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STATE OF NEW MEXICO

CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22

FINANCIAL STATEMENTS

June 30, 2005

With Independent Auditors’ Report Thereon

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2005

TABLE OF CONTENTS

Page #

INTRODUCTION SECTION

Official Roster ................................................................................................................................................. 1 FINANCIAL SECTION

Independent Auditor’s Report ......................................................................................................................... 2 Management’s Discussion and Analysis (MD&A) (Required Supplementary Information)............................ 4 Basic Financial Statements

Government-Wide Financial Statements Statement of Net Assets ............................................................................................................... 22 Statement of Activities................................................................................................................... 23

Fund Financial Statements

Balance Sheet - Governmental Funds.......................................................................................... 24 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Assets ..... 25

Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances with the Statement of Activities................................................. 27 Statements of Revenues and Expenditures - Budget and Actual (Non-GAAP Basis)

General Operational .............................................................................................................. 28 ESEA Title I ........................................................................................................................... 29 PL 81-874 Impact Aid............................................................................................................ 30

Statement of Fiduciary Net Assets – Agency Funds..................................................................... 31

Notes to Financial Statements...................................................................................................................... 32 AUDITED SUPPLEMENTARY INFORMATION

Other Major Funds

Statements of Revenues and Expenditures - Budget and Actual (Non-GAAP Basis) Bond Building ................................................................................................................................ 62 Public School Capital Outlay – 20%.............................................................................................. 63 Debt Service.................................................................................................................................. 64

Non-Major Funds

Non-Major Special Revenue Funds Descriptions ................................................................................. 65 Non-Major Capital Projects Funds Descriptions ................................................................................... 74 Non-Major Governmental Funds - Combining Balance Sheet.............................................................. 75

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TABLE OF CONTENTS

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Non-Major Governmental Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances............................................................................. 81

Non-Major Governmental Funds - Statements of Revenues and Expenditures – Budget and Actual (Non-GAAP Basis) Teacherage ................................................................................................................................... 90 Transportation ............................................................................................................................... 91

Instructional Materials ................................................................................................................... 92 Food Services ............................................................................................................................... 93

Athletics......................................................................................................................................... 94 Non-Instructional Support ............................................................................................................. 95 IDEA-B – Entitlement ................................................................................................................... 96 IDEA-B – Discretionary Competitive ............................................................................................. 97 IDEA-B – Preschool ...................................................................................................................... 98 Evenstart ....................................................................................................................................... 99 Learn and Serve.......................................................................................................................... 100 Technology Literacy Challenge................................................................................................... 101 Comprehensive School Reform Demonstration.......................................................................... 102 Preschool Environments ............................................................................................................. 103 Vocational Education................................................................................................................... 104 Title V Innovation Strategies ....................................................................................................... 105 English Language Acquisition ..................................................................................................... 106 Title II-A ....................................................................................................................................... 107 Title IV ......................................................................................................................................... 108 Rural and Low Income ................................................................................................................ 109 Title I Program Improvement....................................................................................................... 110 IDEA and Technology ................................................................................................................. 111

Title VII Indian Education ............................................................................................................ 112 IHS/Northern Navajo Medical Center.......................................................................................... 113 Johnson O’Malley........................................................................................................................ 114 Advanced Placement Incentives ................................................................................................. 115 Star Schools ................................................................................................................................ 116 PL 81-874 Impact Aid – Special Education................................................................................. 117 NM Grads .................................................................................................................................... 118 Medical Assistance Payments (Medicaid)................................................................................... 119 Indian Education Formula Grant ................................................................................................. 120 Distance Learning Telemed Grant .............................................................................................. 121 Navajo Nation Grants .................................................................................................................. 122 ETIP Project ................................................................................................................................ 123 Projects with Industry .................................................................................................................. 124 Jordan Fundamentals Grant ....................................................................................................... 125 Heifer International Grant............................................................................................................ 126 PNM Foundation, Inc................................................................................................................... 127 Toyota Time Grant ...................................................................................................................... 128 Burlington Grant .......................................................................................................................... 129

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TABLE OF CONTENTS

Page #

CYFD – Preschool....................................................................................................................... 130 TANIF – After School Child Care ................................................................................................ 131 Technology for Education ........................................................................................................... 132 Full-Day Kindergarten ................................................................................................................. 133 Incentives for School Improvements ........................................................................................... 134 Truancy Intervention.................................................................................................................... 135 Positive Behavior Support........................................................................................................... 136 Bridging of the Arts...................................................................................................................... 137 Gear Up....................................................................................................................................... 138 Teacher Mentoring ...................................................................................................................... 139 Private Direct Grants ................................................................................................................... 140 Public School Capital Outlay....................................................................................................... 141 Special Capital Outlay – State .................................................................................................... 142

Special Capital Outlay – Federal................................................................................................. 143 Capital Improvements SB-9 ........................................................................................................ 144

Energy Efficiency Act .................................................................................................................. 145

Fiduciary Funds Description ............................................................................................................... 146 Statement of Changes in Assets and Liabilities – All Agency Funds.......................................... 144 Statement of Changes in Deposits Held for Others – All Agency Funds.................................... 145

OTHER SUPPLEMENTARY INFORMATION

Schedule of Expenditures of Federal Awards..................................................................................... 149 Schedule of Pledged Collateral........................................................................................................... 151 Cash Reconciliation ............................................................................................................................ 152 Joint Powers Agreements ................................................................................................................... 155 Bank Depositories ............................................................................................................................... 157

Independent Auditors’ Report on Compliance and on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................ 158

Independent Auditors’ Report on Compliance with Requirements Applicable to

Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 .................................................................................................................... 160

Schedule of Findings and Questioned Costs.............................................................................. 162 Findings and Questioned Costs .................................................................................................. 163 Exit Conference........................................................................................................................... 172

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INTRODUCTION SECTION

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 OFFICIAL ROSTER June 30, 2005

BOARD OF EDUCATION

Randy J. Manning President

Bernadette A. Todacheene Vice-President Stanley R. King Secretary Glenn L. Duncan Member

Rozana M. Clah Member

SCHOOL OFFICIALS Dr. Linda Besett Superintendent Larry DeWees Assistant Superintendent of Secondary Education Byron Manning Executive Director of Finance and Business Operations

Marlene Frazier Executive Director of Curriculum and Instruction

Janet Slowman-Chee Executive Director of Special Education and

Multi-Ethnic Student Affairs

Sheri Price Director of Human Resources

Angela Haney Director of Student Nutrition Jeff Hunt Director of Transportation Herbert Frazier Director of Bilingual Education

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FINANCIAL SECTION

CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

FOR THE FISCAL YEAR ENDED JUNE 30, 2005 The Management’s Discussion and Analysis (MD&A) of the fiscal performance of Central Consolidated School District No. 22 (District) is for the fiscal year ended June 30, 2005. This written analysis is now a required part of the District’s financial reporting and is intended to give the reader an easy-to-understand overview of the District’s financial position and the results of its operations for the year. Please read it in conjunction with the District’s financial statements, which immediately follow this section. FINANCIAL HIGHLIGHTS

• The District’s total net assets of governmental activities increased by $6.3 million. This represents a 4.8% increase from fiscal year 2004, resulting primarily from the use of current year funding for capital additions.

• General revenues accounted for $57.6 million, or 71.2% of all 2005 fiscal year

revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $23.3 million, or 28.8% of total fiscal year 2005 revenues.

• The District had approximately $74.6 million in expenses related to governmental

activities of which $23.3 million of these expenses were offset by program specific charges for services or grants and contributions. General revenues of $57.6 million were adequate to provide for the remaining costs of these programs.

• Capital outlay expenditures increased by $16.7 million from last fiscal year, 2004,

to the current fiscal year. The District completed a major renovation at Mesa Elementary School in Shiprock and nearly completed construction on the two performing arts centers in Kirtland and Shiprock. Additionally, the District purchased a site and began a major remodel on the building for a new early childhood center in Kirtland.

• The overall Fund Balance shown on the governmental fund financial statements

decreased by $8.1 million in the current fiscal year. The decrease in fund balance is related to the large amount of construction that occurred in the District during the past fiscal year as cash converted into capital assets.

• Total revenues, exclusive of revenues from general obligation bond proceeds,

increased by $1.2 million when compared to the previous fiscal year. This represents a 1.5% increase in revenue growth for the year. The increase in revenue can be attributed to an increase in state funding to the general operating fund of the District.

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• Total expenditures, including capital expenditures and debt service, increased $6.5 million in the current fiscal year when compared to the previous fiscal year. The increase in capital expenditures accounts for most of this increase.

• The District’s total long-term debt decreased $2.9 million in the current fiscal

year. This was due to the net retirement, after a refunding, of $2.6 million in bonds and $0.3 million in capital leases.

OVERVIEW OF THE FINANCIAL STATEMENTS

This annual report consists of three parts: management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements—district-wide and fund—that present different views of the District:

• The first two statements are district-wide financial statements that provide both short-term and long-term information about the District’s overall financial status.

• The remaining statements are fund financial statements that focus on individual parts of the District, reporting on the District’s operation in more detail than the district-wide statements.

• The governmental funds statements report on how basic services such as regular and special education were financed in the short term as well as what remains for future spending.

• Fiduciary funds statements provide information about the financial relationships in which the district acts solely as a trustee or agent for the benefit of others.

This annual report consists of a series of detailed, audited financial statements, and the notes to those statements. The annual report also includes the Independent Auditors’ Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, the Independent Auditors’ Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133, and the Schedule of Findings and Questioned Costs. District-Wide Financial Statements The Statement of Net Assets and Statement of Activities are presented on a district-wide basis and encompass all assets and liabilities of the District. This section will look at the financial performance of the District as a whole rather than looking at individual components or areas of the District.

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Fund Financial Statements The District uses fund accounting to ensure and demonstrate compliance with financial and legal requirements. Fund financial statements are based on a modified accrual basis of accounting. The Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances guide the reader to a meaningful overall view for the District’s assets, liabilities, revenues, expenditures, fund balances, and changes to those fund balances.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Statement of Net Assets The Statement of Net Assets is prepared using the full accrual method of accounting. The District’s financial position is the product of several financial transactions, including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following table presents a summary of the District’s net assets for the fiscal years ended June 30, 2004 and June 30, 2005.

AssetsCash and Investments $ 29,483,693 $ 22,530,647Other Current Assets 1,865,884 1,467,021Capital Assets, Net 139,894,137 151,307,345 Total Assets 171,243,714 175,305,013

LiabilitiesAccounts Payable 1,127,015 1,337,417Other Current Liabilities 5,970,465 6,409,338Long-Term Liabilities 33,594,813 30,747,136 Total Liabilities 40,692,293 38,493,891

Net AssetsInvestment in Capital Assets, Net 111,074,271 117,775,898Restricted 9,658,361 9,436,913Unrestricted 9,818,789 9,598,311 Total Net Assets $ 130,551,421 $ 136,811,122

June 30, 2004 June 30, 2005

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The following are significant current year transactions that have had an impact on the Statement of Net Assets:

• The addition of $15.9 million in capital assets through additions, remodeling, and equipment purchases.

• The retirement of $2.9 million in long-term debt.

• The reduction in total revenues by $5.6 million and the reduction in total

expenditures by $1.8 million. The District has total net assets of $136,811,122 as of June 30, 2005 as compared to $130,551,421 as of June 30, 2004. Changes in Net Assets The District’s total revenues for the fiscal year ended June 30, 2005 were $80.8 million and total revenues for the fiscal year ended June 30, 2004 were $86.4 million. The total costs of all programs and services were $74.6 million in 2005 and $76.4 million in 2004. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2004 and June 30, 2005.

Revenues:Program Revenues:

Charges for Services $ 957,452 $ 1,311,655Operating Grants and Contributions 18,275,457 17,355,750Capital Grants and Contributions 4,694,440 4,613,065

General Revenues:Property Taxes 7,324,467 5,840,880Federal and State Aid 54,634,788 51,012,783Gain on Sale of District Assets 0 10,975Investment Income 550,975 687,425 Total Revenues 86,437,579 80,832,533

Expenses:Direct Instruction 41,641,911 40,627,275 Instructional Support 12,314,620 11,593,878Administration 2,068,119 2,090,069Business and Support Services 1,213,857 1,181,466Operation and Maintenance of Plant 8,302,508 8,305,226Food Services 2,727,632 2,981,712Athletics 1,126,386 1,236,559Non-Instructional Support 655,911 263,818Community Services 1,845,504 1,669,233Student Transportation 2,749,366 2,870,108Interest on Long-Term Obligations 1,721,805 1,753,488

Total Expenses 76,367,619 74,572,832 Increase in Net Assets $ 10,069,960 $ 6,259,701

June 30, 2004 June 30, 2005

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Statement of Activities The Statement of Activities is also prepared using the full accrual method of accounting. This report compliments the Statement of Net Assets by showing the overall change in the District’s net assets for the fiscal years ended June 30, 2004 and June 30, 2005. The following table shows the cost of the 11 major District functional activities: direct instruction, instructional support, administration, business and support services, operation and maintenance of plant, food services, athletics, non-instructional support, community services, student transportation, and interest on long-term obligations. This table also shows each function’s net cost (the total cost less charges for the services generated by the activities and intergovernmental aid provided for the specific programs). The net cost shows the financial burden that was placed on Federal, State, and District taxpayers by each of these functions.

Direct Instruction $ 41,641,911 $ (26,059,444) $ 40,627,275 $ (27,829,323)Instructional Support 12,314,620 (10,996,426) 11,593,878 (9,739,920)Administration 2,068,119 (1,552,558) 2,090,069 (974,828)Business and Support Services 1,213,857 (1,213,857) 1,181,466 (1,105,616)Operation and Maintenance of Plant 8,302,508 (7,902,643) 8,305,226 (7,897,666)Food Services 2,727,632 177,025 2,981,712 (130,890)Athletics 1,126,386 (974,539) 1,236,559 (1,062,786)Non-Instructional Support 655,911 (493,779) 263,818 (88,254)Community Services 1,845,504 (1,621,134) 1,669,233 (578,627)Student Transportation 2,749,366 (81,110) 2,870,108 (130,964)Interest on Long-Term Obligations 1,721,805 (1,721,805) 1,753,488 (1,753,488) Total Expenses $ 76,367,619 $ (52,440,270) $ 74,572,832 $ (51,292,362)

Expenses Revenue

June 30, 2004 June 30, 2005Total Net (Expense)Total

ExpensesNet (Expense)

Revenue

• The cost of all governmental activities this year was $74.6 million and $76.4 million

last year. • The Federal and State governments, along with charging for services, subsidized

certain specific programs with grants and contributions in the amount of $23.3 million in 2005 and $23.9 million in 2004.

• The net cost of governmental activities ($51.3 million in 2005 and$52.4 million in

2004) was financed by general revenues, which were primarily funded with Federal and State aid ($51.0 million this year and $54.6 million last year).

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FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS Balance Sheet The focus of the District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the District’s net resources available for spending at the end of the fiscal year. The financial performance of the District as a whole is reflected in the Balance Sheet as of June 30, 2005. As the District completed the year, it reported a combined fund balance of $19.7 million, a decrease of $8.1 million. This decrease was primarily due to completion of capital projects within the District which converted cash to capital assets. Approximately $4.4 million, or 22.3%, of the fund balance constitutes unreserved fund balance. The remaining fund balance of $15.3 million, or 77.7%, is reserved for inventory, debt service, or subsequent year’s expenditures. Statement of Revenues, Expenditures, and Changes in Fund Balances Total revenues from state, local, and Federal sources were $80.9 million, an increase of $0.8 million from the prior year. There were $18.0 million in other financing sources and $18.0 million in uses during the current fiscal year due to the refunding of outstanding general obligation bonds. The total expenditures for the District were $89.0 million, including lease purchase payments, an increase of $6.2 million from the prior year. The General Operational Fund is the principal operating fund of the District. The increase in fund balance of $989,244 in the General Operational Fund for the fiscal year was a result of the District receiving an increase funding level from the State which will be primarily used to increase salaries for teachers and other personnel in the District according to the new three-tiered licensure program and pay structure established by the State. Multi-Year Comparison of District Revenues and Expenditures A view of the District’s revenues and expenditures over the past ten years indicates that, while attendance figures have declined, total revenues, excluding bond revenues, are generally increasing annually. The exception to this is when a large bond sale in one year is not followed by a bond sale in the following year. This is related to the increase in the dollar value of student unit allocations by the State for the State Equalization Guarantee, an increase in capital projects revenues, and an increase in the dollar value of Federal and State grants received by the District.

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1995-1996 $ 68,050,818 $ 50,804,257 $ 21,000,000 1996-1997 57,609,722 -15.3% 1.2% 67,666,590 24.9% 10,000,000 1997-1998 58,520,172 1.6% 9.9% 60,357,673 -12.1% 6,200,000 1998-1999 55,907,215 -4.5% 6.9% 58,442,084 -3.3% - 1999-2000 61,679,611 10.3% 10.3% 63,798,288 8.4% - 2000-2001 71,979,810 16.7% 10.2% 73,595,743 13.3% 4,000,000 2001-2002 72,797,502 1.1% 7.1% 73,819,830 0.3% - 2002-2003 83,110,746 14.2% 6.3% 77,887,271 5.2% 5,700,000 2003-2004 83,943,908 1.0% 3.5% 82,849,578 6.0% 3,800,000 2004-2005 81,274,295 -3.2% 1.4% 89,420,014 7.3% -

% ChangeBond

RevenuesYear Total Revenues* % Change

% Change w/o Bond Revenues

Total Expenditures*

* Note: Revenues include proceeds from General Obligation Bonds and exclude cash carryovers. Expenditures include capital outlays. Equity transfers are included in both revenues and expenditures. The refunding in 2004-2005 has been excluded both from revenues and expenditures. Budgetary Highlights The District has experienced the same growth in its budget as it has in its revenues and expenditures. The budgeting process for the State of New Mexico is defined under New Mexico State Statues (Section 22) and the New Mexico Administrative Code (Section 6). Additionally, the District develops its budget through input at site budget meetings from parents and staff members at each of its three main attendance areas—Kirtland, Newcomb/Naschitti, and Shiprock, the District Budget Committee (made up of community members, certified and non-certified staff, administrators, and finance department personnel), and input from the local School Board and Superintendent. The District also has a facilities master plan for major construction and renovation that is constantly updated for major capital expenditures. All major budgetary funds are reported as separate statements. Major budgetary funds in these reports are the General Operational Fund (Operational), ESEA Title I, PL 81-874 Impact Aid, Bond Building, Public School Capital Outlay – 20%, and Debt Service. In addition, sixty-two (62) non-major Special Revenue Funds and five (5) non-major Capital Projects funds are also reported for their budgetary performance. Examples of non-major Special Revenue funds are Transportation, Food Services, Title VII, and Impact Aid-Special Education. Examples of non-major Capital Project funds include SB-9 Capital Improvements (Two Mill Levy) and Special Capital Outlay – Federal. The following shows the fiscal relationship of the major funds and the combined non-major funds.

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DISTRICT BUDGET DISTRIBUTION

43.6%

4.4%

4.7%

8.1%6.0% 5.7%

18.0%

9.5%

Operational

ESEA Title I

PL 81-874 Impact Aid

Bond Building

Public School CapitalOutlay - 20%

Debt Service

Special Revenue

Capital Projects

The General Operational Fund accounts for 43.6% of the total District budget. This fund provides the salary and benefits for the significant majority of the instructional, instructional support, school support, maintenance, custodial, administrative, and business staffs as well as classroom materials, special education ancillary staff, insurance, and utility costs. Revenue from this fund is substantially derived from the State Equalization Guarantee (62.8%) and PL-874 Federal Funds (Impact Aid) (32.6%). The State Equalization Guarantee is based upon a funding formula developed by the State. This formula includes taking a credit for the PL-874 funds received by the District. The net effect on the District’s General Operational Fund is retaining 5% of the total Impact Aid dollars in the fund for operational expenditures. The General Operational Fund will be discussed in further detail later in the Management Discussion and Analysis. The following table examines the summary budget performance of the major and combined non-major funds for the fiscal year ended June 30, 2005. Detail budget performance is examined through the Statements of Revenues and Expenditures—Budget and Actual.

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FUND

Operational $ 45,836,273 $ 42,728,863 $ 3,107,410 ESEA Title I 4,970,378 3,818,534 1,151,844 PL 81-874 Impact Aid 6,330,000 5,225,071 1,104,929 Bond Building 8,488,266 8,464,927 23,339 Public School Capital Outlay - 20% 6,045,593 3,192,355 2,853,238 Debt Service 4,584,420 4,567,377 17,043

MAJOR FUNDS EXPENDITURE TO BUDGET PERFORMANCE

FINAL BUDGET ACTUAL

EXPENDITURES VARIANCE

FUNDSpecial Revenue $ 18,933,852 $ 15,306,270 $ 3,627,582 Capital Projects 9,956,225 4,540,373 5,415,852

COMBINED MINOR FUNDS EXPENDITURE TO BUDGET PERFORMANCEFINAL COMBINED ACTUAL VARIANCE

All expenditures within the major and non-major funds fell within the approved budget limits. No budgets had expenditures in excess of budget authority. Operational Fund The General Operational Fund is the primary fund for the District. Operational revenues totaled $43,671,431, which represents 53.7% of total District revenues of $81,274,295 (inclusive of bond proceeds and operating transfers in). The General Operational Fund had an initial approved budget of $45,466,056 and a final budget of $45,836,273. The increased budget of $370,217, a 0.8% increase, was due to the budgeting of additional cash carryover from the previous year’s budget and a mid-year increase in the unit value. While the District has seen a decline in student enrollment over the past five years, the operational fund has, on whole, experienced an increase in total revenues over that same period of time due to higher unit value allocations from the State, as can be seen from the following table.

Year Increase1995-1996 $ 30,541,503 1996-1997 31,379,370 2.7%1997-1998 34,652,567 9.4%1998-1999 36,796,306 5.8%1999-2000 39,746,474 7.4%2000-2001 38,620,493 -2.9%2001-2002 40,980,570 5.8%2002-2003 40,279,814 -1.7%2003-2004 41,418,618 2.7%2004-2005 43,671,431 5.2%

Operational Fund RevenuesRevenues

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The General Operational Fund represents the major expenditures for the education of the students within the District. During the year ended June 30, 2005, the General Operational Fund expended $42,682,187 of which $24,440,668 was expended on Direct Instruction. This represents 57.26% of all General Operational Fund expenditures. Direct Instruction expenditures include salaries for regular, bilingual, and special education teachers and educational assistants, payroll taxes, benefit costs, classroom supplies and equipment, employee training, student and teacher travel, and instructional related contract services. Employee salaries, payroll taxes, and benefit costs account for 82.8% of all General Operational Fund expenditures.

