MIDWEST CITY

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 Oklahoma County, Oklahoma Financial Statements For the Year Ended June 30, 2006 Together with Auditors’ Report

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 Index June 30, 2006 Page Independent Auditors' Report 1-2 Required Supplementary Information: Management's Discussion and Analysis (unaudited) 3-8 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets 9 Statement of Activities 10 Fund Financial Statements Balance Sheet - Governmental Funds 11 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental 12 Funds Statement of Net Assets-Proprietary Funds 13 Changes in Fund Net Assets - Proprietary Funds 14 Statement of Cash Flows - Proprietary Funds 15 Notes to Financial Statements Required Supplementary Information: Budgetary Comparison Schedule - General Fund (unaudited) Budgetary Comparison Schedule - Building Fund (unudited) Budgetary Comparison Schedule - Coop Fund (unaudited) Budgetary Comparison Schedule - Child Nutrition Fund (unaudited)

16-28 29-30 31 32 33

Other Supplementary Information Combining Balance Sheet - Other Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Other Governmental Funds Schedule of Expenditures of Federal Awards

34 35 37-38

Single Audit: Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 39-40 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 41-42 Schedule of Findings and Questioned Costs

43-44

Summary of Prior Year Findings

45

Schedule of Accountants' Professional Liability Insurance Affidavit

46

MHM COUNT ON MHM

INDEPENDENT AUDITORS' REPORT

To the Board of Education Independent School District No. 52 Midwest City, Oklahoma We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Midwest City - Del City Independent School District No. 52, Oklahoma County, Oklahoma (District), as of and for the year ended June 30, 2006, which collectively comprise the District’s basic financial statements as listed in the index. These financial statements are the responsibility of the District’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Midwest City - Del City Independent School District No. 52, Oklahoma County, Oklahoma, as of June 30, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Murrell, Hall, McIntosh & Co., PLLP • Certified Public Accountants 2402 Westport Drive • Norman, OK 73069 • 405.292.2900 • F. 405.321.4758 • www.mhmcpa.com

INDEPENDENT AUDITORS’ REPORT In accordance with Government Auditing Standards. we have also issued a report dated January 25, 2007, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should considered in assessing the results of our audit. The Management’s Discussion and Analysis and budgetary comparison information on pages 3-8 and 29-33, respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management, regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was performed for the purpose of forming opinions on the basic financial statements that collectively comprise the District’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements of the District. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

Norman, Oklahoma January 25, 2007

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 This section of Midwest City-Del City Independent School District #52’s annual financial report presents our discussion and analysis of the District’s financial performance during the fiscal year that ended on June 30, 2006. Please read it in conjunction with the District’s financial statements, which immediately follow this section. VIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts -- management’s discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the District: •

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

•

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

•

The governmental funds statements tell how basic services like regular and special education were financed in the short term as well as what remains for future spending. The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements with a comparison of the District’s budget for the year.

Major Features of District-Wide and Fund Financial Statements District-wide Statements

Fund Financial Statements Governmental Funds

Scope

Entire district (except fiduciary funds)

The activities of the district that are not proprietary or fiduciary, such as special education and building maintenance

Required financial statements

1) Statement of net assets 2) Statement of activities

1) Balance Sheet 2) Statement of revenues, expenditures, and changes in fund balances

Accounting basis and measurement focus

Accrual accounting and economic resources focus

Modified accrual accounting and current financial resources focus

Type of asset/liability information

All assets and liabilities, both financial and capital, short-term and long-term

Generally assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets or long-term liabilities included

3

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 Type of inflow/outflow information

All revenues and expenses during year, regardless of when cash is received or paid

Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and the related liability is due and payable

Figure A-1 summarizes the major features of the District’s financial statements. The remainder of this overview section of management’s discussion and analysis highlights the structure and contents of each of the statements. District-wide Statements The district-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net assets includes all of the district’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two district-wide statements report the District’s net assets. Net assets – the difference between the District’s assets and liabilities – are one way to measure the District’s financial health or position. • •

Over time, increases or decreases in the District’s net assets are an indicator of whether its financial position is improving or deteriorating, respectively To assess the overall health of the District, you need to consider additional non-financial factors such as changes in the District’s property tax base and the condition of school buildings and other facilities.

In the district-wide financial statements, the District’s activities are categorized as governmental activities. •

Governmental activities – Most of the District’s basic services are included here, such as regular and special education, transportation, and administration. Property taxes and state aid formula finance most of these activities.

Fund Financial Statements The fund financial statements provide more detailed information about the District’s funds, focusing on its most significant or “major” funds – not the District as a whole. Funds are accounting devices the District uses to keep track of specific sources of funding and spending on particular programs: • •

Some funds are required by State law and by bond covenants. The District establishes other funds to control and manage money for particular purposes (like repaying its long-term debts) or to show that it is properly using certain revenues.

4

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 Most of the District’s basic services are included in governmental funds, which generally focus on 1) how cash and other financial assets that can readily be converted to cash flow in and out and 2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. Because this information does not encompass the additional long-term focus of the district-wide statements, we provide additional information with the governmental funds statements that explain the relationship (or differences) between them. FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE Table A-2 Mid-Del Public School’s Net Assets (in millions of dollars) 2005 Current and Other Assets Capital assets Total assets Long-term debt outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of debt Restricted Unrestricted Total net assets

5

2006

$38.2 149.5 $187.7

$46.6 148.8 $195.4

$25.8 1.1 $26.9

$31.2 2.0 $33.2

$129.0 14.9 16.9 $160.8

$129.1 17.2 15.7 $162.0

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 Table A-3 Changes in Mid-Del Public School’s Net Assets (in millions of dollars) 2005

2006

Difference

Revenues Program revenues Charges for services Federal and State grants Other General revenues Property taxes Other taxes Federal entitlement State entitlement Other general revenues Total revenues

$5.0 19.1 2.1

$5.4 18.3 2.1

$.4 (.8) 0

23.5 10.7 1.2 41.7 .9 $104.2

24.7 11.9 .9 42.9 1.8 $108.0

1.2 1.2 (.3) 1.2 .9 $3.8

Expenses Program expenses Instruction Support services Non-instruction Interest on long-term debt Depreciation-unallocated Total expenses

$51.7 29.1 7.5 .8 4.8 $93.9

$56.6 35.5 8.8 .5 5.5 $106.9

$4.9 6.4 1.3 (.3) .7 $13.0

10.3 $160.8

1.1 $162.0

(9.2) $1.2

Increase in Revenues over Expenses

Ending Net Assets Changes in net assets.

In Fiscal year 2006, a slight decrease in Federal and State Grant monies occurred resulting in $.8 million less in funding. The Ending Net Assets increased slightly by $1.2 million over the prior fiscal year, a drop from the $9.9 million from the prior fiscal year. Expenditures were increased in the instructional area and support services area in FY06 over the amount spent in FY05 due to the addition of certified and support staff and programs. The district experienced significant increases in operational costs for utilities and fuel as gasoline/diesel costs rose significantly during the year. 6

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 FINANCIAL ANALYSIS OF THE DISTRICT’S FUNDS The strong financial performance of the District as a whole is reflected in its governmental funds as well. As the District completed the year, its governmental funds reported combined fund balances of $42.8 million. General Fund Budgetary Highlights The General Fund expenditure budget was increased in FY06 in expectation of anticipated state budget increases in revenue. Several programs were re-instated as the General Fund expenditure budget was increased. However, the state failed to provide increased operational dollars to offset the increased costs. In addition, ad valorem reimbursement fund (5-year manufacturing exemption) property tax collections were not received until after the close of the fiscal year. The General Fund balance declined to 4.79% compared to 7.60% for the previous fiscal year. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets By the end of 2006, the District had expended $7.4 million in a broad range of capital assets, including new classroom additions and renovations, roof repairs and renovations, computer and media equipment, and maintenance vehicles and equipment. The District’s fiscal year 2007 capital budget anticipates spending another $7.45 million for capital projects, principally in the areas of site renovations and improvements, including new classroom renovations/additions, paving, purchasing security equipment and software for various sites, purchasing instructional and media materials and equipment, computer equipment and software, purchasing and installing mobile computer labs, fine arts equipment and uniforms. Long-term Debt At year-end the District had $31.1 million in total long-term debt outstanding. This is an increase of 20 percent from last year’s amount of $25.7 million. (More detailed information about the District’s long-term liabilities is presented in Note 3 to the financial statements.) •

The District continued to pay down its debt, retiring $6.98 million of outstanding bonds.

•

$12.4 million in new debt was issued during the year.

