ATLANTA INDEPENDENT SCHOOL SYSTEM
Comprehensive Annual Financial Report
For Fiscal Year Ended June 30, 2013
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ATLANTA INDEPENDENT SCHOOL SYSTEM

Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2013

INTRODUCTORY SECTION

Page

Letter of Transmittal

i

GFOA Certificate of Achievement

vii

ASBO International Certificate of Excellence

viii

List of Principal Officials

ix

Appointed Officials

xiii

Organization Chart

xiv

FINANCIAL SECTION

Report of Independent Certified Public Accountants

1

Management's Discussion and Analysis

4

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position

16

Statement of Activities

17

Fund Financial Statements:

Balance Sheet Governmental Funds

18

Reconciliation of Total Governmental Fund Balances to the Net Position of

Governmental Activities

19

Statement of Revenues, Expenditures, and Changes in Fund

Balances Governmental Funds

20

Reconciliation of Governmental Funds Statement of Revenues,

Expenditures, and Changes in Fund Balances to the

Government-wide Statement of Activities

21

Statement of Net Position Proprietary Fund Food Services

22

Statement of Revenues, Expenses, and Changes in Fund

Net Position Proprietary Fund Food Services

23

ATLANTA INDEPENDENT SCHOOL SYSTEM

Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2013

Basic Financial Statements (Continued):

Statement of Cash Flows Proprietary Fund Food Services

24

Statement of Fiduciary Assets and Liabilities

25

Notes to the Basic Financial Statements

26

Required Supplementary Information:

Schedule of Funding Progress

53

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual General Fund

54

OTHER SUPPLEMENTARY INFORMATION

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet Nonmajor Governmental Funds

56

Combining Statement of Revenues, Expenditures and

Changes in Fund Balances Nonmajor Governmental Funds

57

Combining Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual All Special Revenue Funds

Combined

58

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual Title I Special Revenue Fund

60

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual Title II Special Revenue Fund

61

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual Title VI-B Special Revenue Fund

62

Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Lottery Grants Special Revenue Fund 63

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual Other Federal

Programs Special Revenue Fund

64

ATLANTA INDEPENDENT SCHOOL SYSTEM

Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2013

OTHER SUPPLEMENTARY INFORMATION (Continued)

Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Other Special Projects Special Revenue Fund 65

Schedule of Revenues, Expenditures, and Changes in

Fund Balance Budget and Actual Capital Projects Fund

66

Statement of Changes in Assets and Liabilities - Agency Fund

67

Quality Basic Education Programs - Program Expenditures

68

General Fund Quality Basic Education Program (QBE) -

Schedule of Allotments and Expenditures by Program

69

Schedule of Expenditures by Object - Lottery Programs

70

Schedule of Approved Local Option Sales Tax Projects

71

Schedule of State Revenues

72

STATISTICAL SECTION (UNAUDITED)

Net Position by Component Schedule 1

73

Changes in Net Position Schedule 2

74

Governmental Fund Balances Schedule 3

76

Changes in Governmental Fund Balances Schedule 4

77

General Fund Expenditures by Function -Schedule 5

79

General Fund Revenues by Source Schedule 6

80

Assessed and Estimated Actual Value of Taxable Property Schedule 7

81

Property Tax Rates All Overlapping Governments Schedule 8

82

Principal Property Taxpayers Schedule 9

83

Property Tax Levies and Collections Schedule 10

84

Comparison of Property Tax Millage Rates Schedule 11

85

ATLANTA INDEPENDENT SCHOOL SYSTEM

Comprehensive Annual Financial Report Table of Contents
Fiscal Year ended June 30, 2013

STATISTICAL SECTION (UNAUDITED) (Continued)

Tax Millage Rates Schedule 12

86

Ratio of Total Debt Outstanding by Type

Governmental Activities Schedule 13

87

School Buildings, Acreage, and Capacity Schedule 14

88

Demographic Statistics Schedule 15

90

Principal Employers Schedule 16

91

General Fund per Pupil Cost Schedule 17

92

School Breakfast Program Schedule 18

93

School Lunch Program Schedule 19

94

Number of Schools Schedule 20

95

Enrollment by Grade Level Schedule 21

96

Employees by Function Schedule 22

97

INTRODUCTORY SECTION

vii

Association of School Business Officials International
The Certificate of Excellence in Financial Reporting Award is presented to
Atlanta Independent School System
For Its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2012
The CAFR has been reviewed and met or exceeded ASBO International's Certificate of Excellence standards

Ron McCulley, CPPB, RSBO President
viii

John D. Musso, CAE, RSBA Executive Director

ATLANTA INDEPENDENT SCHOOL SYSTEM
List of Principal Officials June 30, 2013
SCHOOL SYSTEM BOARD MEMBERS
At-Large Seat 8: Reuben R. McDaniel, III, 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 double-digit revenue growth and diversified revenue streams by establishing a Corporate Finance Group, Wealth Management Group, and an Institutional Sales & Trading Group.
District 2: Byron D. Amos, Vice Chair
Byron D. Amos, the CEO of Capacity Builders, Inc. is a native Atlantan who has been involved in community organizing for over 20 years and has established deep-roots in the Atlanta community. As a dedicated father, community leader and resident of Vine City, he has demonstrated a passionate commitment to service that comes from a desire to see the residents of his community grow and prosper.
Byron has served as the Chairperson of Neighborhood Planning Unit L and as President of the Vine City Civic Association, Inc. In these positions he served the interests of the community with a deep sense of commitment, dignity, integrity, and dedication over the past several years. As a result of his stewardship, Byron has received many honors and awards, including being recognized as a WATL 36 Unsung Hero as well as an Outstanding Atlantan. Both awards were a testament to his unwavering commitment to community service and leadership. He is also a graduate of the FBI Citizens Academy and the City of Atlanta Citizen Police and Fire Academy. Along with these awards and accomplishments, Byron has had the responsibility of addressing many difficult issues faced by his beloved community.
ix

District 1: Brenda J. Muhammad
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.
District 3: Cecily Harsch-Kinnane
Cecily Harsch-Kinnane has been involved in Atlanta Public Schools for over ten 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.
x

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. Ms. Burks is a graduate of L.P. Miles Elementary School and C.L. Harper High School and has 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.
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 former 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).
xi

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 R. Green Award- The Richard R. 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.
xii

ATLANTA INDEPENDENT SCHOOL SYSTEM APPOINTED OFFICIALS JUNE 30, 2013
SUPERINTENDENT
Erroll B. Davis, Jr.
SENIOR CABINET
Charles A. Burbridge....................................................................Chief Financial Officer Michael Grey (Interim)..................................................Chief Human Resources Officer Larry Hoskins......................................................Deputy Superintendent for Operations Alexis Kirijan...................................................Chief Strategy and Development Officer William T. Prescott (Interim)............................................................General Counsel Steve Smith........................................................................Associate Superintendent Karen Waldon..........................................................Deputy Superintendent Instruction David Williamson.....................................................................Chief Information Officer
xiii

xiv

FINANCIAL SECTION

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
March 5, 2014

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
Ladies and Gentlemen:
Report on the Financial Statements
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, 2013, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
2013ARL-11

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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, 2013, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Notes A and S to the financial statements, in 2013, the Atlanta Independent School System adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported As Assets and Liabilities, which resulted in a restatement to beginning net position of $1,381,985. Our opinion is not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the required supplementary information, as presented on pages 4 through 15 and pages 53 through 55 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Atlanta Independent School System's basic financial statements. The Introductory Section, the Supplementary Information and Statistical Section are presented for the purposes of additional analysis and are not a required part of the basic financial statements.
The Supplementary Information on pages 56 through 72 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole.
2013ARL-11

The Introductory Section on pages i through xii and the Statistical Section on pages 73 through 97 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,

GSG:as 2013ARL-11

Greg S. Griffin State Auditor

MANAGEMENT'S DISCUSSION AND ANALYSIS

ATLANTA INDEPENDENT SCHOOL SYSTEM Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2013
The discussion and analysis of the Atlanta Independent School System's financial performance provides an overview of the fiscal year ended June 30, 2013. 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 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 Position 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, 2013 and contains other supplementary information.
FINANCIAL HIGHLIGHTS
Overall, net position in fiscal year 2013 increased by 2.2% over fiscal year 2012. The 2012 net position was restated due to a change in accounting principle. See Note S for more information on this change. This is evidence of management's ability to maintain a balanced budget and control expenses despite austerity reductions due to economic downturns affecting the District's revenues. The key financial highlights for fiscal year 2013 as represented are the following:
Total net position for the School System increased from approximately $1,388.29 million in fiscal year 2012 to approximately $1,419.33 million in fiscal year 2013, an increase of approximately $31.04 million or 2.2% due to revenues exceeding expenses primarily due to budget cuts. Net position increased by approximately $30.31 million for Governmental Activities and increased by $0.73 million for Business-type Activities.
Total revenues decreased from approximately $775.09 million in fiscal year 2012 to approximately $768.51 million in fiscal year 2013, a decrease of approximately $6.58 million or 0.9%. Revenue for Governmental Activities decreased approximately $5.58 million while revenue for Business-type activities decreased by approximately $1 million.
Total expenses decreased approximately $15.43 million or 2.1% from approximately $752.90 million in fiscal year 2012 to approximately $737.47 million in fiscal year 2013. Expenses decreased in Governmental Activities by approximately $16.41 million and increased by approximately $0.98 million in Business-type Activities.
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The School System has prepared its annual financial reports according to the Governmental Accounting Standards Board No. 34 financial reporting model, illustrated by the following graphic.
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 Position 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 Position presents information on all of the Schools System's assets and liabilities, with the difference between the two reported as net position. Increases or decreases in net position 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 position changed during the fiscal year. All changes in the net position are reported as soon as the underlying event giving rise
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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 Position 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 Position (in millions of dollars)

Current and other assets Net capital assets
Total assets

Governmental Activities

Res tated

2013

2012

Business-type Activities

2013

2012

Total Primary Government

Restated percentage

2013

2012

change

$

333.41 $ 356.53 $

5.61 $

5.21 $ 339.02 $ 361.74

-6.3%

1,307.21

1,248.73

0.14

-

1,307.35

1,248.73

4.7%

1,640.62

1,605.26

5.75

5.21

1,646.37

1,610.47

2.2%

Long-term debt outstanding Other liabilities

140.90

152.75

-

86.01

69.11

0.13

-

140.90

152.75

-7.8%

0.32

86.14

69.43

24.1%

Total liabilities

226.91

221.86

0.13

0.32

227.04

222.18

2.2%

Net position Net investment in capital assets Restricted for debt service Restricted for capital projects Restriced for state and local programs Restricted for school construction Unres tricted

Total net position

$

1,187.17 0.39
113.88 5.18 0.49
106.60
1,413.71 $

1,171.49 0.30 65.80 6.26 43.66 95.89
1,383.40 $

0.14 5.48
5.62 $

4.89
4.89 $

1,187.31 0.39
113.88 5.18 0.49
112.08
1,419.33 $

1,171.49 0.30 65.80 6.26 43.66
100.78
1,388.29

1.4% 30.0% 73.1% -17.3% -98.9% 11.2%
2.2%

Total assets increased by roughly $35.90 million or 2.2%.

Current and other assets decreased by roughly $22.70 million or 6.3%.

Capital assets, net of accumulated depreciation for all governmental activities increased by roughly $58.62 million. The increase primarily represents additions to construction in progress, buildings, building improvements, and equipment less the current fiscal year's disposals and depreciation expense.

Long-term debt outstanding decreased by roughly $11.85 million or 7.8%. The decrease was primarily due to scheduled principal payments and the current fiscal year's amortization of the premium related to the Certificates of Participation issued in fiscal year 2011.

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Table 2 - Condensed Changes in Net Position (in millions of dollars) Governmental Activities

Bus ines s -typ e Activities

Total Primary Government

Res tated

2013

2012

2013

2012

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

Special item - impairment los s

4.54 $ 218.52
4.18
416.36 85.38 0.20
20.94 1.91 (7.93)

1.72 $ 218.28
8.80

1.28 $ 23.13
-

414.32

-

93.70

-

0.13

-

11.62

-

1.11

-

-

-

1.64 $ 23.77
-
-
-

Restated Percentage

2013

2012

Change

5.82 $ 241.65
4.18
416.36 85.38 0.20
20.94 1.91 (7.93)

3.36 242.05
8.80
414.32 93.70 0.13
11.62 1.11 -

73.2% -0.2% -52.5%
0.5% -8.9% 53.9%
80.2% 72.1% -100.0%

Total Revenues
Expen s es :
Ins truction Support Services: Pupil services Improvement of instructional services Educational media Federal grant administration General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Nutrition Other support services Interest and fiscal charges

744.10

749.68

24.41

25.41

768.51

775.09

-0.9%

426.04
25.11 42.92 8.87 1.97 14.33 40.65 15.16 80.78 24.89 23.30 0.91 3.01 5.85

406.00
29.54 38.21 8.96 1.12 17.88 30.83 22.61 97.08 29.77 28.38 0.36 13.04 6.42

-
23.68 -

-
22.70 -

426.04 -
25.11 42.92 8.87 1.97 14.33 40.65 15.16 80.78 24.89 23.30 24.59 3.01 5.85

406.00
29.54 38.21 8.96 1.12 17.88 30.83 22.61 97.08 29.77 28.38 23.06 13.04 6.42

4.9%
-15.0% 12.3% -1.0% 75.9% -19.9% 31.9% -33.0% -16.8% -16.4% -17.9% 6.6% -76.9% -8.9%

Total Expenses
Change in Net Position Beginning Net Position, as restated Ending Net Position

713.79

730.20

23.68

22.70

737.47

752.90

$

30.31 $

19.48 $

1,383.40

1,363.92

$ 1,413.71 $ 1,383.40 $

0.73 $
4.89 5.62 $

2.71 $
2.18 4.89 $

31.04 $
1,388.29 1,419.33 $

22.19
1,366.10 1,388.29

-2.1% 39.9%

7

Primary Government Sources of Revenues
Total revenues net of special item, decreased $6.58 million or 0.9% from fiscal year 2012 to fiscal year 2013. This change is mainly due to the one-time impairment losses on Sylvan Middle School and E. Rivers Elementary School. Please see Note G for additional information.
Program revenues are primarily grant related and account for approximately $251.65 million or 32.8% of total revenues received and include State QBE revenue.
General revenues represent the major revenue stream for the School System. They account for 67.3% or $516.86 million of total revenues received in fiscal year 2013.
Business-type activities revenues decreased from 2012 to 2013 by $1 million or 3.9%. Revenues decreased due to a decline in participation volume.
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Primary Government Expenses
Total expenses decreased from 2012 to 2013 by 2.1% or $15.43 million. Management continues to forecast spending levels and manage spending throughout the fiscal year.
Governmental activities account for 96.8% or $713.79 million of total School System spending. Four groups of activities account for 90.3% or $644.99 million of governmental activities spending: instruction ($426.04 million or 59.7%); pupil services and improvement of instructional services ($68.03 million or 9.5%); administration and business services ($70.14 million or 9.8%); and maintenance and operations ($80.78 million or 11.3%).
Business-type activities expenses increased by $0.98 million or 4.3%. Expenses increased due to additional spending for professional services and equipment refresh purchases.
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Table 3 - Net Cost of Governmental Activities (in millions of dollars)

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

Total Cost of Services

Net Cost of Services

2013

2012

$ 426.04 $ 406.00

Percentage Change 4.9% $

2013 308.41 $

2012 286.97

Percentage Change 7.5%

25.11 42.92 8.87 1.97 14.33 40.65 15.16 80.78 24.89 23.30 3.01

29.54 38.21 8.96 1.12 17.88 30.83 22.61 97.08 29.77 28.38 13.04

0.91

0.36

5.85

6.42

$ 713.79 $ 730.20

-15.0% 12.3% -1.0% 75.9% -19.9% 31.9% -33.0% -16.8% -16.4% -17.9% -76.9%
152.8%
-8.9%
-2.3% $

13.24 7.96 6.65 8.11 30.41 11.93 61.13 18.12 17.36 0.54
0.50
2.19
486.55 $

17.76 7.73 8.96 10.19 23.50 18.50 73.80 21.55 20.42 8.10
-
3.90
501.38

-25.5% 3.0%
-25.8% 0.0%
-20.4% 29.4% -35.5% -17.2% -15.9% -15.0% -93.3%
100.0%
-43.9%
-3.0%

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 controlled spending combined with a decrease in program revenues.
Capital Assets
Capital assets, net of accumulated depreciation for governmental activities for the District was approximately $1.30 billion. The following table provides a summary of capital asset activity:

10

Construction in Progress and Buildings SPLOST IV construction programs to renovate or construct academic facilities are in the 12th 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. Long-term Debt and Obligations Long-term Debt and Obligations related to governmental activities for the District was $140.9 million. The following table provides a summary of long term debt activity:
11

Outstanding long-term debt decreased in the current fiscal year due to scheduled principal payments, the current fiscal year's amortization of the premium related to the Certificates of Participation issued in fiscal year 2011, and an overall decrease in Contingent Liabilities. 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 types of funds:

Governmental funds These funds are used to account for 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, 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 This fund consists of services provided by the School System for a fee and employs the full accrual method of accounting in the same manner as the Government-wide financial 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 This fund accounts 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. This fund is not included in the Government-wide financial statements because it 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, and other non-major governmental funds by type of revenue for the fiscal year ended June 30, 2013 as compared to June 30, 2012.

