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Back CoverThis will be the BackCover.pdf file that you will put inthe Graphics folder. You don’t need to refer to this inthe spreadsheet.MEMPHIS CITY SCHOOLSA COMPONENT UNIT OF THECITY OF MEMPHIS, TENNESSEECOMPREHENSIVEANNUAL FINANCIALREPORTFor the Fiscal year ended June 30, 2010
Memphis City SchoolsMemphis, TennesseeComprehensive Annual Financial Reportfor the Fiscal Year EndedJune 30, 2010Prepared by:Memphis City SchoolsDepartment of Finance
Table of ContentsIN T R O D U C TO RY SECTIONGovernment Finance Officers Association Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Association School Business Officials Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15District Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16FINANCIAL S ECT IONIndependent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21BASIC FINANCIAL STATEMENTSGovernment-wide Financial Statements:Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Fund Financial Statements:Balance Sheet – Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets . . . . . . . . . . .43Statement of Revenues, Expenditures, and Changes in Fund Balances –Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes InFund Balances to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –Special Revenue Categorically Aided Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47Statement of Net Assets – Proprietary Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48Statement of Revenues, Expenditures, and Changes in Fund Balances – Proprietary Fund . . . . . . . . . .49Statement of Cash Flows – Proprietary Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50Statement of Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51Statement of Changes in Fiduciary Net Assets – Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52Notes to the Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53REQUIRED SUPPLEMENTARY INFORMATIONSchedules of Funding Progress for Memphis City Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULESCombining Statement of Net Assets – Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83Combining Statement of Revenues, Expenses and Changes in Net Assets –Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84Combining Statement of Cash Flows – Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85Statement of Changes in Assets and Liabilities – Agency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –Food Service Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91Capital Assets InformationSchedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –Capital Projects Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92Schedule of General Capital Assets by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93Schedule of Changes in General Capital Assets by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . .94Debt InformationSchedule of General Long-Term Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96Schedule of General Long-Term Obligations Principal and Interest Requirements . . . . . . . . . . . . . . . . . .98i
Table of Contents (continued)STATISTICAL SE CTION (Unau dited)Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101Financial TrendsNet Assets by Component . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .General Revenues and Total Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Fund Balances, Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ten-Year Summary of Governmental Funds Revenues and Expenditures . . . . . . . . . . . . . . . . . . . . . .Ten-Year Comparison of Unreserved General Fund Balance to Expenditures and Other Uses . . . . . .104106108110112114Revenue CapacityAssessed Value and Estimated Actual Value of Taxable Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Property Tax Rates and Levies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118Principal Property Tax Payers – Current Year and Nine Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Debt CapacityOutstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Ten-Year Comparison of Bonded Debt to Assessed Value, EstimatedActual Value and Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126Percentage of Debt Service to Non-Capital Expenditures – Last Ten Fiscal Years . . . . . . . . . . . . . . . . 127Demographic and Economic InformationDemographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Principal Employers, Current Year and Nine Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132Operating InformationOperating Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Weighted Full-time Equivalent Average Daily Attendance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Staff by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Summary of Buildings and Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule of Major Insurance Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule of Surety Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Graduation Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .School Lunch Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pupil Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Statutory Reporting Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Independent Auditors Report on Internal Control over Financial Reportingand on Compliance and Other Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Independent Auditor's Report on Compliance with Requirementsapplicable to each Major Program and on Internal Control overCompliance in Accordance with OMB Circular A-133 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule of Expenditures of Federal, State and Other Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Summary of Prior Year Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii136139140142182184185186188191193196198213215
INTRODUCTORY SECTIONIntroductory Section1
Government Finance Officers Association AwardIntroductory Section2
Association School Business Officials AwardIntroductory Section3
4
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Breakthrough Leadership. Breakthrough Results. ! " # 9 0 " E ) Teaching and learning for college- and career-ready performance levels Q 0 0 " " " # # " " - ! 0 ' # " # " 2 # # - ! 0 " " # " ( / ) # # B # " # " " # F/48' /4% 29 # 0 - 7 0 0 % # " "# " 0 A 2 " - ) Teacher Effectiveness Initiative/Support for teachers Q 0 0 " * " 0 2 0
MEMPHIS CITY SCHOOLS A COMPONENT UNIT OFTHE CITY OF MEMPHIS, TENNESSEE COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal year ended June 30, 2010. Memphis City Schools . Memphis, Tennessee . Comprehensive Annual Financial Report . for the Fiscal Year Ended . June 30, 2010 . Prepared by:
