CAFR 2010

Union Public Schools Independent District No. 9 Tulsa, Oklahoma 74133 Girls’ Softball 2010 State Champions & Girls’ Softball 2010 State Academic Champions

Comprehensive C omprehensive Annual Financial Report For the fiscal year ended June 30, 2010

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Union Public Schools Independent District #9 Tulsa, Oklahoma

Comprehensive Annual Financial Report For the fiscal year ended June 30, 2010

Prepared by: Department of Finance Debra J. Jacoby, CPA Chief Financial Officer/Treasurer Catherine L. Smart, CPA Director of Financial Reporting/Treasury Gail L. Easterling, CPA Director of Accounting

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COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2010 Page INTRODUCTORY SECTION Transmittal Letter and District Profile.................................................................................. 1-18 ASBO Certificate of Excellence...............................................................................................19 GFOA Certificate of Achievement...........................................................................................20 School Officials.........................................................................................................................21 Organizational Chart................................................................................................................22

Basic Financial Statements Governmentwide Financial Statements Statement of Net Assets......................................................................................................37 Statement of Activities................................................................................................. .38-39 Fund Financial Statements Balance Sheets - Governmental Funds...............................................................................41 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds..........................................................................42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities...................43 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - (Budgetary Basis) - Budgeted Governmental Fund Types - General Fund..................................................................44 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - (Budgetary Basis) Budgeted Governmental Fund Types - Building Fund.................................................45 Statement of Net Assets - Proprietary Funds......................................................................46 Statement of Revenues, Expenses, and Changes in Fund Assets - Proprietary Funds...................................................................................47 Statement of Cash Flows - Proprietary Funds....................................................................48 Statement of Net Assets - Fiduciary Funds.........................................................................49 Statement of Changes in Net Assets - Fiduciary Funds.....................................................50 Notes to the Financial Statements............................................................................................ 51-68 Required Supplemental Information:

Schedule of Funding Progress for Other Post Employment Benefits.......................................69

Union Public Schools 5 Table of Contents

FINANCIAL SECTION Independent Auditor’s Report.................................................................................................. 23-24 Management’s Discussion and Analysis.................................................................................... 25-36

COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2010

Union Public Schools 5 Table of Contents (Cont.)

Page FINANCIAL SECTION (Cont.)

Combining Schedules: Combining Balance Sheet - Nonmajor Governmental Funds.................................................71 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds..........................................................72 Combining Statement of Changes in Assets and Liabilities - Agency Funds...........................73 Capital Assets Used in the Operation of Governmental Funds: Comparative Schedules By Source...........................................................................................75 Schedule by Function and Activity...........................................................................................76 Schedule of Changes by Function and Activity........................................................................77 STATISTICAL SECTION Net Assets by Component...............................................................................................................81 Changes in Net Assets............................................................................................................... 82-83 Fund Balances of Governmental Funds.........................................................................................84 Changes in Fund Balances of Governmental Funds................................................................ 85-86 Assessed and Estimated Actual Value of Taxable Property............................................................87 Direct and Overlapping Property Tax Rates..................................................................................88 Principal Property Taxpayers..........................................................................................................89 Property Tax Levies and Collections..............................................................................................90 Ratio of Outstanding Debt by Type...............................................................................................91 Ratios of Net General Bonded Debt Outstanding.........................................................................92 Direct and Overlapping Governmental Activities Debt.................................................................93 Legal Debt Margin..........................................................................................................................94 Demographic and Economic Statistics..................................................................................... 95-96 Tulsa Area Principal Employers......................................................................................................97 Capital Assets by Function and Activity.........................................................................................99 Employee Information..................................................................................................................100 Operating Statistics.......................................................................................................................101 Support Services Statistics.............................................................................................................102 School Building Information................................................................................................ 103-105 Insurance Schedule...................................................................................................................... 106

Union Public Schools

Independent District #9

To the Patrons of Union Public Schools: The Comprehensive Annual Financial Report of Union Public Schools, Independent District #9 (the “District”) for the fiscal year ended June 30, 2010, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the District.

All disclosures necessary to enable the reader to gain an understanding of the District’s financial activities have been included.

This letter of transmittal is designed to complement Management’s Discussion and Analysis and should be read in conjunction with it.

Union Public Schools Management’s Discussion and Analysis can be found immediately after the report of the independent auditor, page 23.

The report includes all current funds of the District. The services provided include education of preschool through adults with primary emphasis on PK-12.

Education Service Center l 8506 E. 61st Street l Tulsa, OK 74133-1926 l (918) 357-4321 l Fax (918) 357-6017 website: www.unionps.org 1

Union Public Schools 5 Letter of Transmittal

December 4, 2010

1 Introduction 2

Each year the district has an impressive number of National Merit Scholars, and its graduating classes receive millions of dollars in scholarship offers to colleges and universities throughout the country. Approximately 92 percent of the 2010 graduating class pursued post-secondary education.

Union Public Schools 5 District Profile

Union Public Schools, Independent District #9, Tulsa County, is a premiere Oklahoma school district “ahead of the curve” on college and career readiness and expanded avenues for individual student success.

The Union community provides whatever it takes to ensure students thrive. Successful bond issues have funded state-of-the-art tools to enhance reading, language, math, science, and writing skills at every grade level. Art, music, and physical education enrich the traditional curriculum. Professionals in remedial reading, speech therapy, and special education are assigned to the schools along with library media specialists, nurses, and counselors. Courses for gifted students are offered at all levels, as are programs for English Language Learners.

Its approximately 15,000 students, Pre-K through 12th grade, reside within a 28-square-mile boundary encompassing both southeast Tulsa and a portion of Broken Arrow. The school system is the heart of the community and serves as a unifying force. It includes an early childhood center for three-year-olds; 13 elementary schools Pre-K through 5th grade; and five secondary schools---a 6th/7th Grade Center, 8th Grade Center, Intermediate High for grades 9 & 10, High School for 11th & 12th, and an Alternative School.

In addition to challenging Pre-Advanced Placement classes, Union offers a variety of AP classes which allow students to earn college credit while learning about a subject in greater depth and developing study and analytical skills that are important to success in college. In partnership with Tulsa Community College, Union was one of the first to pilot a unique concurrent enrollment program on its High School campus, enabling qualifying students to earn both high school and college credits at the same time--virtually tuition free! The Union Collegiate Academy also provides students exposure to college and career opportunities through a partnership with area universities and Tulsa Technology Center.

Our Mission It is our Mission to provide our community of learners with educational opportunities to acquire and develop the best possible academic, vocational, recreational, social and participatory skills, enabling them to become valued, contributing members of a changing global society.

Parents choose the Union district for its all-around excellence. They take great pride in its wide-ranging dynamic academic programs; award-winning activities; caring teachers; highly respected elected and administrative leaders; and remarkable facilities. Union is one of the leading districts in Oklahoma in the number of teachers earning national certification. Its “Character Counts!” program is a statewide model, and its three community elementary schools--complete with health care clinics and community agency services-are among the best in the country.

Our Goals l Academic

excellence for all students of students for positive citizenship l A positive educational environment in which students, parents, community, and staff assume responsibility for their role in the learning process l District excellence for all employees l Expanded opportunities for learning l Increased use of technology l Enhanced Union pride l Support base to include patrons, partnerships, and community resources l Long-term plan to accommodate growth l Preparation

When Union was founded in 1919, it combined four small, rural communities - Boles, McCollough, Mayo, and Alsuma - and had only four students in its graduating class. Today it is the eighth largest district in Oklahoma. Union’s strong sense of tradition and pride is underscored in its theme, “Working to Form a More Perfect Union.”

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1 Operational Statistics 2

ported the functions of purchasing, contract review, supervision of distribution services, and employee safety programs.

Transportation

Union Multipurpose Activity Center Four employees at the Union Multipurpose Activity Center coordinated UMAC events and facility rental. The number of events held at the UMAC during 2009-2010 totaled 1,001 with an average of 19 events per week. The UMAC also houses the U-Wear store which markets Union spirit wear and items, the Fine Arts Department, the Athletics Department, and an in-house video production studio.

Child Nutrition With 130 employees, the child nutrition department served 589,604 breakfasts and 1,365,467 lunches during the 2009-2010 school year. In addition, 45,292 adult lunches and 2,328 adult breakfasts were served along with 37,975 breakfasts and 34,069 lunches for early childhood and 183,241 after-school snacks.

Meals were also served during the summer months for summer school. There were 14,751 breakfasts and 17,864 lunches provided during summer.

Construction/Facilities The district maintains over 2.7-million square feet of facilities, including thirteen elementary schools (pre-kindergarten to fifth grade), an Early Childhood Education Center (three-year-olds), a Sixth/Seventh Grade Center, an Eighth Grade Center, an Intermediate High School (ninth and tenth grades), an Alternative School serving seventh through twelfth grades, a High School (eleventh and twelfth grades), the Union Multipurpose Activity Center, the district warehouse, transportation, and operations buildings, and an Education Service Center.

Maintenance/Facilities Services Maintenance services had 14 employees who processed 8,030 work orders annually ranging from electrical, telecommunications, mechanical, building electronics, hardware, carpentry, and preventive maintenance.

Facility services’ employees kept an average of 32.7 acres of school property manicured; set up and cleaned for more than 157 major events; and processed 131 work orders requiring 12,773 hours to complete.

During the 2009-2010 school year the district was engaged in several construction and site improvement projects. The new Softball/Baseball Indoor Practice Facility and field improvements were completed. The indoor practice facility houses several batting nets, a weight room, locker rooms, offices, and an artificial turf infield. The indoor facility is approximately 26,026 square feet.

Custodial services had 154 employees with 92 night custodians who maintained an average of 30,000 square feet of building space. Employees receive hands-on safety practice training. Eleven different languages were spoken, and Spanish and English language classes were offered as was a Building Engineer certification class.

The Union Performing Arts Center was given a $1.3-million-dollar facelift during an extensive remodel. New chairs, lighting, flooring, and additional equipment needed for the many performances held at the PAC were installed. The PAC remodel also included many needed upgrades to the Studio Theatre at the High School.

The Maintenance Department included 15 employees who maintained 5,110 equipment pieces districtwide; have completed 2,222 work orders thru October and supported 920 man hours throughout the district above their normal work process.

Changes to Grove Elementary began with the completion of Phase I of an extensive remodel of the school. Phase II of the project is currently under way and should be completed by August of 2011. Grove Elementary students will be welcomed by a new and bigger dining and kitchen area in the cafeteria, new

The Purchasing and Supply Management Department is a department within the Support Services Division. The department consists of the Director of Purchasing & Supply Management and three full-time employees at the Education Service Center. These employees sup3

Union Public Schools 5 District Profile (Continued)

The district’s Distribution Center, under the supervision of the Purchasing and Supply Management Department, serves as the central receiving point, supply distribution hub, daily intra-district mail service, and records management for the district.

The Distribution Center had eight employees who provided daily mail service, child nutrition food and supply warehousing and delivery, as well as general receiving and distribution services.

A pproximately 9,654 students were eligible for transportation each day on the district’s 95 buses.

Union’s buses drove more than 840,055 miles in 2009-2010. The district’s total cost for fuel was $400,569.

Union Public Schools 5 District Profile (Continued)

Construction/Facilities (Cont.)

Student Statistics

restrooms, new and larger classrooms, a new secured entry, parking and a new bus loop, and a new front office area and vestibule. The gymnasium will be doubled in size.

Growth continued during the 2009-2010 school year, with a 2.4 percent increase over the previous year.

Union served 15,015 students – 7,207 at the elementary level and 7,808 in grades 6-12; 7,722 were male and 7,293 were female. In terms of ethnic origin, 9.6 percent were Native American, 20.1 percent were Hispanic, 15 percent were African American, 7.0 percent were Asian, and 48.2 percent were Caucasian.

The Eighth Grade Center received a complete upgrade to the gymnasium and locker areas. A new wood floor was installed in the gym along with new bleachers. The locker rooms were completely upgraded including new or refurbished lockers, new restrooms, and larger equipment rooms. In addition to having class and holding practices at the 8th Grade Center, we will now be able to host events such as volleyball and basketball games.

There were 4,414 first through twelfth grade students, 29 percent, enrolled in Union’s gifted and talented program.

Ten percent or 1,492 of our students were enrolled in special education.

Finishing touches were being done in the summer of 2010 to complete the Tuttle Stadium Turf Replacement. The project involved removing the old turf, the existing concrete slab, and the large dirt crown under the slab. New drainage and sub-base was installed prior to the installation of the new turf. Despite weather delays, the project was completed prior to the 2010 football season.

In 2009-2010, approximately 3,136 students throughout the district were bilingual or lived in a home where a language other than English was spoken. The total bilingual count included 38 different languages.

More than 31.7 percent of our students reported that they lived with just one of their biological parents – 4,212 (28 percent) lived with their mothers and 569 (3.7 percent) with their fathers.

Other projects for the year including items from the 2010 bond issue included the 8th Grade Center cooling tower replacement, improvements to the drainage and playing surface at Central Park at Union, swimming pool scoreboard replacement at the 6th/7th Grade Center, classroom cabinet replacement at Roy Clark Elementary, replacement of the exterior main waterline at the High School, resurfacing and re-striping of the Cedar Ridge Elementary parking lot, and an upgrade to the security cameras and doors at several sites.

The total number of homeless children enrolled during the 2009-2010 school year was 836, up from 739 the previous year, and 22 students were listed as selfsupporting.

There were 851 students (grades K-5) enrolled in Union’s Extended Day Program - 175 attended the morning program, 235 attended the afternoon program, and 441 students attended both. The EDP Summer Camp was held at Moore Elementary offering weekly themes over an eight-week period.

Weekly camp attendance averaged 150.

In addition to the ongoing and completed projects, Union began planning for construction of the Union Collegiate Academy wing which will be built on the High School campus.

The facility will be a three-story addition to the High School and will encompass approximately 117,000 square feet. Included in the project is adequate space for collegiate/career advisement and research centers, three lecture/conference halls with one designed to handle groups of up to three hundred people, new classrooms, kitchen and serving area renovation, and a state-of-the-art science area. The High School will begin serving tenth graders in the fall of 2012. Phase I, budgeted at $12 million, was approved by Union voters as part of the 2010 Bond Issue. Phase II will be voted on in 2011 and is projected to have an approximate budget of $16.3 million. The entire project is scheduled to be completed for the opening of school in August of 2012.

During 2009-2010, High School and Intermediate High students earned 1,326 high school credit hours in Advanced Placement (AP) courses and 2,707 in Pre-AP courses.

More than 12,000 Union students were involved in at least one arts class, including 6,925 elementary students who took both art and music. At the secondary level (grades 6-12) 802 were in band; 578 in orchestra; 909 in vocal music; 600 in drama; 60 in competitive speech; and 2,588 in a wide variety of visual arts disciplines.

During 2009-2010, 1,625 students in grades K-12 participated on 167 teams in the Intramural sports program. Additionally, over 402 Union parents participated as coaches, volunteers and coordinators, volunteering more than 13,000 hours. More than 3,400 practices and 680 games were scheduled in Union facilities, mostly on Saturday mornings.

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Student Statistics (Cont.)

Competition in July and was the top winner from the USA. The 12-person company, F.A.B. (Future Associates of Business), produced and sold 1,405 hair bows.

Their net profit was $1551.13, and $1,241 of that was donated to the Autism Center of Tulsa. Each stockholder received 20 percent of the net profit.

Selected to the 2010 All-OMEA Orchestra were Brynne Kurtz, sophomore violinist; Ian Jett, junior violinist; Joshua Maddux, junior violinist; and Arden Zhan, senior violinist.

The High School’s top business students participated in the Business Professionals of America 2010 National Leadership Conference, “Shoot for Success,” in Anaheim, California. Paige Reiter, Kayla Statham, Andrew Dockery, Kevin Yang, and Alex Sweet joined more than 5,000 other conference delegates to participate in skills competitions, workshops, general sessions, and the national officer candidate campaigns and elections.

During the regular school year, 387 first, 483 second, and 458 third graders were eligible to participate in the Reading Sufficiency Act program.

Secondary Achievement (Grades 6-12)

Three 2010 seniors - McKenzie Garcia, Cole Burke, and Cory Hill - received $500 scholarships from the Johnson O’Malley Office out of 16 awarded in the state. Carmel Blumenberg and David Tanner received the Tulsa Indian Chamber of Commerce Distinguished Senior award.

National Merit Semifinalists were seniors Alexander Bell, Chloe Winden, Kyle Shaw, Lana Bible, Michael Daggett, and Christopher Hardebeck.

Advancing to Finalist were Bell, Winden, Shaw, Daggett, and Hardebeck.

Commended Students were Taylor Alspaugh, Hannah Carr, Soojeong Kim, Nathan Nelson, Helen Synn, and Arden Zhan.

Union’s Air Force JROTC was selected as one of 90 units to receive the 2009-2010 Air Force Junior ROTC Distinguished Unit Award. The award recognizes Air Force Junior ROTC units that have performed above and beyond normal expectations, and that have distinguished themselves through outstanding service to their school and community while meeting the Air Force Junior ROTC mission of producing better citizens for America.

Representing the top 1 percent of their class, the 2010 valedictorians were Zachary Barton, Kelsey Beaird, Alexander Bell, Michael Daggett, David Ede, Allison Eldridge, Laura Kalb, Sarah Khan, Audrie Kraemer, Meredith Nelson, Alexandra Pond, and Chloe Winden. 2010 salutatorians, the top 2 percent, were Skylar Anderson, Morgan Bayouth, Joseph Elias, Rafael Lemus, Shelby Martin, Kaylie Mueller, Patrick Paul, Leann Riley, Caroline Smallwood, and Arden Zhan.

For its exemplary record of leadership, service, and activities that serve to improve the school and community, Union High School was awarded a 2010 National Gold Council of Excellence Award by the National Association of Student Councils. Close to 140 high schools were named National Councils of Excellence, but Union was one of only 118 nationwide to receive the highly esteemed honor of being named a National Gold Council of Excellence

Seniors Scott Jones and Chloe Winden were named Mr. and Miss Union, the highest honor a Union student may receive in the district.

Seniors of the Year were Morgan Gamarra and Luke Snider.

PTA Council Scholarship recipients were Kaycie Brown, Cole Burke, DeAnn Davis, Kevin Davis, McKenzie Garcia, Amanda Haberman, Sarah Harrison, Scott Jones, Laura Kalb, Brian Mathis, Adrienne Palmer, Adam Payton, Teresa Ruedy, Tristin Stauder, and Garrett Stege.

Alternative students scored among the highest on End of Instruction (EOI) tests of any of the 250 alternative schools in Oklahoma for the past three years. The Alternative School has been designated as an exemplary program for each of the last 12 years, which means that other alternative programs look to Union for leadership and inspiration.

Union’s Junior Achievement company through the Union Collegiate Academy was one of twenty finalists for the North American JA Company of the Year 5

Union Public Schools 5 District Profile (Continued)

Elementary summer school was held at Boevers, Briarglen, Jefferson, McAuliffe, and Rosa Parks. Thanks to federal and state grant funds, classes were offered free of charge. In summer school, there were 395 first and second grade students enrolled under the Reading Sufficiency Act (RSA); 192 third grade students enrolled in RSA Academy; 75 first through fifth grade students under the Native American grant; and 883 first through fifth grade students under Title I. In addition, there were 100 kindergarten students who chose to participate in Jarman tuition-paid classes offered in June and July.

Secondary Achievement (Cont.)

well as awards for Outstanding Snare Drum Section, Outstanding Tenor Drum Section, and Outstanding Front Ensemble.

Union Public Schools 5 District Profile (Continued)

Juniors Carlos Lopez, Leah Gray, Sarah Daggett, and Kayla Statham were four of the five winners of the Arts and Humanities Council essay contest. Each received a $1,000 check and attended an awards dinner with Mayor Bartlett and local arts notables.

The Regiment competed against more than 45 bands from around the country at the Bands of America Super Regional Marching Band Contest in St. Louis.

They earned a third-place finish in class, and fourth place in both preliminary and final rounds of the competition. It was the strongest competitive showing for the Union Band at a BOA Regional Event since 2002.

For the second year in a row, a Union student placed first in the Sutton Award Art Show and Competition.

Senior Jongwon Lim’s piece, “Under One Sky,” was one of three tied for first place. He received a cash award of $1,750.

The marching band participated in the annual Citrus Bowl Parade in Orlando, Florida. The parade capped a successful competitive season for the marching band and its program, entitled The Ritual. Union placed second at the Oklahoma Bandmasters Association 6A Marching Championships with a performance score of 90.40, one of the highest scores it has received this decade.

The Road to Bataan, a documentary about the annual Bataan Memorial March at White Sands New Mexico each spring, ran the board at the Script to Screen Film Festival. The film, featuring Union Air Force Junior Reserve Officer Training Corp (AFJROTC) cadets, took honors for best feature-length documentary, viewer’s choice for best poster, and the festival’s top award as best in show.

Junior Hillary Holt and senior Brittany Brown were chosen as members of the 2009-2010 State Superintendent’s Student Advisory Council.

The Varsity Winter Guard won sixth place at the WGI World Championships in Dayton, Ohio, - the highest placement for the Union guard since 2001. Out of 120 competing units from around the nation, they advanced through all rounds, making it into the finals, where only the top 15 units advance. Union, the only Oklahoma unit to compete, finished sixth in the country with a score of 93.4.

Audiences were enthralled with Union’s production of Disney’s Beauty and the Beast. All the little girls wanted to be Beauty, played by Kelsey Griswold, while the Beast, played by Scott Jones, transfixed everyone. Alex Enterline entertained as pompous Gaston, and the entire cast wowed with intricate dance numbers, singing, and even high-wire acts that helped characters fly through the air. This year’s sold-out production celebrated 35 consecutive years of outstanding musicals at Union.

Sophomore Ty Pfeiffer was the winner of one of two outstanding Princeton Awards given for sophomores in the Tulsa County area. Nominations were based on class standing, involvement in school or community activities, strength of character and leadership qualities, creativity and imagination.

Sophomore Evan Forbes took second place in Financial Math and Analysis at the annual BPA Spring Leadership Conference and was awarded a $4,000 scholarship to Oklahoma City University.

The Renegade Regiment earned First Place in both preliminary and final rounds at the Broken Arrow Invitational Marching Competition. Competing against more than 20 high school bands from the Tulsa area and the region (Oklahoma, Arkansas, Kansas, and Missouri), they also earned honors as the Class AAAA Champion, Outstanding Visual Performance in Preliminaries, Outstanding Visual Performance in Finals, and Outstanding General Effect in Finals.

Eighth grader Rachel McAllister won first place in the annual Desk and Derrick Club of Tulsa essay contest. The 8th Grade Center had 16 finalists out of 554 essays judged. The contest encourages students to develop reading and researching skills while learning about important energy-related topics.

Union’s 8th graders were big winners in the National Sertoma Essay Contest sponsored by the Southside Sertoma Club. First place winner of $100 was Chloe Zoellner, second place of $75 went to Shane Jones, and third place of $50 to Madeline Turner.

The Marching Percussion Ensemble competed at the Cross Timbers Marching Percussion Invitational Contest at East Central University in Ada. Worldrenowned adjudicators evaluated the students’ performance and awarded them First Place in their class, as 6

Secondary Achievement (Cont.)

Honorable Mention awards of $25 were earned by Anna Beffer, Bradley Gleason, Megan Lee, and Lauryn Tumpkin. Over 150 area students wrote essays explaining why integrity is important in our democracy.

The 7th Grade Competition Choir earned a Superior rating and received an Outstanding Achievement trophy, a Judge’s Choice trophy, and the Sweepstakes trophy at the Heartland Music Fest.

Seventh grader Sean Shepherd won first place at the Novice Nationals wrestling tournament.

Rosa Parks students were winners in the Shapedown “Move More, Eat Better!” poster contest sponsored by St. Francis Hospital. Fourth graders Guillermo Aguinaga won $100 in gift certificates and Sela Krafzig received honorable mention. In ODOT’s “Turn Around Don’t Drown” poster contest, fifth graders Madison Clark won $100 and Briceyda Zamora was honorable mention. Their artwork was featured in calendars published by each group.

Elementary Achievement Andersen third grader Faith Wilson won the Broken Arrow Fire Department’s Fire Prevention Poster Contest and got to ride to school in a fire truck.

Boevers fourth grader Michiah McQuarters participated in a national karate tournament in Minneapolis, Minnesota. Michiah took first place in the 8-9 year old division and was ranked #1 in the nation for the NASKA Association.

Three Union students won Awards of Excellence in the annual Oklahoma PTA Reflections contest. Aaron Parrott (Moore) won an Award of Excellence in Literature in the Intermediate Division; Allison Leger (Andersen) won an Award of Excellence in Dance in the Primary Division; and Erin May (Jarman) won an Award of Excellence in Music Composition in the Intermediate Division.

Boevers third grader Sarah Gagnon-Allen won a poster contest from the Realtors Association along with $100 dollars and $50 for a class party.

Boevers pre-K student Jayden Alexander won third place for his division at the Novice Nationals wrestling tournament.

Union Intermediate and High School Athletic Achievement

Boevers fourth grader Jacy Hubartt’s dance group won first place in the FOX23 ‘So You Think You Can Dance’ contest on TV for their routine, “Little Shop of Horrors.”

Union won the 6A state baseball championship against Owasso 10-9 in an instant classic witnessed by the largest crowd (6,954) ever to see a 6A baseball title contest. The Redskins bashed their way to the sixth state baseball crown in school history, their third in six years.

Clark fourth grader Maximo Cuesta was one of the winners in the All About Kids Calendar contest.

His picture about healthy teeth was featured in the calendar.

Darnaby fifth grader Stone Gesser won second place in his age group for the Oklahoma Trash Poster Contest.

His artwork was judged as a part of 11,000 entries. He received a $150 cash prize, attended a banquet at the Oklahoma Department of Transportation, and was introduced in the House of Representatives in Oklahoma City.

The much-anticipated Class 6A championship football game turned into a Redskins rout with a 52-19 win over Jenks for back-to-back titles. An estimated 12,000 fans braved cold conditions and watched Union claim its sixth state championship in school history. This was the 14th consecutive season that either Jenks or Union captured the Class 6A gold ball, and it was the largest blowout in the seven title showdowns between the teams.

Darnaby fourth grader Elizabeth Burks was a winner for the Tulsa Health Department Dental Healthy Smiles poster contest. Out of 244 top posters, Elizabeth’s received the October award, and her artwork was displayed in the Tulsa Health Department 2011 calendar.

Union won its fifth girls’ state track championship since 2003 — and first since 2007 — by racing to a 44 1/2-point margin of victory over runner-up Edmond 7

Union Public Schools 5 District Profile (Continued)

Four Rosa Parks students, who were active in the Global Gardens projects, were featured in a national cookbook inspired by First Lady Michelle Obama.

The book is called “A White House Garden Cookbook: Healthy Ideas from the First Family for Your Family.” Students Emma Rehn and Caitlynn Kirsh were featured in a segment about their “Fresh Clean-Feeling Minted Fruit Salad” with tips on eating herbs and accenting salads. Rehn and Kirsh used mint grown from their own garden at the school for their salad. David Pineda and Reece Campos and their Chili Corn recipe were also featured.

The Redskins captured their third straight overall crown in the Coaches Aid School of the Year competition. Union capped a highly-successful spring, including state titles in baseball, slow pitch softball and girls’ track to cruise to the crown. In addition to these, Union cashed in a runner-up effort in girls’ soccer, third place finishes in girls’ golf and boys’ track, a fourth in boys’ tennis, and a boys’ soccer semifinal showing for solid point totals to outdistance the pack.

Union Intermediate and High School Athletic Achievement (Cont.)

Union Public Schools 5 District Profile (Continued)

North. Sarah Daggett swept the 1,600 and 3,200.

Janae Johnson won the 200 and ran on gold-medalwinning 400 and 800 relay teams. Erin Patterson won the 400 and joined Johnson, Rainy Willis, and Kennedy Austin for gold on the 800 relay.

The Girls’ Slow Pitch Softball team topped power Westmoore for the 6A state title. They were also named the 2010 Class 6A Academic State Champions by the Oklahoma Secondary Schools Activities Association (OSSAA.)

Union cheer competed in the Oklahoma Cheer Coaches Competition for a four-division sweep. Varsity, a combined 9th grade and JV squad, and both 8th grade squads each won their division championships. The varsity squad performed their Nationals routine for the first time in a competition, earned the highest score of the competition, and were named Grand Champion.

Girls’ volleyball won second at state following a “match for the ages.” Fans lauded team members for their character and perseverance. 2009 selections for the Frontier Valley Conference included Player of the Year Laura Taylor and Coach of the Year Chadd McKee.

The Varsity Cheerleaders won the Universal Cheerleaders Association (UCA) National Championship at the Walt Disney World Resort in Orlando, Florida, in February beating 16 other teams in the Super Varsity division. UCA is one of the largest high school cheerleading championships in the United States.

Union wrestlers placed second at state competition, and senior Ronnie Balfour was State Champ.

Senior Omar Mata was named the 2009-2010 Gatorade Oklahoma Boys’ Soccer Player of the Year.

At the Oklahoma State Dance Team Directors Association (OSDTDA) State Dance Team Championship, the Varsity Highsteppers were state runners up in Kick and fifth in Jazz, and the 8th Grade Highsteppers were state champs in Kick and third in Jazz.

Bobby Lind was named Oklahoma Coaches Association Region 7 Male Scholar Athlete of the Year, and Luke Snider was Male Athlete of the Year.

Junior swimmer Megan Myers repeated as 6A champion in the 500 freestyle and won the 200 individual medley; she was named Player of the Week by the “Tulsa World.” Sophomore Eastman Holloway won the 200 and 500 freestyle, and sophomore Erika McGovern won the girls 100 breaststroke.

The Highsteppers competed in the Alamo Classic Competition in San Antonio bringing home 11 trophies to add to the trophy case.

Junior Caroline Andrews was fourth runner up with her solo routine; Captain Caroline Andrews, Co-Captain Jessica Neeley, and Lieutenant Morgan Black received a Sweepstakes Trophy for their Officers’ routine along with a Gussie Nell Davis Award of Excellence, Judges Award for Modern Routine, and Best Overall Precision Award. Large Ensemble (Caroline Andrews, Morgan Black, Elizabeth DeVore, Loren Donnell, Ashlee Heiliger, Taylor Henger, Carolyn Hendricks, Kennedi Jarvi, Devan Kelley, Jessica Neeley, Kailey Rose, and Ali Smith) won Best in Class (first place). The Team received a Sweepstakes Trophy, Gussie Nell Davis Award of Excellence, three Judges Award for Kick, Jazz and Modern Routines; Best Overall Choreography Award, Best Overall Presentation Award, and Second Runner Up Best in Class – considered the top winners of the contest.

Senior Jacob Rice was among the state high school baseball players who received Ferguson Jenkins Awards at the Warren Spahn Award Gala at the Oklahoma Sports Hall of Fame and Jim Thorpe Museum in Oklahoma City. The Oklahoma Coaches Association selected winners based on athletic and scholastic achievement.

Union High School was named to SI.com’s list of the top athletic programs in the country for the results of its 2008-09 athletic year. The Redskins were 10th on the list, which was topped by Honolulu’s Punahou School.

The August 20 edition of USA TODAY listed Union in its Super 25 national high school pre-season football rankings. Oklahoma’s reigning 6-A state football champions were ranked #18 in USA Today’s first poll.

Varsity Highsteppers Molly Fields and Loren Donnell and Varsity Pom member Tristin Staud8

Union Intermediate and High School Athletic Achievement (Cont.)

with at-risk students. They also toured the Rosa Parks Early Childhood Center as well as Clark to see the community school approach incorporated there. The British elementary teachers examined the multiage approach at Moore while secondary teachers observed practitioners in their individual teaching fields at the High School.

Selected as the recipient of the 2010 Brock International Prize in Education, Geoffrey Canada came to town - and Union Public Schools - to share his ideas and philosophies at an education symposium hosted by Oklahoma State University-Tulsa. Canada toured Kendall-Whittier Elementary in Tulsa and Rosa Parks Elementary in the Union district. Both are “community schools,” meaning they offer a web of support for children and their families, including health care, social services, after-school enrichment and adult education, through community partnerships. Geoffrey Canada - founder of the Harlem Children’s Zone - visited Rosa Parks Early Childhood Center and Rosa Parks Elementary during a tour to learn about Union’s community school efforts, including the Global Gardens campaign, early childhood education, and more.

The JV Pom Squad won first place in the Junior Varsity Pom and Hip-Hop Divisions at the Spirit of America Regional competition.

Union Varsity Pom took state for the sixth year in a row. They were also third runner-up for their Hip Hop routine. JV Pom was first runner-up in both Pom and Hip Hop routines. The 9th grade squad won first place (state champs) in both Hip Hop and Pom and was also named academic state champs. Eighth grade Pom received third runner up in Pom and second runner up in Hip Hop. JV Pom and 9th grade Pom took first place at the OK Pom and Dance Championship. Eighth grade Pom also competed and earned a fourth place finish.

In conjunction with the visit by Geoffrey Canada, educators participating in the OSU Brock Symposium toured Clark Elementary to learn about its community schools program. Principal Theresa Kiger and Assistant Principal Wendy Johnson took educators on a tour of the school, explaining how classes are handled differently in a community schools setting and how families and local businesses and organizations play a part in molding children. Clark has a number of afterschool programs and has an on-site clinic that provides health services to not just students but their families as well.

Teaching & Learning The district began Charting a Course for the Future with long-range plans to turn the current Intermediate High School building into a 9th Grade Center; move 10th graders to Union High School; build a senior wing at the High School to serve more Union Collegiate Academy students; and open another elementary school.

One hundred eighty, or 18.6 percent, of Union’s 967 seniors also attended classes at TCC or TTC. One hundred students signed up for Service Learning, a once a week “class” students spent at a business shadowing a professional to learn about that profession. Approximately 140 enrolled in the new Union Collegiate Academy, an on-campus daily opportunity for high-performing students to learn how to succeed in college and in various academic disciplines from OU-Tulsa, OSU-Tulsa, NSU-Broken Arrow, Tulsa Community College, and Tulsa Technology Center instructors.

Union hosted the UnionJenks Summer Institute on the Teaching of Writing.

Facilitators from Columbia University’s Teachers College led the institute for teachers in grades kindergarten through six emphasizing techniques to help teachers improve their students’ writing skills. Participants are part of a year-long collaboration between Union and Jenks, meeting monthly to share and reflect on teaching practices.

Ten British educators visited the Alternative School and other Union programs to gather innovative ideas to improve their schools. The Specialist Schools and Academies Trust in London became interested in Union’s Alternative School after they won the National Dropout Prevention’s Crystal Star Award in 2004, and this was the third group of teachers that has studied the success Union’s program has achieved

“Moving Up” – 6th Grade Orientation – was held in July at the 6th/7th Grade Center. Students enjoyed a fun-filled day designed to help them overcome the normal anxieties of going into middle school. They experienced Locker 101, Cafeteria Drill Squad, Class Changing, a building tour, and met the principals, counselors, and many teachers 9

Union Public Schools 5 District Profile (Continued)

er tried out for the OSDTDA All-State Dance squad.

Molly and Loren made the All-East Regional team and received a medal. Tristin made the All-East Regional team and All-State Dance Squad. She received a medal and danced with the AllState squad at the OSDTDA State Competition. Over 75 girls tried out for All-State and only 20 made the squad.

6th Grade Center offered an after-school program called GO Crew for 50 6th graders. GO Crew offered activities encouraging students to be fit and healthy for life. In addition to games and activities centered on physical fitness, teamwork, nutrition, and tutoring were integrated into the program.

Teaching & Learning (Cont.)

Union Public Schools 5 District Profile (Continued)

About 20 Oklahoma Middle Level Education Association (OMLEA) visitors toured the 6th/7th Grade Center to learn how Union has implemented innovative ideas such as creating smaller learning communities and providing in-school tutoring programs.

Country singer Roy Clark helped kick off a districtwide band instrument drive at his namesake school – Clark Elementary – by donating a favorite band instrument of his own. Union asked the public to donate extra band or orchestra instruments to the district to ensure that all interested students could participate in band or orchestra.

The Andersen library was open during June for students to check out books and return them by the last day of June.

The Jarman media center was also open to Jarman students on three Thursdays in June.

Boevers students received summer book bags in June - backpacks filled with books on the child’s reading level. Students were invited to return the books to the school media center and exchange them for new books when they were finished.

The Darnaby Media Center was awarded the We the People Bookshelf Collection from the National Endowment for the Humanities (NEH) and the American Library Association (ALA). Oklahoma Congressman John Sullivan presented the collection to Darnaby - one of 4,000 libraries nationwide selected to receive free hardcover editions of 17 classic books as part of the grant program.

President/CEO of YMCA of USA Neil J. Nicoll toured Clark to learn about its after-school programs.

After-school programs included fun in the gym with organized games, computer activities, and hands-on activities in the science lab.

McAuliffe Elementary joined forces with State Farm to develop the after-school “Leader in Me” program to teach students the skills necessary to solve real-world problems and inspire the students to become the leaders of tomorrow. The twice-a-week program was developed using Stephen and Sean Covey’s best selling book, 7 Habits of Highly Effective Kids! State Farm agent Matt McCoy and his associates provided the funding and mentors necessary for the success of this program.

Panda Express donated dinner for the families after the ‘graduation’ ceremony.

Clark’s before- and after-school programs included a piano lab and guitar classes. Students in the piano lab used a program called Piano Wizard, which uses a special keyboard hooked up to a laptop computer, enabling students to see the notes they were playing.

Every student in guitar classes had a guitar to practice their songs. Funding was provided by entertainer Roy Clark, the Mayor’s Mentoring Initiative, the Assistance League, and district bond money.

More than 600 Union students participated in the Safe Kids Walk This Way program at Rosa Parks Elementary as part of International Walk to School Day. The event was sponsored by Union, Safe Kids Tulsa Area, FedEx, and the Tulsa Police Department. In addition, Safe Kids conducted “walkability” checks, speed enforcement campaigns, and other activities to teach important walking safety tips.

Community Contributions A partnership with Shortline Dental helped provide dental health care to hundreds of Union students whose families could not otherwise afford it. Shortline donated $12,000 in services between August and December for all uninsured Union students.

American Fidelity Corp. and the Tulsa Talons presented Union with a $900 donation from the Touchdowns for Teachers program. The organization pledged $100 per touchdown during a Talons football game.

During QuikTrip’s Day of Caring at Rosa Parks, 85 volunteers helped out in a variety of ways making flash cards and tearing out homework pages, making games, organizing cabinets, and much more. A handful of volunteers spent center time working with Pre-K students. Global Gardens also benefited - a new fence was built, the roof was repaired on the tool shed, flower beds were cleaned out, and new frames were built so students could plant new plots.

The Partnership for the Availability of School Supplies (PASS) program distributed free school supplies to more than 24,000 Union and Tulsa students. Each set of supplies included crayons, glue, markers, pencils, paper, scissors and other items critical for learning.

Through a partnership with the YMCA of Greater Tulsa, Tulsa City-County Health Department, St. Francis Hospital, and OU Bedlam Clinic, the Union

Global Gardens was selected by the National Green Foundation to be part of a national Public Service 10

Community Contributions (Cont.)

Clark teachers Karen Graves, Pam McBride, and Angie Draper were awarded a Fund for Teachers Grant for a two-week trip to The Teachers College Reading and Writing Project at Columbia University in New York City.

Announcement sponsored by Central Garden and Pet and the Green Education Foundation to promote Green Thumb Challenge 2010. The commercial, featuring HGTV’s Paul James, was filmed at Rosa Parks.

Representatives from the Sonic Corporation visited the High School and Grove to kick off their Limeades for Learning program. Sonic teamed up with the Schusterman Family Foundation to award a $548 gift to High School teacher Cindy Johnson for her “It’s Time for Trig” game program. Grove teachers awarded Limeades for Learning grants included Melissa Fletcher, $565; Becky Hines, $435; Tiffany Bolding, $540; Amanda Steuernagel, $253; Deanna Ogez, $188; and Tammy Hallum, $354.

Clark and Jarman received grants from the Higher Education Cultural Roundtable. Clark Elementary received funds to purchase violins for their students. Jarman Enrichment Specialist Jill Fitts received funding to purchase materials for enrichment lessons for next year to promote literacy and other related activities.

Intermediate teachers Diane Monn, Deena Shelton, Teresa Hudson, and Cindy Brown attended the National Educational Computer Conference in Washington D.C.

Grove fifth grade teacher Tiffany Bolding completed an intense, seven-day immersion into early American history at the Colonial Williamsburg Teacher Institute.

Intermediate High teacher Bill Polson received a DonorsChoose Grant. He received two sets of paperback books for his classes.

Bolding also received a grant for more than $2,000 from Cox Connects Foundations. The grant allowed her to bring the “Zooming in on Science” program to Grove giving students the chance to utilize student microscopes and educational pre-made slides.

Sixth/seventh grade teachers Kara Brunk, Kris Cunnane, and Janie Evans traveled to Costa Rica to assist Ecology Project International in authentic research of sea turtle conservation. They were featured in an article in the Fund for Teachers newsletter.

Jarman principal Patti Pitcock wrote and received a music department grant for $500 from the Assistance League of Tulsa/Betty Bradstreet Fund to buy glockenspiels for music classes.

Andersen reading specialist Connie Miller attended Rangefinding and Benchmarking activities at the Pearson Headquarters located in Iowa City, Iowa.

Jarman teacher Jeanine Cory received a grant through Donors. org/Sonic. She received writing materials worth nearly $500 to implement in her curriculum.

Briarglen music teacher Sam Loney was awarded $1,000 from the Assistance League of Tulsa/Betty Bradstreet Assistance Fund to purchase equipment for the Briarglen Beat drum corps.

Jarman teacher Eloise Maupin won a DonorsChoose Grant called Forming Fabulous Fluent Readers. Word cards, vocabulary cards, reading scripts, and comprehension activities worth over $350 were included in the project.

Briarglen teachers Kristyne Salley and Leah Wiley earned a grant to attend the Teacher Institute in Early American History at Colonial Williamsburg, Virginia.

Jarman teacher Sonya Neece’s grant proposal “Mad About Map Skills” was fully funded by donorschoose. org. The project allowed Neece’s students to use clay, globes, and whiteboards to learn geography skills with variety and excitement.

Briarglen teachers Ande Arbuckle, Julie Bargas, Danielle Chapman, Kerri Gunter, Lisa Kelly, Kimberly McCoy, Donna Pippin, Sarah Price, Carrie Reese, Kristyne Salley, Carrie Soward, and Kym Tinsley received DonorsChoose grants.

McAuliffe teachers Carol Conrad and Ashley Cunningham were awarded a grant through Fund for Teachers to travel to New York City over the summer for reading and writing institutes at Columbia University.

Briarglen’s Katy Rader, Carrie Reese, and Kristyne Salley received a funding grant to attend Teacher’s College at Columbia University in New York City for Writer’s Workshop.

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Union Public Schools 5 District Profile (Continued)

Clark Language Arts Specialist Angie Draper spent her spring break in a study abroad program in Belize through OSU. Her group spent time in classrooms collaborating with local teachers and modeling different strategies like read alouds, writer’s workshop, and techniques for reading comprehension.

Community Contributions (Cont.)

The 6th/7th and 8th Grade Centers conducted a trial in embedded collaboration during 2009-2010, and elementary sites also embedded collaboration into the school day. This type of visionary leadership on the part of teachers and building principals allowed the district to see the value of adding collaboration to the school day.

Union Public Schools 5 District Profile (Continued)

Rosa Parks media specialist Gina Ward attended a conference on library services in New York City. The American Library Association, the Institute for Museum and Library Services, the National Endowment for the Humanities and THIRTEEN/WNET helped support travel and offered complimentary accommodations in New York City to seventy librarians from across the country for this unique and important opportunity.

Teachers participated in an ELL Teaching Strategies seminar which offered ways to improve students’ listening, speaking, reading, writing, and thinking skills.

These activities asked students to engage in all five of these areas using the English language.

Employee Statistics During 2009-2010, Union employed 72 administrators – 56 certified and 17 non-certified and 1,002 certified teachers. Support staff members accounted for another 818 positions, 637 full time and 181 part time. The ethnic diversity among the staff was African-American 4.9 percent; American Indian 5.2 percent, Asian 1.9 percent, Hispanic 7.5 percent, Caucasian and other 80.5 percent. Three hundred eighty- seven were male and 1,506 female.

Early childhood focused on guiding young children through their developmental stages. Pre-kindergarten teachers worked all year on strategies that would guide their developmentally appropriate practices in the classroom and put those approaches into action.

During three districtwide Professional Development days, we offered teachers over 100 different types of training opportunities to match their professional needs. Physical education teachers received certification in CPR from the American Red Cross, and elementary music teachers worked with a representative from Pearson to review their textbook materials. We offered many technology training opportunities as well, such as SMART Board and Excel training. Teachers also revised curriculum maps, developed essential skills, reviewed data from quarterly criterion-referenced tests and created common assessments on district Professional Development days.

At the end of 2009-2010, Union had 80 Nationally Board Certified teachers at 16 schools, and 37.5 percent of district teaching and administrative staff held graduate-level degrees – 377 had master’s degrees and 20 had doctorates.

Union’s Employee Clinic provided free flu shots and no- or low-cost wellness screenings for all qualifying employees at a number of Union sites in November.

Professional Development

Employee Achievement

In August, Professional Development was excited to see the new faces during New Teacher Induction. Approximately 100 teachers attended a four-day training on several different topics, such as literacy strategies for secondary teachers, Everyday Mathematics, Science Kit training, classroom management, Balanced Literacy, and technology.

Boevers kindergarten teacher Jennifer Chalker was named the 2009-2010 Union Teacher of the Year. The Site Teachers of the Year included Tyler Randall (Andersen), Kimberly Tinsley (Briarglen), Debra Lybarger (Cedar Ridge), Karen Graves (Clark), Susan Gray (Darnaby), Tiffany Bolding (Grove), Kristin Henness (Jarman), Connie Knight (Jefferson), Vickie Winden (McAuliffe), Annette Arrington (Moore), Bethany Harper (Peters), Amy Smith (Rosa Parks), Ben Wolfe (6th Grade), Scott Pennington (7th Grade), Bradley Hepner (8th Grade), Natalie Hutto (Alternative), Chris Ducker (Intermediate High), and Steve Moran (High School).

All secondary teachers completed literacy strategies training early in the year. These strategies and their supporting activities asked students to connect to prior knowledge and make meaning out of the new knowledge they acquired. Literacy training for Pre-K through 12th grade teachers is part of new teacher training every year because every teacher is a reading teacher.

Landscaping supervisor Terry Reeves was named the 2010 Support Employee of the Year for his dedication to keeping the school system grounds and its athletic fields in top shape. Reeves was recognized for his talent to landscape and beautify the baseball and softball fields. Reeves also oversees the landscaping at the Education Service Center,

Over 500 elementary and secondary teachers participated in the Pyramid Response to Intervention (PRTI) training throughout the year. The PRTI training offered examples of a systematic response to the learning challenges students face as teachers ask themselves, “What do we do when students are not learning?”

12

Employee Achievement (Cont.)

cy of the two schools in preparation for remodeling.

Support Services incorporated Green Up information gathered during an invitation-only Facilities Summit in Austin, Texas, which focused on greener products and creating healthier learning environments.

Peters Elementary, Operations, and occasionally Rosa Parks.

The other Employees of the Month represented everyone from Operations to Teaching and Learning. They included 6th/7th grade English Language Learner paraprofessional Julia Burns; Intermediate High School custodian Roy Morris; warehouseman/ bus driver Charles Newkirk; Peters special services aide Kathy Plunkett; McAuliffe receptionist Stacy Liedel; Rosa Parks Early Childhood Center building engineer Mary Najera; 6th/7th grade registrar Kay Howard; Rosa Parks building engineer Jane Morrison; senior administrative assistant Jo Ann Bodenstab; 6th/7th grade computer technician Chris Sharpe; McAuliffe child nutrition manager Jeanna Edwards; 6th/7th grade paraprofessional Tammy Deisenroth; former accounting supervisor Celia Armstrong; Operations director’s secretary Carol Wyzard; 8th grade teacher’s aide Kevin Marcum; HVAC maintenance technician Steve Stilly; Darnaby Pre-K aide Ellie Nelligan; Andersen secretary Martha Mosier; Clark child nutrition assistant manager Marla Royer; Peters receptionist Mary Jo Meziere; Andersen lead custodian Hilda Hercules; and Cedar Ridge building engineer Margaret Wagoner.

Administrative Assistant for Elementary Education Lou Ann Goleman received a Distinguished Service Award from the Cooperative Council for Oklahoma School Administration.

Tharps entered the National Soul Food Cook-Off in Oklahoma City and took first place on Pork Roast, first with Buttermilk Cornbread, second with Collard Greens, second with Carrot Cake, and second with BBQ sauce. Tharps also won honors in the National Soul Food Cook-off in Muskogee with first place on her Smoked Pork Roast, first on BBQ sauce, and third on Buttermilk Cornbread.

High School teacher Elizabeth Sonnenfeld won honorable mention for her presentation at the University of Tulsa on Evidence of Student Learning from the Gear Up math class that she taught at TU last summer. Only 14 awards out of 106 applicants were recognized.

The Certificate of Achievement for Excellence in Financial Reporting was awarded to Union by the Government Finance Officers Association of the United States and Canada for its comprehensive annual financial report. The certificate of achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.

Union Alternative teachers Harriet Chenault and Melissa Wyatt were the featured entertainers for the grand re-opening of Heller Theatre at Henthorne Park. Singer Chenault and pianist Wyatt provided an evening of music as the audience got a preview of the upcoming theater season.

Union also earned the Certificate of Excellence in Financial Reporting from the Association of School Business Officials International for the 17th consecutive year. The award is the highest recognition for a school district offered by ASBO, recognizing significant achievement in school system financial reporting.

Eighth grade math teacher Patti Evans was featured in the 2010 American Red Cross calendar. Evans teaches children to swim through the North Tulsa Learn to Swim Program, sponsored by the Hille Foundation. Last year, 1,489 individuals learned water safety skills and swimming.

Eighth grade paraprofessional Danielle Martin was named the Arthritis Hero of the 2010 Arthritis Walk.

Since launching the Green Up Campaign last year, Union students and staff have gone green with a vengeance. Everything from turning off lights to mindfully controlling thermostats helped lower energy costs. Completing the change-over to T-8 lighting at all sites was expected to cut electricity costs by about 25 percent. Another initiative was a comprehensive facilities use assessment for Boevers and Briarglen. The Honeywell Company reviewed the mechanical systems, air quality, energy efficiency, infrastructure improvements, and operational efficien-

Boevers teacher Joel Pepin was a contestant on HGTV’s Endless Yard Sale during the summer.

Joel and his team traveled in Kentucky and Tennessee to haggle for the best bargains at yard sales in those areas.

Boevers principal Sherri Fair was named an Oklahoma Association of Elementary School Principals (OAESP) District Administrator of the Year. She was 13

Union Public Schools 5 District Profile (Continued)

Union’s culinary whiz, treasury clerk Bernice Tharps, entered a number of dishes at the Tulsa State Fair and won first place on Pumpkin Pie and Cherry Jalapeno Preserves and third on Snickerdoodle Cookies and Coffee Cake. She also appeared on Channel 8’s Good Day Tulsa to talk about her winning Tulsa State Fair Hidden Valley recipe.

In the February bond election, Union voters overwhelmingly passed two bond issues totaling $22 million. Proposition I, for construction, equipment and other upgrades, received 78.9 percent of the vote.

