HomeMy WebLinkAboutGlobe Unified School District No. 1 - Public Financial ReportGLOBE UNIFIED SCHOOL DISTRICT NO. 1
GLOBE, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30,2022
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Capturing Hearts, Empowering Minds
460 N Willow St. I Globe, AZ 85501-2589
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INTRODUCTORY SECTION
Letter of Transmittal
Organizational Chart
List of Principal and Elected Officials
ASBOI Certificate of Excellence in Financial Reporting
FINANCIAL SECTION
Independent Auditors' Report
Management's Discussion and Analysis
Basic Financial Statements:
Governmental -wide Financial Statements
Statement of Net Position
Statement of Activities
Investment in capital assets
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viii
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Governmental Funds - Balance Sheet 13
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 14
Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances 15
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities 16
Notes to the Basic Financial Statements 17
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the Proportionate Share of the Net Pension Liability and Contributions 34
Budgetary Comparison Schedule for the General Fund (Budgetary Basis) 3S
Budgetary Comparison Schedule for the Classroom Site Fund 36
Budgetary Comparison Schedule for the Special Projects Fund 37
Notes to Required Supplementary Information 38
OTHER SUPPLEMENTARY INFORMATION
Nonmajor Governmental Fund Descriptions 39
Combining Statements - Nonmajor Governmental Funds:
Combining Balance Sheet - Nonmajor Governmental Funds 40
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds 41
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Instructional Improvement Fund 42
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
OTHER SUPPLEMENTARY INFORMATION (CONTINUED)
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Other Special Revenue Fund
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Food Service Fund
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - Student Activities Fund
STATISTICAL SECTION
Statistical Section Descriptions
Financial Trends:
Net Position by Component
Expense, Program Revenues, and Net Position
General Revenues and Total Changes in Net Position
Fund Balances - Governmental Funds
Revenues - Governmental Funds
Expenditures and Debt Service Ratio - Governmental Funds
Other Financing Sources and Uses and Net Changes in Fund Balances - Governmental Funds
Revenue Capacity:
Net Full Cash Assessed Value by Property Classification
Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Debt Capacity:
Outstanding Debt by Type
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Demographic and Economic Information:
County -Wide Demographic and Economic Statistics
Principal Employers - Gila County
Full -Time Equivalent District Employees by Type
Average Daily Membership
Operating Information:
Operating Statistics
Capital Asset Information
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INTRODUCTORY SECTION
Globe Unified School District No.1
' 460 N. Willow St. Globe, AZ 85501
Jacque Cline -Sanders Jerry Jennex Christa DalMolin-East Trent Lyon
Board President Superintendent Deputy Superintendent/HR Dir. of Business Operations.
December 28, 2022
Citizens and Governing Board
Globe Unified School District No. 1
460 North Willow
Globe, AZ 85501
State law mandates that school districts required to undergo an annual single audit publish a complete set of
financial statements presented in conformity with accounting principles generally accepted in the United States
of America and audited in accordance with auditing standards generally accepted in the United States by a
certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue
the annual comprehensive financial report (ACFR) of the Globe Unified School District No. 1 (District) for the
fiscal year ended June 30, 2022.
This report consists of management's representations concerning the finance of the District. Consequently,
management assumes full responsibility for the completeness and reliability of all of the information presented
in this report. To provide a reasonable basis for making these representations, management of the District has
established a comprehensive internal control framework that is designed both to protect the District's assets
from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the District's
financial statements in conformity with accounting principles generally accepted in the United States of America.
Because the cost internal controls should not outweigh their benefits, the District's comprehensive framework of
internal controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from materials misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The District's financial statements have been audited by CWDL Certified Public Accountants, a certified public
accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the District for the fiscal year ended June 30, 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.
Capturing Hearts, Empowering Minds
Globe Unified School District will use its resources to emphasize academic achievement, promote lifelong leaming and encourage community and global service.
The independent auditor concluded, base conducted, based upon the audit, that there was a reasonable basis
for rendering an unmodified opinion that the District's financial statements for the fiscal year ended June 30,
2022, are fairly presented in conformity with accounting principles generally accepted in the United States of
America. The independent auditors' report is presented as the first component of the financial section of this
report.
The independent audit of the financial statements of the District was part of a broader, federally mandated
Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) designed to meet the special needs of federal grantor agencies. The
standards of governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited District's 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 a separately issued Single Audit Reporting
Package.
Accounting principles generally accepted in the United States of America require that management provide a
narrative introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A
and should be read in conjunction with it. The District's MD&A can be found immediately following the report of
the independent auditors.
PROFILE OF THE DISTRICT
The District is one of nine public school districts located in Gila County, Arizona. It provides a program of public
education from kindergarten through grade 12, with an estimated current enrollment of 1,600 students. Globe
Unified School District's first kindergarten through grade 12 school was constructed in 1891, known as Central
School. The District has since grown to include three schools: Copper Rim Elementary School, High Desert
Middle School, and Globe High School. Globe High School was constructed in 1914.
The District's Governing Board is organized under Section 15-321 of the Arizona Revised Statutes (A.R.S.).
Management of the District is independent of other state or local governments. The County Treasurer collects
taxes for the District, but exercises no control over its expenditures/expenses.
The membership of the Governing Board consists of five members elected by the public. Under existing statutes,
the Governing Board's duties and powers include, but are not limited to, the acquisition, maintenance and
disposition of school property; the development and adoption of a school program; and the establishment,
organization and operation of schools. The Board also has broad financial responsibilities, including the approval
of the annual budget, and the establishment of a system of accounting and budgetary controls.
Capturing Hearts, Empowering Ylinds
Globe Unified School District will use its resources to emphasize academic achievement, promote lifelong learning and encourage community and global service.
The financial reporting entity consists of a primary government and its component units. A component unit is a
legally separate entity that must be included in the reporting entity in conformity with generally accepted
accounting principles. The District is a primary government because it is a special-purpose government that has
a separately elected governing body, is legally separate, and is fiscally independent of other state or local
governments.
Furthermore, there are no component units combined with the District for financial statement presentation
purposes, and the District is not included in any other governmental reporting entity. Consequently, the District's
financial statements include only the funds of those organizational entities for which its elected governing board
is financially accountable. The District's major operations include education, student transportation, construction
and maintenance of District facilities, food services, bookstore and athletic functions.
The District's Mission Statement is "Globe Unified School District will use its resources to emphasize academic
achievement, promoting lifelong learning and encourage community and global service". The District has set
two goals to help achieve our mission statement. (Goal #1) Hire the best people and train them. (Goal #2) Make
connections and form relationships with customers.
In support of this mission statement, we expect:
• the guaranteed use of a rigorous and relevant curriculum, based on world class standards with frequent,
common assessments to monitor student learning.
• that students will receive appropriate instruction and support until they demonstrate mastery of the
curriculum and once mastery is demonstrated, students will be challenged to apply it with greater depth;
that all staff will collaborate for the purpose of continuously improving all district systems and sharing
accountability for each student's learning.
• that administrators will recruit and retain the best teachers, provide the necessary professional
development and compensate them based on market demand and the degree of difficulty of their
assigned responsibilities.
• effective and efficient facility utilization with proper fiscal accountability for all funds; that all deficiencies
identified in the state audit will be addressed.
• all employees will practice the district vision statement, "Capturing Hearts, Empowering Minds."
The Globe Unified School District is located in the central portion of the Gila County, approximately 90 miles east
of the City of Phoenix, Arizona. The District encompasses approximately 275.8 square miles or approximately 6%
of the land area of Gila County, Arizona and shares a border with the San Carlos Apache Reservation. The City of
Globe's current population is estimated to be 7,347. (2019 census.org estimate).
Capturing Hearts, Empowering Ylinds
Globe Unified School District will use its resources to emphasize academic achievement, promote lifelong learning and encourage community and global service.
The District's proposed expenditure budget is presented to the Governing Board for review prior to July 5. The
Governing Board is required to hold a public hearing on the proposed budget and to adopt the final budget by
no later than July 15. The expenditure budget is prepared by fund for all Governmental Funds and includes
function and object code detail for the General Fund and some Special Revenue and Capital Projects Funds. The
level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is
established at the individual fund level for all funds. The District is not required to prepare an annual budget of
revenue; therefore, a deficit budgeted fund balance may be presented. However, this does not affect the
District's ability to expend monies.
A schedule of revenues, expenditures and changes in fund balance — budget and actual is provided in this report
for the General Fund. This schedule is presented as required supplementary information. For other Governmental
Funds, this schedule is presented in the Combining and Individual Fund Financial Statements and Schedules
section of this report. Funds that have over -expenditures of budgeted funds have revenue earned throughout
the year. The budget for these funds is simply an estimate and does not prevent the District from exceeding the
budget as long as the necessary revenue is earned.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the District operates.
During the 2020-2021 school year, the district leadership team was uncertain about the effect COVID would
have on student attendance but planned on significant increases in overall enrollment in FY22 since there were
significant losses due to the pandemic. Based on student enrollment trends analyzed over the past ten years, we
anticipated that the majority of students who had stayed away or not enrolled because of COVID concerns
would return to school in the 2021-22 school year. As a result, we have seen an increase in student enrollment
back to regular levels. Because we were close in our estimates of student membership, we have not needed to
adjust our initial budget.
Another factor in our budgeting process was planning for our new Online Academy. We did not know how many
students would be a part of this new addition to our educational opportunities but had to figure that a certain
segment of our population would choose this. Third, we were concerned about the impact of the pandemic on
families moving, tax rates, etc. We asked whether we were able to continue to provide to services we have
provided previously. Finally, we knew we would need to put more money into cleaning and sanitation because
of the pandemic while also budgeting more for technology and online tools to help students who may have
been or would be displaced because of the pandemic.
Local Economy. Mining, health care, and government entities dominate the local economy. Globe/Miami area
major employers include the Freeport-McMoRan Copper and Gold Company, Capstone Mining Corporation, Gila
County Government and Cobre Valley Regional Hospital. The City of Globe still has less than 10 entities that
employ more than 100 people, although the neighboring community of Miami has several mining corporations
located within their city boundaries. Most of the residents who live in Globe work in the mining industry or
contract companies located in the Miami City limits. The result of this dynamic is that the tax base for the City of
Globe and District is predominately private residence values and small businesses, where the city of Miami has
the majority of the larger corporations as their tax base.
Capturing Hearts, Empowering Ylinds
Globe Unified School District will use its resources to emphasize academic achievement, promote lifelong learning and encourage community and global service.
iv
Long-term Financial Planning. The District has faced challenges over the past years with revenue losses at the
state level. However, federal funds have helped offset some of the losses. The District is large with most of the
surrounding property being federal or reservation land. This qualifies the District to receive Impact Aid Revenues
and Forest Fee Revenues in Lieu of Local Property taxes. The district uses these funds conservatively to ensure
that it is able to meet obligations without having to rely on additional taxpayer revenue.
Additionally, the entire district was in online learning mode for the first few weeks of the year, went to a hybrid
mode for learning thereafter, and then modified the hybrid mode to allow online or in -school options only
during the last quarter of the year. All students were provided meals from our cafeterias, and we continued to
send meals to students and families in San Carlos. The district has used a number of other state and federal
funds to supplement and provide resources for our students and their teachers. Any future new revenues will be
directed to support the mission statement and goals of the District.
Awards. The Association of School Business Officials (ASBO) awarded a Certificate of Excellence in Financial
Reporting to the District for its annual comprehensive financial report for the fiscal year ended June 30, 2021. In
addition, the Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the District for its annual comprehensive financial report for the fiscal year
ended June 30, 2020. The Government Finance Officers Association (GFOA) has usually awarded a Certificate of
Achievement for Excellence in Financial Reporting to the District for its annual comprehensive financial report
but they have not done so, citing a backlog of reports. In order to be awarded these certificates, the District
publishes an easily readable and efficiently organized annual comprehensive financial report. This report
satisfied both accounting principles generally accepted in the United States of America and applicable legal
requirements. These certificates are valid for a period of one year only. We believe that our current annual
comprehensive financial report (ACFR) continues to meet the programs' requirements and we are submitting it
to ASBO and GFOA to determine its eligibility for the fiscal year ended June 30, 2022, certificates.
Acknowledgements. The preparation of the annual comprehensive financial report on a timely basis was made
possible by the dedicated service of the entire staff of the business department. Each member of the department
has our sincere appreciation for the contributions made in the preparation of this report.
In closing, without the leadership and support of the governing board of the district, preparation of this report
would not have been possible.
Respectfully submitted,
rre+it Lyanl
Trent Lyon
Director of Business Operations
Capturing Hearts, Empowering Ylinds
Globe Unified School District will use its resources to emphasize academic achievement, promote lifelong learning and encourage community and global service.
V
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
ORGANIZATIONAL CHART
YEAR ENDED JUNE 30, 2022
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GLOBE UNIFIED SCHOOL DISTRICT NO. 1
LIST OF PRINCIPAL AND ELECTED OFFICIALS
YEAR ENDED JUNE 30, 2022
GOVERNING BOARD
Frankie DalMolin
President
Frank Grice Anthony Hernandez
Clerk Member
Lisa Brown Jacque Cline -Sanders
Member Member
ADMINISTRATIVE STAFF
Jerry Jennex, Superintendent
Trent Lyon, Director of Business Operations
Dr. Christa DalMolin-East, Supervisor of Human Resources
Jennifer Gourdin, Coordinator of Special Projects
Sean McDonald, Supervisor of Technology
Aaron Gourdin, Coordinator of Maintenance/Facilities
Tammy Webster, Transportation Coordinator
Craig Hagen, Supervisor of Food Service
vii
ASSOCIATION OF
Ojos-h SCHOOL BUSINESS OFFICIALS
13 INTERNATIONAL
The Certificate of Excellence in Financial Reporting
is presented to
Globe Unified School District 1
for its Annual Comprehensive Financial Report
for the Fiscal Year Ended June 30, 2021.
