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STATE OF NEW MEXICO

CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22

FINANCIAL STATEMENTS

June 30, 2003

With Independent Auditor’s Report Thereon

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22

ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED JUNE 30, 2003

TABLE OF CONTENTS

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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 ............................................................................................................... 21 Statement of Activities................................................................................................................... 22

Fund Financial Statements

Balance Sheet - Governmental Funds.......................................................................................... 23 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Assets ..... 24

Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................... 25 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances with the Statement of Activities................................................. 26 Statements of Revenues and Expenditures - Budget and Actual (Non-GAAP Basis)

Operational ............................................................................................................................ 27 Transportation ....................................................................................................................... 28 Instructional Materials ........................................................................................................... 29 Food Services........................................................................................................................ 30 PL 81-874 Impact Aid............................................................................................................ 31

Statement of Fiduciary Net Assets – Agency Funds..................................................................... 32

Notes to Financial Statements...................................................................................................................... 33 SUPPLEMENTARY INFORMATION

Major Capital Projects Funds

Statements of Revenues and Expenditures - Budget and Actual (Non-GAAP Basis) Bond Building ................................................................................................................................ 62 Public School Capital Outlay......................................................................................................... 63 Special Capital Outlay – Federal................................................................................................... 64 Debt Service.................................................................................................................................. 65

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TABLE OF CONTENTS

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Non-Major Funds

Non-Major Special Revenue Funds Descriptions ................................................................................. 66 Non-Major Special Revenue Funds - Combining Balance Sheet......................................................... 74 Non-Major Special Revenue Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances............................................................................. 80

Non-Major Special Revenue Funds - Statements of Revenues and Expenditures – Budget and Actual (Non-GAAP Basis)

Teacherage ................................................................................................................................... 86 Athletics......................................................................................................................................... 87 Non-Instructional Support ............................................................................................................. 88 ESEA Title I ................................................................................................................................... 89 ESEA Title I Migrant ...................................................................................................................... 90 ESEA Title I Program Improvement .............................................................................................. 91 IDEA-B – Entitlement .................................................................................................................... 92 IDEA-B – Discretionary Competitive ............................................................................................. 93 IDEA-B – Preschool ...................................................................................................................... 94 ESEA Title VI................................................................................................................................. 95 Education for Homeless Children and Youth ................................................................................ 96 Title II Math/Science...................................................................................................................... 97 Carl Perkins Vocational Education................................................................................................ 98 Evenstart ....................................................................................................................................... 99 Safe and Drug Free Schools....................................................................................................... 100 Administrative Pool...................................................................................................................... 101 Technology Literacy Challenge................................................................................................... 102 Comprehensive School Reform Demonstration.......................................................................... 103 Class Size Reduction .................................................................................................................. 104 Vocational Education................................................................................................................... 105 Reading Excellence..................................................................................................................... 106 Title V Innovation Strategies ....................................................................................................... 107 English Language Acquisition ..................................................................................................... 108 Title II-A ....................................................................................................................................... 109 Title IV ......................................................................................................................................... 110 Rural/Low Income ....................................................................................................................... 111 Title I Program Improvement....................................................................................................... 112

Title VII Indian Education ............................................................................................................ 113 IHS/Northern Navajo Medical Center.......................................................................................... 114 Johnson O’Malley........................................................................................................................ 115 Advanced Placement Incentives ................................................................................................. 116 Star Schools ................................................................................................................................ 117 PL 81-874 Impact Aid – Special Education................................................................................. 118 NM Grads .................................................................................................................................... 119 Medical Assistance Payments (Medicaid)................................................................................... 120

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TABLE OF CONTENTS

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Navajo Nation Grants .................................................................................................................. 121 ETIP Project ................................................................................................................................ 122 Smaller Learning Communities ................................................................................................... 123 Projects with Industry .................................................................................................................. 124 Literacy Through Libraries .......................................................................................................... 125 PNM Foundation, Inc................................................................................................................... 126 Toyota Time Grant ...................................................................................................................... 127 Burlington Grant .......................................................................................................................... 128 CYFD – Preschool....................................................................................................................... 129 TANIF – After School Child Care ................................................................................................ 130 Technology for Education ........................................................................................................... 131 Incentives for School Improvements ........................................................................................... 132 Gear Up....................................................................................................................................... 133 Teacher Mentoring ...................................................................................................................... 134 Private Direct Grants ................................................................................................................... 135

Non-Major Special Capital Projects Funds Descriptions .................................................................... 136 Non-Major Capital Projects Funds - Combining Balance Sheet......................................................... 137 Non-Major Capital Projects Funds - Combining Statement of Revenues, Expenditures, and

Changes in Fund Balances ......................................................................................................... 138

Non-Major Capital Projects Funds - Statements of Revenues and Expenditures – Budget and Actual (Non-GAAP Basis)

Special Capital Outlay – Local .................................................................................................... 139 Special Capital Outlay – State .................................................................................................... 140 Capital Improvements SB-9 ........................................................................................................ 141

Energy Efficiency Act .................................................................................................................. 142 Public School Capital Outlay – 20%............................................................................................ 143

Fiduciary Funds................................................................................................................................... 144

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

Schedule of Expenditures of Federal Awards..................................................................................... 147 Schedules: Pledged Collateral ....................................................................................................................... 149 Cash Reconciliation..................................................................................................................... 150 Joint Powers Agreements ........................................................................................................... 153 Bank Depositories ....................................................................................................................... 157

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TABLE OF CONTENTS

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Independent Auditor’s Report on Compliance and on Internal Control Over

Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................... 158

Independent Auditor’s 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........................................................................................................................... 169

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INTRODUCTION SECTION


OFFICIAL ROSTER June 30, 2003

BOARD OF EDUCATION

Randy J. Manning President

Gary D. Ray Vice-President Stanley R. King Secretary Glenn L. Duncan Member

Bernadette A. Todacheene Member

SCHOOL OFFICIALS Dr. Linda Besett Superintendent Dennis Nicholson Assistant Superintendent Jay Mortensen Assistant Superintendent Byron Manning Executive Director of Finance Yolanda Bingham Director of Purchasing Angela Haney Director of Student Nutrition

Roy Waters Director of Construction and Maintenance

Jeff Hunt Director of Transportation Karen Rodberg Director of Discretionary Grants Marlene Frazier Director of Federal Programs Quintina Deschenie Director of Indian and Bilingual Education Patricia Emrick Director of Special Education Sheri Price Director of Human Resources

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FINANCIAL SECTION

Gary E. Gaylord, C.P.A. GARY E. GAYLORD, LTD. 740 San Mateo NE, Box A-3 CERTIFIED PUBLIC ACCOUNTANTS Albuquerque, New Mexico 87108 (505) 266-4820 Fax (505) 268-6618

INDEPENDENT AUDITOR’S REPORT

Domingo Martinez, CGFM, State Auditor Randy J. Manning, Board President Members of The Board of Education Central Consolidated School District No. 22 Kirtland, New Mexico We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Central Consolidated School District No. 22 (the “District”), as of and for the year ended June 30, 2003, which collectively comprise the District’s basic financial statements as listed in the table of contents. We also have audited the major capital projects funds and each of the District’s non major governmental and fiduciary funds presented as supplementary information in the accompanying combining and individual fund financial statements as of and for the year ended June 30, 2003, as listed in the table of contents. These financial statements are the responsibility of Central Consolidated School District No. 22 management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Central Consolidated School District No. 22, as of June 30, 2003, and the respective changes in financial position, where applicable, thereof, and the respective budgetary comparisons for the General Fund and the Major Special Revenue Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each nonmajor

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INDEPENDENT AUDITOR’S REPORT, continued governmental and fiduciary fund of the Central Consolidated School District No. 22, as of June 30, 2003, and the respective changes in financial position, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 1, the District has implemented a new financial reporting model, as required by the provisions of GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as of June 30, 2003.

The management’s discussion and analysis on pages 4 through 20, is not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated November 7, 2003 on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was preformed for the purpose of forming an opinion on the financial statements of Central Consolidated School District No. 22, Kirtland, New Mexico taken as a whole and on the combining and individual fund financial statements. The schedules listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. _____________________________________ Albuquerque, New Mexico November 7, 2003

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

FOR THE FISCAL YEAR ENDED JUNE 30, 2003 The Management’s Discussion and Analysis (MD&A) of the fiscal performance of Central Consolidated School District No. 22 (District) for the fiscal year ended June 30, 2003 represents the District’s first year implementation of the Governmental Accounting Standards Board Statement No. 34 (GASB 34). 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 $6.8 million. This represents a 6.0% increase from fiscal year 2002, resulting from the use of current year funding for capital additions.

• General revenues accounted for $63.7 million, or 82.1% of all 2003 fiscal year

revenues. Program specific revenues in the form of charges for services and grants and contributions accounted for $13.9 million, or 17.9% of total fiscal year 2003 revenues.

• The District had approximately $70.7 million in expenses related to governmental

activities of which $13.9 million of these expenses were offset by program specific charges for services or grants and contributions. General revenues of $63.7 million were adequate to provide for the remaining costs of these programs.

• Capital outlay expenditures increased by $4.3 million from last fiscal year, 2002,

to the current fiscal year. The District had major renovation and addition projects going on at three elementary schools in the Shiprock area during the current year.

• The overall Fund Balance increased by $5.2 million in the current fiscal year.

The sale of general obligation bonds resulted in $5.7 million to be available for the construction of two new performing arts centers in the Kirtland and Shiprock communities.

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

increased by $4.6 million when compared to the previous fiscal year. This represents a 6.3% increase in revenue growth for the year. The increase in revenue can be attributed to an increase in special revenue and capital projects sources.

• Total expenditures, including capital expenditures and debt service, increased

$4.0 million in the current fiscal year when compared to the previous fiscal year. The increase in capital expenditures accounts for this increase.

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• The District’s total long-term debt increased $2.4 million from fiscal year 2002 to

the current year. This was due to the sale of $5.7 million in general obligation bonds.

• The District has successfully implemented the new financial reporting and

processes as required by GASB 34.

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.

In addition to the new reporting requirements, 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 Auditor’s 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 Auditor’s 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. These statements were included in past reporting by the District. District-Wide Financial Statements Due to this being the first year of implementation of GASB 34 for the District, only the current year’s data will be provided. However, in subsequent years, current year data will be compared with prior-year data. The reader will see two new statements—Statement of Net Assets and Statement of Activities. These two new statements 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 are not new to the District’s annual financial reports, though the presentation has changed somewhat. The reports 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 Due to GASB 34 requirements, the Statement of Net Assets is new to the financial statements of the District and is prepared using the 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 year ended June 30, 2003.

AssetsCash and Investments $ 26,458,250Other Current Assets 3,164,308Capital Assets, Net 130,359,466 Total Assets 159,982,024

LiabilitiesAccounts Payable 1,482,988Other Current Liabilities 5,049,421Long-Term Liabilities 32,968,154 Total Liabilities 39,500,563

Net AssetsInvestment in Capital Assets, Net 100,023,755Restricted 16,644,900Unrestricted 3,812,806 Total Net Assets $ 120,481,461

June 30, 2003

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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 $8.6 million in capital assets through additions and remodeling to current schools and the purchase of new equipment and vehicles.

• The retirement of $3.3 million in long-term debt.

• The addition of $5.7 million in long-term debt.

Changes in Net Assets The District’s total revenues for the fiscal year ended June 30, 2003 were $77.6 million. The total costs of all programs and services were $70.7 million. The following table presents a summary of the changes in net assets for the fiscal year ended June 30, 2003.

Amount Revenues: Program Revenues: Charges for Services $ 949,752 Operating Grants and Contributions 6,683,988 Capital Grants and Contributions 6,275,073 General Revenues: Property Taxes 6,333,676 Federal and State Aid 56,006,196 Investment Income 618,157 Miscellaneous 700,861 Total Revenues 77,567,703 Expenses: Direct Instruction 37,954,477 Instructional Support 11,501,067 Administration 1,772,190 Business and Support Services 1,519,519 Operation and Maintenance of Plant 7,266,990 Food Services 2,550,562 Athletics 1,100,954 Non-Instructional Support 266,740 Community Services 1,375,917 Student Transportation 3,002,532 Interest on Long-Term Obligations 2,410,903 Total Expenses 70,721,851 Increase in Net Assets $ 6,845,852

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Statement of Activities The Statement Activities is also a new statement required by GASB 34 and is prepared using the 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 year ended June 30, 2003. 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.

Total Net (Expense) Expenses Revenue Direct Instruction $ 37,954,477 $ (30,950,712)Instructional Support 11,501,067 (11,501,067)Administration 1,772,190 (1,406,415)Business and Support Services 1,519,519 (1,519,519)Operation and Maintenance of Plant 7,266,990 (6,748,459)Food Services 2,550,562 246,064 Athletics 1,100,954 (917,654)Non-Instructional Support 266,740 (117,081)Community Services 1,375,917 (1,375,917)Student Transportation 3,002,532 (111,375)Interest on Long-Term Obligations 2,410,903 (2,410,903)

Total Expenses $ 70,721,851 $ (56,813,038)

• The cost of all governmental activities this year was $70.7 million. • The Federal and State governments, along with charging for services, subsidized

certain specific programs with grants and contributions in the amount of $13.9 million.

• The net cost of governmental activities ($56.8 million) was financed by general

revenues, which were primarily funded with Federal and State aid ($56.0 million).

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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, 2003. As the District completed the year, it reported a combined fund balance of $26.7 million, an increase of $5.2 million. This increase was primarily due to the sale of general obligation bonds in the amount of $5.7 million. Approximately $9.3 million, or 34.9% of the fund balance constitutes unreserved fund balance. The remaining fund balance of $17.4 million, or 65.1%, 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 $77.4 million, an increase of $4.6 million from the prior year. Including all other financing sources and uses, which include $5.7 million in general obligation bond proceeds (Other Financing Sources), total revenues increased to $82.7 million. The total expenditures for the District were $77.5 million, an increase of $4.0 million from the prior year. The General Fund is the principal operating fund of the District. The decrease in fund balance of $219,262 in the General Fund for the fiscal year was a result of the District beginning to spend down its cash balance. The State has passed legislation establishing limits on allowable cash balances in the General Fund. As a result of this, the District is required to spend its cash balance down to the established guidelines or risk losing the money back to the State. Multi-Year Comparison of District Revenues and Expenditures A view of the District’s revenues and expenditures over the past eight years indicates that, while attendance figures are declining, total revenues, excluding bond revenues, are increasing annually. 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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Year Total

Revenues* % Change

% Change w/o Bond Revenues

Total Expenditures* % Change

Bond Revenues

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% 60,357,676 -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 * 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. 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. GASB 34 does not require a statement presenting the overall result of the budget for each year; however, all major budgetary funds are required to be reported as a separate statement. Major budgetary funds in these reports are the General Operational Fund (Operational), Transportation, Instructional Materials, Food Services, PL 81-874 Impact Aid, Bond Building, Public School Capital Outlay, Special Capital Outlay-Federal, and Debt Service. In addition, fifty (50) 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 Title I, IDEA-B, Title VII, and Impact Aid-Special Education. Examples of non-major Capital Project funds include SB-9 Capital Improvements (Two Mill Levy) and Public School Capital Outlay-20%. The following shows the fiscal relationship of the major funds and the combined non-major funds.