Proposition II, for transportation upgrades, won 80 percent approval.

Employee Achievement (Cont.)

Union Public Schools 5 District Profile (Continued)

one of 11 elementary principals recognized as an administrator of the year.

Three Jarman teachers were selected for the Master Teacher Project with the State Department of Education. Jessica Smith and Kristin Henness served a second year with the project, and Kylie Walker served her first year. They led book studies and professional discussions about improving student achievement and refining the practice of teaching.

Community Service The baseball team collected baseball gloves to donate to troops overseas. Several new baseballs were sent to the troops as well.

Jarman collected blankets for the Share the Warmth campaign to be donated to homeless shelters and those in need of a warm blanket during the winter months. Jarman students also donated outgrown coats for those who do not have coats during the blustery days.

Chadd McKee (volleyball), Jim Stacy (girls’ basketball), David Lynn (swimming), and Steve Randall (softball) were selected OCA Region 7 Coaches of the Year for 2009-2010.

To help safeguard the health of football players, Union certified athletic trainer Dan Newman and Dr. Keith Stanley of Tulsa Bone & Joint Assoc. implemented ImPACT Concussion Management software to monitor signs of concussions. The state-of-the-art tool is used by the National Football League, other national sports, colleges and high schools across the country, but Union is only one of a few high schools in the area with access to it.

Union students were asked to take up Rachel’s Challenge – a pledge to start a chain reaction of kindness and compassion – as part of a nationwide campaign in memory of Rachel Scott, the first person killed at Columbine High School on April 20, 1999. The Intermediate High hosted two assemblies where students learned about Rachel and her acts of kindness and compassion coupled with the contents of her six diaries that have become the foundation for the program.

Union won the United Way Sun Leadership Award - the first time a non-profit organization has won this honor - for running consistently excellent campaigns.

The other nominees were Arvest Bank, Bank of Oklahoma, N.A., and QuikTrip.

Previous winners include Bank of Oklahoma, Williams Company, American Airlines, QuikTrip and ONEOK

Briarglen kicked off monthly Neighborhood Kitchen Dinners as the school expanded its community outreach program with activities designed for parents.

Starting in September and running through April, two grades each month hosted a family math and/or reading activity in their classrooms to coincide with dinner.

The FOCUS group at the Intermediate High gathered cases of water for Haiti.

Despite a troubling economy, Union once again met its goal for the United Way, raising $177,353 - up from $167,366 the previous year.

Union was also the top contributor in the education division. Union had 92 Key Club Donors, employees who donate $500 or more.

Varsity Pom partnered with Tulsa Teachers Credit Union to donate 74 new Union spirit shirts in both children’s and adult sizes to the Klothes Kloset.

In October, Jarman received a check for recycling commissions in the amount of $90.03 earmarked for classroom items, field trips, and other staff functions.

During October, Jarman staff/students, neighbors, and parents contributed 10,106 pounds of recycling, which saved 15.76 cubic yards of landfill space.

Parent Support The Union Schools Education Foundation raised almost $86,000 during its annual auction and dinner – the second highest on record – with net earnings exceeding $66,000. The theme was “Putting on the Glitz,” and the auction did just that, said Foundation President Patrick Coyle, as auction chairwoman DeAnn Magness and her team auctioned off many great items including a trip to Atlantis in the Bahamas and gift baskets made by the schools. The Foundation also raised more than $5,000 for its “Fill the Need” cause to benefit the I Care Holiday Project.

Varsity baseball players and coaches continued their tradition of community service by volunteering time and service at the John 3:16 Mission. The players did everything from wiping down and setting the tables to bringing trays of food to each place, as well as filling cups of ice and pouring iced tea. They also stayed to clean up, including sweeping and mopping the floor and rinsing dishes.

14

Community Service (Cont.)

The Extended Day Program participated in a pilot program for Kenzie’s Cause at Jefferson, Jarman, and Peters. Sixth grader and former Jarman student Kenzie Chabino and her mother, Heather, headed a quest to create one million 4 x 6 cards made by children to be included in Meals on Wheels meals delivered to families across America. EDP students at the three schools created 10,900 cards.

The boys’ basketball team volunteered at the Community Food Bank during the summer. When a call went out for help, the Redskins were more than happy to comply by organizing and boxing up food to be distributed throughout northeastern Oklahoma.

The 8th Grade Center’s Rotary Club volunteered at one of the two food banks in Oklahoma. Students labeled and boxed more than 1,500 cans of green beans; about 125 cases of food.

High School students hosted an Easter egg hunt for children at the Domestic Violence Intervention Services shelter. The shelter has a constant flow of women and children who need temporary living quarters as well as clothing, toiletries, toys, etc., and students collected items such as games, toys, blankets and diapers for Easter baskets.

As part of the Redskin Aid/Teammates community service program organized by 6th/7th grade teacher and coach Josh Blankenship, football players visited residents at local nursing homes and mentored students at the district’s elementary schools. They also joined Leadership students to help with the annual Senior Citizen Prom at Woodland Terrace Senior Living Center and provided tutoring assistance at the 6th/7th Grade Center.

Communications In 2009-2010 the Oklahoma School Public Relations Association recognized the Union Communications staff with six Awards of Excellence for the following: • Charting a Course for the Future campaign for district program expansion • Union Football Coach’s Show • Welcome to the Union Collegiate Academy, a video letter to UCA students • The 2007-2008 District and Foundation Annual Report • The Communicator, the district newsletter • The district web site, www.unionps.org

“I Care” has been giving back to the community since 1996 and organizers hoped to help more than 938 families – including 1,906 children during the holiday season. The project is made possible by Student Assistance Coordinator Danny Williams and his cadre of volunteers and students in the Drug-Free Youth program, as well as the many people and businesses who donate time and money. The effort is part of the district’s Character Counts! program which teaches students the importance of such traits as caring, responsibility, and citizenship.

The department established district Facebook, Twitter, and YouTube accounts and enabled web visitors to share Union news on a variety of social networking sites. A Spanish language page was created, and a link to Google provided users the opportunity to translate the entire Union site into virtually any language. Other web changes included the completion of a cell phone-friendly district web site, addition of a flu information page, and the refinement of Student Assistance Program and Community Schools pages.

Moore raised $5,100 for the MakeA-Wish Foundation to help build a Star Wars clubhouse for five-yearold Christian Bentley of Claremore who is battling leukemia.

Several Union employees volunteered to help rebuild a house near 11th and Harvard for the national television show “Extreme Makeover Home Edition.” Those helping included Michael Murray (Alternative), student John Fritz, and Dr. Karen Fritz, Tonya Wyatt, and Jan McKethan (8th Grade Center).

Technology During 2009-2010, the Information Technology department completed 12,600 work orders and many projects funded by the 2009 bond issue. The Voice over Internet Protocol (VoIP) phone system rollout continued with upgrading all phones at the Intermediate High to the new system. New computer labs were

The High School Red Cross Club was awarded the American Red Cross School Club of the Year 2010 by the Tulsa Area Chapter of the American Red Cross.

They participated in various efforts including partnering with Qdoba Mexican Grill to raise more than $500 for American Red Cross Haiti relief.

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Union Public Schools 5 District Profile (Continued)

Members of the Redskins football team helped build a home for Habitat for Humanity over the summer. The athletes were praised for their exemplary manners and attitudes while Habitat for Humanity organizers commended the coaches for building the character of the players.

Technology (Cont.)

home prices, and sales rates. Other favorable rankings for Tulsa on Forbes lists of 200 metropolitan areas include: * “America’s Most Livable Cities” – #5 * “Best Cities for Job Growth” – #2 in the midsize

category * “Lowest Unemployment” – #13 at 7 percent * “Home Price” – #14 * “Change in Gross Metropolitan Product” – #41 * “Best Places for Business and Careers” – #47

Union Public Schools 5 District Profile (Continued)

installed at the 6th/7th Grade Center, Eighth Grade Center, Intermediate High, and the High School.

Computer labs were also upgraded at Boevers, Darnaby, Grove, McAuliffe, and Jarman.

In cooperation with the Operations Department, over 140 SMART Interactive white boards were installed at all sites. Over the summer, the hard drives on all student computers (3,100) were erased and re-imaged.

The computers were then re-named and rejoined to the network.

The IT department established wireless connectivity throughout the building in eight elementary schools. Various WiFi Hotspots were also established at the High School and Intermediate High to enable students to have wireless Internet use.

Tulsa offers a low cost of doing business at seven percent under the U.S. average due to low rent, energy costs, and taxes.

Tulsa’s diversified economy and the fact that it did not experience the same reduction in the housing market caused by the mortgage/housing crisis are contributing factors to Tulsa’s ability to weather the economic recession.

There is no denying that the Tulsa area hit an economic slump. The Oklahoma Office of the State Treasurer reported the worst revenue shortfall in state history. A $945 million decrease in general revenue fund collections exemplifies the effect of the downturn in Oklahoma. The largest impact was due to declines in net income tax, gross production, sales tax, and motor vehicle sources.

During the summer, IT sponsored a public conference for Union and surrounding districts with nationally known educator and technology expert Alan November. The conference focused on integrating technology into the classroom to make learning more meaningful and also provided breakout sessions demonstrating how to use technology effectively.

In an aggressive move to recruit highly-skilled professionals to Oklahoma, the Department of Commerce launched “Project Boomerang.” Project Boomerang is a broad-based workforce initiative designed to attract out-of-state professionals with Oklahoma ties back to the state to fill high-quality, knowledge-based jobs with individuals with advanced skills and a college education. This marketing program uses direct mail, social connections, web sites, and other media to connect professionals to Oklahoma employers.

Economic Condition and Outlook Union Public Schools is located within the Tulsa Metropolitan Statistical Area (MSA), a seven county area whose population totals 924,571 or 25.2 percent of the population of the state of Oklahoma. The Tulsa Metropolitan Chamber of Commerce reports Tulsa’s major industries as aerospace, transportation and logistics; advanced manufacturing and services, health care; IT and telecommunications; petroleum and natural gas; architectural and structural metal manufacturing. The Chamber estimates the value of all goods and services produced in the Tulsa MSA as $34.4 billion, or 33 percent of the Oklahoma economy.

Union Public Schools contributes to Tulsa’s workplace initiatives by offering community programs for both adults and children such as:

A November 2009 Forbes Magazine survey ranked both Tulsa and Oklahoma City high on their list of “America’s Fastest-Recovering Cities.” The survey ranked the Tulsa MSA at number 12 and Oklahoma City at number 13. Forbes used a ranking system with the following criteria: unemployment rate, gross metropolitan product, foreclosures,

*

Adult Basic Education – classes for adults who need basic instruction in reading, writing, math, and life skills.

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Workplace Education – links education goals to the employer’s desire for high performance work and product quality.

*

GED Preparation – instruction to prepare adults to take the Tests of General Educational Development.

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English as a Second Language – instruction to non-English speaking adults to help them be productive citizens of our community.

The district continues to be a leader in healthcare initiatives. A joint effort between University of Oklahoma School-Based Bedlam Clinic and Union Public Schools produces cutting-edge services for the Union community. The Union Public Schools Bedlam 16

Economic Condition and Outlook (Cont.)

Bond Funds On February 9, 2010, district voters overwhelmingly approved a $22.5-million bond proposal which included funds for phase I of the Union Collegiate Academy, a major remodel of Grove Elementary, acquisition of textbooks, media books, hardware, software, and equipment districtwide, and student passenger route buses.

Schools-Based Health Clinic operates at both Roy Clark Elementary School, and Rosa Parks Elementary School. These clinics provide a convenient way for students to receive a wide range of health care services.

They operate at no cost to the school district.

During the 2009-2010 school year, Union received more than $15.25 million in federal grant money. A significant portion of that funding came as a result of The American Recovery and Reinvestment Act of 2009 (ARRA). The Act provided funding for programs under the Individuals with Disabilities Education Act (IDEA) and under Title I. The overall goals of the ARRA funds were to stimulate the economy in the short term and invest in education and other essential public services to ensure the long-term economic health of our state and nation. Union Public Schools received in excess of $5.16 million of ARRA funding for 2009-2010.

In addition to student healthcare, Union partners with the University of Oklahoma Physicians-Tulsa to provide low cost medical services for its employees through an employee clinic. This unique partnership provides access to quality healthcare while controlling escalating healthcare costs. The clinic is staffed by a fully-licensed OU physician, a physician assistant, and a licensed practical nurse. Even some pharmacy services are available.

Internal Control Management of the district is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the district are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP).

The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management.

Enrollment Union has experienced significant growth in student enrollment during the past decade. During the 2001-2002 school year, the district recorded total enrollment of 13,315. In 2009-2010, enrollment reached 15,015. The administration projects enrollment will decline slightly in the 20102011 school year to approximately 14,930 students. The district continues to provide a four-year-old program to every elementary site and a central three-year-old program serving approximately 645 students.

Additional enrollment details may be found in the Statistical Section of this CAFR.

Facilities To accommodate the large student population, the district maintains over 2.7 million square feet of facilities, including an early childhood center (three-year-old program), thirteen elementary schools (grades PK-5), a Sixth/Seventh Grade Center, an Eighth Grade Center, an Intermediate High School (grades 9-10), a High School (grades 11-12), an Alternative School serving high school students, a Transportation/Operations/Warehouse Complex, and an Education Service Center. The district’s newest construction includes the addition of a baseball/softball complex located at the Intermediate High School, as well as a major remodel of Grove Elementary School. Please refer to the Statistical Section of this CAFR for additional facility details.

Long-Term Financial Planning The Board of Education of Union Public Schools, in conjunction with the Superintendent and Chief Financial Officer, establishes a system of sound financial planning and management to assure that the district’s objectives are addressed and that funds are expended in accordance with plans expressed through the Board budget. The financial management system components include: 1) a planning process that consists of a review of state statutes, Board policies, concepts, ideas, problems, constraints, approaches and systems before dollar amounts are established in the 17

Union Public Schools 5 District Profile (Continued)

Grants/Federal Programs

The primary goal of the clinics is to serve the families of all children in each of the schools, including those who qualify for Medicaid or have no health insurance. The school clinics provide at least one full-time physician’s assistant or a resident physician. In addition, a pediatrician visits each school clinic as part of a rotating schedule. The physicians work with and assist school nurses.

Task Force – creates a task force to study the issues related to the administration of Internet-based courses and curriculum in public schools.

Long-Term Financial Planning (Cont.) budget; and 2) a budget that is the expression of the plans of the Board through three main budgets – the General Fund, a Special Revenue Fund and the Child Nutrition Fund.

HB 1592: Surety Bond – requires any Superintendent or Financial Officer who has supervision of or authority to expend school district funds to be required to furnish a surety bond of not less than $100,000.

The bill also requires any leasepurchase agreement entered into by a school district to include the right of the district to acquire buildings, equipment or other facilities or improve school sites through such an agreement. It also authorizes a district to use proceeds for the sale of bonds, as authorized under the Oklahoma Constitution, for leasepurchase payments.

Union Public Schools 5 District Profile (Continued)

Budgetary Controls The district utilizes budgetary controls to ensure compliance with legal appropriation limitations and to provide an operating plan for the district’s resources. The annual appropriated budget includes activity of the General, Special Revenue Funds, and Child Nutrition Funds.

Capital projects activity is controlled with approval of project length financial plans. Initial budgets are adopted at the beginning of the fiscal year with periodic amendments approved by the Board as necessary.

Closing In closing, without the leadership and support of the Union Board of Education, preparation of this report would not have been possible.

The level of budgetary control is maintained by fund, project, and function. Individual line items may be adjusted without Board action, but total budgeted expenditures may not exceed appropriations at the major fund level without Board approval. The district utilizes an encumbrance system as a technique of budgetary control with encumbered appropriations lapsing at year end.

Sincerely,

Catherine E. Burden, Ph.D. Superintendent

Independent Auditrants/FederaPrograms

Internal Contr Oklahoma state statutes require an annual audit by independent certified public accountants. The accounting firm of Cole and Reed, LLP, was selected by the Board to conduct the audit. In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133. The auditor’s report on the basic financial statements is included in the financial section of this report. g-Term Fincial PlanningBudgetary Controls Major initiatives that were enacted as a result of the 2009 Oklahoma Legislative Session included:

Debra J. Jacoby, CPA Chief Financial Officer/Treasurer

Catherine L. Smart, CPA Director of Financial Reporting/Treasurery

Gail Easterling, CPA Director of Accounting

HB 1837: Inner City Schools Rescue Program – authorizes the Oklahoma Commission for Teacher Preparation to establish a program to recruit and train teachers to work in inner city schools and provide technical assistance and support to those teachers.

HCR 1004: Internet-Based Education Administration 18

Union Public Schools 5 ASBO Award

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Union Public Schools 5 GFOA Award

Board of Education 2009-2010 Name

Jeff Bennett President Ross Ford Vice President Heather McAdams Clerk Scott McDaniel Member Ed Payton Member

Office

Seat 1 2 3 4 5

Term of Office 2006-2011 2007-2012 2008-2013 2009-2014 2010-2015

Administration 2009-2010 Cathy Burden, Ph.D. - Superintendent Debra Jacoby, CPA - Chief Financial Officer/Treasurer Kirt Hartzler, Ed.D. - Asst. Superintendent for Teaching & Learning Jarod Mendenhall - Asst. Superintendent for Support Services Charlie Bushyhead - Executive Director of Secondary Education Kathy Dodd, Ph.D. - Executive Director of Elementary Education Gretchen Haas-Bethell - Executive Director of Communications Lee Snodgrass - Executive Director of Technology Cynthia Solomon - Executive Director of Human Resources Jackie White - Executive Director of Pupil Accounting/Grants Gary Greenhill - Director of Transportation Penny Kay, Ed.D. - Director of Special Education Chuck Perry - Director of Athletics Cathy Smart, CPA - Director of Financial Reporting/Treasury Ed Tackett - Director of Fine Arts Michelle Bergwall - Director of Construction Chuck Chapman - Director of Maintenance Services Susan Crowder - Director of Federal Programs Drew Diamond - Director of Security Gail Easterling, CPA - Director of Accounting Lisa Griffin - Director of Child Nutrition Chuck Hanna - Director of Evening & Summer Academy Joanna Jamison - Director of Adult & Community Education Sarah McBryde - Director of Marketing Lynn McClure - Director of Early Childhood Center Lisa Neal, CPA - Director of Payroll Todd Nelson - Director of Student Achievement Lisa Witcher - Director of Professional Development Hassan Yekzaman - Director of Facilities Services David Young - Director of Purchasing & Supply Management

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Union Public Schools 5 School Officials

Union Public Schools 5 Administrative

Union Public Schools Administrative Organizational Chart Board of Education

Superintendent of Schools Chief Financial Officer/ Treasurer *Executive Director of Human Resources *Executive Director of Pupil Accounting/Grants *Director of Financial Reporting/Treasury *Director of Accounting *Director of Payroll

Asst. Supt. for Teaching & Learning *Director of Special Education *Director of Fine Arts *Director of Athletics *Educational Technology

Exec. Dir. for Elementary Teaching & Learning *Elementary Administration *Director of Federal Programs *Director of Professional Development

Exec. Dir. for Secondary Teaching & Learning

Executive Director of Communications Asst. Supt. for Support Services *Executive Director of Technology *Director of Facilities *Director of Maintenance *Director of Child Nutrition *Director of Transportation *Director of Construction *Director of Purchasing *Director of Marketing *Director of Security

*Secondary Administration *Director of Student Achievement *Director of Adult/Community Education 2009-2010

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Independent Auditors’ Report To the Board of Education Union Public Schools Tulsa, Oklahoma We have audited the accompanying financial statements of the governmental activities, business-type activities, and each major fund of Union Public Schools (the “District”) as of and for the year ended June 30, 2010, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, and each major fund of the District, as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparisons for the General Fund and the Building Fund, for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Management’s Discussion and Analysis and the Schedule of Funding Progress for Other Post Employment Benefits, as listed in the Table of Contents, are not required parts 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 supplementary information. However, we did not audit the information and express no opinion on it.

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Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The accompanying other supplementary information, as listed in the Table of Contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented, in all material respects, in relation to the basic financial statements taken as a whole.

The accompanying Introductory and Statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. These sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2010, 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 grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Oklahoma City, Oklahoma December 1, 2010

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The Management’s Discussion and Analysis of Union Public School District’s financial performance provides a narrative overview of the district’s financial activities for the fiscal year ended June 30, 2010. The intent of this discussion and analysis is to look at the district’s financial performance as a whole. Readers should also review the transmittal letter, notes to the basic financial statements, and supplementary information to enhance their understanding of the district’s financial performance.

Financial Highlights Key financial highlights for fiscal year 2010 are as follows: »

In total, net assets increased $3.63 million. Net assets of governmental activities increased $2.56 million which represents a 1.9 percent increase from fiscal year 2009.

»

Net assets of business-type activities increased $1.07 million or 35.8 percent from fiscal year 2009.

»

General revenues accounted for $93.14 million in revenue or 73.7 percent of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $33.27 million or 26.3 percent of total revenues of $126.41 million.

»

The district had $117.84 million in expenses related to governmental activities; only $27.27 million of these expenses were offset by program specific charges for services, grants or contributions. Expenses are shown in programs that are easily identifiable utilizing the current Oklahoma Cost Accounting System (OCAS) coding structure.

»

Among the major funds, the general fund had $96.02 million in revenues, $93.23 million in expenditures, and $151,642 in transfers into the fund resulting in a fund balance increase of $2.94 million. The building fund had $3.68 million in revenues, $4.31 million in expenditures, and $504,554 in transfers into the fund yielding a fund balance decrease of $121,847. Bond fund revenues totaled $149,911 and bond sale proceeds were $22.5 million. Expenditures in the bond fund totaled $17.56 million. The sinking fund had $19.17 million in revenues and $18.29 million in expenditures.

»

Net assets for the child nutrition enterprise fund increased $1.07 million. This increase resulted from operating revenues of $2.25 million and non-operating revenues of $3.76 million exceeding operating expenses of $4.93 million.

Overview of the Financial Statements This Comprehensive Annual Financial Report (CAFR) consists of a series of basic financial statements: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Other supplementary information is included in addition to the basic financial statements. These statements are organized so the reader can understand Union Public School District as a financial whole, an entire operating entity. The statements then proceed to provide an increasingly detailed look at specific financial activities.

Government-wide financial statements. The government-wide financial statements are designed to provide information about the activities of the district as a whole, presenting both an aggregate view of the district’s finances and a longer-term view of those finances.

The Statement of Net Assets presents information on all of the district’s assets and liabilities, with the difference between the two reported as net assets.

25

The Statement of Activities presents information showing how the district’s net assets changed during fiscal year 2010.

While this document contains the large number of funds used by the district to provide programs and activities, the view of the district as a whole looks at all financial transactions and asks the question, “How did we do financially during 2010?” The Statement of Net Assets and the Statement of Activities answer this question. These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year’s revenues and expenditures regardless of when cash is received or paid.

These two statements report the district’s net assets and changes in those assets. This change in net assets is important because it tells the reader that, for the district as a whole, its financial position has improved or diminished. The causes of this change may be the result of many factors—some financial, some not. Non-financial factors include the district’s property tax base, current property tax laws in Oklahoma restricting revenue growth, facility conditions, mandated educational programs, and other factors.

The Statement of Net Assets and the Statement of Activities are divided into two distinct types of activities: »

Governmental activities—most of the district’s programs and services are reported here, including instruction, support services, operation and maintenance of plant, pupil transportation, and extracurricular activities.

»

Business-type activities—these goods or services are provided on a fee basis to recover all of the expenses of the goods or services provided. The district’s child nutrition program is reported as a business-type activity.

The government-wide financial statements can be found beginning on page 37.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Union Public School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: 1) governmental funds, 2) proprietary funds, and 3) fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the district’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the district’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison.

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the building fund, the sinking (debt service) fund and the bond fund, all of which are considered to be major funds. A summary of the district’s major funds can be found in Note A of the notes to the financial statements beginning on page 52 of this report.

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The basic governmental fund financial statements begin on page 41 of this report.

Proprietary Funds. Proprietary funds use the same basis of accounting as business-type activities. The basic proprietary fund financial statements begin on page 46 of this report.

Fiduciary Funds. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the district’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements begin on page 49 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 51 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the district.

Government-Wide Financial Analysis Recall that the Statement of Net Assets provides the perspective of the district as a whole.

Table 1 provides a summary comparison of the district’s net assets for fiscal years 2010 and 2009: Table 1 Net Assets (In Millions)

Governmental Activities 2010 2009 Assets Current Assets Noncurrent Assets Land & CIP Assets Captils Assets, net Total Assets

$

Liabilities Current Liabilities Noncurrent Liabilities Total Liabilities Net Assets Invested in Capital Assets, Net of Related Debt Restricted for Debt Service Restricted for Capital Projects Unrestricted Total Net Assets

$

81.04

$

75.26

Business-Type Activities 2010 2009 $

3.69

$

2.71

Total 2010 $

84.73

2009 $

77.97

18.79 123.66 223.49

22.65 118.54 216.46

0.00 0.49 4.18

0.00 0.47 3.17

18.79 124.15 227.67

22.65 119.01 219.63

25.85 58.02 83.87

26.99 52.41 79.40

0.13 0.00 0.13

0.19 0.00 0.19

25.98 58.02 84.00

27.36 52.23 79.59

119.32 10.73

121.64 9.80

0.49 0.00

0.47 0.00

119.81 10.73

122.11 9.80

1.97 7.60 139.62

2.18 3.44 137.06

0.00 3.56 4.05

0.00 2.52 2.98

1.97 11.16 143.67

2.18 5.96 140.05

$

$

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$

$

$

Total assets were $227.67 million. Cash and cash equivalents were $64.03 million. Investments totaled $15.16 million. Capital assets net of depreciation were $142.94 million. Taxes and other receivables were $4.38 million.

Net assets of the district’s governmental activities increased by $2.56 million.