The district report meets the criteria established for
ASBO International's Certificate of Excellence in Financial Reporting.
■ OCERTIFICATE
EXCELLENCE
■ ■ ■ IN FINANCIAL REPORTING
William A. Sutter David J. Lewis
President
Executive Director
viii
FINANCIAL SECTION
CHDL
INDEPENDENT AUDITORS' REPORT
Governing Board
Globe Unified School District No. 1
Globe, Arizona
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of Globe Unified School District No. 1 (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 as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund information
of Globe Unified School District No. 1, 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 (GAAS) 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 Auditor's 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.
Responsibilities of Management for the Financial Statements
The District's management is responsible for the preparation and fair presentation of the 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.
480-608-1750
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Auditor's 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 auditor's 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 GAAS 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 if there 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 GAAS 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.
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, pension schedules, and budgetary comparison information, as listed within the table of
contents, 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.
2
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 combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements and schedules 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 and statistical sections but does not include the financial statements and our
auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we
do not express an opinion or any form of assurance thereon. In connection with our audit of the financial
statements, our responsibility is to read the other information and consider whether a material inconsistency
exists between the other information and the 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 Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2022 on
our consideration of the District's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is 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 internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the District's internal control over financial reporting and
compliance.
Scottsdale, Arizona
December 28, 2022
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REQUIRED SUPPLEMENTARY INFORMATION
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
As management of the Globe Unified School District No. 1 (District), we offer the readers of the District's
financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year
ended June 30, 2022.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows
of resources at the close of the most recent fiscal year by $18,424,913 (net position). The District's total
net position increased by $425,875.
• As of the close of the current fiscal year, the District's governmental funds reported combined ending
fund balances of $13,343,113, an increase of $425,875 in comparison with the prioryear.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $9,124,645, or
68% of total General Fund expenditures.
• The District's net capital assets decreased $315,308 as a result of depreciation expense for the current
year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the District's basic financial statements.
The District's basic financial statements are comprised of three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The government -wide financial statements are designed to provide readers with a broad overview of the
District's finances in a manner similar to a private sector business.
The statement of net position presents information on all the District's assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the District is
improving or deteriorating.
The statement of activities presents information showing how the District's net position changed during the
most recent fiscal year. All changes to 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).
The government -wide financial statements distinguish functions of the District that are principally supported by
property taxes and intergovernmental revenues (governmental activities). The governmental activities of the
District are for public education.
The government -wide financial statements can be found immediately following this MD&A.
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GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The District, 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 District are classified as governmental funds.
Governmental Funds — Governmental funds are used to account for essentially the same functions 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 the 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 funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near -term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The District maintains ten 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 Projects Fund, and Classroom Site Fund, all of which are
considered to be major funds. Data from the other seven governmental funds are combined into a single
aggregated presentation.
An operating budget for expenditures is prepared and adopted by the District each fiscal year for the General,
Special Revenue, Debt Service, and Capital Projects Funds, with the exceptions of the Building Renewal Grant
Fund, Adjacent Ways Fund, and Debt Service Fund, which were not budgeted. Budgetary control is ultimately
exercised at the fund level. Budgetary control is maintained through the use of periodic reports that compare
actual expenditures against budgeted amounts. The expenditure budget can be revised annually, per Arizona
Revised Statutes. The District also maintains an encumbrance accounting system as one technique of
maintaining budgetary control. Encumbered amounts lapse at year-end. An annual budget of revenue from all
sources is not prepared.
As demonstrated by the statements and schedules included in the financial section of this report, the District
continues to meet its responsibility for sound financial management.
The basic governmental fund financial statements can be found on pages 13 — 16 of this report.
Notes to Basic Financial Statements
The notes to basic financial statements 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 basic financial statements
can be found on pages 17 — 33 of this report.
5
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
Required Supplementary Information Other than MD&A
The District reports a multi -year schedule of the District's proportionate share of net pension liability and
contributions to its cost -sharing pension plan on page 34.
Governments have the option of reporting the General Fund and major special revenue budgetary statements as
part of the basic financial statements or as required supplementary information (RSI) other than the MD&A. The
District has elected to present the General Fund, Classroom Site Fund, and Special Projects Fund budgetary
comparison schedules as RSI other than the MD&A which can be found starting on page 37 of this report. Notes
to the RSI follows the budgetary comparison schedules.
Other information
The combining statements in connection with nonmajor governmental funds are presented immediately
following the required supplementary information other than the MD&A. Combining and individual fund
statements and schedules can be found on pages 39 — 45 of this report.
The statistical section includes selected financial and demographic information, generally presented on a multi-
year basis. The statistical section can be found on pages 46 — 66 of this report.
Government -Wide Financial Analysis
As noted earlier, net position may serve over time as useful indicators of a government's financial position. In the
case of the District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of
resources by $18,424,913 at the close of the most recent fiscal year.
A summary of the District's statement of net position is presented below:
ASSETS AND DEFERRED OUTFLOWS
Current and other assets
Capital assets
Total Assets
Deferred outflows
Total Assets and Deferred Outflows
LIABILITIES AND DEFERRED INFLOWS
Current liabilities
Long-term liabilities
Total Liabilities
Deferred inflows
Total Liabilities and Deferred Inflows
NET POSITION
Investment in capital assets
Restricted
Unrestricted
Total Net Position
Governmental Activities
2022
2021
Net Change
$ 14,712,667 $
13,512,732
$ 1,199,935
14,819,776
15,135,084
(315,308)
29,532,443
28,647,816
884,627
2,353,858
2,153,820
200,038
31,886,301
30,801,636
1,084,665
761,556
370,768
390,788
9,491,529
12,231,434
(2,739,905)
10,253,085
12,602,202
(2,349,117)
3,208,303
200,396
3,007,907
13,461,388
12,802,598
658,790
14,819,776
15,135,084
(315,308)
4,218,468
3,573,763
644,705
(613,331)
(709,809)
96,478
$ 18,424,913 $
17,999,038
$ 425,875
0
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
By far the largest portion of the District's net position reflects its investment in capital assets (e.g., land,
buildings, improvements, vehicles, equipment and furniture), less any related debt used to acquire those assets
that are still outstanding. The District uses these capital assets to provide services to students; consequently,
these assets are not available for future spending. Although the 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. An additional
portion of the District's net position represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position may be used to meet the District's ongoing
obligations to citizens and creditors.
At the end of the current fiscal year, the District was able to report positive balances in the investment in capital
assets and restricted net position. The District reported a negative balance in unrestricted net position due to the
District's reporting of its proportionate share of the net pension liability for its cost -sharing pension plan
required under Governmental Accounting Standards Board (GASB) Statement No. 68. Additional information on
the District's net pension liability can be found in Note 11 of this report.
Overall, net position increased $425,875 or 2%. Key elements of this increase are indicated as follows:
REVENUES
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
State equalization and additional state aid
Federal aid unrestricted
County equalization
Interest and other
Total Revenues
EXPENSES
Instruction
Support Services:
Students and instructional staff
General and school administration
Business and other support services
Operation and maintenance of plant
Operation of noninstructional services
Student transportation
Total Expenses
Change in net position
Net Position - Beginning
Net Position - Ending
Governmental Activities
2022 2021 Net Change
$ 236,003 $ 196,007 $ 39,996
5,366,196 4,627,625 738,571
259,160 849,277 (590,117)
$
2,049,507
8,028,898
1,346,942
616,200
126,229
18,029,135
9,750,941
1,317,291
1,246,234
1,129, 875
2,616,419
165,348
1,377,152
17,603,260
425,875
17,999,038
18,424,913
$
1,815,907
7,468,881
1,445,402
672,163
238,607
17,313,869
9,370,323
1,152,803
1,186,836
911,079
2,656,906
206,247
1,167,445
16,651,639
662,230
17,336,808
17,999,038
$
233,600
560,017
(98,460)
(55,963)
(112,378)
715,266
380,618
164,488
59,398
218,796
(40,487)
(40, 899)
209,707
951,621
(236,355)
662,230
425,875
7
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
The District reported an increase in charges for services of $39,996 (20%). This increase was mainly due to
increases in food service sales and auxiliary operations revenue due to the lifting of COVID-19 related
restrictions.
Capital grants and contributions decreased $590,117 (69%) due to decreases in School Facilities Board (SFB)
funding for the cooling towers and water pipe projects that were completed in the previous year.
Operating grants and contributions increased $738,571 (16%). This increase was mainly due to the Elementary
and Secondary School Emergency Relief funding received in the current year due to the COVID-19 pandemic.
The District experienced an increase in property tax revenue as a result of increased assessed values and tax
rates.
State and county equalization and additional state aid increased $504,054 (6%) due to increases in enrollment
and the state funding formula.
The changes in federal aid unrestricted and interest and other were not considered significant.
The District incurred a 6% increase in expenses in the current year. The District's mission is to provide an
appropriate and outstanding educational experience for every student served within budget constraints. The
increase was mainly due to increases in salaries and related benefits, textbooks, fuel, vehicle expenses, tuition,
technology purchases, and other professional services received.
FINANCIAL ANALYSIS OF THE GOVERNMENT FUNDS
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental Funds — The focus of the District's governmental funds is to provide information on near- term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District's governmental funds reported combined ending fund
balances of $13,343,113, an increase of $532,691 in comparison with the prior year. Approximately 68% of this
total amount ($9,124,645) constitutes unassigned fund balance, which is available for spending at the
government's discretion. The remaining fund balance is restricted to indicate that it is not available for new
spending.
0
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
Fund balances as of June 30, 2022, and the changes in fund balances from prior year are summarized below:
Increase
(Decrease)
Balance
From 2020-21
GOVERNMENTAL FUND
General Fund
$ 9,124,645
$ (239,685)
Classroom Site Fund
1,708,092
612,426
Special Projects Fund
71,960
(5,369)
Nonmajor Governmental Funds
2,438,416
165,319
The General Fund had a decrease in fund balance of $239,685. This decrease was due to an increase in spending
during the current year. The District had increases to salaries and related benefits, capital outlay spending,
supplies, fuel, textbooks, and professional services.
The increase of $612,426 in the Classroom Site Fund was due to an increase in funding received from the State
of Arizona.
The decrease of $5,369 in the Special Projects Fund was not considered significant.
The increase of $165,319 in the Nonmajor Governmental Funds was due an increase in food service funding and
community receipt activity. In addition, expenditures for capital outlay decreased.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget totaled $405,254. In Arizona, school
districts build their original "adopted" budget based on a projection of the coming fiscal year's 100th day
average daily attendance. In May, the District is allowed to increase or decrease its budget for differences
between expected and actual student growth. The $405,254 reduction to the budget was allocated among
various line items, primarily in regular education — instruction, special education — instruction, and operations
and maintenance of plant. Budgetary basis General Fund expenditures were $699,723 less than budget during
the fiscal year. Budgetary basis expenditures were within 7% of budget.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The District's investment in capital assets for its governmental activities as of June 30, 2022, amounts to
$14,819,776 (net of accumulated depreciation). This investment in capital assets includes land, construction in
progress, land improvements, buildings and improvements, vehicles, furniture, and equipment. The net decrease
in the District's investment in capital assets for the current fiscal year was 2%.
Major capital asset events during the current fiscal year included the following projects:
• Roofing projects
Bathroom renovations
• HVAC improvements
1 school bus
• New camera system
9
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
MANAGEMENT'S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2022
Additional information on the District's capital assets can be found in Note 6 of this report.
Capital asset activity as of June 30, 2022 is summarized below:
Governmental Activities
2022
2021
Net Change
CAPITAL ASSETS
Land
$ 1,029,807 $
1,029,807
$ -
Construction in progress
318,479
81,988
236,491
Land improvements
2,531,977
2,632,201
(100,224)
Buildings & improvements
9,580,358
10,039,623
(459,265)
Vehicles, equipment, and furniture
1,359,155
1,351,465
7,690
Total Capital Assets
$ 14,819,776 $
15,135,084
$ (315,308)
Long -Term Debt
At end of the current fiscal year, the District's debt was limited to compensated absences and the net pension
liability. Compensated absences increased $82,956 during the current year due to increases in pay rates and the
accumulation of hours by District personnel. The net pension liability decreased $2,836,896 due to various
factors as explained in Note 11 of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• Effects of the COVID-19 pandemic on student membership.
• Planning for the new online academy program.
• Fluctuating population and tax rates due to COVID.
• Investments in technology and online tools for students displaced due to COVID.
The above factors were considered in preparing the District's budget for the 2022-23 fiscal year.
