Comprehensive Annual Financial Report - Arlington Independent ...

Carolina Chavez
Shackelford JH
Blake Winters
Duff ES
Moriah James
Martin HS
Josephine King
Miller ES
Comprehensive Annual Financial Report
For the Fiscal Year Ended August 31, 2010
Arlington, Texas
Joseph

ARLINGTON INDEPENDENT SCHOOL DISTRICT
ARLINGTON, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended August 31, 2010
Issued By
Finance Department -
Cindy Powell, CPA
Associate Superintendent

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Comprehensive Annual Financial Report
Year Ended August 31, 2010
Page Exhibit
Title Page
Table of Contents
Certificate of Board 1
Introductory Section
Board of Trustees and Administration 5
Organization Chart 12
Letter of Transmittal 13
Government Finance Officers Association Certificate of Achievement 18
Association of School Business Officials Certificate of Excellence 19
Financial Section
Independent Auditors’ Report 23
Management’s Discussion and Analysis 25
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Assets 43 A-1
Statement of Activities 44 B-1
Governmental Fund Financial Statements:
Balance Sheet – Governmental Funds 46 C-1
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 49 C-2
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 50 C-3
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities 52 C-4
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – General Fund 53 C-5
Proprietary Fund Financial Statements:
Statement of Net Assets 54 D-1
Statement of Revenues, Expenses, and Changes in Fund Net Assets 55 D-2
Statement of Cash Flows 56 D-3
Fiduciary Fund Financial Statement:
Statement of Fiduciary Assets and Liabilities 57 E-1
Notes to the Basic Financial Statements 58
Combining Statements
Combining Balance Sheet – Nonmajor Governmental Funds 84 F-1
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds 94 F-2
Fiduciary Fund
Statement of Changes in Assets and Liabilities – Agency Fund 107 G-1

Compliance Schedules
Schedule of Delinquent Taxes Receivable 110 H-1
Schedule of Expenditures for Computation of Indirect Cost for 2011-2012
General and Special Revenue Funds 112 H-2
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Debt Service Fund 113 H-3
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget
and Actual – Capital Projects Fund 114 H-4
Schedule of Revenues, Expenses, and Changes in Fund Net Assets – Budget
and Actual – Enterprise Fund 115 H-5
Statistical Section (Unaudited)
Table
Net Assets by Component 119 1
Expenses, Program Revenues, and Net (Expense) Revenue 120 2
General Revenues and Total Change in Net Assets 122 3
Fund Balances, Governmental Funds 123 4
Governmental Funds Expenditures and Debt Service Ratio 124 5
Governmental Funds Revenues 126 6
Other Financing Sources and Uses and Net Change in Fund Balances 127 7
Appraised Value and Actual Value of Taxable Property 128 8
Direct and Overlapping Property Tax Rates 129 9
Direct and Overlapping Property Tax Levies 130 10
Principal Property Taxpayers 131 11
Property Tax Levies and Collections 132 12
Outstanding Debt by Type 133 13
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 134 14
Statement of Direct and Overlapping Debt 135 15
Legal Debt Margin Information 136 16
Demographic and Economic Statistics 137 17
Principal Employers 138 18
Full-Time Equivalent District Campus Employees 139 19
Operating Statistics 140 20
Capital Asset Information 141 21
Optimum Fund Balance Calculation Schedule 142 22
Federal Awards Section
Exhibit
Independent Auditors’ Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 145
Independent Auditors’ Report on Compliance with Requirements that Could have
a Direct and Material Effect on each Major Program and on Internal Control
over Compliance in Accordance with OMB Circular A-133 147
Schedule of Findings and Questioned Costs 149
Schedule of Status of Prior Findings 150
Schedule of Expenditure of Federal Awards 151 I-1
Notes to Schedule of Expenditure of Federal Awards 154

INTRODUCTORY SECTION
3

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
BOARD OF TRUSTEES
Ms. Gloria Peña
Mr. Peter Baron
Mr. Bowie Hogg
Dr. Aaron Reich
Mr. John Hibbs
Mr. Wayne Ogle
Ms. Jamie Sullins
President
Vice President
Secretary
Assistant Secretary
SUPERINTENDENT OF SCHOOLS
Jerry McCullough
DEPUTY SUPERINTENDENT
Marcelo Cavazos, Ph.D.
ASSOCIATE SUPERINTENDENT OF FINANCE
Cindy Powell, CPA
ASSISTANT SUPERINTENDENT OF TECHNOLOGY
Steven Harvey
ASSISTANT SUPERINTENDENT OF PERSONNEL
Marilyn Evans
ASSISTANT SUPERINTENDENT OF ADMINISTRATION
Jimmy Walker
EXECUTIVE DIRECTOR OF MAINTENANCE AND OPERATIONS
Bob Carlisle
EXECUTIVE DIRECTOR OF FINANCE
Tony Drollinger
DIRECTOR OF BUDGET/CASH MANAGEMENT
Mandy Mew
DIRECTOR OF ACCOUNTING
Brent West, CPA
CHIEF INTERNAL AUDITOR
Vacant
5

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
BOARD OF TRUSTEES
Gloria Peña – President
Mrs. Peña was elected to the Board in May 2005 and is currently serving as President. She also serves on the
State Board of Directors of the Texas Association of School Boards and the Mexican American School Board
Association. She graduated Magna Cum Laude from Northwood University with a degree in Business
Administration. Prior to her election she was involved in various AISD committees. She is an active member
of St. Vincent de Paul Church as well as other community involvement. She and her husband, Richard, have
one daughter who graduated from Martin High School. Mrs. Peña enjoys spending time with her family,
working with children of all ages, sewing, ceramics, learning and traveling.
Peter Baron – Vice President
Mr. Baron was re-elected in May 2009. He is a Lieutenant Colonel, retired, in the United States Marine Corps.
He served 23 years on active duty, retiring in 1991 as a Naval Aviator, with 5000 flight hours in helicopters
and jets, and over 200 carrier landings. A decorated Vietnam veteran, he moved to NAS Beeville, Texas, in
1988 to become the first Marine to command a US Navy Strike Training squadron. Mr. Baron has a BS from
Auburn University and a master’s degree in Aeronautics from Embry Riddle University. A Master Technology
Teacher, he taught mathematics and computer classes at Arlington High School for thirteen years. After being
elected to the board, he resigned his teaching position in Arlington and currently is the Lead Algebra II teacher
at Grand Prairie High School.
Peter Baron is a Life Member of the USMC Combat Helicopter Association, the Military Officers Association
of America, and the Glock Sport Shooting Federation. He rides with the Lone Star Cyclists bicycle club and is
a member of the Knights of Columbus at St. Maria Goretti Church. He has represented AISD on numerous
occasions as a presenter at Texas Computer Educators Association conventions and at ESC Region XI
workshops. Additionally, he has served on the AISD Financial Futures Committee, the Textbook Selection
Committee, the Mathematics Benchmark Test Committee, and numerous Board committees. He and his wife,
Carole, have resided in Arlington since 1991. They have three grown children and four grandchildren.
Bowie Hogg – Secretary
Bowie Hogg was elected to the board in May of 2008 and is a product of the Arlington schools from
kindergarten through high school graduation. Mr. Hogg graduated from Texas A&M University with a
Bachelors of Business Administration degree. Mr. Hogg also represented Arlington and the Dallas-Fort Worth
metroplex by being chosen out of 216,000 applicants to appear on the original edition of the Emmy nominated
television show, The Apprentice. Mr. Hogg is a healthcare executive with Health Advocate Inc., while also
serving his community as a Board member for the United Way of Tarrant County and the Advisory Board for
the Arlington Life Shelter and Omni American Bank. Mr. Hogg’s passions are education, healthcare and
community service.
7

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
Aaron Reich – Assistant Secretary
John Hibbs
Wayne Ogle
BOARD OF TRUSTEES (continued)
Dr. Reich was elected to the Board in May of 2009. He has lived in Arlington for 19 years and is married with
two children currently enrolled in the AISD. He and his wife of 17 years have two businesses in Arlington; a
CPA practice (his wife, Debra J. Freiheit, CPA, MS) and TRINU Healthcare (a professional development,
education and consulting firm for healthcare). Dr. Reich has been an invited lecturer on a local, state and
national level. He received his Doctor of Pharmacy degree from Creighton University, Omaha, Nebraska and
came to Texas via his post graduate residency at UT MD Anderson Cancer Center in Houston.
Dr. Reich has served on many non-profit Boards of Directors and committees, mostly related to his
professional practice and healthcare education. Specific to education and the local community, he is a very
active parent, a past President of the Pope Elementary Dads’ Club, and is President and co-founder of Positive
Influence, which is a non-profit organization dedicated to parental and father figure involvement programs for
primary and secondary education. Along with being a proud member of the First United Methodist Church,
Ft. Worth, Aaron enjoys his family, community advocacy, the outdoors, and traveling.
Mr. Hibbs was elected to the Board in May 2010. He is the Western Regional Lab Manager for Bausch &
Lomb, a leader in the eye care industry. He has been employed with Bausch & Lomb for 20 years. He also is a
licensed Contact Lens Examiner. Mr. Hibbs is a 1985 graduate of Texas Christian University where he
received a BA degree.
John Hibbs and his wife, Mary, have been married for 25 years. They have one son and two daughters, all of
whom have attended the Arlington Independent School District. His oldest daughter attends Martin High
School. Prior to being elected to the School Board, John received both the PTSA Life Membership and PTSA
Extended Life Membership awards for his volunteerism within the AISD. He currently serves as a director for
the Arlington Children’s Toy Charities, and serves in a leadership role in the Children’s Ministry at Lake
Arlington Baptist Church. His passion is his family and the community he serves.
Wayne Ogle was elected to the Board in May 2005. Prior to his election to the Board, he served on the
Arlington City Council for 10 years where he was Mayor Pro Tem from 1998 to 2003. Mr. Ogle represented
Arlington on the North Central Texas Council of Governments Executive Board and was President of the
Arlington Housing Finance Corporation.
Mr. Ogle is a District Sales Manager for Mutual of Omaha Insurance Company and a Registered Principal for
MOIS Inc. He has a BA from the University of Texas at Arlington, is a Chartered Leadership Fellow of the
American College and has two diplomas in Insurance and Claims Administration from the Insurance Institute
of America. He holds E Series 6, 63 & 26 Securities Licenses’. As moderator for The American College, Mr.
Ogle leads continuing education and professional development courses for insurance sales professionals.
His wife Mimi is a public school teacher and they have been married for 24 years and have two sons. For
recreation, he enjoys reading, gardening, cooking, music and spending time with his family and Great Dane.
8