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DISTRICT BUDGET DISTRIBUTION

8.7%

14.9%

4.7%

5.4%

4.0%6.7%

0.5%2.7%

2.9%

6.0%

43.4%

Operational

Transportation

Instructional Materials

Food Services

PL 81-874 Impact Aid

Bond Building

Public School CapitalOutlaySpecial Capital Outlay- FederalDebt Service

Special Revenue

Capital Projects

The Operational Fund accounts for 43.4% 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 (62.2%) and PL-874 Federal Funds (Impact Aid) (34.4%). 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 Operational Fund is retaining 5% of the total Impact Aid dollars in the fund for operational expenditures. The 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, 2003. Detail budget performance is examined through the Statements of Revenues and Expenditures—Budget and Actual.

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MAJOR FUNDS EXPENDITURE TO BUDGET PERFORMANCE

FUND FINAL BUDGET ACTUAL

EXPENDITURES VARIANCE

Operational $ 43,999,952 $ 40,513,192 $ 3,486,760

Transportation 2,987,269 2,603,032 384,237

Instructional Materials 461,408 350,755 110,653

Food Services 2,712,460 2,618,960 93,500

PL 81-874 Impact Aid 6,744,187 4,154,975 2,589,212

Bond Building 6,097,621 516,322 5,581,299

Public School Capital Outlay 4,105,523 1,404,282 2,701,241

Special Capital Outlay - Federal 5,518,385 3,880,377 1,638,008

Debt Service 4,792,500 4,745,390 47,110

COMBINED MINOR FUNDS EXPENDITURE TO BUDGET PERFORMANCE

FUND FINAL COMBINED

BUDGET ACTUAL

EXPENDITURES VARIANCE

Special Revenue $ 15,117,811 $ 10,777,610 $ 4,340,201

Capital Projects 8,845,272 5,054,350 3,790,922

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 Operational Fund is the primary fund for the District. Operational revenues totaled $40,279,787, which represents 48.5% of total District revenues of $83,110,719 (inclusive of bond proceeds). The Operational Fund had an initial approved budget of $42,318,790 and a final budget of $43,999,952. The increased budget of $1,681,162, a 4.0% increase, was due to a small increase in the unit value and the budgeting of additional cash carryover from the previous year’s budget. 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.

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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%

Operational Fund RevenuesRevenues

The Operational Fund represents the major expenditures for the education of the students within the District. During the year ended June 30, 2003, the Operational Fund expended $40,499,049 of which $23,213,286 was expended on Direct Instruction. This represents 57.32% of all 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, training, student and teacher travel, and instructional related contract services. Employee salaries, payroll taxes, and benefit costs account for 85.2% of all Operational Fund expenditures.

upport expenditures include salaries, payroll taxes, and benefits for

OPERATIONAL EXPENDITURES BY FUNCTION

14.82%

2.96%

2.58%

18.46%57.32%

0.26%

2.10%0.47%1.03%

Direct Instruction

Instructional Support

Administration

Business and SupportServices

Operation and Maintenanceof Plant

Athletics

Non-Instructional Support

Community Services

Capital Outlay

Instructional Sprincipals, counselors, nurses, librarians, program coordinators, school secretaries and receptionists, 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,

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diagnosticians, etc. It also includes the necessary supplies, equipment, training, and travel for these individuals. Instructional Support expenditures totaled $7,474,921, or 18.46% of Operational expenditures. The next largest area of expenditures for the District is for Operation and Maintenance of

he District expended 2.96%, $1,199,376, of the Operational Fund for Business and

dministration expenditures totaled $1,044,970, or 2.58% of Operational Fund

xpenditures for Athletics totaled $848,535, 2.10% of Operational expenditures, and

ommunity Services, which include day-care services at Career Prep High School and

he District spent $191,624, 0.47% of Operational expenditures, for Non-Instructional

inally, $107,055, 0.26%, was spent from Capital Outlay for the purchase of an activity

Plant. These expenditures totaled $6,001,788, 14.82% of the Operational expenditures. This includes salaries, payroll taxes, and benefits for maintenance staff and supervisors, school custodians, and maintenance and custodial clerical staff. It also 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). TSupport Services. This includes salaries, payroll taxes, and benefits for employees of the business office, warehouse and delivery, computer technicians and programmers, 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. Aexpenditures. Included in this area are salaries, payroll taxes, and benefits for the superintendent, assistant superintendents, administrative secretaries and receptionist, and human resource personnel. Additionally, 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. Einclude 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). This fund is where gate receipts are maintained and spent. Total expenditures from the Athletic Fund were $117,645. CNewcomb High School and the Parents as Teachers Program (PAT) in the Kirtland/Ojo area, accounted for $417,494, 1.03% of Operational expenditures. This includes salaries, payroll taxes, and benefits for day-care providers and PAT personnel as well as supplies, equipment, travel, and training for these individuals. TSupport. This includes salaries and payroll taxes for activity directors and club sponsors and supplies and travel costs for the student organizations. Fbus.

14

CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets As of June 30, 2003, the district had invested $171.2 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 $20.2 million from last year. Because of GASB 34 requirements, the District added $19.9 million of assets to the books that had not been previously capitalized. This is for capital expenditures on parking lots, fences, sewer systems, and other items of infrastructure. The District also had $10.4 million in new additions. For financial reporting purposes, the District will only capitalize and depreciate equipment with a value of $5,000 or more. Because of this higher threshold for financial reporting, the District had an additional $8.3 million in equipment deletions during the year. (The District previously capitalized assets costing $1,000 or more.) The District will continue to inventory and track all equipment additions in excess of $1,000, however, in accordance with State law. GASB 34 rules now require public entities to depreciate capital assets as private-sector companies do. The accumulated depreciation for the District’s capital assets amounts to $40.9 million. Total depreciation expense for the year was $3.8 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, 2003.

Amount Land $ 1,639,047 Land Improvements 5,765,309 Buildings and Improvements 112,326,962 Equipment and Vehicles 3,271,503 Construction in Progress 7,356,645 Total $ 130,359,466

Major additions to capital assets this year, additions in excess of $100,000, included additional construction and remodeling at Eva B. Stokely Elementary, Nataani Nez Elementary, and Nizhoni Elementary. The State funded the addition of three new kindergarten classrooms at Nataani Nez Elementary, and the District nearly completed a District-wide electrical upgrade this year. Two new portables were purchased to add science labs to Shiprock High School; portables were also purchased for the special education program in Shiprock; and an addition was completed at the Shiprock Bus Barn. Naschitti Elementary received a major remodeling, and roofing projects on Shiprock High School and the Shiprock Administrative Offices were completed. The District also purchased new cafeteria tables for most schools in the District.

15

In the District’ on the Eva B. tokely Elementary, Nataani Nez Elementary, and Nizhoni Elementary projects. The

a major remodeling planned for Mesa Elementary and construction will egin on the two performing arts centers for the Kirtland and Shiprock communities. The

igh School. In addition, Kirtland Middle chool and Nataani Nez Elementary are scheduled for complete exterior paint jobs. The

t year-end, the District has $35,225,000 in general obligation bonds and $653,972 in

he District issued $5.7 million in new bonds during the fiscal year ended June 30, 2003

hese funds are for the performing arts centers. The District has never defaulted on any of its debt or other obligations. Listed below is the District’s total gene ligation debt and yearly payment schedule as of June 30, 2003.

YEAR ENDJUNE 30 E OTAL

s fiscal year 2004 budget, final payments will be made SDistrict also hasbState is funding the addition of two new kindergarten classrooms at Newcomb Elementary, one at Nizhoni Elementary, and one at Naschitti Elementary. The District also received a grant from the State for roofing projects at Newcomb Elementary, Kirtland Middle School, and Career Prep HSDistrict will be painting interiors 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 page 47 of this report. Long-Term Debt Aother long-term debt outstanding, $3,189,859 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, 2003, the District’s general obligation debt limit was $36,422,981. At year-end, the District was bonded to 96.7% of the legal limit. Tand the School Board has approved the issuance of an additional $3.8 million in new bonds in fiscal year 2004. T

ral ob

ED INT PRINCIPAL REST T

2004 1,6 ,538,213 2,875,000 63,213 42005 2,825,000 1,527,137 4,352,137 2006 2,825,000 1,3 ,215,463 90,463 42007 2,825,000 1,252,212 4,077,212 2008 2,825,000 1,112,713 3,937,713 2009 2,750,000 971,325 3,721,325 2010 2,700,000 831,625 3,531,625 2011 2,800,000 690,900 3,490,900 2012 2,800,000 545,875 3,345,875 2013 2,800,000 400,150 3,200,150 2014 2,400,000 268,500 2,668,500 2015 1,800,000 169,000 1,969,000 2016 1,000,000 107,250 1,107,250 2017 1,000,000 64,750 1,064,750 2018 1,000,000 21,750 1,021,750 Total $35,225,000 $11,016,863 $46,241,863

16

Additional information on the District’s long-term debt can be found in Note 5 on page 48 of this report. 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 is experiencing a decline in student enrollment. Over the previous five year period, the District’s average enrollment, as measured by the 40th, 80th,

ng in each of those five years. The 40 day count for fiscal year 2004 continues that trend with a decrease of an additional 137 students over the 40th

om fiscal year 2003.

a are also experiencing declining enrollments. The following charts detail the change

and 120th day counts, has decreased by 400 students with a decline in membership occurri th

day count fr

The decline in enrollment is attributable to the elementary age groups as the secondary schools have seen a growth of 19 students during that five year period while the elementary schools have seen a decline of 419 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 are

in enrollment for elementary and secondary schools and enrollment by major attendance areas.

FIVE YEAR ENROLLMENT HISTORY

3,100200300400500600

0

3,900

3,3,ST

3,

UD

ENT 3,

3,3,703,800

CO

UN

T

1999 2000 2001 2002 2003

FISCAL YEAR

ELEMENTARY SECONDARY

17

ENROLLMENT BY ATTENDANCE AREAS

3,175 3,128 3,047 3,082 3,049

-

1,000

1999 2000 2001 2002 2003

FISCAL YEAR

2,8932,9543,0583,1063,047

2,000

3,000

4,000

5,000

STU

DEN

T C

OU

NT

8,000

1,1101,1921,1771,1631,2306,000

7,000

KIRTLAND AREA SHIPROCK AREA NEWCOMB AREA

These trends indicate that the District would experience lower funding levels in the coming fiscal years if State unit value amounts remained 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 promised to school districts from this funding source, which may help to offset the reduction in funding from declining enrollments in the District. However, at this time, the District does not know how much, if any, additional funding it will receive because of this constitutional amendment. The next session of the legislature will deal with these issues. The changes will affect the fiscal year 2004-2005 budget.

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

ded various measures that will affect public schools in the State of New ico.

incluexM

18

Cash carryover amounts from the Operational Funds will be limited at the end of fiscal year 2003-2004. Cash balances cannot exceed a predetermined rate of “program cost” (4.5% for the District—$1.79 million for fiscal year 2003-2004), or the State will take back the excess carryover funds. Districts with Impact Aid funds will be given an additional allowance for carryover, but this calculation has yet to be determined by the State. The District will need to watch its cash balances and use these funds effectively so as to not lose funds back 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 in

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

Minimum of three years at Level II

every nine years with the following criteria:

•

in 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.

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

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

Verify leadership role

The Federal No Child Left Behind Act (NCLB) is changing the way schools are rated with

19

Students with disabilities

all students the choice option to transfer to another public school within the sthe Titl

If a school nd of the first full school year after

being iden ement, then the District must arrange for supplem tudents who attend that school. These s iacademic enrichment to the instruction prov

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

200 2schoolsyears oquality te or local test. Five percent of the Title I b at all teachers and paraprofes

These changes w

individual schools. District Operational and Titl by these changes as additional dollars are moved into supplemental services or to salaries as increase e

CONTACTI

his financial report is designed to provide the District’s citizens, taxpayers, customers, inv odemonsabout tof Fina 17.

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 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

Di trict that has not been identified for improvement at the expense of e I program.

fails to make AYP by the etified for school improvental educational services for eligible s

erv ces can include tutoring and other supplemental services, recognized by the State, that are in addition ided during the school day.

5- 006. All paraprofessionals (aides) in Title I schools (all District are Title I schools) must have a high school diploma and have two f college or an associate’s degree, or meet a rigorous standard of and demonstrate skill on a Sta

udget must be used to ensure thsionals meet these high quality standards.

ill govern set-aside dollars before allocating funds to

e I budgets may be affected in the future

d r quirements are put on teachers and paraprofessionals.

NG THE DISTRICT’S FINANCIAL MANAGEMENT

Test rs, and creditors with a general overview of the District’s finances and to

trate the District’s accountability for the money it receives. If you have questions his report or need additional financial information, contact the Executive Director nce, Central Consolidated School District, 583 CR 6100, Kirtland, NM 874

20

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF NET ASSETS As of June 30, 2003

GovernmentalActivities

ASSETS Current Assets:

Cash and Investments $ 26,458,250Taxes Receivable (Net) 593,850Due from Other Governmental Units 2,449,564Inventory 120,894

Total Current Assets 29,622,558

Noncurrent Assets:Land 1,639,047Construction in Progress 7,356,645Depreciable Noncurrent Assets

Buildings, Equipment, and Improvements 162,250,768Less: Accumulated Depreciation (40,886,994) Total Noncurrent Assets 130,359,466

Total Assets 159,982,024

LIABILITIES Current Liabilities

Accounts Payable and Other Current Liabilities 1,482,989Accrued Interest 645,658Deferred Revenue 1,213,904Current Portion of Long-Term Obligations 3,189,859

Total Current Liabilities 6,532,410

Long-Term LiabilitiesCompensated Absences Payable 279,040Noncurrent Portion of Long-Term Obligations 32,689,113

Total Long-Term Liabilities 32,968,153

Total Liabilities 39,500,563

NET ASSETSInvestment in Capital Assets, Net of Related Debt 100,023,755Restricted For :

Debt Service 3,421,281Capital Projects 12,194,964Other Restrictions 1,028,655

Unrestricted 3,812,806

Total Net Assets $ 120,481,461

SEE INDEPENDENT AUDITOR'S REPORTS The Accompanying Notes Are An Integral Part Of These Financial Statements 21

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2003

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 $ 37,954,477 728,692 6,275,073 $ (30,950,712)Instructional Support 11,501,067 (11,501,067)Administration 1,772,190 365,775 (1,406,415)Business and Support Services 1,519,519 (1,519,519)Operation and Maintenance of Plant 7,266,990 374,967 143,564 (6,748,459)Food Services 2,550,562 241,826 2,554,800 246,064Athletics 1,100,954 183,300 (917,654)Non-Instructional Support 266,740 149,659 (117,081)Community Services 1,375,917 (1,375,917)Student Transportation 3,002,532 2,891,157 (111,375)Interest on Long-Term Obligations 2,410,903 (2,410,903)

Total Governmental Activities $ 70,721,851 949,752 6,683,988 6,275,073 (56,813,038)

General Revenues: Taxes Property Taxes, Levied for General Purposes 246,220 Property Taxes, Levied for Debt Service 4,776,948 Property Taxes, Levied for Capital Projects 1,310,508 Federal and State Aid Not Restricted to Specific Purpose General 52,554,883 Capital 3,451,313 Interest and Investment Earnings 618,157 Miscellaneous 700,861 Subtotal, General Revenues 63,658,890

Change in Net Assets 6,845,852

Net Asets - Beginning 113,635,609

Net Assets - Ending $ 120,481,461


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22BALANCE SHEET - GOVERNMENTAL FUNDSAs of June 30, 2003

Fund Fund Fund Fund Fund Fund Fund Fund Fund11000 13000 14000 21000 24247 31100 31200 31500 41000

