DISTRICT SCHOOL BOARD OF
ST. LUCIE COUNTY, FLORIDA
Financial Statements
For the Year Ended
June 30, 2011
TABLE OF CONTENTS
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Table of Contents
Table of Contents
i
Financial Section
Report of Independent Certified Public Accountants
1
Management’s Discussion and Analysis
3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets
10
Statement of Activities
11
Fund Financial Statements:
Balance Sheet – Governmental Funds
12
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets
13
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds
14
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
15
Statement of Net Assets – Proprietary Fund
16
Statement of Revenues, Expenses and Changes in Fund Net Assets –
Proprietary Fund
17
Statement of Cash Flows – Proprietary Fund
18
Statement of Fiduciary Net Assets – Fiduciary Funds
19
Notes to the Basic Financial Statements
20
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Other Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – General Fund
48
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – Major Special Revenue Fund –
Other Federal Programs
49
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – Major Special Revenue Fund –
Federal Economic Stimulus Programs Funds
50
Schedule of Funding Progress – Postemployment Benefits Plan
51
Note to Schedule of Funding Progress – Postemployment Benefits Plan
52
Compliance and Single Audit
Report of Independent Certified Public Accountants on Internal
Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
53
Report of Independent Certified Public Accountants on Compliance
With Requirements That Could Have a Direct and Material Effect
on Each Major Program and Internal Control over Compliance
in Accordance with OMB Circular A-133
55
Schedule of Expenditures of Federal Awards
57
Schedule of Findings and Questioned Costs
58
Summary of Prior Year Audit Findings
60
Other Information
Independent Auditors' Management Letter
61
FINANCIAL SECTION
Report of Independent Auditors
The Honorable Members of the School Board
District School Board of St. Lucie County
Ft. Pierce, Florida
We have audited the accompanying financial statements of the governmental activities, the discretely
presented component units, each major fund, and the aggregate remaining fund information of the
District School Board of St. Lucie County, Florida (the “District”), as of and for the year ended June
30, 2011, 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 School Board of St. Lucie
County’s management. Our responsibility is to express opinions on these financial statements based
on our audit. We did not audit the financial statements of the school internal funds, reported as
agency funds in the accompanying financial statements. Additionally, we did not audit the financial
statements of the discretely presented component units. Those financial statements were audited by
other auditors whose reports have been provided to us, and our opinions, insofar as they relate to the
amounts included for the agency fund and the discretely presented component units, are based solely
on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and 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 the significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit and the reports of other auditors provide a
reasonable basis for our opinions.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the discretely presented component units, each major fund, and the aggregate remaining
fund information of the District School Board of St. Lucie County, Florida, as of June 30, 2011, and the
respective changes in financial position, thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
As discussed in Note 10, the District has adopted the provisions of GASB 54, Fund Balance Reporting
and Governmental Fund Type Definitions, in the year ended June 30, 2011.
In accordance with Government Auditing Standards, we have also issued our report dated March 26,
2012 on our consideration of the District’s internal control over financial reporting and on 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 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.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 3 through 9, the budgetary comparison schedules
on pages 48 through 50, and schedule of funding progress on page 51 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financials,
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements as a whole. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and is not a required part of the basic financial
statements. The schedule of expenditures of federal awards is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare
the financial statements. The information has been subjected to the auditing procedures applied in
the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial statements as
a whole.
Orlando, Florida
March 26, 2012
2
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
MANAGEMENT’S DISCUSSION AND ANALYSIS
The Management of the District School Board of St. Lucie County have prepared the following discussion and
analysis to (a) assist the reader in focusing on significant financial issues, (b) provide an overview and analysis of
the District’s financial activities, (c) identify changes in the District’s financial position, (d) identify material
deviations from the approved budget, and (e) highlight significant issues in individual funds.
Because the information contained in the Management’s Discussion and Analysis (MD&A) is intended to highlight
significant transactions, events and conditions, it should be considered in conjunction with the District’s financial
statements and Notes to Financial Statements, included herein.
FINANCIAL HIGHLIGHTS
Key Financial highlights for the 2010-11 fiscal year included:




In total, net assets decreased $16,223,868, which represents a 2.72% decrease from the 2009-10 fiscal year.
General revenues total $368,645,249, or 94.36% of all revenues. Program specific revenues in the form of
charges for services, operating grants and contributions, and capital grants and contributions total
$22,043,840 or 5.64%.
Expenses totaled $406,912,957. Only $22,043,840 of these expenses were offset by program–specific
charges, with the remainder paid from general revenues. Total expenses exceeded total revenues by
$16,223,869.
The unassigned fund balance of the General Fund, representing the net current financial resources available
for general appropriation by the Board, totaled $28,364,135 at June 30, 2011, or 10.42 % of total General
Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
The basic financial statements consist of three components:
1.
2.
3.
Government-wide financial statements
Fund financial statements
Notes to the financial statements
Government-wide Financial Statements
The government-wide financial statements provide both short-term and long-term information about the District’s
overall financial condition in a manner similar to those of a private-sector business. The statements include a
statement of net assets and a statement of activities that are designed to provide consolidated financial information
about the governmental and business-type activities of the primary government presented on the accrual basis of
accounting. The statement of net assets provides information about the government’s financial position, its assets
and liabilities, using an economic resources measurement focus. The difference between the assets and liabilities,
the net assets, is a measure of the financial health of the District. The statement of activities presents information
about the change in the District’s net assets, the results of operations, during the fiscal year. An increase or decrease
in net assets is an indication of whether the District’s financial health is improving or deteriorating.
3
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
OVERVIEW OF THE FINANCIAL STATEMENTS (Cont’d)
The government-wide statements present the District’s activities in three categories:

Governmental activities – This represents most of the District’s services including its educational programs:
basic, vocational, adult, and exceptional education. Support functions such as transportation and administration
are also included. Local property taxes and the state’s education finance program provide most of the resources
that support these activities.

Component units – The District presents the St. Lucie County Educational Foundation, Inc., Renaissance
Charter School at St. Lucie, Inc., and NAU Charter School as discretely presented component units. Although
legally separate organizations, these component units are included in this report because they meet the criteria
for inclusion provided by generally accepted accounting principles. Financial information for these component
units is reported separately from the financial information presented for the primary government.

The St. Lucie School Board Leasing Corporation (Corporation), although also a legally separate entity, was
formed to facilitate financing for the acquisition of facilities and equipment for the District. Due to the
substantive economic relationship between the District and the Corporation, the Corporation has been included
as an integral part of the primary government.
Fund Financial Statements
Fund financial statements are one of the components of the basic 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. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements and prudent fiscal management. Certain funds are established by law while others are created by legal
agreements, such as bond covenants. Fund financial statements provide more detailed information about the
District’s financial activities, focusing on its most significant or “major” funds rather than fund types. This is in
contrast to the entity-wide perspective contained in the government-wide statements. All of the District’s funds may
be classified within one of the following broad categories:

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, the governmental funds utilize
a spendable financial resources measurement focus rather than the economic resources measurement focus
found in the government-wide financial statements. This financial resources measurement focus allows the
governmental fund statements to provide information on near-term inflows and outflows of spendable resources
as well as balances of spendable resources available at the end of the fiscal year.
The governmental fund statements provide a detailed short-term view that may be used to evaluate the District’s
near-term financing requirements. This short-term view is useful when compared to the long-term view
presented as governmental activities in the government-wide financial statements. To facilitate this
comparison, both the governmental funds balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation of governmental funds to governmental
activities.
The governmental funds balance sheet and statement of revenues, expenditures, and changes in fund balances
provide detailed information about the District’s most significant funds. The District’s major funds are the
General Fund, Special Revenue – ARRA Economic Stimulus Fund, Special Revenue - Other Federal Programs,
and Capital Projects – Other Fund. Data from the other governmental funds are combined into a single,
aggregated presentation.
4
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
The District adopts an annual appropriated budget for its governmental funds. A budgetary comparison
schedule has been provided for the General and Special Revenue – ARRA Economic Stimulus, and Other
Federal Program Funds, to demonstrate compliance with the budget.

Fiduciary Funds – Fiduciary funds are used to report the student activity, or “internal” funds, which are held in
a trustee or fiduciary capacity for the benefit of student class and club activities. Fiduciary funds are not
reflected in the government-wide statements because the resources are not available to support the District’s
own programs. In its fiduciary capacity, the District is responsible for ensuring that the assets reported in these
funds are used only for their intended purposes.
The District uses agency funds to account for school internal funds which are used to account for moneys
collected at the schools in connection with school, student athletic, class, and club activities.
Notes to Financial Statements
The notes provide additional information that is essential for a full understanding of the data provided in the
government-wide and fund financial statements.
5
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Assets
The following tables present summary information on net assets and the changes in net assets for the 2010-11 fiscal
year:
Condensed Statement of Net Assets:
Net Assets, End of Year
2011
Current and Other Assets
$
Capital Assets
100,865,442
2010
$
113,005,882
858,169,493
863,327,559
959,034,935
976,333,441
Long-Term Liabilities
Other Liabilities
357,370,809
24,263,603
358,866,744
23,842,306
Total Liabilities
381,634,412
382,709,050
528,854,607
30,967,969
17,577,947
537,017,062
50,420,348
6,186,981
Total Assets
Net Assets:
Invested in Capital Assets - Net of Related Debt
Restricted
Unrestricted
Total Net Assets
$
577,400,523
$
593,624,391
The largest portion of the District’s net assets (91.59%) reflects its investment in capital assets (e.g., land, buildings,
furniture and equipment), less any related debt still outstanding. The District uses these capital assets to provide
services to students; consequently, these assets are not available for future spending.
The restricted portion of the District’s net assets (5.36%) represents resources that are subject to external restrictions
on how they may be used. The unrestricted net assets (3.04%) may be used to meet the District’s ongoing
obligations to students, employees, and creditors.
The key elements of the changes in the District’s net assets for the fiscal years ended June 30, 2011 and June 30,
2010 are as follows:
6
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Operating Results for the Year
Governmental Activities
June 30, 2011
June 30, 2010
Program Revenues:
Charges for Services
$
Operating Grants and Contributions
Capital Grants and Contributions
5,174,594
$
4,857,122
13,530,424
14,469,510
3,338,822
945,487
General Revenues:
Property Taxes, Levied for Operational Purposes
107,619,813
115,949,498
Property Taxes, Levied for Capital Projects
24,248,234
26,933,059
Local Sales Taxes
12,323,138
12,254,068
201,751,218
182,467,065
Grants and Contributions not Restricted to Specific Programs
Unrestricted Investment Earnings
Miscellaneous
Total Revenues
247,968
236,958
22,454,878
23,544,834
390,689,089
381,657,601
199,477,958
185,159,353
14,971,295
16,648,321
Program Expenses:
Instruction
Pupil Personnel Services
Instructional Media Services
3,542,490
4,600,061
Instruction and Curriculum Development Services
7,440,160
7,859,274
Instructional Staff Training Services
6,680,582
5,900,855
Instruction Related Technology
293,077
315,680
Board of Education
900,603
942,242
General Administration
3,386,939
3,121,607
School Administration
21,783,492
18,654,071
Facilities Acquisition and Construction
3,730,908
2,695,502
Fiscal Services
1,531,662
1,495,710
Food Services
18,445,630
17,946,688
Central Services
3,913,023
4,140,036
Pupil Transportation Services
25,809,038
24,880,588
Operation of Plant
26,502,454
28,152,183
Maintenance of Plant
6,410,274
6,963,395
Administrative Technology Services
4,726,105
3,369,971
Community Services
1,181,333
624,110
Interest on Long-Term Debt
15,744,929
15,106,649
Unallocated Depreciation/Amortization Expense
40,441,005
32,759,565
406,912,957
381,335,861
Total Functions/ Program Expenses
(16,223,868)
Increase (Decrease) in Net Assets
Net Assets, Beginning
Net Assets, Ending
$
593,624,391
577,400,523
321,740
$
593,302,651
593,624,391
7
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Significant revenue sources included property and sales taxes, representing 30.70% of total revenues, and state
revenues, representing 38.52% of total government-wide revenues. Revenues from state sources for current
operation are primarily received through the Florida Education Finance Program (FEFP) funding formula. The
FEFP formula utilizes student enrollment data, and is designed to maintain equity in funding across all Florida
school district, taking into consideration the District’s funding ability based on the local property tax base. Other
state revenues are primarily for acquisition, construction, and maintenance of education facilities.
Instructional expenses continued to be the major component of District outlays, representing 49.02% of total
expenses. Total expenses increased $25,577,096, or 6.71% from the 2009-10 fiscal year, primarily due to increased
transportation and food service costs, instructional services costs, and depreciation expenses.
FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS
Major Governmental Funds
The General Fund is the chief operating fund of the District. At the end of the current fiscal year, its unassigned
balance is $28,364,135, while the total fund balance is $34,143,271. The unassigned fund balance increased by
$10,602,079 over the unreserved, undesignated fund balance for the 2009-10 fiscal year, and total fund balance
increased by $10,755,326. The key factor of this was an increase in total revenues and interfund operating transfers.
The Special Revenue Fund – Other Federal Programs and Special Revenue Fund – Federal Economic Stimulus
Programs both had a fund balance was $0 for the 2010-11 fiscal year. In these funds, revenues match expenditures,
and do not have a fund balance.
The Other Capital Projects Fund has a total fund balance of $23,758,181. The fund balance decreased by
$10,734,343 during the year, due to a decrease in state capital projects revenue and increased expenditures for
ongoing capital projects.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the course of the 2010-11 fiscal year, the District amended its General Fund budget several times, which
resulted in an increase of total budgeted revenues amounting to $558,217, less than 1 percent. At the same time,
final appropriations were less than the original budgeted amounts by $16,928,471. Budget amendments were
generally due to three factors: supplemental appropriations and amendments approved after the beginning of the
fiscal year to reflect new grants, changes to existing grants, and new revenue sources; changes in revenue estimates
for the State of Florida Education Finance Program (FEFP), and approval of transfers between expenditure
functions. The District maintained its ongoing practice of conservative budgeting and monitoring of expenditures in
order to increase fund balance for emergencies. Expenditures did not exceed budgeted amounts.
