(This page was left blank intentionally) Area 4 Bryce Marshall Palmer MS Brandon Tinney Cooper MS Amber Tuck 7th Grade 8th Grade Area 3 Angela Su Dodgen MS Abigail Corona 8th Grade Area 3 Grace Snuggs Daniell MS Patricia Huynh Wheeler HS Gracie Williams Area 6 12th Grade Area 1 Area 2 Area 5 7th Grade 12th Grade 4th Grade Area 1 1st Grade Frey ES Mingo Rollins III Osborne HS Estefania De Los Santos Lindley MS Diego Magana Mata Area 4 Area 2 4th Grade 5th Grade Bryant ES Andrew Lee Murdock ES 3rd Grade Fair Oaks ES Area 5 Pitner ES Hunter Dunn Pine Mountain MS Area 3 8th Grade On behalf of the Cobb County Board of Education and the Financial Services Division, we are proud to present the 2012 Comprehensive Annual Financial Report. We hope you enjoy the exemplary artwork displayed on the cover and within the pages of this report. The artists, from kindergarten through grade 12, of the Cobb County School District, continue a long tradition of transforming a financial document into an art gallery. Their works of art reflect the extraordinary standards in art education that have become a hallmark of the District. Please take a moment and escape into their world - a world of objects, places, and people for you to see, wonder about, and enjoy. As Chief Financial Officer, along with the Financial Services Division, and particularly Steve Barnette and the Accounting Services staff, we would like to express our deep appreciation to the art teachers and Judy Condon, Supervisor of Art Education, for their passion and dedication to the art of teaching art. These works will become part of the District's art collection for many years to come. To the studentartist, thank you for turning our 2012 Comprehensive Annual Financial Report into a beautiful work of art. COBB COUNTY SCHOOL DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS FOR THE YEAR ENDED JUNE 30, 2012 INTRODUCTORY SECTION Letter of Transmittal Certificate of Achievement / GFOA Certificate of Excellence / ASBO Cobb County School District - Function and Composition Cobb County School District Elected Officials and Superintendent of Schools Cobb County School District - Superintendent's Cabinet Cobb County School District - Organizational Chart FINANCIAL SECTION Independent Auditor's Report Management's Discussion and Analysis Basic Financial Statements District-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets PAGE i-v vi vii viii ix x xi 1-3 4-15 16 17 18 19 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Non-GAAP Budgetary Basis) General Fund Statement of Fund Net Assets Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Assets and Liabilities Fiduciary Funds Notes to the Basic Financial Statements Combining and Individual Fund Financial Statements and Schedules: Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) Annually Budgeted Nonmajor Governmental Funds Internal Service Funds Fund Descriptions Combining Statement of Fund Net Assets - Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds PAGE 20 21 22 23 24 25 26 27-49 50-52 53-57 58-62 63-80 81 82-83 84-85 Combining Statement of Cash Flows - Internal Service Funds Fiduciary Funds Fund Descriptions Combining Statement of Fiduciary Assets and Liabilities Fiduciary Funds Combining Statement of Changes in Fiduciary Assets and Liabilities Fiduciary Funds Supplementary Schedules: SPLOST II - Special Purpose Local Option Sales Tax Projects SPLOST III - Special Purpose Local Option Sales Tax Projects STATISTICAL SECTION (UNAUDITED) Statistical Section Contents Net Assets by Component - Last Ten Fiscal Years Changes in Net Assets Last Ten Fiscal Years Fund Balances, Governmental Funds Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Property Tax Levies and Collections Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Principal Property Taxpayers December 31, 2010 and Nine Years Ago Legal Debt Margin Information Last Ten Fiscal Years PAGE 86-87 88 89 90 91-92 93-94 95 96-97 98-99 100-101 102-103 104 105 106 107 108 Legal Debt Margin Information Fiscal Year 2012 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Ratio of Net General Bonded Debt to Estimated Actual Value and Net Bonded Debt per Capita Last Ten Fiscal Years Computation of Direct and Overlapping General Obligation Debt Cobb County Demographic and Economic Statistics Last Ten Fiscal Years Principal Employers Current Year and Nine Years Ago Number of Personnel and Ratio of Pupils to Professional Personnel - Last Ten Fiscal Years Operating Statistics Last Ten Fiscal Years General Fund Expenditures by Function Last Ten Fiscal Years School Buildings Last Ten Fiscal Years School Lunch and Breakfast Program Last Ten Fiscal Years Teachers' Salary Schedule Last Twenty Fiscal Years General Fund Revenues by Source Last Ten Fiscal Years Property Digest Reductions Due to Exemptions Last Ten Fiscal Years Comparison of Metropolitan Atlanta School District Property Tax Rates Results of All Bond and Sales Tax Referendums Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Last Ten Fiscal Years Cobb County Bank Deposits, Construction and Taxable Property Values Last Ten Fiscal Years PAGE 109 110 111 112 113 114 115 116 117 118-125 126 127 128 129 130 131 132 133 Administrative Salary Schedule Schedule of Insurance in Force Number of Schools Last Twenty Fiscal Years Number of High School Graduates and Average Daily Enrollment and Attendance Last Twenty Fiscal Years Active Enrollment by Grade Level Last Ten Fiscal Years Classroom Buildings, Grade Levels and Acreage PAGE 134 135-136 137 138 139 140-141 (This page was left blank intentionally) Empowering Dreams for the Future P.O. Box 1088 Marietta, GA 30061 Telephone: (770) 426-3300 www.cobbk12.org December 6, 2012 To the Members of the Cobb County Board of Education and Citizens of Cobb County, Georgia: We are pleased to submit to you the comprehensive annual financial report (CAFR) of the Cobb County School District (District) for the fiscal year ended June 30, 2012. This report conforms to generally accepted accounting principles as applicable to governmental entities. The Financial Services Division prepared this report. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the District's administration and is presented for your careful review. We believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the District as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the District's financial activity have been included. A comprehensive framework of internal control is in place to give reasonable assurance that the financial statements are free of any material misstatements. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Readers of this report are encouraged to consider the information presented here in conjunction with additional information presented in the Management's Discussion and Analysis beginning on page four of this report. ______________________________________________________________________________ PROFILE OF THE SCHOOL DISTRICT ______________________________________________________________________________ Cobb County School District is one of two public school districts located in Cobb County, Georgia. The District serves the entire county area with the exception of the City of Marietta, which has its own independent school district. It provides a program of public education from kindergarten through grade twelve. The purpose and responsibility of the District is to provide a thorough and efficient educational system for the children enrolled in public schools within its BOARD OF EDUCATION Scott Sweeney, Chairman David Morgan, Vice Chairman Lynnda Eagle Timothy Stultz Kathleen Angelucci David Banks Alison Bartlett SUPERINTENDENT Michael Hinojosa, Ed.D boundaries whereby each child has access to programs and services that are appropriate to his or her educational needs. The District is the second largest school system in Georgia and the 24th largest in the United States with an average daily enrollment of 106,502. The District is governed by a Board of Education consisting of seven members elected from seven county posts. Members serve fouryear terms and each year appoint a chairperson and vice-chairperson. The Board appoints a Superintendent to oversee the day-to-day administration of the School District. Dr. Michael Hinojosa currently serves as the 24th Superintendent of the Cobb County School District. He holds a doctorate in education from the University of Texas at Austin. With a career in public education that spans more than three decades, Dr. Hinojosa's most recent experience is with the Dallas Independent School District in Texas, where he served as Superintendent/CEO. The Dallas Independent School District is the 14th largest school system in the United States. Dr. Hinojosa's recognitions include Texas Association of School Board's 2002 Superintendent of the Year and University of Texas at Austin's 2005 Superintendent of the Year. Texas Tech University's College of Education has honored Dr. Hinojosa as a Distinguished Alumnus. The District continued its tradition of strong academic achievement. Here are a few of the many accomplishments from FY2012: District eighth graders improved their writing test scores and continue to outperform their peers on the 2012 Eighth Grade Writing Assessment. Eighty-six percent of Cobb students ranked in either the "meets" or "exceeds" category, four points higher than the statewide percentage and equal to the metro comparison group. District fifth graders improved their writing test scores and continue to outperform their peers on the 2012 Eighth Grade Writing Assessment. Eighty-four percent of Cobb students ranked in either the "meets" or "exceeds" category, four points higher than the statewide percentage and equal to the metro comparison group. District graduates topped national averages in all subject areas of ACT, indicating the Class of 2012 was better prepared for the rigor of college studies than their peers across the state or nation. The results mark the seventh consecutive year in which Cobb graduates have bested national averages in all four subject areas tested: English, Math, Reading and Science. District graduates continued to exceed state and national averages for the SAT. The Class of 2012 remained well above average for the state of Georgia and the nation, despite a 2-point decrease from last year. Seniors in the class of 2012 posted an overall score of 1520 (combined Reading, Math and Writing totals), besting their statewide peers' average by 68 points and the national average by 22 points. More details can be obtained through the District's Communications Department. The District has reviewed its operating entity definition in order to ensure conformance with the Governmental Accounting Standards Board Statement No. 14, "The Financial Reporting Entity." ii This report includes all funds and account groups of the District. The District is not included in any other reporting entity, and no other entities are included within this report. The District maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Cobb County Board of Education. Activities of the General Fund, Special Revenue Funds and Student Information Systems are included in the annual appropriated budget. Capital Projects Funds are budgeted on a multi-year, projectlength basis. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function within an individual fund. _____________________________________________________________________________ ECONOMIC CONDITION AND OUTLOOK ______________________________________________________________________________ The District is located in the northwest quadrant of the Atlanta metropolitan area, one of the country's top growth areas. Metropolitan Atlanta is a national center for finance, transportation, distribution and communications. These factors, coupled with a mild climate, beautiful natural environment, affordable housing and a first-class international airport help to consistently place Atlanta at or near the top of surveys identifying the most desirable U. S. cities in which to locate a business. Cobb County is a leader among the metropolitan counties in all economic areas. In fiscal year 2011 (most recent figures available), Cobb County had one of the metropolitan area's highest average household incomes at $57,906, an unemployment rate of 8.9%, and a growing population which increased from 628,800 in 2002 to 699,500 in 2011. Projected student enrollment for the 2013 fiscal year is 106,591. In fiscal year 2012 the District's gross property digest decreased by 5.7% over the 2011 digest as compared to a decrease of 8.6% the previous year and a total decrease of 10.7% over the last five years. This was a reflection of the nationwide erosion of real estate values during the recent economic downturn. In addition to a decline in property tax revenue, the District encountered financial challenges during fiscal year 2012 due to $72.4 million austerity cuts in state funding. We expect continuing challenges in the future due to continued cuts in state funding resulting from depressed state tax revenues, as well as lower property tax revenue due to continuing depressed real estate values. ______________________________________________________________________________ LONG-TERM FINANCIAL PLANNING ______________________________________________________________________________ The District anticipates meeting its projected capital improvement needs through December 2013 through county sales tax revenues. In September 2008, the citizens of Cobb County voted to renew a one-percent local option sales tax for education over a period of five years beginning January 1, 2009 and ending December 31, 2013. The revenue generated from sales tax has been iii or will be used to construct new schools, improve existing schools, construct major additions to many schools, improve technology and security throughout the District and acquire land for future expansion. A schedule of District school buildings and their age can be found on pages 140 and 141, in the statistical section. _____________________________________________________________________________ OTHER INFORMATION ______________________________________________________________________________ Independent Audit: The financial statements have been audited by Mauldin & Jenkins, LLC, whose opinion is expressed on page 1. The District complies with the requirements of the Single Audit Act and associated reports and schedules are presented in the last section of this report. Financial Reporting Awards: Every year since 1980, our comprehensive annual financial report has earned a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association of the United States and Canada (GFOA). Additionally, the District's comprehensive annual financial report received the Association of School Business Officials' (ASBO) Certificate of Excellence in Financial Reporting every year since 1984. These prestigious awards are made only to government units which publish a comprehensive annual financial report that is easily readable, efficiently organized, and conforming to program standards and satisfies generally accepted accounting principles and applicable legal requirements. The awards are valid for a period of one year only. We believe the accompanying report continues to conform to award eligibility, and will submit it for determination as appropriate. Budget Presentation Award: The District prepares an official budget document each year which is issued as a separate report. Since 1990, the district has received the Distinguished Budget Presentation Award from GFOA. In order to receive this award, the District must publish a budget document that meets program criteria as a policy document, a financial plan, an operations guide, and as a communications device. The award is valid for a period of one year only. We have received the Meritorious Budget Award from ASBO every year since 2005. The criteria required by ASBO includes an introductory, organizational, financial and information section. We believe the most recent budget continues to conform to program requirements, and we are submitting it to GFOA and ASBO to determine its eligibility for another award. Acknowledgments: We wish to express our appreciation to Steve Barnette, Director of Accounting Services, and to the entire staff of the Financial Services Division whose dedicated efforts have enabled this report to be prepared on a timely basis. We would especially like to recognize the students of our District for providing the beautiful artwork for our Comprehensive Annual Financial Report. iv The active involvement and professional support of Mauldin & Jenkins, LLC Audit Supervisor, Christopher McKellar and his auditing staff have been instrumental in the prompt completion of the associated audit of this report . In closing, sincere gratitude is expressed to the Board of Education for their leadership and dedication to the Cobb County School District, its taxpayers, employees, and , most importantly, its students. To the citizens of the Cobb County School District, please accept our gratitude for your support of our successful school district. Respectfully submitted, Dr. . ael Hinojosa Superintendent Brad R. Johnson Chief Financial Officer ~ v Certificate of Achievement for Excellence in Financial Reporting Presented to Cobb County School District Georgia For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~bP~ President ~~~ Executive Director vi Association of School Business Officials International fJ1ie Certificate of~etlence in Pinancia[~ortiTlfJ }lwan[ is presented to Cobb County School District PorIts Comprehensive }lnnua[Pinancia[~ort (ClIPW) Portlie Pisca[%arfEtul"eaJune 3D, 2011 The CAFR has been reviewed and met or exceeded ASBO International's Certificate of Excellence standards Brian L. Mee, SFO, RSBA President John D. Musso, CAE, RSBA Executive Director vii COBB COUNTY SCHOOL DISTRICT FUNCTION AND COMPOSITION JUNE 30, 2012 All matters relating to education and operations in the Cobb County School District are governed and controlled by the Board of Education as provided by Georgia law. The Board has the responsibility to maintain a uniform system of public schools providing quality education for all young people of Cobb County. With the advice of the superintendent, the Board must determine the policies and prescribe the rules and regulations for the management and administration of the school system. Generally, the Board holds public meetings twice a month to conduct normal business with special sessions as needed. The Board is composed of seven members who are each elected for four years from one of seven geographical districts in the county. The Board elects a chairman and vice-chairman from the seven members to govern the body for a one year period. As of June 30, 2012 the members of the Board and years of expiration of their terms are as follows: Title Chair Vice-Chair Board Member Board Member Board Member Board Member Board Member Name Mr. Scott Sweeney Mr. David Morgan Mr. Tim Stultz Ms. Kathleen Angelucci Ms. Alison Bartlett Mr. David Banks Ms. Lynnda-Crowder Eagle Term Expires December 31, 2014 December 31, 2012 December 31, 2014 December 31, 2014 December 31, 2012 December 31, 2012 December 31, 2012 viii COBB COUNTY SCHOOL DISTRICT ELECTED OFFICIALS AND SUPERINTENDENT OF SCHOOLS JUNE 30, 2012 LYNNDA CROWDER-EAGLE POST 1 4 Years Served TIM STULTZ POST 2 2 Years Served DAVID MORGAN POST 3 4 Years Served KATHLEEN ANGELUCCI POST 4 2 Years Served DAVID BANKS POST 5 4 Years Served SCOTT SWEENEY POST 6 2 Years Served ALISON BARTLETT POST 7 4 Years Served ix MICHAEL HINOJOSA SUPERINTENDENT COBB COUNTY SCHOOL DISTRICT SUPERINTENDENT'S CABINET JUNE 30, 2012 Michael Hinojosa Alice Stouder Chris Ragsdale Cheryl Hungerford Mike Addison Judi Jones Michael Shanahan Jay Dillon Amy Krause Carol Seay Rob Benson Dale Gaddis Doreen Griffeth Ed Thayer James Carter Angela Huff Superintendent Deputy Superintendent for Leadership and Learning Deputy Superintendent for Operations Chief of Staff Chief Financial Officer Chief Academic Officer Chief Human Resources Officer Director of Communications Assistant Superintendent, Curriculum and Instruction Assistant Superintendent, Special Student Services Area Assistant Superintendent, Area 1 Area Assistant Superintendent, Area 2 Area Assistant Superintendent, Area 3 Area Assistant Superintendent, Area 4 Area Assistant Superintendent, Area 5 Area Assistant Superintendent, Area 6 x COBB COUNTY SCHOOL DISTRICT ORGANIZATIONAL CHART JUNE 30, 2012 xi (This page was left blank intentionally) jIm6er cruel( Prey Elementary (This page was left blank intentionally) INDEPENDENT AUDITOR'S REPORT To the Superintendent and Members of the Cobb County Board of Education Marietta, Georgia We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Cobb County Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Cobb County Board of Education's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Cobb County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Cobb County Board of Education as of June 30, 2012, and the respective changes in financial position, and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2012, on our consideration of the Cobb County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages 4 through 15 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Cobb County Board of Education's financial statements. The combining and individual nonmajor fund financial statements and schedules, the SPLOST II schedule of expenditures of Special Purpose Local Option Sales Tax Projects, and the SPLOST III schedule of expenditures of Special Purpose Local Option Sales Tax Projects, are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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, the SPLOST II schedule of expenditures of Special Purpose Local Option Sales Tax Projects, and the SPLOST III schedule of expenditures of Special Purpose Local Option Sales Tax Projects, are fairly stated in all material respects in relation to the financial statements as a whole. 2 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Cobb County Board of Education's basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Atlanta, Georgia December 6, 2012 3 (This page was left blank intentionally) MANAGEMENT'S DISCUSSION AND ANALYSIS (This page was left blank intentionally) COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 The discussion and analysis of the Cobb County School District's (subsequently referred to as the District) financial performance provides an overall review of the District's financial activities for the fiscal year ended June 30, 2012. The intent of this discussion and analysis is to look at the District's financial performance as a whole. Readers should also review the transmittal letter and complete financial statements, with notes, to enhance their understanding of the District's financial performance. Financial Highlights Key financial highlights for 2012 are as follows: Total net assets increased from $1,423.5 million in 2011 to $1,454.7 million in 2012, an increase of $31.2 million. Total revenue decreased from $1,122.1 million in 2011 to $1,105.3 million in 2012, a decrease of $16.8 million. Revenue for 2012 was $31.2 million more than expenses. Total expenses increased from $1,050.4 million in 2011 to $1,074.1 million in 2012, an increase of $23.7 million. Overview of the Financial Statements This discussion and analysis serves as an introduction to the District's basic financial statements. The basic financial statements comprise three components: 1) District-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Districtwide Financial Statements The District-wide financial statements provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. 4 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 The Statement of Activities presents information showing how the District's net assets changed during the most recent fiscal year. Changes in net assets appear as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses appear in this statement for some items that will result in future fiscal period cash flows (e.g., uncollected taxes and earned but unused vacation leave). Fund Financial Statements A fund is a grouping of related accounts 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 financerelated legal requirements. District funds are in one of three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Most of the District's activities are reported in governmental funds. The governmental fund statements focus on how money flows in and out of those funds and the balances left at year-end that are available for spending in future periods. These statements also provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The District maintains numerous governmental funds with the majority of activity occurring in the General Fund. Proprietary Funds Proprietary funds are those used to account for ongoing organizations and activities which are similar to those found in the private sector. The District's proprietary funds are internal service funds and report activities that provide supplies and services for its other programs and activities. The District's internal service funds consist of the Unemployment Compensation Fund, the Self-Insurance Fund, the Flexible Benefits Fund, the Dental Insurance Fund, and the Purchasing/Warehouse Fund. Fiduciary Funds The District is the trustee, or fiduciary, for assets that belong to others. The District's fiduciary funds include the Student Activity Fund and the Payroll Withholding Fund. The District is responsible for ensuring that the assets in these funds are used exclusively for their intended purposes for the benefit of those to whom the assets belong. The District excludes these funds from the district-wide financial statements because it cannot use these assets to finance its operations. 5 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 District-wide Financial Analysis The Condensed Statement of Net Assets Table (Table I) below summarizes and compares the Statement of Net Assets for 2012 and 2011. In 2012, the District's net assets increased 2.2%, or $31.2 million, over the prior year due primarily to a decrease in other liabilities. Total current and other assets reflected a net decrease of 30.3%, or $147.0 million, primarily due to a decrease in total cash and cash equivalents of 14.7%, or $145.6 million. Cash and cash equivalents decreased in the General Fund, Special Purpose Local Option Sales Tax (SPLOST) Funds, and the other governmental funds by $13.1 million, $112.5 million, $20.0 million, respectfully. Total receivables declined by $1.7 million, while inventories increased by $0.4 million. Capital assets increased by 10.3%, or $115.1 million, while total liabilities decreased by 35.5%, or $63.1 million, resulting in a modest increase in net capital assets. Construction was completed on two new elementary schools and a loan of $62.0 million, used to fund capital asset construction projects, was paid off. 6 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Table I Condensed Statement of Net Assets (Amounts Expressed In Millions) $76.3 $147.5 $12.2 $102.2 $1,230.9 Long-Term Liabilities Restricted Other Liabilities Unrestricted Invested in Capital Assets Governmental Activities As s e ts : Current and Other Assets Capital Assets Total Asse ts Liabilitie s : Long-Term Liabilities Other Liabilities Total Liabilities Net Asse ts: Invested in Capital Assets Restricted Unrestricted Total Net Assets 2011 2012 Change 2011-2012 $ 485.3 1,115.7 1,601.0 $ 338.3 1,230.8 1,569.1 -30.3% 10.3% -2.0% 7.7 169.8 177.5 12.2 102.2 114.4 58.4% -39.8% -35.5% 1,066.6 185.3 171.6 $ 1,423.5 1,230.9 76.3 147.5 $ 1,454.7 15.4% -58.8% -14.0% 2.2% 7 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Changes in Net Assets from Operating Results The Changes in Net Assets from Operating Results Table (Table II) below summarizes and compares the Statement of Activities for 2012 and 2011. Revenues In 2012, the District's total revenues decreased 1.5%, or $16.8 million, over the prior year due primarily to a decrease in operating grants and contributions. Charges for services increased by 2.1%, or $1.2 million primarily due to a modest increase in student activity fee revenue. Operating grants and contributions decreased by 7.6%, or $39.4 million, primarily due to an instructional revenue decrease of 9.6%, or $39.7 million. General property taxes decreased 4.2%, or $17.7 million, due to the reduction of property values and an increase in property foreclosures. All other revenue sources increased by 17.9%, or $1.0 million. Expenses In 2012, the District's total expenses increased 2.3%, or $23.7 million, over the prior year due primarily to an increase in the cost of providing school and administrative services. School and administrative services increased 15.5%, or $23.6 million. Maintenance and operations increased 6.2%, or $3.5 million. Student transportation increased 2.5%, or $1.1 million due to increased fuel costs. Instruction decreased by 1.1%, or $7.5 million. 