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
BOARD OF TRUSTEES (continued)
Jamie Sullins
Mrs. Sullins was elected in May 2010. She has a Bachelors of Business Administration in Finance from Texas
Tech University. She worked at Lockheed Martin Missiles and Advanced Programs Division in financial
planning and analysis evaluating the feasibility and cost effectiveness of capital improvement projects. She
also worked for Interturbine Group of Companies, as the corporate Manager of Financial Planning and
Analysis for international operations.
Mrs. Sullins is a life-long community volunteer. She has been a full-time volunteer in Arlington schools for 15
years serving on four PTA Executive boards. Jamie Sullins has served as PTA President, Booster Club
President and has developed numerous volunteer engagement programs. She is founder and past president of
the North Arlington Education Alliance, a non-profit organization working in close parallel with the District to
connect people and to mobilize ideas that promote educational excellence.
Mrs. Sullins served on the 2009 AISD Bond Advisory Committee, Security Advisory Committee, Citizens
Advisory Committee, Vote for Our Kids Campaign, AISD Insider and AISD Council of PTAs. She has
volunteered as a Boy Scout leader, a Girl Scout leader and has co-directed diocesan Vacation Bible
School. Mrs. Sullins and her husband, Gerald, have lived in Arlington for over 25 years. They have two
children; one graduated from AISD in 2007 and the other will be a proud member of the 2011 graduating
class.
Jerry McCullough – Superintendent
ADMINISTRATION
Mr. McCullough was appointed Superintendent in January 2009, and he served as Interim Superintendent from
July 2008 to January 2009. He was named Deputy Superintendent in 1992-93 after serving as Associate
Superintendent for Administration the previous three years. Mr. McCullough also served as Interim
Superintendent from July 1992, until the new superintendent was named in January 1993. He joined the
Arlington schools in 1969 as an eighth-grade history teacher at Ferguson Junior High School. He enlisted in
the U.S. Army, serving from 1971 to 1974. Upon his return to Arlington in 1974, Mr. McCullough taught
history at Nichols Junior High School, Shackelford Junior High School and Lamar High School. His first
administrative appointment came in 1981, when he became an assistant principal at Lamar High School. One
year later he helped to open Martin High School, serving as its assistant principal from 1982 to 1985. He was
named principal of Arlington High School in 1985. Mr. McCullough holds a Bachelor of Arts degree in
education from Baylor University and a Master of Education degree from the University of North Texas. He
and his wife, Becky, have one son who graduated from Arlington High School.
9

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
Dr. Marcelo Cavazos – Deputy Superintendent
ADMINISTRATION (continued)
Dr. Marcelo Cavazos was named Associate Superintendent with responsibility for instructional programs in
June 1999. Dr. Cavazos completed the Cooperative Superintendency Program doctoral Fellowship at the
University of Texas at Austin where he received his Ph.D. While completing his post-graduate studies, he
worked at the Texas Education Agency in the division of School Finance and Support. Prior to his selection as
a Fellow at UT Austin, Dr. Cavazos served in a district-wide administrative capacity as associate advisor in the
San Benito Consolidated ISD from 1995-1998. His previous experience includes a secondary language arts
supervisory position, held from 1993-1995 in the Mercedes ISD, an English and government teaching post in
the McAllen ISD from 1992-1993, and an English teaching post in the Mission Consolidated ISD from 1990-
1992. He graduated Summa Cum Laude from the University of Texas-Pan American with a bachelor’s degree
in English and political science in 1990. He earned a master’s in education from the University of Texas-Pan
American in 1992. Dr. Cavazos currently serves as the Deputy Superintendent for the Arlington Independent
School District.
Cindy Powell – Associate Superintendent of Finance
Cindy Powell was named Associate Superintendent of Finance in October 2008. Mrs. Powell was originally
hired in September 1993 as the District’s first Internal Auditor. She served in that capacity for three years.
Mrs. Powell then was named Director of Accounting in 1996 and held that position for three years before
being named Executive Director of Finance in 1999. She has 25 years total experience in public accounting,
private sector auditing, and governmental accounting. She graduated from Texas Tech University with a BBA
in Accounting and is a Certified Public Accountant.
Steven Harvey – Assistant Superintendent of Technology
Steven Harvey was named Assistant Superintendent of Technology and Telecommunications in January, 2000.
He began his career with the Arlington Independent School District in 1985 as a teacher at Young Junior High
School. In December, 1985, he moved to Arlington High School as a Computer Science teacher. In 1990 he
was appointed to be the Coordinator of Instructional Technology. In 1995, he was appointed to the position of
Executive Director of Technology for the Irving ISD. He attended the public schools of the Arlington
Independent School District and is a graduate of Texas A&M University with a BS in Computer Science. He
received a MEd in Teaching from the University of Texas at Arlington. He is a member of the Texas
Computer Educators Association and the North Texas Distance Learning Association.
Marilyn Evans – Assistant Superintendent of Personnel
Marilyn Evans was named Assistant Superintendent of Personnel in October 2008. Ms. Evans completed the
Texas Leadership Cooperative in 2006 where she received her Superintendency Certification. She began her
career with the Arlington Independent School District in 1989 as a teacher at Starrett Elementary. In 1992, she
moved to Williams Elementary as an Assistant Principal, and then in 1993 she was named an Assistant
Principal for the Montgomery County Public Schools in Rockville, Maryland. She returned to the AISD in
1995 as the Science Curriculum Coordinator and became Principal of Crouch Elementary in 1996. Ms. Evans
was promoted to Director of Elementary Personnel in 1998 and Executive Director of Elementary Instruction
in 2000. She received a Master’s in Educational Administration from the University of North Texas and a
Bachelor’s in Human Biology from Stanford University.
10

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Board of Trustees and Administration
ADMINISTRATION (continued)
Jimmy Walker – Assistant Superintendent of Administration
Jimmy Walker was named Assistant Superintendent of Administration on April 16, 2009. He began his career
with the Arlington Independent School District in 1993, as an Assistant Principal at Carter Junior High School.
He served in that capacity for 3 years. In June, 1996 he moved to Martin High school as an Assistant Principal,
and served in that capacity for four years. In June 2000, he was appointed Principal of Bailey Junior High
where he served for nine years. During his nine years as instructional leader at Bailey, his school was
recognized by the Texas Business and Education Coalition, and the Just for Kids organization, as one of the
top 33 middle/junior high schools in the state. Bailey received this honor three out of the nine years he served
as Principal. Mr. Walker received his BS degree from East Central University, and his Masters in
Administration from Northeastern State University.
Bob Carlisle – Executive Director of Maintenance and Operations
Bob Carlisle has worked in public school facility maintenance/operations and construction since 1987 and has
been with the District since May of 2009. Prior to employment with the District, Mr. Carlisle was Executive
Director of Facilities Services for the Killeen ISD for 22 years. Additionally, he worked as a general
construction contractor for 12 years. He has a BBA from Texas Christian University.
Tony Drollinger – Executive Director of Finance
Tony Drollinger originally came to the District in October 1996 as the District’s Internal Auditor. After
serving in that capacity for three years, he was named Director of Accounting in 1999, and then was named
Executive Director of Finance in November of 2008. Prior to coming to the District, Mr. Drollinger worked
four years as a financial consultant and software trainer for Texas Educational Consultative Services (TECS)
in Austin. Before that time Mr. Drollinger spent five years working for the Texas Education Agency in the
areas of School Audits and PEIMS. He is a graduate of Southwest Texas State University with a BBA in
Accounting, and is a member of the Government Finance Officers Association and the Texas Association of
School Business Officials.
Mandy Mew – Director of Budget and Cash Management
Mandy Mew has worked with Public School Finance since 1988. She was the Chief of School Finance for the
North Carolina Department of Public Instruction until moving to Texas in 2000. After moving to Texas she
worked for the Fort Worth ISD and the Hurst-Euless-Bedford ISD. In July, 2010 she moved to Arlington ISD
as the Director of Budget and Cash Management. Mandy graduated from Wake Forest University and is a
Registered Texas School Business Administrator. She is also a graduate of the Education Policy Fellowship
Program, sponsored by the Institute for Educational Leadership.
Brent West – Director of Accounting
Brent West was named Director of Accounting in January 2009. Prior to joining the District he worked for a
local CPA firm for seven years. Brent has a BSE in Elementary Education from Ouachita Baptist University
and an MBA from the University of Texas at Arlington. He is a Certified Public Accountant and has various
other accounting related certifications. Brent and his family live in Arlington and his daughter attends Hill
Elementary.
Chief Internal Auditor – Vacant
11

DISTRICT
ORGANIZATION CHART
2010-2011
CHIEF
INTERNAL AUDITOR
BOARD OF TRUSTEES
ACCOUNTABILITY
& TESTING
SUPERINTENDENT
LEGAL
COMMUNICATIONS PRINCIPALS
ADMINISTRATIVE ASSISTANT TO
SUPERINTENDENT
FINANCE
ASSOCIATE
SUPERINTENDENT
ADMINISTRATION
ASSISTANT
SUPERINTENDENT
DEPUTY
SUPERINTENDENT
PERSONNEL
ASSISTANT
SUPERINTENDENT
FINANCE
EXECUTIVE DIRECTOR
PLANT SERVICES
EXECUTIVE DIRECTOR
STUDENT SERVICES
EXECUTIVE DIRECTOR
ELEMENTARY
EXECUTIVE DIRECTOR
SECONDARY
EXECUTIVE DIRECTOR
BUDGET/CASH
MANAGEMENT
DIRECTOR
BUILDING & GROUNDS
DIRECTOR
HEALTH SERVICES
COORDINATOR
BILINGUAL/LOTE
DIRECTOR
DROP-OUT PREVENTION
DIRECTOR
SECONDARY PERSONNEL
DIRECTOR
PAYROLL
COORDINATOR
OPERATIONS
MANAGER
STUDENT AFFAIRS
DIRECTOR
LIBRARY
SERVICES
DIRECTOR
SPECIAL
EDUCATION
DIRECTOR
ELEMENTARY PERSONNEL
DIRECTOR
PURCHASING
DIRECTOR
ENERGY
MANAGER
ATHLETICS/PE
DIRECTOR
K-12
CURRICULUM
COORDINATOR
ADVANCED ACADEMICS
COORDINATOR
AUXILIARY PERSONNEL
DIRECTOR
ACCOUNTING
DIRECTOR
STAFF
ARCHITECT
SECURITY/TRANSPORTATION
DIRECTOR
FINE ARTS
DIRECTOR
GUIDANCE & COUNSELING
DIRECTOR
EMPLOYEE
BENEFITS
COORDINATOR
ACCOUNTS
PAYABLE
COORDINATOR
ENVIRONMENTAL SAFETY
COORDINATOR
SAFE & DRUG FREE SCHOOLS
DIRECTOR
PROFESSIONAL
DEVELOPMENT
DIRECTOR
INTERVENTIONS
COORDINATOR
FOOD SERVICE
DIRECTOR
PARENT
RELATIONS
DIRECTOR
CAREER & TECHNOLOGY
DIRECTOR
RISK MANAGEMENT
MANAGER
GRANTS
COORDINATOR
STATE & FEDERAL PROGRAMS
DIRECTOR
COMMUNITY PROGRAMS
COORDINATOR
FAMILIES IN TRANSITION
COORDINATOR
PREGNANCY RELATED
SERVICES
COORDINATOR
K-12 CURRICULUM
COORDINATOR
TECHNOLOGY
ASSISTANT
SUPERINTENDENT
NETWORK SERVICES
DIRECTOR
TELECOMMUNICATIONS
DIRECTOR
IMAGE
PROCESSING
MANAGER
INSTRUCTIONAL
TECHNOLOGY
DIRECTOR
INFORMATION SYSTEMS
DIRECTOR
TECHNOLOGY
SUPPORT
DIRECTOR
12