8
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
CAPITAL ASSETS AND LONG-TERM DEBT
Capital Assets
The District’s investment in capital assets for its governmental activities as of June 30, 2011, amounts to
$858,169,493 (net of accumulated depreciation). This investment in capital assets includes land; land
improvements; improvements other than buildings; buildings and fixed equipment; furniture, fixtures, and
equipment; motor vehicles; property under capital lease; construction in progress; and audio visual materials and
computer software.
Long-Term Debt
At June 30, 2011, the District had certificates of participation and bonds payable outstanding of $338,077,087.
Composition of long-term debt is described in the notes to the financial statements. During the year, the District
issued Refunding Certificates of Participation, Series 2011A, to refund a portion of its outstanding Certificates of
Participation, Series 2001, and Series 2003. The District also issued Certificates of Participation, Series 2010CQSCB, a Qualified School Construction Bond.
OTHER MATTERS OF SIGNIFICANCE
As previously noted, 38.52% of the District’s revenues came from the State of Florida, and approximately 30.70%
came from property and sales taxes. The State’s primary source of revenue is sales taxes, which are dependent on
consumer spending by residents and tourists. County property taxes are dependent on assessed property values as
well as tax payments by homeowners. As a result, changes in tourism, employment, property values and the arrival
of new residents into Florida and into St. Lucie County can significantly impact our expected revenues in any given
fiscal year.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the St. Lucie County District School Board’s
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Chief Financial Officer, 4204 Okeechobee Road, Ft.
Pierce, Florida 34947.
9
BASIC FINANCIAL STATEMENTS
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Net Assets
For the Year Ended June 30, 2011
Primary
Government
Governmental
Activities
Assets
Cash and cash equivalents
Investments
Accounts receivable, net
Deposits receivable
Due from other agencies
Inventory
Prepaid items and other assets
Restricted assets:
Cash with fiscal agent
Deferred charges:
Issuance costs
Capital assets:
Nondepreciable capital assets
Depreciable capital assets, net
Total assets
$
Liabilities
Salaries, benefits and payroll taxes payable
Accounts payable
Construction contracts retainage payable
Due to fiscal agent
Accrued interest
Due to other agencies
Unearned revenue
Noncurrent liabilities:
Portion due within one year:
Notes payable
Bonds payable
Obligations under capital leases
Liability for compensated absences
Certificates of participation payable
Estimated liability for unpaid claims
Portion due after one year:
Notes payable
Bonds payable
Obligations under capital leases
Liability for compensated absences
Certificates of participation payable
Other postemployment benefits obligation
Total liabilities
Net assets
Invested in capital assets, net of related debt
Restricted for:
Categorical carryover programs
Food service
Debt service
Capital projects
Other purposes
Unrestricted
Total net assets
The notes to the basic financial statements
are an integral part of this statement.
$
290,087
69,590,440
1,860,504
12,395,733
1,382,600
-
Component
Units
$
1,317,471
593,005
127,657
395,724
75,407
11,290,172
-
4,055,906
-
68,512,516
789,656,977
959,034,935
18,837,430
21,346,694
11,460,632
3,878,200
629,408
1,991,410
352,447
5,951,506
642,022
365,919
69,144
210,426
5,927,537
2,051,760
6,619,913
54,236
4,745
73,330
-
115,042,972
8,213,630
210,486,665
8,974,096
381,634,412
247,447
18,092,235
19,705,268
528,854,607
642,462
2,452,246
1,479,160
903,165
25,046,351
1,087,047
17,577,947
577,400,523
79,397
919,567
1,641,426
$
10
$
Component units:
Charter schools/Foundation
Total component unit
The notes to the basic financial statements
are an integral part of this statement.
406,912,957
$
Total primary government
$
$
$
278,708
278,708
5,174,594
5,174,594
5,174,594
$
$
$
217,585
217,585
13,530,424
13,257,092
273,332
13,530,424
Operating
Grants and
Contributions
Net assets - beginning
Net assets - ending
Change in net assets
General revenues:
Property taxes, levied for operational purposes
Property taxes, levied for capital projects
Local sales taxes
Grants and contributions not restricted to specific programs
Investment earnings
Miscellaneous
Total general revenues and transfers
13,363,686
13,363,686
199,477,958
14,971,295
3,542,490
7,440,160
6,680,582
293,077
900,603
3,386,939
21,783,492
3,730,908
1,531,662
18,445,630
3,913,023
25,809,039
26,502,453
6,410,274
4,726,105
1,181,333
15,744,929
40,441,005
406,912,957
Expenses
Functions/Programs
Primary government:
Governmental activities:
Instruction
Pupil personnel services
Instructional media services
Instruction and curriculum develop. services
Instructional staff training services
Instruction related technology
Board
General administration
School administration
Facilities acquisition and construction
Fiscal services
Food services
Central services
Pupil transportation services
Operation of plant
Maintenance of plant
Administrative technology services
Community services
Interest on long-term debt
Unallocated depreciation/amortization
Total governmental activities
Charges for
Services
Program Revenues
$
$
$
533,267
533,267
3,338,822
2,380,414
958,408
3,338,822
Capital
Grants and
Contributions
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Activities
For the Year Ended June 30, 2011
$
593,624,391
577,400,523
(16,223,868)
107,619,813
24,248,234
12,323,138
201,751,217
247,968
22,454,879
368,645,249
(384,869,117)
$ (199,477,958)
(14,971,295)
(3,542,490)
(7,440,160)
(6,680,582)
(293,077)
(900,603)
(3,386,939)
(21,783,492)
11,906,598
(1,531,662)
(12,997,704)
(3,913,023)
(25,809,039)
(26,502,453)
(6,410,274)
(4,726,105)
(1,181,333)
(14,786,521)
(40,441,005)
(384,869,117)
$
$
1,128,226
1,641,426
513,200
12,627,189
1,102
219,035
12,847,326
(12,334,126)
(12,334,126)
-
Net (Expense) Revenue and
Changes in Net Assets
Primary
Government
Governmental
Component
Activities
Units
11
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Balance Sheet
Governmental Funds
June 30, 2011
General
Fund
Assets
Cash and cash equivalents
Investments
Accounts receivable, net
Due from other funds
Due from other agencies
Inventory
Cash with Fical Service Agents
Total assets
Liabilities and fund balances
Liabilities:
Salaries, benefits and payroll taxes payable
Payroll deductions and withholdings
Accounts payable
Construction contracts retainage payable
Due to other agencies
Due to other funds
Deferred revenue
Total liabilities
$
$
$
Fund balances:
Nonspendable:
Inventory
Restricted for:
State Requirement Carryover Programs
Debt Service
Capital Projects
Fuel Tax Reserve
Food Service
Total Restricted Fund Balance
Assigned to:
FTE Adjustment
Educational Materials, Supplies, & Services
Total Assigned Fund Balance
Unassigned
Total Fund Balances
Total Liabilities and Fund balances
The notes to the basic financial statements
are an integral part of this statement.
$
Other
Federal Programs
Fund
31,709
42,957,518
1,675,300
5,809,216
1,188,496
862,194
52,524,433
$
8,067,888
2,865,461
1,650,330
54,637
4,873
5,737,973
18,381,162
$
$
Other Capital
Projects
Fund
ARRA
Fund
4,373
153
3,425,147
1,899,218
5,328,891
$
249,878
25
330,800
4,701,435
46,753
5,328,891
$
$
1,270
388
3,257,181
3,258,839
$
119,951
70,293
3,068,595
3,258,839
$
$
Other
Governmental
Funds
118,747
13,207,635
1,554,593
5,506,447
10,985,159
31,372,581
$
1,228,972
461,992
5,757,281
166,155
7,614,400
$
$
Total
Governmental
Funds
133,988
13,295,658
65,979
3,197,728
544,391
520,406
305,013
18,063,163
$
35,801
3,251
586,942
167,416
352,046
335,428
624
1,481,508
$
$
290,087
69,461,199
1,741,432
13,986,684
12,395,733
1,382,600
11,290,172
110,547,907
8,473,518
2,868,737
3,867,337
629,408
406,683
13,867,612
5,951,505
36,064,800
862,194
-
-
-
520,406
1,382,600
294,697
1,087,047
1,381,744
-
-
2,157,549
21,600,632
23,758,181
2,894,575
12,207,920
958,754
16,061,249
2,452,246
2,894,575
33,808,552
1,087,047
958,754
41,201,174
850,337
2,684,861
3,535,198
28,364,135
34,143,271
-
-
23,758,181
16,581,655
850,337
2,684,861
3,535,198
28,364,135
74,483,107
52,524,433
$
5,328,891
$
3,258,839
$
31,372,581
$
18,063,163
$
110,547,907
12
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Assets
June 30, 2011
Amounts reported for governmental activities in the statement of net assets are different because:
Ending fund balance - governmental funds
$
74,483,107
Capital assets, net of accumulated depreciation, used in governmental activities are not financial
resources, and therefore, are not reported as assets in the governmental funds.
858,169,493
Debt issuance costs are not expensed in the government-wide statements, but are reported as deferred
charges and amortized over the life of the debt.
4,055,906
Long-term liabilities are not due and payable in the current period and therefore are not reported as
liabilities in the governmental funds. Long-term liabilities at year-end consist of:
Bonds payable
(120,970,509)
Liability for compensated absences
(10,265,390)
Certificates of participation payable
(217,106,578)
Other postemployment benefits obligation
(8,974,096)
(357,316,573)
Interest on long-term debt is accrued as a liability in the government-wide statements, but is not
recognized in the governmental funds.
Net assets of governmental activities
The notes to the basic financial statements
are an integral part of this statement.
(1,991,410)
$
577,400,523
13
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2011
Other
Federal Programs
Fund
General
Fund
Revenues
Federal direct
Federal through state
State sources
Local sources
Total revenues
$
Expenditures
Current:
Instruction
Pupil personnel services
Instructional media services
Instruction and curriculum develop. services
Instructional staff training services
Instructional related technology
Board
General administration
School administration
Facilities acquisition and construction
Fiscal services
Food services
Central services
Pupil transportation services
Operation of plant
Maintenance of plant
Administrative technology services
Community services
Capital outlay:
Facilities acquisition and construction
Other capital outlay
Debt service:
Principal
Interest
Dues, fees and issuance costs
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Certificates of participation issued
Refunding certificates of participation issued
Premium on certificates of participation
Payments to refunded bond escrow agent
Loss recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balance - beginning
Fund balance - ending
The notes to the basic financial statements
are an integral part of this statement.
$
302,762
1,574,703
146,686,220
122,380,393
270,944,078
$
46,082
24,173,694
7,881
24,227,657
Other Capital
Projects
Fund
ARRA
Fund
$
28,019,178
28,019,178
$
13,109,711
13,109,711
Other
Governmental
Funds
Total
Governmental
Funds
$
$
771,898
13,223,892
3,814,155
31,016,606
48,826,551
1,120,742
66,991,467
150,508,256
166,506,710
385,127,175
172,408,565
8,724,691
1,256,540
2,491,872
952,126
290,345
892,297
2,424,368
20,865,767
216,924
1,517,385
26,711
3,804,557
19,158,136
26,097,683
6,249,877
3,799,636
762,614
10,331,426
700,969
6,825
3,524,440
4,292,011
629,714
140,858
52,388
778,546
10,789
407,710
14,470,959
5,406,134
2,246,689
1,354,869
1,374,219
301,284
573,814
7,828
19,624
597,335
147,000
100,789
882,463
-
2,593,982
-
2,508,913
18,248,169
-
197,210,950
14,831,794
3,510,054
7,371,181
6,618,356
290,345
892,297
3,355,366
21,580,439
5,327,647
1,517,385
18,274,880
3,876,569
20,534,017
26,255,472
6,350,666
4,682,099
1,170,324
71,414
130,529
3,054,107
297,874
33,200
502,971
15,632,318
1,456,731
16,465,410
1,504,405
35,256,449
3,892,510
78,918
272,220,955
24,227,657
28,019,178
19,683,031
12,830,001
15,193,486
732,075
67,482,459
12,830,001
15,272,404
732,075
411,633,280
(1,276,877)
-
-
(6,573,320)
(18,655,908)
(26,506,105)
1,618,517
10,833,271
(419,587)
12,032,201
-
-
7,896,400
(12,057,423)
(4,161,023)
103,600
54,850,000
213,321
(54,449,031)
4,322,693
25,443,414
(24,216,370)
6,267,627
8,000,000
54,850,000
213,321
(54,449,031)
5,941,210
36,276,685
(36,693,380)
14,138,805
10,755,324
-
-
(10,734,343)
(12,388,281)
(12,367,300)
23,387,947
-
-
34,492,524
28,969,936
86,850,407
34,143,271
$
-
$
-
$
23,758,181
$
16,581,655
$
74,483,107
14
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Government Funds to the
Statement of Activities
Year Ended June 30, 2011
Net change in fund balances - total governmental funds
$
(12,367,300)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of
those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of
depreciation expense in excess of capital outlays in the current period.
Capital Outlay - Capitalized
40,745,699
Less: Depreciation Expense
(45,524,469)
(4,778,770)
The statement of activities reflects only the gain/loss on the sale of assets, whereas the governmental funds
include all proceeds from these sales. Thus, the change in net assets differs from the change in fund balances
by the cost of assets sold.
(379,296)
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces longterm liabilities in the statement of net assets. This is the amount of the repayment of debt principal in the
current period.
Certificates of Participation
59,980,000
Bonds
5,495,000
65,475,000
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases longterm liabilities in the statement of net assets. These are the amounts attributable to debt issuances in the
current period.
Certificates of Participation
(62,850,000)
(62,850,000)
Premiums and discounts are reported in the governmental funds in the year debt is issued, but are deferred
and amortized over the life of the debt in the government wide statements.
Premium Amortization, Net of Proceeds
(27,143)
Discount Amortization
(1,345,359)
Refunding Costs, Net of Amortization
3,471,435
2,098,933
Debt issuance costs are reported in the year the debt is issued as an expenditure in the governmental funds;
these costs are reported in the government-wide statements as an asset and are amortized over the life of the
associated debt.