OPERATIONAL EXPENDITURES BY FUNCTION

16.19%

1.85%

2.51%18.64%57.26%

0.05%2.17%

0.49%0.85%

Direct Instruction

Instructional Support

Administration

Business and SupportServices

Operation and Maintenanceof Plant

Athletics

Non-Instructional Support

Community Services

Non-Operating

Instructional Support expenditures include salaries, payroll taxes, and benefits for principals, counselors, nurses, librarians, program coordinators, school secretaries and receptionists, computer technicians, special education ancillary staff, and contracted ancillary support personnel for special education. Ancillary personnel provide specialized services for special education students and include speech or occupational therapists, psychologists, diagnosticians, etc. It also includes the necessary supplies, equipment, training, and travel for these individuals. Instructional Support expenditures totaled $7,957,185, or 18.64% of General Operational expenditures. The third largest area of expenditures for the District is for Operation and Maintenance of Plant. These expenditures totaled $6,910,061, 16.19% of the General Operational expenditures. This includes salaries, payroll taxes, and benefits for maintenance staff and supervisors, school custodians, and maintenance and custodial clerical staff. It also

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includes costs for maintenance and custodial supplies and equipment, maintenance and repairs of buildings, grounds, and equipment, utilities, internet access, travel and training for maintenance and custodial personnel, outside contract services, and property and liability insurance. The District also receives funding for maintenance costs from the voter approved Two Mill Levy Fund (Fund 31700). Administration expenditures totaled $1,071,581, or 2.51% of General Operational Fund expenditures. Included in this area are salaries, payroll taxes, and benefits for the superintendent, assistant superintendents, administrative secretaries and receptionist, and human resource personnel. In addition, supplies, equipment, travel, training, and outside contract services for the above individuals and the School Board are included in this function. Administrative costs like legal and auditing fees and costs related to board and bond elections are also included here. Expenditures for Athletics totaled $925,231, 2.17% of General Operational expenditures, and include salaries and payroll taxes for coaches and athletic directors, as well as expenditures for travel, supplies, and equipment. Athletics is also funded from the Athletic Fund (Fund 22000) where gate receipts are maintained and spent. Total expenditures from the Athletic Fund were an additional $159,543. The District expended 1.85%, $788,010, of the General Operational Fund for Business and Support Services. This includes salaries, payroll taxes, and benefits for employees of the business office, warehouse and delivery, programmer, and statistical and student count departments. It also includes supplies, equipment, outside contract services, training and travel for the above individuals, and postage and shipping for the District. Community Services, which include summer school, day-care services at both Career Prep High School and Newcomb High School, and the Parents as Teachers Program (PAT) in the Kirtland/Ojo and Shiprock areas, accounted for $360,979, 0.85% of General Operational expenditures. This includes salaries, payroll taxes, and benefits for day-care providers and PAT personnel and summer school employees as well as supplies, equipment, travel, and training for these individuals and programs. The District spent $207,849, 0.49% of General Operational expenditures, for Non-Instructional Support. This includes salaries and payroll taxes for activity directors and club sponsors and supplies and travel costs for the student organizations. Finally, the District spent 0.05%, $20,623 of General Operational expenditures, on litigation fees, which included a $20,000 settlement for a lawsuit brought in the 1990’s.

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CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of June 30, 2005, the district had invested $203.7 million in capital assets, including land, school buildings, athletic facilities, administrative offices, buses and other vehicles, computer and audio-visual equipment, and other equipment. This amount represents a net increase of $15.9 million from last year. The District had $16.0 million in new additions in the current fiscal year. For financial reporting purposes, the District will only capitalize and depreciate equipment with a value of $5,000 or more. The District will continue to inventory and track all equipment additions in excess of $1,000, in accordance with State law. The accumulated depreciation for the District’s capital assets amounts to $52.4 million. Total depreciation expense for the year was $4.6 million. The District utilizes a “straight line” depreciation method in all cases and has established standardized lifetime tables in calculating depreciation. The following schedule presents capital asset balances, net of depreciation, for the fiscal year ended June 30, 2005.

Land $ 1,793,547 Land Improvements 5,475,346 Buildings and Improvements 126,370,717 Equipment and Vehicles 4,257,036 Construction in Progress 13,410,699 Total $ 151,307,345

Amount

Major additions to capital assets this year, additions in excess of $100,000, included major renovations to Mesa Elementary and Ruth N. Bond Elementary, construction on the two performing arts centers in Kirtland and Shiprock, and the purchase and remodel of the new Kirtland Early Childhood Center. The State also funded a major roof repair to Kirtland Middle School. The District has also completed an exterior painting project at Nataani Nez Elementary School. Additionally, the District has been painting hallways and replacing carpet and floor tile throughout the District. In the District’s fiscal year 2006 budget, final payments will be made on the performing arts centers, the Kirtland Early Childhood Center, the Tse Bit Ai Middle School remodel, and the Kirtland Natatorium roofing project. The District will begin construction on a new Career Prep High School, which will be jointly funded by the District (42%) and by the State (58%). Also, the District will begin architectural design and planning for a new Kirtland Middle School and begin the renovation and addition of teacher housing units in Shiprock, Newcomb, and Naschitti. The State will also be funding the addition of a new

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kindergarten classroom at Nizhoni Elementary and a re-roofing project at Kirtland Central High School. Career Prep High, Newcomb Elementary, and the Shiprock Administration Offices are scheduled for exterior paint jobs, and the District will continue interior painting and installing new carpeting and tile at many schools in the District. The painting and carpeting projects are expected to take several years to complete. Additional information on the District’s capital assets can be found in Note 4 on pages 46-47 of this report. Long-Term Debt At year-end, the District has $32,710,000 in general obligation bonds outstanding, $2,990,000 due within one year. State statutes currently limit the amount of general obligation debt a district may issue to 6.0% of its total assessed valuation. At June 30, 2005, the District’s general obligation debt limit was $38,089,046, and the District was bonded to 85.9% of the legal limit. The District refunded $17.8 million in bonds with a new principal amount of $17.21 million in the current fiscal year, resulting in a reduction of bond principal in the amount of $0.59 million. The District also paid off an additional $2.85 million in bonds. The District has never defaulted on any of its debt or other obligations. Listed below is the District’s total general obligation debt and yearly payment schedule as of June 30, 2005.

YEAR ENDED JUNE 30 PRINCIPAL INTEREST TOTAL

2006 2,990,000 1,286,466 4,276,466 2007 2,975,000 1,169,664 4,144,664 2008 2,925,000 1,079,260 4,004,260 2009 2,800,000 985,993 3,785,993 2010 2,720,000 882,233 3,602,233 2011 2,775,000 758,428 3,533,428 2012 2,780,000 622,613 3,402,613 2013 2,745,000 489,261 3,234,261 2014 2,400,000 367,322 2,767,322 2015 2,600,000 256,796 2,856,796 2016 2,000,000 162,774 2,162,774 2017 2,000,000 83,431 2,083,431 2018 1,000,000 21,750 1,021,750 Total $32,710,000 $8,165,991 $40,875,991

Additional information on the District’s long-term debt can be found in Note 5 on pages 47-49 of this report.

16

FACTORS BEARING ON THE DISTRICT’S FUTURE At the time these financial statements were prepared and audited, the district was aware of the following circumstances that could significantly affect its financial health in the future.

• The District had been experiencing a decline in student enrollment. Over the previous five year period, the District’s average enrollment, as measured by the 40th, 80th, and 120th day counts, has decreased by 333 students with a decline in membership occurring in the previous four years by an average of 90 students per year. This trend was reversed in the 2005 fiscal year when the District saw an increase in enrollment of 25 students. The trend of the declining enrollment has continued into the current fiscal year with the 40th day count showing a decrease of 58 students over the 40th day count in 2005.

The overall decline in enrollment is principally attributable to the elementary age groups as the secondary schools have seen a decline of only 18 students during that five year period while the elementary schools have seen a decline of 315 students. This would indicate that smaller family sizes and/or fewer families with school age children are residing within the District. The surrounding school districts in the area are also experiencing declining enrollments. The following charts detail the change in enrollment for elementary and secondary schools and enrollment by major attendance areas.

FIVE YEAR ENROLLMENT HISTORY

3,100

3,200

3,300

3,400

3,500

3,600

3,700

2001 2002 2003 2004 2005

FISCAL YEAR

STU

DEN

T C

OU

NT

ELEMENTARY SECONDARY

17

ENROLLMENT BY ATTENDANCE AREAS

3,1673,0833,0493,0823,047

3,058 2,954 2,893 2,778 2,720

1,177 1,192 1,110 1,063 1,062

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2001 2002 2003 2004 2005

FISCAL YEAR

STU

DEN

T C

OU

NT

KIRTLAND AREA SHIPROCK AREA NEWCOMB AREA

These trends indicate that the District would experience flat funding levels in the coming fiscal years if State unit value amounts remain the same. The District will need to continue monitoring teacher/student ratios with these trends in mind.

• On September 23, 2003, the voters of New Mexico passed a new constitutional

amendment that increases the amount of funding to be provided to educational institutions in the State of New Mexico from the Permanent Fund. Additional funding has been provided to school districts from this funding source, which has helped to offset the reduction in funding from declining enrollments in the District.

• During the 2003 legislative session, the legislature passed House Bill 212 that

included various measures that will affect public schools in the State of New Mexico.

18

Cash carryover amounts from the Operational Funds will be limited each year. Cash balances cannot exceed a predetermined rate of “program cost” (4.5% for the District—$2.05 million, after 75% credit adjustment, for fiscal year 2004-2005), or the State will take back the excess carryover funds. Districts with Impact Aid funds, like Central Consolidated, will be given an additional allowance for carryover, approximately $1.35 million for the District. The District will be below the allowable amount and will therefore not lose additional cash balances to the State.

The State is initiating a three-tiered licensing structure for certified

personnel with minimum salary requirements. All teachers hired after the first day of the 2002-2003 school year must be established as “Highly Qualified” if they are teaching in the core academic area. By June 30, 2006, all teachers hired before the first day of the 2002-2003 school year must be “Highly Qualified” if they are teaching in the core academic area.

Level I Provisional Teacher is to make a minimum of $30,000 after

the 2003-2004 School year. Before advancing to Level II, the following must be completed:

Three years at Level I Mentoring Program Professional Development Dossier

Dossier should include successful annual evaluations and demonstration/evidence of meeting the nine teaching competencies. The nine competencies are divided into five strands

Level II Professional Teacher is to make a minimum of $40,000

(the District now pays a minimum of $42,000 for a Level II teacher), phased in by the 2005-2006 school year. The Level II license is renewable every nine years. Before advancing to Level III, the following must be completed:

Minimum of three years at Level II Masters degree or National Board Certification Professional Development Dossier

Dossier should include successful annual evaluations and demonstration/evidence of meeting the nine teaching competencies. The nine competencies are divided into five strands

Level III-A Professional Teacher is to make a minimum of

$50,000, phased in by the 2007-2008 school year. The level III-A license is renewable every nine years with the following criteria:

Verify leadership role

19

• The Federal No Child Left Behind Act (NCLB) is changing the way schools are rated within New Mexico. The changes in the rating system are expected to cause additional schools within the State to be rated as “probationary” or to be put in “corrective action” status. The major highlights for NCLB are as follow.

All students are to be proficient by 2013-2014. Accordingly, the State’s

adequate yearly progress (AYP) measure will not only look at all public school students but will also evaluate the performance of four categories of students:

Economically disadvantaged students Students from major racial and ethnic groups Students with disabilities Students with limited English proficiency

If any of these groups do not make AYP, that school will be rated probationary.

Schools that are identified for improvement or corrective action must offer

all students the opportunity to transfer to another public school within the District that has not been identified for improvement at the expense of the Title I program.

If a school fails to make AYP by the end of the first full school year after

being identified for school improvement, then the District must arrange for supplemental educational services for eligible students who attend that school. These services can include tutoring and other supplemental academic enrichment services, recognized by the State, that are in addition to the instruction provided during the school day.

All core subject teachers must become “Highly Qualified” by the end of

2005-2006. All paraprofessionals (aides) in Title I schools (all District schools are Title I schools) must have a high school diploma and have two years of college or an associate’s degree, or meet a rigorous standard of quality and demonstrate skill on a State or local test. Five percent of the Title I budget must be used to ensure that all teachers and paraprofessionals meet these high quality standards.

These changes will govern set-aside dollars before allocating funds to

individual schools. District Operational and Title I budgets may be affected in the future by these changes as additional dollars are moved into supplemental services or to salaries as increased requirements are put on teachers and paraprofessionals. During fiscal year 2004-2005, only three District schools met state requirements for AYP—Ojo Elementary School, Mesa Elementary School, and Nataani Nez Elementary School. Six schools failed to make AYP because their special

20

education sub-groups failed to make adequate scores on the standardized test. The remaining nine schools failed on one or more areas of the test not related to the special education sub-group.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide the District’s citizens, taxpayers, customers, investors, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Executive Director of Finance and Business Operations, Central Consolidated School District No. 22, 583 CR 6100, Kirtland, NM 87417.

21

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF NET ASSETS As of June 30, 2005

GovernmentalActivities

ASSETS Current Assets:

Cash and Investments $ 22,530,647Taxes Receivable (Net) 132,649Due from Other Governmental Units 1,177,055Inventory 157,317

Total Current Assets 23,997,668

Noncurrent Assets:Land 1,793,547Construction in Progress 13,410,699Depreciable Noncurrent Assets:

Buildings, Equipment, and Improvements 188,543,498Less: Accumulated Depreciation (52,440,399) Total Noncurrent Assets 151,307,345

Total Assets 175,305,013

LIABILITIES Current Liabilities:

Accounts Payable and Other Current Liabilities 1,434,988Accrued Interest 511,596Deferred Revenue 2,677,054Current Portion of Deferred Gain on Bond Refunding 133,117Current Portion of Bonds Payable 2,990,000

Total Current Liabilities 7,746,755

Long-Term Liabilities:Compensated Absences Payable 338,806Deferred Gain on Bond Refunding 688,330Noncurrent Portion of Bonds Payable 29,720,000

Total Long-Term Liabilities 30,747,136

Total Liabilities 38,493,891

NET ASSETSInvestment in Capital Assets, Net of Related Debt 117,775,898Restricted For :

Debt Service 3,624,651Capital Projects 3,861,057Other Restrictions 1,951,205

Unrestricted 9,598,311

Total Net Assets $ 136,811,122

SEE INDEPENDENT AUDITORS' REPORTS The accompanying notes are an integral part of these financial statements 22

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2005

Program Revenues Net (Expenses)Operating Capital Revenue and

Charges for Grants and Grants and Changes in Functions/Programs Expenses Services Contributions Contributions Net Assets

Governmental Activities:Direct Instruction $ 40,627,275 337,440 7,847,447 4,613,065 $ (27,829,323)Instructional Support 11,593,878 1,853,958 (9,739,920)Administration 2,090,069 1,115,241 (974,828)Business and Support Services 1,181,466 75,850 (1,105,616)Operation and Maintenance of Plant 8,305,226 389,214 18,346 (7,897,666)Food Services 2,981,712 235,664 2,615,158 (130,890)Athletics 1,236,559 173,773 (1,062,786)Non-Instructional Support 263,818 175,564 (88,254)Community Services 1,669,233 1,090,606 (578,627)Student Transportation 2,870,108 2,739,144 (130,964)Interest on Long-Term Obligations 1,753,488 (1,753,488)

Total Governmental Activities $ 74,572,832 1,311,655 17,355,750 4,613,065 (51,292,362)

General Revenues: Taxes Property Taxes, Levied for General Purposes 247,812 Property Taxes, Levied for Debt Service 4,254,944 Property Taxes, Levied for Capital Projects 1,338,124 Federal and State Aid Not Restricted to Specific Purpose General 47,319,389 Capital 3,693,394 Gain on Sale of District Assets 10,975 Interest and Investment Earnings 687,425 Subtotal, General Revenues 57,552,063

Change in Net Assets 6,259,701

Net Asets - Beginning 130,551,421

Net Assets - Ending $ 136,811,122


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22BALANCE SHEET - GOVERNMENTAL FUNDSAs of June 30, 2005

Fund Fund Fund Fund Fund Fund11000 24101 24247 31100 32100 41000

GENERAL PUBLIC SCHOOL OTHEROPERATIONAL ESEA PL 81-874 BOND CAPITAL DEBT GOVERNMENTAL

FUND TITLE I IMPACT AID BUILDING OUTLAY - 20% SERVICE FUNDS TOTALS

ASSETS

Assets:Cash and Investments $ 2,558,605 1,147,268 5,989,142 2,880,269 4,043,202 5,912,161 22,530,647Taxes Receivable 5,592 93,045 34,012 132,649Due from Grantor 1,177,055 1,177,055Due from Other Funds 875,548 875,548Inventory 157,317 157,317

Total Assets $ 3,439,745 1,147,268 5,989,142 2,880,269 4,136,247 7,280,545 24,873,216

LIABILITIES AND FUND BALANCE

Liabilities:Accounts Payable $ 33,515 32,162 107,108 887,773 276,859 1,337,417Accrued Salaries and Benefits 10,098 29 153 2,592 12,872Accrued Compensated Absences 59,695 3,552 6,349 15,103 84,699Due to Other Funds 875,548 875,548Deferred Revenue 3,375 1,111,525 63,282 1,720,220 2,898,402

Total Liabilities 106,683 1,147,268 113,610 887,773 63,282 2,890,322 5,208,938

Fund Balance:Reserved for Inventory 157,317 157,317Reserved for Subsequent

Year's Expenditures 3,333,062 1,854,472 1,992,496 3,818,880 10,998,910Reserved for Debt Service 4,072,965 4,072,965Undesignated, Reported In Special Revenue Fund 4,021,060 442,548 4,463,608

Capital Projects Fund (28,522) (28,522)

Total Fund Balance 3,333,062 5,875,532 1,992,496 4,072,965 4,390,223 19,664,278

Total Liabilities and Fund Balance $ 3,439,745 1,147,268 5,989,142 2,880,269 4,136,247 7,280,545 24,873,216

SEE INDEPENDENT AUDITORS' REPORTSThe accompanying notes are an integral part of these financial statements 24

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET WITH THE STATEMENT OF NET ASSETS As of June 30, 2005

Amounts reported for governmental activities in the Statement of Net Assetsare different because:

Total fund balances - governmental funds $ 19,664,278

Capital assets used in governmental activities are not financial resourcesand therefore are not reported as assets in governmental funds.

The cost of capital assets is 203,747,744Accumulated depreciation is (52,440,399) 151,307,345

Revenues not collected within sixty days after year-end are considered "available" revenues and are shown as deferred revenues on the balancesheet:

Delinguent property taxes 84,376State revenues 136,972 221,348

Long-term and certain other liabilities, including bonds payable, arenot due and payable in the current period and therefore are not reported asliabilities in governmental funds. Long-term and other liabilities at year-endconsist of:

Bonds payable (32,710,000)Compensated absences, net of current portion (338,806)Deferred Gain on Bond Refunding, net of amortization (821,447)Accrued interest payable (511,596) (34,381,849)

Total net assets - governmental activities $ 136,811,122


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSFor the Year Ended June 30, 2005

Fund Fund Fund Fund Fund Fund11000 24101 24247 31100 32100 41000

GENERAL PUBLIC SCHOOL OTHEROPERATIONAL ESEA PL 81-874 BOND CAPITAL DEBT GOVERNMENTAL

FUND TITLE I IMPACT AID BUILDING OUTLAY - 20% SERVICE FUNDS TOTALSRevenues:

Federal Sources $ 15,133,995 3,728,306 4,445,528 3,556,422 10,447,626 37,311,877State Sources 27,444,415 7,982,473 35,426,888Local Sources 1,093,021 49,154 120,476 4,469,204 2,438,256 8,170,111

Total Revenues 43,671,431 3,728,306 4,445,528 49,154 3,676,898 4,469,204 20,868,355 80,908,876

Expenditures:Education, Current:

Direct Instruction 24,440,668 2,134,054 2,700,546 6,289,837 35,565,105Instructional Support 7,957,185 217,245 1,653,988 2,099,882 11,928,300Administration 1,071,581 330,786 191,240 42,958 289,916 1,926,481Business and Support Services 788,010 254,663 75,850 1,118,523Operation and Maintenance of Plant 6,910,061 5,484 27,201 437,248 7,379,994Food Services 2,970,382 2,970,382Athletics 925,231 159,543 1,084,774Non-Instructional Support 207,849 55,969 263,818Community Services 360,979 947,397 273,422 174,135 1,755,933Student Transportation 93,340 2,641,974 2,735,314

Education, Non-Current: Non Operating 20,623 20,623Debt Principal 2,850,000 2,850,000Debt Interest 1,674,419 1,674,419Capital Outlay 156,817 7,718,401 4,011,084 5,536,988 17,423,290

Total Expenditures 42,682,187 3,728,306 5,257,877 7,718,401 4,011,084 4,567,377 20,731,724 88,696,956

Revenues Over (Under) Expenditures 989,244 (812,349) (7,669,247) (334,186) (98,173) 136,631 (7,788,080)

Other Financing Sources (Uses):Premium on Bond Refunding 825,562 825,562Proceeds on Bond Refunding 17,210,000 17,210,000Refinancing on Bond Refunding (18,035,562) (18,035,562)Refund to Grantor (2,504) (2,504)Lease Purchase Payments (355,135) (355,135)

Net Other Financing Sources (Uses) (357,639) (357,639)

Net Change in Fund Balance 989,244 (812,349) (7,669,247) (334,186) (98,173) (221,008) (8,145,719)

Fund Balance - Beginning of Year, as Previously Reported 2,343,818 6,331,250 7,669,247 2,326,682 4,171,138 4,967,862 27,809,997

Adjustments and Residual Equity Transfers 356,631 (356,631)

Fund Balance - Beginning of Year, as Restated 2,343,818 6,687,881 7,669,247 2,326,682 4,171,138 4,611,231 27,809,997

Fund Balance - End of Year $ 3,333,062 5,875,532 1,992,496 4,072,965 4,390,223 19,664,278


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES WITH THE STATEMENT OF ACTIVITIESFor the Year Ended June 30, 2005

Total net change in fund balances - governmental funds $ (8,145,719)

Amounts reported for governmental activities in the Statement of Activities aredifferent because:

Capital outlays to purchase or build capital assets are reported in governmentalfunds as expenditures. However, for governmental activities, those assets areshown in the Statement of Net Assets and allocated over their estimated useful lives as annual depreciation expenses in the Statement of Activities. This is the amount by which capital outlays exceeds depreciation for the year.