8 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Table II Changes in Net Assets from Operating Results (Amounts Expressed In Millions) $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Revenues 2011 2012 Governmental Activities Revenues: Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes Intergovernmental Other Total Revenues Expenses: Instruction Pupil and Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Interest and Fiscal Charges Total Expenses Increase in Net Assets Beginning Net Assets Ending Net Assets Other Intergovernmental Taxes Capital Grants Operating Grants Charges for Services $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Expenses 2011 2011 2012 Interest & Fiscal Chrg Student Activites Maintenance Transportation School & Admin Serv Pupil & Instr Serv Instruction Change 2012 2011-2012 $ 58.2 $ 59.4 518.3 478.9 1.1 30.8 537.4 1.5 5.6 1,122.1 528.5 1.1 6.6 1,105.3 689.7 79.4 152.1 43.6 56.6 28.9 0.1 1,050.4 682.2 81.5 175.7 44.7 60.1 29.8 0.1 1,074.1 71.7 1,351.8 31.2 1,423.5 $ 1,423.5 $ 1,454.7 2.1% -7.6% 2700.0% -1.7% -26.7% 17.9% -1.5% -1.1% 2.6% 15.5% 2.5% 6.2% 3.1% 2.3% -56.5% 5.3% 2.2% 9 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Table III Net Cost of Governmental Activities (Amounts Expressed In Millions) Total and Net Costs of Services - 2012 $700 $600 $500 $400 $300 $200 $100 $0 Instruction Pupil/Instr Service Sch/Adm Service Transp Maint/Oper Other Net Cost Total Cost --Total Cost of Services-- Change 2011 2012 2011-2012 --Net Cost of Services-- Change 2011 2012 2011-2012 Instruction $ 689.7 $ 682.2 Pupil and Instructional Services 79.4 81.5 School and Administrative Services 152.1 175.7 Student Transportation 43.6 44.7 Maintenance and Operations 56.6 60.1 Other 29.0 29.9 Total $ 1,050.4 $ 1,074.1 -1.1% $ 235.6 $ 241.5 2.6% 47.3 50.6 15.5% 96.0 114.5 2.5% 37.9 39.0 6.2% 55.7 59.2 3.1% 0.3 0.2 2.3% $ 472.8 $ 505.0 2.5% 7.0% 19.3% 2.9% 6.3% -33.3% 6.8% Governmental Activities The Net Cost of Governmental Activities Table (Table III) presents the total and net cost of six major District activities: Instruction, Pupil and Instructional Services, School and Administrative Services, Student Transportation, Maintenance and Operations, and other. Net Cost of Services is the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost shows the financial burden on the District's taxpayers by each activity. The total cost of governmental services in 2012 was $1,074.1 million. Users of the District's programs financed $59.4 million of the costs. Federal and State grants, subsidized programs and contributions financed $509.7 million of the cost. District taxpayers financed the remaining costs of 2012 which totaled $505.0 million. 10 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 The School District's Funds The District ended fiscal year 2012 with a healthy fund balance in its governmental funds. The combined balance of all governmental funds, at $228.1 million, was lower than 2011's ending balance of $307.4 million. The decline in fund balance of $79.4 million, or 25.8%, was driven by capital outlays. SPLOST III, SPLOST II, and County-Wide Building declined by $30.1 million, $28.1 million, and $7.1 million, respectively. The General Fund's fund balance declined by $13.1 million, or 8.9%. This decline was forecasted in the FY2012 Budget. Despite continued cuts in state funding, the District maintains a strong cash position from which to meet future financial obligations. General Fund Budgetary Highlights The 2012 budget balanced the challenges of student growth, lower student/teacher ratios, and reductions in state funding for education, while maintaining an adequate fund balance reserve to ensure financial stability. The most significant fund for the District is the General Fund, funded primarily through state revenue and local property tax revenue. The State of Georgia is required to maintain a balanced budget (a constitutional requirement in Georgia) and with a challenging economy, the State of Georgia issued budget reductions to all school districts in Georgia. In addition to its regular budgetary cycle, the State of Georgia imposed austerity reductions of $85.9 million, $69.8 million, and $72.4 million in fiscal years 2010, 2011, and 2012 respectively. The 2012 original budget for the General Fund was approved with $817.3 million in revenue and $851.8 million in expenditures, with the expectation of using $34.5 million in fund balance in order to balance the budget. During the course of the year, the board increased the expenditures of the General Fund budget to $863.6 million, in order to bring forward amounts for encumbrances from the prior year budget into the current year budget. For 2012, actual General Fund revenue was $9.5 million more than the final revised budget, a variance of only 1.2%. General Fund expenditures were $23.8 million less than the final revised budget, a variance of only 2.8%. The ability to budget within such a low variance to actual is the result of careful examination of revenue and expense assumptions and trending data. The district's careful implementation of significant spending cuts and service reductions over the past several years, along with prudent management of federal, state, and local resources, have left the district in a better financial position than many had anticipated in this difficult economic climate. 11 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 General Fund Balance The unassigned General Fund balance at June 30, 2012 was $98.6 million. This represents 43 days of general fund expenditures. The Board of Education made a concerted effort to maintain adequate reserves for the District. This performance is noteworthy when considered in light of the substantial reductions in state and local funding detailed in the above section. Other Governmental Funds Capital Projects Funds The District uses Capital Projects Funds to account for school construction and improvement projects which, prior to 1999, were financed primarily through bond issues. In September of 2003, Cobb County voters overwhelmingly approved a five-year extension of a Special Purpose Local Option Sales Tax (SPLOST) II to finance construction of new schools and other capital projects. SPLOST II expired in December 2008. In September of 2008, voters again approved another five-year extension. SPLOST III focuses on revitalizing schools. Collections of the tax began on January 1, 2009. The SPLOST II fund had expenditures of $6.0 million for the year ended June 30, 2012 and a fund balance of $22.9 million. A full listing of remaining SPLOST II projects can be located on pages 91 - 92. The Board of Education will continue to address contingencies in 2012. The SPLOST III fund had expenditures of $183.4 million and a fund balance of $33.2 million. A full listing of SPLOST III projects can be located on pages 93 - 94. Nonmajor Governmental Funds The Nonmajor Governmental Funds had aggregate expenditures of $163.6 million and aggregate fund balances of $61.4 million. Funds with the highest expenditures were School Nutrition at $51.8 million, Special Education at $22.7 million, Title I at $18.5 million, and Local School Funds at $29.8 million. Funds ending the year with the highest fund balances were SPLOST II at $22.9 million, School Nutrition at $21.9 million, Local School Funds at $8.0 million, and District-Wide Building at $4.0 million. The fund balance of Nonmajor Governmental Funds, in aggregate, decreased from $97.6 million in 2011 to $61.5 million in 2012, a decrease of $36.1 million. This decrease was primarily due to the continued expending of SPLOST II and District-wide Building Fund outlays for capital projects. Descriptions of these funds can be located on page 50 of the Notes to the Basic Financial Statements. 12 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Capital Assets and Debt Administration Capital Assets The Capital Assets, Net of Depreciation (Table IV) below summarizes and compares the capital assets for 2012 and 2011. Capital assets increased 10.3% from $1,115.7 million in 2011 to $1,230.9 million in 2012, an increase of $115.2 million. Buildings and Improvements increased by $105.0 million, or 12.2%, due to construction projects funded by SPLOST III. Equipment increased by 2.9 million, or 11.5%. Library books and textbooks decreased by $1.9 million, or 7.2%. More detailed information about capital assets can be found in Note 5 of the Notes to the Basic Financial Statements. 13 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Table IV Capital Assets, Net of Depreciation (Amounts Expressed In Millions) Capital Assets, Net - 2012 $28.2 $24.5 $115.0 $99.0 $964.2 Land Construction in Progress Buildings and Improvements Equipment Library Books and Textbooks Total Land Construction in Progress Buildings and Improvements Equipment Library Books and Textbooks 2011 2012 Change 2011-2012 $ 106.9 $ 115.0 97.9 859.2 99.0 964.2 25.3 28.2 26.4 24.5 $ 1,115.7 $ 1,230.9 7.6% 1.1% 12.2% 11.5% -7.2% 10.3% 14 COBB COUNTY SCHOOL DISTRICT Management's Discussion and Analysis JUNE 30, 2012 Long-Term Obligations As of June 30, 2012, the District had $7.7 million in outstanding long-term obligations for compensated absences. More detailed information about long-term obligations can be found in Notes 10 and 13 of the Notes to the Basic Financial Statements. Factors Bearing on the District's Future We are fortunate that the Cobb County School District is debt free which has resulted in a more favorable financial position even with the impact of the global economy on our local economy. The continued support of our schools by the public and by local community organizations and businesses is also an integral part of our ability to educate our students. This financial report is designed to provide a general overview of Cobb County School District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Financial Services Division, Cobb County School District, 440 Glover Street, Marietta, Georgia, 30060. 15 COBB COUNTY SCHOOL DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2012 (amounts expressed in thousands) ASSETS: Cash and Cash Equivalents Receivables (net of allowance for uncollectables): Taxes Federal and State Aid Accounts Accrued Interest Prepaids Inventories Capital Assets: Land Construction in Progress Buildings and Improvements Equipment Library Books and Textbooks Less: Accumulated Depreciation Total Assets LIABILITIES: Accounts Payable and Other Current Liabilities Accrued Salaries and Benefits Unearned Revenue Noncurrent Liabilities: Due Within One Year Due In More Than One Year Total Liabilities NET ASSETS: Invested in Capital Assets, Net of Related Debt Restricted for: Special Purpose Local Option Sales Tax II Special Purpose Local Option Sales Tax III Food Nutrition Services Unrestricted Total Net Assets Governmental Activities $ 246,666 22,064 65,802 1,476 1 10 2,288 114,970 99,033 1,529,315 112,657 96,591 (721,713) $ 1,569,160 37,132 64,569 602 2,904 9,262 114,469 1,230,853 22,933 33,222 20,200 147,483 $ 1,454,691 See accompanying notes to the basic financial statements. 16 COBB COUNTY SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) GOVERNMENTAL ACTIVITIES Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Interest & Fiscal Charges Total Governmental Activities Expenses $ 682,212 30,031 51,475 175,717 44,698 60,143 29,746 118 $ 1,074,140 Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions $ 1,068 $ 412,131 $ 27,525 11 26,498 612 - 2,592 1,223 27,921 32,028 1,223 - 5,688 - 983 - - 29,402 - - - - 249 $ 59,385 $ 478,937 $ 30,832 Net (Expense) Revenue and Changes in Net Assets $ (241,488) $ (2,910) $ (47,660) $ (114,545) $ (39,010) $ (59,160) $ (344) $ 131 $ (504,986) General Revenues: Taxes: Property Taxes Levied for General Purposes Sales Tax Intergovernmental Interest Income Other Gain on Sale of Asset Total General Revenues 405,965 122,557 1,079 2,076 4,015 516 536,208 Change in Net Assets 31,222 Net Assets-Beginning of Year 1,423,469 Net Assets-End of Year $ 1,454,691 See accompanying notes to the basic financial statements. 17 COBB COUNTY SCHOOL DISTRICT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 (amounts expressed in thousands) General Assets: Cash and Cash Equivalents $ 136,253 Receivables (net of allowance for uncollectables): Taxes 11,567 Federal and State Aid 58,277 Accounts 960 Accrued Interest 1 Due from Other Funds 2,811 Inventories 353 Total Assets $ 210,222 Special Purpose Local Option Sales Tax III Nonmajor Governmental Funds Total Governmental Funds $ 50,780 $ 59,633 $ 246,666 10,485 12 22,064 - 7,525 65,802 - 516 1,476 - - 1 - 4,476 7,287 - 1,706 2,059 $ 61,265 $ 73,868 $ 345,355 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable $ 4,421 $ Accrued Payroll and Payroll Withholdings 43,801 Accrued Employee Benefits 14,304 Due to Other Funds 11,987 Deferred Revenue 2,323 Total Liabilities 76,836 28,043 $ - 28,043 2,529 $ 4,913 1,526 2,811 630 34,993 48,714 15,830 14,798 2,953 12,409 117,288 Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances 353 - 34,396 98,637 133,386 $ 210,222 $ 33,222 - 33,222 61,265 $ 1,706 43,133 11,883 4,737 - 2,059 76,355 11,883 39,133 98,637 61,459 228,067 73,868 $ 345,355 See accompanying notes to the basic financial statements. 18 COBB COUNTY SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 (amounts expressed in thousands) Total Fund Balances-Governmental Funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Cost of capital assets Accumulated depreciation Property taxes receivable will be collected after year-end, but are not available to pay for current period's expenditures, and therefore are deferred in the funds. Internal service funds are used by management to charge the costs of insurance, purchasing and warehouse services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Long-term liabilities are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Compensated absences Total Net Assets-Governmental Activities $ 228,067 1,952,566 (721,713) 1,230,853 2,351 1,165 (7,745) $ (7,745) 1,454,691 See accompanying notes to the basic financial statements. 19 COBB COUNTY SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Taxes Intergovernmental Tuition and Fees Interest Income Rentals Athletic Ticket Sales Other Total Revenues General Special Purpose Nonmajor Total Local Option Governmental Governmental Sales Tax III Funds Funds $ 408,123 391,997 13 1,981 526 553 803,193 $ 122,557 30,584 184 - 153,325 $ 6 88,001 55,435 160 - 3,410 3,463 150,475 $ 530,686 510,582 55,448 2,325 526 3,410 4,016 1,106,993 EXPENDITURES: Current: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Interest & Fiscal Charges Capital Outlay Total Expenditures 602,945 17,330 38,717 78,172 37,876 55,361 9,214 839,615 26,088 118 157,241 183,447 31,385 8,410 10,983 65,275 3,593 1,153 29,746 13,035 163,580 634,330 25,740 49,700 169,535 41,469 56,514 29,746 118 179,490 1,186,642 Excess (deficiency) of Revenues Over (Under) Expenditures (36,422) (30,122) (13,105) (79,649) Other Financing Sources (Uses): Transfers-In Transfers-Out Proceeds from Sale of Capital Assets Total Other Financing Sources (Uses) 24,002 (1,422) 785 23,365 - 928 24,930 - (24,002) (25,424) - 2 787 - (23,072) 293 Net Change in Fund Balances (13,057) (30,122) (36,177) (79,356) Fund Balances, Beginning of Year 146,443 63,344 97,636 307,423 Fund Balances, End of Year $ 133,386 $ 33,222 $ 61,459 $ 228,067 See accompanying notes to the basic financial statements. 20 COBB COUNTY SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) Total Net Change in Fund Balances-Governmental Funds Amounts reported for governmental activities in the statement of activities are different because: Capital assets are reported as expenditures in governmental funds. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Capital outlay Non-capitalized items Depreciation expense Because some property taxes will not be collected for several months after the fiscal year ends, they are not considered as "available" revenues in the governmental funds, and are instead counted as deferred revenues. The net effect of various miscellaneous transactions involving capital assets (i.e., sales) is to decrease net assets. Internal service funds are used by management to charge the costs of insurance, purchasing and warehouse services to individual funds. The net revenue of the internal service funds is reported with governmental activities. Some items reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. This activity consists of the increase in compensated absences. Change in Net Assets of Governmental Activities $ (79,356) 179,490 (3,602) (60,510) 115,378 (2,146) (272) (2,370) (12) $ 31,222 See accompanying notes to the basic financial statements. 21 COBB COUNTY SCHOOL DISTRICT GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local State Federal Other Total Revenues Budgeted Amounts Original Final Actual Amounts Variance With Final Budget - Positive (Negative) $ 403,626 $ 383,473 6,172 24,069 817,340 403,626 $ 383,473 6,172 24,069 817,340 411,182 $ 385,336 5,541 24,801 826,860 7,556 1,863 (631) 732 9,520 EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Services Maintenance and Operation of Plant Student Transportation Central Operations Community Service Operations Capital Outlay Other Total Expenditures 609,832 18,340 25,203 14,675 6,214 50,809 5,846 59,793 44,073 14,555 71 18 2,365 851,794 612,085 18,842 27,231 14,697 6,993 50,863 5,406 60,689 45,735 18,600 71 18 2,365 863,595 603,039 17,305 24,956 14,563 6,718 51,925 4,773 55,672 42,636 15,895 66 4 2,365 839,917 9,046 1,537 2,275 134 275 (1,062) 633 5,017 3,099 2,705 5 14 - 23,678 Net Change in Fund Balance Fund Balance, Beginning of Year (34,454) 146,443 (46,255) 146,443 (13,057) 146,443 33,198 - Fund Balance, End of Year $ 111,989 $ 100,188 $ 133,386 $ 33,198 See accompanying notes to the basic financial statements. 22 COBB COUNTY SCHOOL DISTRICT STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 (amounts expressed in thousands) Assets: Current Assets: Due from Other Funds Inventories Prepaids Total Current Assets Liabilities: Current Liabilities: Accounts Payable Claims Payable Accrued Payroll and Payroll Withholdings Accrued Employee Benefits Total Current Liabilities Noncurrent Liabilities: Claims payable, due in more than one year Net Assets: Unrestricted Governmental Activities Internal Service Funds $ 7,511 229 10 7,750 251 1,888 22 3 2,164 4,421 $ 1,165 See accompanying notes to the basic financial statements. 23 COBB COUNTY SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) Governmental Activities OPERATING REVENUES: Charges for Services Internal Service Funds $ 8,163 OPERATING EXPENSES: School and Administrative Services 11,027 Operating Loss (2,864) Transfers-In Transfers-Out 4,094 (3,600) Change in Net Assets (2,370) Total Net Assets, Beginning of Year 3,535 Total Net Assets, End of Year $ 1,165 See accompanying notes to the basic financial statements. 24 COBB COUNTY SCHOOL DISTRICT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) Cash Flows from Operating Activities: Receipts from Interfund Services Provided Payments to Suppliers Payments for Medical Fees and Insurance Claims Payments to Employees Net Cash Used in Operating Activities Cash Flows from Noncapital Financing Activities: Transfers-In Transfers-Out Net Cash Provided by Noncapital Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Governmental Activities Internal Service Funds $ 10,244 (518) (8,580) (1,640) (494) 4,094 (3,600) 494 - $ - Reconciliation of Operating (Loss) to Net Cash Used in Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating (Loss) to Net Cash Used in Operating Activities: Decrease in Due From Other Funds Decrease in Inventories Increase in Prepaids Increase in Claims Payable Decrease in Accounts Payable Increase in Accrued Payroll and Payroll Withholdings Decrease in Due To Other Funds Total Adjustments $ (2,864) 2,091 14 (10) 397 (111) 2 (13) 2,370 Net Cash Used in Operating Activities $ (494) See accompanying notes to the basic financial statements. 25 COBB COUNTY SCHOOL DISTRICT STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2012 (amounts expressed in thousands) Assets: Cash and Cash Equivalents Total Assets Liabilities: Due to Student Groups Payroll Withholdings Payable Total Liabilities Agency Funds $ 27,361 $ 27,361 $ 1,207 26,154 $ 27,361 See accompanying notes to the basic financial statements. 26 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. Reporting Entity: The Cobb County School District (District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters of Cobb County and has a superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the District is a primary government and consists of all the organizations that compose its legal entity. A 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 of a primary government in conformity with generally accepted accounting principles. Based on the guidance of the Governmental Accounting Standards Board (GASB) Statements 14 and 39, 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. B. Basis of Presentation: The District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and the notes to the basic financial statements of the Cobb County School District. District-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the District's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the District related to the administration and support of the District's programs, such as office and maintenance personnel and accounting) are not allocated to programs, except for federal indirect costs allocated to federal grant programs. 27 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the District's funds, including fiduciary funds. Separate statements for each category (governmental, proprietary and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The District reports the following major governmental funds: General Fund is the District's primary operating fund. It accounts for all financial resources of the District, except those resources required to be accounted for in another fund. Special Purpose Local Option Sales Tax III Fund (SPLOST III) account for sales tax proceeds required to be used for capital outlay for educational purposes as authorized by local referendum. Additionally, the District reports the following fund types: Special revenue funds account for restricted or committed specific revenues and their related expenditures. Revenues for the District include various federal and state grants, donations to the District, rental of District facilities, charges for afterschool programs, adult high school, and performing arts. Capital project funds account for restricted and assigned revenues and related capital expenditures. The expenditures are used for capital outlays for educational purposes as authorized by local referendum and management's decision. Internal service funds (proprietary funds) account for insurance, benefits, unemployment compensation, and purchasing/warehouse services provided to other funds of the District on a cost reimbursement basis. Fiduciary funds (agency funds) account for assets and liabilities held by the District as an agent for various governments or individuals on the accrual basis of accounting. Specifically, the District temporarily holds assets for numerous school student activity organizations and payroll withholdings. 28 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting/Measurement Focus: The basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental activities and proprietary fund 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 at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Agency funds report only assets and liabilities and, accordingly, do not have a measurement focus. The District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all non-grant revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes, intergovernmental and interest are considered to be subject to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. The State of Georgia reimburses the District for teachers' salaries and operating costs through the Quality Basic Education (QBE) Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally teachers are contracted for the school year (July 1 June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the requirements of the 29 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) enabling legislation of the QBE program, the State of Georgia reimburses the District over the same twelve month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board (GASB) Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. Under the terms of grant agreements, the District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing services. Operating revenues in the internal service funds are charges to customers for services. Operating expenses for internal service funds consist of the cost of services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. Cash and Cash Equivalents: The District's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Law OCGA 45-8-14 authorizes the District to deposit its funds in one or more solvent banks or insured Federal savings and loans associations. E. Investments: Included in cash equivalents are items such as deposits with the Georgia local government investment pool, certificates of deposit and money market accounts. All of the District's investments as of June 30, 2012, were purchased with a maturity date less than one year from the date of purchase. These investments are stated at fair value. 