 7,773,933 Excess(deficiency)of revenues over expenditures (7,672,941) (7,784,221) (901,891) 6,882,330 Other financing sources Designated cash (budgeted increase in cash) 7,672,941 7,784,221 - (7,784,221) Total other financing sources 7,672,941 7,784,221 - (7,784,221) Net change in fund balance - - (901,891) (901,891) Fund balance-beginning of year - - 8,270,220 8,270,220 Fund balance-end of year $ - $ - $ 7,368,329 $ 7,368,329 Net change in fund balance(Non-GAAP budgetary basis) $ (901,891) Adjustments to revenues for taxes and intergovernmental revenue (6,211) Adjustments to expenditures for supplies and payroll expenditures 697,243 Net change in fund balance (GAAP Basis) $ (210,859) The accompanying notes are an integral part of these financial statements. -48- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CARES Act, ESSER II Special Revenue Fund (24308) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 6,708,093 $ 6,708,093 Total revenues - - 6,708,093 6,708,093 Expenditures Current Instruction 7,368,611 6,887,944 6,887,943 1 Support services-students 322,487 322,487 322,477 10 Support services-general administration 190,391 190,391 190,391 - Support services-school administration 42,413 42,413 42,413 - Operation and maintenance of plant 1,000,000 1,000,000 738,017 261,983 Total expenditures 8,923,902 8,443,235 8,181,241 261,994 Excess (deficiency) of revenues over expenditures (8,923,902) (8,443,235) (1,473,148) 6,970,087 Other financing sources Designated cash balance (budgeted increase in cash) 8,923,902 8,443,235 - (8,443,235) Total other financing sources 8,923,902 8,443,235 - (8,443,235) Net change in fund balance - - (1,473,148) (1,473,148) Fund balance- beginning of year - - (649,567) (649,567) Fund balance-end of year $ - $ - $(2,122,715) $ (2,122,715) Net change in fund balance (Non-GAAP Budgetary Basis) $(1,473,148) Adjustments to revenues for intergovernmental revenue 1,302,959 Adjustments to expenditures for supplies and payroll expenditures 170,189 Net change in fund balance (GAAP Basis) $ - The accompanying notes are an integral part of these financial statements. -49- State of New Mexico Farmington Municipal School District No. 5 Statement of Fiduciary Net Position Fiduciary Funds June 30,2022 Custodial Funds Assets Cash and cash equivalents $ 460,062 Total assets $ 460,062 Liabilities Accounts payable $ 6,877 Total liabilities 6,877 Net position Restricted for student organizations 453,185 Total net position 453,185 Total liabilities and net position $ 460,062 The accompanying notes are an integral part of these financial statements. - 50- State of New Mexico Farmington Municipal School District No. 5 Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2022 Custodial Funds Additions Charges for services $ 822,243 Total additions 822,243 Deductions Current Instruction 506,672 Total deductions 506,672 Net(deficiency) in fiduciary net position 315,571 Net position - beginning of year 137,614 Net position -end of year $ 453,185 The accompanying notes are an integral part of these financial statements. - 51 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Farmington Municipal School District No. 5 (the "District") is a special purpose government corporation governed by an elected five-member Board of Education. The Board of Education is the basic level of government, which has oversight responsibility and control over all activities related to the public school education of the City of Farmington and surrounding area. The District is responsible for all activities related to public elementary and secondary school education within its jurisdiction. The District receives funding from local, state, and federal government sources and must comply with the requirements of these funding source entities. The School Board is authorized to establish policies and regulations for its own government consistent with the laws of the State of New Mexico and the regulations of the Legislative Finance Committee. The School Board is comprised of five members who are elected for terms of four years. The District operates eighteen schools within the District. In conjunction with the regular educational programs, some of these schools offer special education. In addition, the School Board provides transportation and school food services for the students. This summary of significant accounting policies of the District is presented to assist in the understanding of the District's financial statements. The financial statements and notes are the representation of the District's management that is responsible for the financial statements. The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. Reporting Entity In evaluating how to define the District,for financial reporting purposes, management has considered all potential component units. The decision to include any potential component units in the financial reporting entity was made by applying the criteria set forth in GASB Statement No. 14, as amended by GASB Statement Nos. 39, 61, 80, and 90. Blended component units, although legally separate entities, are in substance part of the government's operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. The basic-but not the only-criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management,the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and/or its citizens. - 52 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Reportinq Entity(Continued) A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Finally, the nature and significance of a potential component unit to the primary government could warrant its inclusion within the reporting entity. Based upon the application of these criteria, the District does not have any component units required to be reported under GASB Statement No. 14, as amended by GASB Statement No. 39, GASB Statement No. 61, GASB Statement No.80, and GASB Statement No. 90. Government-wide and Fund Financial Statements The government-wide financial statements (the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part,the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District does not have any business-type activities. Likewise, the primary government is reported separately from its legally separate component unit for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, state equalization, and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. - 53 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements of time, reimbursement and contingencies imposed by the provider are met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long- term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period, subject to the availability criterion. Gross receipts taxes are classified as derived tax revenues and are recognized as revenue when the underlying exchange takes place and the revenues are measurable and are subject to the availability criterion. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. All other revenue items are considered to be measurable and available only when cash is received by the government. Government-wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. - 54- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation(Continued) As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are other charges between the various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Fund Financial Statements The fund financial statements provide information about the District's funds, including its fiduciary funds. Separate statements for each fund category—governmental and fiduciary—are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. The major funds presented in the fund financial statements include the following: The General Fund (11000, 13000) is the District's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Revenues are provided by the District's school tax levy, state equalization and transportation funds, state instructional material allocations, and earnings from investments. Expenditures include all costs associated with the daily operations of the school except for those items included in other funds. The General Fund includes the Pupil Transportation Fund, (13000) which is used to account for transportation distribution received from the New Mexico Public Education Department, which is used to pay for the costs associated with transporting school age children. The CARES Act, ESSER 11 (24308J is used to provide local educational agencies with emergency relief funds to address the impact that COVID-19 has had, and continues to have, on elementary and secondary schools. Authority for creation of this fund is the Education Stabilization Fund, a component of the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, 2021. The Debt Service Fund (41000) is used to accumulate resources for payment of principal and interest due on educational technology bonds. Financing is provided by a special tax levy approved by the voters of the county and assessed by the San Juan County Assessor and collected and remitted to the District by the San Juan County Treasurer. - 55 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation(Continued) Fiduciary funds are used to report assets held in a trustee or agency capacity for others that cannot be used to support the government's own programs. Custodial funds are purely custodial and do not involve measurement of results of operations. The District's fiduciary funds are used to account for the collection and payment of student activities. The government reports the following fiduciary funds: The Custodial Funds account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments and/or other funds. During the course of operations, the District has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and fiduciary funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand, demand deposits and short- term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the District to invest in Certificates of Deposit, obligations of the U.S. Government, and the State Treasurer's Local Government Investment Pool (LGIP). The LGIP operates in accordance with appropriate state laws and regulations. - 56- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Receivables and Payables All receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. In the government-wide and governmental fund financial statements, property taxes are recorded as revenue when levied net of estimated refunds and uncollectable amounts. Property taxes are levied on November 1 based on the assessed value of property as listed on the previous January 1 and are due in two payments by November 10th and April 10th. Property taxes uncollected after December 10th and May 10t'' are considered delinquent and the District may assess penalties and interest. The taxes attach as an enforceable lien on property thirty (30) days thereafter, at which time they become delinquent. Property taxes are collected by San Juan County and remitted monthly to the District. Interfund Activities and Transactions Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting funds and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental funds are netted as part of the reconciliation to the government-wide financial statements. Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers.All other interfund transfers are reported as operating transfers. - 57- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Inventory The District's method of accounting for inventory is the consumption method. Under the consumption approach, governments report inventories they purchase as an asset and defer the recognition of the expenditures until the period in which the inventories actually are consumed. Inventory is valued at cost and consists of expendable supplies held for consumption, USDA commodities and other purchased food and non-food supplies. The cost of purchased food is recorded as an expenditure at the time individual inventory items are consumed. Inventory in the General Fund consist of expendable supplies held for consumption. Inventory in the special revenue funds consists of USDA commodities and other purchased food and non-food supplies. Commodities consumed during the year are reported as revenues and expenditures; unused commodities are reported as inventories. Restricted Assets Certain assets of the District are classified as restricted assets on the statement of net position because their use is limited by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors, grantors, contributors or laws or regulations of other governments. Special restricted asset accounts have been established to account for the sources and uses of these limited use assets as follows: eond debt service accounts — Includes certain proceeds from issuance of bonds, as well as certain resources set aside for the repayment of bonds or capital lease obligations. Capital Assets Capital assets, which include property, plant, and equipment, are reported in the government-wide financial statements. Capital assets are defined by the District's policies as assets with an initial, individual cost of more than $5,000 (amount not rounded) per Section 12-6-10 NMSA 1978 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. The District was a Phase II government for purposes of implementing GASB Statement No. 34; however, the District does not have any infrastructure assets to report. Information Technology Equipment including software is being capitalized and included in furniture, fixtures and equipment in accordance with NMAC 2.20.1.9 C (5). Donated capital assets are recorded at acquisition value at the date of donation. There were no donated assets during the year ended June 30, 2022. - 58- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Construction projects paid for by the Public School Capital Outlay Council are included in the District's capital assets. No interest was included as part of the cost of capital assets under construction. Property, plant, and equipment of the primary government are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings and improvements 25-50 Land improvements 10-20 Furniture and equipment 4-20 Right-to-Use Lease Assets The District has recorded right-to-use lease assets as a result of implementing GASB Statement No. 87. The right-to-use lease assets are initially measured at an amount equal to the initial measurement of the related lease liability. The right-to-use lease assets are amortized on a straight-line basis over the term of the related lease. See note 7 for more information. Deferred Outflows of Resources In addition to assets, the balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, represents a use of net position that applies to a future period and so will not be recognized as an outflow of resources (expenditure) until that time. The District has four types of items that qualify for reporting in this category related to reporting under GASB 68 and four types that related to reporting under GASB 75, which total $120,704,107 and $15,135,194, respectively, in the statement of net position. The amounts are further detailed in note 11 and note 12. These amounts are deferred and recognized as outflows of resources in future periods and will reduce the net pension liability, and net other post-employment benefit liability, respectively, in future periods. - 59- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Deferred Inflows of Resources In addition to liabilities, the balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future periods and so will not be recognized as an inflow of resources (revenue) until that time. Revenue must be susceptible to accrual (measurable and available to finance expenditures of the current fiscal period) to be recognized. If assets are recognized in connection with a transaction, but those assets are not yet available to finance expenditures of the current fiscal period, then the assets must be offset by a corresponding liability for deferred inflows of resources. The District has one type of items, which arises under the modified accrual basis of accounting that qualify for reporting in this category. Accordingly, the item, unavailable revenue - property taxes, is reported only in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The District has recorded $918,766 related to property taxes considered "unavailable." In addition, the District has four types of items present on the statement of net position that qualify for reporting in this category related to reporting under GASB 68 and four types that related to reporting under GASB 75. The deferred inflows of resources total $200,691,288 and $25,733,836, respectively, in the statement of net position, and are further detailed in note 11 and note 12. These amounts are deferred and recognized as inflows of resources in the period that the amounts become available. Accrued Payroll The amount recognized in the fund financial statements represents checks that were held at year end in relation to employee's summer payroll, including the applicable ERB, RHC, Social Security Taxes and Medicare payable. Compensated Absences It is the District's policy to permit employees to accumulate 120 days of earned but unused vacation, which will be paid to employees upon retirement from the District's service. The amount for liability has been reported in the government-wide financial statements. Accumulated sick leave is not payable upon termination and is recorded as expenditures when it is paid. - 60- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources are reported as an expenditure and a fund lability of the government fund that will pay it. In prior years, substantially all of the related expenditures have been liquidated by the general fund. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the government-wide statement of net position. Long-term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Debt issuance costs are expensed as incurred. Lease Liabilities The District has entered into agreements to lease certain buildings and equipment. Lease liabilities qualify as other than short-term leases under GASB Statement No. 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception or, for leases existing prior to the implementation year at the remaining terms of the agreement, using the facts and circumstances available at July 1, 2021. See note 8 for more information. The State of New Mexico has provided the following guidance related to the incremental borrowing rate (IBR), which the District is utilizing. Incremental Lease Term Borrowing Rate (IBR) >1 year to 5 years 0.50% >5 years to 10 years 0.75% >10 years 1.75% Pensions For purposes of ineasuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Educational Retirement Board (ERB) and additions to/deductions from ERB's fiduciary net position have been determined on the same basis as they are reported by ERB, on the economic resources measurement focus and accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. - 61 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Postemployment Benefits Other Than Pension (OPEBJ For purposes of ineasuring the post-employment liability, deferred outflows of resources and deferred inflows of resources related to post-employment, and post-employment expense, information about the fiduciary net position of the Retiree Health Care Act (RHCA) and additions to/deductions from RHCA's fiduciary net position have been determined on the same basis as they are reported by RHCA, on the economic resources measurement focus and accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Fund Balance Classification Policies and Procedures Fund ealances The District has implemented GASB Statement No. 54 and has defined the various categories reported in fund balance. For committed fund balance,the District's highest level of decision-making authority is the Board of Education. The formal action that is required to be taken to establish a fund balance commitment is a resolution of the Board of Education. For assigned fund balance, the Board of Education or an official or body to which the School Board of Education delegates the authority is authorized to assign amounts to a specific purpose. The authorization policy is that in governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. For the classification of fund balances, the District considers restricted or unrestricted amounts to have been spent when an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available. Also for the classification of fund balances, the District considers committed, assigned, or unassigned amounts to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Nonspendable Fund Balance-At June 30, 2022, the District had nonspendable fund balance categorized in the governmental funds balance sheet in the amount of$453,076 as detailed on in note 16. Restricted and Committed Fund Balance - At June 30, 2022, the District has presented restricted fund balance on the governmental funds balance sheet in the amount of $26,816,663 for various District operations as restricted by enabling legislation. The District has also presented committed fund balance on the governmental funds balance sheet in the amount of $5,635,964. The details of these fund balance items are located on the governmental funds balance sheet as detailed on note 16. - 62 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Net Position Equity is classified as net position and displayed in three components: Net investment in capital assets - Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. The District includes unspent debt proceeds in the amount of$4,263,444 in the calculation of net investment in capital assets in the governmental activities. Restricted Net Position - Net position is reported as restricted when constraints are placed on the use either by: (1) external groups such as creditors, grantors, contributors, or laws or regulation of other governments; or (2) law through constitutional provisions or enabling legislation. Descriptions for the related restrictions for net position restricted for "special revenue, capital projects, and debt service" are described on pages 55-56 and 116-123. Unrestricted Net Position - Net position that does not meet the definition of "Restricted" or "Net Investment in Capital Assets." Revenues and Expenditures/Expenses A school district's program costs are determined through the use of various formulas using 'program units' which take into consideration (1) early childhood education; (2) basic education; (3) special education; (4) bilingual-multicultural education; and (5) size, etc. Program revenues included in the statement of activities are derived directly from the program itself or from parties outside the District, as a whole; program revenues reduce the cost of the function to be financed from the District's general revenues. Program revenues are categorized as (a) charges for services, which include revenues collected for fees and use of District facilities, etc., (b) program-specific operating grants, which include revenues received from state and federal sources, such as the grants,to be used as specified within each program grant agreement, and (c) program-specific capital grants and contributions, which include revenues from state and federal sources to be used for capital projects. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes and state equalization guarantee. - 63 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) The District reports all direct expenses by function in the statement of activities. Direct expenses are those that are clearly identifiable with a function. The District currently employs the indirect cost allocation systems, which was determined by NM PED to be 2.42% at June 30, 2022. Depreciation expense is specifically identified by function and included in the direct expense of each function. Interest on general long-term debt is considered an indirect expense and is reported separately on the statement of activities. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred, all other grant requirements have been met and the availability criterion have been met. State Equalization Guarantee - School districts in the State of New Mexico receive a 'state equalization guarantee distribution,' which is defined as "that amount of money distributed to each school district to insure that the school district's operating revenue, including its local and federal revenues as defined (in Chapter 22, Section 825, NMSA 1978) is at least equal to the school district's program costs." Payment is made from the public school fund under the authority of the Director of Public School Finance. The District received $93,515,835 in state equalization guarantee distributions during the year ended June 30, 2022. Tax Revenues-The District receives mill levy and ad-valorem tax revenues primarily for debt service and capital outlay purposes. Property taxes are assessed on January 1st of each year and are payable in two equal installments, on November 10th of the year in which the tax bill is prepared and April 10th of the following year with the levies becoming delinquent 30 days (one month) thereafter. The District recognizes tax revenues in the period for which they are levied in the government-wide financial statements. The District records only the portion of the taxes considered 'measurable' and `available' in the governmental fund financial statements. The District recognized $14,371,690 in tax revenues in the government-wide financial statements during the year ended June 30, 2022. Descriptions of the individual debt service and capital outlay funds contained in these financial statements include information regarding the authority for the collection and use of these taxes. Federal Impact Aid — The District also receives Federal Impact Aid in lieu of property taxes for the presumed loss of property taxes that results from the federally owned land that lie within the District's boundaries but are not subject to property taxes. The District received $219,931 in Federal Impact Aid for the year ended June 30, 2022. - 64- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) Transportation Distribution - School districts in the State of New Mexico receive student transportation distributions. The transportation distribution is allocated to each school district in accordance with formulas developed by the State Transportation Director and the Director of Public School Finance.The funds shall be used only for the purpose of making payments to each school district for the to-and-from school transportation costs of students in grades K through 12 attending public school within the school district.The District received$3,016,861 in transportation distributions during the year ended June 30, 2022. Instructional Materials-The Public Education Department (Department) receives federal mineral leasing funds from which it makes annual allocations to the various school districts for the purchase of educational materials. Of each allocation, fifty percent is restricted to the requisition of materials listed in the State Board of Education "State Adopted Instructional Material" list, while fifty percent of each allocation is available for purchases directly from vendors. No allocations received from the State for the year ended June 30, 2022. SB-9 State Match - The Director shall distribute to any school district that has imposed a tax under the Public School Capital Improvements Act (22-25-1 to 22-25-10 NMSA 1978) an amount from the public school capital improvements fund that is equal to the amount by which the revenue estimated to be received from the imposed tax as specified in Subsection B of Section 22-25-3 NMSA 1978, assuming a one hundred percent collection rate, is less than an amount calculated by multiplying the product obtained by the rate imposed in the District under the Public School Capital Improvements Act. The distribution shall be made by December 1 of each year that the tax is imposed in accordance with Section 22-25-3 NMSA 1978. However, in the event that sufficient funds are not available in the public school capital improvement funds to make the state distribution provided for in this section, the dollar per program unit figure shall be reduced as necessary. The District did not receive any state SB-9 matching during the year ended June 30, 2022. Public School Capital Outlay -The public school capital outlay fund was created under the provisions of Chapter 22, Article 24, NMSA 1978. The money in the fund may be used for: capital expenditures deemed by the public school capital outlay council to be necessary for an adequate educational program per Section 22-24-4(B); core administrative functions of the public school facilities authority and for project management expenses upon approval of the council per Section 22-24-4(G); and for the purpose of demolishing abandoned school district facilities, upon application by a school district to the council, per Section 22-24-4(L). Money in the fund shall be disbursed by warrant of the Department of Finance and Administration on vouchers signed by the Secretary of Finance and Administration following certification by the council that the application has been approved. - 65 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity(Continued) The District received$169,558 of Public School Capital Outlay matching during the year ended June 30,2022. Federal Grants - The District receives revenues from various Federal departments (both direct and indirect), which are legally restricted to expenditures for specific purposes.These programs are reported as Special Revenue Funds. Each program operates under its own budget, which has been approved by the Federal Department or the flow-through agency (usually the New Mexico Public Education Department). The various budgets are approved by the local School Board and the New Mexico Public Education Department. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant estimates for the District are management's estimate of depreciation on assets over their estimated useful lives, net pension liability and the related deferred inflows and outflows of resources, the net other post-employment benefits liabilities and the related deferred inflows and outflows of resources, and the current portion of accrued compensated absences. SubsequentEvents Management has evaluated subsequent events through the date that the financial statements were available to be issued, November 15, 2022. See note 18 for relevant disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements. - 66- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Recently Issued and Implemented Accounting Pronouncements The District has implemented GASB Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. The implementation of this Statement had a material impact on the District's reporting in the current fiscal year. The District also implemented GASB Statement No. 89, Accounting for Interest Cost Incurred eefore the End of a Construction Period. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. The implementation of this Statement had no impact on the District's reporting in the current fiscal year. The District implemented GASB Statement No. 92, Omnibus 2020. The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. The implementation of this Statement had no impact on the District's reporting in the current fiscal year. The District implemented GASB Statement No. 93, Replacement of Interbank Offered Rates. The exceptions to the existing provisions for hedge accounting termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting ramifications of replacing IBORs with other reference rates. The reliability and relevance of reported information will be maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or replace agreements to replace an IBOR. The implementation of this Statement had no impact on the District's reporting in the current fiscal year. - 67- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Recently Issued and Implemented Accounting Pronouncements(Continued) The Governmental Accounting Standards Board has issued statements that will become effective in future years.These statements are as follows: In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. (This new effective date reflects the immediate implementation of GASB Statement No. 95.) In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government's financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government's PPPs and evaluate a government's future obligations and assets resulting from PPPs. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The requirements of this Statement will provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022. Earlier application is encouraged. - 68- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Recently Issued and Implemented Accounting Pronouncements(Continued) In May 2022, GASB issued Statement No. 99, Omnibus 2022. The requirements of this Statement establishes or amends accounting and financial reporting requirements for specific issues related to financial guarantees, derivative instruments, leases, public-public and public-private partnerships (PPPs), subscription-based information technology arrangements (SBITAs), the transition from the London Interbank Offered Rate (LIBOR), the Supplemental Nutrition Assistance Program (SNAP) (formerly, food stamps), nonmonetary transactions, pledges of future revenues, the focus of government-wide financial statements, and terminology. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. In June 2022, GASB issued Statement No. 100, Accounting changes and Error Corrections. The requirements of this Statement will enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2023. Earlier application is encouraged. In June 2022, GASB issued Statement No. 101, Compensated Absences. The requirements of this Statement is to better meet the information needs of the financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this Statement are effective fort reporting periods beginning after December 15, 2023. Earlier applications is encouraged. The District is evaluating the requirements of the above statements and the impact on reporting. NOTE 2: CHANGE IN ACCOUNTING PRINCIPLE In fiscal year 2022, the District implemented GASB Statement No. 87, Leases. The District was required to record right-of-use assets and lease liability in the amount of $354,996 in the government-wide financial statement as detailed in notes 7 and 8. There was no impact on fund balance or net position. - 69- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 3:STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are prepared by management and are approved by the local Board of Education and the School Budget and Planning Unit of the Public Education Department. Auxiliary student activity accounts are also budgeted. These budgets are prepared on the modified cash basis with payroll or held checks being accrued and expensed, therefore, fund balances on the budget statements do not reconcile to cash due to the District's accrued payroll, which is presented on the accrual basis. Because the budget process in the State of New Mexico requires that the beginning cash balance be appropriated in the budget of the subsequent fiscal year, such appropriated balance is legally restricted and is therefore presented as restricted fund balance. Actual expenditures may not exceed the budget at the function (or "series") level. Budgets may be amended in two ways. If a budget transfer is necessary within a major category called a "series" this may be accomplished with only local Board of Education approval. If a transfer between "series" or a budget increase is required, approval must also be obtained from Public School Finance Division. The budgetary information presented in these financial statements has been amended in accordance with the above procedures. The District follows these procedures in establishing the budgetary data reflected in the financial statements: 1. In April or May, the local school board submits to the District Budget Planning Unit (DBPU) of the New Mexico Public Education Department (PED) a proposed operating budget for the ensuing fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. All budgets are submitted to the State of New Mexico Public Education Department. 2. In May or June of each year,the proposed "operating" budget will be reviewed and approved by the DBPU and certified and approved by the local school board at a public hearing of which notice has been published by the local school board which fixes the estimated budget for the school district for the ensuing fiscal year. 3. The school board meeting is open for the general public unless a closed meeting has been called. 4. The "operating" budget will be used by the District until they have been notified that the budget has been approved by the DBPU and the local school board. The budget shall be integrated formally into the accounting system. Encumbrances shall be used as an element of control and shall be integrated into the budget system. - 70- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 3:STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information(Continued) 5. The District shall make corrections, revisions and amendments to the estimated budgets fixed by the local school board to recognize actual cash balances and carryover funds, if any. These adjustments shall be reviewed and approved by the DBPU. 6. The superintendent is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the school board and the State of New Mexico Public Education Department. 7. Budget change requests are processed in accordance with Supplement 1 (Budget Preparation and Maintenance) of the Manual of Procedures Public School Accounting and Budgeting. Such changes are initiated by the school district and approved by the DBPU. 8. Legal budget control for expenditures is by function. 9. Appropriations lapse at fiscal year end. Funds unused during the fiscal year may be carried over into the next fiscal year by budgeting those in the subsequent fiscal year's budget. The budget schedules included in the accompanying financial statements reflect the original budget and the final budget. 10. Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds. The Board of Education may approve amendments to the appropriated budget, which are required when a change is made affecting budgeted ending fund balance. New Mexico Administrative Code 6.20.2.9 prohibits the District from exceeding budgetary control at the function level. - 71 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 3:STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information(Continued) The appropriated budget for the year ended June 30, 2022, was properly amended by the District's Board of Education throughout the year. These amendments resulted in the following changes: Excess(deficiency)of Revenues over Expenditures Original Budget Final Budget Budgetedfunds General Fund - 11000, 13000 $ (7,672,941) $ (7,784,221) CARES Act, ESSER II -24308 (8,923,902) (8,443,235) Debt Service-41000 (8,022,500) (8,844,001) Nonmajor governmental funds (10,680,601) (17,947,601) The District is required to balance its budgets each year. Accordingly, amounts that are excess or deficient are presented as changes in cash designated for expenditures, not as an excess or deficiency of revenues over expenditures. The accompanying statements of revenues, expenditures and changes in fund balance — budget (non- GAAP budgetary basis) and actual present comparisons of the legally adopted budget with actual data on a budgetary basis. Since accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) a reconciliation of resultant basis, perspective, equity and timing differences in the excess (deficiency) of revenues and other sources of financial resources for the year ended June 30, 2022 is presented. Reconciliations between the non- GAAP budgetary basis amounts and the financial statements on the GAAP basis by fund can be found on each individual budgetary statement. NOTE 4: DEPOSITS AND INVESTMENTS Section 22-8-40, NMSA 1978 authorizes the investment of District funds in a wide variety of instruments including certificates of deposit and other similar obligations, state investment pool, money market accounts, and United States Government obligations. All invested funds of the District properly followed State investment requirements as of June 30, 2022. - 72 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) Deposits of funds may be made in interest or non-interest bearing checking accounts in one or more banks or savings and loan associations within the geographical boundaries of the District. Deposits may be made to the extent that they are insured by an agency of the United States or collateralized as required by statute. The financial institution must provide pledged collateral for 50% of the deposit amount in excess of the deposit insurance. The rate of interest in non-demand interest-bearing accounts shall be set by the State Board of Finance, but in no case shall the rate of interest be less than one hundred percent of the asked price on United States treasury bills of the same maturity on the day of deposit. Excess funds may be temporarily invested in securities which are issued by the State or by the United States government, or by their departments or agencies, and which are either direct obligations of the State or the United States or are backed by the full faith and credit of those governments. The District's accounts at an insured depository institution, including all noninterest-bearing transaction accounts,will be insured by the FDIC up to the standard maximum deposit insurance amount of $250,000 for all deposit accounts out of state and up to $250,000 for all time and saving accounts plus up to $250,000 for all demand deposit accounts held at a single institution in state. Custodial Credit Risk— Deposits. Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk, other than following state statutes as put forth in the Public Money Act (Section 6-10-1 to 6- 10-63, NMSA 1978). At June 30, 2022, $29,135,894 of the District's bank balances of $29,668,599 was exposed to custodial credit risk; $14,382,855 was uninsured and collateralized by collateral held by the pledging bank's trust department, but not in the District's name. $14,753,039 of the District's deposits were uninsured and uncollateralized at June 30, 2022. - 73 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) Bank of the Citizen Bank Wells Fargo Southwest of Farmington Bank Total Amount of deposits $ 357,822 $ 32,705 $ 29,278,072 $ 29,668,599 FDIC coverage (250,000) (32,705) (250,000) (532,705) Total uninsured public funds 107,822 - 29,028,072 29,135,894 Collateralized by securities held by pledging institutions or by its trust department or agent in other than the District's name 107,822 - 14,275,033 14,382,855 Uninsured and uncollateralized $ - $ - $ 14,753,039 $ 14,753,039 Collateral requirement (50%) $ 53,911 $ - $ 14,514,036 $ 14,567,947 Pledged securities 375,000 2,464,637 14,275,033 17,114,670 Over(under) collateralized $ 321,089 $ 2,464,637 $ (239,003) $ 2,546,723 The collateral pledged is listed on page 236 of this report. The types of collateral allowed are limited to direct obligations of the United States Government, all bonds issued by any agency, District or political subdivision of the State of New Mexico, securities, including student loans, that are guaranteed by the United States or the State of New Mexico, revenue bonds that are underwritten by a member of the financial industry regulatory authority, known as FINRA, and are rated BAA or above by a nationally recognized bond rating service, or letter of credit issued by a federal home loan bank. - 74- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) The District utilized internal pooled accounts for some of their programs and funds. Negative cash balances in individual funds that were part of the pooled accounts were reclassified as due to/from account in the combining balance sheet as of June 30, 2022. Funds 24101 through 24355 are federal funds, 25131 through 28211 are nonfederal funds. The following individual funds had negative cash balances as of June 30, 2022: 24101 Title I-ESEA $ 278,736 24106 Entitlement IDEA-B 162,139 24109 PreschoollDEA-B 1 24115 IDEA-B Private Schools Share 117 24118 Fresh Fruit and Vegetables 88,241 24119 21st Century Community Learning Centers 198,970 24154 Teacher/Principal Training&Recruiting 267,748 24174 Carl D Perkin Secondary-Current 1,306 24176 Carl D. Perkins Secondary-Redistribution 617 24188 AMP Advancing Measurement at PED 234,026 24189 Student Supp Academic Title IV 108,951 24190 Title I-Comprehensive Support and Improvement(CSI) 15 24308 CARES Act, ESSER II 2,122,715 24309 CARES Act, ESSER-Social Emotional Learning 10,694 24316 CARES Act, ESSER II-Air Quality 69,007 24330 ARP Act, ESSER III 501,609 24350 ARP Act, ESSER III-Homeless Children and Youth Retention Stipend 11,079 24355 ARP II-Emergency Relief Fund Homeless Children and Youth 2,589 25131 Johnson 0'Malley 250,592 25184 Indian ED Formula Grant 116,442 27107 27107 GOB Library 50,307 27149 PreK Initiative 203,608 27150 Indian Education Act 20,387 27178 School Buses 1,124,561 27202 Open Sci Ed Expansion Initiative 10,102 27405 Public School Bus Cameras 27,489 27407 Family Income Index 149,625 27502 Career Technical Education Program(Pilot) 7,468 28211 NM Schools Covid-19 Testing Program DOH 39,360 Total $ 6,058,501 - 75 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) Reconciliation of Cash, Cash Equivalents, and Investments Cash and cash equivalents per statement of net position $ 9,519,711 Restricted cash and cash equivalents per statement of net position 16,435,577 Investments per statement of net position 3,183,722 Restricted investments statement of net position 781,126 Cash and cash equivalents per statement of fiduciary net position 460,062 Total cash, cash equivalents and investments 30,380,198 Add outstanding checks 5,527,057 Less deposits in transit (2,382,962) Less NMFA cash (682,109) Less NMFA investments (3,173,585) Bank balance of deposits $ 29,668,599 The District has presented commercial checking accounts with interest (public funds) in the amount of $791,263 as investments in the statement of net position; however these are classified as deposits for disclosure purposes. Investments The District's investments at June 30, 2022, include the following: Investment Investment Type Fair Value Maturity U.S.Treasury money market mutual funds $ 3,173,585 49 Days Total investments $ 3,173,585 Weighted Average Investment Type Maturities(F) Fair Value Rating U.S.Treasury money market mutual funds 49 Days $ 3,173,585 AAAm * Based on Standard & Poor's rating Interest Rate Risk — Investments. The District does not have a formal policy limiting investment maturities that would help manage its exposure to fair value losses from increasing interest rates. - 76- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) Investments(Continued) Concentration Credit Risk — Investments. For an investment, concentration credit risk is when any one issuer is 5% or more of the investment portfolio of the District. The District currently has 100% in money market mutual funds. Since the District only purchases investment with high credit ratings, the additional concentration is not viewed to be an additional risk by the District. The District's policy related to concentration credit risk is to comply with the state statute as put forth in the Public Money Act(Section 6-10-1 to 6-10-63, NMSA 1978). Fair Value Measurement The fair value framework uses a hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Authority has the ability to access. Level 2 Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets. • Quoted prices for identical or similar assets or liabilities in inactive markets. • Inputs other than quoted prices that are observable for the asset or liability. • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. See above for discussion of valuation methodologies used to measure fair value of investments. - 77- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 4: DEPOSITS AND INVESTMENTS(Continued) Fair Value Measurement(Continued) The valuation methodologies described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Authority believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The District maintained a balance of$3,173,585 in the U.S. Treasury money market mutual funds at year end which required fair value disclosure. Levell Level2 Level3 Total Investments by fair value level U.S.Treasury money market mutual funds $ 3,173,585 $ - $ - $ 3,173,585 Total investments $ 3,173,585 $ - $ - $ 3,173,585 NOTE 5:ACCOUNTS RECEIVABLE Accounts receivable as of June 30, 2022, are as follows: General Fund CARES Act, ESSER II Debt Service 11000, 13000, 14000 24308 41000 Property taxes $ 43,579 $ - $ 542,724 Intergovernmental Federal sources - 2,122,764 - State sources - - - Totals $ 43,579 $ 2,122,764 $ 542,724 Nonmajor Governmental Funds Total Property taxes $ 450,032 $ 1,036,335 Intergovernmental Federal sources 4,002,847 6,125,611 State sources 1,618,212 1,618,212 Totals $ 6,071,091 $ 8,780,158 - 78- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 5:ACCOUNTS RECEIVABLE (Continued) The above receivables are deemed 100%collectible. In accordance with GASB Statement No. 33, property tax revenues in the amount of$918,766 that was not collected within the period of availability have been reclassified as deferred inflows for unavailable revenue in the governmental fund financial statements. - 79- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 6: INTERFUND RECEIVABLES AND PAYABLES The District records temporary interfund receivables and payables to enable the fund to operate until grant monies are received. The composition of interfund balances during the year ended June 30, 2022 is as follows: Due From Due To Major Funds Fund 11000 General $ 6,058,501 $ - Fund 24308 CARES Act, ESSER II - 2,122,715 Non-major Funds Fund 24101 Title I -ESEA - 278,736 Fund 24106 Entitlement IDEA-B - 162,139 Fund 24109 Preschool IDEA-B - 1 Fund 24115 IDEA-B Private Schools Share - 117 Fund 24118 Fresh Fruit and Vegetables - 88,241 Fund 24119 21st Century Community Learning Centers - 198,970 Fund 24154 Teacher/Principal Training& Recruiting - 267,748 Fund 24174 Carl D Perkins Secondary-Current - 1,306 Fund 24176 Carl D Perkins Secondary- Redistribution - 617 Fund 24188 AMP Advancing Measurement at PED - 234,026 Fund 24189 Student Supp Academic Achievement Title IV - 108,951 Fund 24190 Title I -Comprehensive Support and Improvement(CSI) - 15 Fund 24309 CARES Act, ESSER Social Emotional Learning - 10,694 Fund 24316 CARES Act, ESSER II Air Quality - 69,007 Fund 24330 ARP Act, Esser III - 501,609 Fund 24350 ARP Act, ESSER III -Homeless Children and Youth Retention Stipend - 11,079 Fund 24355 ARP II-Emergency Relief Fund Homeless Children and Youth - 2,589 Fund 251311ohnson O'Malley - 250,592 Fund 25184 Indian ED Formula Grant - 116,442 Fund 27107 27107 GOB Library - 50,307 Fund 27149 PreK Initiative - 203,608 Fund 27150 Indian Education Act - 20,387 Fund 27178 School Buses - 1,124,561 Fund 27202 Open Sci Ed Expansion Initiative - 10,102 Fund 27405 Public School Bus Cameras - 27,489 Fund 27407 Family Income Index - 149,625 Fund 27502 Career Technical Education Program (Pilot) - 7,468 Fund 28211 NM Schools Covid-19 Testing Program DOH - 39,360 $ 6,058,501 $ 6,058,501 All interfund balance are intended to be repaid within one year. -80- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 7: CAPITAL ASSETS A summary of capital assets and changes occurring during the year ended June 30, 2022, follows. Land and construction in progress are not subject to depreciation. Balance Balance June 30,2021 Balance Governmental activities June 30,2021 (As restated)* Additions Deletions June 30,2022 Capital assets not being Land $ 4,142,761 $ - $ - $ - $ 4,142,761 Construction in progress 7,760,466 - 1,151,330 (7,910,411) 1,001,385 Total capital assets not being depreciated/amortized 11,903,227 - 1,151,330 (7,910,411) 5,144,146 Capital assets being depreciated/amortized Buildings and improvements 314,688,421 - 7,910,411 (393,715) 322,205,117 Land improvements 4,448,663 - - - 4,448,663 Furniture and equipment 13,725,529 - 1,659,082 (775,564) 14,609,047 ROU-lease asset-equipment - 130,651 - (130,651) - ROU-lease asset-buildings and improvements - 224,345 - - 224,345 Total capital assets being depreciated/amortized 332,862,613 354,996 9,569,493 (1,299,930) 341,487,172 Less accumulated depreciation/amortization Buildings and improvements (106,135,224) - (6,167,992) 137,800 (112,165,416) Land improvements (4,429,242) - (2,693) - (4,431,935) Furniture and equipment (9,428,676) - (1,002,711) 775,564 (9,655,823) ROU-lease asset-equipment - - (130,651) 130,651 - ROU-lease asset-buildings and improvements - - (179,476) - (179,476) Total accumulated depreciation/amortization (119,993,142) - (7,483,523) 1,044,015 (126,432,650) Total capital assets being depreciated, net of depreciation/amortization 212,869,471 354,996 2,085,970 (255,915) 215,054,522 Total capital assets,net of depreciation/amortization $ 224,772,698 $ 354,996 $ 3,237,300 $ (8,166,326) $ 220,198,668 *The notes require a restatement due to the implementation of GASB 87. There is no impact on the financial statements. -81 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 7: CAPITAL ASSETS(Continued) Depreciation expense for the year ended June 30, 2022 was charged to the following functions. Governmental activities Instruction $ 3,608,880 Support services-students 714,842 Support services-instruction 73,794 Support services-general administration 124,540 Support services-school administration 343,374 Central services 75,610 Operation and maintenance of plant 968,565 Student transportation 905,945 Food service operations 357,846 Total $ 7,173,396 Amortization expense for the year ended June 30, 2022 was charged to the instruction function in the amount of$310,127. NOTE 8: LONG-TERM LIABILITIES General obligation bonds are secured by and payable solely from the Debt Service Fund. General obligation bonds are direct obligations and pledge the full faith and credit of the District. These bonds are issued with varying terms and varying amounts of principal maturing each year. All general obligation bonds as of June 30, 2022 are for governmental activities. -82 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 8: LONG-TERM LIABILITIES(Continued) Bonds outstanding at June 30, 2022 are comprised of the following. Series 2014 Series 2015 Series Tech 2016 Originallssue $ 23,500,000 $ 35,000,000 $ 6,700,000 Principal September 1 September 1 September 1 Interest March 1 March 1 September 1 September 1 September 1 Interest Rates 2.00-3.00% 3.00-5.00% 1.06-1.34% Maturity Date September 2027 September 2033 September 2020 Series 2017A Series 2017B Series 2018 Ed Tech Originallssue $ 7,100,000 $ 2,370,000 $ 5,000,000 Principal September 1 September 1 September 1 Interest March 1 March 1 March 1 September 1 September 1 September 1 Interest Rates 1.16-3.14% 0.86-1.19% 1.76-2.38% Maturity Date September 2032 September 2021 September 2022 Series 2018 Series 2018A Series 2020 Originallssue $ 4,000,000 $ 11,000,000 $ 3,900,000 Principal September 1 September 1 September 1 Interest March 1 March 1 March 1 September 1 September 1 September 1 Interest Rates 1.76-3.27% 2.14-3.41% 0.49-1.82% Maturity Date September 2033 September 2033 September 2035 Series 2020A Series 2022 Originallssue $ 7,510,000 $ 2,000,000 Principal September 1 September 1 Interest March 1 March 1 September 1 September 1 Interest Rates 1.00-1.27% 0.92-2.76% Maturity Date September 2024 September 2037 -83 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 8: LONG-TERM LIABILITIES(Continued) During the year ended June 30, 2022, the following changes occurred in the liabilities reported in the government-wide statement of net position: Balance Balance June 30,2021 Balance Due Within June 30,2021 (As restated)* Additions Retirements June 30,2022 One Year General Obligation Bonds $76,495,000 $ - $ 2,000,000 $6,885,000 $71,610,000 $ 6,120,000 Bond Premium,net 2,082,093 - - 169,908 1,912,185 169,908 Leases - 354,996 - 310,034 44,962 44,962 Compensated absences 517,667 - 613,350 469,287 661,730 469,287 Total long-term liabilities $79,094,760 $ 354,996 $ 2,613,350 $7,834,229 $74,228,877 $ 6,804,157 *The notes require a restatement due to the implementation of GASB 87.There is no impact on the financial statements. The annual requirements to amortize the general obligation bonds outstanding as of June 30, 2022, including interest payments, are as follows: Total Debt Fiscal Year Ending Principal Interest Service 2023 $ 6,120,000 $ 2,081,480 $ 8,201,480 2024 5,370,000 1,951,808 7,321,808 2025 5,385,000 1,822,184 7,207,184 2026 5,410,000 1,657,829 7,067,829 2027 6,225,000 1,463,395 7,688,395 2028-2032 29,890,000 4,223,561 34,113,561 2033-2037 13,050,000 470,622 13,520,622 2038 160,000 2,206 162,206 $ 71,610,000 $ 13,673,085 $ 85,283,085 Leases—The District has entered into various lease agreements for a building and equipment. The lease agreements have been recorded at the present value of future lease payments as of the date of their inception or, for leases existing prior to the implementation year, at the remaining terms of the agreement, using the facts and circumstances available at July 1, 2021. -84- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 8: LONG-TERM LIABILITIES(Continued) Lease liabilities and right-of-use assets were composed of the following as of June 30, 2022: Effective Monthly Borrowing Lease Date End Date Payments Rate Liability Equipment 7/1/2021 6/29/2022 $ 10,913 0.5% $ - Buildings 7/1/2021 10/31/2022 15,000 0.5% 44,962 $ 44,962 The future minimum payments on those leases as of June 30, 2022 were as follows: Year Ending June 30, Principal Interest Total 2023 $ 44,962 $ 37 $ 44,999 Totals $ 44,962 $ 37 $ 44,999 Compensated Absences—Administrative employees of the District are able to accrue a limited amount of vacation and other compensatory time during the year. During fiscal year June 30, 2022, compensated absences increased $144,063 from the prior year accrual. In prior years, the general fund was typically used to liquidate such long-term liabilities. See note 1 for more details. NOTE 9: RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The District purchases separate commercial insurance coverage for workers' compensation, liability, and property damage. Coverage for automobile claims are limited to the NMSA Tort Claims Act on a per occurrence basis. Coverage for general liability claims is subject to the NMSA Tort Claims Act on a per occurrence basis. The commercial insurance carried is a claims incurred policy for which the District is covered for claims originating against the District during the policy period. The amount of coverage is dependent on the date of the liability-imposing event. The District has maintained continuous coverage and does not believe it has any exposure to events which occurred prior to the year ended June 30, 2022. -85 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 10: OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES Generally accepted accounting principles require disclosures of certain information concerning individual funds including: A. Deficit fund balance of individual funds. The District had the following funds that maintained a deficit fund balance at June 30, 2022: Nonmajor Funds Fund 24115 IDEA-B Private Schools Share $ 117 Fund 24119 21st Century Community Learning Centers 2,367 Fund 24154 Teacher/Principal Training& Recruiting 125,695 Fund 24190 Title I -Comprehensive Support and Improvement(CSI) 865 Fund 25131 Johnson O'Malley 245,777 Fund 25248 Native American Program 3,347 Fund 27107 27107 GOB Library 8,234 Fund 27149 PreK Initiative 10,154 Fund 27150 Indian Education Act 6,391 Fund 28211 NM Schools Covid-19 Testing Program DOH 150 Total governmental funds $ 403,097 B. Excess of expenditures over appropriations. The District had the following fund functions with excess of expenditures over appropriations for the year ended June 30, 2022. Nonmajor Funds SB-9 Capital Projects Fund - Local -31701-support services $ 43 Total governmental funds $ 43 C. Designated cash appropriations in excess of available balance. The District following funds has designated cash appropriations in excess of available balances for the year ended June 30, 2022. Cash Beginning Year Appropriation in Cash&AR Excess of Designated Cash Available Available Fund 24308 CARES Act, ESSER II $ 8,443,235 $ 170,238 $ (8,272,997) -86- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD General lnformation about the Pension Plan Plan description - The New Mexico Educational Retirement Act ("ERA") was enacted in 1957. The act created the Educational Employees Retirement Plan (Plan) and, to administer it, the New Mexico Educational Retirement Board (NMERB). The Plan is included in NMERB's annual comprehensive financial report. The report can be found on NMERB's Web site at https://www.nmerb.or�/ Annual reports.html. The Plan is a cost-sharing, multiple-employer pension plan established to provide retirement and disability benefits for certified teachers and other employees of the state's public schools, institutions of higher learning, and state agencies providing educational programs. Additional tenets of the ERA can be found in Section 22-11-1 through 22-11-52, NMSA 1978, as amended. The Plan is a pension trust fund of the State of New Mexico. The ERA assigns the authority to establish and amend benefit provisions to a seven-member Board of Trustees (Board); the state legislature has the authority to set or amend contribution rates and other terms of the Plan. NMERB is self-funded through investment income and educational employer contributions. The Plan does not receive General Fund Appropriations from the State of New Mexico. All accumulated assets are held by the Plan in trust to pay benefits, including refunds of contributions as defined in the terms of the Plan. Eligibility for membership in the Plan is a condition of employment, as defined in Section 22-11-2, NMSA 1978. Employees of public schools, universities, colleges, junior colleges, technical-vocational institutions, state special schools, charter schools, and state agencies providing an educational program, who are employed more than 25% of a full-time equivalency, are required to be members of the Plan, unless specifically excluded. eenefits provided- A member's retirement benefit is determined by a formula which includes three component parts: (1) the member's final average salary (FAS), (2) the number of years of service credit, and (3) a 0.0235 multiplier. The FAS is the average of the member's salaries for the last five years of service or any other consecutive five-year period, whichever is greater. A brief summary of Plan coverage provisions follows: For members employed before July 1, 2010, a member is eligible to retire when one of the following events occurs: the member's age and earned service credit add up to the sum or 75 or more; the member is at least sixty-five years of age and has five or more years of earned service credit; or the member has service credit totaling 25 years or more. -87- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) General lnformation about the Pension Plan(Continued) Chapter 288, Laws of 2009 changed the eligibility requirements for new members first employed on or after July 1, 2010 and before July 1, 2013. The eligibility for a member who either becomes a new member on or after July 1, 2010, and before July 1, 2013, or at any time prior to that date w a s refunded all member contributions and then became, or becomes, reemployed after July 1, 2010 is as follows: the member's age and earned service credit add up to the sum of 80 or more; the member is at least sixty-seven years of age and has five or more years of earned service credit; or the member has service credit totaling 30 years or more. Section 2-11-23.2, NMSA 1978 added eligibility requirements for new members who were first employed on or after July 1, 2013, or who were employed before July 1, 2013 but terminated employment and subsequently withdrew all contributions and returned to work for an NMERB employer on or after July 1, 2013. These members must meet one of the following requirements: the member's minimum age is 55 and has earned 30 or more years of service credit; the member's age and earned service credit add up to the sum of 80 or more; or the member's age is 67 and has earned five or more years of service credit. Section 22-11-23.3, NMSA 1978 added eligibility requirements for new members who were first employed on or after July 1, 2019, or who were employed before July 1, 2019, but terminated employment and subsequently withdrew all contributions and returned to work for an NMERB employer on or after July 1, 2019. These members must meet one of the following requirements: the member is any age and has thirty or more years of earned service credit; or the member is at least 67 years of age and has 5 or more years of earned service credit; or the sum of the member's age and years of earned service credit equals at least eighty. The benefit is paid as a monthly life annuity with a guarantee that, if the payments made do not exceed the member's accumulated contributions plus accumulated interest, determined as of the date of retirement, the balance will be paid in a lump sum to the member's surviving beneficiary. There are three benefit options available: single life annuity; single life annuity monthly benefit reduced to provide for a 100% survivor's benefit; or single life annuity monthly benefit is reduced to provide for a SO%survivor's benefit. As of July 1, 2013,for current and future retirees the COLA is immediately reduced until the Plan is 100% funded.The COLA reduction is based on the median retirement benefit of all retirees excluding disability retirements. Retirees with benefits at or below the median and with 25 or more years of service credit will have a 10.00% COLA reduction; their average COLA will be 1.50%. Once the funding is greater than 90%, the COLA reductions will decrease. The retirees with benefits at or below the median and with 25 or more years of service credit will have a 5.00%COLA reduction; their average COLA will be 1.70%. Members on disability retirement are entitled to a COLA commencing on July 1 of the third full year following disability retirement. A member on regular retirement who can prove retirement because of a disability may qualify for a COLA beginning July 1 in the third full year of retirement. -88- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) General lnformation about the Pension Plan(Continued) A member is eligible for a disability benefit provided (a) he or she has credit for at least 10 years of service, and (b) the disability is approved by ERB. The monthly benefit is equal to 2% of FAS times years of service, but not less than the smaller of (a) one-third of FAS or (b) 2% of FAS times year of service projected to age 60. The disability benefit commences immediately upon the member's retirement. Disability benefits are payable as a monthly life annuity, with a guarantee that, if the payments made do not exceed the member's accumulated contributions, determined as of the date of retirement, the balance will be paid in a lump sum to the member's surviving beneficiary. If the disabled member survives to age 60, the regular optional forms of payment are then applied. Contributions -The contribution requirements of plan members and the District are established in state statute under Chapter 10, Article 11, NMSA 1978. The requirements may be amended by acts of the legislature. For the fiscal year ended June 30, 2021 plan members are required to contribute 9.42% of their gross salary. NMERB is required to contribute 17.74% of the gross covered salary. Plan members whose annual salary is $24,000 or less are required to contribute 7.90% of their gross salary. Plan members whose annual salary exceeded $24,000 are required to contribute 10.70%of their gross salary. Employers contribute 14.15% of the gross covered salary for employees whose annual salary was $24,000 or less, and 14.15% of the gross covered salary for employees whose salary exceeded $24,000. Contributions to the pension plan from the District were$9,605,208 for the year ended June 30, 2022. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The total ERB pension liability, net pension liability, and sensitivity information were based on an annual actuarial valuation performed as of June 30, 2020.The total ERB pension liability was rolled forward from the valuation date to the Plan year ending June 30, 2021, using generally accepted actuarial principles. Therefore, the employer's portion was established as of the measurement date June 30, 2020. At June 30, 2022, the District reported a liability of $143,996,770 for its proportionate share of the net pension liability. The District's proportion of the net pension liability is based on the employer contributing entity's percentage of total employer contributions for the fiscal year ended June 30, 2021. The contribution amounts were defined by Section 22-11-21, NMSA 1978. At June 30, 2021, the District's proportion was 2.031371 percent, which was a decrease of 0.0067 percent from its proportion measured as of June 30, 2020. For the year ended June 30, 2022,the District recognized pension expense of$17,458,206. -89- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions(Continued) At the June 30, 2022, the District reported deferred outflows of resources and deferred inflows or resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 11,314,413 $ 354,596 Changes in proportion 3,932,859 538,195 Net difference between projected and actual earnings on pension plan investments - 35,809,075 Changes of assumptions 95,851,627 163,989,422 District's contributions subsequent to the measurement date 9,605,208 - Total $ 120,704,107 $ 200,691,288 $9,605,208 reported as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date of June 30, 2021, will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30 2022 $ (2,339,670) 2023 (42,930,707) 2024 (32,373,834) 2025 (11,948,178) Thereafter - Actuarial assumptions - The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on actuarial valuation and performed as of June 30, 2020. The total pension liability was rolled forward from the valuation date to June 30, 2021 using generally accepted actuarial principles. There were no significant events or changes in benefit provisions that required an adjustment to the rollforward liabilities as of June 30, 2021. For purposes of projecting future benefits, it is assumed that the full COLA will be paid in all future years. -90- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions(Continued) The total pension liability was rolled forward from the valuation date to June 30, 2021 using generally accepted actuarial principles and incorporated the following changes to the Plan's provisions: Change to the employer contribution rate, which increased the employer contribution by 1%each year for the next two fiscal years, resulting in a 15.15% employer contribution rate and a 16.15% employer contribution rate in fiscal year 2022 and fiscal year 2023, respectively. As a result of these changes and the excellent performance of the fund for the fiscal year,the discount rate increased from 3.89%to 7.00%. The actuarial methods and assumptions used to determine contributions rates included in the measurement are as follows: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll Remaining Period Amortized — closed 30 years from June 30, 2019 to June 30, 2049 Asset Valuation Method 5 year smoothed market Inflation 2.3% Salary Increase Composed of 2.30% inflation, plus 0.70% productivity increase rate, plus step rate promotional increases for members with less than 15 years of service Investment Rate of Return 7.00% Retirement Age Experience based table rates based on age and service, adopted by the Board on April 17, 2020 in conjunction with the six-year experience study for the period ending June 30,2019. Mortality Healthy males: 2020 GRS Southwest Region Teacher Mortality Table, set back one year and scaled at 95%. Generational mortality improvements in accordance with the Ultimate MP scales are projected from the year 2020. Healthy females: 2020 GRS Southwest Region Teacher Mortality Table, set back one year. Generational mortality improvements in accordance with the Ultimate MP scales are projected from the year 2020. Other Information A new set of assumptions was adopted for the June 30, 2020, actuarial valuation and was first reflected for the ADEC determined as of June 30, 2021. -91 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions(Continued) The long-term expected rate of return on pension plan investments is determined annually using a building-block approach that includes the following: 1) rate of return projections are the sum of current yield plus projected changes in price (valuation, defaults, etc.); 2) application of key economic projections (inflation, real growth, dividends, etc.); and 3) structural themes (supply and demand imbalances, capital flows, etc.) developed for each major asset class. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension plan. The following schedule shows the current asset allocation policy adopted in August 2019. -92 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN-EDUCATIONAL RETIREMENT BOARD(Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions(Continued) Comparative Schedule of Target Investment Allocation Policy Asset Class Allocation Target Equities Domestic Equities Large cap equities 15.30% 14.00% Small-mid cap equities 3.10% 3.00% Total domestic 18.40% 17.00% International Equities Developed 5.10% 5.00% Emerging markets 8.60% 9.00% Total international 13.70% 14.00% Total equities 32.10% 31.00% Fixed Income Opportunistic credit 16.30% 16.00% Core bonds 4.90% 6.00% Emerging market debt 1.60% 2.00% Total fixed income 22.80% 24.00% Alternatives Real estate-REITS 2.20% 2.00% Real assets 3.90% 6.00% Private equity 18.80% 15.00% Global asset allocation 2.40% 2.00% Risk parity 4.90% 3.00% Inflation-linked assets 7.80% 9.00% Other 3.90% 7.00% Total alternatives 43.90% 44.00% Cash 1.20% 1.00% Total 100% 100% Discount rate - A single discount rate of 7.00% was used to measure the total pension liability as of June 30, 2021. This single discount rate was based on the expected rate of return on pension plan investments of 7.00%. Based on the stated assumptions and the projection of cash flows, the pension plan's fiduciary net position and future contributions were sufficient to finance all projected future benefit payments of current plan members. As a result, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. -93 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 11: PENSION PLAN—EDUCATIONAL RETIREMENT BOARD(Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions(Continued) Sensitivity of the District's proportionate share of the net pension liability to changes in the discount rate -The following table shows the sensitivity of the net pension liability to changes in the discount rate as of the June 30, 2021. In particular, the table presents the (employer's) net pension liability under the current single rate assumption, as if it were calculated using a discount rate one percentage point lower (6.00%)or one percentage point higher(8.00%)than the single discount rate. Current Discount 1%Decrease Rate 1% Increase (6.00r) (�.00i) (s.00r) District's proportionate share of the net pension liability $ 203,883,405 $ 143,996,770 $ 94,506,446 Pension plan fiduciary net position - Detailed information about the pension plan's fiduciary net position is available in the separately issued audited financial statements as of and for the year ended June 30, 2021, which is publicly available at www.nmerb.or�. Payables to the pension plan - The District remits the legally required employer and employee contributions on a monthly basis to ERB. The ERB requires that the contributions be remitted by the 15th day of the month following the month for which contributions are withheld. At June 30, 2022, the District owed the ERB$1,653,722 for the contributions withheld in the month of June 2022. -94- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS(OPEB)—NEW MEXICO RETIREE HEALTH CARE FUND General lnformation about the Other Post-Employment eenefits Plan Plan Description - Substantially all of the District's full-time employees are provided with other post- employment benefits (OPEB) through the New Mexico Retiree Health Care Authority (NMRHCA). NMRHCA was created by the state's Retiree Health Care Act, Section 10-7C-1 through 10-7C-16, NMSA 1978, as amended, to administer the New Mexico Retiree Health Care Fund (Plan). The Plan is a cost- sharing, multiple employer defined benefit healthcare plan established to provide comprehensive core group health insurance for persons who have retired from certain public service in New Mexico. The purpose is to provide eligible retirees (including terminated employees who have accumulated benefits but are not yet receiving them), their spouses, dependents and surviving spouses and dependents with health insurance consisting of a plan or optional plans of benefits that can be purchased by funds flowing into the retiree health care fund and by co-payments or out-of-pocket payments of eligible retirees. Eligible retirees are: (1) retirees who make contributions to the fund for at least five years prior to retirement and whose eligible employer during the period of time made contributions as a participant in plan on the person's behalf, unless that person retires before the employer's effective date, in which event the time period required for employee and employer contributions shall become the period of time between the employer's effective date and the date of retirement; (2) retirees defined by the Act who retired prior to July 1, 1990; (3) former legislators who served at least two years; and (4) former governing authority members who served at least four years. The Authority issues a publicly available stand-alone financial report that includes financial statements and required supplementary information for the postemployment healthcare plan. That report and further information can be obtained by writing to the NMRHCA at 4308 Carlisle NE, Suite 104, Albuquerque, NM 87107. eenefits provided - The Act authorizes the NMRHCA Board to establish the monthly premium contributions that retirees are required to pay for healthcare benefits. Each participating retiree pays a monthly premium according to a service-based subsidy rate schedule for the medical, plus basic life plan, plus an additional participation fee of five dollars ($5) if the eligible participant retired prior to the employer's effective date or is a former legislator or former governing authority member. Former legislators and governing authority members are required to pay 100% of the insurance premium to cover their claims and the administrative expenses of the plan. The monthly premium rate schedule can be obtained from the NMRHCA or viewed on their website at www.nmnc�a.state.nm.us. -95 - State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) General lnformation about the Other Post-Employment Benefits Plan(ContinuedJ Employees covered by benefit terms - At June 30, 2021, the Fund's measurement date, the following employees were covered by the benefit terms: Plan Membership Current retirees and surviving spouses 53,092 Inactive and eligible for deferred benefit 11,754 Current active members 92,484 157,330 Active membership State general 18,691 State police and corrections 1,919 Municipal general 20,357 Municipal police 1,573 Municipal FTRE 756 Educational Retirement Board 49,188 92,484 Contributions - The employer, employee and retiree contributions are required to be remitted to the NMRHCA on a monthly basis. The statutory requirements for the employer and employee contributions can be changed by the New Mexico State Legislature. Employers that choose to become participating employers after January 1, 1998, are required to make contributions to the fund in the amount determined to be appropriate by the Board. -96- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) General lnformation about the Other Post-Employment Benefits Plan(ContinuedJ The Act is the statutory authority that establishes the required contributions of participating employers and their employees. For employees that were members of an enhanced retirement plan (state police and adult correctional officer member coverage plan 1; municipal police member coverage plans 3, 4 or 5; municipal fire member coverage plan 3, 4 or 5; municipal detention officer member coverage plan 1; and members pursuant to the Judicial Retirement Act) during the fiscal year ended June 30, 2015, the statute required each participating employer to contribute 2.5% of each participating employee's annual salary; and each participating employee was required to contribute 1.25%of their salary. For employees that were not members of an enhanced plan during the fiscal year ended June 30, 2020, the statute required each participating employer to contribute 2% of each participating employee's annual salary; each participating employee was required to contribute 1% of their salary. In addition, pursuant to Section 10-7C- 5(G) NMSA 1978, at the first session of the Legislature following July 1, 2014, the legislature shall review and adjust the distributions pursuant to Section 7-1-6.1 NMSA 1978 and the employer and employee contributions to the authority in order to ensure the actuarial soundness of the benefits provided under the Act. The District's contributions to the plan for the year ended June 30, 2022 totaled $1,366,511, which equals the required contributions for the year. At June 30, 2022, the District reported a liability of $44,347,334 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. The District's proportion of the net OPEB liability was based on a projection of the District's long-term share of contributions to the OPEB plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2021, the District's proportion was 1.34780 which was an increase of 0.0247 percent from June 30, 2020. OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2022, the District recognized OPEB benefit of ($4,082,385). At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: -97- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB(ContinuedJ Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 648,416 $ 7,072,478 Changes in proportion 4,241,520 1,357,045 Net difference between projected and actual earnings on pension plan investments - 1,271,179 Changes of assumptions 8,878,747 16,033,134 District's contributions subsequent to the measurement date 1,366,511 - Total $ 15,135,194 $ 25,733,836 $1,366,511 reported as deferred outflows of resources related to OPEB resulting from the District's contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended June 30 2022 $ (5,623,725) 2023 (3,222,959) 2024 (1,396,043) 2025 321,104 2026 (2,043,530) Thereafter - -98- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB(ContinuedJ Actuarial assumptions - The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2021. The mortality, retirement, disability, turnover, and salary increase assumptions for PERA members are based on the PERA actuarial valuation as of June 30, 2018 and for ERB members are based on the ERB actuarial valuation as of June 30, 2020. The following actuarial assumptions were applied to the actuary's measurement: Valuation Date June 30, 2021 Actuarial cost method Entry age normal, level percent of pay, calculated on individual employee basis Asset valuation method Market value of assets Actuarial assumptions: Inflation 2.30%for ERB member, 2.50%for PERA members Projected payroll increase 3.25%to 13.00% based on years of service, including inflation Investment rate of return 7.00%, net of OPEB plan investment expense and margin for adverse deviation including inflation Health care cost trend rate 8% graded down to 4.5% over 14 years for Non-Medicare medical plan costs and 7.5% graded down to 4.5% over 12 for Medicare medical plan costs Mortality ERB members: 2020 GRS Southwest Region Teacher Mortality Table, set back one year (and scaled at 95% for males). Generational mortality improvements in accordance with the Ultimate MP scales are projected from the year 2020. PERA members: Headcount-Weighted RP-2014 Blue Collar Annuitant Mortality, set forward one year for females, projected generationally with Scale MP-2017 times 60%. -99- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB(ContinuedJ The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which the expected future real rates of return (net of investment fees and inflation) are developed for each major asset class. These returns are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before investment expenses, used in the derivation of the long-term expected investment rate of return assumptions. The best estimates for the long-term expected rate of return is summarized as follows: Comparative Schedule of Target Investment Allocation Target Asset Class Allocation Long-Term U.S. core fixed income 20% 0.4% U.S. equity- large cap 20% 6.6% Non U.S. -emerging markets 15% 9.2% Non U.S. -developed equities 12% 7.3% Private equity 10% 10.6% Credit and structured finance 10% 3.1% Real estate 5% 3.7% Absolute return 5% 2.5% U.S. equity-small/mid cap 3% 6.6% Discount rate -The discount rate used to measure the total OPEB liability is 3.62% as of June 30, 2021. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made at rates proportional to the actuary determined contribution rates. For this purpose, employer contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the service costs for future plan members and their beneficiaries are not included. Based on those assumptions, the Authority's fiduciary net position was projected to be available to make all projected future benefit payments for current plan members through the fiscal year ending June 30, 2052. The 7.00% discount rate, which includes the assumed inflation rate of 2.30% for ERB members and 2.50% for PERA members, was used to calculate the net OPEB liability through 2052. Beyond 2052,the index rate for 20- year, tax exempt general obligation municipal bonds with an average rating of AA/Aa or higher (2.16%) was applied.Thus, 3.62% is the blended discount rate. - 100- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB(ContinuedJ easis for Allocation - The employers' proportionate share, reported in the Schedule of Employer Allocations, is calculated using employer contributions for employers that were members of the Authority as of June 30, 2021. Sensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate - The following presents the District's proportionate share of the net OPEB liability, calculated using the discount rate of 3.62% as well as what the College's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.62 percent) or 1-percentage-point higher (4.62 percent)than the current discount rate: Current Discount 1%Decrease Rate 1%Increase (2.62%) (3.62%) (4.62%) District's proportionate share of the net OPEB liability $ 55,721,389 $ 44,347,334 $ 35,499,568 The following presents the Net OPEB Liability of NMRHCA as of June 30, 2021, as well as what the Fund's Net OPEB Liability would be if it were calculated using a health cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the health cost trend rates used: Current Trend 1%Decrease Rate 1%Increase District's proportionate share of the net OPEB liability $ 35,669,544 $ 44,347,334 $ 51,335,561 OPEB plan fiduciary net position - Additional financial information supporting the preparation of the Schedule of Employer Allocations and the Schedule of OPEB Amounts by Employer, including the disclosure of the net OPEB liability and the unmodified audit opinion on the financial statements, is located in the New Mexico Retiree Health Care Authority financial statements for the fiscal year ended June 30, 2020. Additional financial information is available at www.nmnc�a.state.nm.us or by contacting New Mexico Retiree Health Care Authority at 4308 Carlisle NE, Suite 104, Albuquerque, NM 87107. - 101- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) — NEW MEXICO RETIREE HEALTH CARE FUND (Continued) OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB(ContinuedJ Payables to the Pension Plan -The NMRHCA requires that the contributions be remitted by the 15th day of the month following the month for which contributions are withheld. At June 30, 2022, the District recorded a payable to NMRHCA in the amount of$130,289 for the contributions withheld in the months of May and June 2022, which is included in the Accounts Payable on the Statement of Net Position. NOTE 13: COMMITMENTS AND CONTINGENCIES During the ordinary course of its operation, the District is party to various claims, legal actions, and complaints. While the ultimate effect of such litigation cannot be ascertained at this time, in the opinion of counsel for the District, the liabilities which may arise from such actions would not result in losses which would exceed the liability insurance limits in effect at the time the claim arose or otherwise materially affect the financial condition of the District or results of activities. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable fund(s). The amount, if any, of expenditures from current or prior years which may be disallowed by the grantor cannot be determined at this time although the District expects such amounts not recorded, if any,to be immaterial. The District has active construction projects as of June 30, 2022.At year-end, the District's commitments with contractors are as follows: Expected Total Project Bond Project $ 673,146 Total commitments $ 673,146 District commitments are funded by PSFA and property tax revenue. - 102- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 14: CONCENTRATIONS The District depends on financial resources flowing from, or associated with, both the Federal Government and the State of New Mexico. Because of this dependency, the District is subject to changes in specific flows of intergovernmental revenues based on modifications to Federal and State laws and Federal and State Appropriations. NOTE 15: RESTRICTED NET POSITION The government-wide statement of net position reports $21,522,194 of restricted net position, all of which is restricted by enabling legislation. For descriptions of the related restrictions for net position restricted for special revenue, debt service and capital projects, see pages 55-56 and 116-123. NOTE 16: FUND BALANCES Fund balances on the modified accrual basis was classified as follows at June 30, 2022: Nonspendable Restricted Committed Unassigned General Fund-11000, 13000 Inventory $ 292,758 $ - $ - $ - Subsequent year's expenditures - - 5,635,964 - Unassigned - - - 193,147 Total General Fund 292,758 - 5,635,964 193,147 CARES Act, ESSER II -24308 Education - - - - Debt Service-41000 Debt Service - 8,994,632 - - Nonmajor Funds Inventory 160,318 - - - Food Service 1,055,750 Extracurricular activities - 1,687,129 - - Education - 3,821,411 - - Capital acquisitions and improvements - 9,564,809 - - Debt service - 1,692,932 - - Unassigned(deficit) - - - (403,097) Total Nonmajor Funds 160,318 17,822,031 - (403,097) Total fund balances $ 453,076 $26,816,663 $ 5,635,964 $ (209,950) - 103- State of New Mexico Farmington Municipal School District No. 5 Notes to Financial Statements NOTE 17:TAX ABATEMENTS Farmington Municipal School District No. 5 had no tax abatements during the year ended June 30, 2022. The District is not subject to any tax abatement agreements entered into by other governmental agencies. NOTE 18:SUBSEQUENT EVENTS The date to which events occurring after June 30, 2022,the date of the most recent balance sheet, have been evaluated for possible adjustment to the financial statement or disclosure is November 15, 2022, which is the date on which the financial statements were issued. The District purchased the property at 3101 Southside River Road, Farmington, NM in the amount of $548,623 on August 19, 2022. The District purchased the property at 3250 Southside River Road, Farmington, NM in the amount of $2,481,443 on September 7, 2022. - 104- Required Supplementary Information Farmington Municipal School District No. 5 - 105- State of New Mexico Farmington Municipal School District No. 5 Schedule of Proportionate Share of the Net Pension Liability Educational Retirement Board (ERB) Pension Plan Last 10 Fiscal Years* June 30, Fiscal Year 2022 2021 Measurement Date 2021 2020 The District's proportion of the net pension liability (asset) 2.03171% 2.03841% The Disticts's proportionate share pension liability(asset) $143,996,770 $413,101,925 The District's covered payroll $ 65,001,703 $ 65,158,172 The District's proportionate share of the net liability(asset) as a percentage of its covered payroll 221.53% 634.00% Plan fiduciary net position as a percentage of the total pension liability 69.77% 39.11% * The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. See notes to required supplementary information. - 106- June 30, 2020 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2014 1.93388% 1.87091% 1.90992% 1.96531% 2.00837% 1.95300% $146,535,937 $222,476,100 $212,258,352 $141,432,228 $130,087,473 $111,735,344 $ 56,541,199 $ 52,287,060 $ 54,402,833 $ 56,130,511 $ 57,084,325 $ 53,977,809 259.17% 425.49% 390.16% 251.97% 227.89% 207.00% 64.13% 52.17% 52.95% 61.58% 63.97% 66.34% See notes to required supplementary information. - 107- State of New Mexico Farmington Municipal School District No. 5 Schedule of Contributions Educational Retirement Board (ERB) Pension Plan Last 10 Fiscal Years* As of and for the Year Ended June 30, 2022 2021 Contractually required contribution $ 9,605,208 $ 9,197,741 Contributions in relation to the contractually required contribution $ (9,605,208) $ (9,197,741) The District's covered payroll $ 63,400,713 $ 65,001,703 Contributions as a percentage of covered payroll 15.15% 14.15% * The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. See notes to required supplementary information. - 108- 2020 2019 2018 2017 2016 2015 $ 9,219,944 $ 7,859,226 $ 7,267,901 $ 7,564,470 $ 7,800,895 $ 7,934,721 $ (9,219,944) $ (7,859,226) $ (9,258,813) $ (7,564,470) $ (7,800,895) $ (7,935,390) $ 65,158,172 $ 56,541,199 $ 52,287,060 $ 54,402,833 $ 56,130,511 $ 57,084,325 14.15% 13.90% 13.90% 13.90% 13.90% 13.90% See notes to required supplementary information. - 109- State of New Mexico Farmington Municipal School District No. 5 Schedule of Proportionate Share of the Net OPEB Liability New Mexico Retiree Health Care Authority (NMRHCA) Plan Last 10 Fiscal Years* June 30, Fiscal Year 2022 2021 Measurement Date 2021 2020 The District's proportion of the net OPEB liability 1.34780% 1.37250% The District's proportionate share of the net OPEB liability $ 44,347,334 $ 57,630,013 The District's covered payroll $ 67,716,430 $ 65,135,350 The District's proportionate share of the net OPEB liability as a percentage of its covered payroll 65.49% 88.48% Plan fiduciary net position as a percentage of the total OPEB liability 25.39% 16.50% *The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. See notes to required supplementary information. - 110- June 30, 2020 2019 2018 2019 2018 2017 1.25719% 1.24545% 1.26702% $ 40,762,987 $ 54,156,585 $ 57,417,203 $ 56,536,623 $ 52,286,029 $ 54,392,248 72.10% 103.58% 105.56% 18.92% 13.14% 11.34% See notes to required supplementary information. - 111- State of New Mexico Farmington Municipal School District No. 5 Schedule of Contributions New Mexico Retiree Health Care Authority (NMRHCA) Plan Last 10 Fiscal Years* As of and for the Year Ended June 30, 2022 2021 Contractually required contributions $ 1,366,511 $ 1,300,964 Contributions in relation to the contractually required contribution (1,366,511) (1,300,964) Contribution deficiency (excess) $ - The District's covered payroll $ 68,325,550 $ 65,053,865 Contributions as a percentage of covered payroll 2.00% 2.00% *The amounts presented were determined as of June 30. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the District will present information for those years for which information is available. See notes to required supplementary information. - 112- 2020 2019 2018 $ 1,302,707 $ 1,129,703 $ 1,044,579 (1,302,707) (1,129,703) (1,044,579) $ - $ - $ - $ 65,135,350 $ 56,536,623 $ 52,286,029 2.00% 2.00% 2.00% See notes to required supplementary information. - 113- State of New Mexico Farmington Municipal School District No. 5 Notes to Required Supplementary Information Educational Retirement Board (ERB) Plan Changes of benefit terms. The COLA and retirement eligibility benefits changes in recent years are described in the Benefits Provided subsection of the financial statement note disclosure Pension Plan — Educational Retirement Board, General Information on the Pension Plan. Changes of assumptions. There were not assumption changes since the last actuary valuation. New Mexico Retiree Health Care Authority(NMRHCA) Plan Changes of benefit terms. The NMRHCA eligibility benefits changes in recent years are described in Note 1 of the NMRHC FY21 audit available at https://www.nmnc�a.or�/wp-content/uploads/2022/04/NMRHCA-Audited-FS-6.30.21.pdf Changes of assumptions. The New Mexico Retiree Healthcare Authority (NMRHCA) Actuarial Valuation as of June 30, 2021 report is available at https://www.nmnc�a.or�/wp-content/uploads/2021/12/RPTS-05496.019-NMRHCA-6 30 2021- Measurement-GAS-74-Report-CLIENT.pdf. See the notes to the financial statements beginning on page 18 which summarizes actuarial assumptions and methods effective with the June 30, 2021 valuation. - 114- Supplementary Information Farmington Municipal School District No. 5 - 115- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS ALL FEDERAL FUNDS—The Special Revenue Funds are used to account for grant funds received from the U.S. Department of Education through the New Mexico Public Education Department. These funds are to be used for purposes specified in the grant awards and may not be used for any other purpose. Food Services (21000) —To account for all financial transactions related to the food service operation. Authority for the creation of this fund is the National School Lunch Act, as amended,42 U.S.C. 1751, 1760, 1779. Athletics (22000) —This fund is used to account for fees generated at athletic activities throughout the School District. The gate receipts are obtained from the general public and are expended in this fund. The authority for creation of this fund is 6.20.2 NMAC. Non-Instructional Support(23000)—To account for funds student fee which are approved by the Board of Education. Title I - ESEA (24101) — To account for supplemental educational opportunity for academically disadvantaged children residing in the area. Campuses are identified for program participation by the percentage of students on free or reduced price lunches. Any school with a free and reduced price lunch percentage that is equal to or greater than the total district percentage becomes eligible for program participation. Any student whose test scores fall below District established criteria and who is attending a Title I campus is eligible to receive Title I services. Poverty is the criteria that identify a campus;educational need determines the students to be served. Federal revenues accounted for in this fund are allocated to the District through the New Mexico Public Education Department. Authority for creation of this fund is Part A of Chapter I of Title I of Elementary and Secondary Education Act (ESEA) of 1965, as amended, Public Law 103-383. Javits Gifted and Talented(24102)—The purpose of this program is to meet the special education needs of gifted and talented students. The major emphasis of the program is on serving students traditionally underrepresented in gifted and talented programs, particularly economically disadvantaged,limited English proficient(LEP),and disabled students,to help reduce the serious gap in achievement among certain groups of students at the highest levels of achievement.Authorization: Elementary and Secondary Education Act of 1965, as amended,Title V, Part D, Subpart 6. Entitlement IDEA-B(24106)—To account for a program funded by a Federal grant to assist the District in providing free appropriate public education to all students with disabilities. Funding authorized by Individuals with Disabilities Education Act, Part B,Section 611-620,as amended,Public Laws 91-230,93-380, 94-142, 98-199, 99-457, 100-639, and 101-476, 20 U.S.C. 1411-1420. Preschool IDEA-B (24109) —The objective of the Assistance to States for the Education of Handicapped Children Program is to assist in providing free,appropriate public education to all students with disabilities from ages three to five. Federal revenues accounted for in this fund are allocated to the Schools through the New Mexico Department of Children, Youth and Families. Authority for creation of this fund is the Individuals with Disabilities Education Act (IDEA), Part B, Section 619, as amended, 20 U.S.C. 1419. - 116- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) Education of Homeless(24113)-To ensure that all homeless children and youth have equal access to the same free, appropriate public education available to other children,the Education for Homeless Children and Youth program provides assistance to States,Outlying Areas,and the Department of Interior/Bureau of Indian Education (BIE)to: (1) establish or designate an Office of Coordinator of Education of Homeless Children and Youths; (2)develop and carry out a State plan for the education of homeless children;and (3) make subgrants to local educational agencies to support the education of those children. Authorization: McKinney-Vento Homeless Assistance Act,Title VII, Subtitle B. IDEA-B Private Schools Share(24115)—To provide grants to States to assist the States in providing a free appropriate public education to all children with disabilities.The program is funded by the United States government, under the Individuals With Disabilities Act, Part B, Section 619, as amended, Public Laws 94- 142, 99-457, 100-630, 101-497, and 101-476. Fresh Fruit and Vegetables(24118)—To assist States,through cash grants, in providing free fresh fruits and vegetables to school children in designated participating schools beginning in school year 2004/2006. Authorization granted under National School Lunch Act, as amended, 42 U.S.C. 1769. 