Annual Comprehensive Financial Report for the FY Ended June 30, 2024

Org chart for School District 27J. Graphic depicts the 27J Community at the top, followed by the Board of Education, which is then followed by Dr. Chris Fiedler, Superindtendent of Schools. There are then nine branches from Dr. Fiedler, the first of which is Janelle Asmus, Director of Communications. The second branch from Dr. Fiedler is Kenlyn Newman, from the division titled CHARTER LIASION SERVICES. The third branch from Dr. Fiedler is Lynnn Ann Sheats, Administrative Assistant. The fourth branch from Dr. Fiedler is Stacey Yoshimoto, Chief Financial Officer. In this branch are four more sequential branches, titled FINANCE, BUDGET, PAYROLL, and CHILD CARE. The fifth branch from Dr. Fiedler is William Pierce, Chief Academic Officer. In this branch are six more sequential branches, titled PRINCIPALS, CURRICULUM AND INSTRUCTION, SPECIAL EDUCATION, CAREER/TECHNICAL EDUCATION, GRANTS & ASSESSMENT, and INTERVENTION SERVICES. The sixth branch from Dr. Fiedler is listed as VACANT, General Counsel. The seventh branch from Dr. Fiedler is Terry Lucero, Chief Operating Officer. In this branch are six more sequential branches, titled PLANNING, FACILITIES, TRANSPORTATION, NUTRITION SERVICES, CRISIS MANAGEMENT, and CONSTRUCTION. The eigth branch from Dr. Fiedler is Jeremy Heide, Chief Information Officer. In this branch are three more sequential branches, titled NETWORK MANAGEMENT, STUDENT SYSTEMS MANAGEMENT, and T.R.A.C.E. HELPDESK. The ninth branch from Dr. Fiedler is Michael clow, Chief Human Resources Officer. In this branch are five more sequential branches, titled COMPENSATION ADMINISTRATION, BENEFITS ADMINISTRATION, RECRUITING & ONBOARDING, EMPLOYEE WELLNESS, and SUBSTITUTES.

27J Schools

Superintendent William Pierce

18551 E. 160th Avenue, Brighton, CO 80601

27J Schools Board of Education

• Tom Green, President
• Mandy Thomas, Vice President
• Melinda Carbajal, Director
• Ashley Conn, Director
• Starr Trujillo, Director
• Rachel Wilhelm, Director

December 5, 2024

Members of the Board of Education
School District 27J
Brighton, CO 80601

 

The Local Government Audit Law requires Colorado local governments to have an annual audit of their financial statements and publish, within six months of the close of each fiscal year, a complete set of audited financial statements. This Annual Comprehensive Financial Report (ACFR) is published to fulfill that requirement for the fiscal year ended June 30, 2023.

The District management assumes full responsibility for the completeness and reliability of the information contained in the ACFR, based upon a comprehensive framework of internal control that it has established for this purpose. The District’s financial services department prepared this report which contains management’s representations concerning the finances of the District. To the best of our knowledge and belief, the enclosed data is accurate in all material aspects, reported in a manner to present fairly the financial position and results of operations of the District’s funds. As the cost of internal controls should not outweigh the benefits, the outcome is to provide reasonable, rather than absolute, assurance the financial statements are free of any material misstatements.

The ACFR is presented in three sections: Introductory, Financial, and Statistical.

• The introductory section includes this letter of transmittal, the District’s organizational chart, a list of principal officials and a reproduction of the 2022 GFOA Certificate of Achievement.
• The financial section includes the report of the independent auditor, management’s discussion and analysis (MD&A), basic financial statements, required supplementary information and notes, combining statements, and individual fund statements and schedules.
• The statistical section includes selected financial and demographic information, generally presented on a multiyear basis.

RubinBrown LLP, Certified Public Accountants, have issued an unmodified (“clean”) opinion on the School District 27J’s financial statements for the year ended June 30, 2023. The independent auditors’ report is located at the front of the financial section of this report.

MD&A immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of School District 27J

Counties of Adams and Weld School District 27J, commonly referred to as School District 27J, formed in 1959 upon the reorganization and consolidation of several former school districts. School District 27J is located northeast of the Denver, Colorado metropolitan area and encompasses approximately 212.4 square miles in northwest Adams County, northeast Broomfield County and southwest Weld County and serves a population of about 109,800. The District is the only school district serving the City of Brighton and also serves segments of the cities of Thornton and Commerce City, in addition to the surrounding unincorporated and generally rural areas.

The District is a legally separate, primary government entity that operates under a publicly elected seven-member Board of Education. The Board of Education members are elected to alternating four-year terms with elections held every two years. Board members represent a specific area of the District, but are elected at-large. The School District 27J Board of Education voted January 27, 2009 to adopt the Policy Governance model of board governance. The Board of Education adopts the budget, employs all personnel required to maintain the operations, determines the educational programs provided by the district, and is primarily accountable for fiscal matters.

The District provides a full range of educational programs and services authorized by Colorado State Statutes to over 20,000 enrolled students. Included are basic kindergarten through twelfth-grade (K-12) education as well as preschool, vocational, special education, gifted and talented, bilingual education and numerous services and programs. The District’s K-12 curriculum is delivered in its neighborhood school system of 12 elementary schools, 5 middle schools, 4 high schools (3 comprehensives and 1 alternative), 1 blended learning school, and 6 charter schools.

School District 27J is financially accountable for six charter schools and one capital foundation that are legally separate entities; all financial activity of the seven component units is discretely presented in the District’s financial statements for the year ended June 30, 2022. The District’s seven component units, are Belle Creek Charter School, Bromley East Charter School, Eagle Ridge Academy, Foundations Academy and Landmark Academy (charter schools operated by National Heritage Academies), The STEAD School, and the School District 27J Capital Facility Fee Foundation (CFFF). Additional information on all of these legally separate entities can be found in the notes to the financial statements (see note 1-A).

Colorado State Statutes require that the District adopt the budget by June 30 prior to the beginning of the subsequent fiscal year. Budget revisions may be adopted prior to January 31 of the current fiscal year. The District maintains extensive budgetary controls, to ensure compliance with legal requirements, Board of Education policies and District administrative guidelines. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by fund. Staffing levels are authorized for each site and are tracked monthly to insure usage within budgeted limits. Monthly reports are provided to each site’s administrative staff, to allow monitoring of their discretionary budgets. As demonstrated by the statements and schedules included in the financials section of this report, the District continues to meet its responsibility for sound financial management.

Local economy

School District 27J provides educational services in the Metro Denver area inclusive of the cities of Brighton, Thornton and Commerce City. The District has a significant economic presence, employing in total more than 2,000 teachers, professionals and support staff.

The labor market in Colorado remains strong, with overall employment well exceeding pre-pandemic levels. While Colorado continues to outpace the nation on most labor market measures, there are some indications of softening. Elevated job openings continue to indicate that there is room to reign in inflationary pressures without decreasing employment. Employment levels in Colorado reached pre-pandemic levels in February 2022. Jobs are abundant, and ample household savings have helped to shrink the gap between rising incomes and even more quickly rising prices, but inflation has taken its toll. Rapid price hikes from energy and housing to food and vehicles have eroded real gains in earnings and income. Imposing and persistent inflationary pressures have prompted the Federal Reserve to raise interest rates and reduce asset purchases The coming months will illuminate the inflation response to monetary policy treatment, as well as any persistent impacts for households and businesses.

Metro Denver has a limited supply of residential real estate and above-average population growth, so home prices and appreciation are rising, and construction activity is robust. School District 27J is one of the few remaining areas in Metro Denver with large amounts of land for development. The population in Brighton, Thornton and Commerce City have all increased in recent years.

Brighton City Council has continued its commitment to expanding both the employment base and range of retail opportunities by funding and working in cooperation with the Brighton Economic Development Corporation, Brighton Urban Renewal Authority, and Adams County Economic Development and Upstate Colorado Economic Development.

The District maintains a credit rating for schools of "A+" with a stable outlook. Credit ratings, provided by independent third parties, serve as an indicator of an organization's financial stability—as well as the safety and security of the debt sold by that organization. The most recent report from Standard and Poor referenced the District’s access to, and participation in, the large and diverse Denver economy, coupled with very strong per capita wealth levels and good to very strong income indicators; which include continued growth in enrollment, the primary influence on the District's operating revenues; and consecutive years of positive operations with strong available general fund balances. In general, higher credit ratings often result in lower borrowing costs for the District because our interest rates are lower and there is a wider market of buyers.

Long-term financial planning and major initiative

Unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) in the general fund at year end was 19.3 percent of the total general fund revenues.

Student enrollment increased annually through fiscal year 2022-2023. Enrollment in fiscal year 2023-2024 will increase again due to projected growth at all grade levels. The District has worked through budget policy and practice of a structurally balanced budget in order to maintain stability, despite the inclusion of the budget stabilization factor in the Colorado School Finance Act which has limited growth on a per pupil basis.

The District was successful in passing a $515 million bond in the November 2021 election supporting building four new schools, including a fourth district high school, a sixth district middle school, the second phase of the fourteenth district elementary and a K-8 school. In addition, STEM/CTE expansions at the three high schools, a new transportation terminal, additional technology, increased safety and security and continued deferred maintenance at the existing District buildings will all be supported by the bond. Discovery Magnet opened in the fall of 2023 along with all three CTE centers at the comprehensive high schools.

The District was also successful in passing a $17.74 mill levy override in the November of 2022 election supporting compensation, safety and security and supporting our career technical and education centers.

Achievement

• Students in 27J are approaching the state average on Colorado Measures of Academic Success (CMAS).
• Students in 27J are scoring below the state average in nearly every assessment.
• These proficiency gaps widen as students approach graduation.
• There is a significant gap in performance with ELA students, Hispanic students, and free and reduced lunch students within 27J.

Growth

• Students in 27J are approaching making enough yearly growth.

Gaps

• Proficient or advanced 27J students are not "keeping up" with their proficiency at the same rate that other Colorado students are, nor are the proficient students "moving up" toward an advanced score.
• "Students with Disabilities" received a "Does Not Meet" rating in Reading, Math, and Writing at the elementary and middle school levels. They also received a "Does Not Meet" rating for Graduation rate."

The three major improvement strategies outlined in the 27J Unified Improvement Plan are:

• Thinking Classrooms provide a framework for outlining the structures for 27J leaders. The Thinking Classroom is a classroom that transfers the definition of learning from the teacher delivering knowledge to the teacher being a driver of focused intentional learning, and students moving from a passive receiver of facts to a thinker using information. All students will have access to the same goal derived from the adopted 27J standards which are based on Colorado Academic Standards and the Common Core Standards.
  The Thinking Classroom will have student evidence that is thoughtfully considered for each goal and assessed against the desired learning. Adjustments will be made in the instruction, and accommodations are offered to ensure the goal attainment based on the evidence.
• The second focus is to use 27J curricular frames to align instruction toward big ideas. The 27J curricular frame is used to help create unit goals. These unit goals consider big ideas, the acquisition of essential knowledge and understandings, and the skills that a student will need to transfer this learning. Daily lessons are planned backwards from the unit goals. Each daily lesson’s objective is essential in the development of larger unit goals.
• The third area is to use 27J common assessment evidence to improve instruction. The teacher is also clear about what successful learning looks like and sounds like for each unit goal, daily objective and assignment. The teacher uses these learning criteria to tune in smartly to every student conversation, project, quiz, exit ticket or homework assignment as a way to gather evidence of learning, provide feedback, adjust future lessons, organize instructional supports, etc.

Relevant financial policies

The District's accounting system is designed to provide reasonable assurance that its assets are adequately safeguarded and that transactions are accurately recorded and have proper authorization. The District's budgetary and accounting controls provide reasonable assurance that errors or irregularities of a material nature are prevented or are detected in a reasonable period of time. The District is required by state law to adopt an annual budget that represents a complete financial plan for the ensuing fiscal year. A detailed programmatic budget is used as a guideline for expenditures, and monthly financial variance reports are prepared and distributed to the Superintendent and District leadership. The monthly reports contain information for all funds regarding revenue and expenditures as compared to the approved budget and prior fiscal year. While minor deviations from budget at the line-item level are allowed, control of expenditures is maintained at the fund level to ensure that all budget areas stay within their total budgeted appropriations. School principals and department managers use the reports to monitor budgetary variances and significant differences are discussed with the appropriate supervisory staff as they occur. The Board of Education also receives monitoring reports throughout the fiscal year providing further detailed financial information on all funds as well as charter school operational and financial activity.

The financial accounting and budgetary system is automated and includes edits and balancing routines to ensure the integrity of the data entered. An evaluation of internal controls conducted by our auditors is included as part of this annual financial audit. The auditors’ findings are presented to the Board of Education in the Single Audit report in the Compliance Section.

Acknowledgements

This preparation of this report would not have been possible without the skill, effort, and dedication of the entire Finance Office staff. Each and every member of the Finance Office staff provides input into this report. We commend the Board of Education for their interest and unfailing support related to the planning and management of the District's finances in a responsible and progressive manner. Additionally, we would like to express our appreciation to the cities of Brighton, Commerce City, Thornton, Adams and Weld Counties, and other public entities which provided meaningful information in the preparation of this report.

Respectfully submitted,

William Pierce
Superintendent of Schools

Stacey Yoshimoto
Chief Financial Officer

1900 16th Street

Suite 1700

Denver, CO 80202

T: 303.698.1883

E: info@rubinbrown.com

www.RubinBrown.com

CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS CONSULTANTS

Independent Auditors' Report

Board of Education
School District 27J
Brighton, Colorado

Report On The Audit Of The Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information for School District 27J (the District), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, based on our audit and the reports of other auditors, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the District as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

We did not audit the financial statements of Eagle Ridge Academy Charter School, Bromley East Charter School, Belle Creek Charter School, Foundation Academy Charter School, Landmark Academy Charter School, Capital Facility Fee Foundation, and the STEAD School, which represent 100 percent of the assets, net position and revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for Eagle Ridge Academy Charter School, Bromley East Charter School, Belle Creek Charter School, Foundation Academy Charter School, Landmark Academy Charter School, Capital Facility Fee Foundation and the STEAD School, is based solely on the reports of the other auditors.

Basis For Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities For The Audit Of The Financial Statements section of our report. The financial statements of Bromley East Charter School, Belle Creek Charter School, the Capital Facility Fee Foundation, and the STEAD School were not audited in accordance with Government Auditing Standards.

We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis Of Matter

As discussed in Note 2-L to the financial statements, the District implemented the provisions of Governmental Accounting Standards Board Number 96, Subscription-Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

Responsibilities Of Management For The Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities For The Audit Of The Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 14 through 24 and budgetary comparison information, schedule of the District’s proportionate share of the net pension liability, schedule of the District’s contributions to the pension plan, schedule of the District’s proportionate share of the net other postemployment benefit (OPEB) liability and the schedule of the District’s contributions to the OPEB plan on pages 94 through 101 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The schedule of expenditures of federal awards, as required by the U.S. Office of Management and Budget’s Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; the Colorado Department of Education Auditor’s Electronic Financial Data Integrity Check Figures, the combining and individual fund financial statements and schedules and the combining component unit financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS by us and the other auditors. In our opinion, based on our audit, the procedures performed as described above and the report of the other auditors, the schedule of expenditures of federal awards, the Colorado Department of Education Auditor’s Electronic Financial Data Integrity Check Figures, the combining and individual fund financial statements and schedules and the combining component unit financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required By Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2024 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Rubin Brown LLP
December 5, 2024

As management of School District 27J, counties of Adams, Weld and Broomfield, Colorado (the School District), we offer readers of the School District’s Annual Comprehensive Financial Report this narrative overview and analysis of the financial activities of the School District for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal; which can be found on pages 3-7 of this report, and the School District’s financial statements, which follow this section.