This increase is primarily attributable to increases in student growth, state and local funding sources and current ad valorem collections, which affect the general fund, building fund and sinking fund. The district was able to increase its ending fund balance percentage in the general fund to 15.9 percent on a budgetary basis, which placed it in a favorable operating position to weather the economic downturn. The district will continue to monitor state revenue projections and market conditions to anticipate circumstances that may warrant changes in spending in the next fiscal year.

The net assets of the district’s business-type activities increased by $1.07 million, primarily due to an increase in federal grant revenue as a result of more students on free and reduced lunch status. Analysis of the child nutrition activity indicates that it should remain stable and self-supporting.

Governmental Activities. As reported in the Statement of Activities on beginning on page 38 the cost of the district’s governmental activities for the year ended June 30, 2010, was $117.84 million. However, not all of this cost was borne by the taxpayers. Of this amount, $2.07 million was paid by those who used or benefited from the services rendered (e.g., charges for before and after school care and summer school tuition), and $25.21 million was paid through various federal and state grants and contributions. Consequently, the net cost of $90.57 million, after taking into consideration these fees and subsidies, was paid by the taxpayers, unrestricted federal and state aid, and other general revenues.

Graph 1 below illustrates the cost of services in the district’s three largest programs -- instruction, support services, and food services. The graph compares the cost of the services with the revenues generated by the program.

Graph 1-Program Revenues and Expenses Program Revenues

Expenses

66,581,489 51,263,377 20,016,474 5,997,592 4,933,359

7,258,075

Instruction

Support Services

Food Services

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Table 2 provides a summary comparison of the district’s change in net assets for the fiscal years 2010 and 2009: Table 2 Changes in Net Assets (In Millions) Governmental Activities 2010 Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Property Taxes Other Taxes State Aid Not Restricted to Specific Programs Other Total Revenues Expenses Instruction: Regular Instruction Special Education Instruction Vocational Education Other Instruction Support Services: Pupil Services Instructional Staff Services General Administration Services School Administration Services Business Services Operations & Maintenance Services Pupil Transportation Services Other Support Services Community Services Capital Outlay Interest on Long-Term Debt Food Services Total Expenses Change in Net Assets Net Assets, Beginning Net Assets, Ending

$

$

2.06 25.21 0.00

2009

$

49.61 5.20

35.33 0.71

39.99 0.72 $

2010

2.11 20.34 0.00

51.37 5.72

120.40

Business-Type Activities

$

117.97

$

2.25 3.75

Total

2009

$

2.10 3.02

2010

$

4.31 28.96

2009

$

0.00

0.00

0.00 0.00

0.00 0.00

51.37 5.72

49.61 5.20

0.00

0.00

0.004 6.00

0.01 5.13

35.33 0.71 126.40

39.99 0.73 123.10

$

0.00

4.21 23.36

$

0.00

$

50.20 7.84 0.87 7.67

49.63 7.28 0.79 6.15

0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

50.20 7.84 0.87 7.67

49.63 7.28 0.79 6.15

$

6.61 4.66 1.70 7.58 6.63 13.50 4.04 0.39 3.12 0.00 3.03 0.00 117.84

$

6.35 4.41 1.80 7.69 6.94 13.33 3.77 0.37 2.80 0.51 1.61 0.00 113.43

$

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.93 4.93

$

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.63 4.63

$

6.61 4.66 1.70 7.58 6.63 13.50 4.04 0.39 3.12 0.00 3.03 4.93 122.78

$

6.35 4.41 1.80 7.69 6.94 13.33 3.77 0.37 2.80 0.51 1.61 4.63 118.07

$

2.56 137.06 139.62

$

4.53 132.52 137.06

$

1.07 2.98 4.05

$

0.50 2.48 2.98

$

3.63 140.04 143.67

$

5.03 135.01 140.04

Total governmental revenues were $120.41 million. Graph 2 illustrates the components of this revenue.

Governmental activities increased the district’s net assets by $2.56 million, thereby accounting for a majority of the growth in the net assets of the district.

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Instruction comprised 56.59 percent of governmental program expenditures. Support services expenditures made up 43.41 percent of governmental expenditures.

Graph 3 illustrates the components of the expenses in the governmental activities.

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The increase in student instructional services expenses represents, in large part, the district’s multi-year plan to prioritize instructional services to address such issues as growing enrollment, class size, curriculum development, and negotiated teacher raises.

Business-Type Activities. Business-type activities consist of child nutrition services. This program had operating revenues of $2.25 million, non-operating revenues of $3.75 million, and expenses of $4.93 million for fiscal year 2010.

The increase in Child Nutrition expenditures reflects additional student enrollment, an increase in the cost of food, as well as a concerted effort to provide more healthy food options for students. The Child Nutrition fund ended the year in a positive financial condition. Management has reviewed this program and, barring any unforeseen problems, the child nutrition program should remain stable and require no support from tax revenues.

Financial Analysis of the Government’s Funds As noted earlier, Union Public School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. 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 a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the district’s governmental funds reported combined ending fund balances of $68.52 million. Approximately $26.99 million of this total amount constitutes unreserved fund balance. Of this amount, $24.46 million is undesignated and available for spending at the district’s discretion, while the remainder is designated for compensated balances ($1.41 million); insurance recovery claims ($187,893); and early retirement incentives ($927,756). The remainder of fund balance is specifically reserved to indicate that it is not available for new spending because it has already been committed to debt service ($10.73 million); capital projects ($30.00 million); arbitrage ($550,203); and inventories ($243,068).

The general fund is the chief operating fund of the district. At the end of the current fiscal year, unreserved fund balance of the general fund was $20.00 million. As a measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 21.45 percent of total general fund expenditures.

The fund balance of the district’s general fund increased by $2.94 million during the current fiscal year. During 2009-2010 the state reduced state aid then supplemented the reduction with one-time federal stabilization funds of $5.0 million. The state contribution of $35.3 million in state aid, plus the supplemental $5.0 million in federal stabilization funds combined for a total of $39.3 million, which was $1.5 million less than the $41.8 million midterm allocation in January 2010.

In spite of the fact that the district’s state aid allocation decreased, the American Recovery and Reinvestment Act of 2009 (ARRA) appropriated additional funding for programs under the Individuals with Disabilities Education Act (IDEA) and under Title I for the second year. This funding totaled $2.3 million and was utilized to fund the salaries and benefits of the positions that would have been cut had those federal funds not been available. The overall goals of the ARRA funds were to stimulate the economy in the short-term and invest in education and other essential public services to ensure the long-term economic health of our nation. Other less significant increases in revenue occurred in local sources and intermediate sources of revenue.

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Controlling fiscal year-end expenditures to maintain a continuing level of fund balance is also a contributing factor to the district’s financial stability. The district relies on the ending fund balance to meet cash flow needs during the first six months of the following fiscal year. While a small portion of the revenue is collected during the first six months of the fiscal year, the significant revenue collections occur in late spring. This annual cash flow trend requires the district to increase the ending fund balance each year as the expenditure budget grows in order to meet cash flow requirements of the first six months prior to tax revenues being collected.

Normally the revenue and expenditure budgets are revised during the fiscal year based on the final federal grant award notifications, state aid allocation revisions, actual revenue receipts and other unanticipated increases or decreases in revenue or expenditures. However, neither the general fund revenue budget nor the general fund expenditure budget was revised during the year from the original budgets approved by the Board in September of 2009. The official October 2009 child count of 15,015 reflected that the district grew by 357 actual students and 383 weighted students. However, most of the revenue associated with student growth was subject to state budget cuts. The district initially built conservative budgets based on zero student growth.

The variance in the final budget versus the actual revenues and expenditures revealed a variance in revenues of $2.11 million and a variance in expenditures of $5.43 million. The approved final expenditure budget was intentionally larger than anticipated actual expenditures to provide the flexibility necessary to manage any unanticipated revenue receipts and expenditures incurred in the final days of the fiscal year.

The building fund had a total fund balance of $4.47 million. The net decrease in fund balance during the current year in the building fund was $121,847. This planned decrease in fund balance is attributed to the $1.4 million allocated to fund a portion of the Union Multipurpose Activity Center (UMAC) operating and utility expenses. The Oklahoma Constitution allows building funds to be used for erecting, remodeling, repairing, or maintaining school buildings; purchasing furniture, equipment, or computer software; paying energy and utility costs; purchasing telecommunications services; paying fire and casualty insurance premiums; purchasing security systems; and paying salaries of security personnel. The ending fund balance will be used for those purposes.

The building fund budget was not revised from the original budget approved by the Board on September 2009. The variance in the final building fund revenue budget versus the actual revenue received totaled $222,962, due mostly to investments yielding interest above initial estimates. The variance in the building fund expenditure budget versus the actual expenditures was $1.26 million under original estimates partly due to the shifting of expenditures to the general fund.

The sinking (debt service) fund had a total fund balance of $10.73 million, all of which was reserved for the payment of debt service. The net increase in fund balance during the current year in the debt service fund was $930,894. Millage rates for sinking fund levies are not controlled by the district but are set annually by the Tulsa County Excise Board after a thorough review of property valuations and the district’s debt service needs.

The bond fund had a total fund balance of $30.0 million, all of which was reserved for capital projects. The net increase in fund balance during the current year in the bond fund was $4.74 million. This increase in fund balance is primarily the result of a new issuance of debt. On February 9, 2010, district voters approved a $22.5 million bond proposal which included funds for remodeling Grove Elementary; the addition of a new wing at the High School to accommodate the Union Collegiate Academy; acquisition of textbooks, media books and instructional hardware/software; and the purchase of student transportation route buses equipped with GPS systems. Because of its strong patron support base, the district is prudent to keep bonded capacity at traditional levels while not imposing an undue tax burden on the community. Statutory requirements dictate that bond funds be used for the voter-approved purposes of acquiring school sites, constructing and equipping new school facilities, renovating existing facilities, and acquiring transportation equipment.

32

Proprietary Funds. Union Public School District’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The proprietary funds have operating revenues of $11.01 million and non-operating revenues of $3.77 million. Operating expenses were $13.76 million.

General Fund Budgetary Highlights Union Public School District adopts an annual appropriated budget for its general fund. The district’s budget is prepared according to Oklahoma law and is based on accounting for certain transactions on a basis of cash receipts, disbursements, and encumbrances. The most significant budgeted fund is the general fund.

For the general fund, budget basis revenue was $95.34 million with original and final budget estimates of $97.45 million. The majority of the revenue variance came from federal sources.

The final expenditure budget was intentionally approved to be larger than needed in order to provide the necessary spending authority to the district by the Board to meet the State of Oklahoma spending requirements. The district must have sufficient budget spending authority to allow for any unanticipated revenues that might be collected during the last thirty calendar days of the fiscal year. During 2009-2010, the majority of the additional spending authority was allocated to the instructional, student support, and instructional staff function areas. Although the revenue collections were lower than the final revenue budget, spending was curtailed making it unnecessary to revise the budget in order to stay within the carryover limit required by the Board. Union carried forward a budgetary ending fund balance of 15.9 percent.

Capital Assets and Debt Administration Capital Assets. At the end of fiscal year 2010, the district had $142.94 million in property, plant and equipment (net of depreciation), of which $142.45 million was in governmental activities. Table 3 shows a comparison of fiscal years 2010 and 2009 balances.

Table 3 Capital Assets (Net of Depreciation, in Millions) Governmental Activities 2010 2009 Land

$

14.29

$

Business-Type Activities 2010 2009

14.29

$

0.00

$

0.00

Total 2010 $

14.29

2009 $

14.29

Construction in Progress

4.50

8.36

0.00

0.00

4.50

8.36

Buildings/Improvements

114.01

109.00

0.00

0.00

114.01

109.00

9.65

9.54

0.49

0.47

10.14

10.01

Machinery, Equipment and Vehicles Total

$

142.45

$

141.19

$

0.49

$

0.47

$

142.94

$

141.66

Capital assets of $260.28 million exceeded depreciation of $117.34 million. As a growing school district, Union is committed to provide the facilities and tools that enable district staff to produce a quality product. Union’s student population has exceeded the 15,000 mark. Therefore, additional classroom space and equipment are necessary each year to accommodate that growth. The acquisition of capital assets is critical to the Board’s desire to provide lower class sizes districtwide, technology-related instructional opportunities, and neighborhood elementary schools.

33

Bond issue dollars are the only resource available to schools to purchase many of these capital assets since state funding goes almost exclusively to pay teacher and staff salaries. Recent bond issue projects include: *Phase II addition to the softball/baseball complex *Performing Arts Center renovation *Furniture, fixtures and equipment *Roof refurbishments/replacements *Remodel Grove Elementary *Remodel science labs and media center at high school *Acquisition of textbooks and computer hardware/software *Acquisition of athletic, spirit and fine arts uniforms and equipment *Renovations and repairs to various school sites Additional information on the district’s capital assets may be found in note D to the financial statements beginning on page 60.

Long-Term Debt. At June 30, 2010, the school district had $69.35 million in bonds outstanding, $17.90 million due within one year. Table 4 summarizes bonds outstanding for fiscal years 2010 and 2009.

Table 4 Outstanding Debt, at Year End (In Millions) General Obligation Bonds Due: 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 Total

2010

2009

0.00 17.90 19.72 15.48 10.62 5.63 $69.35

16.15 17.90 14.10 9.85 5.00 0.00 $63.00

On April 1, 2010, the district issued $22.5 million in voted general obligation bonds for the purpose of constructing, equipping, repairing and remodeling school buildings, acquiring school furniture, fixtures and equipment, acquiring and improving school sites, and acquiring transportation equipment. The final payment is due April 1, 2015.

On April 1, 2009, the district issued $20.0 million in voted general obligation bonds for the purpose of constructing, equipping, repairing and remodeling school buildings, acquiring school furniture, fixtures and equipment, acquiring and improving school sites, and acquiring transportation equipment. The final payment is due April 1, 2014.

On April 1, 2008, the district issued $19.4 million in voted combined purpose bonds for the purpose of constructing, equipping, repairing and remodeling school buildings, acquiring school furniture, fixtures and equipment, acquiring and improving school sites, and acquiring transportation equipment. The final payment is due April 1, 2013.

On April 1, 2007, the district issued $17.0 million in voted combined purpose bonds for the purpose of constructing, equipping, repairing and remodeling school buildings, acquiring school furniture, fixtures and equipment, acquiring and improving school sites, and acquiring transportation equipment. The final payment is due April 1, 2012.

34

On April 1, 2006, the district issued $15.2 million in voted combined purpose bonds for the purpose of constructing, equipping, repairing and remodeling school buildings, acquiring school furniture, fixtures and equipment, acquiring and improving school sites, and acquiring transportation equipment. The final payment is due April 1, 2011.

Additional information on the district’s long-term debt can be found in note E to the financial statements beginning on page 61 of this report.

Economic Factors Fiscal year 2009-2010 ended with the state’s worst revenue shortfall in history, a result of the global economic recession. At fiscal year end, general fund revenue collections for the state totaled $4.6 billion. According to the Office of the State Treasurer, those collections were $945 million or 17 percent below the prior year; and $815.7 million or 15.1 percent below original estimates. The worst of the recession was experienced by the state during the first half of the fiscal year, while economic activity and revenue collections showed slight improvement during the second half of the fiscal year. The state treasurer predicts a revenue recovery in fiscal year 2011, with improvements in most revenue sources. Gross production tax collections on oil and natural gas were down 38.9 percent below the prior year reflecting the low prices of those commodities. Net income taxes, a combination of corporate and personal income taxes, generated $1.86 billion, which was $403.4 million or 17.7 percent below the prior year. Motor vehicle tax collections were also 16.2 percent below the prior year. Because revenues fell below appropriations, the state was unable to make up the shortfall and mandated budget cuts for most state agencies, including schools. In spite of the downturn, an October 2009 article in BusinessWeek ranked Tulsa as having the seventh strongest metro economy in the United States, crediting a solid housing market as one of the criteria for the city’s success.

At the fiscal year’s end, the district’s tax revenue sources and state aid had experienced reductions, mandating that the district begin the next budgetary year with conservative estimates. The district continued its tradition of maintaining a strong year-end fund balance.

The district expects student growth to continue, particularly at the secondary level and anticipates continuing to add teachers and programs over the next few years as the economy recovers. The county assessor provided Union with projections of no growth in the district’s net assessed valuation and actual growth was recorded at less than one percent. However, the continued increase in student enrollment and the continued business and residential growth in the district should provide additional future revenue.

By working to provide mutual benefit to the community and schools, Union has enjoyed a history of positive citizen support. The district’s patron base once again passed a bond issue on February 9, 2010, for $22.5 million.

These bond dollars provided the necessary funding for facilities, renovations, technology, textbooks, instructional equipment and uniforms. It is these annual bond dollars and strong patron support that allow Union the opportunity and obligation to maintain facilities and to maximize the use of instructional technology and equipment. State law limits a school district’s bonding capacity to ten percent of its net assessed valuation.

Based on these factors, the Board of Education and administration are confident that with prudent fiscal management, Union Public Schools can continue to make instruction the top budgetary priority to ensure the district keeps its academic focus and delivers its services more efficiently and effectively. Union continues to attract families who want excellent learning opportunities for their children, and also continue to attract the best in faculty and staff by providing the facilities and tools that enable them to produce a quality product.

35

Contacting the School District’s Financial Management This financial report is designed to provide our citizen’s, taxpayers, investors, and creditors with a general overview of the district’s finances to show the district’s accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Debra J. Jacoby, CPA, Chief Financial Officer at Union Public Schools, 8506 East 61st Street, Tulsa, Oklahoma 74133.

36

Governmental Activities

Business-Type Activities

Total

ASSETS CURRENT ASSETS Cash and cash equivalents Investments Receivables: Property taxes-delinquent Due from other governments Accrued interest Other Internal balance Inventories TOTAL CURRENT ASSETS

61,802,379 $ 14,649,330

2,230,606 $ 506,785

64,032,985 15,156,115

829,298 3,351,489 65,355 47,744 50,000 243,068 81,038,663

85,764 2,889 (50,000) 915,981 3,692,025

829,298 3,437,253 68,244 47,744 1,159,049 84,730,688

NONCURRENT ASSETS Land and construction-in-progress Capital assets being depreciated, net TOTAL NON-CURRENT ASSETS

18,792,177 123,662,032 142,454,209

487,377 487,377

18,792,177 124,149,409 142,941,586

TOTAL ASSETS

223,492,872

4,179,402

227,672,274

LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable Liability for incurred claims Accrued wages payable Accrued interest payable Current portion of long-term obligations TOTAL CURRENT LIABILITIES

1,452,989 598,098 3,631,867 453,516 19,711,342 25,847,812

63,522 63,961 127,483

1,516,511 598,098 3,695,828 453,516 19,711,342 25,975,295

NON-CURRENT LIABILITIES Non-current portion of long-term obligations Non-current portion of OPEB liability TOTAL NON-CURRENT LIABILITIES

55,229,403 2,793,545 58,022,948

-

55,229,403 2,793,545 58,022,948

TOTAL LIABILITIES

83,870,760

127,483

83,998,243

NET ASSETS Invested in capital assets, net of related debt Restricted for debt service Restricted for capital projects Unrestricted TOTAL NET ASSETS

$

$

See notes to financial statements.

37

119,327,836 10,727,559 1,968,124 7,598,593 139,622,112 $

487,377 3,564,542 4,051,919 $

119,815,213 10,727,559 1,968,124 11,163,135 143,674,031

Program Revenues Charges Operating for Grants and Services Contributions

Expenses GOVERNMENTAL ACTIVITIES Instruction Regular instruction Special education instruction Vocational education Other instruction TOTAL INSTRUCTION SUPPORT SERVICES Pupil services Instructional staff services General administration services School administration services Business services Operations and maintenance services Pupil transportation services Other support services Community services Interest on long-term debt TOTAL SUPPORT SERVICES TOTAL GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES Food services TOTAL SCHOOL DISTRICT

$

50,200,357 7,842,242 870,154 7,668,736 66,581,489

$

295,758 $ 11,571,157 3,551,284 274,659 4,323,616 295,758 19,720,716

Net (Expense) Revenue and Changes in Net Assets Primary Government BusinessGovernmental Type Activities Activities Total

$ (38,333,442) $ (4,290,958) (595,495) (3,345,120) (46,565,015)

- $ (38,333,442) (4,290,958) (595,495) (3,345,120) (46,565,015)

6,613,037 4,658,150 1,702,208 7,582,320 6,633,048 13,497,499 4,040,919 390,931 3,116,828 3,028,438 51,263,377

413,423 86,613 1,272,571 1,772,607

1,073,000 721,270 32,429 448,964 298,359 646,126 133,877 184,955 1,946,488 5,485,468

(5,540,037) (3,936,880) (1,669,779) (7,133,356) (6,334,689) (12,437,950) (3,820,429) (205,976) 102,231 (3,028,438) (44,005,302)

-

(5,540,037) (3,936,880) (1,669,779) (7,133,356) (6,334,689) (12,437,950) (3,820,429) (205,976) 102,231 (3,028,438) (44,005,302)

117,844,866

2,068,365

25,206,184

(90,570,317)

-

(90,570,317)

4,933,359

2,245,971

3,751,621

4,314,336

$ 28,957,805

$ 122,778,225

$

38

-

1,064,233

$ (90,570,317) $1,064,233

1,064,233 $ (89,506,084)

Expenses

Program Revenues Charges Operating for Grants and Services Contributions

GENERAL REVENUES Taxes Property tax, levied for general purposes Property tax, levied for debt services County taxes State aid not restricted to specific programs Interest and investment earnings Loss on disposal of capital assets Other TOTAL GENERAL REVENUES

Net (Expense) Revenue and Changes in Net Assets Primary Government BusinessGovernmental Type Activities Activities Total

$ 32,255,504 19,114,516 5,720,719 35,329,507 415,499 297,535 93,133,280

CHANGES IN NET ASSETS NET ASSETS AT BEGINNING OF YEAR NET ASSETS AT END OF YEAR

See notes to financial statements.

39

$

15,721 (11,277) 4,444

$ 32,255,504 19,114,516 5,720,719 35,329,507 431,220 (11,277) 297,535 93,137,724

2,562,963

1,068,677

3,631,640

137,059,149

2,983,242

140,042,391

$139,622,112

$4,051,919

$143,674,031

This page is intentionally left blank.

40

General Fund ASSETS Cash and cash equivalents Investments Due from other funds Property taxes-delinquent Due from other governments Other Accrued interest Inventories TOTAL ASSETS

Building Fund

Sinking Fund

Bond Fund

Other Governmental Funds

$ 18,816,799 $ 3,255,625 $ 8,364,985 $ 23,415,369 $ 3,040,710 1,520,355 2,280,533 7,047,554 432,725 61,818 334,755 3,207,035 22,913 121,541 47,744 17,333 8,667 13,000 22,022 243,068 $ 25,805,414 $ 4,869,378 $11,114,814 $ 30,484,945 $

Total Governmental Funds

1,672,991 $ 760,178 1,025,360 4,333 3,462,862 $

55,525,769 14,649,330 1,025,360 829,298 3,351,489 47,744 65,355 243,068 75,737,413

- $ 52,283 332,363 384,646

1,452,989 3,631,373 975,360 332,363 829,298 7,221,383

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued wages payable Due to other funds Other liabilities Deferred revenues

$

TOTAL LIABILITIES FUND BALANCES Reserved for capital projects Reserved for debt service Reserved for inventories Reserved for arbitrage Unreserved, Undesignated Unreserved, reported in other governmental funds Designated for Compensating Balance fund Designated for Insurance Recovery fund Designated for Early retirement incentive fund TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES

841,115 $ 78,544 $ 3,391,599 187,491 900,360 75,000 432,725 61,818 5,565,799 402,853 243,068 19,996,547

4,466,525

20,239,615

4,466,525

$ 25,805,414

$ 4,869,378

52,500 $ 334,755 387,255

10,727,559 -

10,727,559

480,830 $ 480,830 30,004,115 -

550,203 -

30,004,115 10,727,559 243,068 550,203 24,463,072

30,004,115

1,412,364 187,893 927,756 3,078,216

1,412,364 187,893 927,756 68,516,030

$11,114,814 $ 30,484,945 $

AMOUNTS REPORTED FOR GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS ARE DIFFERENT BECAUSE: Capital assets used in government activities are not financial resources and, therefore, are not reported as assets in governmental funds.

Cost of assets Accumulated depreciation

3,462,862

$ 258,111,480 (115,657,271)

Property taxes receivable will be collected this year, but are not available soon enough to pay for the current period’s expenditures and, therefore, are deferred in the funds.

Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bonds payable Premium on bonds payable Accrued interest on the bonds Arbitrage Early retirement incentive Compensated absences Other Post Employment Benefits Internal service funds are used by the District to charge the costs of health insurance benefits and short-term disability benefits for the employees of the District to the individual funds. The assets and liabilities of the internal service funds are included with government activities.

142,454,209 829,298

(69,350,000) (382,808) (453,516) (61,791) (594,182) (4,219,601) (2,793,545)

(77,855,443)

5,678,018 $ 139,622,112

TOTAL NET ASSETS--GOVERNMENTAL ACTIVITIES See notes to financial statements.