215` Century Community Learning Centers (24119) — After school adolescence care, providing the community with responsible Child Care,while providingthe children and theirfamilies with referral services, drug prevention education,academic help,and character building(social skill)activities.Funding is provided by the Department of Education under the Elementary and Secondary Education Act of 1965,Title X, part I Section 10901, Public Law 103-382 Stat. 3844, 20 U.S.C. 8241. Title I-1003g(24124)—The objective of this grant is to provide in conjunction with Title I funds for school improvement reserved under section 1003(a) of the ESEA. School Improvement Grants under section 1003(g)of the ESEA are used to improve student achievement in Title I schools identified for improvement, corrective action, or restructuring so as to enable those schools to make adequate yearly progress (A YP) and exit improvement status. Funding is by the Elementary and Secondary Education Act of 1965, as amended,Title I, Part B, Subpart 1. English Language Acquisition(24153)—To provide funds to improve the educational performance of limited English proficient students by assisting the children to learn English and meet State academic content standards. Authority for creation of this fund is the Elementary and Secondary Education Act (ESEA), as amended,Title III, Part A, Sections 3101, 3129. Teacher/Principal Training & Recruiting (24154) —To improve the skills of teachers and the quality of instruction in mathematics and science and also to increase the accessibility of such instruction to all students. Authority for creation of this fund is the Rehabilitation Act of 1973,as amended,Title III,Section 303(b)-(d). 20 U.S.C. 777a and 797a. - 117- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) Carl D Perkins Special Projects-Current(24171),Carl D Perkins Secondary-Current(24174),Carl D Perkins Secondary-PY Unliq.Obligations(24175),Carl D Perkins Secondary-Redistribution(24176)—Basic grants assist states and outlying areas to expand and improve their programs of vocational education and provide equal access in vocational education to special need populations.Authorized by Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998,Title I, Public Law 105-332,20 U.S.C.2301,et seq. AMP Advancing Measurement at PED (24188)—The purpose of this grant award is to support activities included in the school's Educational Plan for Student Success, or areas in need of improvement, identified through the instructional audit. The program is funded by the United States government, under the Individuals with Disabilities Act, Public Law 108-446 Part B. Student Supp Academic Achievement Title IV(24189)—To support well-rounded education opportunities, safe and health students and effective use of technology(ESEA sections 4107,4108 and 419). Funding is by the US Department of Education,Title IV—Student Support and Academic Enrichment Grants. Title I - Comprehensive Support and Improvement (C51) (24190) — To provide targeted, planned intervention in state identified schools, in order to promote school wide positive results. Authority for creation of this fund is Part A of Chapter I of Title I of Elementary and Secondary Education Act (ESEA) of 1965, as amended, Public Law 103-383. Title I-HS Redesign(24191)—The High School Redesign initiative would support competitive grants to local educational agencies(LEAs) in partnership with institutions of higher education and other entities,such as non-profits, community-based organizations, government agencies, and business or industry-related organizations to help schools apply academic concepts to real world challenges. Partnerships and projects will connect high school experiences with relevant business, community, and postsecondary partners in science,technology,engineering and math (STEM)fields,while enhancing for students living in high poverty and rural communities. Special consideration will be given to partnerships with employers that provide students at participating schools with career-related experiences or help students attain career-related credentials. Funding is by the Elementary and Secondary Education Act of 1965,as amended,Title I, Part B, Subpart 1. ARRA-IDEA-B CEIS(24212)—Up to 15%of combined entitlement and preschool funding may be budgeted as per 34 CFR § 300.226. Must be used consistent with the applicable provisions of IDEA-B, as follows: (1) Must be used only to pay the excess costs of providing special education and related services to children with disabilities: (2) Must be used to supplement State. local, and other Federal funds and not to supplant such funds:and (3) Must not be used to reduce an LEA's maintenance of effort(MOE)for the education of children with disabilities below the preceding year's level except as allowed by 34 CFR§§300.204 and 205. CARES Act, ESSER(24301)—The objective of the ESSER Fund is to provide local educational agencies with emergency relief funds to address the impact that COVID-19 has had,and continues to have,on elementary and secondary schools. Authority for creation of this fund is the Education Stabilization Fund (ESF), a component of the recently enacted Coronavirus Aid, Relief, and Economic Security(CARES) Act. - 118- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) CARES Act, GEER (24305)—The objective of the GEER Fund is to provide local educational agencies with emergency assistance as a result of COVID-19. Authority for creation of this fund is the Education Stabilization Fund (ESF),a component of the recently enacted Coronavirus Aid,Relief,and Economic Security (CARES) Act. CRRSA, ESSER-Social Emotional Learning(24309)—The objective of the ESSER Social Emotional Learning fund is to pay for social and emotional learning. Authority for creation of this fund is the Education Stabilization Fund, a component of the recently enacted Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, 2021. CRRSA-SEA Reserve/Retention Stipends(24312)—The objective of the SEA Reserve/Retention Stipends Fund is to pay Retention Stipends to eligible employees.Authority for creation of this fund is the Education Stabilization Fund, a component of the recently enacted Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, 2021. CARES Act,ESSER II-Air Quality(24316)—The objective of the ESSER II fund is to provide local educational agencies with relief funds to address air quality improvements that the impact from COVID-19 has had,and continues to have,on elementary and secondary schools.Authorityfor creation ofthis fund is the Education Stabilization Fund,a component of the Coronavirus Response and Relief Supplemental Appropriations(CRRSA) Act, 2021. ARP Act,ESSER III(24330)—The objective of the ESSER II fund is to provide local educational agencies with relief funds to help schools return safely to in-person instruction, and address the academic, social, emotional, and mental health impacts the COVID-19 Pandemic has had, and continues to have, on elementary and secondary schools students.Authority for creation of this fund is the Education Stabilization Fund, a component of the American Rescue Plan (ARP)Act, 2021. ARP Act,ESSER III—Homeless Children and Youth Retention Stipends(24350)—The objective of the ARP- HCY I fund is to provide local educational agencies with relief funds to help schools return safelyto in-person instruction, and sustaining safe operations while meeting academic, social, emotional, and mental health impacts the COVID-19 Pandemic has had, and continues to have, on elementary and secondary schools students.Authority for creation of this fund is the Education Stabilization Fund,a component ofthe American Rescue Plan (ARP)Act, 2021. ARP II - Emergency Relief Fund Homeless Children and Youth (24355)—The objective of the ARP-HCY II fund is to provide local educational agencies with relief funds to addressthe impactthe COVID-19 Pandemic has had,and continues to have,on elementary and secondary schools.Authority for creation of this fund is the Education Stabilization Fund, a component of the American Rescue Plan (ARP)Act, 2021. - 119- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) Johnson O'Malley (25131) - The Johnson O'Malley project provides supplemental programs in special education and other special needs for New Mexico public schools where eligible Indian children are enrolled. Funding is provided by the Department of the Interior, Bureau of Indian Affairs,through the Navajo Tribe, under the Johnson 0'Malley Act of April 16, 1934; as amended 25 U.S.C. 452, Public Law 93 638; 25 U.S.C. 455-457. Impact Aid Special Education (25145), Impact Aid Indian Education(25147)—To account for funding of a Federal program to provide financial assistance to local educational agencies(LEA's)where enrollments or availability of revenue are adversely affected by Federal activities, i.e., where the tax base of a district is reduced through the Federal acquisition of real property(Section 2),or where there are a significant number of children who reside on Federal (including Indian) lands and/or children whose parents are employed on Federal property or in the Uniformed Services(Section 3(a)and 3(b)):where there is a significant decrease (Section 3(c))or a sudden and substantial increase(Section 4) in school enrollment as the result of Federal activities;to provide disaster assistance for reduced or increased operating costs(Section 7(a)),for replacing or repairing damaged or destroyed supplies, equipment, and books, and for repairing minor damage to facilities. Funding authorized by Public Law 81-874. Title XIX Medicaid 3/21 Years(25153)—This fund is used to account for a program providing school-based screening,diagnostic services and other related health services and administrative activities in conformance with the approved Medicaid State Plan in order to improve health and developmental outcomes for children. Authorityforthe creation ofthis fund is the Social SecurityAct,Title XIX,as amended; Public Laws 89-97,90-248,and 91-56;42 U.S.C. 1396 et seq.,as amended; Public Law 92-223; Public Law 92-603;Public Law 93-66; Public Law 93-233; Public Law 96-499; Public Law 97-35; Public Law 97-248; Public Law 98-369; Public Law 99-272; Public Law 99-509; Public Law 100-93; Public Law 100-202; Public Law 100-203; Public Law100-360; Public Law 100-436; Public Law 100-485; Public Law 100-647; Public Law 101-166; Public Law 101-234; Public Law 101-239; Public Law 101-508; Public Law 101-517; Public Law 102-234;Public Law 102- 170; Public Law 102-394; Public Law 103-66; Public Law 103-112; Public Law 103-333; Public Law 104-91; Public Law 104-191; Public Law 104-193; Public Law 104-208,104-134; Balanced Budget Act of 1997, Public Law 105-33; Public Law 106-113; Public Law 106-554; Public Law 108-27; Public Law 108-173; Public Law 109-91; Public Law 109-171; Public Law 109-432; Public Law 110-28. Indian ED Formula Grant (25184) — The purpose of this program is to support projects which improve educational opportunities and achievement of Native American children.Funding is provided bythe Federal Government, under the Elementary and Secondary Education Act of 1965, Title IX, Part A, Subpart 1, as amended, Public Law 103-382, 20 U.S.C. 7811-7818; 25 U.S.C. 2002. Mentoring For Safe Schools (25187) — To provide funding to state, local, community, and national organizations to propose the enhancement or expansion of initiatives that will assist in the development and maturity of community programs to provide mentoring services to high-risk populations that are underserved due to location, shortage of inentors, special physical or mental challenges of the targeted population, or other analogous situations identified by the community in need of inentoring services. - 120- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) Native American Program (25248) — To bring school-wide classroom reading instruction and targeted intervention for Limited English Proficient (LEP) students where the native language is Navajo. Kellogg Fund/Kellogg Foundation (26121)—This grant will expand evidence-based parent education and family support programs targeting vulnerable families in select New Mexico neighborhoods to promote parental knowledge of child development needs and parental advocacy skills. 2009 Dual Credit Instructional Materials/HB 2(27103)—SB943(2007)and SB31(2008)create a dual credit program that allows public high school students in school districts, charter schools and state-supported schools in the state to earn both high school and college credit for qualifying dual credit courses. Authority for the creation of this fund is the New Mexico Public Education Department. 27107 GOB Library (27107)—To account for funds provided for the purpose of acquiring library books, equipment, and library resources for public school and state-supported school libraries statewide. Authority for the creation of this fund is the New Mexico Public Education Department. Instructional Material—Special Appropriations(27109)— The purpose ofthis grant award is provide high- quality,culturally and linguistically relevant instructions materials.The funding was made available through special and supplemental appropriations passed during the 2019 legislative session. New Mexico Reads To Lead K-3(27114)—Provides an aligned approach for districts and schools to ensure that children can read by the end of third grade-giving them essential skills for future career and college success. It also provides regional and district reading coaches, supports for intervention, and professional development for parents, teachers, reading coaches, and administrators. PreK Initiative (27149)—To account for funds received to prepare children for success in school, begin to close the achievement gap between students,and help meet the vision of a seamless education system — Pre-Kindergarten through higher education.Authority for the creation of this fund is the New Mexico Public Education Department. Indian Education Act(27150)—To increase academic achievement and provide culturally relevant learning experiences for American Indian students; to establish collaborative partnerships that engage active participation of American Indian parents, students,tribe(s), community-based organizations, universities, private sector and/ or other entities who work with American Indian students; to establish a parent community advisory committee to participate in the development of an Indigenous curriculum framework and to profile Indigenous best practices. Breakfast for Elementary Students(27155)—The Breakfast for Elementary School program provides foods (at no charge) after the instructional day has begun, provided that instruction occurs simultaneously with breakfast.Authorized through 22-13-13.2 NMSA 1978; NMAC 6.12.9. - 121- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions SPECIAL REVENUE FUNDS(Continued) Libraries GO Bond 2006(27170)—Funding made available to update and expand library collections. Schools Buses (27178)— Funds to public school districts to replace public school buses. Authority for the creation of the fund is Senate Bill 60, Severance Tax Bond Projects 2013. NM Grown FVV(27183)—This funding is to be used in promoting a healthy nutrition plan while stimulating local economy. Open Sci Ed Expansion Initiative(27202)—The purpose of this grant award is to expand Science Education curriculum. The funding was made available through New Mexico State Appropriations. Public School Bus Cameras(27405)—The purpose of this grant award is to provide district owned school bus cameras.This was made available through the New Mexico Public Education Department,NM Laws of 2021, HB-285, Chapter 138, Section 17, Paragraph 172. Family Income Index(27407)—The purpose of this grant award is to provide student support and services to schools serving the highest concentration of students living in poverty through literacy interventions, math interventions, and other student support and services. Authority for the creation of this fund is the New Mexico Public Education Department. Career Technical Education Program (Pilot) (27502) — Funds are to be used for (1) to support Local Educational Agencies (LEAs) with the cost of Career Technical Education (CTE) programs of study, (2) to provide relevant career exploration,and(3)to provide other CTE-related supports.Authorization:2019 New Mexico House Bill 91. Youth Conservation Corp NMEMNR(28133)—Allows for students to participate in conservation programs at National, State and City Parks as well as study time for academic programs. GEAR-UP CHE(28178)—Funds to provide tutoring for students needing specialized help at the mid-school level. NM Schools Covid-19 Testing Program DOH (28211)—The purpose of the NM Schools COVID-19 Testing grant is to support the prevention, mitigation, and response of COVID-19 through screening and testing students and staff. This funding was made available by the New Mexico Department of Health under the NM Schools COVID-19 Testing Program. Westmeath Foundation (29102) — Exclusively for the Exceptional Programs Office to use only for educational, scientific, or literary purposes. - 122- State of New Mexico Farmington Municipal School District No. 5 Nonmajor Governmental Fund Descriptions CAPITAL PROJECTS FUNDS Bond Building (31100) —This fund provides financing for the construction of buildings, the purchase of equipment, and the acquisition and improvement of land. Funding is provided by the sale of general obligation bonds, which have been approved by the voters of the district. Special Capital Outlay-Local(31300)—This fund is used to account for revenues that are derived from local sources such as the sale of a building. Special Capital Outlay - State (31400) — This fund provides financing for special appropriation monies received from the State of New Mexico under Chapter 367, Laws of 1993. Capital Improvements HB-33(31600)—This fund is used to account for two mill levy funds authorized by the Public-School Capital Improvement Act. The levy must be voted on by local residents and allows the District to impose a property tax. Capital Improvements SB-9 - State (31700), SB-9 State Match Cash (31703) —To account for resources received through Senate Bill 9 and local tax levies obtained for the purpose of building, remodeling, and equipping classroom facilities. Funding authority is the New Mexico Public Education Department. Capital Improvements SB-9- Local (31701)—This fund provides financing for the purchase of equipment and capital improvements to School District property. Funding is received from a 2 mil propertytax levy and interest earned on investments, under New Mexico Senate Bill 9. Ed. Technology Equipment Act (31900) — This fund is used to account for revenue received from any revenue bonds issued into as part of a lease purchase agreement under the Education Technology Act.The Education Technology Act was enacted to implement a provision of Article IX Section 11 of the Constitution of New Mexico which declares that a school district may create a debt under the constitution by entering into a lease purchase arrangement to acquire education technology without submittingthe proposition to a vote of the qualified electors of the school district. DEBT SERVICE FUNDS Ed.Tech(43000)—Used to account for the accumulation of resources for and the payment of,general long- term debt principal, interest, and related costs associated with the Education Technology bond issues. - 123- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Non- Instructional Food Services Athletics Support Title I - ESEA June 30, 2022 21000 22000 23000 24101 Assets Cash and cash equivalents $ 744,071 $ 271,894 $ 1,478,447 $ 48,913 Investments - - - - Receivables Property taxes - - - - Intergovernmental 943,181 - - 607,046 Inventory 160,318 - - - Total assets $ 1,847,570 $ 271,894 $ 1,478,447 $ 655,959 Liabilities, deferred inflows of resources, and fund balances Liabilities Accounts payable $ 621,844 $ 4,371 $ 53,232 $ 328,310 Accrued payroll 9,658 15 5,594 48,913 Unearned revenue - - - - Due to other funds - - - 278,736 Totalliabilities 631,502 4,386 58,826 655,959 Deferred inflows of resources Unavailable revenue - property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable 160,318 - - - Spendable Restricted 1,055,750 267,508 1,419,621 - Unassigned (deficit) - - - - Total fund balances 1,216,068 267,508 1,419,621 - Total liabilities, deferred inflows of resources, and fund balances $ 1,847,570 $ 271,894 $ 1,478,447 $ 655,959 - 124- Page 1 of 7 Special Revenue IDEA-B Fresh Fruit Javits Gifted Entitlement Preschool Education of Private and and Talented IDEA-B IDEA-B Homeless Schools Share Vegetables 24102 24106 24109 24113 24115 24118 $ 1,610 $ 41,264 $ 2,780 $ 29,128 $ - $ - - 599,843 16,103 - - 88,241 $ 1,610 $ 641,107 $ 18,883 $ 29,128 $ - $ 88,241 $ - $ 437,704 $ 17,059 $ 29,128 $ - $ - - 41,264 1,823 - - - 1,610 - - - - - - 162,139 1 - 117 88,241 1,610 641,107 18,883 29,128 117 88,241 - - - - (117) - - - - - (117) - $ 1,610 $ 641,107 $ 18,883 $ 29,128 $ - $ 88,241 (Continued) - 125- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue 21st Century Teacher/ Community English Principal Learning Language Training& Centers Title I - 1003g Acquisition Recruiting June 30,2022 24119 24124 24153 24154 Assets Cash and cash equivalents $ - $ 52,701 $ 17,315 $ 3,083 Investments - - - - Receivables Property taxes - - - - Intergovernmental 196,604 - 48,558 142,053 Inventory - - - - Total assets $ 196,604 $ 52,701 $ 65,873 $ 145,136 Liabilities,deferred inflows of resources, and fund balances Liabilities Accounts payable $ 1 $ - $ 65,873 $ - Accrued payroll - - - 3,083 Unearned revenue - 52,701 - - Due to other funds 198,970 - - 267,748 Totalliabilities 198,971 52,701 65,873 270,831 Deferred inflows of resources Unavailable revenue - property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable - - - - Spendable Restricted - - - - Unassigned (deficit) (2,367) - - (125,695) Total fund balances (2,367) - - (125,695) Total liabilities, deferred inflows of resources, and fund balances $ 196,604 $ 52,701 $ 65,873 $ 145,136 - 126- Page 2 of 7 Special Revenue Carl D Perkins Carl D Perkins AMP Student Supp Special Carl D Perkins Secondary- Carl D Perkins Advancing Academic Projects- Secondary- PY Unliq. Secondary- Measurement Achievement Current Current Obligations Redistribution at PED Title IV 24171 24174 24175 24176 24188 24189 $ - $ - $ 3 $ - $ 3,241 $ 13,085 - 24,564 - 617 234,026 112,010 $ - $ 24,564 $ 3 $ 617 $ 237,267 $ 125,095 $ - $ 23,258 $ 3 $ - $ - $ 3,059 - - - - 3,241 13,085 - 1,306 - 617 234,026 108,951 - 24,564 3 617 237,267 125,095 $ - $ 24,564 $ 3 $ 617 $ 237,267 $ 125,095 (Continued) - 127- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Title I- Comprehensive Support and Improvement Title I - HS ARRA-IDEA-B CARES Act, (CSI) Redesign CEIS ESSER June 30, 2022 24190 24191 24212 24301 Assets Cash and cash equivalents $ - $ - $ 55 $ - Investments - - - - Receivables Property taxes - - - - Intergovernmental - - - - Inventory - - - - Total assets $ - $ - $ 55 $ - Liabilities,deferred inflows of resources,and fund balances Liabilities Accounts payable $ 850 $ - $ - $ - Accrued payroll - - - - Unearned revenue - - 55 - Due to other funds 15 - - - Total liabilities 865 - 55 - Deferred inflows of resources Unavailable revenue- property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable - - - - Spendable Restricted - - - - Unassigned (deficit) (865) - - - Total fund balances (865) - - - Total liabilities, deferred inflows of resources, and fund balances $ - $ - $ 55 $ - - 128- Page 3 of 7 Special Revenue ESSER III— CARES Act, CRRSA-SEA Homeless ESSER-Social Reserve/ CARES Act, Children and CARES Act, Emotional Retention ESSER II -Air ARP Act, Youth GEER Learning Stipends Quality ESSER III Retention 24305 24309 24312 24316 24330 24350 $ - $ - $ - $ - $ 393 $ 395 - 10,694 - 69,007 646,030 11,409 $ - $ 10,694 $ - $ 69,007 $ 646,423 $ 11,804 $ - $ - $ - $ - $ 144,421 $ 330 - - - - 393 395 - 10,694 - 69,007 501,609 11,079 - 10,694 - 69,007 646,423 11,804 $ - $ 10,694 $ - $ 69,007 $ 646,423 $ 11,804 (Continued) - 129- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Emergency Relief Fund Homeless Impact Aid Impact Aid Children and Johnson Special Indian Youth O'Malley Education Education June 30, 2022 24355 25131 25145 25147 Assets Cash and cash equivalents $ 50 $ 1,877 $ 176,233 $ 11,546 Investments - - - - Receivables Property taxes - - - - Intergovernmental 2,589 10,360 - - Inventory - - - - Total assets $ 2,639 $ 12,237 $ 176,233 $ 11,546 Liabilities,deferred inflows of resources, and fund balances Liabilities Accounts payable $ - 5,545 $ - $ 1,892 Accrued payroll 50 1,877 - - Unearned revenue - - - - Due to other funds 2,589 250,592 - - Totalliabilities 2,639 258,014 - 1,892 Deferred inflows of resources Unavailable revenue - property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable - - - - Spendable Restricted - - 176,233 9,654 Unassigned (deficit) - (245,777) - - Total fund balances - (245,777) 176,233 9,654 Total liabilities, deferred inflows of resources, and fund balances $ 2,639 $ 12,237 $ 176,233 $ 11,546 - 130- Page 4 of 7 Special Revenue 2009 Dual Credit Title XIX Native Kellogg Instructional Medicaid Indian ED Mentoring For American Fund/Kellogg Materials/ 3/21 Years Formula Grant Safe Schools Program Foundation HB 2 25153 25184 25187 25248 26121 27103 $ 3,479,507 $ 15,365 $ 1 $ 1,427 $ 36,112 $ - 102,208 137,704 - - - - $ 3,581,715 $ 153,069 $ 1 $ 1,427 $ 36,112 $ - 6,940 $ 21,262 $ - $ 3,347 $ 37 $ - 11,241 15,365 - 1,427 1,387 - - 116,442 - - - - 18,181 153,069 - 4,774 1,424 - 3,563,534 - 1 - 34,688 - - - - (3,347) - - 3,563,534 - 1 (3,347) 34,688 - $ 3,581,715 $ 153,069 $ 1 $ 1,427 $ 36,112 $ - (Continued) - 131- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Instructional Materials- New Mexico 27107 GOB Special Reads To Lead Library Appropriations K-3 PreK Initiative June 30, 2022 27107 27109 27114 27149 Assets Cash and cash equivalents $ - $ 556 $ 70 $ 13,775 I nvestments - - - - Receivables Property taxes - - - - Intergovernmental 43,130 - - 202,481 Inventory - - - - Total assets $ 43,130 $ 556 $ 70 $ 216,256 Liabilities, deferred inflows of resources,and fund balances Liabilities Accounts payable $ 1,057 $ - $ - $ 9,027 Accrued payroll - - - 13,775 Unearned revenue - - - - Due to other funds 50,307 - - 203,608 Totalliabilities 51,364 - - 226,410 Deferred inflows of resources Unavailable revenue- property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable - - - - Spendable Restricted - 556 70 - Unassigned (deficit) (8,234) - - (10,154) Total fund balances (8,234) 556 70 (10,154) Total liabilities, deferred inflows of resources, and fund balances $ 43,130 $ 556 $ 70 $ 216,256 - 132- Page 5 of 7 Special Revenue Breakfast for Open Sci Ed Indian Elementary Libraries GO NM Grown Expansion Education Act Students Bond 2006 School Buses FVV Initiative 27150 27155 27170 27178 27183 27202 $ 321 $ 2,729 $ 2,431 $ - $ - $ - 13,996 - - 1,124,561 - 10,102 $ 14,317 $ 2,729 $ 2,431 $ 1,124,561 $ - $ 10,102 $ - $ - $ - $ - $ - $ - 321 - - - - - 20,387 - - 1,124,561 - 10,102 20,708 - - 1,124,561 - 10,102 - 2,729 2,431 - - - (6,391) - - - - - (6,391) 2,729 2,431 - - - $ 14,317 $ 2,729 $ 2,431 $ 1,124,561 $ - $ 10,102 (Continued) - 133- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Career Technical Youth Education Conservation Public School Family Program Corp Bus Cameras Income Index (Pilot) NMEMNR June 30, 2022 27405 27407 27502 28133 Assets Cash and cash equivalents $ - $ 145 $ - $ 29,969 Investments - - - - Receivables Property taxes - - - - Intergovernmental 27,489 149,625 7,468 - Inventory - - - - Total assets $ 27,489 $ 149,770 $ 7,468 $ 29,969 Liabilities,deferred inflows of resources, and fund balances Liabilities Accounts payable $ - $ - $ - $ - Accrued payroll - 145 - - Unearned revenue - - - - Due to other funds 27,489 149,625 7,468 - Totalliabilities 27,489 149,770 7,468 - Deferred inflows of resources Unavailable revenue - property taxes - - - - Total deferred inflows of resources - - - - Fund balances Nonspendable - - - - Spendable Restricted - - - 29,969 Unassigned (deficit) - - - - Total fund balances - - - 29,969 Total liabilities, deferred inflows of resources, and fund balances $ 27,489 $ 149,770 $ 7,468 $ 29,969 - 134- Page 6 of 7 Special Revenue Capital Projects NM Schools Covid-19 Testing Westmeath Special Capital Special Capital GEAR-UP CHE Program DOH Foundation Bond Building Outlay- Local Outlay-State 28178 28211 29102 31100 31300 31400 $ 1,546 $ 1,631 $ - $ 1,092,704 $ 1,171,772 $ 48,375 - - - 3,170,740 - - - 39,360 - - - - $ 1,546 $ 40,991 $ - $ 4,263,444 $ 1,171,772 $ 48,375 $ - $ 150 $ - $ - $ - $ - - 1,631 - - - - - 39,360 - - - - - 41,141 - - - - 1,546 - - 4,263,444 1,171,772 48,375 - (150) - - - - 1,546 (150) - 4,263,444 1,171,772 48,375 $ 1,546 $ 40,991 $ - $ 4,263,444 $ 1,171,772 $ 48,375 (Continued) - 135- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet Nonmajor Governmental Funds Capital Projects Capital Capital Special Capital Improvements Improvements SB-9 State Outlay HB-33 SB-9-State SB-9- Local Match Cash June 30,2022 31600 31700 31701 31703 Assets Cash and cash equivalents $ 586,065 $ - $ 3,020,398 $ 658,441 Investments - - - - Receivables Property taxes 114,182 - 209,804 - Intergovernmental - - - - Inventory - - - - Total assets $ 700,247 $ - $ 3,230,202 $ 658,441 Liabilities,deferred inflows of resources,and fund balances Liabilities Accounts payable $ 5,438 $ - $ 241,054 $ - Accrued payroll - - - - Unearned revenue - - - - Dueto otherfunds - - - - Totalliabilities 5,438 - 241,054 - Deferred inflows of resources Unavailable revenue- property taxes 98,657 - 185,979 - Total deferred inflows of resources 98,657 - 185,979 - Fund balances Nonspendable - - - - Spendable Restricted 596,152 - 2,803,169 658,441 Unassigned (deficit) - - - - Total fund balances 596,152 - 2,803,169 658,441 Total liabilities, deferred inflows of resources, and fund balances $ 700,247 $ - $ 3,230,202 $ 658,441 - 136- Page 7 of 7 Capital Projects Debt Service Total Ed.Technology Nonmajor Equipment Act Ed.Tech Governmental 31900 43000 Funds $ 23,456 $ 1,486,474 $ 14,571,354 - 194,801 3,365,541 - 126,046 450,032 - - 5,621,059 - - 160,318 $ 23,456 $ 1,807,321 $ 24,168,304 $ - $ 213 $ 2,025,405 - - 174,683 - - 54,366 - - 3,935,786 - 213 6,190,240 - 114,176 398,812 - 114,176 398,812 - - 160,318 23,456 1,692,932 17,822,031 - - (403,097) 23,456 1,692,932 17,579,252 $ 23,456 $ 1,807,321 $ 24,168,304 - 137- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue Non- Instructional Food Service Athletics Support Title I-ESEA For the Year Ended June 30,2022 21000 22000 23000 24101 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough 7,218,536 - - 2,631,874 Federal direct - - - - Localsources - - - - State flowthrough - - - - State direct - - - - Charges for services 176,264 424,926 1,046,740 - Investment income 61 - 3,082 - Miscellaneous - - 29,450 - Total revenues 7,394,861 424,926 1,079,272 2,631,874 Expenditures Current Instruction - 363,024 1,138,491 1,681,772 Support services-students - - - 594,007 Support services-instruction - - - - Support services-general administration - - - - Support services-school administration - - - 356,095 Operation and maintenance of plant - - - - Student transportation - - - - Food services operations 6,338,093 - - - Capital outlay 113,243 - 16,597 - Debt service Principal - - - - Interest and other charges - - - - Total expenditures 6,451,336 363,024 1,155,088 2,631,874 Excess(deficiency)of revenues over expenditures 943,525 61,902 (75,816) - Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances 943,525 61,902 (75,816) - Fund balances-beginning of year 272,543 205,606 1,495,437 - Fund balances-end of year $ 1,216,068 $ 267,508 $ 1,419,621 $ - - 138- Page 1 of 7 Special Revenue Fresh Fruit Javits Gifted Entitlement Preschool Education of IDEA-B Private and and Talented IDEA-B IDEA-B Homeless Schools Share Vegetables 24102 24106 24109 24113 24115 24118 $ - $ - $ - $ - $ - $ - - 3,114,599 77,452 14,997 - 156,078 - 3,114,599 77,452 14,997 - 156,078 - 777,741 75,762 14,997 - - - 1,739,437 - - - - - 11,728 1,690 - - - - 585,693 - - - - - - - - - 156,078 - 3,114,599 77,452 14,997 - 156,078 - - - - (117) - $ - $ - $ - $ - $ (117) $ - (Continued) - 139- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue 21st Century Teacher/ Community English Principal Learning Language Training& Centers Title I-1003g Acquisition Recruiting For the Year Ended June 30,2022 24119 24124 24153 24154 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough 292,333 - 48,558 377,130 Federal direct - - - - Localsources - - - - State flowthrough - - - - State direct - - - - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Total revenues 292,333 - 48,558 377,130 Expenditures Current Instruction 255,712 - 39,136 272,724 Support services-students - - 8,369 96,298 Support services-instruction - - - - Support services-general administration 36,621 - 1,053 8,108 Support services-school administration - - - - Operation and maintenance of plant - - - - Student transportation - - - - Food services operations - - - - Capital outlay - - - - Debt service Principal - - - - Interest and other charges - - - - Total expenditures 292,333 - 48,558 377,130 Excess(deficiency)of revenues overexpenditures - - - - Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances - - - - Fund balances-beginning of year (2,367) - - (125,695) Fund balances-end of year $ (2,367) $ - $ - $ (125,695) - 140- Page 2 of 7 Special Revenue Carl D Perkins Carl D Perkins AMP Student Supp Special Carl D Perkins Secondary- Carl D Perkins Advancing Academic Projects- Secondary- PY Unliq. Secondary- Measurement Achievement Current Current Obligations Redistribution at PED Title IV 24171 24174 24175 24176 24188 24189 $ - $ - $ - $ - $ - $ - - 118,926 - - 231,405 301,297 - 118,926 - - 231,405 301,297 - 116,389 - - 59,072 256,520 - - - - 167,340 39,712 - 2,537 - - 4,993 5,065 - 118,926 - - 231,405 301,297 $ - $ - $ - $ - $ - $ - (Continued) - 141- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue Title I- Comprehensive Support and Improvement Title I-HS ARRA-IDEA-B CARES Act, (CSI) Redesign CEIS ESSER For the Year Ended June 30,2022 24190 24191 24212 24301 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough - - - 1 Federal direct - - - - Local sources - - - - State flowthrough - - - - State direct - - - - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Totalrevenues - - - 1 