Financial Highlights

• The District applies the Governmental Accounting Standards Board (GASB) Statement No. 68 Accounting and Financial Reporting for Pensions (GASB 68). GASB 68 addresses financial reporting requirements for governments that provide their employees with pension benefits. The School District provides its employees with pension benefits through a multiple employer cost sharing defined benefit retirement program administered by the Public Employees’ Retirement Association of Colorado (PERA).
• Due to the ($234.9) million effect of GASB 68, the assets and deferred outflows of resources of the School District only exceeded its liabilities and deferred inflows of resources at June 30, 2024, by $46.8 million (net position).
• During the November 2020 election, the School District voters successfully passed an authorization for issuance of $515 million of bonds. The bonds are funding building a new comprehensive high school; two new middle schools; STEM/CTE centers at all three of the current high schools, all of which opened in the fall of 2023; a K-8 school, Discovery Magnet, which opened in the fall of 2023 and the second phase of a new elementary, Southlawn Elementary, which opened in fall of 2022. In addition, the School District will continue to increase safety and security measures district-wide and lengthen the life of existing educational facilities through repairs, maintenance and renovations.
• During the November 2022 election, the School District voters successfully passed a Mill Levy Override to increase the District’s taxes by $17.74 million beginning in tax collection year 2023, and by whatever amounts as may be generated annually thereafter by the imposition of an additional mill levy of not to exceed 8 mills. This funding is used for the safety of students, staff, and community; compensation to attract and retain effective and experienced staff to serve and support students; and for career and technical education/stem center staffing and program support.
• The net position of the School District governmental activities includes $94.5 million net investment in capital assets; net position of $93 million restricted for debt service payments, $6.7 million required emergency reserves; and an unrestricted net position balance of negative ($159.3) million.
• At the end of the current fiscal year, unassigned fund balance for the General Fund is $43.2 million or 16.8% of General Fund Expenditures.

Overview of the Financial Statements

The discussion and analysis provided are intended to serve as an introduction to the School District’s basic financial statements. The School District’s basic financial statements consist of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) the notes to the financial statements. This report also includes required supplementary information intended to furnish additional detail to support the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide the reader of the School District’s Annual Comprehensive Financial Report a broad overview of the School District’s finances in a manner similar to a private sector business. The government-wide financial statements include the statement of net position and the statement of activities.

The statement of net position presents financial information on all of the School District’s assets, deferred outflows or resources, liabilities and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District as a whole is improving or deteriorating. Evaluation of the overall health of the School District would extend to other non-financial factors such as diversification of the taxpayer base or the condition of School District infrastructure, in addition to the financial information provided in this report.

The statement of activities presents information showing how the School District’s net position changed during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods. The purpose of the statement of activities is to show the financial reliance of the School District's activities or functions on revenues provided by the School District's taxpayers.

In the government-wide financial statements, the School District’s activities include:

• Governmental activities: Most of the School District’s basic services are included here, such as instruction and support services that are principally supported by property taxes and state funding.

The government-wide financial statements include not only financial data for the School District itself (known as the primary government), but also the legally separate Capital Facility Fee Foundation and seven legally separate charter schools for which the School District is financially accountable. Financial information for these component units is presented separately from the financial information presented for the primary government itself.

The government-wide financial statements can be found on pages 25-26 of this report.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The School District uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Individual fund data for non-major funds is provided in the form of combining statements in a later section of this report. All of the funds of the School District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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

Since the governmental funds and the governmental activities report information using the same functions, it is useful to compare the information presented. Because the focus of each report differs, a reconciliation is provided on the fund financial statements to assist the reader in comparing the near-term requirements with the long-term needs.

The School District maintains nine individual governmental funds. The major funds are the general fund, the capital projects fund, the government designated purpose grants fund, the debt service fund, and the nutrition services fund. They are presented separately in the fund financial statements with the remaining governmental funds combined into a single aggregated presentation labeled other governmental funds. Individual fund information for the nonmajor funds is presented as supplementary information in this document. The School District adopts an annual appropriated budget for each of the governmental funds. Budgetary comparison statements for the nine governmental funds are included in the supplementary information to demonstrate compliance with the amended budget.

The basic governmental fund financial statements can be found on pages 27-30 of this report.

Proprietary funds: Effective July 1, 2014 the School District maintains one type of proprietary fund, internal service funds. Internal service funds are used to accumulate and allocate costs internally among the governmental functions. The School District has two internal service funds, the risk management/dental insurance fund, which is used for the School District self-insured dental program and the print shop fund, which is used for the in-house printing services. The School District adopts an annual appropriated budget for each of the proprietary funds. Budgetary comparison statements for the two proprietary funds are included in the supplementary information to demonstrate compliance with the amended budget.

The basic proprietary fund financial statements can be found on pages 31-33 of this report.

Private Purpose Trust Fund: The private purpose trust fund is used to account for resources held for the benefit of parties outside of the School District. The private purpose trust fund is not reflected in the government-wide financial statements because the resources of those funds are not available to support the School District’s own programs. The accounting used for private purpose trust funds is much like that used for proprietary funds. The School District has one private purpose trust fund which is primarily used for scholarship activity.

The basic private purpose trust fund financial statements can be found on pages 34-35 of this report.

Notes to the Basic Financial Statements

The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the School District's budget presentations. Budgetary comparison statements are included as “required supplementary information” for the general fund, nutrition services fund and the government designated purpose grant fund. Budgetary comparison schedules for all other governmental funds can be found in a later section of this report. These statements and schedules demonstrate compliance with the School District’s adopted budget.

As discussed, the School District reports major funds in the basic financial statements. Combining and individual fund statements and schedules for non-major funds can be found beginning on page 104 of this report.

Government-wide Overall Financial Analysis

Government-wide Net Position

As noted earlier, net position may serve as a useful indicator of a government’s financial position. Largely affected by the effect of GASB 68, the assets and deferred outflows of resources of the School District exceeded its liabilities and deferred inflows at June 30, 2024, by $46.5 million.

The assets of the School District are classified as current assets, capital assets, net of depreciation and amortization and other non-current assets. Cash, investments, deposit with insurance pool, receivables, inventories and prepaid expenses are current assets. These assets are available to provide resources for the near-term operations of the School District. Cash and investments account for 94.3% of the current assets. Receivables are due in large part as a result of the property tax collection process. The School District receives close to 95% of the annual property tax assessment between March and June. The School District reports deferred outflows of resources related to pensions and the loss on refunding.

Current and noncurrent liabilities are classified based on anticipated liquidation either in the near-term or in the future. Current liabilities include accounts payable, accrued salaries and benefits, accrued interest payable, unearned revenue, early retirement payable, compensated absences payable, leases payable, SBITAs payable, estimates for claims and premiums, and current portion of debt obligations. The liquidation of current liabilities is anticipated to be from current available resources, current assets or new resources that become available during fiscal year 2024- 2025. Noncurrent liabilities such as long-term debt obligations and compensated absences will be liquidated from resources that will become available after fiscal year 2024-2025.

The School District’s net position includes a $94.5 million investment in capital assets net of accumulated depreciation and amortization and any related outstanding debt that was used to acquire those assets. The School District uses these capital assets to provide educational services to its students. Although the School District’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Net position of $93.0 million, accumulated due to voter approved bonded debt mill levy assessments, have been restricted to provide resources to liquidate the current general obligation bond principal and related interest payments.

Unrestricted net position is different than what would be reflected on a governmental fund accounting basis. This is due to GASB 68 and 75 along with the accounting treatment in the government-wide statements of accrued salaries and benefits earned but unpaid and compensated absences payable. The $1.56 million long-term portion of compensated absences is recorded as a liability on the government-wide statements, but not on the governmental fund statements because they are not payable with current funds. The GASB 68 net pension liability and GASB 75 net other post-employment benefit liability are reported in the same manner as compensated absences and are $322.8 million and $7.8 million, respectively.

Comparative Summary of Net Position As of June 30, 2024

Description	Governmental Activities (2024)	Governmental Activities (2023)	Total % Change (2023 to 2024)
Assets - Total Current Assets	$213,886,581	$162,219,675	31.8%
Assets - Capital Assets net of Depreciation and Amortization	$560,833,276	$540,229,612	3.7%
Assets - Other Non-Current Assets	$133,493,291	$199,292,385	-33.0%
Total Assets	$908,213,148	$901,741,672	0.7%
Deferred Outflows of Resources	$106,109,869	$65,260,012	62.6%
Liabilities: Total Current	$43,369,069	$64,259,805	-32.5%
Liabilities: Total Non-Current	$906,867,977	$848,955,761	6.8%
Total Liabilities	$950,237,045	$913,215,566	4.1%
Deferred Inflows of Resources	$17,222,384	$34,829,845	-50.6%
Net Position: Net Investment in Capital Assets	$94,832,292	$99,201,987	-4.8%
Net Position: Restricted for: TABOR	$6,698,223	$5,596,417	19.7%
Net Position: Restricted for: Debt Service	$93,037,976	$74,995,304	24.1%
Net Position: Restricted for: Government Designated Purpose Grants	$590,458	$649,696	-9.1%
Net Position: Restricted for: Colorado Preschool Program	$1,177,845	$827,454	42.3%
Net Position: Restricted for: Nutrition Service	$5,924,446	$4,976,557	19.0%
Net Position: Restricted for: Other Program Purposes	$3,927,377	$1,796,900	118.6%
Net Position: Unrestricted	($159,325,035)	($169,088,042)	-5.8%
Total Net Position	$46,863,588	$18,956,273	145.4%

The School District’s overall net position increased $27.9 million from the prior fiscal year. Further detail for this overall increase is provided in the following sections for governmental activities.

Governmental Activities

Governmental activities increased the net position of the School District by $27.6 million.

Comparative Schedule of Changes in Net Position As of June 30, 2024

Description	Governmental Activities (2024)	Governmental Activities (2023)	Total % Change (2023 to 2024)
Program Revenues: Charges for Services	$11,103,237	$12610,412	-12.0%
Program Revenues: Operating Grants and Contributions	$35,741,970	$39,817,349	-10.2%
General Revenues: Local Property Taxes	$174,904,541	$138,212,817	26.5%
General Revenues: Specific Ownership Taxes	$17,414,190	$5,537,768	214.5%
General Revenues: Equalization	$148,507,058	$138,639,823	7.1%
General Revenues: Other	$11,430,479	$10,126,396	12.9%
Total Revenues	$399,101,475	$344,944,565	15.7%
Expenses: Instruction	$158,574,050	$121,930,926	30.1%
Expenses: Supporting Services - Pupil Services	$15,676,949	$14,854,016	5.5%
Expenses: Supporting Services - Instructional Staff	$10,092,098	$7,751,337	30.2%
Expenses: Supporting Services - General Administration	$3,847,710	$2,741,128	41.0%
Expenses: Supporting Services - School Administration	$21,178,190	$14,166,299	50.2%
Expenses: Supporting Services - Operations and Maintenance	$23,912,487	$17,006,602	40.9%
Expenses: Supporting Services - Pupil Transportation	$11,151,250	$9,146,464	21.9%
Expenses: Supporting Services - Business Supporting Services	$3,135,787	$3,832,784	-18.2%
Expenses: Supporting Services - Central Supporting Services	$19,431,738	$15,016,360	29.4%
Expenses: Community Services	$2,264,391	$1,857,633	21.9%
Expenses: Pupil Activities	$4,691,778	$4,353,277	7.8%
Expenses: Charter Schools	$66,437,883	$57,187,048	16.2%
Expenses: Debt Service - Interest	$20,909,071	$23,197,693	-9.9%
Expenses: Nutrition Service	$10,072,396	$7,946,548	26.7%
Total Expenses	$371,194,161	$300,988,115	23.4%
Change in Net Position	$27,907,315	$43,956,450	-37.3%
Beginning Net Position	$18,956,273	$(25,000,177)	-175.8%
Ending Net Position	$46,863,588	$18,856,273	145.4%

While the continued loss in funding due to the inclusion of the negative factor in the Colorado Public School Finance Act (SFA) has certainly had an impact on the School District, management has been able to limit expenses to minimize the impact on governmental activities over the long term. The SFA provides for the majority of the funding of local school districts based on a funded pupil count formula and a maximum property tax mill levy determined for each school district. Funding for the SFA comes from property taxes, specific ownership tax and state equalization. State equalization provided 37.2% of the School District’s total governmental revenues, which is a decrease of 3.0% over the prior fiscal year. Local taxes provided 48.2% of governmental revenue. The $36.7 million increase in local property taxes from the prior fiscal year is associated with the increase in levies for mills and passing of the 2022 Mill Levy Override. The School District levies 35.306 mills annually for the SFA, an increase of 1.085 from the prior year. The $9.9 million increase in equalization is due to an increase in per pupil funding in 2023-24.

Pie chart labeled Sources of Revenue for FY 24. Fractional components from largest to smallest are 'Taxes' corresponding with 48.2%; 'State formula aid' corresponding with 37.2%; 'Operating grants and contributions' corresponding with 9.0%; 'Other' corresponding with 2.9%; and 'Charges for services' corresponding with 2.8%.

Government-wide expenses increased $70.6 million from the prior year. A large portion of this was due to the increase in the amount the State contributed to the state pension fund and the amount the District was required to report as an “on-behalf” benefit. Direct governmental instructional expenses make up 42.7% of the total governmental expenses. This category includes direct instruction to students. Support services, which includes but is not limited to operations and maintenance, transportation, pupil services, and other general support services is 29.2% of the total governmental expenses. Charter schools’ governmental expenses constitute 17.9% of the total governmental expenses in fiscal year 2024. The remaining 10.2% of the total governmental expenses include community services, pupil activities, nutrition services and debt service interest payments.

 

Financial Analysis of Governmental Funds

As noted earlier, the School District uses fund accounting to ensure and demonstrate compliance with finance-related laws and regulations.

Governmental Funds

The focus of the School District’s governmental funds is to provide information on near-term inflows, outflow, and balances of spendable resources. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the School District, or a group or individual that has been delegated authority to assign resources for particular purposes by School District’s Board of Education.

Of this year-end total, $43.2 million is unassigned, indicating availability for continuing School District service requirements. Legally restricted fund balances include $91.9 million for debt service, $121.3 million for capital projects and $6.7 million restricted pursuant to the TABOR Amendment. Article X 20(5) of the Colorado State Constitution (TABOR Amendment), requires that an amount equal to 3% or more of its fiscal year spending excluding debt service be set aside. Committed fund balances include $6.4 million for special revenue funds, $6.9 million for Board contingencies, $2.6 million for capital reserve projects, $3.6 million for risk management insurance and contracted services.

The General Fund is the School District’s primary operating fund and the largest source of day-to-day service delivery. At the end of the current fiscal year, unassigned fund balance in the general fund was $21.5 million, while total fund balance increased $21.7 million to $56.2 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents approximately 10.0% of total general fund expenditures net of intergovernmental – charter schools, while total fund balance represents approximately 26.0% of that same amount.

Proprietary Funds

The School District’s proprietary funds consist of two internal service funds that provide the same type of information found in the government-wide financial statements, but in more detail. In fiscal year 2023, the School District accounted for the School District’s self-insured dental plan and print shop as part of the proprietary funds.

The unrestricted net position for the School District’s self-insured dental plan and print shop is $0.7 million, with the School District’s self-insured dental plan accounting for 100 percent of the total.

General Fund Budgetary Highlights

Revenue - Actual revenues were $1.0 million more than the final approved budget. This is primarily due to state equalization projections being lower than what was received as well as the on-behalf PERA payment revenue of $5.6 million.