30 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments made by the District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other States, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State Treasurer of the State of Georgia. (7) Repurchase agreements, and, (8) Obligations of other political subdivisions of the State of Georgia. F. Receivables: Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Federal and State Aid Receivables at June 30, 2012 were as follows: General Other Fund Governmental Total Federal Grants $ - $ 6,707,000 $ 6,707,000 State Aid / Grants Federal and State 58,277,000 818,000 59,095,000 $ 58,277,000 $ 7,525,000 $ 65,802,000 31 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Property Taxes: The Cobb County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) in July 2011 (levy date) based on property values as of January 1, 2011. Taxes were due on October 15, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Cobb County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.6% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the District. Property tax revenues during the fiscal year ended June 30, 2012 totaled $408,129,000. School tax by law cannot be greater than 20 mills per dollar for the support and maintenance of education. Tax millage rates levied for the 2011 tax year (calendar year) for the Cobb County School District were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 18.90 mills H. Sales Taxes: A one percent Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. The State will terminate collection of this tax once an additional $397,913,860 has been collected or on December 31, 2013, whichever occurs first. I. Inventories: On the district-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first in-first out). The District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses are recorded as the inventory items are used. On the fund statements, inventories of governmental funds are reported at cost (first infirst-out). The District uses the consumption method to account for inventories whereby expenditures are recorded when inventory items are used. 32 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Capital Assets: Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: Land Buildings and Improvements Equipment Intangible Assets Library Books and Textbooks General Policy All All $10,000 $500,000 All Useful Life N/A 20 to 50 Years 5 to 10 Years 10 Years 5 Years Depreciation expense is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. K. Fund Balance: Fund equity at the governmental fund financial reporting level is classified as "fund balance". Fund equity for all other reporting is classified as "net assets". 33 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Generally, fund balance represents the difference between the assets and liabilities under the current financial resources measurement focus of accounting. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The District's fund balances are classified as follows: 1) Non-spendable Fund Balance - Non-cash assets such as inventories or prepaid items. 2) Restricted Fund Balance - Funds with limitations imposed on their use by external restrictions imposed by creditors, grantors, or laws or regulations of other governments. 3) Committed Fund Balance - Amounts that can only be used for specific purposes pursuant to a formal vote of the Board of Education. Only the Board may modify or rescind the commitment. 4) Assigned Fund Balance - Amounts intended by the Board of Education for specific purposes, but are neither restricted or committed. The Board of Education can choose to delegate this authority. 5) Unassigned Fund Balance - Residual spendable fund balance after subtracting all above amounts. Positive unassigned values are only reported in the General Fund. 34 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Committed Fund Balances The Board of Education, as the government's highest level of decision-making authority, may commit fund balance by a formal vote prior to the government's fiscal year-end for that fiscal year. Future modification or rescission of committed funds must likewise be accomplished by a formal vote of the Board of Education prior to fiscal year-end. Pursuant to the requirements of Governmental Accounting Statement 54, the Board of Education committed substantially all of the revenue received by the following Special Revenue funds to be used exclusively for each respective program's expenditures. Special Revenue Fund Donations After School Program Performing Arts / Artists at School Tuition School / Adult High School Facility Use / Public Safety Local Schools Revenue Source Donations by individuals or organizations to benefit school programs. Attendance and registration fees of After School Program (ASP). Voluntary student contributions to fund Performing Arts Programs and donations to fund artist workshops at local schools. User tuition charges and GED fees. User rental fees and student parking permit fees. Funds earned or donated at local schools used by local principals to benefit students and faculty subject to District policy. Assigned Fund Balances The Board of Education expressly delegates to the Superintendent, through the Chief Financial Officer, the authority to assign funds for particular purposes. Spending Prioritization When expenditures are incurred by the District that would qualify for payment with either restricted or unrestricted funds, it will be paid from restricted funds. When an expenditure is incurred that qualifies for payment from either of the three unrestricted fund balance categories, it will be applied in the following order: 1) Committed 2) Assigned 3) Unassigned 35 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Minimum Unassigned General Fund Balance The Board of Education will strive to maintain a minimum unassigned general fund balance, less encumbrances, equivalent to a range of 30 to 55 days of annual expenditures unless this is unfeasible due to circumstances beyond its control such as: a) A substantial decrease in the county property tax digest b) A substantial decrease in State funding c) An unanticipated fiscal necessity Schedule of Fund Balances Fund Balances: General Fund Special Purpose Local Option Sales Tax III Other Governmental Funds Total Nons pendable: Inventory $ 353,000 $ 1,706,000 $ 2,059,000 Restricted for: Capital Projects Captial Projects School Nutrition 33,222,000 22,933,000 20,200,000 33,222,000 22,933,000 20,200,000 Committed to: Local School Activities After School Program Tuition School / Adult High School Facility Use and Public Safety Programs Performing Arts and Artists at School Programs Donations for the Benefit of School Programs 8,016,000 1,733,000 989,000 815,000 167,000 163,000 8,016,000 1,733,000 989,000 815,000 167,000 163,000 Assigned to: Appropriation for Next Year's Budget Ins tru ction Pupil Services Instructional Services School and Administration Student Transportation Maintenance and Operations District-Wide Building Student Information Systems Psycho Ed 28,254,000 1,998,000 305,000 1,309,000 1,119,000 21,000 1,390,000 3,998,000 396,000 343,000 28,254,000 1,998,000 305,000 1,309,000 1,119,000 21,000 1,390,000 3,998,000 396,000 343,000 Unas s igned: 98,637,000 98,637,000 Total Fund Balance $ 133,386,000 $ 33,222,000 $ 61,459,000 $ 228,067,000 36 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 2. LEGAL COMPLIANCE - BUDGETS: The Board of Education budgets its operations on an annual basis for the General Fund and all Special Revenue Funds except the Local Schools Fund. Capital Projects Funds are budgeted on a multi-year, project-length basis. Prior to July 1 each year, the administration of the District submits a proposed budget to the Board of Education which conducts public hearings and legally adopts the budget. The administration then submits the adopted budget to the Georgia Department of Education for final approval. The District prepares the budget on a basis other than accounting principles generally accepted in the United States of America (GAAP) as allowed by the State of Georgia. Appropriations not spent or encumbered lapse at year-end and encumbrances outstanding at that time are rebudgeted in the following fiscal year. Budget amendments which are funded through a decrease in fund balance must be approved by the Board of Education. All other budget amendments may be approved by the Superintendent or his designee. The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the function level within individual funds. Several supplementary appropriations were necessary during the fiscal year ended June 30, 2012. For the year ended June 30, 2012, expenditures exceeded appropriations in several function areas (the legal level of budgetary control). These over-expenditures were offset by under-expenditures in other function areas within the same fund. The overexpenditures are identified in the following schedule: Fund/Function General Fund: School Administration After School Program Fund: Instruction Tuition Schools/Adult High School Fund: Pupil Services Food and Nutrition Fund: School Nutrition Program Vocational Education Fund: Instruction Title II Fund: Instruction Homeless Grant Fund: Instruction Title IV Fund: Improvement of Instrutional Services Transportation Overexpenditure $ 1,062,000 32,000 1,000 18,000 6,000 1,000 1,000 6,000 10,000 37 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 2. CASH EQUIVALENTS, DEPOSITS AND INVESTMENTS: COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 38 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 2. CASH EQUIVALENTS, DEPOSITS AND INVESTMENTS (Continued) Cash Equivalents and Deposits Cash equivalents consist of bank checking, savings, money-market accounts, and certificate of deposits. Custodial credit risk-deposits and investments Custodial credit risk is the risk that in the event of bank failure, the District's cash equivalents and deposits may not be returned to the District. At June 30, 2012, the District had deposits with a carrying amount of $274,027,000 and a bank balance of $281,183,000. The bank balance was entirely covered by Federal depository insurance, by collateral held by the District or the District's agent in the District's name, or by a multiple financial institution collateral pool authorized by the State of Georgia that insures public deposits. The District has no custodial credit risk since there are no uncollateralized or uninsured securities not in the District's name. Investments As of June 30, 2012, the District's investments included $11,040,942 in an investment pool account called Georgia Fund One, the combined state general fund and local government investment pool managed by the Office of the State Treasurer. On that date, these funds had a weighted average maturity of 48 days. Additionally, the District has $30,500,000 in certificate of deposits, which are held at various institutions and are fully insured as of June 30, 2012. These investments are reported as cash equivalents. Credit Risk The District's investment policy is to apply the prudent investor rule which states "investments shall be made with judgment and care, under circumstances when prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the primary objective of safety of capital as well as the objective of obtaining a market rate of return." The policy of the District is to invest funds with larger banking institutions which are able to collateralize the public funds at 110%. Any bid to purchase securities must be from a broker/dealer who is a member of the NASD and SIPC and have a major presence in the metropolitan area. 39 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 2. CASH EQUIVALENTS, DEPOSITS AND INVESTMENTS (Continued) The District's investment in Georgia Fund One, the State of Georgia Investment Pool, was rated AAAm by Standard & Poor's. The Treasurer of the State of Georgia is the oversight agency for Georgia Fund One. Concentration of Credit Risk Concentration of credit risk is defined as investments of more than 5% in any one issuer. Georgia Fund One is excluded from the requirement of disclosing concentration of credit risk. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as on investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal( $1 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $ per share. As of June 30, 2012, the District considers amounts held in Georgia Fund 1 as cash equivalents for financial statement presentation. Interest Rate Risk In accordance with its investment policy, the District will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market, and investment operating funds primarily in money market funds or similar investment pools and limiting the average maturity in accordance with the District's cash requirements. Foreign Currency Risk The District is not authorized to invest in investments which have this type of risk. 40 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 3. NON-MONETARY TRANSACTIONS: The District received food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. See Note 1 Inventories Note 4. CAPITAL ASSETS: The following is a summary of changes in the capital assets during the fiscal year: Governmental Activities Capital Assets, Not Being Depreciated: Land Construction In Progress Total Capital Assets Not Being Depreciated Balance June 30, 2011 $ 106,923,000 97,942,000 204,865,000 Capital Assets Being Depreciated: Buildings and Improvements Equipment Library/Textbooks Total Capital Assets Being Depreciated Less Accumulated Depreciation for: Buildings and Improvements Equipment Library/Textbooks Total Accumulated Depreciation Total Capital Assets Being Depreciated-Net Governmental Capital Assets-Net 1,381,731,000 107,543,000 92,379,000 1,581,653,000 522,570,000 82,218,000 65,983,000 670,771,000 910,882,000 $ 1,115,747,000 Increases $ 8,047,000 144,248,000 152,295,000 147,584,000 9,703,000 9,463,000 166,750,000 42,569,000 6,590,000 11,351,000 60,510,000 106,240,000 $ 258,535,000 Decreases Balance June 30, 2012 $ - $ 114,970,000 (143,157,000) 99,033,000 (143,157,000) 214,003,000 (4,589,000) (5,251,000) (9,840,000) 1,529,315,000 112,657,000 96,591,000 1,738,563,000 (4,317,000) (5,251,000) (9,568,000) (272,000) $ (143,429,000) 565,139,000 84,491,000 72,083,000 721,713,000 1,016,850,000 $ 1,230,853,000 Current year depreciation expense by function for governmental activities is as follows: Instruction $ 47,870,000 Pupil Services 4,292,000 Instructional Services 1,774,000 School and Administrative Services 3,318,000 Pupil Transportation 3,229,000 Maintenance and Operations 27,000 $ 60,510,000 41 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 5. INTERFUND ASSETS AND LIABILITIES: Interfund receivable and payable balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. All interfund balances will be paid within one year. Interfund receivable and payable balances by fund as of June 30, 2012 are disclosed in the following schedule: Governmental Funds: General Fund Nonmajor Governmental Funds: Miscellaneous Grants Adult Education Title I Vocational Education Title II Title III Title IV Local Schools Total Nonmajor Governmental Funds Proprietary Funds: Unemployment Compensation Fund Self-Insurance Fund Flexible Benefits Fund Dental Insurance Fund Total Proprietary Funds Total Re ce ivable $ 2,811,000 4,476,000 4,476,000 420,000 6,701,000 358,000 32,000 7,511,000 $ 14,798,000 Payable $ 11,987,000 87,000 231,000 1,355,000 81,000 362,000 83,000 612,000 2,811,000 $ 14,798,000 42 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 6. INTERFUND TRANSFERS: Interfund transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and (2) to use unrestricted revenues in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Interfund transfers for the year ended June 30, 2012, consisted of the following: Transfers Out: General Fund: General Fund General Fund General Fund General Fund Total General Fund Nonmajor Governmental Funds: Student Information Systems Fund SPLOST II Fund District- Wide Building Fund Facility Use / Public Safety Fund Total Nonmajor Governmental Funds Internal Service Funds: Dental Insurance Fund Total Internal Service Funds Total for All Funds Transfers In: Facility Use / Public Safety Fund Performing Arts / Artists at School Fund Tuition School / Adult High School Fund Self-Insurance Fund General Fund General Fund General Fund General Fund Self Insurance Fund Amount 721,000 7,000 200,000 494,000 1,422,000 8,000 22,234,000 1,600,000 160,000 24,002,000 3,600,000 3,600,000 $ 29,024,000 43 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 7. RISK MANAGEMENT: The District is self-insured for all claims under general liability, vehicle accidents and workers compensation. The District maintains as policy for excess workers compensation. The District is commercially insured for property, contents and boiler and carries fidelity bond coverage for employee dishonesty, in addition to a state-mandated Superintendent's bond and school principals' bond. Premiums are paid into Internal Service funds by user funds and are available to pay claims and administrative costs of the program and establish claim reserves. These interfund premiums are recognized as revenue in the internal service funds. Actuarial analysis provides estimated ultimate losses for workers compensation and automobile liability, which are then converted to present values using an interest rate of 3%. Estimated claims for the next fiscal year total $1,888,000 and the non-current liability for succeeding years is $4,421,000. 2011 2012 Estimated Unpaid Claims at Beginning of Fiscal Year $ 8,856,000 $ 5,912,000 Claims and Changes in Estimates $ 1,800,000 $ 3,534,000 Claim Payments Estimated Unpaid Claims at End of Fiscal Year $ (4,744,000) $ 5,912,000 $ (3,137,000) $ 6,309,000 Note 8. SHORT-TERM NOTES: In February 2011, the District issued $62,000,000 in revenue anticipation notes in order to continue construction of new schools, school additions, and school renovations. The notes bear interest at a rate of 1.5% and were due on December 29, 2011. The District repaid the notes with proceeds from a local option sales tax collected in calendar year 2011. The principal and interest payment on December 29, 2011 totaled $62,824,000. The following represents the activity related to short-term notes during the fiscal year ended June 30, 2012. B e ginning Balance $ 62,000,000 Additions $ - De le tions $ 62,000,000 Ending Balance $ - 44 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 9. LONG-TERM OBLIGATIONS: Fiscal year 2012 long-term obligations are as follows: Current Long-term Accrued Vacation Pay Total Balance 6/30/2011 Added Retired Balance Amounts Due Amounts Due 6/30/2012 Within One Year After One Year 7,733,000 2,912,000 (2,900,000) 7,745,000 2,904,000 4,841,000 $ 7,733,000 $ 2,912,000 $ (2,900,000) $ 7,745,000 $ 2,904,000 $ 4,841,000 Accrued vacation pay is generally liquidated by the General Fund. Note 10. ON-BEHALF PAYMENTS: The State of Georgia makes certain health insurance and pension plan payments on behalf of the District for its employees. The District records these payments as both a revenue and expenditure in the General Fund. The total of the on-behalf payments for the fiscal year ended June 30, 2012 was $1,120,093. Note 11. COMMITMENTS AND CONTINGENCIES: The District makes various contractual commitments on an ongoing basis for construction and remodeling of its capital assets. The major outstanding commitments as of June 30, 2012, included the construction of three replacement elementary schools, 9th grade additions to two high schools, and additions and renovations to seven existing schools. 45 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 11. COMMITMENTS AND CONTINGENCIES: (Continued) As of June 30, 2012, the total contract price and expenditures to date for the largest projects were as follows: Proje ct Replacement - Clarkdale ES Replacement - East Side ES Addition/Renovations - Garrett MS 9th Grade Addition - Harrison HS Addition/Renovations - Lassiter HS Replacement - Mableton ES Addition/Renovations - McCleskey MS 9th Grade Addition - North Cobb HS Addition/Renovations - Pine Mountain MS Addition/Renovations - Pope HS Addition/Renovations - Simpson MS Replacement - Smyrna Area ES 9th Grade Addition - South Cobb HS Addition/Renovations - Sprayberry HS Addition/Renovations - Wheeler HS Total Contract Price $ 15,906,459 17,638,981 8,930,126 15,307,405 16,443,310 19,647,815 9,393,898 16,124,395 7,329,966 9,892,141 9,444,267 20,490,974 20,409,278 11,821,584 22,917,870 $ 221,698,469 Expe nditure s To Date $ 14,692,436 17,638,239 6,961,455 1,035,611 10,680,789 18,125,813 8,004,290 15,261,013 6,858,175 9,745,567 8,568,108 6,427,953 20,322,505 11,652,239 9,445,894 $ 165,420,087 The District participates in numerous state and federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, refunds of any money received may be required and the collectability of any related receivable at June 30, 2012, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying combined financial statements for such contingencies. 46 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 11. COMMITMENTS AND CONTINGENCIES (Continued) The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the District. Note 12. COMPENSATED ABSENCES: It is the District's policy to allow employees to accumulate earned but unused vacation benefits. Employees are compensated for qualifying vacation benefits upon termination of their employment with the District. A liability for these vacation benefits are accrued and include social security, medicare, and workers compensation. Employees are not compensated for sick leave benefits upon termination of their employment. Therefore, no liability is reported for earned but unused sick leave benefits. Note 13. RETIREMENT PLANS: Teachers Retirement System of Georgia (TRS): Plan Description Substantially all teachers, administrators and clerical personnel are members of this costsharing multiple-employer defined benefit public employee retirement system. TRS was created in 1943 by an act of the Georgia General Assembly and is administered by a ten member Board of Trustees. TRS is funded by a combination of employee, employer and State of Georgia contributions. Benefits are established by State statute and provide retirement, death, long-term disability, survivor and health insurance premium benefits. TRS issues a comprehensive annual financial report that includes financial statements and required supplementary information. To obtain a copy of the report contact the Teachers Retirement System of Georgia at Two Northside 75, Suite 100, Atlanta, Georgia 30318. Funding Policy Plan members are required to contribute 5.53 percent of their annual covered payroll and the District is required to contribute 10.28 percent of the covered payroll. The contribution is an actuarially determined rate. The contribution requirements of plan members and the District are established and may be amended by the TRS Board of Trustees. The District's contributions to TRS for the years ended June 30, 2012, 2011 and 2010 were $58,155,546, $57,920,356, and $58,051,816 respectively, which were equal to the required contribution for each year. 47 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 13. RETIREMENT PLANS (Continued) Public School Employee Retirement System of Georgia (PSERS): Plan Description Bus drivers, maintenance, custodial, and lunchroom personnel are members of this costsharing multiple-employer defined benefit public employee retirement system. PSERS is administered by a Board of Trustees. PSERS is funded by employee and State of Georgia contributions. Benefits are established by State statute and provide retirement, death, longterm disability and survivor benefits. PSERS issues an annual financial report that includes financial statements and required supplementary information. To obtain a copy of the report contact the Employees' Retirement System of Georgia at Two Northside 75, Suite 300, Atlanta, Georgia 30318. Funding Policy Plan members are required to contribute four dollars per month for the nine month school year. The State of Georgia makes an annual contribution to PSERS based upon an actuarial calculation. The District does not make an annual contribution to PSERS. The contribution requirements of plan members and the State are established and may be amended by the PSERS Board of Trustees. Note 14. POSTEMPLOYMENT BENEFITS: Georgia Retiree Health Benefit Fund Plan Description The Cobb County School District contributes to the Georgia Retiree Health Benefit Fund (GRHBP), a healthcare plan administered by the Georgia Department of Community Health. The GRHBP is a cost-sharing multiple-employer defined-benefit postemployment healthcare plan that covers former state employees, former teachers and former public school employees who met eligibility criteria when active. The GRHPB provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Health Benefit Plan (SHBP) administered by the Department of Community Health. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for the GRHBP. That report may be obtained from the Georgia Department of Community Health at 2 Peachtree Street, Atlanta, GA 30303. 48 COBB COUNTY SCHOOL DISTRICT Notes to the Basic Financial Statements JUNE 30, 2012 Note 14. POSTEMPLOYMENT BENEFITS (Continued) Funding Policy The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately sixty-two percent (62%) of the cost of health insurance coverage. Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The combined rates for the active and retiree contribution rates established by the Board for employees participating in the SHBP were as follows for the fiscal year ended June 30, 2012: Certified employees July 2011 August 2011 - March 2012 April 2012 - June 2012 Non-Certificated Employees July 2011 - August 2011 September 2011 - June 2012 18.534% of covered payroll for August coverage 24.00% of covered payroll for September - April coverage 3.958% of covered payroll for May - July coverage $246.20 per member per month $296.20 per member per month No additional contribution was required by the Board for fiscal year 2012 nor contributed to the GRHBP to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. The School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: Fiscal Year 2012 2011 2010 Contribution $81,239,085 $84,335,948 $83,074,364 Contribution 100% 100% 100% 49 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Nonmajor Governmental Funds Special Revenue Funds These funds are used to account for proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes other than debt service or capital projects. These funds also account for receipts and expenditures of resources transferred from the General Fund where revenues are inadequate to finance specified activities. Donations Facility Use/Public Safety This fund is created to provide accounting of donations which are made to the District for specific purposes by individuals or organizations. This fund is created to provide accounting of the Facility Use program which organizes the rental of school facilities during non-instructional hours to provide the community with a place to hold activities at a nominal fee and to account for funds collected for parking decals sold to students, which are used to pay for campus police officers. In addition to parking decals sold to students, funds are transferred from the General fund. After School Program This fund is created to provide accounting of funds for the After School Program which utilizes designated school facilities for the purpose of providing supervision to children from school release time until 6:00 p.m. This program is self-supported from charges of daily attendance fees and non-refundable annual registration fees per enrolled child. Performing Arts/Artist at School This fund is created to account for funds for the Performing Arts Program which offers an opportunity for students in kindergarten through eighth grade to experience professional quality performing arts experiences. These experiences include off-campus trips to art museums, symphony concerts, ballet and theater performances, as well as in-house musical and dramatic presentations. The program is funded through voluntary student contributions and charges for participation. Artist at School fund is created to provide accounting of funds which are provided to local artists as compensation for workshops held in the district's schools. Tuition School/Adult High School This fund is created to provide accounting for the Tuition School Program which provides the opportunity for students to make up school classes and provide enrichment and remedial work at various instructional levels. This program is supported by user tuition charges. This fund is created to account for funds for the Adult High School Program which provides the opportunity for students 16 years of age, and older, who are not enrolled in a regular high school, to improve their basic educational skills and work towards high school completion. 