REQUEST FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general
overview of the District's finances and to demonstrate the District's accountability for the resources it receives. If
you have questions about this report or need additional information, contact the Business and Finance
Department, Globe Unified School District No. 1, 460 North Willow Street, Globe, Arizona 85501. Additional
information can be found on the District's website at: alobeschools.ora
10
BASIC FINANCIAL STATEMENTS
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Activities
ASSETS
Cash and cash equivalents
$ 12,002,783
Property taxes receivable
69,806
Intergovernmental receivable
2,059,393
Deposits
32,039
Prepaid rent
220,170
Net OPEB asset
328,476
Capital assets, not depreciated
1,348,286
Capital assets, net of accumulated depreciation
13,471,490
Total Assets
29,532,443
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 2,296,627
Deferred outflows related to OPEB 57,231
Total Deferred Outflows of Resources 2,353,858
LIABILITIES
Accounts payable
520,484
Accrued wages and benefits
241,072
Long-term liabilities:
Due within one year
232,726
Due in more than one year
206,067
Net OPEB liability
14,035
Net pension liability
9,038,701
Total Liabilities
10,253,085
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 2,929,270
Deferred inflows related to OPEB 279,033
Total Deferred Inflows of Resources 3,208,303
NET POSITION
Investment in capital assets
14,819,776
Restricted:
Teacher compensation and other qualified programs (A.R.S. 15-977)
1,708,092
Instructional improvement programs
577,817
Federal and state instructional programs
71,960
Food service
580,316
Community programs
848,466
Vocational educational programs
255,307
Extracurricular activities
85,416
Capital projects
9,187
Student activities
81,907
Unrestricted
(613,331)
Total Net Position
$ 18,424,913
See accompanying Notes to the Basic Financial Statements
11
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net (Expense)
Revenue and Changes
Program Revenues
in Net Position
Charges for
Operating Grants
Capital Grants
Governmental
Function/Programs
Expenses
Services
and Contributions
and Contributions
Activities
Primary Government:
Governmental Activities:
Instruction
$ 9,750,941 $
112,905
4,474,355 $
-
$ (5,163,681)
Support services:
Students
739,869
-
70,965
-
(668,904)
Instructional staff
577,422
-
178,284
-
(399,138)
General administration
431,111
-
6,664
-
(424,447)
School administration
815,123
-
20,142
-
(794,981)
Business and other support services
1,129,875
-
13,627
-
(1,116,248)
Operation and maintenance of plant
2,616,419
-
251,703
259,160
(2,105,556)
Student transportation
1,377,152
-
86,629
-
(1,290,523)
Operation of noninstructional services
165,348
123,098
263,827
-
221,577
Total
$ 17,603,260 $
236,003
$ 5,366,196 $
259,160
(11,741,901)
General revenues:
Property taxes
2,049,507
Grants and contributions not restricted to specific programs:
State equalization and additional state aid
8,028,898
County equalization
616,200
Federal aid not restricted
1,346,942
Investment earnings
70,585
Other
55,644
Total general revenues
12,167,776
Change in net position
425,875
Net position - beginning
17,999,038
Net position - ending
$ 18,424,913
See accompanying Notes to the Basic Financial Statements
12
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Non -Major
Total
Classroom Site
Special Projects
Governmental
Governmental
General Fund
Fund
Fund
Funds
Funds
ASSETS
Cash and investments
$ 8,211,212
$ 1,595,323
$ -
$ 2,196,248
$ 12,002,783
Receivables:
Property taxes
69,806
-
-
-
69,806
Intergovernmental
879,250
113,420
790,913
275,810
2,059,393
Deposits
-
-
-
32,039
32,039
Due from other funds
538,426
-
-
-
538,426
Total Assets
$ 9,698,694
$ 1,708,743
$ 790,913
$ 2,504,097
$ 14,702,447
LIABILITIES
Accounts payable $
345,246 $
Accrued wages
169,451
Due to other funds
-
Total Liabilities
514,697
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
59,352
FUND BALANCES
Restricted
-
Unassigned
9,124,645
Total Fund Balances
9,124,645
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $
9,698,694 $
See accompanying Notes to the Basic Financial Statements
- $ 134,997 $ 40,241 $ 520,484
651 45,530 25,440 241,072
- 538,426 - 538,426
651 718,953 65,681 1,299,982
- - 59,352
1,708,092 71,960 2,438,416 4,218,468
- - - 9,124,645
1,708,092 71,960 2,438,416 13,343,113
1,708,743 $ 790,913 $ 2,504,097 $ 14,702,447
13
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Total Fund Balance - Governmental Funds $ 13,343,113
Amounts reported for assets and liabilities for governmental activities in the
statement of net position are different from amounts reported in governmental
funds because:
Capital assets:
In governmental funds, only current assets are reported. In the statement of
net position, all assets are reported, including capital assets and
accumulated depreciation:
Capital assets 41,971,067
Accumulated depreciation (27,151,291) 14,819,776
Property tax revenue not collected within 60 days subsequent to fiscal year end
are reported as deferred inflows of resources in the governmental funds:
Net OPEB asset:
In governmental funds, postretirement benefits costs are recognized as
expenditures in the period they are paid. In the government -wide
statements, they are recognized in the period they are incurred. The net
OPEB asset at the end of the period was:
Long-term liabilities:
In governmental funds, only current liabilities are reported. In the statement
of net position, all liabilities, including long-term liabilities, are reported.
Long-term liabilities relating to governmental activities consist of:
Net pension liability (9,038,701)
Net OPEB liability (14,035)
Compensated absences (438,793)
Other long-term assets are not available to pay for current period
expenditures and are not susceptible to accrual in the governmental funds.
Deferred outflows and inflows of resources relating to pension/OPEB:
In governmental funds, deferred outflows and inflows of resources relating
to pension/OPEB are not reported because they are applicable to future
periods. In the statement of net position, deferred outflows and inflows of
resources relating to pension/OPEB are reported:
Deferred outflows of resources relating to pensions: 2,296,627
Deferred inflows of resources relating to pensions: (2,929,270)
Deferred outflows of resources relating to OPEB: 57,231
Deferred inflows of resources relating to OPEB: (279,033)
Total Net Position - Governmental Activities
59,352
328,476
(9,491,529)
220,170
(854,445)
$ 18,424,913
See accompanying Notes to the Basic Financial Statements
14
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
REVENUES
Property taxes
Intergovernmental
Tuition
Food services sales
Auxiliary operations
Student activities
Contributions and donations
Investment earnings
Other
Total Revenues
EXPENDITURES
Current
Instruction
Support services:
Students
Instructional staff
General administration
School administration
Business and other support services
Operations and maintenance of plant
Student transportation
Operations of noninstructional services
Capital outlay:
Facilities acquisition
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Net Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning
Fund Balance - Ending
Non -Major
Total
Classroom Site
Special Projects
Governmental
Governmental
General Fund
Fund
Fund
Funds
Funds
$ 2,087,061
$ -
$ -
$ 52
$ 2,087,113
10,175,196
1,361,036
2,303,223
1,672,700
15,512,155
-
-
-
112,905
112,905
-
-
51,855
51,855
71,243
-
-
71,243
-
-
59,188
59,188
22,043
-
-
24,010
46,053
45,193
7,718
2,589
15,085
70,585
32,142
-
-
23,502
55,644
12,432,878
1,368,754
2,305,812
1,959,297
18,066,741
5,911,561
685,821
402,641
337,546
823,211
1,136,575
2,110,757
1,294,645
26,492
208,101
12,937,350
(504,472)
264,787
264,787
(239,685)
9,364,330
9,124,645 $
750,741
4,081
1,506
756,328
612,426
612,426
1,095,666
1,708,092 $
1,648,522
55,838
151,994
2,714
13,565
12,649
237,406
59,985
2,182,673
123,139
(128,508)
(128,508)
(5,369)
77,329
71,960 $
1,189,775
8,532
27,574
6,900
4,965
238
55,704
21,991
174,350
167,670
1,657,699
301,598
(136,279)
(136,279)
165,319
2,273,097
2,438,416 $
9,500,599
754,272
583,715
347,160
841,741
1,149,462
2,403, 867
1,376,621
200,842
375,771
17, 534, 050
532,691
264,787
(264,787)
532,691
12,810,422
13, 343,113
See accompanying Notes to the Basic Financial Statements
15
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net Change in Fund Balances - Governmental Funds $ 532,691
Amounts reported for governmental activities in the statement of activities are different from
amounts reported in governmental funds because:
In governmental funds, the costs of capital assets are reported as expenditures in the
period when the assets are acquired. In the statement of activities, costs of capital assets
are allocated over their estimated useful lives as depreciation expense.
Expenditures for capital outlay: $ 667,224
Depreciation expense: (982,532) (315,308)
Some revenues reported in the governmental funds that did not provide current financial
resources in prior years have been recognized previously in the statement of activities and
therefore are not reported as revenues in the statement of activities.
Property taxes (37,606)
Governmental funds report pension contributions as expenditures when made. However, in
the statement of activities, pension expense is the cost of benefits earned, adjusted for
member contributions, the recognition of changes in deferred outflows and inflows of
resources related to pensions.
Pension contributions
957,731
Pension expense
(706,902)
Other post employment benefits contributions
31,466
Other post employment benefits expense
61,173
Some expenses reported in the statement of activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental
funds.
Net decrease(increase) in compensated absences (82,956)
Amortization of prepaid rent (14,414)
Change in Net Position of Governmental Activities $ 425,875
See accompanying Notes to the Basic Financial Statements
16
NOTES TO BASIC FINANCIAL STATEMENTS
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the Globe Unified School District No. 1 (District) have been
prepared in conformity with accounting principles generally accepted in the United States of America
applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). A
summary of the District's more significant accounting policies follows.
Reporting Entity
The District is a special-purpose government that a separately elected governing body governs. It is legally
separate from and fiscally independent of other state and local governments. Furthermore, there are no
component units combined with the District for financial statement presentation purposes, and it is not
included in any other governmental reporting entity. Consequently, the District's financial statements present
only the funds of those organizational entities for which its elected governing board is financially accountable.
Government -Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government. The effect of interfund
activity has been removed from these statements. Governmental activities, which are normally 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 had no business -type activities during the fiscal
year.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds. Major individual governmental funds are
reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, 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 imposed by the provider have been met.
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.
17
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Revenues are considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting, except expenditures related to compensated
absences and claims and judgments, which are recorded only when payment is due. However, since debt
service resources are provided during the current year for payment of long-term principal and interest due
early in the following year (within one month), the expenditures and related liabilities have been recognized in
the Debt Service Fund.
Property taxes, intergovernmental grants and aid, tuition, 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. All other revenue items are considered to be measurable and available only when cash is received by
the government.
The District reports the following major governmental funds:
Major Governmental Funds
The General Fund is the District's primary operating fund. It accounts for all resources used to finance District
maintenance and operation except those required to be accounted for in other funds. For budget purposes, it
is described as the Maintenance and Operation Fund by Arizona Revised Statutes (A.R.S.) and is budgeted
within four subsections titled regular education programs, special education programs, pupil transportation,
and K-3 reading program.
The Special Projects Fund accounts for the revenues and expenditures of state and federally funded projects.
The Classroom Site Fund accounts for the revenues and expenditures of State apportioned educational sales tax
monies.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements.
Amounts reported as program revenues include 1) charges for services, 2) operating grants and contributions,
and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
When both restricted and unrestricted resources are available for use for governmental activities, it is the
District's policy to use restricted resources first, then unrestricted resources as they are needed.
18
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Deferred Outflows of resources, Liabilities, Deferred Inflows of Resources and Net Position or
Equity
Deposits and Investments
Arizona Revised Statutes (A.R.S.) requires the District to deposit certain cash with the County Treasurer. That
cash is pooled for investment purposes, except for cash in the Debt Service and Bond Building Funds, which
are invested separately. As required by statute, interest earned by the Bond Building Fund is recorded in the
Debt Service Fund. A.R.S. authorize the District to invest public monies in the State and County Treasurer's
investment pools; U.S. Treasury obligations; specified state and local government bonds; and interest -earning
investment contracts such as savings accounts, certificates of deposit, and repurchase agreements in eligible
depositories.
Statute authorizes the District to deposit monies of Auxiliary Operations and Student Activities in bank
accounts. Monies in these funds may also be invested. In addition, statute authorizes the District to maintain
various bank accounts such as clearing accounts to temporarily deposit receipts before they are transmitted to
the County Treasurer; revolving accounts to pay minor disbursements; and withholding accounts for taxes,
employee insurance programs, and federal savings bonds. Some of these bank accounts may be interest
bearing.
Statute does not include any requirements for credit risk, concentration of credit risk, interest rate risk, or
foreign currency risk. Statute requires collateral for deposits of monies at 102% of all deposits not covered by
federal depository insurance.
The State Board of Investments provides oversight for the State Treasurer's pools, and the Local Government
Investment Pool Advisory Committee provides consultation and advice to the Treasurer. The fair value of a
participant's position in the pool approximates the value of that participant's pool shares. No comparable
oversight is provided for the County Treasurer's investment pool, and that pool's structure does not provide
for shares.
Property Taxes Receivables
The Gila County Treasurer is responsible for collecting property taxes for all governmental entities within the
County. The County levies real and personal property taxes on or before the third Monday in August that
become due and payable in two equal installments. The first installment is due on the first day of October and
becomes delinquent after the first business day of November. The second installment is due on the first day of
March of the next year and becomes delinquent after the first business day of May. A lien assessed against real
and personal property attaches on the first day of January preceding assessment and levy.
The District does not report a reserve for uncollectible property taxes as they are considered 100% collectible
due to the County attaching a lien against all amounts past due as noted above.
Intergovernmental Receivable
Intergovernmental receivables are comprised of state and federal grants ($1,075,817), School Facilities Board
grants ($13,754), state equalization ($813,654), Classroom Site funding ($113,420), Instructional improvement
funding ($15,898), and CTED funding ($26,850).
19
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Deferred Outflows of Resources, liabilities, Deferred Inflows of Resources and Net Position or
Equity (Continued)
Short -Term Interfund Receivables and Payables
During the course of operations, individual funds within the District's pooled cash accounts may borrow money
from other funds within the pool on a short-term basis. These receivables and payables are classified as "due
from other funds" or "due to other funds" on the balance sheet of the fund financial statements and are
eliminated in the preparation of the government -wide financial statements.
Deposits
Deposits in the amount of $32,039 represents cash deposits with Mohave Educational Services in the food
service cooperative.
Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items in both the government -wide and fund financial statements. The costs of prepaid items are accounted for
using the consumption method (expensed when consumed).
Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the governmental activities
column in the government -wide financial statements. Capital assets are defined by the District as assets with
an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year.
Property, plant and equipment purchased or acquired is carried at historical cost or estimated historical cost.
Contributed assets are recorded at acquisition value. Additions, improvements and other capital outlays that
significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance
are expensed as incurred.
Depreciation on all assets is provided on a straight-line basis over the following estimated useful lives:
Asset Class Years
Land improvements 10-50 years
Building and improvements 5-50 years
Vehicles, equipment, furniture 1-20 years
Deferred Outflows of Resources
The District recognizes the liquidation of net position that is applicable to a future reporting period in the
government -wide financial statements as deferred outflows of resources. Reported amounts are related to the
requirements of accounting and financial reporting for pensions under GASB 68.