School District 27J, Colorado Statement of Net Position June 30, 2024

Description	Governmental Activities	Component Units
Assets - Current Assets - Cash and Investments	$201,604,123	$18,071,656
Assets - Current Assets - Investments in Insurance Pool	$3,584,471	NA
Assets - Current Assets - Inventory	$103,930	$1,300
Assets - Current Assets - Receivables - Accounts	$358,186	$1,095,397
Assets - Current Assets - Receivables - Property Taxes	$4,562,162	NA
Assets - Current Assets - Receivables - Intergovernmental	$1,342,965	$723,197
Assets - Current Assets - Receivables - Grants	$101,701	$433,182
Assets - Current Assets - Receivables - Leases	$662,226	NA
Assets - Current Assets - Accrued Interest on Investments	$284,165	NA
Assets - Current Assets - Deposits and Prepaids	$1,282,652	$340,623
Assets - Total Current Assets	$213,886,581	$20,665,355
Assets - Noncurrent Assets - Restricted Cash and Investments	$133,493,291	$17,742,671
Assets - Noncurrent Assets - Non Depreciable Capital Assets	$51,382,704	$40,136,630
Assets - Noncurrent Assets - Depreciable Capital Assets, Net	$509,450,572	$30,853,280
Assets - Total Noncurrent Assets	$694,326,567	$88,732,581
Total Assets	$908,213,148	$109,397,936
Deferred Outflows of Resources - Loss on Refunding	$1,482,490	$158,644
Deferred Outflows of Resources - Related to OPEB	$2,202,149	$156,411
Deferred Outflows of Resources - Related to Pensions	$102,425,230	$9,154,478
Total Deferred Outflows of Resources	$106,109,869	$9,469,533
Liabilities - Current Liabilities - Accounts Payable	$8,433,293	$4,217,912
Liabilities - Current Liabilities - Accrued Salary and Benefits	$11,993,026	$1,151,205
Liabilities - Current Liabilities - Accrued Interest Payable	$1,994,967	$1,052,749
Liabilities - Current Liabilities - Loan Payable	NA	$340,000
Liabilities - Current Liabilities - Building Loan	NA	$660,032
Liabilities - Current Liabilities - Unearned Revenue	$4,303,364	$369,413
Liabilities - Current Liabilities - Compensated Absences Payable	$2,338,721	NA
Liabilities - Current Liabilities - Early Retirement Payable	$216,056	NA
Liabilities - Current Liabilities - Claims Payable	$72,652	$170,686
Liabilities - Current Liabilities - Leases Payable	$124,398	$36,667
Liabilities - Current Liabilities - SBITA Payable	$368,401	NA
Liabilities - Current Liabilities - Certificates of Participation	$319,191	NA
Liabilities - Current Liabilities - General Obligation Bonds Payable	$13,205,000	NA
Liabilities - Total Current Liabilities	$43,369,069	$7,998,664
Liabilities - Noncurrent Liabilities - Compensated Absences Payable (net of current portion)	$1,559,144	NA
Liabilities - Noncurrent Liabilities - Leases Payable (net of current portion)	$232,289	$27,872
Liabilities - Noncurrent Liabilities - SBITA Payable (net of current portion)	$253,155	NA
Liabilities - Noncurrent Liabilities - COPS (net of current portion)	$2,836,338	NA
Liabilities - Noncurrent Liabilities - General Obligation Bonds Payable (net of current portion)	$571,366,210	NA
Liabilities - Noncurrent Liabilities - Loans Payable (net of current portion)	NA	$38,715,000
Liabilities - Noncurrent Liabilities - Building Loans Payable (net of current portion)	NA	$14,175,121
Liabilities - Noncurrent Liabilities - Net OPEB Liability	$7,794,964	$750,408
Liabilities - Noncurrent Liabilities - Net Pension Liability	$322,825,876	$31,077,965
Liabilities - Total Noncurrent Liabilities	$906,867,977	$84,746,366
Liabilities - Total Liabilities	$950,237,045	$92,745,030
Deferred Inflows of Resources - Related to Leases	$631,828	NA
Deferred Inflows of Resources - Related to OPEB	$2,032,224	$270,040
Deferred Inflows of Resources - Related to Pensions	$14,558,331	$1,975,126
Total Deferred Inflows of Resources	$17,222,384	$2,245,166
Net Position - Net Investment in Capital Assets	$94,832,292	$19,536,783
Net Position - Restricted for - TABOR	$6,698,233	$1,854,586
Net Position - Restricted for - Debt Service	$93,037,976	$4,935,068
Net Position - Restricted for - Government Designated Purpose Grants	$590,457	NA
Net Position - Restricted for - Colorado Preschool Program	$1,177,845	NA
Net Position - Restricted for - Other Program Purposes	$3,927,377	$496,508
Net Position - Restricted for - Nutrition Service	$5,924,443	NA
Net Position - Restricted for - Building Maintenance	NA	$2,204,086
Net Position - Restricted for - Operations and Maintenance	NA	$164,555
Net Position - Restricted for - Capital Projects	NA	$6,547,602
Net Position - Unrestricted	$(159,325,035)	$(11,861,915)
Total Net Position	$46,863,588	$23,877,273

See accompanying notes to the basic financial statements.

School District 27J, Colorado Statement of Activities for year through June 30, 2024

Description	Governmental Expenses	Program Revenues - Charges for Services and Sales	Program Revenues - Operating Grants, Contributions and Interest	Program Revenues - Capital Grants and Contributions	Net (Expense) Revenue and Changes in Net Position - Governmental Activities	Component Units
Primary Government Governmental Activities - Instructional Services	$158,392,433	NA	$24,238,936	NA	$(134,153,497)	NA
Primary Government Governmental Activities - Supporting Services - Pupil Services	$15,676,949	NA	NA	NA	$(15,676,949)	NA
Primary Government Governmental Activities - Supporting Services - Instructional Staff	$10,092,098	NA	NA	NA	$(10,092,098)	NA
Primary Government Governmental Activities - Supporting Services - General Administration	$3,847,710	NA	NA	NA	$(3,847,710)	NA
Primary Government Governmental Activities - Supporting Services - School Administration	$21,178,190	NA	NA	NA	$(21,178,190)	NA
Primary Government Governmental Activities - Supporting Services - Operations and Maintenance	$c	NA	NA	NA	$(21,178,190)	NA
Primary Government Governmental Activities - Supporting Services - Pupil Transportation	$11,151,250	$831,729	$1,931,407	NA	$(8,388,114)	NA
Primary Government Governmental Activities - Supporting Services - Business Supporting Services	$3,135,787	NA	NA	NA	$(3,135,787)	NA
Primary Government Governmental Activities - Supporting Services - Central Supporting Services	$19,431,738	NA	NA	NA	$(19,431,738)	NA
Primary Government Governmental Activities - Community Services	$2,264,391	$5,891,565	NA	NA	$3,627,174	NA
Primary Government Governmental Activities - Pupil Activities	$4,691,778	$3,805,247	NA	NA	$(886,531)	NA
Primary Government Governmental Activities - Charter School Funding	$66,437,883	NA	NA	NA	$(66,4437,883)	NA
Primary Government Governmental Activities - Interest on Long-Term Debt	$20,909,071	NA	NA	NA	$(20,909,071)	NA
Primary Government Governmental Activities - Nutrition Services	$10,072,396	$574,696	$9,571,627	NA	$73,927	NA
Total Governmental Activities	$371,194,161	$11,103,237	$35,741,970	NA	$(324,348,953)	NA
Component Units - Eagle Ridge Academy	$6,738,847	$243,107	$70,918	$5,333,167	NA	$(1,091,655)
Component Units - Bromley East Charter School	$	$	$	$	NA	$()
Component Units - Bromley East Charter School	$14,864,123	$1,393,714	$561,393	$488,521	NA	$(12,420,495)
Component Units - Belle Creek Charter School	$7,253,705	$439,998	$391,235	$4,799,231	NA	$(1,623,241)
Component Units - Foundations Academy Charter School	$10,073,129	NA	$317,230	NA	NA	$(9,755,899)
Component Units - Landmark Academy Charter School	$10,413,061	NA	$641,998	NA	NA	$(9,772,063)
Component Units -The STEAD School	$6,640,719	$668,955	$4,181,502	$101,825	NA	$(1,688,437)
Component Units - Capital Facility Fee Foundation	$49,851	$1,369,340	$40,457	NA	NA	$(1,359,946)
Total Component Units	$56,033,435	$1,115,114	$6,203,733	$10,722,744	NA	$(34,991,844)

General Revenues

Description	Net (Expense) Revenue and Changes in Net Position	Component Units
General Revenues - Local Property Taxes	$174,904,541	NA
General Revenues - Specific Ownership Taxes	$17,414,190	NA
General Revenues - Equalization	$148,507,058	NA
General Revenues - Equalization - Charter Schools	NA	$45,321,694
General Revenues - Mill Levy Override	NA	$5,310,472
General Revenues - Investment Earnings	$3,638,605	$924,575
General Revenues - Other	$7,791,874	$1,316,719
Total General Revenues	$352,256,268	$52,873,460
Change in Net Position	$27,907,315	$17,881,616
Net Position Beginning of Year	$18,956,273	$5,995,657
Net Position End of Year	$46,863,588	$23,877,273

See accompanying notes to the basic financial statements.

Balance Sheet Governmental Funds June 30, 2024

Description	General	Capital Projects	Government Designated Purpose Grants	Debt Service	Nutrition Services	Non-Major Governmental Funds	Total Governmental Funds
Assets - Cash and Investments	$103,975,222	NA	NA	$90,737,437	$6,322,343	$569,121	$201,604,123
Assets - Restricted Cash and Investments	NA	$133,493,291	NA	NA	NA	NA	$133,493,291
Assets - Deposit with Insurance Pool	$3,584,471	NA	NA	NA	NA	NA	$3,584,471
Assets - Inventory	NA	NA	NA	NA	$103,930	NA	$103,930
Assets - Receivables - Accounts	$58,976	$78,725	NA	NA	NA	$204,133	$341,834
Assets - Receivables - Property Taxes	$2,586,707	NA	NA	$1,975,455	NA	NA	$4,562,162
Assets - Receivables -	$	$	$	$	$	$	$
Assets - Receivables - Intergovernmental	NA	NA	$1,224,338	NA	$118,627	NA	$1,342,965
Assets - Receivables - Leases	NA	NA	NA	NA	NA	$662,226	$662,226
Assets - Receivables - Interfund Receivable	$6,954,385	NA	$4,399,401	$40,919	NA	$10,176,691	$21,571,396
Assets - Receivables - Interest on Investment	NA	NA	NA	$284,165	NA	NA	$284,165
Prepaid Items	$1,236,476	NA	NA	NA	NA	$46,176	$1,282,652
Grant Fund Advance	NA	NA	$101,701	NA	NA	NA	$101,701
Total Assets	$118,396,237	$133,572,016	$5,725,440	$93,037,976	$6,544,900	$11,658,347	$368,934,916
Liabilities, Deferred Inflows of Resources and Fund Balances - Liabilities - Accounts and Other Current Payables	$2,144,799	$5,790,596	$408,942	NA	$26,518	$62,438	$8,433,293
Liabilities, Deferred Inflows of Resources and Fund Balances - Liabilities - Accrued Salary and Benefits	$10,737,057	NA	$541,304	NA	$125,673	$588,992	$11,993,026
Liabilities, Deferred Inflows of Resources and Fund Balances - Liabilities - Unearned Revenue	NA	NA	$4,184,737	NA	$118,627	NA	$4,303,364
Liabilities, Deferred Inflows of Resources and Fund Balances - Liabilities - Interfund Payable	$15,636,085	$6,446,836	NA	NA	$245,709	NA	$22,328,630
Total Liabilities	$28,517,941	$12,237,432	$5,134,983	NA	$516,527	$651,430	$47,058,313
Deferred Inflows of Resources - Unavailable Property Tax Revenue	$1,197,095	NA	NA	$1,139,515	NA	NA	$2,336,610
Deferred Inflows of Resources - Unavailable Lease Receivable	NA	NA	NA	NA	NA	$631,828	$631,828
Total Deferred Inflows of Resources	$1,197,095	NA	NA	$1,139,515	NA	$631,828	$2,968,438
Fund Balances - Nonspendable Items	$1,236,476	NA	NA	NA	$103,930	$44,500	$1,384,906
Fund Balances - Restricted for Debt Service	NA	NA	NA	$91,898,461	NA	NA	$91,898,461
Fund Balances - Restricted for Capital Projects	NA	$121,334,584	NA	NA	NA	NA	$121,334,584
Fund Balances - Restricted for TABOR	$6,698,233	NA	NA	NA	NA	NA	$6,698,233
Fund Balances - Restricted for Cash-in-Lieu of Land	$3,007,377	NA	NA	NA	NA	NA	$3,007,377
Fund Balances - Restricted for Government Designated Purpose Grants	NA	NA	$590,457	NA	NA	NA	$590,457
Fund Balances - Restricted for Multi-Year Obligations	$920,000	NA	NA	NA	NA	NA	$920,000
Fund Balances - Restricted for Nutrition Services	NA	NA	NA	NA	$5,924,443	NA	$5,924,443
Fund Balances - Colorado Preschool	$1,177,845	NA	NA	NA	NA	NA	$1,177,845
Fund Balances - Restricted for Pupil Activity	$	$	$	$	$	$3,947,301	$3,947,301
Fund Balances - Committed for Risk Management Insurance	$3,584,471	$	$	$	$	$	$3,584,471
Fund Balances - Committed, Reported in Special Revenue Funds	$	$	$	$	$	$6,383,288	$6,383,288
Fund Balances - Committed for Board Contingencies	$6,980,328	$	$	$	$	$	$6,980,328
Fund Balances - Assigned for Capital Reserve Projects	$2,583,202	$	$	$	$	$	$2,583,202
Fund Balances - Assigned for Career and Technical Education	$150,000	$	$	$	$	$	$150,000
Fund Balances - Assigned for Subsequent Year Expenditures	$19,184,077	$	$	$	$	$	$19,184,077
Fund Balances - Unassigned, Reported in General Fund	$43,159,192	$	$	$	$	$	$43,159,192
Total Fund Balances	$88,681,201	$121,334,584	$590,457	$91,898,461	$6,028,373	$10,375,089	$318,908,166
Fund Balances - Total Liabilities, Deferred Inflows of Resources and Fund Balances	$118,396,237	$133,572,016	$5,725,440	$93,037,976	$6,544,900	$11,658,347	$368,934,916

See accompanying notes to the basic financial statements.

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2024

Description	Amount	Reconciliation
Total Governmental Fund Balances	NA	$318,908,166
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds but are reported on the Statement of Activities: Cost	$714,131,121	NA
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds but are reported on the Statement of Activities: Less Accumulated Depreciation and Amortization	$(153,297,845)	$560,833,276
Other long-term assets are not available to pay for current-period expenditures and therefore are deferred inflows in the funds: Unavailable Property Tax Revenue	NA	$2,336,610
An Internal Service Fund is used by management to charge the costs of dental insurance premiums to individual funds. The assets and liabilities of the Internal Service Fund are included in governmental activities on the Statement of Net Position.	NA	$700,934
Accrued interest on long-term debt is not reported at the fund financial reporting level, but is reported on the Statement of Net Position.	NA	$(1,994,967)
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: COPS Payable	$(3,155,529)	NA
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Bonds Payable	$(526,640,000)	NA
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Leases Payable	$(356,687)	NA
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: SBITA Payable	$(621,556)	NA
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Compensated Absences Payable	$(3,897,868)	NA
Liabilities not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Early Retirement Payable	$(216,056)	$(534,887,696)
Premiums, discounts and refunding differences are reported as expenditures in the funds when the debt is issued but capitalized on the Statement of Net Position: Premium	$(57,931,210)	NA
Premiums, discounts and refunding differences are reported as expenditures in the funds when the debt is issued but capitalized on the Statement of Net Position: Deferred Outflow: Loss on Refunding	$1,482,490	$(56,448,720)
Net pension liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Deferred Outflow	$102,425,230	NA
Net pension liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Deferred Inflow	$(14,558,331)	NA
Net pension liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Net Pension Liability	$(322,825,876)	$(234,958,978)
Net OPEB liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Deferred Outflow	$2,202,149	NA
Net OPEB liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Deferred Inflow	$(2,032,224)	NA
Net OPEB liability not due and payable in the current period are not reported in the funds but are reported on the Statement of Net Position: Net OPEB Liability	$(7,794,964)	$(7,625,039)
Net Position of Governmental Activities	NA	$46,863,588

See accompanying notes to the basic financial statements.