Expenditures Current Instruction - - - - Support services-students - - - - Support services-instruction - - - - Support services-general administration - - - - Support services-school administration - - - 1 Operation and maintenance of plant - - - - Student transportation - - - - Food services operations - - - - Capital outlay - - - - Debt service Principal - - - - Interestand othercharges - - - - Total expenditures - - - 1 Excess(deficiency)of revenues overexpenditures - - - - Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances - - - - Fund balances-beginning of year (865) - - - Fund balances-end of year $ (865) $ - $ - $ - - 142- Page 3 of 7 Special Revenue ARP Act, CARES Act, CRRSA-SEA ESSER III— ESSER-Social Reserve/ CARES Act, Homeless CARES Act, Emotional Retention ESSER II-Air ARP Act, Children and GEER Learning Stipends Quality ESSER III Youth 24305 24309 24312 24316 24330 24350 $ - $ - $ - $ - $ - $ - 1 15,000 - 192,359 646,030 16,287 1 15,000 - 192,359 646,030 16,287 1 8,000 - - 332,750 16,287 - 7,000 - - 193,175 - - - - - 8,048 - - - - - 2,242 - - - - 192,359 101,484 - - - - - 8,331 - 1 15,000 - 192,359 646,030 16,287 $ - $ - $ - $ - $ - $ - (Continued) - 143- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue ARP II- Emergency Relief Fund Homeless Impact Aid Impact Aid Children and Johnson Special Indian Youth O'Malley Education Education For the Year Ended June 30,2022 24355 25131 25145 25147 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough 13,012 - - - Federal direct - 357,425 84,105 50,935 Localsources - - - - State flowthrough - - - - State direct - - - - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Total revenues 13,012 357,425 84,105 50,935 Expenditures Current Instruction 11,459 247,533 - 115,720 Support services-students 1,553 108,816 716 17,252 Support services-instruction - - - - Support services-general administration - 18,968 - 2,945 Support services-school administration - 4,315 - 4,000 Operation and maintenance of plant - - - - Student transportation - - - - Food services operations - - - - Capital outlay - - - - Debt service Principal - - - - Interest and other charges - - - - Total expenditures 13,012 379,632 716 139,917 Excess(deficiency)of revenues over expenditures - (22,207) 83,389 (88,982) Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances - (22,207) 83,389 (88,982) Fund balances-beginning of year - (223,570) 92,844 98,636 Fund balances-end of year $ - $ (245,777) $ 176,233 $ 9,654 - 144- Page 4 of 7 Special Revenue 2009 Dual Credit Title XIX Native Kellogg Instructional Medicaid 3/21 Indian ED Mentoring For American Fund/Kellogg Materials/ Years Formula Grant Safe Schools Program Foundation HB 2 25153 25184 25187 25248 26121 27103 $ - $ - $ - $ - $ - $ - 1,622,394 798,069 - 243,531 - - - - - - - 7,217 1,622,394 798,069 - 243,531 - 7,217 - 125,597 - 6,970 8,720 - 604,764 430,396 - 87,308 71,044 - 45,162 - - - - - 14,677 113,814 - 2,109 - - - 128,262 - - - - 15,960 - - - - - 680,563 798,069 - 96,387 79,764 - 941,831 - - 147,144 (79,764) 7,217 941,831 - - 147,144 (79,764) 7,217 2,621,703 - 1 (150,491) 114,452 (7,217) $ 3,563,534 $ - $ 1 $ (3,347) $ 34,688 $ - (Continued) - 145- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue Instructional Materials- New Mexico 27107 GOB Special Reads To Lead Library Appropriations K-3 PreK Initiative Forthe YearEndedJune 30,2022 27107 27109 27114 27149 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough - - - - Federal direct - - - - Local sources - - - - State flowthrough 78,914 - - 821,866 State direct - - - - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Total revenues 78,914 - - 821,866 Expenditures Current Instruction - - - 722,820 Support services-students - - - - Support services-instruction 79,971 - - - Support services-general administration - - - 42,491 Support services-school administration - - - - Operation and maintenance of plant - - - - Student transportation - - - 59,032 Food services operations - - - - Capital outlay - - - - Debt service Principal - - - - Interestand othercharges - - - - Total expenditures 79,971 - - 824,343 Excess(deficiency)of revenues over expenditures (1,057) - - (2,477) Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances (1,057) - - (2,477) Fund balances-beginning of year (7,177) 556 70 (7,677) Fund balances-end of year $ (8,234) $ 556 $ 70 $ (10,154) - 146- Page 5 of 7 Special Revenue Breakfast for Open Sci Ed Indian Elementary Libraries GO NM Grown Expansion Education Act Students Bond 2006 School Buses FVV Initiative 27150 27155 27170 27178 27183 27202 $ - $ - $ - $ - $ - $ - 38,984 - - 1,124,561 13,000 10,102 38,984 - - 1,124,561 13,000 10,102 27,340 - - - - 10,102 11,644 - - - - - - - - - 13,000 - - - - 1,124,561 - - 38,984 - - 1,124,561 13,000 10,102 (6,391) 2,729 2,431 - - - $ (6,391) $ 2,729 $ 2,431 $ - $ - $ - (Continued) - 147- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue Career Technical Youth Education Conservation Public School Family Income Program Corp Bus Cameras Index (Pilot) NMEMNR For the Year Ended June 30,2022 27405 27407 27502 28133 Revenues Property taxes $ - $ - $ - $ - Oil and gas taxes - - - - Intergovernmental Federal flowthrough - - - - Federal direct - - - - Local sources - - - - State flowthrough 27,489 453,229 16,699 - State direct - - - - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Total revenues 27,489 453,229 16,699 - Expenditures Current Instruction - 453,229 16,543 - Support services-students - - - - Support services-instruction - - - - Support services-general administration - - - - Support services-school administration - - - - Operation and maintenance of plant - - - - Student transportation 27,489 - - - Food services operations - - - - Capital outlay - - - - Debt service Principal - - - - Interest and other charges - - - - Total expenditures 27,489 453,229 16,543 - Excess(deficiency)of revenues overexpenditures - - 156 - Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances - - 156 - Fund balances-beginning of year - - (156) 29,969 Fund balances-end of year $ - $ - $ - $ 29,969 - 148- Page 6 of 7 Special Revenue Capital Projects NM Schools Covid-19 Testing Westmeath Special Capital Special Capital GEAR-UP CHE Program DOH Foundation Bond Building Outlay-Local Outlay-State 28178 28211 29102 31100 31300 31400 $ - $ - $ - $ - $ - $ - - - 15,028 - - - - 165,485 - - - 169,558 - - - - 517 - - - - 11,364 - - - 165,485 15,028 11,364 517 169,558 - - 20,888 - - - - 165,635 - - - - - - - 254,842 (14,250) - - - - 981,773 - 169,558 - - - - 179,383 - - - - - 617 - - 165,635 20,888 1,236,615 165,750 169,558 - (150) (5,860) (1,225,251) (165,233) - - - - - 371,297 - - - - 2,000,000 - - - - - 2,000,000 371,297 - - (150) (5,860) 774,749 206,064 - 1,546 - 5,860 3,488,695 965,708 48,375 $ 1,546 $ (150) $ - $ 4,263,444 $ 1,171,772 $ 48,375 (Continued) - 149- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Capital Projects Capital Capital Capital Improvement Improvement Improvement SB-9 State s HB-33 s SB-9-State s SB-9-Local Match Cash For the Year Ended June 30,2022 31600 31700 31701 31703 Revenues Property taxes $ 2,154,096 $ - $ 2,918,212 $ - Oil and gas taxes 89,545 - 127,465 - Intergovernmental Federal flowthrough - - - - Federal direct - - - - Local sources - - - - State flowthrough - - - 409,317 State direct - - 489,094 - Charges for services - - - - Investment income - - - - Miscellaneous - - - - Total revenues 2,243,641 - 3,534,771 409,317 Expenditures Current Instruction - - - - Support services-students - - - - Support services-instruction - - - - Support services-general administration 21,990 - 29,917 - Support services-school administration - - - - Operation and maintenance of plant 3,580,975 179,517 2,698,329 - Student transportation - - - - Food services operations - - - - Capital outlay - - 126,724 - Debt service Principal - - 130,651 - Interest and other charges - - 300 - Total expenditures 3,602,965 179,517 2,985,921 - Excess(deficiency)of revenues over expenditures (1,359,324) (179,517) 548,850 409,317 Other financing sources Proceeds from sale of capital assets - - - - Bond proceeds - - - - Total other financing sources(uses) - - - - Net change in fund balances (1,359,324) (179,517) 548,850 409,317 Fund balances-beginning of year 1,955,476 179,517 2,254,319 249,124 Fund balances-end of year $ 596,152 $ - $ 2,803,169 $ 658,441 - 150- Page 7 of 7 Capital Projects Debt Service Ed. Technology Total Equipment Nonmajor Act Ed.Tech Governmental 31900 43000 Funds $ - $ 1,195,773 $ 6,268,081 - 53,700 270,710 - - 15,465,875 - - 3,156,459 - - 15,028 - - 3,001,378 - - 824,137 - - 1,648,447 38 217 14,762 - - 29,450 38 1,249,690 30,694,327 - - 7,175,299 - - 4,344,466 - - 125,133 - 12,366 339,120 - - 1,080,608 6,375 - 6,999,631 - - 86,521 - - 6,507,171 - - 2,556,747 - 1,250,000 1,560,034 - 35,270 36,187 6,375 1,297,636 30,810,917 (6,337) (47,946) (116,590) - - 371,297 - - 2,000,000 - - 2,371,297 (6,337) (47,946) 2,254,707 29,793 1,740,878 15,324,545 $ 23,456 $ 1,692,932 $ 17,579,252 - 151- State of New Mexico Farmington Municipal School District No. 5 Combining Balance Sheet General Fund Pupil Operating Transportation June 30, 2022 11000 13000 Total Assets Cash and cash equivalents $ 2,952,372 $ 79,377 $ 3,031,749 Investments 12,982 - 12,982 Receivables Property taxes 43,579 - 43,579 Due from other funds 6,058,501 - 6,058,501 Inventory - 292,758 292,758 Total assets $ 9,067,434 $ 372,135 $ 9,439,569 Liabilities,deferred inflows of resources, and fund balances Liabilities Accounts payable $ 1,450,760 $ 93,288 $ 1,544,048 Accrued payroll 1,685,168 49,735 1,734,903 Totalliabilities 3,135,928 143,023 3,278,951 Deferred inflows of resources Unavailable revenue- property taxes 38,749 - 38,749 Total deferred inflows of resources 38,749 - 38,749 Fund balances Nonspendable - 292,758 292,758 Spendable Committed 5,635,964 - 5,635,964 Unassigned (deficit) 256,793 (63,646) 193,147 Total fund balances 5,892,757 229,112 6,121,869 Total liabilities, deferred inflows of resources, and fund balances $ 9,067,434 $ 372,135 $ 9,439,569 - 152- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances General Fund Pupil Operating Transportation For the Year Ended June 30, 2022 11000 13000 Total Revenues Property taxes $ 577,288 $ - $ 577,288 Oil and gas taxes 31,863 - 31,863 Intergovernmental Federal flowthrough 225,028 - 225,028 Federal direct 126,664 - 126,664 Local sources 166,438 - 166,438 State flowthrough 592,011 19,738 611,749 State direct 93,515,835 - 93,515,835 Transportation distribution - 3,016,861 3,016,861 Charges for services 31,856 - 31,856 Investment income 12 - 12 Miscellaneous 34,146 - 34,146 Total revenues 95,301,141 3,036,599 98,337,740 Expenditures Current Instruction 62,278,074 - 62,278,074 Support services-students 10,367,348 - 10,367,348 Support services- instruction 1,313,318 - 1,313,318 Support services-general administration 1,756,965 - 1,756,965 Support services-school administration 6,023,029 - 6,023,029 Central services 1,593,100 - 1,593,100 Operation and maintenance plant 11,788,509 - 11,788,509 Student transportation - 3,174,303 3,174,303 Community services operations 288 - 288 Capital outlay 5,121 248,544 253,665 Total expenditures 95,125,752 3,422,847 98,548,599 Excess (deficiency) of revenues over expenditures 175,389 (386,248) (210,859) Net change in fund balances 175,389 (386,248) (210,859) Fund balances- beginning of year 5,717,368 615,360 6,332,728 Fund balances-end of year $ 5,892,757 $ 229,112 $ 6,121,869 - 153- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Operating Fund (11000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30,2022 Original Final Actual Final to Actual Revenues Property taxes $ 584,503 $ 584,503 $ 583,499 $ (1,004) Oil and gas taxes 20,150.00 20,150.00 31,863.00 11,713 Intergovernmental Federal flowthrough 17,628 17,628 225,028 207,400 Federal direct 203,330 203,330 126,664 (76,666) Local sources 56,603 56,603 166,438 109,835 State flowthrough - 1,251,741 592,011 (659,730) State direct 90,451,699 93,515,835 93,515,835 - Charges for services 21,673 21,673 31,856 10,183 Investment income 14 14 12 (2) Miscellaneous 41,479 41,479 34,146 (7,333) Total revenues 91,397,079 95,712,956 95,307,352 (405,604) Expenditures Current Instruction 64,692,021 65,806,696 62,528,802 3,277,894 Support services-students 11,052,677 11,663,648 10,360,507 1,303,141 Support services-instruction 1,852,385 1,852,385 1,309,646 542,739 Support services-general administration 1,696,668 1,796,168 1,748,037 48,131 Support services-school administration 5,663,303 6,616,314 6,017,382 598,932 Central services 2,594,922 2,743,922 1,868,437 875,485 Operation and maintenance of plant 11,430,686 12,930,686 11,919,787 1,010,899 Other support services 98,703 98,703 - 98,703 Community services operations 1,974 1,974 288 1,686 Total expenditures 99,083,339 103,510,496 95,752,886 7,757,610 Excess(deficiency)of revenues over expenditures (7,686,260) (7,797,540) (445,534) 7,352,006 Other financing sources Designated cash balance (budgeted increase in cash) 7,686,260 7,797,540 - (7,797,540) Total other financing sources 7,686,260 7,797,540 - (7,797,540) Net change in fund balance - - (445,534) (445,534) Fund balance-beginning of year - - 7,784,221 7,784,221 Fund balance-end of year $ - $ - $ 7,338,687 $ 7,338,687 Net change in fund balance(Non-GAAP Budgetary Basis) $ (445,534) Adjustments to revenues for taxes and intergovernmental revenue (6,211) Adjustments to expenditures for supplies and payroll expenditures 627,134 Net change in fund balance(GAAP Basis) $ 175,389 - 154- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Pupil Transportation Fund (13000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues State flowthrough $ - $ 19,738 $ 19,738 $ - Transportation distribution 3,400,070 3,400,070 3,016,861 (383,209) Total revenues 3,400,070 3,419,808 3,036,599 (383,209) Expenditures Current Student transportation 3,250,070 3,372,598 3,250,409 122,189 Total expenditures 3,400,070 3,522,598 3,492,956 29,642 Excess (deficiency) of revenues over expenditures - (102,790) (456,357) (353,567) Other financing sources Designated cash balance (budgeted increase in cash) - 102,790 - (102,790) Total other financing sources - 102,790 - (102,790) Net change in fund balance - - (456,357) (456,357) Fund balance- beginning of year - - 485,999 485,999 Fund balance -end of year $ - $ - $ 29,642 $ 29,642 Net change in fund balance (Non-GAAP Budgetary Basis) $ (456,357) Adjustments to expenditures for supplies and payroll expenditures 70,109 Net change in fund balance (GAAP Basis) $ (386,248) - 155- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Food Services Special Revenue Fund (21000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 1 $ 5,391,686 $ 6,068,421 $ 676,735 Local sources 1 1 - (1) Charges for services 3 171,789 176,264 4,475 Investment income 1 47 61 14 Total revenues 6 5,563,523 6,244,746 681,223 Expenditures Current Food services operations 533,291 6,006,362 5,953,172 53,190 Total expenditures 533,291 6,006,362 5,953,172 53,190 Excess (deficiency) of revenues over expenditures (533,285) (442,839) 291,574 734,413 Other financing sources Designated cash balance (budgeted increase in cash) 533,285 442,839 - (442,839) Total other financing sources 533,285 442,839 - (442,839) Net change in fund balance - - 291,574 291,574 Fund balance- beginning of year - - 442,839 442,839 Fund balance -end of year $ - $ - $ 734,413 $ 734,413 Net change in fund balance (Non-GAAP Budgetary Basis) $ 291,574 Adjustments to revenues for intergovernmental revenue 1,150,115 Adjustments to expenditures for supplies and payroll expenditures (498,164) Net change in fund balance (GAAP Basis) $ 943,525 - 156- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Athletics Special Revenue Fund (22000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Charges for services $ - $ 401,565 $ 424,926 $ 23,361 Total revenues - 401,565 424,926 23,361 Expenditures Current Instruction 433,713 602,250 358,653 243,597 Total expenditures 433,713 602,250 358,653 243,597 Excess (deficiency) of revenues over expenditures (433,713) (200,685) 66,273 266,958 Other financing sources Designated cash balance (budgeted increase in cash) 433,713 200,685 - (200,685) Total other financing sources 433,713 200,685 - (200,685) Net change in fund balance - - 66,273 66,273 Fund balance- beginning of year - - 205,606 205,606 Fund balance - end of year $ - $ - $ 271,879 $ 271,879 Net change in fund balance (Non-GAAP Budgetary Basis) $ 66,273 No adjustments to revenues - Adjustments to expenditures for supplies and payroll expenditures (4,371) Net change in fund balance (GAAP Basis) $ 61,902 - 157- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Non-Instructional Support Special Revenue Fund (23000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Charges for services $ - $ - $ 1,046,740 $ 1,046,740 Investment income - - 3,082 3,082 Miscellaneous - - 29,450 29,450 Total revenues - - 1,079,272 1,079,272 Expenditures Current Instruction 510,080 1,528,067 1,134,486 393,581 Total expenditures 510,080 1,528,067 1,134,486 393,581 Excess (deficiency) of revenues over expenditures (510,080) (1,528,067) (55,214) 1,472,853 Other financing sources Designated cash balance (budgeted increase in cash) 510,080 1,528,067 - (1,528,067) Total other financing sources 510,080 1,528,067 - (1,528,067) Net change in fund balance - - (55,214) (55,214) Fund balance- beginning of year - - 1,528,067 1,528,067 Fund balance -end of year $ - $ - $ 1,472,853 $ 1,472,853 Net change in fund balance (Non-GAAP Budgetary Basis) $ (55,214) No adjustments to revenues - Adjustments to expenditures for supplies and payroll expenditures (20,602) Net change in fund balance (GAAP Basis) $ (75,816) - 158- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Title I - ESEA Special Revenue Fund (24101) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 2,639,659 $ 2,639,659 $ 3,036,784 $ 397,125 Total revenues 2,639,659 2,639,659 3,036,784 397,125 Expenditures Current Instruction 1,557,006 1,674,323 1,674,026 297 Support services-students 653,739 594,739 594,739 - Support services-school administration 370,597 370,597 362,813 7,784 Total expenditures 2,639,659 2,639,659 2,631,578 8,081 Excess (deficiency) of revenues over expenditures - - 405,206 405,206 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 405,206 405,206 Fund balance- beginning of year - - (683,942) (683,942) Fund balance -end of year $ - $ - $ (278,736) $ (278,736) Net change in fund balance (Non-GAAP Budgetary Basis) $ 405,206 Adjustments to revenues for intergovernmental revenue (404,910) Adjustments to expenditures for supplies and payroll expenditures (296) Net change in fund balance (GAAP Basis) $ - - 159- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Javits Gifted and Talented Special Revenue Fund (24102) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 1,610 1,610 Fund balance - end of year $ - $ - $ 1,610 $ 1,610 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 160- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Entitlement IDEA-B Special Revenue Fund (24106) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 3,018,723 $ 3,458,854 $ 3,334,214 $ (124,640) Total revenues 3,018,723 3,458,854 3,334,214 (124,640) Expenditures Current Instruction 951,247 951,247 782,998 168,249 Support services-students 1,317,134 1,791,070 1,735,682 55,388 Support services-general administration 52,133 11,728 11,728 - Support services-school administration 698,209 704,809 584,575 120,234 Total expenditures 3,018,723 3,458,854 3,114,983 343,871 Excess (deficiency) of revenues over expenditures - - 219,231 219,231 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 219,231 219,231 Fund balance- beginning of year - - (381,370) (381,370) Fund balance - end of year $ - $ - $ (162,139) $ (162,139) Net change in fund balance (Non-GAAP Budgetary Basis) $ 219,231 Adjustments to revenues for intergovernmental revenue (219,615) Adjustments to expenditures for supplies and payroll expenditures 384 Net change in fund balance (GAAP Basis) $ - - 161- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Preschool IDEA-B Special Revenue Fund (24109) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 79,213 $ 79,213 $ 87,104 $ 7,891 Total revenues 79,213 79,213 87,104 7,891 Expenditures Current Instruction 77,523 77,523 75,762 1,761 Support services-general administration 1,690 1,690 1,690 - Total expenditures 79,213 79,213 77,452 1,761 Excess (deficiency) of revenues over expenditures - - 9,652 9,652 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 9,652 9,652 Fund balance- beginning of year - - (8,696) (8,696) Fund balance - end of year $ - $ - $ 956 $ 956 Net change in fund balance (Non-GAAP Budgetary Basis) $ 9,652 Adjustments to revenues for intergovernmental revenue (9,652) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 162- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Education of Homeless Special Revenue Fund (24113) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 15,000 $ 15,000 $ 24,024 $ 9,024 Total revenues 15,000 15,000 24,024 9,024 Expenditures Current I n structi on 15,000 15,000 15,000 - Total expenditures 15,000 15,000 15,000 - Excess (deficiency) of revenues over expenditures - - 9,024 9,024 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 9,024 9,024 Fund balance- beginning of year - - 20,104 20,104 Fund balance - end of year $ - $ - $ 29,128 $ 29,128 Net change in fund balance (Non-GAAP Budgetary Basis) $ 9,024 Adjustments to revenues for intergovernmental revenue (9,027) Adjustments to expenditures for supplies and payroll expenditures 3 Net change in fund balance (GAAP Basis) $ - - 163- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual IDEA-B Private Schools Share Special Revenue Fund (24115) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Support services-students - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - (117) (117) Fund balance - end of year $ - $ - $ (117) $ (117) Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 164- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Fresh Fruits and Vegetables Special Revenue Fund (24118) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 106,328 $ 160,200 $ 89,881 $ (70,319) Total revenues 106,328 160,200 89,881 (70,319) Expenditures Current Food services operations 106,328 160,200 156,078 4,122 Total expenditures 106,328 160,200 156,078 4,122 Excess (deficiency) of revenues over expenditures - - (66,197) (66,197) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (66,197) (66,197) Fund balance- beginning of year - - (22,044) (22,044) Fund balance - end of year $ - $ - $ (88,241) $ (88,241) Net change in fund balance (Non-GAAP Budgetary Basis) $ (66,197) Adjustments to revenues for intergovernmental revenue 66,197 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 165- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual 21st Century Community Learning Centers Special Revenue Fund (24119) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 19,398 $ 313,403 $ 215,374 $ (98,029) Total revenues 19,398 313,403 215,374 (98,029) Expenditures Current Instruction 19,398 255,712 255,711 1 Support services-general administration - 51,091 36,621 14,470 Central services - 6,600 - 6,600 Total expenditures 19,398 313,403 292,332 21,071 Excess (deficiency) of revenues over expenditures - - (76,958) (76,958) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (76,958) (76,958) Fund balance- beginning of year - - (122,012) (122,012) Fund balance - end of year $ - $ - $ (198,970) $ (198,970) Net change in fund balance (Non-GAAP Budgetary Basis) $ (76,958) Adjustments to revenues for intergovernmental revenue 76,959 Adjustments to expenditures for supplies and payroll expenditures (1) Net change in fund balance (GAAP Basis) $ - - 166- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Title I - 1003g Special Revenue Fund (24124) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 52,701 52,701 Fund balance - end of year $ - $ - $ 52,701 $ 52,701 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 167- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual English Language Acquisition Special Revenue Fund (24153) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 100,919 $ 100,919 $ 114,327 $ 13,408 Total revenues 100,919 100,919 114,327 13,408 Expenditures Current Instruction 29,420 40,620 39,136 1,484 Support services-students 69,344 58,144 8,369 49,775 Support services-general administration 2,155 2,155 1,053 1,102 Total expenditures 100,919 100,919 48,558 52,361 Excess (deficiency) of revenues over expenditures - - 65,769 65,769 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 65,769 65,769 Fund balance- beginning of year - - (48,454) (48,454) Fund balance - end of year $ - $ - $ 17,315 $ 17,315 Net change in fund balance (Non-GAAP Budgetary Basis) $ 65,769 Adjustments to revenues for intergovernmental revenue (65,769) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 168- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Teacher/Principal Training & Recruiting Special Revenue Fund (24154) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 404,736 $ 443,799 $ 331,035 $ (112,764) Total revenues 404,736 443,799 331,035 (112,764) Expenditures Current Instruction 252,752 325,982 275,622 50,360 Support services-students 143,349 108,349 96,298 12,051 Support services-general administration 8,635 9,468 8,108 1,360 Total expenditures 404,736 443,799 380,028 63,771 Excess (deficiency) of revenues over expenditures - - (48,993) (48,993) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (48,993) (48,993) Fund balance- beginning of year - - (218,755) (218,755) Fund balance - end of year $ - $ - $ (267,748) $ (267,748) Net change in fund balance (Non-GAAP Budgetary Basis) $ (48,993) Adjustments to revenues for intergovernmental revenue 46,095 Adjustments to expenditures for supplies and payroll expenditures 2,898 Net change in fund balance (GAAP Basis) $ - - 169- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Carl D Perkins Special Projects - Current Special Revenue Fund (24171) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 3,657 $ 3,657 Total revenues - - 3,657 3,657 Expenditures Current Support services-students - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 3,657 3,657 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 3,657 3,657 Fund balance- beginning of year - - (3,657) (3,657) Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 3,657 Adjustments to revenues for intergovernmental revenue (3,657) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 170- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Carl D Perkins Secondary - Current Special Revenue Fund (24174) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 127,376 $ 139,724 $ 130,902 $ (8,822) Total revenues 127,376 139,724 130,902 (8,822) Expenditures Current Instruction 116,068 128,416 116,389 12,027 Support services-general administration 6,108 6,108 2,537 3,571 Capital outlay 5,200 5,200 - 5,200 Total expenditures 127,376 139,724 118,926 20,798 Excess (deficiency) of revenues over expenditures - - 11,976 11,976 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 11,976 11,976 Fund balance- beginning of year - - (13,282) (13,282) Fund balance - end of year $ - $ - $ (1,306) $ (1,306) Net change in fund balance (Non-GAAP Budgetary Basis) $ 11,976 Adjustments to revenues for intergovernmental revenue (11,976) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 171- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Carl D Perkins Secondary - PY Unliq. Obligations Special Revenue Fund (24175) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 3 3 Fund balance - end of year $ - $ - $ 3 $ 3 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 172- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Carl D Perkins Secondary - Redistribution Special Revenue Fund (24176) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 13,940 $ 13,940 Total revenues - - 13,940 13,940 Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 13,940 13,940 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 13,940 13,940 Fund balance- beginning of year - - (14,557) (14,557) Fund balance - end of year $ - $ - $ (617) $ (617) Net change in fund balance (Non-GAAP Budgetary Basis) $ 13,940 Adjustments to revenues for intergovernmental revenue (13,940) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 173- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual AMP Advancing Measurement at PED Special Revenue Fund (24188) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ 271,050 $ 62,238 $ (208,812) Total revenues - 271,050 62,238 (208,812) Expenditures Current Instruction - 63,814 61,692 2,122 Support services-students - 201,327 167,340 33,987 Support services-general administration - 5,909 4,993 916 Total expenditures - 271,050 234,025 37,025 Excess (deficiency) of revenues over expenditures - - (171,787) (171,787) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (171,787) (171,787) Fund balance- beginning of year - - (62,239) (62,239) Fund balance - end of year $ - $ - $ (234,026) $ (234,026) Net change in fund balance (Non-GAAP Budgetary Basis) $ (171,787) Adjustments to revenues for intergovernmental revenue 169,167 Adjustments to expenditures for supplies and payroll expenditures 2,620 Net change in fund balance (GAAP Basis) $ - - 174- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Student Supp Academic Achievement Title IV Special Revenue Fund (24189) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 350,515 $ 303,990 $ 196,778 $ (107,212) Total revenues 350,515 303,990 196,778 (107,212) Expenditures Current Instruction 303,044 256,520 256,520 - Support services-students 39,713 39,712 39,712 - Support services-general administration 7,758 7,758 5,065 2,693 Total expenditures 350,515 303,990 301,297 2,693 Excess (deficiency) of revenues over expenditures - - (104,519) (104,519) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (104,519) (104,519) Fund balance- beginning of year - - (4,432) (4,432) Fund balance - end of year $ - $ - $ (108,951) $ (108,951) Net change in fund balance (Non-GAAP Budgetary Basis) $ (104,519) Adjustments to revenues for intergovernmental revenue 104,519 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 175- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Title I - Comprehensive Support and Improvement (CSI) Special Revenue Fund (24190) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 709 $ 709 Totalrevenues - - 709 709 Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 709 709 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 709 709 Fund balance- beginning of year - - (724) (724) Fund balance-end of year $ - $ - $ (15) $ (15) Net change in fund balance (Non-GAAP Budgetary Basis) $ 709 Adjustments to revenues for intergovernmental revenue (709) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 176- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Title I - HS Redesign Special Revenue Fund (24191) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 83,820 $ 83,820 Total revenues - - 83,820 83,820 Expenditures Current Support services-students - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 83,820 83,820 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 83,820 83,820 Fund balance- beginning of year - - (83,820) (83,820) Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 83,820 Adjustments to revenues for intergovernmental revenue (83,820) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 177- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual ARRA - IDEA-B CEIS Special Revenue Fund (24212) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 55 55 Fund balance - end of year $ - $ - $ 55 $ 55 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 178- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CARES Act, ESSER Special Revenue Fund (24301) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 371,695 $ 371,695 Total revenues - - 371,695 371,695 Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 371,695 371,695 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 371,695 371,695 Fund balance- beginning of year - - (371,695) (371,695) Fund balance-end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 371,695 Adjustments to revenues for intergovernmental revenue (371,694) Adjustments to expenditures for supplies and payroll expenditures (1) Net change in fund balance (GAAP Basis) $ - - 179- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CARES Act, GEER Special Revenue Fund (24305) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 40,632 $ 40,632 Total revenues - - 40,632 40,632 Expenditures Current Instruction - - 1 (1) Total expenditures - - 1 (1) Excess (deficiency) of revenues over expenditures - - 40,631 40,631 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 40,631 40,631 Fund balance- beginning of year - - (40,631) (40,631) Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 40,631 Adjustments to revenues for intergovernmental revenue (40,631) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 180- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CARES Act, ESSER - Social Emotional Learning Special Revenue Fund (24309) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ 15,000 $ 4,306 $ (10,694) Total revenues - 15,000 4,306 (10,694) Expenditures Current Instruction - 8,000 8,000 - Support services-students - 7,000 7,000 - Total expenditures - 15,000 15,000 - Excess (deficiency) of revenues overexpenditures - - (10,694) (10,694) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (10,694) (10,694) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (10,694) $ (10,694) Net change in fund balance (Non-GAAP Budgetary Basis) $ (10,694) Adjustments to revenues for intergovernmental revenue 10,694 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 181- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CRRSA - SEA Reserve/Retention Stipends Special Revenue Fund (24312) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ - $ 50,700 $ 50,700 Total revenues - - 50,700 50,700 Expenditures Current Support services-students - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 50,700 50,700 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 50,700 50,700 Fund balance- beginning of year - - (50,700) (50,700) Fund balance-end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 