Deferred Charges, June 30, 2011
4,055,906
Deferred Charges, June 30, 2010
(4,154,530)
(98,624)
Interest on long-term debt is recognized as an expenditure in the governmental funds when due, but is
recognized as an expense when interest accrues in the statement of activities. This is the amount of accrued
interest at year-end, less that amount accrued in the prior year.
Accrued Interest, June 30, 2011
(1,991,410)
Accrued Interest, June 30, 2010
1,841,361
(150,049)
In the statement of activities, the cost of compensated absences is measured by the amounts earned during the
year, while in the governmental funds expenditures are recognized based on the amounts actually paid for
compensated absences. This is the net amount of compensated absences earned in excess of the amount paid
in the current period.
(1,247,678)
Other postemployment benefits are recorded in the statement of activities under the full accrual basis of
accounting, but are not recorded in the governmental funds until paid. This is the net increase in other
postemployment benefits liability for the current fiscal year.
(1,926,084)
Change in net assets of governmental activities
The notes to the basic financial statements
are an integral part of this statement.
$
(16,223,868)
15
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Net Assets
Proprietary Funds
June 30, 2011
Governmental
Activities
Internal
Service
Funds
Assets
Current assets
Investments
Total current assets
Total assets
Liabilities
Current liabilities
Accounts Payable
Salaries, Benefits and Payroll Taxes Payable
Total current liabilities
$
129,241
129,241
$
129,241
$
10,864
118,377
129,241
Total liabilities
Total liabilities and net assets
The notes to the financial statements
are an integral part of this statement.
129,241
$
129,241
16
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
Year Ended June 30, 2011
Governmental
Activities
Internal
Service
Funds
Operating revenues
Charges for Services
Other operating revenues
Total operating revenues
$
358,621
1,941
360,562
Operating expenses
Salaries
Employee benefits
Net cash used in
Materials and supplies
Other expenses
Total operating expenses
(278,614)
(123,416)
(144,444)
(224,055)
(6,728)
(777,257)
Operating Loss
(416,695)
Transfers In
Transfers Out
419,588
(2,893)
Change in net assets
-
Total net assets - beginning
-
Total net assets - ending
The notes to the financial statements
are an integral part of this statement.
$
-
17
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2011
Governmental
Activities
Internal
Service
Funds
Operating activities
Cash received from interfund services provided
Payments to suppliers
Payments to employees
Other receipts
Net cash used in
operating activities
$
(287,454)
Noncapital financing activities
Transfers in
Transfers out
Net cash provided by noncapital
financing activities
419,588
(2,893)
416,695
Investing activities
Purchase of investments
Net cash used in investing activities
(129,241)
(129,241)
Net change in cash and cash
equivalents
-
Cash and cash equivalents
Beginning of year
End of year
Reconciliation of operating income to net cash
used in operating activities
Operating loss
Adjustments to reconcile operating income
to net cash provided by operating activities:
Change in assets and liabilities
Increase in accounts payable
Increase in salaries and benefits payable
Total adjustments
Net cash used in operating activities
The notes to the financial statements
are an integral part of this statement.
358,621
(245,986)
(402,030)
1,941
$
$
-
(416,695)
10,864
118,377
129,241
$
(287,454)
18
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Statement of Fiduciary Net Assets
Fiduciary Fund
June 30, 2011
Agency Fund
Internal
Accounts
Assets
Cash and cash equivalents
Due from other funds
Inventory
$
2,036,202
4,758
11,044
$
2,052,004
Accounts payable
Due to other funds
Internal accounts payable
$
5,024
123,830
1,923,150
Total liabilities
$
2,052,004
Total assets
Liabilities
The notes to the basic financial statements
are an integral part of this statement.
19
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Reporting Entity
The St. Lucie County District School Board (Board) has direct responsibility for
operation, control, and supervision of District schools and is considered a primary
government for financial reporting. The St. Lucie County School District (District) is
considered part of the Florida system of public education. The governing body of the
District is the Board, which is composed of five elected members. The appointed
Superintendent of Schools is the executive officer of the Board. Geographic
boundaries of the District correspond with those of St. Lucie County.
Criteria for determining if other entities are potential component units that should be
reported within the District’s basic financial statements are identified and described in
the Governmental Accounting Standards Board’s (GASB) Codification of Governmental
Accounting and Financial Reporting Standards, Sections 2100 and 2600. The
application of these criteria provides for identification of any entities for which the Board
is financially accountable and other organizations for which the nature and significance
of their relationship with the School Board are such that exclusion would cause the
District’s basic financial statements to be misleading or incomplete. Based on the
application of these criteria, the following component units are included within the
District’s reporting entity:
Blended Component Unit. The St. Lucie County School Board Leasing
Corporation, Inc. (Leasing Corporation), was formed to facilitate financing for
the acquisition of facilities and equipment as further discussed in Note 7. Due
to the substantive economic relationship between the District and the Leasing
Corporation, the financial activities of the Leasing Corporation are included in
the accompanying basic financial statements. Separate financial statements for
the Leasing Corporation are not published.
Discretely Presented Component Units. The component units columns in the
government-wide financial statements include the financial data of the District's
other component units.
The St. Lucie County Education Foundation, Inc. (Foundation), is a separate
not-for-profit corporation organized and operated as a direct-support
organization to receive, hold, invest, and administer property and to make
expenditures to and for the benefit of the District. Because of the nature and
significance of its relationship with the District, the Foundation is considered a
component unit
Renaissance Charter School at St. Lucie, and the Imagine Charter School at
NAU, are both not-for-profit corporations organized pursuant to Chapter 617,
Florida Statutes, the Florida Not For Profit Corporation Act, and Section
1002.33, Florida Statutes. The charter school operates under a charter
approved by its sponsor, the St. Lucie County District School Board. The
charter school is considered to be a component unit of the District since it is
fiscally dependent on the District to levy taxes for its support.
The financial data reported on the accompanying statements was derived from the
Foundation’s and charter schools’ audited financial statements for the fiscal year ended
June 30, 2011. Audited financial statements are filed in the District’s administrative
offices.
20
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
 Basis of Presentation
Government-wide Financial Statements - Government-wide financial statements, i.e.,
the statement of net assets and the statement of activities, present information about
the District as a whole. These statements include the nonfiduciary financial activity of
the District and its component units.
Government-wide financial statements are prepared using the economic resources
measurement focus. The statement of activities presents a comparison between direct
expenses and program revenues for each function or program of the District’s
governmental activities. Direct expenses are those that are specifically associated
with a service, program, or department and are thereby clearly identifiable to a
particular function. Depreciation expense associated with the District’s transportation
departments is allocated to the pupil transportation services function, while remaining
depreciation expense is not readily associated with a particular function and is reported
as unallocated.
Program revenues include charges paid by the recipient of the goods or services
offered by the program, and grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program. Revenues that are not
classified as program revenues are presented as general revenues. The comparison
of direct expenses with program revenues identifies the extent to which each
governmental function is self-financing or draws from the general revenues of the
District.
The effects of interfund activity have been eliminated from the government-wide
financial statements.
Fund Financial Statements - Fund financial statements report detailed information
about the District in the governmental, proprietary, and fiduciary funds. The focus of
governmental fund financial statements is on major funds rather than reporting funds
by type. Each major fund is reported in a separate column. Nonmajor funds are
aggregated and reported in a single column. Because the focus of governmental fund
financial statements differs from the focus of government-wide financial statements, a
reconciliation is presented with each of the governmental fund financial statements.
The District reports the following major governmental funds:
General Fund – to account for all financial resources not required to be
accounted for in another fund, and for certain revenues from the State that are
legally restricted to be expended for specific current operating purposes.
Special Revenue – Other Federal Programs Fund – to account for certain
Federal grant program resources.
Special Revenue – ARRA Economic Stimulus Fund – to account for certain
Federal grant program resources related to the American Recovery and
Reinvestment Act (ARRA).
Capital Projects – Other – to account for other financial resources generated by
Certificates of Participation, Sales Tax Revenue Bonds, and other debt;
Classrooms First funds to be used for educational capital outlay needs,
including new construction, and remodeling and renovation projects; repair and
remediation of damage caused by hurricanes and tropical storms, along with
associated insurance loss recoveries.
21
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
Additionally, the District reports the following proprietary and fiduciary fund types:
Internal Service Funds – to account for the District’s publications operation.
Agency Funds – to account for resources of the school internal funds, which are
used to administer moneys collected at several schools in connection with
school, student athletic, class, and club activities.
 Basis of Accounting
Basis of accounting refers to when revenues and expenditures, or expenses, are
recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurements made, regardless of the
measurement focus applied.
Government-wide financial statements are prepared using the accrual basis of
accounting, as are the proprietary fund and fiduciary funds financial statements.
Revenues are recognized when earned and expenses are recognized when a liability
is incurred, regardless of the timing of the related cash flows. Property taxes are
recognized in the year for which they are levied. Revenues from grants, entitlements,
and donations are recognized in the fiscal year in which all eligibility requirements
imposed by the provider have been satisfied.
Governmental fund financial statements are prepared using the modified accrual basis
of accounting. Revenues, except for certain grant revenues, are recognized when they
become 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. The District considers revenues to be available if they are
collected within 60 days of the end of the current fiscal year, with exception of
insurance loss recoveries, which the District considers to be available if collection is
expected. When grant terms provide that the expenditure of resources is the prime
factor for determining eligibility for Federal, State, and other grant resources, revenue
is recognized at the time the expenditure is made. Under the modified accrual basis of
accounting, expenditures are generally recognized when the related fund liability is
incurred, except for principal and interest on long-term debt, claims and judgments,
other postemployment benefits, and compensated absences, which are recognized
when due.
Allocations of cost, such as depreciation, are not recognized in
governmental funds.
The proprietary fund is accounted for as a proprietary activity under standards issued
by the Financial Accounting Standards Board through November 1989, and applicable
standards issued by the Governmental Accounting Standards Board. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with
ongoing operation. The principal operating revenues of the District’s internal service
fund are charges for printing. Operating expenses include supplies, materials, and
personnel involved in printing operations. Revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
22
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
When both restricted and unrestricted resources are available for use, the District uses
restricted resources first, then unrestricted resources as they are needed. When
committed, assigned, or unassigned resources are available for use in governmental
fund financial statements, the District uses committed resources first, followed by
assigned resources, and then unassigned resources as they are needed.
The St. Lucie Education Foundation, Inc., is accounted for under the not-for-profit basis
of accounting and uses the accrual basis of accounting whereby revenues are
recognized when earned and expenses are recognized when incurred.
The charter schools are accounted for as governmental organizations and follow the
same accounting model as the District’s governmental activities.
 Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term, highly liquid investments with original maturities of three
months or less. Investments classified as cash equivalents include amounts placed
with the State Board of Administration (SBA) in Florida PRIME, formerly known as the
Local Government Surplus Funds Trust Fund Investment Pool.
Cash deposits are held by banks qualified as public depositories under Florida law. All
deposits are insured by Federal depository insurance, up to specified limits, or
collateralized with securities held in Florida's multiple financial institution collateral pool
as required by Chapter 280, Florida Statutes.
Investments consist of amounts placed with the State Board of Administration (SBA) in
Florida PRIME, with SBA for participation in Florida PRIME and the Fund B Surplus
Funds Trust Fund (Fund B) investment pools created by Sections 218.405 and
218.417, Florida Statutes, and those made locally. These investment pools operate
under investment guidelines established by Section 215.47, Florida Statutes.
The District’s investments in Florida PRIME, which SBA indicates is a Securities and
Exchange Commission Rule 2a7-like external investment pool, as of June 30, 2011,
are similar to money market funds in which shares are owned in the fund rather than
the underlying investments. These investments are reported at fair value, which is
amortized cost.
The District’s investments in Fund B are accounted for as a fluctuating net asset value
pool, with a fair value factor of 0.78965331 at June 30, 2011. Fund B is not subject to
participant withdrawal requests. Distributions from Fund B, as determined by SBA, are
effected by transferring eligible cash or securities to Florida PRIME, consistent with the
pro rata allocation of pool shareholders of record at the creation date of Fund B. One
hundred percent of such distributions from Fund B are available as liquid balance
within Florida PRIME.
Investments made locally consist of money market funds and are reported at fair value.
Types and amounts of investments held at fiscal year-end are described in a
subsequent note on investments.
23
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
 Inventories
Inventories consist of expendable supplies held for consumption in the course of
District operations. Inventories are stated at cost on the weighted moving average
basis, except that the United States Department of Agriculture donated foods are
stated at their fair value as determined at the time of donation to the District's food
service program by the Florida Department of Agriculture and Consumer Services,
Bureau of Food Distribution. The costs of inventories are recorded as expenditures
when used rather than purchased.
 Capital Assets
Expenditures for capital assets acquired or constructed for general District purposes
are reported in the governmental fund that financed the acquisition or construction.
The capital assets so acquired are reported at cost in the government-wide statement
of net assets but are not reported in the governmental fund financial statements.
Capital assets are defined by the District as those costing more than $1,000. Such
assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated assets are recorded at fair value at the date of donation.
Capital assets are depreciated or amortized using the straight-line method over the
following estimated useful lives:
Description
Improvements Other than Buildings
Buildings and Fixed Equipment
Estimated Lives
8 - 40 years
10 - 50 years
Furniture, Fixtures, and Equipment
3 - 15 years
Motor Vehicles
5 - 10 years
Audio Visual Materials and Computer Software
3 - 5 years
Current year information relative to changes in capital assets is described in a
subsequent note.
 Long-Term Liabilities
Long-term obligations that will be financed from resources to be received in the future
by governmental funds are reported as liabilities in the government-wide statement of
net assets. Bond and Certificates of Participation premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the
effective interest method. Bonds and Certificates of Participation payable are reported
net of the applicable bond premium or discount. Debt issuance costs are reported as
deferred charges and amortized over the term of the related debt.
24
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
In the governmental fund financial statements, bonds and other long-term obligations
are not recognized as liabilities until due. Governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current period.