7

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Management’s Discussion and Analysis (unaudited) June 30, 2006 FACTORS BEARING ON THE DISTRICT’S FUTURE At the time these financial statements were prepared and audited, the District was not aware of any existing circumstances that would adversely impact the finances of the district that have not already been presented in the audit. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designated to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Asst. Superintendent of Fiscal Services Office, Mid-Del Schools, 7217 S.E. 15th, Midwest City, OK 73110.

8

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Statement of Net Assets June 30, 2006

Governmental Activities ASSETS Cash and cash equivalents Property taxes receivable (net) Due from other governments Inventories Nondepreciated capital assets Depreciated capital assets, net of depreciation Total Assets LIABILITIES Accounts payable and other current liabilities Accrued interest Long-term obligations Due within one year Due beyond one year Total Liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt service School organizations Child nutrition Buildings Unrestricted Total Net Assets

$

36,174,761 5,888,501 4,286,754 204,742 19,229,227 129,573,567

$

195,357,552

$

1,306,610 775,495 7,325,500 23,864,046

$

33,271,651

$

129,111,595

$

5,112,958 840,713 1,151,115 10,100,437 15,769,083 162,085,901

See Accompanying Notes to Financial Statements 9

10

Functions/Programs Governmental Activities: Instruction Support services Non-instruction services Interest on long-term debt Depreciation - unallocated Total school district 56,583,909 35,489,390 8,821,992 556,246 5,471,076 106,922,613 $

$

3,730,717 -1,714,761 --5,445,478 $

$

7,553,376 5,651,241 5,158,822 --18,363,439

Operating Grants and Contributions

See Accompanying Notes to Financial Statements 10

General Revenues: Taxes Property taxes, levied for general purposes Property taxes, levied for building purposes Property taxes, levied for debt service General taxes State aid - formula grants Federal aid - formula grants Investment earnings Total General Revenues Change in net assets Net assets - beginning Net assets - ending

$

$

Expenses

Charges for Services

Program Revenues

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Statement of Activities For the Year Ended June 30, 2006

$

$

--2,120,955 --2,120,955

Capital Grants and Contributions

(45,299,816) (29,838,149) 172,546 (556,246) (5,471,076) (80,992,741)

14,905,263 2,128,095 7,694,874 11,874,588 42,884,962 943,392 1,802,348 $ 82,233,522 $ 1,240,781 160,845,120 $ 162,085,901

$

$

$

Net (Expense) Revenue and Changes in Net Assets Total Governmental Activities

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Balance Sheet - Governmental Funds June 30, 2006

ASSETS

General Fund

Debt Service Fund

Coop Fund

Building Fund

2006 Bond

Other Governmental Funds

Totals Governmental Funds

Pooled Cash and Investments Property Taxes Receivable, Net Due from Other Governments Inventories - Supplies, Materials

$

5,273,760 3,438,755 3,484,560 47,076

$ 5,776,446 1,960,619 ---

$ 2,709,831 -669,596 --

$ 9,581,401 489,127 132,598 --

$

4,334,470 ----

$ 8,263,371 --85,399

$

35,939,279 5,888,501 4,286,754 132,475

Total Assets

$ 12,244,151

$ 7,737,065

$ 3,379,427

$ 10,203,126

$

4,334,470

$ 8,348,770

$

46,247,009

$

--646,123

$

--586,205

$

102,689 -125,653

$

655,572 ---

$

252,836 25,000 --

$

1,011,097 175,000 2,251,006

1,043,025

$ 646,123

$

586,205

$

228,342

$

655,572

$

277,836

$

3,437,103

9,560,401 ---

$

$

-2,618,757 --

$

-9,523,968 --

---

$

-987,638 840,713

$

9,560,401 13,130,363 840,713

LIABILITIES AND FUND BALANCES Liabilities Accounts Payable and Accrued Liabilities $ Due to Other Funds Deferred Revenue Total Liabilities

$

Fund Balances Fund Balance Unreserved Undesignated reported in : General Fund $ Special Revenue Funds Designated for School Organizations Reserved for Capital Projects Inventory Encumbrances Retirement of Long-Term Debt

-150,000 893,025

----

$

-47,075 1,593,650 --

---7,090,942

--174,465 --

--450,816 --

573,015 -3,105,883 --

3,412,978 85,399 2,744,206 --

Fund Balances, End of Year

$ 11,201,126

$ 7,090,942

$ 2,793,222

$ 9,974,784

$ 3,678,898

$ 8,070,934

Total Liabilities and Fund Balances

$ 12,244,151

$ 7,737,065

$ 3,379,427

$ 10,203,126

$ 4,334,470

$ 8,348,770

Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. The cost of the assets is $181,151,260 and the accumulated depreciation is $32,348,466

The Internal Service fund is used by management to charge the costs of workers' compensation insurance to individual funds. The assets and liabilities are reported with governmental activities in the statement of net assets.

See Accompanying Notes to Financial Statements 11

42,809,906

2,251,006

Federal commodities are distributed to the District to be used by the child nutrition program. Governmental funds are concerned with the flow of financial resources and, therefore, the receipt and usage of commodities are not reported in the governmental funds.

Total Net Assets - Governmental Activities

$

148,802,794

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

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bonds Payable Accrued Interest on Bonds Compensated Absences

3,985,993 132,474 8,069,020 7,090,942

72,266 114,970

$ 29,345,000 775,495 1,844,546

(31,965,041) $ 162,085,901

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2006 General Fund Revenues: Property Taxes Interest County Revenue State Revenue Federal Revenue Other Total Revenues Expenditures Instruction Support Services Non-instruction services Capital Outlay Other Outlays Debt Service Interest Paid Principal Retirement

Debt Service Fund

Coop Fund

Building Fund

Other Governmental Funds

2006 Bond

$

14,633,712 1,325,126 3,074,182 51,195,575 8,173,926 84,246

$

7,622,577 22,595 -808 ---

$

---2,176,726 1,201,257 2,463,397

$

2,103,626 --213 735,591 1,182,862

$

-251,398 -----

$

-186,784 -289,997 2,993,272 7,335,728

$

78,486,767

$

7,645,980

$

5,841,380

$

4,022,292

$

251,398

$

10,805,781

$

50,169,444 29,331,633 3,659 4,000 389,075

$

------

$

2,952,707 2,535,159 --68

$

590,912 1,089,817 -350,532 --

$

1,409,346 679,617 -3,248,537 --

$

818,032 1,420,454 5,447,825 2,852,090 1,049,120

---

433,225 6,975,000

---

---

---

Totals Governmental Funds

$

24,359,915 1,785,903 3,074,182 53,663,319 13,104,046 11,066,233

$ 107,053,598 $

55,940,441 35,056,680 5,451,484 6,455,159 1,438,263

---

433,225 6,975,000 $ 111,750,252

Total Expenditures

$

79,897,811

$

7,408,225

$

5,487,934

$

2,031,261

$

5,337,500

$

11,587,521

Excess (Deficiency) of Revenues over Expenditures

$

(1,411,044)

$

237,755

$

353,446

$

1,991,031

$

(5,086,102)

$

(781,740)

$

(4,696,654)

$

-(150,000) (189,406) --

$

-----

$

-----

$

-----

$

$

-(25,000) (56,840) 3,670,000

$

-(175,000) (246,246) 12,435,000

$

(339,406)

$

--

$

--

$

--

$

8,765,000

$

3,588,160

$

12,013,754

$

(1,750,450)

$

237,755

$

353,446

$

1,991,031

$

3,678,898

$

2,806,420

$

7,317,100

Other Financing Sources (Uses) Operating Transfers In Operating Transfers Out Inventory Change Proceeds of Bonds Total Other Financing Sources (Uses) Net Change in Fund Balance Beginning Fund Balance Ending Fund Balances

12,951,576 $

11,201,126

6,853,187 $

7,090,942

2,439,776 $

2,793,222

--8,765,000

7,983,753 $

9,974,784

-$

3,678,898

5,264,514 $

8,070,934

Total net changes in fund balances - governmental funds

35,492,806 $

42,809,906

$

7,317,100

The change in nets assets reported in the statement of activities is different because: Capital outlays to purchase or build capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which depreciation exceeds capital outlays during the period.

Depreciation Expense Capital Outlays

$

(5,471,076) 4,770,524

(700,552)

Because some property taxes and other amounts will not be collected for several months after the District's fiscal year ends, they are not considered as "available" revenues in the governmental funds and are, instead counted as deferred revenues. They are however, recorded as revenues in the statement of activities.