Depreciation expense (4,574,739) Capital outlays 15,987,947 Excess of capital outlays over depreciation expense 11,413,208

In the Statement of Activities, certain operating expenses - compensated absencesand interest expense - are measured by the amounts incurred during the year. In the fund financial statements, however, expenditures are measured by the amountof financial resources used (essentially the amounts actually paid). The (increases)decreases in the liabilities for the year were:

Compensated absences payable (43,993) Accrued interest payable 152,378 108,385

Repayment of debt principal is an expenditure in the governmental funds, but itreduces long-term liabilities in the Statement of Net Assets and does not affectthe Statement of Activities.

Bond principal payments 2,850,000 Lease purchase principal payments 339,113

Bonds were refunded during the reporting period to the financial advantage of the District.A savings was capitalized as a Deferred Gain and will be amortized over the life of the new bonds . This amortization will be recorded in the Statement of Activities.

Amortization of Deferred Gain on Refunding 4,115

A portion of the premium resulting from the bond refunding was reserved to pay the next bond interest payment. This payment was recorded as an interest expense on the district wide Statement of Activities.

Early payment of bond interest expense (235,562) 2,957,666

Because some revenues will not be collected for several months after thefiscal year-end, they are not considered available revenues in the governmentalfunds. They are considered revenue in the Statement of Activities. The increase(decrease) in revenues receivable for the year were:

Property taxes (210,811) State revenue 136,972 (73,839)

Change in net assets of governmental activities $ 6,259,701


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22GENERAL FUNDFUND 11000 - GENERAL OPERATIONALSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005

Original FinalRevenues:

Federal Sources:PL874 - Impact Aid $ 17,865,496 17,865,496 17,782,113 - (83,383)Federal Direct Grants Indirect Costs 240,000 240,000 278,212 - 38,212Federal Flowthrough Grants Indirect Costs 214,296 214,296 252,607 - 38,311Access Board (E-rate) 175,000 175,000 377,486 - 202,48620% Restricted (3,634,461) (3,634,461) (3,556,423) - 78,038

14,860,331 14,860,331 15,133,995 - 273,664State Sources:

State Equalization Guarantee 27,105,382 27,393,526 27,444,415 288,144 50,889

Local Sources:School District Tax Levy 303,794 303,794 248,624 - (55,170)Oil and Gas Taxes 3,016 3,016 6,035 - 3,019Fees - Activities 115,000 115,000 29,596 - (85,404)Rents and Leases 250,000 250,000 220,572 - (29,428)Sale of District Assets - - 10,975 - 10,975Gifts, Donations, and Non-Categorical 50,000 50,000 41,941 - (8,059)Insurance Recoveries 10,000 10,000 45,331 - 35,331Earnings from Investments 425,000 425,000 469,855 - 44,855

1,156,810 1,156,810 1,072,929 - (83,881)Total Revenues 43,122,523 43,410,667 43,651,339 288,144 240,672


Direct Instruction 25,380,084 25,509,911 24,422,088 (129,827) 1,087,823Instructional Support 8,678,254 8,681,360 7,970,540 (3,106) 710,820Administration 1,157,749 1,186,796 1,088,376 (29,047) 98,420Business and Support Services 970,167 970,167 787,429 - 182,738Operations and Maintenance of Plant 7,183,527 7,356,942 6,942,874 (173,415) 414,068Athletics 947,068 954,733 925,396 (7,665) 29,337Non-Instructional Support 224,667 226,614 207,849 (1,947) 18,765Community Services 469,540 469,750 363,688 (210) 106,062

Education, Non-Current:Non-Operating 350,000 375,000 20,623 (25,000) 354,377Capital Outlay 105,000 105,000 - - 105,000

Total Expenditures 45,466,056 45,836,273 42,728,863 (370,217) 3,107,410

Revenues Over (Under) Expenditures (2,343,533) (2,425,606) 922,476 (82,073) 3,348,082

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 2,343,533 2,425,606 82,073

Actual(Budgetary

Basis)

VariancesBudgeted Amounts Original

to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24101 - ESEA TITLE ISTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 3,617,496 4,970,378 4,205,915 1,352,882 (764,463)


Direct Instruction 2,355,988 2,717,202 2,115,277 (361,214) 601,925Instructional Support 328,852 366,294 218,591 (37,442) 147,703Administration 335,086 367,785 331,129 (32,699) 36,656Operation and Maintenance of Plant 3,070 8,168 5,471 (5,098) 2,697Community Services 532,750 1,385,929 1,054,726 (853,179) 331,203Student Transportation 61,750 125,000 93,340 (63,250) 31,660 Total Expenditures 3,617,496 4,970,378 3,818,534 (1,352,882) 1,151,844

Revenues Over (Under) Expenditures $ - - 387,381 - 387,381

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24247 - PL 81-874 IMPACT AIDSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 6,330,000 6,330,000 4,445,528 - (1,884,472)

Expenditures: Education, Current:

Direct Instruction 2,945,268 2,945,268 2,694,237 - 251,031Instructional Support 1,916,756 1,916,756 1,653,606 - 263,150Administration 246,220 246,220 191,118 - 55,102Business and Support Services 356,757 356,757 253,883 - 102,874Operation and Maintenance of Plant 258,499 258,499 29,201 - 229,298Community Services 447,955 447,955 344,439 - 103,516

Education, Non-Current: Capital Outlay 158,545 158,545 58,587 - 99,958

Total Expenditures 6,330,000 6,330,000 5,225,071 - 1,104,929

Revenues Over (Under) Expenditures $ - - (779,543) - (779,543)

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF FIDUCIARY NET ASSETS - AGENCY FUNDS As of June 30, 2005

Agency FundsAssets

Cash and Investments $ 453,596

Liabilities

Deposits Held for Others $ 453,596


NOTES TO FINANCIAL STATEMENTS

32

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 NOTES TO FINANCIAL STATEMENTS June 30, 2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Central Consolidated School District No. 22 (District) have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The District’s more significant accounting policies are described in the sections below.

A. Reporting Entity

The financial reporting entity consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the nature and significance of their relationship with the primary government is such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. In evaluating how to define the District for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria for including a potential component unit within the reporting entity. The first criterion for including a potential component unit within the reporting entity is the governing body’s ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the District and/or its citizens, or whether the activity is conducted within the geographical boundaries of the District and is generally available to its citizens. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the District is able to exercise oversight responsibilities. Based upon the application of these criteria, there were no component units during the year ended June 30, 2005. The District is considered a primary government, since it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. The District has no component units as there are no other legally separate organizations for which the elected School Board members are financially accountable. The Central Consolidated District No. 22 School Board (School Board) was created under the

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provisions of Chapter 22, Article 5, Paragraph 4, NMSA 1978. The School Board is comprised of five members who are elected for terms of four years.

B. Function of Entity

The District provides kindergarten, elementary, and secondary high school educational services to school age residents of the District. The District operates under the direction of a local school board, under the provision of Chapter 22, Article 5, Paragraph 4, NMSA 1978, Comp. The local school board is charged with the following powers and duties:

(1) Subject to the rules of the department, develop educational policies for the

District; (2) Employ a local superintendent for the District and fix his/her salary;

(3) Review and approve the District budget; (4) Acquire, lease, and dispose of property; (5) Have capacity to sue and be sued;

(6) Acquire real estate by eminent domain as pursuant to the procedures in the Eminent Domain Code;

(7) Issue general obligation bonds of the District; (8) Provide for the repair and maintain all property belonging to the District; (9) For good cause and upon order of the district court, subpoena witnesses

and documents in connection with a hearing concerning any powers or duties of the local school boards;

(10) Contract for the expenditures of monies according to the provisions of the Procurement Code, except for expenditures for salaries,;

(11) Adopt rules pertaining to the administration of all powers or duties of the local school board;

(12) Accept or reject any charitable gift, grant, devise, or bequest. The particular gift, grant, devise, or bequest accepted shall be considered an asset of the District or the public school to which it is given;

(13) Offer and, upon compliance with the conditions of such offer, pay awards for the information leading to the arrest and conviction or other appropriate disciplinary disposition by the courts or juvenile authorities of offenders in cases of theft, defacement, or destruction of local District property. All such rewards shall be paid from District funds in accordance with rules promulgated by the department; and,

(14) Give prior approval for any educational program in a public school in the District that is to be conducted, sponsored, carried on or caused to be carried on by a private organization or agency.

The District operates under the auspices of the New Mexico Public Education Department and adheres to budgetary accounting principles and procedures promulgated by the New Mexico Public Education Department as approved by the State Board of Education and the Legislative Finance Committee in accordance with State statute (section 22-8-5 NMSA 1978, Comp.).

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C. Basis of Financial Presentation

The District’s accounts are organized on the basis of funds. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate entity with a self-balancing set of accounts established as needed to demonstrate compliance with finance-related legal and contractual provisions.

The District’s funds are classified into two categories—governmental and fiduciary. Each category, in turn, is divided into separate "fund types.”

Governmental Funds Governmental funds are used to account for the District’s general governmental activities, including the collection and disbursement of legally restricted monies, the acquisition or construction of general fixed assets, and the servicing of general long-term debt. Governmental funds include the following fund types:

General Operational Fund – the District’s primary operating fund accounts for all financial resources of the District that are not accounted for in other funds. Special revenue funds – reflect the revenues and expenditures that are legally restricted for specific purposes. Capital projects funds – account for the acquisition of fixed assets or construction of major capital projects. Debt service funds – account for revenues and expenditures associated with the servicing of long-term debt.

The District is required to present certain of its governmental funds as major funds based upon certain specific criteria. In addition to the General Operational Fund described above, the District has designated the following funds as major funds:

ESEA Title I (24101) – To account for a program funded by a Federal grant to supplement the regular instructional program for educationally deprived students. Funding authorized by the Elementary and Secondary Education Act of 1965, Chapter 1 of Title 1, as amended, Public Laws 100-297, 20 U.S.C. 2701. PL 81-874 Impact Aid (24247) – To account for a portion of the Federal assistance authorized by Public Law 81-874 and the Elementary and Secondary Education Act, Title VIII, as amended, allowing Federal assistance to be provided to local educational agencies adversely affected by Federal activities. The District is composed largely of non-taxable Indian lands held in trust by the Federal government limiting the property tax base required to adequately fund District schools serving children

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living on Indian lands. Bond Building (31100) – To account for bond proceeds and the interest earned thereon. The proceeds are restricted for the purposes of making additions to and furnishing of school buildings, or purchasing or improving school grounds, or any combination thereof, as approved by the voters of the District. Public School Capital Outlay – 20% (32100) - To account for the cost of improvement to land, buildings, and the purchase of buildings and equipment. Funding is provided by 20% credit for Impact Aid and locally assessed property taxes.

Debt Service (41000) – To account for monies designated for the payment of interest and principal due on general obligation bonds. Financing is provided by special tax levies approved by the voters of the District and assessed by the County Assessor and collected and remitted to the District by the County Treasurer.

Fiduciary Funds

Fiduciary funds account for assets held by the government in a trustee capacity. The District only had agency funds during the year ended June 30, 2005. The agency funds are as follow:

Agency funds are used to account for assets that the government holds for others in an agency capacity.

Central Activity Fund – accounts for assets held by the District as an agent for the individual schools and school organizations.

D. Measurement Focus and Basis of Accounting

Government-Wide Financial Statements (GWFS) The Statement of Net Assets and the Statement of Activities display information about the reporting government as a whole. Fiduciary funds are not included in the GWFS. Fiduciary funds are reported only in the Statement of Fiduciary Net Assets at the fund financial statement level. The Statement of Net Assets and the Statement of Activities were prepared using the economic resources measurement focus and the full accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Non-exchange Transactions.

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Program Revenues Program revenues included in the Statement of Activities derive directly from the program itself or from parties outside the District’s taxpayer or citizenry, as a whole; program revenues reduce the cost of the function to be financed from the District’s general revenues. Program revenues include charges for services such as: gate receipts at athletic events, food service charges, and swimming pool fees. Program-specific grants and contributions (operating and capital) include revenues arising from mandatory and voluntary non-exchange transactions with other governments, organizations, or individuals that are restricted for use in a particular program. Some grants and contributions consist of capital assets or resources that are restricted for capital purposes – to purchase, construct, or renovate capital assets associated with a specific program. These are reported separately from grants and contributions that may be used either for operating expenses or for capital expenditures of the program at the discretion of the reporting government. During the year ended June 30, 2005, the District received numerous Federal and State grants that were deemed program-specific grants and contributions. Allocation of Indirect Expenses In the government-wide financial statements, expenses are classified by function. The District reports all direct expenses by function in the Statement of Activities. Direct expenses are those that are clearly identifiable with a function. The District does not currently employ indirect cost allocation systems. Depreciation expense is specifically identified by function and is included in the direct expense of each function, except for that portion of depreciation that is identified as unallocated on the Statement of Activities. Interest on general long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. Inter-fund Transfers For the purposes of the Statement of Activities, all inter-fund transfers between individual funds have been eliminated. Fund Financial Statements (FFS) Governmental Funds The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined

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and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for unmatured principal and interest on general long-term debt which is recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Any effect of inter-fund activity has been eliminated from the district-wide financial statements. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets. The governmental funds use the following practices in recording revenues and expenditures:

Revenues Ad valorem taxes (property taxes) are susceptible to accrual.

Entitlements and shared revenues (which include state equalization and state revenue sharing) are recorded as unrestricted grants-in-aid at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met and the susceptible to accrual criteria have been met. Other receipts become measurable and available when cash is received by the District and are recognized as revenue at that time. Expenditures In the fund financial statements expenditures are calculated by character and function, as follows: Current (further classified by function) Debt Service Capital Outlay Salaries earned prior to year-end are accrued. Other Financing Sources (Uses) Permanent reallocations of resources between funds of the reporting entity are classified as inter-fund transfers. Inter-fund transfers between funds that are not expected to be repaid (or any other types, such as capital lease transactions, sale of fixed assets, debt extinguishments, long-term debt proceeds, etc.) are accounted for as other financing sources (uses). These other financing sources (uses) are recognized at the time the underlying events occur.

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Fiduciary Funds The agency funds are custodial in nature (assets equal liabilities) and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. These funds are used to account for assets that the District holds for others in an agency capacity.

E. Budgets and Budgetary Accounting

Formal budgetary integration is employed as a management control device during the year. The budget is classified as a non-appropriated budget under governmental accounting standards. A non-appropriated budget is a financial plan for an organization approved in a manner consistent with a constitution, charter, statute, or ordinance that is not subject to appropriation.

Budgets for the General Operational, Special Revenue, Debt Service and Capital

Projects Funds are adopted on a basis inconsistent with Generally Accepted Accounting Principles (GAAP). These budgets are prepared using the cash basis of accounting. Budgetary comparisons for the various funds in this report are on this non-GAAP budgetary basis. The District follows these procedures in establishing the budgetary data reflected in the financial statements:

(1) Prior to April 15, (unless a later date is fixed by the Superintendent of

Public Instruction) the local school board submits to the School Budget Planning Unit (SBPU) of the New Mexico Public Education Department an estimated budget for the school district for the ensuing fiscal year beginning July 1. The operating budget includes proposed expenditures and the means of financing them. All budgets submitted to the State Department of Public Education (SDPE) by the school district shall contain headings and details as prescribed by law.

(2) Prior to June 20 of each year, the proposed "tentative" budget will be

reviewed and approved by the SBPU and certified and approved by the local school board at a public hearing of which notice has been published by the local school board which fixes the estimated budget for the school district for the ensuing fiscal year.

(3) The "tentative" budget will be used by the District until a "final" budget

has been approved by SBPU and the local school board. The budget shall be integrated formally into the accounting system. Encumbrances shall be used as an element of control and shall be integrated into the budget system.

(4) The SBPU shall make corrections, revisions and amendments to the

estimated budgets fixed by the local school board to recognize actual cash balances and carryover funds, if any.

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(5) Prior to the first Monday of September of each year, SBPU shall approve and certify to each local school board a final budget for use by the local school board.

(6) No school board or officer or employee of a school district shall make any

expenditures or incur any obligation for the expenditure of public funds unless such expenditure or contractual obligation is made in accordance with an operating budget approved by the division, but this does not prohibit the transfer of funds between line items within a series of a budget.

(7) Budget change requests are processed in accordance with Supplement 1

(Budget Preparation and Maintenance) of the Manual of Procedures Public School Accounting and Budgeting. Such changes are initiated by the school district and approved by the SBPU.

(8) Legal budget control for expenditures is by function.

(9) Appropriations lapse at fiscal year end. Funds unused during the fiscal

year may be carried over into the next fiscal year by budgeting those in the subsequent fiscal year's budget. The budget of Central Consolidated School District No. 22 has been amended during the current fiscal year in accordance with these procedures. The budget statements included in the accompanying financial statements reflects the approved budget and amendments thereto.

Encumbrances represent commitments related to unperformed contracts for goods

or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds. Encumbrances lapse at the fiscal year end.

F. Cash and Cash Equivalents

Cash and cash equivalents include amounts on hand and in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the District.

G. Short-Term Inter-fund Receivables/Payables

During the course of operations, some transactions may occur between individual

funds for goods provided or services rendered. These receivables and payables, as well as any short-term inter-fund loans, are classified as "due from other funds" or "due to other funds" on the balance sheet.

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H. Inventory

Purchased inventory is valued at the lower of cost (first-in, first-out) or market. Inventory in the Food Services Fund consists of purchased food and non-food items and United States Department of Agriculture (USDA) commodities. Commodities are shown at the USDA procurement cost. Costs are recorded as expenditures at the time individual inventory items are used (consumption method). Reported inventories are equally offset by a fund balance reserve that indicates that they do not constitute "available spendable resources" even though they are a component of net current assets.

I. Prepaid Items

Payments made to vendors for services that will benefit periods beyond June 30, 2005 are recorded as prepaid items.

J. Capital Assets

Capital assets have been defined as assets with an initial individual cost of $5,000 or more having an estimated useful life in excess of one year. Capital assets have been recorded at historical costs if available. If unavailable, historical values were estimated by determining current values and deflating these amounts to the year of acquisition using readily available deflation factors. The District has not developed “internal use” software. Capitalizable purchased software is depreciated over its expected life using the straight-line method of depreciation. Books comprising the District’s libraries are not capitalized as the net value was considered immaterial to the financial statements at June 30, 2005. General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are recorded at cost when purchased. All donated fixed assets are valued at their estimated fair market value on the date received. Infrastructure, such as roads, bridges, storm drainage projects, etc., if any, are recorded and depreciated if appropriate. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Interest costs during construction, if any, are not capitalized. Additions, improvements, and other capital outlays that extend the useful life of an asset are capitalized. The District does not capitalize interest in regards to its capital assets. Estimated useful life is management’s estimate of how long the asset is expected to meet service demands. Straight-line depreciation is used based on the following estimated useful lives:

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Land Improvements 40 years Buildings and Building Improvements 60 years Equipment and Vehicles 5 to 10 years

K. Compensated Absences

Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. No liability has been recorded for non-vesting rights to receive sick pay benefits as the District's policies do not provide for payment or exchange in the future.

L. Long-Term Obligations

Long-term debt is recognized as a liability of a governmental fund when due or when resources have been accumulated in the Debt Service Fund for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund.

M. Fund Balances of Fund Financial Statements

Reserves represent those portions of fund equity not available for appropriation or expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. Portions of the fund balances have been reserved for subsequent year's expenditures, debt service, and inventory. The reservation represents the amount of cash appropriated in the subsequent year's budget.

N. Bond Discounts/Issuance Costs

For fund financial reporting, bond premiums and discounts as well as issuance costs, are recognized in the period the bonds are issued. Bond proceeds are reported as another financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.

O. Inter-Fund Transactions

Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund from expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other inter-fund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity transfers. All other inter-fund transfers are reported as operating transfers.

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P. Estimates and Management Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Q. Restricted Net Assets

For the government-wide Statement of Net Assets, net assets are reported as restricted when constraints placed on net asset used are either:

Externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments;

Imposed by law through constitutional provisions or enabling legislation.

The District’s policy is to apply restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.

R. Implementation of GASB 40

The Governmental Accounting Standards Board issued Statement No. 40 – Deposit and Investment Risk Disclosures – in March 2003. This is the year of implementation of the new reporting standard. The District is now required to disclose various elements of risk of which the deposits and investments of the District are exposed. The disclosures are included in Note 2 – Deposits and Investments – below.

2. DEPOSITS AND INVESTMENTS

Central Consolidated School District No. 22 is authorized under the provisions of Chapter 6, Article 10, paragraph 10 NMSA 1978, Comp. to deposit its money in banks, savings and loan associations, and/or credit unions whose accounts are insured by an agency of the United States.

All money not immediately necessary for the public uses of the District may be invested in:

(a) Bonds or negotiable securities of the United States, the State, or any county, municipality, or school district which has taxable valuation of real property for the last preceding year of at least one million dollars ($1,000,000) and has not defaulted in the payment of any interest or sinking fund obligation or failed to meet any bonds at maturity at any time within the preceding five years;

(b) Securities that are issued by the United States Government or by its agencies

or instrumentalities that are either direct obligations of the United States or are backed by the full faith and credit of the United States Government or agencies guaranteed by the United States Government;

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(c) Contracts with banks, savings and loan associations, or credit unions for the present purchase and resale at a specified time in the future of specific securities at specified prices at a price differential representing the interest income to be earned by the investor. The contract shall be on the books of the financial institution as being the property of the investor and the designation shall be contemporaneous with the investment. The contract shall be fully secured by obligations of the United States having a market value of at least one hundred two percent of the contract. The collateral required for investment in the contracts provided for in the subsection shall be shown on the books of the financial institution as being the property of the investor and the designation shall be contemporaneous with the investment.

The deposits and investments of the District are subject to various risks as discussed below:

Custodial Credit Risk – The risk that in the event of a bank failure, all of the District’s deposits and/or investments may not be returned. The District does not have a policy regarding custodial credit risk.

A. Deposits – The risk exists when a portion of the District’s deposits are not covered by depository insurance and are:

1. Uncollateralized, 2. Collateralized with securities held by the pledging financial

institution, or 3. Collateralized with securities held by the pledging financial

institution’s trust department or agent but not in the depositor’s (District’s) name.

The bank balance of deposits at June 30, 2005 was $1,001,045. The amount collateralized and held by the pledging bank’s trust department in the District’s name, and subject to custodial credit risk was $901,045.

B. Investments – This risk exists if the District’s securities are uninsured, are not registered in the name of the District, and are held by either

1. The counterparty, or 2. The counterparty’s trust department or agent but not in the

District’s name.

The bank balance of investments at June 30, 2005 was $4,987,858. The amount held by the trust department in the District’s name and subject to custodial credit risk was $4,987,858.