50 Miscellaneous Grants School Nutrition ARRA Grants Adult Education Psycho Education Center Title I Special Education Vocational Education Title II Homeless Grant This fund is established to provide accounting of funds received and represent a compilation of several grants which are awarded for educational purposes. This fund is established to provide accounting of funds which are used for the operation of school lunchrooms. All lunches and breakfasts provide at least one-third of each student's nutritional needs and are available at a minimal cost. Free and reduced meals are provided for qualifying students. All lunchrooms are regularly inspected by the Cobb County Health Department and meet prescribed standards of the State Department of Education. This fund is established to provide accounting of grant funds provided by the National Clean Diesel Campaign. This new grant promotes diesel emission reductions by retrofitting diesel engines with emissions controls. This program allows the District along with Georgia Institute of Technology to utilize emerging technologies to meet critical local air quality needs at a faster pace. This fund is established to provide accounting for grant funds via the Georgia Department of Technical and Adult Education which are used to educate adults and is a part of the national effort to ensure that all adults are literate and able to compete in the global economy. This fund is established to provide accounting for grant funds via the Georgia Department of Education which are used to provide appropriate education for students identified as severely emotionally behavior disordered, or autistic. This fund is established to provide accounting of Title I funds which are provided as part of the No Child Left Behind Act of 2001. This act provides federal funds through the Georgia Department of Education to local school districts to help disadvantaged children meet high standards. The goal is to have a quality education for all children by having local schools and state departments work together. This fund is established to provide accounting of federal revenues received to provide programs for direct and related support services for handicapped children. This fund is established to provide accounting of federal grant revenues provided for career training and opportunities to students This fund is established to provide accounting of federal categorical grant funds which flow through the Georgia Department of Education to our school district. The funds are used to advance teacher quality through professional learning, preparation, recruitment and retention as well as upgrading teachers' skills in science and math through training. This fund is established to provide accounting of funds for federal categorical grant funds which flow through the Georgia Department of Education and are used to provide educational services to homeless children. 51 Learn and Serve Title III Title IV Local School Funds This fund is established to provide accounting of grant funds received from Learn and Serve America which is a program of the Corporation for National Community Service (CNCS). These funds provide opportunities for integrating community service projects with classroom learning. This fund is established to provide accounting of federally funded grants for programs that support Limited English Proficiency (LEP) students and their families, through language instructional programs. These programs include community participation programs, family literacy services, parent outreach and training activities to improve the English language skills of limited English proficient children and assistance for parents in helping their children to improve their academic achievement. This fund is established to provide accounting of federal categorical grant funds which are directly funded from the U.S. Department of Education and may flow through the Georgia State Department of Education. The funds are used to promote the Safe and Drug Free Schools Program, the Mentoring Program and the 21st Century Community Learning Centers Program for students in our schools. This fund is established to provide accounting for local school resources generated through ticket sales, commissions, vending, donations, etc. in which the administration has a material degree of involvement. These revenues have been committed by the Board for use by local principals to benefit students and faculty subject to District policy. Capital Projects Funds These funds are established to provide accounting for financial resources to be used for the acquisition and construction of major capital facilities. The District has three nonmajor funds used for those purposes; the Special Purpose Local Option Sales Tax II Fund, the District-Wide Building Fund, and the Student Information Systems Fund. 52 COBB COUNTY SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (amounts expressed in thousands) ASSETS: Donations Facility Use/ Public Safety Special Revenue Performing After Arts/ Artist School at School Program Program Tuition School/ Adult High School Cash and Cash Equivalents Taxes Receivable Federal and State Aid Receivable Accounts Receivable Accrued Interest Receivable Due From Other Funds Inventories Total Assets $ 163 $ 834 $ 1,739 $ - - - - - - - - - - - - - - - - - - $ 163 $ 834 $ 1,739 $ 167 $ - 167 $ 1,236 - 1,236 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable $ Accrued Payroll and Payroll Withholdings Accrued Employee Benefits Due to Other Funds Deferred Revenue Total Liabilities Fund Balances: Nonspendable Restricted Committed Assigned Total Fund Balances Total Liabilities and Fund Balances $ -$ - 163 163 163 $ -$ 17 2 - 19 6$ 6 - - - - 815 1,733 - - 815 1,733 834 $ 1,739 $ -$ 13 - 207 - 27 - - - - - 247 167 - 167 167 $ 989 - 989 1,236 53 Misc. Grants Special Revenue School Nutrition ARRA Grants Adult Education Psycho Education Center $ - $ 23,341 $ - - 112 - - 14 - - - - - 1,706 $ 112 $ 25,061 $ 6$ - $ 235 - - - - 263 708 - - - - - - - - - - - - 6 $ 263 $ 943 $ 8 $ 250 $ 14 1,635 2 668 87 - 1 602 112 3,155 - 1,706 - 20,200 - - - - - 21,906 $ 112 $ 25,061 $ -$ 20 $ 288 - 2 228 - - 84 - 231 - 6 10 - 6 263 600 - - - - - - - - - - - 343 - - 343 6 $ 263 $ 943 Continued--- 54 COBB COUNTY SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (amounts expressed in thousands) Special Revenue ASSETS: Cash and Cash Equivalents Taxes Receivable Federal and State Aid Receivable Accounts Receivable Accrued Interest Receivable Due From Other Funds Inventories Total Assets Title I Special Vocational Education Education Title II Homeless Grant $ - $ 213 $ -$ -$ 1 - - - - - 2,978 1,787 96 654 1 - - - - - - - - - - - - - - - - - - - - $ 2,978 $ 2,000 $ 96 $ 654 $ 2 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable Accrued Payroll and Payroll Withholdings Accrued Employee Benefits Due to Other Funds Deferred Revenue Total Liabilities $ 283 $ 133 $ 3$ 57 $ - 1,098 1,399 12 219 1 242 468 - 16 1 1,355 - 81 362 - - - - - - 2,978 2,000 96 654 2 Fund Balances: Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Total Fund Balances - - - - - Total Liabilities and Fund Balances $ 2,978 $ 2,000 $ 96 $ 654 $ 2 55 Special Revenue Learn and Serve Title III Title IV Local School Funds $ -$ -$ - $ 3,540 - - - - - 148 778 - - - - - - - - - - - - 4,476 - - - - $ - $ 148 $ 778 $ 8,016 $ -$ 28 $ 107 $ - - - 32 48 - - 5 11 - - 83 612 - - - - - - 148 778 - - - - - - - - - - - - 8,016 - - - - - - - 8,016 $ - $ 148 $ 778 $ 8,016 Continued--- 56 COBB COUNTY SCHOOL DISTRICT COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (amounts expressed in thousands) ASSETS: Cash and Cash Equivalents Taxes Receivable Federal and State Aid Receivable Accounts Receivable Accrued Interest Receivable Due From Other Funds Inventories Total Assets Districtwide Building Capital Projects Special Purpose Local Option Sales Tax II Student Information Systems Total $ 4,761 $ - 502 - $ 5,263 $ 23,002 $ - 23,002 $ 395 $ 12 - 407 $ 59,633 12 7,525 516 - 4,476 1,706 73,868 LIABILITIES AND FUND BALANCES: Liabilities: Accounts Payable $ Accrued Payroll and Payroll Withholdings Accrued Employee Benefits Due to Other Funds Deferred Revenue Total Liabilities Fund Balances: Nonspendable Restricted Committed Assigned Total Fund Balances Total Liabilities and Fund Balances $ 1,265 $ 1,265 3,998 3,998 5,263 $ 68 $ 1 69 -$ 11 11 2,529 4,913 1,526 2,811 630 12,409 22,933 - 22,933 23,002 $ 396 396 407 $ 1,706 43,133 11,883 4,737 61,459 73,868 Concluded. 57 (This page was left blank intentionally) COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Taxes Intergovernmental Tuition and Fees Interest Income Athletic Ticket Sales Other Total Revenues Donations $ - - - - - 195 195 Facility Use/ Public Safety Special Revenue Performing After Arts/ Artist School at School Program Program $ -$ -$ - - - - 1,216 7,437 378 - - - - - - - - 2 1,216 7,437 380 Tuition School/ Adult High School $ - - 794 - - - 794 EXPENDITURES: Current: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Capital Outlay Total Expenditures Excess (deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers-In Transfers-Out Proceeds from Sale of Capital Assets Total Other Financing Sources (Uses) 4 - 760 3 - - 3 - - 64 454 6,495 - - - - 1,098 - - - - - - 30 74 1,552 7,285 121 (336) 152 - 721 - - (160) - - - - - 561 - 351 578 - 1 - 82 - 287 - - - 4 - - - 4 351 956 29 (162) 7 200 - - - - 7 200 Net Change in Fund Balances Fund Balances, Beginning of Year 121 225 152 36 38 42 590 1,581 131 951 Fund Balances, End of Year $ 163 $ 815 $ 1,733 $ 167 $ 989 58 Misc. Grants $ - 178 - - - 3 181 Special Revenue School Nutrition $ - 30,951 19,619 60 - 24 50,654 ARRA Grants $ - 592 - - - - 592 Adult Education $ - 1,052 - - - - 1,052 Psycho Education Center $ - 5,640 - - - 37 5,677 67 - 39 - 73 - 2 51,220 - - - - - - - 571 181 51,791 - - 4,142 - - 1,143 3 - 306 1 1,052 63 588 - 21 - - 32 - - - - - - 592 1,052 5,707 - (1,137) - - (30) - - - - - - - - - - - 2 - - - - 2 - - - - (1,135) - - 23,041 - - (30) - 373 $ - $ 21,906 $ -$ - $ 343 Continued--- 59 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) Special Revenue REVENUES: Taxes Intergovernmental Tuition and Fees Interest Income Athletic Ticket Sales Other Total Revenues EXPENDITURES: Current: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Capital Outlay Total Expenditures Excess (deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers-In Transfers-Out Proceeds from Sale of Capital Assets Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Title I $ - 18,456 - - - - 18,456 Special Education $ - 22,663 - - - - 22,663 Vocational Education $ - 645 - - - - 645 Title II $ - 2,592 - - - - 2,592 Homeless Grant $ - 80 - - - - 80 9,783 14,416 337 1 3 298 3,968 - - 6 4,580 2,207 203 2,554 19 2,293 774 7 33 23 1,488 1,298 - - 29 - - - - - - - - - - 14 - 98 4 - 18,456 22,663 645 2,592 80 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ -$ -$ -$ -$ - 60 Special Revenue Learn and Serve Title III Title IV Local School Funds $ -$ -$ -$ - 8 1,167 3,977 - - - - 25,991 - - - 13 - - - 3,410 - - - - 8 1,167 3,977 29,414 7 63 873 - - 349 2,603 - 1 749 203 - - 6 92 - - - 169 - - - 19 - - - - 29,746 - - 18 3 8 1,167 3,977 29,749 - - - (335) - - - - - - - - - - - - - - - - - - - (335) - - - 8,351 $ -$ -$ - $ 8,016 Continued--- 61 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Taxes Intergovernmental Tuition and Fees Interest Income Athletic Ticket Sales Other Total Revenues DistrictWide Building Capital Projects Special Purpose Local Option Sales Tax II Student Information Systems $ -$ - - 20 - 3,202 3,222 -$ 6 - - - - 65 2 - - - - 65 8 Total $ 6 88,001 55,435 160 3,410 3,463 150,475 EXPENDITURES: Current: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Capital Outlay Total Expenditures Excess (deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers-In Transfers-Out Proceeds from Sale of Capital Assets Total Other Financing Sources (Uses) - 1,112 - 7,636 8,748 (5,526) (1,600) (1,600) - 1,297 - 4,657 5,954 (5,889) (22,234) (22,234) - 31,385 - 8,410 - 10,983 - 65,275 - 3,593 - 1,153 - 29,746 - 13,035 - 163,580 8 (13,105) - 928 (8) (24,002) - 2 (8) (23,072) Net Change in Fund Balances Fund Balances, Beginning of Year (7,126) 11,124 (28,123) 51,056 - (36,177) 396 97,636 Fund Balances, End of Year $ 3,998 $ 22,933 $ 396 $ 61,459 Concluded. 62 COBB COUNTY SCHOOL DISTRICT DONATIONS-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local Total Revenues Budgeted Amounts Original Final Actual Amounts $ 195 $ 195 $ 195 195 195 195 Variance With Final Budget - Positive (Negative) $ - - EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services General Administration School Administration Central Operations Total Expenditures 10 10 11 11 12 12 1 1 2 2 193 193 229 229 4 6 3 8 3 9 - 1 1 1 63 130 74 155 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year (34) (34) 121 155 42 42 42 - $ 8$ 8$ 163 $ 155 63 COBB COUNTY SCHOOL DISTRICT FACILITY USE/ PUBLIC SAFETY-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local Other Total Revenues EXPENDITURES: Maintenance and Operation of Plant Community Service Operations Total Expenditures Budgeted Amounts Original Final Actual Amounts $ 1,236 $ 1,236 $ 1,216 721 721 721 1,957 1,957 1,937 1,281 675 1,956 1,281 675 1,956 1,098 614 1,712 Variance With Final Budget - Positive (Negative) $ (20) - (20) 183 61 244 Net Change in Fund Balance Fund Balance, Beginning of Year 1 1 225 224 590 590 590 - Fund Balance, End of Year $ 591 $ 591 $ 815 $ 224 64 COBB COUNTY SCHOOL DISTRICT AFTER SCHOOL PROGRAM-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local Total Revenues Budgeted Amounts Original Final Actual Amounts $ 7,077 $ 7,077 $ 7,437 7,077 7,077 7,437 Variance With Final Budget - Positive (Negative) $ 360 360 EXPENDITURES: Instruction Community Service Operations Total Expenditures 727 727 759 (32) 6,350 6,941 6,526 415 7,077 7,668 7,285 383 Net Change in Fund Balance - (591) 152 743 Fund Balance, Beginning of Year 1,581 1,581 1,581 - Fund Balance, End of Year $ 1,581 $ 990 $ 1,733 $ 743 65 COBB COUNTY SCHOOL DISTRICT PERFORMING ARTS/ARTIST AT SCHOOL PROGRAM-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local Other Total Revenues Budgeted Amounts Original Final Actual Amounts $ 371 $ 371 $ 380 7 7 7 378 378 387 Variance With Final Budget - Positive (Negative) $ 9 - 9 EXPENDITURES: Instruction Total Expenditures 378 384 351 33 378 384 351 33 Net Change in Fund Balance - (6) 36 42 Fund Balance, Beginning of Year 131 131 131 - Fund Balance, End of Year $ 131 $ 125 $ 167 $ 42 66 COBB COUNTY SCHOOL DISTRICT TUITION SCHOOL/ADULT HIGH SCHOOL-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local Other Total Revenues Budgeted Amounts Original Final Actual Amounts $ 1,029 $ 1,029 $ 794 200 200 200 1,229 1,229 994 Variance With Final Budget - Positive (Negative) $ (235) - (235) EXPENDITURES: Instruction 677 676 578 98 Pupil Services - - 1 (1) Improvement of Instructional Services 120 121 70 51 Educational Media Services 22 22 12 10 School Administration 69 69 36 33 Maintenance and Operation of Plant 23 23 4 19 Community Services Operations 318 363 255 108 Total Expenditures 1,229 1,274 956 318 Net Change in Fund Balance - (45) 38 83 Fund Balance, Beginning of Year 951 951 951 - Fund Balance, End of Year $ 951 $ 906 $ 989 $ 83 67 COBB COUNTY SCHOOL DISTRICT MISCELLANEOUS GRANTS-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local State Federal Total Revenues Budgeted Amounts Original Final Actual Amounts Variance With Final Budget - Positive (Negative) $ -$ 3$ 3$ - 127 - - - 132 378 178 (200) 259 381 181 (200) EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services General Administration Construction Total Expenditures 127 105 67 38 54 49 39 10 78 225 74 151 - 1 - 1 - 1 1 - 259 381 181 200 Net Change in Fund Balance - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year $ -$ -$ -$ - 68 COBB COUNTY SCHOOL DISTRICT SCHOOL NUTRITION-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Local State Federal Other Total Revenues Budgeted Amounts Original Final Actual Amounts $ 19,839 $ 19,839 $ 19,678 1,225 1,225 1,268 26,606 26,606 29,683 28 28 27 47,698 47,698 50,656 Variance With Final Budget - Positive (Negative) $ (161) 43 3,077 (1) 2,958 EXPENDITURES: School Nutrition Program Total Expenditures 51,510 51,773 51,791 (18) 51,510 51,773 51,791 (18) Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year (3,812) 23,041 (4,075) 23,041 (1,135) 23,041 $ 19,229 $ 18,966 $ 21,906 $ 2,940 - 2,940 69 COBB COUNTY SCHOOL DISTRICT ARRA GRANTS - SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 597 $ 597 $ 592 597 597 592 Variance With Final Budget - Positive (Negative) $ (5) (5) EXPENDITURES: Improvement of Instructional Services 8 8 3 5 General Administration 1 1 1 - Student Transportation 588 588 588 - Total Expenditures 597 597 592 5 Net Change in Fund Balance Fund Balance, Beginning of Year - - - - - - - - Fund Balance, End of Year $ -$ -$ -$ - 70 COBB COUNTY SCHOOL DISTRICT ADULT EDUCATION-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: State Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 398 $ 410 $ 410 680 642 642 1,078 1,052 1,052 Variance With Final Budget - Positive (Negative) $ - - - EXPENDITURES: Community Service Operations Total Expenditures 1,078 1,052 1,052 - 1,078 1,052 1,052 - Net Change in Fund Balance Fund Balance, Beginning of Year - - - - - - - - Fund Balance, End of Year $ -$ -$ -$ - 71 COBB COUNTY SCHOOL DISTRICT PSYCHO EDUCATION CENTER-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: State Federal Other Total Revenues Budgeted Amounts Original Final Actual Amounts $ 4,886 $ 5,140 $ 5,104 450 657 537 36 72 36 5,372 5,869 5,677 Variance With Final Budget - Positive (Negative) $ (36) (120) (36) (192) EXPENDITURES: Instruction 3,774 4,201 4,142 59 Pupil Services 1,160 1,215 1,143 72 Improvement of Instructional Services 315 323 306 17 General Administration 48 51 51 - School Administration 5 5 4 1 Business Services Maintenance and Operation of Plant Student Transportation 10 9 8 1 40 40 32 8 20 25 21 4 Total Expenditures 5,372 5,869 5,707 162 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year - - (30) (30) 373 373 373 - $ 373 $ 373 $ 343 $ (30) 72 COBB COUNTY SCHOOL DISTRICT TITLE I-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services General Administration School Administration Student Transportation Other Support Services Total Expenditures Budgeted Amounts Original Final Actual Amounts $ 16,334 $ 26,016 $ 18,456 16,334 26,016 18,456 10,228 172 2,493 621 - 1,132 1,688 16,334 14,071 364 6,438 827 1 2,103 2,211 26,015 9,783 298 4,589 685 1 1,489 1,611 18,456 Variance With Final Budget - Positive (Negative) $ (7,560) (7,560) 4,288 66 1,849 142 614 600 7,559 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year $ -$ 1 1$ - (1) - - -$ (1) 73 COBB COUNTY SCHOOL DISTRICT SPECIAL EDUCATION-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 19,202 $ 28,021 $ 22,663 19,202 28,021 22,663 Variance With Final Budget - Positive (Negative) $ (5,358) (5,358) EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services General Administration Student Transportation Total Expenditures 10,419 5,177 1,682 695 1,229 19,202 18,038 4,908 2,925 851 1,299 28,021 14,416 3,968 2,207 774 1,298 22,663 3,622 940 718 77 1 5,358 Net Change in Fund Balance Fund Balance, Beginning of Year - - - - - - - - Fund Balance, End of Year $ -$ -$ -$ - 74 COBB COUNTY SCHOOL DISTRICT VOCATIONAL EDUCATION-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 752 $ 665 $ 645 752 665 645 Variance With Final Budget - Positive (Negative) $ (20) (20) EXPENDITURES: Instruction 382 417 423 (6) Improvement of Instructional Services 341 237 214 23 General Administration 29 11 8 3 Total Expenditures 752 665 645 20 Net Change in Fund Balance Fund Balance, Beginning of Year - - - - - - - - Fund Balance, End of Year $ -$ -$ -$ - 75 COBB COUNTY SCHOOL DISTRICT TITLE II-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 2,796 $ 3,435 $ 2,592 2,796 3,435 2,592 Variance With Final Budget - Positive (Negative) $ (843) (843) EXPENDITURES: Instruction - - 1 (1) Improvement of Instructional Services 2,730 3,397 2,558 839 General Administration 66 38 33 5 Total Expenditures 2,796 3,435 2,592 843 Net Change in Fund Balance Fund Balance, Beginning of Year - - - - - - - - Fund Balance, End of Year $ -$ -$ -$ - 76 COBB COUNTY SCHOOL DISTRICT HOMELESS GRANT-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 66 $ 94 $ 80 66 94 80 Variance With Final Budget - Positive Negative) $ (14) (14) EXPENDITURES: Instruction Pupil Services General Administration Student Transportation Other Total Expenditures 16 2 3 (1) - 9 6 3 32 10 23 - 18 32 29 3 - 41 19 22 66 94 80 27 Net Change in Fund Balance - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year $ -$ -$ -$ - 77 COBB COUNTY SCHOOL DISTRICT LEARN AND SERVE-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 9$ 9$ 8 9 9 8 Variance With Final Budget - Positive (Negative) $ (1) (1) EXPENDITURES: Instruction Improvement of Instructional Services Total Expenditures 7 7 7 - 2 2 1 1 9 9 8 1 Net Change in Fund Balance - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year $ -$ -$ -$ - 78 COBB COUNTY SCHOOL DISTRICT TITLE III-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final Actual Amounts $ 1,422 $ 1,434 $ 1,167 1,422 1,434 1,167 Variance With Final Budget - Positive (Negative) $ (267) (267) EXPENDITURES: Instruction 54 94 63 31 Pupil Services 873 450 349 101 Improvement of Instructional Services 464 856 729 127 Federal Grant Administration - 28 20 8 General Administration 31 6 6 - Total Expenditures 1,422 1,434 1,167 267 Net Change in Fund Balance - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year $ -$ -$ -$ - 79 COBB COUNTY SCHOOL DISTRICT TITLE IV-SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) REVENUES: Federal Total Revenues Budgeted Amounts Original Final $ 3,036 $ 5,044 3,036 5,044 Actual Amounts $ 3,977 3,977 Variance With Final Budget - Positive (Negative) $ (1,067) (1,067) EXPENDITURES: Instruction Pupil Services Improvement of Instructional Services Educational Media Services Federal Grant Administration General Administration Business Support Services Maintenance & Operations Transportation Other Support Service Total Expenditures 215 2,723 26 - 59 3 - 10 3,036 1,217 3,307 23 9 179 37 43 20 159 50 5,044 891 2,603 29 - 174 36 29 19 169 27 3,977 326 704 (6) 9 5 1 14 1 (10) 23 1,067 Net Change in Fund Balance - - - - Fund Balance, Beginning of Year - - - - Fund Balance, End of Year $ -$ -$ -$ - 80 Internal Service Funds These funds are established to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis. The District has five individual funds in the Internal Service Funds category. The Unemployment Compensation, Self-Insurance and Dental Insurance Funds are used to account for the District's self-insurance programs. The Flexible Benefits Fund accounts for the District's cafeteria plan of flexible benefits. Purchasing and warehousing costs are allocated to users through the Purchasing/Warehousing Fund. 81 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF FUND NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 (amounts expressed in thousands) Assets: Unemployment Compensation Fund SelfInsurance Fund Current Assets: Due from Other Funds Inventories Prepaid Items Total Current Assets $ 420 $ 6,701 - - - - 420 6,701 Flexible Benefits Fund $ 358 - - 358 Liabilities: Current Liabilities: Accounts Payable Claims Payable Accrued Payroll and Payroll Withholdings Accrued Employee Benefits Total Current Liabilities Noncurrent liabilities: Claims payable, due in more than one year Net Assets: - 227 - - 1,888 - - 8 - - 1 - - 2,124 - - 4,421 - Unrestricted $ 420 $ 156 $ 358 82 Dental Insurance Fund Purchasing/ Warehouse Fund Total $ 32 $ -$ 7,511 - 229 229 10 - 10 42 229 7,750 - 24 251 - - 1,888 - 14 22 - 2 3 - 40 2,164 - - 4,421 $ 42 $ 189 $ 1,165 83 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) OPERATING REVENUES: Charges for Services Total Revenues Unemployment Compensation Fund SelfInsurance Fund Flexible Benefits Fund $ 1,079 $ 3,476 $ 97 1,079 3,476 97 OPERATING EXPENSES: School and Administrative Services 1,078 5,532 53 Operating Income (Loss) 1 (2,056) 44 Transfers-In Transfers-Out - 4,094 - - - - Change in Net Assets Total Net Assets, Beginning of Year 1 2,038 44 419 (1,882) 314 Total Net Assets, End of Year $ 420 $ 156 $ 358 84 Dental Insurance Fund Purchasing/ Warehouse Fund Total $ 2,292 $ 1,219 $ 8,163 2,292 1,219 8,163 3,128 (836) - (3,600) (4,436) 4,478 $ 42 $ 1,236 (17) - (17) 206 189 $ 11,027 (2,864) 4,094 (3,600) (2,370) 3,535 1,165 85 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) Cash Flows from Operating Activities: Receipts from Interfund Services Provided Payments to Suppliers Payments for Medical Fees and Insurance Claims Payments to Employees Unemployment Compensation Fund SelfInsurance Fund $ 1,078 $ 1,165 - (310) (1,078) (4,359) - (590) Net Cash Provided by (Used in) Operating Activities - (4,094) Cash Flows from Noncapital Financing Activities: Transfers-In Transfers-Out - 4,094 - - Net Cash Provided by (Used in) Noncapital Financing Activities - 4,094 Net Increase in Cash and Cash Equivalents - - Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year - - $ -$ - Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Operating Income (Loss) $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Decrease (Increase) in Due From Other Funds Decrease in Inventories Increase in Prepaid Items Increase in Claims Payables Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Payroll and Payroll Withholdings Decrease in Due To Other Funds Total Adjustments Net Cash Provided (Used) by Operating Activities $ 1$ (2,056) (1) - (1) -$ (2,311) - 397 (123) - (1) - (2,038) (4,094) 86 Flexible Benefits Fund Dental Insurance Fund Purchasing/ Warehouse Fund Total $ 53 $ 6,729 $ 1,219 $ 10,244 - (1) (207) $ (518) - (3,128) (15) $ (8,580) (53) - (997) $ (1,640) - 3,600 - (494) - - - (3,600) - 4,094 - (3,600) - (3,600) - 494 - - - - - - - - $ -$ -$ -$ - $ 44 $ (836) $ (17) $ (2,864) (44) 4,447 - - - (10) - - - (1) - 2,091 14 14 - (10) - 397 13 (111) - - 3 2 - - (13) (13) (44) 4,436 17 2,370 $ -$ 3,600 $ -$ (494) 87 (This page was left blank intentionally) Fiduciary Funds These funds are established to account for assets held by the District as a trustee or agent. The District has two individual Agency Funds, the Student Activity Fund and the Payroll Withholding Fund. The funds are used to account for assets held by the District as an agent for special school groups and clubs and for salary withholdings collection agencies. 