20
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Deferred Outflows of Resources, liabilities, Deferred Inflows of Resources and Net Position or
Equity (Continued)
Compensated Absences
The liability for compensated absences reported in the government -wide financial statements consists of
unpaid, accumulated leave balances. The liability has been calculated using the vesting method, in which leave
amounts for both employees who currently are eligible to receive termination payments and other employees
who are expected to become eligible in the future to receive such payments upon termination are included.
Pension Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the Arizona
State Retirement System (ASRS) and additions to/deductions from ASRS's fiduciary net position have been
determined on the same basis as they are reported by ASRS. 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.
Deferred Inflows of Resources
The deferred inflows of resources reported in the governmental fund financial statements represent resources
that are not available to the District as of June 30, 2022 or within 60 days of fiscal year-end. These deferred
inflows of resources represent a reconciling item between the governmental fund financial statements and the
government -wide financial statements.
The District also recognizes the acquisition of net position that is applicable to a future reporting period as
deferred inflows of resources. Reported amounts are related to the requirements of accounting and financial
reporting for pensions under GASB 68.
Net Position
In the government -wide financial statements, net position is reported in three categories: investment in capital
assets; restricted net position; and unrestricted net position. The investment in capital assets is separately
reported because the District's capital assets make up a significant portion of total net position. Restricted net
position account for the portion of net position restricted by parties outside the District. Unrestricted net
position is the remaining net position not included in the previous two categories.
Fund Balances
Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of
the constraints placed on the use of those resources. The classifications are based on the relative strength of
the constraints that control how the specific amounts can be spent. The classifications are nonspendable,
restricted, committed, assigned, and unassigned fund balance classifications.
The nonspendable fund balance classification includes amounts that cannot be spent because they are either
not in spendable form such as inventories or are legally or contractually required to be maintained intact.
21
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Deferred Outflows of Resources, liabilities, Deferred Inflows of Resources and Net Position or
Equity (Continued)
Fund Balances (Continued)
Restricted fund balances are those that have externally imposed restrictions on their usage by creditors (such
as through debt covenants), grantors, contributors, or laws and regulations. The committed fund balances are
self-imposed limitations approved by the District's Governing Board, which is the highest level of decision -
making authority within the District. Only the District Governing Board can remove or change the constraints
placed on committed fund balances through formal board action at a public meeting. Fund balances must be
committed prior to fiscal year-end. Assigned fund balances are resources constrained by the District's intent to
be used for specific purposes but are neither restricted nor committed. The District's Governing Board has not
authorized any management officials to make assignments of resources for a specific purpose.
The unassigned fund balance is the residual classification for the General Fund and includes all spendable
amounts not reported in the other classifications. Also, deficits in fund balances of the other governmental
funds are reported as unassigned.
The District has not adopted a spending priority policy. When an expenditure is incurred that can be paid from
either restricted or unrestricted fund balances, in accordance with GASB 54, the District uses restricted fund
balance first. For the disbursement of unrestricted fund balances, the District follows the spending policy
described in GASB 54 to use committed amounts first, followed by assigned amounts, and lastly unassigned
amounts.
The District has classified its fund balances as follows:
Restricted
Teacher compensation and other qualified
programs (A.R.S. 15-977)
Instructional improvement programs
Federal and state instructional programs
Food service
Community programs
Vocational educational programs
Extracurricular activities
Capital projects
Student activities
Total restricted
Unassigned
Total
Non -Major
Total
Classroom Site
Special Projects
Governmental
Governmental
General Fund Fund
Fund
Funds
Activities
$ $ 1,708,092
$ -
$ -
$ 1,708,092
-
-
577,817
577,817
-
71,960
-
71,960
-
-
580,316
580,316
-
-
848,466
848,466
-
-
255,307
255,307
-
-
85,416
85,416
-
-
9,187
9,187
-
-
81,907
81,907
1,708,092
71,960
2,438,416
4,218,468
9,124,645 -
-
-
9,124,645
$ 9,124,645 $ 1,708,092
$ 71,960
$ 2,438,416
$ 13,343,113
22
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
The District adopts an annual operating budget for expenditures for all governmental fund types on essentially
the same modified accrual basis of accounting used to record actual expenditures (See Notes to Required
Supplementary Information for exceptions). The Governing Board presents a proposed budget to the
Superintendent of Public Instruction and County School Superintendent on or by July 5. The Governing Board
legally adopts the final budget by July 15, after a public hearing has been held. Once adopted the budget can be
increased or decreased only for specific reasons set forth in the A.R.S. All appropriations lapse at year-end.
Budgetary control over expenditures is exercised at the fund level. However, the General Fund is budgeted
within four subsections (see preceding description of General Fund), any of which may be over -expended with
the prior approval of the Governing Board at a public meeting, providing the expenditures for all subsections do
not exceed the General Fund's total budget.
An annual budget was not completed for the Adjacent Ways, Building Renewal Grant, or Debt Service Funds
during the current fiscal year.
In addition, an annual budget of revenue from all sources for the fiscal year is not prepared.
The following funds exceeded the final revised budget:
Expenditures and Other Uses
Budget Actual Excess
Food Service Fund $ 650,000 $ 1,016,583 $ 366,583
Other funds had budget capacity to make up for the Food Service fund excess.
23
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 — DEPOSITS AND INVESTMENTS
Deposits and investments at June 30, 2022 consist of the following:
Deposits
Cash in bank $ 393,619
Investments:
Cash on deposit with county treasurer 11,609,164
Total cash and cash equivalents $ 12,002,783
Deposits
Custodial Credit Risk — This is the risk that, in the event of a failure by a counterparty, the District will not be
able to recover its deposits or collateralized securities that are in the possession of an outside party. The
District had a carrying value of $393,619 for cash on deposit with a local financial institution and a bank
balance of $418,076 at June 30, 2022. The District does not have a formal policy regarding custodial credit risk.
However, of the bank balance, $250,000 was insured by federal depository insurance and $168,076 was
collateralized by the State of Arizona Pooled Collateral Program.
Investments
At June 30, 2022, the District's investments were reported at fair value. The District's investments consisted of
only cash on deposit with the CountyTreasurer.
Custodial Credit Risk — The District's investment in the County Treasurer's investment pools represents a
proportionate interest in those pools' portfolios; however, the District's portion is not identified with any
specific investment and is not subject to custodial credit risk.
Interest Rate Risk — The District does not have a formal investment policy regarding interest rate risk; however,
the District manages its exposure to declines in fair values by limiting the average maturity of its investment
portfolio to one year or less.
Credit Risk — The District does not have a formal investment policy regarding credit risk. However, the District
is prohibited by state law from investing in investments other than State and County Treasurer's investment
pools, U.S. Treasury obligations, specified state and local government bonds and interest -earning investment
contracts such as savings accounts, certificates of deposit, and repurchase agreements. The District's
investment in the County Treasurer's investment pool did not receive a credit quality rating from a national
rating agency.
24
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4 — RECEIVABLES
Property taxes are recognized as revenues in the fiscal year they are levied in the government -wide financial
statements and represent a reconciling item between the government -wide and fund financial statements. In
the fund financial statements property taxes are recognized as revenues in the fiscal year they are levied and
collected or if they are collected within 60 days subsequent to fiscal year-end. Property taxes not collected
within 60 days subsequent to fiscal year-end or collected in advance of the fiscal year for which they are levied
are reported as deferred inflows of resources.
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are
not considered to be available to liquidate liabilities of the current period. Governmental funds also record
unearned revenue in connection with resources that have been received, but not yet earned.
At the end of the current fiscal year, the various components of deferred inflows of resources reported in the
governmental funds were as follows:
Unavailable
Delinquent property taxes receivable:
General Fund $ 59,352
NOTE 5 — PREPAID RENT
The District leases land for a school site under the provisions of a long-term lease agreement classified as an
operating lease. The operating lease has a remaining non -cancelable lease term of 58 years and provides
renewal options. In fiscal year 2007-08, the District prepaid rent for the remaining term of the lease for $464,034.
As allowed by the agreement, the prepaid rent was calculated by discounting to present value the base rent
payments using a discount rate of 7.08%. The total lease payments, if paid yearly beginning in fiscal year 2007-
08, would have totaled $3,510,874. The prepaid rent of $464,034 is being amortized over the life of the 70 years
that remained when the rental payments were prepaid. The amortization amounts are based on the present
value calculated for each year's payment. The annual amortization of prepaid rent is recognized on the
Statement of Activities and the balance of the prepaid rent is recognized on the Statement of Net Position.
Amount
Prepaid rent $ 464,034
Accumulated amortization (243,864)
Balance at June 30, 2022 $ 220,170
25
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:
Balance
Balance
July 01, 2021
Additions
Deductions
June 30, 2022
Capital assets not being depreciated
Land
$ 1,029,807 $
-
$ -
$ 1,029,807
Construction in progress
81,988
236,491
-
318,479
Total capital assets not being depreciated
1,111,795
236,491
-
1,348,286
Capital assets being depreciated
Land improvements
5,497,988
90,662
-
5,588,650
Buildings and improvements
30,461,400
95,134
-
30,556,534
Vehicles, equipment, and furniture
4,350,621
244,937
(117,961)
4,477,597
Total capital assets being depreciated
40,310,009
430,733
(117,961)
40,622,781
Less accumulated depreciation
Land improvements
(2,865,787)
(190,886)
-
(3,056,673)
Buildings and improvements
(20,421,777)
(554,399)
-
(20,976,176)
Vehicles, equipment, and furniture
(2,999,156)
(237,247)
117,961
(3,118,442)
Total accumulated depreciation
(26,286,720)
(982,532)
117,961
(27,151,291)
Total capital assets, being depreciated, net
14,023,289
(551,799)
-
13,471,490
Governmental activities capital assets, net
$ 15,135,084 $
(315,308)
$ -
$ 14,819,776
Depreciation expenses was charged to governmental functions as follows:
Governmental Activities:
Instruction
$ 446,915
Support Services:
Instructional Staff
3,043
General Administration
9,043
Operations and Maintenance of Plant
288,436
Student Transportation
198,464
Operation of Noninstructional Services
36,631
$ 982,532
26
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 — CAPITAL ASSETS (CONTINUED)
As of June 30, 2022, the District reported the following construction commitments:
Project
Copper Rim HVAC
Copper Rim Drainage
High School Auditorium Floor
MAC HVAC
MAC Roof
Camera System
Copper Rim Bathrooms
Copper Rim Gym Floor
High School 2nd Floor
High School Roof
Total
Governmental activities
Estimated
Spent -to -date
remaining
$ 81,455
$ 1,918,545
49,950
950,050
6,000
494,000
37,002
2,362,998
59,132
640,868
46,440
37,010
9,650
500,000
16,580
700,000
8,000
192,000
4,270
195,730
$ 318,479
$ 7,991,201
NOTE 7 — INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
As of June 30, 2022, interfund receivables and payables were as follows:
Due to other funds
Special Projects Fund
Due from other
funds
General Fund
$ 538,426
The above interfund receivable and payable are due to cash shortfalls at June 30, 2022. Cash will be received
subsequent to June 30, 2022 to repay the short-term borrowing in the Special Projects Fund and Building
Renewal Grant Fund.
Interfund transfers for the year ended June 30, 2022 consisted of the following:
Transfer from
Nonmajor
Special Projects Governmental
Transfer to Fund Funds Total
General fund $ 264,787 $ 136,279 $ 401,066
Transfers of $264,787 and $136,279 were made to record indirect costs transferred to the indirect cost pool for
various federal grants.
27
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 — LONG-TERM OBLIGATIONS
Compensated Absences
Compensated absences are paid from various funds in the same proportion that those funds pay payroll costs.
During fiscal year ended June 30, 2022, the District paid for compensated absences from the General Fund.
Changes in long-term liabilities for the year ended June 30, 2022 are as follows:
Balance Balance Due Within
July 01, 2021 Additions Deductions June 30, 2022 One Year
Compensated absences $ 355,837 $ 197,456 $ (114,500) $ 438,793 $ 232,726
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 is a member of the Arizona School
Risk Retention Trust, Inc (ASRRT), together with other school districts in the state. ASRRT is a public entity risk
pool currently operating as a common risk management and insurance program for member school districts.
The District pays an annual premium to ASRRT for its general insurance coverage. The agreement provides that
ASRRT will be self-sustaining through member premiums and will reinsure through commercial companies for
claims in excess of specified amounts.
For employee health insurance, the District is a member of the Schools Medical Insurance Trust (SMIT), together
with other school districts.
The District carries commercial insurance for workers' compensation.
For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts
have not exceeded insurance coverage for the current year or the three prior fiscal years.
NOTE 10 — CONTINGENT LIABILITIES
Federal grants - In the normal course of operations, the District receives grant funds from various federal
agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to
ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement which
may arise as the result of audits of grant funds is not believed by District officials to be material.
Litigation - Each year the District receives notices of claims for damages occurring generally from negligence,
bodily injury, breach of contract, and other legal matters. The filing of such claims commences a statutory period
for initiating a lawsuit against the District arising therefrom. The District has comprehensive general liability
insurance with the ASRRT. The District is not aware of any litigation that might result in a materially adverse
outcome.
28
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 — PENSION PLANS
Cost Sharing Pension Plan
At June 30, 2022, the District reported the following related to pension/OPEB plans to which it contributes:
Net Pension
Net OPEB
Liability (Asset)
Liability (Asset)
Net assets
$ -
$ (328,476)
Net liability
9,038,701
14,035
Deferred outflows of resources
2,296,627
57,231
Deferred inflows of resources
2,929,270
279,033
Expense
706,908
(27,484)
Contributions
957,731
31,466
Arizona State Retirement System
Plan Description
District employees participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost
sharing, multiple -employer defined benefit pension plan; a cost -sharing, multiple -employer defined benefit
health insurance premium benefit (OPEB); and a cost -sharing, multiple -employer defined benefit long- term
disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions
of A.R.S. Title 38, Chapter 5, Articles 2, and 2.1. The ASRS issues a publicly available financial report that includes
its financial statements and required supplementary information. The report is available on its website at
www.azasrs.aov.