FINANCIAL SECTION
21

To the Board of Trustees
Arlington Independent School District
Arlington, Texas
Independent Auditors’ Report
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of Arlington Independent School
District (the “District”) as of and for the year ended August 31, 2010, which collectively comprise the
District’s basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the District’s management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing 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 over financial reporting accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the District as of August 31, 2010, and the respective
changes in financial position, and, where applicable, cash flows thereof and the respective budgetary
comparison for the General Fund for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated January 10,
2011, on our consideration of the District’s internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
23
3411 Richmond | Suite 500 | Houston, TX 77046 | (P) 713.621.1515 | (F) 713.621.1570
www.null-lairson.com

To the Board of Trustees
Arlington Independent School District
Arlington, Texas
Page 2
The management’s discussion and analysis on pages 25 through 39 is not a required part of the basic
financial statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion on
it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, supplementary information –
combining statements and schedules, Texas Education Agency required schedules and statistical section
listed in the table of contents are presented for the purpose of additional analysis and are not a required
part of the basic financial statements of the District. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by U.S. Office of Management
and Budget Circular A-133, Audits of Local Governments and Non-Profit Organizations, and in addition to
the combining statements and schedules and the Texas Education Agency required schedules listed in the
table of contents, are not a required part of the basic financial statements of the District. Such information,
except for that portion marked “unaudited” on which we express no opinion, has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
presented in all material respects in relation to the basic financial statements taken as a whole.
The Introductory Section and Statistical Section listed in the foregoing table of contents have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly,
we express no opinion on them.
Null-Lairson, PC
Houston, Texas
January 10, 2011
24

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Management’s Discussion and Analysis
August 31, 2010
In this section of the Comprehensive Annual Financial Report, we, the managers of Arlington Independent School
District (“District”), discuss and analyze the District’s financial performance for the fiscal year ended August 31, 2010.
We encourage readers to consider the information presented here in conjunction with additional information furnished
in our letter of transmittal on pages 13 - 17, the independent auditors’ report on pages 23 and 24, and the District’s
basic financial statements which begin on page 41.
FINANCIAL HIGHLIGHTS
‣ The assets of the District exceeded its liabilities at the close of the fiscal year by $189,249,367 (net assets). Of
this amount $24,298,624 (unrestricted net assets) may be used to meet the District’s ongoing obligations.
‣ The District’s total net assets decreased by $5,149,697.
‣ At of the close of the fiscal year, the District’s governmental funds reported combined ending fund balances of
$173,095,127, which is $43,071,340 more than the previous year. Eighty-seven percent of the combined fund
balance, $151,972,631, is available for spending at the District’s discretion (unreserved and undesignated fund
balance).
‣ At the end of the current fiscal year, unreserved and undesignated fund balance for the General Fund was
$72,834,097 or 13% of total general fund expenditures.
USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements, notes to those statements, and other supplementary
information.
The basic financial statements include two types of statements that present different views of the District:
1) Government-wide financial statements provide information about the activities of the District as a whole
and present both a long-term and short-term view of the District’s finances. The government-wide
financial statements include the Statement of Net Assets and the Statement of Activities (on pages 43 and
44 - 45).
2) Fund financial statements (starting on page 46) report the District’s operations in more detail than the
government-wide statements by providing information about the District’s most significant funds. For
general governmental activities, these statements tell how services were financed in the short term as well
as what resources remain for future spending. For proprietary activities, fund financial statements tell how
goods or services of the District were sold to external customers and how funds were accumulated and
costs were allocated internally among various functions. The remaining fund financial statement, the
fiduciary statement, provides financial information about activities for which the District acts solely as a
trustee or agent for the benefit of parties outside of the District. The fiduciary statement can be found on
page 57.
The notes to the financial statements, which start on page 58, provide additional information that is essential to a
complete understanding of the data provided in the government-wide and fund financial statements.
This annual report contains other supplementary information in addition to the basic financial statements and the notes
to the financial statements. This Management’s Discussion and Analysis is required supplementary information under
governmental accounting standards. The report sections labeled “Compliance Schedules” and “Federal Awards
Section” contain data used by monitoring or regulatory agencies for assurance that the District is using supplied funds
in compliance with the terms of grants. The “Statistical Section,” which is unaudited, includes selected financial and
demographic information, generally presented on a multi-year basis.
25

OVERVIEW OF THE FINANCIAL STATEMENTS
Table I summarizes the major features of the District’s financial statements, including the portion of the District
government they cover and the types of information they contain.
Table I
Arlington Independent School District
MAJOR FEATURES OF THE DISTRICT’S FINANCIAL STATEMENTS
Scope
Required financial
statements
Accounting basis
and measurement
focus
Type of
asset/liability
information
Type of
inflow/outflow
information
Governmentwide
Statements
Entire District’s
government
(except fiduciary
funds)
Statement of
Net Assets
Statement of
Activities
Accrual
accounting and
economic
resources focus
All assets and
liabilities, both
financial and
capital, short-term
and long-term
All revenues and
expenses during
the year,
regardless of
when cash is
received or paid
Fund Statements
Governmental Funds Proprietary Funds Fiduciary Funds
The activities of the District
that are not proprietary or
fiduciary
Balance Sheet
Statement of Revenues,
Expenditures & Changes
in Fund Balances
Modified accrual accounting
and current financial resources
focus
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
Revenues for which cash is
received during the year or
soon after year end;
expenditures when goods or
services have been received
and payment is due during the
year or soon thereafter
Activities the District
operates similar to private
businesses
Statement of Net Assets
Statement of Revenues,
Expenses and Changes
in Fund Net Assets
Statement of Cash
Flows
Accrual accounting and
economic resources focus
All assets and liabilities,
both financial and capital
and short-term and longterm
All revenues and expenses
during the year, regardless
of when cash is received or
paid
Instances in which the District
is the trustee or agent for
someone else’s resources
Statement of Fiduciary
Assets and Liabilities
Modified accrual accounting
and current financial
resources focus
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
Agency funds do not report
revenues and expenditures
Government-wide Financial Statements
The government-wide financial statements – consisting of the Statement of Net Assets and the Statement of Activities
– report information about the District as a whole. These statements are designed to provide readers with a broad
overview of the District’s finances. The government-wide statements apply the accrual basis of accounting, which is
similar to the accounting basis used by most private-sector companies. The Statement of Net Assets includes all of the
District’s assets and liabilities. The Statement of Activities includes all of the current year’s revenues and expenses
regardless of when cash is received or paid.
The two government-wide financial statements report the District’s net assets and changes in them. Net assets (the
difference between assets and liabilities) provide one measure of the District’s financial health, or financial position.
Over time, increases or decreases in the District’s net assets are one indicator of whether its financial health is
improving or deteriorating. To fully assess the overall health of the District, however, you should consider additional
factors as well, such as changes in the District’s property tax base, state funding, or its average daily attendance and
the condition of the District’s facilities.
26

In the Statement of Net Assets and the Statement of Activities, we divide the District into two kinds of activities:
‣ Governmental activities – Most of the District’s basic services are reported here, including instruction, student
support services, transportation, maintenance, and general administration. Property taxes, state aid, and state
and federal grants finance most of these activities.
‣ Business-type activities – The District’s food service operation is reported here. The District charges a fee to
“customers” to help it cover the cost of services it provides in the food and nutrition program.
Fund Financial Statements
The fund financial statements provide detailed information about the District’s most significant funds, as opposed to
the District as a whole. Laws and bond covenants require the District to establish some funds, such as grants received
under the No Child Left Behind Act from the U.S. Department of Education. The District’s administration establishes
other funds to help it control and manage money for particular purposes. The three kinds of funds used by the District
– governmental, proprietary and fiduciary – use different accounting approaches:
‣ Governmental funds – Most of the District’s basic services are reported in governmental funds. These funds
use modified accrual accounting (an accounting method that measures the receipt and disbursement of cash
and all other financial assets that can be readily converted to cash) and report balances that are available for
future spending. The governmental fund statements provide a detailed short-term view of the District’s
general operations and the basic services it provides. Governmental fund information helps users determine
the availability of financial resources to finance the District’s programs. We describe the differences between
governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and
governmental funds in reconciliation schedules following each of the fund financial statements.
‣ Proprietary funds – Services for which the District charges a fee (whether the users are outside customers or
other units of the District) are reported in proprietary funds. Proprietary funds use the same accounting
methods employed in the government-wide financial statements.
The District maintains two different types of proprietary funds. Enterprise funds are used to report the same
functions presented as business-type activities in the government-wide financial statements. The District
accounts for its Food Service operation as an enterprise fund. Internal service funds are used to accumulate
and allocate costs internally among various functions. The District accounts for its workers’ compensation
program as an internal service fund. Because this service predominantly benefits governmental rather than
business-type functions, they have been included within governmental activities in the government-wide
financial statements.
‣ Fiduciary funds – The District is the trustee, or fiduciary, for money raised by student activities. These
resources can be used only for the student groups that raised the funds; therefore, they are recorded in separate
fiduciary funds. We exclude these resources from the District’s other financial statements because the
District cannot use these assets to finance its operations. The District is only responsible for ensuring that the
assets reported in these funds are used for their intended purposes.
27