88 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS JUNE 30, 2012 (amounts expressed in thousands) Agency Funds ASSETS: Cash and Cash Equivalents Total Assets Student Activity Payroll Withholding Total $ 1,207 $ 26,154 $ 27,361 1,207 26,154 27,361 LIABILITIES: Due to Student Groups Payroll Withholdings Payable Total Liabilities 1,207 - $ 1,207 $ 26,154 1,207 26,154 26,154 $ 27,361 89 COBB COUNTY SCHOOL DISTRICT COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012 (amounts expressed in thousands) ASSETS: Cash and Cash Equivalents Balance, Beginning of Year Additions Deductions Balance, End of Year Student Activity Payroll Withholding Total $ 1,164 $ 24,143 $ 25,307 1,152 440,025 441,177 (1,109) (438,014) (439,123) $ 1,207 $ 26,154 $ 27,361 LIABILITIES: Due to Student Groups: Balance, Beginning of Year Additions Deductions Balance, End of Year Payroll Withholdings Payable: Balance, Beginning of Year Additions Deductions Balance, End of Year Total Liabilities: Balance, Beginning of Year Additions Deductions Balance, End of Year $ 1,164 $ 1,152 (1,109) 1,207 -$ - - 1,164 1,152 (1,109) 1,207 - 24,143 24,143 - 440,025 440,025 - (438,014) (438,014) - 26,154 26,154 1,164 1,152 (1,109) 24,143 440,025 (438,014) 25,307 441,177 (439,123) $ 1,207 $ 26,154 $ 27,361 90 COBB COUNTY SCHOOL DISTRICT SPLOST II - SPECIAL PURPOSE LOCAL OPTION SALES TAX PROJECTS FISCAL YEAR 2012 LOCATION/DESCRIPTION ACWORTH INTERMEDIATE ADDISON ELEMENTARY ADULT EDUCATION CENTER ALLATOONA HIGH ARGYLE ELEMENTARY AUSTELL INTERMEDIATE AUSTELL PRIMARY AWTREY MIDDLE BAKER ELEMENTARY BAKER ROAD BUS SHOP BARBER MIDDLE BARNES ED CENTER BELLS FERRY ELEMENTARY BELMONT HILLS ELEMENTARY BIG SHANTY ELEMENTARY BIRNEY ELEMENTARY BLACKWELL ELEMENTARY BROWN ELEMENTARY BRUMBY ELEMENTARY BRYANT ELEMENTARY BULLARD ELEMENTARY CAMPBELL HIGH CAMPBELL MIDDLE CHALKER ELEMENTARY CHEATHAM HILL ELEMENTARY CLARKDALE ELEMENTARY CLARKDALE REPLACEMENT ELEMENTARY CLAY ELEMENTARY COMPTON ELEMENTARY COOPER MIDDLE DANIELL MIDDLE DAVIS ELEMENTARY DICKERSON MIDDLE DODGEN MIDDLE DOWELL ELEMENTARY DUE WEST ELEMENTARY DURHAM MIDDLE EAST COBB MIDDLE EAST SIDE ELEMENTARY EAST SIDE REPLACEMENT ELEMENTARY EASTVALLEY ELEMENTARY FAIR OAKS ELEMENTARY FLOYD MIDDLE FORD ELEMENTARY FREY ELEMENTARY GARRETT MIDDLE GARRISON MILL ELEMENTARY GREEN ACRES ELEMENTARY GRIFFIN MIDDLE HARMONY LELAND ELEMENTARY HARRISON HIGH HAVEN @ FITZHUGH LEE HAVEN @ HAWTHORNE SCHOOL HAYES ELEMENTARY HIGHTOWER TRAIL MIDDLE HILLGROVE HIGH HOLLYDALE ELEMENTARY KEHELEY ELEMENTARY KELL HIGH KEMP ELEMENTARY KENNESAW ELEMENTARY KENNESAW MOUNTAIN HIGH KENNESAW WAREHOUSE KINCAID ELEMENTARY KING SPRINGS ELEMENTARY Approved Budget 553,333 2,295,182 220,500 48,799,343 762,599 158,638 9,226,393 1,606,397 422,625 19,815,465 1,639,228 928,229 1,840,351 1,512,196 974,782 183,750 684,592 2,335,453 689,685 98,000 10,326,795 7,615,640 176,278 120,050 1,800,206 - 1,473,100 2,782,990 192,938 3,902,614 291,415 3,878,680 13,694,820 387,719 5,287,518 137,750 4,562,219 967,129 - 1,381,680 3,196,172 11,924,814 347,831 195,021 920,589 463,177 327,076 16,788,670 4,958,225 932,114 641,097 909,439 559,807 2,070,517 45,739,657 1,865,302 452,025 49,613 169,663 374,593 512,663 610,875 1,372,207 Revised Budget Expended Inception through 06/30/12 Expended FY12 Encumbered as of 6/30/12 Uncommitted 823,772 1,080,975 401,503 62,121,501 1,016,817 799,639 9,833,156 2,846,000 1,076,773 5,054 16,817,275 923,415 1,003,263 1,421,084 1,615,827 1,361,458 728,686 738,954 2,689,860 1,356,905 709,802 10,756,725 8,594,251 921,585 892,994 2,168,435 3,721,275 1,571,728 2,836,821 1,049,921 6,051,974 832,254 3,312,921 13,211,859 1,129,993 5,915,258 1,291,822 5,743,046 1,334,022 343,028 2,154,972 4,953,072 8,077,787 1,002,064 957,286 1,729,768 977,365 859,513 12,725,504 4,173,375 3,486,291 585,286 468,822 1,372,305 3,276,769 40,171,957 2,664,732 1,008,830 1,503,009 814,807 1,140,833 2,126,658 16,906,626 1,485,704 1,774,532 823,770 1,080,973 401,502 62,106,674 1,016,811 799,639 9,833,156 2,846,000 1,076,773 5,054 16,817,268 923,413 1,003,258 1,421,081 1,615,824 1,361,455 728,684 738,952 2,689,856 1,356,903 709,802 10,756,715 8,594,251 921,583 892,994 2,168,430 3,721,275 1,571,725 2,836,814 1,049,921 6,051,974 832,253 3,312,921 13,211,859 1,129,993 5,915,255 1,291,821 5,743,046 1,334,018 343,028 2,154,968 4,953,068 8,077,787 1,002,063 957,286 1,729,766 977,364 859,512 12,725,500 4,173,373 3,486,282 585,285 468,819 1,372,303 3,276,768 40,090,351 2,664,727 1,008,828 1,503,009 814,807 1,140,833 2,126,656 15,090,093 1,485,700 1,774,528 332,281 3,409,581 393,478 1,758,704 - 9,500 25,203 1,817,854 - 2 2 1 5,327 6 7 2 5 3 3 3 2 2 4 2 10 2 5 3 7 1 3 1 4 4 4 1 2 1 1 4 2 9 1 3 2 1 56,403 5 2 2 (1,321) 4 4 91 COBB COUNTY SCHOOL DISTRICT SPLOST II - SPECIAL PURPOSE LOCAL OPTION SALES TAX PROJECTS FISCAL YEAR 2012 LOCATION/DESCRIPTION LABELLE ELEMENTARY LASSITER HIGH LEWIS ELEMENTARY LINDLEY 6TH GRADE ACADEMY LINDLEY MIDDLE LOST MOUNTAIN MIDDLE LOVINGGOOD MIDDLE MABLETON ELEMENTARY MABRY MIDDLE MAINTENANCE FACILITY ARGO ROAD MARS HILL ROAD BUS SHOP MARTHA MOORE EDUCATION CENTER MCCALL PRIMARY MCCLESKEY MIDDLE MCCLURE MIDDLE MCEACHERN HIGH MILFORD ELEMENTARY MOUNTAIN VIEW ELEMENTARY MT BETHEL ELEMENTARY MURDOCK ELEMENTARY NICHOLSON ELEMENTARY NICKAJACK ELEMENTARY NORTH COBB HIGH NORTON PARK ELEMENTARY OAKWOOD HIGH OSBORNE HIGH PALMER MIDDLE PEBBLEBROOK HIGH PICKETT'S MILL ELEMENTARY PINE MOUNTAIN MIDDLE PITNER ELEMENTARY PITTS TRANSPORTATION CENTER POPE HIGH POWDER SPRINGS ELEMENTARY POWERS FERRY ELEMENTARY RECORDS CENTER RIVERSIDE INTERMEDIATE RIVERSIDE PRIMARY ROCKY MOUNT ELEMENTARY ROSE GARDEN RUSSELL ELEMENTARY SANDERS ELEMENTARY SANDERS ROAD BUS SHOP SEDALIA PARK ELEMENTARY SHALLOWFORD FALLS ELEMENTARY SIMPSON MIDDLE SKY VIEW ELEMENTARY SMITHA MIDDLE SOPE CREEK ELEMENTARY SOUTH COBB HIGH SPRAYBERRY HIGH STILL ELEMENTARY SYSTEMWIDE TAPP MIDDLE TEASLEY ELEMENTARY TIMBER RIDGE ELEMENTARY TRITT ELEMENTARY VARNER ELEMENTARY VAUGHAN ELEMENTARY WALTON HIGH WHEELER HIGH 440 GLOVER STREET 514 GLOVER STREET 538 GLOVER STREET 590 COMMERCE PARK DRIVE TOTAL PROJECT EXPENDITURES TRANSFER/PROPERTY TAX ROLLBACK *** FUND TOTAL *** Approved Budget 4,507,698 2,677,406 2,633,796 229,988 4,316,636 21,370,265 550,858 10,762,779 9,887,493 715,169 25,171,440 2,224,600 1,967,841 429,522 570,851 5,620,305 232,481 120,050 12,848,547 4,372,185 801,885 12,062,824 273,788 8,888,290 15,218,083 2,523,317 98,000 664,573 954,888 326,250 1,412,708 128,000 9,537,353 880,341 7,854,321 131,076 3,979,977 6,884,096 330,750 1,651,275 5,957,701 699,614 2,855,808 2,111,288 7,020,632 138,791,133 1,257,349 437,327 189,264 1,902,180 652,313 716,503 21,196,265 8,541,169 627,247,680 69,000,000 $ 696,247,680 $ Revised Budget 5,677,475 3,630,268 1,648,826 2,478,802 1,324,032 5,489,759 18,867,750 1,648,166 6,756,949 24,008 5,054 486,469 10,621,636 1,051,616 22,997,909 7,862,199 2,922,177 1,284,851 1,441,753 7,444,203 714,666 848,971 11,666,375 4,948,952 1,334,540 7,937,899 1,031,233 6,184,050 23,205,025 3,177,004 777,488 7,368,801 2,717,333 1,145,449 1,991,963 7,758 867,986 9,018,000 1,315,858 15,054 8,179,558 899,171 6,229 4,047,090 8,381,459 852,537 2,038,460 5,613,762 1,381,341 5,355,312 3,622,139 8,939,905 38,387,324 1,755,073 909,019 734,535 2,920,280 1,011,215 1,167,538 12,226,687 10,509,687 249,845 1,347,300 109,208 88,231 608,120,710 114,867,945 722,988,655 Expended Inception through 06/30/12 5,668,221 3,630,267 1,648,826 2,478,778 1,324,032 5,489,758 18,867,746 1,648,166 6,756,949 24,008 5,054 486,469 10,621,636 1,051,615 22,997,902 7,862,198 2,922,172 1,284,850 1,441,750 7,444,205 714,661 848,969 11,666,370 4,948,946 1,334,539 7,937,894 1,031,233 6,184,043 23,205,024 3,177,003 777,488 7,368,798 2,717,331 1,145,446 1,991,959 7,758 867,986 9,017,998 1,315,854 15,054 8,179,546 899,170 6,229 4,047,087 8,381,456 852,536 2,038,452 5,613,762 1,381,340 5,355,308 3,622,138 8,939,900 17,377,027 1,755,069 909,017 734,534 2,920,278 1,011,213 1,167,537 12,226,685 10,509,682 249,845 1,347,300 109,207 88,230 585,187,904 114,867,945 $ 700,055,849 Expended Encumbered FY12 as of 6/30/12 20,750 - - - - - (21) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 26,493 - - - - - - - - - - - - - - - - - (2) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,320 - - - - - - - 5,953,584 1,852,557 22,233,815 - $ 28,187,399 $ 1,852,557 Uncommitted 9,254 1 - 24 1 4 1 7 1 5 1 3 (2) 5 2 5 6 1 5 7 1 1 3 2 3 4 2 4 12 1 3 3 1 8 1 4 1 5 21,010,297 4 2 1 2 2 1 2 5 1 1 21,080,249 $ 21,080,249 92 COBB COUNTY SCHOOL DISTRICT SPLOST III - SPECIAL PURPOSE LOCAL OPTION SALES TAX PROJECTS FISCAL YEAR 2012 LOCATION/DESCRIPTION ACWORTH INTERMEDIATE ADDISON ELEMENTARY ADULT EDUCATION CENTER ALLATOONA HIGH ARGYLE ELEMENTARY AUSTELL INTERMEDIATE AUSTELL PRIMARY AWTREY MIDDLE BAKER ELEMENTARY BAKER ROAD BUS SHOP BARBER MIDDLE BELLS FERRY ELEMENTARY BELMONT HILLS ELEMENTARY BIG SHANTY ELEMENTARY BIRNEY ELEMENTARY BLACKWELL ELEMENTARY BROWN ELEMENTARY BRUMBY ELEMENTARY BRYANT ELEMENTARY BULLARD ELEMENTARY CAMPBELL HIGH CAMPBELL MIDDLE CHALKER ELEMENTARY CHEATHAM HILL ELEMENTARY CLARKDALE ELEMENTARY CLARKDALE REPLACEMENT ELEMENTARY CLAY ELEMENTARY COMPTON ELEMENTARY COOPER MIDDLE DANIELL MIDDLE DAVIS ELEMENTARY DICKERSON MIDDLE DODGEN MIDDLE DOWELL ELEMENTARY DUE WEST ELEMENTARY DURHAM MIDDLE EAST COBB MIDDLE EAST SIDE ELEMENTARY EAST SIDE REPLACEMENT ELEMENTARY EASTVALLEY ELEMENTARY FAIR OAKS ELEMENTARY FLOYD MIDDLE FORD ELEMENTARY FREY ELEMENTARY GARRETT MIDDLE GARRISON MILL ELEMENTARY GREEN ACRES ELEMENTARY GRIFFIN MIDDLE HARMONY LELAND ELEMENTARY HARRISON HIGH HAVEN @ FITZHUGH LEE HAVEN @ HAWTHORNE HAYES ELEMENTARY HIGHTOWER TRAIL MIDDLE HILLGROVE HIGH HOLLYDALE ELEMENTARY KEHELEY ELEMENTARY KELL HIGH KEMP ELEMENTARY KENNESAW ELEMENTARY KENNESAW MOUNTAIN HIGH KENNESAW WAREHOUSE Approved Budget Revised Budget Expended Inception through 06/30/12 Expended FY12 Encumbered as of 6/30/12 Uncommitted 496,193 1,043,331 397,104 - 1,318,244 282,202 113,337 4,154,806 3,436,575 721,525 651,496 7,076,214 1,327,563 2,013,432 3,942,821 377,384 1,077,413 1,080,925 1,040,025 106,366 4,883,357 5,799,494 1,449,276 3,113,452 946,788 514,377 1,427,439 1,101,700 6,180,190 3,827,240 1,885,533 1,662,303 2,198,797 1,210,036 1,460,314 3,613,109 27,030,976 991,794 1,455,706 2,259,564 3,535,560 1,335,206 14,734,437 3,796,410 1,237,190 2,064,731 591,860 4,240,110 1,711,339 1,100,656 1,016,015 5,280,637 176,890 1,061,830 3,508,784 446,849 882,673 2,260,679 3,347,006 21,244,784 1,091,037 1,367,389 397,926 1,943,597 1,802,295 880,630 636,671 4,459,100 3,519,332 598,136 1,726,662 6,238,748 1,339,980 2,062,437 3,717,333 1,050,358 1,325,207 1,885,558 1,742,581 903,964 5,208,381 6,497,188 1,738,280 3,467,601 184,107 5,955,920 820,620 1,907,325 1,841,999 5,958,909 3,129,383 2,238,789 2,346,068 2,353,916 1,412,895 2,247,228 4,081,668 549,764 20,259,565 1,289,138 1,301,700 2,430,076 3,399,096 1,378,728 11,315,304 3,488,118 1,569,863 2,077,700 966,396 21,388,768 288,842 1,052,620 1,423,476 4,468,227 2,531,307 1,288,956 3,441,233 2,731,263 1,394,547 1,948,987 5,280,217 29,289,867 858,701 1,035,600 113,646 1,853,992 635,360 658,369 510,578 1,988,815 971,820 878 1,299,129 5,921,147 1,298,956 2,037,084 698,433 707,037 400,226 1,087,589 977,531 829,463 5,086,093 1,318,550 1,303,141 3,340,922 184,107 5,407,150 798,415 735,694 1,678,214 3,518,407 2,804,920 2,212,949 2,312,078 1,613,507 1,388,328 2,214,422 1,792,588 541,640 19,967,755 1,272,890 1,275,570 1,605,720 702,350 1,296,516 8,659,832 619,374 1,550,538 1,483,268 438,214 3,999,129 283,766 196,398 1,398,328 2,679,194 2,281,432 1,207,955 2,430,877 2,135,930 712,803 1,393,572 4,550,222 7,766,959 363,834 540,846 22,898 1,226,948 127,817 195,637 96,883 1,282,132 435,493 878 343,159 3,819,527 685,076 1,201,037 260,490 64,800 61,897 219,264 283,329 123,078 1,591,021 656,743 202,535 682,481 22,303 3,227,681 431,977 159,367 339,766 2,980,611 990,587 788,587 860,064 283,580 525,131 598,367 410,038 83,525 3,169,783 442,781 327,878 257,121 104,012 60,734 7,314,482 238,490 92,760 648,356 112,070 1,982,217 35,466 42,213 490,638 2,112,217 844,930 420,310 746,705 784,653 180,540 233,759 2,333,145 3,329,040 10,216 127,757 64,466 175,314 72,529 45,111 1,568,693 141,692 37,601 105,876 51,317 10,091 153,259 18,455 71,423 5,941 51,910 75,662 4,332,904 26,984 10,125 438,844 2,885 126,963 6,804 2,045,175 53,780 4,865 9,644 110,281 10,077 6,964 4,865 32,971 9,896 - 100,122 10,512 1,525,162 123,938 512,825 - 14,263,146 - 10,652 717,286 36,028 - 854,333 46,930 18,419 38,550 473,073 1,634,860 222,120 204,032 284,280 25,139 991,621 149,732 80,982 901,592 2,405,820 559,657 321,657 266,284 41,024 15,262 2,865,641 324,866 924,981 726,546 759,109 22,591 46,626 845,734 408,155 116,554 109,926 19,320 1,044,668 156,981 395,327 270,683 20,975 24,346 630,128 14,490 25,842 2,284,215 8,124 258,839 16,248 16,234 824,356 2,596,624 71,700 1,130,310 2,744,806 19,325 81,607 528,182 3,126,493 5,076 856,222 14,496 1,071,747 213,847 81,001 156,023 548,403 663,325 516,865 256,922 19,888,048 93 COBB COUNTY SCHOOL DISTRICT SPLOST III - SPECIAL PURPOSE LOCAL OPTION SALES TAX PROJECTS FISCAL YEAR 2012 LOCATION/DESCRIPTION KINCAID ELEMENTARY KING SPRINGS ELEMENTARY LABELLE ELEMENTARY LASSITER HIGH LEWIS ELEMENTARY LINDLEY 6TH GRADE ACADEMY LINDLEY MIDDLE LOST MOUNTAIN MIDDLE LOVINGGOOD MIDDLE MABLETON ELEMENTARY MABLETON REPLACEMENT ES MABRY MIDDLE MAINTENANCE FACILITY ARGO ROAD MARS HILL ROAD BUS SHOP MARTHA MOORE EDUCATION CENTER MCCALL PRIMARY MCCLESKEY MIDDLE MCCLURE MIDDLE MCEACHERN HIGH MILFORD ELEMENTARY MOUNTAIN VIEW ELEMENTARY MT BETHEL ELEMENTARY MURDOCK ELEMENTARY NICHOLSON ELEMENTARY NICKAJACK ELEMENTARY NORTH COBB HIGH NORTON PARK ELEMENTARY OAKWOOD HIGH OSBORNE HIGH PALMER MIDDLE PEBBLEBROOK HIGH PICKETT'S MILL ELEMENTARY PINE MOUNTAIN MIDDLE PITNER ELEMENTARY PITTS TRANSPORTATION CENTER POPE HIGH POWDER SPRINGS ELEMENTARY POWERS FERRY ELEMENTARY RIVERSIDE INTERMEDIATE RIVERSIDE PRIMARY ROCKY MOUNT ELEMENTARY ROSE GARDEN SCHOOL RUSSELL ELEMENTARY SANDERS ELEMENTARY SANDERS ROAD BUS SHOP SEDALIA PARK ELEMENTARY SHALLOWFORD FALLS ELEMENTARY SIMPSON MIDDLE SKY VIEW ELEMENTARY SMITHA MIDDLE SMYRNA AREA REPLACEMENT ES SOPE CREEK ELEMENTARY SOUTH COBB HIGH SPRAYBERRY HIGH STILL ELEMENTARY SYSTEMWIDE TAPP MIDDLE TEASLEY ELEMENTARY TIMBER RIDGE ELEMENTARY TRITT ELEMENTARY VARNER ELEMENTARY VAUGHAN ELEMENTARY WALTON HIGH WEST COBB 9TH GRADE CENTER WHEELER HIGH 440 GLOVER STREET 514 GLOVER STREET 538 GLOVER STREET 590 COMMERCE PARK DRIVE TOTAL PROJECT EXPENDITURES Approved Budget Revised Budget Expended Inception through 06/30/12 Expended FY12 Encumbered as of 6/30/12 Uncommitted 3,458,008 3,273,505 3,241,646 657,625 10,091 21,768 2,570,192 3,139,532 2,412,261 1,698,200 114,394 612,877 537,008 1,135,294 1,129,233 365,850 - 6,061 19,710,822 20,072,707 13,986,299 11,606,984 5,331,177 755,231 1,078,833 1,625,988 790,378 71,876 41,696 793,914 2,194,040 2,212,854 1,315,145 927,708 630,845 266,864 747,495 1,443,716 1,356,995 300,106 3,142 83,579 2,541,438 2,551,556 1,799,374 282,125 67,865 684,317 78,500 1,052,707 1,010,991 287,283 6,908 34,808 - 376,819 371,960 35,644 - 4,859 28,150,542 22,226,904 19,582,991 16,953,132 1,904,457 739,456 4,925,337 4,626,178 3,714,765 153,876 4,865 906,548 1,327,752 820,382 518,652 110,691 18,904,274 690,684 4,945,324 914,540 2,083,632 2,433,140 3,828,525 937,614 3,006,933 29,811,178 1,924,009 772,510 7,299,608 63,477 3,300,243 17,072,723 926,767 26,949,449 17,804,561 3,742,333 657,886 896,148 323,888 1,611,065 372,663 786,539 1,446,584 1,415,981 1,057,753 1,111,144 696,449 915,742 730,611 12,421,542 1,587,463 6,620,956 1,302,102 2,345,468 2,299,573 3,624,702 1,230,668 2,783,980 22,430,769 2,393,267 971,526 8,531,789 889,260 6,206,685 515,707 10,146,659 1,499,960 22,189,661 16,101,861 3,467,420 993,843 1,349,662 642,515 1,756,800 336,184 1,570,912 1,553,405 1,133,939 1,195,919 1,049,277 646,172 478,857 637,700 9,540,191 1,131,142 3,855,243 601,291 1,689,777 1,102,434 2,667,969 467,813 1,719,013 20,884,612 1,568,760 201,185 2,940,248 811,431 4,876,552 489,909 8,474,174 806,245 13,414,487 13,238,679 1,036,511 975,751 939,677 600,373 755,858 48,968 1,131,379 1,536,660 925,059 1,184,840 1,007,566 3,883 246,131 118,342 6,790,158 593,361 1,627,174 94,510 705,261 259,896 184,480 91,029 1,110,615 4,149,301 105,868 58,597 1,142,198 195,017 2,797,952 47,651 4,260,905 246,299 6,138,414 5,763,925 209,326 363,397 454,321 200,582 85,145 39,741 457,045 681,320 897,709 430,075 1,914 29,914 30,252 1,339,248 215,205 70,893 28,038 26,343 2,799 53,854 385,659 288,257 7,580 7,634 172,767 8,903 977,244 10,070 317,231 9,796 263,142 241,571 94,484 10,188 60,297 14,721 393,647 61,890 - 59,953 20,363 436,885 62,659 1,542,103 241,116 2,694,820 700,811 627,653 1,170,796 953,934 709,001 679,308 1,257,900 816,927 762,707 5,418,774 68,926 352,889 15,728 1,355,254 683,919 8,512,032 2,621,611 2,430,909 18,092 315,501 31,954 940,645 272,495 45,886 16,745 146,990 11,079 899,547 1,351,747 625,426 59,196 10,091 716,230 19,920,740 13,070,889 10,430,386 7,184,617 589,710 2,050,793 1,262,673 383,049 383,046 22,530 - 3 5,472,621 5,152,882 866,362 196,764 4,865 4,281,655 28,170,146 32,063,692 15,424,324 14,968,124 13,490,688 3,148,680 6,227,104 5,749,651 4,368,736 3,456,130 758,661 622,254 28,519,045 26,057,837 25,109,055 4,524,468 189,812 758,970 25,333,056 16,176,537 15,105,084 4,445,189 229,509 841,944 970,841 1,433,096 634,140 34,470 10,574 788,382 231,269,444 39,485,008 6,165,160 1,889,119 - 33,319,848 6,640,133 6,009,661 931,443 214,902 187,765 4,890,453 1,782,903 2,173,315 1,381,377 234,151 43,466 748,472 769,896 1,068,319 439,750 100,860 10,091 618,478 1,473,177 1,725,819 1,650,259 802,228 10,091 65,469 4,070,429 3,051,080 2,874,595 465,620 55,121 121,364 613,490 1,247,398 3,456,045 6,616,773 18,303,208 - 9,409,088 28,258,575 379,955 12,223,772 491,861 3,830,261 229,503 401,066 - 43,102 $ 797,656,675 $ 631,492,408 $ 1,169,603 399,835 5,522,714 3,434,988 - - 13,099,596 10,728,493 3,543,465 1,436,539 2,736,265 1,165,742 341,208 290,168 40,080 2,252 398,026,420 $ 183,447,675 $ 2,068 75,727 801,550 292,509 - - 12,749,749 2,409,230 169,721 8,510,586 10,312 1,083,684 1,098 58,760 - 3,022 72,951,099 $ 160,514,889 94 (This page was left blank intentionally) )2lnge{a Su {j)odgen :JvLiddle (This page was left blank intentionally) STATISTICAL SECTION (Unaudited) This part of the District's Comprehensive Annual 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 District's overall financial position. Contents: Financial Trends These schedules contain trend information to help the reader understand how the District's financial performance has changed over time. Revenue Capacity These schedules contain information to help the reader assess the District's major revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the District's current level of outstanding debt and the District'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 District's financial activities take place. Operating Information These schedules contain staffing, key operating statistics, comparisons and capital asset data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs. Sources: Unless otherwise noted, the information contained here is derived from comprehensive annual financial reports for the indicated years. The District began implementation of GASB Statement No. 54 as of July 1, 2010. 95 COBB COUNTY SCHOOL DISTRICT NET ASSETS BY COMPONENT LAST TEN FISCAL YEARS (amounts expressed in thousands) Net Asset Components Invested in Capital Assets, Net of Related Debt Restricted for: Debt Service Special Purpose Local Option Sales Tax II Special Purpose Local Option Sales Tax III Food & Nutrition Services Unrestricted Total Primary Government Net Assets June 30, 2003 $ 543,172 16,989 - 76,861 $ 637,022 Fiscal Year June 30, 2004 June 30, 2005 $ 508,226 $ 653,443 18,340 - 217,726 11,361 - 238,391 $ 744,292 $ 903,195 June 30, 2006 $ 873,831 6,777 - 170,994 $ 1,051,602 Source: District Records 96 June 30, 2007 $ 877,694 June 30, 2008 $ 1,054,860 Fiscal Year June 30, 2009 June 30, 2010 $ 1,060,388 $ 1,054,911 June 30, 2011 $ 1,066,545 June 30, 2012 $ 1,230,853 11,785 - 319,370 1,826 - 227,758 1,523 - 244,178 1,356 - 285,849 51,056 112,546 21,676 171,646 22,933 33,222 20,200 147,483 $ 1,208,849 $ 1,284,444 $ 1,306,089 $ 1,342,116 $ 1,423,469 $ 1,454,691 97 COBB COUNTY SCHOOL DISTRICT CHANGES IN NET ASSETS LAST TEN FISCAL YEARS (amounts expressed in thousands) Expenses Governmental Activities: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Interest and Fiscal Charges Total Governmental Expenses Program Revenues Governmental Activities: Charges For Services: Instruction Pupil Services School and Administrative Services Maintenance and Operations Student Activities Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues Governmental Net Expenses General Revenues and Other Changes in Net Assets General Revenues Taxes: Property Taxes Levied for General Purposes Property Taxes Levied for Debt Service Sales Tax Intergovernmental Tuition and Fees Interest Income Insurance and Damage Recoveries Gain on Sale of Net Assets Other Total General Revenues Extraordinary Item: Gain after Insurance Recovery Change in Net Assets June 30, 2003 Fiscal Year June 30, 2004 June 30, 2005 June 30, 2006 $ 570,553 $ 564,592 $ 581,871 $ 629,565 20,391 20,529 22,342 24,453 28,920 32,235 32,643 36,513 136,238 141,537 142,323 149,359 36,097 37,444 40,610 43,660 47,910 45,096 47,238 53,565 32,401 33,023 29,401 29,476 10,307 8,004 6,375 4,500 $ 882,817 $ 882,460 $ 902,803 $ 971,091 $ 1,281 $ 1,326 $ 1,340 $ 1,361 7 7 12 13 36,186 39,166 41,514 40,710 985 1,360 833 840 33,059 34,881 30,438 29,651 396,829 398,800 397,845 437,251 15,204 8,404 38,203 20,306 $ 483,551 $ 483,944 $ 510,185 $ 530,132 $ (399,266) $ (398,516) $ (392,618) $ (440,959) $ 353,596 $ 368,618 $ 380,687 $ 412,017 18,344 18,691 19,279 20,851 103,256 108,864 115,673 125,742 6,653 4,951 6,283 12,928 - 28 - - 4,535 4,036 9,447 17,178 8 3 1 2 (154) - - - 371 595 500 648 $ 486,609 $ 505,786 $ 531,870 $ 589,366 - - - - $ 87,343 $ 107,270 $ 139,252 $ 148,407 Source: District Records 98 June 30, 2007 June 30, 2008 Fiscal Year June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 $ 690,562 25,523 38,970 171,343 45,646 55,836 - 4,606 $ 1,032,486 $ 729,888 27,550 48,324 186,033 49,432 58,822 - 2,413 $ 1,102,462 $ 737,527 29,467 47,395 182,836 47,802 61,988 - 300 $ 1,107,315 $ 737,900 31,584 46,721 165,345 46,513 60,912 - - $ 1,088,975 $ 689,680 30,563 48,853 152,083 43,563 56,608 28,930 93 $ 1,050,373 $ 682,212 30,031 51,475 175,717 44,698 60,143 29,746 118 $ 1,074,140 $ 1,205 $ 1,481 $ 1,276 $ 1,184 $ 1,241 $ 1,068 6 11 11 10 13 11 44,245 44,199 43,557 41,142 27,312 27,921 893 1,110 2,254 1,332 909 983 - - - - 28,721 29,402 481,508 501,582 468,115 491,465 518,300 478,937 34,884 866 2,739 199 541 30,832 $ 562,741 $ 549,249 $ 517,952 $ 535,332 $ 577,037 $ 569,154 $ (469,745) $ (553,213) $ (589,363) $ (553,643) $ (473,336) $ (504,986) $ 445,840 $ 466,320 $ 482,690 $ 470,456 $ 423,694 $ 405,965 22,473 1,415 142 52 43 - 129,099 128,043 110,242 112,395 113,739 122,557 14,178 17,428 7,307 2,323 1,475 1,079 - - - - - - 21,231 15,070 5,931 2,979 3,070 2,076 4 - - - - - - - - - - 516 523 532 876 953 2,962 4,015 $ 633,348 $ 628,808 $ 607,188 $ 589,158 $ 544,983 $ 536,208 - - - 512 - - $ 163,603 $ 75,595 $ 17,825 $ 36,027 $ 71,647 $ 31,222 99 COBB COUNTY SCHOOL DISTRICT FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (amounts expressed in thousands) General Fund Reserved Unreserved Nonspendable Restricted Committed Assigned Unassigned Total General Fund June 30, 2003 Fiscal Year June 30, 2004 June 30, 2005 June 30, 2006 $ 18,743 $ 17,008 $ 18,418 $ 18,825 40,403 41,832 51,463 93,944 - - - - - - - - - - - - - - - - - - - - $ 59,146 $ 58,840 $ 69,881 $ 112,769 All Other Governmental Funds Reserved $ Unreserved, reported in: Special Revenues Funds Capital Projects Funds Nonspendable Restricted Committed Assigned Total All Other Governmental Funds $ 32,801 $ 178,103 $ 11,379 (14,049) 30,131 $ 16,175 (130,328) 63,950 $ 79,166 $ 20,543 (43,463) 56,246 $ 127,327 24,459 (88,793) 62,993 (a) Implementation of GASB Statement No. 54: Fund Balance Reporting and Governmental Fund Type Definitions began July 1, 2010. Statement No. 54 provides clarification and transparency to fund balance classifications. The new standard changes overall definitions and classifications of governmental fund balance. Prior to these classifications, fund balance was separated into two groups, Reserved and Unreserved. Under GASB No. 54,the District's fund balance is classified as follows: 1) Nonspendable Fund Balance - Noncash assets, such as inventories and prepaid items. 2) Restricted Fund Balance - Funds with limitations imposed on their use by external restrictions. 3) Committed Fund Balance - Amounts that can only be used for specific purposes pursuant to a formal vote of the Cobb County Board of Education. 4) Assigned Fund Balance - Amounts designated by the Board of Education for specific purposes. 