GENERAL PUBLIC SCHOOL SPECIAL OtherOPERATIONAL INSTRUCTIONAL FOOD PL 81-874 BOND CAPITAL CAP. OUTLAY DEBT Governmental

FUND TRANSPORTATION MATERIALS SERVICES IMPACT AID BUILDING OUTLAY FEDERAL SERVICE Funds TOTALS

ASSETS

Assets:Cash and Investments $ 3,791,947 386,549 112,208 313,900 6,903,350 5,683,315 603,869 3,617,678 6,535,115 27,947,931Receivables 15,006 70,978 406,927 1,115,000 289,262 936,242 2,833,415Due from Other Funds 3,155 3,155Inventory 120,894 120,894

Total Assets $ 3,810,108 386,549 112,208 505,772 6,903,350 5,683,315 406,927 1,718,869 3,906,940 7,471,357 30,905,395

LIABILITIES AND FUND BALANCE

Liabilities:Bank Overdraft $ 292,903 1,196,778 1,489,681Accounts Payable 44,062 1,365 50,106 140,054 253,653 655,618 133,201 1,278,059Accrued Salaries and Benefits 8,773 722 2,748 41,701 95,176 149,120Accrued Compensated Absences 42,210 3,838 1,127 1,878 6,755 55,808Due to Other Funds 3,155 3,155Deferred Revenue 1,213,904 1,213,904

Total Liabilities 95,045 5,925 53,981 43,579 140,054 546,556 655,618 2,648,969 4,189,727

Fund Balance:Reserved for Inventory 120,894 120,894Reserved for Subsequent

Year's Expenditures 3,210,204 175,283 5,758,407 830,290 3,383,699 13,357,883Reserved for Debt Service 3,906,940 3,906,940Undesignated, Reported In:

General Fund 504,859 504,859Special Revenue Funds 380,624 112,208 155,614 6,859,771 2,115,214 9,623,431Capital Projects Funds (215,146) (139,629) 232,961 (676,525) (798,339)

Total Fund Balance 3,715,063 380,624 112,208 451,791 6,859,771 5,543,261 (139,629) 1,063,251 3,906,940 4,822,388 26,715,668

Total Liabilities and Fund Balance $ 3,810,108 386,549 112,208 505,772 6,903,350 5,683,315 406,927 1,718,869 3,906,940 7,471,357 30,905,395

SEE INDEPENDENT AUDITOR'S REPORTSThe Accompanying Notes Are An Integral Part Of These Financial Statements 23

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET WITH THE STATEMENT OF NET ASSETS June 30, 2003

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

Total fund balances - governmental funds $ 26,715,668

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 171,246,460Accumulated depreciation is (40,886,997) 130,359,463

Delinquent property taxes not collected within thirty days after year-endare not considered "available" revenues for the Balance Sheet 210,000

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

Bonds payable (35,225,000)Compensated absences (279,040)Lease purchase payable (653,972)Accrued interest payable (645,658) (36,803,670)

Total net assets--governmental activities $ 120,481,461


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSFor the Year Ended June 30, 2003

Fund Fund Fund Fund Fund Fund11000 13000 14000 21000 24247 31100

GENERALOPERATIONAL INSTRUCTIONAL FOOD PL 81-874 BOND

FUND TRANSPORTATION MATERIALS SERVICES IMPACT AID BUILDINGRevenues:

Federal Sources $ 14,314,593 2,554,800 4,314,137State Sources 25,006,234 2,888,846 574,726Local Sources 958,960 2,311 5,383 241,827 104,515

Total Revenues 40,279,787 2,891,157 580,109 2,796,627 4,314,137 104,515

Expenditures:Education, Current:

Direct Instruction 23,213,286 350,258 2,529,157Instructional Support 7,474,921 1,207,148Administration 1,044,970 103,275 101,604Business and Support Services 1,199,376 142,641Operation and Maintenance of Plant 6,001,788 96,987Food Services 2,538,664Athletics 848,535Non-Instructional Support 191,624Community Services 417,494 24,763Student Transportation 2,586,125

Education, Non-Current:Debt PrincipalDebt InterestCapital Outlay 107,055 53,802 554,771

Total Expenditures 40,499,049 2,586,125 350,258 2,538,664 4,157,773 656,375

Revenues Over (Under) Expenditures (219,262) 305,032 229,851 257,963 156,364 (551,860)

Other Financing Sources (Uses):Bond Proceeds 5,700,000Refund to GrantorLease Purchase Payments

Net Other Financing Sources (Uses) 5,700,000

Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (219,262) 305,032 229,851 257,963 156,364 5,148,140

Fund Balance - Beginning of Year, as Previously Reported 3,934,298 75,592 (117,643) 193,828 6,703,407 395,121

Adjustments and Residual Equity Transfers 27

Fund Balance - Beginning of Year, as Restated 3,934,325 75,592 (117,643) 193,828 6,703,407 395,121

Fund Balance - End of Year $ 3,715,063 380,624 112,208 451,791 6,859,771 5,543,261

25

SEE INDEPENDENT AUDITOR'S REPORTSThe Accompanying Notes Are An Integral Part Of These Financial Statements

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSFor the Year Ended June 30, 2003

Fund Fund Fund31200 31500 41000

PUBLIC SCHOOL SPECIAL OtherCAPITAL CAP. OUTLAY DEBT GovernmentalOUTLAY FEDERAL SERVICE Funds TOTALS

Revenues:Federal Sources $ 4,740,123 12,644,605 38,568,258State Sources 1,404,282 953,205 30,827,293Local Sources 4,651,654 2,050,518 8,015,168

Total Revenues 1,404,282 4,740,123 4,651,654 15,648,328 77,410,719


Direct Instruction 6,050,946 32,143,647Instructional Support 2,787,171 11,469,240Administration 42,940 263,648 1,556,437Business and Support Services 68,654 1,410,671Operation and Maintenance of Plant 361,779 6,460,554Food Services 2,538,664Athletics 117,645 966,180Non-Instructional Support 75,116 266,740Community Services 931,588 1,373,845Student Transportation 33,346 2,619,471

Education, Non-Current: Debt Principal 3,000,000 3,000,000Debt Interest 1,702,450 1,702,450Capital Outlay 1,641,815 4,522,112 5,092,577 11,972,132

Total Expenditures 1,641,815 4,522,112 4,745,390 15,782,470 77,480,031

Revenues Over (Under) Expenditures (237,533) 218,011 (93,736) (134,142) (69,312)

Other Financing Sources (Uses):Bond Proceeds 5,700,000Refund to Grantor (52,078) (52,078)Lease Purchase Payments (355,135) (355,135)

Net Other Financing Sources (Uses) (407,213) 5,292,787

Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (237,533) 218,011 (93,736) (541,355) 5,223,475

Fund Balance - Beginning of Year, as Previously Reported 97,904 845,240 4,000,675 5,363,770 21,492,192

Adjustments and Residual Equity Transfers (27)

Fund Balance - Beginning of Year, as Restated 97,904 845,240 4,000,675 5,363,743 21,492,192

Fund Balance - End of Year $ (139,629) 1,063,251 3,906,939 4,822,388 26,715,667

25B


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, 2003

Total net change in fund balances - governmental funds $ 5,223,476

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 depreciation exceeds capital outlays in the period.

Depreciation expense (3,825,442)Capital outlays 8,570,175Excess of capital outlays over depreciation expense 4,744,733

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 (279,040)Accrued interest payable (645,658) (924,698)

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 3,000,000Lease purchase principal payments 292,341 3,292,341

Because some property taxes 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. 210,000

Bond proceeds provide current financial resources to governmental funds, butissuing debt increases long-term liabilities in the Statement of Net Assets. Bondproceeds for the year totaled: (5,700,000)

Change in net assets of governmental activities $ 6,845,852


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22GENERAL FUNDFUND 11000 - OPERATIONALSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)

VariancesPositive/(Negative)

Budgeted Amounts Originalto Final

Finalto ActualOriginal Final

Revenues:Federal Sources:

PL874 - Impact Aid $ 16,045,263 16,045,263 13,805,253 - (2,240,010)Federal Direct Grants Indirect Costs 108,000 108,000 184,845 - 76,845Federal Flowthrough Grants Indirect Costs 135,126 135,126 180,931 - 45,805Access Board (E-rate) - - 143,564 - 143,56420% Restricted (3,267,938) (3,267,938) - - 3,267,938

13,020,451 13,020,451 14,314,593 - 1,294,142State Sources:

State Equalization Guarantee 25,652,462 25,906,671 25,006,234 254,209 (900,437)

Local Sources:School District Tax Levy 292,928 292,928 220,290 - (72,638)Oil and Gas Taxes 2,174 2,174 2,440 - 266Fees - Activities 15,000 15,000 4,313 - (10,687)Rents and Leases 175,000 175,000 202,613 - 27,613Sale of District Assets - - 19,303 - 19,303Prior Year Checks Voided - - 12,928 - 12,928Gifts/Donations Non-Category - - 400 - 400Insurance Recoveries 5,000 5,000 46,342 - 41,342Refunds 20,000 20,000 649 - (19,351)Earnings from Investments 600,000 600,000 351,917 - (248,083)

1,110,102 1,110,102 861,195 - (248,907)Total Revenues 39,783,015 40,037,224 40,182,022 254,209 144,798


Direct Instruction 23,749,086 23,853,145 23,216,909 (104,059) 636,236Instructional Support 7,947,433 8,008,135 7,484,257 (60,702) 523,878Administration 1,096,459 1,191,804 1,035,715 (95,345) 156,089Business and Support Services 1,161,454 1,265,336 1,197,465 (103,882) 67,871Operations and Maintenance of Plant 6,365,221 6,458,721 6,013,439 (93,500) 445,282Athletics 899,515 929,538 850,385 (30,023) 79,153Non-Instructional Support 243,999 243,999 191,624 - 52,375Community Services 435,623 448,623 416,343 (13,000) 32,280Non-Operating 420,000 1,493,596 - (1,073,596) 1,493,596

Education, Non-Current:Capital Outlay - 107,055 107,055 (107,055) -

Total Expenditures 42,318,790 43,999,952 40,513,192 (1,681,162) 3,486,760

Revenues Over (Under) Expenditures (2,535,775) (3,962,728) (331,170) (1,426,953) 3,631,558

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 2,535,775 3,962,728


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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources:

Transportation Distribution $ 2,544,251 2,960,344 2,888,846 416,093 (71,498)Local Sources:

Sale of District Assets - - 1,890 - 1,890Insurance Recoveries - - 421 - 421

Total Revenues 2,544,251 2,960,344 2,891,157 416,093 (69,187)


Student Transportation 2,544,251 2,987,269 2,603,032 (443,018) 384,237

Revenues Over (Under) Expenditures - (26,925) 288,125 (26,925) 315,050

Budgetary Notation-Cash Appropriatedfrom Prior Year $ - 26,925


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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources:

Instructional Materials-Credit $ 367,192 325,120 402,308 (42,072) 77,188Instructional Materials-Cash 157,368 136,288 172,418 (21,080) 36,130

Local Sources:Insurance/Individual Recoveries - - 5,383 - 5,383

Total Revenues 524,560 461,408 580,109 (63,152) 118,701


Direct Instruction 524,560 461,408 350,755 63,152 110,653

Revenues Over (Under) Expenditures $ - - 229,354 - 229,354


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, 2003

Actual(Budgetary

Basis)




Revenues: Federal Sources:

Direct Federal Grants $ 2,240,000 2,240,000 2,336,293 - 96,293Donated Commodities 21,000 208,393 204,893 187,393 (3,500)Other Grants 6,000 6,000 1,000 - (5,000)

Local Sources:Fees - Adults 218,000 218,000 241,827 - 23,827

Total Revenues 2,485,000 2,672,393 2,784,013 187,393 111,620

Expenditures: Education, Current:

Food Services 2,525,067 2,712,460 2,618,960 (187,393) 93,500

Revenues Over (Under) Expenditures (40,067) (40,067) 165,053 - 205,120

Budgetary Notation-Cash Appropriatedfrom Prior Year $ 40,067 40,067


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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 6,727,856 6,744,187 4,314,137 16,331 (2,430,050)


Direct Instruction 3,282,750 3,285,581 2,533,314 (2,831) 752,267Instructional Support 2,501,500 2,501,500 1,207,963 - 1,293,537Administration 190,000 190,000 103,275 - 86,725Business and Support Services 205,250 205,250 142,686 - 62,564Operation and Maintenance of Plant 114,350 116,300 96,733 (1,950) 19,567Community Services 343,375 344,925 17,202 (1,550) 327,723

Education, Non-Current: Capital Outlay 90,631 100,631 53,802 (10,000) 46,829

Total Expenditures 6,727,856 6,744,187 4,154,975 (16,331) 2,589,212



STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 STATEMENT OF FIDUCIARY NET ASSETS - AGENCY FUNDS As of June 30, 2003

Agency FundsAssets

Cash and Investments $ 378,446

Liabilities

Deposits Held for Others $ 378,446


NOTES TO FINANCIAL STATEMENTS

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 NOTES TO FINANCIAL STATEMENTS June 30, 2003 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. In June 1999, the GASB issued its Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis-for State and Local Governments. Central Consolidated School District No. 22 implemented the provisions of Statement No. 34 for the fiscal year ended June 30, 2003. Significant changes have been made in financial reporting. A few of the most significant changes include:

(1) Addition of Management Discussion and Analysis; (2) Elimination of account groups; (3) Changes in reporting trust and agency funds; (4) Recording of infrastructure assets; (5) Recognition of depreciation on all fixed assets; (6) Display of a “Statement of Net Assets” in lieu of the “Combined Balance

Sheet” which will include amounts previously reported in account groups. Capital assets will be reported net of accumulated depreciation and amortization;

(7) Display of a “Statement of Activities” in lieu of the “Combined Statement of Revenues, Expenditures, and Changes in Fund Balances” in a format significantly different from current practice;

(8) Changes to required supplementary data; (9) Changes in footnote disclosures.

The District’s more significant accounting policies are described below:

A. 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 regulations of the State Board, develop educational policies

for the District;

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(2) Employ a superintendent of schools 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) Except for expenditures for salaries, contract for the expenditures of money according to the provisions of the Procurement Code;

(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 State Board.

The District operates under the auspices of the New Mexico Department of Public

Education and adheres to budgetary accounting principles and procedures promulgated by the New Mexico Department of Public Education 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.).

B. Reporting Entity

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, the designation of management, the ability to significantly influence operations, 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 geographic boundaries of the District and is generally available to its citizens. A third criterion used to evaluate

34

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, the following is a brief review of each potential component unit addressed in defining the District's reporting entity.

Included within the reporting entity:

All funds and functions which are under the District's control and responsibility, including those which are included in the District's reports to the New Mexico Department of Public Education.

No other entities meet the criteria for inclusion in the reporting entity 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 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.

Under the requirements of GASB Statement No. 34, the District is required to present certain of its governmental funds as major funds based upon certain specific criteria. In addition to the General Fund described above, the District

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has designated the following funds as major funds:

Transportation Fund – 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 Fund – to account for funding designated for instructional materials purchases as authorized by Sections 22-15-1 through 22-15-14, NMSA, 1978. Food Services Fund – 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). Impact Aid (PL-81-874) Fund – 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 living on Indian lands. Bond Building Fund – 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–State Fund – 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. Special Capital Outlay–Federal Fund – to account for funding provided by Federal sources designated for capital projects. Debt Service Fund – 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.

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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, 2003. 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 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. 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. Allocation of Indirect Expenses 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.

