Atlanta Independent School System, comprehensive annual financial report, fiscal year ended June 30, 2011, June 30, 2011

FY2011
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2011
Atlanta Independent School System Atlanta, Georgia

ATLANTA INDEPENDENT SCHOOL SYSTEM COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2011
Office of the Chief Financial Officer Charles A. Burbridge
130 Trinity Avenue, SW Atlanta, Georgia 30303

ATLANTA INDEPENDENT SCHOOL SYSTEM

Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2011

Page INTRODUCTORY SECTION

Letter of Transmittal

i

GFOA Certificate of Achievement

vi

ASBO International Certificate of Excellence

vii

List of Principal Officials

viii

Appointed Officials

xi

Organization Chart

xii

FINANCIAL SECTION

Report of Independent Certified Public Accountants

1

Management's Discussion and Analysis

3

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Assets

15

Statement of Activities

16

Fund Financial Statements:

Balance Sheet Governmental Funds

17

Reconciliation of Governmental Funds Balance Sheet to the

Government-wide Statement of Net Assets

18

Statement of Revenues, Expenditures and Changes in Fund

Balances Governmental Funds

19

Reconciliation of Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balances to the

Government-wide Statement of Activities

20

Statement of Net Assets Proprietary Fund Food Services

21

ATLANTA INDEPENDENT SCHOOL SYSTEM
Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2011

Statement of Revenues, Expenses and Changes in

Net Assets Proprietary Fund Food Services

22

Statement of Cash Flows Proprietary Fund Food Services

23

Statement of Fiduciary Assets and Liabilities

24

Notes to the Basic Financial Statements

25

Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual General Fund

51

Schedule of Funding Progress

52

OTHER SUPPLEMENTARY INFORMATION

Non-Major Governmental Funds:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet Non-major Governmental Funds

53

Combining Statement of Revenues, Expenditures and

Changes in Fund Balances Non-major Governmental Funds

54

Combining Schedule of Revenues, Expenditures and Changes in

55

Fund Balance Budget and Actual All Special Revenue Funds

Combined

Schedule of Revenues, Expenditures and Changes in

56

Fund Balance Budget and Actual Title I Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in

57

Fund Balance Budget and Actual Title II Fund

ATLANTA INDEPENDENT SCHOOL SYSTEM
Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2011

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual Title IV-B Fund

58

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual Lottery Fund

59

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual Other Federal Programs Fund

60

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual Other Special Projects Fund

61

Schedule of Revenues, Expenditures and Changes in

Fund Balance Budget and Actual Capital Projects Fund

62

Combining Statement of Changes in Assets and Liabilities -

Agency Fund

63

Quality Basic Education Programs - Program Expenditures

64

General Fund Quality Basic Education Programs -

Schedule of Allotments and Expenditures by Program

65

Schedule of Expenditures by Object - Lottery Programs

66

Schedule of Approved Local Option Sales Tax Projects

67

Schedule of State Revenue

68

STATISTICAL SECTION (UNAUDITED)

Net Assets by Component

69

Changes in Net Assets

70

Governmental Fund Balances

72

Changes in Governmental Fund Balances

73

ATLANTA INDEPENDENT SCHOOL SYSTEM
Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2011

General Fund Expenditures by Function

75

General Fund Revenues by Source

76

Assessed and Estimated Actual Value of Taxable Property

77

Property Tax Rates All Overlapping Governments

78

Principal Property Taxpayers

79

Property Tax Levies and Collections

80

Comparison of Property Tax Millage Rates

81

Tax Millage Rates

82

Ratio of Total Debt Outstanding by Type

83

School Buildings, Acreage and Capacity

84

Demographic Statistics

86

Principal Employers

87

General Fund per Pupil Cost

88

School Breakfast Program

89

School Lunch Program

90

Number of Schools

91

Enrollment by Grade Level

92

Employees by Function

93

INTRODUCTORY SECTION

December 15, 2011
Dear Citizens:
We are pleased to present to the community the Comprehensive Annual Financial Report (CAFR) of Atlanta Public Schools (APS) for the fiscal year ended June 30, 2011. APS continues its transition under new leadership after 12 years of continuous improvement on many fronts. Our priority remains to provide quality instruction in a safe and nurturing learning environment that educates today's children for tomorrow's world.
This report was prepared by APS financial management officials and is intended to fulfill the requirement for audit prescribed by Georgia Statutes for local boards of education. The APS management assumes full responsibility for the completeness and reliability of the information contained in this report, based on a comprehensive and reliability of the information contained in this report, based on a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control 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.
Snapshot of Atlanta Public Schools
Like many urban, public K12 school districts, APS faces ongoing challenges. More than threefourths of APS students qualify for the federal free and reduced price meals program, which is based on family incomes at or below the poverty line. Nearly one-third of APS students relocate within and outside of the district during the school year. Recent allegations of cheating on state standardized tests and subsequent investigations have challenged APS to continue its education mission undistracted, even while new leaders take the helm to navigate the district through a perfect storm of events. Despite these issues, APS continues its journey to excellence.
APS is currently composed of 96 schools: 55 elementary schools (grades K-5), 16 middle schools (grades 6-8) and 25 high schools (grades 9-12), for a total enrollment of approximately 49,874.
APS Highlights and Points of Pride
Twenty-one APS students were awarded 2011 Gates Millennium Scholarships this year the second highest number of any school district in the nation. APS students have earned approximately 70 Gates Millennium Scholarships over the past three years, more than any other system in the nation.
i

APS students improved their performance by 4 percentage points and eliminated the achievement gap between the district and students around the state on the new Georgia Grade 8 Writing Assessment in 2011. Eighty-three percent of APS eighth-grade students scored at "meets" or "exceeds" standards levels.
APS students improved their performance on the 2011 Criterion-Referenced Competency Tests, showing gains in 20 of the 30 grade and subject areas tested compared to last year's results. APS students had performance gains exceeding state averages in 15 of the 30 grades and subject areas tested and continued to narrow the achievement gap with state averages.
APS students improved their performance on the 2011 Georgia Grade 5 Writing Assessment, with 77 percent scoring at the "meets" or "exceeds" standards levels. This performance represents a 5 percentage point increase over last year's results.
APS has developed more than 400 partnerships between schools and community/business organizations which provide students with invaluable resources, such as internships, attendance incentives, mentoring and tutoring opportunities.
APS is working with the Georgia Institute of Technology and Ford Motor Company to develop a prototype high-tech, fuel-efficient hydraulic hybrid propulsion system that employs used vegetable and cooking oils as a renewable energy source. APS donated a surplus school bus for the "Green Eco School Bus" project.
Major renovations to existing schools were completed this year, including North Atlanta (08/01/2011) and D.M. Therrell (08/07/2011) high schools and Continental Colony Elementary School (07/01/2011). Construction of the new Mays High School is scheduled for completion by the end of the current calendar year. For more information on school buildings, acreage and capacity please see pages 84-85 in the Statistical section.
Challenges Ahead
The challenges that lie ahead are considerable but manageable, as the District fully transitions into the new decade:
The special state investigation into conduct during the 2009 CRCT exam revealed widespread testing improprieties associated with a relatively small number of APS educators. Individuals named in the state report have been removed from classrooms, pending the outcome of the follow-up investigations and processes being conducted by various organizations.
Ramifications from testing improprieties continue to unfold, as the state recently announced its decision to adjust schools' adequate yearly progress (AYP) ratings for previous years. As a result, the state has determined that 42 schools have not met AYP for at least two consecutive years, which places the schools in needs-improvement status under the federal No Child Left Behind Act.
ii

APS has enacted a number of improvements to tighten the testing environment and reduce the potential for cheating or testing improprieties. These enhancements include locked safe rooms for testing material that are accessible only by principals and test coordinators, sealed envelopes with tamper-proof security strips where testing materials are stored, and implementation of the two-person rule for counting and tracking testing materials.
The District has embarked on a comprehensive culture change that involves mandatory annual ethics training for all employees and revised performance evaluation reviews that emphasize strict adherence to policies and laws.
The main focus is the continued growth of students' academic performance. The District's new leadership is assessing the results of school reform programs implemented over the past decade and determining how to move forward in the ongoing effort to continue the academic progress in a safe, secure and nurturing learning environment.
Local Economy
The nationwide economic downturn continues to negatively impact the District's primary funding sources. The District's main source of funding is property taxes, which continues to show the effects of a flat economy. Actual property tax revenues fell short of the budget projection and are well below actual revenues in previous years. The second major revenue stream for the District is state funding through the Quality Basic Education Act funding. The Governor continues to make major cuts to this revenue stream, exceeding $20 million for FY11.
Based on these factors and others, including increased unfunded mandates and tax revenue challenges, there will be continuing financial challenges in FY12 and beyond.
Long-Term Financial Planning
APS plans capital improvements as future capital needs arise due to student population changes and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with special-purpose, local-option sales tax receipts and anticipated annual receipts of capital outlay funds from the Georgia Department of Education. The District regularly monitors anticipated capital outlay needs.
Strategic Planning
APS leaders are committed to using strategy to drive budgets. Budget recommendations align with the district's strategic objectives. The charge is for every division, department, office and employee to align with the district's goals in support of student achievement. Employees evaluate and execute their work based on its support of schools and students.
Financial Information
The CAFR is prepared pursuant to OCGA 36-81-7. The Georgia Department of Audits and Accounts has issued an unqualified ("clean") opinion on the financial statements for fiscal
iii

year ended June 30, 2011. The independent auditor's report is located at the front of the financial section of this report.
Using the full accrual basis of accounting, APS has total net assets of $1.37 billion, an increase of $68.55 million from fiscal year 2010. Further discussion is included in Management's Discussion and Analysis (MD&A) which immediately follows the independent auditor's report and provides an overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
Fund Accounting: APS reports its financial activities through the use of fund accounting. This is a system wherein transactions are reported in self-balancing sets of accounts to reflect the results of activities. See Note A of the Notes to the Basic Financial Statements for a summary of significant accounting policies and a description of the fund types.
Internal Control Structure: APS financial management officials are responsible for implementing and enforcing a system of internal controls to protect the assets of APS from loss, theft or misuse and to ensure that reliable accounting data are available for the timely preparation of financial statements in accordance with Generally Accepted Accounting Procedures (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits relies upon estimates and judgments by management.
Financial Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to APS for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2010. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
APS received the Association of School Business Officials (ASBO) International's Certificate of Excellence in Financial Reporting for the CAFR for fiscal year 2010. This is the second year the District submitted the CAFR to ASBO. This award certifies that the report substantially conforms to the principles and standards of financial reporting as recommended and adopted by the Association of School Business Officials International.
Valid for a period of one year, the award is granted only after an intensive review of financial reports by an expert panel of certified public accountants and practicing school business officials.
iv

vi

vii

ATLANTA INDEPENDENT SCHOOL SYSTEM
List of Principal Officials June 30, 2011
SCHOOL SYSTEM BOARD MEMBERS
District 1: Brenda J. Muhammad, Chair Brenda Muhammad is the executive director of the Atlanta Victim Assistance, Inc. (AVA), an organization that advocates for the fundamental rights of victims and witnesses of crime with compassion, dignity and respect. AVA provides comprehensive services which remove barriers, strengthen victims and their families and foster a healthy transition from victim to survivor. Passionate about children and their educational needs, particularly those who are underserved, Brenda currently serves as the School Board Representative for District 1. She has also served the Atlanta School Board in times past as president and vice president.
At-Large Seat 8: Reuben R. McDaniel, III, Vice Chair In May 1999, Reuben R. McDaniel, III was named President/CEO of Jackson Securities, LLC an Atlanta based investment banking firm. With over 25 years of investment banking experience in finance management, capital markets and municipal finance, McDaniel relies on his proven financial insights, exceptional talents in building relationships, strong analytical background and consummate corporate management skills. Selected as one of Black Enterprises' "75 Most Powerful Blacks on Wall Street", Mr. McDaniel was responsible for transforming the firm from a regional public finance boutique into a national institutional investment bank. Under his leadership, Jackson Securities has sustained doubledigit revenue growth and diversified revenue streams by establishing a Corporate Finance Group, Wealth Management Group and an Institutional Sales & Trading Group.
District 2: Vacant
viii

District 3: Cecily Harsch-Kinnane
Cecily Harsch-Kinnane has been involved in Atlanta Public Schools for nine years. She and her husband, Paul, have three children in APS and she has served as PTA president at Morningside E.S., on the PTA boards at Inman M.S. and Grady H.S., as co-president of the Council of Intown Neighborhoods and Schools and on the principal selection committee at several schools. She has been involved with Habitat for Humanity, served on the City of Atlanta Elected Officials Compensation Commission and on the board of the Atlanta Youth Soccer Association. Ms.Harsch-Kinnane is a former middle and high school math teacher and has recently been the coordinator of an after school-mentoring program. She is a native of Atlanta and received a BA in Mathematics from Brown University and has done graduate work in Math Education and Educational Psychology at Georgia State University.
District 4: Nancy M. Meister
As a parent and stakeholder, Nancy Meister is passionate about the future of the Atlanta Public Schools and has been personally involved in the district for many years and recognizes the importance of public education. She and her husband have watched their children grow and thrive in the Atlanta Public Schools system. As a residential real estate agent, she understands and appreciates the importance of great neighborhood schools, their impact on attracting new businesses to our city and their contribution to the overall sustainable growth of the metro area.
District 5: LaChandra Butler Burks
Born and raised in Atlanta, Georgia, LaChandra Butler Burks' passion for children and commitment to education has been evident all of her life. As a product of Atlanta Public Schools, she considers it an honor to now serve as a member of the Atlanta Board of Education because it allows her to fight daily to have quality, public education for the children of a city she dearly loves. It is her strong belief that everyone must be involved in making sure that children are whole and well.
On November 8, 2005, the residents of Atlanta elected LaChandra Butler Burks out of six candidates with 58% of the votes as the Atlanta Board of Education District 5 Representative. She is a graduate of L.P. Miles Elementary School and C.L. Harper High School with a Bachelor's Degree from State University of West Georgia, (formerly West Georgia College) and a Masters of Business Administration from Keller Graduate School of Management. LaChandra Butler Burks received most of her political experience from having worked under the leadership of three Atlanta mayors for 13 years.
ix

District 6: Yolanda K. Johnson
Yolanda Johnson is a proud resident of the Adams Park Community of Southwest Atlanta. She is a product of public schools and a practicing attorney who has been actively engaged in the community since she made Atlanta her home more than a decade ago.
She began volunteering with the Atlanta Public Schools (APS) when she agreed to serve on a committee redeveloping the curriculum for the Law and Government Magnet at Therrell High School. This experience gave her unique system insight and firsthand knowledge of how even a small group of dedicated people can make differences in the lives of our children: our future.
At-Large Seat 7: Courtney D. English
Courtney English is a former Atlanta Public Schools middle school teacher and community activist. Born and raised in Atlanta, he is a proud graduate of Morehouse College. English was a founding teacher at the new All-Male BEST Academy at Benjamin Carson where he taught seventh grade Social Studies. Ironically, English's lessons were delivered in the same room where he learned the subject content as a student. English is a member of the 2007 Atlanta Corps of Teach for America and now direct his efforts toward enhancing the quality of education for students.
As a teacher, English designed and implemented a unique curriculum to teach "Applied Social Studies", in which students learn the subject through the lens of all academic disciplines. His talents as an educator have been reinforced by his success rate in the classroom. Eighty percent of his students have met learning objectives with at least 80 percent proficiency for two consecutive years on the Criterion Reference Competency Test (CRCT).
At-Large Seat 9: Emmett D. Johnson
Mr. Johnson has proven that he is a person dedicated to making a positive difference. He is committed to serving the need of our youth. He is knowledgeable about educational issues. As a member of the Atlanta Board of Education, Mr. Johnson:
Received the 2009 Richard A Green Award- The Richard A. Green Award the Nation's highest honor for urban education leadership, at the Council of the Great City Schools 2009 fall conference. The Council represents 66 of the largest urban school districts in the nation, educating 7.1 million students. The Green Award is named in honor of the first African-American chancellor of the New York City school system, who had also headed Minneapolis Public Schools. As the recipient of the Richard Green Award, Johnson received a $10,000 college scholarship to present to a high school senior of his choice in the Atlanta Public Schools or from his high school alma mater.
x

ATLANTA INDEPENDENT SCHOOL SYSTEM APPOINTED OFFICIALS JUNE 30, 2011
SUPERINTENDENT Erroll B. Davis, Jr.
SENIOR CABINET
Charles A. Burbridge...................................................Chief Financial Officer Sharon Pitts, Interim..........................................................General Counsel Karen L. Walden........................................ Deputy Superintendent for Instruction Larry Hoskins.........................................Deputy Superintendent for Operations Alexis Kirijan......................................Chief Strategy and Development Officer David Williamson..................................................Chief Information Officer Steve Smith........................................................................Chief of Staff
xi

Organization Chart

Superintendent Erroll B. Davis, Jr.

Assistant Superintendent of Instructional Operations (Interim)
Dr. Eric Rosser

Deputy Superintendent Instruction
Karen L. Waldon
School Reform Teams (SRTs)

Associate Superintendent for High Schools (Interim)
Abigail Crawford

Deputy Superintendent Operations
Larry L. Hoskins

Deputy Superintendent / Chief of Staff Steve Smith

Charles Burbridge

General Counsel (Interim)
Sharron Pitts

xii

Atlanta Public Schools is educating today's students for tomorrow's world. We are committed to ensuring that all students graduate from our schools ready for success in college and life.

FINANCIAL SECTION

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
February 27, 2012

Honorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Atlanta Independent School System
INDEPENDENT AUDITOR'S REPORT ON BASIC FINANCIAL STATEMENTS
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Atlanta Independent School System (School System), as of and for the year ended June 30, 2011, which collectively comprise the School System's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Atlanta Independent School System'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. 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School System's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, 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, the business-type activities, each major fund, and the aggregate remaining fund information of the Atlanta Independent School System, as of June 30, 2011, and the respective changes in financial position and cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note A, the Atlanta Independent School System implemented Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, effective July 1, 2010.
2011ARL-11X

Management's Discussion and Analysis on pages 3 through 14 and the required supplementary information on pages 51 through 52 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. 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 basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Atlanta Independent School System's financial statements as a whole. The Introductory Section, the Supplementary Information and Statistical Section are presented for purposes of additional analysis and are not a required part of the financial statements. The Supplementary Information on pages 53 through 68 has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. The Introductory Section on pages i through xii and the Statistical Section on pages 69 through 93 have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

RWH:as 2011ARL-11X

Russell W. Hinton, CPA, CGFM State Auditor

MANAGEMENT'S DISCUSSION AND ANALYSIS

ATLANTA INDEPENDENT SCHOOL SYSTEM Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2011
The discussion and analysis of the Atlanta Independent School System's financial performance provides an overview of the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to examine the School System's financial performance as a whole, identify changes in financial position as well as to provide basic financial statements. The basic financial statements and notes to the basic financial statements should be reviewed by the readers to enhance their understanding of the School System's financial performance as a whole or as an entire operating entity. The basic financial statements contain the following components:
1) Government-wide financial statements including the Statement of Net Assets and the Statement of Activities, which provide a broad, long-term overview of the School System's finances.
2) Fund-level financial statements provide a greater level of detail about the School System's major funds and focus on how well the School System has performed in the short-term in the most significant funds.
3) Notes to the Basic Financial Statements.
This report also presents the highlights for the fiscal year ended June 30, 2011 and contains other supplementary information.
FINANCIAL HIGHLIGHTS
Overall, net assets in fiscal year 2011 increased by 5.3% over fiscal year 2010. This is evidence of management's ability to maintain a balanced budget and control expenses, despite austerity reductions due to economic downturns affecting the Districts revenues. The key financial highlights for fiscal year 2011 as represented are:
Government-wide Financial Statements:
Total net assets for the School System increased from approximately $1,298.92 million in fiscal year 2010 to approximately $1,367.47 million in fiscal year 2011, an increase of approximately $68.55 million or 5.3% due to revenues exceeding expenses by approximately $68 million primarily due to budget cuts. Net assets increased by approximately $68.41 million for Governmental Activities and increased by $145,157 for Business-type Activities.
Total revenues decreased from approximately $805.55 million in fiscal year 2010 to approximately $803.28 million in fiscal year 2011, a decrease of approximately $(2.27) million or -0.3%. Revenue for Governmental Activities decreased approximately $(2.92) million while revenue for Business-type activities increased by approximately $0.65 million.
Total expenses decreased approximately $(54.61) million or -6.9% from approximately $789.34 million in fiscal year 2010 to approximately $734.73 million in fiscal year 2011. Expenses decreased in Governmental Activities by approximately $(55.19) million and increased by approximately $0.58 million in Business-type Activities.
3

Fund Financial Statements: The School System has prepared its annual financial reports corresponding to the Governmental Accounting Standards Board No. 34 financial reporting model. The following graphic is provided to give the reader an overview of this reporting model.
OVERVIEW OF FINANCIAL STATEMENTS Government-wide Financial Statements The Governmentwide financial statements are designed to provide the reader with a broad overview of the School System's finances in a manner similar to those used by private-sector businesses. The Statement of Net Assets and the Statement of Activities provide information about the activities of the whole School System, presenting an aggregate and long-term perspective of the finances. These statements include all assets and liabilities using the accrual basis of accounting. This basis of accounting includes all of the current fiscal year's revenues and expenses regardless of when cash is received or paid.
o The Statement of Net Assets presents information on all of the Schools System's assets and liabilities, with the difference between the two reported as net assets. Increases or decreases in
4

net assets may serve as a useful indicator of whether the financial position is improving or deteriorating.
o The Statement of Activities presents information showing how net assets changed during the fiscal year. All changes in the net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in the statement for some items that will result in cash flows in future fiscal periods (for example, uncollected taxes and earned but unused vacation leave).
Included in the Statement of Net Assets and Statement of Activities for the School System are two distinct kinds of activities:
Governmental Activities Most of the School System's programs and services are reported here including instruction, pupil services, improvement of instruction, educational media, general administrative, school administrative, business administration, maintenance and operation of facilities, student transportation and central support.
Business-type Activities This service is provided on a charge for goods or services basis to recover all of the expenses of the goods or services provided. The Food Services proprietary fund is reported as a business-type activity.
Table 1 - Condensed Statement of Net Assets (in millions of dollars)

Governmental Activities

2011

2010

Business-type Activities

2011

2010

Total School System

percentage

2011

2010

change

Current and other assets Net capital assets
Total assets

$

383.91 $ 376.38 $ 3.19 $

1,248.63 1,099.20

0.00

1,632.54 1,475.58

3.19

2.47 $ 387.10 $ 378.85 0.00 1,248.63 1,099.20
2.47 1,635.73 1,478.05

2.2% 13.6%
10.7%

Long-term debt outstanding Other liabilities

158.20

88.82

0.00

109.05

89.88

1.01

0.00

158.20

88.82

78.1%

0.43

110.06

90.31

21.9%

Total liabilities

267.25

178.70

1.01

0.43

268.26

179.13

49.8%

Net assets

Invested in capital assets,

net of related debt

Restricted for debt services

Restricted for capital projects

Restricted for federal programs

Restriced for state and local programs

Unrestricted

Total net assets

$

1,104.60 1,056.75

1.10

1.87

107.59

110.07

0.01

0.00

4.15

0.00

147.84

128.19

1,365.29 $ 1,296.88 $

0.00 0.00 0.00 0.00 0.00 2.18
2.18 $

0.00 1,104.60 1,056.75

0.00

1.10

1.87

0.00

107.59

110.07

0.00

0.01

0.00

0.00

4.15

0.00

2.04

150.02

130.23

2.04 $ 1,367.47 $ 1,298.92

4.5% -41.2% -2.3% 100.0% 100.0% 15.2%
5.3%

Total assets increased by roughly $157.68 million or 10.7%. Current and other assets increased by roughly $8.25 million or 2.2%.
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Capital assets, net of accumulated depreciation for all governmental activities increased by roughly $149.43 million or 13.6%. The increase primarily represents additions to buildings and building improvements.
Long-term debt outstanding increased by roughly $69.38 million or 78.1%. The increase was primarily due to the issuance of Certificates of Participation in the amount of $104.4 million offset by reductions of roughly $34.07 million for contingent liabilities.
Table 2 - Condensed Changes in Net Assets (in millions of dollars)