THE DISTRICT AS A WHOLE
Net Assets. The District’s combined net assets were $189.2 million at August 31, 2010 (see Table II). A large portion
of net assets ($152.8 million or 81%) reflects the District’s investment in capital assets (e.g., land, buildings, furniture
and equipment), less any related debt used to acquire those assets that is still outstanding. The District uses these
capital assets to provide services to students; consequently, these assets are not available for future spending.
Although the 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. An additional portion of the District’s net assets ($12.1 million or 6%) represents
resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net
assets ($24.3 million or 13%) may be used to meet the government’s ongoing obligations.
Table II
Arlington Independent School District
NET ASSETS
in thousands
Governmental Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Current and other assets $220,072 $171,228 $ 7,681 $ 5,599 $227,753 $176,827
Capital assets 458,191 468,423 5,073 4,853 463,264 473,276
Total assets 678,263 639,651 12,754 10,452 691,017 650,103
Long-term liabilities 426,567 423,962 11 426,567 423,973
Other liabilities 73,962 32,805 1,239 985 75,201 33,790
Total liabilities 500,529 456,767 1,239 996 501,768 457,763
Net assets:
Invested in capital assets net of related debt 147,772 130,115 5,073 4,843 152,845 134,958
Restricted 12,106 11,493 12,106 11,493
Unrestricted 17,856 41,276 6,442 4,613 24,298 45,889
Total net assets $177,734 $182,884 $ 11,515 $ 9,456 $189,249 $192,340
Changes in Net Assets. Total net assets of the District decreased by $3.1 million over last year (see Table III).
Governmental activities decreased net assets by $5.2 million. Business-type activities increased net assets by $2.1
million. The increase in net assets is attributed to three key factors. First, the District’s revenues exceeded expenses
by $12.4 million (adjusted for the effects of capital outlay and debt service payments). Second, the District recognized
depreciation expense (which is a non-cash expense that reduces the value of District assets) in the amount of $18.7
million. Third, miscellaneous adjustments in the amount of $1.1 million were posted to revenues and expenses to
account for prepaid expenses and tax revenues earned during the period under the full accrual method of accounting.
Following are separate discussions of changes in revenues and expenses for governmental activities and business-type
activities.
Governmental activities. Revenues from governmental activities were $533.8 million. The cost of all governmental
programs and services were $538.9 million. Governmental activities decreased net assets by $5.2 million. Key areas
contributing to the decrease were property taxes, state aid, and payroll.
28

Table III
Arlington Independent School District
CHANGES IN NET ASSETS
in thousands
Governmental
Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenues:
Program Revenues:
Charges for services $ 2,981 $ 2,733 $ 6,914 $ 7,146 $ 9,895 $ 9,879
Operating grants and contributions 106,339 67,720 20,386 18,574 126,725 86,294
General Revenues:
Maintenance and operations taxes 209,744 213,225 209,744 213,225
Debt service taxes 47,298 48,103 47,298 48,103
State aid - formula grants 157,265 168,944 157,265 168,944
Grants and contributions not restricted 4,893 2,768 4,893 2,768
Investment earnings 452 1,995 12 24 464 2,019
Miscellaneous 4,858 19,216 4,858 19,216
Total Revenue 533,830 524,704 27,312 25,744 561,142 550,448
Expenses:
Instruction, curriculum and media services 350,555 335,230 350,555 335,230
Instructional and school leadership 33,395 32,820 33,395 32,820
Student support services 40,643 39,377 40,643 39,377
Food services 528 546 25,345 23,939 25,873 24,485
Cocurricular activities 8,835 8,543 8,835 8,543
General administration 7,345 7,559 7,345 7,559
Plant maintenance, security & data
processing 68,012 61,925 68,012 61,925
Community services 3,615 3,195 3,615 3,195
Debt service 19,288 19,466 19,288 19,466
Facilities acquisition and construction
Intergovernmental charges 6,672 4,774 6,672 4,774
Total Expenses 538,888 513,435 25,345 23,939 564,233 537,374
Increase in net assets before transfers (5,058) 11,269 1,967 1,805 (3,091) 13,074
Transfers in (out) (92) (160) 92 160
Increase (decrease) in net assets (5,150) 11,109 2,059 1,965 (3,091) 13,074
Net assets - September 1 (beginning), as restated 182,884 171,775 9,456 7,491 192,340 179,266
Net assets - August 31 (ending) $ 177,734 $ 182,884 $ 11,515 $ 9,456 $189,249 $192,340
Figure 1 graphically depicts the sources of governmental activities revenue. Property taxes and state foundation aid
(accounted for as “state aid – formula grants”) are the District’s chief sources of operating revenues. Both of these
revenue streams continue to change dramatically from year to year due to the lingering effects of House Bill 1 (HB 1),
passed during a 2006 special legislative session, and House Bill 3646 (HB 3646), passed during the regular legislative
session in 2009. HB 1 overhauled the current Texas school finance system, and HB 3646 modified the system. The
primary objective of passing a new school finance system was property tax relief; the bill provided very little new
discretionary money for general operations.
29

Figure 1
HB 1 required school districts to lower their Maintenance and Operations (“M&O”) tax rates by one-third over the
two-year period ending in 2007-08, and increased state aid to replace the lost tax revenues. Under HB 1, districts were
required to compress their M&O rates to $1.00 over the two-year period ending 2007-08, and were required to obtain
voter approval before raising this rate anytime in the future. The maximum M&O tax rate allowable under this law
was capped at $1.17. The new law did provide a small amount of flexibility by giving districts the option of adding as
much as another 4 cents to the compressed rate without voter approval. Each of the optional four pennies were “superequalized”
within the state funding formulas to generate the same revenue that a penny of tax generated for Austin
ISD, which was one of the wealthier districts in Texas when the bill was passed. AISD found it necessary to levy the
additional 4 cents of tax to help balance the general operating budget.
HB 1 also established revenue targets for all districts, which effectively capped the amount of total revenue per student
a district could generate at the compressed tax rate. Districts generating less total revenue under this system received
additional state aid to boost total revenues to the target revenue. HB 3646 was passed in the spring of 2009 which
increased the target revenue for each district by a minimum of $120 per student. These funding gains were not fully
realized by districts, however, because the bill also mandated salary increases for educators. The mandated salary
increases consumed approximately 60% of the revenue gains provided by HB 3646.
Currently 75% (approximately) of all Texas school districts receive additional state aid because the funding formulas
generate an amount of revenue that is less than their target revenue set by HB 3646. The remaining 25% of districts,
through the funding formulas, generate an amount of total revenue that is higher than their target revenue. These
districts are considered “on formula” and are allowed the keep the total amount of revenue they generate through the
combination of local tax revenue and state funding.
HB1, HB 3646 and federal stimulus funds impacted revenues recognized in the following revenue categories:
operating grants and contributions, M&O taxes, and state aid – formula grants. These three revenue categories must be
examined together to understand the overall change in revenues from last year.
‣ In 2009-10 the District’s M&O taxes decreased by $3.5 million (or 1.6%), due entirely to a drop in property
values.
‣ State aid increased by $23.8 million due to higher allotments and formula yields granted under HB 3646, funds
that replace tax revenues lost to lower property values, larger enrollments and improved attendance. The state
legislature voted to use federal State Fiscal Stabilization Funds (SFSF) approved under the American
Recovery & Reinvestment Act (ARRA) to pay for gains approved under HB 3646 and to backfill funding
shortfalls in the state’s education budget. AISD’s share of SFSF funds was $34.2 million and those funds are
reported as Operating Grants and Contributions (rather than state aid) because the District is required to report
the SFSF funds as a federal special revenue fund. The state legislature also reclassified High School
Allotment funds from a special revenue fund (Accounted for in the operating grant revenue category) to state
aid in 2009-10.
‣ AISD also received $10 million in federal ARRA grants targeting Title 1, special education, and technology
programs. These revenues are accounted for as operating grants and contributions.
30

A $1.1 million settlement on prior year Medicaid claims was the primary reason for the increase in the revenue
category “grants and contributions not restricted.”
Miscellaneous revenues decreased by $19.7 million (or 89%) due mostly to the receipt of $15.1 million of bonuses and
royalties on natural gas mineral leases in 2008-09 that were not duplicated in 2009-10. Southwest Tarrant County
experienced a boom in natural gas drilling activity over the last few years, and AISD benefited from this activity. The
District entered into leases for natural gas drilling on a number of properties and received bonuses in the prior year
when the leases were executed. Royalties are not earned until the wells are drilled and actually begin producing.
Investment earnings were dramatically impacted due to the downturn in the economy that affected all public entities
across the nation. Declining interest rates caused a decrease in investment earnings of $1.5 million, or 77%.
Expenses in Table III are summarized by functional categories that reflect the purpose of the transaction. Various
operating expenses are recorded within each functional category. Total expenses increased $25.5 million (or 5%) over
2009, primarily due to increases in payroll, contracted services and supplies. Figure 2 graphically depicts expenses by
functional category.
Figure 2
Payroll is the most significant operating expense incurred by the District, accounting for 77% of total expenses, and is
recorded in the majority of functional categories. Payroll expenses were $7.95 million (or 2%) higher than last year
primarily because of pay raises and positions added through federal ARRA grants. HB 3646 required school districts
to give educators (defined as teachers, librarians, nurses, counselors and speech pathologists) a pay raise equal to $800
per educator, or a uniform amount that equaled $60 per student in weighted average daily attendance in total.
Additionally, the bill also mandated a “step increase” to move educators to the next level of their salary schedule. HB
3646 did not mandate raises for all other employees. However, the Board of Trustees voted to give all employees
other than those eligible for the mandated raise a one-year compensation adjustment equal to 2% of their annual base
salary. This payment terminated at the end of the 2010 year. 80 positions have been added temporarily through
federal ARRA grants that will be available through September 2011.
Professional and contracted services, recorded primarily in the Plant Maintenance functional category, increased by
$7.6 million, or 99%. This increase was primarily due to increases for new projects that occurred throughout the
District related to the 2009 bond election. In November of 2009 AISD voters approved a $197.5 million bond package
to pay for new construction, building maintenance, buses, fine arts instruments and uniforms, and technology
equipment. Projects that occurred in 2010 that affected this functional category involved additions of two science labs
at each high school, construction of replacement classrooms for the classrooms that were turned into science labs, and
various mechanical upgrades, roofing projects and small remodeling projects.
31