41

General Fund REVENUES Local sources Intermediate sources State sources Federal sources TOTAL REVENUES

$

Building Fund

Sinking Fund

Bond Fund

29,993,348 3,412,476 49,991,955 12,622,460 96,020,239

$ 3,680,327 3,680,327

$ 19,168,805 19,168,805

53,941,834 6,076,830 3,935,806 1,486,142 6,850,704 5,556,458 7,774,137 3,088,358

24,648 4,282,080 -

$

Other Total Governmental Governmental Funds Funds

149,911 149,911

$ 1,204,211 1,204,211

$ 54,196,602 3,412,476 49,991,955 12,622,460 120,223,493

52,500

2,434,808 86,958 411,511 127,281 145,318 939,561 1,191,703 110,043

596,034 90,872 25,280 50,119 83,023 12,190 43,711 9,120

56,972,676 6,254,660 4,372,597 1,663,542 7,079,045 6,532,857 13,291,631 3,260,021

EXPENDITURES Current Instruction Student Instructional staff General administration School administration Business Operations and maintenance Student transportation Non-instruction expenditures Child Nutrition Operations Community service operations Other Capital outlay Debt service Principal Interest TOTAL EXPENDITURES

330,582 2,957,984 1,230,120 -

-

-

53,421 12,060,833

1,938 6,487 -

385,941 2,964,471 1,230,120 12,060,833

93,228,955

4,306,728

16,150,000 2,088,125 18,290,625

17,561,437

918,774

16,150,000 2,088,125 134,306,519

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

2,791,284

OTHER FINANCING SOURCES (USES) Issuance of debt Premium on new issuance of debt Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE

878,180

(17,411,526)

285,437

(14,083,026)

151,642 -

504,554 -

204,356 (151,642)

22,500,000 (346,874)

(157,680)

22,500,000 204,356 656,196 (656,196)

151,642

504,554

52,714

22,153,126

(157,680)

22,704,356

(121,847)

930,894

4,741,600

127,757

8,621,330

2,942,926

FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR

(626,401)

$

17,296,689

4,588,372

9,796,665

25,262,515

2,950,459

59,894,700

20,239,615

$ 4,466,525

$ 10,727,559

$ 30,004,115

$ 3,078,216

$ 68,516,030

See notes to financial statements.

42

TOTAL NET CHANGE IN FUND BALANCES-GOVERNMENTAL FUNDS

$ 8,621,330

AMOUNTS REPORTED FOR GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES ARE DIFFERENT BECAUSE: Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures. However, for governmental activities, those costs are shown in the statement of net assets and are allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which depreciation is less than capital outlays in the period.

Depreciation expense Capital outlays Retirements and adjustments

(12,297,290) 14,594,641 (1,036,400)

1,260,951

Repayment of bond principal is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net assets and does not affect the statement of activities. Proceeds from the sale of new bonds is revenue in the governmental funds, but increases long-term liabilities in the statement of net assets and does not affect the statement of activities.

Principal payments Premium on issuance of bonds Amortization of bond premium Bond sale proceeds

16,150,000 (204,356) 46,844 (22,500,000)

(6,507,512)

Because some property taxes will not be collected for several months after the District’s fiscal year ends, they are not considered as "available" revenues in the governmental funds, instead, they are counted as deferred tax revenues.

They are, however, recorded as revenue in the statement of activities.

140,940

Internal service funds are used by the District to charge the costs of health insurance benefits and short-term disability benefits for the employees of the District to the individual funds. The changes in net assets of the internal service fund are included with governmental activities.

(49,886)

Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and, thus, requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.

68,515

Some expenses (arbitrage, compensated absences, early retirement incentives, and other post employment benefits) reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

(971,375)

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES See notes to financial statements.

43

$ 2,562,963

Variance

Final Budget

Original Budget REVENUES Local sources Intermediate sources State sources Federal sources

$

TOTAL REVENUES EXPENDITURES Instruction Support services Student Instructional staff General administration School administration Business Operation and maintenance Student transportation Non-instructional services Child Nutrition Operations Community services operations Other TOTAL EXPENDITURES EXCESS REVENUES (EXPENDITURES) FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR

$

30,387,660 3,343,600 49,978,803 13,741,729 97,451,792

$

30,387,660 3,343,600 49,978,803 13,741,729 97,451,792

Actual $

Over (Under)

30,123,251 3,404,525 49,989,255 11,821,690 95,338,721

$ (264,409) 60,925 10,452 (1,920,039) (2,113,071)

56,323,067

56,323,067

54,128,760

(2,194,307)

8,385,002 4,943,508 1,506,461 6,791,480 5,798,800 8,288,577 3,177,132

8,385,002 4,943,508 1,506,461 6,791,480 5,798,800 8,288,577 3,177,132

6,075,180 3,935,806 1,486,142 6,850,704 5,556,458 7,816,965 3,088,358

(2,309,821) (1,007,702) (20,319) 59,224 (242,341) (471,612) (88,774)

199,942 2,997,299 479,875 98,891,143

331,218 2,866,023 479,875 98,891,143

330,582 2,957,985 1,230,120 93,457,060

(636) 91,961 750,245 (5,434,083)

(1,439,351)

(1,439,351)

1,881,661

3,321,012

13,341,343

13,341,343

13,341,343

11,901,992

15,223,004

11,901,992

$

ADJUSTMENTS TO CONFORM WITH GAAP Receivables at end of year Inventory at end of year Worker's compensation Investments, change in market value

3,272,112 243,068 1,460,721 40,710

FUND BALANCE AT END OF YEAR (GAAP BASIS) See notes to financial statements.

44

$

20,239,615

(0) $ 3,321,012

Final Budget

Original Budget REVENUES Local sources Interest and Other

$ TOTAL REVENUES

EXPENDITURES Support services Instructional staff Business Operation and maintenance Other TOTAL EXPENDITURES

5,354,981 211,557 5,566,538

5,354,981 211,557 5,566,538

(1,632,286)

(1,632,286)

4,564,104

4,564,104

4,564,104

2,931,818

4,414,590

FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR

$

2,931,818

$

3,619,252 315,000 3,934,252

Actual

3,619,252 315,000 3,934,252

EXCESS REVENUES (EXPENDITURES)

$

$

3,652,660 504,554 4,157,214

45

$

4,466,525

33,408 189,554 222,962

3,150 11,092 (1,062,495) (211,557) (1,259,810)

(149,514)

31,580 20,355

See notes to financial statements.

$

3,150 11,092 4,292,486 4,306,728

ADJUSTMENTS TO CONFORM WITH GAAP Receivables, end of year Investments, change in market value FUND BALANCE AT END OF YEAR (GAAP BASIS)

Variance Over (Under)

1,482,772 0 $

1,482,772

Governmental Business-Type ActivitiesActivities Internal Enterprise Fund: Service Fund: Child Nutrition Employee Fund Insurance Fund ASSETS CURRENT ASSETS Cash and equivalents Investments Due from other governments Accrued interest receivable Inventories TOTAL CURRENT ASSETS

$ 2,230,606 506,785 85,764 2,889 915,981 3,742,025

$ 6,276,610 6,276,610

TOTAL NONCURRENT ASSETS

487,377 487,377

-

TOTAL ASSETS

$ 4,229,402

$ 6,276,610

$

$

NONCURRENT ASSETS Capital assets, net

LIABILITIES CURRENT LIABILITIES Accounts payable Liability for incurred claims Accrued wages payable Due to other funds TOTAL CURRENT LIABILITIES

63,522 63,961 50,000 177,483

TOTAL NET ASSETS

487,377 3,564,542 4,051,919

5,678,018 5,678,018

TOTAL LIABILITIES AND NET ASSETS

$ 4,229,402

$ 6,276,610

NET ASSETS Invested in capital assets Unrestricted

See notes to financial statements.

46

598,098 494 598,592

Governmental ActivitiesBusiness-Type Activities Internal Enterprise Fund: Service Fund: Child Nutrition Employee Fund Insurance Fund OPERATING REVENUES Meals Insurance contributions TOTAL OPERATING REVENUES

$ 2,245,971 2,245,971

OPERATING EXPENSES Salaries and wages Purchased and contracted services Food suppliers Commodities Depreciation Management fees Medical claims Other operating expenses TOTAL OPERATING EXPENSES

2,399,674 88,192 1,949,140 169,929 87,200 239,224 4,933,359

$

8,765,802 8,765,802

391,524 1,166,496 7,242,215 29,020 8,829,255

OPERATING INCOME (LOSS)

(2,687,388)

(63,453)

NONOPERATING REVENUES Interest income Federal and state grants Loss on disposal of assets Donated commodities TOTAL NONOPERATING REVENUES

15,721 3,574,351 (11,277) 177,270 3,756,065

13,567 13,567

CHANGES IN NET ASSETS

1,068,677

(49,886)

NET ASSETS AT BEGINNING OF YEAR

2,983,242

5,727,904

$ 4,051,919

$ 5,678,018

NET ASSETS AT END OF YEAR

See notes to financial statements.

47

Governmental Business-Type ActivitiesActivities Internal Enterprise Fund: Service Fund: Child Nutrition Employee Fund Insurance Fund CASH FLOWS FROM OPERATING ACTIVITIES Receipts from user charges Cash payments for insurance claims Cash payments to suppliers for goods and services Cash payments to employees for services NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

$ 2,245,971 (2,652,211) (2,449,194) (2,855,434)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital assets purchased NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES

(119,324) (119,324)

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Non-operating grants received NET CASH PROVIDED BY NON-CAPITAL FINANCING ACTIVITIES

-

518,215 (500,000) 14,120 32,335

1,000,000 15,434 1,015,434

604,448

1,017,479

1,626,158

5,259,131

$ 2,230,606

$ 6,276,610

$ (2,687,388)

$

NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating loss Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation Increase in inventories Increase in accounts payable Increase (Decrease) in accrued wages payable Increase in liability for incurred claims

-

3,546,871 3,546,871

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Purchases of investments Investment Income NET CASH PROVIDED BY INVESTING ACTIVITIES

CASH AND CASH EQUIVALENTS AT END OF YEAR

$ 8,765,802 (7,177,211) (1,195,516) (391,030) 2,045

87,200 (216,693) 10,967 (74,520) -

(63,453)

494 65,004

$ (2,855,434)

$

2,045

Commodities received from Department of Human Services

$

177,270

$

-

Commodities consumed

$

169,929

$

-

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES

See notes to financial statements.

48

PrivatePurpose Trust Fund ASSETS Cash and cash equivalents

Agency Fund

$

76,345

$

$

-

$

76,345

$ 2,387,091

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable Wages payable Due to student groups TOTAL LIABILITIES NET ASSETS Unrestricted/undesignated

See notes to financial statements.

49

$

4,286 1,794 2,381,011 $ 2,387,091

$

-

PrivatePurpose Trust Fund ADDITIONS Contributions Interest income

$ TOTAL ADDITIONS

10,855 186 11,041

TOTAL DEDUCTIONS

3,344 15,789 19,133

DEDUCTIONS Purchased and contracted services Other operating expenses

CHANGE IN NET ASSETS

(8,092) 84,437

NET ASSETS AT BEGINNING OF YEAR $

NET ASSETS AT END OF YEAR

See notes to financial statements.

50

76,345

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The financial statements of the Union Public Schools Independent District No. 9 (the “District”) have been prepared in conformity with accounting principles generally accepted in the United States of America 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. With respect to proprietary activities, the District has adopted GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting. The District has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) unless the guidance provided in the Codification conflict with or contradict GASB pronouncements. The more significant of the District’s accounting policies are described below.

Reporting Entity: The District is a corporate body for public purposes created under Title 70 of the Oklahoma statutes and, accordingly, is a separate entity for operating and financial reporting purposes.

The District is part of the public school system of Oklahoma under the general direction and control of the Board of Education and is financially dependent on the state of Oklahoma for support. The general operating authority for the public school system is the Oklahoma School Code contained in Title 70, Oklahoma statutes. As required by accounting principles generally accepted in the United States of America, the basic financial statements present the reporting entity which consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the District’s basic financial statements to be misleading or incomplete.

The District has presented the entities which comprise the reporting entity in the basic financial statements for 2010. The District has not identified any component units that should be included in the District’s reporting entity.

The governing body of the District is its Board of Education composed of five elected members. The appointed superintendent is the executive officer of the District.

Basic Financial Statements: The government-wide financial statements (i.e. the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the District.

For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues.

51

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Basic Financial Statements--Continued: Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the governmentwide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

Governmental Funds: Governmental funds are used to account for all or most of a government’s general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The District reports the following major governmental funds: General Fund The General Fund is used to account for all financial transactions except those required to be accounted for in another fund. Major revenue sources include local property taxes and state funding under the Foundation and Incentive Aid Program. Expenditures include all costs associated with the daily operations of the schools except for programs funded for building repairs and maintenance, school construction, and debt service on bonds and other long-term debt.

Building Fund The District’s Building Fund is a special revenue fund and consists of monies derived from property taxes levied for the purpose of erecting, remodeling, or repairing buildings and for purchasing furniture and equipment.

Sinking Fund The District’s sinking fund is a debt service fund and is used to account for the accumulation of financial resources for the payment of general long-term debt principal, interest and related costs.

The primary revenue sources are local property taxes levied specifically for debt service and interest earnings from temporary investments.

Bond Fund The District’s bond fund is a capital project fund and is used to account for the proceeds of bond sales to be used exclusively for acquiring school sites, constructing and equipping new school facilities, renovating existing facilities, and acquiring transportation equipment. This fund is also utilized to acquire books and other non-capitalizable items.

Other Governmental Funds The District’s other governmental funds include the Compensating Absence Fund, the Insurance Recovery Fund, the Early Retirement Incentive Fund, and the Arbitrage Fund, all of which are nonmajor governmental funds. The following is a brief description of each fund: •

•

The Compensating Absence Fund is used to account for payments made to severing employees when leaving the district to pay off any accrued vacation and sick leave amounts. The General, Building, and Child Nutrition funds make payments into this fund for their associated employees.

The Insurance Recovery Fund is used to account for payments from third party insurance companies on insurance claims made on the district’s behalf. The associated replacement costs of the damaged items are also accounted for in this fund.

52

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued Governmental Funds—Continued: Other Governmental Funds—Continued: • The Early Retirement Incentive Fund is used to account for payments to individuals participating in the early retirement program. The General fund makes payments for the full amount of expected costs over the life of the program in the year the program is approved.

• The Arbitrage Fund is used to account for any arbitrage tax liability penalties from the Internal Revenue Service on any outstanding bond fund proceeds according to arbitrage calculations performed by an outside consultant.

Proprietary Funds: Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the District (internal service funds). Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering foods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The District reports the following major proprietary funds: Child Nutrition Fund The District’s Child Nutrition Fund is an enterprise fund used to account for the operations of the child nutrition programs. In addition to meal ticket sales, revenue sources include federal and state grants for free and reduced meals.

Employee Insurance Fund The Employee Insurance Fund is an internal service fund used to account for the accumulation, recording and disbursing of District and participant contributions to the District’s self-insured medical, dental, and short-term disability programs.

Fiduciary Funds: Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of employees or other funds within the District. When these assets are held under the terms of a formal trust agreement, a pension trust fund, an investment trust fund or a private-purpose trust fund is used. Currently, the District utilizes only a private-purpose trust fund to account for activities of the Union School District Public Trust. Agency funds generally are used to account for assets that the District holds on behalf of others as their agent and do not involve measurement of results of operations. The District’s fiduciary funds have been excluded from the government-wide financial statements.

Private-Purpose Trust Fund The Union School District trust fund is a private-purpose trust fund used to account for donations received for the benefit of specified individuals associated with the District.

53

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued Fiduciary Funds –Continued: Agency Fund The Agency Fund consists of the School Activities fund. The School Activities fund is used to account for monies collected principally through fundraising efforts of the students and District sponsored groups. The administration is responsible, under the authority of the Board, for collecting, disbursing and accounting for these activity funds.

Basis of Accounting and Measurement Focus: The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. The economic resources measurement focus is not applicable to the agency funds and therefore have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Agency funds are reported in fiduciary fund financial statements and apply the accrual basis of accounting but do not have a measurement focus.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under modified accrual accounting. However, debt service expenditures, as well as expenditures related to compensated balances are recorded only when the payment is due.

Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Budgets and Budgetary Accounting: The District is required by state law to prepare an annual budget. A preliminary budget must be submitted to the Board of Education by December 31 for the fiscal year beginning the following July 1. If the preliminary budget requires an additional levy, the District must hold an election on the second Tuesday in February to approve the levy. If the preliminary budget does not require an additional levy, it becomes the legal budget. If an election is held and the taxes are approved, then the preliminary budget becomes the legal budget. If an election rejects the additional taxes, the District must adopt a budget within the approved tax rate.

A budget is legally adopted by the Board of Education for the General Fund and Building Fund that includes revenues and expenditures. These budgets are prepared on a cash basis for revenues and principally on the modified accrual basis for expenditures. Budgetary control is maintained by fund, function, and activity and budgeted expenditures may not exceed appropriation at the fund level.

Amendments may be made to the budget without approval by the governing body at the function and activity levels. Fund level budgetary amendments require approval of the governing body.

54

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued Budgets and Budgetary Accounting--Continued: In addition, encumbrance accounting is employed.

Under this system, purchase orders, contracts and other commitments for the expenditure of resources are recorded to reserve a portion of the applicable appropriation. At the end of the year, encumbered appropriations for which goods and/or services have not been received lapse. At the beginning of the next year, prior year encumbrances are reviewed and some are reestablished. There were no material encumbrances which lapsed at June 30, 2010, and were reinstated during fiscal year 2010, for the General Fund and Building Fund.

Assets, Liabilities and Net Assets Cash and Cash Equivalents: For purposes of the statement of cash flows, the District considers all cash on hand, demand deposits and highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents.

Investments: Investments consist of certificates of deposit with maturities greater than three months when purchased and United States Treasury securities and agencies. Investments are reflected at fair value.

Property Tax Revenues and Receivables: The District is authorized by state law to levy property taxes which consist of ad valorem taxes on real and personal property within the District. The county assessor, upon receipt of the certification of tax levies from the county excise board, extends the tax levies on the tax roll for submission to the county treasurer prior to October 1. The county treasurer must commence tax collection within fifteen days of receipt of the tax rolls. The first half of taxes is due prior to January 1. The second half is due prior to April 1.

If the first payment is not made timely, the entire tax becomes due and payable on January 2. The second half of the taxes becomes delinquent on April 1 of the year following the year of assessment. If not paid by the following October 1, the property is offered for sale for the amount of taxes due. The purchaser is issued a certificate of ownership; the original owner has two years to redeem the property by paying the taxes and penalty owed. If at the end of two years the original owner has not done so, the purchaser is issued a deed to the property.

Uncollected taxes assessed on valuations made each year are recorded in the District’s governmental fund financial statements. The delinquent taxes which are not collected within 60 days of the year end are recorded in the governmental fund financial statements as deferred revenue. Uncollectible personal and real property taxes are deemed to be immaterial because the real property can be sold for the amount of taxes due.

Inventories: Inventories in the governmental funds are carried at cost, using the first-in, first-out method, and are recorded as expenditures when consumed on the fund financial statements and as expenses when consumed on the government-wide financial statements. Inventories include fuel, instructional, janitorial, medical, and food service supplies. Cost of donated federal surplus commodities is based on values established by the federal government at the time of donation. Inventories for proprietary funds are stated at the lower of cost or market on a first-in, first-out method.

55

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Inventories at June 30, 2010 consist of the following: Governmental activities Instructional Janitorial Computer accessory Transport Medical Total governmental activities

$

Business-type activities Food service

15,781 188,963 2,622 33,859 1,843 243,068 915,981

$ 1,159,049 Capital Assets: All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.

Depreciation of all exhaustible capital assets is charged as an expense against their operations. Depreciation has been provided using the straight-line method over the following estimated useful lives: Useful Life Buildings and structures Improvements Equipment Furniture and fixtures

Capitalization Threshold

10-50 years 10-50 years 5-40 years 5-10 years

$ $ $ $

2,500 2,500 2,500 2,500

Compensated Balances: Liability for compensated balances attributable to the District’s governmental funds is recorded in the government-wide financial statements. It is the district’s policy that vacation is accrued in the current fiscal year to be used in the next fiscal year. If an employee separates employment, the district policy provides payment to the employee. Sick leave may also be accumulated up to 120 days. Upon retirement or severance of employment, the district policy provides payment to eligible employees for accumulated sick days.

This liability is intended to accommodate these payments.

Long-Term Debt: Long-term debt is recognized as a liability of the applicable governmental activities, businesstype activities or proprietary fund type in the statements of net assets.

Internal Balances: Amounts reported in the fund financial statements as interfund receivables and payables are eliminated in the entity-wide governmental and business-type activities columns of the statement of net assets, except for the net residual amounts due between governmental and business-type activities, which are presented as internal balances, as applicable.

56

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Due To/From Other Funds: Amounts owed between funds which are due within one year are reported as due to other funds.

Interfund Transactions: Interfund transactions are either loans or transfers. Loans are reported as receivables and payables as appropriate and are subject to elimination. Interfund transactions are presented as transfers. Transfers within governmental activities or within business-type activities are eliminated.

Fund Equity: In the fund financial statements, reserves represent those portions of fund balance not appropriable for expenditure or legally segregated for a specific future use. Designations of fund balance represent tentative management plans that are subject to change.

Inter-fund Receivables, Payables and Transfers: The composition of interfund balances as of June 30, 2010, was as follows: Receivable Fund Compensating Balance Compensating Balance Compensating Balance Early Retirement Incentive Total

Payable Fund General Building Child Nutrition General

Amount 275,000 75,000 50,000 625,360 $ 1,025,360 $

These represent amounts necessary to subsidize the Internal Service Fund and Early Retirement Incentive liability. These amounts are expected to be paid within the next fiscal year.

Inter-fund transfers, which represent transfers of interest earnings during the year ended June 30, 2010, were as follows:

Transfer In Sinking Arbitrage Fund Fund

Transfer Out General Fund Governmental activities Bond Fund Arbitrage Fund Sinking Fund Total

$

Building Fund

Comp Bal Fund

ERI Fund

151,643

$ 346,874 157,680 -

$

-

$

-

$

-

$

-

$ 151,643

$ 504,554

$

-

$

-

$

-

$

-

Revenues, Expenses and Expenditures State Revenues: Revenues from state sources for current operations are primarily governed by the state aid formula under the provisions of Article XVIII, Title 70, Oklahoma statutes. The Board of Education administers the allocation of state aid funds to school districts based on information accumulated from the districts.

57

NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Revenues, Expenses and Expenditures—Continued: State Revenues--Continued: After review and verification of reports and supporting documentation, the State Department of Education (the “Department”) may adjust allocations of money for errors disclosed by review.

Normally, such adjustments are treated as reductions or additions of revenue of the year when the adjustment was made.

The District receives revenue from the state to administer certain categorical educational programs. Board of Education rules require that revenue earmarked for these programs be expended only for the program for which the money is provided and require that the money not expended as of the close of the fiscal year be carried forward into the following year to be expended for the same categorical programs. The Department requires that categorical educational program revenues be accounted for in the General Fund.

Benefits Funded by the state of Oklahoma: For 2010, the state of Oklahoma contributed estimated payments benefiting District employees as follows: Plan

Amount

Teachers’ Retirement System of Oklahoma

$ 5,680,000

The District has recognized the revenues and expenditures related to this on-behalf payment in its basic financial statements. The District is legally responsible for these contributions.

Net Assets The government-wide and business-type fund financial statements utilize a net asset presentation. Net assets are categorized as investment in capital assets (net of related debt), restricted and unrestricted.

Investment in Capital Assets: Investment in capital assets (net of related debt) is intended to reflect the portion of net assets which are associated with non-liquid capital asset less outstanding capital asset related debt. The net related debt is debt less the outstanding liquid assets.

Restricted Net Assets: Restricted net assets are liquid assets (generated from revenues and net bond proceeds) which have third party (statutory, bond covenant or granting agency) limitations on their use. The District would typically use restricted net assets first, as appropriate opportunities arise, but reserve the right to selectively defer the use thereof to a future project or replacement equipment acquisition.

NOTE B--CASH AND INVESTMENTS Custodial Credit Risk: Custodial credit risk is the risk that in the event of failure of counterparty, the District will not be able to recover the value of its deposits or investments. Deposits are exposed to custodial credit risk if they are uninsured and uncollateralized. Investment securities are exposed to custodial credit risk if they are uninsured, are not registered in the name of the District, and are held by counterparty or the counterparty’s trust department but not in the name of the District.

58

NOTE B--CASH AND INVESTMENTS--Continued Custodial Credit Risk--Continued: The District’s policy requires that all deposits and investments in excess of amounts covered by federal deposit insurance be fully collateralized by the entity holding the deposits or investments. As of June 30, 2010, all of the Districts deposits and investments were either covered by federal deposit insurance or were fully collateralized.

Deposits: The District had deposits at financial institutions with a carrying amount of approximately $64,995,000 at June 30, 2010. The bank balance of these deposits at June 30, 2010 was approximately $70,787,000.

Credit Risk: Fixed-income securities are subject to credit risk. Credit quality rating is one method of assessing the ability of the issuer to meet its obligation. The District’s investment policy requires that, except for United States Treasury securities, the District’s investment portfolio will be diversified to avoid incurring undue concentration in securities of one type. The District’s policy also requires that all deposits and investments in excess of amounts covered by federal deposit insurance be fully collateralized by the entity holding the deposits or investments. Due to the unstable economic climate and extremely low available interest rates for investing, investments were purchased to obtain the highest possible interest rate. Therefore, the investment portfolio consisted of $15,000,000 in federal home loan investments with a variable coupon rate ranging from 1-2%.

Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The District’s investment policy limits the duration of fixed-income securities to a maximum maturity from the date of purchase of sixty months, provided that sufficient liquidity is available to meet the District’s major cash outlays. The District’s investment committee and Board of Education monitor the District’s investment performance on an ongoing basis to limit the District’s interest rate risk. As of June 30, 2010, all of the District’s investments were scheduled to mature in 5 years with callable dates within the next 18 months. In light of the recent economic downfall, the District expects all investments to be called.

NOTE C—RECEIVABLES Receivables at June 30, 2010, all due within one year, for the government’s individual major funds, internal service and fiduciary funds in the aggregate, are as follows:

General

Building Fund

Receivables Interest $ 17,333 $ Due from other governments 3,207,035 Other 47,744 Property taxes-432,725 delinquent Total

$ 3,704,837 $

Sinking Fund

Other Child Government Nutrition Funds Fund

Bond Fund

8,667 $ 13,000 $ 22,022 $

4,333 $

Early Retirement Incentive

2,889 $

- $

Total

68,244

22,913 -

121,541 -

-

-

85,764 -

-

3,437,253 47,744

61,818

334,755

-

-

-

-

829,298

93,398 $ 469,296 $ 22,022 $

4,333 $

These receivables are expected to be collected within the next fiscal year.