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds June 30, 2024

Description	General	Capital Projects	Government Designated Purpose Grants	Debt Service	Nutrition Services	Non-Major Governmental Funds	Total Governmental Funds
Revenues - Taxes	$127,235,369	NA	NA	$65,211,516	NA	Na	$192,446,885
Revenues - Intergovernmental Revenue - Vocational Education	$884,043	NA	NA	NA	NA	NA	$884,043
Revenues - Intergovernmental Revenue - Special Education	$7,897,390	NA	NA	NA	NA	NA	$7,897,390
Revenues - Intergovernmental Revenue - State On-Behalf	$580,721	NA	$30,601	NA	NA	NA	$539,322
Revenues - Intergovernmental Revenue - Transportation	NA	NA	NA	NA	NA	$1,931,407	$1,931,407
Revenues - Intergovernmental Revenue - Federal Grants	NA	NA	$10,332,068	NA	$6,084,635	NA	$6,416,703
Revenues - Intergovernmental Revenue - State Grants	NA	NA	$4,586,113	NA	$3,486,992	NA	$8,073,105
Revenues - Intergovernmental Revenue - Equalization	$148,507,058	NA	NA	NA	NA	NA	$148,507,058
Revenues - Pupil Activities	NA	NA	NA	NA	NA	$3,805,547	$3,805,547
Revenues - Charges for Services	$1,902,271	NA	NA	NA	$574,696	$4,821,023	$7,297,990
Revenues - Investment Earnings (loss)	$2,507,202	$(2,234,645)	NA	$3,102,478	$246,731	$16,839	$3,638,605
Miscellaneous	$7,673,132	NA	$109,364	NA	NA	$9,378	$7,791,874
Total Revenues	$297,115,186	$(2,234,645)	$15,058,146	$68,313,994	$10,393,054	$10,583,894	$399,229,629
Expenditures - Current - Instructional Services	$117,327,345	NA	$8,761,722	NA	NA	$755,505	$126,844,572
Expenditures - Current - Supporting Services - Pupil Services	$12,067,139	NA	$2,705,914	NA	NA	NA	$14,773,053
Expenditures - Current - Supporting Services - Instructional Staff	$6,807,318	NA	$2,376,208	NA	NA	$213,670	$9,397,198
Expenditures - Current - Supporting Services - General Administration	$2,486,126	NA	NA	NA	NA	NA	$2,486,126
Expenditures - Current - Supporting Services - School Administration	$13,703,347	NA	$99,193	NA	NA	NA	$13,802,540
Expenditures - Current - Supporting Services - Operations and Maintenance	$18,014,012	NA	NA	NA	NA	NA	$18,014,012
Expenditures - Current - Supporting Services - Pupil Transportation	$41,755	NA	$40,273	NA	NA	$9,891,881	$9,973,939
Expenditures - Current - Supporting Services - Business Supporting Services	$1,899,143	NA	$414,824	NA	NA	$42,425	$2,356,392
Expenditures - Current - Supporting Services - Central Supporting Services	$16,202,909	NA	$693,511	NA	NA	$38,703	$17,035,123
Expenditures - Current - Community Services	$314,214	NA	$25,398	NA	NA	$1,794,220	$2,133,832
Expenditures - Current - Nutrition Services	NA	NA	NA	NA	$9,431,341	NA	$9,431,341
Expenditures - Current - Pupil Activities	NA	NA	NA	NA	NA	$4,421,261	$4,421,261
Expenditures - Capital Outlay	$1,102,867	$55,864,040	$56,531	NA	$30,951	$44,000	$57,098,389
Expenditures - Intergovernmental - Charter Schools	$66,437,883	NA	NA	NA	NA	NA	$66,437,883
Expenditures - Debt Service - Principal Retirement	$688,958	NA	NA	$26,105,000	NA	NA	$26,793,958
Expenditures - Debt Service - Interest	$82,890	NA	NA	$24,591,523	NA	NA	$24,674,413
Expenditures - Debt Service - Interest	$82,890	NA	NA	$24,591,523	NA	NA	$24,674,413
Expenditures - Debt Service - Fiscal Charges	$2,000	NA	NA	$6,500	NA	NA	$8,500
Total Expenditures	$257,177,936	$55,864,040	$15,173,574	$50,703,023	$9,462,292	$17,301,667	$405,682,532
Excess (Deficiency) of Revenues Over (Under) expenditures	$39,937,250	$(58,098,685)	$(115,428)	$17,610,971	$930,762	$(6,717,773)	$(6,452,903)
Other Financing Sources (Uses) - Leases and SBITAs	$832,104	NA	$35,122	NA	NA	NA	$867,226
Other Financing Sources (Uses) - Transfers Out	$(8,328,158)	NA	NA	NA	NA	NA	$(8,328,158)
Other Financing Sources (Uses) - Transfers In	NA	NA	$21,067	NA	NA	$8,222,667	$8,243,734
Total Other Financing Sources (Uses)	$(7,496,054)	NA	$56,189	NA	NA	$8,222,667	$782,802
Net Change in Fund Balances	$32,441,196	$(58,098,685)	$(59,239)	$17,610,971	$930,762	$1,504,894	$(5,670,101)
Fund Balance Beginning of Year	$56,240,006	$179,433,269	$649,696	$74,287,490	$5,097,611	$8,870,195	$324,578,267
Fund Balances End of Year	$88,681,202	$121,334,584	$590,457	$91,898,461	$6,028,373	$10,375,089	$318,908,166

See accompanying notes to the basic financial statements.

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For The Year Ended June 30, 2024

Description	Amount	Reconciliation
Net Changes In Fund Balances - Total Governmental Funds	NA	$(5,670,101)
Depreciation and Amortization*	$(13,596,746)	NA
Net Book Value of Disposed Assets*	$(103,290)	NA
Capital Outlay*	$34,303,701	$20,603,665
Property tax and grant revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.	NA	$(128,154)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: Bond Principal	$26,105,000	NA
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: Lease Payable	$16,967	NA
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: SBITA Payable	$362,546	NA
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: COPs Principal	$311,923	$26,796,436
Govermental funds report the effect of premiums and discounts, and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities. Amortization: Premium	$4,240,932	NA
Govermental funds report the effect of premiums and discounts, and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities. Amortization: Bond Refunding	$(584,243)	$3,656,689
The issuance of long-term debt (e.g. bonds, leases, certificates of participation) provides current financial resources of governmental funds. Neither transaction has any effect on net position: Issuance of Lease	$(350,832)	NA
The issuance of long-term debt (e.g. bonds, leases, certificates of participation) provides current financial resources of governmental funds. Neither transaction has any effect on net position: Issuance of SBITA	$(516,394)	$(867,226)
Pension benefit reported in the Statement of Activities, does not require the use of current financial resources and therefore is not reported as an expenditure in governmental funds.	NA	$(17,697,119)
OPEB benefit reported in the Statement of Activities, does not require the use of current financial resources and therefore is not reported as an expenditure in governmental funds.	NA	$1,1331,648
Some expenses reported in the Statement of Activities, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The change in the current year's accruals are as follows: Compensated Absences - Liability 2023	$3,699,279	NA
Some expenses reported in the Statement of Activities, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The change in the current year's accruals are as follows: Compensated Absences - Liability 2024	$(3,897,868)	$(198,589)
Some expenses reported in the Statement of Activities, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The change in the current year's accruals are as follows: Accrued Interest - Liability 2023	$2,103,620	NA
Some expenses reported in the Statement of Activities, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. The change in the current year's accruals are as follows: Accrued Interest - Liability 2024	$(1,994,967)	$108,653
Internal Service Fund activity related to third parties is not reported in governmental funds but is reported as governmental activities in the Statement of Activities.	NA	$(28,594)
Change In Net Position Of Governmental Activities	NA	$27,907,315

Amounts reported for governmental activities in the Statement of Activities are different because governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation and loss on disposal of capital assets in the current period.

See accompanying notes to the basic financial statements.

Statement of Net Position Proprietary Funds June 30, 2024

Description	Governmental Activities - Internal Service Funds
Assets - Receivables - Accounts	$77
Assets - Receivables - Interfund Receivable	$773,509
Total Assets	$773,586
Liabilities - Current Liabilities - Accounts Payable	$72,652
Total Liabilities	$72,652
Total Net Position	$700,934

See accompanying notes to the basic financial statements.

Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For The Year Ended June 30, 2024

Description	Governmental Activities - Internal Service Funds
Operating Revenues - Interfund Services Provided: Dental Insurance Premiums	$1,017,090
Operating Revenues - Interfund Services Provided: Print Shop	$46,886
Total Operating Revenues	$1,063,976
Operating Expenses - Salaries and Benefits	$99,824
Operating Expenses - Purchased Services	$9,374
Operating Expenses - Materials and Supplies	$17,889
Operating Expenses - Indirect Costs	$4,219
Operating Expenses - Dental Claims	$1,045,684
Total Operating Expenses	$1,176,990
Income (Loss) from Operations	$(113,014)
Other Financing Sources - Transfers In (Out)	$84,420
Change in Net Position	$(28,594)
Net Position Beginning of Year	$729,528
Net Position End of Year	$700,934

See accompanying notes to the basic financial statements.

Statement of Cash Flows Proprietary Funds For The Year Ended June 30, 2024

Description	Governmental Activities - Internal Service Funds
Cash Flows (Used for) Operating Activities - Cash Received from Interfund Services Provided	$1,071,162
Cash Flows (Used for) Operating Activities - Cash Payments for Goods and Services	$(131,306)
Cash Flows (Used for) Operating Activities - Cash Payments for Insurance Premiums and Expenses	$(1,024,276)
Net Cash From (Used for) Operating Activities	$(84,420)
Cash Flows From (Used for) Noncapital Financing Activities - Transfers In (Out)	$84,420
Net Increase (Decrease) in Cash and Cash Equivalents	NA
Cash and Cash Equivalents Beginning of Year	NA
Cash and Cash Equivalents End of Year	NA
Reconciliation of Operating Income (Loss) to Net Cash From (Used for) Operating Activities	$(113,014)
Adjustments: (Increase) Decrease in Assets: Interfund Receivable	$7,186
Adjustments: (Increase) Decrease in Liabilities: Accounts Payable	$21,408
Net Cash From (Used for) Operating Activities	$(84,420)

See accompanying notes to the basic financial statements.

Statement of Fiduciary Net Position Private Purpose Trust Fund June 30, 2024

Description	Private Purpose Trust Fund
Assets - Cash and Investments	$47,327
Total Assets	$47,327
Liabilities - Due to Other Groups	$16,275
Total Liabilities	$16,275
Net Position - Restricted for Scholarships	$31,052
Total Net Position	$31,052

See accompanying notes to the basic financial statements.

Statement of Changes in Fiduciary Net Position Private Purpose Trust Fund For the Year Ended June 30, 2024

Description	Private Purpose Trust Fund
Additions - Investment Earnings	$2,523
Change in Net Position	$2,523
Net Position Beginning of Year	$28,529
Net Position end of Year	$31,052

See accompanying notes to the basic financial statements.

Counties of Adams, Weld and Broomfield School District 27J, Colorado (the School District) is a school district located northeast of Denver, Colorado. The School District provides Preschool through 12th Grade Public Education.

Note 1 - Summary of Significant Accounting Policies

The financial statements of the School District have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) in the United States of America as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for government accounting and financial reporting. The most significant of the School District’s accounting policies are described below.

1-A. Reporting Entity

The reporting entity is comprised of the primary government, component units and other organizations that are included to ensure that the financial statements are not misleading. The primary government consists of all funds, departments, boards and agencies that are not legally separate from the School District. For the School District, this reporting entity includes the legal entity, School District 27J, Colorado and seven discretely presented component units.

Component units are legally separate organizations for which the School District is financially accountable. The School District is financially accountable for an organization if the School District appoints a voting majority of the organization's governing board and (1) the School District is able to significantly influence the programs or services performed or provided by the organizations; or (2) the School District is legally entitled to or can otherwise access the organization's resources; the School District is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the School District is obligated for the debt of the organization. Component units also may include organizations that are fiscally dependent on the School District in that the School District approves the budget, levies their taxes or issues their debt. Finally, the School District may include separate legal entities that do not meet the above criterion; however, the School District would consider the financial statements to be misleading if omitted.

The component unit column included on the government-wide financial statements identifies the financial data of the School District’s aggregate discretely presented component units. They are reported separately to emphasize that they are legally separate from the School District.

Significant transactions between the School District and its component unit Charter Schools consist of monthly payments to each Charter School for their share of mill levy override and state equalization money and charges from the School District to each Charter School for contracted purchased services. Brief descriptions of the discretely presented component units follow: The Bromley East Charter School was established by contract with the School District during fiscal year 2000. The School is a legally separate entity. The contract between the Bromley East Charter School and the School District was executed on April 26, 2000, for the purpose of establishing and clarifying the relationship between the Bromley East Charter School and the School District. The Bromley East Charter School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding the Bromley East Charter School would result in misleading financial reporting. Financial activity of the Bromley East Charter School is included within the School District’s financial statements.

The Belle Creek Charter School was established by contract with the School District during fiscal year 2002. The School is a legally separate entity. The contract between the Belle Creek Charter School and the School District was executed on June 25, 2002, for the purpose of establishing and clarifying the relationship between the Belle Creek Charter School and the School District. The Belle Creek Charter School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding the Belle Creek Charter School would result in misleading financial reporting. Financial activity of the Belle Creek Charter School is included within the School District’s financial statements.

The Landmark Academy Charter School was established by contract with the School District during fiscal year 2008. The School is a legally separate entity. The contract between the Landmark Academy Charter School and the School District was executed on January 23, 2007 for the purpose of establishing and clarifying the relationship between the Landmark Academy Charter School and the School District, but the school did not open until fiscal year 2008. Landmark Academy Charter School has entered into a management agreement with National Heritage Academies, Inc. (NHA) which requires NHA to provide administration, strategic planning and all labor, materials, equipment and supervision necessary for the provision of educational services to students. As part of the consideration received under the agreement, NHA also provides the facility in which the Landmark Academy Charter School operates. Under the terms of the agreement, NHA receives as remuneration for its services an amount equal to the total revenue received by the Landmark Academy Charter School from all revenue sources. The Landmark Academy Charter School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding the Landmark Academy Charter School would result in misleading financial reporting. Financial activity of the Landmark Academy Charter School is included within the School District’s financial statements.

The Foundations Academy Charter School was established by contract with the School District during fiscal year 2011. The Foundations Academy Charter School is a legally separate entity. The contract between the Foundations Academy Charter School and the School District was executed on October 19, 2008, for the purpose of establishing and clarifying the relationship between the Foundations Academy Charter School and the School District, but the school did not open until fiscal year 2011. Foundations Academy Charter School has entered into a management agreement with National Heritage Academies, Inc. (NHA) which requires NHA to provide administration, strategic planning and all labor, materials, equipment and supervision necessary for the provision of educational services to students. As part of the consideration received under the agreement, NHA also provides the facility in which the Foundations Academy Charter School operates. Under the terms of the agreement, NHA receives as remuneration for its services an amount equal to the total revenue received by the Foundations Academy Charter School from all revenue sources. The Foundations Academy Charter School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding the Foundations Academy Charter School would result in misleading financial reporting. Financial activity of the Foundations Academy Charter School is included within the School District’s financial statements.