Supplies and materials, recorded mainly in the Instruction, Curriculum and Media Services functional categories,
increased by $9 million (or 68%) from last year. The increase is due mainly to the following items: General supplies
increased $3.5 million for bond projects and federal ARRA grants; books increased $2.2 million for ARRA grants;
and exception assets increased $3.5 million for bond technology items.
Table IV presents the total costs of the District’s largest programs as well as the net costs (total costs less fees
generated by the activities and operating grants) of those programs. The net cost is the financial burden that was borne
by the District’s taxpayers for each of these functions.
The cost of all governmental activities this year was $538.9 million compared to $513.4 million last year. As shown in
the Statement of Activities on pages 44 - 45 the amount that our taxpayers ultimately financed for these activities
through District taxes was $257 million (or 48%). The remaining costs were paid by state aid ($157.3 million), those
who directly benefited from the programs ($3 million), other governments and organizations that subsidized certain
programs with grants and contributions ($106.3 million), and miscellaneous other revenues ($10.3 million).
Table IV
Arlington Independent School District
COSTS OF SELECTED GOVERNMENTAL ACTIVITIES
in thousands
Total Costs
Function 2010 2009
Net Costs
%
Change 2010 2009
%
Change
11 Instruction $333,614 $319,107 5% $254,920 $274,369 (7)%
23 School Leadership 26,025 25,854 1 24,488 24,187 1
51 Plant Maintenance 55,179 49,625 11 48,891 47,519 3
Business-type Activities. The only business-type activity operated by the District is its food service operation. Food
Service revenues were $27.3 million and expenses were $25.3 million. Business-type activities increased net assets by
$2 million. This increase is significant to the overall operations of the District and represents important services to our
students through food service operations.
The food service operation derives its revenues from two main sources – meal sales and federal Child Nutrition
Program funding (see graph at Figure 3 below). Breakfast and lunch sales generated $6.6 million in revenues during
the year. Revenues from the National School Lunch, School Breakfast, Snack and Commodities programs totaled
$20.4 million. The balance of revenue was generated through state matching funds ($192,910), catering operations
($147,155), and miscellaneous other revenues ($21,590).
Figure 3
32

Total revenues (operating and non-operating) increased by about $1.6 million over last year. Presumably due to the
ongoing downturn in the economy, the District has seen an increase in the number of meals that qualify for federal
reimbursements as more students become eligible for the National School Lunch and Breakfast programs. Revenues
grew in 2009-10 because the number of meals served that qualified for these programs increased and because the price
for regular, full-priced lunches increased to keep pace with rising costs for food. This was the first increase in meal
prices in five years.
Total operating expenses were $1.4 million higher than last year. Payroll costs increased due to the 2% one-time
compensation payment that all locally funded employees received. Food costs likewise increased because the District
was not able to secure lower pricing for food products and commodities processing compared to the contracts that were
secured the previous year.
THE DISTRICT’S FUNDS
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements, bond covenants, and segregation for particular purposes.
Governmental funds. The focus of the District’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing
requirements. In particular, unreserved and undesignated fund balance may serve as a useful measure of the District’s
net resources available for spending at the end of a fiscal year.
As the District completed the year, its governmental funds (as presented in the Balance Sheet on pages 46 - 47)
reported combined fund balances of $173 million, which is $43 million more than last year’s combined fund balances.
Eighty-eight percent of the total amount ($151.9 million) is unreserved fund balance, which is available for spending
at the District’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new
spending because it has already been committed for inventory ($1.5 million), to pay debt service ($10.9 million), to
liquidate contracts and purchase orders of the prior period ($8.7 million).
The General Fund is the chief operating fund of the District. At the end of the current fiscal year, unreserved and
undesignated fund balance of the General Fund was $69.7 million, while the total fund balance was $75.7 million.
The fund balance of the General Fund increased by $1.8 million this year. The primary reasons for that increase mirror
the governmental activities analysis highlighted above. As a measure of the General Fund’s liquidity, it may be useful
to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance
represents 17.4% of total General Fund expenditures, while total fund balance represents 18.9% of that same amount.
The State Fiscal Stabilization Fund is the special revenue fund used to account for federal ARRA funds used by the
state legislature to provide a portion of funding owed to school districts though the state funding system. The state will
use the SFSF funds in lieu of state funds for the 2009-10 and 2010-11 fiscal years. Expenditures of SFSF funds are for
general operating purposes.
The Natural Gas Special Revenue Fund has a total fund balance of $18.4 million at year-end, all of which is reserved
for special projects. Fund balance increased $155,956 over the previous year-end primarily due to natural gas royalties
and interest income received during the year.
The Debt Service Fund has a total fund balance of $10.9 million at year-end, all of which is reserved to service the
District’s outstanding debt. Fund balance decreased by $600,473 from the previous year-end due to a pre-planned
decision by the Board to use a small portion of fund balance to make the debt payment in order to prevent the debt
service tax rate from increasing.
The Capital Projects Fund ended the current fiscal year with a fund balance of $67.4 million. Of this total, $7.2
million is reserved to liquidate contracts and purchase orders of the prior period for projects related to the bond
program. The remaining $60.2 million is unreserved, undesignated fund balance. Of that amount approximately $38.6
million is from current year bond sales for specific bond projects, and $21.6 million is available for future construction
or to service general obligation debt. The Capital Projects fund balance increased by $45.4 million during the year, the
33

net result of bond sales and project expenditures. Significant projects completed during the year were related to the
bond program and included additions of two science labs at each high school, construction of replacement classrooms
for the classrooms that were turned into science labs, various mechanical upgrades, various roofing projects, several
small remodeling projects and purchases of new technology and band instruments. Although capital expenditures
reduce available fund balances, they create new assets for the District as reported in the Statement of Net Assets and as
discussed in Note IV.F. to the financial statements.
Other Funds, which includes Special Revenue Funds other than the SFSF and Natural Gas Fund, ended the year with a
combined fund balance of $591,708, a decrease of $3.7 million over the previous year. The $3.6 million balance of the
High School Allotment Special Revenue Fund was transferred into the General Fund during the year to reflect an
accounting change enacted by the state legislature. The legislature created the High school Allotment grant program in
2006-07 to improve college readiness and require districts to account for the funds in a special revenue fund. The
legislature merged the High School allotment Fund into the Foundation School Program, which is accounted for in the
General Fund, this year. High School Allotment funds can only be used for goods and services that promote college
readiness; therefore, any balance of these funds is reserved for future program use.
Proprietary funds. As mentioned earlier, the District’s proprietary fund statements provide the same type of
information found in the government-wide financial statements, but in more detail. Net assets of the Enterprise Fund,
which is used to account for the District’s food service operation, were $11.6 million at year-end. Of this total, $6.5
million was unrestricted at year-end. Net assets rose by $2 million over the previous year. Other factors concerning
the finances of the proprietary funds have already been addressed in the discussion of the District’s business-type
activities above.
GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year, the Board of Trustees revised the District’s budget several times. These budget
amendments generally fall into three categories:
1) An amendment in the amount of $1.7 million made shortly after the beginning of the new fiscal year to reappropriate
campus budget allocations not spent at the end of the preceding year (referred to as “carryover
funds”).
2) An amendment in the amount of $1.1 million of additional federal revenue for a School Health and Related
Services (SHARS) payment that was not included in the original budget. The federal SHARS program
reimburses the District for providing eligible services to Medicaid eligible students, as required by the
students’ Individual Education Plan (IEP). This payment was received as a settle-up payment for prior year
services.
3) Changes made to revise estimates of revenues and expenditures based on the latest information on property
valuations, student attendance, interest earnings, and operating costs. The following is a summary of the most
significant amendments in this category:
‣ $700,000 increase in delinquent property tax revenues and in property tax penalty and interest to
reflect actual collection trends in property taxes.
‣ $1 million decrease in investment income to reflect the decline in market rates.
‣ A net increase of $277,770 in the payroll budget because: a) the District was notified after the start of
the year that two major grants awarded by TEA were being reduced by two-thirds of the expected
amount, resulting in the need for additional local funds to cover the costs of substitutes and extra-duty
pay for teachers that were budgeted under the grants; and b) workers’ compensation expenditures were
reduced to reflect lower claim trends and lower reserves required by the insurance company.
‣ An increase of $484,000 in contracted services for fees associated with the audit of prior year property
values, which ultimately resulted in increased state aid for the years that were audited.
‣ A decrease of $400,000 for electricity expenditures to reflect actual trends.
34

The District’s General Fund balance of $75.7 million reported on pages 46 - 47 differs from the final budgetary fund
balance of $62.9 million reported in the budgetary comparison statement on page 53. The difference is largely due to
favorable variances in property taxes, local revenue, Medicaid reimbursements, employee compensation, health
insurance and other benefits, contracted services, general supplies and the other operating costs category:
‣ Property taxes ended the year with a net $225,251 favorable variance because collections of taxes were higher
than anticipated late in the fiscal year.
‣ Local revenue was higher than anticipated by $901,043 due to higher income for rental of facilities, increased
miscellaneous donations to the district, settlements from several lawsuits and higher athletic playoff revenue.
‣ Medicaid payments for the School Health and Related Services (SHARS) program exceeded budget by
$500,000 because payments were received for existing SHARS claims at a higher reimbursement rate than
originally anticipated after the federal government finalized calculations for SHARS filings.
‣ Employee compensation expenditures were less than budget by $1.4 million due to savings in tutoring
compensation, teacher career ladder payments and reductions in part-time/temporary professional services.
‣ Health insurance and other employee benefit expenditures ended the year $2.8 million under budget due to a
lower participation in health insurance, and due to employee benefit expenditures for items such as Medicare
and Teacher Retirement System coming in less than expected.
‣ Contracted services ended the year with a $1.2 million favorable variance because of lower utility costs and
because several planned contracted projects were cancelled prior to starting the project because of a change in
administrative direction, or were not fully completed during the year as originally anticipated.
‣ Supplies and Materials expenditures were $2.0 million less than budget because of successful efforts to
conserve funds in this category. Included in this category are expenditures for technology equipment that does
not meet the $5,000 threshold in the District’s asset capitalization policy. Lowered expenditures for
technology equipment also contributed to this favorable variance.
‣ Campus allotments (budgeted mainly in general supplies) had a year-end balance of $1.4 million that will be
re-appropriated in the 2010-11 fiscal year.
‣ Favorable variances in Other Operating Costs of $1.4 million are primarily due to lower required contributions
to two tax increment finance zones for economic development. Contributions were lower than expected
because property values on which the contributions are based were lower than expected.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2010, the District had $463.3 million invested (net of accumulated depreciation) in a broad range of
capital assets, including facilities and equipment for instruction, transportation, athletics, administration, maintenance,
and food service (see Table V below).
Table V
Arlington Independent School District
CAPITAL ASSETS
(Net of Depreciation, In Thousands)
Governmental
Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Land $ 59,216 $ 59,080 $ 401 $ 401 $ 59,617 $ 59,481
Buildings & Improvements 390,247 399,425 2,873 2,958 393,120 402,383
Furniture & Equipment 8,509 9,842 1,799 1,492 10,308 11,334
Capital Leases 218 76 0 2 218 78
Totals $458,190 $468,423 $ 5,073 $ 4,853 $463,263 $473,276
35