Table 6 - Revenues and other financing sources (in millions of dollars)

Governmental Funds

In creas e

2013

2012

(Decreas e)

Local taxes Sales taxes income State revenues Federal revenues Investment income Facility rental fees Charges for services Other Proceeds from s ale of capital leas es Proceeds from s ale of capital as s ets

$ 413.47 $ 85.98 146.33 67.83 0.20 1.16 3.37 31.59 0.14

445.18 $ 93.10 142.66 75.79 0.13 1.00 0.72 20.72 4.47 0.25

(31.71) (7.12) 3.67 (7.96) 0.07 0.16 2.65 10.87 (4.47) (0.11)

Percentage Change
-7.1% -7.7% 2.6% -10.5% 53.8% 16.0% 368.1% 52.5% -100.0% -44.0%

Total Revenues and other financing sources

$ 750.07 $ 784.02 $

(33.95)

-4.3%

12

The following table presents a summary of the General Fund, Capital Projects Fund, and nonmajor governmental funds by type of expenditures for the fiscal year ended June 30, 2013 as compared to June 30, 2012.

Table 7 - Expenditures (in millions of dollars)

Governmental Funds

In creas e

Percentage

2013

2012

(Decreas e)

Change

Ins truction Support services Pupil services Improvement of instructional services Educational media Federal grant administration General administration School administration Business administration Maintenance and operation of facilities Student transportation
Central support Other support services Nutrition Capital outlays Debt service
Total Expenditures

$ 384.98 $ 369.98 $

25.02 42.92 8.83 1.97 14.32 40.65 12.51 77.74 22.57
23.30 3.01 0.91 117.78 16.22 792.73

29.46 38.21 8.91 1.12 17.88 30.83 16.65 98.72 27.60
28.29 13.04 0.36 46.05 13.24 740.34

15.00
(4.44) 4.71 (0.08) 0.85 (3.56) 9.82 (4.14) (20.98) (5.03)
(4.99) (10.03)
0.55 71.73 2.98 52.39

4.1%
-15.1% 12.3% -0.9% 75.9% -19.9% 31.9% -24.9% -21.3% -18.2%
-17.6% -76.9% 152.8% 155.8% 22.5%
7.1%

Excess (deficiency) of revenues and other financing sources over (under) expenditures - See Table 6
Transfers in Transfers out

(42.66)
5.93 (5.93)

43.68
0.60 (0.60)

(86.34)
5.33 (5.33)

Fund Balances, Beginning of Fiscal Year

267.81

224.13

43.68

Fund Balances, End of Fiscal Year

$ 225.15 $ 267.81 $

(42.66)

Analysis of Major Governmental Funds
The School System has two major governmental funds: the General Fund and Capital Projects 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 other 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.

13

General Fund
As of June 30, 2013, total fund balance in the General Fund was approximately $85.22 million. This balance includes approximately $2.40 million nonspendable, $0.39 million restricted, approximately $1.14 million committed, $25.30 million assigned, and $55.99 million unassigned fund balance. As a result of operations in fiscal year 2013, the fund balance increased by $3.20 million. The increase in fund balance is attributable to continued diligence in monitoring costs.

For Budget to Actual comparison purposes, the General Fund reported excess expenditures over final budget for the following functions:

Instruction Salary

$8,864,128

Due to additional teachers required to reduce class size from the original plan

Non-Salary
Pupil Services Non-Salary

$3,579,404 $3,176,514

Due to increase in program support for Residential Facilities, Classroom Instruction, Instructional Support CLL and Commencement Exercises
Due to school-based supply purchases, which are never budgeted in the General Fund, but are the result of consolidation

School Administration Salary

$1,001,215

Due to additional Assistant Principals being deployed in schools

Maintenance and Operations Non-Salary

$789,372

Due to increase in operational cost for utilities and building operations

Student Transportation Salary

$1,832,042

Due to additional bus drivers required as a result of foregoing implementation of planned walk zones

Non-Salary

$480,911

Due to higher purchased professional services and transportation services

Central Support Salary

$1,532 Due to increases in employee benefits

Other Support Non-Salary

$357,879

Due to an increase in other purchased services for Residential Facilities

Nutrition Salary

$200,142 Due to increases in employee benefits

14

Capital Projects Fund
As of June 30, 2013, total fund balance in the Capital Projects Fund was $131.75 million. This balance includes $2.66 million nonspendable, $113.87 million restricted, and approximately $15.22 million assigned. The fund balance decreased by $1.98 million due primarily to an increase in SPLOST expenditures and a decrease in SPLOST revenues.
Other Governmental Funds
As of June 30, 2013, total fund balance in Nonmajor Governmental Funds was $8.17 million. This balance included approximately $5.81 million restricted and $2.36 million assigned. In fiscal year 2012, the Education Reform Success Fund (ERS) was presented as a major fund with an ending fund balance of $43.66 million. In fiscal year 2013, the ERS fund balance had significantly declined to approximately $0.63 million resulting in classification as a Nonmajor fund. The fund balance for ERS decreased by approximately $43.04 million in the current fiscal year, with overall Nonmajor funds decreasing by approximately $43.88 million.
Current Issues
Currently known facts, decisions, or conditions that are expected to significantly affect the financial position or results of operations are as follows:
Tax revenues as well as State Quality Basic Education funding have suffered reductions. The continued support of our schools by the public, local community organizations, and businesses continues to be an integral part of our ability to educate our students.
Revenue from the Special Purpose Local Option Sales Tax IV was approved by voters in November of 2011 and the funding, which began in August 2012, has facilitated 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.
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 zero-based approach because it has systematically provided a more accurate account of anticipated spending levels for the fiscal year.
Details of the General Fund original budget and amended budget are presented 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. 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 at 130 Trinity Avenue SW, Atlanta, Georgia 30303.
15

BASIC FINANCIAL STATEMENTS

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Net Position June 30, 2013

ASSETS Current Assets:
Cash and cash equivalents Investments Receivables (net of allowance
for uncollectibles): Taxes Other
Due from other governments Internal balances Inventory Prepaid items
Total Current Assets Noncurrent Assets:
Net pension asset Capital Assets:
Nondepreciable capital assets Depreciable capital assets, net Total Noncurrent Assets TOTAL ASSETS
LIABILITIES Current Liabilities:
Accounts payable Contracts payable Accrued liabilities Retainage payable Due to other governments Deposits and unearned revenues Compensated absences payable, current portion Capital leases payable, current portion Certificates of participation, current portion Claims payable, current portion Intergovernmental agreement, current portion Contingent liabilities, current portion
Total Current Liabilities Noncurrent Liabilities:
Compensated absences payable Capital leases payable Certificates of participation Claims payable Intergovernmental agreement Contingent liabilities
Total Noncurrent Liabilities TOTAL LIABILITIES
NET POSITION Net investment in capital assets Restricted for: Debt service Capital projects School construction Other state and local programs Unrestricted
TOTAL NET POSITION

Governmental Activities

Business-Type Activities

Total

$

178,461,700 $

72,471,224

6,472,072 $ -

184,933,772 72,471,224

23,763,711 730,575
40,813,981 1,336,387
5,057,301 322,634,879
10,770,550
292,152,244 1,015,056,264 1,317,979,058 1,640,613,937

1,230 237,282 (1,336,387) 232,128
5,606,325
-
141,550 141,550 5,747,875

23,763,711 731,805
41,051,263 -
232,128 5,057,301 328,241,204
10,770,550
292,152,244 1,015,197,814 1,318,120,608 1,646,361,812

21,325,913 15,336,305 42,542,543
6,727,344 75,039 -
3,095,048 1,265,265 6,710,000 2,068,429 1,143,625
315,000 100,604,511
2,089,302 4,753,381 100,721,623 3,368,144 15,167,625
200,000 126,300,075 226,904,586
1,187,165,191
395,553 113,874,603
491,989 5,183,951 106,598,064 $ 1,413,709,351 $

1,043 -
123,732 -
124,775
124,775

21,326,956 15,336,305 42,542,543
6,727,344 75,039 123,732
3,095,048 1,265,265 6,710,000 2,068,429 1,143,625
315,000 100,729,286
2,089,302 4,753,381 100,721,623 3,368,144 15,167,625
200,000 126,300,075 227,029,361

141,550

1,187,306,741

-

395,553

-

113,874,603

-

491,989

-

5,183,951

5,481,550

112,079,614

5,623,100 $ 1,419,332,451

See accompanying notes to the basic financial statements. 16

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Activities
For the Fiscal Year Ended June 30, 2013

PRIMARY GOVERNMENT: Governmental Activities:
Instruction Support services:
Pupil services Improvement of instructional services Educational media Federal grant administration General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services Nutrition Interest and fiscal charges
Total Governmental Activities
Business-Type Activities: Food services
Total Business-Type Activities
Total - Primary Government

Expenses

Charges for Services

Program Revenues

Operating Grants and Contributions

Capital Grants and Contributions

Net (Expense) Revenue and Changes in Net Position

Governmental Activities

Business-Type Activities

Total

$ 426,037,447 $

2,591 $ 113,724,544 $ 3,904,228 $ (308,406,084) $

25,105,338 42,917,654
8,869,786 1,973,342 14,324,803 40,648,067 15,157,828 80,783,550 24,892,766 23,304,350 3,011,547
910,473 5,851,816
713,788,767

3,373,883 -
1,158,726 -
4,535,200

8,489,114 34,826,333
2,223,907 1,973,342 6,213,208 10,237,170 3,227,896 18,353,454 6,767,808 5,947,248 2,467,522
407,762 3,659,230
218,518,538

135,500
135,650 -
4,175,378

(13,242,341) (7,955,821) (6,645,879) (8,111,595)
(30,410,897) (11,929,932) (61,135,720) (18,124,958) (17,357,102)
(544,025) (502,711) (2,192,586)
(486,559,651)

- $ (308,406,084)

-

(13,242,341)

-

(7,955,821)

-

(6,645,879)

-

-

-

(8,111,595)

-

(30,410,897)

-

(11,929,932)

-

(61,135,720)

-

(18,124,958)

-

(17,357,102)

-

(544,025)

-

(502,711)

-

(2,192,586)

-

(486,559,651)

23,680,487

1,279,087

23,131,319

-

23,680,487

1,279,087

23,131,319

-

$ 737,469,254 $ 5,814,287 $ 241,649,857 $ 4,175,378

(486,559,651)

729,919 729,919 729,919

729,919 729,919 (485,829,732)

GENERAL REVENUES: Taxes: Property taxes levied for general purposes Property taxes levied for debt service Special purpose local option sales tax Unrestricted grants and contributions Unrestricted investment earnings
Special item - impairment loss (See Note G)
Total General Revenues and Special Item
Change in Net Position
NET POSITION, beginning of fiscal year, restated
NET POSITION, end of fiscal year

416,364,236 1,910,601
85,376,919 20,946,374
198,096 (7,928,325)
516,867,901
30,308,250
1,383,401,101
$ 1,413,709,351 $

-
729,919
4,893,181 5,623,100

416,364,236 1,910,601
85,376,919 20,946,374
198,096 (7,928,325)
516,867,901
31,038,169
1,388,294,282
$ 1,419,332,451

See accompanying notes to the basic financial statements. 17

ATLANTA INDEPENDENT SCHOOL SYSTEM Balance Sheet
Governmental Funds June 30, 2013

ASSETS Cash and cash equivalents Investments Receivables (net of allowance for uncollectibles): Taxes Other Due from other governments Due from other funds Prepaid items
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES
LIABILITIES Accounts payable Contracts payable Accrued liabilities Retainage payable Due to other governments Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES Unavailable revenues - property taxes Unavailable revenues - intergovernmental
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES Nonspendable: Prepaid items Restricted: Debt service Capital projects Other state and local programs School construction Committed: School based activities Assigned: Fiscal year 2014 operations Capital projects Local school programs Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES

General Fund
$ 103,969,050 15,532,356

Capital Projects
Fund
$ 74,358,354 56,938,868

Nonmajor Governmental
Funds
$ 134,296 -

Total Governmental
Funds
$ 178,461,700 72,471,224

16,617,363 730,575
22,667,851 20,441,951 2,396,733
$ 182,355,879

7,146,348 -
135,650 14,448,415 2,660,568
$ 155,688,203

18,010,480 8,481,946 -
$ 26,626,722

23,763,711 730,575
40,813,981 43,372,312
5,057,301
$ 364,670,804

$ 20,091,762 40,630
40,537,892 -
50,000 22,931,944
83,652,228

$ 1,212,908 15,295,675 6,727,344 698,099
23,934,026

$

21,243

-

-

-

25,039

18,405,882

18,452,164

$ 21,325,913 15,336,305 40,537,892 6,727,344 75,039 42,035,925
126,038,418

11,531,717

-

-

11,531,717

1,950,000

-

-

1,950,000

13,481,717

-

-

13,481,717

2,396,733
395,553 -
1,139,666
25,300,000 -
55,989,982
85,221,934

2,660,568
113,874,603
-
-
15,219,006
-
131,754,177

-
5,183,951 626,285
-
2,364,322 -
8,174,558

5,057,301
395,553 113,874,603
5,183,951 626,285
1,139,666
25,300,000 15,219,006
2,364,322 55,989,982
225,150,669

$ 182,355,879 $ 155,688,203 $ 26,626,722 $ 364,670,804

See accompanying notes to the basic financial statements. 18

ATLANTA INDEPENDENT SCHOOL SYSTEM Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities June 30, 2013

TOTAL GOVERNMENTAL FUND BALANCES
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Nondepreciable Depreciable, net of accumulated depreciation
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.
Accumulated pension contributions in excess of annual required contributions are reported as assets for governmental activities
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Accrued interest Bonds premium, net of amortization Capital leases payable Certificates of participation Intergovernmental agreement - City of Atlanta Compensated absences Workers compensation claims payable Contingent liabilities
NET POSITION OF GOVERNMENTAL ACTIVITIES

$ 225,150,669

$ 292,152,244 1,015,056,264

1,307,208,508 13,481,717 10,770,550

(2,004,651) (1,801,623) (6,018,646) (105,630,000) (16,311,250) (5,184,350) (5,436,573)
(515,000)

(142,902,093)

$ 1,413,709,351

See accompanying notes to the basic financial statements. 19

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds For the Fiscal Year Ended June 30, 2013

REVENUES Local taxes Sales tax 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 Federal grant administration 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
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Transfers in Transfers out Proceeds from sale of capital assets
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF FISCAL YEAR
FUND BALANCES - END OF FISCAL YEAR

General Fund
$ 413,467,525 -
143,710,200 1,315,257 104,730 1,158,726 2,591 3,373,883 22,242,841
585,375,753
357,322,211
22,019,608 9,408,941 8,824,668
9,308,666 40,638,070 12,066,195 72,915,256 20,444,407 17,392,802
690,246 502,711
-
3,618,823 1,235,668
576,388,272
8,987,481
(5,925,802)
142,566
(5,783,236)
3,204,245
82,017,689
$ 85,221,934

Capital Projects
Fund

$

-

85,979,568

135,650

-

45,266

-

-

-

-

86,160,484

-
1,085,826 229,868 4,820,089 484,556 4,116,069 74,695,389
5,920,000 1,790,062
93,141,859
(6,981,375)
5,000,000 -
5,000,000
(1,981,375)
133,735,552
$ 131,754,177

Nonmajor Governmental
Funds

$

-

-

2,487,490

66,510,139

48,100

-

-

-

9,351,958

78,397,687

27,653,041
3,003,658 33,508,713
3,661 1,973,342 3,930,311
9,997 212,973
3,468 1,638,201 1,795,479 2,321,301
407,762 43,083,742
3,659,230
123,204,879
(44,807,192)
925,802 -
925,802
(43,881,390)
52,055,948
$ 8,174,558

Total Governmental
Funds
$ 413,467,525 85,979,568 146,333,340 67,825,396 198,096 1,158,726 2,591 3,373,883 31,594,799
749,933,924
384,975,252
25,023,266 42,917,654
8,828,329 1,973,342 14,324,803 40,648,067 12,509,036 77,738,813 22,567,164 23,304,350 3,011,547
910,473 117,779,131
9,538,823 6,684,960
792,735,010
(42,801,086)
5,925,802 (5,925,802)
142,566
142,566
(42,658,520)
267,809,189
$ 225,150,669

See accompanying notes to the basic financial statements. 20

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, 2013

NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS

$ (42,658,520)

Amounts reported for governmental activities in the Statement of Activities are different because:
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 as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense in the current period. Depreciation expense Capital outlay
In the statement of activities, the loss on the disposal of capital assets is included with instruction expenses. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the net book value of the capital assets sold or disposed. Proceeds from the sale of capital assets Net book value of capital assets disposed Impairment loss on capital assets (see Note G)
Revenues in the statement of activities that do not provide current financial resources are reported as deferred revenues in the funds. Property taxes Special purpose local option sales taxes State revenues Other revenues
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of the differences in the treatment of long-term debt and related items. Principal retirement - capital leases Principal retirement - certificates of participation Principal retirement - intergovernmental agreement Amortization of bond premium
The current fiscal year's decrease to the net pension asset increases net expenses on the government-wide statement of activities
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. Compensated absences Workers compensation claims payable Contingent legal liabilities Change in accrued interest

$ (44,248,449) 114,830,723
(142,566) (4,042,397) (7,928,325)
4,807,312 (602,649) (816,778) (139,790)
1,886,948 6,565,000 1,086,875
767,419
18,967 291,449 1,236,176
65,725

70,582,274
(12,113,288) 3,248,095
10,306,242 (668,870) 1,612,317

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

$ 30,308,250

See accompanying notes to the basic financial statements.