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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 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 Salaries earned prior to year-end are accrued. Other Financing Sources (Uses) 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-

38

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. 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, 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 Department of Public Education 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.

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(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.

(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, 2003 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. 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. GASB Statement No. 34 requires that infrastructure (roads, bridges, storm drainage projects, etc.), if any, are to be 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: Land Improvements 40 years Buildings and Building Improvements 60 years Equipment and Vehicles 5 to 10 years

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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 In accordance with the provisions of Statement No. 16 of the Governmental Accounting Standards Board, Accounting for Compensated Absences, no liability has been recorded for nonvesting 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.

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;

(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

43

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 Governmental Accounting Standards Board has issued its Statement No. 3 that requires deposits and investments to be classified into three categories of risk. The categories of risk relate only to custodial credit risk which is the risk that the school district will not be able either to recover deposits if the depository financial institution fails or to recover the value of investment or collateral securities that are in the possession of an outside party if the counter party to the investment or deposit transaction fails. Classification in category 1 indicates that the exposure of deposits or investments to potential custodial credit risk is low. The level of potential custodial credit risk is higher for deposits and investments classified in category 2 and highest for those in category 3.

Deposits with financial institutions are classified depending on whether they are insured or collateralized, as follows:

Category 1: Insured or collateralized with securities held by the entity or by its agent in the entity's name.

Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name.

Category 3: Uncollateralized. (This includes any bank balance that is collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the entity's name.)

Investments that are securities that are not either insured, registered, or in the hands of the District have to be classified in the three categories based on who the securities custodian is and how the custodian holds the securities. Utilizing this criteria result in the following classification:

Category 1: Insured or registered, or securities held by the entity or its agent in the entity's name.

Category 2: Uninsured and unregistered, with securities held by the counter-party's trust department or agent in the entity's name.

Category 3: Uninsured and unregistered, with securities held by the counter-party, or its trust department, or agent but not in the entity's name.

Demand deposits at June 30, 2003 that were insured by Federal Deposit Insurance Corporation have all been classified as Category 1.

If the District is unable to receive payment on public money at the rate of interest set forth by the State Board of Finance (which is no less than one hundred percent of the asked price on United States Treasury Bills of the same maturity on the day of the

44

deposit) from financial institutions within the geographic boundaries of the governmental unit, the District may invest its money with banks, savings and loans, credit unions or the New Mexico State Treasurer's short-term investment pool. Money invested in the New Mexico State Treasurer's short-term investment pool shall not be invested for a period greater than one hundred eighty one days. The State Treasurer Local Governmental Investment Pool is not SEC registered. Section 6-10-10 I, 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 by its departments or agencies and are either direct obligations of the U.S. or are backed by the full faith and credit of the U.S. government or are sponsored by the U.S. government. The Local Government Investment 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 6-10-10F, NMSA 1978, at the end of each month all interest earned is distributed by the State Treasurer to the contributing entities in the amounts directly proportionate to the respective amounts deposited in the fund and the length of time the amounts were invested. Central Consolidated School District voluntarily participates in the State Treasurer Local Government Investment Pool. The investments are valued at fair value based upon quoted market prices as of the valuation date.

At June 30, 2003, the carrying amount (book balance) of Central Consolidated School

District No. 22 was $26,458,250. The bank deposits are held at Wells Fargo Bank. An additional amount was placed with the New Mexico Treasurer's Local Government Investment Pool. Total cash and investments, as reflected on the balance sheet include the following:

Cash and investments with financial institutions $ 16,458,250 Investments with New Mexico State Treasurer 10,000,000 $ 26,458,250 These balances are reflected as: Cash and investments $ 27,947,931 Bank overdraft (1,489,681) $ 26,458,250

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The deposits in the banks are insured and pledged as follows:

Carrying Amount

Bank Balance

Wells Fargo Bank: Insured Uninsured

$ 100,000

16,358,250

$ 100,000

20,069,952 Total cash in bank

$16,458,250

$20,169,952

50% collateralization required- 50% of uninsured

$10,084,976

Pledged collateral

25,229,943

Over collateralization

$15,144,967

State of New Mexico Short-Term Investment Pool:

$10,000,000

$10,000,000

The following schedule summarizes the bank's deposits by risk categories (not presented is New Mexico State Treasurer’s Investment Pool): Risk

Category #1 Risk

Category #2 Risk

Category #3

Totals Wells Fargo Bank $ 100,000 $ 20,069,952 $ 20,169,952

3. RECEIVABLES

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, 2003 are

detailed hereunder:

General Other MajorOther

Governmental TotalProperty Taxes 23,004$ 430,131$ 120,582$ 573,717$ Oil and Gas Taxes 1,003 19,130 20,133 Due From Grantors 1,592,905 856,659 2,449,564 Total 24,007$ 2,042,166$ 977,241$ 3,043,414$

All amounts are considered collectible at June 30, 2003.

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4. CAPITAL ASSETS

Capital assets balances and activity for the year ended June 30, 2003 are as follow:

Capital Assets ClassBalance at July 1,

2002 Additions DeletionsBalance at June 30,

2003

Land 1,639,047$ 1,639,047$ Land Improvements 5,177,825 3,647,150 8,824,975 Buildings and Improvements 129,504,561 18,398,696 147,903,257 Equipment and Vehicles 13,549,810 270,057 (8,297,331) 5,522,536 Construction in Progress 1,157,185 8,028,736 (1,829,276) 7,356,645 Total 151,028,428 30,344,639 (10,126,607) 171,246,460

Less Accumulated Depreciation: Land Improvements 2,820,442 239,224 3,059,666 Buildings and Improvements 32,692,308 2,883,987 35,576,295 Vehicles and Equipment 1,548,802 702,231 2,251,033 Total Depreciation 37,061,552 3,825,442 - 40,886,994

Governmental Activities Capital Assets, Net $ 113,966,876 26,519,197 (10,126,607) $ 130,359,466

Depreciation Expense by Function Direct Instruction 2,606,227$ Instructional Support 1,905 Administration 180,063 Business and Support Services 56,817 Operation and Maintenance of Plant 446,602 Food Services 6,261 Athletics 143,556 Transportation 384,011

Total Depreciation Expense 3,825,442$

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

Eva B. Stokely Elementary Addition 4,012,115$ 3,589,765$ 422,350$ FY04

Nizhoni Elementary Addition/Remodel 3,117,994 1,907,901 1,210,093 FY04

Nataani Nez - Kindergarten Classrooms 481,340 377,404 103,936 FY04

Nataani Nez Elementary Remodel 1,315,735 885,364 430,371 FY04

Performing Arts Centers 10,860,000 230,436 10,629,564 FY05

Mesa Elementary Remodel 2,775,636 134,862 2,640,774 FY05

Other Projects 320,000 230,913 89,087 FY04

22,882,820$ 7,356,645$ 15,526,175$

Construction in Progress

Project Budget

Project Balance

Estimated Completion

Date

5. GENERAL LONG-TERM DEBT

A. Changes in Long-Term Liabilities

During the year ended June 30, 2003, the following changes occurred in the Long-Term liabilities.

Balance at

July 1, 2002

Additions

Deletions

Balance at

June 30, 2003 General Obligation Bonds Payable Lease Purchase Contracts Compensated Absences

$ 32,525,000

946,313 281,163

$ 5,700,000

0 59,950

$ 3,000,000

292,341 62,073

$ 35,225,000 653,972 279,040

Total

$ 33,752,476

$ 5,759,950

$ 3,354,414

$ 36,158,012

B. General Obligation Bonds

The District’s bonds are general obligation 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 4.00% to 5.88%. The following is a schedule of the debt service requirements for all general obligation bonds as of June 30, 2003.

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YEAR

ENDED JUNE 30

PRINCIPAL INTEREST TOTAL

2004 $ 2,875,000

$ 1,663,213

$ 4,538,213 2005 2,825,000 1,527,137 4,352,137 2006 2,825,000 1,390,463 4,215,463 2007 2,825,000 1,252,212 4,077,212 2008 2,825,000 1,112,713 3,937,713 2009 2,750,000 971,325 3,721,325 2010 2,700,000 831,625 3,531,625 2011 2,800,000 690,900 3,490,900 2012 2,800,000 545,875 3,345,875 2013 2,800,000 400,150 3,200,150 2014 2,400,000 268,500 2,668,500 2015 1,800,000 169,000 1,969,000 2016 1,000,000 107,250 1,107,250 2017 1,000,000 64,750 1,064,750 2018 1,000,000 21,750 1,021,750

Total $ 35,225,000 $ 11,016,863 $ 46,241,863

C. Lease Purchase

In May of 1995 the District entered into a lease purchase agreement for the Honeywell Energy Management System. A description of the contract follows with a schedule showing remaining payments due as of June 30, 2003. . 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

Due June 30 Principal Interest Total

2004 2005

$314,859 339,113$653,972

$40,276 16,022$56,298

$355,135 355,135 $710,270

D. 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 $55,808 is included with the caption “Accounts Payable and Other Current Liabilities.”

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Accrued compensated absences, which have been recorded pursuant to GASB No. 16 amounted to $334,848. The current portion recorded as a liability in the Governmental Funds equals $55,808.

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

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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, 2003, 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):

General Operational Purposes Public School Capital Improvements General Obligation Bonds-Debt Service

Residential .329 2.000 7.638

Non-residential .500 2.000 7.638

Property tax revenue recognized by the District during the year ended June 30,

2003 amounted to the following:

General Operational Purposes Public School Capital Improvements General Obligation Bonds-Debt Service Public School Capital Outlay-20%

Real Property Taxes

$ 242,975

1,234,931

4,716,571 58,489

$ 6,252,966

Oil and Gas Taxes $ 3,245 16,227 60,377 861 $ 80,710

Total $ 246,220 1,251,158 4,776,948 59,350 $ 6,333,676

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

51

authority of the chief (director of public school finance). The District received $25,006,234 in state equalization guarantee distributions during the year ended June 30, 2003.

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.

The District received $2,888,846 in transportation distributions during the year

ended June 30, 2003. 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 did not receive any SB-9 state match funds during the year ended June 30, 2003.

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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;

(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 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, 2003, the District was entitled to receive

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$1,404,282 of critical capital outlay funds.

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 Department of Education shall allocate credit to the instructional materials account of 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. For the purpose of this allocation, additional pupils (increase in enrollment over prior year) shall be counted as four pupils. On or before January 15 of each year, the Department of Education 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 compensating for any over- or under-estimation of credit made in the first allocation. In the event the funds remaining for this allocation are insufficient to compensate for an over- or under-estimation of credit made in the first allocation, the final re-compute over- or under-allocation of credit shall be carried forward by the Department of Education to be credited or debited to the allocation for the ensuing school year. An amount not to exceed thirty percent of total credit allocations attributed to each individual instructional materials account shall, at the request of the local school district or the appropriate governing body and institution, be distributed directly to each public school district, state institution, or adult basic education center 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 credits from year to year.

During the year ended June 30, 2003 the District received $574,726 and expensed $350,258 for instructional materials under this program.

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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 Department of Education. This department also administers these funds. The District also receives reimbursements under the National School Lunch and Breakfast Programs for its food service 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 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.

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 2.15%. A member is eligible to retire when:

(1) The member's age and earned service credit add up to the sum of 75 or

more, or (2) The member is age 65 or more with at least five years of earned service

credit, or (3) The member has earned service credit at allowed service credit totaling 25

or more years.

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

55

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:

(1) When the member's age and years of "earned service credit" (covered

employment in New Mexico) add up to the sum of 75 or more, or (2) The member may retire at age 65, if he/she has at least five years of

"earned service credit.”

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. 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, 2003, 2002, and 2001 were $3,233,553, $3,289,699, and $3,005,574 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.

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, Magistrate Retirement Act, Public Employees Retirement Act, Volunteer Firefighters Retirement Act, or Judicial 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

56

behalf, unless that person retires on or before July 1, 1995, in which event the time period for contributions becomes the time between July 1, 1990, and the date of retirement; or

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

Each participating employer makes contributions to the fund in the amount of one and three-tenths percent (1.3%) of each participating employee's 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. The contribution amounts increase periodically.

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, 810 W. San Mateo Rd., Santa Fe, New Mexico 87505.

For the fiscal year ended June 30, 2003, the District remitted $488,389 in employer contributions and $244,192 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, 2003, as listed below, are expected to be recovered during the fiscal year ended June 30, 2004.

Special Revenue Funds:

Johnson O’Malley - Fund 24231 N.M. GRADS - Fund 24249 Medical Assistance Payments (Medicaid) - Fund 24252 ETIP Project – Fund 24307 CYFD Preschool – Fund 25335 Incentives for School Improvement – Fund 25374 Teacher Mentoring – Fund 25433

$ 16,96711,479

116,70836,09813,7864,1484,027

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Capital Projects Funds:

Public School Capital Outlay - Fund 31200 Special Capital Outlay - State – Fund 31400 Energy Efficiency - Fund 31800

$ 139,629344,587

3,155 10. ADJUSTMENTS AND RESIDUAL EQUITY TRANSFERS

Residual equity transfers were made to the Operating Fund in the amount of $27 to close various special revenue funds that had become inactive.

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.

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12. RECONCILIATION OF BUDGETARY BASIS TO GAAP BASIS STATEMENTS

GENERALOPERATIONAL INSTRUCTIONAL FOOD

FUND TRANSPORTATION MATERIALS SERVICES

Revenues Over Expenditures - Budgetary Comparison Statements-Budgetary Basis (331,170)$ 288,125$ 229,354$ 165,053$

Adjustments:Increase (Decrease) in:

Investment Income 83,275Accounts Receivable 13,474Due from Other Governments 12,614Inventory 66,603

(Increase) Decrease in:Accounts Payable (3,182) 17,279 497 16,113Accrued Expenses 17,052 (722) (2,748)Compensated Absences 1,289 350 328Deferred Revenue

Revenues Over Expenditures Statement of Revenues,Expenditures, and Changesin Fund Balances (219,262)$ 305,032$ 229,851$ 257,963$

PL 81-874 BOND PUBLIC SCHOOLS SPECIAL DEBTIMPACT AID BUILDING CAP. OUTLAY CAP. OUTLAY SERVICE

Revenues Over Expenditures - Budgetary Comparison Statements-Budgetary Basis 159,162$ 5,281,604$ (406,927)$ (255,254)$ (380,326)$


Investment Income 6,590 8,293Accounts Receivable 278,297Due from Other Governments 406,927 1,115,000Inventory

(Increase) Decrease in:Accounts Payable 4,157 (140,054) (237,533) (641,735)Accrued Expenses (7,560)Compensated Absences 605Deferred Revenue

Revenues Over Expenditures Statement of Revenues,Expenditures, and Changesin Fund Balances 156,364$ 5,148,140$ (237,533)$ 218,011$ (93,736)$

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TOTAL OTHERMAJOR GOVERNMENTALFUNDS FUNDS TOTALS

Revenues Over Expenditures - Budgetary Comparison Statements-Budgetary Basis 4,749,621$ (1,882,504)$ 2,867,117$


Investment Income 98,158 13,907 112,065 Accounts Receivable 291,771 62,945 354,716 Due from Other Governments 1,534,541 180,975 1,715,516 Inventory 66,603 66,603

(Increase) Decrease in:Accounts Payable (984,458) 13,772 (970,686) Accrued Expenses 6,022 (1,272) 4,750 Compensated Absences 2,572 (2,145) 427 Deferred Revenue - 1,072,968 1,072,968

Revenues Over Expenditures Statement of Revenues,Expenditures, and Changesin Fund Balances 5,764,830$ (541,354)$ 5,223,476$

13. GASB 34 RECONCILIATION

Pursuant to New Mexico State Auditor’s Rule 2.2.2.10 c. c. below is the reconciliation between the ending fund balance at June 30, 2002 to the beginning of year net asset fund balances for all governmental funds.