In November 2009 AISD voters approved a $197.5 million bond package to pay for new construction, building
maintenance, buses, fine arts instruments and uniforms, and technology equipment. The capital items approved in the
bond package are expected to provide for the District’s facilities needs through at least the year 2015. The 2009-10
Capital Projects Fund budget was amended in the Spring of 2010 to reflect bond proceeds and project expenditures that
were realized during the year. Bond projects started in 2010 included:
Addition of two science labs at each high school and replacement
of the classrooms that were converted into science labs $ 6,414,743
Various mechanical upgrades, roofing projects and remodeling
projects throughout the District 13,000,108
Replacement of old technology hardware throughout the District 2,668,637
Purchase of fine arts instruments and uniforms 815,463
$22,898,951
In addition to the 2009 bond projects, this year’s major additions funded through other sources included:
Various small campus additions funded through donations $ 136,901
Equipment purchases including clothes washer for Laundry,
replacement of athletic bleachers at two locations and
buyouts of copy machines at several locations, all funded
through general operating funds 128,617
Purchase of portable buildings, preliminary design work on high
school science labs and equipment replacement from loss due
to fire damage at one location, all funded with interest earnings
from a prior bond issue 678,315
$ 943,833
Going forward, an additional $66.5 million of bonds will be sold during 2010-11, and work will begin on approved
bond projects during the year. The fiscal year 2011 Construction Fund budget does not include any revenues or
expenditures related to the additional bonds to be sold during the year since the budget was adopted before the bonds
were sold. The budget will be amended during the year to reflect the bond proceeds and project expenditures that will
be realized during the 2010-11 year.
Other maintenance projects and additional construction needs beyond those items included in the 2009 bond package
may be identified during the year. These additional needs will be considered on a case-by-case basis. If necessary,
Construction Fund balance could be used to pay for identified projects, in which case the Construction Fund budget
would be amended during the year to appropriate fund balance for these purposes. More detailed information about
the District’s capital assets is presented in Note IV.F. to the financial statements.
Debt
At year-end, the District had total debt outstanding of $464.3 million versus $424 million last year – an increase of
9.5% (see Table VI). General obligation bonds make up $457.3 million of the total outstanding debt balance at yearend.
The increase is the net result of scheduled debt retirements and the issuance of new bonds. AISD voters
approved a $197.5 million bond package in November 2009. $65.8 million of that authorization was issued during the
year, leaving $131.7 of bonds authorized for future issuance. In addition, the District did refund (or refinance) during
the year $12.5 million of general obligation bonds that had been issued in 1997, 1999, and 2001 to take advantage of
lower interest rates. By refinancing the debt, the District will save $0.8 million in interest costs over the next fourteen
years.
36

Table VI
Arlington Independent School District
OUTSTANDING DEBT
in thousands
Governmental
Business-type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Bonds Payable $450,540 $412,879 $ $ $450,540 $412,879
Bond Premiums 16,149 17,123 16,149 17,123
Refunding Deferral (9,347) (10,042) (9,347) (10,042)
Capital Leases 206 240 11 206 251
Accrued Service Benefits 1,388 1,488 1,388 1,488
Note Payable 5,400 2,274 5,400 2,274
Totals $464,336 $423,962 $ $ 11 $464,336 $423,973
Moody’s Investor Service, Inc. rates the District’s general obligation bonds Aa1. Bonds that are rated Aa1 are judged
to be of very high quality by all standards.
State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its total
assessed property valuation. The current debt limitation for the District is $1,635,960,958 which significantly exceeds
the District’s outstanding general obligation debt.
Other obligations include capital leases, accrued service benefits, a note payable and rebatable arbitrage. More
detailed information about the District’s long-term liabilities is presented in Note IV.G. to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The District’s elected and appointed officials considered many factors when setting the 2010-11 general operating
budget and tax rates. Four main issues influenced the 2010-11 budget development – a recurring deficit from the prior
year, the state school finance system, employee compensation, and fund balance. Each of these issues is discussed in
detail below.
1) Recurring Deficit from Prior Year Budget. The 2010-11 budget began with a $12.1 million deficit approved
in last year’s budget. The 2009-10 budget deficit was mainly due to a combination of revenue limitations
imposed by the state funding system and the salary increase granted that year, but was also impacted by rising
costs in virtually all other categories. Surplus fund balance was used to cover the deficit. Salaries are
recurring expenditures, so those same costs occur again in all subsequent years. Unless revenues increase
and/or expenditures decrease in the following year, a deficit that is approved in one year because of recurring
expenditures will inherently exist in the new-year budget. Given the revenue constraints imposed by the
legislature, as expenses increase and revenues stay virtually the same each year, the deficit will continue to
grow.
The 2010-11 budget does contain a larger deficit than the 2009-10 budget. The deficit grew primarily because
state mandated pay raises were given to certain employees and a Board approved pay raise was granted for all
employees. Pay raises are discussed in more detail below. In addition to increases for payroll, the budget
reflects increases for instructional supplies and materials (including textbooks).
2) State School Finance System. The state school finance system imposes revenue caps that hold districts to a
fixed total amount of revenue per student, achieved through a combination of state aid and local property
taxes. The system severely limits a district’s ability to sustain service levels without obtaining voter approval
for a tax increase, cutting the budget or incurring a deficit that has to be covered by fund balance.
37

The state school finance system was overhauled by the state legislature in 2009 when House Bill 3646 was
passed, which resulted in additional state revenue for the District. However, employee pay raises for educators
were also mandated in HB 3646, which consumed approximately 60% of the revenue gains provided by the
bill. Districts were required to give additional pay raises for educators in 2010, which further depleted the
gains. The mandated pay raises are explained in further detail below.
3) Employee Compensation. Employee compensation is always a major consideration in the development of the
annual operating budget, and this year was no different. Federal No Child Left Behind provisions require that
classroom teachers and teaching assistants be “highly qualified,” meaning they have satisfied prescribed
education and training standards for the subject and grade level they teach. Area school districts compete for
the same pool of highly qualified teachers, so salaries must be competitive in order to attract and retain highly
qualified teachers.
For 2010-11, HB 3646 required school districts to use a portion of their funding gain from the bill to give
educators (defined as teachers, counselors, librarians, nurses and speech pathologists) a state-mandated “step
increase” to the next level of their salary schedule. In addition to the state-mandated increase, the Board opted
to give an additional 1% raise. The combination of the step increase and the 1% raise cost $5,008,664 and
resulted in an average raise of 2.09% for educators. Employees other than educators received a 3% increase in
their base pay. Last year, in lieu of a salary increase, these employees received a 2% one-time compensation
adjustment that was paid as a stipend throughout the 2009-10 fiscal year. The 2% stipend was rolled into base
salary (at no additional cost to the budget in 2010-11), and employees received an additional 1% salary
increase. The combination of these two changes resulted in a total base salary increase of 3%. $747,051 was
added to the budget for the 1% salary increase.
4) Fund Balance. Fund balance played a critical role in the 2010-11 budget development. Given the revenue
caps implemented with the school finance rules, many districts are facing difficult budget decisions. The rules
provide limited options for generating new revenues. Districts must seek voter approval to raise their M&O
tax rate, cut existing programs, and/or spend fund balance to balance their budgets.
Fund balance is projected to be $70.8 million at the start of the 2010-11 fiscal year. The 2010-11 budget
deficit of $13.4 million will be taken from fund balance, so fund balance is expected to equal $57.5 million at
year end. Two different measures are generally used to evaluate the strength of a district’s fund balance –
TEA’s “optimum” fund balance and a credit rating standard. Both measures want a district’s fund balance to
equal at least two months of operating expenses. Additionally, TEA wants districts to have enough money in
fund balance to cover fund balance reserves and fall cash flow deficits.
TEA considers a district’s fund balance to be adequate if it falls within a range that is 50% below to 50%
above the optimum amount. TEA will only consider funds available in the General Fund when evaluating fund
balance strength. Optimum fund balance is projected to be $73.7 million at August 31, 2011. Given this
calculation, the District’s projected fund balance falls within the range that TEA considers acceptable.
Credit rating agencies consider a district’s fund balance to be adequate if it exceeds two months of operating
expenditures, and they will take into account all resources available for general operations, including those in
Special Revenue Funds. AISD has $18.4 million available in a Special Revenue Fund that is used to account
for the proceeds from natural gas leases. Those funds are slated to be used for special projects, but they could
be used for general operations if necessary, so the credit rating agencies will include them in their evaluation
of AISD’s fund balance. Two months of operating expenditures are projected to be $68.9 million for 2010-11.
Given this amount, the District’s combined available fund balance exceeds two months of operating
expenditures.
Generally, it is not considered good practice to spend fund balance on recurring expenditures such as payroll.
However, given the large surplus of fund balance, some limited use of fund balance for recurring expenditures
is appropriate and is actually prudent instead of asking voters for permission to levy a higher M&O tax rate.
The Board voted to use surplus fund balance to cover the budget deficit of $13.4 million for 2010-11.
38