Revenues Program revenues
Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes, levied for general purposes Special Purpose Local Option Sales Tax Investment earnings Grants and Contributions not restricted to specific programs Property taxes levied for debt service Other Gain on Sale of Assets
Total Revenues
Expenses:
Instruction Support Services: Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Nutrition Other support services Interest and fiscal charges
Total Expenses
Change in Net Assets
Beginning Net Assets Ending Net Assets

Governmental Activities

2011

2010

Business-type Activities

2011

2010

Total School System

Percentage

2011

2010

Change

$

1.49 $

221.76

25.37

469.31 52.90 0.12

1.31 1.17 5.30 0.61

779.34

1.84 $ 203.78
0.00
498.92 63.43 0.23
1.31 1.27 10.58 0.90
782.26

1.69 $ 22.23 0.00
0.00 0.00 0.02
0.00 0.00 0.00 0.00
23.94

1.84 $ 21.44 0.00
0.00 0.00 0.01
0.00 0.00 0.00 0.00
23.29

3.18 $ 243.99 25.37

3.68 225.22
0.00

469.31 52.90 0.14

498.92 63.43 0.24

1.31

1.31

1.17

1.27

5.30

10.58

0.61

0.90

803.28

805.55

-13.6% 8.3% 0.0%
-5.9% -16.6% -41.7%
0.0% -7.9% -49.9% -32.2%
-0.3%

377.49
39.02 50.50 9.61 14.51 33.29 17.89 96.33 28.90 36.73 0.02 4.38 2.26

710.93

$

68.41 $

1296.88 $ 1365.29 $

438.04
37.30 40.43 8.39 14.11 28.24 15.33 90.75 39.59 48.57 0.00 3.35 2.02
766.12
16.14 $
1280.74 1296.88 $

0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.80 0.00 0.00
23.80
0.14 $
2.04 2.18 $

0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.22 0.00 0.00
23.22
0.07 $
1.97 2.04 $

377.49
39.02 50.50 9.61 14.51 33.29 17.89 96.33 28.90 36.73 23.82 4.38 2.26

438.04
37.30 40.43 8.39 14.11 28.24 15.33 90.75 39.59 48.57 23.22 3.35 2.02

734.73

789.34

68.55 $
1298.92 1367.47 $

16.21
1282.71 1298.92

-13.8%
4.6% 24.9% 14.5% 2.8% 17.9% 16.7% 6.2% -27.0% -24.4% 2.6% 30.8% 11.9%
-6.9%
322.9%

6

Primary Government Sources of Revenues

Fiscal Year 2011

SPLOST, 6.6%

Other, 0.9%

Program revenues, 33.9%

Property taxes, 58.6%
Total revenues, overall, decreased roughly $(2.27) million or -0.3% from fiscal year 2010 to fiscal year 2011, due to continued decreases in property tax revenues.
Program revenues are primarily grant related and account for approximately $272.54 million or 33.9% of total revenues received and include State QBE revenue.
General revenues represent the major revenue stream for the School System. They account for 66.1% or roughly $530.74 million of total revenues received in FY 2011. Between fiscal years 2010 and 2011, a decrease of roughly $(29.71) million in property tax revenues and a decrease in SPLOST sales tax revenues of roughly $(10.53) million occurred.
7

Primary Government Expenses

Fiscal Year 2011

Central support 5.0%
Student transportation 3.9%
Maintenance and operation of facilities
13.1%

Nutrition 3.2%

Other support services 0.6%
Interest expense 0.3%

Business administration 2.4%
School administrative 4.5%
General administrative 2.0%
Educational media 1.3%

Improvement of instruction 7.0%

Pupil services 5.3%

Instruction 51.4%

Total expenses decreased from 2010 to 2011 by -6.9% or roughly $(54.61) million. Management continues to forecast spending levels and manage spending throughout the year.
Governmental activities account for 96.8% or roughly $710.93 million of total District spending. Four groups of activities account for 88.6% or roughly $629.04 million of governmental spending: instruction roughly ($377.49 million or 53.1%); pupil and improvement of instructional services roughly ($89.52 million or 12.6%); administration and business services roughly ($65.69 million or 9.2%); and maintenance and operations roughly ($96.33 million or 13.6%).
Business-type activities revenues and expenses increased from 2010 to 2011, with revenue increasing by approximately $658,000 or 2.8% and expenses increasing by approximately $578,000 or 2.5%. Revenues increased due to an increase in pupil sales. Expenses increased as a result of unanticipated increase in costs.

8

Table 3 - Net Cost of Governmental Activities (in millions of dollars)

Instruction Support Services : Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Community services Other support services Nutrition Interest and fiscal charges
Total Expenses

Total Cost of Services

Net Cost of Services

Percentage

2011

2010

Change

2011

Percentage

2010

Change

$ 377.49 $ 438.04

-13.9% $ (240.67) $ (327.07)

-26.4%

39.02

37.30

50.50

40.43

9.61

8.39

14.51

14.11

33.29

28.24

17.89

15.33

96.33

90.75

28.90 36.73 0.00 4.38

39.59 48.57 0.00 3.35

0.02

0.00

2.26

2.02

$ 710.93 $ 766.12

4.6% 24.9% 14.6% 2.8% 17.9% 16.7% 6.2% -27.0% -24.4% 0.0% 30.8% 100.0% 11.9% -7.2% $

(20.38) (17.17) (7.62) (9.46) (25.33) (13.81) (75.13) (22.16) (27.47)
(0.87)
(2.26) (462.32) $

(22.83) (12.78) (6.99) (10.41) (21.40) (12.40) (74.23) (31.31) (38.58)
2.12 (3.35) 0.75 (2.02) (560.50)

-10.7% 34.3% 9.0% -9.1% 18.4% 11.4% 1.2% -29.2% -28.8% -100.0% -74.0% -100.0% 11.9% -17.5%

The net cost of governmental activities represents the cost of operating the School System to be covered by general revenues, including property taxes. The net cost of services decrease is attributable to a reduction in expenses due to continued budget cuts.
Table 4 - Capital Assets (net of accumulated depreciation, in millions of dollars)

Land Construction in progress Buildings Building improvements Land Improvements Furniture and fixtures Equipment Vehicles
Total

Governmental Activities

2011

2010

Percentage change

$

106.45 $

87.48

21.7%

160.67

128.03

25.5%

851.34

769.91

10.6%

99.99

83.76

19.4%

11.27

10.12

11.4%

0.04

0.05

-20.0%

4.59

2.04

125.0%

14.28

17.80

-19.8%

$

1,248.63 $ 1,099.19

13.6%

9

Fiscal Year 2011

Building improvements 8.0%

Land improvements 0.9%
Equipment 0.4% Vehicles 1.1%

Land 8.5%

Buildings 68.2%

Construction in progress 12.9%

Construction in Progress and Buildings
SPLOST III construction programs to renovate or construct academic facilities are in the 48th month of a 60 month program. For more detailed information on the School System's capital assets, see Note G in the notes to the basic financial statements.

Table 5 - Outstanding Long-Term Debt (in millions of dollars)

Capital leases
Intergovernmental agreementCity of Atlanta
ERS, Inc (COPS, Series 2006/2007) ERS, Inc (COPS, Series 2011A) ERS, Inc (COPS, Series 2011B)
Unamortized premium 2011B Compensated absences Contingent Liabilities - Legal Contingent Liabilities - Sales Tax Refund Contingent Liabilities - SPLOST Refund Workers' compensation

Total School System

percentage

2011

2010

change

$ 9.68 $ 14.00

-30.9%

18.44 8.40 72.46 31.96 3.10 5.60 1.31 0.00 0.00 7.25

19.46 9.00 0.00 0.00 0.00 5.80 2.59 2.53 29.06 6.38

-5.2% -6.7% 100.0% 100.0% 100.0% -3.5% -49.4% -100.0% -100.0% 13.6%

$ 158.20 $ 88.82

78.1%

10

Outstanding long-term debt increased in the current fiscal year due to the issuance of Certificates of Participation for the renovation of North Atlanta High School. For more detailed information on the School System's long-term debt, see Notes H and I in the notes to the basic financial statements.
Fund Financial Statements
Fund financial statements provide detailed information regarding the resources segregated for specific activities or objectives, not Government-wide. Funds are used to track specific sources of revenue and expenditures for particular programs.
The School System has three kinds of funds:
Governmental funds include most of the School System's basic services and focus on providing cash flow available for spending. These funds include the General Fund, Capital Projects Fund, Education Reform Success Fund and other governmental funds of lesser magnitude. Fund accounting statements use the modified accrual method of accounting, which measures cash and other financial assets that can be readily converted to cash. These statements present a short-term view of the School System's operations and services and do not include the long-term focus presented in the Government-wide financial statements. For an explanation of the differences, see the reconciliations included with the Governmental Fund Statements.
Proprietary fund consist of services provided by the School System for a fee and employ the full accrual method of accounting in the same manner as the Government-wide statements. The School System has one proprietary fund, Food Services. This fund provides student meals at a cost based on the student's ability to pay, subsidized by Federal funds and the School System.
Fiduciary fund account for assets not owned by the School System but for which the School System is responsible for ensuring that the assets in the funds are used for their designated purposes. These funds are not included in the Government-wide financial statement because they cannot be used to finance the School System operations. The School System has one fiduciary fund - Agency Funds (Local School, Club and Class Funds).
The following presents a summary of the General Fund, Capital Projects Fund, Education Reform Success (ERS) and other non-major governmental funds by type of revenue for the fiscal year ended June 30, 2011 as compared to June 30, 2010.
Table 6 - Revenues and other financing sources (in millions of dollars)

Local taxes Sales taxes income State revenues Federal revenues Investment income Facility rental fees Tuition charges Charges for services Other Proceeds from bonds Premium on bonds Proceeds from sale of capital assets
Total Revenues and other financing sources

Governmental Funds

Increase Percentage

2011

2010 (Decrease) Change

$ 445.99 $ 493.83 $

57.68

95.44

132.03 110.94

84.05

82.46

0.28

0.41

0.78

1.00

0.03

0.09

0.67

0.75

13.90

22.08

104.42

0.00

3.10

0.00

0.70

1.22

(47.84) (37.76) 21.09
1.59 (0.13) (0.22) (0.06) (0.08) (8.18) 104.42 3.10 (0.52)

-9.7% -39.6% 19.0%
1.9% -31.7% -22.0% -66.7% -10.7% -37.1% 100.0% 100.0% -42.6%

$ 843.63 $ 808.22 $ 35.40

4.4%

11

The following table presents a summary of the General Fund, Capital Projects Fund, ERS and other governmental funds by type of expenditures for the fiscal year ended June 30, 2011 as compared to June 30, 2010.

Table 7 - Expenditures (in millions of dollars)
Instruction Support services
Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services and nutrition Capital outlays Debt service
Total Expenditures
Excess (deficiency) of revenues over (under) expenditures - See Table 6
Transfers in Transfers out
Fund Balances, Beginning of Fiscal Year

2011

Governmental Funds

Increase

Percentage

2010 (Decrease)

Change

$ 373.89 $ 403.80 $

38.47 49.82
9.45 14.32 32.84 16.84 96.15 26.02 36.24
4.34 170.37
9.20
877.95

36.23 39.45 8.15 13.76 27.51 15.93 90.30 36.26 47.40 3.27 139.77 7.78
869.61

(29.91)
2.24 10.37
1.30 0.56 5.33 0.91 5.85 (10.24) (11.16) 1.07 30.60 1.42
8.34

-7.4%
6.2% 26.3% 16.0%
4.1% 19.4%
5.7% 6.5% -28.2% -23.5% 32.7% 21.9% 18.3%
1.0%

(34.32) (61.39)

27.07

10.97 44.66 (10.97) (44.66)
258.45 319.84

(33.69) 33.69
(61.39)

FUND BALANCES, End of Fiscal Year

$ 224.13 $ 258.45 $ (34.32)

Decreases in instruction, student transportation, maintenance and operation and central support are due to budget cuts during the current fiscal year.

Analysis of Major Funds

The School System has three major funds: the General Fund, Capital Projects Fund and the Education Reform Success Fund. The General Fund is the general operating fund of the School System and is used to account for all financial resources except those funds accounted for in another funds. The Capital Projects Fund is used for the acquisition or construction of major capital facilities and to account for the bond proceeds restricted to renovation and school construction. The Education Reform Success Fund is used for the purpose of providing financing sources for some of the School System's buildings and equipment (Forest Hill Academy and New North Atlanta High School).

General Fund
As of June 30, 2011, total fund balance in the General Fund was approximately $81.27 million. This balance includes approximately $0.46 million nonspendable, $1.10 million restricted, $17 million committed, $16 million assigned and approximately $46.71 million unassigned fund balance. As a result of operations in fiscal year 2011, the fund balance decreased by approximately $(28.46)

12

million. The decrease in fund balance is attributable to a decrease in property tax collections. For Budget to Actual comparison purposes, the General Fund reported excess expenditures over final budget for the following functions:

GENERAL FUND Instruction
Salary Non-Salary Pupil Services Non-Salary
General Administration Non-Salary
Maintenance and Operations Salary
Student Transportation Salary
Debt Service Principal

$18,484,843 Due to an increase in teacher salaries $39,470,477 Due to charter school expenses which are not budgeted
$2,410,991 Due to an increase in professional purchased services
$1,547,003 Due to an increase in professional purchased services
$28,360,413 Due to unfunded pension costs increase which was budgeted in Business Administration
$10,970,338 Due to unfunded pension costs increase which was budgeted in Business Administration
$5,339,366 Did not budget principal amounts

Transfers Out

$10,966,449 Did not budget transfers to other funds

Capital Projects Fund
As of June 30, 2011, total fund balance in the Capital Projects Fund was approximately $85.80 million. This balance includes approximately $56.90 million restricted and approximately $28.90 million assigned. The fund balance decreased by approximately $(51.08) million due primarily to an increase in SPLOST capital expenditures and a decrease in SPLOST revenues.
Education Reform Success (ERS)
As of June 30, 2011, total fund balance in the ERS fund was approximately $50.69 million all of which is restricted.
Other Governmental Funds
As of June 30, 2011, total fund balance in Non-major Governmental Funds was approximately $6.37 million. This balance included approximately $4.16 million restricted and approximately $2.21 million assigned. The fund balance decreased by approximately $(5.46) million due to an increase in expenditures, primarily instruction.
Current Issues
Currently known facts, decisions or conditions that are expected to have a significant effect on the financial position or results of operations are as follows:

13

Atlanta Independent School System received Federal American Recovery Reinvestment Act (ARRA) funds which helped to offset reductions in State QBE funding. 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.
Continuing revenue from the Special Purpose Local Option Sales Tax should facilitate our ability to replace and improve existing schools and add additional classrooms. Our operating budget will continue to be tight, as we expect decreased funding from the State of Georgia due to current financial conditions. Despite these challenges, we remain committed to using our financial resources efficiently to provide an exceptional educational experience for our students.
In February 2008, the Supreme Court of Georgia issued a decision holding that educational ad valorem taxes can only be used for educational purposes. In response, the General Assembly passed Senate Resolution 996, a proposed amendment to the Georgia Constitution permitting Boards of Education to agree to pledge educational ad valorem taxes for redevelopment projects and purposes, and the voters ratified the constitutional amendment by referendum in November 2008. As a result of Senate Resolution 996 and the referendum, House Bill 63 was passed by the General Assembly and became effective April 22, 2010, reenacting the Redevelopment Powers Act.
However, in December 2008, a challenge to the use of retroactive educational ad valorem taxes was filed by a taxpayer. In August 2010, the Superior Court issued an order expressly authorizing the City and Atlanta Development Authority (ADA) to transfer to APS for its general purposes all of the Perry Bolton and BeltLine ad valorem tax increment that they had received for tax years up to and including 2009. Pursuant to this order, the City and ADA actually made a transfer of funds to APS.
The Plaintiffs in the Clark case have initiated two appeals of orders related to the August 2010 transfer of funds. Plaintiffs have recently amended their complaint to drop some claims. After two appeals, a summary judgment was issued in favor of the School System on November 15, 2011. The revenue has been recognized at the government-wide level.
General Fund Budgetary Highlights
The School System's budget is prepared by the Finance Division and is a collaborative effort between the School System and the Atlanta community. The basis for preparation utilizes a zerobased approach because it has systematically provided a more accurate account of anticipated spending levels for the year.
Details of the General Fund original budget and the amended budget are presented on page 51 in the Financial Section of this report.
Requests for Information
This financial report is designed to provide a general overview of the School System's finances for all those with an interest in the School System's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the School System's Chief Financial Officer, 130 Trinity Street SW, Atlanta Georgia 30303.
14

BASIC FINANCIAL STATEMENTS

Atlanta Independent School System Statement of Net Assets June 30, 2011

ASSETS Current Assets:
Cash and cash equivalents Investments Taxes receivable, net Due from other governments Other receivables Internal balances Prepaid items and other assets Total current assets
Noncurrent assets: Net pension asset Deferred Charges Non-depreciable capital assets Depreciable capital assets Less: Accumulated depreciation
Total noncurrent assets
TOTAL ASSETS
LIABILITIES Current liabilities:
Accounts payable and other current liabilities Accrued interest payable Due to other governments Unearned revenues Current portion of long-term obligations
Total current liabilities
Noncurrent liabilities: Noncurrent portion of long-term obligations
TOTAL LIABILITIES
NET ASSETS Invested in capital assets, net of related debt Restricted for:
Debt service Capital projects Federal programs State and local programs Unrestricted
TOTAL NET ASSETS

Governmental Activities

Business-type Activities

Total

$

173,892,357 $

136,679,551

22,256,453

33,712,545

118,215

4,175,042

456,736

371,290,899

11,153,856 1,466,547
267,130,359 1,300,996,330 (319,491,754) 1,261,255,338
1,632,546,237

6,404,725 $ -
275,727 3,731
(4,175,042) 681,110
3,190,251
-
3,190,251

180,297,082 136,679,551
22,256,453 33,988,272
121,946 -
1,137,846 374,481,150
11,153,856 1,466,547
267,130,359 1,300,996,330 (319,491,754) 1,261,255,338
1,635,736,488

74,010,096 454,246
34,497,704 89,000
8,697,607
117,748,653

149,506,316 267,254,969

1,104,601,221

1,104,717 107,591,205
14,077 4,145,071 147,834,977

$

1,365,291,268 $

922,905 -
83,702 -
1,006,607
-
1,006,607
-
2,183,644
2,183,644 $

74,933,001 454,246
34,497,704 172,702
8,697,607
118,755,260
149,506,316
268,261,576
1,104,601,221
1,104,717 107,591,205
14,077 4,145,071 150,018,621
1,367,474,912

The accompanying notes are an integral part of the basic financial statements.

15

Atlanta Independent School System Statement of Activities
For the Fiscal Year Ended June 30, 2011

Functions/Programs Primary Government Governmental activities: Instruction Support Services: Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services Nutrition Interest expense
Total Governmental activities
Business-type activities Food services
Total Business-type activities
Total School System

Program Revenues

Net (Expenses) Revenues and Changes in Net Assets

Expenses

Charges for Services

Operating Grants and Contributions

Capital Grants and Contributions

Governmental Activities

Business-type Activities

$

377,491,180 $

39,024,421 50,496,694
9,616,559 14,514,905 33,287,126 17,889,836 96,333,469 28,898,209 36,729,914 4,382,181
15,657
2,258,183

710,938,335

31,492 $
783,989 670,918 -
1,486,399

111,426,958 $
18,641,247 33,328,056 2,000,787 5,053,926 7,958,215 4,077,543 20,416,518 6,735,023 9,260,421 2,845,306
14,696 -
221,758,696

25,367,686 $
-
25,367,686

(240,665,044) $
(20,383,174) (17,168,638)
(7,615,772) (9,460,979) (25,328,911) (13,812,293) (75,132,962) (22,163,186) (27,469,493)
(865,957) (961)
(2,258,183)
(462,325,554)

- $
-
-

23,800,532

23,800,532

$

734,738,867 $

1,695,061 1,695,061 3,181,460 $

22,233,560 22,233,560 243,992,256 $

General revenues: Taxes: Property Taxes levied for general purposes Property Taxes. Levied for debt service Special Local Option Sales Tax & Other Taxes Grants and Contributions not restricted to specific programs Unrestricted Investment earnings Other Gain on sale of capital assets
Total General revenues
Change in net assets
Net assets - beginning of fiscal year

25,367,686 $

(462,325,554) $

128,089 128,089 128,089 $

469,310,346 1,174,306 52,901,075 1,310,441 124,833 5,298,494 614,466
530,733,961
68,408,407
1,296,882,861

17,068 17,068
145,157
2,038,487

Net assets - end of fiscal year

$

1,365,291,268 $

2,183,644 $

TOTALS
(240,665,044)
(20,383,174) (17,168,638)
(7,615,772) (9,460,979) (25,328,911) (13,812,293) (75,132,962) (22,163,186) (27,469,493)
(865,957) (961)
(2,258,183)
(462,325,554)
128,089
128,089
(462,197,465)
469,310,346 1,174,306 52,901,075 1,310,441 141,901 5,298,494 614,466
530,751,029
68,553,564
1,298,921,348
1,367,474,912

The accompanying notes are an integral part of the basic financial statements.

16

ASSETS
Cash and cash equivalents Investments Taxes Receivables, net Due from other governments Other receivables Due from other funds Interest receivable Prepaid items
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable and accrued liabilities Retainage payables Contracts payable Due to other funds Due to other governments Deferred revenue
TOTAL LIABILITIES
FUND BALANCE Nonspendable Restricted Committed Assigned Unassigned
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES

Atlanta Independent School System Balance Sheet
Governmental Funds June 30, 2011

General Fund

Capital Projects Fund

Education Reform Success

Nonmajor Governmental
Funds

Total Governmental
Funds

$

89,810,473 $

33,089,905 $

71,999,418

64,680,133

15,525,898

6,730,555

19,126,967

-

118,215

-

-

29,305,618

389

-

456,347

-

$

197,037,707 $

133,806,211 $

50,991,979 $ -
150,317 -
51,142,296 $

- $ 14,585,578 5,923,391 -
20,508,969 $

173,892,357 136,679,551
22,256,453 33,712,545
118,215 35,379,326
389 456,347
402,495,183

$

60,043,599 $

-

-

17,159,617

38,566,936

$

115,770,152 $

900,718 $ 3,691,816 9,343,963
34,065,778
-
48,002,275 $

30,000 $ -
426,133 -
456,133 $

- $ 14,044,667 5,793 89,000
14,139,460 $

60,974,317 3,691,816 9,343,963 31,204,284
34,497,704 38,655,936
178,368,020

$

456,347

1,104,717

16,995,134

16,000,000

46,711,357

56,905,042
28,898,894
-

81,267,555

85,803,936

$

197,037,707 $

133,806,211 $

50,686,163
-
50,686,163
51,142,296 $

4,159,148
2,210,361
-
6,369,509
20,508,969 $

The accompanying notes are an integral part of the basic financial statements.