As of June 30, 2005, the District had the following investments:

Investment Maturity Fair Value S&P RatingsLocal Gov't. Investment Pool See Below 20,041,031 See BelowFreddie Mac 11/25/2005 498,190 AAAFedral Farm Credit Bank 8/3/2005 251,306 AAAFederal Home Loan Bank 7/8/2005 755,174 AAAFederal Home Loan Bank 10/14/2005 500,152 AAAFreddie Mac 12/8/2005 304,244 AAAFannie Mae 1/20/2006 325,905 AAAFannie Mae 1/20/2006 325,905 AAAFannie Mae 5/17/2006 496,589 AAAFreddie Mac 7/6/2005 949,620 AAAWells Fargo Money Market 7/1/2005 580,773 Not Rated Interest Rate Risk – The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk – State law limits investments to bonds or negotiable securities of the U.S., the State, municipalities, or school district, securities issued by the U.S. Government (or its agencies, either direct obligations or backed and guaranteed by the U.S. Government) and repurchase agreements with banks, savings and loan associations or credit unions. The District has no investment policy that would further limit its investment choices. Concentration of Credit – The District places no limit on the amount the District may invest in any one issuer. None of the above investments is over 5% of total investments except for the amount invested in the Local Government Investment Pool. Local Government Investment Pool – As of June 30, 2005, the District’s investment in the pool was as follows:

Investment Description Rating

U.S. Government Obligations Not RatedCommercial Paper A-1 / P-1Corporate Bonds BBB+ / Baa1Asset Backed Obligations AAARepurchase Agreemnts Not RatedBank, Savings & Loan Assoc. and Credit Union Deposits Not RatedSecurities Lending Not RatedVariable Rate Notes Not RatedTax Exempt Securities AMutual Funds Not Rated

The investments are valued at fair value based on quoted market values as of the valuation date.

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The State Treasurer Local Government Investment Pool (“Pool”) is not SEC registered. Section 6-10-101 NMSA 1978 empowers the State Treasurer, with the advice and consent of the State Board of Finance, to invest money held in the short-term investment fund in securities that are issued by the United States Government or are agencies sponsored by the United States Government. The Pool investments are monitored by the same investment committee and the same policies and procedures that apply to all other State investments. The Pool does not have unit shares. Per Section 6-10-10 1F, NMSA 1978, at the end of each month all interest earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the respective amounts deposited in the Pool and the length of time the Pool amounts were invested. Participation in the Pool is voluntary. Collateralization Schedule – The following disclosure is required by State Auditor Rule 2.2.2.10 N (4)(b).

Carrying BankAmount Balance

Wells Fargo Bank: Insured $ 100,000 100,000 Uninsured 2,389,616 5,889,173

$ 2,489,616 5,989,173

50% Collateralization Required 50% of Uninsured $ 2,944,587

Pledged Collateral 7,498,297

Over Collateralization 4,553,710

3. RECEIVABLES AND INTERFUND ACCOUNTS

Accounts receivable are recorded in the various funds. They consist of amounts receivable from governments and private agencies relating to various grant agreements and property taxes receivable.

Details of receivables as reflected on the Statement of Net Assets at June 30, 2005 are

detailed hereunder:

OtherGeneral Other Major Governmental Total

Property Taxes $ 5,592 $ 79,575 $ 47,482 $ 132,649 Due from Grantors - - 1,177,055 1,177,055 Due from Other Funds 875,548 - - 875,548 Total $ 881,140 $ 79,575 $ 1,224,537 $ 2,185,252 All amounts are considered collectible at June 30, 2005.

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The General Operational Fund has $875,548 due to it from Other Governmental Funds. These are funds in which the District gets reimbursement from Federal, State, and Tribal Governments and as such have cash deficits at year end. All of these amounts are considered collectible at year end.

4. CAPITAL ASSETS

Capital assets balances and activity for the year ended June 30, 2005 are as follows:

Capital Assets ClassBalance at July 1,

2004 Additions AdjustmentsBalance at June 30,

2005

Not Subject to Depreciation: Land 1,698,547$ 95,000 - 1,793,547$ Construction in Progress 10,788,513 13,146,678 (10,524,492) 13,410,699 Total Non-Depreciable Assets 12,487,060 13,241,678 (10,524,492) 15,204,246

Subject to Depreciation: Land Improvements 8,860,940 159,169 - 9,020,109 Buildings and Improvements 160,069,598 11,583,898 (45,540) 171,607,956 Equipment and Vehicles 6,450,062 1,575,321 (109,950) 7,915,433 Total Depreciable Assets 175,380,600 13,318,388 (155,490) 188,543,498 Total Assets 187,867,660 26,560,066 (10,679,982) 203,747,744

Less Accumulated Depreciation: Land Improvements 3,298,890 245,873 - 3,544,763 Buildings and Improvements 41,778,785 3,489,421 (30,967) 45,237,239 Vehicles and Equipment 2,895,848 839,444 (76,895) 3,658,397 Total Depreciation 47,973,523 4,574,738 (107,862) 52,440,399

Governmental Activities Capital Assets, Net $ 139,894,137 $ 21,985,328 $ (10,572,120) $ 151,307,345

Depreciation Expense by Function Direct Instruction 3,280,864$ Instructional Support 9,120 Administration 137,709 Business and Support Services 57,687 Operation and Maintenance of Plant 454,487 Food Services 8,753 Athletics 150,000 Transportation 476,118

Total Depreciation Expense 4,574,738$

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The District’s construction in progress includes the following major projects:

Shiprock Performing Arts Center 6,178,310$ 5,386,330$ 791,980$ FY06

Kirtland Performing Arts Center 6,178,310 6,140,569 37,741 FY06

Kirtland Early Childhood Center 990,000 658,740 331,260 FY06

Tse Bit Ai Middle School Kitchen 300,000 22,101 277,899 FY06

Alarm and Intercom Upgrades (DCU) 847,757 294,701 553,056 FY06

Mechanical Upgrades (DCU) 3,675,757 908,258 2,767,499 FY06

18,170,134$ 13,410,699$ 4,759,435$

Project Budget

Construction in Progress

Project Balance

Estimated Completion

Date

5. LONG-TERM DEBT

A. Changes in Long-Term Liabilities

During the year ended June 30, 2005, the following changes occurred in the long-term liabilities.

Balance at July 1, 2004 Additions Deletions

Balance at June 30,

Current Portion

General Obligation Bonds Payable $ 36,150,000 $ 17,210,000 $ 20,650,000 $ 32,710,000 $ 2,990,000 Plus Deferred Gain on Refunding - 825,562 4,115 821,447 133,117 Total Bonds Payable 36,150,000 18,035,562 20,654,115 33,531,447 3,123,117 Lease Purchase Contracts 339,113 - 339,113 - - Accrued Compensated Absences 368,512 327,312 272,319 423,505 84,699

$ 36,857,625 $ 18,362,874 $ 21,265,547 $ 33,954,952 $ 3,207,816

B. General Obligation Bonds

The District’s general obligation bonds were issued for the purposes of creating, remodeling, making additions to and furnishing school buildings, and purchasing and improving school grounds and are payable solely from general property taxes that are levied against all taxable property in the District. Interest rates on the outstanding bonds range from 1.41% to 5.50%. The bonds are payable out of the Debt Service Fund (Fund 41000). The following is a schedule of the debt service requirements for all general obligation bonds as of June 30, 2005.

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YEAR ENDED JUNE 30 PRINCIPAL INTEREST TOTAL

2006 2,990,000 1,286,466 4,276,466 2007 2,975,000 1,169,664 4,144,664 2008 2,925,000 1,079,260 4,004,260 2009 2,800,000 985,993 3,785,993 2010 2,720,000 882,233 3,602,233

2011-2015 13,300,000 2,494,420 15,794,420 2016-2018 5,000,000 267,955 5,267,955

Total $32,710,000 $8,165,991 $40,875,991

C. Refunding

During the year ended June 30, 2005, the District issued refunding bonds to provide sufficient resources to pay off selected outstanding debt obligations. On February 15, 2005, general obligation refunding bonds in the original amount of $17,210,000 were issued to reduce total debt service payments over the next nine years by $1,480,700 which resulted in net present value savings of $1,292,369. The proceeds of the bonds plus the premium paid to the District of the advance refunding will be used to retire $17,800,000 of bond principal outstanding on the January 1996, February 1997, and September 1997 general obligation bonds. The bonds to be retired on August 15, 2005 are no longer included as outstanding debt on the District’s books. Interest payments are due semi-annually on August 15 and February 15. Interest rates on the bonds range from 3.0% to 5.0%. Principal payments in varying amounts are due annually on August 15 through 2013.

D. Subsequent Event – Bond Issuance

Subsequent to June 30, 2005, the District issued general obligation bonds (Series 2005B dated October 25, 2005) in the original amount of $7,500,000. Proceeds will be used for construction of a new Career Prep High School in Shiprock and construction on the initial phase of a new Kirtland Middle School. Interest is due semi-annually on August 15 and February 15. Interest rates on the bonds range from 3.75% to 5.25%. Principal payments in varying amounts are due annually on August 15 through 2020.

E. Lease Purchase

In May of 1995 the District entered into a lease purchase agreement for the Honeywell Energy Management System. The lease payments are made out of the Energy Efficiency Act Fund (Fund 31800). The District paid off this lease during the current fiscal year.

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Contract Date Cost of Assets Purchased Interest Rate Payment Terms Maturity Date Balloon Payment

May 30, 1995 $2,468,801 7.49% $88,784/quarter 06/01/05 None

F. Compensated Absences

All District employees who have twelve-month contracts are granted eighteen days of annual leave per annum. The maximum that can be accrued is 36 days. Employees will be compensated for unused vacation leave upon termination. The board reserves the right to negotiate a separate annual leave agreement with the superintendent. The current portion of compensated absences (estimated amount due within one year) of $84,699 is included with the caption “Accounts Payable and Other Current Liabilities.” Total accrued compensated absences amounted to $423,505 at June 30, 2005, $338,806 which is considered long-term. Historically, the compensated absences have been paid out of the following funds in the percentages noted: General Operating Fund 11000 71.3% Transportation Fund 13000 7.3% PL 81-874 Impact Aid Fund 24247 7.2% ESEA Title I Fund 24101 4.3% Food Services Fund 21000 2.5% Other Special Revenue Funds (6) (less than 2.5% each) 7.4%

6. REVENUES

A. Property Tax Levies

Central Consolidated School District No. 22 receives property tax payments made by the property owners of the District from the San Juan County Treasurer for operational, public school capital improvements, and debt service purposes.

Property taxes are assessed on January 1st of each year, except on livestock, and are payable in two equal installments on November 10th of the year in which the tax bill is prepared and April 10th of the following year. Property taxes are considered delinquent if not paid within 30 days of their due date. Property taxes are collected by the County Treasurer and remitted to the District in the month following collection.

Although there are no restrictions placed on property taxes collected for operational purposes, restrictions do exist on the amounts collected under the Public School Capital Improvements Act (22-25-1 to 22-25-10 NMSA 1978) and the amounts collected as a result of issuing general obligation bonds.

Under the provisions of the Public School Capital Improvements Act, any local school board may adopt a resolution to submit to the qualified electors of the

school district the question of whether or not a property tax should be imposed on the net taxable value of property allocated to the school district for the purpose of capital improvements. The resolution shall:

(1) Identify the capital improvements;

(2) Specify the rate of the proposed tax, which shall not exceed two dollars ($2.00) on each $1,000 of net taxable value of property;

(3) Specify the date an election will be held;

(4) Limit the imposition of the tax to no more than four property tax years.

If approved, any revenues produced by the tax and any state distribution resulting

to the District under the act shall be expended only for the capital improvements specified in the authorized resolution. During the year ended June 30, 2003 the District’s electorate approved the two-mill tax for an additional 4 years (2004, 2005, 2006, and 2007).

General obligation bonds may be issued for the purpose of erecting, remodeling, making additions to, and the furnishing of school buildings, or purchasing or improving school grounds or any combination of these purposes. Such bonds shall be fully negotiable and constitute negotiable instruments.

The school board shall establish adequate budgetary provisions, approved by the

School Management Division, to promptly pay, as it becomes due, all principal and interest on general obligation bonds issued by the school district. The full faith and credit of a school district shall be pledged to the payment of the principal and interest on general obligation bonds issued by the school district.

The Board of County Commissioners shall levy and collect upon all taxable

property within a school district in the county such tax as is necessary to pay the interest and principal on general obligation bonds issued by the school district as the interest and principal become due, without limitation as to rate or amount. During the year ended June 30, 2005, property taxes were imposed upon the net taxable value of property allocated to the school district in the following amounts (rate per $1,000 of net taxable value):

Residential Non-ResidentialGenral Operational Purposes 0.336 0.500 Public School Capital Improvements 2.000 2.000 General Obligation Bonds-Debt Service 6.729 6.729

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Property tax revenue recognized by the District during the year ended June 30, 2005 amounted to the following:

General Operational Purposes $ 249,006 $ 7,238 $ 256,244 Public School Capital Improvements 1,275,075 40,863 1,315,938 General Obligation Bonds-Debt Service 4,298,309 117,696 4,416,005 Public School Capital Outlay-20% 61,996 1,509 63,505 Totals $ 5,884,386 $ 167,306 $ 6,051,692

Real Property Taxes

Oil and Gas Taxes Total

B. State Equalization Guarantee

Each school district in the State of New Mexico receives a "state equalization guarantee distribution" which is defined as "that amount of money distributed to each school district to insure that the school district's operating revenue, including its local and federal revenues, is at least equal to the school district's program cost" (as defined in Chapter 22, Section 8-25, NMSA 1978).

A school district's program costs are determined through the use of various formulas using "program units" which take into consideration (1) early childhood education; (2) basic education; (3) special education; (4) bilingual-multi cultural education; (5) size, etc. Payment is made from the public school fund under the authority of the chief (director of public school finance). The District received $27,444,415 in state equalization guarantee distributions during the year ended June 30, 2005.

C. Transportation Distribution

Money in the transportation distribution of the public school fund shall be used only for the purpose of making payments to each school district for the to-and-from school transportation costs of students in grades kindergarten through twelve attending public school within the school district, and of three- and four-year-old children who meet the state board approved criteria and definition of developmentally disabled, and for transportation of students to and from their regular attendance centers and the place where vocational education program are being offered.

The transportation distribution is allocated to each school district according to an objective formula developed by the State Transportation Director and the Director of Public School Finance. In the event the sum of the proposed transportation allocations to each school district exceeds the amounts in the transportation distribution, the allocation for each school district will be reduced in the proportion that the local school district allocation bears to the total statewide transportation distribution.

The Department shall make periodic installment payments to school districts

during the school year from the transportation distributions, based upon the allocations certified by the state transportation director.

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The District received $2,639,178 in transportation distributions during the year ended June 30, 2005.

D. SB-9 State Match

The Director shall distribute to any school district that has imposed a tax under the Public School Capital Improvements Act (22-25-1 to 22-25-10 NMSA 1978) an amount from the public school capital improvements fund that is equal to the amount by which the revenue estimated to be received from the imposed tax as specified in Subsection B of Section 22-25-3 NMSA 1978, assuming a one hundred percent collection rate, is less than an amount calculated by multiplying the product obtained by the rate imposed in the District under the Public School Capital Improvements Act. The distribution shall be made by December 1, of each year that the tax is imposed in accordance with Section 22-25-3 NMSA 1978. However, in the event that sufficient funds are not available in the Public School Capital Improvements fund to make the state distribution provided for in this section, the dollar per program unit figure shall be reduced as necessary.

The District received notice that it is entitled to receive $136,972 in SB-9 state matching funds for the year ended June 30, 2005; however, none of this revenue was received by year end.

E. Public School Capital Outlay

Under the provisions of Chapter 22, Article 24, a public school capital outlay fund was created. The money in the fund may be used only for capital expenditures deemed by the Public School Capital Outlay Council necessary for an adequate educational program.

The Council shall approve an application for grant assistance from the fund when the Council determines that:

(1) A critical capital outlay need exists;

(2) The residents of the school districts have provided all available

resources to the district to meet its capital outlay requirements;

(3) The school district has used its resources in a prudent manner; (4) The District is in a county or counties that have participated in the

reappraisal program and the reappraised values are on the tax rolls, or will be used for the tax year 1979 as certified by the property tax division;

(5) The school district has provided insurance for buildings of the school

district in accordance with the provisions of Section 13-5-3 NMSA 1978;

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(6) The school district is indebted at not less than seventy-five percent of the total debt authorized by law;

(7) The school district has submitted a five-year facilities master plan that

includes enrollment projections.

The Council shall consider all applications for assistance from the fund and after public hearing shall either approve or deny the application. Applications for grant assistance shall only be accepted by the Council after a district has complied with the provisions of this section. The Council shall list all applications in order of priority and all allocations shall be made on a priority basis; provided, however, except in the case of an emergency, that the order of priority shall first reflect those projects which have been previously funded but are not as yet completed, excluding expansion of those projects and contingent upon maintenance of the required local support.

Money in the fund shall be disbursed by warrant of the Department of Finance and Administration on vouchers signed by the Secretary of Finance and Administration following certification by the Council that the application has been approved.

During the year ended June 30, 2005, the District did not receive any new critical capital outlay funds. The District has received an award for the construction of a new Career Prep High School in Shiprock. The PSCOC award to the District is $2,940,787, and the District will spend an additional $2,129,535 on construction costs for this project.

F. Instructional Materials

The New Mexico State Department of Education shall establish a separate instructional materials account for each school district, state institution, private school, or adult basic education center in the state having students in attendance entitled to the free use of instructional materials pursuant to the Instructional Material Law (22-15-1 through 22-15-14 NMSA 1978).

On or before July 1 of each year, the Public Education Department shall allocate to each school district, state institution, or private school not less than ninety percent of its estimated entitlement as determined from the estimated forty-day membership for the next school year. A school district's, state institution's, or private school's entitlement is that portion of the total amount of the annual appropriation less a deduction for a reasonable reserve for transportation charges and emergency expenses that its forty-day membership bears to the forty-day membership of the entire state. The allocation of adult basic education shall be based on a full-time equivalency obtained by multiplying the total previous year's enrollment by .25. On or before January 15 of each year, the Public Education Department shall re-compute each entitlement using the forty-day membership for that year, except for adult basic education, and shall allocate the balance of the annual appropriation

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compensating for any over- or under-estimation of the first allocation. An amount not to exceed thirty percent (50%, beginning in fiscal year 2006) of the allocation of each individual instructional materials account may be used for instructional materials not included on the multiple list provided for in Section 22-15-8 NMSA 1978. The districts are allowed to carry forward unused instructional materials funds from year to year.

During the year ended June 30, 2005 the District received $617,939 and expensed $426,287 for instructional materials under this program.

G. Federal Grants

The District receives revenues under Federal programs that are legally restricted to expenditures for specific purposes. These programs are reported as Special Revenue Funds. Each program operates under its own budget, which has been approved by the New Mexico Public Education Department. This department also administers these funds. The District also receives reimbursements under the National School Lunch and Breakfast Programs for its food services operations and distributions of commodities through the New Mexico Human Services Department.

H. Indirect Costs

The District received cost reimbursements from the various Federal agencies for Federal programs it administers. The indirect costs are shown as expenditures of the Special Revenue Funds and as revenues in the General Operational Fund. Federal projects’ indirect cost reimbursements are budgeted as revenue in the general operating account. The accompanying statements of budgeted and actual revenues and expenditures for Federal projects are based on the Federal budgets of each project, which included the budgeted indirect costs.

7. RETIREMENT PLAN

Substantially all of the District’s full-time employees participate in a public employee retirement system authorized under the Educational Retirement Act (Chapter 22, Article 11 NMSA 1978). The Educational Retirement Board (ERB) is the administrator of the plan, which is a cost-sharing multiple-employer defined benefit retirement plan. The plan provides for retirement, disability benefits, and cost-of-living adjustments to plan members and beneficiaries. The ERB issues a separate, publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to ERB, P.O. Box 26129, Santa Fe, New Mexico 87502.

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A. Retirement Eligibility

The benefit for retirement at age 60, or after 25 years of service before age 60, is an annual sum equal to the "final average salary" multiplied by the total number of years of service credit times 2.35%. A member is eligible to retire when: (1) The member's age plus New Mexico earned service credit equal 75; or (2) The member has acquired a total of 25 years of earned and allowed service

credit, regardless of age; or (3) The member has five years of earned service credit and is 65 years of age.

A further requirement to be eligible to retire is that one must be a "member" having at least one year of employment after July 1, 1957 and at least five years of contributory employment. Eligible members who have one year of employment after July 1, 1957, but less than the required five, may contribute to the fund for each year needed. The cost of such contributions is 15.2% of the average salary of the last five years for each year of contributory employment needed plus 3% compound interest from July 1, 1957 to the date of payment.

When a member has completed five or more years of "earned service credit" and has made contributions for at least five years, the member may terminate employment, leave his/her contributions in the retirement fund, and retire.

A member having less than 25 years of service and who is under age 60, but is

otherwise eligible to retire, may do so at a reduced benefit. The reduction is 2.4% for each year under age 60 down to age 55 plus 7.2% for each year under age 55.

B. Funding Policy

Plan members are required to contribute 7.6% of their gross salary. The District is required to contribute 8.65% of the gross covered salary. (These contribution amounts for both the plan members and the District will increase over the next five year beginning with fiscal year 2006.) The contribution requirements of plan members and the District are established in Chapter 22, Article 11 NMSA 1978. The requirements may be amended by acts of the legislature. The District’s contributions to ERB for the years ending June 30, 2005, 2004, and 2003 were $3,481,034, $3,490,834, and $3,233,553 respectively, equal to the amount of the required contributions for each year.

8. RETIREE HEALTH CARE ACT CONTRIBUTIONS

The Retiree Health Care Act (Chapter 10, Article 7C NMSA 1978) provides comprehensive core group health insurance for persons who have retired from certain public service in New Mexico. The Retiree Health Care Authority is the administrator of the plan. The purpose is to provide eligible retirees, their spouses, dependents, and surviving spouses and dependents with health insurance consisting of a plan, or optional plans, of benefits that can be purchased by funds flowing into the Retiree Health Care Fund and by co-payments or out-of-pocket payments of eligible retirees.

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Monies flow to the Retiree Health Care Fund on a pay-as-you-go basis from eligible employers and eligible retirees. Eligible employers are institutions of higher education, school districts, or other entities participating in the Public School Insurance Authority and state agencies, state courts, magistrate courts, municipalities, or counties, which are affiliated to or covered by the Educational Retirement Act or the Magistrate Retirement Act. Eligible retirees are: A. Retirees who make contributions to the fund for at least five years prior to

retirement and whose eligible employer during that period of time, made contributions as a participant in the Retiree Health Care Act on that person’s behalf, unless that person retires on or before the employer’s NMRHCA effective date, in which event the time period for employee and employer contributions shall become the period of time between the employer’s effective date and the date of retirement; or

B. Retirees defined by the Act who retired prior to July 1, 1990, and former

legislators who served at least two years.