Benefits Provided
The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits.
State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly
compensation, and service credit as follows:
Years of service and
age required to
receive benefit
Final average salary
is based on
Benefit percent per
year of service
Retirement Initial
Membership Date:
Before July 1, 2011 On or After July 1, 2011
Sum of years and age equals 80 30 years, age 55
10 years, age 62 25 years, age 60
5 years, age 50* 10 years, age 62
Any years, age 65 5 years, age 50*
Any years, age 65
Highest 36 consecutive months of Highest 60 consecutive months of
last 120 months last 120 months
With actuarially reduced benefits.
2.1 % to 2.3%
2.1% to 2.3%
29
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 — PENSION PLANS (CONTINUED)
Arizona State Retirement System (Continued)
Benefits Provided (Continued)
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic
cost -of -living adjustments based on excess investment earning. Members with a membership date on or after
September 13, 2013, are not eligible for cost -of -living adjustments. Survivor benefits are payable upon a
member's death. For retired members, the retirement benefit option chosen determines the survivor benefit. For
all other members, the beneficiary is entitled to the member's account balance that includes the member's
contributions and employer's contributions, plus interest earned.
Health insurance premium benefits are available to retired or disabled members with 5 years of credited
service. The benefits are payable only with respect to allowable health insurance premiums for which the
member is responsible. For members with 10 or more years of service, benefits range from $100 per month to
$260 per month depending on the age of the member and dependents. For members with 5 to 9 years of
service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on
completed years of service.
Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly earnings.
Members receiving benefits continue to earn service credit up to their normal retirement dates. Members with
long-term disability commencement dates after June 30, 1999, are limited to 30 years of service or the service on
record as of the effective disability date if their service is greater than 30 years.
Contributions
In accordance with state statutes, annual actuarial valuations determine active member and employer
contribution requirements. The combined active member and employer contribution rates are expected to
finance the costs of benefits employees earn during the year, with an additional amount to finance any
unfunded accrued liability. For the year ended June 30, 2022, active ASRS members were required by statute to
contribute at the actuarially determined rate of 12.41% (12.22% for retirement and 0.19% for long-term
disability) of the members' annual covered payroll, and the District was required by statute to contribute at the
actuarially determined rate of 12.41% (12.01% for retirement, 0.21% for health insurance premium benefit, and
0.19% for long-term disability) of the active members' annual covered payroll. In addition, the District was
required by statute to contribute at the actuarially determined rate of 10.22% (10.13% for retirement and 0.09%
for long-term disability) of annual covered payroll of retired members who worked for the District in positions
that would typically be filled by an employee who contributes to the ASRS.
During the fiscal year ended June 30, 2022, the District paid for ASRS pension as follows: 77% from the General
Fund, 7% from the Classroom Site Fund, 10% from the Special Projects Fund and 6% from nonmajor
governmental funds.
Pension Liability
At June 30, 2022, the District reported the following asset and liabilities for its proportionate share of the ASRS'
net pension/OPEB asset or liability.
30
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 — PENSION PLANS (CONTINUED)
Arizona State Retirement System (Continued)
Pension Liability (Continued)
Net
District
Increase
(Assets) Liability
% Proportion
(Decrease)
Pension
$ 9,038,701
0.06879%
0.00025%
Health insurance premium benefit
(328,476)
0.06742%
0.00061%
Long-term disability
14,035
0.06799%
0.00053%
The net asset and net liabilities were measured as of June 30, 2021. The total liability used to calculate the net
asset or net liability was determined using update procedures to roll forward the total liability from an
actuarial valuation as of June 30, 2020, to the measurement date of June 30, 2021. The total liabilities as of
June 30, 2021, reflect changes in actuarial assumptions based on the results of an actuarial experience study
for the 5-year period ended June 30, 2020, including decreasing the discount rate from 7.5% to 7.0% and
changing the projected salary increases from 2.7-7.2% to 2.9-8.%.
The District's proportion of the net asset or net liability was based on the District's actual contributions to the
plan relative to the total of all participating employers' contributions for the year ended June 30, 2021, and the
change from its proportions measured as of June 30, 2020, were noted above.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2022, the District recognized pension/OPEB expense for ASRS of $645,729.
At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Differences between expected and actual experience
Changes of assumptions or other inputs
Changes in proportion and differences between
contributions and proportionate share of contributions
Contributions subsequent to the measurement date
Total
Differences between expected and actual experience
Changes of assumptions or other inputs
Net difference between projected and actual earnings on
pension plan investments
Changes in proportion and differences between
contributions and proportionate share of contributions
Total
Deferred Outflows of Resources
Health Insurance Long -Term
Pension Premium Benefit Disability
$ 137,787 $ - $ 4,054
1,176,459 16,285 4,489
24,650 41 896
957,731 16,746 14,720
$ 2,296,627 $ 33,072 $ 24,159
Deferred Inflows of Resources
Health Insurance Long -Term
Pension Premium Benefit Disability
$ - $ 113,916 $ 1,144
- 13,280 17,684
2,863,778 121,848 9,720
65,492 260 1,181
$ 2,929,270 $ 249,304 $ 29,729
31
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 — PENSION PLANS (CONTINUED)
Arizona State Retirement System (Continued)
The $989,197 reported as deferred outflows of resources related to ASRS pensions and OPEB resulting from
District contributions subsequent to the measurement date will be recognized as an increase of the net asset
or a reduction of the net liability in the year ending June 30, 2023. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to ASRS pensions and OPEB will be recognized
in expenses as follows:
Deferred Outflows (Inflows) of Resources
Health Insurance
Long -Term
Year Ending June 30:
Pension
Premium Benefit
Disability
2023
$ (16,312)
$ (54,611)
$ (2,727)
2024
44,134
(52,363)
(2,558)
2025
(631,316)
(57,415)
(2,910)
2026
(986,880)
(63,446)
(4,381)
2027
-
(5,143)
(1,804)
Thereafter
-
-
(5,910)
Total
$ (1,590,374)
$ (232,978)
$ (20,290)
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
Health Insurance Premium
Pensions
Benefit
Actuarial valuation date
June 30, 2020
June 30, 2020
Actuarial roll forward date
June 30, 2021
June 30, 2021
Actuarial cost method
Entry age normal
Entry age normal
Asset valuation
Fair value
Fair value
Investment rate of return
7.0%
7.0%
Projected salary increases
2.9-8.4%
Not applicable
Inflation rate
2.3%
2.3%
Permanent base increases
Included
Not applicable
Mortality rates
2017 SRA Scale U-MP
2017 SRA Scale U-MP
Recovery rates
Not applicable
Not applicable
Long -Term Disability
June 30, 2020
June 30, 2021
Entry age normal
Fair value
7.0%
Not applicable
2.3%
Not applicable
Not applicable
2012GLDT
Actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial study for
the 5-year period ended June 30, 2020.
The long-term expected rate of return on ASRS plan investments was determined to be 7.0% using a building
block method in which best -estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation.
32
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 — PENSION PLANS (CONTINUED)
Arizona State Retirement System (Continued)
Actuarial Assumptions (Continued)
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long -Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Equity
50%
4.90%
Fixed income - credit
20%
5.20%
Fixed income - interest rate sensitive
10%
0.70%
Real Estate
20%
5.70%
Total
100%
Discount Rate
The discount rate used to measure the ASRS total pension/OPEB liability was 7.0%, which was a decrease of 0.5
from the discount rate used as of June 30, 2020. The projection of cash flows used to determine the discount
rate assumed that contributions from participating employers will be made based on the actuarially determined
rates based on the ASRS Board's funding policy, which establishes the contractually required rate under Arizona
statutes. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. 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/OPEB liability.
Sensitivity of the District's Proportionate Share of the ASRS Net Pension/OPEB (Asset) Liability to
Changes in the Discount Rate
The following table presents the District's proportionate share of the net pension/OPEB (asset) liability
calculated using the discount rate of 7.0%, as well as what the District's proportionate share of the net
pension/OPEB (asset)/liability would be if it were calculated using a discount rate that is 1 percentage point
lower (6.0%) or 1 percentage point higher (8.0%) than the current rate.
Proportionate share of the net liability (asset)
Current
1% Decrease Discount Rate 1% Increase
(6.0%) (7.0%) (8.0%)
Pension $ 14,217,119 $ 9,038,701 $ 4,721,332
Health insruance premium benefit (217,485) (328,476) (422,855)
Long-term disability 18,275 14,035 9,932
Pension Plan Fiduciary Net Position — Detailed information about the pension plan's fiduciary net position is
available in the separately issued ASRS financial report.
Contributions payable - The District's accrued payroll and employee benefits included $29,459 of outstanding
pension amounts payable to ASRS for the year ended June 30, 2022.
33
REQUIRED SUPPLEMENTARY INFORMATION OTHER
THAN M D&A
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
SCHEDULE OF THE DISTRICT'S PROPORTIONATE SHARE OF NET PENSION LIABILITY AND CONTRIBUTIONS
COST SHARING PENSION PLAN
JUNE 30, 2022
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
Proportion of the net pension liability
Proportionate share of the net
pension liability
Covered payroll
Proportionate share of the net pension
liability as a percentage of its
covered payroll
Plan fiduciary net position as a percentage
of the total pension liability
SCHEDULE OF CONTRIBUTIONS
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
District's covered payroll
Contributions as a percentage
of covered payroll
Reporting Fiscal Year
(Measurement Date)
2022
2021
2020
2019 2018
2017
2016
2015
(2021)
(2020)
(2019)
(2018) (2017)
(2016)
(2015)
(2014)
0.06879%
0.06854%
0.06992%
0.07126% 0.06905%
0.07200%
0.07000%
0.07000%
$ 9,038,701 $
11,875,597 $
10,174,174 $
9,938,262 $ 10,756,644 $
11,621,523 $
11,277,788
$ 10,430,601
$ 7,916,804 $
7,569,550 $
7,647,822 $
7,301,038 $ 6,887,455 $
7,025,636 $
6,785,334
$ 6,500,002
114.17%
156.89%
133.03%
136.12%
156.18%
165.42%
166.21 %
160.47%
78.58%
69.33%
73.24%
73.40%
69.92%
67.06%
68.35%
69.49%
Reporting Fiscal Year
2022
2021
2020
2019
2018
2017
2016
2015
$ 957,731 $
900,970 $
849,617 $
824,915 $
772,204 $
719,450 $
776,437 $
767,211
957,731
900,970
849,617
824,915
772,204
719,450
776,437
767,211
$ 7,916,804 $
7,916,804 $
7,569,550 $
7,647,822 $
7,301,038 $
6,887,455 $
7,025,636 $
6,785,334
12.10%
11.38%
11.22%
10.79%
10.58%
10.45%
11.05%
11.31%
See accompanying Notes to Required Supplementary Information
34
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL GENERAL FUND - BUDGETARY BASIS
YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Actual
Variances -
Original
Final
(Budgetary Basis)
Final to Actual
REVENUES
Property taxes
$ - $
-
$ 1,875,132
$ 1,875,132
Intergovernmental
-
-
8,168,997
8,168,997
Other
-
-
13,633
13,633
Total Revenues
-
-
10,057,762
10,057,762
EXPENDITURES
Regular education:
Instruction
4,566,150
4,195,985
4,099,323
96,662
Support services - students
427,565
482,183
430,695
51,488
Support services - instructional staff
108,225
119,442
78,273
41,169
Support services - general administration
136,455
144,455
113,894
30,561
Support services - school administration
819,640
826,430
809,913
16,517
Support services - central services
559,300
643,390
622,101
21,289
Operations and maintenance of plant
2,230,175
2,109,871
2,009,175
100,696
Operation of noninstructional services
82,511
16,000
25,372
(9,372)
School sponsored cocurricular activities
22,850
24,640
17,105
7,535
School sponsored athletics
251,550
154,512
128,331
26,181
Other instructional programs
28,020
32,099
20,924
11,175
Total regular education
9,232,441
8,749,007
8,355,106
393,901
Special education:
Instruction
1,043,540
874,362
839,090
35,272
Support services - students
238,830
289,692
167,389
122,303
Support services - instructional staff
120,540
140,433
129,083
11,350
Support services - general administration
-
1,500
1,081
419
Support services - central services
-
2,500
910
1,590
Total special education
1,402,910
1,308,487
1,137,553
170,934
Pupil transportation:
Student transportation services
1,047,760
1,216,663
1,103,491
113,172
K-3 reading program:
Instruction
78,400
82,100
60,384
21,716
Total Expenditures
11,761,511
11,356,257
10,656,534
699,723
Excess (Deficiency) of Revenues
Over Expenditures
(11,761,511)
(11,356,257)
(598,772)
10,757,485
Fund Balance - Beginning
-
-
2,069,665
2,069,665
Fund Balance - Ending
$ (11,761,511) $
(11,356,257)
$ 1,470,893
$ 12,827,150
See accompanying Notes to Required Supplementary Information
35
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL CLASSROOM SITE FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES
Regular education:
Instruction
Support services - students
Support services - instructional staff
Total regular education
Special education:
Instruction
Total special education
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balance - Beginning
Fund Balance - Ending
Budgeted Amounts
Variances -
Original
Final
Actual
Final to Actual
$ $
- $
1,361,036
$ 1,361,036
-
7,718
7,718
-
-
1,368,754
1,368,754
2,093,051
2,085,251
741,784
1,343,467
11,515
11,472
4,081
7,391
4,249
4,234
1,506
2,728
2,108,816
2,100,957
747,371
1,353,586
25,273
25,179
8,957
16,222
25,273
25,179
8,957
16,222
2,134,089
2,126,136
756,328
1,369,808
(2,134,089)
(2,126,136)
612,426
2,738,562
-
-
1,095,666
1,095,666
$ (2,134,089) $
(2,126,136) $
1,708,092
$ 3,834,228
See accompanying Notes to Required Supplementary Information
36
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL SPECIAL PROJECTS FUND
YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES
Regular education:
Instruction
Support services - students
Support services - instructional staff
Support services - general administration
Support services - school administration
Support services - central services
Operations and maintenance of plant
School sponsored athletics
Other instructional programs
Total regular education
Special education:
Instruction
Support services - students
Support services - instructional staff
Total special education
Pupil transportation:
Student transportation services
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Transfers out
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning
Fund Balance - Ending
Budgeted Amounts
Variances -
Original
Final
Actual
Final to Actual
$ - $
- $
2,303,223
$ 2,303,223
-
-
2,589
2,589
-
-
2,305,812
2,305,812
4,287,950
4,456,646
1,248,653
3,207,993
49,011
50,939
14,272
36,667
476,012
494,739
138,615
356,124
9,320
9,687
2,714
6,973
46,583
48,416
13,565
34,851
43,437
45,146
12,649
32,497
815,267
847,341
237,406
609,935
5,512
5,729
1,605
4,124
3,005
3,123
875
2,248
5,736,097
5,961,765
1,670,354
4,291,411
1,364,658
1,418,346
397,389
1,020,957
142,740
148,356
41,566
106,790
45,944
47,752
13,379
34,373
1,553,343
1,614,454
452,334
1,162,120
205,992
214,096
59,985
154,111
7,495,432
7,790,315
2,182,673
5,607,642
(7,495,432)
(7,790,315)
123,139
7,913,454
-
-
(128,508)
(128,508)
(7,495,432)
(7,790,315)
(5,369)
7,784,946
-
-
77,329
77,329
$ (7,495,432) $
(7,790,315) $
71,960
$ 7,862,275
See accompanying Notes to Required Supplementary Information
37
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NOTES TO THE REQUIRED
SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2022
NOTE 1 — AVAILABILITY OF PRIOR YEAR PENSION INFORMATION
Information prior to the measurement date of June 30, 2014, was not available. GASB Statement No. 68
requires the District to present 10 years of pension information as required supplementary information.