5) Unassigned Fund Balance - Residual, spendable fund balance after subtracting categories listed above. Source: District Records 100 June 30, 2007 June 30, 2008 Fiscal Year June 30, 2009 June 30, 2010 June 30, 2011 (a) June 30, 2012 (a) $ 28,335 $ 26,739 $ 114,566 101,848 - - - - - - - - - - $ 142,901 $ 128,587 $ 2,714 $ 77,575 80,289 $ 5,823 $ 79,783 85,606 $ -$ 324 46,256 99,863 146,443 $ 353 34,396 98,637 133,386 $ 61,017 $ 22,063 (18,507) - - - - $ 64,573 $ 21,580 $ 22,627 53,105 97,312 $ 24,165 $ 20,470 115,594 160,229 $ 67,008 $ 22,966 108,716 198,690 $ -$ 1,365 136,076 11,646 11,893 160,980 $ - 1,706 76,355 11,883 4,737 94,681 101 COBB COUNTY SCHOOL DISTRICT CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (amounts expressed in thousands) REVENUES: Taxes Intergovernmental Tuition and Fees Interest Income Insurance and Damage Recoveries Rentals Athletic Ticket Sales Other Total Revenues EXPENDITURES: Current: Instruction Pupil Services Instructional Services School and Administrative Services Student Transportation Maintenance and Operations Student Activities Interest and Fiscal Charges Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers-In Transfers-Out Proceeds from Sale of Capital Assets Proceeds from Capital Lease Agreements Deferred Amount of Refunding Premium on Bonds Issued Refunding Bonds Redeemed Refunding Bonds Issued Total Other Financing Sources (Uses) Extraordinary Item: Proceeds from Insurance Recovery Net Change in Fund Balances 2003 $ 471,265 418,577 58,375 4,535 8 603 2,652 480 956,495 Fiscal Year 2004 2005 $ 491,878 $ 512,566 411,814 442,157 60,578 58,275 4,036 9,447 3 1 970 433 2,991 3,219 937 639 973,207 1,026,737 2006 $ 555,012 470,136 58,905 17,178 2 334 2,908 1,000 1,105,475 532,608 17,102 27,294 118,351 30,677 46,495 32,401 71,058 39,560 11,160 926,706 538,504 17,729 31,182 120,842 32,506 44,591 33,023 74,898 41,501 8,838 943,614 545,466 19,280 31,060 125,244 34,900 46,116 29,401 - 139,852 44,462 8,095 1,023,876 573,603 20,998 33,948 126,927 37,443 51,251 29,476 - 147,980 46,561 6,320 1,074,507 29,789 29,593 2,861 30,968 30,468 (33,416) 11 4,215 1,278 24,669 (27,904) 1,843 5,312 3,920 24,938 (26,032) 2 (1,289) 4,062 (128,870) (a) 127,665 (a) 476 34,827 (35,992) 181 - (984) - - $ 31,067 $ 33,513 $ 3,337 $ 29,984 Non-Capitalized Expenditures Capitalized Expenditures Total Expenditures $ 879,302 $ 873,979 $ 900,487 47,404 69,635 123,389 $ 926,706 $ 943,614 $ 1,023,876 $ 962,671 111,836 $ 1,074,507 Debt Service as a Percentage of Non Capitalized Expenditures 5.77% 5.76% 5.84% 5.49% (a) In fiscal year 2005, the District issued $127,665,000 of general obligation bonds for a refunding of $128,870,000 of series 1995 general obligation bonds. The refunding was undertaken to reduce total future debt service payments. Source: District Records 102 2007 $ 593,038 529,965 34,488 21,231 4 397 782 1,179,905 2008 $ 589,915 519,632 34,795 15,070 1 631 735 1,160,779 Fiscal Year 2009 2010 $ 585,637 477,654 33,143 5,931 11 1,824 1,374 1,105,574 $ 574,944 493,883 31,684 2,979 3 897 1,060 1,105,450 2011 $ 540,938 520,316 54,410 3,070 466 3,320 2,753 1,125,273 2012 $ 530,686 510,582 55,448 2,325 526 3,410 4,016 1,106,993 653,593 23,117 37,193 154,002 40,328 55,007 - 131,234 49,699 6,092 1,150,265 700,308 25,206 46,992 167,644 45,002 58,119 92,901 1,810 2,413 1,140,395 692,193 25,770 45,427 164,325 43,938 61,237 48,372 7,376 300 1,088,938 675,152 26,636 43,890 142,959 41,949 59,112 75,261 1,064,959 634,684 25,611 47,255 148,066 40,509 56,584 28,930 93 128,890 1,110,622 634,330 25,740 49,700 169,535 41,469 56,514 29,746 118 179,490 1,186,642 29,640 20,384 16,636 40,491 14,651 (79,649) 25,953 (27,730) 340 9,865 8,428 6,345 (8,476) 172 - (1,959) 3,576 (5,696) 103 - (2,017) 3,492 (4,271) 114 - (665) 27,953 (29,451) 268 - (1,230) 24,930 (25,424) 787 - 293 - $ 38,068 $ 1,028,751 121,514 $ 1,150,265 - $ 18,425 $ 1,055,849 84,546 $ 1,140,395 - 3,952 - - $ 14,619 $ 43,778 $ 13,421 $ (79,356) $ 1,050,220 38,718 $ 1,088,938 $ 1,019,111 45,848 $ 1,064,959 $ 994,729 115,893 $ 1,110,622 $ 1,010,754 175,888 $ 1,186,642 5.42% 0.40% 0.73% - - - 103 COBB COUNTY SCHOOL DISTRICT PROPERTY TAX LEVIES AND COLLECTIONS JUNE 30, 2012 Property Taxes Collected and Balances Receivable 2006 2007 2008 2009 2010 2011 amounts in thousands $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2012 Balance Receivable Debt Service Collections General Fund Collections Balances as of June 30, 2012 (amounts expressed in thousands) 2006 2007 2008 2009 General Fund: Total Taxes Levied $ 394,318 $ 428,739 $ 459,381 $ 477,932 2010 $ 468,234 2011 $ 428,077 2012 $ 403,777 Total $ 3,060,458 Collected or Released: Current Year $ 391,222 $ 424,419 $ 454,048 $ 470,480 $ 460,995 $ 421,459 $ 398,279 $ 3,020,902 % of Total Taxes Levied 99.21% 98.99% 98.84% 98.44% 98.45% 98.45% 98.64% 98.71% Subsequent Years 2,792 4,093 4,954 6,656 5,253 4,388 - 28,136 Total Coll. or Released $ 394,014 $ 428,512 $ 459,002 $ 477,136 $ 466,248 $ 425,847 $ 398,279 $ 3,049,038 Balance Receivable $ 304 $ 227 $ 379 $ 796 $ 1,986 $ 2,230 $ 5,498 $ 11,420 % Collected/Released 99.92% 99.95% 99.92% 99.83% 99.58% 99.48% 98.64% 99.63% Debt Service Fund:(a) Total Taxes Levied $ 19,886 $ 21,109 $ -$ -$ -$ -$ - $ 40,995 Collected or Released: Current Year $ 19,722 $ 20,872 $ % of Total Taxes Levied 99.18% 98.88% Subsequent Years 148 214 -$ - -$ - -$ - -$ - - $ 40,594 - 99.02% - 362 Total Coll. or Released Balance Receivable % Collected/Released Total - All Funds: Total Taxes Levied $ 19,870 $ 21,086 $ $ 16 $ 23 $ 99.92% 99.89% -$ -$ 0.00% -$ -$ 0.00% -$ -$ 0.00% -$ -$ 0.00% -$ -$ 0.00% 40,956 39 99.90% $ 414,204 $ 449,848 $ 459,381 $ 477,932 $ 468,234 $ 428,077 $ 403,777 $ 3,101,453 Collected or Released: Current Year % of Total Taxes Levied Subsequent Years Total Coll. or Released Balance Receivable $ 410,944 $ 445,291 $ 454,048 $ 470,480 $ 460,995 $ 421,459 $ 398,279 $ 3,061,496 99.21% 98.99% 98.84% 98.44% 98.45% 98.45% 98.64% 98.71% 2,940 4,307 4,954 6,656 5,253 4,388 - 28,498 $ 413,884 $ 449,598 $ 459,002 $ 477,136 $ 466,248 $ 425,847 $ 398,279 $ 3,089,994 $ 320 $ 250 $ 379 $ 796 $ 1,986 $ 2,230 $ 5,498 $ 11,459 % Collected/Released 99.92% 99.94% 99.92% 99.83% 99.58% 99.48% 98.64% 99.63% Note: Only seven years of data is presented because the Georgia statute of limitations for collection of delinquent taxes is seven years. (a) Debt Service millage discontinued July 2007. Debt Service was fully paid by the end of fiscal year 2007. Source: Cobb County Government 104 COBB COUNTY SCHOOL DISTRICT ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS amounts in thousands $30,000,000 Property Digest Components-Assessed Value $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Motor Vehicles Public Services Maint & Oper Debt Service (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Net M & O For Maintenance and Operations of Schools Real Personal Property Property $ 14,221,023 $ 1,337,804 14,869,386 1,278,400 15,849,951 1,276,988 17,288,487 1,319,018 18,981,827 1,344,532 20,510,838 1,343,632 21,420,500 1,451,112 21,007,134 1,424,923 18,958,062 1,352,078 17,573,940 1,357,140 Net Bond For Debt Service of School Bonds Real Personal Property Property $ 15,501,647 $ 1,337,804 16,174,359 1,278,400 17,146,090 1,276,988 18,630,090 1,319,018 20,349,394 1,344,532 - - - - - - - - - - Public Services Digest $ 457,613 451,723 450,043 457,754 491,717 485,234 523,121 547,675 680,936 753,229 Motor Vehicles Digest $ 1,783,997 1,774,879 1,736,742 1,688,346 1,747,132 1,845,671 1,892,692 1,794,543 1,658,511 1,679,543 Total Assessed Value $ 19,081,061 19,679,361 20,609,863 22,095,208 23,932,775 24,185,375 25,287,425 24,774,275 22,649,587 21,363,852 Estimated Actual Value $ 47,702,651 49,198,403 51,524,657 55,238,019 59,831,937 60,463,438 63,218,563 61,935,688 56,623,969 53,409,628 Direct Rate 19.00% 19.00% 19.00% 19.00% 19.00% 18.90% 18.90% 18.90% 18.90% 18.90% Note: Prior to 2008, the property digest for debt service of school bonds included properties annexed by the City of Marietta which were no longer taxed for general operations but were still taxed for unpaid school bonds issued before the date of annexation. Taxes levied for debt service were discontinued in July, 2007 after bonds were fully paid in fiscal year 2007. Prior to 2008, Maintenance and Operations were included in the bonds amount; therefore, in 2008 through 2012, only the M & O is reflected. Property Taxes - Assessments are based on 40% of the appraised market value by law as of January 1 each year. School tax, by law, cannot be greater than 20 mills per dollar for the support and maintenance of education. Source: Cobb County Tax Commissioner 105 COBB COUNTY SCHOOL DISTRICT DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS JUNE 30, 2012 22.000 20.000 18.000 16.000 14.000 12.000 10.000 8.000 2003 2004 2005 2006 2007 2008 2009 2010 School District Cobb County 2011 2012 (all tax rates are per $1000 assessed valuation) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cobb County School District M&O Debt 19.00 0.90 19.00 0.90 19.00 0.90 19.00 0.90 19.00 0.90 18.90 - 18.90 - 18.90 - 18.90 - 18.90 - Cobb County M&O Debt 9.45 0.27 9.50 0.22 9.50 0.22 9.38 0.22 9.38 0.22 9.38 0.22 9.38 0.22 9.38 0.22 9.38 0.22 10.78 0.33 Acworth M&O Debt 7.50 - 7.45 - 7.37 - 7.87 - 7.68 - 7.60 - 7.60 - 7.60 - 7.60 - 7.60 - Additional Millages (a) Austell M&O Debt 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - 3.12 - Kennesaw M&O Debt 6.75 - 6.75 - 6.75 - 6.75 1.50 6.75 1.50 8.00 1.50 8.00 1.50 8.00 1.50 8.00 1.50 8.00 1.50 Powder Springs M&O Debt 7.00 - 7.00 - 8.50 - 8.50 - 8.50 - 8.50 - 8.50 - 8.50 - 8.50 - 8.50 - Smyrna M&O Debt 9.85 - 9.70 - 9.65 - 9.57 - 9.17 - 8.99 - 8.99 - 8.99 - 8.99 - 8.99 - State Tax 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 (a) Taxpayers residing in cities are responsible for School District, County and State taxes. Source: Cobb County Government 106 COBB COUNTY SCHOOL DISTRICT PRINCIPAL PROPERTY TAXPAYERS DECEMBER 31, 2011 AND NINE YEARS AGO (a) Principal Property Taxpayers - 2011 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Bellsouth Telecommunications Interstate North Office Park LP Walton Communities Wells REIT II Wildwood Properties Lockheed Martin Corp Cobb EMC SP4 Properties Ohio Teacher Retirement Fund Home Depot Georgia Power Taxpayer Georgia Power Home Depot Ohio Teacher Retirement Fund SP4 Properties Cobb EMC Lockheed Martin Corp Wells REIT II Wildwood Properties Walton Communities Interstate North Office Park LP Bellsouth Telecommunications Wildwood Properties Post Properties ALMI Land Development State of California Public Employees Crow Properties TOTAL Type of Business Utilities Retail Investment Real Estate Utilities Aircraft Real Estate Real Estate Real Estate Utilities Real Estate Real Estate Real Estate Real Estate Real Estate December 31, 2011 Percent of Total Taxes Taxes Rank Levied Levied 1 $ 8,149,615 2.018% 2 2,790,707 0.691% 3 2,700,546 0.669% 4 1,985,347 0.492% 5 1,984,065 0.491% 6 1,743,466 0.432% 7 1,040,970 0.258% 8 1,010,001 0.250% 9 985,603 0.244% 10 963,928 0.239% - - - - - - - - - - $ 23,354,248 5.784% December 31, 2002 Percent of Total Taxes Taxes Rank Levied Levied 6 $ 1,575,000 0.443% 3 2,364,000 0.665% - - - - 7 1,437,000 0.404% 5 1,635,000 0.460% - - - - - - 4 2,171,000 0.611% 1 4,053,000 1.140% 2 2,633,000 0.741% 8 1,252,000 0.352% 9 1,011,000 0.284% 10 947,000 0.266% $ 19,078,000 5.366% Note: School millage rate is 66.67% of total county rate. Taxes levied are multiplied by 66.67% to arrive at amount of school taxes. (a) Information is available only by calendar year; therefore, data reported is for December 31, 2011 and nine years earlier, December 31, 2002. Source: Cobb County Tax Commissioner 107 COBB COUNTY SCHOOL DISTRICT LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (amounts expressed in thousands) Debt Limit Total debt applicable to limit 2003 $ 1,908,106 $ 156,382 2004 $ 1,967,936 122,907 Fiscal Year 2005 2006 $ 2,060,986 $ 2,209,521 84,062 42,103 2007 $ 2,393,278 $ - Legal Debt Margin Total debt applicable as a percentage of debt limit $ 1,751,724 $ 1,845,029 $ 1,976,924 $ 2,167,418 $ 2,393,278 8.20% 6.25% 4.08% 1.91% - Debt Limit Total debt applicable to limit 2008 $ 2,418,538 $ - 2009 $ 2,528,743 $ - Fiscal Year 2010 $ 2,477,428 $ - 2011 $ 2,264,959 $ - 2012 $ 2,136,385 $ - Legal Debt Margin $ 2,418,538 $ 2,528,743 $ 2,477,428 $ 2,264,959 $ 2,136,385 Total debt applicable as a percentage of debt limit - - - - - Source: District Records 108 COBB COUNTY SCHOOL DISTRICT LEGAL DEBT MARGIN INFORMATION FISCAL YEAR 2012 Legal Debt Information - Fiscal Year 2012 $0 $2,136,385,100 Total Amount of Debt Applicable to Debt Limit Legal Debt Margin Net Assessed Valuation, Cobb County School District, January 1, 2011 Debt Limit - 10% of Assessed Value Amount of Debt Applicable to Debt Limit: Total Bonded Debt Total Amount of Debt Applicable to Debt Limit Legal Debt Margin Source: District Records 109 $ 21,363,851,000 $ 2,136,385,100 $ - $ - $ 2,136,385,100 COBB COUNTY SCHOOL DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Debt Per Capita $350 $300 $250 $200 $150 $100 $50 $2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (amounts expressed in thousands, except per capita) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Obligation Bonds $ 166,580 $ 128,870 $ 87,440 $ 44,780 - Capital Leases $ 10,857 $ 12,377 $ 8,140 $ 4,239 $ 9,186 $ 7,376 - - - - Total Primary Government Debt $ 177,437 $ 141,247 $ 95,580 $ 49,019 $ 9,186 $ 7,376 - - - - Annual Personal Income $ 23,589,661 $ 24,751,647 $ 26,371,168 $ 28,060,168 $ 29,527,141 $ 31,260,457 $ 30,899,585 $ 30,271,983 N/A N/A Debt as a Percentage of Personal Income 0.75% 0.57% 0.36% 0.17% 0.03% 0.02% - Note: Details regarding the District's outstanding debt can be found in the notes to the basic financial statements. Population of 642,143 provided by the Atlanta Regional Commission and excludes the City of Marietta. See page 111 for previous years' population. N/A = Data not currently available from source Source: District Records Annual Personal Income: US Department of Commerce Bureau of Economic Analysis Total Debt Per Capita $ 310 $ 246 $ 163 $ 82 $ 15 $ 12 - 110 COBB COUNTY SCHOOL DISTRICT RATIO OF NET GENERAL BONDED DEBT TO ESTIMATED ACTUAL VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS 0.35% Ratio of Net Bonded Debt to Estimated Actual Value 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 2003 2004 2005 2006 2007(a) 2008 2009 2010 2011 2012 Fiscal Year 2003 2004 2005 2006 2007(a) 2008 2009 2010 2011 2012 Population 572,358 $ 574,968 $ 586,245 $ 596,736 $ 606,706 $ 615,377 $ 617,750 $ 618,206 $ 633,084 $ 642,143 $ Estimated Actual Value 47,702,651,000 $ 49,198,403,000 $ 51,524,657,000 $ 55,238,019,000 $ 59,831,937,000 60,463,438,000 63,218,563,000 61,935,688,000 56,623,969,000 53,409,628,000 Gross Bonded Debt Restricted for Bonded Debt 166,580,000 $ 128,870,000 $ 87,440,000 $ 44,780,000 $ - $ - $ - $ - $ - 10,198,000 $ 5,963,000 $ 3,220,000 $ 2,538,000 $ 2,599,000 1,826,000 1,523,000 1,356,000 - Net Bonded Debt Ratio of Net Net Bonded Debt Bonded to Est. Debt Per Actual Value Capita 156,382,000 122,907,000 84,220,000 42,242,000 - 0.33% $ 273 0.25% $ 214 0.16% $ 144 0.08% $ 71 - - - - - - - - - - - - (a) All general obligation bonds were retired in fiscal year 2007. Source: District Records Population provided by non-financial District source and excludes the City of Marietta 111 COBB COUNTY SCHOOL DISTRICT COMPUTATION OF DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT JUNE 30, 2012 Direct and Overlapping Debt Per Capita $0 $58 Direct: Cobb County Schools Indirect: Cobb County Government Direct General Obligation Debt: Gross Bonded Debt $ - Overlapping General Obligation Debt: Cobb County Government (92% of $40,370,000) Total Direct and Overlapping General Obligation Debt $ $ 37,140,400 $ $ Debt Per Capita:* Direct General Obligation Debt $ Overlapping General Obligation Debt Total $ - 37,140,400 37,140,400 58 58 *Population of 642,143 provided by non financial District source and excludes the City of Marietta. Note: The overlap percentage is determined by the percentage of Fire District to Debt Service Fund of Cobb County Government. 112 COBB COUNTY SCHOOL DISTRICT COBB COUNTY DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Cobb County Population Growth 725,000 700,000 675,000 650,000 625,000 600,000 575,000 550,000 525,000 500,000 475,000 450,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Personal Fiscal Income Year Population (In Thousands) 2002 628,800 $ 23,009,999 2003 630,600 $ 23,589,661 2004 632,900 $ 24,751,647 2005 643,700 $ 26,371,168 2006 654,900 $ 28,060,168 2007 664,700 $ 29,527,141 2008 674,200 $ 31,260,457 2009 676,800 $ 30,899,585 2010 677,300 $ 30,271,983 2011 699,500 N/A Population Includes City of Marietta Per Capita Personal Income $ 36,594 $ 37,408 $ 39,108 $ 40,968 $ 42,846 $ 44,422 $ 46,367 $ 45,655 $ 43,888 N/A Average/ Median Household Income $ 62,510 $ 62,511 $ 61,087 $ 62,423 $ 61,682 $ 64,817 $ 70,472 $ 63,514 $ 59,896 $ 57,906 Median Age 33.4 33.4 34.4 34.9 35.6 35.9 36.2 34.8 35.4 35.6 Student Enrollment 96,489 97,294 101,141 103,285 105,482 106,572 106,056 105,742 106,836 106,502 Unemployment Rate 5.0% 4.7% 4.5% 4.8% 4.1% 3.8% 5.6% 8.8% 9.7% 8.9% Sources: Population - Atlanta Regional Commission Personal Income - US Department of Commerce Bureau of Economic Analysis Unemployment Rate - Georgia Department of Labor Average/Median Household Income - 2000-2005 Average Income-Atlanta Regional Commission; 2006-2010 Median Income-US Census Bureau (Census Bureau reports only Median Income) Median Age - US Census Bureau 113 COBB COUNTY SCHOOL DISTRICT PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (a) Principal Employers - 2011 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Six Flags Over Georgia Walmart Kroger Company Publix Super Markets Kennesaw State University Cobb County Government Lockheed Martin Corp Home Depot Wellstar Health System Cobb County Schools Employer Cobb County Schools Wellstar Health System Home Depot Lockheed Martin Corp Cobb County Government Kennesaw State University Publix Super Markets Kroger Company Walmart Six Flags Over Georgia Worldspan IBM Sprint PCS Total Rank 1 2 3 4 5 6 7 8 9 10 2011 Employees 14,076 12,492 11,784 8,100 4,964 4,758 3,097 2,618 2,338 2,031 - Percentage of Total County Employment 4.16% 3.69% 3.48% 2.39% 1.47% 1.41% 0.92% 0.77% 0.69% 0.60% - Rank 1 2 4 3 5 6 8 7 9 10 2002 Employees 13,798 7,800 4,651 7,000 4,613 3,416 2,600 3,200 2,600 2,296 Percentage of Total County Employment 3.95% 2.23% 1.33% 2.00% 1.32% 0.98% 0.74% 0.92% 0.74% 0.66% 66,258 19.58% 51,974 14.87% (a) Information is available only by calendar year; therefore, data reported is for December 31, 2011 and nine years earlier, December 31, 2002. Source: District Records Office of Economic Development Cobb Chamber of Commerce Georgia Department of Labor 114 COBB COUNTY SCHOOL DISTRICT NUMBER OF PERSONNEL AND RATIO OF PUPILS TO PROFESSIONAL PERSONNEL LAST TEN FISCAL YEARS Ratio of Pupils to Professional Personnel 14.0 13.0 12.0 11.0 10.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Other Professional Operating Service Personnel (a) Personnel (b) Personnel (c) 8,405 8,431 8,024 8,508 9,313 9,101 9,213 9,272 8,378 8,290 2,721 2,711 2,742 2,961 3,138 3,379 3,391 3,046 2,841 2,970 2,684 2,115 2,286 2,335 2,478 2,972 3,049 2,994 2,857 2,847 Total Personnel 13,810 13,257 13,052 13,804 14,929 15,452 15,653 15,312 14,076 14,107 Average Daily Enrollment 97,009 101,584 103,061 104,901 107,082 106,734 106,256 106,835 106,868 106,944 Ratio of Pupils to Professional Personnel 11.5 :1 12.0 12.8 12.3 11.5 11.7 11.5 11.5 12.8 12.9 (a) Professional personnel consists of all certified personnel including teachers, librarians, counselors, supervisors, consultants, coordinators, principals, assistant principals and other leadership personnel. (b) Other operating personnel includes non-certified leadership personnel, classroom aides, secretarial and clerical employees, and other technicians. (c) Service personnel includes food service personnel, custodial employees, bus drivers and maintenance/warehouse employees. Source: District Records 115 COBB COUNTY SCHOOL DISTRICT OPERATING STATISTICS LAST TEN FISCAL YEARS Cost Per Pupil Enrolled $10,500 $10,000 $9,500 $9,000 $8,500 $8,000 $7,500 $7,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average Cost Percentage Fiscal Daily Per Pupil of Professional Year Expenses Enrollment Enrolled Change Personnel 2003 $ 882,817,000 97,009 $ 9,100 N/A 8,405 2004 $ 882,460,000 101,584 $ 8,687 -4.54% 8,431 2005 $ 902,803,000 103,061 $ 8,760 0.84% 8,024 2006 $ 971,091,000 104,901 $ 9,257 5.68% 8,508 2007 $ 1,032,486,000 107,082 $ 9,642 4.16% 9,313 2008 $ 1,102,462,000 106,734 $ 10,329 7.13% 9,101 2009 $ 1,107,315,000 106,256 $ 10,421 0.89% 9,213 2010 $ 1,088,975,000 106,835 $ 10,193 -2.19% 9,272 2011 $ 1,050,373,000 106,868 $ 9,829 -3.57% 8,378 2012 $ 1,074,140,000 106,944 $ 10,044 2.19% 8,290 Ratio of Pupils to Professional Personnel 11.5 to 1 12.0 12.8 12.3 11.5 11.7 11.5 11.5 12.8 12.9 Note: Professional personnel consists of all certified personnel including teachers, librarians, counselors, supervisors, consultants, coordinators, principals, assistant principals and other leadership personnel. Source: District Records 116 COBB COUNTY SCHOOL DISTRICT GENERAL FUND EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS amounts in thousands $950,000 $900,000 $850,000 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Other Capital Outlay Business Serv. School & Admin. Pupil Services Instruction 2012 (amounts expressed in thousands) School & Fiscal Pupil Admin. Year Instruction Services Services Business Services Capital Outlay Other Total 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ 528,643 537,955 538,858 568,611 650,506 711,160 703,297 671,102 635,497 641,662 $ 12,246 12,975 12,698 15,414 16,894 18,716 19,566 18,513 16,755 17,330 $ 60,008 69,132 70,601 74,866 80,690 83,620 85,445 74,888 72,761 78,172 $ 74,825 74,891 78,343 86,146 92,320 100,139 101,253 97,049 93,103 93,237 $ 13,859 20,860 5,217 5,581 9,232 15,970 14,977 1,484 3,522 9,214 $ 4,271 4,039 4,340 4,063 5,536 2,085 7,676 - $ 693,852 719,852 710,057 754,681 855,178 931,690 932,214 863,036 821,638 839,615 Instruction includes expenditures for Instruction and Instructional Services. Business Services includes expenditures for Student Transportation and Maintenance & Operations. Other includes expenditures for Debt Service and Other Expenditures. Source: District Records 117 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name Acworth Intermediate (2001) Square Feet Capacity Enrollment Addison (1989) Square Feet Capacity Enrollment Argyle (1961) Square Feet Capacity Enrollment Austell Primary (2005) Square Feet Capacity Enrollment Austell Intermediate (2001) Square Feet Capacity Enrollment Baker (1988) Square Feet Capacity Enrollment Bells Ferry (1963) Square Feet Capacity Enrollment Belmont Hills (1952) Square Feet Capacity Enrollment Big Shanty (1968) Square Feet Capacity Enrollment Birney (1973) Square Feet Capacity Enrollment Blackwell (1998) Square Feet Capacity Enrollment Brown (1955) Square Feet Capacity Enrollment Brumby (1966) Square Feet Capacity Enrollment Bryant (1991) Square Feet Capacity Enrollment Bullard (2003) Square Feet Capacity Enrollment Chalker (1997) Square Feet Capacity Enrollment 2003 131,924 962 1,016 72,192 637 577 61,503 562 589 - 123,000 962 778 106,668 962 1,111 54,862 462 432 67,106 562 399 83,417 837 806 106,180 912 770 111,299 837 777 49,045 412 283 99,181 912 892 114,090 962 1,002 - 124,148 962 1,133 2004 131,924 962 1,065 72,192 637 572 61,503 562 625 - 123,000 962 841 106,668 962 769 54,862 462 471 67,106 562 396 83,417 837 784 106,180 912 805 111,299 837 753 49,045 412 256 99,181 912 825 114,090 962 1,126 136,261 962 1,013 124,148 962 889 2005 131,924 962 1,139 72,192 637 564 61,503 562 738 - 123,000 962 847 106,668 962 768 54,862 462 520 67,106 562 371 83,417 837 740 106,180 912 864 111,299 837 727 49,045 412 256 99,181 912 850 114,090 962 1,197 136,261 962 1,129 124,148 962 931 2006 131,924 962 746 81,334 637 559 61,503 562 757 85,236 512 332 123,000 962 599 106,668 962 738 54,862 462 599 67,106 562 581 83,417 837 742 106,180 912 876 111,299 837 736 49,045 412 257 99,181 912 914 114,090 962 952 136,261 962 1,197 124,148 962 975 2007 131,924 962 757 81,334 637 563 61,503 562 763 85,236 512 350 123,000 962 633 106,668 962 811 54,862 462 618 67,106 562 663 83,417 837 783 106,180 912 923 111,299 837 766 49,045 412 256 99,181 912 865 114,090 962 912 136,261 962 1,188 124,148 962 956 2008 131,924 962 808 81,334 637 591 61,503 562 666 85,236 512 324 123,000 962 618 106,668 962 772 54,862 462 621 67,106 562 656 83,417 837 785 106,180 912 863 111,299 837 723 49,045 412 246 99,181 912 802 114,090 962 818 136,261 962 1,234 124,148 962 885 2009 131,924 962 870 81,334 637 583 61,503 562 654 85,236 512 326 123,000 962 598 106,668 962 806 54,862 462 580 67,106 562 612 83,417 837 851 106,180 912 751 111,299 837 710 49,045 412 264 99,181 912 860 114,090 962 797 136,261 962 1,109 124,148 962 838 2010 131,924 962 853 81,334 637 557 61,503 562 662 85,236 512 309 123,000 962 576 106,668 962 819 54,862 462 586 67,106 562 619 83,417 837 859 106,180 912 710 111,299 837 722 49,045 412 292 99,181 912 954 114,090 962 802 136,261 962 1,046 124,148 962 849 2011 131,924 962 830 81,334 637 587 61,503 562 652 85,236 512 320 123,000 962 565 106,668 962 809 54,862 462 604 67,106 562 534 83,417 837 825 106,180 912 750 111,299 837 735 49,045 412 297 99,181 912 963 114,090 962 771 136,261 962 997 124,148 962 816 2012* 131,924 913 821 81,334 662 594 56,238 537 647 85,236 562 314 123,025 962 603 106,694 987 789 83,098 712 590 68,409 562 496 84,461 837 789 105,886 912 755 111,299 837 703 49,045 412 302 99,181 912 952 116,071 962 825 136,261 987 971 124,148 963 743 118 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name Cheatham Hill (1997) Square Feet Capacity Enrollment Clarkdale (1963) Square Feet (a) Capacity (a) Enrollment Clay (1961) Square Feet Capacity Enrollment Compton (1969) Square Feet Capacity Enrollment Davis (1987) Square Feet Capacity Enrollment Dowell (1989) Square Feet Capacity Enrollment Due West (1957) Square Feet Capacity Enrollment East Side (1952) Square Feet Capacity Enrollment East Side Replace (2011) Square Feet Capacity Enrollment Eastvalley (1960) Square Feet Capacity Enrollment Fair Oaks (1957) Square Feet Capacity Enrollment Ford (1991) Square Feet Capacity Enrollment Frey (1996) Square Feet Capacity Enrollment Garrison Mill (1984) Square Feet Capacity Enrollment Green Acres (1996) Square Feet Capacity Enrollment Harmony Leland (1951) Square Feet Capacity Enrollment 2003 122,260 937 1,038 44,412 362 435 51,930 437 444 100,586 912 734 87,763 787 627 106,003 962 827 47,350 437 582 77,918 787 824 - 58,150 562 490 60,283 718 606 91,129 837 802 124,148 962 1,499 85,775 687 590 90,915 687 781 68,564 357 520 2004 122,260 937 1,035 44,412 362 446 51,930 437 480 100,586 912 720 87,763 787 634 106,003 962 897 47,350 437 500 77,918 787 830 - 58,150 562 548 60,283 718 692 91,129 837 951 124,148 962 918 85,775 687 617 90,915 687 874 68,564 357 554 2005 122,260 937 1,013 44,412 362 459 51,930 437 475 100,586 912 692 87,763 787 619 106,003 962 988 47,350 437 461 77,918 787 831 - 58,150 562 565 84,153 812 707 91,129 837 979 124,148 962 921 85,775 687 613 90,915 687 833 68,564 357 568 2006 122,260 937 1,060 44,412 362 480 51,930 437 515 100,586 912 690 87,763 787 608 106,003 962 1,003 47,350 437 478 77,918 787 870 - 58,150 562 614 84,153 812 747 91,129 837 1,021 124,148 962 938 85,775 687 618 90,915 687 695 85,764 512 583 2007 122,260 937 1,112 44,412 362 455 51,930 437 491 100,586 912 698 87,763 787 632 106,003 962 1,054 47,350 437 435 77,918 787 982 - 58,150 562 569 98,789 862 894 91,129 837 1,061 124,148 962 897 85,775 687 645 90,915 687 673 85,764 512 558 2008 122,260 937 1,105 44,412 362 464 51,930 437 528 100,586 912 541 87,763 787 581 106,003 962 1,087 71,112 612 459 77,918 787 961 - 58,150 562 550 98,789 862 825 91,129 837 1,027 124,148 962 830 85,775 687 705 90,915 687 653 85,764 512 475 2009 122,260 937 1,090 44,412 362 440 51,930 437 536 100,586 912 516 87,763 787 558 106,003 962 1,061 71,112 612 497 77,918 787 990 - 58,150 562 556 98,789 862 806 91,129 837 884 124,148 962 621 85,775 687 699 90,915 687 658 85,764 512 517 2010 122,260 937 1,084 407 51,930 437 535 100,586 912 485 87,763 787 557 106,003 962 996 71,112 612 538 77,918 787 1,031 - 58,150 562 619 98,789 862 839 91,129 837 863 124,148 962 670 85,775 687 724 90,915 687 712 85,764 512 544 2011 2012* 122,260 937 1,115 137,108 1,063 1,123 - - - - 394 391 51,930 437 543 55,412 437 510 100,586 912 485 99,427 937 453 87,763 787 540 86,131 788 543 106,003 962 1,019 106,003 963 980 71,112 612 536 70,367 587 553 77,918 - 787 - 1,059 - - 149,764 - 1,087 - 1,119 58,150 562 622 60,029 562 638 98,789 862 824 97,993 863 837 91,129 837 831 91,129 862 753 124,148 962 677 125,717 963 693 85,775 687 706 85,775 688 723 90,915 687 738 90,915 688 785 85,764 512 582 65,127 512 591 Continued--- 119 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name Hayes (1993) Square Feet Capacity Enrollment Hollydale (1968) Square Feet Capacity Enrollment Keheley (1986) Square Feet Capacity Enrollment Kemp (2002) Square Feet Capacity Enrollment Kennesaw (1991) Square Feet Capacity Enrollment Kincaid (1972) Square Feet Capacity Enrollment King Springs (1956) Square Feet Capacity Enrollment Labelle (1955) Square Feet Capacity Enrollment Lewis (1986) Square Feet Capacity Enrollment Mableton (1950) Square Feet Capacity Enrollment McCall Primary (2005) Square Feet Capacity Enrollment Milford (1954) Square Feet Capacity Enrollment Mount Bethel (1978) Square Feet Capacity Enrollment Mountain View (1986) Square Feet Capacity Enrollment Murdock (1975) Square Feet Capacity Enrollment Nicholson (1990) Square Feet Capacity Enrollment 2003 117,579 962 1,192 89,995 812 835 68,030 587 562 123,000 962 833 113,828 962 1,262 81,752 762 586 58,785 562 610 58,505 537 464 106,218 946 1,010 47,426 412 481 - 64,168 612 578 105,016 912 986 102,725 862 768 85,542 687 805 75,800 637 618 2004 117,579 962 952 89,995 812 847 68,030 587 559 123,000 962 891 113,828 962 773 81,752 762 603 58,785 562 594 58,505 537 504 106,218 946 1,006 47,426 412 466 - 64,168 612 578 105,016 912 983 102,725 862 793 85,542 687 812 75,800 637 580 2005 117,579 962 995 89,995 812 854 68,030 587 547 123,000 962 868 113,828 962 868 81,752 762 606 58,785 562 589 58,505 537 497 106,218 946 1,074 47,426 412 483 - 64,168 612 601 105,016 912 946 102,725 862 785 85,542 687 816 75,800 637 573 2006 117,579 962 1,139 89,995 812 875 68,030 587 542 123,000 962 904 113,828 962 960 81,752 762 615 58,785 562 606 58,505 537 481 115,363 962 1,101 47,426 412 461 88,217 512 409 64,168 612 576 105,016 912 933 102,725 862 770 85,442 687 845 75,800 637 563 2007 117,579 962 1,091 89,995 812 859 68,030 587 516 123,000 962 896 113,828 962 893 81,752 762 605 58,785 562 622 80,655 687 475 115,363 962 1,153 47,426 412 429 88,217 512 486 69,776 612 647 105,016 912 962 102,725 862 794 123,233 962 836 75,800 637 541 2008 117,579 962 1,080 89,995 812 841 68,030 587 513 123,000 962 913 113,828 962 952 81,752 762 614 58,785 562 583 80,655 687 475 115,363 962 1,124 47,426 412 407 88,217 512 469 69,776 612 653 105,016 912 960 102,725 862 819 123,233 962 846 75,800 637 511 2009 117,579 962 1,061 89,995 812 781 68,030 587 488 123,000 962 902 113,828 962 906 81,752 762 660 58,785 562 587 80,655 687 484 115,363 962 910 47,426 412 417 88,217 512 451 69,776 612 624 105,016 912 1,002 