Fund Balance -Governmental Funds at June 30, 2002 $ 21,492,192 General Obligation Bonds Payable 6/30/02 (32,525,000) Lease Purchase Payable 6/30/02 (946,313) Net Fixed Assets at 6/30/02 113,966,876 Increase in beginning fixed asset balance 19,944,243 Write-down of equipment under $5,000 (8,297,331) Other 942 Net Assets – Governmental Funds at July 1, 2002 $113,635, 609

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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. 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 substantially prepared by Central Consolidated School District No. 22 staff with the assistance of Gary E. Gaylord, Ltd.

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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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ 2,500 2,500 97,926 - 95,426


Administration - 450,000 101,604 (450,000) 348,396Education, Non-Current:

Capital Outlay 297,604 5,647,621 414,718 (5,350,017) 5,232,903Total Expenditures 297,604 6,097,621 516,322 (5,800,017) 5,581,299

Revenues Over (Under) Expenditures (295,104) (6,095,121) (418,396) (5,800,017) 5,676,725

Other Financing Sources (Uses):Sale of Bonds - 5,700,000 5,700,000 5,700,000 -

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses (295,104) (395,121) 5,281,604 (100,017) 5,676,725



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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ 2,000,000 3,991,500 997,355 1,991,500 (2,994,145)


Administration 132,000 - - 132,000 - Education, Non-Current:

Capital Outlay 1,868,000 4,105,523 1,404,282 (2,237,523) 2,701,241Total Expenditures 2,000,000 4,105,523 1,404,282 (2,105,523) 2,701,241

Revenues Over (Under) Expenditures - (114,023) (406,927) (114,023) (292,904)



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 465,123 3,625,123 465,123 3,160,000

Expenditures:Education, Non-Current:

Capital Outlay 5,053,262 5,518,385 3,880,377 (465,123) 1,638,008

Revenues Over (Under) Expenditures $ (5,053,262) (5,053,262) (255,254) - 4,798,008



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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ 4,786,500 4,786,500 4,365,064 - (421,436)


Administration 46,000 56,000 42,940 (10,000) 13,060Education, Non-Current:

Debt Service:Principal Payment 3,000,000 3,000,000 3,000,000 - - Interest Payment 1,736,500 1,736,500 1,702,450 - 34,050

Total Expenditures 4,782,500 4,792,500 4,745,390 (10,000) 47,110

Revenues Over (Under) Expenditures 4,000 (6,000) (380,326) (10,000) (374,326)



NON-MAJOR FUNDS

NON-MAJOR SPECIAL REVENUE FUNDS

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. 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. 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. ESEA Title I Migrant (24103) – To account for Federal money to assist States to ensure that migratory children have the opportunity to meet the same challenging State content and performance standards that all children are expected to meet. Funding is authorized by the Elementary and Secondary Education Act of 1965, Title I, Part C, 20 U.S.C. 6391 et seq. ESEA Title I Program Improvement (24105) – To account for a program funded by a Federal grant to help break the cycle of poverty and illiteracy and improve the educational opportunities of low-income families by integrating early childhood education, adult literacy or adult basic education, and parenting education into a unified family literacy program. Funding is authorized by the Elementary and Secondary Education Act of 1965; Title I, Part B, 20 U.S.C. 6362. 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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SPECIAL REVENUE FUNDS, 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. Title II Math/Science (24115) – 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 the Elementary and Secondary Education Act of 1965, Title II, Part B, as amended, 20 U.S.C. 6641-6702. 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. 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. Administrative Pool (24130) – 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. 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. Class Size Reduction (24137) – To account for a Federal program to reduce class size, particularly in the early grades, using highly qualified teachers to improve educational achievement for regular and special needs children. Funding authorized by the Department of Education Appropriations Act of 1999, Public Law 105-277. 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.

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Reading Excellence (24147) – To account for Federal grants awarded to states to provide children with the readiness skills and support they need in early childhood to learn to read once they enter school; teach every child to read by the end of the third grade; and, improve the instructional practices of teachers and other instructional staff in elementary schools. Funding is authorized by the Elementary and Secondary Education Act of 1965, Title II, Part C, as amended, Public Law 105-277. 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, and individual or group counseling services provided to students, parents, and school personnel. 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. 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. 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. Rural / 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. 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. 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 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

69


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 Incentive (24235) – Funding is to be used to creatively present and engage students in history and related social subjects. Star Schools Grant (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. 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. 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.

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Projects with Industry (24334) – Projects with a vocational rehabilitation grant supporting the transition of eligible students to work settings. Literacy Through Libraries (24335) – Funding source to allow for the increase of school library books. Staffing will also be enlarged to accommodate the additional needs of the libraries. PNM Foundation, Inc. (25123) – To account for a grant received from Public Service Company of New Mexico for an education project. Toyota Time (25137) – To account for a grant to be used to encourage and help prepare Native American students attend college. 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. 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. 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. 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]. School Improvement (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). 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.

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Teacher Mentoring (25433) – To account for funding authorized through the Joint Powers Agreement with the State Department of Public Education 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.

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STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22NON-MAJOR SPECIAL REVENUE FUNDSCOMBINING BALANCE SHEETAs of June 30, 2003


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

TEACHERAGE ATHLETICS SUPPORT TITLE I MIGRANT IMPROVEMENT ENTITLEMENT PRESCHOOL TITLE VI

ASSETS

Assets:Cash and Investments $ 236,147 88,060 603,053 282,683 49,445 443,904 54,638 17,031Receivables 12,078Due from Other FundsInventory

Total Assets $ 236,147 88,060 603,053 282,683 12,078 49,445 443,904 54,638 17,031


Liabilities:Bank Overdraft $Accounts Payable 1,512 4,028 11,330 8,141Accrued Salaries and Benefits 276 1,855 416Accrued Compensated Absences 1,039 61Due to Other FundsDeferred Revenue 271,016 10,223 40,888 443,904 54,638 17,031

Total Liabilities 2,551 4,028 282,683 12,078 49,445 443,904 54,638 17,031

Fund Balance:Reserved for InventoryReserved for Subsequent

Year's Expenditures 152,002 80,604 555,084Unreserved - Undesignated 81,594 3,428 47,969

Total Fund Balance 233,596 84,032 603,053

Total Liabilities and Fund Balance $ 236,147 88,060 603,053 282,683 12,078 49,445 443,904 54,638 17,031



Fund Fund Fund Fund Fund Fund Fund Fund24113 24119 24125 24126 24128 24130 24133 24135

EDUCATION FOR LEARN SAFE AND TECHNOLOGY COMPREHENSIVEHOMELESS CARL AND SERVE DRUG FREE ADMINISTRATIVE LITERACY SCHOOL REFORM

CHILDREN & YOUTH PERKINS EVENSTART AMERICA SCHOOLS POOL CHALLENGE DEMONSTRATION

ASSETS

Assets:Cash and Investments 4,091 37,112 37,978 4,800 14,669 14,792Receivables 2,290 22,773Due from Other FundsInventory

Total Assets 4,091 37,112 37,978 4,800 14,669 2,290 22,773 14,792


Liabilities:Bank Overdraft 22,773Accounts PayableAccrued Salaries and BenefitsAccrued Compensated Absences 2,290Due to Other FundsDeferred Revenue 4,091 37,112 37,978 4,800 14,669 14,792



Year's ExpendituresUnreserved - Undesignated

Total Fund Balance

Total Liabilities and Fund Balance 4,091 37,112 37,978 4,800 14,669 2,290 22,773 14,792




TITLE V TITLE I TITLE VII IHS/ NORTHERNVOCATIONAL READING INNOVATION PROGRAM INDIAN NAVAJOEDUCATION EXCELLENCE STRATEGIES TITLE II-A TITLE IV IMPROVEMENT EDUCATION MEDICAL CENTER

ASSETS

Assets:Cash and Investments 29,393 80 86,734 14,191 71,000 35,673Receivables 70,580 9,739 327,089Due from Other FundsInventory

Total Assets 70,580 39,132 80 86,734 14,191 71,000 327,089 35,673


Liabilities:Bank Overdraft 70,580 315,323Accounts Payable 1,325 4,823 945Accrued Salaries and Benefits 39,132 6,648 1,681Accrued Compensated Absences 280 295Due to Other FundsDeferred Revenue 80 86,734 12,586 71,000 33,047

Total Liabilities 70,580 39,132 80 86,734 14,191 71,000 327,089 35,673


Year's ExpendituresUnreserved - Undesignated

Total Fund Balance

Total Liabilities and Fund Balance 70,580 39,132 80 86,734 14,191 71,000 327,089 35,673




ADVANCED PL 81-874 MEDICAL ASSISTANCE NAVAJOJOHNSON PLACEMENT STAR IMPACT AID- NM PAYMENTS FIRST A/C NATIONO'MALLEY INCENTIVE SCHOOLS SPECIAL EDUCATION GRADS (MEDICAID) NM GRADS GRANTS

ASSETS

Assets:Cash and Investments 2,000 1,806,236 25,000 83,269Receivables 62,161 36,055 29,872 89,059Due from Other FundsInventory

Total Assets 62,161 2,000 36,055 1,806,236 29,872 25,000 172,328


Liabilities:Bank Overdraft 74,795 31,969 11,479 146,580Accounts Payable 3,875 1,356Accrued Salaries and Benefits 458 7,030 5,269Accrued Compensated Absences 1,966Due to Other FundsDeferred Revenue 2,000 25,000



Year's ExpendituresUnreserved - Undesignated (16,967) 4,086 1,795,884 (11,479) (116,708) 167,059

Total Fund Balance (16,967) 4,086 1,795,884 (11,479) (116,708) 167,059

Total Liabilities and Fund Balance 62,161 2,000 36,055 1,806,236 29,872 25,000 172,328




SMALLER PROJECTS LITERACY PNM TOYOTAETIP LEARNING WITH THROUGH LANL MERIDIAN FOUNDATION, TIME BURLINGTON

PROJECT COMMUNITIES INDUSTRY LIBRARIES FOUNDATION OIL INC. GRANT GRANT

ASSETS

Assets:Cash and Investments 39,990 1,098 6,387 813 1,351 2,175 1,460 6,938Receivables 50,000Due from Other FundsInventory

Total Assets 39,990 1,098 6,387 50,000 813 1,351 2,175 1,460 6,938


Liabilities:Bank Overdraft 25,170Accounts Payable 52,538Accrued Salaries and Benefits 23,550Accrued Compensated AbsencesDue to Other FundsDeferred Revenue 1,098 6,387 24,830

Total Liabilities 76,088 1,098 6,387 50,000


Year's ExpendituresUnreserved - Undesignated (36,098) 813 1,351 2,175 1,460 6,938

Total Fund Balance (36,098) 813 1,351 2,175 1,460 6,938

Total Liabilities and Fund Balance 39,990 1,098 6,387 50,000 813 1,351 2,175 1,460 6,938




CENTER FOR TANIF - AFTER TECHNOLOGY INCENTIVES PRIVATE NON-CYFD TEACHING SCHOOL FOR FOR SCHOOL TEACHER DIRECT MAJOR

PRESCHOOL EXCELLENCE CHILD CARE EDUCATION IMPROVEMENTS GEAR UP MENTORING GRANTS TOTALS

ASSETS

Assets:Cash and Investments 3,871 24,842 23,649 161,471 7,065 4,323,089Receivables 25,247 736,943Due from Other FundsInventory

Total Assets 25,247 3,871 24,842 23,649 161,471 7,065 5,060,032


Liabilities:Bank Overdraft 39,033 4,148 4,027 745,877Accounts Payable 5,543 95,416Accrued Salaries and Benefits 8,861 95,176Accrued Compensated Absences 824 6,755Due to Other FundsDeferred Revenue 1,213,904

Total Liabilities 39,033 8,861 824 4,148 5,543 4,027 2,157,128


Year's Expenditures 787,690Unreserved - Undesignated (13,786) 3,871 15,981 22,825 (4,148) 155,928 (4,027) 7,065 2,115,214

Total Fund Balance (13,786) 3,871 15,981 22,825 (4,148) 155,928 (4,027) 7,065 2,902,904

Total Liabilities and Fund Balance 25,247 3,871 24,842 23,649 161,471 7,065 5,060,032


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22NON-MAJOR SPECIAL REVENUE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESFor the Year Ended June 30, 2003

d

Fund Fund Fund Fund Fund Fund Fund12000 22000 23000 24101 24103 24105 24106

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

TEACHERAGE ATHLETICS SUPPORT TITLE I MIGRANT IMPROVEMENT ENTITLEMENTRevenues:

Federal Sources $ 2,493,116 2,214 141,549 1,316,733State SourcesLocal Sources 380,103 189,132 155,500

Total Revenues 380,103 189,132 155,500 2,493,116 2,214 141,549 1,316,733


Direct Instruction 2,067,845 2,214 75,770 1,161,074Instructional Support 208,213 11,823 111,086Administration 69,707 5,432 44,573Business and Support ServicesOperation and Maintenance of Plant 340,022 2,781Food ServicesAthletics 117,645Non-Instructional Support 75,116Community Services 105,333 48,524Student Transportation 21,752

Education, Non-Current:Debt PrincipalDebt InterestCapital Outlay 17,485

Total Expenditures 340,022 117,645 75,116 2,493,116 2,214 141,549 1,316,733

Revenues Over (Under) Expenditures 40,081 71,487 80,384

Other Financing Sources (Uses):Bond ProceedsRefund to GrantorLease Purchase Payments

Net Other Financing Sources (Uses)

Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 40,081 71,487 80,384

Fund Balance - Beginning of Year, as Previously Reporte 193,515 12,545 522,669

Adjustments and Residual Equity Transfers

Fund Balance - Beginning of Year, as Restated 193,515 12,545 522,669

Fund Balance - End of Year $ 233,596 84,032 603,053

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IDEA-B TITLE II SAFE ANDDISCRETIONARY IDEA-B ESEA MATH/ DRUG FREE ADMINISTRATIVE

COMPETITIVE PRESCHOOL TITLE VI SCIENCE EVENSTART SCHOOLS POOLRevenues:

Federal Sources $ 4,805 54,088 4,593 41,212 181,274 46,303 185,165State SourcesLocal Sources

Total Revenues 4,805 54,088 4,593 41,212 181,274 46,303 185,165


Direct Instruction 446 52,589 4,399 37,725 168,681 19,500Instructional Support 66 1,875 5,343 24,537 174,263Administration 13 1,499 128 1,612 1,326 5,483Business and Support ServicesOperation and Maintenance of Plant 5,419Food ServicesAthleticsNon-Instructional SupportCommunity Services 7,250 940Student Transportation

Education, Non-Current:Debt PrincipalDebt InterestCapital Outlay

Total Expenditures 459 54,088 4,593 41,212 181,274 46,303 185,165

Revenues Over (Under) Expenditures 4,346

Other Financing Sources (Uses):Bond ProceedsRefund to Grantor (4,346)Lease Purchase Payments

Net Other Financing Sources (Uses) (4,346)

Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses

Fund Balance - Beginning of Year, as Previously Reported


Fund Balance - Beginning of Year, as Restated

Fund Balance - End of Year $

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TECHNOLOGY COMPREHENSIVE CLASS TITLE VLITERACY SCHOOL REFORM SIZE VOCATIONAL READING INNOVATION