Each participating employer makes contributions to the fund in the amount of one and three-tenths percent (1.3%) of each participating employee's annual salary. Each participating employee contributes to the fund an employee contribution equal to sixty-five hundredths of one percent (.65%) of the employee's annual salary. Each participating retiree pays a monthly premium for the medical plus basic life plan and an additional participation fee of five dollars ($5.00) if the eligible participant retired prior to the employer’s NMRHCA effective date or is a former legislator. Participants may also enroll in optional plans of coverage.

Contributions from participating employers and participating employees become the property of the Retiree Health Care Fund and are not refundable under any circumstances, including termination of employment or termination of the participating employer's operation or participation in the Retiree Health Care Act. The employer, employee, and retiree contributions are required to be remitted to the Retiree Health Care Authority on a monthly basis.

The Retiree Health Care Authority issues a separate, publicly available audited financial report that includes post employment benefit expenditures of premiums and claims paid, participant contributions (employer, employee, and retiree), and net expenditures for the fiscal year. The report also includes the approximate number of retirees participating in the plan. That report may be obtained by writing to the Retiree Health Care Authority, Albuquerque State Government Center, 401 Roma, NW, Suite 200, Albuquerque, NM 87102.

For the fiscal year ended June 30, 2005, the District remitted $522,220 in employer contributions and $261,108 in employee contributions to the Retiree Health Care Authority.

9. DEFICIT FUND BALANCE

The District is supported by various Federal and State grant subsidies received under the authority of grant and/or statute. All deficit fund balances at June 30, 2005, as listed below, are expected to be recovered during the fiscal year ended June 30, 2006.

Special Revenue Funds:

Title I - Program Improvement - Fund 24105 $ 5,302 Title V - Innovation Strategies - Fund 24150 364 Title I - Program Improvement - Fund 24162 66,555 Johnson O'Malley - Fund 24231 28,995 NM GRADS - Fund 24249 11,000 Distance Learning Telemed Grant - Fund 24298 456,447 Navajo Nation Grants - Fund 24301 54,658 CYFD Preschool - Fund 25335 8,861 Incentives for School Improvements - Fund 25374 30,818 Teacher Mentoring - Fund 25433 4,028

Capital Projects Funds:

Public School Capital Outlay - Fund 31200 $ 28,522

10. ADJUSTMENTS AND RESIDUAL EQUITY TRANSFERS

Residual equity transfers were made to PL 81-874 Impact Aid (Fund 24247) in the amount of $356,631; Title I Program Improvement (Fund 24105) in the amount of $5,307; and STAR Schools (Fund 24237) in the amount of $3,481. Residual equity transfers were made from ESEA Title VI (Fund 24112) in the amount of $17,031; Education for Homeless Children (Fund 24113) in the amount of $4,091; Carl Perkins (Fund 24119) in the amount of $37,112; Learn and Serve (Fund 24126) in the amount of $4,800; Safe and Drug Free Schools (Fund 24128) in the amount of $14,669; Title VII Indian Education (Fund 24215) in the amount of $196,609; First A/C New Mexico GRADS (Fund 24268) in the amount of $25,000; ETIP Project (Fund 24307) in the amount of $60,072; LANL Foundation (Fund 25113) in the amount of $813; Meridian Oil (Fund 25120) in the amount of $1,351; and Center for Teaching Excellence (Fund 25338) in the amount of $3,871. This will close out Funds 24105, 24112, 24113, 24119, 24126, 24128, 24237, 24268, 24307, 25113, 25120, and 25338. In the 1990’s through 2001, the District had difficulties recording revenues and deposits to correct bank accounts and funds. It was also a common practice to expend funds from Fund 24247 for various funds while waiting approval from the State for budget authority or cash reimbursements. However, when budget authority was received or the reimbursement came in on a reimbursable fund, the cash was not returned to PL 81-874 Impact Aid causing excess cash in funds that had already expended their budgets. The District had continued to carry existing balances forward as it worked on reconciling these accounts. However, the District is now closing out these accounts to give a truer financial representation of the District and its grant funds.

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If further information comes to light in the future which requires the District to reimburse any account closed out at this time, the District will dispense this money from PL 81-874 Impact Aid as the money has been transferred into that fund at this time as a clearing fund based on the identifiable history in the grants.

11. RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and

destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. The District has joined other local districts in a multi-line pool and a worker’s compensation pool. These public entity risk pools operate as a common risk management and insurance program for worker’s compensation and property and casualty coverage.

These pools are funded entirely by member contributions and are administered by the New Mexico Public Schools Insurance Authority (NMPSIA). The pools are authorized by joint powers agreements entered into by each district as a separate and independent government and legal entity pursuant to the provisions of NMSA 1978 Sections 11-1-1. Annual premiums are paid by the District to NMPSIA for coverage provided in the following areas:

1. Worker’s Compensation; 2. Property and automobile liability and physical damage; 3. Liability and civil rights and personal injury; 4. Contract school bus coverage; and 5. Crime

The District has not filed any claims for which the settlement amount exceeded the insurance coverage during the past three years. However, should a claim be filed against the District that exceeds the insurance coverage described above and should that claim be allowable under New Mexico State Statutes, the District would be responsible for a loss in excess of the coverage amounts. As claims are filed, the New Mexico Public Schools Insurance Authority assesses and estimates the potential for loss. To the best of management's knowledge and belief, all known and unknown claims will be covered by insurance. However, information regarding incurred but not reported claims is not available on a school district-by school district basis.

New Mexico Public Schools Insurance Authority has not provided information that would allow for a reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal year for a single school district within the pool.

12. RECONCILIATION OF BUDGETARY BASIS TO GAAP BASIS STATEMENTS

GENERALOPERATIONAL ESEA PL 81-874 BOND

FUND TITLE I IMPACT AID BUILDING

Revenues over expenditures - Budgetary Comparison Statements-Budgetary Basis $ 922,476 387,381 (779,543) (8,403,266)

(12,507)(6,847)

(6,192) (101,824)

(6,510) (332) (1,196)(477,609)

(812,349) (7,669,247)

Adjustments:Increase (Decrease) in:

Investment income/Deposits 18,507Taxes ReceivableDue from GrantorInventory

(Increase) Decrease in:Accounts payable 71,554 746,526Accrued expenses 59,378 19,006 70,214Compensated absencesDeferred revenue 8,432

Refunds to Grantor

Revenues over expenditures Statement of revenues,expenditures and changesin fund balance $ 989,244

PUBLIC SCHOOL TOTAL OTHER

CAPITAL DEBT MAJOR GOVERNMENTALOUTLAY - 20% SERVICE FUNDS FUNDS TOTALS

Revenues over expenditures - Budgetary Comparison Statements-Budgetary Basis $ 484,137 (112,016) (7,500,831) (6,959,550)

(160) (148,228) (155,235) (29,478) (184,713)(218,194) (218,194)

(818,729) (108,665) (101,537) (210,202)

(8,038) (2,962) (11,000)(308,116) (476,389) (784,505)

(2,504) (2,504)

(334,186) (98,173) (7,924,711) (221,008) (8,145,719)

541,281

Adjustments:Increase (Decrease) in:

Investment income/Deposits 566 1,010 7,576 1,232 8,808Taxes ReceivableDue from GrantorInventory 4,044 4,044

(Increase) Decrease in:Accounts payableAccrued expenses 148,598 63,499 212,097Compensated absencesDeferred revenue 161,061

Operating Transfers In (Out)

Revenues over expenditures Statement of revenues,expenditures and changesin fund balance $

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13. FUNDS OMITTED FROM FINANCIAL STATEMENT PRESENTATION

Certain funds contain no year end balances for balance sheet presentation; however, they had revenue, expenditure, or fund balance activity during the year. As such, the following funds presented on the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances are not presented on the Combining Balance Sheet: ESEA Title I Program Improvement (Fund 24105); ESEA Title VI (Fund 24112); Education for Homeless Children and Youth (Fund 24113); Carl Perkins (Fund 24119); Learn and Serve America (Fund 24126); Safe and Drug Free Schools (Fund 24128); Rural and Low Income (Fund 24160); IDEA and Technology (Fund 24166); Advanced Placement Incentives (Fund 24235); STAR Schools (Fund 24237); First A/C NM Grads (Fund 24268); ETIP Project (Fund 24307); Smaller Learning Communities (Fund 24317); Literacy Through Libraries (Fund 24335); LANL Foundation (Fund 25113); Jordan Fundamentals Grant (Fund 25117); Meridian Oil (Fund 25120); PNM Foundation, Inc. (Fund 25123); Toyota Time Grant (Fund 25137); Center for Teaching Excellence (Fund 25338); Full Day Kindergarten (Fund 25372); Bridging of the Arts (Fund 25428); and Energy Efficiency Act (Fund 31800). One fund had ending balance sheet balances with no revenue, expenditure or fund balance activity. Therefore, TANIF – After School Child Care (Fund 25341) is presented on the Combining Balance Sheet but is not presented on the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. Finally, certain funds contain ending balances or revenue, expenditure, or fund balance activity for the year on a modified accrual basis but have no activity on a cash basis. Therefore, the following funds are presented on the Combining Balance Sheet and/or the Combining Statement of Revenues, Expenditures, and Changes in Fund Balances but are not presented on the Statements of Revenues and Expenditures – Budget and Actual: ESEA Title I Program Improvement (Fund 24105); ESEA Title VI (Fund 24112); Education for Homeless Children and Youth (Fund 24113); Carl Perkins (Fund 24119); Safe and Drug Free Schools (Fund 24128); First A/C NM Grads (Fund (24268); Smaller Learning Communities (Fund 24317); Literacy Through Libraries (Fund 24335); LANL Foundation (Fund 25113); Meridian Oil (Fund 25120); and Center for Teaching Excellence (Fund 25338).

14. CONTINGENT LIABILITIES

Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the Federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this time, although the District expects such amounts, if any, to be immaterial.

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Lawsuits – The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District’s counsel, the resolution of these matters will not have a material effect on the financial condition of the District. Arbitrage – Under the Tax Reform Act of 1986, interest earned on the debt proceeds in excess of interest expense or expenditure prior to the disbursement of the proceeds must be rebated to the Internal Revenue Service (IRS). Management believes there is no significant tax arbitrage rebate liability at year-end.

15. FINANCIAL STATEMENT PREPARATION These financial statements were prepared by the staff of Central Consolidated School District No. 22.

AUDITED SUPPLEMENTARY INFORMATION

MAJOR CAPITAL PROJECTS FUNDS

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31100 - BOND BUILDINGSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005

Actual(Budgetary

Basis)


to FinalFinal

to ActualOriginal FinalRevenues:

Local Sources $ 85,000 85,000 61,661 - (23,339)

Expenditures:Education, Non Current:

Capital Outlay 9,141,331 8,488,266 8,464,927 653,065 23,339

Revenues Over (Under) Expenditures (9,056,331) (8,403,266) (8,403,266) 653,065 -

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 9,056,331 8,403,266


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 32100 - PUBLIC SCHOOL CAPITAL OUTLAY - 20%STATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005

Actual(Budgetary

Basis)


to FinalFinal


Federal Sources $ 3,573,099 3,573,099 3,556,422 - (16,677)Local Sources 76,362 76,362 120,070 - 43,708

Total Revenues 3,649,461 3,649,461 3,676,492 - 27,031

Expenditures:Education, Non-Current:

Capital Outlay 5,962,676 6,045,593 3,192,355 (82,917) 2,853,238

Revenues Over (Under) Expenditures (2,313,215) (2,396,132) 484,137 (82,917) 2,880,269



MAJOR DEBT SERVICE FUND

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 41000 - DEBT SERVICESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005

Actual(Budgetary

Basis)


to FinalFinal


Local Sources $ 4,753,462 4,753,462 4,455,361 - (298,101)


Administration 60,000 60,000 42,958 - 17,042Education, Non-Current:

Debt Service:Principal Payment 2,850,000 2,850,000 2,850,000 - - Interest Payment 1,674,420 1,674,420 1,674,419 - 1

Total Expenditures 4,584,420 4,584,420 4,567,377 - 17,043

Revenues Over (Under) Expenditures 169,042 169,042 (112,016) - (281,058)

Other Financing Sources (Uses):Premium on Bond Refunding - - 825,562 - 825,562Proceeds on Bond Refunding - - 17,210,000 - 17,210,000Refinancing on Bond Refunding - - (18,035,562) - (18,035,562)

Net Other Financing Sources (Uses) - - - - -

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses 169,042 169,042 (112,016) - (281,058)

Budgetary Notation-Cash Appropriatedfrom Prior Year $ (169,042) (169,042)


NON-MAJOR FUNDS

NON-MAJOR SPECIAL REVENUE FUNDS DESCRIPTIONS

Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Teacherage (12000) – To account for revenues and expenditures associated with district owned multi-bedroom housing units rented to District employed teachers. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. Transportation (13000) – To account for State Equalization – Transportation funds authorized by Section 22-8-26, NMSA, 1978 designated for the costs of transporting school-age children who are students within the District. Instructional Materials (14000) – To account for Funding designated for instructional materials purchases as authorized by Sections 22-15-1 through 22-15-14, NMSA, 1978. Food Services (21000) – To account for funding provided pursuant to the Code of Federal Regulations, Title VII, Subtitle B, Sections 210, 215, and 220 designated for a school breakfast, lunch, and summer lunch program(s). Athletics (22000) – To account for revenues and expenditures associated with the District's athletic programs. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. Non-Instructional Support (23000) – To account for revenues and expenditures associated with District non-instructional, non-athletic programs. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. ESEA Title I (24105) – The ESEA Title I grant is to help local education agencies and schools improve the teaching and learning of children failing, or most at-risk of failing, to meet challenging State academic standards. Funding authorized by the Elementary and Secondary Education Act of 1965, Title I, Part A, 20 U.S.C. 6301 et seq. IDEA-B Entitlement (24106) – The IDEA-B Competitive program is to provide grants to states that flow through to schools to assist them in providing a free appropriate public education to all children with disabilities. Funding authorized by the Individuals with Disabilities Education Act, Part B, Sections 611-617, and part D, Section 674, as amended, 20 U.S.C. 1411-1417 and 1420. IDEA-B Discretionary Competitive (24108) – The IDEA-B Competitive program is to provide grants to states that flow through to schools to assist them in providing a free appropriate public education to all children with disabilities. Funding authorized by the Individuals with Disabilities Education Act, Part B, Sections 611-617, and part D, Section 674, as amended, 20 U.S.C. 1411-1417 and 1420.

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NON-MAJOR SPECIAL REVENUE FUNDS DESCRIPTIONS, Continued

IDEA-B Preschool (24109) – To account for a program funded by a Federal grant to assist the District in providing a free appropriate public education to preschool disabled children aged three through five years and, at the State's discretion, to two year old children with disabilities who will reach age three during the school year. Funding authorized by the Individuals with Disabilities Education Act, Part B, Section 619, as amended. ESEA Title VI (24112) – To account for a program funded by a Federal grant to assist the District to reform elementary and secondary education. Funding authorized by the Elementary and Secondary Education Act of 1965, Title VI, as amended, 20 U.S.C. 7301-7373. Education for Homeless Children and Youth (24113) – To account for a program funded by a Federal grant to ensure that homeless children and youth have equal access to the same free, appropriate public education as other children. Funding is authorized by the McKinney-Vento Homeless Assistance Act, Title VII, Subtitle B. Carl Perkins (24119) – To account for a program funded by a Federal grant which provides funds for planning and demonstration grants to a consortia of local educational agencies and postsecondary educational agencies for the development and operation of 4-year programs designed to provide a tech-prep education program leading to a 2-year associate degree or a 2-year certificate and to provide, in a systematic manner, strong, comprehensive links between secondary schools and postsecondary educational institutions. Funding authorized by the Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998, Title II, Public Law 105-332, 20 U.S.C. 2394. Evenstart (24125) – To account for a Federal grant to provide technical assistance and training services to school districts to cope with educational problems occasioned by race, gender, and national origin desegregation. Funding authorized by Elementary and Secondary Education Act of 1965; Title I, Part B, Subpart 3.20 U.S.C. 6362. Learn and Serve America (24126) – To account for a Federal grant which provides financial support to Service-Learning projects focused on meeting the needs of a community and fosters civic responsibility. These projects must be integrated with academic curriculum and provide structured time for participants to reflect on the service experience. Funding authorized by National and Community Service Act of 1990, as amended. Safe and Drug Free Schools (24128) – To account for a Federal grant which provides funds to support programs to meet the National Education Goal that, by the year 2000, every school in the United States will be free of drugs, violence, and the unauthorized presence of firearms and alcohol. To offer a disciplined environment conducive to learning by preventing violence in and around schools and strengthen programs that prevent the illegal use of alcohol, tobacco, and drugs, involve parents, and coordinate with related Federal, State, and community efforts and resources.

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Funding is authorized by the Elementary and Secondary Education Act, Title IV, Part A, Subpart 1, sections 4011-4118, as amended, Public Law 103-382, 20 U.S.C. 7111-7118. Technology Literacy Challenge (24133) – To account for a Federal grant which provides funding to State Education Agencies (SEAs) on a formula basis to support the development and implementation of systemic technology plans at the State, local, and school levels to improve the teaching and learning of all children. States are asked to address four goals: (1) All teachers will have the training and support they need to help all students learn through computers and through the information superhighway; (2) all teachers and students will have modern computers in their classrooms; (3) every classroom will be connected to the information superhighway; and (4) effective and engaging software and online resources will be an integral part of every school curriculum. To provide discretionary grants to LEAs in states which choose not to participate in the program. Funding is authorized by the Elementary and Secondary Education Act, Title III, Part A, Subpart 2, Public Law 103-382. Comprehensive School Reform Demonstration (24135) – To account for a program funded by a Federal grant to provide financial incentives for schools that need to substantially improve student achievement, particularly Title I schools, to implement comprehensive school reform programs that are based on reliable research and effective practices, and include an emphasis on basic academics and parental involvement. Funding authorized by the Elementary and Secondary Education Act of 1965, Title I, Part A, 20 U.S.C. 6301 et seq. Preschool Environments (24136) – To account for a Federal grant targeting at building capacity to improve services to preschool students with disabilities. Funds are used to improve inclusive services at Headstart and district classrooms by conducting parent focus groups to develop needs assessments for parent training and support. Funding authorized by Individuals with Disabilities Education Act (IDEA), Part B, Section 619, as amended. Vocational Education (24144) – To account for a program funded by a Federal grant which provides funds for planning and demonstration grants to a consortia of local educational agencies and postsecondary educational agencies for the development and operation of 4-year programs designed to provide a tech-prep education program leading to a 2-year associate degree or a 2-year certificate and to provide, in a systematic manner, strong, comprehensive links between secondary schools and postsecondary educational institutions. Funding authorized by the Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998, Title II, Public Law 105-332, 20 U.S.C. 2394. Title V Innovation Strategies (24150) – To account for Federal flow-through funds under the Elementary and Secondary Education Act as amended by the No Child Left Behind Act of 2001, Title V Part A designated for Innovative Education Program Strategies. Activities funded under this program include expansion and improvement of school-based mental health services, early identification of drug use and violence,

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and individual or group counseling services provided to students, parents, and school personnel. Funding authorized by Elementary and Secondary Act of 1965, Title V, Part A, as amended, 20 U.S.C. 7301-7373. English Language Acquisition (24153) – To account for a Federal grant which provides funds to support various activities relating to English language acquisition. Funding will be used to implement a District resource library of bilingual and English as-a-second language materials. Training regarding dual language, bilingual education, and indigenous language revitalization will be supported. Funding authorized by the Elementary and Secondary Education Act (ESEA) as amended, Title III, Part A, Sections 3101, 3129. Title II-A (24154) – To account for a program funded by a Federal grant to provide sustained and intensive high-quality professional development activities to teachers, staff, and administrators so that they may teach challenging State content and performance standards in the core academic subjects. Funding authorized by Elementary and Secondary Act of 1965 as amended, Title II, Part A, Public Law 107-110. Title IV (24157) – To account for a Federal grant which provides funds to support programs to meet the National Education Goal that, by the year 2000, every school in the United States will be free of drugs, violence, and the unauthorized presence of firearms and alcohol and to offer a disciplined environment conducive to learning. Funding authorized by Elementary and Secondary Education Act as amended, Title IV, Part A, Subpart 2, Sections 4121 and 4123, as amended, 20 U.S.C. 7131-7133. Rural and Low Income (24160) – To account for a Federal grant that provides funding for performance goals. All students will reach high standards or improve in reading/language arts and math. All students will be taught by qualified teachers in a safe environment conducive to learning. All students will graduate from high school. Funding authorized by Elementary and Secondary Education Act of 1965 (ESEA), Title VI, Part B, as amended. Title I Program Improvement (24162) – To be used for allowable Title I purposes in order to assist with the implementation of approved school improvement or corrective action plans. Funding authorized by Elementary and Secondary Education Act of 1965; Title V, Part D, as amended. IDEA and Technology (24166) – To account for a Federal grant supporting the acquisition of interactive classroom equipment under the auspices of the Special Education Office. This grant also supports the renovation and repair of schools on a competitive basis excluding new construction. Funding is authorized by USDE, PL106-554 2001 Appropriations Act. Title VII Indian Education (24215) – To account for a Federal program designed to support local educational agencies in their efforts to reform elementary and secondary school programs that serve Indian students in order to ensure that programs are