21

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Net Position
Proprietary Fund - Food Services June 30, 2013

ASSETS Current Assets: Cash and cash equivalents Due from other governments Other receivables Due from other funds Inventory Total current assets
Noncurrent Assets: Machinery and equipment Less accumulated depreciation
Total noncurrent assets
TOTAL ASSETS LIABILITIES AND NET POSITION
Current Liabilities: Accounts payable Due to other funds Deposits and unearned revenue
TOTAL LIABILITIES NET POSITION
Investment in capital assets Unrestricted
TOTAL NET POSITION
TOTAL LIABILITIES AND NET POSITION

$ 6,472,072 237,282 1,230 1,583 232,128
6,944,295
149,000 (7,450)
141,550 7,085,845
1,043 1,337,970
123,732 1,462,745
141,550 5,481,550 5,623,100
$ 7,085,845

See accompanying notes to the basic financial statements. 22

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund - Food Services For the Fiscal Year Ended June 30, 2013

OPERATING REVENUES Charges for services
OPERATING EXPENSES Personnel costs Purchased and contractual services Supplies and materials Other operating costs Depreciation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NON-OPERATING INCOME Intergovernmental
TOTAL NON-OPERATING INCOME
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF FISCAL YEAR
NET POSITION, END OF FISCAL YEAR

$ 1,279,087
3,064,443 17,229,033
2,387,110 992,451 7,450
23,680,487 (22,401,400)
23,131,319 23,131,319
729,919
4,893,181 $ 5,623,100

See accompanying notes to the basic financial statements. 23

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Cash Flows
Proprietary Fund - Food Services For the Fiscal Year Ended June 30, 2013

CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash payments to employees for services Cash payments for goods and services
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Intergovernmental receipts
NET CASH PROVIDED BY NON-CAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets
NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES
NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS - BEGINNING OF FISCAL YEAR
CASH AND CASH EQUIVALENTS - END OF FISCAL YEAR
RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES Operating loss Adjustments to reconcile operating loss to net cash used in operating activities: Depreciation Changes in assets and liabilities Decrease in accounts receivable Increase in due from other funds Increase in inventories Increase in deposits and unearned revenue Decrease in due to other funds Decrease in accounts payable
Net cash used used in operating activities
NONCASH NON-CAPITAL FINANCING ACTIVITIES USDA donated food commodities

$

1,303,154

(5,976,103)

(20,921,272)

(25,594,221)

23,199,859 23,199,859

(149,000)

(149,000)

(2,543,362)

9,015,434

$

6,472,072

$ (22,401,400)

7,450
1,086 (1,583) (89,551) 22,981 (2,911,660) (221,544)
$ (25,594,221)

$

1,457,458

See accompanying notes to the basic financial statements. 24

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Fiduciary Assets and Liabilities June 30, 2013
ASSETS Cash and cash equivalents
LIABILITIES Due to local schools and student groups

Agency Fund Local School Club and Class
Funds
$ 414,935
$ 414,935

See accompanying notes to the basic financial statements.
25

NOTES TO THE BASIC FINANCIAL STATEMENTS

Atlanta Independent School System
Notes to the Basic Financial Statements
June 30, 2013
A. Summary of Significant Accounting Policies
The financial statements of the School System have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The more significant of the School System's accounting policies are summarized below.
1. Reporting Entity
The Atlanta Independent School System (School System or the District) 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 have a governing body which is substantively the same as the System's governing body and management of the System has operational responsibility for the component unit and; therefore, data from these units are combined with data of the School System. Substantively the same means sufficient representation of the primary government's entire governing body on the component unit's governing body to allow complete control of the component unit's activities.
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 Position and the Statement of Activities) report information on all of the non-fiduciary activities of the School System and its component units (if any). As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. However, any interfund services provided and used are not eliminated as this process would distort the direct costs and program
26

revenues reported in the various functions. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from Business-type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) fees and 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 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, private donations, and similar items are recognized as revenue in the fiscal year in which 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 (QBE) Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally teachers are contracted for the school year (July 1 June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid, funding the academic school year expenditures. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent fiscal year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each fiscal year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board (GASB) Statement No. 33, paragraph 74, the State of
27

Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
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.
Expenditures are generally 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.
Fund Financial Statements
The School System uses funds to segregate transactions related to certain School System functions or activities in order to maintain its financial records during the fiscal year. Fund financial statements are provided for governmental, proprietary, and fiduciary funds.
Governmental Funds Governmental funds are those through which most governmental functions are typically financed. Governmental funds employ the financial position measurement focus and are accounted for on the modified accrual basis of accounting at the fund level. Major individual governmental funds are reported in separate columns. All remaining governmental funds are aggregated and reported as nonmajor funds.
The School System reports the following major governmental funds:
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 from debt proceeds, bond sales, the State of Georgia, and special purpose local option sales tax (SPLOST). SPLOST receipts are tax proceeds required to be used for capital outlay for educational purposes as authorized by local referendum.
Proprietary Funds- Proprietary funds employ the economic resources measurement focus and are accounted for on the accrual basis. Proprietary funds are used to account for activities that are financed and operated like private business enterprises. 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 ongoing operations. Operating expenses and depreciation for the enterprise fund include 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.
28

In accounting and reporting for its proprietary operations, the School System applies all Governmental Accounting Standards Board (GASB) pronouncements. For the fiscal year ended June 30, 2013, the School System implemented GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This statement incorporated into the GASB's authoritative literature certain accounting and financial reporting guidance issued on or before November 30, 1989.
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.
Fiduciary Funds Fiduciary funds account 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 the results of operations.
The fiduciary fund is excluded from the government-wide financial statements.
4. Assets, Liabilities, and Net Position or Equity
a. Cash Equivalents
The School System considers all highly liquid investments with a maturity of three months or less when purchased from authorized financial institutions to be cash equivalents. Georgia Law, OCGA 45-8-14, authorizes the 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;
29

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 (i.e., Georgia Fund 1) administered by the State of Georgia, Office of State Treasurer;
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, private donations 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 Prepaid Items Inventories are valued at cost using the first-in, first-out method of accounting. Donated food commodities are recorded at fair value. The costs of Food Services Fund inventories are recorded as expenditures when consumed (consumption method). Prepaid items are payments made to vendors for services that will benefit periods beyond June 30, 2013 and are recorded as an asset using the consumption method for the prepaid amount and reflecting the expenditure in the fiscal year in which the services are consumed. Prepaid items are recorded in the government-wide and the governmental fund financial statements.
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 fair 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.
30

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 & 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
The Atlanta Board of Education authorizes annual leave for personnel employed on a twelvemonth basis as follows: Less than then years of service 3.750 hours per pay period; ten to twenty years of service 4.875 hours per pay period; and twenty or more years of service 5.625 hours per pay period. Employees on 220 day assignment prior to May 13, 1986 who continue in said assignment are authorized annual leave as follows: less than ten years of service 1.0227 hours per pay period; ten to twenty years of service 2.0454 hours per pay period; and twenty or more years of service 3.0681 hours per pay period. An employee may accrue annual leave days up to a maximum of 225 hours (30 working days). 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 long-term 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 position. 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.

31

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 Fund balance 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 Fund balance amounts that can be spent only for specific purposes because of state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund balance 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 Fund balances are reported as assigned when amounts are constrained by the School System's intent to be used for specific purposes, but are neither restricted nor committed. The Board has expressly delegated the Superintendent or designee (Chief Financial Officer) the authority to assign fund balances for a particular purpose.
Unassigned Residual fund balance that has not been restricted, committed or assigned to specific purposes or other funds. The School System reports positive unassigned fund balance only in the General Fund. Negative unassigned fund balances may be reported in all funds.
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 Position
The School System implemented GASB Statements No. 63, Financial Reporting of Deferred Inflows of Resources, Deferred Outflows of Resources, and Net Position and No. 65, Items Previously Reported as Assets and Liabilities, as of July 1, 2012. These new standards establish accounting and financial reporting for deferred inflows / outflows of resources, and the concept of net position as the residual of all other elements presented in a statement of net position.
Net position represents the difference between assets and liabilities in reporting which utilizes the economic resources measurement focus. Net investment in capital assets 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 position is 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. All other net position is reported as unrestricted.
32

The School System applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net positions are available.
j. Deferred Inflows of Resources
In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The School System has only one type of deferred inflow of resources, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the deferred inflow of resources, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from property taxes and other sources as these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available.
k. Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources, 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.
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.
The School System follows these procedures in establishing the budgetary data reflected in the financial statements:
1. Budget requests are normally completed in January.
33

2. Proposed budgets are consolidated and reviewed by the Budget Department, then submitted to the Senior Cabinet of Atlanta Public Schools and Budget Commission for additional review prior to the approval by the Atlanta Board of Education.
3. Public hearings on the proposed budget are normally held in May and June.
4. The annual budget is legally adopted by the Board in June for the General Fund and Special Revenue Funds.
5. The administrative level of budgetary control upon adoption is at the program level. The Atlanta Board of Education must approve transfers between division and programs that are greater than 5% or $1,000,000 (whichever is less). Transfer of budgeted amounts between object categories within programs 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) Fund 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. Excess Expenditures over Appropriations of Individual Funds

GENERAL FUND Instruction
Salary Non-Salary
Maintenance and Operation Non- Salary

$8,864,128 $3,579,404
$789,372

School Nutrition Salary

$200,142

SPECIAL REVENUE FUNDSCOMBINED
General Administration Salary

$696,447

Central Support Non- Salary
CAPITAL PROJECTS FUND Business Administration
Salary

$1,195,461 $82,947

Pupil Services Non- Salary $3,176,514

Student Transportation

Salary Non- Salary Other Support

$1,832,042 $480,911

Non-Salary

$357,879

Business Administration

Salary

$19,926

School Administration

Salary

$1,001,215

Central Support Salary

$1,532

Student Transportation

Salary

$127,403

34

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 AAAf rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as 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 the State Treasurer 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, 2013 are as follows:

Credit Risk AAAf rated AAAf rated

Value $ 30,256,101*
134,296**

Interest Risk 43 day WAM 43 day WAM

The School System classifies its investment in Georgia Fund 1 as cash and cash equivalents. *Represents funds reported in the School System's General Fund **Represents funds held in the School System's blended component unit, ERS fund, which are held by the U.S. Bank as custodian for the issuances of the Certificates of Participation debt.
Categorization of Deposits
As of June 30, 2013, 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, 2013 are presented in this table. All investments are presented by investment type and debt securities are presented by maturity.

35

Investment Type
Debt Securities U.S. Agencies Implicitly Guaranteed: FNMA, FHLM, FHLB Discount Notes U.S. Government Notes & Bonds
Repurchase Agreements

Fair Value

Investment Maturity Less than One Year

$ 65,958,053 4,503,358
11,000,000 81,461,411

$ 65,958,053 4,503,358
11,000,000 81,461,411

Other Investments Money Market - Cash Equivalents Georgia Fund 1 - Cash Equivalents Municipal Securities Certificates of Deposits
Total Investments
Investments Reconciliation
General Fund Investments Capital Projects Investments Georgia Fund 1 - Cash Equivalents

28,051,626 30,390,397 10,280,389
5,000,000 $ 155,183,823

28,051,626 30,390,397 10,280,389 5,000,000 $ 155,183,823

Total Investments
$ 41,187,906 83,605,520 30,390,397

Reclass to Cash and Cash Equivalents
$ (25,655,550) (26,666,652) (30,390,397)

Per balance sheet As of June 30, 2013

$

15,532,356

56,938,868

-

$ 155,183,823

$ (82,712,599)

$

72,471,224

Interest Rate Risk Interest rate risk is the risk that a fixed income investment's value will decrease due to a change in the absolute level of interest rates. 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.

36

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.

The investments subject to credit quality risk are reflected here:

Rated Debt Instruments
Debt Securities U.S. Agencies Implicitly Guaranteed:
FNMA, FHLM, FHLB Discount Notes U.S. Government Notes & Bonds
Repurchase Agreements
Other Investments Money Market - Cash Equivalents Georgia Fund 1 - Cash Equivalents Municipal Securities Certificates of Deposits Total by Quality Rating

Fair Value

Quality Ratings

AAA

AA

A/A1

$ 65,958,053 $ 4,503,358 11,000,000

- $ 65,958,053 $

-

-

4,503,358

-

-

- 11,000,000

28,051,626 30,390,397 10,280,389 5,000,000
$ 155,183,823

28,051,626 30,390,397
3,299,435 -
$ 61,741,458

6,469,779 -
$ 76,931,190

511,175 -
$ 11,511,175

NR

$

-

-

-

5,000,000
$ 5,000,000

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 has a policy concerning the composition of its investment portfolio and is in compliance with its investment policy.