456,347 112,855,070
16,995,134 47,109,255 46,711,357
224,127,163
402,495,183

17

ATLANTA INDEPENDENT SCHOOL SYSTEM

Reconciliation of Governmental Fund Balance Sheet to the Government-wide Statement of Net Assets June 30, 2011

Total Fund balances - total governmental funds

$ 224,127,163

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 above funds.
Cost of capital assets Less: Accumulated depreciation

$ 1,568,126,689 (319,491,754)

1,248,634,935

Property taxes used in governmental activities represents amounts that are not financial resources and thus are deferred in the above funds.
Deferred Revenue Property Taxes receivable Allowance for uncollectible receivables

25,022,211 25,882,281 (12,337,556)

38,566,936

Accumulated pension contributions in excess of annual required contributions are reported as assets for governmental activities.

11,153,856

Other long-term assets (Bond Issuance Costs) are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets.

1,466,547

Long-term liabilities, including capital leases, are not due and payable in the current period and therefore are not reported in the above funds.
Capital leases Intergovernmental agreement - City of Atlanta Education Reform Success 2006/2007 Education Reform Success 2011A Education Reform Success 2011B Accrued Interest Payable Unamortized premium ERS 2011B Compensated absences Contingent legal liabilities Workers compensation

$

(9,682,005)

(18,439,000)

(8,400,000)

(72,460,000)

(31,955,000)

(454,246)

(3,097,709)

(5,600,233)

(1,311,976)

(7,258,000)

(158,658,169)

NET ASSETS OF GOVERNMENTAL ACTIVITIES

$ 1,365,291,268

The accompanying notes are an integral part of the basic financial statements.

18

Atlanta Independent School System Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds For The Fiscal Year Ended June 30, 2011

REVENUES Local taxes Sales taxes income State revenues Federal revenues Investment income Facility rental fees Tuition charges Charges for services Other
Total revenues
EXPENDITURES Current:
Instruction Support Services:
Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services Nutrition Capital outlays
Debt Service: Principal Interest and fiscal charges Bond issuance cost
Total Expenditures
Excess (deficiency) of revenues over/(under) expenditures
OTHER FINANCING SOURCES(USES) Proceeds from bonds Premium on bonds Proceeds from sale of capital assets Transfers in Transfers out
Total Other Financing Sources(Uses)
Net change in fund balances
Fund Balances, Beginning of Fiscal Year
FUND BALANCES, End of Fiscal Year

General Fund

Capital Projects Fund

Education Reform Success

Nonmajor Governmental Funds

Total Governmental Funds

$

445,986,671 $

- $

-

57,678,243

127,235,844

1,767,686

10,747,543

-

124,833

157,853

783,989

-

31,492

-

670,918

-

6,230,668

438,713

591,811,958

60,042,495

-

$

-

-

-

-

-

-

-

-

-

-

$

-

3,030,067

73,299,315

-

-

-

-

7,227,628

83,557,010

445,986,671 57,678,243
132,033,597 84,046,858 282,686 783,989 31,492 670,918 13,897,009
735,411,463

342,158,303
24,014,862 18,465,663
9,437,280 11,488,177 31,429,973 16,025,431 92,797,603 24,258,790 31,499,062
1,667,013 -
5,339,366 1,432,488
-
610,014,011
(18,202,053)

12,578
41,689 95,282 3,294,169 49,709 2,616,021 115,014,153
-
121,123,601
(61,081,106)

-
55,360,000
595,000 371,449 1,466,547
57,792,996
(57,792,996)

706,016 2,824 (10,966,449)
(10,257,609)
(28,459,662)

10,000,000 -
10,000,000
(51,081,106)

104,415,000 3,097,709 966,449 (2,824)
108,476,334
50,683,338

109,727,217

136,885,042

$

81,267,555 $

85,803,936 $

2,825 50,686,163 $

The accompanying notes are an integral part of the basic financial statements.

31,718,972
14,460,085 31,354,768
9,590 2,790,652 1,411,364
716,701 54,069
1,708,121 2,122,936 2,656,481
15,657 -
-
89,019,396
(5,462,386)
-
-
(5,462,386)
11,831,895
6,369,509 $

373,889,853
38,474,947 49,820,431
9,446,870 14,320,518 32,841,337 16,837,414 96,145,841 26,016,620 36,238,019
4,323,494 15,657
170,374,153
5,934,366 1,803,937 1,466,547
877,950,004
(142,538,541)
104,415,000 3,097,709 706,016
10,969,273 (10,969,273)
108,218,725
(34,319,816)
258,446,979
224,127,163

19

ATLANTA INDEPENDENT SCHOOL SYSTEM
Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances To the Government-wide Statement of Activities For the Fiscal Year Ended June 30, 2011

Total Net Change in Fund Balances - Governmental Funds Amounts reported for Governmental Activities are different because:

$ (34,319,816)

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays of exceed depreciation of in the current period.

Capital outlays Depreciation expense

160,894,669 (34,968,029)

The net effect of various miscellaneous transactions involving disposal of capital assets which decreased net assets.

Historical cost of disposal of capital assets (land, vehicles, buildings, and building improvements) Accumulated depreciation

(2,276,489) 2,184,939

125,926,640 (91,550)

Revenues reported in the statement of activities that do not provide current financial resources and, therefore, are not reported as revenues in governmental funds.
Deferred property tax Deferred sales tax Capital Contributions

24,497,981 (4,777,168) 23,600,000 43,320,813

Pension contributions in excess of Annual Required Contributions are reported as assets for Governmental Activities.

Bond issuance costs are reported as an expenditure in Government Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the effective interest method.

Accrued interest is reported in the government-wide statement of activities, but does not require the use of current financial resources and therefore is not reported as an expenditure in governmental funds.

Some expenses reported in the statement of activities do not require the use of current financial resources and , therefore, are not reported as expenditures in governmental funds. The issuance of longterm debt (e.g., leases, notes) provides current financial resources.

Principal payments on capital leases Principal payments on intergovernmental agreement - City
of Atlanta Principal payments on Education Reform Success Proceeds from Education Reform Success 2011A Proceeds from Education Reform Success 2011B Proceeds from unamortized premium ERS 2011B Compensated absences Contingent legal liabilitites Contingent liabilities - Sales Tax Refund Contingent liabilities - SPLOST Refund Workers' compensation

4,316,491
1,022,875 595,000
(72,460,000) (31,955,000)
(3,097,709) 203,380
1,279,179 2,526,157 29,064,201 (875,961)

1,941,406 1,466,547 (454,246)
(69,381,387)

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES The accompanying notes are an integral part of the basic financial statements.

$ 68,408,407

20

Atlanta Independent School System Statement of Net Assets
Proprietary Fund - Food Services June 30, 2011

ASSETS
Current assets: Cash and cash equivalents Due from other governments Other receivables Inventories
Total Assets
LIABILITIES
Liabilities: Current Liabilities:
Accounts payable and accrued liabilities Due to other funds Unearned revenue
Total Liabilities
NET ASSETS
Unrestricted
Total net assets
TOTAL LIABILITIES AND NET ASSETS

$

6,404,725

275,727

3,731

681,110

$

7,365,293

$

922,905

4,175,042

83,702

5,181,649

$

2,183,644

2,183,644

$

7,365,293

The accompanying notes are an integral part of the basic financial statements.

21

Atlanta Independent School System Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Fund - Food Services For the Fiscal Year Ended, June 30, 2011

Operating revenue: Charges for services
Operating expenses Personnel costs Professional and contract services Supplies and materials Other operating costs
Total Operating Expenses
Operating Loss
Nonoperating revenues Grants - Child Nutrition Program Investment Income
Total Nonoperating revenues:
Changes in net assets
Net Assets Beginning of Fiscal Year
NET ASSETS, END OF FISCAL YEAR

$

1,695,061

3,434,929 17,718,346
1,796,025 851,232
23,800,532
(22,105,471)

22,233,560 17,068
22,250,628

145,157

2,038,487

$

2,183,644

The accompanying notes are an integral part of the basic financial statements.

22

Atlanta Independent School System Statement of Cash Flows
Proprietary Fund - Food Services For the Fiscal Year Ended June 30, 2011

Cash Flow From Operating Activities Cash received from user charges Cash payments to employees for services Cash payments to suppliers for goods and services
Net cash used for operating activities
Cash Flows From Non-capital Financing Activities Non-operating grants received
Net cash provided from for non-capital financing activities
Cash Flows From Investing Activities Interest on bank accounts
Net cash provided by investing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of fiscal year
Cash and cash equivalents, end of fiscal year

$

1,808,059

(3,683,724)

(15,941,761)

(17,817,426)

19,610,913 19,610,913

17,068 17,068 1,810,555

4,594,170

$

6,404,725

Reconciliation of operating (loss) to net cash provided (used) by operating activities:
Operating (loss) Adjustments to reconcile operating loss to net
cash provided (used) by operating activities: Commmodities used
Changes in Assets and Liabilities Decrease in Accounts Receivables Increase in liabilities
Net cash used for operating activities
Noncash Non-Capital Financing Activities USDA donated food commodity

$

(22,105,471)

2,042,623

112,998 2,132,424

$

(17,817,426)

$

2,042,623

The accompanying notes are an integral part of the basic financial statements.

23

Atlanta Independent School System Statement of Fiduciary Assets and Liabilities
June 30, 2011

Assets: Cash and cash equivalents

Agency Fund Local School, Club and Class
Funds

$

573,842

Liabilities:

Due to local schools and student groups

$

573,842

The accompanying notes are an integral part of the basic financial statements.

24

`
NOTES TO THE BASIC FINANCIAL STATEMENTS

Atlanta Independent School System
Notes to the Basic Financial Statements
June 30, 2011
A. Summary of Significant Accounting Policies The financial statements of the School System have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applicable to government units. The more significant of the School System's accounting policies are summarized below.
1. Reporting Entity The Atlanta Independent School System (School System) was established by the Georgia State Legislature and is composed of nine publicly elected members serving four-year terms. The School System has the authority to approve its own budget and to provide for the levy of taxes to cover the cost of operations and maintenance and to cover debt service payments. Additionally, the School System has decision-making authority, the power to approve selection of management personnel, the ability to significantly influence operations, and primary accountability for fiscal matters. Accordingly, the School System is a primary government and consists of all the organizations that compose its legal entity.
As required by generally accepted accounting principles, these financial statements present the School System and its component units, entities for which the School System is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the School System's operations. Therefore, data from these units are combined with data of the School System.
Blended Component Unit Education Reform Success, Inc., (ERS) (a non-profit corporation) was established by the School System for the purpose of providing financing for some of the School System's buildings and equipment. The School System has a voting majority on the Board. ERS has issued certificates of participation (COPS) for the acquisition and construction of facilities and equipment. The COPS are repayable solely from payments made by the School System to ERS under a lease agreement for the related facilities and equipment. Accordingly, the COPS and the related capital assets are reported in the government-wide financial statements. Separate financial statements for ERS are not prepared.
2. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the School System and its' component units. The effects of inter-fund activity have been netted in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
25

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to applicants who use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the governmental fund financial statements.
3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The agency fund does not have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the School System considers revenues to be available if they are collected within 30 days of the end of the fiscal period. The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). 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 respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, intergovernmental revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the School System.
The School System reports the following major government funds:
26

General Fund - The General Fund is the School System's primary operating fund. It accounts for all financial transactions of the School System, except those required to be accounted for in another fund.
Capital Projects Fund - This fund accounts for resources which are used exclusively for acquiring school sites, constructing and equipping new school facilities, and renovating existing facilities. The major revenue sources are proceeds from debt proceeds, bond sales, property tax revenue, special purpose local option sales tax revenues and amounts received from the State of Georgia.
Education Reform Success (ERS) Capital Projects Fund - This fund was established by the School System for the purpose of providing financing for some of the School System's buildings and equipment. ERS has issued certificates of participation (COPS) for the acquisition and construction of facilities and equipment.
The School System reports the following major proprietary fund:
Food Services Fund - The primary purpose of the Food Services Fund is to account for activities of the School System's school breakfast and lunch programs, which are funded primarily by the United States Department of Agriculture, passed through the Georgia Department of Education.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The School System has elected not to follow subsequent private-sector guidance.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for the enterprises fund includes the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Proprietary funds and fiduciary funds employ the economic resources measurement focus and are accounted for on the accrual basis.
The fiduciary fund accounts for assets held by the School System in a trustee capacity or as an agent on behalf of others. The School System reports the following fiduciary fund:
Agency Fund - This fund is used to account for local school student club and class accounts. It is custodial in nature and does not involve measurement of results of operations.
The fiduciary fund is excluded from the government-wide financial statements.
4. Assets, Liabilities and Net Assets or Equity
a. Cash Equivalents
The School System considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Georgia Laws, OCGA 45-8-14, authorizes the
27

School System to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
b. Investments Investments made by the School System in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 3683-4 authorizes the School System 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 of Georgia, Office of Treasury and Fiscal Services
7) Repurchase agreements
8) Obligations of other political subdivisions of the State of Georgia
c. 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.
d. Inventories and Prepaids Inventories are valued at cost using the first-in, first-out method of accounting. The costs of food services fund inventories are recorded as expenditures when consumed (consumption method). Prepaids are payments made to vendors for services that will benefit periods beyond June 30, 2011 and are recorded as prepaid items in the government-wide financial statements.
28

e. Capital Assets
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the Government-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 their estimated market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not included in the cost of capital assets. The School System does not capitalize book collections or works of art.

Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements and proprietary funds are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings Building Improvements Furniture and Fixtures Vehicles Equipment Capital Leases Intangible Assets

All $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

N/A 10 to 20 years 20 to 50 years 10 to 30 years
3 to 15 years 5 to 8 years
3 to 15 years 3 to 8 years
5 to 10 years

Capital assets donated to proprietary fund type operations are recorded at their estimated fair value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful life of the assets.
f. Compensated Absences
Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive salary related compensation are attributable to services already rendered and it is probable that the School System will compensate the employees for the benefits through paid time off or some other means. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported as longterm obligations in the government-wide financial statements and are not liabilities of the governmental funds.
g. Long-term Obligations
In the governmental-wide financial statements and proprietary fund types in the fund financial statements, long-term debt, and other long-term obligations are reported as liabilities in the applicable governmental activities or business-type activities statement of net assets. Long-term debt and other long-term liabilities that will be paid from governmental funds are not recognized as a liability in the fund financial statements until due but are reported in the government-wide statements as long-term debt.

29

h. Fund Equity
In the fund financial statements, governmental funds report limitations on the purpose for which all or a portion of the resources of the fund balance can be used. The limitations can vary depending upon their source. Financial statements for governmental funds report up to five components of fund balance:

Nonspendable Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted Amounts that can be spent only for specific purposes because of state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Amounts that can be used only for specific purposes determined by formal action by the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board.
Assigned Amounts that are designated by the Superintendent, or designee (Chief Financial Officer), for a particular purpose.
Unassigned All amount not included in other spendable classifications.

Fund Balances of the Governmental Funds at June 30, 2011 are as follows:

FUND BALANCES

Nonspendable- The following are nonspendable because they are not in spendable form:

General Fund- Prepaid Items

$

456,347

456,347

Restricted - The following fund balances are legally restricted to specified purposes:

General Fund - Debt Service Capital Projects Fund- Capital Projects ERS - School construction Non-Major Funds - Continuation of Federal programs Non-Major - Other State and Local programs

1,104,717 56,905,042 50,686,163
14,077 4,145,071

112,855,070

Committed - The following fund balances are committed to specific purposes:

General Fund - School Based Activities General Fund - For instruction and support services expenditures

995,134 16,000,000

16,995,134

Assigned - The following fund balances are assigned to specific purposes:

General Fund - For fiscal year 2012 budget deficit Capital Projects Fund- Capital Projects Non-Major Funds- Local school programs

16,000,000 28,898,894 2,210,361

47,109,255

Unassigned - The following fund balances are not included in the other categories:

General Fund

46,711,357

46,711,357

Total Fund Balances

$ 224,127,163

30

When multiple categories of fund balance are available for expenditure, the School System will use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, the School System will use fund balance in the following order: committed, assigned, and then unassigned.
i. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
The School System applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.
j. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue and expenses including the disclosure of contingent assets and liabilities. Actual amounts could differ from those estimates.
Workers Compensation:
The School System recognizes in the government-wide statements the liabilities for estimated losses to be incurred from pending worker compensation claims and for worker compensation claims incurred but not reported (IBNR). IBNR claims are estimates of claims that are incurred through the end of the fiscal year but have not yet been reported. These liabilities are based on actuarial valuations.
k. Deferred(Unearned) Revenue
The government-wide financial statements use the accrual basis of accounting. Revenue is recognized when earned. Property taxes are recognized as revenue in the fiscal year for which they are levied. Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues, which are measurable but not available and, in accordance with the modified basis of accounting.
B. Budgets and Budgetary Accounting
Atlanta Independent School System employs zero-based budgeting for budget preparation. The zerobased budgeting process provides for the identification and prioritization of school system activities and resources starting from zero and accumulating to the targeted funding level. Each activity is linked to the goal, objectives and mission of the System and ranked as to its importance. As the proposed budget moves through each level of the organization, program activities and goals are aggregated further and ranked again. The final budget produced and presented is one, which includes all program activities ranked in order of importance in reaching the System's mission. Our basis of budget presentation is in accordance with GAAP.
31

The School System follows these procedures in establishing the budgetary data reflected in the financial statements:
1. Budget requests are completed in December.
2. Proposed budgets are consolidated and reviewed by the CFO, and submitted to the Superintendent of Schools and Budget Commission for additional review prior to approval by the Atlanta Board of Education.
3. Public hearings on the proposed budget are held in March and April.
4. The annual budget is legally adopted by the Board in May for the General Fund and Special Revenue Funds in June.
5. The administrative level of budgetary control upon adoption is at the program level. The Atlanta Board of Education must approve revisions between salary and non-salary expenditures. Transfer of budgeted amounts between object categories within program functions requires the approval of the budget center manager.
6. Revenues and expenditures of the Capital Projects Fund are budgeted on an annual basis.
7. Education Reform Success (ERS) does not have a legally adopted budget.
8. The Atlanta Board of Education approves the budget for the Special Revenue Funds as a whole, which is the legal level of budgetary control (the level at which expenditures may not legally exceed appropriations). The combined Special Revenue Funds budget to actual schedule does not include the Proprietary Fund which is included when provided to the board for approval.

C. Fund Deficit/Excess Expenditures over Appropriations of Individual Funds

The following funds reported excess expenditures over final budget:

GENERAL FUND

Instruction Salary Non-Salary

$18,484,843 $39,470,477

Maintenance and Operation

Salary

$28,360,413

Pupil Services Non-Salary

$2,410,991

Student Transportation

Salary

$10,970,338

General Administration Non-Salary $1,547,003
Debt Service Principal $5,339,366

Transfers

$10,966,449

SPECIAL REVENUE FUND - COMBINED

Pupil Services Salary

$2,161,424

School Administration

Salary

$267,950

Student Transportation

Salary

$359,231

CAPITAL PROJECTS FUND

Maintenance and Operations

Non-Salary

$3,255,860

Central Support
Non-Salary

$2,601,758

32

D: Deposits and Investments Risks
Deposits (Governmental Funds)
The School System's cash and investment policy limits deposits to demand and money market accounts and time deposits at local banks. The School System's deposit shall be secured by Federal Depositary Insurance Corporation (FDIC) coverage and /or bank pledges. State statutes require banks holding public funds to secure the funds by FDIC insurance, securities pledged at par value, and surety bonds at face value in combined aggregate totaling not less than 110 percent of the public funds held. State statutes define acceptable security for collateralization.
Georgia Fund 1, created by OCGA 36-83-8, is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia 1 Fund 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 an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 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 a $1.00 per share value. The fair value of the School System's position in the pool is the same as the value of pool shares ($1 per share value). The regulatory oversight agency for Georgia Fund 1 is the Office of Treasury and Fiscal Services of the State of Georgia.
Funds included in this Pool are not required to be collateralized. The fair value of the School System's position in the pool approximates the value of the School System's pool shares. Credit risk, value, and interest risk at June 30, 2011 are as follows:

Credit Risk AAAm rated

Value $52,128,727

Interest Risk 59 day WAM

The School System classifies its investments in Georgia Fund I as cash and cash equivalents.
Categorization of Deposits As of June 30, 2011, all of the School System's deposits were covered either by FDIC or collateralized by the financial institution or a combination of both.
Categorization of Investments The School System's investments as of June 30, 2011, are presented below. All investments are presented by investment type and debt securities are presented by maturity.

33

Investment Type
Debt Securities U.S. Agencies Implicitly Guaranteed: FNMA, FHLM, FHLB Discount Notes
Repurchase Agreements
Other Investments Certificates of Deposits U.S. Gov't Obligations - U.S. Treasury Bills U.S. Treasury Money Market Mutual Funds (Open End) - cash equivalents Georgia Fund 1 - Cash Equivalents
Total Investments

Fair Value

Investment Maturity Less than One Year

73,679,606
51,000,014 124,679,620
5,000,000 6,999,930
92,973,852 52,128,727 281,782,129

73,679,606
51,000,014 124,679,620
5,000,000 6,999,930
92,973,852 52,128,727 281,782,129

Investment Reconciliation

Total Investments

General Fund Investments Capital Projects Investments Georgia Fund I - Cash Equivalents Education Reform Success-money market

93,149,694 85,513,231 52,128,727 50,990,477

281,782,129

Reclass to Cash and Cash Equivalents

Investments on Balance Sheet as of
June 30, 2011

(21,150,276) (20,833,098) (52,128,727) (50,990,477)

71,999,418 64,680,133
-

(145,102,578)

136,679,551

Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School System's investment management policy limits investment maturities to 3 years as a means of managing its exposure to fair value losses arising from increasing interest rates.

Custodial Credit Risk Custodial credit risks for investments, is the risk that in the event of the failure of the counterparty, the School System will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Because of the collateralization requirements, the School System has no custodial credit risk for its investments.

Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School System's policy for managing credit quality risk related to community bank certificates of deposits and repurchase agreements states such investments will only be purchased through banks having at least an AA rating.

The investment policy states Repurchase Agreements may only be purchased from a financial institution that has short-term ratings of AA or higher by Standard & Poor's (S&P) or Aa2 by Moody's. The U.S. Agencies investments are not required to be rated.

34

The investments subject to credit quality risk are reflected below:

Rated Debt Instruments

Fair Value

Quality Ratings AAA

U.S. Treasury Money Market Mutual Funds
U.S. Gov't Obligations - U.S. Treasury Bills Georgia Fund 1 - Cash Equivalents Debt Securities U.S. Agencies
Implictly Guaranteed
FNMA, FHLM, FHLB Discount Notes Certificates of Deposits Repurchase Agreements
Total by Quality Rating

92,973,852 6,999,930 52,128,727

92,973,852 6,999,930 52,128,727

73,679,606 5,000,000 51,000,014 281,782,129

73,679,606 N/A
51,000,014 276,782,129

Concentration of Credit Risk Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issuer. The School System does have a policy concerning the composition of its investment portfolio and is in compliance with its investment policy.