68


based on challenging State content standards and student performance standards that are used for all students and are designed to assist Indian students meet those standards in reaching the National Education Goals. Funding is authorized by the Elementary and Secondary Education Act of 1965, Title IX, Part A, Subpart 1, as amended, Public Law 103-382, 20 U.S.C. 7811-7818; 25 U.S.C. 2001. IHS/Northern Navajo Medical Center (24222) – To account for a Federal grant to fund programs that improve the quality of the health of American Indians and Alaska Natives by providing a full range of curative, preventive, and rehabilitative health services; and to improve the management capability of American Indians and Alaska Natives to assume operation of all or part of an existing Indian Health Service direct-operated health care program. Funding is authorized by Public Law 83-568, 42 U.S.C. 2001-2004a; Indian Self-Determination and Education Assistance Act, Section 104 (b), Public Law 93-638, 25 U.S.C. 450; Section 9, Public Law 98-250; Public Law 100-472. Johnson O’Malley (24231) – To account for a Federal grant to fund programs that meet the unique and specialized needs of eligible Indian students. Funding is authorized by the Johnson-O’Malley Act of April 16, 1934; as amended, 25 U.S.C. 452; Indian Self-Determination and Education Assistance Act, Public Law 93-638; 25 U.S.C. 455-457. Advanced Placement Incentives (24235) – Funding is to be used to creatively present and engage students in history and related social subjects. Funding authorized by Elementary and Secondary Education Act, as amended, Title I, Part G. Star Schools (24237) – To account for Federal monies to encourage improved instruction in mathematics, science, and foreign languages as well as other subjects, such as literacy skills and vocational education. To serve underserved populations, including the disadvantaged, illiterate, limited-English proficient, and individuals with disabilities. Grants are made to telecommunication partnerships for telecommunications facilities and equipment, educational and instructional programming, and technical assistance in the use of such facilities and instructional programming. Funding is authorized by the Elementary and Secondary Education Act of 1965, as amended, Title III, Part B, Public Law 103-382, 20 U.S.C. 6891-6900. PL 81-874 Impact Aid-Special Education (24245) – To account for a program funded by a Federal grant to provide financial assistance to local educational agencies (LEAs) where enrollments or availability of revenue are adversely affected by Federal activities, i.e. where the tax base of a district is reduced through the Federal acquisition of real property (Section 8002, ESEA), where there are significant number of children who reside on Federal (including Indian) lands and/or children whose parents are employed on Federal property or in the Uniformed Services (Sections 8003 and 8007, ESEA), where there is a sudden increase in school enrollment as the result of Federal activities (Section 8006, ESEA). To provide disaster assistance for reduced or increased operating costs for replacing or repairing damaged or destroyed support equipment and books and for repairing minor damage to facilities. Funding

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authorized by Public Law 81-874. Funding is authorized by the Elementary and Secondary Education Act, Title VIII, as amended. NM Grads (Grads Child Care – CYFD) (24249) – To account for a Department of Education grant through Children, Youth, and Families Department to provide for the maintenance and expansion of the teen parent programs. Funding is authorized by Higher Education Act, Title iv, Part A, Subpart 7, as amended, 20 U.S.C. 1070e. Medical Assistance Payments (Medicaid) (24252) – To account for Federal funds which are provided to provide financial assistance to states for payments of medical assistance on behalf of cash assistance recipients, children, pregnant women, and the aged who meet income and resource requirements and other categorically-eligible groups. In certain states that elect to provide such coverage, medically-needy persons who, except for income and resources, would be eligible for cash assistance, may be eligible for medical assistance payments under this program. Financial assistance is provided to states to pay for Medicare premiums, co-payments, and deductibles of qualified Medicare beneficiaries meeting certain income requirements. More limited financial assistance is available for certain Medicare beneficiaries with higher incomes. Funding is authorized by the Social Security Act, Title XIX, as amended; Public Laws 89-97, 90-248, and 91-56, 42 U.S.C. 1396 et seq., as amended; Public Laws 92-223, 92-603,93-66, 93-233, 96-499, 97-35, 97-248, 98-369, 99-272, 99-509, 100-93, 100-202, 100-203, 100-360, 100-436, 100-485, 100-647, 101-166, 101-239, 101-508, 101-517, 102-170, 102-394, 103-66, 103-112, 103-333, 104-91, 104-191, 104-193, 104-208, and 104-134; Balanced Budget Act of 1997, Public Law 105-33. First A/C Grads for Dads (24268) – The Grads for Dads program is to support the participation of low-income parents in postsecondary education through the provision of campus-based child care services. Funding authorized by Higher Education Act, Title IV, Part A, Subpart 7, as amended, 20 U.S.C. 1070e. Indian Education Formula Grant (24284) – To account for a Federal program designed to support local educational agencies in their efforts to reform elementary and secondary school programs that serve Indian students in order to ensure that programs are based on challenging State content standards and student performance standards that are used for all students and are designed to assist Indian students meet those standards in reaching the National Education Goals. Funding is authorized by the Elementary and Secondary Education Act of 1965, Title IX, Part A, Subpart 1, as amended, Public Law 103-382, 20 U.S.C. 7811-7818; 25 U.S.C. 2001. Distance Learning and Telemedia (24298) – To extend the opportunity for interactive distance learning in seven rural user sites and one hub site. The project will help schools fulfill a need to provide expanded course offerings mandated by the State of New Mexico and to provide higher education opportunities within the schools. Funding is authorized by Federal Agriculture Improvement and Reform Act of 1996, Title VII, Public Law 104-127, 7 U.S.C. 950.

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Navajo Nation Grants (24301) – To account for Federal grants to assist each state to develop and implement a statewide, comprehensive, coordinated, multidisciplinary, interagency system to provide early intervention services for infants and toddlers with disabilities and their families. Funding is authorized by the Individuals with Disabilities Act (IDEA), Part C, as amended, 20 U.S.C. 1471-1785. ETIP Project (USDE Technology Challenge Grant) (24307) – To account for Federal grants that support the development, interconnection, implementation, improvement, and maintenance of an effective educational technology infrastructure, including activities to provide equipment, training for teachers, school library and media personnel, and technical support. Funding is authorized by the Elementary and Secondary Education Act of 1965, Title III, Part A, Section 3136, as amended, 20 U.S.C. 6846. Smaller Learning Communities (24317) – To conduct nationally significant programs to improve the quality of education, assist all students to meet challenging State content standards, and contribute to the achievement of the National Education Goals. Funding is authorized by the Elementary and Secondary Education Act of 1965; Title X, Part A, as amended 20 U.S.C. 8001-8007. Projects with Industry (24334) – Projects with a vocational rehabilitation grant supporting the transition of eligible students to work settings. Funding authorized by Rehabilitation Act of 1973 as amended, Title VI, Part A, 29 U.S.C. 795g. Literacy Through Libraries (24335) – To allow for the increase of school library books and staffing to accommodate the additional needs of the libraries. Funding authorized by Elementary and Secondary Act of 1965, as amended, Title I, Part B, Subpart 4, Public Law 107-110. Los Alamos National Laboratory (25113) – To account for a private grant supporting the achievement of classroom teaching by utilizing resources such as supplies, materials and equipment. Funding authorized by private funding. Jordan Fundamentals Grant – LANL (25117) – To account for a private grant supporting the acquisition of resource materials, supplies, and equipment for classroom use. Funding is authorized by Citizens Scholarship Foundation of America. Private funding. Heifer International Grant (25119) – The general purpose of the project is to provide Navajo students with opportunities to learn vocational services and increase their self-esteem. Goals are to educate and provide new skill to ninety Native American FFA students and enable them to raise sheep resistant to scabies and to continue their tribal culture. Funding is authorized by Genetic Improvement for Scarpies Resistant Sheep. Private funding. Meridien Oil (25120) – To account for a private grant supporting the achievement of classroom teaching through the utilization of materials, supplies, and equipment in the

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classroom. This grant is precedent to the Burlington Resources Grant. This grant is authorized by private funding. PNM Foundation, Inc. (25123) – To account for a grant received from Public Service Company of New Mexico for an education project. Private funding. Toyota Time Grant (25137) – To account for a grant to be used to encourage and help prepare Native American students attending college. Funding is authorized by National Council of Teachers of Mathematics. Private funding. Burlington Grant (25162) – To account for various grants received from Burlington Resources Foundation which are to be used for various educational needs within the classroom. Private funding. CYFD Preschool (25335) – To account for revenues and expenditures for a Children, Youth, and Family Development (CYFD) grant from the State of New Mexico to provide for the purpose of offering a pre-kindergarten educational program with a family literacy component. Center for Teaching Excellence (25338) – To account for funding provided by Eastern New Mexico University focused on encouraging parents and children reading activities through the audio and video recording of school books. TANIF - After School Child Care (25341) – To account for the revenues and expenditures of school age child care. The funds provided by the New Mexico Human Services Department (HSD) for the purpose of providing child care for Temporary Assistance to Needy Families (TANF PL 105-33) families. Also provides childcare during the summer as well. Funding authorized December 1998. Technology for Education (25347) – To account for State funding which is to be used for the development of classroom technology, including furnishing classrooms with computer hardware and software. Authorizing legislation is found in the Technology for Education Act [22-15A-1 to 22-15A-10, NMSA 1978, Compilation]. Full-Day Kindergarten (25372) – To account for funding for full day kindergarten classes provided from two sources – State Equalization Guarantee and Temporary Assistance to Needy Families (TANIF). It is governed by a joint powers agreement between the New Mexico Human Services Department and the New Mexico Public Education Department, June 26, 2002. Incentives for School Improvements (25374) – To account for the revenues and expenditures of District school location awards. The purpose is to improve results of the New Mexico Achievement Assessment or the New Mexico High School Competency Exam. The funds are provided in accordance with the Incentives for School Improvement Act (NMSA 22-13A-5).

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Truancy Intervention (25380) – To allow secondary reservation schools to align District policies with State and Navajo Nation laws. The grant provides for onsite intervention with students at risk for truancy. Funding is authorized by NMPED and School Health Unit-Laws of 2004. Positive Behavior Support (25381) – To execute a positive behavior program at Ruth N. Bond Elementary. The school staff attend required trainings to facilitate the program. The National Research-Based Bully Proofing Your Schools Program training was provided for District elementary personnel. Materials were purchased to support the positive behavior program and the bully proofing program. Funding is authorized by Legislative Appropriations Laws of New Mexico 2004. Bridging of the Arts (25428) – To account for State funding supporting TANF eligible sites with summer arts programming. Funding supports staff training activities, supplies, and curriculum resources for arts programming. Funding is authorized by Hispanic Cultural Division of May 2000. Gear Up (25429) – To account for the revenues and expenditures of certain District locations that provide academic enrichment programs and early college and career awareness activities to middle school students and their parents. Funding is authorized pursuant to the Federal grant Gaining Early Awareness Readiness for Undergraduate Programs, CFDA #84.334A. Teacher Mentoring (25433) – To account for funding authorized through the Joint Powers Agreement with the Public Education Department for a program to engage in activities to develop, implement, and evaluate a beginning teacher mentoring program to ensure that beginning teachers, especially those who seek educator licensure through alternative routes, have structured support from accomplished and experienced teachers to help them improve their skills and knowledge. Private Direct Grants (25502) – To account for local grants awarded to provide additional funding for specific projects. Private funding.

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NON-MAJOR CAPITAL PROJECTS FUNDS DESCRIPTIONS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Public School Capital Outlay – State (31200) – To account for funding provided to the District by the State of New Mexico for capital improvement projects approved by the Public School Capital Outlay Council. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. Special Capital Outlay – State (31400) – To account for District-wide building improvement projects funded by the State. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. Special Capital Outlay – Federal (31500) – To account for funding provided by Federal sources designated for capital projects. Funding authorized by NMAC 6.20.2 of the New Mexico Department of Education. Capital Improvements SB-9 (31700) - To account for erecting, remodeling, making additions to, and furnishing of school buildings, or purchasing or improving school grounds or any combination thereof as identified by the local school board. Financing is provided by the State of New Mexico's State Equalization Matching and a special tax levy as authorized by the Public School District Capital Improvements Act (22-25-1 to 22-25-10 NMSA 1978). Energy Efficiency Act (31800) – To account for State funding that permits New Mexico governmental agencies to enter into contracts with providers to reduce energy costs. Funding is authorized by NMSA 1987 6-23-1.

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STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEETAs of June 30, 2005

SPECIAL REVENUE

Fund Fund Fund Fund Fund Fund Fund Fund Fund12000 13000 14000 21000 22000 23000 24106 24108 24109

NON- IDEA-B INSTRUCTIONAL FOOD INSTRUCTIONAL IDEA-B DISCRETIONARY IDEA-B

TEACHERAGE TRANSPORTATION MATERIALS SERVICES ATHLETICS SUPPORT ENTITLEMENT COMPETITIVE PRESCHOOL

ASSETS

Assets:Cash and Investments $ 166,507 9,382 314,846 292,619 138,720 852,593 233,573 48,418Taxes ReceivableDue from Grantor 47,887 5,302Due from Other FundsInventory 157,317

Total Assets $ 166,507 9,382 314,846 497,823 138,720 852,593 233,573 5,302 48,418


Liabilities:Accounts Payable 2,048 15,875 259 392 2,404Accrued Salaries and Benefits 371Accrued Compensated Absences 1,412 5,987 2,322 2,493Due to Other Funds 5,302Deferred Revenue 228,676 5,302 48,418

Total Liabilities 1,412 6,358 2,048 18,197 259 392 233,573 10,604 48,418

Fund Balance:Reserved for Inventory 157,317Reserved for Subsequent

Year's Expenditures 165,095 312,798 322,309 138,461 852,201Reserved for Debt ServiceUndesignated, Reported In Special Revenue Fund 3,024 (5,302)

Capital Projects Fund

Total Fund Balance 165,095 3,024 312,798 479,626 138,461 852,201 (5,302)

Total Liabilities and Fund Balance $ 166,507 9,382 314,846 497,823 138,720 852,593 233,573 5,302 48,418



ASSETS

Assets:Cash and Investments $Taxes ReceivableDue from GrantorDue from Other FundsInventory

Total Assets $


Liabilities:Accounts PayableAccrued Salaries and BenefitsAccrued Compensated AbsencesDue to Other FundsDeferred Revenue

Total Liabilities

Fund Balance:Reserved for InventoryReserved for Subsequent

Year's ExpendituresReserved for Debt ServiceUndesignated, Reported In Special Revenue Fund


Total Fund Balance

Total Liabilities and Fund Balance $

SPECIAL REVENUE


TECHNOLOGY COMPREHENSIVE TITLE V ENGLISHLITERACY SCHOOL REFORM PRESCHOOL VOCATIONAL INNOVATION LANGUAGE

EVENSTART CHALLENGE DEMONSTRATION ENVIRONMENTS EDUCATION STRATEGIES ACQUISITION TITLE II-A TITLE IV

7,785 18,961 30,064 4,822 80 87,500 115,132 38,215

113,949 364

7,785 18,961 30,064 4,822 113,949 444 87,500 115,132 38,215

598 210 54,062 225 414224

444 862 65359,887

7,785 18,363 29,630 4,822 364 87,500 114,045 37,148

7,785 18,961 30,064 4,822 113,949 808 87,500 115,132 38,215

(364)

(364)

7,785 18,961 30,064 4,822 113,949 444 87,500 115,132 38,215



ASSETS


Total Assets $



Total Liabilities




Total Fund Balance


SPECIAL REVENUE

Fund Fund Fund Fund Fund Fund Fund Fund24162 24215 24222 24231 24245 24249 24252 24284TITLE I TITLE VII IHS/ NORTHERN PL 81-874 MEDICAL ASSISTANCE INDIAN EDUCATION

PROGRAM INDIAN NAVAJO JOHNSON IMPACT AID- NM PAYMENTS FORMULAIMPROVEMENT EDUCATION MEDICAL CENTER O'MALLEY SPECIAL EDUCATION GRADS (MEDICAID) GRANT

108,465 32,092 974,937 222,017 30,707

66,555 168,718 11,000

66,555 108,465 32,092 168,718 974,937 11,000 222,017 30,707

3,946 2,200 19,151 15 41917

61,692 149,567 11,00066,555 108,465 29,892 28,995 11,000 30,666

133,110 108,465 32,092 197,713 15 22,000 30,707

148,652

(66,555) (28,995) 826,270 (11,000) 222,017

(66,555) (28,995) 974,922 (11,000) 222,017

66,555 108,465 32,092 168,718 974,937 11,000 222,017 30,707



ASSETS


Total Assets $



Total Liabilities




Total Fund Balance


SPECIAL REVENUE

Fund Fund Fund Fund Fund Fund Fund Fund24298 24301 24334 25119 25162 25335 25341 25347

DISTANCE NAVAJO PROJECTS HEIFER TANIF - AFTER TECHNOLOGYLEARNING AND NATION WITH INTERNATIONAL BURLINGTON CYFD SCHOOL FOR

TELEMEDIA GRANT GRANTS INDUSTRY GRANT GRANT PRESCHOOL CHILD CARE EDUCATION

6,640 1,158 1,219 20,455 14,056

456,447 54,658 77,901

456,447 54,658 6,640 1,158 1,219 77,901 20,455 14,056

27,394

930429,053 54,658 77,901456,447 54,658 6,640 8,861 20,455 13,126

912,894 109,316 6,640 86,762 20,455 14,056

(456,447) (54,658) 1,158 1,219 (8,861)

(456,447) (54,658) 1,158 1,219 (8,861)

456,447 54,658 6,640 1,158 1,219 77,901 20,455 14,056



ASSETS


Total Assets $



Total Liabilities




Total Fund Balance


SPECIAL REVENUE CAPITAL PROJECTS


INCENTIVES POSITIVE PRIVATE TOTAL PUBLIC SCHOOL SPECIAL CAPITALFOR SCHOOL TRUANCY BEHAVIOR TEACHER DIRECT SPECIAL CAPITAL OUTLAY -

IMPROVEMENTS INTERVENTION SUPPORT GEAR UP MENTORING GRANTS REVENUE OUTLAY STATE

7,381 3,814 107,142 55,888 3,945,188 69,052 43,666

30,818 6,484 1,040,083

157,317

30,818 7,381 3,814 107,142 6,484 55,888 5,142,588 69,052 43,666

10,814 190 2,623 1,574 144,435 97,574 2,5481,080 2,592

15,10320,004 6,484 875,54830,818 7,191 1,191 104,488 4,028 1,565,529

61,636 7,381 3,814 107,142 10,512 2,603,207 97,574 2,548

157,317

1,939,516 41,118

(30,818) (4,028) 55,888 442,548(28,522)

(30,818) (4,028) 55,888 2,539,381 (28,522) 41,118

30,818 7,381 3,814 107,142 6,484 55,888 5,142,588 69,052 43,666



ASSETS


Total Assets $



Total Liabilities




Total Fund Balance


CAPITAL PROJECTS

Fund Fund31500 31700 TOTAL

SPECIAL CAPITAL CAPITAL TOTAL NON-MAJOROUTLAY - IMPROVEMENTS CAPITAL GOVERNMENTALFEDERAL SB-9 PROJECTS FUNDS

801,067 1,053,188 1,966,973 5,912,16134,012 34,012 34,012

136,972 136,972 1,177,055

157,317

801,067 1,224,172 2,137,957 7,280,545

32,302 132,424 276,8592,592

15,103875,548

154,691 154,691 1,720,220

186,993 287,115 2,890,322

157,317

801,067 1,037,179 1,879,364 3,818,880

442,548(28,522) (28,522)

801,067 1,037,179 1,850,842 4,390,223

801,067 1,224,172 2,137,957 7,280,545


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22NON-MAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESFor the Year Ended June 30, 2005

SPECIAL REVENUE


NON- ESEA TITLE I INSTRUCTIONAL FOOD INSTRUCTIONAL PROGRAM IDEA-B

TEACHERAGE TRANSPORTATION MATERIALS SERVICES ATHLETICS SUPPORT IMPROVEMENT ENTITLEMENTRevenues:

Federal Sources $ 2,615,158 1,877,015State Sources 2,639,178 617,939Local Sources 395,137 1,560 2,488 235,664 175,980 190,637

Total Revenues 395,137 2,640,738 620,427 2,850,822 175,980 190,637 1,877,015


Direct Instruction 405,428 1,433,706Instructional Support 16,028 384,845Administration 58,464Business and Support Services Operation and Maintenance of Plant 424,386 Food Services 2,970,382 Athletics 159,543 Non-Instructional Support 55,969 Community Services Student Transportation 2,634,508

Education, Non-Current: Non OperatingDebt Principal Debt Interest Capital Outlay

Total Expenditures 424,386 2,634,508 421,456 2,970,382 159,543 55,969 1,877,015

Revenues Over (Under) Expenditures (29,249) 6,230 198,971 (119,560) 16,437 134,668

Other Financing Sources (Uses):Premium on Bond RefundingProceeds on Bond RefundingRefinancing on Bond RefundingRefund to GrantorLease Purchase Payments

Net Other Financing Sources (Uses)

Net Change in Fund Balance (29,249) 6,230 198,971 (119,560) 16,437 134,668

Fund Balance - Beginning of Year, as Previously Reported 194,344 (3,206) 113,827 599,186 122,024 717,533 (5,307)

Adjustments and Residual Equity Transfers 5,307

Fund Balance - Beginning of Year, as Restated 194,344 (3,206) 113,827 599,186 122,024 717,533

Fund Balance - End of Year $ 165,095 3,024 312,798 479,626 138,461 852,201



Revenues:Federal Sources $State SourcesLocal Sources

Total Revenues


Direct InstructionInstructional SupportAdministrationBusiness and Support ServicesOperation and Maintenance of PlantFood ServicesAthleticsNon-Instructional SupportCommunity ServicesStudent Transportation

Education, Non-Current:Non OperatingDebt PrincipalDebt InterestCapital Outlay

Total Expenditures

Revenues Over (Under) Expenditures



Net Change in Fund Balance

Fund Balance - Beginning of Year, as Previously Reported

Adjustments and Residual Equity Transfers

Fund Balance - Beginning of Year, as Restated

Fund Balance - End of Year $

SPECIAL REVENUE


IDEA-B EDUCATION FOR LEARN AND SAFE ANDDISCRETIONARY IDEA-B ESEA HOMELESS CHILDREN CARL SERVE DRUG FREE

COMPETITIVE PRESCHOOL TITLE VI AND YOUTH PERKINS EVENSTART AMERICA SCHOOLS

75 69,282 17,031 4,091 37,112 230,105 4,800 14,669

75 69,282 17,031 4,091 37,112 230,105 4,800 14,669

62,368 212,0835,377 4,753 8,610

2,161 9,412

5,377 69,282 230,105

(5,302) 17,031 4,091 37,112 4,800 14,669

(5,302) 17,031 4,091 37,112 4,800 14,669

(17,031) (4,091) (37,112) (4,800) (14,669)

(17,031) (4,091) (37,112) (4,800) (14,669)

(5,302)




Total Revenues




Total Expenditures









SPECIAL REVENUE


TECHNOLOGY COMPREHENSIVE TITLE V ENGLISHLITERACY SCHOOL REFORM PRESCHOOL VOCATIONAL INNOVATION LANGUAGE

CHALLENGE DEMONSTRATION ENVIRONMENTS EDUCATION STRATEGIES ACQUISITION TITLE II-A TITLE IV

183,928 48,429 6,190 118,157 27,868 316,404 738,839 68,005

183,928 48,429 6,190 118,157 27,868 316,404 738,839 68,005

130,951 46,932 116,057 271,196 637,410 16,33446,523 1,741 27,302 34,214 27,778 46,4016,454 1,497 2,100 930 10,994 66,387 2,102

4,449 2,255 3,168 5,009

183,928 48,429 6,190 118,157 28,232 316,404 738,839 68,005

(364)

(364)

(364)




Total Revenues




Total Expenditures









SPECIAL REVENUE


TITLE I IDEA TITLE VII IHS/ NORTHERN ADVANCEDRURAL AND PROGRAM AND INDIAN NAVAJO JOHNSON PLACEMENT STAR

LOW INCOME IMPROVEMENT TECHNOLOGY EDUCATION MEDICAL CENTER O'MALLEY INCENTIVES SCHOOLS

37,507 95,699 105,624 233,365 125,462 426,930 1,050

37,507 95,699 105,624 233,365 125,462 426,930 1,050

25,941 101,659 30,514 136,154 1,050 3,481 125,462 295,530

5,395 6,242 14,252 9,932

11,566 55,200 57

105,624

37,507 162,254 105,624 36,756 125,462 455,925 1,050 3,481

(66,555) 196,609 (28,995) (3,481)

(66,555) 196,609 (28,995) (3,481)

(196,609) 3,481

(196,609) 3,481

(66,555) (28,995)




Total Revenues




Total Expenditures









SPECIAL REVENUE

Fund Fund Fund Fund Fund Fund Fund24245 24249 24252 24268 24284 24298 24301

PL 81-874 MEDICAL ASSISTANCE INDIAN EDUCATION DISTANCE NAVAJOIMPACT AID- NM PAYMENTS FIRST A/C FORMULA LEARNING AND NATION

SPECIAL EDUCATION GRADS (MEDICAID) NM GRADS GRANT TELEMEDIA GRANT GRANTS

826,270 18,526 232,249 25,000 1,156,397 37,148

826,270 18,526 232,249 25,000 1,156,397 37,148

938,915 22,374 1,066,013 59,25992,431 178,689 51,923 454,730 32,54734,563 37,031 1,717

1,430

29,050 7,152 2,400

1,097,359 29,526 178,689 1,156,397 456,447 91,806

(271,089) (11,000) 53,560 25,000 (456,447) (54,658)

(271,089) (11,000) 53,560 25,000 (456,447) (54,658)

1,246,011 168,457

(25,000)

1,246,011 168,457 (25,000)

974,922 (11,000) 222,017 (456,447) (54,658)




Total Revenues




Total Expenditures









`

SPECIAL REVENUE


SMALLER PROJECTS LITERACY JORDAN HEIFER PNMETIP LEARNING WITH THROUGH LANL FUNDAMENTALS INTERNATIONAL MERIDIAN FOUNDATION,

PROJECT COMMUNITIES INDUSTRY LIBRARIES FOUNDATION GRANT GRANT OIL INC.