The investment policy establishes that 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 Municipal Securities (No more than 5%) Certificates of Deposit

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

37

Investments in any one issuer that represents 5% or more of the total investments were as follows as of June 30, 2013:

% of Total

Issuer

Investment Type

Investments

Municipal Bonds Unites States Government Federal Farm Credit Bank Financial Institutions Money Market- Georgia Fund 1 Bank of America Government Reserves Capital Federal National Mortgage Association Federal Home Loan Bank Federal Home Loan Mortgage Corporation Tri Party Repo Agreement

Municipal Securities Treasury Bills Federal Agency Securities Certificates of Deposits Money Market Funds Money Market Funds Federal Agency Securities Federal Agency Securities Federal Agency Securities Repurchase Agreement

6.62% 2.90% 3.22% 3.22% 19.58% 18.08% 15.27% 12.57% 11.45% 7.09%

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 incurred, 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 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

$

29,661,952

$

General Fund Capital Projects Fund

Other Receivables

$

1,207,376

$

SPLOST Tax Receivables

$

7,146,348

$

Allowance for Uncollectible (13,044,589)
Allowance for Uncollectible
(476,800)
Allowance for Uncollectible
-

Net Property Receivable

$

16,617,363

Net Other Receivables

$

730,575

Net SPLOST Receivable

$

7,146,348

Food Service Fund

Other Receivables

$

1,230

$

Allowance for Uncollectible
-

Net Property Receivable

$

1,230

38

G. Capital Assets

The following is a summary of changes in capital assets during the fiscal year ended June 30, 2013:

Governmental Activities: Land Construction in Progress
Total Non-Depreciable Assets

Beginning Balance
$ 107,065,303 76,402,637 183,467,940

Increases

Decreases & Transfers to In Service

$

-

111,729,577

111,729,577

$

-

(3,045,273)

(3,045,273)

Ending Balance
$ 107,065,303 185,086,941 292,152,244

Buildings Building Improvements Land Improvements Equipment Furniture & Fixtures Vehicles Total Depreciable Assets Total at Historical Cost

1,105,944,714 257,501,252 23,243,382 13,389,542 56,030 28,104,831
1,428,239,751 1,611,707,691

215,788 3,466,129
129,305 1,984,211
350,986 6,146,419 117,875,996

(12,870,497) (6,445,122) (540,020) (430,338) (136,191)
(20,422,168) (23,467,441)

1,093,290,005 254,522,259 22,832,667 14,943,415 56,030 28,319,626
1,413,964,002 1,706,116,246

Less Accumulated Depreciation Buildings Building Improvements Land Improvements Equipment Furniture & Fixtures Vehicles
Total Accumulated Depreciation

277,443,166 52,182,650 9,117,724 8,320,889 17,276 15,886,464 362,968,169

21,772,082 15,531,265 1,331,325 1,850,350
5,603 3,757,824 44,248,449

(5,745,002) (1,746,544)
(436,782) (276,183)
(104,369) (8,308,880)

293,470,246 65,967,371 10,012,267 9,895,056 22,879 19,539,919
398,907,738

Governmental Activities Capital Assets, Net

$ 1,248,739,522

$ 73,627,547

$ (15,158,561)

$1,307,208,508

Business-Type Activities: Equipment

$

-

149,000

$

-

$

149,000

Less Accumulated Depreciation Equipment

-

7,450

-

7,450

Business-Type Activities Capital Assets,

Net

$

-

$ 141,550

$

-

$

141,550

Sylvan Middle School and Rivers Elementary School have been permanently impaired as a result of a

39

significant and unexpected decline in service utility. An impairment loss has been calculated as required by GASB Statement No. 42, Accounting & Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. The amount of the impairment loss as shown as a special item on the Government-Wide Statement of Activities ($7,928,325) is the total net book value of the buildings.
Depreciation expense was charged to governmental functions as follows:

Instruction Support Services
Educational Media Services Maintenance & Operations Pupil Services Student Transportation Support Services - Business

$ 37,897,520
41,457 96,329 82,072 3,482,279 2,648,792

Total

$ 44,248,449

Depreciation expense was charged to business-type activities as follows:

School Nutrition Program

$ 7,450

H. Long-term Debt
Capital Leases
The School System has entered into various lease agreements for the purchase of equipment. 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.
The capital assets acquired through capital leases are as follows:

Asset
Buses Less: Accumulated depreciation Net Capital Assets

Governmental Activities

$

9,899,536

(5,821,857)

$

4,077,679

40

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

Fiscal Year Ending

Governmental Activities

2014

$

1,412,990

2015

1,412,990

2016

1,413,062

2017

1,092,703

2018

1,102,634

Total minimum payments

6,434,379

Less: Amount representing interest

(415,379)

Present value of minimum payments

$

6,018,646

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 bond 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, 2013, $395,553 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:

Purpose Governmental Activities

Interest Rate 3-5%

Amount $16,311,250

In prior fiscal years, the City of Atlanta and the 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, 2013, $48,890,000 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. 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). Interest rates vary (5.457% - 5.657% for

41

Series 2011A, and 2% - 5% for Series 2011B). I. Long-Term Obligations Changes in long-term obligations during the fiscal year ended June 30, 2013, 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 Other long-term liabilities
Compensated absences Contingent legal liabilities Workers' compensation
Total other long-term liabilities

Beginning Balance

Additions

Deductions

Ending Balance

Amounts Due within One Year

$

7,905,594 $

17,398,125 7,780,000
72,460,000 31,955,000
2,569,042 140,067,761

- $ (1,886,948) $

6,018,646 $ 1,265,265

-

(1,086,875)

16,311,250

-

(645,000)

7,135,000

-

-

72,460,000

-

(5,920,000)

26,035,000

-

(767,419)

1,801,623

-

(10,306,242)

129,761,519

1,143,625 670,000 -
6,040,000 -
9,118,890

5,203,317 1,751,176 5,728,022 12,682,515

4,048,895 300,000
1,864,975 6,213,870

(4,067,862) (1,536,176) (2,156,424) (7,760,462)

5,184,350 515,000
5,436,573 11,135,923

3,095,048 315,000
2,068,429 5,478,477

Total long-term obligations

$ 152,750,276 $ 6,213870 $ (18,066,704) $ 140,897,442 $ 14,597,367

The General Fund has been typically used to liquidate the liability for compensated absences, contingent

liabilities, and workers' compensation.

Fiscal Year

Intergovernmental Agreements

Ending

Capital Leases

City of Atlanta

Principal

Interest

Principal

Interest

2014

$

1,265,265 $

147,725 $

1,143,625 $

787,004

2015 2016 2017 2018 2019-2023 2024-2027
Total Principal and Interest

1,297,777

1,331,332

1,045,535

1,078,737

-

-

$

$6,018,646 $

115,213 81,730 47,168 23,897
-
$415,733 $

1,264,500 1,325,750 1,333,000 1,242,625 6,942,875 3,058,875
$16,311,250 $

736,419 680,609 621,974 463,107 1,430,510 199,499
$4,919,122

42

At June 30, 2013, payments due by fiscal year, which includes principal and interest for these items, are as follows:

Fiscal Year Ending

2014

$

2015

2016

2017

2018

2019-2023

2024-2027 Total Principal and Interest $

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

Principal

Interest

670,000 $ 700,000

294,640 $ 266,972

730,000

238,066

755,000

207,920

790,000

176,743

3,490,000

367,524

7,135,000 $

1,551,865 $

Education Reform Success, Inc. Certificates of Participation 2011A

Principal

Interest

- $ -

4,029,142 $ 4,029,142

-

4,029,142

-

4,029,142

-

4,029,142

-

20,145,710

72,460,000 72,460,000 $

12,276,035 52,567,455 $

Education Reform Success, Inc. Certificates of Participation 2011B

Principal

Interest

6,040,000 $ 6,340,000

1,301,750 999,750

6,660,000

682,750

6,995,000

349,750

-
-
26,035,000 $

-
-
3,334,000

J. Inter-fund Receivables

Inter-fund Receivables and payables balances as of June 30, 2013 are as follows:

Receivable Fund General Fund School Nutrition Fund
Capital Projects Fund
Nonmajor Governmental Funds
General Fund General Fund

Payable Fund

School Nutrition Fund

$

General Fund

General Fund

General Fund

Capital Projects Fund Nonmajor Governmental Funds

$

Amount 1,337,970 1,583
14,448,415
8,481,946
698,099 18,405,882
43,373,895

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.

43

K. Interfund- Transfers Transfers within the governmental funds for the fiscal year ended June 30, 2013 are as follows:

Governmental funds: General Fund Capital Projects Fund Nonmajor Governmental Funds

Transfers In

Transfers Out

$

-

$ (5,925,802)

5,000,000

925,802

-

$ 5,925,802 $ (5,925,802)

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 fiscal years.

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

Claims and

End

of Fiscal Year

Changes in

Claims

of Fiscal Year

Liability

Estimates

Paid

Liability

Fiscal year 2012

$

-

$ 623,853

$ (623,853) $

-

Fiscal year 2013

$

-

$ 1,338,999

$ (1,338,999) $

-

44

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%. There have not been any significant changes in insurance coverage from the prior fiscal year.

Balance at Beginning of Fiscal Year

Claims and Changed in Estimates

Claims paid

Balance at End of Fiscal Year

Fiscal year 2012 Fiscal year 2013

$ 7,258,000 $1,080,663 $ 5,728,022 $1,864,975

$ (2,610,641) $ 5,728,022 $ (2,156,424) $ 5,436,573

M. Nonmonetary Transactions
The School System received from the United States Department of Agriculture through the Georgia Department of Education approximately $1,457,458 in donated food commodities for its lunchroom programs. The federally assigned value of these commodities is reflected as revenue and expensed as used 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 $200,726 for health insurance and pension costs paid by the Georgia Department of Education to the Georgia Department of Community Health for non-certified personnel on the School System's behalf. Additionally, $31,854,792 was paid by the Georgia Department of Education to the Department of Community Health for group health insurance on the School System's behalf.
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
45

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 6.00% 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 11.41% at June 30, 2013.

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

School System $ Employees
$

2013 35,714,946 $ 18,819,379 54,534,325 $

2012

2011

33,138,997 $ 32,515,502

17,584,629

18,178,891

50,723,626 $ 50,694,393

City of Atlanta General Employee's 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 participates 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
46

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:
GEM Group 225 Peachtree Street Northeast Suite 1460 Atlanta, Georgia 30303 404-525-4191
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, 2012 is as follows:

Active employees Inactive members Retirees and beneficiaries
Total membership

763 26 2,253
3,042

Method Used to Value Investments
Investments are stated at fair value. Fair value of Plan assets at July 1, 2012 was $110,283,000.
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.

47

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. The remaining amortization period is closed 16 years remaining as of July 1, 2012.
The Plan's annual pension cost for the current fiscal year, based on actuarial valuations performed as of July 1, 2012 and related information for the Plan is as follows:
Contribution rates as a percent of covered payroll:

Employee Employer
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

7.00% or 8.00% 8.00%
$43,679,004 $43,000,000
7/1/2012 Entry age normal
Level % of payroll
8.00% per year
3.00% per year 4.50% 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:

Fiscal Year

2011

$

2012 2013

Annual Pension Cost
(APC)
37,058,594
38,714,436 43,668,870

% of APC Contributed
105.24 100.74
98.47

Net Pension (Asset)
Obligation
$ (11,153,586)
(11,439,420)
(10,770,550)

48

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, 2013, were computed as follows:

Actuarially required contribution Interest on net pension asset ARC adjustment Annual pension cost Actual contributions made Decrease in net pension asset Net pension asset, June 30, 2012
Net pension asset, June 30, 2013

$43,679,004 (915,151) 905,017
43,668,870 (43,000,000)
(668,870) 11,439,420
$10,770,550

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

Actuarial

UAAL

Accrued

use as a

Actuarial

Liability

Unfunded

Percentage of

Actuarial

Value of

(AAL)

AAL

Funded

Covered

Covered

Valuation

Assets

Entry Age

(UAAL)

Ratio

Payroll

Payroll

Date

(a)

(b)

(b-a)

(a/b)

(c)

((b-a)/c) *

7/1/2012

$101,272,560

$633,671,785 $532,399,225 15.98%

$22,914,238

2,323.44%

*Not less than zero
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 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, 2012.

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

49

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, 2013, were as follows:

Certificated Employees July 2012- March 2013 April 2013- June 2013

$912.34 per month $937.34 per month

Non-Certificated Employees July 2012- June 2013

$446.20 per month

The School System's contribution to the health insurance plans for the fiscal year June 30, 2013, June 30, 2012, and June 30, 2011 were $43,426,063, $41,358,812 and $43,496,218, respectively. These contributions equaled the required contribution/annual OPEB cost.
Q. Commitments and Contingencies
Construction Commitments
The School System has active construction projects as of June 30, 2013. The projects relate to construction, renovation of school buildings, and other projects. At fiscal year-end, the School System's commitments with contractors were $44,680,768.
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 $ 515,000.

50

Amounts received or receivable 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.
R. 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 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. In government-wide and proprietary fund financial statements, the liability should be recorded at the current value of the costs the government expects to incur to perform the work. This amount should be estimated using the expected cash flow technique, which measures the liability as the sum of probability-weighted amounts in a range of possible estimated amounts the estimated mean or average.
As of June 30, 2013, the School System was the responsible party in the remediation of mold removal, asbestos abatement, expired chemical disposal, paint disposal, light bulb 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, 2013 and therefore, not recorded in the governmental activities statement of net position. The potential liability is deemed immaterial at this time to record to the School System's financial statements. APS paid $301,670 for current financial fiscal year remediation activities.
S. Changes in Accounting Principle
In conjunction with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities, the School System is required to change its accounting treatment of debt issuance costs. The new standard requires that debt issuance costs be recognized as an expense in the period incurred rather than deferred and recognized as an expense (amortized) in a systematic and rational manner over the duration of the related debt as was the required treatment in prior reporting periods.
51

Therefore, in conjunction with the implementation of Statement No. 65, the following restatement was required to the beginning net position of the Governmental Activities to properly recognize debt issuance costs as an expense in the periods in which they were incurred:

Net position, Governmental Activities, previously reported Recognition of issuance costs incurred in prior periods Beginning net position , Governmental Activities, restated

$ 1,384,783,086 (1,381,985)
$ 1,383,401,101

T. Subsequent Event
On July 1, 2013, the School System entered into a Purchase and Sale agreement with East Lake Foundation, Inc. for an existing school facility known as Charles R. Drew Charter School. The School System acquired the facility for a cash consideration of $10,000,000 which was allocated to the School System by the State of Georgia for the sole purpose of acquiring the facility. The $10,000,000 allocation was fully funded through the issuance of bonds by the State of Georgia. The bonds are not an obligation of the School System and do not constitute a pledge of the faith and credit of the School System.
The School System will lease the facility back to East Lake Foundation for a lease term of ninetynine years, at the cost of $1 per year. East Lake Foundation will have an option to acquire the facility from the School System, on or after July 1, 2033, at a purchase price equal to the estimated costs anticipated to be incurred by the School System to hold title to the facility. East Lake Foundation is responsible for all of the costs of operating and maintaining the facility.
The State of Georgia commissioned an appraisal of the facility and estimated a value of $19,000,000. In fiscal year 2014, the School System will capitalize the building at the State appraised value, recognizing a gain of $9,000,000 on the purchase of the facility.

52

REQUIRED SUPPLEMENTARY INFORMATION

ATLANTA INDEPENDENT SCHOOL SYSTEM Required Supplementary Information June 30, 2013

Actuarial Valuation
Date 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012

SCHEDULE OF FUNDING PROGRESS

(1) Actuarial
Value of Assets $ 133,058,241
150,876,105 112,295,208 114,615,676 113,553,224 101,272,560

(2) Actuarial Accrued Liability (AAL) $ 643,301,615
655,110,071 644,788,188 669,032,859 646,444,083 633,671,785

(3) Funded Ratio (1)/(2) 20.68% 23.03% 17.42% 17.13% 17.57% 15.98%

(4) Unfunded / (Surplus) AAL
(2)-(1) $ 510,243,374
504,233,966 532,492,980 554,417,183 532,890,859 532,399,225

(5)

Annual

Covered

Payroll

$

29,105,414

28,272,933

29,404,892

26,304,364

24,562,775

22,914,238

(6) UAAL as a Percentage of Covered
Payroll (4)/(5) 1753.09% 1783.45% 1810.90% 2107.70% 2169.51% 2323.44%

Note: See assumptions used for these schedules disclosed in the notes to the financial statements. This schedule of funding progress reflects the Atlanta Independent School System's participation in the City of Atlanta General Employees' Pension Fund and only shows the School System's actuarial value of assets, actuarial accrued liability and etc.