The face amount of debt issued is reported as other financing sources, while discounts
on debt issuances are reported as other financing uses. Issuance costs, whether or
not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
In the government-wide financial statements, compensated absences (i.e., paid
absences for employee vacation leave and sick leave) are accrued as liabilities to the
extent that it is probable that the benefits will result in termination payments. A liability
for these amounts is reported in the governmental fund financial statements only if it
has matured, such as for occurrences of employee resignations and retirements.
Changes in long-term liabilities for the current year are reported in a subsequent note.
 State Revenue Sources
Significant revenues from State sources for current operations include the Florida
Education Finance Program administered by the Florida Department of Education
(Department) under the provisions of Section 1011.62, Florida Statutes. In accordance
with this law, the District determines and reports the number of full-time equivalent
(FTE) students and related data to the Department. The Department performs certain
edit checks on the reported number of FTE and related data, and calculates the
allocation of funds to the District. The District is permitted to amend its original
reporting for a period of five months following the date of the original reporting. Such
amendments may impact funding allocations for subsequent years. The Department
may also adjust subsequent fiscal period allocations based upon an audit of the
District's compliance in determining and reporting FTE and related data. Normally,
such adjustments are treated as reductions or additions of revenue in the year when
the adjustments are made.
The State provides financial assistance to administer certain educational programs.
State Board of Education rules require that revenue earmarked for certain 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 educational programs. The Department
generally requires that these educational program revenues be accounted for in the
General Fund. A portion of the fund balance of the General Fund is reserved in the
governmental fund financial statements for the unencumbered balance of categorical
and earmarked educational program resources.
The State allocates gross receipts taxes, generally known as Public Education Capital
Outlay money, to the District on an annual basis. The District is authorized to expend
these funds only upon applying for and receiving an encumbrance authorization from
the Department.
A schedule of revenue from State sources for the current year is presented in a
subsequent note.
25
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
 District Property Taxes
The Board is authorized by State law to levy property taxes for district school
operations, capital improvements, and debt service.
Property taxes consist of ad valorem taxes on real and personal property within the
District. Property values are determined by the St. Lucie County Property Appraiser,
and property taxes are collected by the St. Lucie County Tax Collector.
The Board adopted the 2010 tax levy on September 14, 2010. Tax bills are mailed in
October and taxes are payable between November 1 of the year assessed and March
31 of the following year at discounts of up to 4 percent for early payment.
Taxes become a lien on the property on January 1, and are delinquent on April 1, of
the year following the year of assessment. State law provides for enforcement of
collection of personal property taxes by seizure of the property to satisfy unpaid taxes,
and for enforcement of collection of real property taxes by the sale of interest bearing
tax certificates to satisfy unpaid taxes. The procedures result in the collection of
essentially all taxes prior to June 30 of the year following the year of assessment.
Property tax revenues are recognized in the government-wide financial statements
when the Board adopts the tax levy. Property tax revenues are recognized in the
governmental fund financial statements when taxes are received by the District, except
that revenue is accrued for taxes collected by the St. Lucie County Tax Collector at
fiscal year-end but not yet remitted to the District.
Millages and taxes levied for the current year are presented in a subsequent note.
 Capital Outlay Surtax
In October 2005, the voters of St. Lucie County approved a one-half cent school capital
outlay surtax on sales in the County for 20 years, effective January 1, 2006, to pay
construction costs of certain school facilities and related costs in accordance with
Section 212.055(6), Florida Statutes.
 Educational Impact Fees
St. Lucie County imposes an educational impact fee based on an ordinance adopted
by the County Commission. The educational impact fee is collected by the County for
most new residential construction. The fees are collected by the County and each
municipality within the County based on an interlocal agreement. The fees shall be
used solely for the purpose of providing capital improvements to the public educational
system necessitated by new residential development, and shall not be used for any
expenditure that would be classified as a maintenance or repair expense. The
authorized uses include, but are not limited to, land acquisition, facility design and
construction costs, furniture and equipment, and payment of principal, interest, and
related costs of indebtedness necessitated by new residential development. Because
the educational impact fee is similar to a capital-type special assessment, it is reported
as a program revenue in the government-wide financial statements.
26
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)
 Federal Revenue Sources
The District receives Federal awards for the enhancement of various educational
programs. Federal awards are generally received based on applications submitted to,
and approved by, various granting agencies. For Federal awards in which a claim to
these grant proceeds is based on incurring eligible expenditures, revenue is
recognized to the extent that eligible expenditures have been incurred.
2.
BUDGETARY COMPLIANCE AND ACCOUNTABILITY
 Budgetary Information
The Board follows procedures established by State statutes and State Board of
Education rules in establishing budget balances for governmental funds, as described
below:
Budgets are prepared, public hearings are held, and original budgets are
adopted annually for all governmental fund types in accordance with
procedures and time intervals prescribed by law and State Board of Education
rules.
Appropriations are controlled at the object level (e.g., salaries, purchased
services, and capital outlay) within each activity (e.g., instruction, pupil
personnel services, and school administration) and may be amended by
resolution at any School Board meeting prior to the due date for the annual
financial report.
Budgets are prepared using the same modified accrual basis as is used to
account for governmental funds.
Budgetary information is integrated into the accounting system and, to facilitate
budget control, budget balances are encumbered when purchase orders are
issued. Appropriations lapse at fiscal year-end and encumbrances outstanding
are honored from the subsequent year's appropriations.
27
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
3.
INVESTMENTS
As of June 30, 2011, the District has the following investments and maturities:
Investments
Maturities
Fair Value
State Board of Administration (SBA):
Florida PRIME (1)
Fund B Surplus Funds Trust Fund (Fund B)(5)
Debt Service Accounts
31 Day Average
$
7.16 Year Average
43,187,972
260,172
6 Months
127,082
Fidelity Institutional Money Market Treasury Portfolio Class III
51 Day Average
Fidelity Institutional Prime Money Market (2)
44 Day Average
94,303
Florida Education Investment Trust Fund
48 Day Average
2,501,135
Bank of America Master Repurchase Contract
First American Treasury Obligations Fund Class Z (3)
33,582,220
April 2020
939,586
46 Day Average
62,970
US Bank Money Market Fund (4)
125,172
Total Investments, Primary Government
$
80,880,612
Component Unit(s):
Money Market Funds
$
182,537
Total Investments, Reporting Entity
$
81,063,149
Notes: (1) Includes $10,747,555 of funds held in trust in connection with Certificates of Participation, Series 2001, Series 2003,
Series 2007, Series 2010B-QSCB, and Series 2010C-QSCB reported as Cash with Fiscal Agent for financial statement reporting
(2) Comprised of funds held in trust in connection with Certificates of Participation, Series 2011 reported as Cash with
Fiscal Agent for financial statement reporting purposes.
(3) Comprised of funds held in trust in connection with Certificates of Participation, Series 2004A, and Series 2007, and
reported as Cash with Fiscal Agent for financial statement reporting purposes.
(4) Comprised of funds held in trust in connection with Certificates of Participation, Series 2005, Series 2010B-QSCB, and
Series 2010C-QSCB, and reported as Cash with Fiscal Agent for financial statement reporting purposes.
(5) Comprised of funds held in trust in connection with Certificates of Participation, Series 2007,and reported as Cash with
Fiscal Agent for financial statement reporting purposes.
Interest Rate Risk
The District’s investment policy encourages investment maturities that match
known cash flow needs and anticipated cash flow requirements as a means of
managing its exposure to fair value losses from increasing interest rates.
Investment of current operating funds shall have maturities no longer than two
years. Investment of bond reserves, construction funds, and other nonoperating
funds shall have a term appropriate to the need for funds and in accordance with
debt covenants, but shall not exceed five years.
The District’s various money market investments had a weighted average days to
maturity (WAM) ranging from 31 to 51 days at June 30, 2011. A portfolio’s WAM
reflects the average maturity in days based on final maturity or reset date, in the
case of floating rate instruments. WAM measures the sensitivity of the portfolio to
interest rate changes. In the calculation of the weighted average life (WAL), the
time at which an expected principal amount is to be received, measured in years,
is weighted by the principal amount received at that time divided by the sum of all
expected principal payments. The principal amounts used in the WAL calculation
are not discounted to present value as they would be in a weighted average
duration calculation. The WAL, based on expected future cash flows, of Fund B at
June 30, 2011, is estimated at 7.16 years. However, because Fund B consists of
restructured or defaulted securities there is considerable uncertainty regarding the
WAL.
28
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
3.
INVESTMENTS (Continued)
Credit Risk
The District’s investment policy limits investments to Florida PRIME or any
intergovernmental pool authorized pursuant to the Florida Interlocal Cooperating
Act, as provided in Section 163.01, Florida Statutes; United States Treasury
securities, obligations of United States Government Agencies and
Instrumentalities, SEC registered money market funds with an average weighted
maturity of 90 days or less; certain repurchase agreements, commercial papers;
bankers’ acceptances, and state or local government taxable or tax-exempt debt,
subject to various limitations.
The District’s investments in SBA Debt Service accounts are to provide for debt
service payments on bond debt issued by the State Board of Education for the
benefit of the District. The District relies on policies developed by SBA for
managing interest rate risk and credit risk for this account.
As of June 30, 2011, the District’s investment in Florida PRIME, the First American
Treasury Fund, and the Florida Education Investment Trust Fund are rated AAAm
by Standard & Poor’s. Fund B is unrated. The Fidelity Institutional Prime Money
Market and Fidelity Institutional United States Treasury Money Market are rated
AAAm by Standard & Poor’s. The U. S. Bank Money Market fund are considered
cash equivalents and are rated A-1 by Standard & Poor’s.
Custodial Credit Risk
Section 218.415(18), Florida Statutes, requires the District to earmark all
investments and 1) if registered with the issuer or its agents, the investment must
be immediately placed for safekeeping in a location that protects the governing
body’s interest in the security; 2) if in book entry form, the investment must be held
for the credit of the governing body by a depository chartered by the Federal
Government, the State, or any other state or territory of the United States which
has a branch or principal place of business in this State, or by a national
association organized and existing under the laws of the United States which is
authorized to accept and execute trusts and which is doing business in this State,
and must be kept by the depository in an account separate and apart from the
assets of the financial institution; or 3) if physically issued to the holder but not
registered with the issuer or its agents, must be immediately placed for
safekeeping in a secured vault. The District investment policy addresses custodial
credit risk in that all securities, with the exception of the Florida Educational
Investment Trust, are held with a third-party custodian; and all securities
purchased by and all collateral obtained by the District should be properly
designated as an asset of the District. The securities must be held in an account
separate and apart from the assets of the financial institution.
Concentration of Credit Risk
The District’s investment policy limits the amounts that may be invested in any one
issuer ranging from 25 to 100 percent depending on investment type.
29
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
4.
CHANGES IN CAPITAL ASSETS
Changes in capital assets are presented in the table below:
Balance
Balance
7/1/2010
Additions
Deletions
6/30/2011
GOVERNMENTAL ACTIVITIES
Capital Assets Not Being Depreciated:
Land
$
40,020,578
$
16,302
$
-
$
40,036,880
Land Improvements - Nondepreciable
1,065,033
20,867
-
Construction in Progress
11,105,867
22,016,368
5,732,499
27,389,736
52,191,478
22,053,537
5,732,499
68,512,516
Total Assets
1,085,900
Capital Assets Being Depreciated:
Improvements Other Than Buildings
13,808,506
219,717
-
14,028,223
927,958,960
18,596,908
-
946,555,868
Furniture, Fixtures and Equipment
44,640,202
3,851,747
1,240,090
47,251,859
Motor Vehicles
31,813,302
133,203
2,299,851
29,646,654
-
-
Buildings and Fixed Equipment
Audio Visual Materials
-
Computer Software
Total Capital Assets Being Depreciated
-
13,513,100
2,189,501
693,396
15,009,205
1,031,734,070
24,991,076
4,233,337
1,052,491,809
Less Accumulated Depreciation for:
Improvements Other Than Buildings
4,839,320
786,112
-
5,625,432
163,890,258
29,192,505
-
193,082,763
Furniture, Fixtures, and Equipment
24,701,888
11,354,898
696,796
35,359,990
Motor Vehicles
16,848,895
2,819,021
2,244,022
17,423,894
-
-
Buildings and Fixed Equipment
Audio Visual Materials
-
Computer Software
-
10,317,628
1,371,933
346,808
11,342,753
Total Accumulated Depreciation
220,597,989
45,524,469
3,287,626
262,834,832
Total Capital Assets Being Depreciated, Net
811,136,081
(20,533,393)
945,711
789,656,977
Governmental Activities Capital Assets, Net
$
863,327,559
$
1,520,144
$
6,678,210
$
858,169,493
Depreciation expense was charged to functions as follows:
Function
GOVERNMENTAL ACTIVITIES
Pupil Transportation Services
Unallocated
Total Depreciation Expenses - Governmental Activities
Amount
$
$
5,083,464
40,441,005
45,524,469
30
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
5.
SHORT-TERM DEBT
The following is a schedule of short-term debt issued during the fiscal year:
Beginning
Balance
Ending
Balance
Additions
Deductions
$ 20,000,000
$ 20,000,000
$
$ 20,000,000
$ 20,000,000
$
GOVERNMENTAL ACTIVITIES
Tax Anticipation Note
$
Total Governmental Activities
$
-
-
Proceeds from the tax anticipation note were used as a working capital reserve in the General
Fund as permitted under State and Federal tax laws.
6.