The Eagle Ridge Academy Charter School was established by contract with the School District and is a legally separate entity. A contract between the Eagle Ridge Academy Charter School and the School District was executed in July 2010 for the purpose of establishing and clarifying the relationship between this Eagle Ridge Academy Charter School and the School District. The Eagle Ridge Academy Charter School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding Eagle Ridge Academy Charter School would result in misleading financial reporting. Financial activity of the Eagle Ridge Academy Charter School is included within the School District’s financial statements.

The STEAD School was established by contract with the School District and is a legally separate entity. A contract between The STEAD School and the School District was executed in August 2020 for the purpose of establishing and clarifying the relationship between this The STEAD School and the School District, but the school did not open until fiscal year 2022. The STEAD School is deemed to be a component unit of the School District because the organization is dependent upon the School District for the majority of its funding and the School District approves the charter and excluding The STEAD School would result in misleading financial reporting. Financial activity of The STEAD School is included within the School District’s financial statements.

The School District 27J Capital Facility Fee Foundation (Foundation) was established during fiscal year 2001 in response to rapid growth with the onset of the development of the Denver International Airport. The School District wanted to be proactive about the growth rather than reactive and began discussion in the late 1990’s with the primary municipalities within the School District. This included Brighton, Commerce City and Thornton as well as a group of developers with projects within the School District. At the time, the primarily rural School District would not have had the financial capacity to raise enough capital through the sale of voter-approved bonds to meet the needs for new schools in a timely manner.

A small group of builders and developers and School District representatives formed a working group to find solutions to address the shortfall needs. A program of voluntary financial contributions was implemented. The Foundation is a 501(c)(3) organization whose purpose is to promote and assist in the development, financing, and acquisition of educational facilities and capital improvements in the School District. The Foundation consists of a nine-member board of directors and includes three representatives of contributing builders or developers, three School District representatives, and one city council representative of each city. Voluntary contributions are accepted by the Foundation and kept in foundation-managed accounts. The Board of Education makes requests for the release of Foundation funds for school construction purposes as needed. The Foundation Board determines if the request meets the requirements for disbursement of the funds.

The Capital Facility Fee Foundation is deemed to be a component unit of the School District because the Foundation may only distribute funds to the School District and only at the request of the School District. Because of this restricted use of Foundation Funds, the Foundation is a discretely presented component unit. Complete financial statements for each of the individual component units may be obtained at each entity’s administrative offices.

• Eagle Ridge Academy
  3551 Southern Street
  Brighton, CO 80601
• Belle Creek Charter School
  9290 E 107th Ave
  Henderson, CO 80640
• Landmark Academy Charter School
  c/o National Heritage Academies, Inc.
  3850 Broadmoor SE, Suite 201
  Grand Rapids, MI 49512
• Bromley East Charter School
  c/o Bart A. Skidmore, CPA
  356 Longspur Drive
  Brighton, CO 80601
• School District 27J
  Capital Facility Fee Foundation
  18551 East 160th Avenue
  Brighton, CO 80601
• Foundations Academy
  c/o National Heritage Academies, Inc.
  3850 Broadmoor SE, Suite 201
  Grand Rapids, MI 49512
• The STEAD School
  18251 Homestead Trail
  Commerce City, CO 80022

Related Organization - The 27J Education Foundation provides opportunities for individuals and/or groups beyond what the School District can offer. Their mission is to preserve, support and improve the educational opportunities within the community by developing a community partnership among schools, businesses and individuals. Through this partnership, this Foundation encourages a wide variety of educational experiences through grants awarded to individuals and organizations. The Foundation is governed by a twelve-member board consisting of community members and education members. The School District Board does not appoint members of the 27J Education Foundation, nor is this Foundation fiscally dependent on the School District and therefore, this Foundation is not considered a component unit and is not included in the School District’s financial statements.

1-B. Basis of Presentation

The School District’s basic financial statements consist of government-wide statements, including a Statement of Net Position and a Statement of Activities and fund financial statements, which provide a more detailed level of financial information.

Government-wide Financial Statements - The government-wide financial statements include the Statement of Net Position and the Statement of Activities. These statements report financial information for the School District as a whole. The primary government and the component units are presented separately within these financial statements with the focus on the primary government. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by grants and governmental general revenues, from business-type activities, generally financed in whole or in part with fees charged to external customers. However, the District has no business-type activities. Fiduciary funds and fiduciary-type component units are excluded from the government-wide financial statements because the School District holds these assets in a purely custodial capacity and cannot use these resources for School District programs.

The Statement of Net Position presents the financial position of the governmental activities of the School District and the School District’s discretely presented component units at year-end. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District activities and for each identifiable activity of the business-type activities of the School District’s component units. Direct expenses are those that are specifically associated with a function and therefore clearly identifiable to that particular function. The School District does not allocate indirect expenses to functions in the Statement of Activities.

The Statement of Activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include: (1) charges for services which report fees and other charges to users of the School District's services; (2) operating grants and contributions which finance annual operating activities including restricted investment earnings; and (3) capital grants and contributions which fund the acquisition, construction, or rehabilitation of capital assets. When identifying which function program revenue pertains to, the determining factor for charges for services is which function generates the revenue. For grants and contributions, the determining factor is for which function the revenues are restricted. Other revenue sources not properly included with program revenues are reported as general revenues of the School District. The comparison of direct expenses with program revenues identifies the extent to which each governmental function and each identifiable business activity is selffinancing or draws from the general revenues of the School District.

Fund Financial Statements - During the year, the School District segregates transactions related to certain School District functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the School District at this more detailed level. Fund financial statements are provided for governmental, proprietary and fiduciary funds. Major individual governmental funds are reported in separate columns.

Fund Accounting - The School District uses funds to maintain its financial records during the year. A fund is a fiscal and accounting entity with a self-balancing set of accounts. The School District uses three categories of funds: governmental, proprietary and fiduciary.

Governmental Funds - School District funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Fund liabilities are assigned to the fund from which they will be liquidated. The School District reports the difference between governmental fund assets, liabilities, and deferred inflows of resources as fund balance. The following are the School District's major governmental funds:

• General Fund - The general fund accounts for all financial resources except those required to be accounted for in another fund.
• Capital Projects Fund - This fund accounts for bond proceeds and other revenues used for the construction and acquisition of major capital facilities other than those related to the nutrition services fund.
• Governmental Designated-Purpose Grants Fund - This fund accounts for grants received for designated programs funded by federal, state or local governments. It is a special revenue fund.
• Debt Service Fund - This fund accounts for the accumulated resources (normally property taxes) used to retire principal and interest on general long-term debt.
• Nutrition Services Fund – This fund accounts for financial resources related to food service operations. The School District receives USDA school breakfast/lunch money in this fund. It is a special revenue fund.

The School District also has four non-major governmental funds that account for financial resources specific to each funds purpose.

Additionally, the School District reports the following fund types:

• Proprietary Funds - Proprietary fund reporting focuses on the determination of operating income, changes in net position, financial position and cash flows. The School District’s proprietary funds are classified as internal service funds.
• Internal Service Funds - The internal service funds account for the School District’s self-insured dental plan and the School District’s print shop.
• Private Purpose Trust Funds – Funds that are fiduciary in nature and present changes in fiduciary net position. Private purpose trust funds are accounted for using the full accrual basis of accounting. These funds are used to account for assets the School District holds for others in a fiduciary capacity. The School District’s fiduciary fund provides scholarships to students.

1-C. Measurement Focus

Government-wide Financial Statements - The government-wide financial statements are prepared using the economic resources measurement focus. All assets, deferred outflows/inflows of resources and liabilities associated with the operation of the School District are included on the Statement of Net Position. The Statement of Activities reports revenues and expenses.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the School District’s governmental and component units. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Fund Financial Statements - The governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances reports the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include reconciliation with brief explanations to better identify the relationship between the government-wide statements and the governmental fund statements.

Like the government-wide statements, all proprietary fund types are accounted for on a flow of economic resources measurement focus on both financial reporting levels. All assets and all liabilities associated with the operation of these funds are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Fund Net Position presents increases (i.e., revenues) and decreases (i.e., expenses) in net total position. The Statement of Cash Flows provides information about how the School District finances and meets the cash flow needs of its proprietary activities. The School District’s fiduciary funds are accounted for on an economic resources measurement focus.

Basis of Accounting

Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. At the fund reporting level, governmental funds use the modified accrual basis of accounting. Proprietary funds use the accrual basis of accounting at both reporting levels. The fiduciary funds use the accrual basis of accounting. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred inflows and outflows of resources, and in the presentation of expenses versus expenditures.

Revenues – Exchange Transactions - Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded when the exchange takes place and in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the School District, the phrase “available for exchange transactions” means expected to be received within 60 days of year-end.

Revenues – Non-exchange Transactions - Non-exchange transactions in which the School District receives value without directly giving equal value in return, include grants, taxes and donations. Revenue from property taxes and specific ownership taxes is recognized in the fiscal year for which the taxes are levied (Note 2-C). Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include: timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted; matching requirements, in which the School District must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the School District on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions also must be available (i.e., collected by the School District within 60 days except for specific ownership taxes which use a 30-day available period, and grant revenues which use a 180-day available period) before it can be recognized.

Under the modified accrual basis, the following revenue sources are considered to be susceptible to accrual: property taxes, specific ownership taxes, interest and federal and state grants.

Unearned Revenue - Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied and when certain grants are received before eligibility requirements are met.

On governmental fund financial statements (i.e., on the modified accrual basis), receivables that will not be collected within the available period have been reported as deferred inflows of resources (i.e., they are measurable but not available) rather than as revenue.

Grants and entitlements received before the eligibility requirements are met (e.g., cash advances) also are recorded as unearned revenue at both reporting levels.

Expenses/Expenditures - On the accrual basis of accounting, expenses are recognized at the time they are incurred. On the modified accrual basis, expenditures generally are recognized in the accounting period in which the related fund liability is incurred and due, if measurable.

1-E. Assets, Deferred Outflows, Liabilities, Deferred Inflows of Resources and Fund Balance/Net Position

1-E-1. Cash, Cash Equivalents, and Investments

The School District utilizes the pooled cash concept whereby cash balances of each of the School District’s funds are pooled and invested by the School District in short-term certificates of deposit, repurchase agreements, money market deposit accounts, government pools, and U.S. Treasury obligations.

For the purposes of the Statement of Cash Flows, cash and cash equivalents include amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the School District to be cash equivalents.

Generally, the School District invests in governmental securities, local government investment pools, and collateralized certificates of deposits in Colorado banks and repurchase agreements. Investments are either measured at net asset value, which approximates fair value, or at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application.

1-E-2. Receivables

All trade and property tax receivables are reported net of an allowance for uncollectibles, where applicable.

1-E-3. Interfund Balances

On the fund financial statements, receivables and payables resulting from short-term interfund loans are classified as "interfund receivables/ interfund payables". Any residual balances outstanding between the governmental and business-type activities are reported in the government-wide financial statements as “internal balances.”

1-E-4. Consumable Inventories

On the government-wide financial statements, inventories are presented at the lower of cost or market on a first-in, first-out basis and are expensed when used (i.e., the consumption method).

On the fund financial statements all inventories are stated at cost. For all fund level reporting, cost is determined on a first-in, first-out basis. Donated surplus commodities received are valued based upon the cost furnished by the Federal Government.

1-E-5. Prepaid Items

Payments made to vendors for services that will benefit periods beyond current fiscal year are recorded as prepaid items using the consumption method by recording an asset for the prepaid amount and reflecting the expenditure/expense in the year in which services are consumed. At the fund reporting level, an equal amount of fund balance is non-spendable in the governmental fund types as this amount is not available for general appropriation.

1-E-6. Capital Assets

Capital assets from governmental activities are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in governmental funds. The School District reports these assets in the governmental activities column of the government-wide Statement of Net Position but does not report these assets in the governmental fund financial statements.

All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their acquisition value as of the date received. The School District maintains a capitalization threshold of five thousand dollars. Improvements to capital assets are capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are expensed. All reported capital assets are depreciated except for land, water rights and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. The adjustment for removal of salvage value is shown in the Capital Assets Note 2-D. Depreciation is computed using the straight-line method over the following useful lives:

1-E-6 Capital Assets

Description	Governmental Activities Estimated Lives	Component Units Estimated Lives
Buildings	20-50 Years	5-50 Years
Equipment	3-25 Years	5-15 Years

At the inception of right-to-use asset leases at the governmental fund reporting level, expenditures and an “other financing source” of an equal amount are reported at the net present value of future minimum lease payments.

At the inception of right-to-use asset leases at the governmental fund reporting level, expenditures and an “other financing source” of an equal amount are reported at the net present value of future minimum lease payments.

1-E-7. Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Net Position and fund level balance sheet will sometimes report a separate section for deferred outflows and inflows of resources. Deferred outflows of resources represent a consumption of net assets and deferred inflows represent an acquisition of net assets that applies to future periods and so will not be recognized as an outflow or inflow of resources until then. Deferred charge on refunding is reported in the government-wide Statement of Net Position as a deferred outflow of resources. A deferred charge on refunding results from the difference in the carrying value of refunded debt and reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the Statement of Net Position and fund level balance sheet will sometimes report a separate section for deferred inflows of resources. This section represents acquisition of net assets that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. Receivables for long-term leases where the school district is the lessor are reported in the government-wide Statement of Net Position and governmental fund financial statements as a deferred inflow of resources. On governmental fund financial statements (i.e., on the modified accrual basis), other receivables that will not be collected within the available period have been reported as deferred inflows of resources (i.e., they are measurable but not available) rather than as revenue.

Deferred outflows of resources and deferred inflows of resources as related to pensions and other post-employment benefits can result from the net difference between expected and actual experience, projected and actual earnings on plan investments, changes in the District’s proportionate of liability, changes of assumptions, as well as contributions made by the District to PERA after PERA’s measurement date. Generally, deferred inflows are not aggregated with deferred outflows.

1-E-8. Compensated Absences

Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the employer will compensate the employees for the benefits through paid time off or some other means. Temporary leave (sick leave, personal and bereavement) benefits are accrued as a liability using the termination payment method. An accrual for earned temporary leave is made to the extent that it is probable that the benefits will result in termination payments. The liability is based on the School District’s past experience of making termination payments.

In fiscal year 2014, the District offered Early Separation Plans and Long Term Service Benefits to its employees. Only those employees who have completed fifteen or more years of service in the District as of July 1, 2009 are eligible after completing twenty years of service. These plans ended on June 30, 2014. Classified employees may receive 90% of their current year’s salary at either July 31st or January 31st of the year following their retirement. Eligible certified employees who voluntarily resign or retire shall receive a payout that equals the difference between the certified employee’s actual salary for the 2008- 2009 school years and the $45,129 average salary of full-time teachers hired by the District during that school year. Administrators may receive the average paid out to certified employees during the year of their retirement. There were no early separation plan/long term service payments in fiscal year 2024. As of June 30, 2024, there were four certified employees who were eligible for future payments at a total remaining cost of $216,056.

All compensated absence liabilities include salary-related payments, where applicable.

The total compensated absence liability is reported on the government-wide financial statements. Proprietary funds report the total compensated liability in each individual fund at the fund reporting level. Governmental funds report the compensated absence liability at the fund reporting level only “when due”.

1-E-9. Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements. In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts and deferred amounts on refunding bonds, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of applicable bond premiums and discounts.

In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of these funds. However, compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are “due for payment” during the current year. Bonds are recognized as a liability in the governmental fund financial statements when due.

1-E-10. Leases and Subscription Based Information Technology Arrangements (SBITA)

For arrangements where the District is a lessee or enters into a SBITA, a liability and a right to use (RTU) intangible asset are recognized at the commencement of the lease or arrangement term. RTU assets represent the District’s right to use an underlying asset for the contracted term and liabilities represent the District’s obligation to make payments arising from the lease or arrangement. RTU assets and liabilities are recognized at the lease or arrangement commencement date based on the estimated present value of the payments over the contracted term. Subsequently, the liability is reduced by the principal portion of payments made. The RTU asset is initially measured as the initial amount of the liability, adjusted for payments made at or before the commencement date, plus certain initial direct costs and is amortized on a straight-line basis over its useful life for leases and subscription term for SBITAs.