53

ATLANTA INDEPENDENT SCHOOL SYSTEM General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES Local taxes Investment income Tuition charges Facility rental fees State revenues Federal revenues Charges for services Other
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
Continued

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$ 396,919,667 $ 396,293,168 $ 413,467,525 $

200,000

200,000

104,730

10,000

10,000

2,591

950,000

950,000

1,158,726

151,500,000

151,500,000

143,710,200

2,050,000

2,050,000

1,315,257

1,200,000

1,200,000

3,373,883

5,490,000

5,490,000

22,242,841

$ 558,319,667 $ 557,693,168 $ 585,375,753 $

17,174,357 (95,270) (7,409) 208,726
(7,789,800) (734,743) 2,173,883
16,752,841
27,682,585

$ 269,459,137 $ 255,190,196 14,268,941

344,878,679 $ 294,376,040
50,502,639

357,322,211 $ 303,240,168
54,082,043

(12,443,532) (8,864,128) (3,579,404)

13,251,357 12,921,182
330,175
12,539,689 10,546,422
1,993,267
8,807,988 8,096,894
711,094
14,033,527 7,678,586 6,354,941
36,097,411 34,830,919
1,266,492
22,038,833 18,101,532
3,937,301
63,391,980 22,933,920 40,458,060
11,957,084 11,290,861
666,223

20,018,481 16,740,462
3,278,019
11,644,295 10,114,768
1,529,527
8,857,930 8,143,194
714,736
11,471,281 7,936,365 3,534,916
39,789,262 39,348,652
440,610
18,016,036 15,777,300
2,238,736
75,047,419 29,392,053 45,655,366
18,131,454 14,080,628
4,050,826

22,019,608 15,565,075
6,454,533
9,408,941 8,315,213 1,093,728
8,824,668 8,129,842
694,826
9,308,666 6,267,723 3,040,943
40,638,070 40,349,867
288,203
12,066,195 10,795,005
1,271,190
72,915,256 26,470,518 46,444,738
20,444,407 15,912,670
4,531,737

(2,001,127) 1,175,387 (3,176,514)
2,235,354 1,799,555
435,799
33,262 13,352 19,910
2,162,615 1,668,642
493,973
(848,808) (1,001,215)
152,407
5,949,841 4,982,295
967,546
2,132,163 2,921,535 (789,372)
(2,312,953) (1,832,042)
(480,911)

54

ATLANTA INDEPENDENT SCHOOL SYSTEM General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

EXPENDITURES (CONTINUED) Current (Continued):
Support services (continued) Central support Salary Non-salary
Other support services Salary Non-salary
Nutrition Salary Non-salary
Other outlays Salary Non-salary
Debt service Principal Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES) Transfers out Proceeds from sale of capital assets
TOTAL OTHER FINANCING SOURCES (USES)

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

76,711,801 55,739,838 20,971,963
340,048 208,650 131,398
-
43,000,000 -
43,000,000
3,122,353 1,919,667
576,670,875
(18,351,208)
-
-

17,921,419 10,549,261
7,372,158
345,548 211,150 134,398
302,569 302,569
-
10,281,983 -
10,281,983
3,618,823 1,353,197
581,678,376
(23,985,208)
-
-

17,392,802 10,550,793
6,842,009
690,246 197,969 492,277
502,711 502,711
-
-
3,618,823 1,235,668
576,388,272
8,987,481
(5,925,802) 142,566
(5,783,236)

528,617 (1,532)
530,149
(344,698) 13,181
(357,879)
(200,142) (200,142)
-
10,281,983 -
10,281,983
117,529
5,290,104
32,972,689
(5,925,802) 142,566
(5,783,236)

NET CHANGE IN FUND BALANCES

FUND BALANCES - BEGINNING OF FISCAL YEAR

FUND BALANCES - END OF FISCAL YEAR

$

(18,351,208) 82,017,689 63,666,481 $

(23,985,208) 82,017,689 58,032,481 $

3,204,245 82,017,689 85,221,934 $

27,189,453 -
27,189,453

55

OTHER SUPPLEMENTARY INFORMATION

Combining and Individual Fund Statements and Schedules: Combining Balance Sheet Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-major Governmental Funds Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual All Special Revenue Funds: Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Nonmajor Special Revenue Funds Combined: Title I Fund Title II Fund Title VI-B Fund Lottery Grants Fund Other Federal Programs Fund Other Special Projects Fund
Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Capital Projects Fund
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 or committed for specific purposes.
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 mathematics 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 quality 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 Grants 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.
Capital Projects Funds
Capital Projects Funds are used to account for financial resources restricted, committed or assigned to expenditures for the acquisition or construction of capital assets.
Education Reform Success (ERS) Capital Projects 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.

ATLANTA INDEPENDENT SCHOOL SYSTEM
Combining Balance Sheet Nonmajor Governmental Funds
June 30, 2013

ASSETS Cash and cash equivalents Due from other governments Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts payable Due to other governments Due to other funds
TOTAL LIABILITIES
FUND BALANCES Restricted: Other state and local programs School construction Assigned: Local school programs
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES

Title I Fund

$

-

8,798,127

699,523

$ 9,497,650

Title II Fund

$

-

1,016,247

13,429

$ 1,029,676

Special Revenue Funds

Title VI-B Fund

Lottery Grants Fund

$

-$

-

3,435,913

-

71,273

276,130

$ 3,507,186 $ 276,130

Other Federal Programs
Fund

$

-

3,159,813

305,183

$ 3,464,996

Other Special Projects Fund

$

-

1,600,380

6,285,011

$ 7,885,391

Capital Project Fund
Education Reform
Success, Inc. Fund

$

134,296

-

831,397

$

965,693

Total Nonmajor Governmental
Funds

$

134,296

18,010,480

8,481,946

$ 26,626,722

$

-$

-$

-$

-

-

23,413

9,497,650

1,029,676

3,483,773

9,497,650

1,029,676

3,507,186

-$ 1,626 274,504
276,130

13,445 $ -
3,451,551
3,464,996

7,798 $ -
329,320
337,118

-$

21,243

-

25,039

339,408

18,405,882

339,408

18,452,164

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

5,183,951

-

-

-

2,364,322

-

7,548,273

$ 9,497,650 $ 1,029,676 $ 3,507,186 $ 276,130 $ 3,464,996 $ 7,885,391 $

626,285
-
626,285

5,183,951 626,285
2,364,322
8,174,558

965,693 $ 26,626,722

56

ATLANTA INDEPENDENT SCHOOL SYSTEM
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2013

REVENUES State revenues Federal revenues Other
TOTAL REVENUES
EXPENDITURES Current:
Instruction Support services
Pupil services Improvement of instructional services Educational media services Federal grant administration General administration School administration Business administration Maintenance and operation of facilities Student transportation Central support Other support services Nutrition Capital outlays Debt service: Interest and fiscal charges
TOTAL EXPENDITURES
DEFICIENCY OF REVENUES UNDER EXPENDITURES
OTHER FINANCING SOURCES Transfers in
TOTAL OTHER FINANCING SOURCES
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING OF FISCAL YEAR
FUND BALANCES, END OF FISCAL YEAR

Title I Fund

$

-

32,134,559

-

32,134,559

Title II Fund

$

-

4,782,916

-

4,782,916

Special Revenue Funds

Title VI-B Fund

Lottery Grants Fund

$

-

10,400,268

-

10,400,268

$ 2,160,856 -
2,160,856

Other Federal Programs
Fund

$

-

15,049,417

-

15,049,417

Other Special Projects Fund
$ 326,634 483,749
9,351,958
10,162,341

Capital Project Fund
Education Reform
Success, Inc. Fund

$

-

3,659,230

48,100

3,707,330

Total Nonmajor Governmental
Funds

$

2,487,490

66,510,139

9,400,058

78,397,687

13,026,685
385,259 13,408,848
1,392,651 1,984,655
7,804 32,605
352,803
23,941 1,519,308
-
-
32,134,559

800,666
3,782,670
194 183,109
16,277 -
-
4,782,916

6,189,414
1,836,814 601,210 18,507 712,984 -
1,041,339 -
-
-
10,400,268

2,428,946
5,887 -
-
2,434,833

3,840,899
338,339 8,593,400
379,075 767,108
1,207 11,020
122,659
587,948 407,762
-
-
15,049,417

1,366,431
437,359 7,122,585
3,467 -
465,564 986
169,348 3,468
121,400 1,755,261
214,045 -
-
11,659,914

-
43,083,742
3,659,230
46,742,972

27,653,041
3,003,658 33,508,713
3,661 1,973,342 3,930,311
9,997 212,973
3,468 1,638,201 1,795,479 2,321,301
407,762 43,083,742
3,659,230
123,204,879

-

-

-

(273,977)

-

(1,497,573)

(43,035,642)

(44,807,192)

-

-

-

273,977

-

651,825

-

925,802

-

-

-

273,977

-

651,825

-

925,802

-

-

-

-

-

(845,748)

(43,035,642)

(43,881,390)

-

-

-

-

-

8,394,021

43,661,927

52,055,948

$

-$

-$

-$

-$

- $ 7,548,273 $

626,285 $

8,174,558

57

ATLANTA INDEPENDENT SCHOOL SYSTEM All Special Revenue Funds Combined
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES State revenues Federal revenues Other
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
Federal grant administration 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
Continued

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$

3,281,690 $

3,173,029 $

111,041,723

133,891,884

10,399,986

14,305,330

124,723,399

151,370,243

2,487,490 $

(685,539)

62,850,909

(71,040,975)

9,351,958

(4,953,372)

74,690,357

(76,679,886)

50,393,910 19,300,595 31,093,315
4,897,496 2,977,737 1,919,759
44,403,350 16,627,732 27,775,618
9,900 9,900
-
7,761,260 5,366,632 2,394,628
5,631,951 685,649
4,946,302
775,166 11,660
763,506
805,962 12,044
793,918
503,652 14,939
488,713
6,059,847 773,457
5,286,390
1,007,240 909,819 97,421

53,529,659 27,703,614 25,826,045
4,364,913 2,109,437 2,255,476
67,200,883 38,326,074 28,874,809
3,767 -
3,767
8,070,296 6,108,877 1,961,419
5,085,893 381,836
4,704,057
574,644 11,667
562,977
779,008 23,699
755,309
498,641 16,790
481,851
5,269,123 830,698
4,438,425
1,060,621 971,764 88,857

27,653,041 16,994,321 10,658,720
3,003,658 1,288,081 1,715,577
33,508,713 24,249,046
9,259,667
3,661 -
3,661
1,973,342 1,755,904
217,438
3,930,311 1,078,283 2,852,028
9,997 -
9,997
212,973 43,625
169,348
3,468 -
3,468
1,638,201 958,101 680,100
1,795,479 511,161
1,284,318

25,876,618 10,709,293 15,167,325
1,361,255 821,356 539,899
33,692,170 14,077,028 19,615,142
106 -
106
6,096,954 4,352,973 1,743,981
1,155,582 (696,447) 1,852,029
564,647 11,667
552,980
566,035 (19,926) 585,961
495,173 16,790
478,383
3,630,922 (127,403) 3,758,325
(734,858) 460,603 (1,195,461)

58

ATLANTA INDEPENDENT SCHOOL SYSTEM All Special Revenue Funds Combined
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

Other support services Salary Non-salary
Nutrition Salary Non-salary
TOTAL EXPENDITURES DEFICIENCY OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES
Transfers in
TOTAL OTHER FINANCING SOURCES
NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF FISCAL YEAR FUND BALANCES - END OF FISCAL YEAR

ORIGINAL BUDGET
2,096,700 671,307
1,425,393
376,965 -
376,965
124,723,399
-

FINAL BUDGET
4,427,520 2,849,545 1,577,975
505,275 -
505,275
151,370,243
-

ACTUAL 2,321,301 1,443,020 878,281
407,762 -
407,762
76,461,907
(1,771,550)

VARIANCE POSITIVE (NEGATIVE)
2,106,219 1,406,525
699,694
97,513 -
97,513
74,908,336
(1,771,550)

-

-

925,802

925,802

-

-

925,802

925,802

-

-

(845,748)

8,394,021

8,394,021

8,394,021

$

8,394,021 $

8,394,021 $

7,548,273 $

(845,748) -
(845,748)

59

ATLANTA INDEPENDENT SCHOOL SYSTEM Title I Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES Federal revenues
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$ 61,095,168 $ 73,336,387 $ 32,134,559 $ (41,201,828)

61,095,168

73,336,387

32,134,559

(41,201,828)

39,223,730 9,826,109
29,397,621

33,653,247 12,960,495 20,692,752

13,026,685 6,645,710 6,380,975

20,626,562 6,314,785
14,311,777

Support services Pupil services Salary Non-salary

1,428,013 1,166,602
261,411

323,046 275,778 47,268

385,259 372,527 12,732

(62,213) (96,749) 34,536

Improvement of instructional services Salary Non-salary

11,472,229 6,490,809 4,981,420

25,611,330 20,063,953
5,547,377

13,408,848 12,448,706
960,142

12,202,482 7,615,247 4,587,235

Federal grant administration Salary Non-salary

578,023 345,023 233,000

3,857,789 3,141,955
715,834

1,392,651 1,322,622
70,029

2,465,138 1,819,333
645,805

General administration Salary Non-salary

2,623,692 605,654
2,018,038

2,851,605 -
2,851,605

1,984,655 -
1,984,655

866,950 -
866,950

School administration Salary Non-salary

732,392 -
732,392

533,557 -
533,557

7,804 -
7,804

525,753 -
525,753

Business administration Salary Non-salary

12,044 12,044
-

-

32,605

(32,605)

-

32,605

(32,605)

-

-

-

Student transportation Salary Non-salary

3,882,153 -
3,882,153

2,958,132 57,240
2,900,892

352,803 -
352,803

2,605,329 57,240
2,548,089

Central support Salary Non-salary

33,527 33,527
-

-

23,941

(23,941)

-

23,941

(23,941)

-

-

-

Other support services Salary Non-salary

1,109,365 332,521 776,844

3,547,681 2,717,125
830,556

1,519,308 1,353,995
165,313

2,028,373 1,363,130
665,243

TOTAL EXPENDITURES

NET CHANGE IN FUND BALANCES

FUND BALANCES - BEGINNING OF FISCAL YEAR

FUND BALANCES - END OF FISCAL YEAR

$

61,095,168 -$

73,336,387 -$

32,134,559 -$

41,201,828 -

60

ATLANTA INDEPENDENT SCHOOL SYSTEM Title II Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES Federal revenues
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$

2,698,756 $

9,285,891 $

4,782,916 $ (4,502,975)

2,698,756

9,285,891

4,782,916

(4,502,975)

739,883 739,883
-

2,135,288 1,990,429
144,859

800,666 655,877 144,789

1,334,622 1,334,552
70

Support services Pupil services Salary Non-salary

-

-

-

-

-

-

-

-

-

-

-

-

Improvement of instructional services Salary Non-salary

1,904,264 705,240
1,199,024

6,756,915 4,166,346 2,590,569

3,782,670 2,270,632 1,512,038

2,974,245 1,895,714 1,078,531

Educational media services Salary Non-salary

-

300

194

106

-

-

-

-

-

300

194

106

Federal grant administration Salary Non-salary

-

366,678

183,109

183,569

-

320,678

161,273

159,405

-

46,000

21,836

24,164

Central support Salary Non-salary

54,609 25,401 29,208

26,710 19,710
7,000

16,277 16,277
-

10,433 3,433 7,000

TOTAL EXPENDITURES

NET CHANGE IN FUND BALANCES

FUND BALANCES - BEGINNING OF FISCAL YEAR

FUND BALANCES - END OF FISCAL YEAR

$

2,698,756 -$

9,285,891 -$

4,782,916 -$

4,502,975 -

61

ATLANTA INDEPENDENT SCHOOL SYSTEM Title VI-B Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES Federal revenues
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$

9,573,801 $ 12,792,877 $ 10,400,268 $ (2,392,609)

9,573,801

12,792,877

10,400,268

(2,392,609)

4,760,746 4,329,643
431,103

7,265,026 4,328,189 2,936,837

6,189,414 3,172,991 3,016,423

1,075,612 1,155,198
(79,586)

Support services Pupil services Salary Non-salary

2,469,788 1,170,755 1,299,033

3,137,570 1,133,390 2,004,180

1,836,814 262,010
1,574,804

1,300,756 871,380 429,376

Improvement of instructional services Salary Non-salary

1,270,184 1,220,484
49,700

1,297,839 1,248,139
49,700

601,210 601,210
-

696,629 646,929
49,700

Federal grant administration Salary Non-salary

-

-

18,507

(18,507)

-

-

18,507

(18,507)

-

-

-

-

General administration Salary Non-salary

75,889 75,889
-

95,247 75,889 19,358

712,984 712,984
-

(617,737) (637,095)
19,358

Maintenance and operation of facilities Salary Non-salary

14,000 14,000
-

14,000 14,000
-

-

14,000

-

14,000

-

-

Student transportation Salary Non-salary

983,194 773,457 209,737

983,195 773,458 209,737

1,041,339 958,101 83,238

(58,144) (184,643) 126,499

TOTAL EXPENDITURES

NET CHANGE IN FUND BALANCES

FUND BALANCES - BEGINNING OF FISCAL YEAR

FUND BALANCES - END OF FISCAL YEAR

$

9,573,801 -$

12,792,877 -$

10,400,268 -$

2,392,609 -

62

ATLANTA INDEPENDENT SCHOOL SYSTEM Lottery Grants Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2013

REVENUES State revenues
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary
Support services Pupil services Salary
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES Transfers in
TOTAL OTHER FINANCING SOURCES

ORIGINAL BUDGET

FINAL BUDGET

$

2,186,129 $

2,218,029

2,186,129

2,218,029

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

2,160,856 $

(57,173)

2,160,856

(57,173)

2,186,129 2,129,443
56,686
2,186,129
-
-

2,218,029 2,108,955
109,074
2,218,029
-
-

2,428,946 2,356,465
72,481
5,887 5,887 2,434,833
(273,977)
273,977 273,977

(210,917) (247,510)
36,593
(5,887) (5,887) (216,804)
(273,977)
273,977 273,977

NET CHANGE IN FUND BALANCES

-

-

-

-

FUND BALANCES - BEGINNING OF FISCAL YEAR

-

-

-

-

FUND BALANCES - END OF FISCAL YEAR

$

-$

-$

-$

-

63

ATLANTA INDEPENDENT SCHOOL SYSTEM
Other Federal Programs Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2013

REVENUES State revenues Federal 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
Federal grant administration 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
TOTAL EXPENDITURES

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$

550,000 $

550,000 $

-$

(550,000)

36,410,610

37,950,729

15,049,417

(22,901,312)

36,960,610

38,500,729

15,049,417

(23,451,312)