59

88,653 $

- $ 4,382,539

NOTE D--CAPITAL ASSETS A summary of changes in capital assets for the year ended June 30, 2010, follows: Balance June 30, 2009 Governmental activities Capital assets not being depreciated Land Construction in-progress General government Total capital assets not being depreciated

$

Capital assets being depreciated Land improvements Buildings Machinery, equipment and vehicles Total capital assets being depreciated Less accumulated depreciation for: Land improvements Buildings Machinery, equipment and vehicles Total accumulated depreciation Total capital assets being depreciated, net Governmental activities Capital assets, net Summary of Governmental Activities Capital Assets Total capital assets Less accumulated depreciation Capital assets, net

14,293,205

Additions

$

Deductions

-

$

Balance June 30, 2010

Reclassifications & Adjustments

-

$

-

$

14,293,205

8,355,207

11,315,640

-

(15,171,875)

4,498,972

22,648,412

11,315,640

-

(15,171,875)

18,792,177

4,215,600 180,688,146 38,534,159

30,118 129,588 3,119,295

(3,500) (78,557) (2,487,421)

2,901,316 12,270,559 -

7,143,534 193,009,736 39,166,033

223,437,905

3,279,001

(2,569,478)

15,171,875

239,319,303

(1,220,251) (78,745,504) (24,927,304) (104,893,059)

(223,295) (5,954,998) (6,118,997) (12,297,290)

1,533,078 1,533,078

118,544,846

(9,018,289)

(1,036,400)

-

(1,443,546) (84,700,502) (29,513,223) (115,657,271)

15,171,875

123,662,032

$

141,193,258

$

2,297,351

$ (1,036,400)

$

-

$

142,454,209

$

246,086,317 (104,893,059)

$

14,594,641 (12,297,290)

$ (2,569,478) 1,533,078

$

-

$

258,111,480 (115,657,271)

$

141,193,258

$

2,297,351

$ (1,036,400)

$

-

$

142,454,209

$

2,123,088

$

119,776

$

$

-

$

2,172,502

Business type activities Capital assets being depreciated Machinery, equipment and vehicles Less accumulated depreciation for Machinery, equipment and vehicles Total capital assets being depreciated, net

$

466,530

$

60

32,576

-

58,633

(87,200)

(1,656,558)

(70,362)

$

(11,729)

$

-

(1,685,125) $

487,377

NOTE D--CAPITAL ASSETS--Continued Depreciation expense was charged to functions of the District as follows: Governmental Activities

Business-Type Activities

Instruction $ 9,635,835 Pupil services 194,780 Instructional services 255,737 General administration 60,096 School administration 310,411 Business services 597,294 Operations and maintenance services 368,264 Transportation services 786,665 Community services 88,208

Child nutrition fund

$

87,200

$12,297,290

NOTE E--LONG-TERM DEBT State statutes prohibit the District from becoming indebted in an amount exceeding the revenue to be received for any fiscal year without approval by the District’s voters. Bond issues have been approved by the voters and issued by the District for various capital improvements. State law requires these bonds be fully paid serially within 25 years from the date of issue.

Long-term debt of the District consists of bonds payable, obligations for compensated balances, a liability for the early retirement incentive plan and a liability for arbitrage earnings on outstanding bond issues. Debt service requirements for bonds are payable solely from the fund balance and future revenues of the sinking fund. In prior years, the liability for compensated balances has been primarily liquidated from the fund balance of the General Fund.

The following is a summary of long-term debt activity of the District for the year ended June 30, 2010:

Governmental activities Bonds payable Premium on debt issuance Compensated absences Early retirement incentive Arbitrage rebate OPEB

Additions

$ 63,000,000 225,296 4,080,948 725,647 283,082 1,940,431

$ 22,500,000 204,356 443,774 625,360 1,314,948

$ (16,150,000) $ 69,350,000 (46,844) 382,808 (305,121) 4,219,601 (424,462) 926,545 (221,291) 61,791 (461,834) 2,793,545

$ 17,900,000 87,715 1,391,264 332,363 -

$ 70,255,404

$ 25,088,438

$ (17,609,552) $ 77,734,290

$ 19,711,342

61

Deductions

2010

Due in One Year

2009

NOTE E--LONG-TERM DEBT--Continued A brief description of the outstanding general obligation bond issues at June 30, 2010, is set forth below: Amount Outstanding Independent School District No. 9 Building Bonds Series 2006, original issue $15,200,000, interest rate of 4%, due in installments of $3,800,000 annually, final payment of $3,800,000 due April 1, 2011.

$3,800,000

Independent School District No. 9 Building Bonds Series 2007, original issue $17,000,000, interest rate of 4%, due in installments of $4,250,000 annually, final payment of $4,250,000 due April 1, 2012.

8,500,000

Independent School District No. 9 Building Bonds Series 2008, original issue $19,400,000, interest rate of 3% to 3.25%, due in installments of $4,850,000 annually, final payment of $4,850,000 due April 1, 2013.

14,550,000

Independent School District No. 9 Building Bonds Series 2009, original issue $20,000,000, interest rate of 2.5% to 3.0% due in installments of $5,000,000 annually, final payment of $5,000,000 due April 1, 2014.

20,000,000

Independent School District No. 9 Building Bonds Series 2010, original issue $22,500,000, interest rate of .25% to 2.0% due in installments of $5,625,000 annually, final payment of $5,625,000 due April 1, 2015.

22,500,000 $69,350,000

Maturities of long-term debt are as follows:

Principal Years ending June 30, 2011 2012 2013 2014 2015

Interest

Total

$17,900,000 $1,814,063 $19,714,063 19,725,000 1,221,563 20,946,563 15,475,000 767,000 16,242,000 10,625,000 375,000 11,000,000 5,625,000 112,500 5,737,500 $ 69,350,000 $ 4,290,126 $ 73,640,126

Interest on general long-term debt incurred during the current year was approximately $2,088,000.

62

NOTE F--EARLY RETIREMENT INCENTIVES In 1994, the District revised its early retirement incentive plan whereby new or additional participants are paid stipends ranging from $300 to $700 per month plus health and life insurance coverage. An eligible participant is one who qualifies for service retirement benefits through the Teachers’ Retirement System of Oklahoma, has completed one (1) full year at the top step of the previous year’s salary schedule, has ten years experience as an employee of the District, and has received Board approval for participation in the plan. All benefits terminate in the event of death, after two or five years of receiving benefits from the plan or, if the retiree accepts employment as a certified employee with any other school district in the state of Oklahoma. As of June 30, 2010, there are 65 participants in the plan.

The District has funded this liability with available General Fund assets and has recorded the liability in the statement of net assets. Amounts accrued with respect to employees electing to retire under this plan as of June 30, 2010 was approximately $927,000.

NOTE G--RISK MANAGEMENT Effective December 1, 1988, the District began a self-insured medical program for District employees and their eligible dependents. This program is administered by an independent third party and covers medical and dental expenses for employees with dependent coverage available at additional charges. In order to mitigate the risk associated with this program, the District has purchased individual “stop loss” insurance of $150,000 and aggregate “stop loss” insurance of approximately $9,670,000 plus 100% of employee and District premium contributions. Monthly, the District contributes $22 per employee for the program, which covers expected claims, stop loss coverage, cost containment provisions and administrative costs. A summary of premiums collected from the District and employees and claims paid from July 1, 2009 through June 30, 2010 is set forth below: District and employee premiums

$ 8,297,753

Claims and changes in estimates Insurance and administrative costs

$ 7,018,408 1,358,961

Total claims incurred and other costs

$ 8,377,369

63

NOTE G--RISK MANAGEMENT--Continued A summary of changes in the aggregate liability for claims in the current and the two prior fiscal years are set forth below:

Liability at Beginning of Fiscal Year 2008 2009 2010

$

Claims and Changes in Estimates

584,045 $ 357,074 533,094

Claim Payments

6,659,853 $ (6,886,824) $ 6,382,242 (6,206,222) 7,018,408 (6,953,404)

Liability at End of Fiscal Year 357,074 533,094 598,098

The claims liability shown above includes the District’s estimated liability for medical and dental claims incurred but not reported to the District (or the administrator) as of June 30, 2010. The activity for this program is reflected in the accompanying fund financial statements in the internal service fund. There were no significant reductions in coverage from that in prior years and settlements have not exceeded insurance coverage for each of the past three fiscal years.

The District purchases commercial insurance for all other types of risk including, but not limited to, property, casualty, workers’ compensation, vehicle, and employee life. Settlements have not exceeded insurance coverage for each of the past three fiscal years.

The full amount of the claims liability at June 30, 2010 is expected to be paid during fiscal year 2011.

As such, the full liability of $598,098 has been classified as a current liability in the accompanying June 30, 2010 financial statements.

NOTE H--EMPLOYEE RETIREMENT SYSTEM The District participates in the state-administered Teachers’ Retirement System of Oklahoma (the “System”), which is a cost-sharing, multiple-employer public employee retirement system (“PERS”).

Under the System, contributions are made by the District, the state of Oklahoma, and the participating employees. Participation is required for all teachers, and other certified employees and is optional for all other regular employees of public educational institutions who work at least 20 hours per week. A participant’s date of membership is the date of the first contribution made to the System. The System is administered by a board of trustees which acts as a fiduciary for investing the funds and governing the administration of the System. The District has no responsibility or authority for the operation and administration of the System nor has it any liability, except for the current contribution requirements.

64

NOTE H--EMPLOYEE RETIREMENT SYSTEM--Continued The System provides defined retirement benefits based on members’ final compensation, age, and term of service. In addition, the retirement program provides for benefits upon disability and to survivors upon the death of eligible members. Title 70 O. S. Sec. 17-105 defines all retirement benefits. The authority to establish and amend benefit provisions rests with the legislature of the state of Oklahoma.

The contribution rates for the District, which are not actuarially determined, and its employees are established by state statute and applied to the employee’s earnings plus employer-paid fringe benefits.

The District was required to contribute 9% for the period July through December 2009 and 9.5% for the period January through June 2010 of applicable compensation for the year ended June 30, 2010.

Participating members are required to contribute 7.0% of regular annual compensation not to exceed members’ maximum contribution.

The compensation for employees covered by the System for the year ended June 30, 2010 was approximately $54,470,000; the District’s total compensation was approximately $85,810,000. Total contributions by the District made during the year ended June 30, 2010 amounted to approximately $5,947,000. These contributions represented approximately 11% of covered compensation and represent approximately 7% of total contributions to the System. The District has contributed its required contribution to the System.

Trend information for the District’s annual required contributions is as follows: Teachers’ Retirement System of Oklahoma Required Percentage Contribution Contributed Fiscal year 2006 2007 2008 2009 2010

$ $ $ $ $

3,417,884 4,101,057 4,806,810 5,389,432 5,947,033

100% 100% 100% 100% 100%

Separately issued financial statements of the System can be obtained by contacting the Teachers’ Retirement System of Oklahoma at P.O. Box 53524, Oklahoma City, Oklahoma 73152, by calling (405) 521-2387, or at the TRS website at www.trs.state.ok.us. These stand-alone financial statements can be useful in assessing the System’s accumulation of sufficient assets to pay pension benefits as they become due and in reviewing historical trend information.

65

NOTE I--OTHER POST-EMPLOYMENT INSURANCE BENEFITS-HEALTH AND DENTAL INSURANCE PROGRAM District employees have the option of continuing health, vision and dental coverage at their own expense upon retirement if they are covered by an employment contract that provides for postretirement benefits and who meets one of the following requirements: • • • •

Age 55 with 5 years of service Rule of 80 if hired before July 1, 1992 (combined age and service years) Rule of 90 if hired after July 1, 1992 (combined age and service years) 10 years of service

Retired employees may pay the same premium as the District pays for current employees.

Funding Policy - Contribution requirements of the District are established and may be amended by the Board of Education. All contributions are made by the retirees. Benefits are funded under a “pay as you go” funding method; however expenses are recorded as benefits accumulate.

Annual OPEB cost and net OPEB obligation - The District’s annual OPEB cost is calculated based on the annual required contribution of the District (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty (30) years.

The following table shows the components of the District’s net OPEB obligation for the year, the amount actually contributed, and changes in the District’s net OPEB obligation: Year Ended June 30, 2010 Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution

$

Annual OPEB cost (expense) Contributions made

1,349,546 77,617 (112,215) 1,314,948 (461,834)

Increase in net OPEB obligation

853,114

Net OPEB obligation at beginning of year Net OPEB obligation at end of year

1,940,431 $

2,793,545

The net OPEB obligation at June 30, 2010 is included in the government-wide Statement of Net Assets as a non-current obligation.

This obligation is currently unfunded. The annual required contribution for 2010 was determined as part of an actuarial valuation on July 1, 2009, using the projected unit credit actuarial cost method with 30year amortization of the unfunded liability.

66

NOTE I--OTHER POST-EMPLOYMENT INSURANCE BENEFITS-HEALTH AND DENTAL INSURANCE PROGRAM--Continued The actuarial assumptions included: (a) discount rate of 4% per year compounded annually, (b) salary increases of 4% per year (c) age-based monthly retiree medical costs (d) varying participation rates for active and inactive employees, with adjustments made for persons who terminate prior to retirement (e) health trend rates increasing 5%-10% annually Trend Information GASB 45 was not implemented until the 2008 fiscal year; therefore, only three years of trend information is available.

Year Ended June 30 2008 2009 2010

Net OPEB Cost $ $ $

% of APC Contributed

1,450,744 1,450,744 1,314,948

29.06% 37.19% 35.12%

Net OPEB Obligation $ $ $

1,029,175 1,940,431 2,793,545

Funded Status and Funding Progress The funded status of the plan as of the most recent actuarial report dated July 1, 2009 is as follows:

A ctuarial accrued liability (A A L) A ctuarial value of plan assets

$ 12,203,144 -

Unfunded actuarial accrued liability (UA A L)

$ 12,203,144

Funded ratio (actuarial value of plan assets/ A A L) Covered payroll (active plan members) UA A L as a percentage of covered payroll

0.0% $ 54,455,315 22.41%

Actuarial valuation of an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, will over time provide multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

67

NOTE J--COMMITMENTS AND CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the District believes such amounts, if any, would be immaterial.

As of June 30, 2010, the District had outstanding commitments (contracts and purchase orders) of approximately $1,897,000, primarily for construction projects and equipment.

On occasion, the District is party to legal proceedings which arise in the normal course of operations.

Any liability resulting from these proceedings is not believed, by management, to have a material effect on the financial statements.

NOTE K--NEW PRONOUNCEMENTS Governmental Accounting Standards Board (“GASB”) Statement No, 54, Fund Balance Reporting and Governmental Fund Type, which is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2010.

Governmental Accounting Standards Board (“GASB”) Statement No, 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, which is to address issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (“OPEB”) plans. The statement also clarifies that when actually determined OPEB measures are reported by an agent multiple-employer OPEB plan and its participating employers, those measures should be determined as of common date and at a minimum frequency to satisfy the agent multiple-employer OPEB plan’s financial reporting requirements.

The provisions of this statement relating to the use and reporting of the alternative measurement method were effective upon the issuance of the statement in December 2009. All other provisions are effective for financial statements for periods beginning after June 15, 2011.

Governmental Accounting Standards Board (“GASB”) Statement No, 59, Financial Instruments Omnibus, which is to update and improve existing standards regarding financial reporting and disclosure requirements of certain financial instruments and external investment pools for which significant issues have been identified in practice. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2010.

The District’s management is in the process of determining what, if any, impact the above pronouncements will have on the District’s financial reporting process.

68

A ctuarial Valuation Date July 1, 2009 July 1, 2007

A ctuarial Value of A ssets (a) $

12,203,144 13,072,990

A ctuarial A ccrued Liability (A A L) (b) $

Unfunded A A L (UA A L) (b-a) -

$

12,203,144 13,072,990

The actuarial liability is based on the projected unit credit method.

69

Funded Ratio (a/ b) 0.0% $ 0.0%

Covered Payroll (c) 54,455,315 42,509,871

UA A L as a percentage of Covered Payroll (b-a)/ (c) 22.41% 35.75%

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70

Compensating Balance Fund ASSETS Cash and cash equivalents Investments Due from other funds Property taxes-delinquent Due from other governments Other Accrued interest Inventories

$

TOTAL ASSETS

$

535,142 506,785 400,000 2,889 1,444,816

Insurance Recovery Fund

Early Retirement Incentive Fund

$ 187,893 $ 187,893

$

$

$

$

Total Nonmajor Governmental Funds

Arbitrage Fund

399,753 253,393 625,360 1,444 1,279,950

$

19,831 332,363 352,194

$

$

550,203 550,203

$

$

1,672,991 760,178 1,025,360 4,333 3,462,862

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued wages payable Due to other funds Other liabilities Liability for claims incurred Deferred revenues

$

TOTAL LIABILITIES FUND BALANCES Reserved for capital projects Reserved for debt service Reserved for inventories Reserved for arbitrage Unreserved Undesignated Unreserved, reported in other governmental funds Designated for Compensating Balance fund Designated for Insurance Recovery fund Designated for Early Retirement Incentive fund TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES

32,452 32,452

-

-

-

-

550,203

-

-

-

-

927,756 927,756

550,203

1,412,364

$

1,412,364

187,893 187,893

1,444,816

$ 187,893

71

-

$

1,279,950

$

550,203

$

52,283 332,363 384,646 550,203 1,412,364 187,893 927,756 3,078,216

$

3,462,862

Compensating Balance Fund REVENUES Local sources Intermediate sources State sources Federal sources TOTAL REVENUES

$

Insurance Recovery Fund

Early Retirement Incentive Fund

411,551 411,551

$ 159,757 159,757

211,959 1,488 8,348 20,577 12,190 34,374 7,760

79,201 460 9,337 1,360

$

631,371 631,371

Total Nonmajor Governmental Funds

Arbitrage Fund $

1,532 1,532

$ 1,204,211 1,204,211

304,874 89,384 16,472 62,446 -

50,119 -

596,034 90,872 25,280 50,119 83,023 12,190 43,711 9,120

EXPENDITURES Current Instruction Student Instructional staff General administration School administration Business Operations and maintenance Student transportation Non-instruction expenditures Child Nutrition Operations Community service operations Other Capital outlay Debt service Principal Interest TOTAL EXPENDITURES

1,938 6,487 -

-

-

-

1,938 6,487 -

305,121

90,358

473,176

50,119

918,774

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES

106,430

69,399

158,195

(48,587)

285,437

OTHER FINANCING SOURCES (USES) Issuance of debt Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES)

-

-

-

(157,680)

(157,680)

-

-

-

(157,680)

(157,680)

NET CHANGE IN FUND BALANCE

106,430

69,399

158,195

(206,267)

127,757

1,305,934

118,494

769,561

756,470

2,950,459

1,412,364

$ 187,893

550,203

$ 3,078,216

FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR

$

72

$

927,756

$

Balance June 30, 2009 HIGH SCHOOL TOTAL INTERMEDIATE HIGH TOTAL

$

351,880

Additions $

448,704

Deductions

Balance June 30, 2010

Adjustments

$ (419,867) $

5,207

$

80,389

102,287

(93,151)

5,260

3,971

(5,058)

72

98,041

66,293

(63,658)

(72)

100,604

SIXTH/SEVENTH GRADE CENTER TOTAL

131,408

108,021

(106,370)

(1,476)

131,583

ELEMENTARY ACTIVITY FUNDS TOTAL

300,484

397,977

(401,537)

1,453

298,377

STUDENT CLUBS TOTAL

293,688

440,846

(359,808)

4,580

379,306

ADMINISTRATIVE TOTAL

995,403

263,319

(257,511)

(6,828)

994,383

$ 2,256,553

$ 1,831,418

$ (1,706,960) $

-

$

2,381,011

ASSETS Cash

$ 2,272,813

$ 1,821,238

$ (1,706,960) $

-

$

2,387,091

LIABILITIES Accounts payable and accrued liabilities Funds held for student activities TOTAL LIABILITIES

16,260 2,256,553 $ 2,272,813

6,080 1,831,418 $ 1,837,498

(16,260) (1,706,960) $ (1,723,220) $

-

$

6,080 2,381,011 2,387,091

ALTERNATIVE TOTAL EIGHTH GRADE CENTER TOTAL

TOTAL FUNDS HELD FOR STUDENT ACTIVITIES

(2,936)

385,924 86,589 4,245

SUMMARY-ACTIVITY FUNDS

See independent auditors' report

73

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74

2010 GOVERNMENTAL FUNDS CAPITAL ASSETS Land Buildings Improvements other than buildings Machinery and equipment Construction-in-progress TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS

INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE General fund Special revenue fund Capital projects fund Donations Other sources Unidentified source TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS

See independent auditors' report

75

2009

$

14,293,205 193,009,736 7,143,534 39,166,033 4,498,972

$

14,293,205 180,688,146 4,215,600 38,534,159 8,355,207

$

258,111,480

$ 246,086,317

$

3,037,383 14,656,612 240,177,614 74,651 165,220

$

$

258,111,480

$ 246,086,317

3,180,816 15,315,943 227,412,191 2,149 175,218

Land GENERAL GOVERNMENT Instruction Student Instructional support General administration School administration Business Operations and maintenance of plant services Transportation Support services-central Other support services Non-instructional Other-unclassified TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS

Buildings

Improvements Other Than Buildings

Machinery and Equipment

Construction In-Progress

Total

$ 14,293,205 $ 191,531,105 $ 167,785 1,191,959 82,066 36,821 -

7,069,070 $ 17,571,917 $ 358,280 1,327,070 336,722 1,396,754 29,980 3,585,163 7,073 3,016,654 37,411 6,544,826 3,154,326 36,264 (36,821) 1,874,878

4,498,972 $ -

234,964,269 358,280 1,327,070 336,722 1,396,754 3,782,928 4,215,686 6,582,237 3,236,392 36,264 1,874,878

$ 14,293,205

7,143,534

4,498,972

258,111,480

$ 193,009,736

See independent auditors' report

76

$

$ 39,166,033

$

$

Governmental Funds Capital Assets June 30, 2009

Additions

GENERAL GOVERNMENT Instruction Student Instructional support General administration School administration Business Operations and maintenance of plant services Transportation Support services-central Other support services Non-instructional Other-unclassified

$ 221,380,013 182,267 970,757 196,372 1,576,109 3,787,551 4,115,494 9,390,560 2,691,389 27,859 450,251 1,317,695

$ 12,946,111 54,192 89,587 51,784 34,828 652,981 661,475 103,684 -

$

1,251,922 $ 125,232 279,595 88,566 516,698 (499,957) (525,328) (2,907,890) 545,003 8,405 (450,251) 557,183

TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS

$ 246,086,317

$ 14,594,642

$

(1,010,822) $ (1,558,657) $ 258,111,480

See independent auditors' report

77

Reclassifications & Adjustments

Deductions

Governmental Funds Capital Assets June 30, 2010

(613,777) $ 234,964,269 (3,411) 358,280 (12,869) 1,327,070 336,722 (730,881) 1,396,754 (157,647) 3,782,928 (35,955) 4,215,686 (4,117) 6,582,237 3,236,392 36,264 1,874,878

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78

Table of Contents Contents

Page

Financial Trends

………… ……………………………………………………………………………… 81-86

These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time.

Revenue Capacity

………… ……………………………………………………………………………… 87-90

These schedules contain information to help the reader assess the District's most significant local revenue source, the property tax.

Debt Capacity

………… ……………………………………………………………………………… 91-94

These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability toissue additional the District's ability to issue additional debt in the future.

Demographic and Economic Information

……………………………………………………… 95-98

These schedules offer demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place.

Operating Information

……………………………………………………………………………… 99-106

These schedules contain service and other data to help the reader understand how the information in the District's financial report relates to the services the District provides and the activities it performs.

Sources:

Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports (CAFR) for the relevant year. The District implemented GASB Statement 34 in the fiscal year ended June 30 ,2001. Schedules presenting districtwide information include information beginning in that year.