Key estimates and judgements related to leases and SBITAs include how the School determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease or arrangement term, and (3) payments.

• The District uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the District generally uses its estimated incremental borrowing rate as the discount rate.
• The term includes the noncancellable period of the lease or arrangement. Payments included in the measurement of the liability are composed of fixed payments and purchase option price that the District is reasonably certain to exercise.

The District monitors changes in circumstances that would require a remeasurement and will remeasure the RTU asset and liability if certain changes occur that are expected to significantly affect the amount of the liability. RTU assets are reported with other capital assets and liabilities are reported with long-term debt on the statement of net position. For government-wide and fund statements, for arrangements in which the District is the lessor, a lease receivable and a deferred inflow of resources is recognized at the commencement of the lease term. The deferred inflows of resources should be measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relates to future periods.

1-E-11. Bond Premiums, Discounts and Issuance Costs

On the government-wide Statement of Net Position and the proprietary fund type Statement of Net Position, bond premiums and discounts are netted against bonds payable and bond issuance costs are reported as an expense in the year they are charged. On the government-wide and proprietary fund type Statement of Activities, gains/losses on refunding are recognized as deferred inflows/outflows and amortized over the life of the bonds using the effective interest method.

In the fund financial statements, governmental funds recognize bond premiums, discounts, and bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Payments of bond proceeds made to an escrow agent for refunding bonds are reported as other financing uses.

1-E-12. Fund Balance/Net Position

Fund equity at the governmental fund financial reporting level is classified as “fund balance”. Fund equity for all other reporting is classified as “net position”.

Fund Balance – Generally, fund balance represents the difference between the fund assets and fund liabilities. The SchoolDistrict restricts those portions of fund balance which are legally segregated for a specific future use or which do not represent available, spendable resources and therefore are not available for appropriation or expenditure. Unassigned fund balance indicates that portion of fund balance that is available for appropriation in future periods.

Assignments are management’s intent to set aside these resources for specific services. The School District follows GASB 54, Fund Balance Reporting and Government Fund Type Definition, and records fund balances in the following classifications depicting the relative strength of the spending constraints placed on the purposed for which resources can be used:

• Non-spendable fund balance – amounts that are not in a spendable form (such as inventory or prepaid items) or are required to be maintained intact (such as the corpus of an endowment fund).
• Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions, or by enabling legislation.
• Committed fund balance – amounts that can be used only for specific purposes determined by a formal action of the Board of Education, the highest level of decision-making authority for the District. Commitments may be established, modified or rescinded only through resolutions approved by the Board of Education.
• Assigned fund balance – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the Board of Education’s adopted policy, only the Superintendent or his/her designee may assign amounts for specific purposes.
• Unassigned fund balance – amounts that are available for any purpose; a positive unassigned fund balance is reported only in the general fund.

The School District adopted fund balance policy (Superintendent Policy DA-R(1)) in fiscal year 2011. The governing body’s process for assigning fund balance is determined by the Chief Financial Officer.

The District’s order of fund balance spending policy is to apply expenditures against restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance. The District reserves the right to selectively spend unassigned fund balance.

Net Position - Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows. The net investment in capital assets consists of capital assets, net of accumulated depreciation and related debt. Net position is reported as restricted when there are limitations imposed on its use either through enabling legislation or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. All other net position is reported as unrestricted.

The School District applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position are available.

1-E-13. Operating Revenues and Expenses

Operating revenues are those revenues that are generated directly from the primary activity of the proprietary funds. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating expenses are necessary costs incurred to provide meals, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenue and expense.

1-E-14. Contributions of Capital

Contributions of capital in proprietary fund financial statements arise from outside contributions of capital assets or from grants or outside contributions of resources restricted to capital acquisition and construction.

1-E-15. Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after the non-operating revenues/expenses section in proprietary funds. The effect of interfund activity has been eliminated from the government-wide financial statements. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements.

Transfers between governmental and business-type activities on the government-wide Statement of Activities are reported as general revenues. Transfers between funds reported in the governmental activities column are eliminated.

Since the internal service fund revenues are employee payments for dental insurance, they are not eliminated (i.e., they do not relate to other funds, rather they relate to third parties).

1-E-16. Estimates

The preparation of the financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

1-E-17. Budgets

A budget was adopted for all government funds, proprietary funds, internal service funds and fiduciary funds on a basis consistent with Generally Accepted Accounting Principles. A proposed budget is submitted to the Board of Directors for the fiscal year commencing the following July 1. The budget is adopted by the board prior to June 30.

Expenditures may not legally exceed appropriations at the fund level. Revisions must be approved by the Board. The budget includes proposed expenditures and the means of financing them.

Note 2 – Detailed Notes on All Funds

2-A. Cash and Investments

At June 30, 2024, the School District had the following cash and investments:

Description	District	Private Purpose Trust	Component Units
Cash on Hand	$450	NA	NA
Deposits	$52,978,516	NA	$10,260,468
Investments	$282,118,447	$47,327	$25,553,859
Total	$335,097,413	$47,327	$35,814,327
Governmental Activities	$201,604,122	NA	$18,071,656
Restricted Cash and Investments	$133,493,291	NA	$17,742,671
Subtotal	$335,097,417	NA	$35,814,327
Fiduciary Activities	NA	$47,327
Total	$335,097,413	$47,327	$35,814,327

Restricted Cash and Investments - As of June 30, 2024, the School District has restricted cash and investments of $133,493,291 recorded in the School District’s capital projects fund for that purpose.

Investments by Various Measurement Tools

Description	Date or Amount	Fair Value Measurements Using Level 1	Fair Value Measurements Using Level 2	Fair Value Measurements Using Level 3
Investments by Fair Value Level - Money Market Mutual Fund	$83,277,653	$83,277,659	NA	NA
Investments by Fair Value Level - U.S. Treasury Obligations	$61,087,826	NA	$61,087,826	NA
Investments by Fair Value Level - Total Investments by Fair Value Level	$144,365,479	$83,277,653	$61,087,826	NA
Investments at Net Asset Value (NAV) - Colo Trust Investment Pool	$53,819,316	NA	NA	NA
Investments at Net Asset Value (NAV) - CISP Investment Pool	$82,501,791	NA	NA	NA
Investments at Net Asset Value (NAV) - Total Investments held at Net Asset Value (NAV)	$136,321,107	NA	NA	NA
Investments at Amortized Cost - CSAFE Investment Pool	$1,479,189	NA	NA	NA
Investments at Amortized Cost - Total Investments held at Amortized Cost	$1,479,189	NA	NA	NA
Investments at Amortized Cost - Total Investments	$282,165,775	NA	NA	NA

As of June 30, 2024, the School District had the following investments. Deposits and investments are internally pooled to maximize investment safety, liquidity and interest yield:

Type of Security	Value	Concentration	S&P Rating	Maturity - 12 Months or Less	Maturity - 1-3 Years	Maturity - 3-5 Years
ColoTrust (external investment pool)	$53,819,316	19.07%	AAAm	$53,819,316	NA	NA
CSAFE (external investment pool)	$1,479,189	0.52%	AAAm	$1,479,189	NA	NA
CSIP (external investment pool)	$82,501,791	29.24%	AAAm	$82,501,791	NA	NA
U.S. Treasury Obligations	$61,087,826	21.65%	AA+	$61,087,826	NA	NA
Money Market Mutual Fund	$83,277,653	29.51%	AAAm	$83,277,653	NA	NA
Total	$282,165,775	100.00%	NA	$282,165,775	NA	NA

At June 30, 2024, the School District’s discretely presented component units’ investments are as follows:

Description	Amount
Eagle Ridge Academy - CSAFE	$1,351,379
Bromley East Charter School - Colotrust	$4,298,677
Bromley East Charter School - CSAFE	$2,432,903
Bromley East Charter School - Fixed Income	$1,277,506
Bromley East Charter School - Total	$8,009,086
Belle Creek Charter School - CSAFE	$3,376,757
Belle Creek Charter School - Colotrust	$59,444
Belle Creek Charter School - Total	$3,436,201
The STEAD School - CSAFE	$6,754,820
Capital Facility Fee Foundation - U.S. Treasuries	$206,243
Capital Facility Fee Foundation - Certificate of Deposits	$5,796,130
Capital Facility Fee Foundation - Total	$6,002,373
Total Component Units	$25,553,859

Local Government Investment Pool - These are investment trusts established for local government entities in Colorado to pool surplus funds and are registered with the State Securities Commissioner. These pools operate similarly to a money market fund and each share is equal in value to $1. Investments of the pool consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by pools in connection with the direct investment and withdrawal functions of the pools. Substantially all securities owned by the pool are held by the Federal Reserve Bank in the account maintained for the custodial banks. The custodian’s internal records identify the investments owned by the School District. Due to their high liquidity, these funds are classified as investments for reporting purposes. The Trusts are rated AAAm by Standard and Poor’s.

Interest Rate Risk – The School District and the component units do not have formal investment policies that limit investment maturities as a means of managing its exposure to fair value loss resulting from increasing interest rates. The Colorado Revised Statute 24-75-601 limits investment maturities to five years or less without governing board approval. Based on the current rate environment, the School District and the component units assume that investments will be held to maturity. As of June 30, 2024, no coupon and discount securities had investment maturities greater than five years. The weighted average maturity of the local government entity investment pools investments shall not exceed 60 days for ColoTrust and CSAFE at June 30, 2024.

Credit Risk – State statute limit investments in U.S. Government Agency securities to the highest rating issued by Nationally Recognized Statistical Rating Organizations (NRSROs).

Concentration of Credit Risk – State statutes do not limit the amount the School District may invest in one issuer. The School District has adopted a policy which is more restrictive and limits investments to: not more than 25% of the School District’s portfolio invested in the securities in any “one” government agency with the exception of United States Treasury securities; not more than 25% of the School District’s portfolio invested in deposit accounts; money market mutual funds shall be diversified so that no fund shall hold more than 50% of the School District’s portfolio; combined fund investments not to exceed 75% of the total portfolio and not exceeding 25% of the School District’s total portfolio in repurchase agreements. All of the Charter Schools and the Capital Facility Fee Foundation have adopted an investment policy that does not vary significantly from Colorado State Statutes.

Belle Creek Charter had $59,444 and $3,376,757 respectively, invested in ColoTrust and CSAFE at June 30, 2024. The investment pools were rated AAAm by Standard & Poor’s. Belle Creek Charter held restricted cash and cash equivalents of $592,821 for the Education Center Fund.

Bromley East Charter had $4,298,677 and $2,432,903 respectively, invested in ColoTrust and CSAFE respectively, at June 30, 2024. The investment pools were rated AAAm by Standard & Poor’s. Bromley East Charter held restricted cash and cash equivalents of $3,041,278 for the Building Corp Fund.

Eagle Ridge Academy had $1,351,379 invested in CSAFE at June 30, 2024. The pool is rated AAAm by Standard and Poor’s. Investments in the amount of $1,351,379 are restricted in the special revenue fund for debt service requirements, as a result of the Series 2016 Bond issuance.

The STEAD School had $6,754,820 invested in CSAFE at June 30, 2024. The pool is rated AAAm by Standard and Poor’s. The STEAD School held restricted cash and cash equivalents of $6,754,820 for the Building Corp Fund.

Foundation Academy Charter School and Landmark Academy Charter School did not have investments in marketable securities or ColoTrust and CSAFE investment pools at June 30, 2024.

2-B. Receivables

Receivables at June 30, 2024, consisted of taxes, interest, accounts (billings for user charges) and School District receivables arising from grants, fiduciary activity and lease payments.

Receivables and payables are recorded on the governmental financial statements to the extent that the amounts are determined to be material and substantiated not only by supporting documentation, but also by a reasonable, systematic method of determining their existence, completeness, valuation, and in the case of receivables, collectability.

Leased Asset Receivable

The School District, serving in a lessor capacity, is required to recognize a lease receivable for certain lease transactions. These Lease assets receivables are offset by a deferred inflows of resources as well as accrued interest earned. For the period, principal lease revenue of $35,817 was collected along with interest revenue of $2,403.

Breakdown of Leased Asset Receivable

Description	Balance 7/1/2023	Additions	Deductions	Balance 6/30/2023	Current Portion
Leased Asset Receivable	$698,043	NA	$35,817	$662,226	$38,384
Total Leased Asset Receivable	$698,043	NA	$35,817	$662,226	$38,384

AT&T – In February of 2019, the District entered into a lease agreement with New Cingular Wireless PCS, LLC to lease approximately six hundred (600) square feet of land, including the air space above such ground space, owned by the District and located at S. 8th avenue and E. Southern Street in the City of Brighton, Adams County, Colorado. New Cingular Wireless will use a portion of the Property in connection with its federally licensed communications business. The initial term of the lease will be five (5) years, commencing on February 2019. The lease will automatically renew for four (4) additional five (5) year terms unless the tenant notifies the landlord in writing of its intention not to renew the lease agreement. The lease requires monthly lease payments to the District of $1,217 with rent payments increasing fifteen percent (15.0%) on an annual basis. The outstanding lease receivable on June 30, 2024, is $385,052.

Verizon - In November of 2019, the District entered into a lease agreement with Verizon Wireless, LLC to lease approximately two thousand nine hundred (2,900) square feet of land, including the air space above such ground space, owned by the District and located at Brighton Gardens in the City of Brighton, Adams County, Colorado. Verizon Wireless will use a portion of the Property in connection with its federally licensed communications business. The initial term of the lease will be five (5) years, commencing on November 2019. The lease will automatically renew for two (2) additional five (5) year terms unless the tenant notifies the landlord in writing of its intention not to renew the lease agreement. The lease requires monthly lease payments to the District of $1,808 with rent payments increasing fifteen percent (15.0%) on an annual basis. The outstanding lease receivable on June 30, 2024, is $277,174.

2-C. Property Taxes

The Board of Education levies property taxes. The levy is based on assessed valuations determined by the County Assessors’ offices generally as of January 1st of each year. The levy is set by December 15th by certification to the County Commissioners to put the tax lien on the individual properties as of December of each year. The County Treasurers’ offices collect the determined taxes during the ensuing calendar year. The taxes are payable by April 30th or, if in equal installments, at the taxpayer’s election on February 28th and June 15th. Delinquent taxpayers are notified in August and tax sales of the liens on delinquent properties are held in November. The County Treasurers’ offices remit the taxes collected to the School District on the 10th of each month and on March 25th, May 25 and June 25th.

Component unit Long-Term Debt

Belle Creek Charter School:

Following is a summary of Belle Creek Charter School’s long-term debt transactions for the year ended June 30, 2024:

Description	Beginning Balance	Debt Issued and Additions	Reductions	Ending Balance	Due Within One Year
Building Loan	$6,175,000	NA	$(100,000)	$6,075,000	$105,000
Discount	$(35,681)	NA	$(1,236)	$(34,445)	NA
Total	$6,139,319	NA	$(101,236)	$6,040,555	$105,000

2022 Building Loan – On May 11, 2022, the Colorado Educational and Cultural Facilities Authority (CECFA) issued $5,925,000 of Charter School Revenue Refunding Bonds, Series 2022A, and $325,000 Taxable Charter School Revenue Bonds, Series 2022B, to current refund CECFA’s outstanding Series 2007 Bonds. Proceeds of bond issuances have been loaned to the Education Center the School’s building. The School is obligated under a lease agreement to make monthly lease payments to the Education Center for using the facilities. The Education Center is required to make equal payments to the trustee for payment of the bonds. Interest accrues at a rate of 5.00% to 5.25% and is due semi-annually. Principal payments are due annually on March 15 through 2052.