1,619,872 1,083,865
536,007
367,233 203,448 163,785
24,489,938 7,188,318 17,301,620
9,900 9,900
-
7,183,237 5,021,609 2,161,628
1,794,497 4,106
1,790,391
9,114 -
9,114
253 -
253
939 939
-
281,827 -
281,827
6,500 6,500
-
820,335 186,287 634,048
376,965 -
376,965
36,960,610

6,075,236 5,166,953
908,283
599,433 470,480 128,953
24,933,476 10,777,062 14,156,414
-
3,845,829 2,646,244 1,199,585
1,500,362 -
1,500,362
8,266 -
8,266
24,271 23,699
572
5,190 2,790 2,400
357,455 -
357,455
-
645,842 37,417 608,425
505,275 -
505,275
38,500,635

3,840,899 3,140,923
699,976
338,339 271,548 66,791
8,593,400 5,879,808 2,713,592
-
379,075 253,502 125,573
767,108 -
767,108
1,207 -
1,207
11,020 11,020
-
-
122,659 -
122,659
-
587,948 -
587,948
407,762 -
407,762
15,049,417

2,234,337 2,026,030
208,307
261,094 198,932 62,162
16,340,076 4,897,254 11,442,822
-
3,466,754 2,392,742 1,074,012
733,254 -
733,254
7,059 -
7,059
13,251 12,679
572
5,190 2,790 2,400
234,796 -
234,796
-
57,894 37,417 20,477
97,513 -
97,513
23,451,218

NET CHANGE IN FUND BALANCES

FUND BALANCES - BEGINNING OF FISCAL YEAR

FUND BALANCES - END OF FISCAL YEAR

$

-$

94 -
94 $

-

(94)

-

-

-$

(94)

64

ATLANTA INDEPENDENT SCHOOL SYSTEM
Other Special Projects Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2013

REVENUES State revenues Federal revenues Other
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary
Support services Pupil services Salary Non-salary
Improvement of instructional services Salary Non-salary
Educational media services 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
TOTAL EXPENDITURES

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$

545,561 $

405,000 $

1,263,388

526,000

10,399,986

14,305,330

12,208,935

15,236,330

326,634 $ 483,749 9,351,958
10,162,341

(78,366) (42,251) (4,953,372)
(5,073,989)

1,863,550 1,191,652
671,898
632,462 436,932 195,530
5,266,735 1,022,881 4,243,854
-
1,137,873 -
1,137,873
33,660 11,660 22,000
793,665 -
793,665
488,713 -
488,713
912,673 -
912,673
912,604 844,391
68,213
167,000 152,499
14,501
12,208,935

2,182,833 1,148,593 1,034,240
304,864 229,789
75,075
8,601,323 2,070,574 6,530,749
3,467 -
3,467
638,679 305,947 332,732
32,821 11,667 21,154
754,737 -
754,737
479,451 -
479,451
970,341 -
970,341
1,033,911 952,054 81,857
233,997 95,003
138,994
15,236,424

1,366,431 1,022,355
344,076
437,359 376,109
61,250
7,122,585 3,048,690 4,073,895
3,467 -
3,467
465,564 365,299 100,265
986 -
986
169,348 -
169,348
3,468 -
3,468
121,400 -
121,400
1,755,261 470,943
1,284,318
214,045 89,025
125,020
11,659,914

816,402 126,238 690,164
(132,495) (146,320)
13,825
1,478,738 (978,116) 2,456,854
-
173,115 (59,352) 232,467
31,835 11,667 20,168
585,389 -
585,389
475,983 -
475,983
848,941 -
848,941
(721,350) 481,111 (1,202,461)
19,952 5,978
13,974
3,576,510

DEFICIENCY OF REVENUES UNDER EXPENDITURES
OTHER FINANCING SOURCES Transfers in

-

(94)

(1,497,573)

(1,497,479)

-

-

651,825

651,825

TOTAL OTHER FINANCING SOURCES

-

-

651,825

651,825

NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF FISCAL YEAR FUND BALANCES - END OF FISCAL YEAR

-

(94)

(845,748)

8,394,021

8,394,021

8,394,021

$

8,394,021 $

8,393,927 $

7,548,273 $

(845,654) -
(845,654)

65

ATLANTA INDEPENDENT SCHOOL SYSTEM
Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2013

REVENUES Sales tax income State revenues Investment income
TOTAL REVENUES
EXPENDITURES Current:
Instruction Salary Non-salary

ORIGINAL BUDGET

FINAL BUDGET

ACTUAL

VARIANCE POSITIVE (NEGATIVE)

$ 73,280,176 $ -
73,280,176

241,146,743 $ -
241,146,743

85,979,568 135,650 45,266
86,160,484

$ (155,167,175) 135,650 45,266
(154,986,259)

10,099 -
10,099

10,099 -
10,099

-

10,099

-

-

-

10,099

Support services General administration Salary Non-salary

132,956 -
132,956

2,182,956 -
2,182,956

1,085,826 -
1,085,826

1,097,130 -
1,097,130

Business administration Salary Non-salary

1,074,300 -
1,074,300

2,171,221 146,921
2,024,300

229,868 229,868
-

1,941,353 (82,947)
2,024,300

Maintenance and operation of facilities Salary Non-salary

1,593,478 -
1,593,478

7,945,615 -
7,945,615

4,820,089 -
4,820,089

3,125,526 -
3,125,526

Student transportation Salary Non-salary

1,040,329 -
1,040,329

2,340,329 -
2,340,329

484,556 -
484,556

1,855,773 -
1,855,773

Central support Salary Non-salary

14,636,993 -
14,636,993

14,636,993 -
14,636,993

4,116,069 -
4,116,069

10,520,924 -
10,520,924

Debt service: Principal retirements Interest

-

5,920,000

5,920,000

-

-

3,064,956

1,790,062

1,274,894

Capital outlays: Facilities acquisition and construction Salary Non-salary

54,792,021 3,752
54,788,269

207,874,574 693,590
207,180,984

74,695,389 490,095
74,205,294

133,179,185 203,495
132,975,690

Other outlays Salary Non-salary
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

73,280,176
-

246,146,743
(5,000,000)

93,141,859
(6,981,375)

153,004,884
(1,981,375)

OTHER FINANCING SOURCES

Transfers in

-

NET CHANGE IN FUND BALANCES

-

FUND BALANCES - BEGINNING OF FISCAL YEAR

133,735,552

FUND BALANCES - END OF FISCAL YEAR

$ 133,735,552 $

5,000,000

5,000,000

-

(1,981,375)

133,735,552

133,735,552

133,735,552 $ 131,754,177 $

(1,981,375)
(1,981,375)

66

ATLANTA INDEPENDENT SCHOOL SYSTEM Statement of Changes in Assets and Liabilities Agency Fund For the Fiscal Year Ended June 30, 2013

ASSETS Cash and cash equivalents
LIABILITIES Due to local schools and student groups

Balance July 01, 2012

Additions

Deductions

Balance June 30, 2013

$

621,016 $

1,767,433 $

(1,973,514) $

414,935

$

621,016 $

1,767,433 $

(1,973,514) $

414,935

67

Quality Basic Education Programs Program Expenditures General Fund Quality Basic Education Project (QBE) - Schedule of Allotments and Expenditures by Program Lottery Programs - Schedule of Expenditures by Object Schedule of Approved Local Options Sales Tax Projects Schedule of State Revenues

Atlanta Independent School System QUALITY BASIC EDUCATION PROGRAMS -
PROGRAM EXPENDITURES For the Fiscal Year Ended June 30, 2013
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.
68

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, 2013

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)

$

24,760,115

$

2,145,537

51,645,825

6,558,136

23,454,400

4,787,120

875,612

34,287,811

28,955,282

6,433,361

2,109,804 2,507,782 15,882,919 3,965,921 234,189 9,392,045 3,052,355 2,627,553
2,915,872

226,591,639

6,696,179 1,144,104

SALARIES

ELIGIBLE QBE PROGRAM COSTS
OPERATIONS

TOTAL

20,678,597

$

1,379,122

61,834,095

17,342,390

19,190,766

1,135,788

45,440

37,401,984

45,642,097

9,796,818

36,940,275 1,132,103 2,195,809
9,830,803 3,263,819 1,495,966
4,577,999

273,883,871

8,140,183 1,954,708

-

$

-

1,368,213

-

-

-

-

-

516,493

673,945

600,016

-

1,659,083

-

-

-

-

10,674

127,464

760

17,636

20,678,597 1,379,122 63,202,308 17,342,390 19,190,766 1,135,788
45,440 37,918,477 46,316,042 10,396,834
38,599,358 1,132,103 2,195,809
9,841,477 3,391,283 1,496,726 4,595,635

4,974,284

278,858,155

693,505 293,166

8,833,688 2,247,874

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

$

234,431,922

$ 283,978,762
452,333 12,877,697
200,726 -
67,430 $ 297,576,948

$

5,960,955

4,912,823
$ 10,873,778

$ 289,939,717
452,333 17,790,520
200,726 -
67,430 $ 308,450,726

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

69

ATLANTA INDEPENDENT SCHOOL SYSTEM Lottery Programs
Schedule of Expenditures by Object For the Fiscal Year Ended June 30, 2013

Salaries Employee benefits Other purchased services Materials and supplies

Pre-Kindergarten Program
$ 1,803,422 558,931 53,224 19,256
$ 2,434,833

70

PROJECT
SPLOST III DeKalb County

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
FISCAL YEAR ENDED JUNE 30, 2013

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT FISCAL YEAR (3)

AMOUNT EXPENDED
IN PRIOR FISCAL YEARS (4)

PROJECT STATUS

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, Springdale
Fulton County

20,511,000

24,059,277

2,002,373

22,056,904

Ongoing

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
SPLOST IV
Fulton County

552,357,776

466,741,223

62,129,739

348,111,889

Ongoing

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

499,962,831

499,962,831

19,425,135

-

Ongoing

Capital outlay projects including new school construction, classroom additions, renovations, infrastructure improvements, upgrading security system, technology improvements,relocations, site preparation, providing staff development, and instructional
$

19,500,463 1,092,332,070 $

19,500,463 1,010,263,794 $

965,031 84,522,278 $

370,168,793

Ongoing

(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 fiscal years related to the above projects.
(5) The SPLOST III Amount Expended in Prior Fiscal Years (4) balances have been adjusted for reclassication of Springdale and Morningside expenditures from Fulton and DeKalb county.

71

ATLANTA INDEPENDENT SCHOOL SYSTEM SCHEDULE OF STATE REVENUE
FISCAL YEAR ENDED JUNE 30, 2013

AGENCY/FUNDING
GRANTS Georgia Department of Early Care and Learning Bright from the Start (Lottery) 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 Bus Replacement Nursing Services Austerity Reduction Other State Programs Charter Schools - Facilities CTAE - Apprenticeship CTAE - CTE Extended Day CTAE - Supervision Math and Science Supplement Preschool Handicapped State Grant Residential Treatment Centers Grant Teacher's Retirement
Technical and Adult Education, Georgia Department of Adult Education
Georgia State Financing and Investment Commission Young Middle School Construction Project

GOVERNMENTAL FUND TYPES

GENERAL FUND

CAPITAL PROJECTS
FUND

NONMAJOR GOVERNMENTAL
FUNDS

$

-$

-

$

2,160,856

14,125,045 1,676,485
28,841,442 5,884,390
12,617,222 3,824,292 172,858
19,738,762 16,551,383
3,526,278 15,404,612
5,747,642 1,990,519 1,492,521 1,744,205 3,879,219 1,181,228
672,865
3,077,402 8,853,397 8,478,628
3,041,064 350,986 867,129
(22,578,518)
603,225 37,641
122,783 56,244
667,907 483,985 376,633 200,726
-
-

-
-
-
-
-
-
135,650

-
-
-
-
-
326,634
-

TOTAL

$

2,160,856

14,125,045 1,676,485
28,841,442 5,884,390
12,617,222 3,824,292 172,858
19,738,762 16,551,383
3,526,278 15,404,612
5,747,642 1,990,519 1,492,521 1,744,205 3,879,219 1,181,228
672,865 -
3,077,402 8,853,397 8,478,628
3,041,064 350,986 867,129 (22,578,518) 603,225 37,641 122,783 56,244 667,907 483,985 376,633 200,726
326,634
135,650

$ 143,710,200

$

135,650

$

2,487,490

$ 146,333,340

72

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

7 - 13

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.

Demographic and Economic Information

14 - 22

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.

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 POSITION BY COMPONENT LAST TEN FISCAL YEARS Schedule 1

Fiscal Year Ended June 30,
Governmental Activities Net investment in capital assets Restricted Unrestricted
Total Governmental Activities Net Position

2004

2005

2006

2007

2008

2009

2010

2011

Restated 2012

2013

$ 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

$ 893,683,701 $ 854,305,957

106,980,587

182,517,605

157,963,991

191,270,394

1,158,628,279

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

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

$ 1,171,493,160 116,028,486 95,879,455
1,383,401,101

$ 1,187,165,191 119,946,096 106,598,064
1,413,709,351

Business-Type Activities Net investment in capital assets Unrestricted (deficit)
Total Business-Type Activities Net Position

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

4,893,181 4,893,181

141,550 5,481,550 5,623,100

Primary Government Activities Net investment in capital assets Restricted Unrestricted
Total Primary Government Activities Net Position

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

854,305,957

106,980,587

182,517,605

147,999,612

191,755,329

$ 1,157,167,952 $ 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

1,171,493,160 116,028,486 100,772,636
$ 1,388,294,282

1,187,306,741 119,946,096 112,079,614
$ 1,419,332,451

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013.

73

Fiscal Year Ended June 30, Expenses Governmental Activities
Instruction Pupil Services Improvement of instructional services Educational media Federal grant administration 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 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 Pupil services School administration Maintenance and operation of facilities Other support services Nutrition
Operating Grants and Contributions Instruction Pupil services Improvement of instructional services Educational media Federal grant administration 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
Capital Grants and Contributions Instruction Improvement of instructional services 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 POSITION LAST TEN FISCAL YEARS Schedule 2

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$

424,091,453 $

435,352,357 $

21,890,649

24,009,140

21,135,004

20,011,373

6,746,870

7,087,158

-

-

21,539,082

18,908,200

24,230,800

23,247,406

5,482,136

6,685,755

61,354,665

48,321,284

15,189,582

14,678,214

29,129,882

26,204,018

-

-

-

423,301

-

-

690,836

538,613

204,969

-

631,685,928

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

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

405,995,101 $ 29,543,231 38,215,985
8,958,197 1,118,206 17,882,230 30,826,584 22,610,577 97,084,662 29,770,071 28,379,529
13,035,152
358,681 6,418,786
730,196,992

426,037,447 25,105,338 42,917,654 8,869,786 1,973,342 14,324,803 40,648,067 15,157,828 80,783,550 24,892,766 23,304,350 3,011,547 910,473 5,851,816 -
713,788,767

26,552,371 26,552,371

25,772,181 25,772,181

$

658,238,299 $

651,239,000 $

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

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 $

22,705,598 22,705,598
752,902,590 $

23,680,487 23,680,487
737,469,254

$

-$

-$

-

-

-

-

-

-

-

-

-

-

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 -

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
-

2,717,420 -
222,121,795

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

3,490 $
996,731 724,400
-
110,219,318 11,780,166 30,489,786 1,118,206 7,689,306 7,325,735 4,105,440 22,290,143 8,218,788 7,961,419 4,210,388 358,681 2,520,803
8,803,308 -
228,816,108

2,591 3,373,883
1,158,726
113,724,544 8,489,114 34,826,333 2,223,907 1,973,342 6,213,208 10,237,170 3,227,896 18,353,454 6,767,808 5,947,248 2,467,522 407,762 3,659,230 3,904,228 135,500 135,650 227,229,116

1,966,090

3,566,337

20,250,537

18,088,139

22,216,627

21,654,476

$

244,338,422 $

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 $

1,638,841
23,774,887 25,413,728 254,229,836 $

1,279,087
23,131,319 24,410,406 251,639,522

74

ATLANTA INDEPENDENT SCHOOL SYSTEM CHANGE IN NET POSITION 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 Depreciation Total Governmental Activities Net (Expenses)/Revenues

2004

2005

$ (233,971,599) $ (262,144,400) $

(15,331,861)

(15,595,137)

(3,578,541)

(3,563,994)

(6,715,916)

(6,904,512)

(17,782,298)

(14,756,588)

(23,848,955)

(23,008,702)

(5,482,136)

(6,319,530)

(61,295,698)

(48,293,773)

(14,809,909)

(13,269,199)

(28,375,655)

(25,098,479)

-

-

2,524,240

1,021,413

-

-

(690,836)

(538,613)

(204,969)

-

(409,564,133)

(418,471,514)

Business-Type Activities Food Services
Total Business-Type Activities Net (Expenses)/Revenues

(4,335,744) (4,335,744)

(4,117,705) (4,117,705)

Total Primary Government Activities Net Expense

$ (413,899,877) $ (422,589,219) $

General Revenues and Other Charges in Net Position 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 Extraordinary items Total Governmental Activities

$

373,487,358 $

377,215,701 $

-

-

85,604,946

91,202,366

-

-

1,995,307

4,658,043

3,786,290

5,900,535

-

-

(1,592,485)

(1,796,292)

-

-

463,281,416

477,180,353

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

-

-

1,592,485

1,796,292

-

-

1,592,485

1,796,292

$

464,873,901 $

478,976,645 $

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

$

53,717,283 $

58,708,839 $

(2,743,259)

(2,321,413)

$

50,974,024 $

56,387,426 $

Source: Notes:

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013
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. Decrease in Sales Tax revenue in fiscal year 2012 due in part to the economic downturn.