356,265

In the statement of activities, compensated absences are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts actually paid). This year, vacation and sick leave earned exceeded amounts used.

(85,025)

Bond proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. Debt issued this year exceeded repayments.

(5,460,000)

The receipt of USDA commodities are not reported as revenue in the governmental funds but are reflected in the accrual-based government-wide financial statements.

(45,526)

The Internal Service fund is used by management to charge the costs of workers' compensation insurance to individual funds. The net expenditure is reported with governmental activities.

(107,552)

Some capital additions were financed through capital leases. In governmental funds, a capital lease arrangement is considered a source of financing, but in the statement of net assets, the lease obligation is reported as a liability.

89,092

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

See Accompanying Notes to Financial Statements 12

(123,021) 1,240,781

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2006

Internal Service Fund-Workers' Compensation ASSETS Pooled Cash Due from Other Funds

$

235,482 175,000

Total Assets

$

410,482

LIABILITIES Accounts Payable

$

295,512

Total Liabilities

$

295,512

NET ASSETS Unrestricted

$

114,970

See Accompanying Notes to Financial Statements 13

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Changes in Fund Net Assets - Proprietary Funds For the Year Ended June 30, 2006

Internal Service Fund Workers' Compensation Operating Revenues Charges to Other Funds Other

$

300,000 5,716

Total Operating Revenues

$

305,716

$

169,071 159,160 101,481

Total Operating Expenses

$

429,712

Operating Expense

$

(123,996)

Operating Expenses Instruction Support Services Non-instruction services

Nonoperating Revenue Interest income Change in Net Assets

16,444 $

Beginning Net Assets Ending Net Assets

222,522 $

See Accompanying Notes to Financial Statements 14

(107,552)

114,970

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Statement of Cash Flows - Proprietary Funds For the Year Ended June 30, 2006

Internal Service Fund Workers' Compensation Cash Flows from Operating Activities Received from assessments made to other funds Payments for workers' compensation claims Net Cash Used By Operating Activities Cash Flows from Investing Activities Interest on investments Net Cash Provided by Investing Activities Net Decrease in Cash

$

125,000 (368,299)

$

(243,299)

$

16,444

$

16,444

$

(226,855)

Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Cash Flows from Operating Activities Operating Expense Adjustments to Reconcile Operating Expense to Net Cash Provided by Operations: Change in: Accounts Receivable Accounts Payable Net Cash Used By Operating Activities

See Accompanying Notes to Financial Statements 15

462,337 $

235,482

$

(123,996)

(175,000) 55,697 $

(243,299)

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies The Midwest City - Del City Independent School District No. 52 (the District) is a corporate body for public purposes created under Title 70 of the Oklahoma Statutes and accordingly is a separate entity for operating and financial reporting purposes. The District is part of the public school system of Oklahoma under the general direction and control of the State Board of Education and is financially dependent on the State of Oklahoma for support. The general operating authority for the public school system is the Oklahoma School Code contained in Title 70 of the Oklahoma Statutes. The District’s financial statements are prepared in accordance with generally accepted accounting principles promulgated by The Governmental Accounting Standards Board (GASB). In the government-wide financial statements and the fund financial statements for proprietary funds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. The Reporting Entity - The District is a corporate body for public purposes created under Title 70 of the Oklahoma Statutes and accordingly is a separate entity for operating and financial reporting purposes. The governing body of the District is the Board of Education composed of elected members. The appointed superintendent is the executive officer of the District. There are no component units included within the reporting entity. Basic Financial Statements – Government-Wide Statements The District’s basic financial statements include both government-wide (reporting the District as a whole) and fund financial statements (reporting the District’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type. The District does not have any activities classified as business-type activities. In the government-wide Statement of Net Assets, the District’s governmental activities are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The District’s net assets are reported in three parts – invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets.

16

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Basic Financial Statements – Government-Wide Statements (continued) The government-wide Statement of Activities reports both the gross and net cost of each of the District’s programs and functions. The functions are also supported by general government revenues. The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Direct expenses are those that are clearly identifiable with a specific function. Program revenues must be directly associated with the function. Charges for services include charges and fees to students, or customers who purchase, use or directly benefit from the goods, services, or privileges provided by a given function. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. All interfund transactions between governmental funds and internal service funds are eliminated in the district-wide statements. The net costs are normally covered by general revenue (property taxes, State and Federal aid, other taxes etc.). The government-wide focus is more on the sustainability of the District as an entity and the change in the District’s net assets resulting from the current year’s activities. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter is excluded from the district-wide financial statements. Major individual governmental funds are reported in separate columns in the fund financial statements. Basic Financial Statements – Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. The fund financial statements provide reports on the financial condition and results of operations of governmental, proprietary, and fiduciary fund categories. Since resources in the fiduciary funds cannot be used for District operations, they are not included in the district-wide statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses result from providing services and producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. All other revenues and expenses are nonoperating.

17

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Basic Financial Statements – Fund Financial Statements (continued) The District reports the following major governmental funds: General Fund is the primary operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Building Fund is used to account for monies derived from the building fund levy and rental of facilities to be used for erecting, remodeling, repairing or maintaining school buildings, paying energy and utility costs; paying fire and casualty insurance premiums for school facilities, security systems and personnel. Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. Coop Fund is used to account for financial resources to be used for the operation of vocational education programs. 2006 Bond Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities as approved by the voters of the bond issue. Additionally, the District reports the following fund types: Governmental Funds: 1. Special Revenue Funds – The District accounts for resources restricted to, or designated for, specific purposes by the District or a grantor in a special revenue fund. 2. Capital Project Funds – The proceeds from longterm financing and revenues and expenditures related to authorized construction and other capital asset acquisitions are accounted for in a capital projects fund.

18

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Basic Financial Statements – Fund Financial Statements (continued) Proprietary Funds: 1. Internal Service Funds – Revenues and expenses related to services provided to organizations within the District on a cost reimbursement basis are accounted for in the internal service fund. The District’s Internal Service Fund is the Workers’ Compensation Fund, which is used to charge the cost of workers’ compensation to individual funds. Basis of Accounting - Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. Accrual: The government-wide financial statements are presented on the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when a liability is incurred. Property taxes are recognized as revenue in the year in which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Modified Accrual: The fund financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e. both measurable and available. “Available” means collectible within the current period or within 60 days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and interest on general obligation long-term debt, if any, is recognized when due. Inventories - Inventories in the general fund consist of expendable supplies held for the District’s use and are carried at cost using the first-in, first-out method. Inventories are accounted for using the consumption method where materials and supplies are recorded as an expenditure when used rather than when purchased. On the government-wide financial statements, United States Department of Agriculture (USDA) food commodities are recorded as revenue when received at fair value at the date of receipt and as an expense when used. USDA food commodities are not reported in the governmental funds. 19

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Capital Assets - Capital assets purchased or acquired with an original cost of $2,500 or more are reported at historical cost or estimated historical cost. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: School Buildings 45 years Improvements 45 years Band Instruments 10 years Computers and Related Equipment 5 years Furniture 20 years Equipment 10 years Vehicles 6 years Compensated Absences – Support personnel are eligible for sick leave benefits after 60 days of employment. Sick leave is accrued at different rates depending on number of months worked. Total accumulated sick leave is limited based on the number of months worked under contract. Upon termination, resignation, retirement or death, unused sick leave is reimbursable. Certified personnel are provided 10 days of sick leave and 3 days of personal business leave during each year. Unused personal business leave converts to cumulative sick leave at year-end. Employees, who contract for a minimum of twelve months and work at least 6 hours per day, accrue 1 day of vacation per month. Unused vacation time may be carried to the next year limited to 24 days. Reimbursement for unused vacation is at the employee's current rate of pay. Budgets and Budgetary Accounting - The District is required by state law to prepare an annual budget. The District by resolution of the Board of Education has adopted the School District Budget Act. This act requires that within the thirty-day period preceding the beginning of each fiscal year, a budget shall be approved by the governing body. The original budget is to be amended after the June financial activity has been recorded, the annual Foundation and Salary Incentive Aid allocation has been released, and the property tax valuations have been certified for all affected counties within the district. A budget is legally adopted by the Board of Education for the General Fund and Special Revenue Funds that includes revenues and expenditures.