The investment policy establishes the following eligible investments individually are not to exceed the following composition in the portfolios of the General Fund, Capital Projects Fund and the Education Reform Success Fund:

U.S. Treasury Bills Federal Agencies (No more than 40% per issuer) Repurchase Agreements State of Georgia - Georgia Fund 1 Bank Special Purpose Money Market Funds Commercial Paper Certificates of Deposit

100% 65% 30% 25% 25% 20% 10%

Investments in any one issuer that represents 5% or more of the total investments were as follows as of June 30, 2011:

Issuer

Investment Type

% of Total Investments

Tri Party Repo Agreement US MONEY MARKET BOFA Government Reserves Capital US MONEY MARKET- Georgia Fund 1 Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Financial Institutions US Treasury Bill
US Bank Money Market

Repurchase Agreement Bank special purpose Money Market Funds Bank special purpose Money Market Funds Federal Agency Securities Federal Agency Securities Federal Agency Securities Certificates of Deposits Bank special purpose Money Market Funds
Bank special purpose Money Market Funds

18.10% 14.90% 18.50% 2.80% 9.51% 13.84% 1.77% 2.48%
18.10%

35

Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or deposit. Foreign investments are prohibited by law in Georgia.
E. Due from Other Governments
Due from other governments consists of grant reimbursements due primarily from the Georgia Department of Education for expenditures made, but not yet reimbursed and amounts due from City of Atlanta for bonds issued and unspent tax collections, collected and held by the City of Atlanta on behalf of the School System.
F. Property Taxes and Other Receivables
Property taxes are normally levied and billed by July 1, based on property values assessed as of January 1, on all real and personal property located within the City of Atlanta. Property taxes are due by October 15, 2011 at which time they become delinquent and penalties and interest may be assessed and liens may be attached to property. An allowance has been established for estimated amounts that will not be collected. The School System considers revenues to be available if they are collected within 30 days of the end of the current fiscal year.

General Fund

Property Taxes Receivable 27,863,454

Allowance for Uncollectible
(12,337,556)

Net Property Receivable
15,525,898

General Fund

Other Receivable
568,215

Allowance for Uncollectible
(450,000)

Net Other Receivable
118,215

Capital Projects Fund

SPLOST Tax Receivable
6,730,555

Allowance for Uncollectible
-

Net SPLOST Tax Receivable
6,730,555

36

G. Capital Assets

The following is a summary of changes in the Capital Assets during the fiscal year ended June 30,

2011:

Decreases &

Beginning

Transfers to

Ending

Balance

Increases

Service

Balance

Governmental activities:

0211-0000 Land

87,483,309 F1 19,005,585 A1

(36,891) B1 106,452,003

0251-0000 Construction in Progress

128,030,221 F2 153,744,174 A2 (121,096,039) B2 160,678,356

Total Non-Depreciable Assets

215,513,530

172,749,759

(121,132,930)

267,130,359

0231-0000 Buildings 0231-0001 Building Improvements 0221-0000 Land Improvements 0241-0000 Equipment 0241-0002 Furniture & Fixtures 0241-0001 Vehicles
Total Depreciable assets

1,005,852,815 F3 113,927,712 F4 16,927,983 F5 5,120,896 F6 56,030 F7 28,509,543 F8
1,170,394,979

102,274,611 A3 24,541,788 A4 2,159,764 A5 3,864,786 A6
A7 A8 132,840,949

(88,000) B3 (374,805) B4
B5 B6 B7 (1,776,793) B8 (2,239,598)

1,108,039,426 138,094,695 19,087,747 8,985,682 56,030 26,732,750
1,300,996,330

Total at Historical Cost

1,385,908,509

305,590,708

(123,372,528)

1,568,126,689

Less Accumulated Depreciation 0232-0000 Buildings 0232-0001 Building Improvements 0222-0000 Land Improvements 0242-0000 Equipment 0242-0002 Furniture & Fixtures 0242-0001 Vehicles

235,937,907 F10 30,171,876 F11 6,803,699 F12 3,080,104 F13
6,070 F14 10,709,008 F15

20,854,262 A10 8,253,532 A11 1,013,785 A12 1,319,553 A13
5,603 A14 3,521,294 A15

(88,000) B10 (320,146) B11
B12 B13 B14 (1,776,793) B15

256,704,169 38,105,262 7,817,484 4,399,657
11,673 12,453,509

Total Accumulated Depreciation

286,708,664

34,968,029

(2,184,939)

319,491,754

Governmental activities capital assets, net

1,099,199,845

270,622,679

(121,187,589)

1,248,634,935

For the fiscal year ended June 30, 2011, the School System transferred $121,096,039 from construction in progress to depreciable capital assets.

Depreciation expense was charged to governmental functions as follows:

Instruction

$ 29,443,919

Support Services

Pupil Services

27,215

Educational Media

41,457

Business Administration

2,103,050

Maintenance and operation of facilities

86,953

Student transportation

3,265,435

Total

$ 34,968,029

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H. Long-term Debt
Capital Leases
The School System has entered into various equipment lease agreements. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of inception.
In 2008, the School System entered into a lease agreement for the purchase of various capital assets in the amount of $20,000,000. These leases were advanced funded. As of June 30, 2011, all the advance funds have been used to purchase capitalized assets.

The capital assets acquired through capital leases are as follows:

Buses

Asset

Governmental Activites
$ 11,136,550

Less: Accumulated depreciation Net Capital Assets

(4,957,360) $ 6,179,190

The following is a schedule of the future minimum lease payments under capital leases and the total present value:

Fiscal Year Ending Total minimum payments

2012 2013 2014 2015 2016 2017-2020

Governmental Activites 2,129,354 2,129,354 1,470,357 1,470,357 1,469,917 2,300,268 10,969,607

Less: Amount representing interest

(1,287,602)

Present value of minimum payments

$

9,682,005

Intergovernmental Agreement
Over the years, the City of Atlanta has issued various annual general obligation bonds and general obligation refunding bonds on behalf of the School System. The debt service for the bonds has been funded through the School System's bonded debt portion of the annual tax levy. The maturity date for the bonds is December 21, 2027. The bonded debt portion of property taxes collected by the City on behalf of the School System is retained by the City and used to pay the annual debt service on the outstanding bonds. The debt service payments are calculated using assumptions and estimates based on information available. As of June 30, 2011, $1,104,717 is available and held by the City.
General Obligation Bonds currently outstanding at the City of Atlanta on behalf of the School System are as follows:
38

Purpose Governmental activities

Interest Rate 3-5%

Amount $18,439,000

In prior fiscal years, the City of Atlanta School System defeased certain bonds by placing funds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School System's basic financial statements. At June 30, 2011, $58,865,000 of bonds is outstanding and is considered defeased.

Education Reform Success, Inc. (COPS)
In October 2006, ERS issued certificates of participation (COPS) on behalf of the School System in the amount of $10,115,000. The proceeds from the certificates were used to finance the renovations and improvements to the Instructional Service Center.

In June 2011, ERS issued COPS on behalf of the School System in the amount of $104,415,000, (Series 2011A, $72,460,000) and (Series 2011B, $31,955,000). The proceeds from the certificates will be used to finance the construction and or renovation of North Atlanta High School. Interest rates varies (5.457% - 5.657% for Series 2011A and 2% - 5% for Series 2011B) and payments are due on March 1 and September 1 of each year until maturity (maturity dates for series 2011A is March 1, 2027 and March 1, 2017 for Series 2011B).

I. Long-Term Obligations Changes in long-term obligations during the fiscal year ended June 30, 2011, were as follows:

Governmental activities: Long-term debt
Capital leases Intergovernmental agreement-
City of Atlanta ERS, Inc (COPS, Series 2006/2007) ERS, Inc (COPS, Series 2011A) ERS, Inc (COPS, Series 2011B) Unamortized premium 2011B
Total long-term debt

Beginning Balance

Additions Deductions

Ending Balance

Amounts Due within One Year

$ 13,998,496 $

- $ (4,316,491) $ 9,682,005 $ 1,778,535

19,461,875 8,995,000
42,455,371

72,460,000 31,955,000 3,097,709 107,512,709

(1,022,875) (595,000) -
(5,934,366)

18,439,000 8,400,000 72,460,000 31,955,000 3,097,709 144,033,714

1,040,875 620,000 -
3,439,410

Other long-term liabilities Compensated absences Contingent legal liabilitites Contingent liabilities - sales tax refund Contingent liabilities - SPLOST refund Workers' compensation Total other long-term liabilities

5,803,613 2,591,155 2,526,157 29,064,201 6,382,039 46,367,165

2,287,003 531,972 -
5,001,577 3,767,909 11,588,461

(2,490,383) (1,811,151) (2,526,157) (34,065,778) (2,891,948) (43,785,417)

5,600,233 1,311,976
7,258,000 14,170,209

2,594,285 557,004 -
2,106,908 5,258,197

Total long-term obligations

$ 88,822,536 $ 119,101,170 $ (49,719,783) $ 158,203,923 $ 8,697,607

Note: The General Fund has been typically used to liquidate the liability for compensated absences, contingent liabilities and worker's compensation.

39

The Contingent liabilities amount of $34,068,778 for SPLOST refund is now reflected at the governmental fund level as due to other governments. This amount ($34,065,778) represents amounts due to Fulton County Board of Education for excess ELOST III proceeds received by APS from the Georgia Department of Revenue which Fulton County Board of Education was legally entitled to.
At June 30, 2011, payments due by fiscal year, which includes principal and interest for these items, are as follows:

Fiscal Year Ending
2012 2013 2014 2015 2016 2017-2021 2022-2026 2027 Total Principal and Interest

Intergovernmental Agreements

Capital Leases

City of Atlanta

Principal

Interest

Principal

Interest

1,778,535 1,841,220 1,247,378 1,293,514 1,340,902 2,180,456
$9,682,005

350,819 288,134 222,979 176,843 129,015 119,812
$1,287,602

1,040,875 1,086,875 1,143,625 1,264,500 1,325,750 6,708,750 5,528,625
340,000 $18,439,000

875,446 832,790 787,004 736,419 680,609 2,130,391 577,686
7,013 $6,627,358

Fiscal Year Ending
2012 2013 2014 2015 2016 2017-2021 2022-2026 2027 Total Principal and Interest

Education Reform Success, Inc. Certificates of Participation 2006/2007 Principal Interest

Education Reform Success, Inc. Certificates of Participation 2011A Principal Interest

620,000 346,878

645,000 321,275

670,000 294,640

700,000 266,972

730,000 238,066

4,110,000 713,990

925,000 38,198

-

-

$8,400,000 $2,220,019

47,460,000 25,000,000 $72,460,000

2,775,631 4,029,142 4,029,142 4,029,142 4,029,142 20,145,710 18,920,071 1,414,250 $59,372,230

Education Reform Success, Inc.

Certificates of Participation

2011B

Principal

Interest

5,920,000 6,040,000 6,340,000 6,660,000 6,995,000
$31,955,000

978,326 1,420,150 1,301,750
999,750 682,750 349,750
$5,732,476

40

J. Inter-fund Receivables and Payables Inter-fund receivables and payables net balances as of June 30, 2011 are as follows:

Due from other funds

Due to other funds

Governments Funds

General Fund

$

- $ 17,159,617

Capital Projects Fund

29,305,618

-

Education Reform Success

150,317

Nonmajor Governmental Funds

-

8,121,276

Business- Type Fund Food Service Fund

-

4,175,042

$ 29,455,935 $ 29,455,935

During the course of its operations, the School System makes transfers between funds to finance operations, provide services and acquire assets. To the extent that certain transfers among funds had not been received as of fiscal year-end, balances of inter-fund amounts receivable or payable have been recorded. It is management's intent to repay inter-fund balances within the next fiscal year.

K. Inter-fund Transfers
Transfers within the governmental funds for the fiscal year ended June 30, 2011 are as follows:

Governmental funds: General Fund Capital Projects Fund Education Reform Success - Capital Projects Fund

Transfers In

Transfers Out

$

2,824 (10,966,449)

10,000,000

966,449

(2,824)

$ 10,969,273 $ (10,969,273)

Transfers are used to move local funds from the General Fund to Capital Projects Funds to fund construction projects.
L. Risk Management
The School System is exposed to various risks of losses related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. The School System is self-insured for workers' compensation claims and unemployment compensation. The School System purchases commercial insurance in amounts deemed prudent by management for all other risks of loss. Settled claims have not yet exceeded purchased commercial insurance coverage in any of the past three years.

41

Unemployment Compensation:
The School System is self-insured for unemployment compensation. The State bills the School System quarterly for the outstanding claims and the School System pays the claims at that time. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Fiscal Year
Liability

Claims and Changes in Estimates

Claims Paid

End of Fiscal Year
Liability

Fiscal year 2010 $

-$

519,930 $ (519,930) $

-

Fiscal year 2011 $

-$

657,496 $ (657,496) $

-

Workers' Compensation:

The School System is fully self-insured for workers' compensation claims of its employees. The School System accounts for claims within the General Fund with expenditures and liabilities being reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. An accrued liability for the estimated costs of claims and related settlement costs incurred but not paid and/or reported as of fiscal year-end is reported on the governmental activities financial statements. The calculation of the present value of future workers' compensation liabilities is based on a discount rate of 3.5%. Changes in the claims liability during the last two fiscal years are as follows:

Balance at Beginning of Fiscal Year

Claims and Changes in Estimates

Claim Payments

Balance at End of
Fiscal Year

Fiscal year 2010 $ 7,826,556 $ 1,131,414 $ (2,575,931) $ 6,382,039 Fiscal year 2011 $ 6,382,039 $ 3,767,909 $ (2,891,948) $ 7,258,000

M. Nonmonetary Transactions
The School System received from the United States Department of Agriculture through the Georgia Department of Education approximately $1,230,789 in donated food commodities for its lunchroom programs. The federally assigned value of these commodities is reflected as revenue and expense in the Food Services Fund financial statements.
N. On-behalf Payments for Fringe Benefits
The School System has recognized revenues and expenditures in the amount of $797,858 for health insurance and pension costs paid by the Georgia Department of Education to the State Merit System of Personnel Administration for non-certified personnel on the School System's behalf.
42

O. Retirement Plans

Teachers Retirement System of Georgia (TRS)

Plan Description

Substantially all teachers, administrative and clerical personnel employed by local school systems of the State of Georgia are covered by the Teachers Retirement System of Georgia (TRS), which is a cost sharing multiple employer public employee retirement system sponsored by the State of Georgia. Most School Systems' employees participate in TRS.

TRS provides service retirement, disability retirement and survivor's benefits for its members. A member is eligible for service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. Early retirement benefits are reduced by the lesser of 1/12 of 7% of each month the member is below age 60, or by 7% of each year or fraction thereof by which the member has less than 30 years of service.

Normal retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years) and compensation up to the date of death.

The TRS Board of Trustees has the authority to establish and amend benefit provisions of the pension plan under Title 47, chapter 3. TRS issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by calling 404-352-6500 or by accessing their website at www.trsga.com.

Funding Policy
Employees of the School System who are covered by TRS are required to pay 5.25% of their gross earnings to TRS. The School System makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. The employer contribution rate is 9.74% at June 30, 2011.

Total actual and required contributions were as follows (the School System contributed 100% of the annual required contribution):

2011

2010

2009

School System Employees

$ 32,515,502 18,178,891
$ 50,694,393

$ 32,863,759 17,724,959
$ 50,588,718

$ 30,872,725 16,655,525
$ 47,528,250

43

City of Atlanta General Employees Pension Plan
Plan Description
All permanent employees of the School System who are not covered under the TRS are eligible to participate in the City of Atlanta General Employees' Pension Plan (the "Plan"). In addition, certain School System employees employed prior to July 1, 1979, also participate in the Plan.
The Plan provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The Plan is an agent multiple-employer pension plan administered by a Board of Trustees, which includes the Mayor of the City of Atlanta or designee, the City's Chief Financial Officer, one member of City Council, one member of the School System, one member elected by eligible employees of the City, one member elected by eligible employees of the School System, one member elected by retired employees of the School System and one member elected by retired employees of the City. The Board of Trustees has the authority to establish and amend the benefit provisions of the Plan.
On December 12, 2005, the School System adopted the following changes to the Plan:

1. 10 year vesting; 2. 2.5% benefit multiplier (capped at 80%); and 3. Unreduced retirement at 30 years of service regardless of age.
The Plan issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. The report may be obtained by writing or by calling the Plan at:
City of Atlanta General Employees Pension Plan 68 Mitchell Street Atlanta, GA Telephone Number: (404) 330-6000
The Plan provides retirement benefits that, initially, are 2% of the employee's highest average monthly base compensation over any 36-month period. A participant may retire at age 65 or, after 15 years of service, at age 60. Cost-of-living increases are awarded annually, up to a 3% maximum increase. Partial vesting percentages based on years of creditable service and provisions for early retirement are included in the Plan. Benefits also may be payable at termination, death, or disability.
The School System's membership in the Plan as of July 1, 2010 is as follows:

Active employees Inactive members Retirees and beneficiaries
Total membership

871 38 2,467
3,376

Method Used to Value Investments Investments are stated at fair value. Fair value of Plan assets at July 1, 2010 was $105,573,290.
44

Funding Policy and Annual Pension Cost

The School System's funding policy is to contribute a percentage of covered employee payroll as developed in the actuarial valuation for the Plan. Obligations to contribute to the Plan are established by the Board, subject to minimum financing standards established by the State of Georgia.

Active participants are required to contribute 7% of pay (8% if participant has a covered beneficiary or is married). The School System's contribution percentage is the actuarial determined amount necessary to fund Plan benefits after consideration of employee contributions.

The actuarial determined contribution amount is the sum of the annual normal cost (determined under the entry age normal actuarial cost method) and the amortization of the unfunded actuarial accrued liability as a level percentage of future payrolls (over 40 years from January 1, 1979). The remaining amortization period is closed 22 years remaining as of July 1, 2010.

The Plan's annual pension cost for the current fiscal year, based on actuarial valuations performed as of July 1, 2010 and related information for the Plan is as follows:

Contribution rates as a percent of covered payroll:

Employee Employer

7.0% or 8.0% 8.00%

Annual required contribution Employer contributions made
Actuarial valuation date
Actuarial cost method
Amortization method
Actuarial assumptions: Investment rate of return Projected salary increases:
Inflation Merit or seniority and productivity Post retirement benefit increases

$37,216,555 $39,000,000
7/1/2010
Entry age normal
Level % of payroll
8.0% per year
3.0% per year 4.5% per year
N/A

The asset valuation method used is the actuarial value from the prior year plus net new money plus 20% of the asset appreciation/depreciation for the current year and each of the prior four years.
Three-Year Trend Information is as follows:

45

Year 2009 2010 2011

Annual Pension Cost (APC)
$39,570,397 $43,560,100 $37,058,594

% of APC Contributed
106% 104% 105%

Net Pension (Asset)/Obligation
($7,272,550) ($9,212,450) ($11,153,856)

Net Pension Asset - The School System's actuarially required contribution, pension cost and increase in the beginning net pension asset for the fiscal year ended June 30, 2011, were computed as follows:

Actuarially required contribution Interest on net pension asset ARC adjustment Annual pension cost

$

37,216,555

(736,996)

579,035

37,058,594

Actual contributions made

(39,000,000)

Increase in net pension asset

1,941,406

Net pension asset, June 30, 2010

9,212,450

Net pension asset, June 30, 2011

$

11,153,856

Plan Funded Status The School System's funding status based upon the most recent actuarial valuation is as follows:

Actuarial Valuation
Date 7/1/2010

Actuarial Value of Assets*
(a) $114,615,676

Actuarial Accrued Liability (AAL) Entry Age
(b) $669,032,859

Unfunded AAL
(UAAL) (b-a)
$554,417,183

Funded Ratio (a/b) 17.13%

Covered Payroll
(c) $26,304,364

UAAL use as a Percentage of Covered Payroll ((b-a)/c)
2107.70%

The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to
46

continual revision as results are compared to past expectations and new estimates are made about the future.
Actuarial calculations reflect a long-term perspective. Calculations are based on the substantive plan in effect as of July 1, 2010.

P. Post-Employment Benefits
Georgia Retiree Health Benefit Fund
Plan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Insurance Plan administered by the Georgia 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 Georgia Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for the School OPEB Fund. That report may be obtained from the Georgia Department of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303.
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 twenty-five percent (25%) of the cost of health insurance coverage.
Participating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board. This contribution rate is established to fund all benefits due under the health insurance plans for both the active and retired employees 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 on-going 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 employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2011, were as follows:
Certified Employees

July 2010- April 2011 May 2011 June 2011

21.955% of state-based salaries 14.492% of state-based salaries

Non-Certificated Employees Non-Certificated Employees

July 2010 November 2010 - $162.72 per month December 2010 June 2011 - $218.20 per month

47

The School System's contribution to the health insurance plans for the fiscal year ended June 30, 2011, June 30, 2010, and June 30, 2009 were $43,496,218, $38,330,627, $30,600,143 respectively, and which equaled the required contribution/annual OPEB cost.
Q. Commitments and Contingencies
Construction Commitments
The School System has active construction projects as of June 30, 2011. The projects relate to construction, renovation of school buildings and other projects. At fiscal year-end, the School System's commitments with contractors were $26,896,301.
Litigation and Other Contingencies The School System is a defendant in various lawsuits, which arose, in the ordinary course of its activities. The School System believes its liability in these matters is $1,311,976.
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School System believes that such disallowances, if any, will be immaterial to its overall financial position.
Encumbrances
The School System's Board reauthorized $16 million to fund encumbrances that were outstanding as of June 30, 2011. The actual amount was approximately $13.8 million and was used for Instruction and Support services expenditures.
R. New Accounting Pronouncements
GASB Statement No. 54 was implemented during the current fiscal year. GASB 54 was issued in February 2009 to classify the various components of fund balance and clarify the use of governmental fund types. The various components of fund balance are designed to indicate the extent to which the government is bound to honor constraints on the specific purposes for which amounts in the fund can be spent.
S. Pollution Remediation Obligations
GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, establishes accounting and financial reporting criteria for liabilities that address current or potential detrimental effects of existing pollution by participating in pollution remediation activities. When one of five obligating events identified by the GASB occurs, the components of the expected pollution remediation outlays must be estimated and a determination made whether the outlays should be accrued as a liability or capitalized when goods and services are acquired, as appropriate. Pollution remediation liabilities must be measured based on the pollution remediation outlays expected to be incurred to settle these liabilities. It must be based on "reasonable and supportable" assumptions of future events that may affect the eventual settlement of the liability, and should be measured and reported at current value. The current value of the liability should be based
48

on applicable federal, state or local laws or regulations that have been approved, regardless of their effective date and the technology expected to be used for the cleanup.
Outlays for pollution remediation obligations should be recognized as liabilities if goods and services used for pollution remediation activities are liquidated with expendable available financial resources (modified accrual accounting). However, pollution remediation outlays should be capitalized in the government-wide or proprietary fund statements when goods and services are acquired for certain specific purposes; these amounts are recorded as expenditures at the fund level.
As of June 30, 2011, the School System was the responsible party in the remediation of mold removal, asbestos abatement, expired chemical disposal, paint disposal, tire disposal and air quality testing. A site assessment and preliminary evaluation of required remediation indicated that the amount of liability is immaterial as of June 30, 2011 and therefore, not recorded in the governmental activities statement of net assets. The potential liability is deemed immaterial at this time to record to the School System's financial statements. APS paid $619,261 for current financial fiscal year remediation activities.
T. Subsequent Event
On November 8, 2011, SPLOST IV referendum was approved. It is estimated that SPLOST IV will generate approximately $520 million for APS that will fund numerous Capital Improvement projects and Certificates of Participation debt liquidation.
As noted in the Management Discussion and Analysis section, the School System has been involved in a court case related to the Tax Allocation Districts (TAD). The educational ad valorem tax collections specific to the Perry Bolton and Beltline districts have not been recognized as revenues (although the School System had received $25,022,211 prior to June 30, 2011 from the Atlanta Development Authority and the City of Atlanta) in the School System's financial statement at the governmental fund level (in the General Fund) nor in the government-wide level until a summary judgment in favor of APS was issued.
After two appeals (which had been outstanding during the last two fiscal years and up to November 14, 2011), a summary judgment was issued in favor of the School System on November 15, 2011. The summary judgment cleared the way for the School System to recognize these balances as revenues at the government-wide level as of June 30, 2011. However, since the appeals surrounding this revenue were still outstanding past thirty (30) days of June 30, 2011 and the summary judgment in favor of the School System occurred 30 days subsequent to June 30, 2011, the School System did not recognize the revenue at the governmental fund level (in the General Fund) as of June 30, 2011 and will recognize the balance of the associated deferred revenue in the General Fund during Fiscal Year 2012.
49