CHALLENGE DEMONSTRATION REDUCTION EDUCATION EXCELLENCE STRATEGIESRevenues:

Federal Sources $ 29,009 (86) 46,791 146,905 434,025 37,492State SourcesLocal Sources

Total Revenues 29,009 (86) 46,791 146,905 434,025 37,492


Direct Instruction 28,205 45,494 146,905 15,473 36,456Instructional Support (86) 77,823Administration 804 1,297 10,851 1,036Business and Support ServicesOperation and Maintenance of PlantFood ServicesAthleticsNon-Instructional SupportCommunity Services 282,146Student Transportation


Total Expenditures 29,009 (86) 46,791 146,905 386,293 37,492

Revenues Over (Under) Expenditures 47,732



Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses



Fund Balance - Beginning of Year, as Restated


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TITLE VII IHS/ NORTHERNRURAL/ INDIAN NAVAJO

TITLE II-A TITLE IV LOW INCOME TOPS EDUCATION MEDICAL CENTERRevenues:

Federal Sources $ 578,237 51,520 154,779 23 1,172,170 101,254State SourcesLocal Sources

Total Revenues 578,237 51,520 154,779 23 1,172,170 101,254


Direct Instruction 535,061 5,247 150,368 889,442Instructional Support 4,830 39,576 95,375 100,870Administration 16,023 1,409 4,411 32,807Business and Support ServicesOperation and Maintenance of Plant 1,284 600Food ServicesAthleticsNon-Instructional SupportCommunity Services 5,288 153,946 384Student Transportation


Total Expenditures 578,237 51,520 154,779 1,172,170 101,254

Revenues Over (Under) Expenditures 23



Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses 23



Fund Balance - Beginning of Year, as Restated (23)


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PL 81-874 MEDICAL ASSISTANCE NAVAJOJOHNSON STAR IMPACT AID- NM PAYMENTS NATIONO'MALLEY SCHOOLS SPECIAL EDUCATION GRADS (MEDICAID) GRANTS

Revenues:Federal Sources $ 470,541 50,874 851,021 16,824 45,606 244,110State SourcesLocal Sources

Total Revenues 470,541 50,874 851,021 16,824 45,606 244,110


Direct Instruction 311,918 25,298 37,528Instructional Support 464,236 43,412 486,822 454,462 120,750Administration 13,058 1,236 23,188Business and Support ServicesOperation and Maintenance of Plant 4,733 2,140 4,800Food ServicesAthleticsNon-Instructional SupportCommunity Services 21,833 3,005 6,069Student Transportation 5,481 6,113


Total Expenditures 487,508 46,788 854,674 28,303 454,462 164,347

Revenues Over (Under) Expenditures (16,967) 4,086 (3,653) (11,479) (408,856) 79,763



Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses (16,967) 4,086 (3,653) (11,479) (408,856) 79,763

Fund Balance - Beginning of Year, as Previously Reported 1,799,537 292,148 87,296


Fund Balance - Beginning of Year, as Restated 1,799,537 292,148 87,296

Fund Balance - End of Year $ (16,967) 4,086 1,795,884 (11,479) (116,708) 167,059

84




SMALLER PROJECTS LITERACYETIP LEARNING WITH THROUGH INTEL LANL MERIDIAN

PROJECT COMMUNITIES INDUSTRY LIBRARIES GRANT FOUNDATION OILRevenues:

Federal Sources $ (5,537) 23,902 88,613 184,167State SourcesLocal Sources

Total Revenues (5,537) 23,902 88,613 184,167


Direct Instruction 8,002Instructional Support 72,790 23,240 77,009 179,064Administration 2,062 662 3,602 5,103Business and Support ServicesOperation and Maintenance of PlantFood ServicesAthleticsNon-Instructional SupportCommunity ServicesStudent Transportation


Total Expenditures 74,852 23,902 88,613 184,167

Revenues Over (Under) Expenditures (80,389)



Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses (80,389)

Fund Balance - Beginning of Year, as Previously Reported 44,291 1 813

Adjustments and Residual Equity Transfers (1) 1,351

Fund Balance - Beginning of Year, as Restated 44,291 813 1,351

Fund Balance - End of Year $ (36,098) 813 1,351

85A



Fund Fund Fund Fund Fund Fund25123 25137 25162 25330 25335 25338PNM TOYOTA EASTERN CENTER FOR

FOUNDATION, TIME BURLINGTON NEW MEXICO CYFD TEACHINGINC. GRANT GRANT UNIVERSITY GRANT PRESCHOOL EXCELLENCE

Revenues:Federal Sources $State Sources 89,998Local Sources 3,889 14,080

Total Revenues 3,889 14,080 89,998


Direct Instruction 1,714 4,297 7,506 101,475Instructional SupportAdministrationBusiness and Support ServicesOperation and Maintenance of PlantFood ServicesAthleticsNon-Instructional SupportCommunity ServicesStudent Transportation


Total Expenditures 1,714 4,297 7,506 101,475

Revenues Over (Under) Expenditures 2,175 (4,297) 6,574 (11,477)



Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses 2,175 (4,297) 6,574 (11,477)

Fund Balance - Beginning of Year, as Previously Reported 5,757 1,715 3 (2,309) 3,871

Adjustments and Residual Equity Transfers (1,351) (3)

Fund Balance - Beginning of Year, as Restated 5,757 364 (2,309) 3,871

Fund Balance - End of Year $ 2,175 1,460 6,938 (13,786) 3,871

85B




TANIF - AFTER TECHNOLOGY INCENTIVES PRIVATE NON-SCHOOL FOR FOR SCHOOL TEACHER DIRECT MAJOR

CHILD CARE EDUCATION IMPROVEMENTS GEAR UP MENTORING GRANTS TOTALSRevenues:

Federal Sources $ 9,193,292State Sources 91,000 126,837 46,000 65,207 5,000 424,042Local Sources 742,704

Total Revenues 91,000 126,837 46,000 65,207 5,000 10,360,038


Direct Instruction 20,999 72,954 11,523 4,027 811 6,050,946Instructional Support 9,792 2,787,171Administration 3,723 2,914 9,689 263,648Business and Support Services 68,654 68,654Operation and Maintenance of Plant 361,779Food ServicesAthletics 117,645Non-Instructional Support 75,116Community Services 181,216 115,128 526 931,588Student Transportation 33,346


Total Expenditures 184,939 102,359 72,954 136,340 4,027 1,337 10,728,417

Revenues Over (Under) Expenditures (93,939) 24,478 (26,954) (71,133) (4,027) 3,663 (368,379)



Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses (93,939) 24,478 (26,954) (71,133) (4,027) 3,663 (420,457)

Fund Balance - Beginning of Year, as Previously Reported 109,920 (1,653) 22,806 227,061 3,402 3,323,388


Fund Balance - Beginning of Year, as Restated 109,920 (1,653) 22,806 227,061 3,402 3,323,361

Fund Balance - End of Year $ 15,981 22,825 (4,148) 155,928 (4,027) 7,065 2,902,904

85C


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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources:

Rents $ 375,000 375,000 375,905 - 905Investment Income 1,500 1,500 2,865 - 1,365

Total Revenues 376,500 376,500 378,770 - 2,270


Operation and Maintenance of Plant 548,514 548,514 339,066 - 209,448


Budgetary Notation-Cash Appropriated from Prior Year $ 172,014 172,014


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, 2003

Actual(Budgetary

Basis)





Fees - Activities $ 132,000 141,429 183,300 9,429 41,871Insurance/Individual Recoveries - - 4,594 - 4,594Interest 250 250 846 - 596

Total Revenues 132,250 141,679 188,740 9,429 47,061


Athletics 134,321 156,295 113,617 (21,974) 42,678

Revenues Over (Under) Expenditures (2,071) (14,616) 75,123 (12,545) 89,739



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, 2003

Actual(Budgetary

Basis)





Fees - Activities $ 55,000 55,000 51,857 - (3,143)Fees - Users 71,000 71,000 95,589 - 24,589Interest 5,000 5,000 6,927 - 1,927

Total Revenues 131,000 131,000 154,373 - 23,373


Non-Instructional Support 570,927 570,927 78,048 - 492,879




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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 2,983,385 3,161,487 2,413,481 178,102 (748,006)


Direct Instruction 2,224,598 2,516,228 2,066,384 (291,630) 449,844Instructional Support 313,018 257,017 205,760 56,001 51,257Administration 83,488 87,756 69,707 (4,268) 18,049Operation and Maintenance of Plant 13,500 14,316 3,678 (816) 10,638Athletics - 370 - (370) 370Community Services 230,506 175,579 105,808 54,927 69,771Student Transportation 118,275 61,352 21,752 56,923 39,600

Education, Non-Current:Capital Outlay - 48,869 42,485 (48,869) 6,384 Total Expenditures 2,983,385 3,161,487 2,515,574 (178,102) 645,913

Revenues Over (Under) Expenditures $ - - (102,093) - (102,093)


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24103 - ESEA TITLE I MIGRANTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 22,500 22,500 12,437 - (10,063)


Direct Instruction 22,500 22,500 7,917 - 14,583



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24105 - ESEA TITLE I PROGRAM IMPROVEMENTSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 230,000 196,000 279,570 (34,000) 83,570


Direct Instruction 74,860 101,084 75,883 (26,224) 25,201Instructional Support 14,000 14,000 11,823 - 2,177Administration 4,684 5,432 5,432 (748) - Community Services 75,484 75,484 48,107 - 27,377Student Transportation 60,972 - - 60,972 -

Total Expenditures 230,000 196,000 141,245 34,000 54,755



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 1,667,790 1,701,512 1,268,490 33,722 (433,022)


Direct Instruction 1,481,012 1,513,800 1,162,275 (32,788) 351,525Instructional Support 143,139 143,139 111,212 - 31,927Administration 43,639 44,573 44,573 (934) -

Total Expenditures 1,667,790 1,701,512 1,318,060 (33,722) 383,452



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 9,008 9,008 9,000 - (8)


Direct Instruction - 8,990 446 (8,990) 8,544Administration 9,008 18 13 8,990 5

Total Expenditures 9,008 9,008 459 - 8,549

Revenues Over (Under) Expenditures - - 8,541 - 8,541

Other Financing Sources (Uses):Refund to Grantor - - (4,346) - (4,346)

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses $ - - 4,195 - 4,195


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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 88,665 119,182 30,000 30,517 (89,182)


Direct Instruction 81,432 111,684 52,589 (30,252) 59,095Instructional Support 4,195 4,195 - - 4,195Administration 3,038 3,303 1,499 (265) 1,804

Total Expenditures 88,665 119,182 54,088 (30,517) 65,094



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24112 - ESEA TITLE VISTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)






Direct Instruction 41,037 4,399 4,399 36,638 - Instructional Support - 66 66 (66) - Administration 1,285 128 128 1,157 -

Total Expenditures 42,322 4,593 4,593 37,729 -



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24113 - EDUCATION FOR HOMELESS CHILDREN AND YOUTHSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 22,590 2,590 - (20,000) (2,590)


Direct Instruction 22,590 2,590 595 20,000 1,995

Revenues Over (Under) Expenditures $ - - (595) - (595)


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24115 - TITLE II MATH/SCIENCESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 556,310 58,246 14,086 (498,064) (44,160)


Direct Instruction 518,324 54,759 39,769 463,565 14,990Instructional Support 15,000 1,875 1,875 13,125 - Administration 19,986 1,612 1,612 18,374 - Operation and Maintenance of Plant 3,000 - - 3,000 -

Total Expenditures 556,310 58,246 43,256 498,064 14,990



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24119 - CARL PERKINS VOCATIONAL EDUCATIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 44,105 44,105 47,624 - 3,519


Direct Instruction 44,105 44,105 - - 44,105



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 4,000 201,739 203,478 197,739 1,739


Direct Instruction 4,000 187,450 168,682 (183,450) 18,768Instructional Support - 5,512 5,342 (5,512) 170Operation and Maintenance of Plant - 8,777 7,250 (8,777) 1,527




STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24128 - SAFE AND DRUG FREE SCHOOLSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)






Direct Instruction 37,723 19,500 19,500 18,223 - Instructional Support 53,146 26,078 26,078 27,068 - Administration 2,782 1,326 1,326 1,456 - Community Services 16,907 940 940 15,967 -

Total Expenditures 110,558 47,844 47,844 62,714 -



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24130 - ADMINISTRATIVE POOLSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)






Instructional Support 5,647 183,344 172,264 (177,697) 11,080Administration - 5,483 5,483 (5,483) - Operation and Maintenance of Plant - 9,035 5,405 (9,035) 3,630


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


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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 99,190 16,650 99,190 (82,540)


Direct Instruction - 96,760 28,205 (96,760) 68,555Administration - 2,430 804 (2,430) 1,626

Total Expenditures - 99,190 29,009 (99,190) 70,181



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 7,121 7,121 10,000 - 2,879


Instructional Support 7,121 7,121 - - 7,121



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24137- CLASS SIZE REDUCTIONSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 46,791 - 46,791 (46,791)


Direct Instruction - 45,494 45,494 (45,494) - Administration - 1,297 1,297 (1,297) -

Total Expenditures - 46,791 46,791 (46,791) -



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 153,977 153,942 76,362 (35) (77,580)


Direct Instruction 153,977 153,942 146,905 35 7,037



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24147 - READING EXCELLENCESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 236,044 423,887 - 187,843 (423,887)


Direct Instruction 15,000 30,578 23,362 (15,578) 7,216Instructional Support 82,845 100,000 77,824 (17,155) 22,176Administration 6,348 10,851 10,851 (4,503) - Community Services 131,851 282,458 282,458 (150,607) -


Revenues Over (Under) Expenditures - - (394,495) - (394,495)

Other Financing Sources (Uses):Refund to Grantor - - (47,732) - (47,732)

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses $ - - (442,227) - (442,227)


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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 37,492 37,572 37,492 80




Revenues Over (Under) Expenditures $ - - 80 - 80


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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 36,624 - 36,624 (36,624)


Direct Instruction - 35,609 - (35,609) 35,609Administration - 1,015 - (1,015) 1,015

Total Expenditures - 36,624 - (36,624) 36,624



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, 2003

Actual(Budgetary

Basis)






Direct Instruction - 597,688 535,060 (597,688) 62,628Instructional Support - 15,000 4,831 (15,000) 10,169Administration - 18,487 16,023 (18,487) 2,464Operations and Maintenance of Plant - 3,000 1,284 (3,000) 1,716

Education, Non-Current:Capital Outlay - 33,000 21,039 (33,000) 11,961




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, 2003

Actual(Budgetary

Basis)






Direct Instruction - 26,241 3,922 (26,241) 22,319Instructional Support - 46,146 39,296 (46,146) 6,850Administration - 2,224 1,409 (2,224) 815Community Services - 5,680 5,288 (5,680) 392




STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24160 - RURAL/LOW INCOMESTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 154,779 154,779 154,779 -






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, 2003

Actual(Budgetary

Basis)






Direct Instruction - 118,487 - (118,487) 118,487Administration - 5,130 - (5,130) 5,130Community Services - 56,383 - (56,383) 56,383

Total Expenditures - 180,000 - (180,000) 180,000



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 291,476 1,536,511 400,000 1,245,035 (1,136,511)


Direct Instruction 77,956 1,006,269 884,619 (928,313) 121,650Instructional Support 84,600 315,778 95,368 (231,178) 220,410Administration 7,920 50,974 32,807 (43,054) 18,167Operation and Maintenance of Plant 3,000 5,000 600 (2,000) 4,400Community Services 118,000 156,240 153,946 (38,240) 2,294Student Transportation - 2,250 - (2,250) 2,250