CERTIFICATES OF PARTICIPATION
Certificates of Participation outstanding at June 30, 2011, were as follows:
Series
Amount
Outstanding
Interest
Lease
Original
Amount
Rates
Term
(Percent)
Maturity
Series 2003A
13,190,000
3,675,000
4.375 - 5.00
3.20 - 4.10
2023
2018
$ 70,400,000
34,805,000
Series 2004A
75,225,000
3.40 - 5.00
2030
75,580,000
1,277,000
(1)
2020
1,277,000
Series 2005
32,570,000
3.375 - 5.00
2030
38,600,000
Series 2007
21,265,000
3.40 - 4.50
2033
21,865,000
Series 2010B-QSCB
12,232,000
0.47 (2)
2027
12,232,000
Series 2010C-QSCB
8,000,000
0.39 (2)
2028
8,000,000
53,875,000
2.00 - 4.00
2021
54,850,000
Series 2001A, B, C
$
Series 2004-QZAB
Series 2011A, Refunding
221,309,000
Subtotal
(4,202,422)
Unamortized Premiums and Discounts
Total Certificates of Participation Payable
$
217,106,578
Notes:
(1) Interest on this debt is "paid"by the United States Government through the issuance of
Federal income tax credits to the holder of the QZAB. The rate of return to the holders was
established by the United States Government at the time of the sale.
(2) Series 2010B-QSCB and Series 2010C-QSCB (Qualified School Construction Bonds) are
primarily principal-only bonds, repaid by the District, with the investors receiving a tax credit in lieu
of interest payments. The QSCBs also have a supplemental interest component that was
necessary for marketing the bonds to investors. The interest rate listed is the difference between
the interest rate on the bonds and the issuer subsidy paid by the Federal government.
31
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
The Series 2001 Certificates. The District entered into a financing arrangement on August
21, 2001, which was characterized as a lease-purchase agreement, with the St. Lucie County
School Board Leasing Corporation (Leasing Corporation) whereby the District secured
financing of various educational facilities in the total amount of $70,400,000 to partially refund
its Certificates of Participation, Series 1995, and Series 2000, and to secure financing of
various educational facilities. The financing was accomplished through the issuance of
Certificates of Participation, Series 2001A, B, and C, to be repaid from the proceeds of rents
paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 32 years commencing on July 15, 2001. The properties covered by the ground lease
are, together with the improvements constructed thereon from the financing proceeds, leased
back to the District. If the District fails to renew the lease and to provide for the rent payments
through to term, the District may be required to surrender the sites included under the Ground
Lease Agreement for the benefit of the securers of the certificates for a period of time
specified by the arrangement which may be up to 32 years from the date of inception of the
arrangement.
The Series 2003 Certificates. The District entered into a financing arrangement on April 4,
2003, which was characterized as a lease-purchase agreement, with the Leasing Corporation
whereby the District secured financing of $34,805,000 to refund the remaining portion of its
Certificates of Participation, Series 1993, which were already partially refunded by the
issuance of Certificates of Participation, Series 2001A, B, and C (described above). The
Series 2003 Certificates were to be repaid from the proceeds of rents paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 30 years commencing on July 1, 2003. The properties covered by the ground lease
are, together with the improvements constructed thereon from the financing proceeds, leased
back to the District. If the District fails to renew the lease and to provide for the rent payments
through to term, the District may be required to surrender the sites included under the Ground
Lease Agreement for the benefit of the securers of the certificates for a period of time
specified by the arrangement which may be up to 30 years from the date of inception of the
arrangement.
The Series 2004 Certificates. The District entered into a financing arrangement on April 30,
2004, which was characterized as a lease-purchase agreement, with the Leasing Corporation
whereby the District secured financing of $75,580,000 for various educational facilities. The
Series 2004 Certificates were to be repaid from the proceeds of rents paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 26 years commencing on April 15, 2004. The properties covered by the ground lease
are, together with the improvements constructed thereon from the financing proceeds, leased
back to the District. If the District fails to renew the lease and to provide for the rent payments
through to term, the District may be required to surrender the sites included under the Ground
Lease Agreement for the benefit of the securers of the certificates for a period of time
specified by the arrangement which may be up to 30 years from the date of inception of the
arrangement.
32
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
The Series 2004 QZAB Certificates. The District entered into a financing agreement dated
April 30, 2004, under the Qualified Zone Academy Bonds (QZAB) Program. The QZAB
Program provides no-interest-cost financing to purchase certain goods and services for
schools located in eligible District areas (zones). The District secured financing of $1,277,000
through the issuance of Certificates of Participation, Series 2004-QZAB. Repayment of the
original $1,277,000 financing proceeds is due in full on April 29, 2020. In connection with the
financing, the District was required to make annual deposits to a sinking fund of $165,545.25
for 5 consecutive years beginning July 1, 2005. The required deposits, along with the
accrued interest, will be sufficient to repay the debt at maturity. The invested assets
accumulated pursuant to this agreement are held under a custodial agreement until the debt
matures.
The Series 2005 Certificates. The District entered into a financing arrangement on
September 21, 2005, which was characterized as a lease-purchase agreement, with the
Leasing Corporation whereby the District secured financing of $38,600,000 for various
educational facilities. The Series 2005 Certificates were to be repaid from the proceeds of
rents paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 23 years commencing on September 1, 2005. The properties covered by the ground
lease are, together with the improvements constructed thereon from the financing proceeds,
leased back to the District. If the District fails to renew the lease and to provide for the rent
payments through to term, the District may be required to surrender the sites included under
the Ground Lease Agreement for the benefit of the securers of the certificates for a period of
time specified by the arrangement which may be up to 30 years from the date of inception of
the arrangement.
The Series 2007 Certificates. The District entered into a financing arrangement on January
1, 2007, which was characterized as a lease-purchase agreement, with the Leasing
Corporation whereby the District secured financing of $21,865,000 for the planning and
construction of the Treasure Coast University Charter School (now called Palm Pointe
Educational Research School at Tradition). The Series 2007 Certificates were to be repaid
from the proceeds of rents paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 25 years commencing on April 15, 2004. The properties covered by the ground lease
are, together with the improvements constructed thereon from the financing proceeds, leased
back to the District. If the District fails to renew the lease and to provide for the rent payments
through to term, the District may be required to surrender the sites included under the Ground
Lease Agreement for the benefit of the securers of the certificates for a period of time
specified by the arrangement which may be up to 30 years from the date of inception of the
arrangement.
33
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
In connection with this financing arrangement, the District entered into an Education Facilities
Lease Purchase Agreement with the FAU – Treasure Coast University Schools, Inc. (TCUS),
a Florida not-for-profit corporation authorized and created by Florida Atlantic University, for
the purpose of facilitating the acquisition, construction, and operation of TCUS, as sublessee.
The term of the sublease commenced on January 31, 2007, and extends through June 30,
2021. In accordance with the sublease, the District constructed the Treasure Coast
University Charter School, now called Palm Pointe Educational Research School at Tradition.
During the term of the sublease, TCUS will remit Charter School Capital Funds to the Trustee
directly for deposit to the TCUS Revenue Fund.
The Series 2010B-QSCB Certificates. The District entered into a financing arrangement on
June 28, 2010, which was characterized as a lease-purchase agreement, with the Leasing
Corporation whereby the District secured financing of $12,232,000 for various educational
facilities. The Series 2010B Certificates were to be repaid from the proceeds of rents paid by
the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 17 years commencing on June 29, 2010. The properties covered by the ground
lease are, together with the improvements constructed thereon from the financing proceeds,
leased back to the District. If the District fails to renew the lease and to provide for the rent
payments through to term, the District may be required to surrender the sites included under
the Ground Lease Agreement for the benefit of the securers of the certificates for a period of
time specified by the arrangement which may be up to 17 years from the date of inception of
the arrangement.
The Series 2010C-QSCB Certificates. The District entered into a financing arrangement on
September 30, 2010, which was characterized as a lease-purchase agreement, with the
Leasing Corporation whereby the District secured financing of $8,000,000 for various
educational facilities. The Series 2010C Certificates were to be repaid from the proceeds of
rents paid by the District.
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 22 years commencing on October 1, 2010. The properties covered by the ground
lease are, together with the improvements constructed thereon from the financing proceeds,
leased back to the District. If the District fails to renew the lease and to provide for the rent
payments through to term, the District may be required to surrender the sites included under
the Ground Lease Agreement for the benefit of the securers of the certificates for a period of
time specified by the arrangement which may be up to 22 years from the date of inception of
the arrangement.
The Series 2011A Refunding Certificates.
The District entered into a financing
arrangement on May 3, 2011, which was characterized as a lease-purchase agreement, with
the Leasing Corporation whereby the District secured financing of $54,850,000 to refund a
portion of Certificates of Participation, Series 2001A, B, and C, and Certificates of
Participation, Series 2003. The Series 2011A refunding Certificates were to be repaid from
the proceeds of rents paid by the District.
34
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
As a condition of the financing arrangement, the District has given a ground lease on District
property to the Leasing Corporation, with a rental fee of $10 per year. The initial term of the
lease is 22 years commencing on May 4, 2011. The properties covered by the ground lease
are, together with the improvements constructed thereon from the financing proceeds, leased
back to the District. If the District fails to renew the lease and to provide for the rent payments
through to term, the District may be required to surrender the sites included under the Ground
Lease Agreement for the benefit of the securers of the certificates for a period of time
specified by the arrangement which may be up to 22 years from the date of inception of the
arrangement.
The District properties included in the ground lease under this arrangement include:
Certificates
Series 2001A, B, and C
Description of Properties
Renovation and Improvements at:
District Administration Building
Fairlawn Elementary School
Frances K. Sweet Elementary School
Dan McCarty Middle School
Ft. Pierce Magnet School of the Arts
Series 2003
Southport Middle School
Forest Grove Middle School
Manatee K-8 School
Rivers' Edge Elementary School
Savanna Ridge Elementary School
Southern Oaks Middle School
Lincoln Park Academy Addition
Maintenance/Transportation Complex
Series 2004
Oak Hammock K-8 School
Treasure Coast High School
Series 2004-QZAB
Technology-related equipment at 19 schools
Series 2005
Treasure Coast High School
Series 2007
Palm Pointe Educational Research School at Tradition
Series 2010B-QSCB
Lincoln Park Academy Additions and Renovations
Series 2010C-QSCB
Lincoln Park Academy Additions and Renovations
Series 2011A
Partial refunding of Series 2001A, B, C and Series 2003 Certificates
35
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
The following is a schedule by years of future minimum lease payments under the lease
agreements together with the present value of minimum lease payments as of June 30:
Fiscal Year Ending June 30
2012
Total
$
Principal
2013
16,732,636
16,943,825
2014
$
7,185,000
9,747,636
9,758,825
16,939,278
7,420,000
9,519,278
2015
16,936,153
7,675,000
9,261,153
2016
2017-2021
2022-2026
2027-2031
2032-2033
16,944,422
7,975,000
46,217,000
57,030,000
77,977,000
2,845,000
8,969,422
86,011,612
85,690,983
87,246,806
2,974,488
Total Minimum Lease Payments
$
346,420,203
$
6,985,000
Interest
221,309,000
$
39,794,612
28,660,983
9,269,806
129,488
$
125,111,203
BONDS PAYABLE
Bonds payable at June 30, 2011, are as follows:
Bond Type
State School Bonds:
Series 2002B
Series 2003A
Series 2005A
Series 2005B
Series 2009-A, Refunding
District Revenue Bonds:
Sales Tax Revenue Bonds, Series 2001
Sales Tax Revenue Bonds, Series 2006
Total Bonds Payable
Amount
Outstanding
$
660,000
565,000
2,545,000
430,000
365,000
2,745,000
111,080,000
$
Interest
Rates
(Percent)
Annual
Maturity
To
4.00 - 5.375
3.00 - 4.25
4.00 - 5.00
5.0
3.00 - 5.00
2014
2023
2017
2018
2019
5.2 - 6.3
3.5 - 4.0
2031
2027
118,390,000
The various bonds were issued to finance capital outlay projects of the District. The following
is a description of the bonded debt issues:
State School Bonds
These bonds are issued by the State Board of Education on behalf of the District.
The bonds mature serially, and are secured by a pledge of the District’s portion of
the State-assessed motor vehicle license tax. The State’s full faith and credit is
also pledged as security for these bonds. Principal and interest payments,
investment of Debt Service Fund resources, and compliance with reserve
requirements are administered by the State Board of Education and the State
Board of Administration.
36
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
6.
CERTIFICATES OF PARTICIPATION (Continued)
District Revenue Bonds

Series 2001 (Pari-Mutuel Revenues Replacement Program)
These bonds are authorized by Chapters 67-1996 and 76-480, Laws of Florida,
Section 212.20, Florida Statutes, Chapters 230, 235, 236, and 550, and a
resolution adopted by the St. Lucie County District School Board on June 12,
2001. These bonds are secured by pari-mutuel replacement revenues distributed
annually to St. Lucie County from the State pursuant to Section 212.20(6)(d)7.a.,
Florida Statutes, as a replacement for moneys distributed under Section 550.135,
Florida Statutes, prior to July 1, 2000.

Sales Tax Revenue Bonds, Series 2006
These bonds are authorized by Chapters 212, 1001, 1011, and 1013 Florida
Statutes; and a resolution adopted by the Board on May 23, 2006. These bonds
are secured by a pledge of the proceed received by the District from the levy and
collection of the one-half cent discretionary sales surtax revenues originally
approved by referendum of the voters of St. Lucie County on March 12, 1996, and
extended by the voters on October 18, 2005, through December 31, 2026. The
sales tax collections began on July 1, 2006, and will be in place for twenty years,
through December 2026. During the 2010-11 fiscal year, the District recognized
sales tax revenues totaling $12,323,138 and expended $9,988,040 (81 percent) of
these revenue for debt service directly collateralized by these revenues.
Annual requirements to amortize all bonded debt outstanding as of June 30, 2011
are as follows:
Fiscal Year
Ending
June 30
State School Bonds:
2012
2013
2014
2015
2016
2017-2021
2022-2023
Total
Principal
Interest
$
974,796
990,246
990,278
767,263
784,413
733,713
143,713
$
755,000
805,000
845,000
665,000
715,000
645,000
135,000
$
219,796
185,246
145,278
102,263
69,413
88,713
8,713
$
5,384,422
$
4,565,000
$
819,422
$
10,228,988
10,206,235
10,186,533
10,200,495
10,199,734
50,830,974
50,559,831
10,964,638
$
5,000,000
5,185,000
5,410,000
5,675,000
5,915,000
33,575,000
42,485,000
10,580,000
$
5,228,988
5,021,235
4,776,533
4,525,495
4,284,734
17,255,974
8,074,831
384,638
Total District Revenue Bonds
$
163,377,428
$
113,825,000
$
49,552,428
Total
$
168,761,850
$
118,390,000
$
50,371,850
Total State School Bonds
Sales Tax Revenue Bonds:
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
37
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
7.