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50

REQUIRED SUPPLEMENTARY INFORMATION

Atlanta Independent School System GENERAL FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (GAAP Budgetary Basis)
For the Fiscal Year Ended June 30, 2011

REVENUES

Local taxes

$

State revenues

Federal revenues

Investment income Facility rental fees Tuition charges Charges for services Other

Total revenues

EXPENDITURES Current:
Instruction 107100SSaBlary 107100NNoSn-Salary
Support Services: Pupil services
107200SSaBlary 107200NNoSn-Salary

Improvement of instructional services 107201SSaBlary 107201NNoSn-Salary

Educational media 107202SSaBlary 107202NNoSn-Salary

General administration 107203SSaBlary 107203NNoSn-Salary

School administration 107204SSaBlary 107204NNoSn-Salary

Business administration 107205SSaBlary 107205NNoSn-Salary

Maintenance and operation of facilities 107206SSaBlary 107206NNoSn-Salary

Student transportation 107207SSaBlary 107207NNoSn-Salary

Central support 107208SSaBlary 107208NNoSn-Salary

Other support services 107209SSaBlary 107209NNoSn-Salary

Capital Outlays 107400SSaBlary 107400NNoSn-Salary

Debt Service: Principal Interest

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Transfers in Transfers out

Net change in fund balances

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original (1)

Final (1) (2)

459,979,326 111,000,000
5,000,000 1,900,000 1,050,000
100,000 50,000
9,946,562
589,025,888

441,529,728 125,543,783
11,509,999 1,900,000 1,050,000 100,000 50,000
11,246,562
592,930,072

274,008,666 204,792,518
69,216,148
29,261,108 20,377,160
8,883,948
23,860,524 11,968,173 11,892,351
9,489,951 6,834,523 2,655,428
11,452,625 6,307,774 5,144,851
33,599,600 25,257,403
8,342,197
14,240,866 9,029,793 5,211,073
63,497,886 20,782,892 42,714,994
12,625,931 8,629,731 3,996,200
71,599,419 9,653,026
61,946,393
1,580,496 80,262
1,500,234
38,011,313 -
38,011,313
5,797,503 -
5,797,503
589,025,888
-
-
-
109,727,217
109,727,217

284,202,983 266,760,694
17,442,289
30,080,933 25,043,729
5,037,204
22,211,611 15,842,747
6,368,864
9,580,855 8,781,958
798,897
11,555,614 8,618,796 2,936,818
33,415,095 31,897,596
1,517,499
24,526,435 20,875,509
3,650,926
64,900,626 22,422,146 42,478,480
13,622,483 10,348,613
3,273,870
74,328,148 52,110,568 22,217,580
1,908,824 92,224
1,816,600
49,076,351 -
49,076,351
5,797,503 -
5,797,503
625,207,461
(32,277,389)
-
(32,277,389)
109,727,217
77,449,828

Actual
445,986,671 127,235,844
10,747,543 124,833 783,989 31,492 670,918
6,230,668 591,811,958
342,158,303 285,245,537
56,912,766
24,014,862 16,566,667
7,448,195
18,465,663 12,609,802
5,855,861
9,437,280 8,692,304
744,976
11,488,177 7,004,356 4,483,821
31,429,973 30,765,348
664,625
16,025,431 13,069,609
2,955,822
92,797,603 50,782,559 42,015,044
24,258,790 21,318,951
2,939,839
31,499,062 10,606,657 20,892,405
1,667,013 99,118
1,567,895
-
6,771,854 5,339,366 1,432,488
610,014,011
(18,202,053)
706,016 2,824
(10,966,449)
(28,459,662)
109,727,217
81,267,555

(1) Original and Final budget amounts do not include budgeted revenues or expenditures of various principal accounts. (2) Property taxes and state fund revenues related to charter schools are budgeted in the Instruction Function.

Variance with Final Budget
(Over ) Under
(4,456,943) (1,692,061)
762,456 1,775,167
266,011 68,508
(620,918) 5,015,894 1,118,114
(57,955,320) (18,484,843) (39,470,477)
6,066,071 8,477,062 (2,410,991)
3,745,948 3,232,945
513,003
143,575 89,654 53,921
67,437 1,614,440 (1,547,003)
1,985,122 1,132,248
852,874
8,501,004 7,805,900
695,104
(27,896,977) (28,360,413)
463,436
(10,636,307) (10,970,338)
334,031
42,829,086 41,503,911
1,325,175
241,811 (6,894)
248,705
49,076,351 -
49,076,351
(974,351) (5,339,366) 4,365,015
15,193,450
(14,075,336)
(706,016) (2,824)
10,966,449
(3,817,727)
-
(3,817,727)

51

Actuarial Valuation
Date 1/1/2005 1/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010

Actuarial Value of Assets*
(a) $102,301,954 $116,866,067 $133,058,241 $150,876,105 $112,295,208 $114,615,676

Atlanta Independent School System Required Supplementary Information

Schedule of Funding Progress

Actuarial Accrued Liability (AAL) Entry Age
(b) $580,470,790 $600,055,443 $643,301,615 $655,110,071 $644,788,188 $669,032,859

Unfunded AAL
(UAAL) (b-a)
$478,168,836 $483,189,376 $510,243,374 $504,233,966 $532,492,980 $554,417,183

Funded Ratio (a/b) 17.62% 19.48% 20.68% 23.03% 17.42% 17.13%

Covered Payroll
(c) $40,366,756 $26,185,568 $29,105,414 $28,272,933 $29,404,892 $26,304,364

UAAL use as a Percentage of Covered Payroll ((b-a)/c)
1184.56% 1845.25% 1753.09% 1783.45% 1810.90% 2107.70%

See Note O to financial statements for actuarial assumptions.

52

OTHER SUPPLEMENTARY INFORMATION

NONMAJOR GOVERNMENTAL FUNDS
Combining and Individual Fund Statements and Schedules: Combining Balance Sheet Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Special Revenue Funds: Title I Fund Title II Fund Title VI-B Fund Lottery Fund Other Federal Programs Fund Other Special Projects Fund
Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund Combining Statement of Changes in Assets and Liabilities Agency Fund

NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenues that are legally restricted for specific purposes or committed to expenditures for specified purposes other than debt services or capital projects.
The School System's Special Revenue Funds have been established primarily on the basis of program purpose and include the following funds and primary funding sources:
Title I Fund was established to account for federal grant funds passed through the Georgia Department of Education to provide remedial education in the areas of reading and math and to provide a special education program for children who are physically handicapped.
Title II Fund was established to account for federal grant funds passed through the Georgia Department of Education, for the purpose of improving teacher quality and increasing the number of highly qualified teachers, para-professionals, and principals.
Title VI-B Fund was established to account for federal grant funds passed through the Georgia Department of Education, for the purpose of providing special education programs for children in pre-kindergarten through the twelfth grade.
Lottery Fund was established to account for State of Georgia lottery funds passing through the State of Georgia Department of Education for various programs as established by the State.
Other Federal Programs Fund was established to account for other federal funds for which separate presentation is not considered necessary.
Other Special Projects Fund was established to account for other state and local funds for which separate presentation in not considered necessary.

Atlanta Independent School System Combining Balance Sheet
Non-major Governmental Funds June 30, 2011

Assets: Due from other governments Due from other funds
Total Assets

Title I

Title II

Special Revenue Funds

Title VI-B

Lottery

Other Federal Programs

Other Special Projects

Total

$

9,329,325

-

$

9,329,325

969,030 -
969,030

2,864,774 -
2,864,774

74,722
74,722

895,615 -
895,615

526,834 $ 5,848,669
6,375,503

14,585,578 5,923,391
20,508,969

Liabilities:

Due to other funds

$

Deferred Revenue

Due to other governments

Total Liabilities

$

Fund Balances:

Restricted

$

Assigned

Total Fund Balance

TOTAL LIABILITIES AND

FUND BALANCES

$

9,329,325 -
9,329,325
-
9,329,325

969,030 -
969,030

2,864,774 -
2,864,774

-

-

-

-

-

-

969,030

2,864,774

5,793
5,793
68,929 -
68,929
74,722

881,538 -
881,538
14,077 -
14,077
895,615

- $ 89,000
-
89,000

14,044,667 89,000 5,793
14,139,460

4,076,142 $ 2,210,361
6,286,503

4,159,148 2,210,361
6,369,509

6,375,503 $ 20,508,969

53

REVENUES State Federal Other Total Revenues
EXPENDITURES Current Instruction Support services Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services Nutrition
Total Expenditures
Excess (deficiency) of revenues over (under) expenditures
OTHER FINANCING SOURCES(USES) Transfers in Transfers out
Total Other Financing Sources(Uses)
Net change in Fund Balances
Fund Balances, Beginning of Fiscal Year
FUND BALANCES, End of Fiscal Year

Atlanta Independent School System Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-major Governmental Funds For the Fiscal Year Ended June 30, 2011

Title I

Title II

Special Revenue Funds

Title VI-B

Lottery

Other Federal Programs

Other Special Projects

Total

$

-

48,877,694

-

$

48,877,694

5,925,329
-
5,925,329

13,550,371
-
13,550,371

2,599,029 45,169 -
2,644,198

4,351,921
-
4,351,921

431,038 548,831 7,227,628
8,207,497

$ 3,030,067 73,299,315 7,227,628
83,557,010

$

18,132,442

5,294,305 21,148,469
1,546,813
264,183 393,118
436,123 158,286 1,503,955
-

$

48,877,694

-

$

-

-

-

-

$

-

2,605,362
1,668,180 1,510,575
141,212 -
5,925,329

5,006,161
6,220,851 1,253,297
16,046
56,195
997,821
-
13,550,371

2,574,076
28,334 2,179
3,249 -
2,607,838

-

-

36,360

-

-

4,853

-

-

-

-

-

4,853

-

-

41,213

-

-

27,716

-

-

68,929

1,050,285
172,166 1,914,011
9,590 117,587
7,686 -
78,018 -
1,036,970 15,657
4,401,970

2,350,646
1,076,249 5,526,237
1,110,206 1,139,495
267,388 54,069
196,159 1,823,438
112,307 -
13,656,194

31,718,972
14,460,085 31,354,768
9,590 2,790,652 1,411,364
716,701 54,069
1,708,121 2,122,936 2,656,481
15,657
89,019,396

(50,049) (5,448,697)

-

-

-

(4,853)

-

(4,853)

(5,462,386)
4,853 (4,853)
-

(50,049) 64,126

(5,453,550) 11,740,053

(5,462,386) 11,831,895

14,077

6,286,503 $ 6,369,509

54

Atlanta Independent School System All Special Revenue Funds Combined Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2011

REVENUES

State revenues

$

Federal revenues

Local revenues

Other local revenues

Total revenues

EXPENDITURES Current:
Instruction Salary Non-Salary
Support Services: Pupil services Salary Non-Salary

Improvement of instructional services Salary Non-Salary

Educational media Salary Non-Salary

General administration Salary Non-Salary

School administration Salary Non-Salary

Business administration Salary Non-Salary

Maintenance and operation of facilities Salary Non-Salary

Student transportation Salary Non-Salary

Central support Salary Non-Salary

Other support services Salary Non-Salary

Nutrition Salary Non-Salary

Capital Outlays Salary Non-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES) Transfers in Transfers out
Net change in fund balances

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original

Final

3,290,375 105,837,766
11,871,693
120,999,834

6,485,399 130,011,318
1,347,586 20,256,048
158,100,351

47,914,243 13,865,926 34,048,317
9,182,214 3,456,667 5,725,547
27,667,797 13,185,520 14,482,277
-
5,328,642 1,918,714 3,409,928
18,194,355 10,000
18,184,355
1,115,088 1,076,355
38,733
35,789 8,125
27,664
5,970,545 614,497
5,356,048
1,080,504 501,369 579,135
4,487,855 182,930
4,304,925
-
22,802 -
22,802
120,999,834
-
-
11,831,895
11,831,895

60,328,255 23,068,452 37,259,803
14,374,939 5,464,264 8,910,675
59,144,384 22,535,614 36,608,770
9,776 9,026
750
5,417,352 1,455,654 3,961,698
1,751,788 999,922 751,866
1,160,219 614,809 545,410
1,085,270 41,445
1,043,825
6,758,084 594,968
6,163,116
3,314,189 1,081,211 2,232,978
4,697,139 1,496,849 3,200,290
16,800 -
16,800
22,156 -
22,156
158,080,351
20,000
(20,000)
-
11,831,895
11,831,895

Actual

Variance with Final Budget
(Over ) Under

3,030,067 73,299,315
7,227,628
83,557,010

3,455,332 56,712,003
1,347,586 13,028,420
74,543,341

31,718,972 17,910,868 13,808,104
14,460,085 7,625,688 6,834,397
31,354,768 17,898,900 13,455,868
9,590 9,590
-
2,790,652 914,521
1,876,131
1,411,364 1,267,872
143,492
716,701 503,944 212,757
54,069 317
53,752
1,708,121 954,199 753,922
2,122,936 606,482
1,516,454
2,656,481 1,202,149 1,454,332
15,657 -
15,657
-
89,019,396
(5,462,386)
4,853 (4,853) (5,462,386)
11,831,895
6,369,509

28,609,283 5,157,584
23,451,699
(85,146) (2,161,424) 2,076,278
27,789,616 4,636,714
23,152,902
186 (564) 750
2,626,700 541,133
2,085,567
340,424 (267,950) 608,374
443,518 110,865 332,653
1,031,201 41,128
990,073
5,049,963 (359,231) 5,409,194
1,191,253 474,729 716,524
2,040,658 294,700
1,745,958
1,143 -
1,143
22,156
22,156
69,060,955
5,482,386
(4,853) (15,147) 5,462,386
-
5,462,386

55

Atlanta Independent School System SPECIAL REVENUE FUND - TITLE I FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

Federal revenues

$

Total revenues

EXPENDITURES Current:
Instruction 14710S0aSlaBry 14710N0oNnS-Salary
Support Services: Pupil services
14720S0aSlaBry 14720N0oNnS-Salary

Improvement of instructional services 14720S1aSlaBry 14720N1oNnS-Salary

General administration 14720S3aSlaBry 14720N3oNnS-Salary

School administration 14720S4aSlaBry 14720N4oNnS-Salary

Business administration 14720S5aSlaBry 14720N5oNnS-Salary

Student transportation 14720N7oNnS-Salary

Central support 14720S8aSlaBry
14720N8oNnS-Salary

Other support services 14720S9aSlaBry 14720N9oNnS-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

Net change in fund balances

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

79,172,451 79,172,451

84,723,004 84,723,004

48,877,694 48,877,694

35,845,310 35,845,310

30,034,558 3,233,991 26,800,567
4,071,777 1,906,889 2,164,888
16,271,449 9,507,471 6,763,978
4,554,101 1,383,819 3,170,282
18,184,355 -
18,184,355
1,094,766 1,076,355
18,411
4,499,911 4,499,911
119,849 94,172 25,677
341,685 52,265
289,420
79,172,451
-
-
-
-

36,160,282 9,825,405 26,334,877
5,884,975 3,449,488 2,435,487
31,846,065 16,895,240 14,950,825
2,695,120 823,236
1,871,884
397,013 175
396,838
624,015 614,809
9,206
4,675,574 4,675,574
103,360 90,405 12,955
2,336,600 1,238,650 1,097,950
84,723,004
-
-
-
-

18,132,442 7,579,593
10,552,849
5,294,305 3,059,833 2,234,472
21,148,469 14,938,154
6,210,315
1,546,813 638,817 907,996
264,183 128,377 135,806
393,118 393,118
-
436,123 436,123
158,286 130,955
27,331
1,503,955 1,088,319
415,636
48,877,694
-
-
-
-

18,027,840 2,245,812 15,782,028
590,670 389,655 201,015
10,697,596 1,957,086 8,740,510
1,148,307 184,419 963,888
132,830 (128,202) 261,032
230,897 221,691
9,206
4,239,451 4,239,451
(54,926) (40,550) (14,376)
832,645 150,331 682,314
35,845,310
-
-
-
-

56

Atlanta Independent School System SPECIAL REVENUE FUND - TITLE II FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

Federal revenues

$

Total revenues

EXPENDITURES Current:
Instruction 167100SSalBary 167100NNoSn-Salary
Support Services: Pupil services
167200SSalBary

Improvement of instructional services 167201SSalBary 167201NNoSn-Salary

Central support 167208SSalBary 167208NNoSn-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

4,614,044 4,614,044

12,342,870 5,925,329 12,342,870 5,925,329

6,417,541 6,417,541

2,308,842 1,999,947
308,895
-
1,976,803 500,374
1,476,429
328,399 -
328,399
4,614,044
-

5,404,301 4,103,157 1,301,144

2,605,362 2,299,641
305,721

- 1,668,180 - 1,668,180

6,502,731 1,996,979 4,505,752

1,510,575 116,349
1,394,226

435,838 52,923
382,915

141,212 58,777 82,435

12,342,870 5,925,329

-

-

2,798,939 1,803,516
995,423
(1,668,180) (1,668,180)
4,992,156 1,880,630 3,111,526
294,626 (5,854)
300,480
6,417,541
-

Net change in fund balances Fund Balance, Beginning of Fiscal Year FUND BALANCE, END OF FISCAL YEAR

-

-

-

-

-

-

-

-

$

-

-

-

-

57

Atlanta Independent School System SPECIAL REVENUE FUND - TITLE VI-B FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

State revenues

$

Federal revenues Total revenues

EXPENDITURES Current:
Instruction 15710S0SalBary 15710N0NonS-Salary
Support Services: Pupil services
15720S0SalBary 15720N0NonS-Salary

Improvement of instructional services 15720S1SalBary 15720N1NonS-Salary

General administration 15720S3SalBary 15720N3NonS-Salary

Business administration 15720S5SalBary

Maintenance and operation of facilities 15720S6SalBary 15720N6NonS-Salary

Student transportation 15720S7SalBary 15720N7NonS-Salary

Central support 15720N8NonS-Salary
Total Expenditures
Excess (deficiency) of revenues over (under) expenditures

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

400,000 18,162,327 18,562,327

400,000 18,966,099 19,366,099

13,550,371 13,550,371

400,000 5,415,728 5,815,728

10,460,583 5,594,828 4,865,755
4,612,656 1,205,805 3,406,851
2,354,088 1,619,021
735,067
207,708 185,639
22,069
-
7,680 7,680
-
918,844 614,497 304,347
768 768
18,562,327
-

9,588,755 4,422,300 5,166,455
7,165,099 1,369,928 5,795,171
1,292,977 1,012,232
280,745
108,505 71,615 36,890
-
44,000 40,000
4,000
1,166,763 594,968 571,795
-
19,366,099
-

5,006,161 3,852,568 1,153,593
6,220,851 1,773,094 4,447,757
1,253,297 1,197,428
55,869
16,046 16,046
-
56,195 56,195
-
997,821 954,172
43,649
-
13,550,371
-

4,582,594 569,732
4,012,862
944,248 (403,166) 1,347,414
39,680 (185,196) 224,876
92,459 55,569 36,890
(56,195) (56,195)
44,000 40,000
4,000
168,942 (359,204) 528,146
-
5,815,728
-

Net change in fund balances Fund Balance, Beginning of Fiscal Year FUND BALANCE, END OF FISCAL YEAR

-

-

$

-

-

-

-

-

-

-

-

-

-

58

Atlanta Independent School System SPECIAL REVENUE FUND -LOTTERY FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

State revenues

$

Federal revenues

Other local revenues

Total revenues

EXPENDITURES Current:
Instruction 24710S0aSlBary 24710N0NonS-Salary
Support Services: Pupil services
24720S0aSlBary 24720N0NonS-Salary

Improvement of instructional services 24720S1aSlBary 24720N1NonS-Salary

Other support services 24720N9NonS-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES) Transfers in

Net change in fund balances

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

2,297,996 -
21,083 2,319,079

2,730,987 29,983 84,998
2,845,968

2,599,029 45,169 -
2,644,198

131,958 (15,186) 84,998 201,770

2,311,614 1,915,035
396,579
7,465 7,275
190
-
-
2,319,079
-
-
-
27,716
27,716

2,752,435 2,145,777
606,658

2,574,076 2,470,835
103,241

66,242 40,171 26,071

28,334 27,866
468

8,791 7,276 1,515

2,179 2,179
-

18,500 18,500

3,249 3,249

2,845,968 2,607,838

-

36,360

27,716 27,716

4,853 41,213 27,716 68,929

178,359 (325,058) 503,417
37,908 12,305 25,603
6,612 5,097 1,515
15,251 15,251
238,130
(36,360)
(4,853)
(41,213)
-
(41,213)

59

Atlanta Independent School System SPECIAL REVENUE FUND -OTHER FEDERAL PROGRAMS FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

State revenues

$

Federal revenues

Other local revenues

Total revenues

EXPENDITURES Current:
Instruction 11710S0aSlBary 11710N0NonS-Salary
Support Services: Pupil services
11720S0aSlBary 11720N0NonS-Salary

Improvement of instructional services 11720S1aSlBary 11720N1NonS-Salary

Educational media 11720S2aSlBary 11720N2NonS-Salary

General administration 11720S3aSlBary 11720N3NonS-Salary

School administration 11720N4NonS-Salary

Business administration 11720N5NonS-Salary

Maintenance and operation of facilities 11720N6NonS-Salary

Student transportation 11720N7NonS-Salary

Central support 11720S8aSlBary 11720N8NonS-Salary

Other support services 11720S9aSlBary
11720N9NonS-Salary

Nutrition 117301NNoSn-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

2,540,588
13,828 2,554,416

1,016,524 11,862,077
13,209 12,891,810

4,351,921
4,351,921

1,016,524 7,510,156
13,209 8,539,889

560,808 76,734 484,074
146,323 56,573 89,750
1,594,901 680,695 914,206
-
118,567 23,534 95,033
-
5,000 5,000
386 386
128,431 128,431
-
-
-
2,554,416
-

2,288,499 1,056,083 1,232,416
297,153 118,577 178,576
7,857,172 1,398,504 6,458,668
9,776 9,026
750
926,643 231,181 695,462
31,308 31,308
7,000 7,000
-
232,620 232,620
6,500 6,239
261
1,218,339 127,534
1,090,805
16,800 16,800
12,891,810
-

1,050,285 367,340 682,945
172,166 85,686 86,480
1,914,011 885,320
1,028,691
9,590 9,590
-
117,587 62,845 54,742
7,686 7,686
-
-
78,018 78,018
-
1,036,970 1,523
1,035,447
15,657 15,657
4,401,970
(50,049)

1,238,214 688,743 549,471
124,987 32,891 92,096
5,943,161 513,184
5,429,977
186 (564) 750
809,056 168,336 640,720
23,622 23,622
7,000 7,000
-
154,602 154,602
6,500 6,239
261
181,369 126,011 55,358
1,143 1,143
8,489,840
50,049

Net change in fund balances Fund Balance, Beginning of Fiscal Year FUND BALANCE, END OF FISCAL YEAR

-

-

(50,049)

50,049

64,126

64,126

64,126

-

$

64,126

64,126

14,077

50,049

60

Atlanta Independent School System SPECIAL REVENUE FUND -OTHER SPECIAL PROJECTS FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

REVENUES

State revenues

$

Federal revenues

Local revenues

Other local revenues

Total revenues

EXPENDITURES Current:
Instruction 227100SaBlary 227100NoSn-Salary
Support Services: Pupil services
227200SaBlary 227200NoSn-Salary