Total Expenditures 291,476 1,536,511 1,167,340 (1,245,035) 369,171



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, 2003

Actual(Budgetary

Basis)






Instructional Support 128,250 135,484 100,559 (7,234) 34,925Community Services 500 500 384 - 116




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, 2003

Actual(Budgetary

Basis)






Instructional Support 64,899 582,409 463,751 (517,510) 118,658Administration 1,794 17,238 13,058 (15,444) 4,180Operation and Maintenance of Plant - 9,795 5,527 (9,795) 4,268Student Transportation - 9,000 5,481 (9,000) 3,519




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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ - 2,000 2,000 2,000 -

Expenditures:Education, Current: -

Direct Instruction - 2,000 - (2,000) 2,000



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, 2003

Actual(Budgetary

Basis)






Instructional Support - 73,457 43,413 (73,457) 30,044Administration - 5,892 1,236 (5,892) 4,656Operation and Maintenance of Plant - 4,200 2,140 (4,200) 2,060




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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 808,970 1,470,815 851,021 661,845 (619,794)


Direct Instruction 125,526 728,021 311,918 (602,495) 416,103Instructional Support 480,520 580,021 484,856 (99,501) 95,165Administration 20,134 40,353 23,188 (20,219) 17,165Operation and Maintenance of Plant 5,000 5,000 4,800 - 200Athletics 72,370 - - 72,370 - Community Services 43,660 43,660 20,477 - 23,183Student Transportation 11,760 11,760 4,528 - 7,232

Education, Non-Current:Capital Outlay 50,000 62,000 - (12,000) 62,000

Total Expenditures 808,970 1,470,815 849,767 (661,845) 621,048



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources 2,005 31,324 14,500 29,319 (16,824)


Direct Instruction 2,005 25,324 25,298 (23,319) 26Community Services - 6,000 3,005 (6,000) 2,995




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, 2003

Actual(Budgetary

Basis)






Instructional Support 86,211 505,515 479,188 (419,304) 26,327



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, 2003

Actual(Budgetary

Basis)






Direct Instruction 15,361 49,156 37,529 (33,795) 11,627Instructional Support 148,779 189,690 120,750 (40,911) 68,940Administration - 2,468 - (2,468) 2,468Operation and Maintenance of Plant 56,938 - - 56,938 - Community Services 11,280 11,243 6,068 37 5,175




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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 21,069 96,190 100,803 75,121 4,613


Instructional Support 20,007 94,128 73,590 (74,121) 20,538Administration 1,062 2,062 2,062 (1,000) -




STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24317 - SMALLER LEARNING COMMUNITIESSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - 50,000 25,000 50,000 (25,000)


Instructional Support - 48,614 23,240 (48,614) 25,374Administration - 1,386 662 (1,386) 724




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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - 237,351 95,000 237,351 (142,351)


Direct Instruction - 74,003 8,002 (74,003) 66,001Instructional Support - 147,095 77,009 (147,095) 70,086Administration - 16,253 3,602 (16,253) 12,651




STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 24335 - LITERACY THROUGH LIBRARIESSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)






Direct Instruction - 22,109 - (22,109) 22,109Instructional Support - 214,802 179,064 (214,802) 35,738Administration - 6,761 5,103 (6,761) 1,658




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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - 3,889 3,889 3,889 -


Direct Instruction - 3,889 1,714 (3,889) 2,175



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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - 5,757 - 5,757 (5,757)





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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - 14,444 14,080 14,444 (364)





STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25335 - CYFD - PRE+A2300SCHOOLSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ 99,975 101,475 89,678 1,500 (11,797)


Direct Instruction 99,975 101,475 101,475 (1,500) -



STATE OF NEW MEXICOCENTRAL 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, 2003

Actual(Budgetary

Basis)






Administration 1,118 3,723 3,723 (2,605) - Community Services 46,682 181,391 181,391 (134,709) -

Total Expenditures 47,800 185,114 185,114 (137,314) -



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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ 138,909 138,909 127,872 - (11,037)


Direct Instruction 33,541 33,541 23,035 - 10,506Instructional Support 33,497 33,497 11,219 - 22,278Administration 3,860 3,860 2,914 - 946Business and Support Services 68,011 68,011 67,982 - 29

Total Expenditures 138,909 138,909 105,150 - 33,759



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, 2003

Actual(Budgetary

Basis)






Direct Instruction 8,918 160,474 72,954 (151,556) 87,520



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, 2003

Actual(Budgetary

Basis)






Direct Instruction 19,981 19,981 10,723 - 9,258Instructional Support 115 115 - - 115Administration - 14,720 9,689 (14,720) 5,031Community Services - 249,584 110,385 (249,584) 139,199




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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ 56,113 22,243 - (33,870) (22,243)


Direct Instruction 56,113 22,243 4,027 33,870 18,216

-



STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 25502 - PIRVATE DIRECT GRANTSSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ - 7,500 5,000 7,500 (2,500)


Direct Instruction - 6,000 811 (6,000) 5,189Community Services - 1,500 526 (1,500) 974




NON-MAJOR CAPITAL PROJECTS FUNDS 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. Special Capital Outlay – Local (31300) – To account for District-wide school building improvement projects. Funding has been provided by recoveries on insurance policy claims. Special Capital Outlay – State (31400) – To account for District-wide building improvement projects funded by the State. 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. 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.

136

STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 NON-MAJOR CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET As of June 30, 2003

Fund Fund Fund Fund31400 31700 31800 32100

SPECIAL CAPITAL PUBLIC SCHOOL NON-CAPITAL IMPROVEMENTS ENERGY CAPITAL MAJOR

OUTLAY - STATE SB-9 EFFICIENCY ACT OUTLAY - 20% TOTALS

ASSETS

Assets:Cash and Investments $ 540,134 1,671,892 2,212,026Receivables 119,717 75,786 3,796 199,299Due from Other FundsInventory

Total Assets $ 119,717 615,920 1,675,688 2,411,325


Liabilities:Bank Overdraft $ 450,901 450,901Accounts Payable 13,403 10,009 14,373 37,785Accrued Salaries and BenefitsAccrued Compensated AbsencesDue to Other Funds 3,155 3,155Deferred Revenue

Total Liabilities 464,304 10,009 3,155 14,373 491,841


Year's Expenditures 609,980 1,986,029 2,596,009Unreserved - Undesignated (344,587) (4,069) (3,155) (324,714) (676,525)

Total Fund Balance (344,587) 605,911 (3,155) 1,661,315 1,919,484

Total Liabilities and Fund Balance $ 119,717 615,920 1,675,688 2,411,325


$

$

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22NON-MAJOR CAPITAL PROJECTS FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESFor the Year Ended June 30, 2003

Fund Fund Fund Fund Fund31300 31400 31700 31800 32100

SPECIAL CAPITAL SPECIAL CAPITAL CAPITAL ENERGY PUBLIC SCHOOL NON-OUTLAY - OUTLAY - IMPROVEMENTS EFFICIENCY CAPITAL MAJOR

LOCAL STATE SB-9 ACT OUTLAY - 20% TOTALS

Revenues:Federal Sources 3,451,313 3,451,313State Sources 130,668 398,495 529,163Local Sources 10,155 1,216,441 81,218 1,307,814

Total Revenues 10,155 130,668 1,216,441 398,495 3,532,531 5,288,290


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

Education, Non-Current:Debt PrincipalDebt InterestCapital Outlay 475,255 1,217,234 46,133 3,315,431 5,054,053

Total Expenditures 475,255 1,217,234 46,133 3,315,431 5,054,053

Revenues Over (Under) Expenditures 10,155 (344,587) (793) 352,362 217,100 234,237

Other Financing Sources (Uses):Bond ProceedsRefund to GrantorLease Purchase Payments (355,135) (355,135)

Net Other Financing Sources (Uses) (355,135) (355,135)

Revenues and Other Financing Sources Over(Under) Expenditures and Other Financing Uses 10,155 (344,587) (793) (2,773) 217,100 (120,898)

Fund Balance - Beginning of Year, as Previously Reported (10,155) 606,704 (382) 1,444,215 2,040,382


Fund Balance - Beginning of Year, as Restated (10,155) 606,704 (382) 1,444,215 2,040,382

Fund Balance - End of Year (344,587) 605,911 (3,155) 1,661,315 1,919,484


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22FUND 31300 - SPECIAL CAPITAL OUTLAY - LOCALSTATEMENT OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL (NON-GAAP BASIS)For the Year Ended June 30, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ - - 10,155 - 10,155


Capital Outlay - - - - -



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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ - 1,472,149 10,952 1,472,149 (1,461,197)


Capital Outlay 200,000 1,672,149 461,853 (1,472,149) 1,210,296

Revenues Over (Under) Expenditures (200,000) (200,000) (450,901) - (250,901)



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, 2003

Actual(Budgetary

Basis)




Revenues:Local Sources $ 1,211,542 1,211,542 1,141,765 - (69,777)State Sources - 101,753 - 101,753 (101,753)

Total Revenues 1,211,542 1,313,295 1,141,765 101,753 (171,530)


Capital Outlay 1,912,005 1,953,581 1,243,911 (41,576) 709,670

Revenues Over (Under) Expenditures (700,463) (640,286) (102,146) 60,177 538,140



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, 2003

Actual(Budgetary

Basis)




Revenues:State Sources $ 398,501 398,501 398,495 - (6)


Capital Outlay 493,447 494,298 46,133 (851) 448,165

Revenues Over (Under) Expenditures (94,946) (95,797) 352,362 (851) 448,159

Other Financing Sources (Uses):Lease Purchase Payments:

Principal - - (292,340) - (292,340)Interest - - (62,795) - (62,795)

- - (355,135) - (355,135)

Revenues and Other FinancingSources Over (Under) Expendituresand Other Financing Uses (94,946) (95,797) (2,773) (851) 93,024



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, 2003

Actual(Budgetary

Basis)




Revenues:Federal Sources $ 3,209,053 3,209,053 3,451,313 - 242,260Local Sources 70,710 70,710 70,591 - (119)

Total Revenues 3,279,763 3,279,763 3,521,904 - 242,141


Capital Outlay 4,457,077 4,725,244 3,302,453 (268,167) 1,422,791

Revenues Over (Under) Expenditures (1,177,314) (1,445,481) 219,451 (268,167) 1,664,932



STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FIDUCIARY FUNDS For the Year Ended June 30, 2003 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.

144

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, 2003

Balance BalanceJuly 1, 2002 Additions Deletions June 30, 2003

Assets

Cash and Investments $ 314,621 757,400 693,575 378,446

Liabilities

Deposits Held for Others $ 314,621 757,400 693,575 378,446


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 SCHEDULE OF CHANGES IN DEPOSITS HELD FOR OTHERS - ALL AGENCY FUNDS For the Year Ended June 30, 2003

Balance BalanceJuly 1, 2002 Additions Deletions June 30, 2003

Central Activity - District $ 30,639 27,720 37,462 20,897 Kirtland Central High School 82,136 203,652 186,667 99,121 Kirtland Middle School 43,440 87,011 92,127 38,324 Kirtland Elementary School 8,146 27,645 26,716 9,075 Grace B. Wilson Elementary School 26,174 38,281 30,331 34,124 Ruth N. Bond Elementary School 8,143 15,634 11,762 12,015 Ojo Amarillo Elementary School 2,045 4,460 3,835 2,670 Shiprock High School 36,160 180,903 131,913 85,150 Career Prep High School 5,391 12,226 12,661 4,956 Tse Bit Ai Middle School 3,480 33,892 24,682 12,690 Mesa Elementary School 2,517 13,145 14,851 811 Nataani Nez Elementary School 9,301 19,313 18,908 9,706 Nizhoni Elementary School 4,383 6,961 5,771 5,573 Eva B. Stokely Elementary School 7,179 13,208 11,936 8,451 Newcomb High School 4,653 51,457 52,889 3,221 Newcomb Middle School 8,093 27,807 22,471 13,429 Newcomb Elementary School 13,191 9,873 7,035 16,029 Naschitti Elementary School 3,417 6,028 7,241 2,204

$ 298,488 779,216 699,258 378,446

SEE INDEPENDENT AUDITOR'S REPORTS The Accompanying Notes Are An Integral Part Of These Statements 146

Grantor/Program or Cluster Title Number Expenditures

Major Programs:U. S. Department of Education Direct Grants:

Impact Aid:

Passed through New Mexico State Department of Education:

IDEA - B Preschool 84.173 54,088Reading Excellence

U. S. Department of Health & Human Services Direct Grant:Medical Assistance Payments (Medicaid)

Non-Major Programs:U. S. Department of Education

Passed through New Mexico State Department of Education:

U. S. Department of Education Direct Grants:Indian Education Formula Grant 84.060 1,167,340Navajo Nation Grants 84.XXX 164,347Technology Innovation Challenge Grants 84.303A 75,652

Total Department of Education Non-major Programs 5,736,236

STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended June 30, 2003

FederalFederal Grantor/Pass-Through CFDA Federal

P L 874 General 84.041 $ 13,805,253P L 874 Special Education 84.041 849,767P L 874 Indian Add-on 84.041 4,154,975P L 874 Capital Outlay 84.041 3,231,862

IDEA - B Entitlement 84.027 1,318,060IDEA - B Discretionary Competitive 84.027 459

84.338 394,495

Total Department of Education Major Programs 23,808,959

93.778 479,188

Total Major Programs 24,288,147

ESEA Title I Migrant 84.011 7,917ESEA Title I Program Improvement 84.213 141,245Class Size Reduction 84.340 46,791ESEA Title I 84.010 2,515,574Evenstart 84.314 181,274ESEA Title VI 84.298 37,492Education for Homeless Children & Youth 84.196 595ESEA - Title II 84.281 43,256Star Schools 84.203 46,789Carl Perkins 84.048 146,905Technology Literacy Challenge 84.318X 29,009Safe & Drug Free Schools and Communities 84.186A 49,915Title IV Drug Free Schools & Communities 84.1860 47,844Title VI IASA 84.1510 4,593Rural and Low Income Schools 84.358 154,779Teacher Principal Training and Recruiting 84367A 578,237Smaller Learning Communities 84.215 23,902Projects with Industry 84-234 88,613Literacy Through Libraries 84-364 184,167


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFor the Year Ended June 30, 2003

FederalCFDA Federal

Number ExpendituresNon-Major Programs:

U. S. Department of Health & Human Services Indirect GrantsPassed through New Mexico State Department of Education:

IHS/Navajo Nation Medical Center 93.228 100,943NM Grads 93.590D 28,303

Total Department of Health & Human Services Indirect Grants 129,246

Non-Major Programs:U. S. Department of Agriculture - Passed Through New Mexico

Passed Through New Mexico Department of Education:National School Lunch 10.553 1,877,386National School Breakfast 10.553 458,907

Passed Through New Mexico Department of Human Services:Food Donation 10.550 204,893

Total Department of Agriculture 2,541,186

U.S. Department of Interior - Bureau of Indian Affairs Direct Grant:Johnson O' Malley 15.130 487,817

Total Expenditures of Federal Awards $ 33,182,632

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, 2003 and ispresented on the modified cash 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 $204,893.