DEFEASED DEBT
On May 3, 2011, the Board issued $54,850,000 in Refunding Certificates of Participation,
Series 2011A, with an average interest rate of 4.00 percent, to advance-refund a portion of
the District’s Certificates of Participation, Series 2001A, B, and C, and Series 2003A. The
Refunding Bonds are being issued to advance-refund the $37,980,000 principal amount of
the District’s Certificates of Participation, Series 2001A, B, and C that mature between July 1,
2012 and July 1, 2021; and to advance-refund the $14,665,000 principal amount of the
District’s Certificates of Participation, Series 2003A, that mature between July 1, 2013 and
July 1, 2018. The net proceeds of $54,449,030 (after payment of $614,290 in underwriting
fees, insurance, and other issuance costs) was placed in an irrevocable trust to provide for a
portion of future debt service payments on the Series 2001A, B, and C, and Series 2003
Certificates. As a result, $37,980,000 of the 2001 series Certificates and $14,665,000 of the
2003 series certificates are considered to be in-substance defeased and the liability for these
bonds has been removed from the government-wide financial statements.
The Series 2001A, B, and C Certificates and the Series 2003 Certificates were refunded to
reduce its total debt service payments over the next 11 years by approximately $2,042,444
and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $1,677,951.
In a prior year, State School Bonds, Series 1999-A, were defeased in substance by placing a
portion of the proceeds of State School Bonds, Series 2009-A, in an irrevocable trust to
provide for all future debt service payments on the old bonds. Accordingly, the trust account
assets and the liability for the in-substance defeased bonds are not included in the District’s
financial statements. On June 30, 2011, State School Bonds, Series 1999-A, totaling
$400,000 outstanding are considered defeased in substance.
8.
CHANGES IN LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities:
Balance
7/1/2010
Description
Additions
Deductions
Balance
6/30/2011
Due in
One Year
GOVERNMENTAL ACTIVITIES
Certificates of Participation Payable
$
Unamortized Discounts/Premiums
Less: Deferred Amount on Refundings
218,439,000
$
62,850,000
$
59,980,000
$
221,309,000
$
6,985,000
(2,276,026)
213,321
(1,331,718)
(730,987)
(9,073)
-
(3,509,652)
(38,217)
(3,471,435)
(356,014)
Certificates of Participation Payable, Net
216,162,974
59,553,669
58,610,065
217,106,578
6,619,913
Bonds Payable
Unamortized Premium
123,885,000
2,753,046
-
5,495,000
172,537
118,390,000
2,580,509
5,755,000
172,537
Bonds Payable, Net
126,638,046
-
5,667,537
120,970,509
5,927,537
Other Postemployment Benefits Payable
7,048,012
1,926,084
-
8,974,096
Compensated Absences Payable
9,017,712
3,299,437
2,051,759
10,265,390
Total Governmental Activities
$
358,866,744
$
64,779,190
$
66,329,361
$
357,316,573
2,051,760
$
14,599,210
For the governmental activities, compensated absences and other postemployment benefits
are generally liquidated with resources of the General Fund.
38
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
9.
INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The following is a summary of interfund receivables and payables reported in the fund
financial statements:
Interfund
Funds
Major:
General
Special Revenue:
Other
Federal Economic Stimulus Programs
Capital Projects:
Other
Nonmajor Governmental
Fiduciary
Total
Receivables
$
$
5,809,216
Payables
$
4,873
3,425,147
-
4,701,435
3,068,595
1,554,593
3,197,728
4,758
5,757,281
335,428
123,830
13,991,442
$
13,991,442
Interfund receivables and payables are generally temporary loans between funds to cover
operating expenses.
The following is a summary of interfund transfers reported in the fund financial statements:
Interfund
Transfers In
Transfers Out
Funds
Major:
General
Capital Projects:
Other
Nonmajor Governmental
Internal Service
Total
$
10,833,271
$
25,443,414
419,588
$
36,696,273
419,587
12,057,423
24,216,370
2,893
$
36,696,273
Interfund transfers are generally intended to cover maintenance expenditures and debt
service obligations as permitted by law.
10. FUND BALANCE REPORTING
The District implemented Governmental Accounting Standards Board Statement No. 54,
Fund Balance Reporting and Governmental Fund Types Definitions, for the fiscal year ended
June 30, 2011. The objective of the statement is to improve the usefulness and
understanding of fund balance information for users of the financial statements. The
reporting standard establishes a hierarchy for fund balance classifications and the constraints
imposed on the uses of those resources.
The District reports its governmental fund balances in the following categories:
Nonspendable
The net current financial resources that cannot be spent because they are either
not in spendable form or are legally or contractually required to be maintained
intact. Generally, not in spendable form means that an item is not expected to be
converted to cash. Examples of items that are not in spendable form include
inventory, prepaid amounts, long-term amounts of loans and notes receivable, and
property acquired for resale. The District classifies its amounts reported as
inventory as nonspendable.
39
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
10. FUND BALANCE REPORTING (Continued)
Restricted
The portion of fund balance on which constraints have been placed by creditors,
grantors, contributors, laws or regulations of other governments, constitutional
provisions, or enabling legislation. Restricted fund balance places the most binding
level of constraint on the use of fund balance. The District classifies most of its
fund balances other than General Fund as restricted, as well as unspent State
categorical and earmarked educational funding reported in the General Fund, that
are legally or otherwise restricted.
Committed
The portion of fund balance that can only be used for specific purposes pursuant
to constraints imposed by formal action of the highest level of decision-making
authority. These amounts cannot be used for any other purpose unless the Board
removes or changes the specified use by taking the same action it employed to
previously commit the amounts. The District did not have any committed fund
balances at June 30, 2011.
Assigned
The portion of fund balance that is intended to be used for specific purposes, but
is neither restricted nor committed. Assigned amounts include those that have
been set aside for a specific purpose by an authorized government body or official,
but the constraint imposed does not satisfy the criteria to be classified as restricted
or committed. This category includes any remaining positive amounts, for
governmental funds other than the General Fund, not classified as nonspendable,
restricted, or committed. The District also classifies amounts as assigned that are
constrained to be used for specific purposes based on actions of the
Superintendent or his designee as necessary, and not included in other
categories.
Unassigned
The portion of fund balance that is residual classification for the General Fund.
This balance represents amounts that have not been assigned to other funds and
that have not been restricted, committed, or assigned for specific purposes.
40
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
10. FUND BALANCE REPORTING (Continued)
The following is a schedule of fund balances by category at June 30, 2011:
Major Funds
Special
Revenue-
General
Special
ARRA
Capital
Nonmajor
Total
RevenueOther
Electronic
Stimulus
ProjectsOther
Governmental
Funds
Governmental
Funds
$
520,406
$ 1,382,600
Fund Balances
Nonspendable:
Inventory
$
862,194
$
-
$
-
$
-
Spendable:
Restricted
State Req Carryover
294,697
-
-
2,157,549
-
2,452,246
1,087,047
-
-
-
-
1,087,047
Food Service
-
-
-
-
958,754
958,754
Debt Service
-
-
-
-
2,894,575
2,894,575
Capital Projects
-
-
-
21,600,632
12,207,920
33,808,552
850,337
-
-
-
-
850,337
25,108
-
-
-
-
25,108
1,067,866
-
-
-
-
1,067,866
3,789
-
-
-
-
3,789
1,588,098
-
-
-
-
1,588,098
Fuel Tax Reserve
Assigned:
FTE Adjustment
Employee Benefits
Contracted Services
Energy Services
Instructional Materials & Supplies
28,364,135
Unassigned
Total Fund Balances
$ 34,143,271
$
-
$
-
-
-
28,364,135
-
$ 23,758,181
$ 16,581,655
$ 74,483,107
11. SCHEDULE OF STATE REVENUE SOURCES
The following is a schedule of the District’s State revenue for the 2010-11 fiscal year:
Source
Amount
Florida Education Finance Program
Categorical Educational Program - Class Size Reduction
Gross Receipts Tax (Public Education Capital Outlay)
Motor Vehicle License Tax (Capital Outlay and Debt Service)
School Recognition
Categorical Educational Programs - Other
Food Service Supplement
Mobile Home License Tax
Pari-Mutuel Tax
Fuel Tax Refunds
Discretionary Lottery Funds
Miscellaneous
$
101,367,882
42,198,616
1,870,323
1,451,809
1,418,262
1,023,520
273,332
233,855
223,250
151,558
143,360
152,489
Total
$
150,508,256
Accounting policies relating to certain State revenue sources are described in Note 1.
41
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
12. PROPERTY TAXES
The following is a summary of millages and taxes levied on the 2010 tax roll for the fiscal year
2010-11:
Millages
Taxes Levied
GENERAL FUND
Nonvoted School Tax:
Required Local Effort
Prior Period Funding Adjustment Millage
Basic Discretionary Local Effort
Critical Operating Needs
5.573
0.106
0.748
0.250
$
88,674,988
1,686,623
11,901,804
3,977,876
CAPITAL PROJECTS FUNDS
Nonvoted Tax:
Local Capital Improvements
1.500
Total
8.177
23,867,322
$
130,108,613
13. FLORIDA RETIREMENT SYSTEM
All regular employees of the District are covered by the State-administered Florida Retirement
System (FRS). Provisions relating to FRS are established by Chapters 121 and 122, Florida
Statutes; Chapter 112 Part IV, Florida Statutes; Chapter 238, Florida Statutes; and Florida
Retirement System Rules, Chapter 60S, Florida Administrative Code, wherein eligibility,
contributions, and benefits are defined and described in detail. Essentially all regular
employees of participating employers are eligible and must enroll as members of FRS. FRS
is a single retirement system administered by the Florida Department of Management
Services, Division of Retirement, and consists of two cost-sharing, multiple-employer
retirement plans and other nonintegrated programs. These include a defined benefit pension
plan (Plan), a Deferred Retirement Option Program (DROP), and a defined contribution plan,
referred to as the Public Employee Optional Retirement Program (PEORP).
Employees in the Plan vest at six years of service. All vested members are eligible for normal
retirement benefits at age 62 or at any age after 30 years of service, which may include up to
4 years of credit for military service except for members classified as special risk who are
eligible for normal retirement benefits at age 55 or at any age after 25 years of service. The
Plan also includes an early retirement provision; however, there is a benefit reduction for
each year a member retires before his or her normal retirement date. The Plan provides
retirement, disability, and death benefits, and annual cost-of-living adjustments.
DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible
for normal retirement under the Plan to defer receipt of monthly benefit payments while
continuing employment with an FRS employer. An employee may participate in DROP for a
period not to exceed 60 months after electing to participate, except that certain instructional
personnel may participate for up to 96 months. During the period of DROP participation,
deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
42
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
13. FLORIDA RETIREMENT SYSTEM (Continued)
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to
participate in PEORP in lieu of the Plan. District employees participating in DROP are not
eligible to participate in PEORP. Employer contributions are defined by law; however, the
ultimate benefit depends in part on the performance of investment funds. PEORP is funded
by employer contributions that are based on salary and membership class (Regular, Elected
County Officers, etc.). Contributions are directed to individual member accounts, and the
individual members allocate contributions and account balances among various approved
investment choices. Employees in PEORP vest after one year of service. There were 800
PEORP participants during the 2010-11 fiscal year. Required contributions made to PEORP
totaled $1,958,936.
FRS Retirement Contribution Rates
The Florida Legislature establishes, and may amend, contribution rates for each membership
class of FRS. During the 2010-11 fiscal year, contribution rates were as follows:
Clas s
Percent of Gros s Salary
Em ployee
Em ployer
(A)
Florida Retirem ent System, Regular
Florida Retirem ent System, Elected County Officers
Florida Retirem ent System, Senior Management Service
Florida Retirem ent System, Special Ris k
Teachers ' Retirem ent System, Plan E
Deferred Retirement Option Program - Applicable to
Mem bers from All of the Above Class es
Florida Retirem ent System, Reem ployed Retiree
Notes :
0.00
0.00
0.00
0.00
6.25
10.77
18.64
14.57
23.25
11.35
0.00
(B)
12.25
(B)
(A) Em ployer rates include 1.11 percent for the pos tem ployment health insurance s ubs idy.
Also, employer rates , other than for DROP participants, include 0.03 percent for
adminis trative cos ts of PEORP.
(B) Contribution rates are dependent upon retirem ent clas s in which reem ployed.
The District’s liability for participation is limited to the payment of the required contribution at
the rates and frequencies established by law on future payrolls of the District. The District’s
contributions including employee contributions, to the Plan for the fiscal years ended June 30,
2009, June 30, 2010, and June 30, 2011, totaled $16,487,966, $18,327,799, and
$20,314,130, respectively, which were equal to the required contributions for each fiscal year.
The financial statements and other supplementary information of FRS are included in the
comprehensive annual financial report of the State of Florida, which may be obtained from the
Florida Department of Financial Services. Also, an annual report on FRS, which includes its
financial statements, required supplementary information, actuarial report, and other relevant
information, is available from the Florida Department of Management Services, Division of
Retirement.
Effective July 1, 2011, all members of the FRS, except for DROP participants and
reemployed retirees who are not eligible for renewed membership, are required to contribute
three percent of compensation to the FRS.
43
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
14. OTHER POSTEMPLOYMENT BENEFITS PAYABLE
Plan Description. The Other Postemployment Benefits Plan (Plan) is a single-employer
defined benefit plan administered by the District. Pursuant to the provisions of Section
112.0801, Florida Statutes, employees who retire from the District are eligible to participate in
the District’s health and hospitalization plan for medical, prescription drug, dental, and vision
coverage. The District subsidizes the premium rates paid by retirees by allowing them to
participate in the Plan at reduced or blended group (implicitly subsidized) premium rates for
both active and retired employees. These rates provide an implicit subsidy for retirees
because, on an actuarial basis, their current and future claims are expected to result in higher
costs to the Plan on average than those of active employees. The District does not offer any
explicit subsidies for retiree coverage. Retirees are assumed to enroll in the Federal
Medicare program for their primary coverage as soon as they are eligible. The Plan does not
issue a stand-alone report, and is not included in the report of a public employee retirement
system or another entity.