Improvement of instructional services 227201SaBlary 227201NoSn-Salary

General administration 227203SaBlary 227203NoSn-Salary

School administration 227204SaBlary 227204NoSn-Salary

Business administration 227205SaBlary 227205NoSn-Salary

Maintenance and operation of facilities 227206SaBlary 227206NoSn-Salary

Student transportation 227207SaBlary 227207NoSn-Salary

Central support 227208SaBlary 227208NoSn-Salary

Other support services 227209SaBlary 227209NoSn-Salary

Capital Outlays 227400NSBon-Salary

Total Expenditures

Excess (deficiency) of revenues over (under) expenditures

OTHER FINANCING SOURCES (USES) Transfers out

Net change in fund balances

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original

Final

Actual

Variance with Final Budget
(Over ) Under

592,379 1,348,356
11,836,782
13,777,517

2,337,888 2,087,285
1,347,586 20,157,841
25,930,600

431,038 548,831
7,227,628
8,207,497

1,906,850 1,538,454
1,347,586 12,930,213
17,723,103

2,237,838 1,045,391 1,192,447
343,993 280,125 63,868
5,470,556 877,959
4,592,597
448,266 325,722 122,544
10,000 10,000
-
15,322 -
15,322
27,723 445
27,278
423,359 -
423,359
631,488 407,197 224,291
4,146,170 130,665
4,015,505
22,802 22,802
13,777,517
-
-
-
11,740,053
11,740,053

4,133,983 1,515,730 2,618,253
961,470 486,100 475,370
11,636,648 1,225,383 10,411,265
1,687,084 329,622
1,357,462
1,323,467 999,747 323,720
529,204 -
529,204
1,041,270 1,445
1,039,825
683,127 -
683,127
2,768,491 931,644
1,836,847
1,123,700 130,665 993,035
22,156 22,156
25,910,600
20,000

2,350,646 1,340,891 1,009,755
1,076,249 1,011,029
65,220
5,526,237 759,470
4,766,767
1,110,206 196,813 913,393
1,139,495 1,139,495
-
267,388 54,631 212,757
54,069 317
53,752
196,159 27
196,132
1,823,438 416,750
1,406,688
112,307 112,307
-
-
13,656,194
(5,448,697)

1,783,337 174,839
1,608,498
(114,779) (524,929) 410,150
6,110,411 465,913
5,644,498
576,878 132,809 444,069
183,972 (139,748) 323,720
261,816 (54,631) 316,447
987,201 1,128
986,073
486,968 (27)
486,995
945,053 514,894 430,159
1,011,393 18,358
993,035
22,156 22,156
12,254,406
5,468,697

(20,000)

(4,853)

-

(5,453,550)

11,740,053 11,740,053

11,740,053

6,286,503

(15,147) 5,453,550
5,453,550

61

Atlanta Independent School System CAPITAL PROJECTS FUND
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2011

Revenue

Sales tax revenue

$

State revenue

Investment income

Other local revenue

Total Revenue

Expenditures Current
Instruction Non-Salary
Support services General administration Non-Salary

Business administration Salary

Maintenance and operation of facilities Salary Non-Salary

Student transportation Non-Salary

Central support Salary Non-Salary

Capital outlays Salary Non-Salary

Total Expenditures

Excess (deficiency) revenues over(under) expenditures

OTHER FINANCING SOURCES (USES) Transfers in

Net change in fund balance

Fund Balance, Beginning of Fiscal Year

FUND BALANCE, END OF FISCAL YEAR

$

Budgeted Amounts

Original

Final

88,088,083 88,088,083

144,110,000 -
120,130,709 264,240,709

-
-
-
-
-
-
88,088,083 235,290
87,852,793
88,088,083
-
-
-
136,885,042
136,885,042

-
-
-
-
-
-
264,240,709 310,790
263,929,919
264,240,709
-
-
-
136,885,042
136,885,042

Actual

Variance with Final Budget
(Over ) Under

57,678,243 1,767,686
157,853 438,713 60,042,495

86,431,757 (1,767,686)
(157,853) 119,691,996 204,198,214

12,578 12,578
41,689 41,689
95,282 95,282
3,294,170 38,309
3,255,860
49,709 49,709
2,616,021 14,263
2,601,758
115,014,153 87,560
114,926,593
121,123,601
(61,081,106)
10,000,000
(51,081,106)
136,885,042
85,803,936

(12,578) (12,578)
(41,689) (41,689)
(95,282) (95,282)
(3,294,169) (38,309)
(3,255,860)
(49,709) (49,709)
(2,616,021) (14,263)
(2,601,758)
149,226,556 223,230
149,003,326
143,117,108
61,081,106
(10,000,000)
51,081,106
-
51,081,106

62

Atlanta Independent School System Combining Statement of Changes in Assets and Liabilities
Agency Fund For the Fiscal Year Ended June 30, 2011

Assets: Cash and cash equivalents

Balance July 1, 2010

Additions

Deductions

Balance June 30, 2011

$

901,214 $

1,639,022 $

1,966,394 $

573,842

Liabilities:

Due to local schools and student groups

$

901,214 $

1,639,022 $

1,966,394 $

573,842

63

Quality Basic Education Programs Program Expenditures
General Fund Quality Basic Education Programs: Schedule of Allotments and Expenditures by Program Schedule of Expenditures by Object Lottery Programs Schedule of Approved Local Option Sales Tax Projects
Schedule of State Revenues

QUALITY BASIC EDUCATION PROGRAMS - PROGRAM EXPENDITURES
The Official Code of Georgia Annotated Section 20-2-172 (a) Expenditure Controls for fiscal years 2007 and 2008 state: For each program identified in Code Section 20-2-161, each local School System shall spend 100 percent of funds designated for direct instructional costs on the direct instructional costs of such program on one or more of the programs identified in Code Section 20-2-161 at the system level, with no requirement that the School System spend any specific portion of such funds at the site where such funds were earned. The following pages are presented for purposes of additional analysis and reflect overall minimum expenditure requirements compared to overall program expenditures made by the School System as described above and also reflect minimum program expenditure requirements compared to actual expenditures made by the School System on a program basis.
64

ATLANTA INDEPENDENT SCHOOL SYSTEM BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM(QBE)
SCHEDULE OF ALLOTMENTS AND EXPENDITURES - BY PROGRAM FISCAL YEAR ENDED JUNE 30, 2011

DESCRIPTION
Direct Instructional Programs 1011 Kindergarten Program 1061 Kindergarten Program-Early Intervention Program 1021 Primary Grades (1-3) Program 1071 Primary Grades-Early Intervention (1-3) Program 1051 Upper Elementary Grades (4-5) Program 1091 Upper Elem Grades-Early Intervention (4-5) Program 1031 Middle Grades (6-8) Program 1081 Middle School (6-8) Program 1041 High School General Education (9-12) Program 3011 Vocational Laboratory (9-12) Program
Students with Disabilities 2021 Category I 2031 Category II 2041 Category III 2051 Category IV 2011 Category V 2111 Gifted Student - Category VI 2211 Remedial Education Program 5071 Alternative Education Program 1351 English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
1310 Media Center Program 1210 Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

SALARIES

ELIGIBLE QBE PROGRAM COSTS OPERATIONS

TOTAL

$

22,185,760

$

19,425,444 $

-

$

19,425,444

3,073,933

1,905,865

-

1,905,865

48,807,907

66,253,198

23,686,080

89,939,278

8,229,778

14,730,566

-

14,730,566

22,018,633

22,073,791

2,838,687

24,912,478

5,942,287

3,148,996

-

3,148,996

947,947

-

-

-

31,832,384

37,645,478

2,496,690

40,142,168

29,095,563

50,626,359

3,390,960

54,017,319

6,507,737

5,892,101

585,625

6,477,726

1,583,165 2,593,234 15,970,401 4,006,489 390,829 8,393,718 2,448,712 2,540,437 2,819,776

36,351,071 1,541,211 3,691,604
8,786,495 3,562,715 1,322,290 4,014,684

1,880,643 -
598,088 -
64,140 237,368 192,525 156,219

38,231,714 1,541,211 4,289,692
8,850,635 3,800,083 1,514,815 4,170,903

$

219,388,690

$ 280,971,868

$ 36,127,025

$ 317,098,893

6,437,327 1,148,420

8,827,160 2,492,875

729,112 952,444

9,556,272 3,445,319

TOTAL QBE FORMULA FUNDS
1100 Twenty days additional Instruction 1320 Pupil Transprtaion 1445 On behalf 1450 Indirect costs - Central Admin. 1455 Indirect costs - School Admin. 1457 Indirect costs - Facilities M&O 1500 Nurses

$

226,974,437

$ 292,291,903
803,730 12,486,525
797,858 -
150,519 $ 306,530,535

$ 37,808,581
4,520,289
$ 42,328,870

$ 330,100,484
803,730 17,006,814
797,858 -
150,519 $ 348,859,405

(1) Comprised of State Funds plus Local Five Mill Share.

65

ATLANTA INDEPENDENT SCHOOL SYSTEM
Lottery Programs Schedule of Expenditures by Object For the Fiscal Year Ended June 30, 2011

Salaries Employee benefits Employee travel Other purchased services Materials and supplies

Pre-Kindergarten Program
$ 2,096,382 404,498 326 3,809 102,823
$ 2,607,838

66

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
FISCAL YEAR ENDED JUNE 30, 2011

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (4)(5)

PROJECT STATUS

SPLOST II

Dekalb County Renovations, modifications, additions and equipment

for the following facilities: Crim High School, Coan

Middle School, Burgess/Peterson Elementary School,

East Lake Elementary School, Lin Elementary

School, Toomer Elementary School, and Whitefoord

Elementary

$

Fulton County New school construction, classroom additions, renovations, infrastructure improvements, security system improvements, technology improvements, land acquisition, site preparation, new staff development and instructional support facilities, new maintenance

SPLOST III
Fulton County Capital outlay projects including new school construction, classroom additions, renovations, infrastructure improvements, upgrading security system, technology improvements, land acquisition, site preparation, providing staff development and instructional

Dekalb County Capital outlay projects consisting of construction, renovations, modifications, additions and equipment for the following facilities: The Howard School, Lin Elementary School and Whitefoord Elementary School and any future updates: Crim High School, Coan

21,355,321 $ 486,538,295 552,357,776
20,511,000

28,351,364 $

1,498,914 $

26,852,450

Ongoing

433,838,560

1,759,645

432,078,915

Ongoing

440,299,913

98,387,096

213,405,484

Ongoing

20,906,706

6,645,911

14,260,795

Ongoing

$ 1,080,762,392 $

923,396,543 $

108,291,566 $

686,597,644

(1) The School System's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School System's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Fulton and Dekalb Counties approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
(4) The School System's amounts expended in prior years related to the above projects.
(5) The SPLOST III Amount Expended in Prior Years (4) balances have been adjusted for reclassification of Springdale and Morningside expenditures from Fulton to Dekalb.

67

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHEDULE OF STATE REVENUE
FISCAL YEAR ENDED JUNE 30, 2011

AGENCY/FUNDING
GRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities - All Categories Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Austerity Reduction Charter Commission Local Other State Programs Apprentice Charter Schools- Direct Dual Enrollment Extended Day Tch Health Insurance CTAE M.E. Support Math Science Supplement Preschool Handicapped Program Residential Treatment Centers Grant Teacher's Retirement Vocational Supervisors Vocational Ind Cert Virtual School State Grants Adult Literacy Project
Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GENERAL FUND

GOVERNMENTAL FUND TYPES

CAPITAL

OTHER NONMAJOR

PROJECTS

GOVERNMENTAL

FUND

FUNDS

TOTAL

$

- $

- $

2,599,029 $

2,599,029

12,201,603 1,597,930
26,637,172 4,456,186
12,094,436 3,238,892 528,545
17,404,968 15,858,900
3,547,406 13,594,873
4,531,238 1,347,498 1,386,721 1,572,868 3,515,002 1,082,845
618,445
2,739,960 8,243,068 7,868,577

3,180,816 693,120
-21,288,539 -2,329,444

38,959 626,447
23,188 120,689 623,968
3,614 450,832 438,877 328,771 173,890
58,538 23,910
1,075 -

-

$

127,235,844 $

-
-
-
-
-
1,767,686 1,767,686 $

-
-
-
-
431,038
3,030,067 $

12,201,603 1,597,930
26,637,172 4,456,186
12,094,436 3,238,892 528,545
17,404,968 15,858,900
3,547,406 13,594,873
4,531,238 1,347,498 1,386,721 1,572,868 3,515,002 1,082,845
618,445
2,739,960 8,243,068 7,868,577
3,180,816 693,120
(21,288,539) (2,329,444)
38,959 626,447
23,188 120,689 623,968
3,614 450,832 438,877 328,771 173,890
58,538 23,910
1,075 431,038
1,767,686 132,033,597

68

Statistical Section (Unaudited)

Atlanta Independent School System
Introduction to the Statistical Section (Unaudited)

This part of Atlanta Independent School Systems comprehensive annual financial report presents detailed information as a context for understanding this fiscal year's financial statements, note disclosures, and supplementary information. This information is unaudited.

Contents

Schedule

Financial Trends

1 - 6

These tables contain trend information that may assist the reader in assessing the School

System's current financial performance by placing it in a historical perspective.

Operating Information These tables contain service indicators that can inform ones' understanding how the information in the School System's financial statements relates to the services the School System provides and the activities it performs.

7 - 13

Demographic and Economic Information These tables present demographic and economic information intended (1) to assist users in understanding the socioeconomic environment within which the School System operates and (2) to provide information that facilitates comparisons of financial statement information over time.

14 - 22

Data Source: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial report for the applicable fiscal year.

ATLANTA INDEPENDENT SCHOOL SYSTEM NET ASSETS BY COMPONENT LAST TEN FISCAL YEARS Schedule 1

Fiscal Year Ended June 30,
Governmental Activities Invested in Capital Assets, Net of Related Debt Restricted Unrestricted
Total Governmental Activities Net Assets

2002
481,975,764 2,482,792
249,505,942 733,964,498

2003

2004

2005

2006

629,768,301 -
182,053,270 811,821,571

733,997,697 -
95,404,253 829,401,950

803,563,172 3,988,606
115,840,477 923,392,255

831,829,656 26,478,370
125,881,509 984,189,535

2007
893,683,701 106,980,587 157,963,991 1,158,628,279

2008

2009

2010

854,305,957 182,517,605 191,270,394 1,228,093,956

959,621,519 152,371,189 168,743,024 1,280,735,732

1,056,744,474 111,943,417 128,194,970
1,296,882,861

2011
1,104,601,221 112,855,070 147,834,977
1,365,291,268

Business-Type Activities Invested in Capital Assets, Net of Related Debt Unrestricted
Total Business-Type Activities Net Assets

2,720,262 (12,995,516) (10,275,254)

2,887,616 (18,572,353) (15,684,737)

3,897,068 (22,325,064) (18,427,996)

5,055,963 (25,805,372) (20,749,409)

5,776,388 (26,121,644) (20,345,256)

8,504,052 (9,964,379) (1,460,327)

484,935 484,935

1,972,799 1,972,799

2,038,487 2,038,487

2,183,644 2,183,644

Primary Government Activities Invested in Capital Assets, Net of Related Debt Restricted Unrestricted
Total Primary Government Activities Net Assets

484,696,026 2,482,792
236,510,426 723,689,244

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011.

632,655,917 -
163,480,917 796,136,834

737,894,765 -
73,079,189 810,973,954

808,619,135 3,988,606 90,035,105
902,642,846

837,606,044 26,478,370 99,759,865
963,844,279

902,187,753 106,980,587 147,999,612 1,157,167,952

854,305,957 182,517,605 191,755,329 1,228,578,891

959,621,519 152,371,189 170,715,823 1,282,708,531

1,056,744,474 111,943,417 130,233,457
1,298,921,348

1,104,601,221 112,855,070 150,018,621
1,367,474,912

69

Fiscal Year Ended June 30, Expenses Governmental Activities
Instruction Pupil Services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Community services Other support services Nutrition Interest and fiscal charges Bond issuance cost Depreciation Total Governmental Activities Expenses
Business-Type Activities Food services
Total Business-Type Activities Expenses
Total Primary Government Activities Expenses
Program Revenues Governmental Activities
Charges for Services Instruction School administration Maintenance and operation of facilities Other support services Nutrition
Operating Grants and Contributions Instruction Pupil services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Community Services Other support services Nutrition
Capital Grants and Contributions Instruction Maintenance and operation of facilities Student transportation
Total Governmental Activities Program Revenues
Business-Type Activities Charges for Services Food Services Operating Grants and Contributions Food Services
Total Business-Type Activities Program Revenues Total Primary Government Activities Program Revenues

ATLANTA INDEPENDENT SCHOOL SYSTEM CHANGE IN NET ASSETS LAST TEN FISCAL YEARS Schedule 2

2002

2003

2004

2005

2006

369,380,523 22,627,253 28,097,268 12,360,619 10,924,016 30,642,476
8,337,982 61,198,598 17,000,163 25,991,753
3,214,167 681,496 977,215 -
237,108 591,670,637

404,300,173 21,649,868 23,447,177 7,615,931 13,622,969 25,948,073
6,452,828 58,896,420 16,678,855 23,404,234
6,116,012 -
249,094 608,381,634

424,091,453 21,890,649 21,135,004 6,746,870 21,539,082 24,230,800 5,482,136 61,354,665 15,189,582 29,129,882
690,836
204,969 631,685,928

435,352,357 24,009,140 20,011,373 7,087,158 18,908,200 23,247,406 6,685,755 48,321,284 14,678,214 26,204,018 423,301 538,613
625,466,819

393,121,077 29,201,941 31,910,382 11,326,263 22,244,328 36,313,409 12,973,297 60,098,358 21,658,991 26,764,937
837,701
1,855,674
648,306,358

25,739,005 25,739,005
617,409,642

27,325,463 27,325,463
635,707,097

26,552,371 26,552,371
658,238,299

25,772,181 25,772,181
651,239,000

21,711,551 21,711,551
670,017,909

2007

2008

2009

2010

2011

384,275,604 20,424,786 27,779,791 8,112,792 22,613,568 25,103,296 14,960,540 57,871,414 19,865,342 25,086,693
(13,721) 2,267,033
1,031,588
609,378,726

442,325,531 36,915,697 42,180,829 11,637,527 18,659,059 34,558,215 11,483,553 91,600,184 42,709,556 32,899,945
9,330,309
1,788,213
776,088,617

427,131,947 36,130,943 38,598,585 9,220,728 15,698,105 26,425,185 24,150,131 88,484,674 53,662,233 38,798,862
3,707,098
2,295,941
764,304,432

438,036,127 37,303,898 40,427,290 8,394,083 14,110,681 28,239,428 15,327,591 90,747,017 39,593,169 48,566,805
3,350,291
2,022,585
766,118,965

377,491,180 39,024,421 50,496,694 9,616,559 14,514,905 33,287,126 17,889,836 96,333,469 28,898,209 36,729,914
4,382,181
15,657 2,258,183
-
710,938,335

19,204,656 19,204,656
628,583,382

30,519,130 30,519,130
806,607,747

21,752,821 21,752,821
786,057,253

23,222,029 23,222,029
789,340,994

23,800,532 23,800,532
734,738,867

-
-
213,249,865 4,209,345
17,993,177 1,723,159 2,084,660 448,209 56,963 806,645 735,268 2,762,298 564,776 -
8,592,231 -
253,226,596

-
-
211,745,193 4,428,193
13,528,687 121,737
2,648,088 2,097,074
222,320 1,046,705 108,992 3,597,754
-
2,124,937 -
241,669,680

-
-
187,402,434 6,558,788 17,556,463 30,954 3,756,784 381,845 58,967 379,673 754,227 2,524,240 -
2,717,420 -
222,121,795

-
-
170,977,158 8,414,003
16,447,379 182,646
4,151,612 238,704 366,225 27,511
1,409,015 1,105,539
1,444,714
-
2,230,799 -
206,995,305

2,097,124
-
-
176,215,716 7,400,136
11,712,590 1,491,330 4,516,383 355,600 1,115,379 261,388 1,960,211 104,874 677,385 -
8,927 -
1,640,644 209,611,500

1,004,517 -
1,067,404
-
156,075,020 14,951,701 16,073,230 2,424,655 3,336,077 6,065,020 1,102,416 8,740,838 5,206,251
984,451 65,551
7,365,780 -
1,191,630
225,654,541

114,350 -
3,749,416
168,958,774 18,133,132 16,110,597 3,745,884 3,104,288 3,498,951 9,106,449 9,262,487 5,337,639
660,429 226,806 1,307,102
-
2,207,605
653,047 246,176,956

140,047 -
1,246,236
767,347
108,327,712 20,282,835 20,193,588 2,899,356 5,788,541 5,874,998 3,933,403 17,293,612 8,537,786 7,680,398 2,811,038
12,691
205,789,588

90,084 -
995,042
754,773
110,873,809 14,470,057 27,647,132 1,404,768 3,705,087 6,841,227 2,925,304 15,521,798 8,286,759 9,984,164 2,116,177
-
205,616,181

31,492 -
783,989 670,918
-
111,426,958 18,641,247 33,328,056 2,000,787 5,053,926 7,958,215 4,077,543 20,416,518 6,735,023 9,260,421 2,845,306 14,696
25,367,686 -
248,612,781

1,886,863
20,013,045 21,899,908 275,126,504

2,388,324
19,527,656 21,915,980 263,585,660

1,966,090
20,250,537 22,216,627 244,338,422

3,566,337
18,088,139 21,654,476 228,649,781

2,580,828
18,265,689 20,846,517 230,458,017

2,534,746
19,068,852 21,603,598 247,258,139

2,187,375
20,877,018 23,064,393 269,241,349

2,291,777
20,948,908 23,240,685 229,030,273

1,836,912
21,442,603 23,279,515 228,895,696

1,695,061
22,233,560 23,928,621 272,541,402

70

ATLANTA INDEPENDENT SCHOOL SYSTEM CHANGE IN NET ASSETS LAST TEN FISCAL YEARS Schedule 2

Fiscal Year Ended June 30, Net (Expense)/Revenue Governmental Activities
Instruction Pupil Services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Community Services Other support services Nutrition Interest and fiscal charges Bond issuance cost Depreciation Total Governmental Activities Net (Expenses)/Revenues
Business-Type Activities Food Services
Total Business-Type Activities Net (Expenses)/Revenues
Total Primary Government Activities Net Expense

2002

2003

2004

(147,538,427) (18,417,908) (10,104,091) (10,637,460)
(8,839,356) (30,194,267)
(8,337,982) (61,141,635) (16,193,518) (25,256,485)
(116,720) (451,869)
(977,215) -
(237,108) (338,444,041)

(190,430,043) (17,221,675) (9,918,490) (7,494,194) (10,974,881) (23,850,999) (6,452,828) (58,674,100) (15,632,150) (23,295,242) (2,518,258) (249,094)
(366,711,954)

(233,971,599) (15,331,861) (3,578,541) (6,715,916) (17,782,298) (23,848,955) (5,482,136) (61,295,698) (14,809,909) (28,375,655) 2,524,240 (690,836) (204,969)
(409,564,133)

(3,839,097) (3,839,097)
(342,283,138)

(5,409,483) (5,409,483)
(372,121,437)

(4,335,744) (4,335,744)
(413,899,877)

General Revenues and Other Charges in Net Assets Governmental Activities
Taxes
Property Taxes levied for general purposes Property Taxes levied for debt Services Special Local Option Sales Tax & Other Taxes Grants and Contributions not restricted to specific programs Investment Earnings Other Gain on sale of capital assets Transfers Extra ordinary items Total Governmental Activities

325,547,139 -
93,920,742 -
16,910,046 6,789,405
443,167,332

353,451,241 -
79,256,916 -
11,616,090 5,935,088
450,259,335

373,487,358 -
85,604,946 -
1,995,307 3,786,290
(1,592,485)
463,281,416

Business-Type Activities Investment Earnings Transfers Other
Total Business-Type Activities Total Primary Government Activities

443,167,332

450,259,335

1,592,485
1,592,485 464,873,901

Change in Net Assets Governmental Activities Business-Type Activities
Total Primary Government

104,723,291 (3,839,097)
100,884,194

83,547,381 (5,409,483) 78,137,898

53,717,283 (2,743,259) 50,974,024

Source: Notes:

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011
Restatement in year 2008 due to prior period adjustments for change in accounting principle and estimates. In fiscal year 2008, change in pension expense allocation. In fiscal year 2007, change in allocation of capital assets. Changes in Instruction support 2007 to 2008 due to proper allocation of salary and benefits in 2008. GASB 34 implemented in 2002. In fiscal year 2010, sales tax decreased due to sales tax refund/repayment. Decrease in Sales Tax revenue in fiscal year 2011 due in part to the economic downturn.