Current fund balance can sustain the budget for the foreseeable future without dropping below the levels that
the State and bond rating agencies consider safe for the District. The District will prioritize future funding
needs against available revenue sources and will monitor fund balance levels. The tax rate will be increased
and/or the budget will be cut when necessary to balance expenditures against available revenues.
The 2010-11 budget reflects changes necessitated by the issues discussed above. Otherwise, existing programs and
service levels were maintained in the budget at last year’s levels. A summary of the 2010-11General Operating budget
is presented in Table VII below.
Table VII
Arlington Independent School District
Summary of General Operating Fund Budget
2010-11
Original
Budget
2009-10
Original
Budget
Change
From
2009-10
Fund
Revenues & Other Resources $429,983,728 $426,561,667 $ 3,422,061
Expenditures & Other Uses 443,340,021 438,635,549 4,704,472
Budgeted Surplus/(Deficit) (13,356,293) (12,073,882) (1,282,411)
Beginning Fund Balance 70,840,339* 73,949,705* (3,109,366)
Ending Fund Balance $ 57,484,046* $ 61,875,823* $(4,391,777)
* Projected as of date the 2010-11 budget was adopted
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general
overview of the District’s finances and to show the District’s accountability for the money it receives. If you have
questions about this report or need additional financial information, please contact the Finance Department at
Arlington Independent School District, 1203 W. Pioneer Parkway, Arlington, Texas, 76013.
39

BASIC FINANCIAL STATEMENTS
41

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Net Assets
August 31, 2010
Exhibit A-1
Data
Control Governmental Business-Type
Codes Activities Activities Total
Assets
1110 Cash and cash equivalents $ 185,087,795 $ 6,207,656 $ 191,295,451
1210 Property taxes receivable - current 3,279,219 3,279,219
1220 Property taxes receivable - delinquent 12,116,024 12,116,024
1230 Allowance for uncollectible taxes (7,103,105) (7,103,105)
1240 Due from other governments 19,815,720 701,189 20,516,909
1260 Internal balances 1,353,418 (1,353,418)
1290 Other receivables 710,882 14,813 725,695
1300 Inventories 1,509,411 2,110,653 3,620,064
1410 Prepaid expenses 196,413 196,413
1420 Debt issuance costs, net of amortization 2,853,658 2,853,658
1490 Other current assets 253,000 253,000
Capital assets:
1510 Land 59,216,458 401,223 59,617,681
1520 Buildings and improvements, net 390,246,888 2,873,303 393,120,191
1530 Furniture and equipment, net 8,508,749 1,798,957 10,307,706
1550 Leased property under capital leases, net 218,064 218,064
1000 Total assets 678,262,594 12,754,376 691,016,970
Liabilities
2110 Accounts payable 6,861,427 557,419 7,418,846
2140 Accrued interest payable 929,474 929,474
2150 Payroll deductions and withholdings payable 5,992,005 5,992,005
2160 Accrued wages payable 14,570,363 293,283 14,863,646
2180 Due to other governments 33,108 33,108
2200 Accrued expenses 5,982,299 5,982,299
2300 Unearned revenues 298,776 388,445 687,221
Long-term liabilities:
2501 Due within one year 39,293,696 39,293,696
2502 Due in more than one year 426,567,308 426,567,308
2000 Total liabilities 500,528,456 1,239,147 501,767,603
Net assets
3200 Invested in capital assets, net of related debt 147,771,497 5,073,483 152,844,980
3820 Restricted for federal and state programs 591,708 591,708
3850 Restricted for debt service 11,514,055 11,514,055
3900 Unrestricted net assets 17,856,878 6,441,746 24,298,624
3000 Total net assets $ 177,734,138 $ 11,515,229 $ 189,249,367
The notes to the basic financial statements are an integral part of this statement.
43

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Activities
For the Year Ended August 31, 2010
Program Revenues
Data 1 3 4
Control
Operating
Codes Charges for Grants and
Expenses Services Contributions
Governmental activities:
11 Instruction $ 333,613,428 $ 1,035,636 $ 77,658,106
12 Instructional resources and media services 7,124,969 1,025,127
13 Curriculum and instructional staff development 9,817,622 6,342,096
21 Instructional leadership 7,370,271 14,995 2,190,401
23 School leadership 26,025,054 1,536,763
31 Guidance, counseling, and evaluation services 21,797,944 3,996,527
32 Social work services 2,402,024 608,186
33 Health services 5,221,341 449,808
34 Pupil transportation 11,221,782 36,787 541,892
35 Food services 527,576 731,669
36 Cocurricular/extracurricular activities 8,834,971 890,184 393,765
41 General administration 7,344,859 948,536
51 Plant maintenance and operations 55,179,227 842,692 5,445,418
52 Security and monitoring services 5,272,936 206,581
53 Data processing services 7,559,353 13,842 724,578
61 Community services 3,615,273 147,149 3,539,903
72 Debt service - interest on long-term debt 19,288,178
95 Payments to Juvenile Justice Alternative Ed. Program 402,500
97 Payments to Tax Increment Fund 4,676,718
99 Other intergovernmental charges 1,592,312
[TG] Total governmental activities 538,888,338 2,981,285 106,339,356
Business-type activities:
35 Food services 25,344,736 6,913,729 20,385,549
[TB] Total business-type activities 25,344,736 6,913,729 20,385,549
[TP] Total primary government: $ 564,233,074 $ 9,895,014 $ 126,724,905
Data
Control
Codes
MT
DT
SF
GC
IE
MI
FR
TR
CN
NB
PA
NE
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt services
State aid - formula grants - not restricted
Grants and contributions - not restricted
Investment earnings
Miscellaneous local and intermediate revenue - not restricted
Transfers (out) in
Total general revenues and transfers
Change in net assets
Net assets - beginning
Prior period adjustments
Net assets - ending
The notes to the basic financial statements are an integral part of this statement.
44

Exhibit B-1
Net (Expense) Revenue and
Changes in Net Assets
Governmental Business-Type
Activities Activities Total
$ (254,919,686) $ $ (254,919,686)
(6,099,842) (6,099,842)
(3,475,526) (3,475,526)
(5,164,875) (5,164,875)
(24,488,291) (24,488,291)
(17,801,417) (17,801,417)
(1,793,838) (1,793,838)
(4,771,533) (4,771,533)
(10,643,103) (10,643,103)
204,093 204,093
(7,551,022) (7,551,022)
(6,396,323) (6,396,323)
(48,891,117) (48,891,117)
(5,066,355) (5,066,355)
(6,820,933) (6,820,933)
71,779 71,779
(19,288,178) (19,288,178)
(402,500) (402,500)
(4,676,718) (4,676,718)
(1,592,312) (1,592,312)
(429,567,697) (429,567,697)
1,954,542 1,954,542
1,954,542 1,954,542
(429,567,697) 1,954,542 (427,613,155)
209,744,123 209,744,123
47,297,808 47,297,808
157,265,155 157,265,155
4,892,850 4,892,850
451,996 12,228 464,224
4,858,323 4,858,323
(92,255) 92,255
424,418,000 104,483 424,522,483
(5,149,697) 2,059,025 (3,090,672)
185,709,177 9,456,204 195,165,381
(2,825,342) (2,825,342)
$ 177,734,138 $ 11,515,229 $ 189,249,367
45

Data 10 50 60
Control
Codes General Debt Service Capital Projects
Fund Fund Fund
Assets
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Balance Sheet
Governmental Funds
August 31, 2010
1110 Cash and cash equivalents $ 77,060,720 $ 10,891,924 $ 71,064,693
1210 Property taxes receivable - current 2,681,122 598,097
1220 Property taxes receivable - delinquent 10,088,892 2,027,132
1230 Allowance for uncollectible taxes (5,801,550) (1,301,555)
1240 Due from other governments 6,353,561 113,053
1260 Due from other funds 16,976,725 114,878
1290 Other receivables 578,808
1300 Inventories 1,509,411
1410 Deferred expenditures 50,000
1000 Total assets $ 109,497,689 $ 12,443,529 $ 71,064,693
Liabilities and fund balances
Liabilities:
2110 Accounts payable $ 3,188,770 $ $ 2,985,315
2150 Payroll deductions and withholdings payable 5,992,005
2160 Accrued wages payable 14,570,363
2170 Due to other funds 1,631,836 638,145
2180 Due to other governments
2200 Accrued expenditures 396,747
2300 Unearned revenues 16,690
2310 Deferred revenues 7,981,452 1,550,527
2000 Total liabilities 33,777,863 1,550,527 3,623,460
Fund balances:
Reserved for:
3410 Investments in inventory 1,509,411
3420 Retirement of long-term debt 10,893,002
3440 Outstanding encumbrances 1,376,318 7,212,480
Unreserved designated for:
3590 High School Allotment 3,092,635
Unreserved and undesignated:
3600 Reported in the general fund 69,741,462
3610 Reported in special revenue funds
3620 Reported in capital projects funds 60,228,753
3000 Total fund balances 75,719,826 10,893,002 67,441,233
4000 Total liabilities and fund balances $ 109,497,689 $ 12,443,529 $ 71,064,693
The notes to the basic financial statements are an integral part of this statement.
46

Exhibit C-1
ARRA Natural Gas Other Total
Title XIV Special Revenue Governmental Governmental
SFSF Fund Funds Funds
$ $ 18,331,840 $ 2,050,448 $ 179,399,625
3,279,219
12,116,024
(7,103,105)
3,039,886 10,624,400 20,130,900
791,344 17,882,947
122,669 9,405 710,882
1,509,411
50,000
$ 3,039,886 $ 18,454,509 $ 13,475,597 $ 227,975,903
$ $ $ 543,382 $ 6,717,467
5,992,005
14,570,363
3,039,886 5,151 12,025,313 17,340,331
33,108 33,108
396,747
282,086 298,776
9,531,979
3,039,886 5,151 12,883,889 54,880,776
1,509,411
10,893,002
131,285 8,720,083
3,092,635
69,741,462
18,449,358 460,423 18,909,781
60,228,753
18,449,358 591,708 173,095,127
$ 3,039,886 $ 18,454,509 $ 13,475,597 $ 227,975,903
47

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets
August 31, 2010
Exhibit C-2
Total Fund Balances - Governmental Funds $ 173,095,127
The District uses an internal service fund to charge the costs of workers' 1,022,463
compensation insurance to appropriate functions in other funds. The assets and
liabilities of the internal service fund are included in governmental activities in the
statement of net assets. The net effect of this consolidation is to increase net assets.
Capital assets used in governmental activities are not financial resources and 46,111,504
therefore are not reported in governmental funds. At the beginning of the year, the
cost of these assets was $769,654,428 and the accumulated depreciation was
$301,230,933. In addition, long-term liabilities, including bonds payable, are not due
and payable in the current period, and therefore are not reported as liabilities in the
funds. The net effect of including the beginning balances for capital assets (net of
depreciation) and long-term debt in the governmental activities is to increase net
assets.
Current year capital outlays and long-term debt principal payments are expenditures (33,440,559)
in the fund financial statements, but they should be shown as increases in capital
assets and reductions in long-term debt in the government-wide financial statements.
Also, governmental funds report the effect of premiums/discounts and issuance
costs related to debt issuance as revenue and expense in the year of the issue,
whereas these amounts are deferred and amortized in the government-wide financial
statements. The net effect of including current year capital outlays, debt principal
payments, and related amortization is to decrease net assets.
The 2010 depreciation expense increases accumulated depreciation. The net effect (18,732,789)
of the current year's depreciation is to decrease net assets.
Various other reclassifications and eliminations are necessary to convert from the 9,678,392
modified accrual basis of accounting to accrual basis of accounting. These include
recognizing deferred revenue as revenue, removing collections for prior years' tax
levy from revenue, and removing expenditures for prepaid items. The net effect of
these reclassifications and recognitions is to increase net assets.
Net Assets of Governmental Activities $ 177,734,138
The notes to the basic financial statements are an integral part of this statement.
49