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, 2003

Security CUSIP Market MaturitySecurity Description Number Number Value Date

Wells Fargo Bank:Fannie Mae Mortgage Backed Security 323605 31374TNW5 $ 4,982,192 03-01-2029Ginnie Mae Mortgage Backed Security 781259 36225BMGO 416,966 03-15-2031Ginnie Mae Mortgage Backed Security 781278 36225BM39 5,412,066 04-15-2031Ginnie Mae Mortgage Backed Security 781316 36225BM95 14,418,719 07-15-2031

$ 25,229,943

These securities are held at the Federal Reserve Bank in Kansas City.


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22CASH RECONCILIATIONFor the Year Ended June 30, 2003

Instructional FoodOperational Teacherage Transportation Materials Services Athletics

Audited Cash and Investments, June 30, 2002 $ 4,042,961 195,110 98,423 (213,324) 148,847 12,545Adjustment to Beginning Cash Balance

Adjusted, Audited Cash Balance June 30, 2002 4,042,961 195,110 98,423 (213,324) 148,847 12,545

Add:2002-2003 Revenues 40,252,397 379,165 2,891,158 580,108 2,596,620 189,132Prior Year Checks Voided 12,928 938Loans from Other FundsTransfer 8 96,179

Total Cash Available 44,308,294 575,213 2,989,581 462,963 2,745,467 201,677

Less:2002-2003 Expenditures 40,513,192 339,066 2,603,032 350,755 2,431,567 113,617Loans to Other FundsRefunds to Grantor Transfers 3,155

Cash, June 30, 2003 $ 3,791,947 236,147 386,549 112,208 313,900 88,060

,



Public SpecialFederal Local Bond School Capital

Non-Instructional Projects and State Building Capital Outlay Outlay-Local

Audited Cash and Investments, June 30, 2002 $ 523,501 10,783,328 358,077 395,121 114,024 (10,155)Adjustment to Beginning Cash Balance

Adjusted, Audited Cash Balance June 30, 2002 523,501 10,783,328 358,077 395,121 114,024 (10,155)

Add:2002-2003 Revenues 157,601 12,414,385 442,727 5,804,515 997,355 21,106Prior Year Checks Voided Loans from Other FundsTransfer 204

Total Cash Available 681,102 23,197,917 800,804 6,199,636 1,111,379 10,951

Less:2002-2003 Expenditures 78,049 13,787,483 614,372 516,321 1,404,282 461,852Loans to Other FundsRefunds to Grantor 43,560 4Transfers

Cash, June 30, 2003 $ 603,053 9,366,874 186,428 5,683,315 (292,903) (450,901)



Special Capital Public SchoolCapital Improvements Energy Capital Debt

Outlay-Federal SB-9 Efficiency Outlay - 20% Service Total

Audited Cash and Investments, June 30, 2002 $ 859,124 640,286 95,797 1,445,481 3,989,711 23,478,857Adjustment to Beginning Cash Balance

Adjusted, Audited Cash Balance June 30, 2002 859,124 640,286 95,797 1,445,481 3,989,711 23,478,857

Add:2002-2003 Revenues 3,625,123 1,143,759 398,495 3,528,863 4,373,357 79,795,866Prior Year Checks Voided 13,866Loans from Other FundsTransfer 3,155 99,546

Total Cash Available 4,484,247 1,784,045 497,447 4,974,344 8,363,068 103,388,135

Less: 2002-2003 Expenditures 3,880,378 1,243,911 401,268 3,302,452 4,745,390 76,786,987Loans to Other Funds Refunds to Grantor 43,564Transfers 96,179 99,334

Cash, June 30, 2003 $ 603,869 540,134 - 1,671,892 3,617,678 26,458,250


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 JOINT POWERS AGREEMENTS June 30, 2003 COLLABORATIVE LITERACY INTERVENTION PROJECT REGIONAL TRAINING SITE AGREEMENT 2002-2003 Participants: Between Tempe School District #3 of Maricopa County and Central Consolidated School District No. 22 Responsible Party: Tempe School District #3 Description: Central Consolidated School District No. 22 agrees to pay salary and

benefits of a Collaborative Literacy Intervention Project (CLIP) trainer certified by Tempe School District #3

Pay $100 annual site fee Purchase CLIP kit books Provide an approved behind the glass training facility Provide time for CLIP trainers to meet responsibilities Period: 5/22/02 thru indefinite Project Cost: Undetermined District Contribution: Undetermined Audit Responsibility: Central Consolidated School District No. 22

SEE INDEPENDENT AUDITOR’S REPORTS 153 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, 2003 EDUCATION TECHNOLOGY IMPROVEMENT PLAN (ETIP) SUBCONTRACT AGREEMENT Participants: Gallup-McKinley County Schools (GMCS) on behalf of Navajo Education Technology Consortium (NETC) collectively referred to as (NETC-GMCS) and Central Consolidated School District No. 22 (CCSD). Responsible Parties: CCSD and GMCS Description: CCSD shall provide the necessary personnel, services, equipment, and facilities to ensure all appropriate participating teams attend summer training as scheduled. ETIP teams provide 30-40 hours training related to technology integration in the classroom. Provide a training facility that is equipped with at least 20 workstations and internet access. Period: 10/1/02 thru 9/30/03 Project Cost: NETC-GMCS shall reimburse CCSD for direct and indirect costs not to exceed $39,620. District Contribution: Personnel and facilities to be reimbursed. Audit responsibility: CCSD


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 JOINT POWERS AGREEMENTS June 30, 2003 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


STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 JOINT POWERS AGREEMENTS June 30, 2003 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


STATE OF NEW MEXICOCENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22BANK DEPOSITORIESJune 30, 2003

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, 2003. Accounts were held at WellsFargo Bank.

Act. Balance Deposits Outstanding BalanceAccount Name Type Per Bank In Transit Checks Adjustments Per Books

Wells Fargo Bank: Fiduciary Accounts: Central Activity 1 $ 15,400 - 17,621 - $ (2,221) Investment 2 380,667 - - - 380,667 Total 396,067 - 17,621 - 378,446

District Accounts: Operational 1 1,149,876 (288) 3,719,796 10,000 (2,560,208) Athletic 1 1,618 8,859 477 (10,000) - Investment 2 19,018,458 - - - 19,018,458 Total 20,169,952 8,571 3,720,273 - 16,458,250

Total Wells Fargo Bank $ 20,566,019 8,571 3,737,894 - $ 16,836,696

New Mexico State Treasurer 3 $ 10,000,000 - - - $ 10,000,000

Account Type

1-Checking 2-Money Market Account 3-State Pool Investment



INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL

CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Domingo Martinez, CGFM, State Auditor Randy J. Manning, Board President Members of The Board of Education Central Consolidated School District No. 22 Kirtland, New Mexico We have audited the accompanying general purpose financial statements and the combining, individual fund and account group financial statements of Central Consolidated School District No. 22, Kirtland, New Mexico (the “District”) as of and for the year ended June 30, 2003, and have issued our report thereon dated November 7, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. ComplianceAs part of obtaining reasonable assurance about whether the District’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance that is required to be reported under Government Auditing Standards disclosed in the accompanying schedule of findings and questioned costs as item 03-05 Timeliness of Audit Report.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely

158

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, continued

affect the District’s ability to record, process, summarize and report financial data consistent with the assertions of management in the general purpose financial statements. Reportable conditions are described in the accompanying Findings and Questioned Costs section as the following items.

03-02 Medicaid Billing Procedures 03-03 Special Education Expenditures

03-04 Storage of Commodities A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe that none of the reportable conditions described above is a material weakness. This report is intended solely for the information and use of the Board of Education, the New Mexico State Auditor, management, and federal awarding agencies and pass through entities and is not intended to be, and should not be, used by anyone other than these specified parties. ________________________________ Albuquerque, New Mexico November 7, 2003

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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Domingo Martinez, CGFM, State Auditor Randy J. Manning, Board President Members of The Board of Education Central Consolidated School District No. 22 Kirtland, New Mexico ComplianceWe have audited the compliance of Central Consolidated School District No. 22, Kirtland, New Mexico (the “District”) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2003. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the District’s management. Our responsibility is to express an opinion on the District’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the District’s compliance with those requirements. In our opinion, Central Consolidated School District No. 22 complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2003.

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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133, continued Internal Control Over ComplianceThe management of the District is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the District’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect the District’s ability to administer a major federal program in accordance with the applicable requirements of laws, regulations, contracts, and grants. Reportable conditions are described in the accompanying schedule of findings and questioned costs as items:

03-02 Medicaid Billing Procedures 03-03 Special Education Expenditures

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe that none of the reportable conditions described above is a material weakness This report is intended solely for the information and use of the Board of Education, the New Mexico State Auditor, management, and federal awarding agencies and pass through entities and is not intended to be, and should not be, used by anyone other than these specified parties. _______________________________ Albuquerque, New Mexico November 7, 2003

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOLS DISTRICT NO. 22 SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003

SECTION I - SUMMARY OF AUDITOR’S RESULTS Financial Statements: 1. Type of auditor’s 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 84.173 84.338 93.778

Dollar threshold used to distinguish between Type A and Type B programs

Auditee qualified as low-risk Auditee

Unqualified

No

Yes

No

No

Yes

Unqualified

No

Name of Federal Program or ClusterImpact Aid

IDEA – B Cluster IDEA – B Preschool Reading Excellence

Medicaid

$ 300,000

Yes

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 PRIOR YEAR FINDINGS STATUS 01-01 Storage of Commodities Modified 01-19 Timeliness of Audit Report Modified 02-01 Disallowed Activities Resolved 02-02 Grant Monitoring Resolved 02-03 Cash Management Resolved 02-04 Transportation & Bus Maintenance Records Resolved 02-05 Investments in Prohibited Investments Resolved CURRENT YEAR FINDINGS FINANCIAL REPORT – INTERNAL CONTROL 03-01 Classification of Bus Drivers’ Salaries FINANCIAL REPORT – COMPLIANCE 03-05 Timeliness of Audit Report FEDERAL AWARDS – INTERNAL CONTROL 03-02 Medicaid Billing Procedures 03-03 Special Education Expenditures 03-04 Storage of Commodities

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 03-01 CLASSIFICATION OF BUS DRIVERS’ SALARIES Statement of Condition: The District employs bus drivers for the transportation of students for to and from school and for school sponsored activities. The classification of salaries paid, in some cases, has been posted in accounts designed for use by non-employee contractors in the District books of record. Criteria: The New Mexico Department of Education has standardized the chart of accounts to be used by the State’s school districts. The accounts to be used for charges for employees are distinct from the accounts used for charges for contract laborers. Effect: The District books of record are not being maintained as they were designed by the New Mexico Department of Education. Furthermore, comparability between this District and other State Districts is compromised. Cause: The specific expenses were classified in order to facilitate reimbursement from another funding source. Recommendation: The charges for salaries of bus drivers should be classified consistently as the chart of accounts was originally designed. Response: The District will classify salary expenses to their correct accounts. In the above situation, a clerk had coded the account number from the purchase order designed to reimburse transportation for the bus driver’s salary. The clerk was unaware that charging the salary directly to the account number designated for reimbursement would affect the financial statements. District personnel have been instructed to only charge salary items to designated salary accounts as designed by the New Mexico Department of Education.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 03-02 MEDICAID BILLING PROCEDURES CFDA # 93.778 Questioned Costs - None Statement of Condition: The District is a provider of Medicaid services to students in the District. In order to receive payment for the services provided, the District has contracted with a company to assist them in submitting bills to the New Mexico Medical Assistance Division (hereafter “MAD”). The documentation for the services provided during a period is submitted to the contractor and they submit it to MAD in the required form. However, no District personnel check to be sure the information submitted by the contractor is consistent with information submitted to the contractor by the District. Criteria: In order for the District to control the information contained in the periodic billings to MAD they must be aware of what is submitted. Effect: The District is unaware if they are being compensated by MAD for the full amount to which they are entitled. Cause: Unknown Recommendation: A methodology should be developed by the District to assure that the information submitted to MAD by the contractor is accurate and complete. Response: The District has developed a reconciliation form that will be used to track billings to receipts. Discrepancies between billings and payments will be tracked, identified, and recorded on the reconciliation form. The Business Office will verify that these reconciliations are being performed as requested.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 03-03 SPECIAL EDUCATION EXPENDITURES CFDA # 84.041 Questioned Costs - $2,211 Total Program Expenditures - $849,767 Statement of Condition: Purchases were made by the District and charged to the PL 81-874 Impact Aid – Special Education Fund. However, in two cases it could not be established that the expenditures were for the benefit of the Special Education Program. Criteria: In order for an expenditure to be charged to the PL 81 – 874 Impact Aid – Special Education Fund, it must be permitted under the terms of the grant. The expenditures in question did not appear to fall under the scope of the grant agreement. Effect: The expenditures for supplies under the grant may have been overstated. Cause: School principals select the classification of the expenditures for their specific schools. The principals were most likely trying to expend their budgeted allotment of special education funds without seriously considering the appropriateness of the charge under the terms of the grant. The Central Business Office did not scrutinize the classification done by the principal. Recommendation: Expenditures charged to special education should clearly fall within the scope of the grant application. Response: School administrators and staff will be reminded to correctly classify expenditures. Administrators will be reminded to request budget transfers of their site budget when expenditures are not in alignment with the designated program codes.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 03-04 STORAGE OF COMMODITIES CFDA # 10.550 Questioned Costs - None Statement of Condition: The District receives food (commodities) from the U.S. Department of Agriculture. Federal regulations require the commodities be maintained in controlled settings and at set temperatures in order to preserve quality. The various schools in the District are sites where the commodities are stored. Each school maintains logs that document the temperatures of the areas where the commodities are stored. The temperature information documented on those logs is suspect. For example, at one school the freezer temperatures are the same for every day of any given month but the following month they abruptly change and stay at the new level for the entire month. Then the temperature changes again the next month. Furthermore, the space for the initials of the manager is not signed in script, but rater filled in by typed initials Criteria: Care should be taken in maintaining the temperature logs. The data should be accurately entered and attested to by the cafeteria manager. Effect: The data maintained by the District is not reliable. Cause: Unknown Recommendation: More care should be taken with the storage, and the associated documentation, of the foods received under the U.S. Department of Agriculture Commodities Program. Response: The District will increase oversight in this area. The manager will conduct training regarding commodity storage requirements and the proper maintenance of those records.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2003 03-05 TIMELINESS OF AUDIT REPORT Statement of Condition: The New Mexico State Auditor required the audit to be completed and submitted to his office by November 15, 2003. The report is past due. Criteria: Governmental entities, agencies, and committees review the reports and prefer to do so in a timely manner. Effect: The report has not been submitted as required by the State Auditor. Cause: This is the first year GASB 34 has been applied to the District’s annual report. Additional time was necessary to prepare the report. Recommendation: The Independent Auditor should comply with the State Auditor's delivery due date. Response: The District has developed additional methods to obtain the information necessary for GASB 34 reporting and is now familiar with the reporting requirements. With the experience obtained this year, the District believes that the timeliness of the report will no longer be an issue considering how close it came to completing the report on time in the current year.

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STATE OF NEW MEXICO CENTRAL CONSOLIDATED SCHOOL DISTRICT NO. 22 EXIT CONFERENCE For the Year Ended June 30, 2003 An exit conference was held on November 14, 2003. In attendance were the following:

Representing Central Consolidated School District No. 22:

Gary Ray CCSD School Board Vice-President Dr. Linda Besett Superintendent Byron Manning Executive Director of Finance

Gary Martinez Controller Kathy Hamilton Accounting Supervisor

Representing Gary E. Gaylord, Ltd.:

Wm. Larry Lanphere, CPA Auditor

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