20

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Encumbrances - Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditures of resources are recorded as reservation of fund balances in the fund financial statement, is used. Cash and Cash Equivalents - The District considers all cash on hand, demand deposits, money market checking and certificates of deposit, held at an individual bank which are subject to early withdrawal penalties no matter what the maturity period, to be cash. All short-term cash surpluses are maintained in a cash pool, the earnings from which are allocated to each fund based on month-end deposit balances. Property Tax Revenues - The District is authorized by state law to levy property taxes which consist of ad valorem taxes on real and personal property within the District. The County Assessor, upon receipt of the certification of tax levies from the county excise board, extends the tax levies on the tax roll for submission to the county treasurer prior to October 1. The county treasurer must commence tax collection within fifteen days of receipt of the tax rolls. The first half of taxes are due prior to January 1. The second half is due prior to April 1. If the first payment is not made timely, the entire tax becomes due and payable on January 1. Second half taxes become delinquent on April 1 of the year following the year of assessment. If not paid by the following October 1, the property is offered for sale for the amount of taxes due. The owner has two years to redeem the property by paying the taxes and penalty owed. If at the end of two years the owner has not done so, the purchaser is issued a deed to the property. Property taxes receivable by the District include uncollected taxes assessed as of October 1, 2005 and earlier. Delinquent property tax receivable is recognized as revenue in the government-wide financial statements. Only the portion of the property taxes receivable that meets the revenue recognition criteria is reported as revenue in the fund financial statements. No provision has been made for uncollectible amounts because all amounts are deemed collectible. State Revenues - Revenues from state sources for current operations are primarily governed by the state aid formula under the provisions of Article XVIII, Title 70, Oklahoma Statutes. The State Board of Education administers the allocation of state aid funds to school districts based on information accumulated from the districts. Approximately 51% of the District’s revenue comes from state sources.

21

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) After review and verification of reports and supporting documentation, the State Department of Education may adjust subsequent fiscal period allocations of money for prior year errors disclosed by review. Normally, such adjustments are treated as reductions or additions of revenue of the year when the adjustment is made. The District receives revenue from the state to administer certain categorical educational programs. State Board of Education rules require that revenue earmarked for these programs be expended only for the programs for which the money is provided and require that the money not expended as of the close of the fiscal year be carried forward into the following year to be expended for the same categorical programs. The State Department of Education requires that categorical educational program revenues be accounted for in the general fund. Interfund Transfers - During the course of normal operations, the District has transactions between funds including expenditures and transfers of resources to provide services, purchase assets and service debt, which are recorded as operating transfers. Use of Estimates – The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Net Assets and Fund Balance District-Wide Financial Statements – When the District incurs an expense for which it may use either restricted or unrestricted net assets; it uses restricted net assets first unless unrestricted net assets will have to be returned because they were not used. Net assets on the Statement of Net Assets include the following: Investment in Capital Assets, Net of Related Debt – The component of net assets that reports the difference between capital assets less both the accumulated depreciation and the outstanding balance of debt, excluding unspent proceeds, that is directly attributable to the acquisition, construction or improvement of these capital assets. Restricted for Debt Service – The component of net assets that reports the amount of funds restricted for payment of principal and interest on debt.

22

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 1 -- Summary of Significant Accounting Policies (continued) Net Assets and Fund Balance (continued) Restricted for Buildings – The component of net assets that reports the excess of property taxes and other revenue collected in excess of expenses for operation of the District’s buildings. Restricted for School Organizations – The component of net assets that report the assets restricted for use by student organizations and extracurricular activities. Restricted for Child Nutrition – The component of net assets that report the assets restricted for use by Child Nutrition program. Unrestricted – The difference between assets and liabilities that is not reported as restricted for any particular purpose. Governmental Fund Financial Statements – In the fund financial statements, governmental funds report fund balances as either a reserved or unreserved fund balance. Reserved Fund Balance – That portion of fund balance, which has been legally segregated for a specific purpose. Unreserved Fund Balance – Composed of designated and undesignated portions. The undesignated portion of the unreserved fund balance represents that portion of fund balance that is available for budgeting in future periods. Designated fund balances represent tentative plans for future use of financial resources.

23

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 2 -- Cash and Investments The District's investment policies are governed by state statute. Permissible investments include 1. Direct obligations of the United States Government and Agencies 2. Obligations to the payment of which the full faith and credit of the State of Oklahoma is pledged 3. Certificates of deposit of savings and loan associations and bank and trust companies secured by acceptable collateral 4. Savings accounts or savings certificates of savings and loan associations that are fully insured 5. County, municipal and school district direct debt obligations 6. Money market mutual funds regulated by the Securities and Exchange Commission 7. Warrants, bonds or judgments of the school District 8. Qualified pooled investment programs Collateral is required for demand deposits and certificates of deposit for all amounts not covered by Federal Deposit Insurance Corporation insurance. The District maintains cash and investment pools available for use by all funds. Each fund’s portion of the pool is displayed on the governmental fund balance sheet. Custodial Credit Risk - Deposits – Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District’s policy requires collateral equal to 110% of the deposit amount for all deposits not covered by Federal Deposit Insurance Corporation insurance. At June 30, 2006, the District was not exposed to custodial credit risk.

24

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 3 -- Long-term Liabilities The long-term liability balances and activity for the year were as follows: Beginning Balance

Amounts Due within One Year Reductions Ending Balance (6,975,000) $ 29,345,000 $ 6,710,000

$

23,885,000

$

Additions 12,435,000

$ Leases $ Total governmental activity long-term liabilities $

1,759,521 89,092

$ $

725,403 -

$ $

(640,378) $ (89,092) $

25,733,613

$

13,160,403

$

(7,704,470) $

Bonds Payable Compensated Absences

$

1,844,546 -

$ $

615,500 -

31,189,546 $

7,325,500

Payments on bonds are made by the debt service fund with property taxes. Compensated absences are generally liquidated by the general fund. Obligations under capital lease are liquidated by the debt service fund and the building fund. Bonds: Bonds payable at June 30, 2006, is composed of the following individual general obligation bond issues:

Issue Amount 7,100,000 3,175,000 2,475,000 3,975,000 10,115,000 8,765,000 3,670,000

Purpose Building Building Building Building Building Building Combined

Date 7/1/01 5/1/02 10/1/02 7/1/03 7/1/04 7/1/05 3/1/06

Annual Payment Final Payment 1,775,000 795,000 615,000 990,000 2,530,000 2,190,000 920,000

25

1,775,000 795,000 620,000 995,000 2,530,000 2,190,000 920,000

Maturity Date 7/1/06 5/1/07 10/1/07 7/1/08 7/1/09 7/1/10 3/1/11

Interest Rates (%) 3.75 3.4-3.6 2.25-2.55 1.5-1.95 3.625% 2.95-3.05% 3.35-4.05%

Total Outstanding $ 1,775,000 795,000 1,240,000 2,985,000 10,115,000 8,765,000 3,670,000 $ 29,345,000

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 3 -- Long-term Liabilities (continued) The annual requirements to amortize all bond debt outstanding as of June 30, 2006 including interest payments are as follows:

Period Ending June 30 2007 $ 2008 2009 2010 2011 Total

$

Principal 6,710,000 $ 7,245,000 6,635,000 5,640,000 3,115,000

Interest 1,131,217 $ 1,020,272 406,060 208,674 111,070

Total Debt Service 7,841,217 8,265,272 7,041,060 5,848,674 3,226,070

29,345,000 $

2,877,293 $

32,222,293

State statutes prohibit the District from becoming indebted in an amount exceeding the revenue to be received for any fiscal year without approval by the District's voters. Bond issues have been approved by the voters and issued by the District for various capital improvements. These bonds are required to be fully paid, serially, within 25 years from the date of issue. General obligation bonded debt of the District is limited by state law to 10% of the assessed valuation of the District. The legal debt limit at June 30, 2006 is approximately $43,057,500. Proceeds of general obligation bond issues are recorded in the Capital Projects Fund and at least 85% of the proceeds are restricted to the use for which they were approved in the bond elections. Leases - In 2004, the District signed a capital lease agreement on a printing press and plate setter for the technology center. The press and plate setter have been capitalized. As of June 30, 2006, the agreement was paid in full. Lease expense for the year ended June 30, 2006 was $89,092. Note 4 -- Employee Retirement System Plan Description - The District contributes to the state-administered Oklahoma Teachers' Retirement System ("the System"), a cost-sharing, multiple-employer public employee retirement system (PERS). The System is administered by a board of trustees. PERS provides retirement, disability and death benefits to plan members and beneficiaries. Oklahoma State Statute 70, Article 17 assigns the authority to establish and amend benefit provisions to the PERS Board of Trustees. The System issues a publicly available report that includes financial statements and required supplementary information for PERS. That report may be obtained by contacting the Oklahoma Teachers’ Retirement System.