50,700 Adjustments to revenues for intergovernmental revenue (50,700) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 182- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual CARES Act, ESSER II - Air Quality Special Revenue Fund (24316) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ 192,359 $ 123,352 $ (69,007) Total revenues - 192,359 123,352 (69,007) Expenditures Current Operation and maintenance of plant - 192,359 192,359 - Total expenditures - 192,359 192,359 - Excess (deficiency) of revenues over expenditures - - (69,007) (69,007) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (69,007) (69,007) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (69,007) $ (69,007) Net change in fund balance (Non-GAAP Budgetary Basis) $ (69,007) Adjustments to revenues for intergovernmental revenue 69,007 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 183- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual ARP Act, ESSER III Special Revenue Fund (24330) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ 18,991,040 $ - $ (18,991,040) Total revenues - 18,991,040 - (18,991,040) Expenditures Current Instruction - 2,600,000 188,613 2,411,387 Support services-students - 8,093,039 197,629 7,895,410 Support services-general administration - 277,163 8,048 269,115 Support services-school administration - 50,000 2,242 47,758 Operation and maintenance of plant - 7,970,838 101,484 7,869,354 Total expenditures - 18,991,040 501,609 18,489,431 Excess (deficiency) of revenues over expenditures - - (501,609) (501,609) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (501,609) (501,609) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (501,609) $ (501,609) Net change in fund balance (Non-GAAP Budgetary Basis) $ (501,609) Adjustments to revenues for intergovernmental revenue 646,030 Adjustments to expenditures for supplies and payroll expenditures (144,421) Net change in fund balance (GAAP Basis) $ - - 184- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual ARP Act, ESSER III - Homeless Children and Youth Special Revenue Fund (24350) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ 48,175 $ 48,175 $ 4,878 $ (43,297) Total revenues 48,175 48,175 4,878 (43,297) Expenditures Current Instruction 48,175 48,175 15,957 32,218 Total expenditures 48,175 48,175 15,957 32,218 Excess (deficiency) of revenues over expenditures - - (11,079) (11,079) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (11,079) (11,079) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (11,079) $ (11,079) Net change in fund balance (Non-GAAP Budgetary Basis) $ (11,079) Adjustments to revenues for intergovernmental revenue 11,409 Adjustments to expenditures for supplies and payroll expenditures (330) Net change in fund balance (GAAP Basis) $ - - 185- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual ARP II - Emergency Relief Fund Homeless Children and Youth Special Revenue Fund (24355) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal flowthrough $ - $ 91,946 $ 10,423 $ (81,523) Total revenues - 91,946 10,423 (81,523) Expenditures Current Instruction - 76,946 11,459 65,487 Support services-students - 15,000 1,553 13,447 Total expenditures - 91,946 13,012 78,934 Excess (deficiency) of revenues over expenditures - - (2,589) (2,589) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (2,589) (2,589) Fund balance- beginning of year - - - - Fund balance -end of year $ - $ - $ (2,589) $ (2,589) Net change in fund balance (Non-GAAP Budgetary Basis) $ (2,589) Adjustments to revenues for intergovernmental revenue 2,589 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 186- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Johnson O'Malley Special Revenue Fund (25131) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ 428,902 $ 404,710 $ (24,192) Total revenues - 428,902 404,710 (24,192) Expenditures Current Instruction - 291,569 242,345 49,224 Support services-students - 110,481 108,816 1,665 Support services-general administration - 22,537 18,788 3,749 Support services-school administration - 4,315 4,225 90 Total expenditures - 428,902 374,174 54,728 Excess (deficiency) of revenues over expenditures - - 30,536 30,536 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 30,536 30,536 Fund balance- beginning of year - - (281,128) (281,128) Fund balance - end of year $ - $ - $ (250,592) $ (250,592) Net change in fund balance (Non-GAAP Budgetary Basis) $ 30,536 Adjustments to revenues for intergovernmental revenue (47,285) Adjustments to expenditures for supplies and payroll expenditures (5,458) Net change in fund balance (GAAP Basis) $ (22,207) - 187- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Impact Aid Special Education Special Revenue Fund (25145) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ 84,105 $ 84,105 $ - Total revenues - 84,105 84,105 - Expenditures Current Instruction - 171,949 - 171,949 Support services-students - 5,000 716 4,284 Total expenditures - 176,949 716 176,233 Excess (deficiency) of revenues over expenditures - (92,844) 83,389 176,233 Other financing sources Designated cash balance (budgeted increase in cash) - 92,844 - (92,844) Total other financing sources - 92,844 - (92,844) Net change in fund balance - - 83,389 83,389 Fund balance- beginning of year - - 92,844 92,844 Fund balance -end of year $ - $ - $ 176,233 $ 176,233 Net change in fund balance (Non-GAAP Budgetary Basis) $ 83,389 No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ 83,389 - 188- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Impact Aid Indian Education Special Revenue Fund (25147) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ 135,826 $ 50,935 $ (84,891) Total revenues - 135,826 50,935 (84,891) Expenditures Current Instruction - 152,358 115,720 36,638 Support services-students - 73,485 15,360 58,125 Support services-general administration - 4,619 2,945 1,674 Support services-school administration - 4,000 4,000 - Total expenditures - 234,462 138,025 96,437 Excess (deficiency) of revenues over expenditures - (98,636) (87,090) 11,546 Other financing sources Designated cash balance (budgeted increase in cash) - 98,636 - (98,636) Total other financing sources - 98,636 - (98,636) Net change in fund balance - - (87,090) (87,090) Fund balance- beginning of year - - 98,636 98,636 Fund balance -end of year $ - $ - $ 11,546 $ 11,546 Net change in fund balance (Non-GAAP Budgetary Basis) $ (87,090) No adjustments to revenues - Adjustments to expenditures for supplies and payroll expenditures (1,892) Net change in fund balance (GAAP Basis) $ (88,982) - 189- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Title XIX Medicaid 3/21 Years Special Revenue Fund (25153) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ - $ 1,740,375 $ 1,740,375 Total revenues - - 1,740,375 1,740,375 Expenditures Current Support services-students - 1,339,000 582,055 756,945 Support services- instruction - 140,000 48,749 91,251 Support services-general administration - 54,710 14,677 40,033 Total expenditures 16,247 2,415,807 687,916 1,727,891 Excess (deficiency) of revenues over expenditures (16,247) (2,415,807) 1,052,459 3,468,266 Other financing sources Designated cash balance (budgeted increase in cash) 16,247 2,415,807 - (2,415,807) Total other financing sources 16,247 2,415,807 - (2,415,807) Net change in fund balance - - 1,052,459 1,052,459 Fund balance- beginning of year - - 2,415,807 2,415,807 Fund balance -end of year $ - $ - $ 3,468,266 $ 3,468,266 Net change in fund balance (Non-GAAP Budgetary Basis) $ 1,052,459 Adjustments to revenues for intergovernmental revenue (117,981) Adjustments to expenditures for supplies and payroll expenditures 7,353 Net change in fund balance (GAAP Basis) $ 941,831 - 190- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Indian ED Formula Grant Special Revenue Fund (25184) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ 797,704 $ 1,092,178 $ 294,474 Total revenues - 797,704 1,092,178 294,474 Expenditures Current Instruction - 107,818 107,818 - Support services-students - 446,660 435,413 11,247 Support services-general administration - 114,300 113,548 752 Support services-school administration - 128,926 127,763 1,163 Total expenditures - 797,704 784,542 13,162 Excess (deficiency) of revenues over expenditures - - 307,636 307,636 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 307,636 307,636 Fund balance- beginning of year - - (424,078) (424,078) Fund balance - end of year $ - $ - $ (116,442) $ (116,442) Net change in fund balance (Non-GAAP Budgetary Basis) $ 307,636 Adjustments to revenues for intergovernmental revenue (294,109) Adjustments to expenditures for supplies and payroll expenditures (13,527) Net change in fund balance (GAAP Basis) $ - - 191- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Mentoring For Safe Schools Special Revenue Fund (25187) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 1 1 Fund balance - end of year $ - $ - $ 1 $ 1 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 192- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Native American Program Special Revenue Fund (25248) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Federal direct $ - $ 98,641 $ 243,531 $ 144,890 Total revenues - 98,641 243,531 144,890 Expenditures Current Instruction - 9,224 9,224 - Support services-students - 87,308 87,308 - Support services-general administration - 2,109 2,109 - Total expenditures - 98,641 98,641 - Excess (deficiency) of revenues over expenditures - - 144,890 144,890 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 144,890 144,890 Fund balance- beginning of year - - (144,890) (144,890) Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 144,890 No adjustments to revenues - Adjustments to expenditures for supplies and payroll expenditures 2,254 Net change in fund balance (GAAP Basis) $ 147,144 - 193- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Kellogg Fund/Kellogg Foundation Special Revenue Fund (26121) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Local sources $ - $ 100,000 $ 100,000 $ - Total revenues - 100,000 100,000 - Expenditures Current Instruction - 8,681 8,683 (2) Support services-students - 105,771 71,044 34,727 Total expenditures - 114,452 79,727 34,725 Excess (deficiency) of revenues over expenditures - (14,452) 20,273 34,725 Other financing sources Designated cash balance (budgeted increase in cash) - 14,452 - (14,452) Total other financing sources - 14,452 - (14,452) Net change in fund balance - - 20,273 20,273 Fund balance- beginning of year - - 14,452 14,452 Fund balance -end of year $ - $ - $ 34,725 $ 34,725 Net change in fund balance (Non-GAAP Budgetary Basis) $ 20,273 Adjustments to revenues for intergovernmental revenue (100,000) Adjustments to expenditures for supplies and payroll expenditures (37) Net change in fund balance (GAAP Basis) $ (79,764) - 194- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual 2009 Dual Credit Instructional Materials/HB 2 Special Revenue Fund (27103) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ - $ 7,217 $ 7,217 Total revenues - - 7,217 7,217 Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 7,217 7,217 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 7,217 7,217 Fund balance- beginning of year - - (7,217) (7,217) Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ 7,217 No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ 7,217 - 195- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual 27107 GOB Library Special Revenue Fund (27107) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 81,694 $ 81,694 $ 88,440 $ 6,746 Total revenues 81,694 81,694 88,440 6,746 Expenditures Current Support services- instruction 81,694 81,694 78,914 2,780 Total expenditures 81,694 81,694 78,914 2,780 Excess (deficiency) of revenues over expenditures - - 9,526 9,526 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 9,526 9,526 Fund balance- beginning of year - - (59,833) (59,833) Fund balance - end of year $ - $ - $ (50,307) $ (50,307) Net change in fund balance (Non-GAAP Budgetary Basis) $ 9,526 Adjustments to revenues for intergovernmental revenue (9,526) Adjustments to expenditures for supplies (1,057) Net change in fund balance (GAAP Basis) $ (1,057) - 196- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Instructional Materials - Special Appropriation Special Revenue Fund (27109) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 556 556 Fund balance - end of year $ - $ - $ 556 $ 556 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 197- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual New Mexico Reads To Lead K-3 Special Revenue Fund (27114) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 70 70 Fund balance - end of year $ - $ - $ 70 $ 70 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - - 198- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual PreK Initiative Special Revenue Fund (27149) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 834,000 $ 837,850 $ 767,369 $ (70,481) Total revenues 834,000 837,850 767,369 (70,481) Expenditures Current Instruction 745,500 730,317 721,094 9,223 Support services-general administration 38,500 48,500 42,259 6,241 Student transportation 50,000 59,033 59,032 1 Total expenditures 834,000 837,850 822,385 15,465 Excess (deficiency) of revenues over expenditures - - (55,016) (55,016) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (55,016) (55,016) Fund balance- beginning of year - - (148,592) (148,592) Fund balance - end of year $ - $ - $ (203,608) $ (203,608) Net change in fund balance (Non-GAAP Budgetary Basis) $ (55,016) Adjustments to revenues for intergovernmental revenue 54,497 Adjustments to expenditures for supplies and payroll expenditures (1,958) Net change in fund balance (GAAP Basis) $ (2,477) - 199- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Indian Education Act Special Revenue Fund (27150) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ 70,608 $ 44,004 $ (26,604) Total revenues - 70,608 44,004 (26,604) Expenditures Current Instruction - 53,661 27,340 26,321 Support services-students - 15,547 11,644 3,903 Support services-school administration - 1,400 - 1,400 Total expenditures - 70,608 38,984 31,624 Excess (deficiency) of revenues over expenditures - - 5,020 5,020 Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - 5,020 5,020 Fund balance- beginning of year - - (25,407) (25,407) Fund balance - end of year $ - $ - $ (20,387) $ (20,387) Net change in fund balance (Non-GAAP Budgetary Basis) $ 5,020 Adjustments to revenues for intergovernmental revenue (5,020) No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -200- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Breakfast for Elementary Students Special Revenue Fund (27155) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Food services operations - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 2,729 2,729 Fund balance - end of year $ - $ - $ 2,729 $ 2,729 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -201- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Libraries GO Bond 2006 Special Revenue Fund (27170) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State direct $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 2,431 2,431 Fund balance - end of year $ - $ - $ 2,431 $ 2,431 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -202- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual School Buses Special Revenue Fund (27178) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 1,124,561 $ 1,124,561 $ - $ (1,124,561) Total revenues 1,124,561 1,124,561 - (1,124,561) Expenditures Capital outlay 1,124,561 1,124,561 1,124,561 - Total expenditures 1,124,561 1,124,561 1,124,561 - Excess (deficiency) of revenues over expenditures - - (1,124,561) (1,124,561) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (1,124,561) (1,124,561) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (1,124,561) $ (1,124,561) Net change in fund balance (Non-GAAP Budgetary Basis) $ (1,124,561) Adjustments to revenues for intergovernmental revenue 1,124,561 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -203- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual NM Grown FVV Special Revenue Fund (27183) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 13,000 $ 13,000 $ 13,000 $ - Total revenues 13,000 13,000 13,000 - Expenditures Current Food services operations 13,000 13,000 13,000 - Total expenditures 13,000 13,000 13,000 - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - - - Fund balance -end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -204- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Open Sci Ed Expansion Initiative Special Revenue Fund (27202) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ 10,200 $ - $ (10,200) Total revenues - 10,200 - (10,200) Expenditures Current Instruction - 10,200 10,102 98 Total expenditures - 10,200 10,102 98 Excess (deficiency) of revenues over expenditures - - (10,102) (10,102) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (10,102) (10,102) Fund balance- beginning of year - - - - Fund balance -end of year $ - $ - $ (10,102) $ (10,102) Net change in fund balance (Non-GAAP Budgetary Basis) $ (10,102) Adjustments to revenues for intergovernmental revenue 10,102 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -205- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Public School Bus Cameras Special Revenue Fund (27405) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ 27,489 $ - $ (27,489) Total revenues - 27,489 - (27,489) Expenditures Current Student transportation - 27,489 27,489 - Total expenditures - 27,489 27,489 - Excess (deficiency) of revenues over expenditures - - (27,489) (27,489) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (27,489) (27,489) Fund balance- beginning of year - - - - Fund balance -end of year $ - $ - $ (27,489) $ (27,489) Net change in fund balance (Non-GAAP Budgetary Basis) $ (27,489) Adjustments to revenues for intergovernmental revenue 27,489 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -206- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Family Income Index Special Revenue Fund (27407) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ 461,786 $ 303,604 $ (158,182) Total revenues - 461,786 303,604 (158,182) Expenditures Current Instruction - 461,786 453,229 8,557 Total expenditures - 461,786 453,229 8,557 Excess (deficiency) of revenues over expenditures - - (149,625) (149,625) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (149,625) (149,625) Fund balance- beginning of year - - - - Fund balance -end of year $ - $ - $ (149,625) $ (149,625) Net change in fund balance (Non-GAAP Budgetary Basis) $ (149,625) Adjustments to revenues for intergovernmental revenue 149,625 No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -207- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Career Technical Education Program (Pilot) Special Revenue Fund (27502) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 28,485 $ 32,766 $ 11,667 $ (21,099) Total revenues 28,485 32,766 11,667 (21,099) Expenditures Current Instruction 28,485 32,766 16,699 16,067 Total expenditures 28,485 32,766 16,699 16,067 Excess (deficiency) of revenues over expenditures - - (5,032) (5,032) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (5,032) (5,032) Fund balance- beginning of year - - (2,436) (2,436) Fund balance - end of year $ - $ - $ (7,468) $ (7,468) Net change in fund balance (Non-GAAP Budgetary Basis) $ (5,032) Adjustments to revenues for intergovernmental revenue 5,032 Adjustments to expenditures for supplies and payroll expenditures 156 Net change in fund balance (GAAP Basis) $ 156 -208- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Youth Conservation Corp NMEMNR Special Revenue Fund (28133) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State direct $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - 29,969 - 29,969 Total expenditures - 29,969 - 29,969 Excess (deficiency) of revenues over expenditures - (29,969) - 29,969 Other financing sources Designated cash balance (budgeted increase in cash) - 29,969 - (29,969) Total other financing sources - 29,969 - (29,969) Net change in fund balance - - - - Fund balance- beginning of year - - 29,969 29,969 Fund balance -end of year $ - $ - $ 29,969 $ 29,969 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -209- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual GEAR-UP CHE Special Revenue Fund (28178) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State direct $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 1,546 1,546 Fund balance - end of year $ - $ - $ 1,546 $ 1,546 Net change in fund balance (Non-GAAP Budgetary Basis) $ - No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ - -210- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual NM Schools Covid-19 Testing Program DOH Special Revenue Fund (28211) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State direct $ - $ 400,120 $ 126,125 $ (273,995) Total revenues - 400,120 126,125 (273,995) Expenditures Current Support services-students - 400,120 165,485 234,635 Total expenditures - 400,120 165,485 234,635 Excess (deficiency) of revenues over expenditures - - (39,360) (39,360) Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - (39,360) (39,360) Fund balance- beginning of year - - - - Fund balance - end of year $ - $ - $ (39,360) $ (39,360) Net change in fund balance (Non-GAAP Budgetary Basis) $ (39,360) Adjustments to revenues for intergovernmental revenue 39,360 Adjustments to expenditures for supplies and payroll expenditures (150) Net change in fund balance (GAAP Basis) $ (150) -211- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Westmeath Foundation Special Revenue Fund (29102) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental Local sources $ - $ 15,028 $ 15,028 $ - Total revenues - 15,028 15,028 - Expenditures Current Instruction 4,055 20,888 20,888 - Total expenditures 4,055 20,888 20,888 - Excess (deficiency) of revenues over expenditures (4,055) (5,860) (5,860) - Other financing sources Designated cash balance (budgeted increase in cash) 4,055 5,860 - (5,860) Total other financing sources 4,055 5,860 - (5,860) Net change in fund balance - - (5,860) (5,860) Fund balance- beginning of year - - 5,860 5,860 Fund balance -end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ (5,860) No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ (5,860) -212- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Bond Building Capital Projects Fund (31100) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Investment income $ 14,870 $ 14,870 $ 11,364 $ (3,506) Total revenues 14,870 14,870 11,364 (3,506) Expenditures Current Operation and maintenance of plant 102,619 102,619 (115,352) 217,971 Capital outlay 2,438,613 5,416,246 1,351,967 4,064,279 Total expenditures 2,541,232 5,518,865 1,236,615 4,282,250 Excess (deficiency) of revenues over expenditures (2,526,362) (5,503,995) (1,225,251) 4,278,744 Other financing sources Designated cash balance (budgeted increase in cash) 2,511,062 3,488,695 - (3,488,695) Bond proceeds 15,300 2,015,300 2,000,000 (15,300) Total other financing sources 2,526,362 5,503,995 2,000,000 (3,503,995) Net change in fund balance - - 774,749 774,749 Fund balance- beginning of year - - 3,488,695 3,488,695 Fund balance - end of year $ - $ - $ 4,263,444 $ 4,263,444 Net change in fund balance (Non-GAAP Budgetary Basis) $ 774,749 No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ 774,749 -213- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Special Capital Outlay - Local Capital Projects Fund (31300) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Charges for services $ 408 $ 408 $ 517 $ 109 Total revenues 408 408 517 109 Expenditures Capital outlay 1,198,176 1,013,106 - 1,013,106 Debt service Principal - 185,000 165,750 19,250 Total expenditures 1,198,176 1,198,106 165,750 1,032,356 Excess (deficiency) of revenues over expenditures (1,197,768) (1,197,698) (165,233) 1,032,465 Other financing sources Designated cash balance (budgeted increase in cash) 965,778 965,708 - (965,708) Proceeds from sale of capital assets 231,990 231,990 371,297 139,307 Total other financing sources 1,197,768 1,197,698 371,297 (826,401) Net change in fund balance - - 206,064 206,064 Fund balance- beginning of year - - 965,708 965,708 Fund balance-end of year $ - $ - $ 1,171,772 $ 1,171,772 Net change in fund balance (Non-GAAP Budgetary Basis) $ 206,064 No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ 206,064 -214- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Special Capital Outlay - State Capital Projects Fund (31400) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State direct $ - $ - $ - $ - Total revenues - - - - Expenditures Current Instruction - - - - Total expenditures - - - - Excess (deficiency) of revenues overexpenditures - - - - Other financing sources Designated cash balance (budgeted increase in cash) - - - - Total other financing sources - - - - Net change in fund balance - - - - Fund balance- beginning of year - - 48,375 48,375 Fund balance-end of year $ - $ - $ 48,375 $ 48,375 Net change in fund balance (Non-GAAP Budgetary Basis) $ - Adjustments to revenues for intergovernmental revenue 169,558 Adjustments to expenditures for supplies and capital outlay expenditures (169,558) Net change in fund balance (GAAP Basis) $ - -215- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Special Capital Improvements HB-33 Capital Projects Fund (31600) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Property taxes $ 1,766,671 $ 1,766,671 $ 2,166,620 $ 399,949 Oil and gas taxes 48,359 48,359 89,545 41,186 Total revenues 1,815,030 1,815,030 2,256,165 441,135 Expenditures Current Support services-general administration 17,667 27,667 21,708 5,959 Operation and maintenance of plant 3,164,469 3,734,675 3,595,704 138,971 Total expenditures 3,182,136 3,762,342 3,617,412 144,930 Excess (deficiency) of revenues over expenditures (1,367,106) (1,947,312) (1,361,247) 586,065 Other financing sources Designated cash balance (budgeted increase in cash) 1,367,106 1,947,312 - (1,947,312) Total other financing sources 1,367,106 1,947,312 - (1,947,312) Net change in fund balance - - (1,361,247) (1,361,247) Fund balance- beginning of year - - 1,947,312 1,947,312 Fund balance - end of year $ - $ - $ 586,065 $ 586,065 Net change in fund balance (Non-GAAP Budgetary Basis) $ (1,361,247) Adjustments to revenues for taxes (12,524) Adjustments to expenditures for supplies and capital outlay expenditures 14,447 Net change in fund balance (GAAP Basis) $ (1,359,324) -216- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Capital Improvements SB-9 - State Capital Projects Fund (31700) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ - $ - $ - $ - Total revenues - - - - Expenditures Current Operation and maintenance of plant - 179,517 179,517 - Total expenditures - 179,517 179,517 - Excess (deficiency) of revenues over expenditures - (179,517) (179,517) - Other financing sources Designated cash balance (budgeted increase in cash) - 179,517 - (179,517) Total other financing sources - 179,517 - (179,517) Net change in fund balance - - (179,517) (179,517) Fund balance- beginning of year - - 179,517 179,517 Fund balance - end of year $ - $ - $ - $ - Net change in fund balance (Non-GAAP Budgetary Basis) $ (179,517) No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ (179,517) -217- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Capital Improvements SB-9 - Local Capital Projects Fund (31701) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Property taxes $ 2,944,452 $ 2,944,452 $ 2,948,773 $ 4,321 Oil and gas taxes 80,598 80,598 127,465 46,867 Intergovernmental State capital grants - - 489,094 489,094 Total revenues 3,025,050 3,025,050 3,565,332 540,282 Expenditures Current Support services-general administration 29,445 29,445 29,488 (43) Operation and maintenance of plant 4,960,530 5,003,252 2,637,478 2,365,774 Capital outlay 288,022 288,022 173,637 114,385 Total expenditures 5,277,997 5,320,719 2,840,903 2,480,116 Excess (deficiency) of revenues over expenditures (2,252,947) (2,295,669) 724,429 3,020,398 Other financing sources Designated cash balance (budgeted increase in cash) 2,252,947 2,295,669 - (2,295,669) Total other financing sources 2,252,947 2,295,669 - (2,295,669) Net change in fund balance - - 724,429 724,729 Fund balance- beginning of year - - 2,295,669 2,295,669 Fund balance - end of year $ - $ - $ 3,020,098 $ 3,020,398 Net change in fund balance (Non-GAAP Budgetary Basis) $ 724,429 Adjustments to revenues for taxes (30,561) Adjustments to expenditures for supplies and capital outlay expenditures (145,018) Net change in fund balance (GAAP Basis) $ 548,850 -218- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual SB-9 - State Match Cash Capital Projects Fund (31703) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Intergovernmental State flowthrough $ 409,317 $ 898,411 $ 409,317 $ (489,094) Total revenues 409,317 898,411 409,317 (489,094) Expenditures Capital outlay 658,441 1,147,535 - 1,147,535 Total expenditures 658,441 1,147,535 - 1,147,535 Excess (deficiency) of revenues over expenditures (249,124) (249,124) 409,317 658,441 Other financing sources Designated cash balance (budgeted increase in cash) 249,124 249,124 - (249,124) Total other financing sources 249,124 249,124 - (249,124) Net change in fund balance - - 409,317 409,317 Fund balance- beginning of year - - 249,124 249,124 Fund balance - end of year $ - $ - $ 658,441 $ 658,441 Net change in fund balance (Non-GAAP Budgetary Basis) $ 409,317 No adjustments to revenues - No adjustments to expenditures - Net change in fund balance (GAAP Basis) $ 409,317 -219- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Ed. Technology Equipment Act Capital Projects Fund (31900) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Investment income $ - $ - $ 38 $ 38 Total revenues - - 38 38 Expenditures Current Operation and maintenance of plant - 30,770 7,352 23,418 Total expenditures - 30,770 7,352 23,418 Excess (deficiency) of revenues over expenditures - (30,770) (7,314) 23,456 Other financing sources Designated cash balance (budgeted increase in cash) - 30,770 - (30,770) Total other financing sources - 30,770 - (30,770) Net change in fund balance - - (7,314) (7,314) Fund balance- beginning of year - - 30,770 30,770 Fund balance - end of year $ - $ - $ 23,456 $ 23,456 Net change in fund balance (Non-GAAP Budgetary Basis) $ (7,314) No adjustments to revenues - Adjustments to expenditures for supplies and capital outlay expenditures 977 Net change in fund balance (GAAP Basis) $ (6,337) -220- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Debt Service Fund (41000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Property taxes $ 6,512,676 $ 6,512,676 $ 7,620,166 $ 1,107,490 Oil and gas taxes 160,265 160,265 332,657 172,392 Investment income 580 580 494 (86) Total revenues 6,673,521 6,673,521 7,953,317 1,279,796 Expenditures Current Support services-general administration 65,127 65,127 65,127 - Debt service Principal 7,585,000 7,585,000 5,635,000 1,950,000 Interest and other charges 7,045,894 7,867,395 2,162,974 5,704,421 Total expenditures 14,696,021 15,517,522 7,863,101 7,654,421 Excess (deficiency) of revenues over expenditures (8,022,500) (8,844,001) 90,216 8,934,217 Other financing sources Designated cash balance (budgeted increase in cash) 8,022,500 8,844,001 - (8,844,001) Total other financing sources 8,022,500 8,844,001 - (8,844,001) Net change in fund balance - - 90,216 90,216 Fund balance- beginning of year - - 8,844,001 8,844,001 Fund balance - end of year $ - $ - $ 8,934,217 $ 8,934,217 Net change in fund balance (Non-GAAP Budgetary Basis) $ 90,216 Adjustments to revenues for taxes (81,997) Adjustments to expenditures for supplies and debt expenditures (1,104) Net change in fund balance (GAAP Basis) $ 7,115 -221- THIS PAGE INTENTIONALLY LEFT BLANK -222- State of New Mexico Farmington Municipal School District No. 5 Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget (Non-GAAP Budgetary Basis) and Actual Ed. Tech Debt Service Fund (43000) Variances Favorable Budgeted Amounts (Unfavorable) For the Year Ended June 30, 2022 Original Final Actual Final to Actual Revenues Property taxes $ 1,243,549 $ 1,243,549 $ 1,215,345 $ (28,204) Oil and gas taxes 41,451 41,451 53,700 12,249 Investment income 260 260 217 (43) Total revenues 1,285,260 1,285,260 1,269,262 (15,998) Expenditures Current Support services-general administration 12,435 12,435 12,153 282 Debt service Principal 1,250,000 1,250,000 1,250,000 - Interest and other charges 1,607,818 1,732,261 35,270 1,696,991 Total expenditures 2,870,253 2,994,696 1,297,423 1,697,273 Excess (deficiency) of revenues over expenditures (1,584,993) (1,709,436) (28,161) 1,681,275 Other financing sources Designated cash balance (budgeted increase in cash) 1,584,993 1,709,436 - (1,709,436) Total other financing sources 1,584,993 1,709,436 - (1,709,436) Net change in fund balance - - (28,161) (28,161) Fund balance- beginning of year - - 1,709,436 1,709,436 Fund balance - end of year $ - $ - $ 1,681,275 $ 1,681,275 Net change in fund balance (Non-GAAP Budgetary Basis) $ (28,161) Adjustments to revenues for taxes (19,572) Adjustments to expenditures for supplies and debt expenditures (213) Net change in fund balance (GAAP Basis) $ (47,946) -223- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Fiduciary Net Position Fiduciary Funds Total Farmington Piedra Vista Custodial June 30,2022 HS HS Funds Assets Cash and cash equivalents $ 238,348 $ 221,714 $ 460,062 Total assets $ 238,348 $ 221,714 $ 460,062 Liabilities Accounts payable $ 189 $ 6,688 $ 6,877 Totalliabilities 189 6,688 6,877 Net position Restricted for student organizations 238,159 215,026 453,185 Total net position 238,159 215,026 453,185 Total liabilities and net position $ 238,348 $ 221,714 $ 460,062 -224- State of New Mexico Farmington Municipal School District No. 5 Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds Total Custodial For the Year Ended June 30, 2022 Farmington HS Piedra Vista HS Funds Additions Charges for services $ 320,350 $ 501,893 $ 822,243 Total additions 320,350 501,893 822,243 Deductions Current Instruction 142,768 363,904 506,672 Total deductions 142,768 363,904 506,672 Net increase (deficiency) in fiduciary net position 177,582 137,989 315,571 Net position - beginning of year 60,577 77,037 137,614 Net position -end of year $ 238,159 $ 215,026 $ 453,185 -225- THIS PAGE INTENTIONALLY LEFT BLANK -226- Supporting Schedules Farmington Municipal School District No. 5 -227- State of New Mexico Farmington Municipal School District No. 5 Schedule of Deposit and Investment Accounts June 30, 2022 Bank of the Citizens Bank Bank Account Type/Name Southwest of Farmington Operational - non-interest-bearing checking $ - $ - Operational investments- interest-bearing checking - - Bond building- non-interest-bearing checking - - Secondary athletic- non-interest-bearing checking - - FHS scorp activity- non-interest-bearing checking - - NonBudgeted - non-interest-bearing checking - - PV activity acct- non-interest-bearing checking - - Debt- non-interest-bearing checking - - Debt service investments-checking - - Accounts payable- non-interest-bearing checking - - Payroll - non-interest-bearing checking - - Payroll clearing- non-interest-bearing checking - - Tech bonds- interest-bearing checking - 32,705 School lunch - interest-bearing checking 357,822 - Bond building - - Bond building - - Bond building - - Bond building - - Ed tech - - Debt service - - Debt service - - Total 357,822 32,705 Reconciling items 376,590 (12,702) Reconciled balance June 30, 2022 $ 734,412 $ 20,003 Less investments per statement of net position Less restricted investments per statement of net position Less restricted cash per statement of net position Less cash and cash equivalents per statement of fiduciary net position Cash and cash equivalents per statement of net position -228- New Mexico Wells Fargo Finance Bank Authority Total $ 11,025,766 - $ 11,025,766 12,982 - 12,982 417,430 - 417,430 272,466 - 272,466 238,406 - 238,406 1,428,787 - 1,428,787 221,712 - 221,712 9,826,796 - 9,826,796 778,280 - 778,280 470,916 - 470,916 1,933,497 - 1,933,497 2,651,034 - 2,651,034 - - 32,705 - - 357,822 - 3 3 - 254 254 - 1,896,455 1,896,455 - 1,026 1,026 - 3,451 3,451 - 1,948,275 1,948,275 - 6,230 6,230 29,278,072 3,855,694 33,524,293 (3,507,983) - (3,144,095) $ 25,770,089 $ 3,855,694 30,380,198 (3,183,722) (781,126) (16,435,577) (460,062) $ 9,519,711 -229- State of New Mexico Farmington Municipal School District No. 5 Cash Reconciliation Food Operational Transportation Services Athletics For the Year Ended June 30, 2022 11000 13000 21000 22000 PED cash,June 30, 2021 $ 7,800,312 $ 485,999 $ 442,839 $ 205,606 Add 2021-2022 receipts 95,307,352 3,036,599 6,244,746 424,926 Repayment of loans - 1,531 - - Total cash available 103,107,664 3,524,129 6,687,585 630,532 Less 2021-2022 expenditures (95,746,030) (3,494,487) (5,953,172) (358,653) Repayment of prior year loans (6,081,448) - - - PED Cash,June 30, 2022 1,280,186 29,642 734,413 271,879 Audit Adjustments Loans for negative cash - - - - Investments (12,982) - - - Held checks 1,685,168 49,735 9,658 15 Cash per financial statement $ 2,952,372 $ 79,377 $ 744,071 $ 271,894 -230- Page 1 of 3 Non- Instructional Federal Federal Local State State Support Flowthrough Direct Grants Flowthrough Direct 23000 24000 25000 26000 27000 28000 $ 686,534 $ (2,722,500) $ 1,757,191 $ 130,741 $ (237,700) $ 31,514 1,934,749 15,038,868 3,615,833 100,000 1,228,084 126,125 - 4,074,837 367,034 - 1,593,548 39,360 2,621,283 16,391,205 5,740,058 230,741 2,583,932 196,999 (1,147,893) (16,289,348) (2,084,013) (79,727) (2,577,626) (165,484) (530) (88) - (116,289) (520) - 1,472,860 101,769 3,656,045 34,725 5,786 31,515 (6) 29,809 (1,366) - (232) - 5,593 86,731 31,277 1,387 14,473 1,631 $ 1,478,447 $ 218,309 $ 3,685,956 $ 36,112 $ 20,027 $ 33,146 (Continued) -231- State of New Mexico Farmington Municipal School District No. 5 Cash Reconciliation Special Capital Special Capital Local or Bond Capital Capital State Fund Building Outlay Local Outlay State Forthe YearEndedJune 30,2022 29000 31100 31300 31400 PED cash,June 30, 2021 $ 5,860 $ 3,488,695 $ 965,708 $ 48,375 Add 2021-2022 receipts 15,028 2,011,364 371,814 - Repayment of loans - - - - Total cash available 20,888 5,500,059 1,337,522 48,375 Less 2021-2022 expenditures (20,888) (1,236,615) (165,750) - Repayment of prior year loans - - - - PED Cash,June 30, 2022 - 4,263,444 1,171,772 48,375 Audit Adjustments Loans for negative cash - - - - Investments - (3,170,740) - - Held checks - - - - Cash per financial statement $ - $ 1,092,704 $ 1,171,772 $ 48,375 -232- Page 2 of 3 Special Capital Capital Capital Capital Education Capital Improvements Improvements Improvements Technology Debt Outlay State 5B-9-State 5B-9-Local SB-9-State Match Equipment Act Service 31600 31700 31701 31703 31900 41000 $ 1,947,312 $ 179,517 $ 2,295,669 $ 249,124 $ 30,770 $ 8,844,001 2,260,349 - 3,565,332 409,317 38 7,953,317 4,207,661 179,517 5,861,001 658,441 30,808 16,797,318 (3,617,412) (179,517) (2,840,603) - (7,352) (7,867,285) 590,249 - 3,020,398 658,441 23,456 8,930,033 (4,184) - - - - 4,184 - - - - - (586,325) $ 586,065 $ - $ 3,020,398 $ 658,441 $ 23,456 $ 8,347,892 (Continued) -233- THIS PAGE INTENTIONALLY LEFT BLANK -234- State of New Mexico Page 3 of 3 Farmington Municipal School District No. 5 Cash Reconciliation Ed Tech Debt Service For the Year Ended June 30, 2022 43000 Total PED cash,June 30, 2021 $ 1,709,436 $ 28,345,003 Add 2021-2022 receipts 1,269,262 144,913,103 Repayment of loans - 6,076,310 Total cash available 2,978,698 179,334,416 Less 2021-2022 expenditures (1,297,423) (145,129,278) Repayment of prior year loans - (6,198,875) PED Cash,June 30, 2022 1,681,275 28,006,263 Audit Adjustments Loans for negative cash - 28,205 Investments (194,801) (3,964,848) Held checks - 1,885,668 Cash per financial statement $ 1,486,474 $ 25,955,288 -235- State of New Mexico Farmington Municipal School District No. 5 Schedule of Collateral Pledged by Depository for Public Funds June 30, 2022 Fair Market Name of Description of CUSIP Value Depository Pledged Collateral Maturity Number June 30,2022 Bank of the Southwest LETTER OF CREDIT 12/5/2022 $ 25,000 LETTER OF CREDIT 11/2/2022 250,000 LETTER OF CREDIT 9/6/2022 100,000 Total Bank of the Southwest 375,000 Name and location of safekeeper for above pledged collateral: Federal Home Loan Bank, Dallas,TX Citizens Bank of Farmington FNMA Ser 2011-105 CL 5-PB 10/25/2041 3136A1MJ1 2,464,637 Total Citizens Bank of Farmington 2,464,637 Name and location of safekeeper for above pledged collateral: Federal Home Loan Bank, Dallas,TX Wells Fargo Bank FNMA FNMS 3.500% 9/1/2047 3140XCF29 2,649,906 FNMA FNMS 3.500% 5/1/2047 3140XDN85 115,417 FNMA FNMS 3.500% 6/1/1943 3140XGNJ4 2,225,084 FNMA FNMS 3.500% 12/1/2049 31418DJQ6 2,187,134 GNMA G2SF 4.000% 6/20/2048 36179T4P7 5,134,830 GNMA G2SF 3.500% 11/20/2047 36179TNR2 250,690 GNMA G2SF 4.500% 11/20/2048 36179UGD8 377,346 GNMA G2SF 2.000% 2/20/2051 3617UCJE9 266,631 GNMA G2SF 3.000% 2/20/2051 3622AAYG3 941,667 GNMA G2SF 2.000% 2/20/2052 3622ABRK0 126,328 Total Wells Fargo Bank 14,275,033 Name and location of safekeeper for above pledged collateral: BNY Mellon, New York, NY Total pledged collateral $ 17,114,670 -236- Statistical Section of Farmington Municipal School District No. 5 This part of Farmington Municipal School District No. 5's annual comprehensive financial report present detail information as a context for understanding what the information in the financial statement, note disclosures, and required supplementary information says about the government's overall financial health. GASB Statement No. 44 provided the requirements for the scheduled contained in this section of the District's ACFR. Content Financial Trends 239-245 These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time. Revenue Capacity 247-252 These schedules contain information to help the reader assess the District's most significant local revenues source:the sales tax. Debt Capacity 253-255 These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. Demographic and Economic Information 256-258 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 259-261 These schedules contain service and infrastructure data to help the reader understand how the information in the District's financial report relates to the services the City provides and the activities it performs. -237- THIS PAGE INTENTIONALLY LEFT BLANK -238- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (accrual basis of accounting) 2013 2014 2015 2016 2017 Governmental Activities Net investment in capital assets $ 87,888,998 $ 97,274,871 $ 105,039,068 $ 89,528,046 $ 139,517,254 Restricted 17,180,682 18,167,016 24,781,118 51,226,513 19,496,768 Unrestricted 24,352,282 22,634,154 (102,994,068) (90,715,061) (117,826,116) Total governmental activities net position $ 129,421,962 $ 138,076,041 $ 26,826,118 $ 50,039,498 $ 41,187,906 2018 2019 2020 2021 2022 Governmental Activities Net investment in capital assets $ 138,081,745 $ 143,915,447 $ 148,924,471 $ 149,684,300 $ 150,894,965 Restricted 26,459,741 19,479,173 18,993,480 23,033,641 21,522,194 Unrestricted (159,994,947) (237,074,262) (177,543,253) (272,742,559) (272,467,170) Total governmental activities net position $ 4,546,539 $ (73,679,642) $ (9,625,302) $ (100,024,618) $ (100,050,011) Note: 2013 capital assets were restated to correct prior years recordings of capital assets. Note: GASB 68 Pension liability recorded beginning in 2015 Note: GASB 75 OPEB liability recorded beginning in 2018 -239- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 EXPENSES,PROGRAM REVENUES,AND NET(EXPENSE)/REVENUE LAST TEN FISCAL YEARS (accrual basis of accounting) 2013 2014 2015 2016 2017 Expenses Governmental Activities: Instruction $ 50,490,205 $ 56,300,845 $ 63,425,766 $ 44,969,217 $ 67,974,302 Support services: Students 10,256,813 10,934,607 12,557,987 11,530,356 12,021,053 Instruction-support 2,166,682 1,782,540 1,916,013 1,753,666 1,083,434 General Administrative 1,189,237 1,474,637 1,460,323 1,454,979 1,736,695 School Administrative 6,443,991 5,117,842 5,326,590 5,699,925 5,290,922 Central Services 477,143 859,423 1,484,713 1,287,846 1,198,927 Operations&Maintenance of Plant 7,627,858 4,194,480 15,893,619 24,372,188 15,185,927 Student Transportation 3,154,396 3,082,206 4,317,667 3,418,076 2,732,618 Other support services 73,326 91,023 93,603 25,774 7,678 Non-instructional services: Food services 3,843,284 4,018,871 4,402,077 4,802,086 4,862,251 Community services 13,502 7,408 8,332 56,904 11,345 Bond Interest Payable Facilities,supplies and materials 9,217,681 3,046,988 - - - Depreciation-unallocated 1,639,781 4,025,893 - - - Athletics Interest on long-term obligations 1,373,015 1,106,616 1,534,093 2,162,706 2,235,099 Refunds 211,546 Total governmental activities expenses $ 97,966,914 $ 96,043,379 $112,420,783 $101,533,723 $114,551,797 Program Revenues Governmental Activities: Charges for services: General government $ 910,475 $ 1,061,757 $ 829,598 $ 1,045,498 $ 812,746 Food Services 906,651 884,881 811,223 921,586 815,159 Operating grants and contributions 12,844,998 13,334,879 19,138,864 17,181,976 16,352,428 Capital grants and contributions 242,271 1,255,020 11,982,223 15,336,594 19,082,712 Total governmental activities program reven $ 14,904,395 $ 16,536,537 $ 32,761,908 $ 34,485,654 $ 37,063,045 Net(expense)/revenue Governmental activities $ 83,062,519 $ 79,506,842 $ 79,658,875 $ 67,048,069 $ 77,488,752 Note 1: New Mexico adopted the UCOA for school districts and combined governmental activity functions into Instruction,Support services,Operation of non-instructional (cont'd;1 of 2) -240- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 EXPENSES,PROGRAM REVENUES,AND NET(EXPENSE)/REVENUE LAST TEN FISCAL YEARS (accrual basis of accounting) 2018 2019 2020 2021 2022 Expenses Governmental Activities: Instruction $ 85,009,241 $ 87,053,866 $ 57,443,955 $ 134,451,794 $ 81,836,408 Support services: Students 12,067,974 14,139,258 16,420,880 28,535,879 16,089,269 Instruction-support 1,101,248 1,845,725 2,444,776 2,445,709 1,557,353 General Administrative 1,746,195 2,115,811 2,502,023 3,975,985 2,514,303 School Administrative 5,889,246 6,414,784 7,233,324 14,258,282 7,721,719 Central Services 1,194,223 1,243,222 1,744,314 3,058,311 1,723,755 Operations&Maintenance of Plant 18,364,623 19,383,839 17,889,638 20,001,061 20,483,503 Student Transportation 2,996,842 3,207,815 3,672,821 6,099,771 4,260,450 Other support services 4,456 - 395 425 - Non-instructional services: Food services 4,922,690 4,914,113 5,330,218 5,587,764 6,875,044 Community services 8,922 13,602 7,708 12,073 50 Bond Interest Payable Facilities,supplies and materials - - - - - Depreciation-unallocated - - - - - Athletics Interest on long-term obligations 2,207,630 2,251,692 2,499,341 1,563,489 1,981,512 Refunds - - - - - Total governmental activities expenses $135,513,290 $142,583,727 $117,189,393 $ 219,990,543 $145,043,366 Program Revenues Governmental Activities: Charges for services: General government $ 822,994 $ 1,853,297 $ 1,263,718 $ 634,871 $ 1,504,039 Food Services 522,852 819,162 706,661 13,669 176,264 Operating grants and contributions 17,066,457 18,258,821 21,116,913 23,981,290 30,205,968 Capital grants and contributions 6,966,441 1,297,914 3,954,708 1,835,849 4,414,701 Total governmental activities program reve $ 25,378,744 $ 22,229,194 $ 27,042,000 $ 26,465,679 $ 36,300,972 Net(expense)/revenue Governmentalactivities $110,134,546 $120,354,533 $ 90,147,393 $ 193,524,864 $108,742,394 (2of2) -241- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 GENERAL REVENUES AND TOTAL CHANGE IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2013 2014 2015 2016 2017 Net(expense)/revenue Governmental activities $ 83,062,519 $ 79,506,842 $ 79,658,875 $ 67,048,069 $ 77,488,752 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes,general purpose $ 579,898 $ 590,888 $ 528,737 $ 540,502 $ 551,471 Property taxes,debt service 10,762,854 11,034,174 9,794,142 9,950,029 10,607,097 Property taxes,capital projects 2,892,633 2,942,681 3,524,200 3,173,781 2,814,485 Oil&Gas - - 1,439,430 613,830 594,547 Unrestricted grants and contributions 70,013,110 73,575,299 75,837,173 75,897,873 72,116,655 Miscellaneous Income 23,467 17,879 256,983 85,434 305,034 Gain/(Loss)on sale of capital assets - - (240,758) - - Total government activities $ 84,271,962 $ 88,160,921 $ 91,139,907 $ 90,261,449 $ 86,989,289 Change in Net Position Governmental activities $ 1,209,443 $ 8,654,079 $ 11,481,032 $ 23,213,380 $ 9,500,537 2018 2019 2020 2021 2022 Net(expense)/revenue Governmental activities $ 110,134,546 $ 120,354,533 $ 90,147,393 $ 193,524,864 $ 108,742,394 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property taxes,general purpose $ 558,562 $ 571,340 $ 578,442 $ 592,179 $ 576,803 Property taxes,debt service 10,794,816 10,803,256 10,261,944 9,237,045 5,100,952 Property taxes,capital projects 2,858,482 2,934,916 3,651,706 4,715,657 8,693,935 Oil&Gas 510,604 536,257 331,265 343,056 635,230 Unrestricted grants and contributions 75,622,445 79,112,920 89,779,949 89,432,759 93,515,835 Pension income - - 46,310,711 - - OPEB income - - 3,201,887 - - Miscellaneous Income 251,914 200,182 85,829 69,568 78,864 Gain/(Loss)on sale of capital assets - - - 89,708 115,382 Total government activities $ 90,596,823 $ 94,158,871 $ 154,201,733 $ 104,479,972 $ 108,717,001 Change in Net Position Governmental activities $ (19,537,723) $ (26,195,662) $ 64,054,340 $ (89,044,892) $ (25,393) -242- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2013 2014 2015 2016 2017 General Fund Unassigned $ 12,179,526 $ 9,665,269 $ 8,135,166 $ 6,671,858 $ 4,743,157 Inventories - - 138,041 134,821 120,499 Restricted - - - - - Total general fund 12,179,526 9,665,269 8,273,207 6,806,679 4,863,656 All other governmental funds Unassigned (deficit) $ - $ - $ - $ - $ (5,586) Inventories - - - - 81,619 Restricted: Special revenue funds 1,453,776 1,787,908 1,803,991 1,622,470 1,426,681 Capital projects funds 10,016,368 28,055,811 8,720,466 32,703,331 11,406,417 Debt service funds 12,248,617 14,208,070 14,118,620 16,765,891 13,627,652 Total all other governmental funds 23,718,761 44,051,789 24,643,077 51,091,692 26,536,783 Total fund balance $ 35,898,287 $ 53,717,058 $ 32,916,284 $ 57,898,371 $ 31,400,439 2018 2019 2020 2021 2022 General Fund Unassigned $ 6,915,798 $ 7,962,176 $ 8,084,463 $ - $ 193,147 Committed 5,717,368 5,635,964 Inventories 104,400 174,568 209,444 210,908 292,758 Restricted - - - 404,452 - Total general fund 7,020,198 8,136,744 8,293,907 6,332,728 6,121,869 All other governmental funds Unassigned (deficit) $ - $ - $ (700,298) $ (571,723) $ (403,097) Inventories 122,358 76,754 229,355 152,917 160,318 Restricted: Special revenue funds 1,786,378 2,846,647 3,250,322 4,791,466 6,564,290 Capital projects funds 110,040,526 9,873,768 9,027,546 9,171,007 9,564,809 Debt service funds 13,478,972 13,136,488 11,968,460 10,728,395 10,687,564 Total all other governmental funds 125,428,234 25,933,657 23,775,385 24,272,062 26,573,884 Total fund balance $ 132,448,432 $ 34,070,401 $ 32,069,292 $ 30,604,790 $ 32,695,753 -243- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS LASTTEN FISCALYEARS (modified accrual basis of accounting) 2013 2014 2015 2016 2017 Revenues FederalSources: Federal grants $ 11,305,163 $ 11,505,683 $ 12,899,475 $ 12,016,822 $ 11,484,316 Total federal sources 11,305,163 11,505,683 12,899,475 12,016,822 11,484,316 State Sources: State equalization quarantee 66,548,033 69,945,424 74,607,143 75,496,685 72,051,469 Transportation 2,769,972 2,877,620 3,178,562 2,830,628 2,532,756 State instructional materials 695,105 752,255 778,480 778,264 768,191 State grants 1,539,869 2,440,227 14,435,313 16,861,994 20,527,767 Total state sources 71,552,979 76,015,526 92,999,498 95,967,571 95,880,183 LocalSources: District school tax levy 13,986,761 14,400,614 13,630,148 13,575,258 13,902,939 Oil and gas taxes 1,141,676 613,830 594,547 Fees and activities 1,817,126 1,946,638 1,640,821 1,967,084 1,627,905 Earnings from investments 23,467 17,879 8,257 30,862 121,838 Other revenue 242,237 643,989 1,308,013 486,622 370,492 Total local sources 16,069,591 17,009,120 17,728,915 16,673,656 16,617,721 Total revenues $ 98,927,733 $ 104,530,329 $ 123,627,888 $ 124,658,049 $ 123,982,220 Expenditures Instruction $ 50,500,144 $ 56,171,307 $ 59,071,009 $ 58,657,865 $ 56,969,232 Support services: Students 10,211,974 10,923,048 11,995,208 11,519,452 11,415,346 Instruction-support 2,128,788 1,782,540 1,884,372 1,729,713 1,130,118 General Administrative 1,404,004 1,679,249 1,394,879 1,428,319 1,649,188 School Administrative 4,688,741 5,103,738 5,087,882 5,687,386 5,024,327 Central Services 468,282 853,221 1,418,176 1,281,644 1,138,516 Operations&Maintenance of Plant 7,607,882 8,256,411 15,181,355 18,079,740 14,420,751 StudentTransportation 2,783,702 4,122,683 4,124,173 2,924,893 2,594,929 Other support services 57,034 91,023 89,408 25,774 7,291 Non-instructional services: Food services 3,820,888 4,025,369 4,204,800 4,656,749 4,617,256 Communityservices 13,502 7,408 7,959 8,402 10,773 Operation of non-instructional service� - - Athletics - - Capital outlay 17,539,355 14,939,280 29,135,384 27,254,511 37,369,387 Debt service: Principal 8,598,102 7,985,000 9,400,000 8,375,000 11,200,000 Interest 1,345,245 1,224,129 1,434,057 2,105,108 2,721,492 Capital lease issuance costs - 33,265 - 388,470 - Total expenditures $ 111,167,643 $ 117,197,671 $ 144,428,662 $ 144,123,026 $ 150,268,606 Revenues over(under)expenditures $ (12,239,910) $ (12,667,342) $ (20,800,774) $ (19,464,977) $ (26,286,386) Other Financing Sources(Uses) Sale of capital assets $ - $ - $ - $ - $ - Bonds issued - 33,530,000 - 41,700,000 Premium an bands issued - 486,113 - 2,747,064 - Payments to refunded debt escrow - (3,530,000) - (211,546) Totalotherfinancingsources(uses) $ - $ 30,486,113 $ - $ 44,447,064 $ (211,546) Net Change in Fund Balances $ (12,239,910) $ 17,818,771 $ (20,800,774) $ 24,982,087 $ (26,497,932) Debt Service as a Percentage of Noncapital Expenditures 9.7% 9.2% 9.4% 9.0% 123% Note': New Mexico adopted the UCOA for school districts and combined governmental activity categories into Instruction, Support services,Operation of non-instructional services,Food services,Athletics,Pupil Transportation and Interest on long-term debt. Prior years have been adjusted accordingly. Note-The District recomputed the percentage using the capitalized expenditures(capital asset additions)and not the capital outlay amount. (cont'd;1 of 2) -244- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS LASTTEN FISCALYEARS (modified accrual basis of accounting) 2018 2019 2020 2021 2022 Revenues Federal Sources: Federal grants $ 11,917,824 $ 12,922,565 $ 13,353,833 $ 20,288,949 $ 26,985,078 Total federal sources 11,917,824 12,922,565 13,353,833 20,288,949 26,985,078 State Sources: State equalization quarantee 75,622,445 79,112,920 89,710,293 89,432,759 93,515,835 Transportation 2,856,023 3,262,948 3,527,118 3,448,939 3,016,861 Stateinstructional materials 345,047 370,113 29,739 - - State grants 8,750,972 2,732,048 8,072,805 1,823,747 4,437,264 Total state sources 87,574,487 85,478,029 101,339,955 94,705,445 100,969,960 LocalSources: District school tax levy 14,182,421 14,472,422 14,303,137 14,479,429 14,383,538 Oil and gas taxes 510,604 536,257 331,265 343,056 635,230 Fees and activities 1,345,846 2,672,459 1,970,379 648,540 1,680,303 Earnings from investments 59,985 157,624 88,126 18,935 15,268 Otherrevenue 354,961 311,619 155,485 306,137 245,062 Total local sources 16,453,817 18,150,381 16,848,392 15,796,097 16,959,401 Total revenues $ 115,946,128 $ 116,550,975 $ 131,542,180 $ 130,790,491 $ 144,914,439 Expenditures Instruction $ 54,463,988 $ 57,006,184 $ 64,465,719 $ 71,230,111 $ 76,321,879 Support services: Stu d ents 11,598,818 13,522,150 15,420,976 13,743,105 15,034,340 Instruction-support 1,054,104 1,640,248 2,178,821 1,295,444 1,438,451 General Administrative 1,678,310 2,023,466 2,349,669 2,262,840 2,352,707 School Administrative 5,660,295 6,134,811 6,792,871 6,821,072 7,146,050 Central Services 1,147,796 1,188,962 1,638,099 1,774,663 1,593,100 Operations&Maintenance of Plant 16,984,637 18,397,889 16,686,355 14,420,968 19,375,356 StudentTransportation 2,880,336 3,067,810 3,449,175 3,237,749 3,260,824 Other support services 4,283 1,443 371 404 - Non-instructional services: Food services 4,731,315 4,699,637 5,005,649 4,953,015 6,507,171 Community services 8,575 13,008 7,239 6,048 288 Operation of non-instructional services Athletics Capital outlay 18,513,249 7,580,380 7,995,292 2,995,066 2,810,412 Debt service: Principal 10,830,000 8,925,000 16,055,000 8,275,000 7,195,034 Interest 2,509,851 2,589,519 2,794,110 2,320,535 2,199,161 Capital lease issuance costs 302,578 138,500 113,943 - - Total expenditures $ 132,368,135 $ 126,929,007 $ 144,953,289 $ 133,336,020 $ 145,234,773 Revenues over(under)expenditures $ (16,422,007) $ (10,378,032) $ (13,411,109) $ (2,545,529) $ (320,334) Other Financing Sources(Uses) Sale of capital assets $ - $ - $ - $ 231,990 $ 371,297 Bonds issued 18,470,000 11,000,000 11,410,000 - 2,000,000 Premium on bonds issued - - - - - Payments to refunded debt escrow - - - - - Total other financing sources(uses) $ 18,470,000 $ 11,000,000 $ 11,410,000 $ 231,990 $ 2,371,297 Net Change in Fund Balances $ 2,047,993 $ 621,968 $ (2,001,109) $ (2,313,539) $ 2,050,963 Debt Service as a Percentage of Noncapital Expenditures 11.7% 9.7% 13.8% 8.1% 6.6% (2of2) -245- THIS PAGE INTENTIONALLY LEFT BLANK -246- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Estimated Total Taxable Actual Total Fiscal Local Central Oil &Gas Assessed Assessed Taxable Direct Year Assessed Assessed Assessed Value Exemptions Value1 Value Tax Rate 2022 $ 1,499,766,524 $ 51,608,436 $ 65,957,472 $ 1,617,332,432 $ 318,582,097 $ 1,298,750,335 $ 3,896,640,669 9.970 2021 1,464,961,331 68,220,544 29,873,358 1,563,055,233 318,582,097 1,244,473,136 3,733,792,787 9.965 2020 1,472,226,086 70,273,349 40,299,238 1,582,798,673 312,602,039 1,270,196,634 3,810,970,999 9.969 2019 1,682,524,039 75,861,603 28,403,859 1,786,789,501 294,022,486 1,492,767,015 4,478,748,920 9.946 2018 1,682,524,039 77,992,122 61,512,537 1,822,028,698 294,022,486 1,528,006,212 4,584,477,084 9.946 2017 1,660,751,578 71,832,801 49,660,581 1,782,244,960 293,098,717 1,489,146,243 4,467,885,518 9.947 2016 1,628,353,760 78,630,781 61,125,886 1,768,110,427 283,132,549 1,484,977,878 4,455,379,172 9.921 2015 1,600,883,002 74,064,669 125,310,176 1,800,257,847 283,214,249 1,517,043,598 4,551,585,953 9.939 2014 1,568,435,510 74,491,847 110,402,844 1,753,330,201 281,616,474 1,471,713,727 4,415,582,739 9.931 2013 1,505,199,475 77,702,285 101,656,804 1,684,558,564 257,130,153 1,427,428,411 4,282,713,504 9.926 1 The assessed values are 33 1/3%of actual taxable value, as set by New Mexico statute. Source: State of New Mexico,Taxation and Revenue Department Property Tax Division,and Office of San Juan County Assessor. -247- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION MILLAGE RATES LASTTEN FISCALYEARS Farmington Municipal Schools Millage Rates Overlapping Millage Rates Ed Tech Total State Total Direct Fiscal Debt Capital Debt Direct Debt San Juan City of San Juan & Year Operational Service Improvement Service Rate Service County Farmington College Overlapping 2022 City of Farmington Residential 0.347 5.220 2.000 0.000 9.817 1.360 7.141 1.506 4.216 24.040 City of Farmington Commercial/Oil&Gas 0.500 5.220 2.000 0.000 9.970 1.360 8.500 2.225 5.100 27.155 San Juan County Residential 0.343 5.220 2.000 0.800 9.817 1.360 7.141 0.000 4.216 22.534 San Juan County Commercial/Oil&Gas 0.500 5.220 2.000 0.800 9.970 1.360 8.500 0.000 5.100 24.930 2021 City of Farmington Residential 0.343 5.340 2.000 0.800 9.808 1.360 7.033 1.487 4.161 23.849 City of Farmington Commercial/Oil &Gas 0.500 5.340 2.000 0.800 9.965 1.360 8.500 2.225 5.100 27.150 San Juan County Residential 0.343 5.340 2.000 0.800 9.808 1.360 7.033 0.000 4.161 22.362 San Juan County Commercial/Oil&Gas 0.500 5.340 2.000 0.800 9.965 1.360 8.500 0.000 5.100 24.925 2020 City of Farmington Residential 0.342 5.340 2.000 0.929 9.811 1.360 6.990 1.484 4.139 23.784 City of Farmington Commercial/Oil &Gas 0.500 5.340 2.000 0.929 9.969 1.360 8.500 2.225 5.100 27.154 San Juan County Residential 0.342 5.340 2.000 0.929 9.811 1.360 6.700 0.000 4.139 22.300 San Juan County Commercial/Oil&Gas 0.500 5.340 2.000 0.929 9.969 1.360 8.500 0.000 5.100 24.929 2019 City of Farmington Residential 0.327 5.390 2.000 2.056 9.773 1.360 6.700 1.425 3.992 23.250 City of Farmington Commercial/Oil &Gas 0.500 5.390 2.000 2.056 9.946 1.360 8.500 2.225 5.100 27.131 San Juan County Residential 0.327 5.390 2.000 2.056 9.773 1.360 6.700 0.000 3.992 21.825 San Juan County Commercial/Oil&Gas 0.500 5.390 2.000 2.056 9.946 1.360 8.500 0.000 5.100 24.906 2018 City of Farmington Residential 0.327 5.390 2.000 2.056 9.773 1.360 6.700 1.425 3.992 23.250 City of Farmington Commercial/Oil &Gas 0.500 5.390 2.000 2.056 9.946 1.360 8.500 2.225 5.100 27.131 San Juan County Residential 0.327 5.390 2.000 2.056 9.773 1.360 6.700 0.000 3.992 21.825 San Juan County Commercial/Oil&Gas 0.500 5.390 2.000 2.056 9.946 1.360 8.500 0.000 5.100 24.906 (cont'd; 1 of 2) -248- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION MILLAGE RATES LASTTEN FISCALYEARS Farmington Municipal Schools Millage Rates Overlapping Millage Rates Ed Tech Total State Total Direct Fiscal Debt Capital Debt Direct Debt San Juan City of San Juan & Year Operational Service Improvement Service Rate Service County Farmington College Overlapping 2017 City of Farmington Residential 0.320 5.258 1.956 2.189 9.723 1.360 6.545 1.394 3.914 22.936 City of Farmington Commercial/Oil &Gas 0.500 5.258 2.000 2.189 9.947 1.360 8.500 2.225 5.100 27.132 San Juan County Residential 0.320 5.258 1.956 2.189 9.723 1.360 6.545 0.000 3.914 21.542 San Juan County Commercial/Oil&Gas 0.500 5.258 2.000 2.189 9.947 1.360 8.500 0.000 5.100 24.907 2016 City of Farmington Residential 0.319 5.167 1.951 2.254 9.691 1.360 6.529 1.392 3.863 22.835 City of Farmington Commercial/Oil &Gas 0.500 5.167 2.000 2.254 9.921 1.360 8.500 2.209 5.100 27.090 San Juan County Residential 0.319 5.167 1.951 2.254 9.691 1.360 6.529 0.000 3.863 21.443 San Juan County Commercial/Oil&Gas 0.500 5.167 2.000 2.254 9.921 1.360 8.500 0.000 5.100 24.881 2015 City of Farmington Residential 0.323 4.656 1.974 2.783 9.736 1.360 6.231 1.410 3.714 22.451 City of Farmington Commercial/Oil &Gas 0.500 4.656 2.000 2.783 9.939 1.360 8.500 2.225 5.100 27.124 San Juan County Residential 0.323 4.656 1.974 2.783 9.736 1.360 6.231 0.000 3.714 21.041 San Juan County Commercial/Oil&Gas 0.500 4.656 2.000 2.783 9.939 1.360 8.500 0.000 5.100 24.899 2014 City of Farmington Residential 0.322 3.937 1.968 3.494 9.721 1.360 6.231 1.407 3.714 22.433 City of Farmington Commercial/Oil &Gas 0.500 3.937 2.000 3.494 9.931 1.360 8.500 2.225 5.100 27.116 San Juan County Residential 0.322 3.937 1.968 3.494 9.721 1.360 6.231 0.000 3.714 21.026 San Juan County Commercial/Oil&Gas 0.500 3.937 2.000 3.494 9.931 1.360 8.500 0.000 5.100 24.891 2013 City of Farmington Residential 0.326 5.760 1.994 1.666 9.746 1.360 6.310 1.426 3.754 22.596 City of Farmington Commercial/Oil &Gas 0.500 5.760 2.000 1.666 9.926 1.360 8.500 2.225 5.100 27.111 San Juan County Residential 0.326 5.760 1.994 1.666 9.746 1.360 6.310 0.000 3.754 21.170 San Juan County Commercial/Oil&Gas 0.500 5.760 2.000 1.666 9.926 1.360 8.500 0.000 5.100 24.886 Source:County Tax Collector (2 of 2) -249- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT 2022 Assessed G/0 Debt Percent Valuation Outstanding Applicable Amount Overlapping Debt State of New Mexico $ 70,648,047,631 $ 505,295,000 2.12% $ 10,726,758 San Juan County 3,538,285,077 - 42.39% - San Juan College 3,538,285,077 9,070,000 42.39% 3,844,485 City of Farmington 1,195,189,425 - 100.00% - Total Overlapping Debt 14,571,243 Direct Debt Farmington Schools 1,499,766,524 71,610,000 100.00% 71,610,000 Total Direct and Overlapping Debt $ 86,181,243 Percent Applicable is calculated based on Assessed Valuation (i.e. Farmington Municipal Schools AV/ State of NMAV= 2.51% -250- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND TEN YEARS AGO 2022 2013 Assessed Percentage of Assessed Percentage of Taxpayer Type of Business Valuation Rank Assessed Valuation Valuation Rank Assessed Valuation San Juan Regional Medical Center Hospital 10,729,472 1 0.72% HILCORP San Juan LP Pipeline 8,538,741 2 0.57% Gas Company of New Mexico Utility 8,040,325 3 0.54% Animas Valley Mall Retail 7,677,450 4 0.51% Enterprise Field Services LLC Oil Field Services 6,036,253 5 0.40% 77,783,699 4 5.45% CSI Compressco Leasing Pipeline 5,693,085 6 0.38% Harvest Midstream Pipeline 4,910,895 7 0.33% XTO Energy Inc Pipeline 4,387,374 8 0.29% Wal-Mart Stores East Retail 3,676,155 9 0.25% Transwestern Pipeline Pipeline 3,548,335 10 0.24% Public Service Company of NM Utility 206,886,306 1 14.49% BHP Navajo Coal Co Coal 83,336,304 2 5.84% Williams Four Corners LLC Oil Field Services 78,239,671 3 5.48% Arizona Public Service Co Utility 66,038,736 S 4.63% Tucson Electric Power Co Utility 56,586,282 6 3.96% Southern California Edison Co Utility 48,639,035 7 3.41% San Juan Coal Company Coal 42,493,313 8 2.98% EI Paso Natural Gas Utility 39,494,746 9 2.77% SCPPA Utility 30,086,707 10 2.11% Total $ 63,238,085 4.22% $ 729,584,799 51.11% District's Assessed Valuation $ 1,499,766,524 100.00% $ 1,427,428,411 100.00% Source: San Juan County's Assessor's Office State of New Mexico Taxation & Revenue, Property Tax Division -251- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOLS DISTRICT NO. 5 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected within the Fiscal Year of the Levy Total Collections to Date Taxes Levied Collection Fiscal forthe Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2022 $ 14,932,710 $ 14,466,754 96.88% $ 232,983 $ 14,699,737 98.44% 2021 14,541,495 14,024,824 96.45% 1,403 14,026,226 96.46% 2020 14,386,629 13,768,647 95.70% 1,377 13,770,024 95.71% 2019 14,432,659 13,976,218 96.84% (134,986) 13,841,232 95.90% 2018 14,210,750 13,658,912 96.12% 243,130 13,902,042 97.83% 2017 13,934,874 13,382,726 96.04% 325,333 13,708,059 98.37% 2016 13,695,728 13,118,514 95.79% 357,750 13,476,264 98.40% 2015 13,395,584 12,901,875 96.31% 416,509 13,318,384 99.42% 2014 13,112,805 12,608,715 96.16% 474,904 13,083,619 99.78% 2013 12,817,489 12,264,550 95.69% 543,871 12,808,421 99.93% Source:San Juan County Treasurer. -252- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOLS DISTRICT NO. 5 OUTSTANDING DEBTBYTYPE LAST TEN FISCAL YEARS Governmental Activities General Total Percentage Obligation Primary of Personal Per Bonds Government Income1 Capitaz 2022 73,522,185 73,522,185 3.75% 1,808 2021 78,577,093 78,577,093 4.15% 1,752 2020 87,472,913 87,472,913 4.98% 1,656 2019 92,383,320 92,383,320 5.38% 1,856 2018 90,609,181 90,609,181 5.99% 1,766 2017 83,373,177 83,373,177 6.35% 1,588 2016 94,880,483 94,880,483 8.10% 1,789 2015 58,885,194 58,885,194 5.57% 1,099 2014 68,835,981 68,835,981 5.88% 1,230 2013 46,575,397 46,575,397 3.55% 815 Notes: 1.) NA= Not Available 2.) New Mexico state statute authorizes school districts to issue debt and impose a property t� for the purpose of financing technology leases. 