62,184 1,098 139,524 1,406

24,01062,184 1,098 139,524 1,406 24,010

19,223 30 22,852 35223,660 115,470

926 4,831

1,500

26,086 139,524 30 22,852 352

36,098 1,098 1,406 (30) 1,158 (352)

(1,098) (1,406)

(1,098) (1,406)

36,098 (30) 1,158 (352)

23,974 813 30 1,351 352

(60,072) (813) (1,351)

(36,098) 30 352

1,158




Total Revenues




Total Expenditures









SPECIAL REVENUE


TOYOTA CENTER FOR TECHNOLOGY INCENTIVESTIME BURLINGTON CYFD TEACHING FOR FULL DAY FOR SCHOOL TRUANCY

GRANT GRANT PRESCHOOL EXCELLENCE EDUCATION KINDERGARTEN IMPROVEMENTS INTERVENTION

106,988 161,183 183,449 78,534 12,8097,7567,756 106,988 161,183 183,449 78,534 12,809

140 11,360 112,272 183,449 92,300 80,297 569 12,415 3,577 5,036 394 75,850 16,483

140 11,360 115,849 161,183 183,449 109,352 12,809

(140) (3,604) (8,861) (30,818)

(140) (3,604) (8,861) (30,818)

140 4,823 3,871

(3,871)

140 4,823

1,219 (8,861) (30,818)




Total Revenues




Total Expenditures









SPECIAL REVENUE CAPITAL PROJECTS


POSITIVE BRIDGING PRIVATE TOTAL PUBLIC SCHOOL SPECIAL CAPITAL SPECIAL CAPITALBEHAVIOR OF THE TEACHER DIRECT SPECIAL CAPTIAL OUTLAY - OUTLAY - SUPPORT ARTS GEAR UP MENTORING GRANTS REVENUE OUTLAY STATE FEDERAL

9,902,597 545,02918,809 1,000 167,030 33,142 4,020,061 1,650,745 1,906,777

72,551 1,105,78318,809 1,000 167,030 33,142 72,551 15,028,441 1,650,745 1,906,777 545,029

111,108 17,506 1,420 6,289,837 18,809 12,463 1,315 2,099,882

24,863 289,916 75,850 437,248 2,970,382 159,543 55,969 2,876 18,596 13,928 174,135 2,641,974

105,624 1,657,877 1,618,318 761,064

18,809 2,876 167,030 17,506 16,663 15,300,360 1,657,877 1,618,318 761,064

(1,876) 15,636 55,888 (271,919) (7,132) 288,459 (216,035)

(2,504)

(2,504)

(1,876) 15,636 55,888 (274,423) (7,132) 288,459 (216,035)

1,876 (19,664) 3,170,435 (21,390) (247,341) 1,017,102

(356,631)

1,876 (19,664) 2,813,804 (21,390) (247,341) 1,017,102

(4,028) 55,888 2,539,381 (28,522) 41,118 801,067




Total Revenues




Total Expenditures









CAPITAL PROJECTS

Fund Fund31700 31800 TOTAL

CAPITAL ENERGY TOTAL NON-MAJORIMPROVEMENTS EFFICIENCY CAPITAL GOVERNMENTAL

SB-9 ACT PROJECTS FUNDS

545,029 10,447,626404,890 3,962,412 7,982,473

1,332,473 1,332,473 2,438,2561,332,473 404,890 5,839,914 20,868,355

6,289,837 2,099,882 289,916 75,850 437,248 2,970,382 159,543 55,969 174,135 2,641,974

1,344,350 49,755 5,431,364 5,536,988 1,344,350 49,755 5,431,364 20,731,724

(11,877) 355,135 408,550 136,631

(2,504)(355,135) (355,135) (355,135)(355,135) (355,135) (357,639)

(11,877) 53,415 (221,008)

1,049,056 1,797,427 4,967,862

(356,631)

1,049,056 1,797,427 4,611,231

1,037,179 1,850,842 4,390,223


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 12000 - TEACHERAGESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources:Rents $ 375,000 375,000 389,214 - 14,214Interest 5,000 5,000 5,701 - 701

Total Revenues 380,000 380,000 394,915 - 14,915


Operation and Maintenance of Plant 540,000 576,169 424,577 (36,169) 151,592

Revenues Over (Under) Expenditures (160,000) (196,169) (29,662) (36,169) 166,507

Budgetary Notation-Cash Appropriated from Prior Year $ 160,000 196,169 36,169

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 13000 - TRANSPORTATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources:Transportation Distribution $ 2,480,808 2,655,367 2,639,178 174,559 (16,189)

Local Sources:Sale of District Assets - - 1,560 - 1,560

Total Revenues 2,480,808 2,655,367 2,640,738 174,559 (14,629)


Student Transportation 2,480,808 2,655,367 2,647,544 (174,559) 7,823

Revenues Over (Under) Expenditures - - (6,806) - (6,806)

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 14000 - INSTRUCTIONAL MATERIALSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources:Instructional Materials 70% $ 502,513 540,669 417,568 38,156 (123,101)Instructional Materials 30% 176,562 176,562 178,957 - 2,395Library Materials 19,207 21,414 21,414 2,207 -

Local Sources:Insurance/Individual Recoveries - - 2,488 - 2,488

Total Revenues 698,282 738,645 620,427 40,363 (118,218)


Direct Instruction 679,075 717,231 410,259 (38,156) 306,972Instructional Support 19,207 21,414 16,028 (2,207) 5,386

Total Expenditures 698,282 738,645 426,287 (40,363) 312,358


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 21000 - FOOD SERVICESSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources:Direct Federal Grants $ 2,425,000 2,425,000 2,444,242 - 19,242Donated Commodities 450,000 450,000 192,739 - (257,261)

Local Sources:Fees - Adults 230,000 230,000 235,664 - 5,664

Total Revenues 3,105,000 3,105,000 2,872,645 - (232,355)


Food Services 3,330,000 3,496,348 2,971,374 (166,348) 524,974

Revenues Over (Under) Expenditures (225,000) (391,348) (98,729) (166,348) 292,619

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 225,000 391,348 166,348

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 22000 - ATHLETICSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources:Fees - Activities $ 154,937 154,937 173,773 - 18,836Interest 1,500 1,500 2,141 - 641

Total Revenues 156,437 156,437 175,914 - 19,477


Athletics 269,212 278,851 159,608 (9,639) 119,243

Revenues Over (Under) Expenditures (112,775) (122,414) 16,306 (9,639) 138,720


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 23000 - NON-INSTRUCTIONAL SUPPORTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources:Fees - Activities $ 40,000 40,000 56,723 - 16,723Fees - Users 100,000 100,000 118,841 - 18,841Interest 10,000 10,000 14,609 - 4,609

Total Revenues 150,000 150,000 190,173 - 40,173


Non-Instructional Support 810,266 873,578 61,158 (63,312) 812,420

Revenues Over (Under) Expenditures (660,266) (723,578) 129,015 (63,312) 852,593


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24106 - IDEA-B ENTITLEMENTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 1,767,886 2,107,662 1,610,573 339,776 (497,089)


Direct Instruction 1,145,108 1,433,810 1,433,767 (288,702) 43Instructional Support 568,416 608,890 381,889 (40,474) 227,001Administration 54,362 64,962 58,464 (10,600) 6,498

Total Expenditures 1,767,886 2,107,662 1,874,120 (339,776) 233,542


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24108 - IDEA-B DISCRETIONARY COMPETITIVESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 2,000 6,076 11,885 4,076 5,809


Instructional Support 2,000 6,001 5,377 (4,001) 624

Revenues Over (Under) Expenditures $ - 75 6,508 75 6,433

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24109 - IDEA-B PRESCHOOLSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 59,390 117,700 43,328 58,310 (74,372)


Direct Instruction 54,888 107,605 62,368 (52,717) 45,237Instructional Support 2,655 6,429 4,753 (3,774) 1,676Administration 1,847 3,666 2,161 (1,819) 1,505



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24125 - EVENSTARTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 20,000 232,943 232,103 212,943 (840)


Direct Instruction - 212,832 212,683 (212,832) 149Instructional Support - 8,623 8,610 (8,623) 13Community Services 20,000 11,488 11,488 8,512 -

Total Expenditures 20,000 232,943 232,781 (212,943) 162

Revenues Over (Under) Expenditures $ - - (678) - (678)

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24126 - LEARN AND SERVESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - - 7,776 - 7,776


Direct Instruction - - - - -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24133 - TECHNOLOGY LITERACY CHALLENGESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 20,000 203,450 100,399 183,450 (103,051)


Direct Instruction 20,000 150,473 130,353 (130,473) 20,120Instructional Support - 46,523 46,523 (46,523) - Administration - 6,454 6,454 (6,454) -



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24135 - COMPREHENSIVE SCHOOL REFORM DEMONSTRATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 53,000 63,267 53,000 10,267 (10,267)


Direct Instruction 51,352 61,305 46,498 (9,953) 14,807Administration 1,648 1,962 1,497 1,497 465


Revenues Over (Under) Expenditures $ - - 5,005 18,723 (25,539)

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24136 - PRESCHOOL ENVIRONMENTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - 15,000 15,000 15,000 -


Instructional Support - 5,200 1,741 (5,200) 3,459Community Services - 9,800 4,449 (9,800) 5,351

Total Expenditures - 15,000 6,190 (15,000) 8,810


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24144 - VOCATIONAL EDUCATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 178,389 145,149 64,260 (33,240) (80,889)


Direct Instruction 178,389 143,049 61,995 35,340 81,054Administration - 2,100 2,100 (2,100) -

Total Expenditures 178,389 145,149 64,095 33,240 81,054

Revenues Over (Under) Expenditures $ - - 165 - 165

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24150 - TITLE V INNOVATION STRATEGIESSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 29,888 28,268 28,296 (1,620) 28


Instructional Support 28,958 27,338 27,338 1,620 - Administration 930 930 930 - -

Total Expenditures 29,888 28,268 28,268 1,620 -

Revenues Over (Under) Expenditures $ - - 28 - 28

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24153 - ENGLISH LANGUAGE ACQUISITIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 194,650 439,929 521,801 245,279 81,872


Direct Instruction 147,160 344,314 307,221 (197,154) 37,093Instructional Support 9,000 42,374 34,214 (33,374) 8,160Administration 9,596 17,266 10,994 (7,670) 6,272Community Services 28,894 35,975 - (7,081) 35,975



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24154 - TITLE II-ASTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 735,912 852,655 749,428 116,743 (103,227)


Direct Instruction 627,562 728,906 637,185 (101,344) 91,721Instructional Support 25,805 28,377 27,569 (2,572) 808Administration 82,545 83,066 65,856 (521) 17,210Community Services - 2,306 2,255 (2,306) 51Transportation - 10,000 5,009 (10,000) 4,991



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24157 - TITLE IVSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 77,101 101,888 77,101 24,787 (24,787)


Direct Instruction 28,100 35,644 15,920 (7,544) 19,724Instructional Support 41,958 58,958 46,191 (17,000) 12,767Administration 2,927 3,170 2,102 (243) 1,068Community Services 4,116 4,116 3,168 - 948



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24160 - RURAL AND LOW INCOMESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 50,000 46,856 91,029 (3,144) 44,173


Direct Instruction 50,000 25,989 25,941 24,011 48Community Services - 20,867 12,240 (20,867) 8,627

Total Expenditures 50,000 46,856 38,181 3,144 8,675


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24162 - TITLE I PROGRAM IMPROVEMENTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 150,000 473,465 181,000 323,465 (292,465)


Direct Instruction 64,403 285,446 98,039 (221,043) 187,407Instructional Support 41,715 - - 41,715 - Administration 1,407 12,799 5,395 (11,392) 7,404Community Services 42,475 175,220 69,515 (132,745) 105,705



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24166 - IDEA AND TECHNOLOGYSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 100,000 105,624 181,443 5,624 75,819


Capital Outlay 100,000 105,624 105,624 (5,624) -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24215 - TITLE VII INDIAN EDUCATION STATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 150,000 37,745 309,581 (112,255) 271,836


Direct Instruction 143,758 31,503 31,503 112,255 - Administration 6,242 6,242 6,242 - -

Total Expenditures 150,000 37,745 37,745 112,255 -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24222 - IHS/NORTHERN NAVAJO MEDICAL CENTERSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 30,000 157,451 123,500 127,451 (33,951)


Instructional Support 30,000 157,451 125,991 (127,451) 31,460


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24231 - JOHNSON O'MALLEYSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 20,000 493,849 545,988 473,849 52,139


Direct Instruction 8,244 154,637 118,126 (146,393) 36,511Instructional Support 11,715 311,699 296,250 (299,984) 15,449Administration - 14,252 14,252 (14,252) - Operation and Maintenance of Plant - 13,204 9,932 (13,204) 3,272Student Transportation 41 57 57 (16) -



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24235 - ADVANCED PLACEMENT INCENTIVESSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 500 1,050 - 550 (1,050)


Direct Instruction 500 1,050 1,050 (550) -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24237 - STAR SCHOOLSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - - 26,232 - 26,232


Instructional Support - - - - -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24245 - PL 81-874 IMPACT AID - SPECIAL EDUCATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 1,300,000 1,300,000 826,270 - (473,730)


Direct Instruction 941,953 941,953 938,915 - 3,038Instructional Support 104,188 104,188 92,431 - 11,757Administration 187,957 187,957 34,563 - 153,394Community Services 48,406 48,406 38,352 - 10,054Student Transportation 17,496 17,496 3,685 - 13,811

Total Expenditures 1,300,000 1,300,000 1,107,946 - 192,054


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24249 - NM GRADSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources 6,000 29,526 19,000 23,526 (10,526)


Direct Instruction 4,848 22,374 22,374 (17,526) - Community Services 1,152 7,152 7,152 (6,000) -

Total Expenditures 6,000 29,526 29,526 (23,526) -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24252 - MEDICAL ASSISTANCE PAYMENTS (MEDICAID)STATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 200,000 200,000 232,249 - 32,249


Instructional Support 200,000 200,000 178,689 - 21,311


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24284 - INDIAN EDUCATION FORMULA GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - 1,187,063 1,187,063 1,187,063 -


Direct Instruction - 1,096,329 1,066,013 (1,096,329) 30,316Instructional Support - 51,923 51,923 (51,923) - Administration - 37,031 37,031 (37,031) - Operation and Maintenance of Plant - 1,780 1,430 (1,780) 350

- 1,187,063 1,156,397 (1,187,063) 30,666


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24298 - DISTANCE LEARNING TELEMED GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - 490,910 - 490,910 (490,910)


Instructional Support - 489,193 427,336 (489,193) 61,857Administration - 1,717 1,717 (1,717) -

Total Expenditures - 490,910 429,053 (490,910) 61,857


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24301 - NAVAJO NATION GRANTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 89,000 91,806 94,664 2,806 2,858


Direct Instruction 89,000 59,259 59,259 29,741 - Instructional Support - 32,547 32,547 (32,547) -



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24307 - ETIP PROJECTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 20,000 29,266 29,266 9,266 -


Instructional Support 17,574 26,840 26,840 (9,266) - Administration 926 926 926 - - Operation and Maintenance of Plant 1,500 1,500 1,500 - -


Revenues Over (Under) Expenditures $ - - - - -

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24334 - PROJECTS WITH INDUSTRYSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ 100,000 161,508 93,017 61,508 (68,491)


Direct Instruction 21,920 21,920 19,243 - 2,677Instructional Support 73,041 134,549 130,794 (61,508) 3,755Administration 5,039 5,039 4,831 - 208



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25117 - JORDAN FUNDAMENTALS GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources $ - 30 - 30 (30)


Direct Instruction - 30 30 (30) -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25119 - HEIFER INTERNATIONAL GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources $ - 24,009 24,010 24,009 1


Direct Instruction - 24,009 22,852 (24,009) 1,157


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25123 - PNM FOUNDATION, INC.STATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources $ 100 353 - 253 (353)


Direct Instruction 100 353 352 (253) 1


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25137 - TOYOTA TIME GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources $ - 141 - 141 (141)


Direct Instruction - 141 140 (141) 1


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25162 - BURLINGTON GRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Local Sources $ 4,000 12,812 7,756 8,812 (5,056)


Direct Instruction 4,000 12,812 11,593 (8,812) 1,219


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25335 - CYFD - PRESCHOOLSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 115,000 117,183 94,445 2,183 (22,738)


Direct Instruction 111,423 113,606 113,606 (2,183) - Administration 3,577 3,577 3,577 - -


Revenues Over (Under) Expenditures $ - - (22,738) 4,366 (22,738)

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICO - CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25341 - TANIF - AFTER SCHOOL CHILD CARESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 10,000 - 66,951 (10,000) 66,951


Community Services 10,000 - - 10,000 -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25347 - TECHNOLOGY FOR EDUCATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 20,000 170,028 165,734 150,028 (4,294)


Instructional Support 12,123 81,719 80,297 (69,596) 1,422Administration 934 5,366 5,036 (4,432) 330Business and Support Services 6,943 82,943 76,110 (76,000) 6,833



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25372 - FULL-DAY KINDERGARTENSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ - 183,449 183,449 183,449 -


Direct Instruction - 183,449 183,449 (183,449) -

Revenues Over (Under) Expenditures $ - - - - -

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25374 - INCENTIVES FOR SCHOOL IMPROVEMENTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 20,000 278,441 152,684 258,441 (125,757)


Direct Instruction 20,000 222,956 96,835 (202,956) 126,121Instructional Support - 10,000 569 (10,000) 9,431Community Services - 45,485 16,483 (45,485) 29,002



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25380 - TRUANCY INTERVENTIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ - 20,000 20,000 20,000 -


Direct Instruction - 19,376 12,225 (19,376) 7,151Administration - 624 394 (624) 230

Total Expenditures 20,000 12,619 (20,000) 7,381


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25381 - POSITIVE BEHAVIOR SUPPORTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ - 20,000 20,000 20,000 -


Instructional Support - 20,000 16,186 (20,000) 3,814


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25428 - BRIDGING OF THE ARTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ - 4,698 1,000 4,698 (3,698)


Community Services - 4,698 4,698 (4,698) -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25429 - GEAR UPSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 100,000 269,512 183,840 169,512 (85,672)


Direct Instruction 32,101 188,880 115,396 (156,779) 73,484Instructional Support 12,786 22,786 12,463 (10,000) 10,323Administration 22,130 24,863 24,863 (2,733) - Community Services 32,983 32,983 17,516 - 15,467



Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25433 - TEACHER MENTORINGSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 18,124 17,506 30,686 (618) 13,180


Direct Instruction 18,124 17,506 17,506 618 - -


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25502 - PRIVATE DIRECT GRANTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 6,663 26,701 80,000 20,038 53,299


Direct Instruction 4,984 55,022 1,473 (50,038) 53,549Instructional Support 1,500 1,500 1,315 - 185Community Services 179 20,179 13,928 (20,000) 6,251


Revenues Over (Under) Expenditures $ - (50,000) 63,284 (50,000) 113,284

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31200 - PUBLIC SCHOOL CAPITAL OUTLAYSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ - 3,391,866 1,928,796 3,391,866 (1,463,070)


Capital Outlay 1,480,000 4,871,866 1,605,805 (3,391,866) 3,266,061

Revenues Over (Under) Expenditures (1,480,000) (1,480,000) 322,991 - 1,802,991

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 1,480,000 1,480,000

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31400 - SPECIAL CAPITAL OUTLAY - STATESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 489,000 764,967 808,437 275,967 43,470


Capital Outlay 489,000 764,967 418,648 (275,967) 346,319


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31500 - SPECIAL CAPITAL OUTLAY - FEDERALSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


Federal Sources $ - 545,029 545,029 545,029 -


Capital Outlay 1,000,000 1,562,131 761,064 (562,131) 801,067

Revenues Over (Under) Expenditures (1,000,000) (1,017,102) (216,035) (17,102) 801,067


Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31700 - CAPITAL IMPROVEMENTS SB-9STATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources - - - - - Local Sources $ 1,268,753 1,268,753 1,320,153 - 51,400

Total Revenues 1,268,753 1,268,753 1,320,153 - 51,400


Capital Outlay 1,995,135 2,352,370 1,349,966 (357,235) 1,002,404

Revenues Over (Under) Expenditures (726,382) (1,083,617) (29,813) (357,235) 1,053,804

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 726,382 1,083,617 357,235

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31800 - ENERGY EFFICIENCY ACTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2005


State Sources $ 401,142 404,891 404,890 3,749 (1)


Capital Outlay 46,007 49,756 49,755 (3,749) 1

Revenues Over (Under) Expenditures 355,135 355,135 355,135 - -

Other Financing Sources (Uses):Lease Purchase Payments:

Principal 339,113 339,113 (339,113) - - Interest 16,022 16,022 (16,022) - -

Net Other Financing Sources (Uses) 355,135 355,135 (355,135) - -

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses $ - - - - -

Actual(Budgetary

Basis)


to FinalFinal

to Actual


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FIDUCIARY FUNDS DESCRIPTION For the Year Ended June 30, 2005 Agency Funds - Agency Funds are used to account for assets held by the District as an agent for individuals, private organizations, or other governments. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. These funds relate primarily to the various activities of the individual schools.