79

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80

Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting)

Fiscal Year 2001

2002

2003

2004

2005a

2006a

2007

2008

2009

2010

Governmental activities Invested in capital assets, net of related debt Restricted for debt service Restricted for capital projects Unrestricted Total governmental activities net assets

54,110,710 9,531,619 12,469,231 76,111,560

67,930,581 8,558,294 2,267,467 4,492,839 83,249,181

64,878,194 9,223,955 2,389,243 14,849,104 91,340,496

71,024,348 10,422,859 1,845,081 21,233,659 104,525,947

97,454,343 10,892,944 1,827,460 5,076,513 115,251,260

103,285,413 9,832,578 1,947,000 8,271,458 123,336,449

106,278,216 8,962,506 2,669,637 12,659,259 130,569,618

118,532,935 8,730,473 2,590,181 2,671,407 132,524,996

121,638,825 9,796,665 2,184,657 3,439,002 137,059,149

119,327,836 10,727,559 1,968,124 7,598,593 139,622,112

Business-type activities Invested in capital assets, net of related debt Restricted for debt service Restricted for capital projects Unrestricted Total business-type activities net assets

77,183 1,185,097 1,262,280

60,354 1,170,700 1,231,054

44,817 1,330,385 1,375,202

136,747 1,564,776 1,701,523

165,884 1,816,424 1,982,309

248,538 1,782,505 2,031,043

517,708 1,991,887 2,509,595

501,205 1,983,593 2,484,798

466,530 2,516,712 2,983,242

487,377 3,564,542 4,051,919

District-wide Invested in capital assets, net of related debt Restricted for debt service Restricted for capital projects Unrestricted Total district net assets

54,187,893 9,531,619 13,654,328 77,373,840

67,990,935 8,558,294 2,267,467 5,663,539 84,480,235

64,923,011 9,223,955 2,389,243 16,179,489 92,715,698

71,161,095 10,422,859 1,845,081 22,798,435 106,227,470

97,620,227 10,892,944 1,827,460 6,892,937 117,233,569

103,533,951 9,832,578 1,947,000 10,053,963 125,367,492

106,795,924 8,962,506 2,669,637 14,651,146 133,079,213

119,034,140 8,730,473 2,590,181 4,655,000 135,009,794

122,105,355 9,796,665 2,184,657 5,955,714 140,042,391

119,815,213 10,727,559 1,968,124 11,163,135 143,674,031

81

Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2001 Expenses Governmental activities Instruction Regular instruction Special education instruction Vocational education Other instruction

2002

2003

2004

2005

2006

2007a

2008b

2009

2010

33,199,806 6,238,789 195,593 2,078,552

35,457,130 3,629,908 499,598 2,119,542

36,889,541 3,545,854 506,460 2,123,421

30,298,793 4,688,315 500,456 4,076,391

37,806,776 4,665,926 461,209 3,683,358

38,283,502 5,593,513 615,074 4,642,999

42,667,523 6,178,927 633,877 5,168,656

45,516,291 6,793,935 703,858 6,134,777

49,629,935 7,275,708 793,237 6,152,120

50,200,357 7,842,242 870,154 7,668,736

6,345,355 4,408,668 1,802,455 7,688,170 6,937,956 13,334,079 3,771,826 367,950 2,801,866 513,383 1,608,283 113,430,991

6,613,037 4,658,150 1,702,208 7,582,320 6,633,048 13,497,499 4,040,919 390,931 3,116,828 3,028,438 117,844,866

Support Services Pupil services Instructional staff services General administration services School administration services Business services Operations and maintenance services Pupil transportation services Central services Other support services Community services Capital Outlay Interest on long-term debt Loss on disposal of capital assets Unallocated depreciation Total governmental activities expenses

3,592,764 2,054,701 752,589 4,154,638 1,711,679 9,128,147 2,271,203 1,766,662 195,539 795,581

3,859,569 2,407,173 857,008 4,217,173 1,731,372 8,513,675 2,144,481 2,724,745 473,063 867,033

4,178,773 2,623,839 892,275 3,996,982 1,573,293 8,893,176 2,439,055 2,027,362 192,854 780,448

4,508,084 2,696,354 697,079 4,896,862 4,268,201 9,269,540 2,570,888 31,801 877,860

4,185,963 2,915,880 1,095,275 5,139,160 4,225,520 10,975,680 2,584,087 7,410 803,775

4,440,099 3,541,667 1,002,064 6,023,236 5,121,989 12,288,840 2,374,353 582,250 646,307

5,290,042 3,776,075 1,248,323 6,869,205 5,970,849 13,011,254 2,876,195 297,187 789,528

2,737,291 645,449 71,518,983

2,357,464 24,744 71,883,678

2,404,350 69,424 73,137,107

1,898,043 29,319 71,307,986

1,848,492 85,140 80,483,651

1,882,922 87,038,815

2,319,704 15,477 97,112,822

6,518,814 4,165,969 1,578,563 7,440,213 6,333,400 13,113,272 3,649,174 252,566 974,305 2,085,460 1,970,686 107,231,283

Business-type activities Food service Total business-type activities expense Total district expenses

2,553,115 2,553,115 74,072,098

2,644,997 2,644,997 74,528,675

2,595,990 2,595,990 75,733,097

2,720,792 2,720,792 74,028,778

3,030,259 3,030,259 83,513,910

3,697,466 3,697,466 90,736,281

3,845,046 3,845,046 100,957,868

4,504,683 4,504,683 111,735,966

4,634,620 4,634,620 118,065,611

4,933,359 4,933,359 122,778,225

Program Revenues Governmental activities Charges for services Regular instruction Operations and maintenance services Pupil transportation services Community services Other support services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues

1,075,757 405,412 50,383 9,938 7,808,999 11,645 9,362,134

332,549 354,810 49,942 694,879 8,534,234 3,768 9,970,182

387,926 266,539 49,942 677,983 9,288,866 10,671,256

502,743 272,044 49,941 699,611 10,365,374 11,889,713

375,770 486,644 46,846 625,746 12,961,205 14,496,211

447,137 420,672 50,030 699,034 11,081,996 12,698,869

427,645 391,535 49,699 890,915 14,595,393 16,355,187

370,303 494,775 49,829 995,745 14,603,862 16,514,514

366,907 546,323 60,810 1,131,972 20,344,841 22,450,853

295,758 413,423 86,613 1,272,571 25,206,184 27,274,549

Business-type activities Charges for services Food service Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total district program revenues

1,523,360 855,698 51,245 2,430,303 11,792,437

1,607,549 962,505 1,552 2,571,606 12,541,788

1,545,665 1,122,390 30,834 2,698,889 13,370,145

1,627,587 1,265,653 111,519 3,004,759 14,894,472

1,633,670 1,590,718 45,600 3,269,988 17,766,199

1,670,481 1,856,414 114,762 3,641,657 16,340,526

1,824,667 2,423,226 4,247,893 20,603,080

1,846,537 2,577,540 4,424,077 20,938,591

2,100,244 3,019,310 5,119,554 27,570,407

2,245,971 3,751,621 5,997,592 33,272,141

82

Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2001 Net (Expense) Revenue Governmental activities Business-type activities Total district-wide net expense

2003

2004

2005

2006

2007a

2008b

2009

2010

(61,913,496) (73,391) (61,986,887)

(62,465,851) 102,899 (62,362,952)

(59,418,273) 283,967 (59,134,306)

(65,987,440) 239,729 (65,747,711)

(74,339,946) (55,809) (74,395,755)

(80,757,635) 402,847 (80,354,788)

(90,716,769) (80,606) (90,797,375)

(90,980,138) 484,934 (90,495,204)

(90,570,317) 1,064,233 (89,506,084)

General Revenues and Other Changes in Net Assets Governmental activities Taxes Property tax, levied for general purposes 21,305,252 Property tax, levied for debt services 14,332,307 Other taxes 4,645,244 State aid not restricted to specific programs 22,382,239 Interest and investment earnings 3,093,181 Gain on disposal of capital assets Other 734,659 Total governmental activities 66,492,882

23,315,922 16,528,839 4,708,663 22,287,289 1,707,867 502,538 69,051,118

24,923,646 17,597,219 4,840,896 21,472,043 1,393,318 330,044 70,557,166

25,744,557 18,094,314 3,789,472 23,539,518 1,169,353 266,510 72,603,724

26,954,190 18,530,671 4,647,151 24,193,082 1,735,761 651,898 76,712,753

27,502,714 15,845,469 4,681,575 28,956,973 2,997,624 974,222 1,466,558 82,425,135

28,953,433 17,152,566 5,515,782 31,331,687 3,203,223 1,834,113 87,990,804

30,235,766 17,211,390 5,017,881 37,301,704 2,020,465 884,941 92,672,147

31,052,460 18,553,902 5,196,047 39,992,313 518,461 201,108 95,514,291

32,255,504 19,114,516 5,720,719 35,329,507 415,499 297,535 93,133,280

Business-type activities Interest and investment earnings Loss on disposal of capital assets Other Total business-type activities Total district-wide

19,659 22,506 42,165 69,093,283

13,550 27,699 41,249 70,598,415

14,217 28,137 42,354 72,646,078

27,233 13,823 41,056 76,753,809

85,715 18,828 104,543 82,529,678

75,705 75,705 88,066,509

55,809 55,809 92,727,956

13,510 13,510 95,527,801

15,721 (11,277) 4,444 93,137,724

8,091,315 144,148 8,235,463

13,185,451 326,321 13,511,772

10,725,313 280,785 11,006,098

8,085,189 48,734 8,133,923

7,233,169 478,552 7,711,721

4,534,153 498,444 5,032,597

2,562,963 1,068,677 3,631,640

Change in Net Assetsb Governmental activities Business-type activities Total district

(62,156,849) (122,812) (62,279,661)

2002

41,587 25,128 66,715 66,559,597

4,336,033 (56,097) 4,279,936

7,137,622 (31,226) 7,106,396

a

In FY08, the District recorded a prior period adjustment to correct the FY07 beginning net assets. See Note A in the Notes to the Financial Statements for a detailed explanation. b The 2005 GAAFR requires that losses on the sale of capital assets of governmental activites be reported as an expense of the general government function.

83

1,955,378 (24,797) 1,930,581

Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

Fiscal Year

General Fund Reserved Unreserved Total general fund All Other Governmental Funds Reserved, reported in: Sinking fund Reserved for debt service Building fund Reserved for capital projects Other governmental funds Reserved for arbitrage Unreserved, reported in: Building fund Other governmental funds Designated for compensated balances Designated for incurred claims Designated for early retirement incentives Undesignated Total all other governmental funds

2001

2002

2003

2004

2005

653,304 6,818,511 7,471,815

104,801 7,833,648 7,938,449

198,839 8,575,849 8,774,688

170,777 9,426,794 9,597,571

193,805 9,628,949 9,822,754

38,217,825

40,313,503

38,416,180

41,498,062

38,098,638

2007a

2008b

335,756 12,841,083 13,176,839

246,549 12,163,313 12,409,862

350,087 13,344,295 13,694,382

217,198 17,079,491 17,296,689

243,068 19,996,547 20,239,615

33,673,243

34,813,938 8,730,473

10,553,135

10,727,559

26,416,877

25,262,515

30,004,115

2006

627,323

2009

2010

-

550,203

4,866,517

5,515,568

6,474,917

7,129,302

6,644,461

7,643,708

5,982,523

4,874,512

4,588,372

4,466,525

43,084,342

45,829,071

44,891,097

48,627,364

44,743,099

41,316,951

1,031,837 102,154 818,344 9,181 42,757,977

1,182,901 110,349 969,504 42,911,939

1,305,934 118,494 769,561 42,598,011

1,412,364 187,893 927,756 48,276,415

a

Beginning in 2006-07, the District changed the presentation of unreserved fund balances to reflect its limitations on the use of available current financial resources. Prior to 2006-07, fund balances designated for compensated balances, incurred claims and early retirement incentives were presented as unreserved in the general fund. b Beginning in 2007-08, the District changed the presentation of reserved fund balances. There are no unreserved fund balances in the sinking fund or building fund.

84

Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

Fiscal Year 2001 Revenues Local sources Intermediate sources State sources Federal sources Total revenue Expenditures Current Instruction Student Instructional staff General administration School administration Business Operations and maintenance Student transportation Central Other Non-instruction expenses Child nutrition operations Community service operations Other Capital outlay Debt service Principal Interest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures

2002

2003

2004

2005

2006

2007

2008

2009

2010

39,129,723 1,965,824 32,602,827 2,221,283 75,919,657

41,070,796 2,295,337 32,834,832 2,686,639 78,887,604

43,183,608 2,658,519 32,624,511 2,899,913 81,366,551

44,547,574 2,587,262 32,396,897 3,550,246 83,081,979

46,984,892 2,977,543 37,575,503 4,364,670 91,902,608

48,356,237 3,349,338 39,848,938 5,255,543 96,810,056

49,279,313 3,673,503 45,955,606 5,539,771 104,448,193

49,545,643 3,163,313 50,825,886 5,776,059 109,310,901

52,657,909 3,220,869 54,220,098 8,321,948 118,420,824

54,196,602 3,412,476 49,991,955 12,622,460 120,223,493

34,744,436 3,542,543 1,808,599 609,161 3,963,459 1,659,243 8,695,547 1,886,070 1,227,236 250,818

38,425,797 3,839,720 2,229,909 808,195 4,165,611 1,725,059 8,442,121 1,978,011 2,146,769 343,017

40,110,968 4,235,888 2,744,151 875,004 4,158,621 1,587,130 8,871,212 3,620,184 1,909,347 75,131

36,122,022 4,547,220 2,709,605 695,250 5,033,251 3,891,683 10,007,104 2,276,095 19,249

41,859,274 4,356,364 3,066,857 1,103,302 5,365,227 4,495,703 12,006,385 2,487,555 4,236

43,605,503 4,433,401 3,476,405 996,004 6,066,017 4,957,327 12,073,913 2,385,547 27,038

51,985,668 5,363,085 3,826,101 1,255,414 7,206,173 5,792,730 13,188,041 4,193,488 158,889

53,392,683 6,357,726 4,059,052 1,683,588 7,168,559 5,863,816 13,050,900 3,169,865 247,679

57,705,606 6,286,437 4,606,186 1,761,637 7,508,683 6,775,282 13,714,350 4,485,709 -

56,972,676 6,254,660 4,372,597 1,663,542 7,079,045 6,532,857 13,291,631 3,260,021 -

715,113

867,130

854,681

908,868

770,730

655,580

808,090

1,025,158

9,124,364

9,415,528

12,759,344

12,107,888

15,060,578

15,722,696

9,885,716

14,090,638

364,204 2,769,678 84,175 11,651,223

385,941 2,964,471 1,230,120 12,060,833

12,835,000 2,594,940 435 83,656,964

15,225,000 2,496,875 92,108,742

14,750,000 2,416,625 98,968,286

15,100,000 2,104,594 95,522,829

16,350,000 1,760,594 108,686,805

16,100,000 1,582,688 112,082,119

15,600,000 1,690,750 120,954,145

15,300,000 1,907,375 127,317,039

15,550,000 2,058,875 135,322,045

16,150,000 2,088,125 134,306,519

(7,737,307)

(13,221,138)

(17,601,735)

(12,440,850)

(16,784,197)

(15,272,063)

(16,505,952)

(18,006,138)

(16,901,221)

(14,083,026)

* continued on next page

85

Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (con't) (modified accrual basis of accounting)

Fiscal Year 2001

Other financing sources (uses) Issuance of debt Premiums on new issuance of debt Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Debt service as a percentage of a noncapital expenditures

2002

2003

2004

2005

2006

2007

2008

12,000,000

16,400,000

17,500,000

17,000,000

13,125,115

15,200,000

17,170,000

19,444,620

1,777,664 (1,777,664) 12,000,000

1,483,089 (1,450,588) 16,432,501

1,669,494 (1,669,494) 17,500,000

1,164,149 (1,164,149) 17,000,000

733,503 (733,503) 13,125,115

1,335,826 (1,335,826) 15,200,000

2,055,151 (2,045,150) 17,180,001

4,262,693

3,211,363

4,559,150

(3,659,082)

(72,063)

19.34%

17.89%

20.11%

21.68%

(101,735)

21.10%

21.60%

a

674,049

16.54%

Noncapital expenditures are total expenditures less capital outlay reported on the Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities.

86

2009

2010

1,782,913 (1,782,913) 19,444,620

20,000,000 189,600 1,016,305 (1,016,305) 20,189,600

22,500,000 204,356 656,196 (656,196) 22,704,356

1,438,482

3,288,379

8,621,330

15.14%

14.82%

15.24%

Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Real Property Assessed Valuea 372,615,589 405,315,585 430,349,607 453,625,924 474,661,676 498,893,897 522,082,141 545,541,198 565,264,788 580,475,613

Personal Property Net Assessed Valuea 80,382,723 85,742,414 86,604,080 89,567,334 86,929,063 88,567,122 93,106,851 95,693,541 99,307,726 99,397,179

Public Service Property Property Assessed Valueb

Total Net Assessed Value

21,887,929 20,719,080 32,039,107 27,685,707 24,321,011 23,263,576 22,826,022 24,184,955 23,041,264 24,269,812

474,886,241 511,777,079 548,992,794 570,878,965 585,911,750 610,724,595 638,015,014 665,419,694 687,613,778 704,142,604

a

Total Estimated Actual Valuec 4,426,001,653 4,803,652,759 5,041,470,268 5,274,344,635 5,424,552,706 5,656,237,944 5,907,277,101 6,149,826,618 6,358,338,256 6,501,691,046

Ratio of Gross Assessed Value to Total Estimated Actual Value

Total Direct Tax Rated

10.73% 10.65% 10.89% 10.82% 10.80% 10.80% 10.80% 10.82% 10.81% 10.83%

71.69 73.63 73.89 73.30 72.59 67.65 68.36 67.36 68.66 68.66

Assessed value is defined as the taxable value of real or personal property and is subject to an assessment rate set by the County Assessor to calculate the amount of tax liability.

The current assessment rate is 11% for real property and 10% for personal property. b Public service property is centrally assessed by the Oklahoma State Board of Equalization. The assessment rates on public service property, and on airlines and railroads included in the public service category, are set at 22.85% and 11.84% respectively. c Estimated actual value is used in computing the gross assessed value for tax purposes. The Oklahoma Constitution provides that this value will not exceed a 5% increase over the previous year unless improvements were made to the property or if title to the property is transferred, changed, or conveyed to another person. d Components of total direct tax rate are found on the Direct and Overlapping Property Tax Rate table.

Source: Tulsa County Assessor

87

Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Rates for Taxpayers in the City of Tulsaa Direct Rates Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General

Overlapping Rates

Union School District Building Sinking

36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05

5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15

30.49 32.43 32.69 32.10 31.39 26.45 27.16 26.16 27.46 27.46

Total Direct Rates 71.69 73.63 73.89 73.30 72.59 67.65 68.36 67.36 68.66 68.66

Tulsa County 23.93 24.31 23.83 22.89 22.61 22.59 22.21 22.21 22.21 22.21

Tulsa Comm College

Tulsa VoTech

8.70 8.39 8.31 8.28 7.21 7.21 7.21 7.21 7.21 7.21

Tulsa City

13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33

12.02 11.53 11.23 11.16 10.11 9.97 12.67 13.48 14.08 14.15

Total Overlapping Rates

Total Direct & Overlapping Rates

57.98 57.56 56.70 55.66 53.26 53.10 55.42 56.23 56.83 56.90

129.67 131.19 130.59 128.96 125.85 120.75 123.78 123.59 125.49 125.56 126.54

Ten-Year Average

Rates for Taxpayers in the City of Broken Arrow b Direct Rates Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General

Overlapping Rates

Union School District Building Sinking

36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05 36.05

5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15 5.15

30.49 32.43 32.69 32.10 31.39 26.45 27.16 26.16 27.46 27.32

Total Direct Rates 71.69 73.63 73.89 73.30 72.59 67.65 68.36 67.36 68.66 68.52

Tulsa County 23.93 24.31 23.83 22.89 22.61 22.59 22.21 22.21 22.21 22.21

Tulsa Comm College 8.70 8.39 8.31 8.28 7.21 7.21 7.21 7.21 7.21 7.21

Tulsa VoTech

Broken Arrow City

13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33

14.90 16.30 16.48 12.89 15.08 15.06 15.74 15.30 15.72 15.98

Ten-Year Average a

Approximately 86% of the District lies within the City of Tulsa. The ten-year tax levy average for property owners in the City of Tulsa is 126.54 mills. b Approximately 14% of the District lies within the City of Broken Arrow. The ten-year tax levy average for property owners in the City of Broken Arrow is 129.83 mills.

Note: A mill is the equivalent of $1 per $1,000 of net assessed value. The District's millage rate levy is pursuant to provisions of the Constitution of the State of Oklahoma contained in Article X. The County Excise Board certifies the Estimate of Needs submitted by the District annually and computes the rate of mill levy necessary for general fund, building fund and sinking fund purposes. Once the levy is certified by the Excise Board, the county assessor extends said levies upon the tax rolls. Pursuant to a recent amendment to the Oklahoma Constitution enabling local school districts to seek permanent voter approval of a 5-mill emergency levy, a 5.15-mill building levy, and a 10-mill local support levy, the District submitted such permanent levies to the voters at an election held on February 13, 2001. The permanent levies were approved, and the District no longer has to submit approval of these funding sources to voters on an annual basis.

Source: Tulsa County Clerk

88

Total Overlapping Rates

Total Direct & Overlapping Rates

60.86 62.33 61.95 57.39 58.23 58.19 58.49 58.05 58.47 58.73

132.55 135.96 135.84 130.69 130.82 125.84 126.85 125.41 127.13 127.25 129.83

Principal Property Taxpayers Current Year and Nine Years Ago 2010

Taxable Assessed Value

Taxpayer Woodland Hills Mall Public Service Company of Oklahoma SouthCrest Hospital Wal-Mart State Farm Insurance Zeledyne, LLC (formerly Ford Motor Company) QuickTrip Expedition Properties, LLC Tech Ridge Properties, LLC AT&T Companies/Services Columbia Crest LLC General Telephone Co. MCI Hilti Corporation Bergen Brunswign Drug

Total

a b

2001

Rank

Taxable Assessed Value

Rank

% of Total District Net Assessed Valueb

14,235,813 11,763,648 7,203,949 6,618,461 5,653,994

1 2 3 4 5

2.02% 1.67% 1.02% 0.94% 0.80%

12,115,615 4,493,512

1 6

2.55% 0.95%

2,984,713 3,686,794

10 9

0.63% 0.78%

5,283,206 4,169,991 3,988,434 3,945,007 3,274,982

6 7 8 9 10

0.75% 0.59% 0.57% 0.56% 0.47%

8,746,308

2

1.84%

6,750,515 5,190,360 4,704,040 4,449,390 3,862,237

3 4 5 7 8

1.42% 1.09% 0.99% 0.94% 0.81%

66,137,485

9.39%

Based on FY09-10 Net Assessed Valuation of 704,142,604 Based on FY00-01 Net Assessed Valuation of 474,886,241

Source: Tulsa County Assessor

% of Total District Net Assessed Valuea

89

56,983,484

12.00%

Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Year of the Levya Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Tax Levied for Fiscal Year 34,045,869 37,681,583 40,564,693 41,845,428 42,531,334 41,313,014 43,614,225 44,822,671 47,211,562 48,247,851

Current Tax Collections 33,322,140 37,047,430 39,275,161 40,611,805 41,626,700 40,155,225 41,923,508 43,123,100 45,842,202 47,128,165

Percent of Current Tax Collected 97.87% 98.32% 96.82% 97.05% 97.87% 97.20% 96.12% 96.21% 97.10% 97.68%

Collected in Subsequent Yearsb Delinquent Tax Collections 436,813 401,090 629,746 706,084 993,048 687,930 909,225 893,785 1,032,762 679,476

Total Tax Collection 33,758,953 37,448,520 39,904,907 41,317,889 42,619,748 40,843,155 42,832,733 44,016,884 46,874,964 47,807,641

Ratio of Total Tax Collection to Levy 99.16% 99.38% 98.37% 98.74% 100.21% 98.86% 98.21% 98.20% 99.29% 99.09%

Outstanding Delinquent Taxes

Ratio of Delinquent Taxes to Total Levy

1,095,247 1,196,441 1,058,312 1,536,139 1,453,586 1,593,293 1,429,130 1,152,965 1,401,874 1,668,851

a

The Tulsa County Assessor is required to file a tax roll report on or before October 1 of each year with the Tulsa County Treasurer who must begin collecting taxes by November. The first half of taxes is due and payable on or before December 31. The second half becomes due and payable on or before March 31. If the first half is not paid by December 31, the total tax becomes due and payable on January 1.

b

Ad valorem taxes not paid on or before April 1 are considered delinquent. Interest accrues on delinquent taxes at the rate of one and one-half percent monthly (18 percent annually) to a maximum of 100 percent of the taxes due until such time as the delinquent taxes are paid. If not paid by the following October 1, the property is offered for sale for the amount of taxes due.

Source: Tulsa County Treasurer

90

3.22% 3.18% 2.61% 3.67% 3.42% 3.86% 3.28% 2.57% 2.97% 3.46%

Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Governmental Activities General Obligation Bonds

Business-Type Activities General Obligation Bonds

51,475,000 52,650,000 55,400,000 57,300,000 53,950,000 53,050,000 54,450,000 58,550,000 63,000,000 69,350,000

-

Total District 51,475,000 52,650,000 55,400,000 57,300,000 53,950,000 53,050,000 54,450,000 58,550,000 63,000,000 69,350,000

Ratio of Outstanding Debt to Estimated Actual Valuationª

Total Estimated Actual Valueª 4,426,001,653 4,803,652,759 5,041,470,268 5,274,344,635 5,424,552,706 5,656,237,944 5,907,277,101 6,149,826,618 6,358,338,256 6,501,691,046

1.16% 1.10% 1.10% 1.09% 0.99% 0.94% 0.92% 0.95% 0.99% 1.07%

Total Personal Income (in thousands)

Ratio of Outstanding Debt Per Personal Income

Average Daily Membership (ADM)b

Ratio of Outstanding Debt Per Studentb

27,242,700 26,574,100 26,728,700 28,762,800 30,723,200 33,722,800 36,303,800 38,114,600 36,641,795 37,008,213

0.19% 0.20% 0.21% 0.20% 0.18% 0.16% 0.15% 0.15% 0.17% 0.19%

13,049 13,239 13,389 13,719 13,836 13,993 14,253 14,360 14,566 14,949

3,945 3,977 4,138 4,177 3,899 3,791 3,820 4,077 4,325 4,639

ªEstimated actual valuation is taken from the table, Assessed and Estimated Actual Value of Taxable Property, which the District considers a more appropriate economic base than personal income on which to calculate the debt ratio. However, personal income ratios are included. b

Since the District lies within the boundaries of two Oklahoma cities, per capita calculations are based on the final audited average daily membership (ADM) certified by the Oklahoma State Department of Education as a more relevant indicator of the debt ratio.

See Demographic and Economic Statistics.

Note: The District issues only general obligation bonds.

Sources:

District records Tulsa County Assessor Oklahoma State Department of Education

91

Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General Obligation Bonds 51,475,000 52,650,000 55,400,000 57,300,000 53,950,000 53,050,000 54,450,000 58,550,000 63,000,000 69,350,000

Less Sinking Fund Balance 9,997,287 8,031,880 8,755,925 9,960,387 10,331,474 9,055,835 8,962,506 8,730,473 9,796,665 10,727,559

Net General Bonded Debt Outstanding

Total Estimated Actual Valueª

41,477,713 44,618,120 46,644,075 47,339,613 43,618,526 43,994,165 45,487,494 49,819,527 53,203,335 58,622,441

4,426,001,653 4,803,652,759 5,041,470,268 5,274,344,635 5,424,552,706 5,656,237,944 5,907,277,101 6,149,826,618 6,358,338,256 6,501,691,046

Ratio of Net Debt to Estimated Actual Valuationª 0.94% 0.93% 0.93% 0.90% 0.80% 0.78% 0.77% 0.81% 0.84% 0.90%

Average Daily Membership (ADM)b

Ratio of Net Debt Per Studentb

13,049 13,239 13,389 13,719 13,836 13,993 14,253 14,360 14,566 14,949

ªEstimated actual valuation is taken from the table, Assessed and Estimated Actual Value of Taxable Property, which the District considers a more appropriate economic base than personal income on which to calculate the debt ratio. b

Since the District lies within the boundaries of two Oklahoma cities, per capita calculations are based on the final audited average daily membership (ADM) certified by the Oklahoma State Department of Education as a more relevant indicator of the debt ratio.