Funding Policy. Plan contribution requirements of the District and Plan members are
established and may be amended through recommendations of the Insurance Committee and
action from the Board. The District has not advance-funded or established a funding
methodology for the annual other postemployment benefit (OPEB) costs or the net OPEB
obligation, and the Plan is financed on a pay-as-you-go basis. For the 2010-11 fiscal year,
216 retirees received other postemployment benefits. The District provided required
contributions of $1,330,858 toward the annual OPEB cost, net of retiree contributions totaling
$1,566,193.
Annual OPEB Cost and Net OPEB Obligation. The District’s annual OPEB cost (expense)
is calculated based on the annual required contribution (ARC), an amount actuarially
determined in accordance with parameters of Governmental Accounting Standards Board
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions. 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 30 years. The following table shows the
District's annual OPEB cost for the fiscal year, the amount actually contributed to the Plan,
and changes in the District's net OPEB obligation:
Description
Normal Cost (service cost for one year)
Amortization of Unfunded Actuarial
Accrued Liability
Amount
$ 2,092,901
1,143,158
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
3,236,059
281,920
(261,037)
Annual OPEB Cost (Expense)
3,256,942
Contribution Toward the OPEB Cost
Increase in Net OPEB Obligation
Net OPEB Obligation, Beginning of Year
Net OPEB Obligation, End of Year
(1,330,858)
1,926,084
7,048,012
$ 8,974,096
44
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
14. OTHER POSTEMPLOYMENT BENEFITS PAYABLE (Continued)
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
Plan, and the net OPEB obligation as of June 30, 2011 and the preceding years, were as
follows:
Fiscal Year
2008-09
2009-10
2010-11
Annual
OPEB Cost
$ 2,071,643
2,133,964
3,256,942
Percentage of
Annual
OPEB Cost
Contributed
42.19%
44.20%
40.86%
Net OPEB
Obligation
$ 5,857,269
7,048,012
8,974,096
Funded Status and Funding Progress. As of January 1, 2011, the most recent valuation
date, the actuarial accrued liability for benefits was $30,265,874, and the actuarial value of
assets was $0, resulting in an unfunded actuarial accrued liability of $30,265,874 and a
funded ratio of 0 percent. The covered payroll (annual payroll of active participating
employees) was $164,348,668 and the ratio of the unfunded actuarial accrued liability to the
covered payroll was 18.42 percent.
Actuarial valuations of an ongoing plan involve 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 and termination, mortality, and healthcare cost
trends. 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 required schedule
of funding progress immediately following the notes to financial statements presents multiyear
trend information about whether the actuarial value of Plan assets is increasing or decreasing
over time relative to the actuarial accrued liability for benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting
purposes are based on the substantive plan provisions, as understood by the employer and
participating members, and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between the employer and
participating members. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
The District’s OPEB actuarial valuation as of January 1, 2011 used the entry age normal cost
actuarial method to estimate the unfunded actuarial liability as of June 30, 2011, and the
frozen entry age normal cost actuarial method to estimate the District’s 2010-11 fiscal year
annual required contribution. Because the OPEB liability is currently unfunded, the actuarial
assumptions included a 4 percent rate of return on invested assets, which is the District’s
long-term expectation of investment returns. The actuarial assumptions also included a
payroll growth rate of 4 percent per year, and an annual healthcare cost trend rate of 9
percent initially for the 2009-10 fiscal year, reduced by .5 percent per year, to an ultimate rate
of 5 percent after nine years. The unfunded actuarial accrued liability is being amortized as a
level percentage of projected payroll on a closed basis. The remaining amortization period at
June 30, 2011, was 28 years.
45
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
15. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
Encumbrances. Appropriations in governmental funds are encumbered upon issuance of
purchase orders for goods and services. Even though appropriations lapse at the end of the
fiscal year, unfilled purchase orders of the current year are carried forward and the next
year's appropriations are likewise encumbered.
The following is a schedule of encumbrances at June 30, 2011:
Major Funds
Special
Revenue Other
General
$
2,704,409
Special
Revenue ARRA
Economic
Stimulus
$
-
$
Capital
Projects Other
-
$
6,574,386
Nonmajor
Governmental
Funds
$
2,422,081
Total
Governmental
Funds
$
11,700,876
Construction Contracts. The District had the following major construction contract
commitments at fiscal year-end:
Project
Contract
Amount
Completed
to Date
Balance
Committed
Lincoln Park Academy Middle School
Bayshore Elementary HVAC Renovation
$
19,667,000
848,768
$
15,577,362
136,204
$
4,089,638
712,564
Total
$
20,515,768
$
15,713,566
$
4,802,202
16. JOINT ACTIVITIES
By a resolution adopted on October 24, 1989, the Board entered into a joint project with the
St. Lucie County Board of County Commissioners (County) to build a library adjacent to the
middle school located on Morningside Boulevard in St. Lucie County, leased by the county to
the School Board. The Board of County Commissioners will operate and maintain the facility.
The lease is for a 40-year period and provides that the school has priority use, over the
general public, of the library for educational purposes and for extracurricular activities as part
of the normal school programs of the Board.
By interlocal agreement adopted on November 23, 1999, the Board entered into a joint project
with the County to build the South County Regional Stadium. The County will operate and
maintain the facility. The Board funded a portion of the construction costs by reimbursing the
County for its portion of the payment on the County’s Improvement Revenue Notes, Series
2000A. The interlocal agreement provides that the Board has priority use, over the general
public, of the stadium for high school football and soccer events.
By an interlocal agreement adopted on January 12, 1999, the Board entered into a joint
project with the County to purchase, construct, and maintain an 800 Megahertz radio system.
The Board agreed to fund a portion of the radio system’s cost by reimbursing the County for
15.95 percent of payments for the County’s Public Improvement Revenue Bonds, Series
2000A, that were issued to finance the project.
46
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
17. RISK MANAGEMENT PROGRAMS
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
St. Lucie County District School Board is a member of the South Central Educational Risk
Management Program (SCERMP), a consortium under which several district school boards
have established a combined limited self-insurance program for property protection, general
liability, automobile liability, workers' compensation, money and securities, employee fidelity
and faithful performance, boiler and machinery, and other coverage deemed necessary by the
members of the Consortium. Section 1001.42(12)(k), Florida Statutes, provides the authority
for the District to enter into such a risk management program. The Consortium is selfsustaining through member assessments (premiums), and purchases coverage through
commercial companies for claims in excess of specified amounts. The Board of Directors for
the Consortium is composed of superintendents of all participating districts. Employers’
Mutual, Inc., serves as the third-party administrator and fiscal agent for SCERMP.
18. SUBSEQUENT EVENTS
On January 5, 2012, the Board approved the issuance of Refunding Certificates of
Participation, Series 2011B, in the amount of $12,725,000. The Series 2011B Certificates are
being issued to refinance all or a portion of the outstanding Certificates of Participation, Series
2001A, B and C.
The 2006 Sales Tax Revenue Bond Resolution established a requirement to maintain a
reserve account or obtain an insurance policy to cover the reserve account requirement. If an
insurance policy is obtained in lieu of maintaining the reserve account the provider of the
insurance policy must maintain a certain credit rating established under the Bond Resolution.
Subsequent to June 30, 2011, the provider of the reserve account insurance policy had its
ratings downgraded below the rating required by the Bond Resolution. As such, on February
14, 2012, the District School Board authorized an irrevocable standby letter of credit with a
financial institution that meets the requirements of the Bond Resolution. The District’s credit
rating was not affected.
47
REQUIRED SUPPLEMENTARY INFORMATION
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended June 30, 2011
General Fund
Actual
Amounts
Budgeted Amounts
Original
Final
Revenues
Federal direct
Federal through state
State sources
Local sources
Total revenues
$
309,000
1,299,516
149,065,415
119,687,440
270,361,371
$
302,762
1,574,703
146,664,971
122,377,152
270,919,588
$
302,762
1,574,703
146,686,220
122,380,393
270,944,078
189,726,576
10,077,582
1,307,890
2,725,602
962,309
314,876
852,419
2,089,345
17,767,518
649,388
1,538,421
4,440,624
19,793,316
26,005,200
6,769,092
3,321,712
826,137
172,408,565
8,724,691
1,256,540
2,491,872
952,126
290,345
892,297
2,424,368
20,865,767
235,505
1,517,385
26,711
3,804,557
19,158,136
26,097,683
6,249,877
3,799,636
762,614
172,408,565
8,724,691
1,256,540
2,491,872
952,126
290,345
892,297
2,424,368
20,865,767
216,924
1,517,385
26,711
3,804,557
19,158,136
26,097,683
6,249,877
3,799,636
762,614
71,414
130,529
71,414
130,529
78,918
272,239,536
78,918
272,220,955
Variance with
Final Budget Positive
(Negative)
$
21,249
3,241
24,490
Expenditures
Current:
Instruction
Pupil personnel services
Instructional media services
Instruction and curriculum development services
Instructional staff training services
Instruction related technology
Board
General administration
School administration
Facilities acquisition and construction
Fiscal services
Food services
Central services
Pupil transportation services
Operation of plant
Maintenance of plant
Administrative technology services
Community services
Capital outlay:
Facilities acquisition and construction
Other capital outlay
Debt service:
Interest and fees
Total expenditures
289,168,007
Deficiency of revenues under expenditures
(18,806,636)
(1,319,948)
(1,276,877)
43,071
Other financing sources (uses)
Loss recoveries
Transfers In
Transfers Out
Total other financing sources (uses)
9,208
13,740,149
13,749,357
1,618,518
10,833,271
(419,587)
12,032,202
1,618,518
10,833,271
(419,587)
12,032,202
-
Net change in fund balance
(5,057,279)
10,712,254
10,755,325
43,071
23,387,946
23,387,946
23,387,946
-
$ 18,330,667
$ 34,100,200
$ 34,143,271
Fund balance - beginning
Fund balance - ending
The notes to the basic financial statements
are an integral part of this statement.
-
18,581
18,581
$
43,071
48
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Major Special Revenue - Other Federal Programs Fund
For the Year Ended June 30, 2011
Other Federal Programs Fund
Actual
Amounts
Budgeted Amounts
Original
Final
Revenues
Federal direct
Federal through state
State sources
Total revenues
$
Expenditures
Current:
Instruction
Pupil personnel services
Instructional media services
Instruction and curriculum development services
Instructional staff training services
General administration
School administration
Central services
Pupil transportation services
Operation of plant
Community services
Capital outlay:
Facilities acquisition and construction
Other capital outlay
Total expenditures
Deficiency of revenues under expenditures
Net change in fund balance
Fund balance - beginning
Fund balance - ending
The notes to the basic financial statements
are an integral part of this statement.
$
34,157
28,944,278
10,252
28,988,687
$
46,082
24,173,694
7,881
24,227,657
$
46,082
24,173,694
7,881
24,227,657
Variance with
Final Budget Positive
(Negative)
$
-
14,192,889
967,185
6,825
5,549,540
5,725,731
904,823
108,629
86,427
864,887
19,959
561,792
10,331,426
700,969
6,825
3,524,440
4,292,011
629,714
140,858
52,388
778,546
10,789
407,710
10,331,426
700,969
6,825
3,524,440
4,292,011
629,714
140,858
52,388
778,546
10,789
407,710
-
28,988,687
3,054,107
297,874
24,227,657
3,054,107
297,874
24,227,657
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
$
-
$
-
49
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Major Special Revenue - Federal Economic Stimulus
For the Year Ended June 30, 2011
Federal Economic Stimulus Funds
Budgeted Amounts
Original
Final
Revenues
Federal direct
Federal through state
Total revenues
$
Expenditures
Current:
Instruction
Pupil personnel services
Instructional media services
Instruction and curriculum development services
Instructional staff training services
General administration
School administration
Facilities acquisition and construction
Food services
Central services
Pupil transportation services
Operation of plant
Maintenance of plant
Administrative technology services
Capital outlay:
Facilities acquisition and construction
Other capital outlay
Total expenditures
Deficiency of revenues under expenditures
Net change in fund balance
Fund balance - beginning
Fund balance - ending
The notes to the basic financial statements
are an integral part of this statement.
$
21,753,951
21,753,951
$
Actual
Amounts
28,019,178
28,019,178
$
28,019,178
28,019,178
Variance with
Final Budget Positive
(Negative)
$
-
17,261,020
254,561
1,960,739
1,823,672
291,412
18,800
33,200
54,934
55,613
-
14,470,959
5,406,134
2,246,689
1,354,869
1,374,219
301,284
573,814
7,828
19,624
597,335
147,000
100,789
882,463
14,470,959
5,406,134
2,246,689
1,354,869
1,374,219
301,284
573,814
7,828
19,624
597,335
147,000
100,789
882,463
-
21,753,951
33,200
502,971
28,019,178
33,200
502,971
28,019,178
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
$
-
$
-
50
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Required Supplementary Information - Schedule of
Funding Progress - Postemployment Benefits Plan
Year Ended June 30, 2011
Actuarial
Valuation
Date
July 1, 2007
January 1, 2009
January 1, 2011
Actuarial Value
of Assets
$
-
Actuarial
Accrued
Liability (AAL) Projected
Unit Credit
$ 37,471,029
21,396,657
30,265,874
Unfunded
AAL (UAAL)
$
37,471,029
21,396,973
30,265,874
Funded Ratio
0%
0%
0%
Covered Payroll
$
171,627,548
185,938,733
164,348,668
UAAL as a
Percentage of
Covered Payroll
21.8%
11.5%
18.4%
51
ST. LUCIE COUNTY
DISTRICT SCHOOL BOARD
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
1.