However, until a full 10 years of trend data is compiled, the District will present information for only those
years for which information is available.
NOTE 2 — BUDGETARY BASIS OF ACCOUNTING
The District's adopted budget is prepared on a basis consistent with accounting principles generally accepted
in the United States of America, with the following exception:
1) The General Fund as reported in the Statement of Revenues, Expenditures, and Changes in Fund
Balances includes the District's Maintenance and Operation Fund in addition to several other
District funds as required by GASB Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions; however, for budgetary purposes, the District prepares a separate
Maintenance and Operation Fund budget.
The following adjustments are necessary to present actual revenues, expenditures, other financing sources and
uses, beginning fund balance and ending fund balance on a budgetary basis in order to present only the
activity of the District's Maintenance and Operation Fund for budgetary purposes.
Statement of revenues, expenditures
and changes in fund balance
Non -maintenance and operation activity included
in the General Fund
Schedule of revenues, expenditures, and
changes in fund balance - budget to actual
General Fund
Other
Financing Fund balance
Total Total Sources and beginning of Fund balance
Revenues Expenditures Uses year end of year
$ 12,432,878 $ 12,937,350 $ 264,787 $ 9,364,330 $ 9,124, 645
(2,375,116) (2,280,816) (264,787) (7,294,665) (7,653,752)
$ 10,057,762 $ 10,656,534 $ - $ 2,069,665 $ 1,470,893
38
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NONMAJOR GOVERNMENTAL FUNDS
FUND DESCRIPTIONS
JUNE 30, 2022
SPECIAL PROJECTS FUNDS
Instructional Improvement Fund — accounts for revenues and expenditures for State apportioned Indian Gaming
monies.
Other Special Revenue Fund — accounts for the revenues and expenditures of the following activities or
objectives: civic center, community school, extracurricular activity fee tax credit, career & technology &
vocational education program, fingerprinting, textbooks, joint technological education, and grants and gifts to
teachers.
Food Service Fund — accounts for the financial operations of preparing and serving regular and incidental meals
and snacks in connection with school functions.
Student Activities Fund — accounts for monies raised by students to finance student clubs and organizations.
CAPITAL PROJECTS FUND
Adjacent Ways Fund — accounts for monies received to finance such improvements as public streets or alleys
adjacent to school property.
Building Renewal Grant Fund — accounts for building renewal grant monies that districts may request from the
School Facilities Board (SFB).
DEBT SERVICE FUND
Debt Service Fund — accounts for resources accumulated and used for the payment of long-term debt principal,
interest and related costs. The District did not budget for the Debt Service Fund.
39
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
Debt Service
Special Revenue Funds
Capital Project Funds
Fund
Instructional
Building
Non -Major
Improvement
Other Special
Food Service
Student
Adjacent Ways
Renewal Grant
Debt Service
Governmental
Fund
Revenue Fund
Fund
Activities Fund
Fund
Fund
Fund
Funds
ASSETS
Cash and investments
$ 561,919
$ 1,179,264
$ 363,556
$ 81,855
$
9,187
$ 415
$ 52
$
2,196,248
Receivables:
Intergovernmental
15,898
26,850
219,308
-
-
13,754
-
275,810
Deposits
-
-
32,039
-
-
-
-
32,039
Total Assets
$ 577,817
$ 1,206,114
$ 614,903
$ 81,855
$
9,187
$ 14,169
$ 52
$
2,504,097
LIABILITIES
Accounts payable
$ -
$ 9,279
$ 16,793
$ -
$
-
$ 14,169
$ -
$
40,241
Accrued wages
-
7,646
17,794
-
-
-
25,440
Total Liabilities
-
16,925
34,587
-
-
14,169
-
65,681
FUND BALANCES
Restricted
577,817
1,189,189
580,316
81,855
9,187
-
52
2,438,416
Total Fund Balances
577,817
1,189,189
580,316
81,855
9,187
-
52
2,438,416
Total Liabilities
and Fund Balances
$ 577,817
$ 1,206,114
$ 614,903
$ 81,855
$
9,187
$ 14,169
$ 52
$
2,504,097
40
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
Debt Service
Special Revenue Funds
Capital Project Funds
Fund
Instructional
Building
Non -Major
Improvement
Other Special
Food Service
Student
Adjacent Ways
Renewal Grant
Debt Service
Governmental
Fund
Revenue Fund
Fund
Activities Fund
Fund
Fund
Fund
Funds
REVENUES
Intergovernmental
$ 59,085
$ 161,264
$ 1,193,191
$
$
259,160
$
$ 1,672,700
Tuition
-
112,905
-
-
112,905
Food Services Sales
-
51,855
51,855
Student activities
-
-
59,188
59,188
Contributions and donations
-
24,010
-
-
-
24,010
Investment earnings
3,953
7,694
3,353
17
68
15,085
Other
-
8,479
15,023
-
-
-
23,502
Total Revenues
63,038
314,352
1,263,422
59,205
68
259,160
52
1,959,297
EXPENDITURES
Current
Instruction
23,172
282,886
819,021
64,696
-
-
-
1,189,775
Support services:
Students
-
8,532
-
-
8,532
Instructional staff
27,574
-
27,574
School administration
-
4,965
-
4,965
Operations and maintenance of plant
2,152
-
53,552
55,704
Student transportation
3,982
18,009
-
21,991
Operations of noninstructional services
-
174,350
-
174,350
Capital outlay:
Facilities acquisition
-
4,411
-
-
163,259
167,670
Total Expenditures
23,172
336,437
1,016,583
64,696
-
216,811
-
1,657,699
Excess (Deficiency) of Revenues
Over Expenditures
39,866
(22,085)
246,839
(5,491)
68
42,349
52
301,598
Other Financing Sources (Uses)
Transfers out
-
(136,279)
-
-
-
(136,279)
Net Financing Sources (Uses)
-
(136,279)
-
-
-
(136,279)
NET CHANGE IN FUND BALANCE
39,866
(22,085)
110,560
(5,491)
68
42,349
52
165,319
Fund Balance - Beginning
537,951
1,211,274
469,756
87,346
9,119
(42,349)
-
2,273,097
Fund Balance - Ending
$ 577,817
$ 1,189,189
$ 580,316
$ 81,855
$ 9,187
$ -
$ 52
$ 2,438,416
41
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
INSTRUCTIONAL IMPROVEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Investment earnings
Total Revenues
EXPENDITURES
Regular education:
Instruction
Special education:
Instruction
K-3 reading program:
Instruction
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balance - Beginning
Fund Balance - Ending
Budgeted Amounts
Variances -
Original
Final
Actual
Final to Actual
$ $
- $
59,085
$ 59,085
-
-
3,953
3,953
-
-
63,038
63,038
18,480
45,917
19,465
26,452
2,519
61258
2,653
3,605
1,001
2,486
1, 054
1,432
22,000
54,662
23,172
31,490
(22,000)
(54,662)
39,866
94,528
-
537,951
537,951
-
$ (22,000) $
483,289 $
577,817
$ 94,528
42
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
OTHER SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2022
REVENUES
Intergovernmental
Tuition
Contributions and donations
Investment earnings
Other
Total Revenues
EXPENDITURES
Regular education:
Instruction
Support services - general administration
Operations and maintenance of plant
School sponsored cocurricular activities
School sponsored athletics
Other instructional programs
Total regular education
Special education:
Instruction
Support services - students
Support services - instructional staff
Total special education
Pupil transportation:
Student transportation services
K-3 reading program:
Instruction
Capital Outlay:
Facilities acquisition
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Fund Balance - Beginning
Fund Balance - Ending
Budgeted Amounts
Variances -
Original and Final
Actual
Final to Actual
$ - $
161,264
$ 161,264
-
112,905
112,905
-
24,010
24,010
-
7,694
7,694
-
8,479
8,479
-
314,352
314,352
261,560
134,042
127,518
13,464
6,900
6,564
4,199
2,152
2,047
2,225
1,140
1,085
14,914
7,643
7,271
51,439
26,361
25,078
347,801
178,238
169,563
221,187
113,352
107,835
16,649
8,532
8,117
53,806
27,574
26,232
291,642
149,458
142,184
7,770
3,982
3,788
679
348
331
8,607
4,411
4,196
656,500
336,437
320,063
(656,500)
(22,085)
634,415
-
1,211,274
-
$ (656,500) $
1,189,189
$ 634,415
43
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
FOOD SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Variances -
Original and Final
Actual
Final to Actual
REVENUES
Intergovernmental
$ - $
1,193,191
$ 1,193,191
Food service sales
-
51,855
51,855
Investment earnings
-
3,353
3,353
Other
-
15,023
15,023
Total Revenues
-
1,263,422
1,263,422
EXPENDITURES
Regular education:
Instruction
523,679
819,021
(295,342)
Support services - school administration
3,175
4,965
(1,790)
Support services - central services
152
238
(86)
Operation of noninstructional services
111,479
174,350
(62,871)
Total regular education
638,485
998,574
(360,089)
Pupil transportation:
Student transportation services
11,515
18,009
(6,494)
Total Expenditures
650,000
1,016,583
(366,583)
Excess (Deficiency) of Revenues
Over Expenditures
(650,000)
246,839
896,839
Other Financing Sources (Uses):
Transfers out
-
(136,279)
(136,279)
NET CHANGE IN FUND BALANCE
(650,000)
110,560
760,560
Fund Balance - Beginning
469,756
469,756
-
Fund Balance - Ending
$ (180,244) $
580,316
$ 760,560
44
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
STUDENT ACTIVITIES FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2022
Budgeted Amounts
Variances -
Original and Final
Actual
Final to Actual
REVENUES
Student activities
$ - $
59,188
$ 59,188
Investment earnings
-
17
17
Total Revenues
-
59,205
59,205
EXPENDITURES
Regular education:
Instruction
65,000
64,696
304
Total Expenditures
65,000
64,696
304
Excess (Deficiency) of Revenues
Over Expenditures
(65,000)
(5,491)
59,509
Fund Balance - Beginning
87,346
87,346
-
Fund Balance - Ending
$ 22,346 $
81,855
$ 59,509
45
STATISTICAL SECTION
(UNAUDITED)
STATISTICAL SECTION
This section of the Globe Unified School District No. 1's Annual Comprehensive Financial Report presents
detailed information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial health.
Financial Trends: These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity: These schedules contain information to help the reader assess the government's most
significant local revenue source, the property tax.
Debt Capacity: These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue additional debt in the
future.
Demographic and Economic Information: These schedules offer demographic and economic indicators to
help the reader understand the environment within which the government's financial activities take place.
Operating Information: These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the government provides and
the activities it performs.
See the table of contents for page numbers of the schedules that encompass the above sections
46
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Fiscal Year Ended June 30
Net Position: 2022 2021 2020 2019 2018
Investment in capital assets $ 14,819,776 $ 15,135,084 $ 15,490,953 $ 13,645,024 $ 14,054,746
Restricted 4,218,468 3,573,763 3,133,851 3,308,372 3,390,960
Unrestricted (613,331) (709,809) (1,606,476) (1,977,646) (3,435,703)
$ 18,424,913 $ 17,999,038 $ 17,018,287 $ 14,975,750 $ 14,010,003
Fiscal Year Ended June 30
Net Position: 2017 2016 2015 2014 2013
Investment in capital assets $ 14,230,728 $ 15,170,275 $ 15,816,950 $ 15,936,316 $ 16,350,504
Restricted 4,041,407 4,244,709 3,769,381 4,562,457 4,713,571
Unrestricted (4,167,716) (5,083,440) (5,255,779) 3,814,144 3,794,207
$ 14,104,419 $ 14,311,544 $ 14,330,552 $ 24,312,917 $ 24,858,282
Source: The District's financial records.