See Demographic and Economic Statistics.

Note: The District issues only general obligation bonds.

Sources:

District records Tulsa County Assessor Oklahoma State Department of Education

92

3,179 3,370 3,484 3,451 3,152 3,144 3,192 3,469 3,653 3,922

Direct and Overlapping Governmental Activities Debt As of June 30, 2010

Jurisdiction

Net Assessed Valuationa

Amount Subject to Taxation in Districta

Estimated Percent Applicable to the Districtb

Net General Obligation Bonded Debt Outstandingc

Amount Applicable to the District

As it applies to a resident of the city of Tulsa: Direct: Union Public Schools Overlapping: Tulsa County (unincorporated) Tulsa Technology Center #18 Tulsa Community College City of Tulsa Total Overlapping

704,142,604

704,142,604

100.00%

58,622,441

58,622,441

11,094,586 4,875,142,829 4,875,142,829 3,102,175,555 12,863,555,799

1,697,301 711,032,163 711,032,163 544,968,043 1,968,729,670

15.30% 14.58% 14.58% 17.57%

386,325,000 386,325,000

67,866,817 67,866,817

444,947,441

126,489,258

Total Direct and Overlapping

As it applies to a resident of the city of Broken Arrow: Direct: Union Public Schools Overlapping: Tulsa County (unincorporated) Tulsa Technology Center #18 Tulsa Community College City of Broken Arrowd Total Overlapping

704,142,604

704,142,604

100.00%

60,985,015

60,985,015

11,094,586 4,875,142,829 4,875,142,829 581,906,541 10,343,286,785

1,697,301 711,032,163 711,032,163 164,099,908 1,587,861,535

15.30% 14.58% 14.58% 28.20%

75,275,000 75,275,000

21,227,843 21,227,843

136,260,015

82,212,858

Total Direct and Overlapping

a

2009-10 net assessed valuations as certified by the Tulsa County Assessor.

b

Estimated percent was determined by the ratio of net assessed value of property subject to taxation in the District to the net assessed value of property in the overlapping unit.

c

Net general obligation bonded debt outstanding as reported by the overlapping unit.

d

The City of Broken Arrow had judgments totaling $760,195 as of 6/30/2010 that are reported on the tax rolls but not included as a component of net general obligation bonded debt outstanding.

93

Legal Debt Margin Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2009: 10% of FY 2008-09 Net Assessed Valuation Debt Applicable to Limitation Current Sinking Fund Balance Legal Debt Margin

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Net Assessed Valuationa 474,886,241 511,777,079 548,992,794 570,878,965 585,911,750 610,724,595 638,015,014 665,419,694 687,613,778 704,142,604

Legal Debt Limit 10% of Net Assessed Valuationb 47,488,624 51,177,708 54,899,279 57,087,897 58,591,175 61,072,460 63,801,501 66,541,969 68,761,378 70,414,260

70,414,260 69,350,000 (10,727,559)

Outstanding GO Bonded Indebtedness

58,622,441 11,791,819

Less Sinking Fund Balance

51,475,000 52,650,000 55,400,000 57,300,000 53,950,000 53,050,000 54,450,000 58,550,000 63,000,000 69,350,000

9,531,619 8,031,880 8,755,925 9,960,387 10,331,474 9,055,835 8,962,506 8,730,473 9,796,665 10,727,559

Total Net Debt Subject to Legal Limit 41,943,381 44,618,120 46,644,075 47,339,613 43,618,526 43,994,165 45,487,494 49,819,527 53,203,335 58,622,441

a

Legal Debt Marginc 5,545,243 6,559,588 8,255,204 9,748,284 14,972,649 17,078,295 18,314,007 16,722,442 15,558,043 11,791,819

Net assessed valuation is taken from the table, Assessed and Estimated Actual Value of Taxable Property.

The general obligation indebtedness of the District is limited by Oklahoma law to 10% of the net assessed value of the taxable property in the District. c The legal debt margin is the additional debt incurring capacity of the District as allowed by Oklahoma law. b

Note: The District has no default of record on principal and interest payments of its general obligation bonded indebtedness.

Sources:

District records Tulsa County Assessor

94

Percent of Net Debt to Debt Limit 88.32% 87.18% 84.96% 82.92% 74.45% 72.04% 71.30% 74.87% 77.37% 83.25%

Demographic and Economic Statisticsa Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Official State October 1 Enrollmentb 13,054 13,315 13,517 13,819 13,969 14,101 14,345 14,519 14,658 15,015

Average Daily Membership (ADM)b 13,049 13,239 13,389 13,719 13,836 13,993 14,253 14,360 14,566 14,949

% Change in Average Daily Membership N/A 1.46% 1.13% 2.47% 0.86% 1.13% 1.86% 0.75% 1.44% 2.63%

Net Assessed Valuation (NAV)c 474,886,241 511,777,079 548,992,794 570,878,965 585,911,750 610,724,595 638,015,014 665,419,694 687,613,778 704,142,604

a

Per Student NAVd 36,392 38,656 41,004 41,613 42,346 43,645 44,765 46,340 47,207 47,103

Average Daily Attendance (ADA)b 12,395 12,660 12,722 13,041 13,143 13,251 13,450 13,662 13,974 14,136

Student Attendance Percentage 94.99% 95.63% 95.02% 95.06% 94.99% 94.69% 94.37% 95.14% 95.93% 94.56%

Expenditure Appropriation Approved by County Excise Boarde 58,612,803 64,784,028 64,476,447 66,316,809 72,702,329 77,620,261 86,045,683 93,006,429 101,447,717 110,793,135

Union Public Schools district specific demographic data Obtained from the Oklahoma State Department of Education c Obtained from the Tulsa County Assessor d Since the District lies within the boundaries of two Oklahoma cities, per capita calculations are based on the final audited average daily membership (ADM) certified by the Oklahoma State Department of Education as a more relevant indicator of the debt ratio. e Obtained from Estimate of Needs - General Fund b

95

Demographic and Economic Statisticsab Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009c 2010d

Population

Total Personal Income (in thousands)

Real Per Capita Personal Income

867,570 874,542 876,515 876,676 880,999 891,185 904,345 916,079 924,571 932,199

27,242,700 26,574,100 26,728,700 28,762,800 30,723,200 33,722,800 36,303,800 38,114,600 36,641,795 37,008,213

34,322 32,766 32,227 34,084 35,483 37,725 39,152 39,741 39,026 39,272

Labor Force

Unemployment Rate

443,364 445,813 442,716 438,027 442,330 444,209 441,580 437,540 453,319 458,639

3.4% 5.0% 6.1% 5.1% 4.4% 4.0% 3.9% 3.8% 6.7% 7.5%

a

Tulsa MSA specific demographic data Data obtained from the Tulsa Metro Chamber 2010 Economic Profile c Estimation based on data obtained from the Tulsa Metro Chamber d Projection based on data obtained from the Tulsa Metro Chamber 2010 Economic Profile and Oklahoma Employment Security Commision

b

Note: Tulsa MSA comprises seven counties: Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and Wagoner

96

Tulsa Area Principal Employersa Current Year and Nine Years Ago

2010

Employer Wal-Mart/Sam's Club Tulsa Public Schools American Airlines Saint Francis Healthcare System St. John Medical Center Hillcrest Healthcare System City of Tulsa Reasor's Cherokee Hard Rock Hotel and Casino Bank of Oklahoma ONEOK LDDS WorldCom Williams Energy Group Williams Communications

Employees

2001 Percentage of Tulsa County Employmentb

Rank

8,000 7,825 6,700 6,110 6,000 3,876 3,841 2,700

1 2 3 4 5 6 7 8

0.86% 0.84% 0.72% 0.66% 0.64% 0.42% 0.41% 0.29%

2,500 2,177

9 10

0.27% 0.23%

49,729

Employees

5.34%

a

Tulsa MSA specific demographic data Based on the estimated population count from the Tulsa Metro Chamber 2010 Economic Profile of 932,199 c Based on the population count from the Tulsa Metro Chamber 2010 Economic Profile of 867,570 b

Sources: Tulsa Metro Chamber

97

Rank

Percentage of Tulsa County Employmentc

6,653 10,904 6,250 4,800 4,300 3,924

2 1 3 5 4 6

0.77% 1.26% 0.72% 0.55% 0.50% 0.45%

3,650 3,629 2,926 2,779 49,815

7 8 9 10

0.42% 0.42% 0.34% 0.32% 5.75%

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98

Capital Assets by Function and Activity Last Ten Fiscal Years

Governmental Activities Instruction Student Instructional support General administration School administration Business Operations and maintenance Transportation Support services - central Other Support services Non-instructional Other-unclassified Total Governmental Activities

Business-Type Activities Child nutrition services

Total Capital Assets

Fiscal Year Ending June 30, 2004 2005

2001

2002

2003

121,300,703 933,125 5,156,486 2,712,694 11,953,654 142,056,662

133,908,078 19,264 714,773 219,337 83,842 306,506 1,849,580 5,421,243 5,421,225 426,223 3,800,191 152,170,262

148,238,260 90,398 834,676 219,940 291,110 360,277 2,012,259 6,871,328 5,803,563 482,345 3,027,953 168,232,109

164,886,634 123,660 919,716 220,655 456,290 678,973 2,416,201 6,893,177 3,649,529 489,760 3,000,837 183,735,432

176,667,150 126,055 491,940 58,407 464,879 794,291 2,563,062 7,022,334 3,049,948 227,078 3,000,837 194,465,981

184,824,453 212,980 536,641 64,032 499,951 1,606,011 2,862,196 6,941,245 2,809,449 307,358 1,317,695 201,982,011

196,571,020 144,811 533,624 71,288 1,300,504 3,144,740 3,171,697 8,082,169 2,809,449 304,228 1,317,695 217,451,225

208,486,847 138,246 586,827 185,210 1,440,721 3,357,220 3,436,217 8,071,361 2,809,449 383,766 1,317,695 230,213,559

221,380,013 182,267 970,757 196,372 1,576,109 3,787,551 4,115,494 9,390,560 2,719,248 450,251 1,317,695 246,086,317

234,964,269 358,280 1,327,070 336,722 1,396,754 3,782,928 4,215,686 6,582,237 3,236,392 36,264 1,874,878 258,111,480

1,442,114

1,439,702

1,428,722

1,537,471

1,573,069

1,683,143

2,001,269

2,068,246

2,123,088

2,172,502

143,498,776

153,609,964

169,660,831

185,272,903

196,039,050

203,665,154

219,452,494

232,281,805

248,209,405

260,283,982

Source: District records

99

2006

2007

2008

2009

2010

Employee Information Last Ten Fiscal Years

2001 Certified Personnel Bachelor's Minimum Salary Maximum Salary Average Salary Number of Teachers Master's Minimum Salary Maximum Salary Average Salary Number of Teachers Doctor's Minimum Salary Maximum Salary Average Salary Number of Teachers Total Certified Personnel Support Personnel Number of Support Administrative Personnel Number of Administrators

2002

2003

2004

2005

2006

2007

2008

2009

2010

25,641 39,372 31,239 500

26,041 39,980 31,714 504

26,041 40,080 31,469 489

26,041 40,080 31,156 474

26,041 41,282 32,675 512

28,425 44,033 33,608 544

31,100 47,133 35,941 579

31,600 48,799 36,514 593

31,600 48,799 36,301 635

31,600 49,287 36,186 663

28,886 43,334 38,791 282

29,286 43,942 38,817 294

29,286 44,042 38,402 280

29,286 44,042 37,920 271

29,286 45,363 39,689 289

30,486 48,263 40,240 289

32,300 51,363 42,318 299

32,800 52,913 43,048 308

32,800 53,479 42,604 309

32,800 54,014 42,409 320

31,633 44,708 39,560 13 795

32,033 45,316 40,376 14 812

32,033 45,416 39,795 13 782

32,033 45,416 39,712 14 759

32,033 46,778 42,596 12 813

32,233 49,729 43,183 12 845

33,500 52,829 45,986 13 891

34,000 55,279 46,640 15 916

34,000 55,870 43,612 16 960

34,000 56,429 43,871 15 998

548

575

583

591

602

617

660

712

769

785

53

53

57

49

64

64

72

72

71

72

Note: In 2009, average salary of current and prior years was re-calcuated from a pay table average to a true average salary to reflect a more accurate average salary Note: Salary ranges are per the Union Classroom Teacher's Association (UCTA) Master Contract which is negotiated annually.

Employee counts are taken from the census information that is obtained each Spring for negotiation purposes.

Source: District records

100

Operating Statistics Last Ten Fiscal Years

Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Average Daily Membership (ADM)a

Operating Expendituresb

13,049 13,239 13,389 13,719 13,836 13,993 14,253 14,360 14,566 14,949

74,072,098 74,528,675 75,733,097 74,028,778 83,513,910 90,736,281 101,794,702 111,735,966 118,065,611 122,778,225

Cost Per Pupilc

Percentage Change

5,676 5,629 5,656 5,396 6,036 6,484 7,142 7,781 8,106 8,213

N/A -0.83% 0.48% -4.60% 11.86% 7.43% 10.14% 8.95% 4.17% 1.33%

a

Teaching Staffd 795 812 782 759 813 845 891 916 960 998

Pupil/ Teacher Ratio

Number of Graduatese

16:1 16:1 17:1 18:1 17:1 17:1 16:1 16:1 15:1 15:1

Final audited average daily membership (ADM) obtained from the Oklahoma State Department of Education.

Operating expenditures are the total expenses of the school district as reported in the Government-Wide Statement of Activities.

The District implemented GASB 34 on June 30, 2001; therefore, only eight fiscal years of financial data are presented. c Cost per pupil is calculated by dividing operating expenditures by the final audited average daily membership (ADM) certified by the Oklahoma State Department of Education. d Teaching staff includes all certified personnel whose pay is based on the Union Classroom Teacher's Association (UCTA) Master Contract. e Number of graduates obtained from District records maintained by the Union High School Registrar. b

101

769 751 759 870 809 807 899 841 965 941

Support Services Statistics Last Ten Fiscal Years

Child Nutrition Fiscal Year Ended June 30, 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

a b

Average Daily Membership (ADM)a 13,049 13,239 13,389 13,719 13,836 13,993 14,253 14,360 14,566 14,949

Free and Reduced Countb 2,031 2,368 2,687 3,528 4,101 4,586 5,320 5,728 6,015 7,048

Free and Reduced Percentage 15.56% 17.89% 20.07% 25.72% 29.64% 32.77% 37.33% 39.89% 41.29% 47.15%

Number of Breakfasts Servedb 101,557 129,832 143,985 185,204 263,750 335,983 413,191 475,846 497,407 589,604

Number of Lunches Servedb 1,475,861 1,886,765 1,912,943 1,333,299 1,294,764 1,148,763 2,076,210 1,445,585 1,277,953 1,365,467

Number of Buses Operatedb 94 94 92 92 92 92 106 106 116 96

Transportation Estimated Number of Miles Drivenb 834,050 838,816 735,000 826,113 831,682 820,532 830,680 864,343 852,377 840,055

Average Daily Haul (ADH)a 7,522 8,034 8,386 8,283 7,891 7,810 8,253 10,334 8,895 10,281

Final audited average daily membership (ADM) and average daily haul (ADH) obtained from the Oklahoma State Department of Education Obtained from District records

102

School Building Information Last Ten Fiscal Years

District Building Elementary: Andersen Elementary (1984) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Boevers Elementary (1975) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Briarglen Elementary (1971) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Cedar Ridge Elementary (1994) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Clark Elementary (1977) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Darnaby Elementary (1979) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Grove Elementary (1974) Square Feet Capacity (students) Enrollment Percentage of Capacity Used

Fiscal Year Ending June 30, 2004 2005

2001

2002

2003

67,709 600 673 112.17%

67,709 600 463 77.17%

67,709 600 517 86.17%

67,709 600 519 86.50%

67,709 600 531 88.50%

59,773 600 596 99.33%

59,773 600 560 93.33%

59,773 600 599 99.83%

59,773 600 604 100.67%

61,349 600 614 102.33%

61,349 600 620 103.33%

61,349 600 596 99.33%

82,000 600 631 105.17%

82,000 600 613 102.17%

71,480 600 647 107.83%

2000

2006

2007

2008

2009

2010

67,709 600 530 88.33%

67,709 600 567 94.50%

67,709 600 549 91.50%

67,709 600 505 84.17%

67,709 600 475 79.17%

67,709 600 477 79.50%

59,773 600 659 109.83%

59,773 600 682 113.67%

59,773 600 656 109.33%

59,773 600 426 71.00%

59,773 600 442 73.67%

59,773 600 481 80.17%

59,773 600 552 92.00%

61,349 600 579 96.50%

61,349 600 625 104.17%

61,349 600 615 102.50%

61,349 600 576 96.00%

61,349 600 576 96.00%

61,349 600 589 98.17%

61,349 600 538 89.67%

61,349 600 542 90.33%

82,000 600 598 99.67%

82,000 600 600 100.00%

82,000 600 580 96.67%

82,000 600 554 92.33%

82,000 600 529 88.17%

82,000 600 545 90.83%

82,000 600 566 94.33%

82,000 600 591 98.50%

82,000 600 564 94.00%

71,480 600 547 91.17%

71,480 600 590 98.33%

71,480 600 645 107.50%

71,480 600 557 92.83%

71,480 600 615 102.50%

71,480 600 659 109.83%

71,480 600 702 117.00%

71,480 600 776 129.33%

71,480 600 556 92.67%

71,480 600 604 100.67%

73,458 600 672 112.00%

73,458 600 540 90.00%

73,458 600 543 90.50%

73,458 600 514 85.67%

73,458 600 490 81.67%

73,458 600 538 89.67%

73,458 600 488 81.33%

73,458 600 564 94.00%

73,458 600 538 89.67%

73,458 600 571 95.17%

73,458 600 572 95.33%

60,777 600 665 110.83%

60,777 600 549 91.50%

60,777 600 563 93.83%

60,777 600 575 95.83%

60,777 600 612 102.00%

60,777 600 615 102.50%

60,777 600 600 100.00%

60,777 600 590 98.33%

60,777 600 621 103.50%

60,777 600 575 95.83%

60,777 600 628 104.67%

103

School Building Information Last Ten Fiscal Years

District Building Jarman Elementary (1991) Square Feet Capacity (students) Enrollment Percentage of Capacity Used McAuliffe Elementary (1987) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Moore Elementary (2000) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Peters Elementary (1978) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Rosa Parks (2006) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Thomas Jefferson (2008)a Square Feet Capacity (students) Enrollment Percentage of Capacity Used Secondary: 6th/7th Grade Center (1993) Square Feet Capacity (students) Enrollment Percentage of Capacity Used

2000

2001

Fiscal Year Ending June 30, 2004 2005

2003

2002

2006

2007

2008

2009

2010

68,592 600 643 107.17%

68,592 600 597 99.50%

68,592 600 607 101.17%

68,592 600 590 98.33%

68,592 600 608 101.33%

68,592 600 639 106.50%

68,592 600 607 101.17%

68,592 600 603 100.50%

68,592 600 606 101.00%

68,592 600 559 93.17%

68,592 600 520 86.67%

70,316 600 570 95.00%

70,316 600 655 109.17%

70,316 600 654 109.00%

70,316 600 656 109.33%

70,316 600 754 125.67%

70,316 600 634 105.67%

70,316 600 710 118.33%

70,316 600 607 101.17%

70,316 600 630 105.00%

70,316 600 518 86.33%

70,316 600 557 92.83%

74,632 600 537 89.50%

74,632 600 576 96.00%

74,632 600 626 104.33%

74,632 600 649 108.17%

74,632 600 652 108.67%

74,632 600 654 109.00%

74,632 600 578 96.33%

74,632 600 596 99.33%

74,632 600 470 78.33%

74,632 600 488 81.33%

70,893 600 605 100.83%

70,893 600 626 104.33%

70,893 600 659 109.83%

70,893 600 577 96.17%

70,893 600 602 100.33%

70,893 600 615 102.50%

70,893 600 584 97.33%

70,893 600 587 97.83%

70,893 600 574 95.67%

70,893 600 567 94.50%

70,893 600 633 105.50% -

-

-

-

-

-

-

-

71,300 600 479 79.83%

71,300 600 612 102.00%

71,300 600 621 103.50%

-

-

-

-

-

-

-

-

72,000 600 0.00%

69,356 600 473 78.83%

69,356 600 515 85.83%

276,126 2,200 2,137 97.14%

276,126 2,200 2,121 96.41%

276,126 2,200 2,248 102.18%

276,126 2,200 1,951 88.68%

276,126 2,200 2,062 93.73%

276,126 2,200 2,099 95.41%

276,126 2,200 2,103 95.59%

104

276,126 2,200 2,152 97.82%

276,126 2,200 2,194 99.73%

276,126 2,200 2,156 98.00%

276,126 2,200 2,210 100.45%

School Building Information Last Ten Fiscal Years

District Building 8th Grade Center (1982) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Intermediate High School (1987)b Square Feet Capacity (students) Enrollment Percentage of Capacity Used Senior High School (1972) Square Feet Capacity (students) Enrollment Percentage of Capacity Used Other: Education Service Center (1979) Square Feet Extended Education Building (1996) Square Feet Linde Building/New Education Service Center (2005) Square Feet Union Multipurpose Activity Center (2003) Square Feet Rosa Parks Early Childhood Center (2008)c Square Feet

Fiscal Year Ending June 30, 2004 2005

2000

2001

2002

2003

139,845 1,100 1,000 90.91%

139,845 1,100 977 88.82%

139,845 1,100 1,009 91.73%

139,845 1,100 1,018 92.55%

139,845 1,100 1,059 96.27%

432,564 2,200 1,921 87.32%

432,564 2,200 1,986 90.27%

432,564 2,200 2,011 91.41%

432,564 2,200 2,007 91.23%

473,149 2,200 1,761 80.05%

473,149 2,200 1,743 79.23%

473,149 2,200 1,727 78.50%

104,915

104,915

12,948

12,948

2006

2007

2008

2009

2010

139,845 1,100 1,091 99.18%

165,620 1,300 1,132 87.08%

165,620 1,300 1,109 85.31%

165,620 1,300 1,139 87.62%

165,620 1,300 1,137 87.46%

165,620 1,300 1,054 81.08%

432,564 2,200 2,108 95.82%

432,564 2,200 2,156 98.00%

432,564 2,200 2,220 100.91%

432,564 2,200 2,308 104.91%

432,564 2,200 2,264 102.91%

432,564 2,200 2,325 105.68%

458,590 2,200 2,343 106.50%

473,149 2,200 1,822 82.82%

473,149 2,200 1,858 84.45%

473,149 2,200 1,852 84.18%

611,119 2,200 1,932 87.82%

611,119 2,200 1,937 88.05%

611,119 2,200 2,044 92.91%

611,119 2,200 2,082 94.64%

611,119 2,200 2,163 98.32%

104,915

104,915

104,915

104,915

104,915

104,915

104,915

104,915

104,915

12,948

12,948

12,948

12,948

12,948

12,948

12,948

12,948

12,948

63,000

63,000

63,000

63,000

63,000

150,400

150,400

150,400

150,400

150,400

32,000

32,000

150,400

150,400

Note: Enrollment is based on the annual October 1 district child count required by the Oklahoma State Department of Education. All building information was obtained from District records. Increase in capacity is only shown when the square footage added was for regular instructional classroom space. a

Construction in progress as of June 30, 2008; actual square footage noted in 2009 Baseball/Softball complex opened in Spring 2010 c Building owned by Tulsa Community Action Project; operated by Union Public Schools. The facility currently houses a 3-year old program. b

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Insurance Schedule June 30, 2010 Coverage

Deductible

Effective 7/1/2009 - 6/30/2010

School Package Policy (1) Building and Contents (All Locations) Includes Equipment Breakdown (Boiler & Machinery)

453,997,965 3,000/5,000 Property Damage/Wind, Hail & Lightning

Electronic Data Processing (Hardware/Software/Media)

18,609,400

Earthquake

10,000,000

25,000

Flood

5,000,000

25,000

General Liability

1,000,000

-

Employee Benefits Liability

1,000,000

2,500

Automobile Liability

1,000,000

1,000

Umbrella

5,000,000

-

School Leaders Professional Liability Includes Employment Practices Liability (2)

1,000,000

50,000

Storage Tank Pollution Liability (3)

1,000,000

5,000

Fiduciary Liability Includes $50,000 for fines in connection with HIPAA law violations (4)

2,000,000

2,500

Workers' Compensation (5)

2,500/2,500 Electronic Equipment/Laptops

500,000

Effective 8/16/2007 - 6/30/2010

Medical Professional Liability (6)

1,000,000 single occurrence 2,000,000 aggregate

10,000

5,000,000

15,000

Effective 7/1/2004 - 6/30/2010

Crime (7) (1)Greenwich Insurance Company (2) Westchester Insurance Co. (ACE) (3) Zurich North America (4) Chubb Insurance (5) CompSource Oklahoma (OSAG) (6) Admiral Insurance Co. (7) Chubb Insurance

Note: The District is currently self-insured for health insurance coverage. Employees were offered the choice of a PPO through Mutual Assurance Administrators (MAA) or an HMO through Community Care through June 30, 2010.

Source: International Insurance Brokers

106