2005

2006

(262,144,400) (15,595,137) (3,563,994) (6,904,512) (14,756,588) (23,008,702) (6,319,530) (48,293,773) (13,269,199) (25,098,479) 1,021,413 (538,613) -
(418,471,514)

(216,896,434) (21,801,805) (20,197,792) (9,834,933) (17,727,945) (33,860,685) (11,857,918) (59,836,970) (18,058,136) (26,660,063) (106,503) (1,855,674) -
(438,694,858)

(4,117,705) (4,117,705)
(422,589,219)

(865,034) (865,034)
(439,559,892)

377,215,701 -
91,202,366 -
4,658,043 5,900,535
(1,796,292)
477,180,353

361,839,014 -
117,933,347 9,411,373 7,319,327 6,316,574 2,505,987 (1,036,966) -
504,288,656

1,796,292
1,796,292 478,976,645

59,711 1,036,966
1,096,677 505,385,333

58,708,839 (2,321,413) 56,387,426

65,593,798 231,643
65,825,441

2007

2008

(227,196,067) (5,473,085)
(11,706,561) (5,688,137) (19,277,491) (19,038,276) (13,858,124) (48,063,172) (13,467,461) (24,102,242)
79,272 5,098,747
(1,031,588)
(383,724,185)

(273,252,407) (18,782,565) (26,070,232) (7,891,643) (15,554,771) (31,059,264) (2,377,104) (80,130,092) (36,718,870) (32,239,516) (8,023,207) 226,806 3,749,416 (1,788,213) -
(529,911,661)

2,398,942 2,398,942
(381,325,243)

(7,454,737) (7,454,737)
(537,366,398)

2009

2010

(318,664,187) (15,848,107) (18,404,997) (6,321,372) (9,909,564) (20,550,187) (20,216,730) (69,944,826) (45,124,446) (31,118,464) 2,811,038 (3,707,098) 780,038 (2,295,941) -
(558,514,843)

(327,072,234) (22,833,841) (12,780,158) (6,989,315) (10,405,594) (21,398,201) (12,402,287) (74,230,177) (31,306,410) (38,582,641) 2,116,177 (3,350,291) 754,773 (2,022,585) -
(560,502,784)

1,487,864 1,487,864
(557,026,979)

57,486 57,486
(560,445,298)

2011
(240,665,044) (20,383,174) (17,168,638) (7,615,772) (9,460,979) (25,328,911) (13,812,293) (75,132,962) (22,163,186) (27,469,493) (865,957) (961) (2,258,183) -
(462,325,554)
128,089 128,089
(462,197,465)

436,902,846 1,036,250
121,568,835 -
13,315,151 15,129,339
3,129,377 (16,416,074) (1,981,811) 572,683,913
(9,535) 16,416,074
79,445 16,485,984 589,169,897
188,959,728 18,884,926 207,844,654

470,036,120 1,153,847
115,735,907 1,347,241
13,648,335 6,855,522
(9,400,000)
599,376,972
9,400,000
9,400,000 608,776,972
69,465,311 1,945,263 71,410,574

479,629,504 1,262,460
108,957,224 4,328,538 6,419,960
15,296,550 528,432 -
616,422,668
616,422,668
57,907,825 1,487,864 59,395,689

498,921,379 1,271,739 63,438,076 1,306,947 230,484
10,583,834 897,453 -
576,649,912
8,202 -
8,202 576,658,114
16,147,128 65,688
16,212,816

469,310,346 1,174,306 52,901,075 1,310,441 124,833 5,298,494 614,466 -
530,733,961
17,068 -
17,068 530,751,029
68,408,407 145,157
68,553,564

71

ATLANTA INDEPENDENT SCHOOL SYSTEM GOVERNMENTAL FUND BALANCES LAST TEN FISCAL YEARS Schedule 3

Fiscal Year Ended June 30,
Pre-GASB 54 General Fund
Reserved Unreserved Total General Fund
All Other Governmental Funds Reserved Unreserved, reported in:
Capital Project Funds Special Revenue Funds Total All Other Governmental Funds
Total

2002

2003

2004

2005

2006

2007

2008

2009

2010

16,933,754 38,418,253 55,352,007

11,938,879 62,084,468 74,023,347

11,159,630 37,292,448 48,452,078

7,325,684 68,098,575 75,424,259

13,692,102 73,372,473 87,064,575

21,785,030 91,809,975 113,595,005

20,198,038 131,566,427 151,764,465

72,359,684 85,541,272 157,900,956

33,799,205 75,928,012 109,727,217

156,758,830 80,968,852

70,077

70,078 22,216,154 103,139,827 168,623,662 149,939,551 136,951,993

12,000,000 22,558,744 191,317,574

12,000,000 18,027,458 110,996,310

32,778,625 17,571,631 50,420,333

30,060,165 11,868,263 41,998,506

39,512,697 12,177,524 73,906,375

34,183,429 12,652,472 149,975,728

23,702,646 14,193,822 206,520,130

11,995,289 161,934,840

11,767,769 148,719,762

246,669,581 185,019,657 98,872,411 117,422,765 160,970,950 263,570,733 358,284,595 319,835,796 258,446,979

GASB 54 General Fund
Nonspendable Restricted Committed Assigned Unassigned Total General Fund

2011
456,347 1,104,717 16,995,134 16,000,000 46,711,357 81,267,555

All Other Governmental Funds Restricted Assigned
Total All Other Governmental Funds

111,750,353 31,109,255
142,859,608

Total

224,127,163

Source: Note:

Atlanta Independent School System Financial Report for previous years and fiscal year ended June 30, 2011. GASB Statement number 54 established a hierarchy of fund balance classifications based primarily on the extent to which governments are bound by constraints placed on resources. The effective date for implementation of GASB 54 was for periods beginning after June 15, 2010. Presentation for years 2002-2010 is pre GASB 54. Fiscal Year 2011 is when the standard was implemented.

72

Fiscal Year Ended June 30, Revenues
Local Taxes Sales taxes income State revenues Federal revenues Investment income Facility rental fees Tuition charges Charges for services Other
Total Revenues
Expenditures Current Expenditures Instruction Support Services: Pupil Services Improvement of instructional services Educational media General administration School administration Business administration Maintenance and operation of facilities Student transportation Central Support Other support services Nutrition Other Other Operations of Non-Instructional Services Capital Outlays Debt Service: Principal Interest and fiscal charges Bond issuance cost Advance Refunding Escrow
Total Expenditures

2002
313,659,063 93,920,742
190,093,723 44,949,186 16,910,046 472,438 176,055 24,324,599
684,505,852

ATLANTA INDEPENDENT SCHOOL SYSTEM CHANGES IN GOVERNMENTAL FUND BALANCES
LAST TEN FISCAL YEARS Schedule 4

2003
346,768,390 79,256,916 177,702,841 57,560,015 11,616,090
436,094 30,800 -
11,875,018
685,246,164

2004
365,523,133 85,604,946
152,497,189 63,594,376 1,995,307 709,320 45,748 9,545,822
679,515,841

2005
370,256,829 91,202,366
137,310,665 65,118,135 4,658,043 876,965 11,707 9,578,369
679,013,079

2006
369,492,043 115,953,787 141,640,201
66,535,863 7,319,327
949,298 243,698 904,128 15,066,259
718,104,604

2007
415,687,665 122,980,958 151,924,389
71,658,231 13,315,151
2,071,921 15,884,882
793,523,197

2008
471,313,094 106,562,802 163,747,188
71,651,548 13,648,335
1,604,301 114,350
3,749,416 13,512,915
845,903,950

2009

2010

507,895,487 103,765,261 129,106,908
70,336,278 6,419,960 1,246,236
140,047 767,348 23,817,861
843,495,386

493,825,791 95,443,229
110,942,787 82,463,268 410,218 995,042 90,084 754,773 22,081,274
807,006,466

2011
445,986,671 57,678,243
132,033,597 84,046,858 282,686 783,989 31,492 670,918 13,897,009
735,411,463

353,337,682
22,590,159 49,379,326 12,351,085 10,683,333 30,642,476
8,337,982 61,193,777 16,088,475 25,991,753
3,214,167 -
681,496 -
78,153,025
10,225,534 977,215 -
37,991,609
721,839,094

387,299,503
21,612,774 32,991,181
7,601,608 13,026,341 35,456,730
6,452,828 62,044,973 14,295,463 26,264,962
8,582,226 -
141,088,759
8,417,826 -
765,135,174

405,869,137
21,853,555 21,181,874
6,738,907 13,504,910 24,230,800
5,482,136 61,539,367 13,022,959 30,515,657
526,684 -
169,069,406
6,066,632 690,836 -
780,292,860

395,383,620
23,972,046 20,071,788 7,080,214 9,832,227 23,525,692 6,795,841 48,442,054 12,815,478 26,393,782
220,262 -
107,635,321
4,386,236 538,613 -
687,093,174

358,003,139
28,296,328 31,811,061 11,128,439 15,066,526 35,579,029 12,959,536 59,941,395 19,331,040 26,567,407
796,364 48,270 78,371,573
2,700,668 403,266 -
681,004,041

405,189,908
23,654,225 31,501,828 9,119,001 15,833,120 28,207,534 15,632,317 60,202,421 17,344,114 28,680,154
2,386,576 56,735,237
3,840,761 -
698,327,196

373,703,960
33,795,599 38,823,821 10,507,784 17,134,640 32,147,765 23,625,597 84,456,521 37,822,559 29,586,277
983,284 49,014
7,974,781 67,911,787
2,387,590 1,788,213
-
762,699,192

394,246,196 403,804,829

35,859,316 38,318,666 9,081,715 15,572,414 26,227,397 17,182,008 89,297,173 51,723,141 38,517,074 3,676,062
12,500 -
151,389,516

36,234,070 39,447,284 8,145,710 13,763,790 27,509,235 15,934,176 90,301,296 36,256,980 47,399,446
3,274,650 139,770,104

6,800,416 2,295,941
-
880,199,535

2,022,585 5,755,506
-
869,619,661

373,889,853
38,474,947 49,820,431
9,446,870 14,320,518 32,841,337 16,837,414 96,145,841 26,016,620 36,238,019
4,323,494 15,657 -
170,374,153
5,934,366 1,803,937 1,466,547
-
877,950,004

73

ATLANTA INDEPENDENT SCHOOL SYSTEM CHANGES IN GOVERNMENTAL FUND BALANCES
LAST TEN FISCAL YEARS Schedule 4

Fiscal Year Ended June 30,
Excess / (Deficiency) of Revenues over (under) Expenditures
Other Financing Sources (Uses) Proceeds from Bonds Premium on bonds Proceeds from Capital Leases Proceeds from sale of capital assets Proceeds from Notes Transfers in Transfers out
Total Other Financing Sources/(Uses)
Extraordinary Items
Net Change in Fund Balances
Fund Balance at Beginning of Fiscal Year
Prior Period Corrections Change in accounting practice FUND BALANCE AT END OF FISCAL YEAR

2002 (37,333,242)

2003 (79,889,010)

2004 (100,777,019)

2005 (8,080,095)

2006 37,100,563

2007 95,196,001

2008 83,204,756

2009

2010

(36,704,149) (62,613,195)

2011 (142,538,541)

4,112,800 42,589,027 (42,589,027) 4,112,800
-
(33,220,442)
279,890,024
246,669,582

2,129,553 -
3,814,304 -
2,482,792 (2,482,792) 5,943,857
-
(73,945,153)
258,964,810
185,019,657

13,270,248 -
2,952,010 -
18,158,072 (19,750,557) 14,629,773
-
(86,147,246)
185,019,657
98,872,411

11,875,815 -
18,128,500 (19,924,792) 10,079,523
-
1,999,428
115,423,338
117,422,766

3,907,884 -
3,131,798 40,000
19,874,172 (19,874,172)
7,079,682
-
44,180,245
116,292,413
498,296 -
160,970,954

3,921,678 -
2,638,066 3,169,238 10,115,000 27,635,695 (44,051,769) 3,427,908
(1,981,811)
96,642,098
166,928,634
263,570,733

20,000,000 909,104 25,307,215 (34,707,215)
11,509,104

932,980 34,055,410 (34,055,410)
932,980

1,224,378 44,664,147 (44,664,147)
1,224,378

-

-

-

94,713,862 (35,771,169) (61,388,817)

263,570,733 355,606,965 323,846,887

358,284,596

319,835,796

(4,011,091) 258,446,979

104,415,000 3,097,709 706,016 -
10,974,126 (10,974,126) 108,218,725
-
(34,319,816)
258,446,979
224,127,163

FUND BALANCE AT END OF FISCAL YEAR Debt service as a percentage of noncapital expenditures

246,669,582 6.92%

185,019,657 1.11%

98,872,411 0.87%

117,422,766 0.72%

160,970,954 0.46%

263,570,733 0.60%

358,284,596 319,835,796 258,446,979

0.60%

1.26%

1.08%

224,127,163 1.30%

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011.

Notes:

Extraordinary item in 2007 closing of two charter schools. Changes in Instruction support 2007 to 2008 due to proper allocation of salary and benefits in 2008. In fiscal year 2008 change in pension expenditure. Large fluctuations in expenditures due to reclasses within functions in FY2009-2011 . Decrease in Sales tax income between FY10 and FY11 was due in part to the adjustment for overpayement of Splost proceeds.

74

ATLANTA INDEPENDENT SCHOOL SYSTEM GENERAL FUND EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS Schedule 5

Fiscal Year

Instruction 1

Pupil Services

School and Admin. Services

Business Services 2

Capital Outlay

Other 3

Total

total current expenditures % of change from prior year

total capital outlay total expenditures

% of change from % of change from

prior year

prior year

2002

315,472,276 18,373,267

62,467,052

71,978,407

-

41,681,449

509,972,451

3.15%

0.00%

3.60%

2003

343,085,735 17,131,932

59,678,758

69,558,556

-

27,740,683

517,195,664

4.52%

0.00%

1.42%

2004

359,444,397 15,259,936

52,257,050

68,966,619

-

37,341,209

533,269,211

1.32%

0.00%

3.11%

2005

360,922,790 15,635,773

23,265,642

65,285,140

3,029,090

34,293,523

502,431,958

-6.21%

100.00%

-5.78%

2006

328,733,992 20,886,301

42,964,459

85,768,267

-

31,105,339

509,458,358

2.85%

0.00%

1.40%

2007

371,030,700 10,491,218

34,463,418

87,064,138

2,638,066

31,071,989

536,759,529

5.16%

100.00%

5.36%

2008

346,276,544 16,742,092

41,041,883

140,274,918

8,257,558

39,184,963

591,777,958

8.21%

68.05%

10.25%

2009

385,984,855 20,045,172

36,636,052

133,410,584

-

42,590,714

618,667,377

5.83%

0.00%

4.54%

2010 2011

4 397,022,707 4 370,061,246

19,336,072 24,014,862

36,787,333 42,918,150

136,817,366 133,081,824

-

40,770,273

630,733,751

-

39,937,929

610,014,011

2.41% -3.37%

0.00% 0.00%

1.95% -3.29%

Source:

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011.

Notes:

1 Instruction includes Improvement of Instructional Services and Educational Media. 2 Business Services includes Business Administration , Maintenance and Facilites and Student Transportation. 3 Other includes Central Support, Community Services, Other Operations, Principal and Interest. 4 Expenditures for Charter Schools were reclassed to Instruction in fiscal year 2010 and 2011.

75

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source:

ATLANTA INDEPENDENT SCHOOL SYSTEM GENERAL FUND REVENUES BY SOURCE LAST TEN FISCAL YEARS Schedule 6

Taxes

State Grants

Federal Grants

313,659,063

175,553,782

1,069,298

346,768,390

170,033,573

427,849

362,726,900

141,848,193

1,153,791

370,256,829

124,113,881

1,326,039

384,221,179

133,943,879

3,870,753

430,844,808

145,105,716

1,112,951

480,152,929

154,892,058

1,347,241

514,075,346

122,514,004

4,328,538

493,825,791

107,237,545

15,452,007

445,986,671

127,235,844

10,747,543

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011.

Other 20,302,508 14,822,888
8,086,373 13,084,964 15,437,607 19,069,158 17,353,301 16,548,410
9,262,323 7,841,900

Total 510,584,651 532,052,700 513,815,257 508,781,713 537,473,418 596,132,633 653,745,529 657,466,298 625,777,666 591,811,958

Local 61% 65% 71% 73% 71% 72% 73% 78% 79% 75%

% of total

State

Federal

34.38%

0.21%

31.96%

0.08%

27.61%

0.22%

24.39%

0.26%

24.92%

0.72%

24.34%

0.19%

23.69%

0.21%

18.63%

0.66%

17.14%

2.47%

21.50%

1.82%

Other 3.98% 2.79% 1.57% 2.57% 2.87% 3.20% 2.65% 2.52% 1.48% 1.33%

76

ATLANTA INDEPENDENT SCHOOL SYSTEM ASSESSED AND ESTIMATED ACTUAL VALUE OF
TAXABLE PROPERTY LAST TEN FISCAL YEARS
Schedule 7

Fiscal Year Ended 4

Residential Property

Commercial Property

Industrial Property

Other Property 1

Less Tax-Exempt
Property 2

Total Taxable Assessed Value 3

December 31, 2002

8,567,121,679

6,901,913,667

366,881,480

1,662,085,635

188,994,248

17,309,008,213

December 31, 2003

9,578,478,978

7,104,858,403

323,814,720

1,590,030,109

160,151,146

18,437,031,064

December 31, 2004

10,282,698,452

7,433,699,007

308,725,135

1,626,457,946

1,732,722,383

17,918,858,157

December 31, 2005

10,842,205,309

7,255,025,020

618,322,584

1,590,005,363

186,756,118

20,118,802,158

June 30, 2006

11,954,278,920

8,069,483,015

699,409,813

1,621,488,855

1,720,017,791

20,624,642,812

June 30, 2007

13,202,618,136

9,744,120,546

776,908,905

1,595,456,173

1,887,341,520

23,431,762,240

June 30, 2008

13,980,076,949

13,067,992,615

1,031,326,231

1,615,241,347

2,093,949,974

27,600,687,168

June 30, 2009

13,872,372,979

11,249,746,299

890,877,231

1,720,999,874

1,910,282,501

25,823,713,882

June 30, 2010

12,749,326,810

11,746,535,282

806,421,455

1,542,422,321

2,831,876,995

24,012,828,873

June 30, 2011

11,506,413,986

11,148,297,009

758,400,890

1,528,992,043

2,880,803,214

22,061,300,714

Source:

Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2011.

Notes:

1 Other Property consist of Historical, Agricultural, Conservation, Utility, Motor Vehicle, Heavy Equipment, Timber, Motor Homes, etc. 2 Tax Exempt Property consist of Basic Homestead, Elderly, Disabled Veteran, Freeport, etc. 3 Assessed values are established by the Fulton & Dekalb Counties Board of Tax Assessors on January 1 of each year at 40% of the market value
as required by State Law. 4 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006.

Total Direct Tax Rate 32.64% 32.08% 31.00% 30.09% 32.13% 31.61% 30.49% 30.49% 33.63% 33.63%

77

ATLANTA INDEPENDENT SCHOOL SYSTEM PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
(Per $1,000 Assessed Value) LAST TEN FISCAL YEARS Schedule 8

Fiscal Year Ended 4

City Direct Rates

General Levy

School Levy

Parks Levy

City Bond Levy

School Bond Levy

Total Direct
Tax Rate 2

Atlanta/ Dekalb County Special
Tax District

Downtown Improvement
District Special
Tax District 1

Overlapping Rates

County Levy 3

Fulton County, Georgia

County

Georgia

Bond

State

Levy

Levy

December 31, 2002

9.02

21.67

0.50

1.34

0.11

32.64

1.30

2.50

12.53 (3)

0.28

0.25

December 31, 2003

8.71

21.46

0.50

1.30

0.11

32.08

1.14

3.60

12.05 (3)

0.27

0.25

December 31, 2004

8.25

20.87

0.50

1.27

0.11

31.00

1.05

4.20

11.59 (3)

0.07

0.25

December 31, 2005

7.64

20.42

0.50

1.43

0.10

30.09

2.05

5.00

11.58 (3)

0.06

0.25

June 30, 2006

7.53

22.64

0.50

1.41

0.05

32.13

0.99

5.00

11.40 (3)

0.06

0.25

June 30, 2007

7.09

22.64

0.50

1.33

0.05

31.61

0.96

5.00

10.28 (3)

0.06

0.25

June 30, 2008

7.12

21.64

0.50

1.18

0.05

30.49

0.83

5.00

10.28 (3)

0.60

0.25

June 30, 2009

7.12

21.64

0.50

1.18

0.05

30.49

0.83

5.00

10.28 (3)

0.00

0.25

June 30, 2010

10.24

21.64

0.50

1.20

0.05

33.63

1.00

5.00

10.28 (3)

0.00

0.25

June 30, 2011

10.24

21.64

0.50

1.20

0.05

33.63

0.88

5.00

10.28 (3)

0.00

0.25

Source:

Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2011.

Total 13.06 12.57 11.91 11.89 11.72 10.58 10.59 10.53 10.53 10.53

Notes:

1 Tax imposed by property owners in the district pursuant to state authorization. 2 Reduced by debt service payment of $3,052,000 by the Atlanta Board of Education using its existing resources. 3 Hospital levy included in County levy. 4 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006.

78

Tax Payer
Development Authority of Fulton 2 Georgia Power Company Bell South Coca-Cola Company AT & T DELTA Airlines BF ATL, LLC Post Apartment Homes Sun Trust Plaza Association IEP PEEACHTREE, LLC
Total

ATLANTA INDEPENDENT SCHOOL SYSTEM PRINCIPAL PROPERTY TAXPAYERS
JUNE 30, 2010 AND NINE YEARS AGO 1 Schedule 9

2010

Type of Business
Government Utility Service Communications Service Marketing and Manufacturing Communications Service Commercial Real Estate Commercial Real Estate Residential Real Estate Commercial Real Estate Commercial Real Estate

Taxable Assessed Value 1

$

864,964,916

355,267,690

288,336,703

236,494,269

233,061,383

144,071,482

135,349,360

129,959,779

103,532,500

93,279,610

$ 2,584,317,692

Rank
1 2 3 4 5 6 7 8 9 10

Percentage of Total City Taxable Assessed Value
4.10% 1.68% 1.37% 1.13% 1.10% 0.68% 0.64% 0.62% 0.49% 0.44%
12.25%

Tax Payer

2001 Type of Business

Taxable Assessed Value

Rank

Percentage of Total City Taxable Assessed Value

Bell South Coca-Cola Company Georgia Power Company Post Apartment Homes CSC Associates AT & T Georgia Pacific Company
One Ninety One Peachtree Association Overseas Partners Sumito Life Realty, Inc.