26

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 4 -- Employee Retirement System (continued) Funding Policy –Under the System, contributions are made by the District, the State of Oklahoma, and the participating employees. Participation is required for all teachers and other certified employees and is optional for all other regular employees of public educational institutions who work at least 20 hours per week. The contribution rates for the District and its employees, which are not actuarially determined, are established by statute and applied to the employee's earnings, plus employer-paid fringe benefits. The District is required by statute to contribute 7.05% of applicable compensation for the year ended June 30, 2006. Plan members are required to contribute 7% of their annual covered salary. The District pays this contribution for the employee. The District’s contributions to PERS (net of retirement credit paid by the State of Oklahoma) for the years ending June 30, 2006, 2005 and 2004 were $7,694,283, $7,117,891, and $6,620,559, respectively, equal to the required contributions for each year. State of Oklahoma contributions to the System on behalf of the District’s employees for the year ended June 30, 2006 were $781,669. Note 5 -- Contingencies Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the District expects such amounts, if any, to be immaterial. The District is defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, the District believes the resolution of these matters will not have a material adverse effect on the financial condition of the District. Should a judgment be awarded against the District in excess of insurance coverage, it would be levied through the District’s sinking fund over a three-year period pursuant to state law. Note 6 -- Risk Management The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions and natural disasters for which the District carries commercial insurance. There have been no significant reductions in coverage from the prior year and settlements have not exceeded coverage in the past three years.

27

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Notes to Financial Statements June 30, 2006 Note 6 – Risk Management (continued) The District administers a self-insurance workers’ compensation program within the Workers’ Compensation Fund. Claims in excess of the self-insured retention amounts are covered through third-party insurance policies. The District’s workers’ compensation retention amounts are $250,000 per accident and per employee for disease. The limit on coverage is $1,000,000. Revenues are recognized from General fund, Technology fund and Child Nutrition fund payments to the fund. Note 7 - Capital Assets Capital asset activity for the year ended June 30, 2006, was as follows: Beginning Balances

Ending Balances Increases

Capital Assets not being depreciated: Land Construction in Progress Total capital assets not being depreciated

Decreases

$

16,229,533 $ 6,083,826

---

$

-$ (3,084,132)

16,229,533 2,999,694

$

22,313,359 $

--

$

(3,084,132) $

19,229,227

Buildings & Improvement $ Furniture and Accessories Equipment & Accessories Computers Vehicles Total capital assets being depreciated $ Less accumulated depreciation for:

141,797,022 $ 278,906 4,661,976 3,046,874 4,419,006

6,171,692 17,129 341,616 1,157,237 384,350

$

-$ (3,246) (10,845) (339,684) --

147,968,714 292,789 4,992,747 3,864,427 4,803,356

154,203,784 $

8,072,024

$

(353,775) $

161,922,033

Buildings & Improvement Furniture and Accessories Equipment & Accessories Computers Vehicles

(19,505,532) $

(3,219,619) $

--

(22,725,151)

Capital Assets being depreciated:

$

Total accumulated depreciation $ Total capital assets being depreciated , net $ Governmental activity capital assets, net $

(62,266) (1,787,316) (2,498,225) (3,160,462)

$

(12,851) (458,975) (1,011,098) (768,530)

82 452 135,874 --

(27,013,801) $

(5,471,073) $

136,408

$

(32,348,466)

127,189,983 $

2,600,951

$

(217,367) $

129,573,567

149,503,342 $

2,600,951

$

(3,301,499) $

148,802,794

28

(75,035) (2,245,839) (3,373,449) (3,928,992)

29

$ 80,523,618 $

Total Charges to Appropriations

Budgetary Fund Balance, June 30

2,817,019

$ 49,842,564 30,121,255 16,128 -543,671

Charges to Appropriations (outflows) Instruction Support Services Non-instruction services Capital Outlay Other Outlays

13,854,881 650,000 2,480,000 49,304,442 10,554,372 735,050 $ 83,340,637

$

Amounts Available for Appropriation

Resources (inflows) Property Taxes Interest County Revenue State Revenue Federal Revenue Other

Budgetary Fund Balance, July 1 14,611,326 750,000 2,700,000 50,449,685 9,694,433 1,051,125

Final 5,761,892

3,244,843

$

$ 11,201,126

$ 80,237,217

$

$

$ 50,169,444 $ 29,331,633 3,659 4,000 728,481

$ 91,438,343

14,633,712 1,325,126 3,074,182 51,195,575 8,173,926 84,246

(8,058,362)

(268,672)

(335,706) 600,831 8,654 -(542,451)

(7,789,690)

(2,316,331) -(132,465) (623,720) 1,489,868 982,642

GAAP To Actual Budgetary Amounts Basis GAAP Basis Adjustments $ 12,951,576 $ (7,189,684)

$

3,680,108

$ 79,968,545

$ 49,833,738 29,932,464 12,313 4,000 186,030

$ 83,648,653

12,317,381 1,325,126 2,941,717 50,571,855 9,663,794 1,066,888

Actual Amounts Budgetary Basis $ 5,761,892

See Accompanying Notes to Financial Statements 29

$

$ 81,773,618

$ 50,371,069 30,868,136 15,131 -519,282

$ 85,018,461

Original 5,761,892 $

Budgeted Amounts

$

$

$

$

427,824

1,250,000

528,505 746,881 (997) -(24,389)

1,677,824

756,445 100,000 220,000 1,145,243 (859,939) 316,075

Original to Final $ --

$

$

$

$

$

435,265

1,805,073

537,331 935,672 2,818 (4,000) 333,252

(1,369,808)

(2,293,945) 575,126 241,717 122,170 (30,639) 15,763

Final to Actual --

Variance with Final Budget Positive(Negative)

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Budgetary Comparison Schedule – General Fund (unaudited) For the Year Ended June 30, 2006

30

(189,406)

Inventory of supplies on hand but not used are reported as expenditures for budgetary purposes but as assets for financial reporting

See Accompanying Notes to Financial Statements 30

(8,058,362)

(150,000) (268,672)

487,930

Reimbursements from other funds are treated as revenue for budgetary purposes but as reduction of expenditures for financial reporting

Reimbursements to other funds are treated as expenditures for budgetary purposes.

(417,196)

494,715 (7,789,690)

487,930

(1,582,651)

(7,189,684)

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year ordered for budgetary purposes but were cancelled during the current budgetary year

Reimbursements from other funds are treated as revenue for budgetary purposes but as reduction of expenditures for financial reporting

Revenues on a budgetary basis are based on cash received rather than the modified accrual basis used for financial reporting

General Fund Budget to Actual Reconciliation: The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described above.

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Budgetary Comparison Schedule – General Fund (unaudited) For the Year Ended June 30, 2006

31

$

$

Budgetary Fund Balance, July 1

Resources (inflows) Property Taxes County Revenue State Revenue Federal Revenue Other

Amounts Available for Appropriation

$

$

$

$

$

6,652,848

4,900,000

566,876 3,528,381 804,743

11,552,848

1,924,375 -213 735,591 1,338,862

Final 7,553,807

Budgeted Amounts

Original 7,553,807

1,924,375 100 --1,454,171

611,193 1,398,722 1,490,085

7,432,453

3,500,000

10,932,453

$

$

$

Charges to Appropriations (outflows) Instruction Support Services Capital Outlays

Total Charges to Appropriations

Budgetary Fund Balance, June 30

$

$

$

$

$

9,974,784

2,031,261

590,912 1,089,817 350,532

12,006,045

2,103,626 -213 735,591 1,182,862

Actual Amounts GAAP Basis 7,983,753

$

$

$

$

$

110,146

212,835

(102,689) 110,146

(623,904)

$

(97,593) 405,200 (197,461)

36,158 (734,050)

(340,262)

(429,946)

(623,904)

(350,023) (9,761) --55,680

GAAP To Budgetary Basis Adjustments (429,946)

(734,050)

$

$

$

$

9,130,588

2,141,407

493,319 1,495,017 153,071

11,271,995

1,753,603 (9,761) 213 735,591 1,238,542

Actual Amounts Budgetary Basis 7,553,807

(779,605)

(1,400,000)

44,317 (2,129,659) 685,342

620,395

-(100) 213 735,591 (115,309)

Original to Final --

$

$

$

$

$

2,477,740

2,758,593

73,557 2,033,364 651,672

(280,853)

(170,772) (9,761) --(100,320)

Final to Actual --

Variance with Final Budget Positive(Negative)

$

$

$

$

$

$

Budgetary Fund Balance, June 30

7,432,453

3,500,000

611,193 1,398,722 1,490,085

$

$

$

$

$

6,652,848

4,900,000

566,876 3,528,381 804,743

11,552,848

1,924,375 -213 735,591 1,338,862

Final 7,553,807

$

$

$

$

9,974,784

2,031,261

590,912 1,089,817 350,532

12,006,045

2,103,626 -213 735,591 1,182,862

Actual Amounts GAAP Basis $ 7,983,753

$

$

$

$

(623,904)

(102,689) 110,146

212,835

36,158 (734,050)

(340,262)

(429,946)

(623,904)

110,146

(97,593) 405,200 (197,461)

(734,050)

(350,023) (9,761) --55,680

GAAP To Budgetary Basis Adjustments $ (429,946)

$

$

$

$

$

9,130,588

2,141,407

493,319 1,495,017 153,071

11,271,995

1,753,603 (9,761) 213 735,591 1,238,542

Actual Amounts Budgetary Basis 7,553,807

See Accompanying Notes to Financial Statements 31

Expenditures on a budgetary basis are based on cash paid rather than the modified accrual basis used for financial reporting

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year ordered for budgetary purposes but were cancelled during the current budgetary year

Revenues on a budgetary basis are based on cash received rather than the modified accrual basis used for financial reporting

Building Fund Budget to Actual Reconciliation: The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described above.