102,725 862 829 123,233 962 875 75,800 637 521 2010 117,579 962 1,116 89,995 812 764 68,030 587 465 123,000 962 926 113,828 962 915 81,752 762 675 58,785 562 617 80,655 687 486 115,363 962 885 47,426 412 399 88,217 512 459 69,776 612 650 105,016 912 1,029 102,725 862 833 123,233 962 861 75,800 637 527 2011 117,579 962 1,078 89,995 812 727 68,030 587 468 123,000 962 931 113,828 962 848 81,752 762 687 58,785 562 676 80,655 687 449 115,363 962 885 47,426 412 437 88,217 512 506 69,776 612 635 105,016 912 996 102,725 862 848 123,233 962 823 75,800 637 497 2012* 119,189 962 1,020 89,012 862 735 70,537 588 470 123,000 962 929 116,400 962 824 83,969 762 670 59,658 587 692 82,912 688 456 115,363 962 800 47,426 412 457 88,158 562 451 73,352 612 658 110,096 937 1,006 102,725 887 853 123,233 962 825 75,800 637 513 120 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name 2003 Nickajack (1998) Square Feet 114,350 Capacity 837 Enrollment 668 Norton Park (1961) Square Feet 66,603 Capacity 612 Enrollment 688 Pickett's Mill (2008) Square Feet - Capacity - Enrollment - Pitner (2003) Square Feet - Capacity - Enrollment - Powder Springs (1988) Square Feet 101,870 Capacity 887 Enrollment 947 Powers Ferry (1951) Square Feet 56,104 Capacity 462 Enrollment 470 Riverside Primary (2005) Square Feet - Capacity - Enrollment - Riverside Intermediate (2001) Square Feet 123,000 Capacity 962 Enrollment 874 Rocky Mount (1977) Square Feet 78,720 Capacity 587 Enrollment 604 Russell (1961) Square Feet 63,212 Capacity 612 Enrollment 647 Sanders (1997) Square Feet 116,302 Capacity 862 Enrollment 881 Sedalia Park (1956) Square Feet 84,051 Capacity 787 Enrollment 738 Shallowford Falls (1990) Square Feet 73,600 Capacity 612 Enrollment 704 Sky View (1957) Square Feet 50,270 Capacity 462 Enrollment 411 Sope Creek (1978) Square Feet 106,348 Capacity 962 Enrollment 1,152 Still (1978) Square Feet 82,687 Capacity 612 Enrollment 602 2004 114,350 837 779 66,603 612 795 - 135,800 962 960 101,870 887 998 56,104 462 490 - 123,000 962 889 78,720 587 600 63,212 612 653 116,302 862 926 84,051 787 756 73,600 612 676 50,270 462 414 106,348 962 1,135 82,687 612 594 2005 114,350 837 810 66,603 612 763 - 135,800 962 1,038 101,870 887 972 56,104 462 456 - 123,000 962 791 78,720 587 593 63,212 612 662 116,302 862 941 84,051 787 771 73,600 612 656 50,270 462 430 106,348 962 1,104 82,687 612 579 2006 114,350 837 828 66,603 612 806 - 135,800 962 1,083 101,870 887 922 56,104 462 452 85,236 512 434 123,000 962 791 78,720 587 608 63,212 612 674 116,302 862 867 84,051 787 791 73,600 612 641 50,270 462 468 106,348 962 1,070 82,687 612 625 2007 114,350 837 785 87,301 787 750 - 135,800 962 1,049 101,870 887 936 56,104 462 470 85,236 512 545 123,000 962 838 78,720 587 597 101,862 962 651 116,302 862 889 101,125 887 752 112,947 962 654 50,270 462 448 106,348 962 1,093 121,289 962 670 2008 114,350 837 670 87,301 787 678 - 135,800 962 1,054 101,870 887 891 56,104 462 472 85,236 512 516 123,000 962 819 78,720 587 591 101,862 962 655 116,302 862 894 101,125 887 746 112,947 962 663 50,270 462 387 106,348 962 1,078 121,289 962 687 2009 114,350 837 725 87,301 787 764 136,261 962 724 135,800 962 971 101,870 887 892 56,104 462 477 85,236 512 440 123,000 962 777 78,720 587 606 101,862 962 687 116,302 862 936 101,125 887 799 112,947 962 695 50,270 462 409 106,348 962 1,064 121,289 962 750 2010 114,350 837 815 87,301 787 674 136,261 962 742 135,800 962 977 101,870 887 866 56,104 462 483 85,236 512 465 123,000 962 841 78,720 587 592 101,862 962 725 116,302 862 926 101,125 887 782 112,947 962 710 50,270 462 399 106,348 962 1,142 121,289 962 775 2011 2012* 114,350 837 904 122,342 937 960 87,301 787 730 87,935 837 708 136,261 962 717 139,090 963 707 135,800 962 945 136,261 962 942 101,870 887 811 101,870 888 802 56,104 462 490 59,190 462 468 85,236 512 491 85,236 562 561 123,000 962 871 123,000 962 925 78,720 587 629 71,408 612 613 101,862 962 703 103,369 962 693 116,302 862 872 116,302 862 903 101,125 887 804 99,735 888 816 112,947 962 690 112,620 962 674 50,270 462 373 50,270 462 400 106,348 962 1,159 133,344 1,162 1,142 121,289 962 776 116,074 963 764 Continued--- 121 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name Teasley (1961) Square Feet Capacity Enrollment Timber Ridge (1990) Square Feet Capacity Enrollment Tritt (1979) Square Feet Capacity Enrollment Varner (1990) Square Feet Capacity Enrollment Vaughan (1996) Square Feet Capacity Enrollment Awtrey (1965) Square Feet Capacity Enrollment Barber (2005) Square Feet Capacity Enrollment Campbell (1951) Square Feet Capacity Enrollment Cooper (2001) Square Feet Capacity Enrollment Daniell (1966) Square Feet Capacity Enrollment Dickerson (1981) Square Feet Capacity Enrollment Dodgen (1975) Square Feet Capacity Enrollment Durham (1998) Square Feet Capacity Enrollment East Cobb (1963) Square Feet Capacity Enrollment Floyd (1964) Square Feet Capacity Enrollment Garrett (1972) Square Feet Capacity Enrollment 2003 56,810 462 488 73,450 587 563 109,912 937 864 109,827 962 746 122,260 937 1,068 143,704 1,012 1,339 - 176,241 1,337 1,105 175,345 1,162 962 141,419 1,087 935 157,333 1,097 1,504 111,484 741 798 173,487 1,162 1,542 165,237 1,162 1,196 120,788 812 920 122,329 812 810 2004 56,810 462 560 73,450 587 519 109,912 937 853 109,827 962 793 122,260 937 1,092 143,704 1,012 1,473 - 176,241 1,337 1,185 175,345 1,162 1,034 141,419 1,087 923 157,333 1,097 1,483 111,484 741 843 173,487 1,162 1,662 165,237 1,162 1,273 120,788 812 957 122,329 812 882 2005 56,810 462 585 73,450 587 513 109,912 937 849 109,827 962 834 122,260 937 1,095 143,704 1,012 1,594 - 176,241 1,337 1,251 175,345 1,162 1,069 141,419 1,087 954 157,333 1,097 1,409 111,484 741 841 173,487 1,162 1,676 165,237 1,162 1,289 120,560 812 929 122,329 812 847 2006 56,810 462 561 73,450 587 507 109,912 937 863 109,827 962 845 122,260 937 1,138 143,704 1,012 843 175,345 1,162 866 176,241 1,137 1,187 175,345 1,162 1,034 141,419 1,087 930 165,953 1,157 1,397 182,985 1,162 861 173,487 1,162 1,708 165,237 1,162 1,257 166,551 1,162 998 122,329 812 923 2007 56,810 462 538 73,450 587 526 109,912 937 892 109,827 962 790 122,260 937 1,128 143,704 1,012 776 175,345 1,162 922 205,911 1,337 1,017 175,345 1,162 956 165,011 1,162 949 165,953 1,187 1,265 182,985 1,162 1,083 173,487 1,162 1,141 181,573 1,212 1,148 166,551 1,162 894 122,329 812 894 2008 56,810 462 487 73,450 587 510 109,912 937 892 109,827 962 824 122,260 937 1,076 143,704 1,012 839 175,345 1,162 942 205,911 1,337 961 175,345 1,162 926 165,011 1,162 931 165,953 1,187 1,195 182,985 1,162 1,151 173,487 1,162 1,116 181,573 1,212 1,130 166,551 1,162 882 122,329 812 909 2009 56,810 462 513 73,450 587 539 109,912 937 899 109,827 962 829 122,260 937 859 143,704 1,012 862 175,345 1,162 927 205,911 1,337 1,024 175,345 1,162 872 165,011 1,162 943 165,953 1,187 1,122 182,985 1,162 1,122 173,487 1,162 1,129 181,573 1,212 1,183 166,551 1,162 812 122,329 812 898 2010 56,810 462 578 73,450 587 590 109,912 937 936 109,827 962 833 122,260 937 817 143,704 1,012 920 175,345 1,162 914 205,911 1,337 1,106 175,345 1,162 827 165,011 1,162 981 165,953 1,187 1,119 182,985 1,162 1,104 173,487 1,162 1,111 181,573 1,212 1,241 166,551 1,162 819 122,329 812 862 2011 56,810 462 670 73,450 587 589 109,912 937 909 109,827 962 791 122,260 937 742 143,704 1,012 863 175,345 1,162 954 205,911 1,337 1,146 175,345 1,162 832 165,011 1,162 1,017 165,953 1,187 1,142 182,985 1,162 1,132 173,487 1,162 1,103 181,573 1,212 1,294 166,551 1,162 821 122,329 812 901 2012* 55,944 487 689 73,450 612 650 109,769 937 908 109,827 962 774 122,260 937 721 149,860 1,037 881 178,465 1,162 967 207,172 1,338 1,201 170,905 1,162 851 163,526 1,163 972 166,048 1,187 1,212 183,798 1,212 1,190 173,487 1,162 1,101 186,961 1,362 1,281 166,551 1,112 870 122,329 812 853 122 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name 2003 Griffin (1972) Square Feet 122,698 Capacity 747 Enrollment 895 Hightower Trail (1993) Square Feet 141,264 Capacity 987 Enrollment 979 Lindley 6th Grade Academy (1962) Square Feet - Capacity - Enrollment - Lindley (2001) Square Feet 179,170 Capacity 1,162 Enrollment 1,328 Lost Mountain (1992) Square Feet 137,027 Capacity 987 Enrollment 1,400 Lovinggood (2006) Square Feet - Capacity - Enrollment - Mabry (1978) Square Feet 113,212 Capacity 868 Enrollment 791 McCleskey (1983) Square Feet 113,525 Capacity 837 Enrollment 909 McClure (2006) Square Feet - Capacity - Enrollment - Palmer (2001) Square Feet 175,345 Capacity 1,162 Enrollment 1,191 Pine Mountain (1979) Square Feet 119,076 Capacity 792 Enrollment 1,145 Simpson (1988) Square Feet 110,000 Capacity 837 Enrollment 844 Smitha (1993) Square Feet 141,596 Capacity 987 Enrollment 1,213 Tapp (1975) Square Feet 157,435 Capacity 1,137 Enrollment 995 Allatoona (2008) Square Feet - Capacity - Enrollment - Campbell (1963) Square Feet 317,515 Capacity 2,262 Enrollment 1,888 2004 122,698 747 1,009 141,264 987 1,000 - 179,170 1,162 1,358 137,027 987 1,498 - 113,212 868 893 113,525 837 826 - 175,345 1,162 1,285 119,076 792 1,213 110,000 837 917 141,596 987 1,285 157,435 1,137 1,086 - 317,515 2,262 1,976 2005 122,698 747 993 141,264 987 946 - 179,170 1,162 1,407 137,027 987 1,513 - 113,212 868 882 113,525 837 858 - 175,345 1,162 1,264 119,076 792 1,212 110,000 837 885 141,596 987 1,292 157,435 1,137 1,067 - 317,515 2,262 2,093 2006 186,947 1,162 1,095 141,264 987 966 - 179,170 1,162 1,354 137,027 987 1,576 - 158,434 1,137 848 113,525 837 822 - 175,345 1,162 1,173 119,076 792 1,261 110,000 837 844 141,596 987 1,306 157,435 1,137 1,074 - 317,515 2,262 2,128 2007 186,947 1,162 1,064 149,038 1,012 1,020 - 179,170 1,162 1,381 164,107 1,162 1,167 178,465 1,162 1,262 158,434 1,137 849 113,525 837 815 191,209 1,162 1,029 175,345 1,162 1,134 131,459 887 752 110,000 837 813 167,815 1,137 1,013 157,435 1,137 897 - 317,515 2,262 2,145 2008 186,947 1,162 993 149,038 1,012 986 - 179,170 1,162 1,252 164,107 1,162 1,107 178,465 1,162 1,238 158,434 1,137 941 113,525 837 752 191,209 1,162 1,155 175,345 1,162 1,101 131,459 887 743 110,000 837 871 167,815 1,137 965 157,435 1,137 891 - 370,042 2,637 2,087 2009 186,947 1,162 922 149,038 1,012 975 114,635 787 440 179,170 1,162 827 164,107 1,162 1,074 178,465 1,162 1,269 158,434 1,137 959 113,525 837 769 191,209 1,162 1,157 175,345 1,162 1,083 131,459 887 728 110,000 837 892 167,815 1,137 862 157,435 1,137 819 328,370 1,912 845 370,042 2,637 2,093 2010 186,947 1,162 916 149,038 1,012 964 114,635 787 470 179,170 1,162 832 164,107 1,162 1,131 178,465 1,162 1,185 158,434 1,137 892 113,525 837 765 191,209 1,162 1,165 175,345 1,162 1,069 131,459 887 772 110,000 837 889 167,815 1,137 817 157,435 1,137 737 328,370 1,912 1,341 370,042 2,637 2,144 2011 2012* 186,947 1,162 959 186,947 1,162 1,064 149,038 1,012 963 149,038 1,012 956 114,635 787 493 111,260 788 523 179,170 1,162 916 179,170 1,162 1,041 164,107 1,162 1,105 165,107 1,137 1,016 178,465 1,162 1,182 175,345 1,162 1,214 158,434 1,137 864 160,581 1,162 849 113,525 837 692 113,525 937 668 191,209 1,162 1,167 191,209 1,163 1,138 175,345 1,162 1,042 175,974 1,162 999 131,459 887 738 131,399 887 725 110,000 837 843 110,000 837 862 167,815 1,137 907 169,345 1,137 968 157,435 1,137 661 157,435 1,137 724 328,370 1,912 1,554 325,200 1,912 1,762 370,042 2,637 2,224 367,080 2,637 2,105 Continued--- 123 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name 2003 2004 2005 Harrison (1991) Square Feet 235,445 235,445 235,445 Capacity 1,837 1,837 1,837 Enrollment 2,029 2,119 2,285 Hillgrove (2006) Square Feet - - - Capacity - - - Enrollment - - - Kell (2002) Square Feet 323,000 323,000 323,000 Capacity 1,912 1,912 1,912 Enrollment 1,035 1,526 1,809 Kennesaw Mountain (2000) Square Feet 319,000 319,000 319,000 Capacity 1,987 1,987 1,987 Enrollment 2,352 2,671 2,858 Lassiter (1981) Square Feet 274,704 274,704 274,704 Capacity 2,137 2,137 2,137 Enrollment 2,405 2,221 2,105 McEachern (1930) Square Feet 416,201 416,201 416,201 Capacity 2,362 2,362 2,362 Enrollment 3,020 3,085 3,304 North Cobb (1957) Square Feet 252,105 252,105 252,105 Capacity 2,087 2,087 2,087 Enrollment 2,146 2,123 2,164 Oakwood (1944) Square Feet 93,612 93,612 93,612 Capacity 462 462 462 Enrollment 298 271 235 Osborne (1961) Square Feet 248,979 248,979 289,269 Capacity 1,494 1,494 1,688 Enrollment 1,636 1,579 1,560 Pebblebrook (1963) Square Feet 225,782 225,782 266,330 Capacity 1,307 1,307 1,483 Enrollment 1,452 1,532 1,566 Performance Learning Center (Housed at Oakwood) Enrollment - - - Pope (1987) Square Feet 246,405 246,405 246,405 Capacity 1,862 1,862 1,862 Enrollment 1,942 1,907 1,961 South Cobb (1951) Square Feet 271,378 271,378 271,378 Capacity 1,662 1,662 1,662 Enrollment 1,877 1,944 2,005 Sprayberry (1973) Square Feet 281,542 281,542 281,542 Capacity 2,112 2,112 2,112 Enrollment 1,866 1,769 1,766 Walton (1975) Square Feet 276,781 276,781 276,781 Capacity 1,950 1,950 1,950 Enrollment 2,454 2,440 2,533 Wheeler (1964) Square Feet 270,744 270,744 270,744 Capacity 1,762 1,762 1,762 Enrollment 1,739 1,771 1,807 Barnes Center (1962) (b) (TLC, Central Alternative and Intensive English Program) Square Feet 114,635 114,635 114,635 Capacity 787 787 787 Enrollment 135 241 455 2006 235,445 1,837 2,542 - 323,000 1,912 1,883 319,000 1,987 3,032 274,704 2,137 2,096 416,201 2,362 3,384 252,105 2,087 2,336 93,612 462 219 337,114 2,062 1,580 318,655 1,862 1,701 - 246,405 1,862 1,963 271,378 1,662 2,100 281,542 2,112 1,758 276,781 1,950 2,549 270,744 1,762 1,806 114,635 787 230 2007 235,445 1,837 2,601 321,543 1,912 1,142 323,000 1,912 1,882 319,000 1,987 2,938 274,704 2,137 2,026 416,201 2,362 2,652 320,736 2,087 2,531 93,612 462 288 337,114 2,062 1,483 318,655 1,862 1,780 - 246,405 1,862 1,879 271,378 1,662 2,036 281,542 2,112 1,705 308,814 2,362 2,559 318,504 1,837 1,813 2008 235,445 1,837 2,590 321,543 1,912 1,669 323,000 1,912 1,835 319,000 1,987 2,842 274,704 2,137 1,934 414,457 2,362 2,316 320,736 2,087 2,577 93,612 462 286 332,614 2,062 1,589 318,655 1,862 1,864 - 246,365 1,862 1,878 271,378 1,662 2,069 281,542 2,112 1,670 308,814 2,362 2,583 318,504 1,837 1,797 2009 235,445 1,837 2,347 321,543 1,912 1,833 323,000 1,912 1,805 319,000 1,987 2,357 274,704 2,137 1,973 436,728 2,362 2,210 320,736 2,087 2,501 93,612 520 192 332,614 2,062 1,643 318,655 1,862 1,993 58 246,365 1,862 1,806 271,378 1,662 2,009 281,542 2,112 1,655 308,814 2,362 2,574 318,504 1,837 1,877 2010 235,445 1,837 2,169 323,023 1,912 2,011 323,000 1,912 1,753 319,000 1,987 2,147 274,704 2,137 1,932 436,728 2,362 2,166 287,276 1,933 2,460 93,612 462 156 332,614 2,062 1,722 318,655 1,862 1,988 47 246,365 1,862 1,792 271,378 1,718 1,969 281,542 2,153 1,693 308,814 2,362 2,561 318,504 1,837 1,981 114,635 114,635 - - 787 787 - - 260 198 - - 2011 235,445 1,837 2,094 323,023 1,912 2,003 323,000 1,912 1,688 319,000 1,987 1,955 274,704 2,137 1,990 436,728 2,362 2,127 287,276 1,933 2,524 93,612 462 175 332,614 2,062 1,671 318,655 1,862 1,957 76 246,365 1,862 1,773 271,378 1,718 1,957 281,542 2,153 1,754 308,814 2,362 2,649 318,504 1,837 2,020 - 2012* 243,215 1,837 1,973 319,000 1,987 2,020 321,068 1,987 1,606 319,000 1,987 2,034 278,986 2,112 1,971 504,107 2,362 2,098 406,817 2,787 2,566 93,858 462 79 328,000 2,062 1,558 319,768 1,788 1,824 57 260,606 1,912 1,718 395,332 2,612 1,863 297,400 2,062 1,727 307,655 2,312 2,569 318,504 1,837 1,955 - 124 COBB COUNTY SCHOOL DISTRICT SCHOOL BUILDINGS LAST TEN FISCAL YEARS School Name 2003 Hawthorne (1958) (c) Square Feet 32,500 Capacity 312 Enrollment 150 HAVEN @ Fitzhugh Lee (1935) (c) Square Feet 35,684 Capacity 312 Enrollment - Kennesaw Charter (d) Enrollment - Mableton Charter (d) Enrollment - Smyrna Charter (d) Enrollment - Devereux Georgia (d) Enrollment - 2004 32,500 312 187 35,684 312 - 385 - - - 2005 32,500 312 165 35,684 312 - 435 - - - 2006 32,500 312 182 35,684 312 - 436 - - - 2007 32,500 312 170 35,684 312 - 540 - - 132 2008 32,500 312 156 35,684 312 - 495 569 414 108 2009 32,500 312 158 35,684 312 - 504 595 438 115 2010 32,500 312 160 35,684 312 - 437 472 580 105 2011 2012* 32,500 312 - 32,500 312 - 35,684 312 141 35,684 312 131 515 614 529 526 744 793 96 62 Concluded. Note: Year represents the year during which the school was initially opened and utilized for instructional purposes but does not reflect the most recent year of subsequent additions, improvements or renovations, if any, to the facility. (a) Clarkdale destroyed by flood fall 2009. Students housed at other schools; enrollment recorded as Clarkdale. (b) Barnes Center students reported in their home school. Facility is now Lindley 6th Grade Academy. (c) Hawthorne enrollment is included with HAVEN @ Fitzhugh Lee after 2010. (d) Operated by a non profit, enrollment reported by CCSD; buildings do not belong to CCSD. * 2012 data reflects the new Five-Year Local Facilities Plan approved by the Board on May 17, 2012. The 2012 - 2016 Local Facilities Plan has been approved by the Georgia Department of Education and validated by a Facilities Survey Team as required by State BOE rules. Source: District Records 125 COBB COUNTY SCHOOL DISTRICT SCHOOL LUNCH AND BREAKFAST PROGRAM LAST TEN FISCAL YEARS amounts in thousands 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2003 2004 2005 Meals Served 2006 2007 2008 2009 Lunch Breakfast 2010 2011 2012 (amounts expressed in thousands) Lunch Meals Served: Free Reduced Paid Total Daily Average Student Price 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,743 858 5,916 9,517 53 $1.50-$1.75 3,367 827 5,943 10,137 56 $1.60-$1.85 3,951 845 5,973 10,769 60 $1.60-$1.85 4,432 852 6,208 11,492 64 $1.60-$1.85 4,654 950 6,380 11,984 67 $1.60-$1.85 4,794 931 6,285 12,010 67 $1.60-$1.85 5,072 967 6,068 12,107 67 $1.60-$1.85 5,431 954 5,761 12,146 69 $1.60-$1.85 5,683 783 5,400 11,866 69 $1.60-$1.85 6,109 857 5,431 12,397 70 $1.65-$1.90 Breakfast Meals Served: Free 1,010 Reduced 198 Paid 314 Total 1,522 Daily Average 8 Student Price $1.00 - $1.15 1,193 170 317 1,680 10 $1.00 1,482 180 342 2,004 11 $1.00 1,700 194 432 2,326 13 $1.00 1,964 258 536 2,758 15 $1.00 2,118 264 557 2,939 16 $1.00 2,254 261 534 3,049 17 $1.00 2,342 260 486 3,088 17 $1.00 2,455 208 466 3,129 19 $1.00 2,732 237 489 3,458 19 $1.00 Total Meals Served: Free Reduced Paid Total Daily Average Source: District Records 3,753 1,056 6,230 11,039 61 4,560 997 6,260 11,817 66 5,433 1,025 6,315 12,773 71 6,132 1,046 6,640 13,818 77 6,618 1,208 6,916 14,742 82 6,912 1,195 6,842 14,949 83 7,326 1,228 6,602 15,156 84 7,773 1,214 6,247 15,234 86 8,138 991 5,866 14,995 88 8,841 1,094 5,920 15,855 89 126 COBB COUNTY SCHOOL DISTRICT TEACHERS' SALARY SCHEDULE LAST TWENTY FISCAL YEARS $90,000 Teachers' Salary Range $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Minimum Maximum Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Minimum $ 23,461 $ 23,922 $ 25,118 $ 25,921 $ 27,621 $ 28,973 $ 30,406 $ 31,440 $ 32,230 $ 33,455 $ 34,542 $ 34,542 $ 35,233 $ 35,938 $ 37,160 $ 39,140 $ 39,962 $ 38,958 $ 38,958 $ 38,958 Maximum $ 48,348 $ 49,297 $ 52,992 $ 54,687 $ 58,273 $ 61,121 $ 64,140 $ 66,321 $ 67,985 $ 70,568 $ 72,861 $ 72,861 $ 76,206 $ 77,730 $ 80,374 $ 82,435 $ 84,204 $ 82,088 $ 82,088 $ 82,088 Cobb Average (a) State-wide Average (a) $ 46,775 $ 45,848 $ 47,191 $ 46,437 $ 49,854 $ 48,247 $ 51,239 $ 49,836 $ 52,977 $ 51,466 $ 54,286 $ 52,823 $ 53,320 $ 53,155 $ 54,168 $ 52,830 $ 53,770 $ 53,002 *Minimum - T-4 Certification, Maximum - Doctorate (a) Cobb and State-wide averages unavailable prior to 2004 Source: CCSD Salary Schedule for Minimum and Maximum Governor's Office of Achievement 127 COBB COUNTY SCHOOL DISTRICT GENERAL FUND REVENUES BY SOURCE LAST TEN FISCAL YEARS amounts in thousands $975,000 $900,000 $825,000 $750,000 $675,000 $600,000 $525,000 $450,000 $375,000 Other $300,000 Interest $225,000 $150,000 $75,000 Intergovernmental Local Taxes $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (amounts expressed in thousands) Fiscal Local Inter- Year Taxes governmental 2003 $ 349,861 $ 352,964 2004 364,523 349,528 2005 377,772 340,185 2006 408,599 381,436 2007 441,716 422,286 2008 460,537 449,098 2009 475,294 404,313 2010 462,518 404,856 2011 427,174 431,352 2012 408,123 391,997 Interest Income $ 3,057 2,659 5,193 9,714 12,150 9,843 4,497 2,475 2,410 1,981 Other $ 957 1,485 770 900 799 1,082 2,276 1,830 1,091 1,092 Total $ 706,839 718,195 723,920 800,649 876,951 920,560 886,380 871,679 862,027 803,193 Other includes Tuition & Fees, Insurance & Damage Recoveries, Rentals and Other Revenues. Source: District Records 128 COBB COUNTY SCHOOL DISTRICT PROPERTY DIGEST REDUCTIONS DUE TO EXEMPTIONS LAST TEN FISCAL YEARS Digest Reductions Compared to Gross Property Digest amounts in thousands $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Gross Property Digest Personal Property Exemption Elderly Exemption Homestead Exemption (amounts expressed in thousands) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Homestead Exemption $ 1,145,638 1,161,646 1,171,954 1,176,070 1,170,390 1,166,776 1,165,038 1,160,256 1,133,942 1,086,141 Elderly Exemption $ 1,697,873 1,844,603 2,044,811 2,355,408 2,612,133 2,921,905 3,115,732 3,374,955 3,308,523 3,305,864 Disabled Residents Exemption $ 16,176 15,650 15,894 15,610 14,708 14,666 15,099 15,389 15,208 14,608 Personal Property Exemption $ 656,714 734,092 973,480 1,078,322 1,182,458 1,264,100 1,086,274 1,159,876 1,501,213 1,274,139 Conservation Exemption $ 49,851 67,233 68,447 83,016 85,575 83,478 80,282 82,041 66,204 53,464 Total Digest Reductions $ 3,566,252 3,823,224 4,274,586 4,708,426 5,065,264 5,450,925 5,462,425 5,792,517 6,025,090 5,734,216 Gross Property Digest $ 19,081,061 19,679,361 20,609,863 22,095,208 23,932,775 24,185,375 25,287,425 24,774,275 22,649,587 21,363,851 Reductions as Percent of Gross Digest 18.69% 19.43% 20.74% 21.31% 21.16% 22.54% 21.60% 23.38% 26.60% 26.84% Source: Cobb County Government 129 COBB COUNTY SCHOOL DISTRICT COMPARISON OF METROPOLITAN ATLANTA SCHOOL DISTRICT PROPERTY TAX RATES JUNE 30, 2012 Metro Atlanta School District Tax Rates Tax Rate 25.000 20.000 15.000 10.000 5.000 0.000 Atlanta City Clayton County Cobb County Dekalb County Douglas County Fulton Gwinnett Marietta Rockdale County County City County Debt Service M & O (all tax rates are per $1000 assessed valuation) Total School District Rate Atlanta City 21.694 Clayton County 20.000 Cobb County 18.900 Dekalb County 22.980 Douglas County 22.950 Fulton County 18.502 Gwinnett County 20.550 Marietta City 19.157 Rockdale County 24.500 Source: Georgia Department of Revenue Maintenance & Operations 21.640 20.000 18.900 22.980 19.850 18.502 19.250 17.970 24.500 Debt Service 0.054 0.000 0.000 0.000 3.100 0.000 1.300 1.187 0.000 130 COBB COUNTY SCHOOL DISTRICT RESULTS OF ALL BOND AND SALES TAX REFERENDUMS 1950 TO PRESENT Percentage of Voters Approving Referendums 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1950 1961 1964 1973 1979 1985 1989 1995 1998* 2008* Referendums: Year 1950 $ 1957 1961 1962 1964 1969 1973 1977 1979 1981 1985 1987 1989 1991 1995 1997* 1998* 2003* 2008* Amount 1,500,000 1,750,000 2,500,000 3,000,000 4,000,000 15,000,000 16,500,000 22,000,000 20,000,000 8,000,000 27,000,000 58,500,000 59,500,000 39,600,000 220,865,000 609,200,000 626,773,000 636,504,000 797,657,000 Maturity 1970 1977 1980 1983 1994 1990 1994 1996 1997 1997 1997 2001 2002 2004 2007 2002 2003 2008 2013 Action Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Passed Failed Passed Passed Passed Pro 2,907 2,023 3,187 2,816 2,942 7,769 7,405 10,694 9,725 9,858 24,476 10,716 15,510 20,197 18,140 14,204 36,433 36,078 21,873 Con 841 562 868 986 1,629 2,922 5,165 4,241 7,611 7,511 11,481 2,573 2,311 6,409 13,124 18,820 26,403 10,262 14,137 Void 17 31 38 36 63 5 10 22 219 103 65 126 268 142 177 545 - Total Votes 3,765 2,616 4,093 3,838 4,634 10,696 12,580 14,957 17,555 17,472 35,957 13,354 17,947 26,874 31,406 33,201 63,381 46,340 36,010 Approval Percentage 77.56% 78.26% 78.59% 74.07% 64.36% 72.67% 58.91% 71.60% 56.10% 56.76% 68.07% 80.64% 87.03% 75.91% 58.02% 43.01% 57.98% 77.85% 60.74% * 1997, 1998, 2003 and 2008 referendums were for a 1% local option sales tax with the amounts shown representing an estimate of collections for the full five year life of the tax. All other referendums were for bond issues. Source: Cobb County Board of Elections. 131 COBB COUNTY SCHOOL DISTRICT RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 7% 6% 5% 4% 3% 2% 1% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Debt Service Fund Expenditures $ 45,596,000 45,835,000 45,197,000 46,158,000 46,571,000 - General Fund Expenditures $ 693,852,000 719,852,000 710,057,000 754,681,000 855,178,000 931,690,000 932,214,000 863,036,000 821,638,000 839,615,000 Ratio of Net Debt Service to General Expenditures 6.57% 6.37% 6.37% 6.12% 5.45% - Note: Debt Service was fully paid by the end of fiscal year 2007. Source: District Records 132 COBB COUNTY SCHOOL DISTRICT COBB COUNTY BANK DEPOSITS, CONSTRUCTION AND TAXABLE PROPERTY VALUES LAST TEN FISCAL YEARS dollars in millions Cobb County New Construction $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (dollars expressed in millions) Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Bank Deposits (a) $ 6,528 $ 6,760 $ 7,425 $ 8,478 $ 9,369 $ 10,026 $ 10,739 $ 10,542 $ 9,468 $ 9,490 Single-Family Residences (b) # $ of Units Value 2,370 $ 378 2,520 $ 443 2,737 $ 617 2,655 $ 636 2,082 $ 521 1,276 $ 332 510 $ 118 434 $ 99 491 $ 114 597 $ 161 Total New Construction (b) # $ of Permits Value 8,160 $ 760 8,790 $ 859 9,727 $ 1,175 10,286 $ 1,262 10,232 $ 1,029 9,687 $ 838 7,019 $ 572 5,102 $ 349 5,594 $ 410 5,587 $ 656 Estimated Actual Value of Taxable Property (c) $ 41,285 $ 47,703 $ 49,198 $ 51,525 $ 55,238 $ 59,832 $ 60,463 $ 63,219 $ 56,624 $ 53,410 (a) Bank deposits as of June 30, 2002 through 2008, supplied by the Georgia Department of Banking and Finance. Bank deposits June 30, 2009 and after, are supplied by the Federal Deposit Insurance Corporation (FDIC). (b) New residence and construction data for the 12-month period ended December 31 is supplied by the Cobb County Community Development Agency and is on a calendar-year basis. (c) Source is Cobb County Government and is for the fiscal year ended September 30. 133 COBB COUNTY SCHOOL DISTRICT ADMINISTRATIVE SALARY SCHEDULE JUNE 30, 2012 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 Administrative Salary Range Minimum Maximum Position Title Superintendent Chief Officers/Asst Superintendents Executive Directors Instructional Directors Classified Directors High School Principals Middle School Principals Elementary School Principals Source: District Records Minimum $ 237,000 108,748 81,796 85,234 74,752 90,574 82,565 77,933 Maximum $ 237,000 135,000 101,928 115,512 104,856 113,947 110,578 108,823 134 COBB COUNTY SCHOOL DISTRICT SCHEDULE OF INSURANCE IN FORCE JUNE 30, 2012 Type of Coverage Name of Company and Policy Number Policy Period From To Liability Limits Annual Premium Bus, Truck, Motor Vehicles Liability Property Theft Employee's Blanket Bond General Liability Property Boiler (Includes Insurance) Student Athletic Superintendent's Bond Principal's Bond Worker's Compensation Disability, Long-Term Disability, Short-Term Option 1 Option 2 Option 3 Option 4 Option 5 Life Insurance and AD&D Self Insured Self Insured Travelers #103317698 Self Insured Travelers KTJ-CMB-1849M21-A-10 Sentry Life Ins/The Young Old Republic Surety Co. APO1178250 Old Republic Surety Co. APS1177822 Self Insured The Hartford Policy #402273 The Hartford Policy #402273 The Hartford Policy #402273 The Hartford Policy #402273 The Hartford Policy #402273 The Hartford Policy #402273 The Hartford #402273 6/1/1994 Ongoing $300,000 6/1/1994 Ongoing N/A 7/1/2011 6/30/2012 $7,500,000 6/1/1994 Ongoing $500,000 7/1/2011 6/30/2012 $500,000,000 8/1/201 5/24/2012 Varies 7/1/2011 7/1/2012 $100,000 8/1/2011 8/1/2012 $10,000 N/A 1/1/12 N/A Statutory 12/31/12 Benefit Schedule per salary 1/1/12 1/1/12 1/1/12 1/1/12 1/1/12 1/1/12 12/31/12 Benefit Schedule per salary 12/31/12 Benefit Schedule per salary 12/31/12 Benefit Schedule per salary 12/31/12 Benefit Schedule per salary 12/31/12 Benefit Schedule per salary 12/31/12 Benefit Schedule per salary N/A N/A $17,676 N/A $385,062 Student/Parent Funded $350 $3,990 N/A $1,348,407 Employee pays $9.94 per month. Employee pays $15.33 per month. Employee pays $20.11 per month. Employee pays $24.00 per month. Employee pays $27.37 per month. Monthly - employee pays $0.123 per $1,000 for Life and AD&D insurance. The first $10,000 of coverage for smokers or first $13,000 for nonsmokers is paid by CCSD. Dependent Life Insurance The Hartford Policy #402273 Optional Life and AD&D The Hartford #402273 Dental Insurance Option: High Plan Delta Dental Policy 11-1554000000 1/1/12 12/31/12 Benefit Schedule per salary 1/1/12 12/31/12 Benefit Schedule per salary Monthly - employee pays $1 for $10,000 of coverage of child(ren) or $2.50 for $25,000 of coverage; employee pays $2.05 for $10,000 of coverage of spouse or $5.13 for $25,000. Monthly - employee pays $0.165 per $1,000 for Supplemental Life and AD&D up to a maximum of 5 times his/her annual salary for smokers or 6 times for non-smokers. 