Annual debt service requirements to maturity for loan payable is as follows:

Fiscal year Ending 30-Jun	Principal	Interest	Total
2025	$105,000	$314,406	$419,406
2026	$110,000	$308,894	$418,894
2027	$115,000	$303,281	$418,281
2028	$120,000	$297,531	$417,531
2029	$125,000	$291,531	$416,531
2030-2034	$735,000	$1,355,963	$2,090,963
2035-2039	$935,000	$1,149,206	$2,084,206
2040-2044	$1,200,000	$883,931	$2,093,931
2045-2049	$1,555,000	$535,500	$2,090,500
2050-2052	$1,075,000	$111,563	$1,186,563
Total	$6,075,000	$5,551,806	$11,626,805

Eagle Ridge Academy:

Following is a summary of Eagle Ridge Academy’s long-term debt transactions for the year ended June 30, 2024:

Description	Balance June 30, 2023	Additions	Deletions	Balance June 30, 2024	Due In One Year
Bonds Payable - Series 2022	$10,525,000	NA	$225,000	10,300,000	$235,000
Premium - Series 2022	$178,550	NA	$7,142	171,408	$7,142
Total	$10,703,550	NA	$232,142	10,471,408	$242,142

Charter School Revenue Bond Series 2022 – On July 20, 2022, the Colorado Educational Cultural Facilities Authority (CECFA) issued $10,525,000 Charter School Revenue Bonds dated July 20, 2022. The Building Corporation has entered into a mortgage and lease agreement with the Eagle Ridge Academy to use the bond proceeds for: 1) current refunding of Eagle Ridge Authority’s Charter School Revenue Bonds Series 2016 originally issued in the aggregate principal amount of $9,720,000 and outstanding in the aggregate principal amount of $8,095,000; 2) constructing improvements to existing educational facilities; and 3) funding a bond reserve fund and paying costs associated with the issuance of the Series 2022 bonds. The bonds accrue interest at 5.0%. Interest payments are due semi-annually on May 1 and November 1. Principal payments are due annually on November 1, through 2048.

Annual debt service requirements to maturity for the long-term debt transactions are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$235,000	$466,563	$701,563
2026	$245,000	$454,563	$699,563
2027	$260,000	$441,938	$701,938
2028	$275,000	$428,563	$703,563
2029	$285,000	$414,563	$699,563
2030-2034	$1,665,000	$1,837,315	$3,502,315
2035-2039	$2,130,000	$1,366,952	$3,496,952
2040-2044	$2,655,000	$832,894	$3,487,894
2045-2048	$2,550,000	$222,064	$2,772,064
Total	$10,300,000	$6,465,415	$16,765,415

Bromley East Charter School:

Following is a summary of Bromley East Charter School’s long-term debt transactions for the year ended June 30, 2024:

Description	Balance June 30, 2023	Additions	Deletions	Balance June 30, 2024	Due In One Year
Building Loan	$15,329,610	NA	$(631,420)	$14,698,190	$652,890

2015 Building Loan - In September, 2015, the Colorado Educational and Cultural Facilities Authority (CECFA) issued $19,155,000 Charter School Refunding and Improvement Revenue Bonds, Series 2015. Proceeds of the Series 2015 Bonds were loaned to the CECFA to provide funding to construct the School’s educational facilities. The School is obligated under a lease agreement to make monthly lease payments to the CECFA for using the facilities. The Building Corporation is required to make equal payments to the trustee, for payment of the bonds. Interest accrues a rate of 3.4% and is due semi-annually. Principal payments are due annually on September 1, with a balloon payment of $14,045,300 due on September 1, 2025.

Annual debt service requirements to maturity for the long-term debt transactions are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$652,890	$483,090	$1,135,980
2026	$14,045,300	$159,180	$14,204,480
Total	$14,698,190	$642,270	$15,340,460

The STEAD School:

Following is a summary of The STEAD School’s long-term debt transactions for the year ended June 30, 2024:

Description	Balance June 30, 2023	Additions	Deletions	Balance June 30, 2024	Due In One Year
Loans Payable	$14,795,444	$22,680,000	$(14,795,444)	$22,680,000	NA

Vectra Construction Loan - On January 15, 2021, the Building Corp entered into a construction loan agreement with Zions Bancorporation, N.A. dba Vectra Bank Colorado in the amount of $14,503,148. The construction loan consists collectively of the Phase 1 Loan and Phase 2 Loan. Proceeds were loaned to the Building Corp to provide funding to construct the School’s educational facilities. Principal and Interest payments are due monthly. The loan was paid in full with the CECFA Loan in December 2023.

Clayton Loan - On January 15, 2021 the Building Corp entered into a loan agreement with Clayton Properties Group II, Inc. in the amount of $2,243,757. Interest accrues a rate of 3.50% and is due monthly. The loan was paid in full with the CECFA Loan in December 2023.

CCFS Construction Loan - On January 15, 2021, the Building Corp entered into a construction loan agreement with CCFS SPE 2, LLC in the amount of $2,800,000. The construction loan consists collectively of the Phase 1 Loan, and Phase 2 Loan. Loans were loaned to the Building Corp to provide funding to construct the School’s educational facilities. Interest accrues at a rate of 3.50%. Principal and Interest payments are due monthly. The loan was paid in full with the CECFA Loan in December 2023.

CECFA Loan - On December 21, 2023, the Building Corp entered into a loan agreement with the Colorado Educational and Cultural Facilities Authority in the amount of $22,680,000. Proceeds of the loan were used to pay off the construction loans previously acquired. The remaining proceeds were deposited into the project fund and to fund construction of the School’s educational facilities. Interest accrues at a rate of 7.00% to 8.13% and is payable January 1 and July 1. Principal is payable July 1, with final maturity in 2034.

Annual debt service requirements to maturity for the loan payable is as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	NA	$1,637,077	$1,637,077
2026	NA	$1,592,831	$1,592,831
2027	$180,000	$1,585,519	$1,765,519
2028	$190,000	$1,570,487	$1,760,487
2029	$210,000	$1,554,884	$1,764,884
2030-2034	$1,295,000	$728,175	$21,533,175
Total	$22,680,000	$16,189,598	$38,869,598

Long-term Leases

Equipment Leases

Quadient Leasing – In December of 2020, the District entered into a 5 year agreement for the right to use a postage machine. The incremental borrowing rate at the commencement of the agreement was 0.43%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Quadient Leasing breakdown

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$4,129	$17	$4,146
2026	$1,726	$2	$1,728
Total	$5,855	$19	$5,874

CBS Copier Lease 900-0355955-001 - In April of 2024, the District entered into a 3 year agreement for the right to use copy machines. The incremental borrowing rate at the commencement of the agreement was 2.87%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$3,240	NA	$3,240
2026	$3,062	$178	$3,240
2027	$3,150	$90	$3,240
Total	$9,482	$268	$9,720

CBS Copier Lease 900-0358092-000 - In June of 2024, the District entered into a 3 year agreement for the right to use copy machines. The incremental borrowing rate at the commencement of the agreement was 2.87%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$2,969	NA	$2,969
2026	$2,805	$163	$2,968
2027	$2,886	$83	$2,969
Total	$8,660	$246	$8,906

CBS Copier Lease 900-0355955-000 - In March of 2024, the District entered into a 3 year agreement for the right to use copy machines. The incremental borrowing rate at the commencement of the agreement was 2.87%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$114,060	NA	$114,060
2026	$107,783	$6,278	$114,061
2027	$110,877	$3,183	$114,060
Total	$332,720	$9,461	$342,181

Subscription Based Information Technology Arrangements (SBITA)

GreatHorn – In November of 2022, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 2.736%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$23,848	$652	$24,500
Total	$23,848	$652	$24,500

iboss – In June of 2022, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 2.154%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$150,781	$3,248	$154,029
Total	$150,781	$3,248	$154,029

Imagine Learning – In June of 2022, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 2.154%. The lease obligations were fully paid in fiscal year 2023, but the software remains in use until fiscal year 2025.

SofTech - In July of 2023, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 1.87%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$78,525	$1,469	$79,997
Total	$78,525	$1,469	$79,997

Class Technologies – In October of 2023, the District entered into a 4 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 3.70%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$6,987	$663	$7,650
2026	$7,246	$404	$7,650
2027	$3,689	$136	$3,825
Total	$17,922	$1,203	$19,125

Discovery Education – In June of 2024, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 3.11%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$75,463	$4,770	$80,233
2026	$77,812	$2,421	$80,233
Total	$153,275	$7,191	$160,466

LRP Publications – In February of 2024, the District entered into a 4 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 2.63%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$11,405	$763	$12,168
2026	$11,705	$463	$12,168
2027	$5,928	$156	$6,084
Total	$29,038	$1,382	$30,420

N2Y Publications – In January of 2024, the District entered into a 3 year agreement for the right to use software. The incremental borrowing rate at the commencement of the agreement was 2.51%. The future minimum lease obligations and net present value of these minimum lease payments are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$21,389	$1,115	$22,504
2026	$23,050	$579	$23,629
Total	$44,439	$,694	$46,133

Component Unit Long-Term Leases

Belle Creek Charter School: The School, as lessee, has entered into lease agreements for equipment with lease terms of five years. The total costs of these right-to-use lease assets are recorded as $54,995, less accumulated amortization of $26,167. The School has determined that as of June 30, 2024, there is no loss associated with an impairment of the right-to-use lease asset.

The future lease payments under lease agreements as of June 30, 2024 are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$10,550	$2,098	$12,648
2026	$11,153	$1,495	$12,648
2027	$7,249	$857	$8,106
2028	$3,157	$407	$3,564
2029	$1,925	$154	$2,079
Total	$34,034	$5,011	$39,045

Bromley East Charter School: The School, as a lessee, had entered into a lease agreement for equipment with a lease term of 3 years. The total costs of these right-to-use lease assets are recorded as $74,679, less accumulated amortization of $37,340. The School has determined that as of June 30, 2024, there is no loss associated with an impairment of the right-touse lease asset.

The future lease payments under lease agreements as of June 30, 2024 are as follows:

Fiscal year Ending 30-June	Principal	Interest	Total
2025	$26,117	$1,525	$27,642
2026	$4,388	$219	$4,607
Total	$30,505	$1,744	$32,249

Changes in Long-term Liabilities - Changes in the School District’s long-term obligations consisted of the following for the year ended June 30, 2024:

Governmental Activities	Beginning Balance	Debt Issued And Additions	Reductions	Ending Balance	Amounts Due in One Year
General Obligation Bonds	$552,745,000	NA	$26,105,000	$526,640,000	$13,205,000
Certificates of Participation	$3,467,452	NA	$311,923	$3,155,529	$319,191
Leases Payable	$22,822	$350,832	$16,967	$356,687	$124,398
SBITA Payable	$467,708	$516,394	$362,546	$621,556	$368,401
Bond Premium	$62,172,142	NA	$4,240,932	$57,931,210	NA
Total	$618,875	$867,226	$31,037,368	$588,704,982	$14,016,990
Early Retirement Option	$216,056	NA	NA	$216,056	$216,056
Compensated Absences Payable	$3,699,279	$2,304,079	$2,105,490	$3,897,868	$2,338,721
Total	$3,915,335	$2,304,079	$2,105,490	$4,113,924	$2,554,777

Changes in the Component Units' Long-Term Obligations consisted of the following for the year ended June 30, 2024:

Governmental Activities	Beginning Balance	Debt Issued And Additions	Reductions	Ending Balance	Amounts Due in One Year
General Obligation Bonds	$31,495,444	$22,680,000	$15,120,444	$39,055,000	$340,000
Building Loan	$15,329,610	NA	$631,420	$14,698,190	$652,890
Premium/Discount	$142,869	NA	$5,906	$136,963	$7,142
Leases Payable	$83,853	$14,440	$33,754	$64,539	$36,667
Total	$47,051,776	$22,694,440	$15,791,524	$53,954,692	$1,036,699

Other – Payment of principal and interest for general obligation bonds is made from the bond redemption debt service fund. The legal limit and debt margin as of June 30, 2024 are $1,641,379,725 and $1,066,634,725, respectively. Compensated absences, pension and OPEB obligations are generally liquidated in the General Fund.

2-H. Short-Term Debt

During the year ended June 30, 2024, the District did not borrow funds from the State Treasurer’s interest-free loan program.

2-I. Defined Benefit Pension Plan

Summary of Significant Accounting Policies

Pensions - The School District participates in the School Division Trust Fund (SCHDTF), a cost-sharing multiple-employer defined benefit pension plan administered by the Public Employees’ Retirement Association of Colorado (PERA). The net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, pension expense, information about the fiduciary net position (FNP) and additions to/deductions from the FNP of the SCHDTF have been determined using the economic resources measurement focus and the accrual basis of accounting. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

General Information about the Pension Plan

Plan description - Eligible employees of the School District are provided with pensions through the SCHDTF—a cost-sharing multiple-employer defined benefit pension plan administered by PERA. Plan benefits are specified in Title 24, Article 51 of the Colorado Revised Statutes (C.R.S.), administrative rules set forth at 8 C.C.R. 1502-1, and applicable provisions of the federal Internal Revenue Code. Colorado State law provisions may be amended from time to time by the Colorado General Assembly. PERA issues a publicly available annual comprehensive financial report (ACFR) that can be obtained at www.copera.org/investments/pera-financial-reports.

Benefits provided as of December 31, 2023 - PERA provides retirement, disability, and survivor benefits. Retirement benefits are determined by the amount of service credit earned and/or purchased, highest average salary, the benefit structure(s) under which the member retires, the benefit option selected at retirement, and age at retirement. Retirement eligibility is specified in tables set forth at C.R.S. § 24-51-602, 604, 1713, and 1714.

The lifetime retirement benefit for all eligible retiring employees under the PERA benefit structure is the greater of the:

• Highest average salary multiplied by 2.5% and then multiplied by years of service credit.
• The value of the retiring employee’s member contribution account plus a 100% match on eligible amounts as of the retirement date. This amount is then annuitized into a monthly benefit based on life expectancy and other actuarial factors.

The lifetime retirement benefit for all eligible retiring employees under the Denver Public Schools (DPS) benefit structure is the greater of the:

• Highest average salary multiplied by 2.5% and then multiplied by years of service credit.
• $15 times the first 10 years of service credit plus $20 times service credit over 10 years plus a monthly amount equal to the annuitized member contribution account balance based on life expectancy and other actuarial factors.

In all cases the service retirement benefit is limited to 100% of highest average salary and cannot exceed the maximum benefit allowed by federal Internal Revenue Code.

Members may elect to withdraw their member contribution accounts upon termination of employment with all PERA employers; waiving rights to any lifetime retirement benefits earned. If eligible, the member may receive a match of either 50% or 100% on eligible amounts depending on when contributions were remitted to PERA, the date employment was terminated, whether 5 years of service credit has been obtained and the benefit structure under which contributions were made.

Upon meeting certain criteria, benefit recipients who elect to receive a lifetime retirement benefit generally receive postretirement cost-of-living adjustments, referred to as annual increases in the C.R.S. Subject to the automatic adjustment provision (AAP) under C.R.S. § 24-51-413, eligible benefit recipients under the PERA benefit structure who began membership before January 1, 2007, and all eligible benefit recipients of the DPS benefit structure will receive the maximum annual increase (AI) or AI cap of 1.00% unless adjusted by the AAP. Eligible benefit recipients under the PERA benefit structure who began membership on or after January 1, 2007, will receive the lesser of an annual increase of the 1.00% AI cap or the average increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the prior calendar year, not to exceed a determined increase that would exhaust 10% of PERA’s Annual Increase Reserve (AIR) for the SCHDTF. The AAP may raise or lower the aforementioned AI cap by up to 0.25% based on the parameters specified in C.R.S. § 24- 51-413.

Disability benefits are available for eligible employees once they reach five years of earned service credit and are determined to meet the definition of disability. The disability benefit amount is based on the lifetime retirement benefit formula(s) shown above considering a minimum 20 years of service credit, if deemed disabled.