2006

2007

(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)

(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)

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

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

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

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

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

(9,535) 16,416,074
79,445 16,485,984 589,169,897 $

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

188,959,728 $ 18,884,926
207,844,654 $

75

2008

2009

2010

2011

2012

2013

(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)

(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)

(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)

(286,968,985) $ (17,763,065) (7,726,199) (8,958,197) (10,192,924) (23,500,849) (18,505,137) (73,797,788) (21,551,283) (20,418,110) (8,100,364) (3,897,983) (501,380,884)

(308,406,084) (13,242,341) (7,955,821) (6,645,879) (8,111,595) (30,410,897) (11,929,932) (61,135,720) (18,124,958) (17,357,102) (544,025) (502,711) (2,192,586) (486,559,651)

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

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

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

128,089 128,089
(462,197,465) $

2,708,130 2,708,130
(498,672,754) $

729,919 729,919
(485,829,732)

470,036,120 $ 1,153,847
115,735,907 1,347,241 13,648,335 6,855,522 (9,400,000) -
599,376,972

479,629,504 $ 1,262,460
108,957,224 4,328,538 6,419,960 15,296,550 528,432 -
616,422,668

498,921,379 $ 1,271,739 63,438,076 1,306,947 230,484 10,583,834 897,453 -
576,649,912

469,310,346 $ 1,174,306 52,901,075 1,310,441 124,833 5,298,494 614,466 -
530,733,961

414,313,637 $ 1,111,471 93,699,732 11,613,166 134,088 -
520,872,094

416,364,236 1,910,601 85,376,919 20,946,374 198,096 (7,928,325)
516,867,901

9,400,000
9,400,000 608,776,972 $

616,422,668 $

8,202 -
8,202 576,658,114 $

17,068 -
17,068 530,751,029 $

1,407 -
1,407 520,873,501 $

516,867,901

69,465,311 $ 1,945,263
71,410,574 $

57,907,825 $ 1,487,864
59,395,689 $

16,147,128 $ 65,688
16,212,816 $

68,408,407 $ 145,157
68,553,564 $

19,491,818 $ 2,709,537
22,201,355 $

30,308,250 729,919
31,038,169

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

2004

2005

2006

2007

2008

2009

2010

$ 11,159,630 $ 7,325,684 $ 13,692,102 $ 21,785,030 $ 20,198,038 $ 72,359,684 $ 33,799,205

37,292,448

68,098,575

73,372,473

91,809,975 131,566,427

85,541,272

75,928,012

48,452,078

75,424,259

87,064,575

113,595,005 151,764,465

157,900,956

109,727,217

70,077

70,078

22,216,154

103,139,827 168,623,662

149,939,551

136,951,993

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

$ 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

2012

2013

$

456,347 $ 1,023,447 $ 2,396,733

1,104,717

299,867

395,553

16,995,134

1,589,097

1,139,666

16,000,000

28,351,208

25,300,000

46,711,357

50,754,070

55,989,982

81,267,555

82,017,689

85,221,934

All Other Governmental Funds Nonspendable Restricted Assigned
Total All Other Governmental Funds

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

162,298,650
23,492,850 185,791,500

2,660,568 119,684,839
17,583,328 139,928,735

Total

$ 224,127,163 $ 267,809,189 $ 225,150,669

Source: Note:

Atlanta Independent School System Financial Report for previous years and fiscal year ended June 30, 2013. 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 2004-2010 is pre GASB 54. Fiscal Year 2011 is when the standard was implemented.

76

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

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 Federal grant administration 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 cgharges
Total Expenditures

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$ 365,523,133 $ 370,256,829 $ 369,492,043 $ 415,687,665 $ 471,313,094 $ 507,895,487 ########### $ 445,986,671 $ 445,177,849 $ 413,467,525

85,604,946

91,202,366

115,953,787

122,980,958

106,562,802

103,765,261 95,443,229

57,678,243

93,097,083

85,979,568

152,497,189

137,310,665

141,640,201

151,924,389

163,747,188

129,106,908 110,942,787 132,033,597 142,661,322

146,333,340

63,594,376

65,118,135

66,535,863

71,658,231

71,651,548

70,336,278 82,463,268

84,046,858

75,794,627

67,825,396

1,995,307

4,658,043

7,319,327

13,315,151

13,648,335

6,419,960

410,218

282,686

134,088

198,096

709,320

876,965

949,298

-

1,604,301

1,246,236

995,042

783,989

996,731

1,158,726

45,748

11,707

243,698

-

114,350

140,047

90,084

31,492

3,490

2,591

-

-

904,128

2,071,921

3,749,416

767,348

754,773

670,918

724,400

3,373,883

9,545,822

9,578,369

15,066,259

15,884,882

13,512,915

23,817,861 22,081,274

13,897,009

20,717,752

31,594,799

679,515,841

679,013,079

718,104,604

793,523,197

845,903,950

843,495,386 807,006,466 735,411,463 779,307,342

749,933,924

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
877,950,004

369,977,089
29,461,159 38,215,985
8,916,740 1,118,206 17,882,230 30,826,584 16,653,106 98,718,040 27,596,737 28,294,967 13,035,152
358,681 -
46,053,815
7,904,791 5,331,323
740,344,605

384,975,252
25,023,266 42,917,654
8,828,329 1,973,342 14,324,803 40,648,067 12,509,036 77,738,813 22,567,164 23,304,350 3,011,547
910,473 -
117,779,131
9,538,823 6,684,960
792,735,010

77

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 issuance of note payables 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

2004 (100,777,019)

2005 (8,080,095)

2006 37,100,563

2007 95,196,001

2008 83,204,756

2009 (36,704,149)

2010 (62,613,195)

2011 (142,538,541)

2012 38,962,737

2013 (42,801,086)

13,270,248 -
2,952,010 -
18,158,072 (19,750,557)
14,629,773

11,875,815 -
18,128,500 (19,924,792)
10,079,523

3,907,884 -
3,131,798 40,000
19,874,172 (19,874,172)
7,079,682

3,921,678 -
2,638,066 3,169,238 10,115,000 27,635,695 (44,051,769)
3,427,908

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

104,415,000 3,097,709 706,016 -
10,974,126 (10,974,126)
108,218,725

4,467,505 251,784 600,090 (600,090)
4,719,289

142,566 5,925,802 (5,925,802)
142,566

-

-

-

(1,981,811)

-

-

-

-

-

-

(86,147,246)

1,999,428

44,180,245

96,642,098

94,713,862

(35,771,169) (61,388,817) (34,319,816)

43,682,026

(42,658,520)

185,019,657

115,423,338

116,292,413

166,928,634

263,570,733

355,606,965

323,846,887

258,446,979

224,127,163

267,809,189

-

-

498,296

-

-

-

-

-

-

-

-

-

-

-

-

-

(4,011,091)

-

-

-

$ 98,872,411 $ 117,422,766 $ 160,970,954 $ 263,570,733 $ 358,284,596 $ 319,835,796 $ 258,446,979 $ 224,127,163 $ 267,809,189 $ 225,150,669

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

98,872,411 0.87%

117,422,766 0.72%

160,970,954 0.46%

263,570,733 0.60%

358,284,596 0.60%

319,835,796 1.26%

258,446,979 1.08%

224,127,163 1.30%

267,809,189 1.94%

225,150,669 2.46%

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013.

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.

78

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

Fiscal Year 2004

Instruction 1 359,444,397

2005

360,922,790

2006

328,733,992

2007

371,030,700

2008

346,276,544

2009

385,984,855

2010 2011

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

2012

354,658,932

2013

375,555,820

Pupil Services 15,259,936 15,635,773 20,886,301 10,491,218 16,742,092 20,045,172 19,336,072 24,014,862 23,126,330 22,019,608

General and Admin. Services 52,257,050 23,265,642 42,964,459 34,463,418 41,041,883 36,636,052 36,787,333 42,918,150 43,942,259 49,946,736

Business Services 2 68,966,619 65,285,140 85,768,267 87,064,138 140,274,918 133,410,584 136,817,366 133,081,824 136,262,413 105,425,858

Capital Outlay -
3,029,090 -
2,638,066 8,257,558
-

Other 3 37,341,209 34,293,523 31,105,339 31,071,989 39,184,963 42,590,714 40,770,273 39,937,929 46,644,887 23,440,250

Total

total current expenditures
% of change from prior year

total capital outlay total expenditures

% of change from % of change from

prior year

prior year

533,269,211

1.32%

0.00%

3.11%

502,431,958

-6.21%

100.00%

-5.78%

509,458,358

2.85%

0.00%

1.40%

536,759,529

5.16%

100.00%

5.36%

591,777,958

8.21%

68.05%

10.25%

618,667,377

5.83%

0.00%

4.54%

630,733,751

2.41%

0.00%

1.95%

610,014,011

-3.37%

0.00%

-3.29%

604,634,821

-2.12%

0.00%

-0.88%

576,388,272

-0.90%

0.00%

-4.67%

Source: Notes:

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013.
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.

79

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source:

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

Taxes 362,726,900 370,256,829 384,221,179 430,844,808 480,152,929 514,075,346 493,825,791 445,986,671 445,177,849 413,467,525

State Grants 141,848,193 124,113,881 133,943,879 145,105,716 154,892,058 122,514,004 107,237,545 127,235,844 140,134,932 143,710,200

Federal Grants 1,153,791 1,326,039 3,870,753 1,112,951 1,347,241 4,328,538
15,452,007 10,747,543
1,409,596 1,315,257

Other 8,086,373
13,084,964 15,437,607 19,069,158 17,353,301 16,548,410
9,262,323 7,841,900 14,525,430 26,882,771

Total 513,815,257 508,781,713 537,473,418 596,132,633 653,745,529 657,466,298 625,777,666 591,811,958 601,247,807 585,375,753

Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013.

Local 71% 73% 71% 72% 73% 78% 79% 75% 74% 71%

% of total

State

Federal

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%

23.31%

0.23%

24.55%

0.22%

Other 1.57% 2.57% 2.87% 3.20% 2.65% 2.52% 1.48% 1.33% 2.42% 4.59%

80

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

Fiscal Year Ended 4 December 31, 2004 December 31, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013

Residential Property 10,282,698,452 10,842,205,309 11,954,278,920 13,202,618,136 13,980,076,949 13,611,726,261 12,749,326,810 12,609,751,900 11,506,413,986 10,896,664,314

Commercial Property 7,433,699,007 7,255,025,020 8,069,483,015 9,744,120,546 13,067,992,615 11,379,465,585 11,746,535,282 10,924,151,062 11,148,297,009 10,752,062,104

Industrial Property 308,725,135 618,322,584 699,409,813 776,908,905 1,031,326,231 801,084,215 806,421,455 775,954,220 758,400,890 723,400,082

Other Property 1 1,626,457,946 1,590,005,363 1,621,488,855 1,595,456,173 1,615,241,347 1,758,938,922 1,542,422,321 1,525,316,851 1,528,992,043 1,658,974,465

Less Tax-Exempt Property 2
1,732,722,383 186,756,118
1,720,017,791 1,887,341,520 2,093,949,974 2,409,353,965 2,831,876,995 2,731,195,758 2,880,803,214 2,660,010,749

Total Taxable Assessed Value 3
17,918,858,157 20,118,802,158 20,624,642,812 23,431,762,240 27,600,687,168 25,141,861,018 24,012,828,873 23,103,978,275 22,061,300,714 21,371,090,216

Source: Notes:

Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013.
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 31.00% 30.09% 32.13% 31.61% 30.49% 30.49% 33.63% 33.63% 33.63% 33.68%

81

Fiscal Year Ended 4

General Levy

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

City Direct Rates

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

Total

December 31, 2004 December 31, 2005
June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013

8.25 7.64 7.53 7.09 7.12 7.12 10.24 10.24 10.24 10.24

20.87 20.42 22.64 22.64 21.64 21.64 21.64 21.64 21.64 21.64

0.50

1.27

0.11

31.00

0.50

1.43

0.10

30.09

0.50

1.41

0.05

32.13

0.50

1.33

0.05

31.61

0.50

1.18

0.05

30.49

0.50

1.18

0.05

30.49

0.50

1.20

0.05

33.63

0.50

1.20

0.05

33.63

0.50

1.20

0.05

33.63

0.50

1.20

0.10

33.68

1.05 2.05 0.99 0.96 0.83 0.83 1.00 0.88 0.88 1.224

4.20

11.59 (3)

0.07

5.00

11.58 (3)

0.06

5.00

11.40 (3)

0.06

5.00

10.28 (3)

0.06

5.00

10.28 (3)

0.60

5.00

10.28 (3)

0.00

5.00

10.28 (3)

0.00

5.00

10.28 (3)

0.00

5.00

10.28 (3)

0.27

5.00

10.21 (3)

0.00

0.25

11.91

0.25

11.89

0.25

11.72

0.25

10.58

0.25

10.59

0.25

10.53

0.25

10.53

0.25

10.53

0.25

10.80

0.25

10.46

Source: Notes:

Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013.
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.

82

Tax Payer
Development Authority of Fulton 2 Georgia Power Company Coca-Cola Company Post Apartment Homes BF ATL, LLC Sun Trust Plaza Association Georgia Pacific Company Hines One Atlantic Center LP Corporate Property Corporation IEP PEACHTREE, LLC
Total

ATLANTA INDEPENDENT SCHOOL SYSTEM PRINCIPAL PROPERTY TAXPAYERS
JUNE 30, 2012 AND NINE YEARS AGO 1 Schedule 9
2012

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

Taxable Assessed Value 1

$

643,688,110

278,823,406

158,398,076

154,833,309

76,031,870

96,136,850

78,922,880

72,158,940

87,837,149

72,222,920

$

1,719,053,510

Rank
1 2 3 4 8 5 7 10 6 9

Percentage of Total City Taxable Assessed Value
3.15% 1.36% 0.77% 0.47% 0.76% 0.43% 0.37% 0.35% 0.35% 0.39%
8.40%

2003

Tax Payer
Bell South Coca-Cola Company Georgia Power Company Post Apartment Homes Georgia Pacific Company CSC Associates Sun Trust Plaza Association One Ninety One Peachtree Association Sumito Life Realty, Inc. Atlanta Center LTD

Type of Business
Communication Service Marketing and Manufacturing Utility Service Residential Real Estate Pulp and Paper Manufacturing Commercial Real Estate Commercial Real Estate Commercial Real Estate Commercial Real Estate Commerical Real Estate

Taxable Assessed Value

$

311,493,227

162,670,820

138,389,311

116,171,210

90,792,750

87,338,740

82,038,220

76,478,710

63,170,490

58,083,570

Total

$

1,186,627,048

Sources: Notes:

2012 - Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012. 2003 - Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012.
1. Information for FY2013 was not available. 2. Development Authority of Fulton does not pay taxes but does temporarily hold property for others who pay taxes.

Rank
1 2 3 4 5 6 7 8 9 10

Percentage of Total City Taxable Assessed Value
1.69% 0.88% 0.75% 0.63% 0.49% 0.47% 0.44% 0.41% 0.34% 0.31%
6.41%

83

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, 2004

180,733,587

170,502,285

94.34%

9,752,408 2

December 31, 2005

178,703,068

160,301,279

89.70%

17,909,963 2

June 30, 2006

6,750,195

6,750,195

100.00%

-

June 30, 2007

179,606,933

164,976,460

91.85%

13,929,773 2

June 30, 2008

182,020,745

173,030,142

95.06%

7,984,231

June 30, 2009

198,377,854

190,475,498

96.02%

6,292,394

June 30, 2010

264,371,198

257,062,077

97.24%

4,473,563

June 30, 2011

240,585,957

234,894,781

97.63%

2,379,716

June 30, 2012

222,632,704

218,471,864

98.13%

1,394,434

June 30, 2013

219,176,582

214,493,637

97.86%

-

Source:

. Statistical section of the City of Atlanta, Georgia Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013.