$

$

Total Charges to Appropriations

Charges to Appropriations (outflows) Instruction Support Services Capital Outlays

10,932,453

$

Amounts Available for Appropriation

Original 7,553,807 1,924,375 100 --1,454,171

$

Budgeted Amounts

Resources (inflows) Property Taxes County Revenue State Revenue Federal Revenue Other

Budgetary Fund Balance, July 1

Expenditures on a budgetary basis are based on cash paid rather than the modified accrual basis used for financial reporting

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year ordered for budgetary purposes but were cancelled during the current budgetary year

Revenues on a budgetary basis are based on cash received rather than the modified accrual basis used for financial reporting

Building Fund Budget to Actual Reconciliation: The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described above.

$

$

$

$

$

(779,605)

(1,400,000)

44,317 (2,129,659) 685,342

620,395

-(100) 213 735,591 (115,309)

Original to Final --

$

$

$

$

$

2,477,740

2,758,593

73,557 2,033,364 651,672

(280,853)

(170,772) (9,761) --(100,320)

Final to Actual --

Variance with Final Budget Positive(Negative)

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Budgetary Comparison Schedule – Building Fund (unaudited) June 30, 2006

32

2,692,830 2,653,437 224,609

5,570,876

2,293,167

$

$

$

$

$

$

$

$

1,803,162

5,970,876

3,056,421 2,878,506 35,949

7,774,038

2,127,148 998,621 2,546,203

Final 2,102,066

Budgeted Amounts

Original 2,102,066

2,218,018 1,014,238 2,529,721

7,864,043

$

$

Budgetary Fund Balance, July 1

Resources (inflows) State Revenue Federal Revenue Other

Amounts Available for Appropriation

Charges to Appropriations (outflows) Instruction Support Services Other Outlays

Total Charges to Appropriations

Budgetary Fund Balance, June 30

$

$

$

$

$

2,793,222

5,487,934

2,952,707 2,535,159 68

8,281,156

2,176,726 1,201,257 2,463,397

Actual Amounts GAAP Basis 2,439,776

$

21,278

21,769 21,769

2,535,369

5,509,703

2,976,756 2,532,879 68

2,164,600 1,213,988 2,564,418

Actual Amounts Budgetary Basis 2,102,066

8,045,072

$

$

$

$

24,049 (2,280) --

21,769

80,348 (236,084)

(214,315)

$

(12,126) 12,731 101,021

(337,710)

(214,315)

GAAP To Budgetary Basis Adjustments (337,710)

(236,084)

$

$

$

$

$

$

$

$

$

(490,005)

(400,000)

(363,591) (225,069) 188,660

(90,005)

(90,870) (15,617) 16,482

Original to Final --

$

$

$

$

$

732,207

461,173

79,665 345,627 35,881

271,034

37,452 215,367 18,215

Final to Actual --

Variance with Final Budget Positive(Negative)

$

Budgetary Fund Balance, June 30

2,293,167

5,570,876

2,692,830 2,653,437 224,609

$

$

$

$

$

1,803,162

5,970,876

3,056,421 2,878,506 35,949

7,774,038

2,127,148 998,621 2,546,203

Final 2,102,066

$

$

$

$

2,793,222

5,487,934

2,952,707 2,535,159 68

8,281,156

2,176,726 1,201,257 2,463,397

Actual Amounts GAAP Basis $ 2,439,776

$

$

$

$

(214,315)

21,769 21,769

80,348 (236,084)

21,278

(337,710)

(214,315)

21,769

24,049 (2,280) --

(236,084)

(12,126) 12,731 101,021

GAAP To Budgetary Basis Adjustments $ (337,710)

$

$

$

$

$

2,535,369

5,509,703

2,976,756 2,532,879 68

8,045,072

2,164,600 1,213,988 2,564,418

Actual Amounts Budgetary Basis 2,102,066

See Accompanying Notes to Financial Statements 32

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year ordered for budgetary purposes but were cancelled during the current budgetary year

Revenues on a budgetary basis are based on cash received rather than the modified accrual basis used for financial reporting

Budget to Actual Reconcilation: The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described above.

$

$

Total Charges to Appropriations

Charges to Appropriations (outflows) Instruction Support Services Other Outlays

7,864,043

$

Amounts Available for Appropriation

Original 2,102,066 2,218,018 1,014,238 2,529,721

$

Budgeted Amounts

Resources (inflows) State Revenue Federal Revenue Other

Budgetary Fund Balance, July 1

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year ordered for budgetary purposes but were cancelled during the current budgetary year

Revenues on a budgetary basis are based on cash received rather than the modified accrual basis used for financial reporting

Budget to Actual Reconcilation: The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described above.

$

$

$

$

$

(490,005)

(400,000)

(363,591) (225,069) 188,660

(90,005)

(90,870) (15,617) 16,482

Original to Final --

$

$

$

$

$

732,207

461,173

79,665 345,627 35,881

271,034

37,452 215,367 18,215

Final to Actual --

Variance with Final Budget Positive(Negative)

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Budgetary Comparison Schedule – Coop Fund (unaudited) June 30, 2006

33

$

$

$

$

Final 597,796

29,162 289,997 2,769,692 1,749,298

5,435,945

204 4,720,802 320,457

394,482

5,041,463

$

$

$

$

$

1,078,848

4,793,617

-4,522,116 271,501

5,872,465

50,166 289,997 2,993,272 1,743,472

Actual Amounts GAAP Basis 795,558

$

$

$

$

$

(48,485) 14,510

(25,000)

87,995

15,911 (181,851)

(197,762)

(167,341)

14,510

-31,106 (16,596)

(181,851)

---15,911

GAAP To Budgetary Basis Adjustments (197,762)

$

$

$

$

$

882,487

4,808,127

-4,553,222 254,905

5,690,614

50,166 289,997 2,993,272 1,759,383

Actual Amounts Budgetary Basis 597,796

$

$

$

$

$

(142,415.00)

199,999

204 45,724 154,071

57,584

19,162 (25,884.00) 64,058 248

Original to Final --

$

$

$

$

$

488,005

233,336

204 167,580 65,552

254,669

21,004 -223,580 10,085

Final to Actual --

Variance with Final Budget Positive(Negative)

$

Budgetary Fund Balance, June 30

536,897

4,841,464

-4,675,078 166,386

$

$

$

$

$

394,482

5,041,463

204 4,720,802 320,457

5,435,945

29,162 289,997 2,769,692 1,749,298

Final 597,796

$

$

$

$

1,078,848

4,793,617

-4,522,116 271,501

5,872,465

50,166 289,997 2,993,272 1,743,472

Actual Amounts GAAP Basis $ 795,558

(167,341)

(48,485) 14,510

$

$

$

$

$

See Accompanying Notes to Financial Statements 33

Inventory of supplies on hand but not used are reported as expenditures for budgetary purposes but as assets for financial reporting

(25,000)

Reimbursements to other funds are treated as expenditures for budgetary purposes.

15,911 (181,851)

(197,762)

(167,341)

14,510

-31,106 (16,596)

(181,851)

87,995

$

$

$

$

---15,911

GAAP To Budgetary Basis Adjustments $ (197,762)

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year for budgetary purposes but were cancelled during the current budgetary year

The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described below.