Survivor benefits are determined by several factors, which include the amount of earned service credit, highest average salary of the deceased, the benefit structure(s) under which service credit was obtained, and the qualified survivor(s) who will receive the benefits.

Contributions provisions as of June 30, 2024: Eligible employees of the School District and the State are required to contribute to the SCHDTF at a rate set by Colorado statute. The contribution requirements for the SCHDTF are established under C.R.S. § 24-51-401, et seq. and § 24-51-413. Eligible employees are required to contribute 11.00% of their PERA-includable salary during the period of July 1, 2023 through June 30, 2024.

Employer contribution requirements are summarized in the table below:

Description	July 1, 2023 Through June 30, 2024
Employer contribution rate 11.40%	11.4
Amount of employer contribution apportioned to the Health Care Trust Fund as specified in C.R.S. § 24-51-208(1)(f)	(1.02%)
Amount apportioned to the SCHDTF 10.38%	10.38%
Amortization Equalization Disbursement (AED) as specified in C.R.S. § 24-51-411	4.5%
Supplemental Amortization Equalization Disbursement (SAED) as specified in C.R.S. § 24-51-411	5.50%
Total employer contribution rate to the SCHDTF	20.38%

**Contribution rates for the SCHDTF are expressed as a percentage of salary as defined in C.R.S. § 24-51-101(42).

Employer contributions are recognized by the SCHDTF in the period in which the compensation becomes payable to the member and the School District is statutorily committed to pay the contributions to the SCHDTF. Employer contributions recognized by the SCHDTF from the School District were $27,124,765 for the year ended June 30, 2024.

For purposes of GASB 68 paragraph 15, a circumstance exists in which a nonemployer contributing entity is legally responsible for making contributions to the SCHDTF and is considered to meet the definition of a special funding situation. As specified in C.R.S. § 24-51-414, the State is required to contribute a $225 million direct distribution each year to PERA starting on July 1, 2018. A portion of the direct distribution payment is allocated to the SCHDTF based on the proportionate amount of annual payroll of the SCHDTF to the total annual payroll of the SCHDTF, State Division Trust Fund, Judicial Division Trust Fund, and Denver Public Schools Division Trust Fund. The direct distribution from the State was suspended in 2020. To compensate PERA for the suspension, C.R.S. §§ 24-51-414(6-8) required restorative payment by providing an accelerated payment in 2022. In 2022, the State Treasurer issued payment for the direct distribution of $225 million plus an additional amount of $380 million. Due to the advanced payment made in 2022, the State reduced the distribution in 2023 to $35 million. Additionally, the newly added C.R.S. § 24-51-414(9) providing compensatory payment of $14.561 million for 2023 only.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

The total pension liability (TPL) used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. Standard update procedures were used to roll-forward the TPL to December 31, 2023. The School District’s proportion of the net pension liability was based on the School District’s contributions to the SCHDTF for the calendar year 2023 relative to the total contributions of participating employers and the State as a nonemployer contributing entity.

At June 30, 2024, the School District reported a liability of $322,825,876 for its proportionate share of the net pension liability that reflected a reduction for support from the State as a nonemployer contributing entity. The amount recognized by the School District as its proportionate share for the net pension liability, the related support from the State as a nonemployer contributing entity, and the total portion of the net pension liability that was associated with the School District were as follows:

Description	Amount
The School District’s proportionate share of the net pension liability	$322,825,876
The State’s proportionate share of the net pension liability as a nonemployer contributing entity associated with the School District	$7,078,628
Total	$329,904,504

At December 31, 2023, the School District’s proportion was 1.8255886748% which was an increase of 0.4699700613% from its proportion measured as of December 31, 2022.

For the year ended June 30, 2024, the School District recognized pension expense of $44,821,884 and revenue of $539,322 for support from the State as a non-employer contributing entity. At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Description	Deferrred Outflows of Resources	Deferrred Inflows of Resources
Difference between expected and actual experience	$15,308,113	NA
Net difference between projected and actual earnings on pension plan investments	$23,141,659	NA
Changes in proportion and differences between contributions recognized and proportionate share of contributions	$50,208,225	$14,558,331
Contributions subsequent to the measurement date	$13,767,233	NA
Total	$102,425,230	$14,558,331

At December 31, 2023, the School District’s proportion was 1.8255886748% which was an increase of 0.4699700613% from its proportion measured as of December 31, 2022.

The $13,767,233 reported as deferred outflows of resources related to pensions, resulting from contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (benefit) as follows:

Year ended June 30	Amount
2025	$17,150,017
2026	$34,677,213
2027	$28,724,972
2028	$(6,452,536)
Total	$74,099,666

Actuarial Assumptions - The TPL in the December 31, 2022 actuarial valuation was determined using the following actuarial cost method, actuarial assumptions and other inputs:

Actuarial cost method	Entry Age
Price inflation	2.3%
Real wage growth	0.70%
Wage Inflation	3.00%
Salary increases, including wage inflation	3.40%-11.00%
Long-term investment rate of return, net of pension plan investment expenses, including price inflation	7.25%
Discount rate	7.25%
Post-retirement benefit increases: PERA benefit structure hired prior to 1/1/07; and DPS Benefit Structure (compounded annually)	1.00%
PERA benefit structure hired after 12/31/06*	Financed by the AIR

*Post-retirement benefit increases are provided by the AIR, accounted separately within each Division Trust Fund, and subject to moneys being available; therefore, liabilities related to increases for members of these benefit tiers can never exceed available assets.

The mortality tables described below are generational mortality tables developed on a benefit-weighted basis.

Pre-retirement mortality assumptions were based upon the PubT-2010 Employee Table with generational projection using scale MP-2019.

Post-retirement non-disabled mortality assumptions were based upon the PubT-2010 Healthy Retiree Table, adjusted as follows:

• Males: 112% of the rates prior to age 80 and 94% of the rates for ages 80 and older, with generational projection using scale MP-2019.
• Females: 83% of the rates prior to age 80 and 106% of the rates for ages 80 and older, with generational projection using scale MP-2019.

Disabled mortality assumptions were based upon the PubNS-2010 Disabled Retiree Table using 99% of the rates for all ages with generational projection using scale MP-2019.

The actuarial assumptions used in the December 31, 2022, valuation were based on the results of the 2020 experience analysis, dated October 28, 2020 for the period January 1, 2016, through December 31, 2019. Revised economic and demographic assumptions were adopted by the PERA Board on November 20, 2020.

The long-term expected return on plan assets is reviewed as part of regularly scheduled experience studies prepared at least every five years and asset/liability studies performed every three to five years for PERA. The most recent analyses were outlined in the Experience Study report dated October 28, 2020.

Several factors are considered in evaluating the long-term rate of return assumption, including long-term historical data, estimates inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected return, net of investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentages and then adding expected inflation.

The PERA Board first adopted the 7.25% long-term expected rate of return as of November 18, 2016. Following an asset/liability study, the Board reaffirmed the assumed rate of return at the Board's November 15, 2019, meeting, to be effective January 1, 2020. As of the most recent reaffirmation of the long-term rate of return, the target asset allocation, and best estimates of geometric real rates of return for each major asset class are summarized in the table as follows:

Asset Class	Target Allocation	30 Year Expected Geometric Real Rate of Return
Global Equity	54%	5.6%
Fixed Income	23.00%	1.30%
Private Equity	8.50%	7.10%
Real Estate	8.5%	4.40%
Alternatives	6.00%	4.70%
Total	100%	NA

Note: In setting the long-term expected rate of return, projections employed to model future returns provide a range of expected long-term returns that, including expected inflation, ultimately support a long-term expected nominal rate of return assumption of 7.25%.

Discount rate - The discount rate used to measure the TPL was 7.25%. The projection of cash flows used to determine the discount rate applied the actuarial cost method and assumptions shown above. In addition, the following methods and assumptions were used in the projection of cash flows:

• Total covered payroll for the initial projection year consists of the covered payroll of the active membership present on the valuation date and the covered payroll of future plan members assumed to be hired during the year. In subsequent projection years, total covered payroll was assumed to increase annually at a rate of 3.00%.
• Employee contributions were assumed to be made at the member contribution rates in effect for each year, including the scheduled increases in SB 18-200 and required adjustments resulting from the 2018 and 2020 AAP assessments. Employee contributions for future plan members were used to reduce the estimated amount of total service costs for future plan members.
• Employer contributions were assumed to be made at rates equal to the fixed statutory rates specified in law for each year, including the scheduled increase in SB 18-200 and required adjustments resulting from the 2018 and 2020 AAP assessments. Employer contributions also include current and estimated future AED and SAED, until the actuarial value funding ratio reaches 103%, at which point the AED and SAED will each drop 0.50% every year until they are zero. Additionally, estimated employer contributions reflect reductions for the funding of the AIR and retiree health care benefits. For future plan members, employer contributions were further reduced by the estimated amount of total service costs for future plan members not financed by their member contributions.
• As specified in law, the State, as a nonemployer contributing entity, will provide an annual direct distribution of $225 million (actual dollars), commencing July 1, 2018, that is proportioned between the State, School, Judicial, and DPS Division Trust Funds based upon the covered payroll of each Division. The annual direct distribution ceases when all Division Trust Funds are fully funded.
• Employer contributions and the amount of total service costs for future plan members were based upon a process to estimate future actuarially determined contributions assuming an analogous future plan member growth rate.
• The AIR balance was excluded from the initial FNP, as, per statute, AIR amounts cannot be used to pay benefits until transferred to either the retirement benefits reserve or the survivor benefits reserve, as appropriate. AIR transfers to the FNP and the subsequent AIR benefit payments were estimated and included in the projections.
• Benefit payments and contributions were assumed to be made at the middle of the year.
• Beginning with the December 31, 2023 measurement date and thereafter, the FNP as of the current measurement date is used as a starting point for the GASB 67 projection test.

Based on the above assumptions and methods, the SCHDTF’s FNP was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return of 7.25% on pension plan investments was applied to all periods of projected benefit payments to determine the TPL. The discount rate determination does not use the municipal bond index rate, and therefore, the discount rate is 7.25%. There was no change in the discount rate from the prior measurement date.

Sensitivity of the School District’s proportionate share of the net pension liability to changes in the discount rate - The following presents the proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.25%) or one percentage point higher (8.25%) than the current rate:

Description	1% Decrease (6.25%)	Current Discount Rate (7.25%)	1% Increase (8.25%)
Proportionate share of the net pension liability	$431,672,801	$322,825,876	$232,061,950

Pension plan fiduciary net position - Detailed information about the SCHDTF’s FNP is available in PERA’s ACFR which can be obtained at www.copera.org/investments/pera-financial-reports.

Significant Changes in Plan Provisions Affecting Trends in Actuarial Information – 2023 Changes in Plan Provisions Since 2022

• Senate Bill (SB) 23-056, enacted and effective June 2, 2023, intended to recompense PERA for the remaining portion of the $225 million direct distribution originally scheduled for receipt July 1, 2020, suspended due to the enactment of House Bill (HB) 20-1379, but not fully repaid through the provisions within HB 22-1029. Pursuant to SB 23-056, the State Treasurer issued a warrant consisting of the balance of the PERA Payment Cash Fund, created in §24-51-416, plus $10 million from the General Fund, totaling $14.561 million.
• As of the December 31, 2023, measurement date, the total pension liability (TPL) recognizes the change in the default method applied for granting service accruals for certain members, from a "12-pay" method to a "non-12- pay" method. The default service accrual method for positions with an employment pattern of at least eight months but fewer than 12 months (including, but not limited to positions in the School and DPS Divisions) receive a higher ratio of service credit for each month worked, up to a maximum of 12 months of service credit per year.

Significant Changes in Assumptions or Other Inputs Affecting Trends in Actuarial Information – 2023 Changes in Assumptions or Other Inputs Since 2022

• There were no changes made to the actuarial methods or assumptions.

Component Unit Defined Benefit Pension Plan

Bromley East Charter School

Contributions: Employer contributions recognized by the SCHDTF from the School were $1,433,686 for the year ended June 30, 2024.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2024, the School reported a liability of $17,028,505 for its proportionate share of the net pension liability that reflected an increase for support from the State as a nonemployer contributing entity. The School’s proportion of the net pension liability was measured as of December 31, 2023, and the total pension liability (TPL) used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. Standard update procedures were used to roll forward the TPL to December 31, 2023. The School’s proportion of the net pension liability was based on the School’s contributions to the SCHDTF for the calendar year 2023 relative to the total contributions of participating employers and the State as a nonemployer contributing entity.

At December 31, 2023, the School’s proportion of the net pension liability was 0.0962964363%, which was an increase of 0.0220541655% from its proportion measured as of December 31, 2022.

Eagle Ridge Academy

Contributions: Employer contributions recognized by the SCHDTF from the School were $499,325 for the year ended June 30, 2024.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2024, the School reported a liability of $5,886,852 for its proportionate share of the net pension liability that reflected a reduction for support from the State as a nonemployer contributing entity. The School’s proportion of the net pension liability was measured as of December 31, 2023, and the total pension liability (TPL) used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. Standard update procedures were used to roll forward the TPL to December 31, 2022. The School’s proportion of the net pension liability was based on the School’s contributions to the SCHDTF for the calendar year 2023 relative to the total contributions of participating employers and the State as a nonemployer contributing entity.

At December 31, 2023, the School’s proportion of the net pension liability was 0.03329%, which was an increase of 0.0081% from its proportion measured as of December 31, 2022.

Stewardship, Compliance and Accountability

Budgetary Information – Budgets are required by state law for all funds. By June 1, the Superintendent submits to the Board of Education a proposed budget for all funds for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them. Public hearings are conducted by the Board of Education to obtain taxpayer comments. The budget must be adopted by formal resolution prior to June 30, although it may be subsequently revised by January 31.

Expenditures may not legally exceed appropriations at the fund level. Authorization to transfer budgeted amounts between departments, within any fund and the reallocation of budget line items within any department or within any fund rests with the Superintendent of Schools. Revisions that alter the total expenditures of any fund must be approved by the Board of Education. Appropriations are based on total resources expected to be available in each budget year, including reserves as established by the Board of Education. Variances between budget and actual are the result from the non-expenditure of reserves, nonoccurrence of anticipated events, scheduling of capital projects and normal operating variances.

Budgets for all fund types are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts reported in the accompanying financial statements are as originally adopted and as amended by the Superintendent of Schools and/or the Board of Education throughout the year.

In fiscal year 2024, the Transportation fund exceeded its budget.

The Combining and Individual Fund Financial Statements represent the second level of financial reporting for the District. These financial statements present more detailed information for the individual funds in a format that segregates information by fund type. For those fund types with a single fund, individual fund financial statements are presented.

Non-Major Governmental Funds

Special Revenue Funds

Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Pupil Activity Fund - This fund accounts for financial transactions of all school activity funds in the District. Revenues are those raised by clubs and/or school building support groups. Expenditures are for school activity functions.

Transportation Fund -This fund accounts for fees collected for the payment of excess transportation costs without voter approval. Transportation categorical program revenues received from the state are also recorded in this fund.

Child Care/Extended Day Kindergarten – This fund is considered an “Other Special Revenue” fund. The Child Care and Extended Day Kindergarten programs are tuition based for generating revenue.

Other Special Programs Fund - This fund accounts for all revenues and costs of providing day care to people who live within the District. This fund also accounts for the Detention Center school. The Brighton School District provides this program for the Adams County Detention Center. All other school districts that make up the catchment area for the center are billed an amount in proportion to their number of students. Also included are the district print shop, and the summer school programs.

Other Major Governmental Funds

Capital Projects Fund - This fund accounts for bond proceeds and other revenues used for the construction and acquisition of major capital facilities.

Debt Service Fund - This fund accounts for the accumulated resources (normally property taxes) used to retire principal and interest on general long-term debt.