Communication Service Marketing and Manufacturing Utility Service Residential Real Estate Commercial Real Estate Communications Service Pulp and Paper Manufacturing
Commercial Real Estate Commercial Real Estate Commercial Real Estate

$

281,517,922

1

148,094,220

2

128,918,917

3

107,210,390

4

86,918,820

5

86,760,614

6

84,593,910

7

81,836,440

8

76,491,240

9

68,531,100

10

1.79% 0.94% 0.82% 0.68% 0.55% 0.55% 0.54%
0.52% 0.49% 0.44%

Total

$ 1,150,873,573

7.32%

Sources: Notes:

2010 - Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011. 2001 - Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2007.
1. Information for FY2011 was not available. 2. Development Authority of Fulton does not pay taxes but does temporarily hold property for others who pay taxes.

79

ATLANTA INDEPENDENT SCHOOL SYSTEM PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS Schedule 10

Fiscal Year Ended 3

Taxes Levies
for the Fiscal Year

Collected within the Fiscal

Year of the Levy

Percentage of

Amount 1

Levy

Collections in
Subsequent Years

Total Collections To Date

Percentage of

Amount

Levy

December 31, 2002

173,920,120

158,225,729

90.98%

15,105,557

173,331,286

99.66%

December 31, 2003

178,909,014

166,815,658

93.24%

11,462,115 2

178,277,773

99.65%

December 31, 2004

180,733,587

170,502,285

94.34%

9,752,408 2

180,254,693

99.74%

December 31, 2005

178,703,068

160,301,279

89.70%

17,909,963 2

178,211,242

99.72%

June 30, 2006

6,750,195

6,750,195

100.00%

-

6,750,195

100.00%

June 30, 2007

179,606,933

164,976,460

91.85%

11,685,144 2

176,661,604

98.36%

June 30, 2008

182,020,745

173,030,142

95.06%

6,494,066

179,527,207

98.63%

June 30, 2009

196,377,854

190,475,498

96.02%

7,422,956

197,898,454

99.76%

June 30, 2010

264,371,198

257,062,077

97.24%

-

257,062,077

97.24%

Source:

June 30, 2011

240,585,957

234,894,781

97.63%

.

Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2011.

344,043

235,238,824

97.78%

Notes: 1 Does not include tax revenues retained by Fulton and DeKalb County for administrative expenditures, therefore the collection rate shown is slightly less than actual.
2 Adjusted to collection in subsequent year. 3 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006.

80

ATLANTA INDEPENDENT SCHOOL SYSTEM COMPARISON OF PROPERTY TAX MILLAGE RATES
AS OF JUNE 30, 2011 Schedule 11

Atlanta Public Schools Clayton County Schools Cobb County Schools DeKalb County Schools Douglas County Schools Fulton County Schools Gwinnett County Schools Rockdale County Schools

TOTAL RATE 21.69 20.00 18.90 22.90 24.10 17.50 20.55 21.00

MAINTENANCE AND
OPERATION 21.64 20.00 18.90 22.90 20.00 17.15 19.25 21.00

DEBT SERVICE
0.05 0.00 0.00 0.00 4.10 0.35 1.30 0.00

Sources: Note:

Atlanta Public School Board Docs , school approved budgets, county commisioners, and county online news.
All tax rates are per $1000 assessed valuation.

81

Tax Year
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sources:

Maintenance and
Operations

ATLANTA INDEPENDENT SCHOOL SYSTEM TAX MILLAGE RATES LAST TEN TAX YEARS Schedule 12

Sinking Bond Fund

Total Levy

21.67

0.11

21.784

Decrease of 0.276 mills

21.46

0.11

21.569

Decrease of 0.215 mills

20.42

0.10

20.524

Decrease of 1.05 mills

20.42

0.10

20.524

No change from 2004

22.64

0.054

22.694

Increase of 2.17 mills

22.64

0.054

22.694

No change from 2006

21.64

0.054

21.694

Decrease of 1.000 mills

21.64

0.054

21.694

No change from 2008

21.64

0.054

21.694

No change from 2009

21.64

0.054

21.694

No change from 2010

Atlanta Public Schools June 2010 Tax Levy Board Resolutions for tax year 2011 Georgia Department of Revenue for tax years 2002-2010

Comments

82

ATLANTA INDEPENDENT SCHOOL SYSTEM RATIOS OF TOTAL DEBT OUTSTANDING BY TYPE ( UNAUDITED)
GOVERNMENTAL ACTIVITIES FOR THE LAST TEN FISCAL YEARS
Schedule 13

Fiscal Year

Education Reform Intergovernmental

Ended June 30,

Success ( COPS)

Agreement

2002 (1) $

-

$

-

2003 (1)

-

-

2004 (1)

-

-

2005 (1)

-

-

2006

-

18,697,134

2007

10,115,000

22,112,675

2008

10,115,000

21,385,800

2009

9,565,000

20,488,750

2010

8,995,000

19,461,875

2011

115,912,709

18,439,000

Capital Leases $ 18,966,937 14,363,415 11,248,793 6,862,557 4,219,951 5,159,414 23,618,868 18,255,388 13,998,496 9,682,005

Total Debt (2) $ 18,966,937 14,363,415 11,248,793 6,862,557 22,917,085 37,387,089 55,119,668 48,309,138 42,455,371 144,033,714

Estimated Actual Value of Taxable
Property (3) 17,309,008,213 18,437,031,064 17,918,858,157 20,118,802,158 20,624,642,812 23,431,762,240 27,600,687,168 25,823,713,882 24,012,828,873 22,061,300,714

Ratio of Total Debt to Est. Actual Value
0.11% 0.08% 0.06% 0.03% 0.11% 0.16% 0.20% 0.19% 0.18% 0.65%

Personal Income (4) 149,831,000 153,070,000 162,297,000 173,159,000 184,186,000 184,186,000 196,683,000 198,580,000 206,462,000 203,137,000

Ratio of Total Debt to Personal
Income 12.66% 9.38% 6.93% 3.96% 12.44% 20.30% 28.02% 24.33% 20.56% 70.90%

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2011.

Notes:

1 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006. 2 See the schedule of Long Term Debt in the Notes for each year for more information on the debt. 3 See schedule 7 - Assessed and Estimated Actual Value of Taxable Property . 4 See schedule 15 - Demographics Statistics.

83

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHOOL BUILDINGS, ACREAGE AND CAPACITY
JUNE 30, 2011 Schedule 14

School Acreage, Square Footage, Planning Capacity, Area per Student, Effective Age

Elementary Schools

Acres

Sq.Ft.

Planning Capacity

SF per Student

Original Construction

Renovation

Actual Age Effective Age Effective Age (2010 basis) Basis (2010 basis)

1 Adamsville 2 Beecher Hills 3 Benteen 4 Bethune 5 Bolton Academy 6 Boyd 7 Brandon 8 Brandon Primary 9 Burgess-Peterson 10 Capitol View 11 Cascade 12 Centennial Place 13 Connally 14 Cleveland 15 Continental Colony 16 Cook 17 Deerwood Academy 18 Dobbs 19 Dunbar 20 East Lake 21 Fain 22 Fickett 23 Finch 24 Garden Hills 25 Gideons 26 Grove Park 27 Heritage Academy 28 Herndon 29 Hope 30 Humphries 31 Hutchinson 32 Jackson 33 Jackson Primary 34 Jones, M. A. 35 Kimberly 36 Lin, Mary 37 Miles 38 Morningside 39 Parkside 40 Perkerson 41 Peyton Forest 42 Rivers 43 Scott 44 Slater 45 Smith, Sarah 46 Smith Intermediate 47 Springdale Park

4.9 84,961

540

157 1970

2001

40

2001

9

9.5 43,791

378

116 1959

1999

51

1999

11

4.0 68,440

432

158 1957

2000

53

2000

10

4.5 70,151

594

118 1949

1999

61

1999

11

4.0 83,286

648

129 2003

7

2003

7

19.7 72,313

414

175 1971

39

1971

39

10.0 86,138

630

137 1947

1994

63

1994

16

9.8 57,112

450

127 1954

2009

56

2009

1

8.3 85,518

612

140 2004

6

2004

6

4.0 47,831

414

116 1929

2004

81

2004

6

10.0 70,286

450

156 1995

15

1995

15

5.0 63,850

468

136 1998

12

1998

12

3.7 90,440

720

126 1975

2000

35

2000

10

4.8 67,513

486

139 1996

14

1996

14

8.7 81,360

558

146 1963

1994

47

1994

16

2.6 85,856

522

164 2000

10

2000

10

21.0 82,261

648

127 2004

6

2004

6

19.6 86,300

648

133 2003

7

2003

7

5.3 92,496

360

257 1969

2009

41

2009

1

2.7 79,378

414

192 1949

1994

61

1994

16

8.0 65,000

504

129 1987

23

1987

23

12.0 78,341

702

112 1972

1994

38

1994

16

3.8 94,423

684

138 2005

5

2005

5

8.0 80,566

558

144 1938

2003

72

2003

7

4.5 75,323

594

127 1958

2000

52

2000

10

7.0 83,808

522

161 1967

2000

43

2000

10

7.0 80,997

612

132 2002

8

2002

8

6.5 85,046

576

148 2002

8

2002

8

2.4 57,369

504

114 2002

8

2002

8

8.2 65,274

468

139 1940

1998

70

1998

12

8.5 67,953

594

114 1956

1994

54

1994

16

12.5 97,041

612

159 1967

1994

43

1994

16

7.2 48,666

360

135 1959

2008

51

2008

2

7.5 90,848

630

144 2005

5

2005

5

7.2 73,316

594

123 1958

1999

52

1999

11

2.3 56,942

432

132 1930

1994

80

1994

16

15.0 82,014

648

127 2003

7

2003

7

5.2 105,847

648

163 1930

1994

80

1994

16

8.3 78,671

558

141 2001

9

2001

9

9.0 79,517

504

158 1994

16

1994

16

25.0 66,236

450

147 1968

1999

42

1999

11

8.0 81,721

432

189 1950

1999

60

1999

11

8.0 77,536

576

135 1951

2002

59

2002

8

13.0 79,342

576

138 1952

2002

58

2002

8

10.3 66,582

540

123 1952

1994

58

1994

16

6.2 73,394

396

185 2009

1

2009

1

4.5 63,650

450

141 2009

1

2009

1

84

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHOOL BUILDINGS, ACREAGE AND CAPACITY
JUNE 30, 2011 Schedule 14

School Acreage, Square Footage, Planning Capacity, Area per Student, Effective Age

Elementary Schools

Acres

Sq.Ft.

Planning SF per

Original Renovation Actual Age Effective Age Effective Age

Capacity Student Construction

(2010 basis)

Basis

(2010 basis)

48 Stanton, D. H. 49 Stanton, F. L. 50 Thomasville Heights 51 Toomer 52 Towns 53 Usher 54 Venetian Hills 55 West Manor 56 White 57 Whitefoord 58 Woodson

6.0 71,480

594

120 1959

2000

51

2000

10

5.2 62,930

306

206 1928

2000

82

2000

10

11.2 89,475

738

121 1971

2001

39

2001

9

10.6 66,593

504

132 1967

1998

43

1998

12

8.9 68,766

522

132 1963

2000

47

2000

10

14.0 90,570

648

140 1969

2003

41

2003

7

9.3 60,313

432

140 1954

1994

56

1994

16

10.8 42,474

288

147 1956

2000

54

2000

10

8.0 63,603

576

110 1964

1999

46

1999

11

2.3 62,712

468

134 1928

1994

82

1994

16

4.1 86,596

486

178 1971

1998

39

1998

12

Elementary School Totals

477.5 4,320,216

30,672

143 1971

39

1999

11

Middle Schools
1 Brown 2 Bunche 3 Coan 4 Harper-Archer 5 Inman 6 Kennedy 7 King M.L. 8 Long 9 Parks 10 Price 11 Sutton 12 Sylvan 13 Turner 14 Young
Middle School Totals

Acres

Sq.Ft.

Planning SF per

Original Renovation Actual Age Effective Age Effective Age

Capacity Student Construction

(2010 basis)

Basis

(2010 basis)

15.6 139,918

1,014

138 1928

2001

82

2001

9

42.3 114,500

884

130 1979

2001

31

2001

9

16.1 166,269

1,066

156 1967

2003

43

2003

7

18.1 206,374

1,144

180 1963

2002

47

2002

8

4.2 134,042

780

172 1923

2005

87

2005

5

5.0 228,028

1,092

209 1970

2004

40

2004

6

6.5 192,300

1,040

185 1973

2003

37

2003

7

15.6 141,210

936

151 1958

2006

52

2006

4

5.8 79,440

546

145 1966

1996

44

1996

14

19.0 152,791

1,014

151 1954

2002

56

2002

8

12.5 144,737

1,040

139 1960

2006

50

2006

4

13.0 114,788

780

147 1949

61

1949

61

9.5 122,279

832

147 1950

1999

60

1999

11

15.0 158,377

1,014

156 1951

2009

59

2009

1

198.2 2,095,053

13,182

158 1957

54

1999

11

High Schools
1 BEST 2 Carver 3 Crim 4 Douglass 5 Forrest Hill 6 Grady 7 Jackson, Maynard 8 King, C.S. 9 Mays 10 North Atlanta 11 South Atlanta 12 Therrell 13 Washington
High School Totals

Acres

Sq.Ft.

Planning Capacity

SF per Student

Original Construction

Renovation

Actual Age Effective Age Effective Age

(2010 basis)

Basis

(2010 basis)

15.1 233,421

1,400

167 2009

1

2009

1

35.4 261,460

1,586

165 1920

2005

90

2005

5

17.9 190,624

1,014

188 1940

2007

70

2007

3

32.0 291,912

2,028

144 1968

2004

42

2004

6

5.8 68,756

650

106 2008

2

2008

2

19.5 211,888

1,326

160 1924

2005

86

2005

5

25.0 249,872

1,508

166 1985

25

1985

25

27.2 232,321

1,400

166 2009

1

2009

1

70.4 310,369

1,664

187 1981

29

1981

29

17.5 278,470

1,560

179 1951

1994

59

1994

16

50.2 258,840

1,404

184 1973

2008

37

2008

2

35.2 229,326

1,430

160 1960

50

1960

50

21.1 252,182

1,664

152 1924

2005

86

2005

5

372.3 3,069,441

18,634

163 1966

44

1998

12

85

Fiscal Year
Ended 1
December 31, 2002 December 31, 2003 December 31, 2004 Decemver 31, 2005
June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011

Population 428,100 432,900 434,900 442,100 451,600 451,600 461,956 477,300 480,700 420,003

ATLANTA INDEPENDENT SCHOOL SYSTEM DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Schedule 15

Personal Income (thousands of dollars)

Per Capita Personal Income

Median Age

149,831

32,925

32.3

153,070

32,739

34.0

162,297

33,838

33.8

173,159

34,825

34.7

184,186

35,846

34.7

184,186

35,846

34.7

196,683

36,309

32.0

198,580

37,744

35.0

206,462

38,336

35.0

203,137

37,101

34.0

Sources: 1 StaCtisityicaolf sAetcltaionntao, fGtehoerCgiiatyCoofmAptlraenhtean,sGiveeoArgninau2a0l 1F1inCaonmciaplreRheepnosrivt e Annual Financial Report For the Fiscal Year Ended June 30, 2011.
Note: 1 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006.

School Enrollment
55,640 53,485 51,358 50,188 49,924 49,707 51,377 48,093 48,696 49,874

Unemployment Rate 7.9% 7.7% 7.4% 5.9% 5.3% 4.5% 5.9% 10.3% 10.0% 10.5%

86

Employer
Allied Barton Security Services International Business Machine Corp. The Coco-Cola Company Turner Broadcasting System, Inc. Cable News Network, Inc. Air Service Corp Accenture LLP AT & T Services Inc. Georgia-Pacific Corporation Tenet Health System, Inc.
Total
Employer

ATLANTA INDEPENDENT SCHOOL SYSTEM PRINCIPAL EMPLOYERS
JUNE 30, 2011 AND NINE YEARS AGO Schedule 16

Type Of Business

2011 Employees

Security Services Technology Services Marketing and Manufacturing Media/Entertainment Media Transportation Consulting Telecommunication Pulp and Paper Manufacturing Healthcare

4,205 3,769 3,608 2,000 1,889 1,665 1,555 1,247 1,170 1,164
22,272

Type Of Business

2002 Employees

Percentage of Total City Employment
2.24% 2.01% 1.92% 1.07% 1.01% 0.89% 0.83% 0.67% 0.62% 0.62%
11.88%
Percentage of Total City Employment

International Business Machine Corp. Georgia-Pacific Corporation Efficiency Plus Consultants The Coco-Cola Company Cable News Network, Inc. Atlanta Journal and Constitution Tenet Health System, Inc. Turner Entertainment Networks
Atlanta Marriott Marquis Hotel Turner Broadcasting System, Inc.
Total

Technology Services Pulp and Paper Manufacturing Consulting Marketing and Manufacturing Media Media Healthcare Entertainment
Hospitality Media/Entertainment

3,851 3,245 3,200 3,181 2,055 1,423 1,336 1,019
1,000 943
21,253

1.99% 1.68% 1.65% 1.64% 1.06% 0.73% 0.69% 0.53%
0.52% 0.49%
10.98%

Source: Statistical section of the City of Atlanta, Georgia 2011 Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2011.
87

ATLANTA INDEPENDENT SCHOOL SYSTEM GENERAL FUND PER PUPIL COST LAST TEN FISCAL YEARS Schedule 17

Fiscal Year

Expenditures 1

Active Enrollment 2

Cost Per Pupil
Enrolled

Average
Daily Attendance 3

Cost Per Pupil
Attended

2002

509,972

56,586

9,012

54,961

9,279

2003

517,196

54,946

9,413

52,398

9,871

2004

533,269

52,103

10,235

49,565

10,759

2005

502,432

51,377

9,779

49,138

10,225

2006

509,458

50,631

10,062

44,534

11,440

2007

536,734

50,631

10,601

48,720

11,017

2008

591,778

49,991

11,838

44,935

13,170

2009

618,667

49,032

12,618

51,449

12,025

2010

630,734

48,909

12,896

52,368

12,044

2011

610,014

49,796

12,250

52,925

11,526

Sources: 1 Atlanta Independent School System General Fund Expenditures by Function schedule for fiscal year ended June 30, 2011 ;
( amounts expressed in thousands). 2 GA Department of Education, Enrollment by Grade report, based on the October count of each fiscal year. 3 Average daily attendance figures from the APS Attendance/Membership Summary Report as of June 30 of each fiscal year.

88

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source:

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHOOL BREAKFAST PROGRAM LAST TEN FISCAL YEARS MEALS SERVED
Schedule 18

Total 3,247,865 3,022,747 3,249,614 2,788,851 2,707,493 2,782,559 2,854,746 2,884,599 3,077,775 3,499,392

Free 3,018,458 2,744,137 2,935,318 2,499,934 2,435,219 2,490,514 2,597,420 2,634,544 2,822,180 3,173,080

Reduced 76,582 71,277 72,924 83,064 85,014 105,082 85,533 78,887 77,739 78,260

Nutrition Department of APS

Paid 152,825 207,333 241,372 205,853 187,260 186,963 171,793 171,168 177,856 248,052

89

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source:

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHOOL LUNCH PROGRAM LAST TEN FISCAL YEARS MEALS SERVED
Schedule 19

Total 7,073,273 6,834,927 6,597,114 6,040,086 5,980,314 5,938,199 5,894,475 5,919,633 5,835,665 5,840,231

Free 6,043,275 5,720,433 5,420,054 4,929,194 4,924,894 4,886,222 4,943,800 4,961,606 4,968,698 5,032,509

Reduced 282,511 260,505 230,992 283,294 289,292 314,070 272,290 252,189 223,230 168,063

Nutrition Department of APS

Paid 747,487 853,989 946,068 827,598 766,128 737,907 678,385 705,838 643,737 639,659

90

ATLANTA INDEPENDENT SCHOOL SYSTEM NUMBER OF SCHOOLS
LAST TEN FISCAL YEARS Schedule 20

Fiscal Year

Total

Elementary

Middle

High

2002

92

66

16

10

2003

89

63

16

10

2004

89

63

16

10

2005

85

59

16

10

2006

89

59

16

14

2007

94

58

16

20

2008

93

57

17

19

2009

95

57

19

19

2010

96

55

18

23

2011

96

55

16

25

Source:

Atlanta Public Schools - General Fund and Special Revenue Budget book- Fast Facts

91

Grade Level
PK KK Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 9 Grade 10 Grade 11 Grade 12
Totals
Source:

ATLANTA INDEPENDENT SCHOOL SYSTEM ENROLLMENT BY GRADE LEVEL ( UNAUDITED)
LAST TEN FISCAL YEARS Schedule 21

2002

2003

For the Fiscal Year Ended June 30, 2004 2005 2006 2007 2008

2009

2010

2011

774 4,786 4,878 5,034 5,430 4,699 4,960 4,384 4,188 4,151 4,480 3,499 2,927 2,396

775 4,618 4,723 4,605 5,011 4,742 4,636 4,307 4,161 4,014 4,456 3,458 3,099 2,341

788 4,481 4,503 4,319 4,383 4,392 4,393 3,898 3,998 3,828 4,131 3,352 2,999 2,638

841 4,562 4,530 4,290 4,351 3,930 4,261 3,979 3,757 3,815 4,253 3,380 2,885 2,543

805 4,762 4,501 4,284 4,264 4,086 3,921 3,807 3,794 3,597 4,332 3,268 2,925 2,424

858 4,758 4,739 4,348 4,286 3,992 3,948 3,526 3,622 3,739 4,073 3,291 2,900 2,551

890 4,476 4,711 4,545 4,330 4,065 3,874 3,509 3,309 3,580 4,204 3,197 2,854 2,447

885 4,351 4,503 4,543 4,337 4,040 3,903 3,314 3,347 3,190 4,309 2,948 2,893 2,469

965 4,501 4,377 4,431 4,431 4,168 3,904 3,451 3,204 3,303 4,420 2,873 2,354 2,527

991 4,598 4,601 4,248 4,481 4,221 4,177 3,623 3,490 3,242 4,412 2,982 2,299 2,431

56,586 54,946 52,103 51,377 50,770 50,631 49,991 49,032 48,909 49,796

GA Department of Education, Enrollment by Grade report, based on the October count of each fiscal year.

92

ATLANTA INDEPENDENT SCHOOL SYSTEM EMPLOYEES BY FUNCTION ( Unaudited) FOR THE LAST TEN FISCAL YEARS Schedule 22

Function

Fiscal Year Ended June 30, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Instruction Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operations Student Transportation Services Central Services Other Supporting Services Nutrition Operations Facilities, Acquisition and Contruction

6,319 392 156 130 66 441 99 839 423 244 44 660
7

6,154 381 166 130 91 483 89 813 414 248 104 631
7

5,887 381 93 128 63 470 87 802 425 198 52 370
6

5,464 386 110 123 64 453 91 733 415 174 55 218
5

5,300 335 97 122 65 443 75 639 412 168 56 175
3

5,212 297 272 127 46 429 159 564 425 132 52 154
0

5,298 341 265 126 47 453 162 540 421 136 79 143
0

5,137 365 303 124 68 449 189 632 424 129 81 136
1

5,170 348 327 121 79 434 188 628 439 128 86 122
1

4,892 350 314 123 84 438 199 630 446 136 93 119
2

Totals

9,820 9,711 8,962 8,291 7,890 7,869 8,011 8,038 8,071 7,826

Source: Information Technology Department of APS

93