Budget to Actual Reconcilation:

$

$

Total Charges to Appropriations

Charges to Appropriations (outflows) Support Services Non-instruction services Other Outlays

5,378,361

$

Amounts Available for Appropriation

Original 597,796 10,000 315,881 2,705,634 1,749,050

$

Budgeted Amounts

Resources (inflows) Interest State Revenue Federal Revenue Other

Budgetary Fund Balance, July 1

Inventory of supplies on hand but not used are reported as expenditures for budgetary purposes but as assets for financial reporting

Reimbursements to other funds are treated as expenditures for budgetary purposes.

Encumbrances for supplies and equipment ordered but not received are reported in the year the order is placed for budgetary purposes but in the year the supplies are received for financial reporting

Encumbrances for the prior fiscal year which were included in the year for budgetary purposes but were cancelled during the current budgetary year

The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting used in preparing the District's budget. This amount differs from the fund balance reported in the statement of revenues, expenditures and changes in fund balances because of the cumulative effect of transactions such as those described below.

536,897

-4,675,078 166,386

4,841,464

$

$

$

$

Budgeted Amounts

Original 597,796

10,000 315,881 2,705,634 1,749,050

5,378,361

$

$

Budgetary Fund Balance, July 1

Resources (inflows) Interest State Revenue Federal Revenue Other

Amounts Available for Appropriation

Charges to Appropriations (outflows) Support Services Non-instruction services Other Outlays

Total Charges to Appropriations

Budgetary Fund Balance, June 30

Budget to Actual Reconcilation:

882,487

4,808,127

-4,553,222 254,905

5,690,614

50,166 289,997 2,993,272 1,759,383

Actual Amounts Budgetary Basis 597,796

$

$

$

$

$

(142,415.00)

199,999

204 45,724 154,071

57,584

19,162 (25,884.00) 64,058 248

Original to Final --

$

$

$

$

$

488,005

233,336

204 167,580 65,552

254,669

21,004 -223,580 10,085

Final to Actual --

Variance with Final Budget Positive(Negative)

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Budgetary Comparison Schedule – Child Nutrition Fund (unaudited) June 30, 2006

34 $

Total Liabilities and Fund Balances

$

$

$

$

$

$

$

1,103,848

1,078,848

-85,399 135,963

857,486 --

25,000

25,000 --

1,103,848

1,018,449 85,399

Child Nutrition

$

$

$

$

$

$

$

704,265 $

523,519 $

474,352 -49,167

-- $ --

180,746 $

-- $ 180,746

704,265 $

704,265 $ --

2003 Bond

3,609,702

3,609,702

2,938,626 -671,076

---

--

3,609,702

3,609,702 --

2006 Bond

$

$

$

$

$

$

$

840,713

840,713

----

-840,713

--

---

840,713

840,713 --

Activity

See Accompanying Notes to Financial Statements 34

1,913,774

1,841,684

$

Fund Balances, End of Year

(46,316) --

72,090

--1,888,000

$

$

-72,090

1,913,774

1,913,774 --

Fund Balance Unreserved Undesignated Special Revenue Funds Designated for School Organizations Reserved for Capital Projects Inventory Encumbrances

Total Liabilities

$

$

Total Assets

LIABILITIES AND FUND BALANCES Liabilities Due to Other Funds Accounts Payable

$

Pooled Cash Inventories - Supplies, materials

ASSETS

MAPS

$

$

$

$

$

$

$

26,695

26,695

----

26,695 --

--

--

26,695

26,695 --

Gifts

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Combining Balance Sheet – Other Governmental Funds June 30, 2006

$

$

$

$

$

$

$

149,773

149,773

----

149,773 --

--

---

149,773

149,773 --

Casualty/ Insurance

$

$

$

$

$

$

$

8,348,770

8,070,934

3,412,978 85,399 2,744,206

987,638 840,713

277,836

25,000 252,836

8,348,770

8,263,371 85,399

Total Other Governmental Fund

--4,522,116 -189,661

1,078,848

795,558

283,290

(81,840)

(25,000) (56,840) --

365,130

4,711,777

5,076,907

50,166 289,997 2,993,272 1,743,472

Child Nutrition

$

$

$

$

$

$

$

$

$

----

440,641

1,841,684

1,401,043

--

---662,068 21,426

683,494

29,759 --2,054,778

1,401,043

2,084,537

MAPS

$

$

$

$

$

$

$

$

$

Total Other Financing Sources (Uses)

Beginning Fund Balance

Ending Fund Balances

Net Change in Fund Balance

Other Financing Sources (Uses) Operating Transfers Out Change in Inventory Proceeds of Bonds

Excess (Deficiency) of Revenues over Expenditures

Total Expenditures

Expenditures Instruction Support Services Non-instruction services Capital Outlays Other Outlays

Total Revenues

Revenues Interest State Revenue Federal Revenue Other

$

$

$

$

$

$

$

$

$

-----

--

--

70,656

(70,656)

--

----

(70,656)

70,656

69,409 --1,247 --

2002 Bond

$

$

$

$

$

$

$

$

$

-----

--

523,519

2,989,977

(2,466,458)

--

---

(2,466,458)

2,466,458

94,328 250,925 -2,121,205 --

2003 Bond

$

$

$

$

$

$

$

$

$

3,609,702

--

3,609,702

3,670,000

-3,670,000

(60,298)

119,495

44,965 74,530 ----

59,197

59,197 ----

2006 Bond

$

$

$

$

$

$

$

$

$

840,713

878,191

(37,478)

--

----

(37,478)

3,492,587

576,253 1,085,022 925,709 67,570 838,033

3,455,109

47,662 --3,407,447

Activity

$

$

$

$

$

$

$

$

$

26,695

31,395

(4,700)

--

----

(4,700)

9,700

9,700 -----

5,000

---5,000

Gifts

35

29,759 --2,054,778

Ending Fund Balances

Beginning Fund Balance $ 1,841,684

440,641

$ 1,401,043

Net Change in Fund Balance

--

----

$

$

Total Other Financing Sources (Uses)

Other Financing Sources (Uses) Operating Transfers Out Change in Inventory Proceeds of Bonds

$ 1,401,043

Excess (Deficiency) of Revenues over Expenditures

683,494

---662,068 21,426

$

$

$ 2,084,537

$

MAPS

Total Expenditures

Expenditures Instruction Support Services Non-instruction services Capital Outlays Other Outlays

Total Revenues

Revenues Interest State Revenue Federal Revenue Other

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

--

-----

$

$

$

$

$

$

--

70,656 $

(70,656) $

--

----

(70,656) $

70,656

69,409 --1,247 --

2002 Bond

--

-----

$

$

$

$

$

$

523,519

2,989,977 $

(2,466,458) $

--

---

(2,466,458) $

2,466,458

94,328 250,925 -2,121,205 --

2003 Bond

$

$

$

$

3,609,702

--

3,609,702

3,670,000

-3,670,000

$

$

$

$

(60,298) $

119,495

44,965 74,530 ----

59,197

59,197 ----

2006 Bond

$

$

$

$

$

$

840,713

878,191 $

(37,478) $

--

----

(37,478) $

3,492,587

576,253 1,085,022 925,709 67,570 838,033

3,455,109

47,662 --3,407,447

Activity

See Accompanying Notes to Financial Statements 35

1,078,848

795,558

283,290

(81,840)

(25,000) (56,840) --

365,130

4,711,777

--4,522,116 -189,661

5,076,907

50,166 289,997 2,993,272 1,743,472

Child Nutrition

26,695

31,395

(4,700)

--

----

(4,700)

9,700

9,700 -----

5,000

---5,000

Gifts

$

$

$

$

$

$

$

$

$

149,773

58,096

91,677

--

----

91,677

33,354

23,377 9,977 ----

125,031

---125,031

Casualty/ Insurance

$

$

$

$

$

$

$

$

$

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Governmental Funds For the Year Ended June 30, 2006

8,070,934

5,264,514

2,806,420

3,588,160

(25,000) (56,840) 3,670,000

(781,740)

11,587,521

818,032 1,420,454 5,447,825 2,852,090 1,049,120

10,805,781

186,784 289,997 2,993,272 7,335,728

Total Other Governmental Fund

This page is intentionally blank

36

37 Total U.S. Department of Education

36

84.002

551

572 731/732

84.365

$

$ 84.186

596

84.196

Safe and Drug Free Schools - State Grants

542 546/548

541

84.367

84.318X

$ $ $ $ $ $ $ $ 514 556

84.213 84.298

Part B, Subpart3, William F. Goodling Even Start Family Literacy Title V, Part A Innovative Title II, Part A Teacher and Principal Training and Recruiting Fund Part B, Mathematics & Science Partnership Education through Technology Part C, Education for Homeless Children and youth Part A, English Language Acquisition, Language Enhancement and Academic Achievement Adult Basic Education