47
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
EXPENSE, PROGRAM REVENUES, AND NET EXPENSE
LAST TEN FISCAL YEARS
ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Expenses:
Instruction
Support Services - students and staff
Support Services - administration
Operation and Maintenance of plant services
Student transportation services
Operation of non -instructional services
Loss on sale of capital assets
Total expenses
Program revenues:
Charges for services:
Instruction
Operation of non -instructional services
Operating grants and contributions
Capital grants and contributions
Total program revenues
Net expense
Source: The District's financial records.
Fiscal Year Ended June 30
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
$ 9,750,941 $ 9,370,323 $ 8,496,078 $ 7,360,048 $ 6,886,187 $ 7,534,544 $ 7,265,389 $ 6,977,878 $ 6,566,341 $ 6,445,738
1,317,291 1,152,803 1,064,178 1,068,994 1,063,338 1,181,667 969,489 1,103,881 917,355 824,406
2,376,109 2,097,915 2,305,843 1,860,936 1,941,304 1,664,648 2,158,571 2,078,489 1,774,636 1,788,941
2,616,419 2,656,906 2,365,796 2,129,284 2,794,378 2,536,670 2,332,569 2,203,902 2,308,257 1,825,710
1,377,152 1,167,445 1,066,354 1,060,436 1,074,540 919,843 1,207,085 1,014,294 845,929 887,486
165,348 206,247 93,164 632,323 643,395 724,529 702,534 804,410 762,295 734,345
- - - - - - 7,750 - 7,723 273,905
17,603,260 16,651,639 15,391,413 14,112,021 14,403,142 14,561,901 14,643,387 14,182,854 13,182,536 12,780,531
112,905 99,726 96,001 152,182 132,704 179,524 190,405 173,348 133,056 -
123,098 96,281 209,283 247,757 355,882 192,971 233,159 340,781 273,987 243,398
5,366,196 4,627,625 3,151,538 2,986,399 3,319,185 3,639,718 3,296,910 3,180,267 1,911,107 1,942,671
259,160 849,277 1,827,019 289,890 - 58,706 628,339 500,135 - -
5,861,359 5,672,909 5,283,841 3,676,228 3,807,771 4,070,919 4,348,813 4,194,531 2,318,150 2,186,069
$ (11,741,901) $ (10,978,730) $ (10,107,572) $ (10,435,793) $ (10,595,371) $ (10,490,982) $ (10,294,574) $ (9,988,323) $ (10,864,386) $ (10,594,462)
48
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
GENERAL REVENUES AND TOTAL CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Net Expense
General revenues:
Property taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt services
Property taxes, levied for capital outlay
Share of sales tax - Proposition 301
Investment Income
Federal aid, not restricted
Other
County equalization
State equalization and additional state aid
Total general revenues
Changes in net position
Source: The District's financial records.
Fiscal Year Ended June 30
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
$ (11,741,901) $ (10,978,730) $ (10,107,572) $ (10,346,441) $ (10,595,371) $ (10,490,983) $ (10,294,574) $ (9,988,323) $ (10,864,386) $ (10,594,462)
1,929,162 1,695,562 1,873,955 1,989,666 2,004,088 1,126,935 1,967,958 1,111,025 1,088,646 1,088,646
- - - - - - 703 1,166 7,212 7,212
120,345 120,345 120,345 48,602 43,717 2,672 33,235 862,670 403,965 403,965
- - - - - - - 609,572 593,448 593,448
70,585 112,717 150,299 155,285 41,641 14,614 37,950 19,979 31,452 31,452
1,346,942 1,445,402 1,365,588 1,407,414 960,022 1,317,827 963,336 472,281 600,177 600,177
55,644 125,890 20,476 22,998 14,386 27,435 65,703 9,322 20,721 20,721
616,200 672,163 716,084 730,446 713,560 776,011 637,240 684,745 668,016 668,016
8,028,898 7,468,881 7,903,403 7,323,514 6,723,541 7,030,072 6,625,088 6,548,261 5,664,793 5,664,793
12,167,776 11,640,960 12,150,150 11,677,925 10,500,955 10,295,566 10,331,213 10,319,021 9,078,430 9,078,430
$ 425,875 $ 662,230 $ 2,042,578 $ 1,331,484 $ (94,416) $ (195,417) $ 36,639 $ 330,698 $ (1,785,956) $ (1,516,032)
49
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
MODIFIED ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Fiscal Year Ended June 30
General Fund
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Nonspendable $
- $
- $
- $
167,087
$ - $
254,264
$ 146,257 $
142,249 $
- $
Unassigned
9,124,645
9,237,013
8,206,493
7,505,631
6,919,162
6,401,123
5,404,685
3,821,921
2,521,297
2,766,658
Total General Fund
9,124,645
9,237,013
8,206,493
7,672,718
6,919,162
6,655,387
5,550,942
3,964,170
2,521,297
2,766,658
All other governmental funds:
Restricted
4,218,468
3,573,763
3,133,851
3,308,372
3,390,960
4,041,407
4,244,709
4,577,740
4,562,457
4,713,571
Assigned
-
-
-
-
-
-
-
-
786,141
1,017,898
Unassigned
-
(354)
(354)
-
-
-
(28,288)
(385,067)
(17,734)
-
Total all other governmental funds
4,218,468
3,573,409
3,133,497
3,308,372
3,390,960
4,041,407
4,216,421
4,192,673
5,330,864
5,731,469
Total all governmental funds $ 13,343,113 $ 12,810,422 $ 11,339,990 $ 10,981,090 $ 10,310,122 $ 10,696,794 $ 9,767,363 $ 8,156,843 $ 7,852,161 $ 8,498,127
Source: The District's financial records.
50
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
REVENUES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
MODIFIED ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Fiscal Year Ended
June 30
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Federal sources:
Federal aid and grants
$ 3,635,239 $
3,486,634
$ 2,509,721 $
2,877,974
$ 2,655,216 $
3,194,799 $
3,300,738 $
2,751,001 $
1,697,794 $
1,973,192
National school lunch program
1,193,191
1,121,984
585,240
375,567
443,597
465,448
487,631
501,965
508,614
403,098
Total federal sources:
4,828,430
4,608,618
3,094,961
3,253,541
3,098,813
3,660,247
3,788,369
3,252,966
2,206,408
2,376,290
States sources:
State equalization
8,028,898
7,468,881
7,903,403
7,252,141
6,654,538
6,716,894
6,952,995
6,555,064
6,484,287
5,664,793
State grants
1,618,203
1,061,231
1,324,864
1,023,462
303,604
36,098
46,897
58,896
85,365
97,369
School facilities board
259,160
849,277
1,827,019
258,930
-
58,706
484,551
500,135
-
-
Other revenues
-
-
-
-
824,078
752,157
783,915
698,368
673,546
529,458
Total state sources
9,906,261
9,379,389
11,055,286
8,534,533
7,782,220
7,563,855
8,268,358
7,812,463
7,243,198
6,291,620
Local sources
Property taxes
2,087,113
1,838,945
2,005,247
2,050,421
2,030,328
1,706,200
1,806,333
1,757,779
1,513,987
1,525,344
County equalization
616,200
672,163
716,084
730,446
713,560
743,907
776,011
637,240
684,745
668,016
Food service sales
51,855
59,013
119,334
70,783
90,429
90,979
98,422
107,181
111,475
103,072
Investment income
70,585
112,717
150,299
155,285
41,641
28,637
14,614
37,950
19,979
31,452
Tuition
112,905
99,726
96,001
150,716
131,194
130,929
127,810
134,938
-
-
Auxiliary operations
71,243
37,268
89,949
110,205
108,005
99,992
118,148
113,232
80,986
85,397
Charges for services
-
-
-
68,235
158,958
179,524
190,405
114,913
196,773
150,930
Contributions and donations
46,053
101,652
125,490
154,264
85,747
73,628
25,182
38,582
87,110
37,179
Other revenues
276,096
377,079
20,476
59,688
50,354
79,289
107,453
274,383
31,636
20,720
Total local sources
3,332,050
3,298,563
3,203,546
3,550,043
3,410,216
3,133,085
3,264,378
3,216,198
2,726,691
2,622,110
Total revenues $ 18,066,741 $ 17,286,570 $ 17,353,793 $ 15,338,117 $ 14,291,249 $ 14,357,187 $ 15,321,105 $ 14,281,627 $ 12,176,297 $ 11,290,020
Source: The District's financial records.
51
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
MODIFIED ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Expenditures:
Current:
Instruction
Support services - students and staff
Support services - administration
Operation and maintenance of plant services
Student transportation services
Operation of non -instructional services
Capital outlay
Total expenditures
Debt service as a percentage of
noncapital expenditures
Fiscal Year Ended June 30
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
$ 9,500,599 $ 7,938,134 $ 7,925,132 $ 7,265,686 $ 6,587,191 $ 6,585,736 $ 6,583,766 $ 6,234,472 $ 5,957,496 $ 5,551,889
1,337,987 1,136,587 1,059,595 1,101,690 1,087,982 1,144,161 950,184 1,082,592 902,727 808,322
2,338,363 2,060,955 2,247,290 1,951,318 1,984,396 1,675,688 2,029,456 2,058,173 1,684,242 1,717,404
2,403,867 2,377,620 2,164,950 2,123,367 2,219,497 2,226,133 2,125,109 2,141,878 2,118,063 1,606,336
1,376,621 1,093,487 1,351,528 940,809 977,062 836,614 1,116,708 957,779 865,078 668,425
200,842 885,098 49,564 594,675 602,217 627,497 660,244 733,067 705,529 689,436
375,771 642,737 2,316,168 856,691 965,310 439,934 249,126 911,233 589,128 532,863
$ 17,534,050 $ 16,134,618 $ 17,114,227 $ 14,834,236 $ 14,423,655 $ 13,535,763 $ 13,714,593 $ 14,119,194 $ 12,822,263 $ 11,574,675
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
52
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
MODIFIED ACCRUAL BASIS OF ACCOUNTING
(UNAUDITED)
Fiscal Year Ended June 30
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Excess (deficiency) of revenues
over expenditures
$ 532,691 $
1,151,952 $
239,566 $
593,233
$ (132,408) $
821,424 $
1,606,512 $
162,433 $
(645,966) $
(284,655)
Over financing sources (uses):
Transfers in
264,787
62,205
67,240
64,905
74,964
87,499
861,466
747,520
1,494,637
600,861
Transfers out
(264,787)
(62,205)
(67,240)
(64,905)
(74,964)
(87,499)
(861,466)
(747,520)
(1,494,637)
(600,861)
Total other financing sources (uses)
-
-
-
-
-
-
-
Changes in fund balances
$ 532,691 $
1,151,952 $
239,566 $
593,233
$ (132,408) $
821,424 $
1,606,512 $
162,433 $
(645,966) $
(284,655)
Source: The District's financial records.
53
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
NET FULL CASH ASSESSED VALUE BY PROPERTY CLASSIFICATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Property Classification (a)
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Mining, utilities, commercial and industrial
28%
30%
28%
18%
18%
18%
19%
19%
20%
20%
Agriculture and vacant land
6%
5%
7%
15%
15%
15%
16%
16%
16%
16%
Owner occupied residential
48%
49%
48%
10%
10%
10%
10%
10%
10%
10%
Leased or rented residential
16%
16%
16%
10%
10%
10%
10%
10%
10%
10%
Railroad, private car company, airline flight property
1 %
0%
1 %
14%
15%
14%
15%
16%
15%
15%
Class
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Commercial, industrial, utilities & mines
$ 16,736,681
$ 15,403,280
$ 15,829,887
$ 16,535,906
$ 16,057,568
$ 15,870,048
$ 16,814,817
$ 13,808,980
$ 13,670,940
$ 14,243,837
Agricultural and vacant
3,751,006
2,465,391
4,124,011
3,942,848
3,847,541
3,908,851
3,870,883
3,298,440
3,368,518
3,373,704
Residential (owner occupied)
28,565,134
25,224,443
27,229,705
25,453,926
25,451,850
22,944,430
21,930,371
20,416,715
19,800,867
20,689,246
Residential (rental)
9,590,671
8,202,036
9,019,294
8,867,790
9,160,241
8,702,233
8,137,276
7,637,179
7,485,222
7,546,385
Railroad
303,137
210,393
287,673
265,338
251,989
196,389
183,491
195,360
189,191
154,029
Historical property
165,883
164,727
165,986
166,523
168,135
168,015
129,337
212,993
212,300
212,335
Commercial historical property
-
-
-
-
-
-
24,164
9,877
10,127
10,376
Totals
$ 59,112,512
$ 51,670,270
$ 56,656,556
$ 55,232,331
$ 54,937,324
$ 51,789,966
$ 51,090,339
$ 45,579,544
$ 44,737,165
$ 46,229,912
Ratio of net full cash assessed values to
estimated actual value
9.99%
8.74%
9.95%
10.04%
9.97%
9.93%
10.22%
10.21%
9.85%
9.95%
Total direct rate
4.47%
4.47%
4.87%
5.00%
5.23%
4.51%
4.71%
4.72%
4.28%
3.99%
Source: District records and the State and County Abstract of the Assessment Roll from the Arizona Department of Revenue.