146

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For the Year Ended June 30, 2005

Balance Net Increase BalanceJuly 1, 2004 Additions Deletions (Decrease) June 30, 2005

Assets

Cash and Investments $ 419,016 997,208 962,628 34,580 453,596

Liabilities

Deposits Held for Others $ 419,016 997,208 962,628 34,580 453,596


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF CHANGES IN DEPOSITS HELD FOR OTHERS - ALL AGENCY FUNDS For the Year Ended June 30, 2005

Balance BalanceJuly 1, 2004 Additions Deletions June 30, 2005

Central Activity - District $ 27,952 51,010 36,183 42,779Kirtland Central High School 136,710 203,429 200,220 139,919Kirtland Middle School 40,600 202,176 215,169 27,607Kirtland Elementary School 8,537 108,727 93,730 23,534Grace B. Wilson Elementary School 41,053 11,223 16,426 35,850Ruth N. Bond Elementary School 8,276 21,074 15,945 13,405Ojo Amarillo Elementary School 2,300 11,266 6,982 6,584Shiprock High School 82,756 165,895 151,257 97,394Career Prep High School 5,578 9,206 7,533 7,251Tse Bit Ai Middle School 15,447 63,873 62,445 16,875Mesa Elementary School 3,166 6,515 9,029 652Nataani Nez Elementary School 10,834 25,244 22,402 13,676Nizhoni Elementary School 5,321 8,452 7,021 6,752Eva B. Stokely Elementary School 8,582 13,292 14,953 6,921Newcomb High School (14,521) 47,594 48,226 (15,153)Newcomb Middle School 19,295 33,326 30,994 21,627Newcomb Elementary School 15,680 8,492 17,934 6,238Naschitti Elementary School 1,450 6,414 6,179 1,685

$ 419,016 997,208 962,628 453,596


OTHER SUPPLEMENTARY INFORMATION

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended June 30, 2005

Federal Pass-Federal Grantor/Pass-Through CFDA Through FederalGrantor/Program or Cluster Title Number Number Expenditures

Major Programs:U. S. Department of Education Direct Grants:

Impact Aid:P L 874 General 84.041 11000 $ 14,225,690P L 874 Special Education 84.041 24245 1,097,359P L 874 Indian Add-on 84.041 24247 5,257,877P L 874 Capital Outlay 84.041 32100 4,011,084

Native American School Repair and Renovation Grants 84.352B 31500 761,064Total U.S. Department of Education Direct Grants 25,353,074

US Department of Education passed through New Mexico State Public Education Department:

English Language Acquisition 84.365A 24153 316,404IDEA-B Cluster

IDEA-B Entitlement 84.027 24106 1,877,015IDEA-B Discretionary Competitive 84.027 24108 5,377

Total IDEA-B Cluster 1,882,392

Total U.S. Department of Education Pass-Through Grants 2,198,796

U.S. Department of Interior - Bureau of Indian Affairs Direct GrantJohnson O'Malley 15.130 24231 455,925

Total Major Programs 28,007,795

Non-Major Programs:U. S. Department of Education

Passed through New Mexico State Public Education Department:Title I Cluster

ESEA Title I 84.010 24101 3,728,306Teacher Principal Training and Recruiting (Title II-A) 84.367A 24154 738,839Safe and Drug Free Schools and Communities 84.186A 24157 68,005Title I Program Improvement 84.218A 24162 162,254

Total Title I Cluster 4,697,404

Comprehensive School Reform 84.332A 24135 48,429Evenstart 84.213 24125 230,105ESEA Title V-A Innovation Strategies 84.298 24150 28,232Pre-School Environments 84.173 24136 6,190Star Schools 84.203F 24237 3,481Carl Perkins Vocational Education 84.048 24144 118,157Technology Literacy Challenge 84.318X 24133 183,928School Renovation IDEA and Technology 84.352A 24166 105,624Rural and Low Income Schools 84.358B 24160 37,507Advanced Placement Incentives 84.330 24235 1,050Projects with Industry 84.234Q 24334 139,524


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended June 30, 2005

Federal Pass-CFDA Through Federal

Number Number Expenditures

IDEA-B Pre-School 84.173 24109 69,282Navajo Nation Grants 84.xxx 24301 91,806Technology Literacy Challenge Grants 84.303A 24307 26,086

Indian Education Formula Grant 84.060 24284/24215 1,193,153Total Department of Education Non-Major Programs 6,979,958

U. S. Department of Health & Human Services Indirect GrantsPassed through Navajo Nation:

IHS/Navajo Nation Medical Center 93.228 24222 125,462Passed though New Mexico Public Education Department:

NM Grads 93.596 24249 29,526Total Department of Health & HumanServices Indirect Grants 154,988

U.S. Department of AgricultureDistance Learning and Telemedicine Grant - Rural Utilitiy Services 10.8550 24298 456,447

Passed though New Mexico Public Education Department:National School Breakfast 10.553 21000 615,777National School Lunch 10.533 21000 1,806,642

Passed through New Mexico Department of Human Services:Commodities 10.550 21000 178,689

Total Department of Agriculture 3,057,555

Total Non-Major Programs 10,192,501

Total Expenditures of Federal Awards $ 38,200,296

Notes to Schedule of Expenditures of Federal Awards:1 Basis of Presentation

The accompanying Schedule of Expenditures of Federal Awards includes the Federal grantactivity of Central Consolidated Schools for the fiscal year ended June 30, 2005 and ispresented on the accrual basis of accounting. The information in this schedule is presentedin accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.

2 Non-Cash AssistanceIncluded above -U.S. Department of Agriculture - Food Distribution 178,689

3 Federal InsuranceNone

4 Federal Loans and/or Loan GuaranteesNone


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22SCHEDULE OF PLEDGED COLLATERALFor the Year Ended June 30, 2005

Security CUSIP Market MaturitySecurity Description Number Number Value Date

Wells Fargo Bank: $ Ginnie Mae Mortgage Backed Security 781278 36225BM39 2,036,336 04-15-2031Ginnie Mae Mortgage Backed Security 781316 36225BN95 5,461,961 07-15-2031

$ 7,498,297

These securities are held by Wells Fargo Bank in the name of the District in a vault at the following address:Wells Fargo Bank5th Floor733 Marquette AvenueMinneapolis, MN 55402-2315


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22CASH RECONCILIATION

Instructional FoodOperational Teacherage Transportation Materials Services Athletics

$ 2,492,441 195,947 16,188 120,706 391,348 122,348

Add:2004-2005 Revenues 43,669,846 395,137 2,640,738 620,427 2,872,645 175,980Prior Year Checks VoidedLoans from Other FundsOperating Transfer In

Total Cash and Investments Available 46,162,287 591,084 2,656,926 741,133 3,263,993 298,328

Less:2004-2005 Expenditures 42,728,134 424,577 2,647,544 426,287 2,971,374 159,608Loans to Other Funds 875,548Refund to GrantorOperating Transfer Out

Cash and Investments, June 30, 2005 $ 2,558,605 166,507 9,382 314,846 292,619 138,720

,

For the Year Ended June 30, 2005

Audited Cash and Investments, June 30, 2004


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22CASH RECONCILIATION, continued

Public SpecialFederal State Bond School Capital

Non-Instructional Projects and Local Building Capital Outlay Outlay-State

$ 723,114 9,024,768 (68,891) 8,415,773 (253,939) (346,123)

Add:2004-2005 Revenues 190,637 16,106,520 1,030,555 49,154 1,928,796 808,437Prior Year Checks Voided 175 Loans from Other Funds 771,159 104,389Operating Transfer In 6,035

Total Cash and Investments Available 913,751 25,908,657 1,066,053 8,464,927 1,674,857 462,314

Less:2004-2005 Expenditures 61,158 16,810,335 848,905 8,464,927 1,605,805 418,648Loans to Other FundsRefund to Grantor 2,504Operating Transfer Out 6,035

Cash and Investments, June 30, 2005 $ 852,593 9,095,818 211,113 69,052 43,666




STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22CASH RECONCILIATION, continued

Special CapitalCapital Improvements Energy Debt

Outlay-Federal SB-9 Efficiency PSOC 20% Service Total

$ 1,017,102 1,083,137 2,395,566 4,154,208 29,483,693

Add:2004-2005 Revenues 545,029 1,320,633 404,890 3,677,058 4,456,371 80,892,853Prior Year Checks Voided 175Loans from Other Funds 875,548Operating Transfer In 6,035

Total Cash and Investments Available 1,562,131 2,403,770 404,890 6,072,624 8,610,579 111,258,304

Less: 2004-2005 Expenditures 761,064 1,350,582 404,890 3,192,355 4,567,377 87,843,570Loans to Other Funds 875,548Refund to Grantor 2,504Operating Transfer Out 6,035

Cash and Investments, June 30, 2005 $ 801,067 1,053,188 2,880,269 4,043,202 22,530,647




STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 JOINT POWERS AGREEMENTS June 30, 2005 MEDICAID PROGRAM AS A PROVIDER OF SCHOOL-BASED HEALTH SERVICES Participants: Central Consolidated School District No. 22 and New Mexico Human Services Department Responsible Parties: Central Consolidated School District No. 22 and New Mexico Human Services Department Description: To participate in the Medicaid program as a provider of school-based health services Period: 4/24/03 until indefinite Project Cost: 100% reimbursement of cost to Medicaid-eligible children District Contribution: Undetermined Audit Responsibility: Central Consolidated School District No. 22

SEE INDEPENDENT AUDITORS’ REPORTS 155 The accompanying notes are an integral part of these financial statements

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 JOINT POWERS AGREEMENTS June 30, 2005 JOINT POWERS AGREEMENT FOR OPERATION OF GOLF COURSE Participants: Central Consolidated School District No. 22 and San Juan College Responsible parties: Central Consolidated School District No. 22 and San Juan College Description: Acceptance of a gift of land from El Paso Natural Gas for use as a golf course, classes, etc. and operation of public golf course Period: From 11/1/1990 until terminated by either of the members herein Project Cost: Undetermined District Contribution: Undetermined Audit Responsibility: San Juan College

SEE INDEPENDENT AUDITORS’ REPORTS 156 The accompanying notes are an integral part of these financial statements

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22BANK DEPOSITORIESJune 30, 2005

The following information is presented to comply with Section 12-6-5 NMSA 1978.

The following is a list of individual deposit accounts and investments held by CentralConsolidated School District No. 22 as of June 30, 2005. Accounts were held at WellsFargo Bank.

Account Balance Deposits Outstanding BalanceAccount Name Type Per Bank in Transit Checks Adjustments Per Books

Wells Fargo Bank: Fiduciary Accounts: Central Activity 1 $ 24,875 14,646 (38,657) $ 864 Investment 2 452,732 452,732 Total 477,607 14,646 (38,657) 453,596

District Accounts: Operational 1 996,986 (14,646) (3,493,352) 12,500 (2,498,512) Athletic 1 4,059 9,646 (1,205) (12,500) - Investment 2,3 4,988,128 4,988,128 Total 5,989,173 (5,000) (3,494,557) 2,489,616

Total Wells Fargo Bank $ 6,466,780 9,646 (3,533,214) $ 2,943,212

New Mexico State Treasurer 4 $ 20,041,031 $ 20,041,031

Account Type

1-Checking 2-Money Market Account 3-Government Agency Notes 4-State Pool Investment


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2005

SECTION I - SUMMARY OF AUDITORS' RESULTS Financial Statements: 1. Type of auditors' report issued Internal control over financial reporting: 1. Material weaknesses identified? 2. Reportable condition (s) identified that are not considered to be material weaknesses? 3. Noncompliance material to financial statements noted? Federal Awards: Internal control over major programs: 1. Material weakness (es) identified? 2. Reportable condition(s) identified that are not considered to be material weaknesses Type of auditor's report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Identification of major programs:

CFDA Number84.041 84.027 84.365 15.130

84.352B

Dollar threshold used to distinguish between Type A and Type B programs

Auditee qualified as low-risk Auditee

Unqualified

No

Yes

No

No

Yes

Qualified

Yes

Name of Federal Program or ClusterImpact Aid

IDEA-B Cluster English Language Acquisition

Johnson O’Malley Native American School Repair

and Renovations

$ 1,152,151

No

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2005 PRIOR YEAR FINDINGS STATUS 04-01 Fraud Policy Resolved 04-02 Monitoring Wages of Laborers Repeated CURRENT YEAR FINDINGS FINANCIAL REPORT – INTERNAL CONTROL 05-01 Procurement Card Expenditure Documentation FINANCIAL REPORT – COMPLIANCE 05-02 Travel Expenditure Vouchers 05-04 Asset Capitalization FEDERAL AWARDS – COMPLIANCE

04-02 Monitoring Wages of Laborers 05-03 Federal Grant Cash Management

FEDERAL AWARDS – INTERNAL CONTROL None

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS, continued For the Year Ended June 30, 2005 04-02 MONITORING WAGES OF LABORERS

CFDA#: 84.352A Impact Aid – Department of Education PR/Award Number S352B010093 Questioned Costs: $54,572

Statement of Condition: The District received a grant from the Federal Government for various purposes, including construction of District facilities. The District did not monitor the amounts paid to laborers by construction contractors financed by Federal funding. Criteria: Some federally financed construction projects are subject to the Davis Bacon Act. That law requires that grantors monitor the amounts paid to laborers of projects funded by Federal money. Effect: The District apparently did not comply with the Davis Bacon Act. This resulted in questioned costs in the amount of $54,572. There was only one vender invoice involved for an amount of $54,572. Cause: The District believed the New Mexico Department of Labor was monitoring the wages paid to the laborers and that was sufficient to comply with the Federal requirement. Recommendation: The District monitor the wages paid to laborers paid under federally funded construction projects. Response: This finding for the previous year was discovered in October of 2004. By that time, the District had already made a final payment on the Eva B. Stokely construction project – August of 2004. There was nothing the District could do about this payment after the fact. No other payments by the District are questioned by the auditors for the fiscal year under audit. Additionally, the State has done Davis Bacon Act compliance work on all Federal construction monies received by the District through State flow-through. The major construction project in the District funded with Federal dollars, Eva B. Stokely Elementary addition, has been audited by the State to ensure compliance with Davis Bacon. The District should not be required to duplicate the work of the State for compliance.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS, continued For the Year Ended June 30, 2005 05-01 Procurement Card Expenditure Documentation Statement of Condition: We were not able to examine all documentation supporting expenditures made by use of the District procurement card during the year. In various instances (especially involving travel expenditures) charges were supported only by a copy of the procurement card transaction receipt. Receipts from the vendors of the actual transaction were not maintained. A procurement card transaction receipt indicates where a transaction occurred and how much was charged, however, it does not provide detail as to what was purchased. Criteria: Sufficient documentation should be maintained to support District expenditures. Effect: It is not possible to completely determine the reasonableness of some expenditures. Cause: During travel it may be difficult to obtain and maintain expenditure receipts. Recommendation: Greater care should be taken to obtain and maintain both purchasing transaction receipts and vendor receipts in order to adequately substantiate purchases. The District should consider charging the undocumented expenditures back to the purchasing card holder / user. Response: The District has already begun retraining administrative staff in the proper use of procurement cards including the necessity of maintaining all detailed receipts. These administrators have also been asked to review the uses of the procurement cards at their sites and instruct their staffs in the proper maintenance of detailed receipts. These administrators have been given the detailed instructions that are covered every year with the financial secretaries, so they also know the proper procedures and guidelines established by the District. All administrators are now required to review all procurement card statements and supporting documentation and to sign the statements asserting that they have reviewed those statements and supporting documentation prior to forwarding the statements to accounts payable.

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Accounts payable staff has also been instructed to review all procurement card statements and supporting documentation with increased vigilance and to send back to supervisors any statements that do not meet District guidelines. The supervisors will then be responsible for obtaining the required detailed documentation and returning it to accounts payable. Accounts payable will also be maintaining a monthly listing of all procurement card holders by location and identifying which users are not following all procedures correctly. This will allow the District to identify any areas of repeated violation by site and by user. The District is also creating an “Affidavit for Lost Receipts” as outlined in Department of Finance and Administration Regulation 2.42.2 Appendix B to be used by District personnel when a detailed receipt is truly lost.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS, continued For the Year Ended June 30, 2005 05-02 Travel Expenditure Vouchers Statement of Condition: Upon review of travel expenditures paid with District procurement cards, it was discovered that not all expenditures contained vouchers stating the date, time, location and travel purpose. Criteria: Department of Finance and Administration Regulation 2.42.2 states that “travel vouchers and supporting schedules and documents shall conform to the policies and procedures manuals by the finance control division of the department of finance and administration.” Additionally, State Statute 10-8-5 states that “for public officers or employees using authorized credit cards, vouchers with required receipts for each months travel expenses shall be submitted as a condition to receiving authorization to use the credit card for the next month’s travel.” Effect: The travel expenditures paid with the District purchasing cards may not have been consistent with State of New Mexico Regulations applicable to travel by public officials and employees. Cause: The District believed that an approved purchase order for travel of public officers or employees of the District was sufficient documentation for travel when expenditures were paid with a District procurement card. Recommendation: The District should obtain vouchers for all travel that is paid by District procurement cards in compliance with State of New Mexico laws and regulations. Response: The District will have all public officers and employees of the District complete travel vouchers for expenditures paid with District procurement cards even when no reimbursement is due the public officer or employee. The District will begin educating its public officers and employees to this procedure and require that all such documentation accompany the procurement card statement and other supporting documentation when the statement is returned to accounts payable for processing.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS, continued For the Year Ended June 30, 2005 05-03 Federal Grant Cash Management

CFDA#: 84.365 English Language Acquisition – Department of Education PR/Award Number T365A040031

Statement of Condition: A cash balance at June 30, 2005 of $87,500 was reported in the English Language Acquisition Grant. After two months only approximately 2% of the balance had been expended. Criteria: Compliance with federal laws and regulations under OMB Circular A-133 require time be minimized between when grant funds are received and when they are expended. Effect: The time period between when the funds were received and the time they were expended seemed excessive. Cause: Inter-fund transfer of expenditures between the English Language Acquisition and another federal grant reduced the expenditures anticipated for the English Language Acquisition grant. Recommendation: Improvement in forecasting grant expenditures should be made a priority of the District. Included in the forecast should not only be anticipated expenditures but remaining grant resources as well. Response: The District was carrying a negative cash balance amounting to $81,871.64 as of June 30, 2004. This negative balance continued to grow to $133,482 through August 30, 2004 despite the District having requested cash. In September, 2004, the District finally received $177, 942, eliminating the negative cash balance. In October, 2004 the District received another payment of $294,591 representing the cash needs from October, 2004 through December, 2004. At this point, the District had more cash on hand than required. Since the District did not fully expend the grant by year end as planned, there was an unexpended cash balance at year end. Effective July 1, 2005, the New Mexico Public Education Department implemented a reimbursement system of cash management replacing the previous cash advance system. Grantees will be required to submit “Requests for Reimbursements” to be receive

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reimbursement which will bring the District in compliance with the applicable federal and state grant cash management laws and regulations.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS, continued For the Year Ended June 30, 2005 05-04 Asset Capitalization

Statement of Condition: The District’s policy during the year ended June 30, 2005 was to list for control purposes all capital assets with an initial cost of greater than $1,000 but to capitalize and depreciate only those assets with an initial cost of $5,000 or greater. In addition, the District has not capitalized its library books. Criteria: NMAC Title 2, Chapter 20, Part 1 states that all assets with an initial cost greater than $1,000 must be capitalized and depreciated. Library and museum acquisitions are included in this requirement at 2.20.1.9 (C)(9). The threshold for capitalization changed to $5,000 with the passage of HB386 and is effective July 1, 2005. Effect: Although the financial statements are not materially misstated, net capital assets are understated by the net value of the assets that have not been capitalized and depreciated. Cause: The District believes that the benefit of including these assets in its capital assets is greatly exceeded by the costs that would be necessary to do so. Recommendation: The District should make an informed estimate of its library collection and should capitalize these costs as require by State laws and regulations. The District should consider using a composite method of depreciation on these assets, as discussed in GASB 34, paragraphs 163 through 165. The District should prospectively capitalize assets in accordance with State laws and regulations. Response: Previous financial statements of the District have included capitalization and depreciation at the $5,000 limit. Additionally, the State has increased the capitalization and depreciation limit to $5,000 effective July 1, 2005. As such, the District believes that maintaining consistency over the years with the same method is more beneficial to readers of the financial statements, especially since the District would simply write off the assets between $1,000 and $5,000 at June 30, 2006. The costs associated with capturing this information, only to write them off in a few months, along with the inconsistency of financial statement presentation far outweigh the benefits to do so. The District, however, will begin to capture the costs associated with library books and depreciate these assets as recommended by the auditors beginning with the 2006 financial

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statements. The District will use this time to implement a method to capture the estimated costs existing in the school libraries and to add any new cost additions to the libraries during the current fiscal year. While the amount is insignificant to the overall financial statement presentation, the District will do this to be in compliance with State laws and regulations and accounting pronouncements.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 EXIT CONFERENCE For the Year Ended June 30, 2005 An exit conference was held on November 11, 2005. In attendance were the following:

Representing Central Consolidated School District No. 22:

Linda Besett Superintendent Byron Manning Executive Director of Finance and

Business Operations Gary Martinez Controller

Kathy Hamilton Accounting Department Head Randy Manning Board President

Representing Gary E. Gaylord, Ltd.: Gary E. Gaylord, CPA Auditor in charge

Wm. Larry Lanphere, CPA Auditor

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