2 Source: United States Department of Commerce, Bureau of Economic Analysis -253- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOLS DISTRICT NO. 5 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Percentage of Estimated General Less: Amounts Actual Taxable Fiscal Obligation Available in Debt Value of Per Year Bonds Service fund Total Property Capita 2022 $ 73,522,185 $ 10,775,312 $ 62,746,873 6.05% $ 1,393 2021 78,577,093 10,728,395 67,848,698 -8.68% 1,574 2020 87,472,913 11,968,460 75,504,453 -9.67% 1,629 2019 92,383,320 12,884,607 79,498,713 -10.18% 1,715 2018 90,609,181 13,270,624 77,338,557 5.19% 1,508 2017 83,373,177 13,377,216 69,995,961 -8.96% 1,624 2016 94,880,483 16,516,851 78,363,632 -10.03% 1,740 2015 58,885,194 13,858,533 45,026,661 4.34% 961 2014 68,835,981 13,861,821 54,974,160 4.94% 1,145 2013 46,575,397 11,949,971 34,625,426 2.84% 703 -254- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 COMPUTATION OF LEGAL DEBT MARGIN LAST TEN YEARS 2013 2014 2015 2016 2017 Debt Limit $ 85,645,705 $ 88,302,824 $ 90,429,785 $ 91,022,616 $ 89,348,775 Total net debt applicable to limit 44,980,000 66,975,000 57,575,000 90,900,000 79,700,000 Legal debt margin $ 40,665,705 $ 21,327,824 $ 32,854,785 $ 122,616 $ 9,648,775 Total net debt applicable to the limit as a percentage of debt limit 53% 76% 64% 100% 89% 2018 2019 2020 2021 2022 Debt Limit $ 89,666,646 $ 91,498,627 $ 90,759,291 $ 90,752,119 $ 89,985,991 Total net debt applicable to limit 87,340,000 89,415,000 84,770,000 76,495,000 71,610,000 Legal debt margin $ 2,326,646 $ 2,083,627 $ 5,989,291 $ 14,257,119 $ 18,375,991 Total net debt applicable to the limit as a percentage of debt limit 97% 98% 93% 84% 80% Legal Debt Limit Calculation for Fiscal Year 2022 Assessed Value $ 1,499,766,524 Debt limit(6%of total assessed value) $ 89,985,991 Debt applicable to limit:General Obligation Bonds 71,610,000 Legal debt margin $ 18,375,991 Note: The debt limit for school districts in New Mexico is 6%of the district's assessed value. -255- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN YEARS Per Calendar Personal Capita Unemployment Year Population Income Income 1 Rate Z 2022 46,774 N/A N/A 5.10% 2021 45,370 N/A N/A 9.40% 2020 44,372 2,032,370,716 45,803 13.10% 2019 49,788 2,157,114,888 43,326 6.90% 2018 51,300 2,137,671,000 41,670 7.40% 2017 52,506 2,086,971,587 39,747 8.00% 2016 53,037 1,379,008,802 26,001 9.10% 2015 53,572 2,066,451,466 38,573 7.70% 2014 55,980 2,026,293,878 36,197 7.40% 2013 57,180 1,928,809,136 33,732 7.60% Notes: NA=Not available - 2021 to be released in November 2022 Source: 1 United States Department of Commerce, Bureau of Economic Analysis Z United States Bureau of Labor Statistics -256- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO. 5 PRINCIPAL EMPLOYERS CURRENT YEAR AND TEN YEARS AGO 2022 2013 Percentage Percentage of Total of Total Employer Employees Rank Employment Employees Rank Employment Farmington Municipal School District No.S 1,689 1 3.50% 1,550 2 3.02% San Juan Regional Medical Center 1,640 2 3.40% 1,786 1 3.48% City of Farmington 1,200 3 2.49% 900 6 1.75% Central Consolidated Schools 1,000 4 2.07% 1,162 3 2.27% San Juan College 870 5 1.80% 1,100 4 2.14% Wal-Mart 800 6 1.66% 756 7 1.47% Basin Home Health/Basin Coord. 660 7 1.37% San Juan County 650 8 1.35% Bloomfield Schools 557 9 1.16% 462 10 0.90% Hilcorp 537 10 1.11% BHP Billiton 1,034 5 2.02% Conoco Phillips 610 8 1.19% Arizona Public Service Company 573 9 1.12% 9,603 19.91% 9,933 19.36% -257- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 FULL-TIME-EQUIVALENT DISTRICT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Full-time Equivalent Employees as of June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Instruction: Teachers 646 642 652 628 623 663 708 710 696 659 Instructional Aides 148 185 188 170 157 179 183 185 178 211 Support services: Students 151.5 187.5 197 187 169 163 165 123 157 155 Instruction-support 21.3 20.3 19.3 17.3 18 19 21 23 21 26 General Administrative 12.5 14.3 17.5 16 10 9 9 9 7 11 School Administrative 50.4 59 56.5 61 59 50 54 65 50 42 Central Services 17.8 16.8 14 13 13 14 14 17 14 11 Operations&Maintenance of Pla 94 95 105 105 104 92 90 97 92 105 Student Transportation 61.4 56 59 57 63 61 59 58 60 63 Food Services Operations 4 4 4 3 3 3 4 4 4 4 Total 1,207 1,280 1,312 1,257 1,219 1,253 1,307 1,291 1,279 1,287 Notes: Full-time instructional employees of the district are employed for all 185 scheduled school days,at 7.5 hours per day or 1,387.5 hours per year. Bus Drivers FTE calculation changed in 2012 to reflect actual hours in route. Source:Actuals Expenditure Rollup Report -258- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 OPERATING STATISTICS LAST TEN FISCAL YEARS Percentage of Students Receiving Cost Cost Pupil- Free or Fiscal Operating Per Percentage Per Percentage Teaching Teacher Reduced-Price Year Enrollment Expenditures Pupil Change Expenses Pupil Change Staff Ratio Meals 2022 10,936 $ 98,548,599 9,011 10.46% $ 136,072,932 $ 12,443 6.37% 646 16.93 40.54% 2021 10,500 96,004,446 9,143 26.41% 119,459,919 11,377 10.31% 642 16.36 43.19% 2020 11,051 90,154,669 8,158 20.33% 129,271,040 11,698 13.75% 652 16.95 46.40% 2019 10,964 79,299,830 7,233 6.69% 113,080,356 10,314 0.30% 628 17.46 44.40% 2018 10,958 74,291,727 6,780 -1.34% 112,685,658 10,283 -4.68% 623 17.59 68.65% 2017 10,919 75,030,807 6,872 -3.90% 117,795,535 10,788 -1.03% 663 16.47 62.04% 2016 10,928 78,137,653 7,150 1.73% 119,123,975 10,901 -2.30% 708 15.44 57.43% 2015 11,069 77,800,382 7,029 5.36% 123,498,205 11,157 17.15% 710 15.59 55.20% 2014 10,923 72,871,616 6,671 6.29% 104,025,142 9,523 0.27% 696 15.69 56.08% 2013 10,686 67,074,652 6,277 2.49% 101,490,733 9,498 -0.46% 659 16.22 55.22% Notes: Enrollment figures from average student counts on 80th and 120th day of school. Expenses include expenditures for all governmental funds less debt service -259- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 SCHOOL BUILDING INFORMATION LAST FIVE YEARS School 2017 2018 2019 2020 2021 2022 Elementary Animas (1963) Square Feet 56,678 56,678 56,678 56,678 56,678 56,678 Capacity 528 528 528 528 528 528 Enrollment 445 471 453.5 409.5 374 383.5 Apache (1956) Square Feet 59,712 59,712 59,712 59,712 59,712 59,712 Capacity 594 594 594 594 594 594 Enrollment 472 459 467.5 463.5 457 450.5 Bluffview (1961) Square Feet 61,197 61,197 61,197 61,197 61,197 61,197 Capacity 578 578 578 578 578 578 Enrollment 409 410 406 383 386.5 365 Country Club (1959) Square Feet 59,164 59,164 59,164 59,164 59,164 59,164 Capacity 578 578 578 578 578 578 Enrollment 555 570 597 559.5 474.5 485.5 Esperanza (1995) Square Feet 79,284 79,284 79,284 79,284 79,284 79,284 Capacity 660 660 660 660 660 660 Enrollment 593 566 519 524.5 448 470.5 Ladera (1963) Square Feet 59,159 59,159 59,159 59,159 59,159 59,159 Capacity 561 561 561 561 561 561 Enrollment 595 572 554 554.5 492.5 516.5 McCormick (1954) Square Feet 57,474 66,267 66,267 66,267 66,267 66,267 Capacity 578 578 578 578 578 578 Enrollment 444 429 442 408 407.5 418.5 McKinley (1954) Square Feet 73,192 73,192 73,192 73,192 73,192 73,192 Capacity 644 644 644 644 644 644 Enrollment 587 572 577 526.5 468 482 Mesa Verde (1963) Square Feet 54,131 54,131 54,131 54,131 54,131 54,131 Capacity 578 578 578 578 578 578 Enrollment 502 470 445 478.5 411.5 437 Northeast (1963) Square Feet 76,928 76,928 76,928 76,928 76,928 76,928 Capacity 580 580 580 580 580 580 Enrollment 626 631 599.5 569.5 498 498 Source:School District's Master Facility Surve�cont'd; 1 of 2) -260- STATE OF NEW MEXICO FARMINGTON MUNICIPAL SCHOOL DISTRICT NO.5 SCHOOL BUILDING INFORMATION LAST FIVE YEARS School 2017 2018 2019 2020 2021 2022 Middle School Heights (1971) Square Feet 88,229 88,229 88,229 88,229 88,229 88,229 Capacity 1100 1100 1100 1100 1100 1100 Enrollment 692 704 701 762 694 735.5 Hermosa (1960) Square Feet 94,466 94,466 94,466 94,466 94,466 94,466 Capacity 1025 1025 1025 1025 1025 1025 Enrollment 603 644 635.5 703.5 655.5 657.5 Mesa View (1994) Square Feet 100,987 100,987 100,987 100,987 100,987 100,987 Capacity 1080 1080 1080 1080 1080 1080 Enrollment 544 503 517 543 555.5 581 Tibbetts (2014) Square Feet 113,217 113,217 113,217 113,217 113,217 113,217 Capacity 1160 1160 1160 1160 1160 1160 Enrollment 621 656 666.5 715.5 727.5 731 High School Farmington (1955) Square Feet 180,598 317,044 317,044 317,044 317,044 317,044 Capacity 2334 2334 2334 2334 2334 2334 Enrollm ent 1322 1325 1373 1414.5 1510 1718 Piedra Vista (1998) Square Feet 247,138 253,238 253,238 253,238 253,238 253,238 Capacity 1821 1821 1821 1821 1821 1821 Enrollment 1430 1401 1433.5 1401.5 1391.5 1474.5 Rocinante (1996) Square Feet 24,187 24,187 24,187 24,187 24,187 24,187 Capacity 333 333 333 333 333 333 Enrollment 207 228 227.5 248 202.5 206 San Juan College HS(2016) Square Feet 8,322 8,322 8,322 8,322 8,322 8,322 Capacity 88 88 88 88 88 88 Enrollment 74 148 231 286.5 278.5 275 Preschool FS Preschool (1991) Square Feet 13,505 13,505 13,505 13,505 13,505 13,505 Capacity 92 92 92 92 92 92 Enrollm ent 173 168 168 169 151 150 Cate Center (1949) Square Feet 52,191 52,191 52,191 52,191 52,191 52,191 Capacity 719 719 719 719 719 719 Enrollm ent 200 200 200 200 165 155 (2of2) -261- Compliance Section Farmington Municipal School District No. 5 -262- `` C A R R Carr,Riggs&Ingram,LLC //, R RIGGS & 2424 Louisiana Boulevard NE � ■ \ I INGRAM suite300 CPAs and Advisors Albuquerque,NM 81110 505.8832727 505.884.6719(fax) CRlcpa.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Brian S. Colon, Esq. New Mexico State Auditor The Office of Management and Budget and The Board of Education Farmington Municipal School District No. S Farmington, New Mexico We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, the aggregate remaining fund information, and the budgetary comparisons for the general fund and major special revenue fund that has a legally adopted annual budget of the Farmington Municipal School District No. 5 (the "District"), as of and for the year ended June 30, 2022, and the related notes to the financial statements,which collectively comprise the District's basic financial statements and have issued our report thereon dated November 15, 2022. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis.Amaterial weakness is a deficiency,or a combination of deficiencies, in internal control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2022-001 that we consider to be a material weakness. -263- Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted matters that are required to be reported per section 12-6-5 NMSA 1978 that we have described in the accompanying schedule of findings and questioned costs as items 2022-002, 2022-003, 2022-004, 2022-005, 2022-006, 2022-007 and 2022-008. District's Responses to Findings Government Auditing Standards requires the auditor to perform limited procedures on the District's responses to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The District's responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly,we express no opinion on the responses. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CQ,w} /��a.� £ o.2r�� L.�.C„ Carr, Riggs& Ingram, LLC Albuquerque, NM November 15, 2022 -264- r C A R R Carr,Riggs&Ingram,LLC /f' R RIGGS & 2424 Louisiana Boulevard NE � ■ \ I INGRAM Suite300 CPAs and Advisors Albuquerque,NM 87110 505.883.2727 505.884.6719(fax) CRlcpa.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Brian S. Colon, Esq. New Mexico State Auditor The Office of Management and Budget and The Board of Education Farmington Municipal School District No. 5 Farmington, NM Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Farmington Municipal School District No. 5's (the "District") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the District's major federal programs for the year ended June 30, 2022. The District's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the District's compliance with the compliance requirements referred to above. -265- Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District's federal programs. Auditors'Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred,whether due to fraud or error,and express an opinion on the District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, GovernmentAuditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the District's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance,whether due to fraud or error,and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. -266- Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. C�, R� � �2�;;.�,, �.�.� Carr, Riggs & Ingram, LLC Albuquerque, New Mexico November 15, 2022 -267- State of New Mexico Farmington Municipal School District No. 5 Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022 Grant/Pass- Through Federal Grantor or Pass-Through Grantor/Program Title Number U.S. Department of Education Passed through New Mexico Public Education Department Title I Grants to Local Educational Agencies 24101 Special Education Grants to States-Special Education Cluster(IDEA) 24106 Special Education Preschool Grants-Special Education Cluster(IDEA) 24109 Special Education Grants to States -Special Education Cluster(IDEA) 24188 Subtotal-Special Education Cluster Education for Homeless Children and Youth 24113 Twenty-First Century Community Learning Centers 24119 English Language Acquisition State Grants 24153 Supporting Effective Instruction State Grants 24154 Career and Technical Education Basic Grants to States 24174 Student Support Academic Enrichment Program 24189 COVID-19-Education Stabilization Fund, ESSER 24301 COVID-19-Education Stabilization Fund, GEER, Connectivity 24305 COVID-19-Education Stabilization Fund, ESSER II 24308 COVID-19-Education Stabilization Fund, ESSER,Social and Emotional Learning 24309 COVID-19-Education Stabilization Fund, GEER,Air Quality 24316 COVID-19-Education Stabilization Fund,ARP ESSER 24330 COVID-19-Education Stabilization Fund, ESSER III Homeless Children and Youth 24350 COVID-19-Education Stabilization Fund,ARP Homeless Children and Youth II 24355 Direct Funding Impact Aid -General Fund 11000 Impact Aid -Special Education 25145 Impact Aid - Indian Education 25147 Title VI Indian Ed Formula Grant 25184 English Language Acquisition State Grants-Strengthening Teaching and Learning of the English and Dine (Navajo) Languages 25248 Total U.S. Department of Education U.S. Department of Interior Passed through the Office of the Navajo Nation Indian Education-Assistance to Schools 25131 Total U.S. Department of Interior U.S. Department of Agriculture Passed through New Mexico Public Education Department Fresh Fruit and Vegetable Program 24118 National School Lunch Program-SSO-Child Nutrition Cluster 21000 Subtotal-Child Nutrition Cluster Total U.S. Department of Agriculture Total Federal Financial Assistance See accompanying notes to schedule of expenditures of federal awards. -268- Assistance Cluster/ Funds Listing Federal Program Provided to Noncash Number Expenditures Subtotals Subrecipients Assistance 84.010 $ 2,631,874 $ - $ - 84.027 3,114,599 - - 84.173 77,452 - - 84.027A 231,405 - - 3,423,456 84.196 14,997 - - 84.287C 292,333 - - 84.365 48,558 - - 84.367 377,130 - - 84.048 118,926 - - 84.424 301,297 - - 84.425D 1 - - 84.425C 1 - - 84.425D 8,011,052 - - 84.425 D 15,000 - - 84.425D 192,359 - - 84.425D 646,030 - - 84.425W 16,287 - - 84.425W 13,012 8,893,742 - - 84.041 84,891 - - 84.041 716 - - 84.041 139,917 225,524 - - 84.060 798,069 - - 84.365C 96,387 144,945 - - 17,222,293 - - 15.130 379,632 - - 379,632 - - 10.582 156,078 - - - 10.555 6,769,610 - 448,926 6,925,688 6,925,688 - 448,926 $ 24,527,613 $ - $ 448,926 See accompanying notes to schedule of expenditures of federal awards. -269- THIS PAGE INTENTIONALLY LEFT BLANK -270- State of New Mexico Farmington Municipal School District No. 5 Notes to Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2022 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Farmington Municipal School District No. 5 and is presented on the modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. 2. Loans The District did not expend federal awards related to loans or loan guarantees during the year. 3. 10%de minimus Indirect Cost Rate The District did not elect to use the allowed 10% indirect cost rate. 4. Federally Funded Insurance The District has no federally funded insurance. 5. Noncash Assistance The District expended noncash assistance in the form of commodities provided by USDA. Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements: Total federal awards expended per Schedule of Expenditures of Federal Awards $ 24,527,613 Total expenditures funded by other sources 120,707,160 Total expenditures $ 145,234,773 -271- THIS PAGE INTENTIONALLY LEFT BLANK -272- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION I:SUMMARY OF AUDITORS' RESULTS Financial Statements: 1. Type of auditors' report issued Unmodified 2. Internal control over financial reporting: a. Material weaknesses identified? Yes b. Significant deficiencies identified not considered to be material weaknesses? None noted c. Noncompliance material to the financial statements? No Federal Awards: 1. Type of auditors' report issued on compliance for major programs Unmodified 2. Internal control over major programs: a. Material weaknesses identified? No b. Significant deficiencies identified not considered to be material weaknesses? None noted 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516 (a) No 4. Identification of major programs: Assistance Listing Number Federal Pro�ram 84.027, 84.173 Special Education Cluster 84.425 Education Stabilization Fund S. Dollar threshold used to distinguish between type A and type B programs: $750,000 6. Auditee qualified as low-risk auditee? No -273- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION II: FINANCIAL STATEMENT FINDINGS 2022-001—Outstanding Reconciling Items—Material Weakness Condition: The District had 2 outstanding items over a year old which amounted to $1,016,449 and were not included in the bank reconciliation given to auditors to schedule out cash. Criteria: Per NMAC 6.20.2.11 (A) Internal Control Structure Standards, "every school district shall establish and maintain an internal control structure to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with GAAP. The internal control structure shall include written administrative controls (rules, procedures and practices, and policies that affect the organization) and accounting controls (activity cycles,financial statement captions, accounting applications including computer systems)that are in accordance with GAAP." Effect:The absence of a proper review and approval of year end processes could allow for incorrect cash balances at year end. Cause:The District did not include 2 outstanding reconciling items on the June 2022 bank reconciliation for Employee Benefits cash account. Auditor's Recommendation: We recommend controls be implemented to ensure that outstanding reconciling items are properly included on the bank reconciliation at year-end and if a year old voided. Views of Responsible Officials of Auditee: The District will implement a second review of all bank reconciliations before they are given to the auditor to ensure the proper and complete information is available for use during the annual audit. The Chief Financial Officer and Comptroller are responsible for implementation which is expected before submitting June 30, 2023 information to the auditor. SECTION III: FEDERAL AWARD FINDINGS None noted. -274- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS 2022-002 (Previously reported as 2021-003J — Cash Appropriations in Excess of Available Cash ealances—Other noncompliance Condition: The District maintained a deficit budget in excess of available cash balances in the following funds: Cash Beginning Year Appropriation in Cash&AR Excess of Designated Cash Available Available Fund 24308 CARES Act, ESSER II $ 8,443,235 $ 170,238 $ (8,272,997) Progress on resolution of prior year finding: No progress on finding Criteria: Section 2.2.2.10. (P) (1), NMAC, requires all School District funds, with the exception of agency funds, to be budgeted by the local governing body and submitted to the Public Education Department for approval. Cash balances rebudgeted to make up for deficit budgeted revenues that do not cover the budgeted expenditures, cannot exceed the actual cash balance available at the end of the prior year. Effect: The District will have to supplement the budget deficit with other funds, which may lead to financial difficulties and deplete the budget in other funds. Cause: The District has internal controls in place to monitor budget versus available cash, however this fund was missed in the process.The District did not budget revenue for this fund. Auditors'Recommendations: Budget deficits for future years should be reviewed to insure all funds have adequate budget authority and sufficient cash balances for budgeted deficits. Greater attention should be given to the budget monitoring process end-of-the-year cash balance estimates. Views of Responsible Officials of Auditee: The District will implement a review system that includes a review of revenue along with expenditures and cash balance on a quarterly basis to ensure all funds have the correct revenue budgeted and to ensure all Budget Adjustment Requests required are completed in a timely manner. The Chief Financial Officer and Comptroller are responsible for implementation which is expected by December 31, 2022. -275- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-003—Budgetary Compliance—Other noncompliance Condition: The District carries a budget deficit in the following fund functions: Nonmajor Funds SB-9 Capital Projects Fund - Local -31701 -support services $ 43 Total governmental funds $ 43 Criteria: Section 2.2.2.10. (P) (1), NMAC, requires all School District funds, with the exception of agency funds, to be budgeted by the local governing body and submitted to the Public Education Department for approval. Cash balances re-budgeted to make up for deficit budgeted revenues that do not cover the budgeted expenditures, cannot exceed the actual cash balance available at the end of the prior year. Effect: The District will have to supplement the budget deficits with other funds, which may lead to financial difficulties and deplete the budget in other funds. Cause:The District has internal controls in place to monitor budget versus available cash, however these fund were missed in the process.The District did not budget revenue for this fund. Auditors'Recommendations: Budget deficits for future years should be reviewed to insure all funds have adequate budget authority and sufficient cash balances for budgeted deficits. Greater attention should be given to the budget monitoring process end-of-the-year cash balance estimates. Views of Responsible Officials of Auditee: The District will implement a system to review budget balances on a quarterly basis to ensure that all Budget Adjustment Requests required are completed in a timely manner so that actual expenditures do not exceed budgeted expenditures. Additional reviews of budgeted functions will be put in place to ensure that deficits do not occur at the end of the year. The Chief Financial Officer and Comptroller are responsible for implementation which is expected prior to submitting quarterly actuals to PED in January 2023. -276- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-004—Stale Dated Checks and Bank Reconciliation Review—Other matter Condition: The District had 28 outstanding checks written from their bank accounts that were over one year old on their bank reconciliation at June 30, 2022, totaling $6,181. The District has not cancelled these items. Bank reconciliation does not indicate when review and approval occurred. Criteria: New Mexico Statutes, Section 6-10-57 A, NMSA, 1978 compilation, requires local public bodies to cancel or void any checks that are unpaid for one year after it is written. 6-10-57 C NMSA, 1978 states that the face amount of warrants cancelled shall revert and be credited to the fund against which it was drawn. Per PSAB Supplement 7 Cash Controls, cash reconciliation to bank balances should follow Section 20-2- 14, NMSA, 1978 compilation, and all bank accounts shall be reconciled on a monthly basis and reviewed. Effect: The District's cash balance may be misstated by the amount of the stale checks, and is not in compliance with Section 6-10-57 A, NMSA, 1978 and timely reconciliation of cash accounts may not catch misstatements. Cause:The District overlooked the stale-dated checks during the bank reconciliation process which does not indicate if reviewed and approved on a timely basis. Auditors' Recommendation: We recommend that the outstanding checks be voided as soon as possible and that a procedure to track and void stale dated checks be implemented. We also recommend the District review bank reconciliations to capture checks that are considered stale dated in a timely manner. Views of Responsible Officials of Auditee:The District will put into place a procedure to void stale dated checks as part of the bank reconciliation process each month to ensure all staled checks are voided on a monthly basis. The District will begin dating all bank reconciliation reviews when they occur in addition to the current process of initialing off on the review of the reconciliation each month. The Chief Financial Officer and Comptroller are responsible for implementation which is expected by December 31, 2022. -277- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-005(Previously reported as 2021-005J—Controls over Cash Receipting and Segreqation of Duties at Schools—Other noncompliance Condition: During testwork performed to see if prior year finding was resolved, 2 deposits out of 4 deposits tested were not deposited within the 24 hour deposit rule. During our testwork at the High Schools cash receipting process we identified one individual had the ability to receive, receipt, and deposit cash without a review from another individual. Progress on resolution of prior year finding: No progress on finding Criteria: Per NMAC 6.20.2.14 (C) Cash Control Standards- money received and receipted shall be deposited in the bank within twenty-four (24) hours or one banking day. If the distance to the bank is considerable, or the cash collection is limited to small amounts and/or low volume and it is impractical to meet the twenty-four hour requirement the local board may request approval from the department for an alternative plan. Proper internal controls require segregation of the cash receipting, or mitigating controls ensuring review of the process. Effect: Monies that are collected and not deposited timely are subject to possible errors, fraud or abuse. There is an increased risk that cash receipts could be improperly not receipted or deposited in the correct amount or at all. Cause:The District did not deposit 2 deposits within 24 hours of receipt. The District has not considered it necessary to segregate or otherwise monitor cash receipting process at the individual schools. Auditor's Recommendation: We recommend the District conduct internal trainings on the importance and ramifications of not following state statues and laws. In addition, deposits should be deposited within 24 hours of receipt. The District should ensure there is a break in the process and that one employee does not have full access to the cash receipting process and that there is proper review. Views of Responsible Officials of Auditee: The District will review the cash receipt procedure in place at each location to ensure compliance with the district internal control policies and state law. Corrective actions will be taken at each location that are found to be out of compliance.The district will continue to encourage all locations to use the online payment program to make real time updated changes when payments are received. The Comptroller will review receipts periodically to assure proper procedures are being followed. The Chief Financial Officer and Comptroller are responsible for implementation which is expected by December 31, 2022. The District will implement a process at each location to have the person preparing the deposit to sign off on the bank deposit slip as the preparer and another person review the receipts and deposit before signing off on the deposit slip as the reviewer.The Chief Financial Officer and Comptroller are responsible for implementation which is expected by December 31, 2022. -278- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-006(Previously reported as 2021-004)—ACH Vendor Process and Time Sheets—Other matter Condition: The District does not have a process in maintaining a list of new and changed ACH on Vendors nor does it have a process to track time worked by exempt and hourly employees. Progress on resolution of prior year finding: Changes to the purchasing procedures made for vendor changes. No progress on tracking the new and changed vendors in year. No progress on tracked time. Criteria: Per NMAC 6.20.2.11 (A) Internal Control Structure Standards, "every school district shall establish and maintain an internal control structure to provide management with reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with GAAP. The internal control structure shall include written administrative controls (rules, procedures and practices, and policies that affect the organization) and accounting controls (activity cycles,financial statement captions, accounting applications including computer systems)that are in accordance with GAAP." Effect: The absence of a proper review and approval of ACH Vendor changes could allow for improper vendors being paid. The absence of a proper review and approval of time sheet could allow for the over/under payments of employees. Cause:The District did not have proper controls in place for ensuring new Vendors and changes for ACH process. The District did not have proper controls in place to ensure accurate time worked for each employee. Auditor's Recommendation: We recommend controls be implemented to ensure that new vendors and changes to ACH are maintained as well as ensuring all employees are using timesheets. Views of Responsible Officials of Auditee: The District has changed its purchasing procedures to include phone verification for all vendor change requests. A review of the vendor change report, which was developed to track vendor changes, is made before any ACH payments are processed. This report along with the verifications is included in the monthly AP bank reconciliation and signed off on monthly. The Comptroller will keep a list of vendor changes and additions to give the auditor when requested at the end of year. The Chief Financial Officer and Comptroller are responsible for implementation which is expected by December 1, 2022. -279- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-007 Travel and Per Diem—Other noncompliance Condition: In a sample of 10 travel and per diem samples, the District reimbursed one employee meal expense at actual expense for same day travel using the FY21 approved. Criteria: NMAC 6.20.2.19 requires the District to comply with the Per Diem and Mileage Act, Sections 10-8-1 through 10-8-4,for all per diem and reimbursement rates. Per NMAC 2.42.2.8b1: Partial day per diem rate for public officers or employees who occasionally and irregularly travel shall be reimbursed for travel which does not require overnight lodging, but extends beyond a normal work day at the rates approved. Effect: The District did not comply with the Mileage and Per Diem Act and reimbursed actual expense instead of partial day per diem for same day travel. Cause: The District did not follow the Per Diem and Mileage Act when processing travel and per diem expenditures for same day travel. Auditors'Recommendation:The District should implement a procedure to ensure correct travel and per diem rates as approved by the NM DFA are being used and that same day travel is not using the actual expense method but rather the partial day per diem method to ensure all reimbursements are in compliance with State Statutes. Views of Responsible Officials of Auditee: The District will change its travel policy to reflect the changes in same day travel to only include per diem amounts and not reimbursement of actual expenses and a review will be made to ensure that the rates are current as approved by NM DFA. The Chief Financial Officer and Comptroller are responsible for implementation. Implementation is expected by December 1st, 2022. -280- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION IV:SECTION 12-6-5 NMSA 1978 FINDINGS(Continued) 2022-008 Pledged Collateral—Other noncompliance Condition: Deposits at Wells Fargo Bank were not collateralized in accordance with State of New Mexico Statutes. The required collateral was $14,514,036 and pledged collateral of $14,275,033. There was a shortfall of$239,003. Criteria: Any bank designated a deposit of public money shall deliver pledged collateral with a value equal to one half the amount of the public money in excess of insurance, to a custodial bank and a joint safekeeping receipt issued by the custodial bank to the District (Section 6-10-17 NMSA 1978). Monitoring collateralization of the District's funds is essential in ensuring compliance with State of New Mexico Statutes. Effect: Lack of proper monitoring of pledged collateral could result in excessive loss of District's funds if the financial institutions encounter financial difficulties. Cause:The District did not monitor pledged collateral requirements. Auditors' Recommendation: An individual should be assigned the responsibilities of reviewing the monthly collateral reports, investigating differences, and resolving discrepancies. Views of Responsible Officials of Auditee: The District will implement a system to review and monitor pledged collateral each month to ensure the district has sufficient pledged collateral at all banks where money is deposited by the district. The Chief Financial Officer and Comptroller are responsible for implementation which is expected by January 3rd, 2023. -281- State of New Mexico Farmington Municipal School District No. 5 Schedule of Findings and Questioned Costs June 30, 2022 SECTION V: PRIOR YEAR FINDINGS 2021-001 Restatement of Net Position (Material Weakness)—Resolved 2021-0021ncorrectAccrual ealance(Material WeaknessJ—Resolved 2021-003 Cash Appropriations in Excess of Available Cash ealances(Other NoncomplianceJ—Repeated and Modified as 2022-002 2021-004 ACH Vendor Process and Time Sheets(Other Matter)—Repeated and Modified as 2022-006 2021-005 Controls Over Cash Receipting (Finding that does not rise to the level of a Significant DeficiencyJ— Repeated and Modified as 2022-005 2021-006 Late Audit Report Submittal(Other Noncompliance)— Resolved -282- State of New Mexico Farmington Municipal School District No. 5 Other Disclosures June 30, 2022 EXIT CONFERENCE An exit conference was held on November 15, 2022. In attendance were the following: Representing Farmington Municipal School District No. 5 Andrea Stradling School Board Member Cody Diehl Superintendent Bobbie Newland Chief Financial Officer Christy Dunson Comptroller Phyllis Timme AP Specialist Representing Carr, Riggs& Ingram, LLC Alan D. "A.J." Bowers,Jr., CPA, CITP Partner Vicki Dallas, CPA, CITP Senior Manager AUDITOR PREPARED FINANCIAL STATEMENTS Carr, Riggs & Ingram, LLC prepared the GAAP-basis financial statements and footnotes of Farmington Municipal School District No. 5 from the original books and records provided to them by the management of the District. The responsibility for the financial statements remains with the District. -283-