54
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
District Direct Rates
Overlapping Rates
Community
Fiscal Year
State
Gila
College
Tri-City
Ended June 30
Primary
Secondary
Total
Equalization
County
District
Fire District
City of Globe
2022
4.71 %
0.00%
4.71 %
0.43%
4.19%
0.96%
2.90%
1.26%
2021
4.47%
0.00%
4.47%
0.46%
4.19%
0.96%
2.90%
1.29%
2020
4.87%
0.00%
4.87%
0.46%
4.19%
0.96%
2.90%
1.29%
2019
5.00%
0.00%
5.00%
0.47%
4.19%
0.96%
2.80%
1.28%
2018
5.23%
0.00%
5.23%
0.49%
4.19%
0.94%
2.80%
1.31%
2017
4.51 %
0.00%
4.51 %
0.50%
4.19%
0.87%
2.70%
1.31 %
2016
4.71 %
0.00%
4.71 %
0.50%
4.19%
0.87%
2.70%
1.31 %
2015
4.72%
0.00%
4.72%
0.51 %
4.19%
0.96%
3.25%
1.32%
2014
4.28%
0.00%
4.28%
0.51 %
4.19%
0.87%
3.25%
1.32%
2013
3.99%
0.00%
3.99%
0.47%
4.19%
0.75%
2.97%
1.32%
55
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
PRINCIPAL PROPERTY TAXPAYERS
FISCAL YEAR ENDED JUNE 30, 2022, AND 2012
(UNAUDITED)
Taxpayer
Arizona Public Service
Southwest Gas Corporation
Globe HI LLC
Arizona Water Company
Gila River General Partnership
Qwest Corporation
1699 East Ash LLC
Arizona Eastern Railway Company
BHP Copper Inc.
Haven Globe Real Estate
Cyprus Miami Mining Corporation NKA
Cableone Inc.
Globe Real Estate Investors LLC
Nirali Investments A California Limit Co.
2022 *2012
Net Assessed
Percentage of Net
Net Assessed
Percentage of Net
Property Value for
Assessed Property Value
Property Value for
Assessed Property Value
Secondary Tax Purposes
for Secondary Tax Purposes
Secondary Tax Purposes
for Secondary Tax Purposes
$ 4,841,804
8.19%
3,514,751
7.69%
1,625,398
2.75%
341,952
0.75%
475,991
0.81 %
426,280
0.72%
353,747
0.77%
312,057
0.53%
322,658
0.71 %
278,599
0.47%
708,085
1.55%
257,294
0.44%
239,344
0.52%
206,366
0.35%
205,780
0.35%
204,331
0.35%
322,186
0.70%
336,002
0.73%
254,785
0.56%
211,946
0.46%
Totals $ 8,833,900
14.94%
$ 6,605,456
14.44%
Source: Gila County Assessor and the Arizona Department of Revenue.
*Fiscal year 2012 was the closest to nine year prior.
56
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Current Collections
Taxes Levied
for the
Fiscal Year Ended June 30
Fiscal Year
Amount
2022
$ 2,093,348
$ 2,027,326
2021
2,286,414
2,244,522
2020
1,990,705
1,936,744
2019
2,065,100
1,991,766
2018
2,037,799
1,975,145
2017
2,091,316
2,032,035
2016
2,208,203
1,750,290
2015
2,156,916
1,670,231
2014
1,525,336
1,456,699
2013
1,500,598
1,442,441
Outstanding
Percentage of
Delinquent
Collections as
Outstanding
Collections as
Current Taxes
Tax
Total
a Percentage
Tax
a Percentage
Collected
Collections
Collections
of the Levy
Collections
of Levy
96.85%
$ -
2,027,326
96.85%
$ 58,449
2.79%
98.17%
48,919
2,293,441
100.31%
5,008
0.22%
97.29%
45,818
1,982,562
97.29%
3,553
2.48%
96.45%
48,585
2,040,351
98.80%
2,797
1.20%
96.93%
54,831
2,029,976
99.62%
7,823
0.38%
97.17%
54,965
2,087,000
99.79%
4,316
0.21%
79.26%
455,306
2,205,596
99.88%
2,607
0.12%
77.44%
485,156
2,155,387
99.93%
1,529
0.07%
95.50%
68,637
1,525,336
100.00%
-
0.00%
96.12%
52,148
1,494,589
99.60%
6,009
0.40%
57
ON W PS Pd P��PgEE
`DISTR%CT ND.1 RS NO `NFORWAPTj
D PST TEN F`SGP`YEP
GVOBE UtAXf% D DE S gV TypE
O I -Ts � �SCpEYEpRStADIG DEg� DVE?- `
Ep5,PVp,TEDI PNY pvTS'V X
`vN R`�T p�D NOT NPVE
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5$
percentage of
GT NO' 1 L p`�'?fv`v`ES DEgefq-
t Est\mated NCt xal
D�STR� N,ENZ °u� prop
\FEED S��OOP NG GOVERN �eest� cted fur T°taf va`ue o{ Oo%
GLO CT P D OVER�p era\ Dbf\gat\O" R princ�Paf % 0.
D\RE 30 2p22 Gen Bonds �oaoa
� �NpUp11EDl � �
`Year Ended 3une
30
F\sca
d Scho°\ D\strIct N° 1 DEED
G\obe �T\pN
BNED
Un�f�e `
over\
Iota\ drrec O D a%
pp�NG GENE
t and apping deb VERB
p\REG� pND O
debt Secondary tax pUrpoSes $o
ra\ ob n d property -" for / 0%
\\gat�o
Net d\rede e gage of net aS5esse ded debt ,,poses
as a pelc co�dary tax p
er\app�ng genera\ bo" a\ue for se Department of Revenue
and ov net assessed proper' v
Net direct r`t Ro\\from the ArrZona
per a peraentage0 et fu\\ cash va\ue o f e P m
ssess e
as f n th
as a percentag to and County Abstract
. tr\ct records and the Sta
Source. pis
59
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(UNAUDITED)
Class B Bond Legal Debt Margin Calculation:
Legal Debt Margin Calculation:
Net full cash assessed value $
59,112,512
Net full cash assessed value
$ 59,112,512
20%
30%
Debt limit (20% of assessed value)
11,822,502
Debt limit (30% of assessed value)
17,733,754
Less: Net debt applicable to limit
-
Less: Net debt applicable to limit
-
Legal debt margin $
11,822,502
Legal debt margin
$ 17,733,754
Fiscal Year Ended June 30
2022
2021 2020 2019
2018
Debt Limit $
17,733,754
$ 17,738,693 $ 16,996,967 $ 16,569,699
$ 16,481,197
Less: Net debt applicable to limit
Legal debt margin
Total debt applicable to the limit
as percentage of debt limit
Debt Limit
Less: Net debt applicable to limit
Legal debt margin
Total debt applicable to the limit
as percentage of debt limit
$ 17,733,754 $ 17,738,693 $ 16,569,699 $ 16,569,699 $ 16,481,197
0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year Ended June 30
2017 2016 2015 2014 2013
$ 15,536,990 $ 15,327,102 $ 13,673,874 $ 13,421,150 $ 13,868,974
$ 15,536,990
0.0%
15,327,102 $ 13,673,874 $ 13,421,150 $ 13,868,974
0.0% 0.0% 0.0% 4.6%
Source: District records and the State and County Abstract of the Assessment Roll from the Arizona Department of Revenue.
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
COUNTY -WIDE DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Year
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
Population
53,589
54,452
54,018
53,597
53,501
53,165
53,159
53,119
53,063
53,027
Personal Income
(thousands)
$2,612,568
$2,314,029
2,226,470
2,158,190
2,046,804
1,943,756
1,917,248
1,830,663
1,777,124
1,732,181
Gila County
Per Capita
43,524
43,524
41,217
40,267
38,257
36,561
34,463
33,491
32,666
31,990
Unemployment
Rate
4.2%
6.2%
9.2%
5.0%
4.7%
6.1 %
7.5%
8.2%
8.3%
9.3 %
Estimated
District Population
10,541
10,541
10,541
10,541
10,541
10,541
10,541
10,541
10,541
10,541
61
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
PRINCIPAL EMPLOYERS — GILA COUNTY
FISCAL YEAR ENDING JUNE 30, 2021, AND 2013
(UNAUDITED)
*2021
Approximate Number
Percentage of Total
Employer
Description
of Employees
Employment
Freeport- McMoRan Copper and Gold
Mining
700
2.25%
Capstone Mining Corp
Mining
675
3.19%
Gila County Government
County Government
522
3.08%
WalMart
Retail
193
0.95%
Cobre Valley Regional Hospital
Medical
430
1.47%
City of Globe
City Government
125
0.50%
Globe Unified School District
School District
180
0.92%
Fry's Grocery (Kroger)
Retail
118
0.57%
5-D Mining
Mining
100
0.36%
Safeway Inc.
Retail
52
0.23%
2,857
13.51%
**2013
Approximate Number
Percentage of Total
Employer
Description
of Employees
Employment
Freeport- McMoRan Copper and Gold
Mining
998
4.70%
Capstone Mining Corp
Mining
650
3.06%
Gila County Government
Government
379
1.78%
WalMart
Retail
298
1.40%
Cobre Valley Regional Hospital
Medical
280
1.32%
City of Globe
Government
190
0.89%
Globe Unified School District
Government
184
0.87%
Safeway Inc.
Retail
105
0.49%
3,084
14.52%
Source: The major employers were determined for The Book of Lists, Phoenix Business Journal.
*2022 information was not available, so 2021 information was presented.
** Only eight principal empoyler were referenced in the source material for 2013. 62
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
FULL-TIME EQUIVALENT DISTRICT EMPLOYEE BY TYPE
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal Year Ended June 30
2022
2021 2020
2019
2018
2017
2016
2015
2014
2013
Supervisory
Superintendent
1
1
1
1
1
1
1
1
1
1
Principals
3
3
2
3
3
3
4
4
4
3
Assistant principals
3
3
3
3
3
4
3
3
3
3
Vocational Education administrator
1
1
1
1
1
1
1
1
1
1
Total supervisory
8
8
7
8
8
9
9
9
9
8
Instruction
Teachers
85
89
89
94
87
87
87
87
87
80
Aides
24
24
24
29
30
30
31
31
29
27
Total Instruction
109
113
113
123
117
117
118
118
116
107
Student Services
Librarians
3
3
1
1
1
1
1
1
1
1
Guidance counselors
3
2
1
1
1
1
1
1
1
1
Nurse/Health aid
3
3
3
3
2
2
2
2
2
3
Technicians
0
0
0
0
0
0
0
0
0
0
Total Student services
9
8
5
5
4
4
4
4
4
5
Support and Administration
Supervisors
6
6
6
8
8
8
8
8
7
6
Clerical/Secretarial
16
16
16
16
16
16
16
16
17
15
Service Workers
45
45
25
33
43
43
41
41
43
44
Total support and administration
67
67
47
57
67
67
65
65
67
65
Total full-time equivalent employees
193
196
172
193
196
197
196
196
196
185
Source: The School District Employee Report (SDER 30
- FTE Statistics)
63
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
AVERAGE DAILY MEMBERSHIP
LAST TEN FISCAL YEARS
(UNAUDITED)
Average
Daily
Fiscal Year
Membership
2021-22
1,476
2020-21
1,460
2019-20
1,584
2018-19
1,571
2017-18
1,579
2016-17
1,541
2015-16
1,619
2014-15
1,719
2013-14
1,703
2012-13
1,544
64
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
OPERATING STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
100 Day Count
Governmental
Average Daily
Funds Operating
% Change
District Wide
Teaching
Pupil- Teacher
% of Free &
Fiscal Year Ended June 30
Membership
Expenditures
Cost per Pupil
Cost per Pupil
Expenses
Cost per Pupil
% Change
Staff
Ratio
Reduced Students
2022
1,476
$ 17,158,279
11,625
9.6%
17,603,260
11,926
4.6%
109
13.54
62.8%
2021
1,460
15,491,881
10,611
13.6%
16,651,639
11,405
17.4%
113
12.92
55.2%
2020
1,584
14,798,059
9,342
5.0%
15,391,413
9,717
8.2%
113
14.02
56.0%
2019
1,571
13,977,545
8,897
4.4%
14,112,021
8,983
-1.5%
123
12.77
55.3%
2018
1,579
13,458,347
8,523
0.3%
14,403,142
9,122
-3.5%
117
13.50
56.1%
2017
1,541
13,095,829
8,498
2.2%
14,561,901
9,450
4.5%
117
13.17
59.8%
2016
1,619
13,457,717
8,312
8.2%
14,643,387
9,045
9.6%
118
13.72
65.2%
2015
1,719
13,207,961
7,684
7.0%
14,182,854
8,251
6.6%
118
14.57
66.8%
2014
1,703
12,233,135
7,183
0.4%
13,182,536
7,741
-6.5%
116
14.68
59.1%
2013
1,544
11,041,812
7,151
10.5%
12,013,533
8,278
14.7%
107
14.43
64.2%
Source: District records.
65
GLOBE UNIFIED SCHOOL DISTRICT NO. 1
CAPITAL ASSET INFORMATION
LAST TEN FISCAL YEARS
Schools:
Elementary:
Buildings
Square feet
Capacity
Enrollment
High:
Buildings
Square feet
Capacity
Enrollment
Other:
Buildings
Square feet
Capacity
Enrollment
Administrative:
Buildings
Square feet
Transaortation:
Garages
Buses
Athletics:
Football fields
Running tracks
Baseball/softball
Playground
Source: District records.
Fiscal Year Ended June 30
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
14
14
14
14
14
14
14
14
14
14
146,752
146,752
146,752
146,752
146,752
146,752
146,752
146,752
146,752
146,752
1,612
1,612
1,612
1,612
1,612
1,612
1,612
1,612
1,612
1,612
1,024
1,024
1,048
1,048
1,222
1,222
1,222
1,222
1,117
1,130
14
14
14
14
14
14
14
14
14
14
145,141
145,141
145,141
145,141
145,141
145,141
145,141
145,141
145,141
145,141
1,074
1,074
1,074
1,074
1,074
1,074
1,074
1,074
1,074
1,074
559
559
574
574
579
579
579
579
506
453
3
3
3
3
3
3
3
3
3
3
33,075
33,075
33,075
33,075
33,075
33,075
33,075
33,075
33,075
33,075
374
374
374
374
374
374
374
374
374
374
9
9
9
9
9
9
9
9
9
9
11,815
11,815
11,815
11,815
11,815
11,815
11,815
11,815
11,815
11,815
2
2
2
2
2
2
2
2
2
2
15
15
15
15
15
15
15
15
15
15
2
2
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3