1/1/12 12/31/12 Plus Plan provides preferred rates with a maximum coverage of $1,000 per participant per calendar year. Monthly - employee pays $30.09 for single coverage or $82.78 for family coverage. Continued --- 135 COBB COUNTY SCHOOL DISTRICT SCHEDULE OF INSURANCE IN FORCE JUNE 30, 2012 Type of Coverage Dental Insurance Option: Low Plan Name of Company and Policy Number Delta Dental Policy 11-1554000000 Cancer Insurance Economy Plan Standard Plan Deluxe Plan Vision Insurance Option I Option II Option III Legal Insurance Allstate Insurance Policy #V1935 Policy #V1935 Policy #V1935 Comp Benefits/Humana Policy #VS6725 Policy #VS6726 Policy #VS6727 ARAG Group Policy #17840-001 Policy Period From To Liability Limits Annual Premium 1/1/12 12/31/12 Base Plan has co-pays Monthly - employee pays $10.53 for single for Preventative and coverage or $28.84 for family coverage. Diagnostic services with a maximum of $750 coverage per participant per calendar year. 1/1/12 12/31/12 Based on Benefit Schedule 1/1/12 12/31/12 Based on Benefit Schedule 1/1/12 12/31/12 Based on Benefit Schedule Monthly - employee pays rates Single coverage is $7.06; family coverage is $11.66. Single coverage is $8.60; family coverage is $14.22. Single coverage is $14.48; family coverage is $24.84. Monthly - employee pays rates: Single coverage is $1.24; family coverage is $2.98. Single coverage is $4.32; family coverage is $10.46. Single coverage is $4.84; family coverage is $11.74. Monthly - employee pays $12.27 for single coverage or $15.23 for family Coverage. Concluded. Source: District Records 136 COBB COUNTY SCHOOL DISTRICT NUMBER OF SCHOOLS LAST TWENTY FISCAL YEARS Number of Schools 120 110 100 90 80 70 60 50 High 40 Middle 30 20 Elementary 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Elementary 55 56 56 56 59 62 62 62 62 62 63 65 65 68 68 68 68 68 68 68 Source: District Records Middle 16 18 18 18 18 18 19 19 19 21 21 21 21 22 24 24 25 25 25 25 137 High 14 14 14 14 14 14 14 14 15 15 16 16 16 16 17 17 17 17 16 16 Total 85 88 88 88 91 94 95 95 96 98 100 102 102 106 109 109 110 110 109 109 COBB COUNTY SCHOOL DISTRICT NUMBER OF HIGH SCHOOL GRADUATES AND AVERAGE DAILY ENROLLMENT AND ATTENDANCE LAST TWENTY FISCAL YEARS 110,000 105,000 100,000 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 Cobb County School District Average Daily Enrollment Fiscal Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Average Average Daily Daily Enrollment* Attendance 74,339 69,855 77,045 72,899 79,759 75,388 82,291 77,387 84,803 80,165 87,366 82,662 90,290 85,219 92,607 87,594 95,116 89,913 97,066 92,090 97,009 93,725 101,584 96,795 103,061 98,567 104,901 100,432 107,082 102,648 106,734 102,497 106,256 102,144 106,835 102,444 106,868 102,732 106,944 103,008 Attendance Percentage 93.97% 94.62% 94.52% 94.04% 94.53% 94.62% 94.38% 94.59% 94.53% 94.87% 96.61% 95.29% 95.64% 95.74% 95.86% 96.03% 96.13% 95.89% 96.13% 96.32% Number of Graduates 4,291 4,049 4,381 4,511 4,740 4,801 5,022 5,323 5,541 5,756 6,015 5,928 6,267 6,413 6,522 6,765 7,126 7,177 7,350 7,192 Graduate Percentage** N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 95.77% 94.06% 94.41% 92.91% 91.85% 98.36% 97.61% 93.91% 99.41% (*) 2004 data collection procedures changed to include Special Education students in respective grade level (**) Number of Graduates divided by Grade 12 Active Enrollment from page 139 which includes Special Ed students. Source: District Records 138 COBB COUNTY SCHOOL DISTRICT ACTIVE ENROLLMENT BY GRADE LEVEL LAST TEN FISCAL YEARS 120,000 Active Enrollment By Grade Level 100,000 80,000 60,000 40,000 20,000 0 2003 2004* 2005 2006 2007 2008 2009 2010 2011 2012 Special Ed Grade 12 Grade 11 Grade 10 Grade 9 Grade 8 Grade 7 Grade 6 Grade 5 Grade 4 Grade 3 Grade 2 Grade 1 Grade K Fiscal Year 2003 2004* 2005 2006 2007 2008 2009 2010 2011 2012 Pre-K and K 8,026 9,077 9,255 9,611 9,604 9,065 8,874 9,262 9,253 9,159 Grade Grade Grade Grade Grade Grade Grade Grade Grade Grade Grade Grade Special 1 2 3 4 5 6 7 8 9 10 11 12 Ed. Total 6,997 7,325 7,291 7,481 7,524 7,426 7,436 7,234 7,773 7,148 6,316 6,032 3,000 97,009 7,576 7,522 7,823 7,767 8,021 7,902 8,206 8,286 8,555 7,512 6,912 6,190 101,349 7,750 7,764 7,766 7,972 7,977 8,130 8,071 8,287 9,114 7,610 6,926 6,663 103,285 7,993 8,012 8,013 7,964 8,141 8,031 8,264 8,201 9,141 8,101 7,217 6,793 105,482 8,246 8,061 8,303 7,921 8,229 8,069 8,132 8,280 8,950 8,171 7,586 7,020 106,572 8,260 8,262 8,233 8,052 8,037 8,035 8,143 8,187 8,928 8,083 7,406 7,365 106,056 8,142 8,176 8,298 8,147 8,189 7,812 7,973 8,254 8,810 8,331 7,491 7,245 105,742 8,029 8,286 8,285 8,291 8,230 8,131 7,822 8,007 9,850 7,391 7,551 7,353 106,488 8,292 8,001 8,369 8,166 8,344 8,077 8,165 7,868 9,804 8,121 6,549 7,827 106,836 8,189 8,303 8,184 8,330 8,284 8,155 8,186 8,154 9,437 8,021 6,865 7,235 106,502 *2004 data collection procedures changed to include Special Education students in respective grade level Source: District Records 139 COBB COUNTY SCHOOL DISTRICT CLASSROOM BUILDINGS, GRADE LEVELS AND ACREAGE JUNE 30, 2012 School Name Acworth Intermediate Addison Argyle Austell Primary Austell Intermediate Baker Bells Ferry Belmont Hills Big Shanty Birney Blackwell Brown Brumby Bryant Bullard Chalker Cheatham Hill Clarkdale (b) Clay Compton Davis Dowell Due West East Side Eastvalley Fair Oaks Ford Frey Garrison Mill Green Acres Harmony Leland Hayes Hollydale Keheley Kemp Kennesaw Kincaid King Springs Labelle Lewis Mableton McCall Primary Milford Mount Bethel Mountain View Murdock Nicholson Nickajack Norton Park Pickett's Mill Pitner Powder Springs Powers Ferry Riverside Primary Riverside Intermediate Rocky Mount Russell Sanders Sedalia Park Shallowford Falls Sky View Sope Creek Grades 2-5 K-5 K-5 K-1 2-5 K-5 K-5 K-5 3-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-2 K-5 K-5 K-5 K-5 K-5 K-1 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 K-1 2-5 K-5 K-5 K-5 K-5 K-5 K-5 K-5 Active Enrollment 821 594 647 314 603 789 590 496 789 755 703 302 952 825 971 743 1,123 391 510 453 543 980 553 1,119 638 837 753 693 723 785 591 1,020 735 470 929 824 670 692 456 800 457 451 658 1,006 853 825 513 960 708 707 942 802 468 561 925 613 693 903 816 674 400 1,142 Size of Occupied Site (acres) Year (a) 15.0 2001 12.5 1989 8.8 1961 12.4 2005 23.0 2001 15.0 1988 10.0 1963 10.2 1952 22.3 1968 26.8 1973 16.0 1998 6.2 1955 9.5 1966 20.9 1991 20.0 2003 25.5 1997 19.2 1997 - - 8.0 1961 28.3 1969 13.0 1987 28.9 1989 10.2 1957 10.0 2011 7.8 1960 10.3 1957 39.0 1991 26.2 1996 14.1 1984 10.1 1996 8.4 1951 24.2 1993 15.0 1968 20.7 1986 26.2 2002 20.7 1991 24.0 1972 9.9 1956 10.2 1955 10.9 1986 5.7 1950 6.0 2005 8.7 1954 25.0 1978 13.0 1986 15.3 1975 23.1 1990 16.8 1998 9.2 1961 40.9 2008 22.2 2003 15.9 1988 10.0 1951 9.0 2005 18.4 2001 21.8 1977 14.1 1961 21.1 1997 10.2 1956 15.3 1990 10.1 1957 16.0 1978 Number of Classrooms 59 42 36 36 61 63 45 36 52 59 52 24 58 61 63 62 68 29 60 50 62 39 69 36 54 53 61 44 44 33 61 53 38 61 61 48 37 44 61 25 36 39 60 55 61 40 60 52 62 61 57 30 36 61 39 61 53 57 61 30 73 Portable Classrooms 15 1 9 3 10 7 3 2 3 4 3 5 6 6 1 9 1 8 12 Square Footage 131,924 81,334 56,238 85,236 123,025 106,694 83,098 68,409 84,461 105,886 111,299 49,045 99,181 116,071 136,261 124,148 137,108 55,412 99,427 86,131 106,003 70,367 149,764 60,029 97,993 91,129 125,717 85,775 90,915 65,127 119,189 89,012 70,537 123,000 116,400 83,969 59,658 82,912 115,363 47,426 88,158 73,352 110,096 102,725 123,233 75,800 122,342 87,935 139,090 136,261 101,870 59,190 85,236 123,000 71,408 103,369 116,302 99,735 112,620 50,270 133,344 Capacity 913 662 537 562 962 987 712 562 837 912 837 412 912 962 987 963 1,063 - 437 937 788 963 587 1,087 562 863 862 963 688 688 512 962 862 588 962 962 762 587 688 962 412 562 612 937 887 962 637 937 837 963 962 888 462 562 962 612 962 862 888 962 462 1,162 140 COBB COUNTY SCHOOL DISTRICT CLASSROOM BUILDINGS, GRADE LEVELS AND ACREAGE JUNE 30, 2012 School Name Still Teasley Timber Ridge Tritt Varner Vaughan Awtrey Barber Campbell Cooper Daniell Dickerson Dodgen Durham East Cobb Floyd Garrett Griffin Hightower Trail Lindley 6th Gr. Acad. Lindley Lost Mountain Lovinggood Mabry McCleskey McClure Palmer Pine Mountain Simpson Smitha Tapp Allatoona Campbell Harrison Hillgrove Kell Kennesaw Mountain Lassiter McEachern North Cobb Oakwood Osborne Pebblebrook Perform. Learning Ctr (c) Pope South Cobb Sprayberry Walton Wheeler Hawthorne Center (d) HAVEN @ Fitzhugh Lee (d) Kennesaw Charter (e) Mableton Charter (e) Smyrna Charter (e) Devereux Georgia (e) TOTALS Active Grades Enrollment K-5 764 K-5 689 K-5 650 K-5 908 K-5 774 K-5 721 6-8 881 6-8 967 6-8 1,201 6-8 851 6-8 972 6-8 1,212 6-8 1,190 6-8 1,101 6-8 1,281 6-8 870 6-8 853 6-8 1,064 6-8 956 6 523 7-8 1,041 6-8 1,016 6-8 1,214 6-8 849 6-8 668 6-8 1,138 6-8 999 6-8 725 6-8 862 6-8 968 6-8 724 9-12 1,762 9-12 2,105 9-12 1,973 9-12 2,020 9-12 1,606 9-12 2,034 9-12 1,971 9-12 2,098 9-12 2,566 9-12 79 9-12 1,558 9-12 1,824 9-12 57 9-12 1,718 9-12 1,863 9-12 1,727 9-12 2,569 9-12 1,955 Altrntv - Altrntv 131 K-6 614 K-8 526 K-8 793 1-12 62 106,502 Size of Occupied Site (acres) Year (a) 10.9 1978 13.2 1961 11.5 1990 23.7 1979 20.0 1990 28.0 1996 26.2 1965 25.8 2005 33.2 1951 75.1 2001 20.0 1966 21.9 1981 20.6 1975 43.0 1998 20.0 1963 20.0 1964 36.6 1972 24.4 1972 26.4 1993 28.7 1962 33.3 2001 83.8 1992 29.4 2006 22.0 1978 34.8 1983 38.0 2006 43.1 2001 39.7 1979 16.5 1988 21.8 1993 16.9 1975 114.7 2008 47.9 1963 73.0 1991 95.0 2006 63.1 2002 75.0 2000 49.3 1981 74.9 1930 46.8 1957 10.0 1944 50.7 1961 52.5 1963 Number of Classrooms 62 32 39 60 61 60 64 71 84 71 71 73 74 71 83 68 51 71 62 45 71 70 71 71 46 72 71 50 47 70 70 99 135 94 102 102 102 108 127 143 43 106 93 47.0 1987 98 54.4 1951 134 41.3 1973 106 43.3 1975 119 48.8 1964 95 6.2 1958 18 7.0 1935 17 2,906.6 6,907 Portable Classrooms 5 4 2 11 3 3 2 - 5 36 2 2 183 Square Footage 116,074 55,944 73,450 109,769 109,827 122,260 149,860 178,465 207,172 170,905 163,526 166,048 183,798 173,487 186,961 166,551 122,329 186,947 149,038 111,260 179,170 165,107 175,345 160,581 113,525 191,209 175,974 131,399 110,000 169,345 157,435 325,200 367,080 243,215 319,000 321,068 319,000 278,986 504,107 406,817 93,858 328,000 319,768 260,606 395,332 297,400 307,655 318,504 32,500 35,684 16,012,550 (a) Occupied year represents the year during which the school was initially opened and utilized for instructional purposes but does not reflect the most recent year of subsequent additions, improvements or renovations, if any, to the facility. (b) Clarkdale destroyed by flood fall 2009. Students housed at other schools; enrollment recorded as Clarkdale. (c) Performance Learning Center is housed at Oakwood. (d) Hawthorne Center enrollment is included with HAVEN Academy @ Fitzhugh Lee. (e) Operated by a non-profit. Enrollment reported by CCSD; buildings do not belong to CCSD. Source: District Records 141 Capacity 963 487 612 937 962 937 1,037 1,162 1,338 1,162 1,163 1,187 1,212 1,162 1,362 1,112 812 1,162 1,012 788 1,162 1,137 1,162 1,162 937 1,163 1,162 887 837 1,137 1,137 1,912 2,637 1,837 1,987 1,987 1,987 2,112 2,362 2,787 462 2,062 1,788 1,912 2,612 2,062 2,312 1,837 312 312 116,277 (This page was left blank intentionally) COBB COUNTY BOARD OF EDUCATION REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS IN ACCORDANCE WITH THE SINGLE AUDIT ACT AND GOVERNMENT AUDITING STANDARDS FOR THE YEAR ENDED JUNE 30, 2012 COBB COUNTY BOARD OF EDUCATION FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SCHEDULE OF PRIOR AUDIT FINDINGS Page 1 and 2 3-5 6 and 7 8 9-12 13 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Superintendent and Members of the Cobb County Board of Education Marietta, Georgia We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Cobb County Board of Education (the "Board"), as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements, and have issued our report thereon dated December 6, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the Board is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Board's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Board's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined previously. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Board's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the Board in a separate letter dated December 6, 2012. This report is intended solely for the information and use of management, the members of the Board, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Atlanta, Georgia December 6, 2012 2 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Superintendent and Members of the Cobb County Board of Education Marietta, Georgia Compliance We have audited the Cobb County Board of Education's compliance, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. The Cobb County Board of Education's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Cobb County Board of Education's management. Our responsibility is to express an opinion on the Cobb County Board of Education's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Cobb County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Cobb County Board of Education's compliance with those requirements. As described in item 2012-1 in the accompanying schedule of findings and questioned costs, the Cobb County Board of Education did not comply with requirements regarding matching that are applicable to its National Clean Diesel Grant. Compliance with such requirements is necessary, in our opinion, for Cobb County Board of Education to comply with the requirements applicable to that program. In our opinion, except for the noncompliance described in the preceding paragraph, the Cobb County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Internal Control Over Compliance Management of the Cobb County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Cobb County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Cobb County Board of Education's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified a deficiency in internal control over compliance that we consider to be a material weakness. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2012-1 to be a material weakness. 4 Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Cobb County Board of Education as of and for the year ended June 30, 2012, and have issued our report thereon dated December 6, 2012 which contained an unqualified opinion on those financial statements. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise Cobb County Board of Education's financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. The Cobb County Board of Education's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the Cobb County Board of Education's response and, accordingly, we express no opinion on it. This report is intended solely for the information and use of management, the members of the Board, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Atlanta, Georgia December 6, 2012 5 COBB COUNTY SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2012 Funding Agency Program/Grant Agriculture, U.S. Department of, Passed Through Georgia Department of Education Child Nutrition Cluster: National School Breakfast Program National School Lunch Program - Cash National School Lunch Program - Commodities Total U.S. Department of Agriculture Education, U.S. Department of, Direct Programs: Safe and Drug Free Schools and Communities- Reduce Alcohol Abuse Safe and Drud Free Schools and Communities- Title IV - Success for All Students Teaching American History Total Direct Programs Passed Through Georgia Department of Education: Title I, Part A Cluster: Local Education Agencies ARRA - Local Education Agencies Distinguished School Awards School Improvement ARRA - School Improvement Total Title I, Part A Cluster Title I, Part C - Migrant Education Special Education Cluster (IDEA): Title VI-B Flow Through Title VI-B Psycho Ed SED Special Project Preschool Grants Total Special Education Cluster (IDEA) Vocational Education-Basic Grant Title IV, Part A, Safe and Drug-Free Schools Title IV, Part B, 21st Century Community Learning Ctrs Education for Homeless Children and Youth Cluster: Education for Homeless Children ARRA - Education for Homeless Children Total Education for Homeless Children and Youth Cluster Title II, Part A: Improving Teacher Quality Advanced Placement Testing Total Title II, Part A CFDA Number 10.553 10.555 10.555 84.184A 84.184L 84.215X 84.010 84.389A 84.010 84.010 84.389A 84.011 84.027 84.027 84.173 84.048 84.186 84.287 84.196 84.387A 84.367 84.367 Expenditures 5,351,348 20,701,246 3,630,922 29,683,516 229,971 2,193,254 364,667 2,787,892 16,978,281 1,198,478 20,337 158,371 81,811 22,196,891 536,954 465,696 66,197 13,644 2,018,082 9,695 18,437,278 19,220 23,199,541 645,366 68,325 1,484,969 79,841 2,027,777 Continued--- 6 Title II, Part D, Enhancing Education through Technology Title III, Part A: Limited English Proficient Education Jobs Fund Passed Through Georgia State University: Teacher Quality Partnership Grants (I3) Investing in Innovation Fund Passed Through Technical College System of Georgia Adult Education Total U.S. Department of Education Health and Human Services, U.S. Department of, Passed Through Georgia Department of Behavioral Health and Developmental Disabilities: Substance Abuse and Mental Health Services Prevention/Treatment of Substance Abuse Passed Through Georgia Department of Human Services: Temporary Assistance for Needy Families Total U.S. Dept. of Health and Human Services Other Federal Assistance: Corporation for National & Community Services Passed Through University of Alabama Service Learning STEM Environmental Protection Agency National Clean Diesel ARRA National Endowment for the Arts Learning in the Arts for Children and Youth Defense, U.S. Department of R.O.T.C. Program Total Other Federal Assistance TOTAL FEDERAL AWARDS 84.318 84.365 84.410 84.336 84.411A 84.002 93.243 93.959 93.558 94.004 66.039 45.024 12.357 111,554 1,166,745 257,128 87,530 2,623 641,829 51,017,618 38,848 48,805 66,511 154,164 7,995 588,887 24,000 962,439 1,583,321 82,438,619 Concluded. 7 COBB COUNTY BOARD OF EDUCATION NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 31, 2012 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Cobb County Board of Education and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, "Audits of States, Local Governments and Non-Profit Organizations." Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. 8 COBB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 SECTION I SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness(es) identified? yes X no Significant deficiency(ies) identified? Noncompliance material to financial statements noted? yes X none reported yes X no Federal Awards Internal Control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified? X yes no yes X none reported Type of auditor's report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular? Identification of major programs: Qualified for National Clean Diesel Grant; Unqualified for Title I, Part A Cluster and Special Education Cluster (IDEA) X yes no CFDA Number 84.010, 84.389A 84.027, 84.173 66.039 Name of Federal Program or Cluster Title I, Part A Cluster Special Education Cluster (IDEA) National Clean Diesel Grant Dollar threshold used to distinguish between Type A and Type B programs: $2,473,159 Auditee qualified as low-risk auditee? yes X no 9 COBB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 None reported. SECTION II FINANCIAL STATEMENT FINDINGS 10 COBB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS 2012 - 1. Matching of Local Funds Programs: Environmental Protection Agency (CFDA #66.039) CFDA Program Titles: National Clean Diesel Grant - ARRA Pass-through Agency: N/A Criteria: Grant requirements, as provided from the Office of Management and Budget (OMB) under A-102 Common Rule and OMB Circular A-110 provide the following list as the basic criteria for acceptable matching: Are verifiable from the non-federal entity's records. Are not included as contributions for any other federally assisted project or program, unless specifically allowed by Federal program laws and regulations. Are necessary and reasonable for proper and efficient accomplishment of project or program objectives. Are allowed under the applicable cost principles. Are not paid by the Federal Government under another award, except where authorized by Federal statute to be allowable for cost sharing or matching. Are provided for in the approved budget when required by the Federal awarding agency. Conform to other applicable provisions of the A-102 Common Rule and OMB Circular A-110 and the laws, regulations, and provisions of contract or grant agreements applicable to the program. Condition: During our testing of the District's calculation of matching or cost sharing for this program, we identified the District was using a cost savings of product installation as a portion of the match. The District determined the anticipated costs of outsourcing the labor of outside mechanics would have cost approximately $72,000; however, using their own fleet employees, the District was able to install the devices. As such the District recognized a cost savings to the District of approximately $37,000. This cost savings was reported as a portion of the District's required match for the program. Context/Cause: The District was operating under the guidance of the local office of the Environmental Protection Agency (EPA), who provided guidance to the District acknowledging the District would be permitted to include the cost savings as a portion of the grant's required match. Through this guidance from their local office, the District continued to seek reimbursement from the federal program at the original agreed upon federal participation rate of eight-six and forty-eight one-hundredths percent (86.48%). Effects: As the District was not familiar with the general requirements as provided by OMB through Circular A110 and A-102 Common Rule, the District operated under the guidance of the local office of EPA. Through the reporting of the cost savings as a portion of the match or cost sharing, the District overstated their participation in the project. The District's actual cost sharing requirement was thirteen and fifty-two one-hundredths (13.52%) percent. Based on the eligible matching costs, the District contributed $120,419 which should have limited the federal participation in the project to the lesser of the federal contribution rate (86.48%) and the maximum award ($1,240,275). 11 COBB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (CONTINUED) 2012- 1. Matching of Local Funds (Continued) Questioned Costs: Based on the reduced participation of the District, the federal program was charged $37,300 in excess of the grant's participation rate. Recommendation: We recommend the District carefully review and utilize the Grants Management Circulars provided through the Office of Management and Budget, as these requirements provide official guidance in instances where the grant agreement or a local division of the federal government provides conflicting information. Auditee's Response: We disagree with the finding, as it is presented. The District worked directly with the local Region 4 office of the Environmental Protection Agency, and relied on their guidance and direction, as they were a branch of the federal awarding agency. The guidance which the District was provided acknowledged the intended use of cost savings or "leverage" as a portion of the required match, since the District was able to install the parts in-house rather than outsourcing to a local vendor. As such, we complied with the guidance we were provided by our local program coordinator. We will ensure controls are in place to carefully review all grant documents and ensure all compliance requirements are carefully considered upon receipt of all future grant awards. Auditor's Response: While we understand the position and difficult situation the District is now placed as a result of adhering to the guidance which was provided by the local regional programmatic office, the District unfortunately failed to comply with the compliance requirements as issued by the Office of Management and Budget (OMB) Circular A-133. As a means of verifying the required reporting and treatment for this situation, we have contacted the National Single Audit Coordinator for the Office of Inspector General of the U.S. Environmental Protection Agency and have confirmed the required reporting. While the District was working and operating under the guidance of the local programmatic office, they were given guidance which contradicts the requirements of the OMB Circular A-133 and thus fails to comply with the requirements as stated above. 12 COBB COUNTY BOARD OF EDUCATION SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 SECTION IV STATUS OF PRIOR AUDIT FINDINGS 2011-3: Title I, Part A Cluster - CFDA #84.010 and 84.389; Comparability Condition and Context: As noted in our testing of comparability, the full-time equivalent (FTE) count for three of the forty non-Title I elementary schools was not reported correctly on the Title I Comparability Report submitted to the Georgia Department of Education. When the correct counts are used in the calculation, one of the thirty-one Title I elementary schools is not comparable based on the comparability calculation and criteria used. The corrected reports calculate a student-teacher ratio for the elementary schools of 13.1 which would require Title I schools to have a 14.4 ratio or lower. One elementary school only had a student teacher ratio of 14.6, which would put the elementary school in violation of the required comparability ratio for a Title I school. It is important to note that the current reporting process is extremely manual. Internal controls over the review of the Title I Comparability Report were not sufficient to detect and correct the errors. Status: This finding was resolved during the current year. 2011-4: Title I, Part A Cluster - CFDA #84.010 and 84.389; Procurement and Suspension and Debarment Condition and Context: While the District's General Terms & Conditions for vendors contains general language, the vendor is required to specifically confirm their exclusion from the database for contracts funded by the Title I programs or the District may elect to check the Excluded Parties List System (EPLS).The School District did not have adequate controls in place to ensure that the contract was not being awarded to a suspended or debarred party. Status: This finding was resolved during the current year. 13