84.366

$

(3,066,074)

(44,937)

(49,305) (8,772) (352,784) (67,082) (8,243) (28,939) (27,838) (184,849)

(1,171,812) (32,696) (1,204,508)

(932,806)

(116,311)

$

$

(99,416) (16,895)

(39,700)

$ $

(39,700) -----

$

621/631/613/615 $ 641

511

421 428

561 591 592 597 598

84.027 84.173

84.010

84.048 84.243

84.060 84.041 84.041 84.340 84.938

Pass-Through Grantor's Project Number

Special Education - Grants to States Special Education - Preschool Grants Special Education Cluster

Passed Through Oklahoma State Department of Education Title I, Improving Basic Programs

Passed Through Oklahoma Department of Career and Technology Education Vocational Education - Basic Grant to States Tech Prep

U.S. Department of Education Direct Programs Indian Education, Grants to Local Educational Agencies Impact Aid Impact Aid - Disability Impact Aid - Emergency Impact Aid - Emergency, Disabled

Federal Grantor/Pass-Through Grantor/ Program Title

Federal CFDA Number

Deferred Revenue (Accounts Receivable) 6/30/05

$

$

$ $ $ $ $ $ $ $

$

$

$

$

$

$

$

10,117,774

132,715

125,999 57,373 867,746 116,223 37,100 77,984 62,483 589,734

3,637,574 90,059 3,727,633

2,611,385

334,572

292,387 42,185

1,376,827

310,426 835,591 103,240 113,880 13,690

Federal Grant Receipts

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Schedule of Federal Awards For the Year Ended June 30, 2006

$

$

$ $ $ $ $ $ $ $

$

$

$

$

$

$

$

8,349,207

101,598

100,462 50,477 676,109 112,430 29,644 65,421 41,777 470,255

3,026,560 73,632 3,100,192

2,313,163

309,841

270,357 39,484

977,838

333,381 410,647 103,240 116,880 13,690

Federal Grant Expenditures

$

$

$ $ $ $ $ $ $ $

$

$

$

$

$

$

$

(1,297,507)

(13,820)

(23,768) (1,876) (161,147) (63,289) (787) (16,376) (7,132) (65,370)

(560,798) (16,269) (577,067)

(634,584)

(91,580)

(77,386) (14,194)

359,289

(62,655) 424,944 -(3,000) --

Deferred Revenue (Accounts Receivable) 6/30/06

38

698

93.778

$

(3,337,911)

$

$

$

117,791 117,791 (220,861)

$

$

$

$

----

(1,041)

(167,726)

13,982,455

220,861

167,070 3,160,341

784,605 2,208,666 2,993,271

6,306

477,173

--

--

237,828 239,345

$

(86,553)

(81,173)

Federal Grant Receipts

$

$

$

$

$

$

$

$

12,204,405

214,864

212,595 3,205,866

784,605 2,208,666 2,993,271

5,765

428,703

6,473

226,605

195,625

Federal Grant Expenditures

37

Note: The Theschedule above schedule above has of expenditures been preparedofonfederal the modified awards accrual includesbasis the federal of accounting. grant activity of Midwest City- Del City Independent School District No. 52, Oklahoma County, Oklahoma. The schedule is prepared using a cash receipts and disbursements basis. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received. Impact aid money received under project 591 becomes part of the operating funds of the District. These funds are used to finance current operating expenses and are not restricted to a specific use.

Total Expenditures of Federal Awards

$

12.112

10.550

$

U.S. Department of Defense Payments to States in Lieu of Real Estate Taxes

$

$

$

$

$

10.553 10.555

563

452/453

93.558

15.130

735

93.021

Pass-Through Grantor's Project Number

U.S. Department of Agriculture Passed through the Oklahoma State Department of Education Breakfast Program Lunch Program Child Nutrition Cluster Passed through the Oklahoma Department of Human Services Commodities Distributed Total U.S. Department of Agriculture

U.S. Department of the Interior Passed through the Oklahoma State Department of Education Indian Education - Assistance to Schools Johnson O'Malley Program

Total U.S. Department of Health and Human Services

Federal Grantor/Pass-Through Grantor/ Program Title Passed Through Oklahoma State Department of Education Temporary Assistance for Needy Families - Adult Basic Education Passed Through Oklahoma Department of Career and Technology Education Temporary Assistance for Needy Families Passed Through Oklahoma Health Care Authority Medical Assistance Program

Federal CFDA Number

Deferred Revenue (Accounts Receivable) 6/30/05

MIDWEST CITY - DEL CITY INDEPENDENT SCHOOL DISTRICT NO. 52 OKLAHOMA COUNTY Schedule of Federal Awards For the Year Ended June 30, 2006

$

$

$

$

$

$

$

$

(1,559,861)

(214,864)

72,266 72,266

----

(500)

(119,256)

(6,473)

(73,813)

(38,970)

Deferred Revenue (Accounts Receivable) 6/30/06

Continued

MHM COUNT ON MHM

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 To the Board of Education Midwest City - Del City Independent School District No. 52 Midwest City - Del City, Oklahoma We have audited the financial statements of Midwest City - Del City Independent School District No. 52 as of and for the year ended June 30, 2006, and have issued our report thereon dated January 16, 2007. 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered Midwest City - Del City Independent School District No. 52’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.

Murrell, Hall, McIntosh & Co., PLLP • Certified Public Accountants • Norman, OK 73069 • 405.292.2900 • F. 405.321.4758 • www.mhmcpa.com 39

2402 Westport Drive

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

Compliance and Other Matters As part of obtaining reasonable assurance about whether Midwest City - Del City Independent School District No. 52’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance and other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of Midwest City - Del City Independent School District No. 52 in a separate letter dated January 25, 2007. This report is intended solely for the information and use of the board of education, management, others within the organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Norman, Oklahoma January 25, 2007

40

MHM COUNT ON MHM

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Education Midwest City - Del City Independent School District No. 52 Midwest City - Del City, Oklahoma: Compliance We have audited the compliance of Midwest City - Del City Independent School District No. 52 with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2006. Midwest City - Del City Independent School District No. 52’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Midwest City - Del City Independent School District No. 52’s management. Our responsibility is to express an opinion on Midwest City - Del City Independent School District No. 52’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 A133, 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 Midwest City - Del City Independent School District No. 52’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Midwest City - Del City Independent School District No. 52’s compliance with those requirements.

Murrell, Hall, McIntosh & Co., PLLP • Certified Public Accountants • Norman, OK 73069 • 405.292.2900 • F. 405.321.4758 • www.mhmcpa.com 41

2402 Westport Drive

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 In our opinion, Midwest City - Del City Independent School District No. 52 complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2006. Internal Control Over Compliance The management of Midwest City - Del City Independent School District No. 52 is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Midwest City - Del City Independent School District No. 52's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operations that we consider to be material weaknesses. This report is intended solely for the information and use of the board of education, management, others within the organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Norman, Oklahoma January 25, 2007

41 42

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO 52 Schedule of Findings and Questioned Costs June 30, 2006 Section 1 -- Summary of Auditors’ Results Financial Statements: Type of Independent Auditors’ Report:

Unqualified

Internal Control Over Financial Reporting • Material weakness(es) identified? ______ Yes __X _ No • Reportable condition(s) identified that are not considered to be material weaknesses? __ _ Yes ___X__ None reported Noncompliance material to financial statements noted _____ Yes __X_ No Federal Awards: Internal Control Over Major Programs: • Material weakness(es) identified? ___ ___ Yes __X___ No • Reportable condition(s) identified that are not considered to be material weaknesses? _____ Yes _ X__ None reported Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133 ______ Yes __X__ No Type of auditors’ report issued on compliance for major programs: unqualified Identification of major programs: CFDA Number 84.366 84.010 84.367

Name of Federal Program Math & Science Partnership Title I Title II

Dollar threshold used to distinguish between Type A and type B programs Auditee qualified as low-risk auditee

$359,200 __X__ Yes

42 43

______ No

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO 52 Schedule of Findings and Questioned Costs June 30, 2006 Section II - Findings relating to the Financial Statements None reported Section III - Findings and Questioned Costs for Major Federal Awards None reported

43

44

MIDWEST CITY – DEL CITY INDEPENDENT SCHOOL DISTRICT NO 52 Summary of Prior Year Findings June 30, 2006 None reported

44 45