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.

180,254,693 178,211,242
6,750,195 178,906,233 181,014,373 196,767,892 261,535,640 237,274,497 218,471,864 214,493,637

99.74% 99.72% 100.00% 99.61% 99.45% 99.19% 98.93% 98.62% 98.13% 97.86%

84

ATLANTA INDEPENDENT SCHOOL SYSTEM COMPARISON OF PROPERTY TAX MILLAGE RATES
AS OF JUNE 30, 2013 Last Ten Fiscal Years
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 21.74 20.00 18.90 23.98 21.95 18.50 20.55 24.50

MAINTENANCE AND
OPERATION 21.64 20.00 18.90 23.98 19.85 18.50 19.25 24.50

Sources: Note:

Department of Revenue, Tax Digest Millage Rates All tax rates are per $1000 assessed valuation.

DEBT SERVICE
0.10 0.00 0.00 0.00 2.10 0.00 1.30 0.00

85

Tax Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Sources:

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

Maintenance and
Operations 20.42 20.42 22.64 22.64 21.64 21.64 21.64 21.64 21.64 21.64

Sinking Bond Fund 0.10 0.10 0.054 0.054 0.054 0.054 0.054 0.054 0.100 0.100

Total Levy 20.524 20.524 22.694 22.694 21.694 21.694 21.694 21.694 21.740 21.740

Comments Decrease of 1.05 mills No change from 2004 Increase of 2.17 mills No change from 2006 Decrease of 1.000 mills No change from 2008 No change from 2009 No change from 2010 Increase of .046 mills No change from 2012

Atlanta Public Schools June 2010 Tax Levy Board Resolutions for tax year 2011 Georgia Department of Revenue for tax years 2004-2010, 2013

86

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

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

2012

114,764,042

17,398,125

2013

107,431,623

16,311,250

Capital Leases 11,248,793 6,862,557 4,219,951 5,159,414 23,618,868 18,255,388 13,998,496 9,682,005 7,905,594 6,018,646

Total Debt (2) 11,248,793
6,862,557 22,917,085 37,387,089 55,119,668 48,309,138 42,455,371 144,033,714 140,067,761 129,761,519

Estimated Actual Value of Taxable
Property (3) 17,918,858,157 20,118,802,158 20,624,642,812 23,431,762,240 27,600,687,168 25,141,861,018 24,012,828,873 23,103,978,275 22,061,300,714 21,371,090,216

Ratio of Total Debt to Est. Actual Value
0.06% 0.03% 0.11% 0.16% 0.20% 0.19% 0.18% 0.62% 0.63% 0.61%

Personal Income (4) 162,297,000 173,159,000 184,186,000 184,186,000 196,683,000 198,580,000 206,462,000 203,137,000 202,577,000 212,830,000

Ratio of Total Debt to Personal
Income 6.93% 3.96% 12.44% 20.30% 28.02% 24.33% 20.56% 70.90% 69.14%
60.97%

Source: Atlanta Independent School System Financial Reports for previous years and fiscal year ended June 30, 2013.

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.

87

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

ATLANTA INDEPENDENT SCHOOL SYSTEM

SCHOOL BUILDINGS, ACREAGE, AND CAPACITY

June 30, 2013

Schedule 14

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

Region Acres

Sq.Ft.

Planning Capacity @ 25/1

SF per Student

Core

Original

Classrooms Construction

Renovation

Actual Age (2013 basis)

W

4.9 75,058

750

100

30

1970

2001

43

W

9.5 49,925

525

95

21

1959

1999

54

E

4.0 68,440

600

114

24

1957

2000

56

W

4.5 78,561

825

95

33

1949

1999

64

N

4.0 83,653

900

93

36

2003

10

N

19.7 72,405

575

126

23

1971

42

N

10.0 86,138

875

98

35

1947

1994

66

N

9.8 59,941

625

96

25

1954

2009

59

E

8.3 85,836

875

98

35

2004

9

W

8.7 70,286

625

112

25

1995

18

E

5.0 63,806

650

98

26

1998

15

S

4.8 75,880

675

112

27

1996

17

W

3.7 88,417

1,000

88

40

1975

2000

38

W

8.7 85,562

600

143

24

1963

2011

50

W

21.0 88,980

900

99

36

2004

9

S

19.6 86,370

900

96

36

2003

10

E

5.3 98,959

500

198

20

1969

2009

44

N

8.0 83,782

700

120

28

1987

26

W

12.0 86,490

900

96

36

1972

1994

41

S

4.1 95,024

950

100

38

2005

8

N

8.0 82,176

775

106

31

1938

2003

75

S

4.5 72,402

825

88

33

1958

2000

55

N

7.0 88,921

725

123

29

1967

2000

46

S

7.0 80,864

850

95

34

2002

11

E

2.4 65,886

700

94

28

2002

11

S

8.2 66,228

650

102

26

1940

1998

73

S

8.5 70,797

825

86

33

1956

1994

57

N

12.5 95,591

850

112

34

1967

1994

46

N

7.2 48,982

500

98

20

1959

2008

54

W

7.5 92,272

875

105

35

2005

8

W

7.2 63,379

825

77

33

1958

1999

55

E

5.2 60,414

600

101

24

1930

1994

83

W

15.0 82,211

900

91

36

2003

10

E

5.2 97,995

900

109

36

1930

1994

83

E

8.3 80,836

775

104

31

2001

12

S

9.0 75,297

700

108

28

1994

19

W

25.0 64,300

625

103

25

1968

1999

45

N

12.5 160,667

1,000

161

40

1950

1999

63

N

8.0 72,891

800

91

32

1960

2006

53

S

13.0 78,232

800

98

32

1952

2002

61

N

10.3 70,545

750

94

30

1952

1994

61

N

6.2 78,173

750

104

30

2009

4

E

4.5 56,418

625

90

25

2009

4

E

6.0 75,674

825

92

33

1959

2000

54

Effective Age Basis
2001 1999 2000 1999 2003 1971 1994 2009 2004 1995 1998 1996 2000 2011
2004 2003 2009 1987 1994 2005 2003 2000 2000 2002 2002 1998 1994 1994 2008 2005 1999 1994 2003 1994 2001 1994 1999 1999 2006 2002 1994 2009 2009 2000

Effective Age (2013 basis)
12 14 13 14 10 42 19 4 9 18 15 17 13 2 9
10 4 26 19 8 10 13 13 11 11 15 19 19 5 8 14 19 10 19 12 19 14 14 7 11 19 4 4 13

88

Elementary Schools
45 Stanton, F. L. 46 Thomasville Heights 47 Toomer 48 Towns 49 Usher - Collier 50 Venetian Hills 51 West Manor 52 Whitefoord 53 Woodson Elementary School Totals
Middle Schools
1 BEST (see HS) 2 Brown 3 Bunche (@ fmr Archer HS)

ATLANTA INDEPENDENT SCHOOL SYSTEM

SCHOOL BUILDINGS, ACREAGE, AND CAPACITY

June 30, 2013

Schedule 14

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

Region Acres

Sq.Ft.

Planning Capacity @ 25/1

SF per Student

Core Classrooms

Original Construction

Renovation

N

5.2

62,930

425

148

17

1928

2000

S

11.2

83,023

950

87

38

1971

2001

E

10.6

70,012

700

100

28

1967

1998

N

8.9

70,084

675

104

27

1963

2000

N

14.0

102,962

900

114

36

1969

2003

W

9.3

60,924

600

102

24

1954

1994

W

10.8

37,150

400

93

16

1956

2000

E

2.3

62,712

650

96

26

1928

1994

N

4.1

79,637

675

118

27

1971

1998

460.2

4,094,098 39,375

105 1,575

1971

Region Acres

Sq.Ft.

Planning Capacity @ 25/1

SF per Student

Core Classrooms

Original Construction

Renovation

N

W

15.6

153,243

975

157

39

1928

2001

W

19.5

247,360

1,625

152

65

1957

1972

Actual Age (2013 basis)
85 42 46 50 44 59 57 85 42 42
Actual Age (2013 basis)
85 56

4 Coan (@ fmr East Lake ES)

E

2.7

66,168

575

115

23

1949

1994

64

5 Harper - Archer

N

18.1

229,745

1,100

209

44

1963

2002

50

6 Inman

E

4.2

151,713

875

173

35

1923

2005

90

7 Kennedy

W

5.0

228,028

1,025

222

41

1970

2004

43

8 King, C.S. (see HS)

N

9 King, M.L.

E

6.5

176,547

1,000

177

40

1973

2003

40

10 Long

S

15.6

125,236

900

139

36

1958

2006

55

11 Price

S

19.0

167,168

975

171

39

1954

2002

59

12 Sutton (@ fmr N. Atlanta HS)

N

13 Sylvan (@ fmr Parks MS)

S

14 Young

W

Middle School Totals

17.5 5.8
15.0 144.5

High Schools

Region Acres

1 BEST (includes MS)

N

15.1

2 Carver

S

35.4

3 Crim

E

17.9

4 Douglass

N

32.0

5 Forrest Hill

S

5.8

6 Grady

E

19.5

7 Jackson, M. (@ Coan MS)

E

16.1

8 King, C.S. (includes MS)

N

21.2

9 Mays

W

70.0

10 North Atlanta (New)

N

56.6

11 South Atlanta

S

50.2

12 Therrell

W

17.3

13 Washington

W

21.1

High School Totals

378.2

208,445

1,300

160

52

1951

2011

79,630

625

127

25

1966

1996

172,986

975

177

39

1951

2009

2,006,269 11,950

165

478

1954

Sq.Ft.

Planning Capacity @ 25/1

SF per Student

Core Classrooms

Original Construction

Renovation

217,578

1,750

124

70

2009

271,429

1,525

178

61

1920

2005

203,949

925

220

37

1940

2007

336,101

1,950

172

78

1968

2004

69,254

750

92

30

2008

274,560

1,275

215

51

1924

2005

167,169

1,025

163

41

1967

2003

264,874

1,750

151

70

2009

339,758

1,550

219

62

1981

2011

507,093

2,425

209

97

1978

2013

277,779

1,500

185

60

1973

2008

261,273

1,150

227

46

1960

2011

261,269

1,625

161

65

1924

2005

3,452,086 19,200

178

768

1,966

62 47 62 59
Actual Age (2013 basis)
4 93 73 45 5 89 46 4 32 35 40 53 89 47

Effective Effective Age Age Basis (2013 basis)

2000

13

2001

12

1998

15

2000

13

2003

10

1994

19

2000

13

1994

19

1998

15

2000

13

Effective Effective Age Age Basis (2013 basis)

2001

12

1972

41

1994

19

2002

11

2005

8

2004

9

2003

10

2006

7

2002

11

2011

2

1996

17

2009

4

2000

13

Effective Effective Age Age Basis (2013 basis)

2009

4

2005

8

2007

6

2004

9

2008

5

2005

8

2003

10

2009

4

2011

2

2013

0

2008

5

2011

2

2005

8

2007

6

89

Fiscal Year Ended 1
December 31, 2004 December 31, 2005
June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012 June 30, 2013

Population 434,900 442,100 451,600 451,600 461,956 477,300 480,700 420,003 432,427 443,775

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

Personal Income (thousands of dollars)

Per Capita Personal Income

Median Age

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

202,577

38,321

32.9

212,830

39,713

33.0

Sources: 1 Statistical section of the City of Atlanta, Georgia 2013 Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013.
Note: 1 The City of Atlanta changed from a December 31 fiscal year to a June 30 fiscal year in 2006.

School Enrollment
51,358 50,188 49,924 49,707 51,377 48,093 48,696 49,874 49,474 48,831

Unemployment Rate 7.4% 5.9% 5.3% 4.5% 5.9% 10.3% 10.0% 10.5% 8.9% 8.6%

90

Employer
Delta Air Lines, Inc The Coca-Cola Company International Business Machine Corp. Turner Broadcasting System, Inc. Cable News Network, Inc. AT & T Services Inc. Air Service Corp Accenture LLP Allied Barton Security Systems Tenet Health System, Inc.
Total
Employer
International Business Machine Corp Georgia-Pacific Efficeiency Plus Consultants The Coca-Cola Company Cable News Network, Inc. Atlanta Journal and Constitution Allied Barton Security Service Tenet Health System, Inc. Turner Entertainment Networks Turner Broadcasting System, Inc. Skanska USA Building, Inc.
Total

ATLANTA INDEPENDENT SCHOOL SYSTEM PRINCIPAL EMPLOYERS
JUNE 30, 2012 AND NINE YEARS AGO Schedule 16

2012

Type Of Business

Employees

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

3,815 3,469 4,228 2,163 1,873 1,845 1,733 1,791 1,448 1,140
23,505

2003
Type Of Business
Technology Services Pulp and Paper Manufacturing Consulting Marketing and Manufacturing Media Media Security Service Healthcare Entertainment Media/Entertainment Construction-related Services

Employees
3,683 3,352 3,200 3,095 2,087 1,664 2,395 1,400 1,029
912 793
23,610

Percentage of Total City Employment
1.98% 1.80% 2.20% 1.12% 0.97% 0.96% 0.90% 0.93% 0.75% 0.59%
12.20%
Percentage of Total City Employment
1.90% 1.73% 1.65% 1.60% 1.08% 0.86% 1.30% 0.72% 0.53% 0.47% 0.41%
12.25%

Source: 2013 - Statistical section of the City of Atlanta, Georgia 2013 Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013. 91

ATLANTA INDEPENDENT SCHOOL SYSTEM GENERAL FUND PER PUPIL COST LAST TEN FISCAL YEARS Last Ten Fiscal Years Schedule 17

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Expenditures 1 533,269 502,432 509,458 536,734 591,778 618,667 630,734 610,014 604,635 576,388

Active Enrollment 2
52,103 51,377 50,631 50,631 49,991 49,032 48,909 49,796 50,009 49,558

Cost Per Pupil
Enrolled 10,235 9,779 10,062 10,601 11,838 12,618 12,896 12,250 12,091 11,631

Average Daily
Attendance 3 49,565 49,138 44,534 48,720 44,935 51,449 52,368 52,925 47,192 46,403

Cost Per Pupil Attended
10,759 10,225 11,440 11,017 13,170 12,025 12,044 11,526 12,812 12,421

Sources:

1

Atlanta Independent School System General Fund Expenditures by Function schedule for fiscal year ended

June 30, 2013 (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.

92

Fiscal Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source:

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

Total

Free

Reduced

3,249,614 2,788,851 2,707,493 2,782,559 2,854,746 2,884,599 3,077,775 3,499,392 3,869,946 3,718,353

2,935,318 2,499,934 2,435,219 2,490,514 2,597,420 2,634,544 2,822,180 3,173,080 3,487,626 3,368,341

72,924 83,064 85,014 105,082 85,533 78,887 77,739 78,260 86,082 77,277

Nutrition Department of APS

Paid
241,372 205,853 187,260 186,963 171,793 171,168 177,856 248,052 296,238 272,735

93

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source:

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

Total 6,597,114 6,040,086 5,980,314 5,938,199 5,894,475 5,919,633 5,835,665 5,840,231 5,803,075 5,426,460

Free 5,420,054 4,929,194 4,924,894 4,886,222 4,943,800 4,961,606 4,968,698 5,032,509 5,043,598 4,799,240

Reduced 230,992 283,294 289,292 314,070 272,290 252,189 223,230 168,063 158,924 126,324

Nutrition Department of APS

Paid 946,068 827,598 766,128 737,907 678,385 705,838 643,737 639,659 600,553 500,896

94

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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

Total

Elementary

Middle

89

63

16

85

59

16

89

59

16

94

58

16

93

57

17

95

57

19

96

55

18

96

55

16

100

58

18

86

50

15

Source:

Atlanta Public Schools - The District- Fast Facts

High 10 10 14 20 19 19 23 25 24 21

95

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

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

2004
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
52,103

2005
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
51,377

2006
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
50,770

2007
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
50,631

2008
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
49,991

2009
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
49,032

2010
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
48,909

2011
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
49,796

2012

2013

1,111 4,795 4,609 4,379 4,269 4,266 4,172 3,563 3,503 3,465 4,475 3,003 2,352 2,047

1,098 4,822 4,698 4,417 4,289 3,962 4,094 3,603 3,471 3,379 4,395 2,928 2,346 2,056

50,009 49,558

Source:

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

96

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

Function

Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 2011 2012

2013

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

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

4,743 303 387 118 57 431 187 667 431 132 180 108
2

4,568 224 318 116 64 440 161 578 444 142 91 101
2

Totals

8,962 8,291 7,890 7,869 8,011 8,038 8,071 7,826 7,746 7,249

Source: Information Technology Department of APS

97