SCHEDULE OF FUNDING PROGRESS – OTHER POSTEMPLOYMENT
BENEFITS
The January 1, 2011, unfunded actuarial accrued liability of $30,265,874 was
higher than the January 1, 2009, liability of $21,396,657 as a result of changes
in liabilities and costs as discussed below:
 The number of enrolled retirees receiving post-employment health
benefits increased to 216 from 179 in the previous valuation. By
contrast, the number of active employees eligible for future postemployment benefits decreased to 3,977 from 4,219 from the previous
valuation. These changes in population increased the cost and the
liability overall.
 In the previous valuation, the cost of coverage was expected to increase
from $694 to $900 per employee per month; however, the cost increased
only to $869 per employee per month for the 2009-10 fiscal year. This
change had a slight decreasing effect on the cost and liability.
 In the previous valuation, it was assumed that 25% of retiring employees
under the age of 65 would elect to continue medical coverage through
the District’s plan. However, in the current valuation, it was determined
that more retirees have been choosing to continue with the District’s
plan, so this assumption was raised to 35%. This change had an
increasing effect on the cost and liability.
 The assumed annual healthcare cost trend for medical and prescription
costs was revised. In the initial valuation, the initial healthcare cost trend
was assumed to be 19 percent for the first year, followed by 9% for 2011
and 8.5% for 2012, with subsequent trend rates decreasing ½% each
year thereafter to an ultimate rate of 5%. This assumption has been
revised to an 8.5% increase for the years 2012 and 2013, followed by a
decrease of ½% each year to an ultimate rate of 5%. This had a slight
increasing effect on the costs and liabilities.
52
COMPLIANCE AND SINGLE AUDIT
Independent Auditors’ Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Members of the School Board
District School Board of St. Lucie County, Florida
Ft. Pierce, Florida
We have audited the financial statements of the governmental activities, the discretely presented
component units, each major fund, and the aggregate remaining fund information of the District
School Board of St. Lucie County, Florida (the “District”) as of and for the year ended June 30, 2011,
which collectively comprise the District’s basic financial statements and have issued our report
thereon dated March 26, 2012. Our report includes references to other auditors. 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. Other auditors audited the financial statements of the
aggregate discretely presented component units and the school internal funds, as described in our
report on the District’s financial statements. This report does not include the results of the other
auditors’ testing of internal control over financial reporting or compliance and other matters that are
reported on separately by those auditors.
Internal Control Over Financial Reporting
Management of the District is responsible for establishing and maintaining effective internal control
over financial reporting. In planning and performing our audit, we considered the District’s internal
control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of the District’s internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of significant deficiencies, in internal control, such that there is a reasonable possibility
that a material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to indentify all deficiencies in internal control
over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses, as defined above.
53
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the District School Board, applicable
management, applicable federal and state agencies, and pass-through entities and is not intended to
be and should not be used by anyone other than these specified parties.
Orlando, Florida
March 26, 2012
54
Independent Auditors’ Report on Compliance with Requirements
That Could Have a Direct and Material Effect on Each Major
Program and on Internal Control Over Compliance
in Accordance with OMB Circular A-133
The Honorable Members of the
District School Board of St. Lucie County, Florida
Ft. Pierce, Florida
Compliance
We have audited the compliance of the District School Board of St. Lucie County (the “District”) with
the types of compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-133 Compliance Supplement that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2011. The District’s major federal programs are
identified in the summary of auditors’ results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants
applicable to each of its major federal programs is the responsibility of the District’s management.
Our responsibility is to express an opinion on the District’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in
the United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have
a direct and material effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about the District’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
District’s compliance with those requirements.
In our opinion, the District complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended June 30, 2011.
Internal Control over Compliance
Management of the District is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the District’s internal control over
compliance with requirements that could have a direct and material effect on a major federal program
in order to determine our auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control and compliance in accordance with OMB A-133,
55
but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the District School
Board of St. Lucie County’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is reasonable possibility that material noncompliance with a type of compliance requirement
of a federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
This report is intended solely for the information and use of the District School Board, applicable
management, applicable federal and state agencies, and pass-through entities and is not intended to
be and should not be used by anyone other than these specified parties.
Orlando, Florida
March 26, 2012
56
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
SCHEDULE OF EXPENDITURES AND FEDERAL AWARDS
For the Year Ended June 30, 2011
Federal Grantor/Pass-Through Grantor/Program Title
United States Department of Agriculture:
Indirect:
Florida Department of Agriculture and Consumer Services:
Food Donation
Florida Department of Education:
Nutrition Cluster:
School Breakfast Program
National School Lunch Program
Summer Food Service Programs for Children
Catalog of
Federal
Domestic
Assistance #
10.550 (2)
Pass Through
Grantor #
Amount of
Expenditures
(1)
None
10.553
10.555
10.559
321
300
10.558
10.582
10.579
302
$
Total Child Nutrition Cluster
Child and Adult Care Food Program
Fresh Fruit and Vegetable Program
ARRA - Child Nutrition Discretionary Grants
Total United States Department of Agriculture
United States Department of Education:
Indirect:
Special Education Cluster:
Florida Department of Education:
Special Education - Grants to States
Special Education - Preschool Grants
ARRA - Special Education Grants to States
ARRA - Special Education Preshcool Grants
84.027
84.173
84.391A
84.392A
262,263
266,267
Total Special Education Cluster
Title I, Part A Cluster:
Florida Department of Education:
Title I Grants to Local Educational Agencies
ARRA - Title I Grants to Local Educational Agencies
84.010
84.389
212
212
Total Title I, Part A Cluster
Educational Technology State Grants Cluster:
Florida Department of Education:
Education Technology State Grants (Enhancing Education through Technology Program)
ARRA - Education Technology State Grants (Enhancing Education through Technology Progra
84.318
84.386
121
Total Education Technology State Grants Cluster
State Fiscal Stabilization Fund Cluster:
Florida Department of Education:
ARRA - State Fiscal Stabilization Fund - Education State Grants
ARRA - State Fiscal Stabilization Fund - Government Services
84.394
84.397
Total Education Technology State Grants Cluster
Education of Homeless Children and Youth Cluster
Florida Department of Education:
Education for Homeless Children and Youth
ARRA - Education for Homeless Children and Youth
84.196
84.387
Total Education of Homeless Children and Youth Cluster
Florida Department of Education:
Migrant Education - State Grant Program
Career and Technical Education Basic Grants to States
Safe and Drug-Free Schools and Communities - State Grants
Charter Schools
Twenty-First Century Community Learning Centers
English Language Acquisition Grants
Improving Teacher Quality State Grants
ARRA - State Fiscal Stabilization Fund (SFSF) - Race-to-the-Top Incentive Grants
ARRA - Education Jobs Fund
84.011
84.048
84.186
84.282
84.287
84.365
84.367
84.395
84.410
217
151
103
298
243,244
Total Indirect
Total United States Department of Education
Corporation for National and Community Service:
Direct:
Retired and Senior Volunteer Program
94.002
N/A
Total Corporation for National and Community Service
Department of Homeland Security:
Indirect:
Florida Department of Community Affairs:
Hazard Mitigation Grant
97.039
N/A
Total Corporation for National and Community Service
United States Department of Defense:
Direct:
Army Junior Reserve Officers Training Corps
None
N/A
Note:
577,442
$
$
-
2,766,517
9,502,448
102,594
-
12,371,559
-
187,977
114,452
33,200
-
13,284,630
-
8,175,277
342,491
4,826,952
145,417
50,530
13,883
1,129
-
13,490,137
65,542
8,433,151
2,955,759
-
11,388,911
-
167,150
31,640
-
198,790
-
12,189,028
281,057
-
12,470,085
-
7,141
4,192
-
11,333
-
134,753
458,241
49,104
12,491
1,265,865
624,686
1,438,038
36,286
7,515,646
12,491
-
49,094,366
12,491
49,094,366
78,033
46,082
-
46,082
-
3,034,614
-
3,034,614
-
302,762
-
302,762
Total United States Department of Defense
Total Expenditures of Federal Awards
Amount
Provided
to
Subrecipients
65,762,453
$
78,033
(1) Basis of Presentation. The Schedule of Expenditures of Federal Awards represents amounts expended from Federal Programs during the 2010-11 fiscal year as
determined based on the modified accrual basis of accounting. The amounts reported on the schedule have been reconciled to and are in material agreement
with amounts recorded in the District's accounting records from which the general purpose financial statements have been reported.
(2) Noncash Assistance. Food Donation - Represents food donated during the 2010-11 fiscal year. Donated food is valued at fair value as determined at the time of
donation by the Florida Department of Agriculture and Consumer Services, Bureau of Food Distribution.
57
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
Federal Award Programs
Year Ended June 30, 2011
Part I - Summary of Auditors' Results
Financial Statement Section
Unqualified
Type of auditors' report issued:
Internal control over financial reporting:
Material weakness(es) identified?
yes
x
no
Significant deficiency(ies) identified?
yes
x
none reported
yes
x
no
Material weakness(es) identified?
yes
x
no
Significant deficiency(ies) identified?
yes
x
none reported
Noncompliance material to financial
statements noted?
Federal Awards Section
Internal control over major programs:
Type of auditors' report on compliance for
major federal programs:
Any audit findings disclosed that are
required to be reported in accordance with
Circular A-133
Unqualified
yes
x
no
Identification of major federal programs:
Name of Program or Cluster
Title I, Part A Cluster
Child Nutrition Cluster
Special Education Cluster (IDEA)
State Fiscal Stabilization Fund Cluster
Education Jobs Fund
Hazard Mitigation
CFDA Numbers
84.010, 84.389
10.553/10.555/10.556/10.559
84.027, 84.173, 84.391, 84.392
84.394, 84.397
84.410
97.039
Dollar threshold used to determine Type A programs:
Federal
Auditee qualified as low-risk auditee for federal purposes?
$
yes
1,972,874
x
no
58
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
Federal Award Programs
Year Ended June 30, 2011
Part II - Schedule of Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations
of provisions of contracts and grant agreements, and abuse related to the financial statements that
are required to be reported in accordance with Government Auditing Standards.
There were no financial statement findings required to be reported in accordance with Government
Auditing Standards.
Part III - Federal Award Findings and Questioned Costs
This section identifies the significant deficiencies, material weaknesses, and material instances of
noncompliance, including questioned costs, as well as any material abuse findings, related to the
audit of major federal programs, as required to be reported by Section 510(a) of OMB Circular A-133.
There were no findings required to be reported by Section 510(a) of OMB Circular A-133.
59
DISTRICT SCHOOL BOARD OF ST. LUCIE COUNTY, FLORIDA
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2011
Audit Report No.
and Financial
Statement Finding No.
Program/Area
Brief Description
Status
Comments
No prior year Federal audit findings
60
OTHER INFORMATION
Independent Auditors' Management Letter
The Honorable Members of the School Board
District School Board of St. Lucie County, Florida
Ft. Pierce, Florida
We have audited the financial statements of the governmental activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of the
District School Board of St. Lucie County, Florida (the “District”) as of and for the year ended June 30,
2011, which collectively comprise the District’s basic financial statements and have issued our report
thereon dated March 26, 2012. 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 did not audit the financial statements of the aggregate discretely presented component
units; those financial statements were audited by other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations. We have issued our Independent
Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in accordance with Government Auditing
Standards, Independent Auditors’ Report on Compliance with Requirements that could have a Direct
and Material Effect on each Major Program and on Internal Control Over Compliance in Accordance
With OMB Circular A-133, and the Schedule of Findings and Questioned Costs. Disclosures in those
reports and schedule, which are dated March 26, 2012, should be considered in conjunction with this
management letter.
Additionally, our audit was conducted in accordance with Chapter 10.800, Rules of the Auditor
General, which governs the conduct of district school board audits conducted in the State of Florida.
This letter includes the following information, which is not included in the aforementioned auditors’
reports or schedule.
Section 10.804(1)(f)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions have been taken to address significant findings and
recommendations made in the prior year annual financial audit report.
Section 10.804(1)(f)3., Rules of
provisions of Section 218.415,
connection with our audit of the
indicate that the District was in
public funds.
the Auditor General, requires our audit to include a review of the
Florida Statutes, regarding the investment of public funds. In
financial statements of the District, the results of our tests did not
noncompliance with Section 218.415 regarding the investment of
61
Section 10.804(1)(f)4., Rules of the Auditor General, requires that we address in the management
letter any recommendation to improve financial management. In connection with our audit, we did not
have any such recommendations.
Section 10.804(1)(f)5., Rules of the Auditor General, requires that we address violations of provisions
of contracts or grant agreements, or abuse, that have occurred or are likely to have occurred, that
have an effect on the financial statements that is less than material but more than inconsequential. In
connection with our audit, we did not have any such findings.
Section 10.804(1)(f)6., Rules of the Auditor General provides that the auditor may, based on
professional judgment, report the following matters that have an inconsequential effect on the financial
statements, considering both quantitative and qualitative factors: (1) violations of provisions of
contracts or grant agreements, fraud, illegal acts, or abuse, and (2) deficiencies in internal control that
are not significant deficiencies. In connection with our audit, we did not have any such findings.
Section 10.804(1)(f)2., Rules of the Auditor General, requires a statement be included as to whether
or not the district school board has met one or more of the conditions described in Section 218.503(1),
Florida Statutes, and identification of the specific conditions met. In connection with our audit of the
financial statements of the District, the results of our tests did not indicate that the District met any of
the conditions of a financial emergency contained in Section 218.503(1), Florida Statutes. However,
our audit does not provide a legal determination on the District's compliance with this requirement.
Pursuant to Sections 10.804(1)(f)7.a. and 10.805(6), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management’s responsibility to monitor the entity’s
financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by them.
Section 10.804(1)(f)8, Rules of the Auditor General, requires the auditor to state whether or not the
district school board complied with transparency requirements contained in Section 2, Specific
Appropriation 115A of Chapter 2010-152, Laws of Florida, which provides that district school boards
include a link on their Web Sites to the Transparency Florida Web Site. In connection with our audit,
we viewed the District’s Web Site for the Transparency Florida Web Site link.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the District School
Board, applicable management, applicable federal and state agencies, and the Florida Auditor
General, and is not intended to be and should not be used by anyone other than these specified
parties.
Orlando, Florida
March 26, 2012
62