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended August 31, 2010
Data 10 50 60
Control
Codes General Debt Service Capital Projects
Fund Fund Fund
Revenues
5700 Total local and intermediate sources $ 215,441,505 $ 47,205,822 $ 692,089
5800 State program revenues 180,200,696
5900 Federal program revenues 3,017,025
5020 Total revenues 398,659,226 47,205,822 692,089
Expenditures
Current:
0011 Instruction 255,295,091 3,139,559
0012 Instructional resources and media services 6,118,136
0013 Curriculum and instructional staff development 3,353,685
0021 Instructional leadership 5,237,540
0023 School leadership 24,717,408
0031 Guidance, counseling, and evaluation services 17,962,758
0032 Social work services 1,902,677
0033 Health services 4,810,227
0034 Pupil transportation 10,658,930
0035 Food services
0036 Cocurricular/extracurricular activities 8,317,109 44,668
0041 General administration 6,553,906
0051 Plant maintenance and operations 37,395,636 11,962,671
0052 Security and monitoring services 5,033,119 213,186
0053 Data processing services 6,873,268 304,797
0061 Community services 92,658
Debt service:
0071 Debt service - principal on long-term debt 475,288 28,395,000
0072 Debt service - interest on long-term debt 31,125 19,400,095
0073 Debt service - bond issuance cost and fees 11,200 457,527
Capital outlay:
0081 Facilities acquisition and construction 168,483 7,543,519
Intergovernmental:
0095 Payments to Juvenile Justice Alternative Ed. Program 402,500
0097 Payments to Tax Increment Fund 4,676,718
0099 Other intergovernmental charges 1,592,312
6030 Total expenditures 401,668,574 47,806,295 23,665,927
1100 Excess (deficiency) of revenues over (under) expenditures (3,009,348) (600,473) (22,973,838)
Other financing sources (uses)
7911 Capital related debt issued (regular bonds) 65,755,000
7912 Sale of real and personal property 917,386
7913 Capital leases 219,578
7914 Loan issuance 974,566
7915 Transfers in 3,585,325
7916 Premium on issuance of bonds 1,748,110
8911 Transfers out
7080 Total other financing sources 4,779,469 68,420,496
1200 Net change in fund balances 1,770,121 (600,473) 45,446,658
0100 Fund balance - September 1 (beginning) 73,949,705 11,493,475 21,994,575
3000 Fund balance - August 31 (ending) $ 75,719,826 $ 10,893,002 $ 67,441,233
The notes to the basic financial statements are an integral part of this statement.
50

Exhibit C-3
ARRA Natural Gas Other Total
Title XIV Special Revenue Governmental Governmental
SFSF Fund Funds Funds
$
$ 298,940 $ 64,092 $ 263,702,448
7,268,336 187,469,032
34,192,901
43,455,368 80,665,294
34,192,901 298,940 50,787,796 531,836,774
28,853,199 34,000,915 321,288,764
1,805 722,795 6,842,736
11,271 6,287,001 9,651,957
399 1,918,162 7,156,101
102,568 55,340 24,875,316
321,806 2,672,496 20,957,060
499,421 2,402,098
183,138 4,993,365
55,760 10,714,690
639,414 639,414
385 108,651 8,470,813
355,735 142,984 7,052,625
4,174,262 106,136 53,638,705
5,246,305
371,471 39,294 7,588,830
3,522,615 3,615,273
28,870,288
19,431,220
468,727
7,712,002
402,500
4,676,718
1,592,312
34,192,901 142,984 50,811,138 558,287,819
155,956 (23,342) (26,451,045)
65,755,000
917,386
219,578
974,566
3,585,325
1,748,110
(3,677,580) (3,677,580)
(3,677,580) 69,522,385
155,956 (3,700,922) 43,071,340
18,293,402 4,292,630 130,023,787
$ $ 18,449,358 $ 591,708 $ 173,095,127
51

Exhibit C-4
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities
For the Year Ended August 31, 2010
Total Net Change in Fund Balances - Governmental Funds $ 43,071,340
The District uses an internal service fund to charge the cost of workers' 13,867
compensation insurance to appropriate functions in other funds. The net income of
the internal service fund is reported with governmental activities. The net effect of
this consolidation is to increase net assets.
Current year capital outlays and long-term debt principal payments are expenditures (30,615,217)
in the fund financial statements, but they are shown as increases in capital assets
and reductions in long-term debt in the government-wide financial statements. Also,
governmental funds report the effect of premiums/discounts and issuance costs
related to the debt issuance as revenue and expense, whereas these amounts are
deferred and amortized in the government-wide financial statements. The net effect
of removing current year capital outlays, debt principal payments, and recording
amortization is to decrease net assets.
Depreciation is not recognized as an expense in governmental funds since it does not (18,732,789)
require the use of current financial resources. The net effect of the current year's
depreciation is to decrease net assets.
Various other reclassifications and eliminations are necessary to convert from the 1,113,102
modified accrual basis of accounting to accrual basis of accounting. These include
recognizing deferred revenue as revenue, removing collections for prior years' tax
levy from revenue, and removing expenditures for prepaid items. The net effect of
these reclassifications and recognitions is to increase net assets.
Change in Net Assets of Governmental Activities $ ( 5,149,697)
The notes to the basic financial statements are an integral part of this statement.
52

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
General Fund
For the Year Ended August 31, 2010
Exhibit C-5
Data
Variance with
Control
Final Budget
Codes Budgeted Amounts Actual Amounts Positive or
Original Final (GAAP Basis) (Negative)
5700
Revenues
Total local and intermediate sources $ 214,658,965 $ 214,390,351 $ 215,441,505 $ 1,051,154
5800 State program revenues
210,464,692 180,708,041 180,200,696 (507,345)
5900 Federal program revenues 1,438,010 2,520,460 3,017,025 496,565
5020 Total revenues 426,561,667 397,618,852 398,659,226 1,040,374
Expenditures
Current:
0011 Instruction 285,514,040 258,585,301 255,295,091 3,290,210
0012 Instructional resources and media services 6,213,753 6,306,598 6,118,136 188,462
0013 Curriculum and instructional staff development 2,590,763 3,586,234 3,353,685 232,549
0021 Instructional leadership 5,165,739 5,468,430 5,237,540 230,890
0023 School leadership
25,219,998 25,105,513 24,717,408 388,105
0031 Guidance, counseling, and evaluation services 19,022,575 18,548,293 17,962,758 585,535
0032 Social work services
1,773,019 2,048,938 1,902,677 146,261
0033 Health services 4,835,503 4,899,402 4,810,227 89,175
0034 Pupil transportation 10,892,352 10,941,775 10,658,930 282,845
0036 Cocurricular/extracurricular activities 8,165,536 8,425,203 8,317,109 108,094
0041
0051
0052
0053
0061
General administration 6,314,169 7,143,942 6,553,906 590,036
Plant maintenance and operations 42,789,241 39,532,212 37,395,636 2,136,576
Security and monitoring services 5,223,129 5,291,029 5,033,119 257,910
Data processing services 7,885,661 7,414,449 6,873,268 541,181
Community services 101,034 128,461 92,658 35,803
Debt service:
0071 Debt service - principal on long-term debt
767,360 686,236 475,288 210,948
0072 Debt service - interest on long-term debt 23,678 54,803 31,125 23,678
Capital outlay:
0081 Facilities acquisition and construction 320,240 168,483 151,757
Intergovernmental:
0095 Payments to Juvenile Justice Alt. Ed. Program 390,000 565,000 402,500 162,500
0097 Payments to Tax Increment Fund 4,074,291 6,074,421 4,676,718 1,397,703
0099 Other intergovernmental charges 1,673,708 1,673,708 1,592,312 81,396
6030 Total expenditures 438,635,549 412,800,188 401,668,574 11,131,614
1100 Excess (deficiency) of revenues over expenditures (12,073,882) (15,181,336) (3,009,348) 12,171,988
7913
Other financing sources
Capital leases 219,578 219,578
7914 Loan issuance 330,000 974,566 644,566
7915 Transfers in
3,585,325 3,585,325
7080 Total other financing sources 4,134,903 4,779,469 644,566
1200 Net change in fund balance (12,073,882) (11,046,433) 1,770,121 12,816,554
0100 Fund balance - September 1 (beginning) 73,949,705 73,949,705 73,949,705
3000 Fund balance - August 31 (ending) $ 61,875,823 $ 62,903,272 $ 75,719,826 $ 12,816,554
The notes to the basic financial statements are an integral part of this statement.
53

Exhibit D-1
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Net Assets
Proprietary Funds
August 31, 2010
Assets
Current assets:
Enterprise
Fund
Internal
Service Fund
Cash and cash equivalents $ 6,207,656 $ 5,688,170
Due from other governments 701,189
Due from other funds 725,614
Other receivables 14,813
Inventories 2,110,653
Other current assets 253,000
Total current assets 9,034,311 6,666,784
Noncurrent assets:
Capital assets:
Land 401,223
Buildings and improvements 3,826,952
Furniture and equipment 4,629,542
Less accumulated depreciation (3,784,234)
Total noncurrent assets 5,073,483
Total assets 14,107,794 6,666,784
Liabilities
Current liabilities:
Accounts payable 557,419 143,960
Accrued wages payable 293,283
Accrued expenses 5,585,548
Due to other funds 1,268,231
Unearned revenues 388,445
Total current liabilities 2,507,378 5,729,508
Net assets
Invested in capital assets, net of related debt 5,073,483
Unrestricted net assets 6,526,933 937,276
Total net assets 11,600,416 $ 937,276
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds (85,187)
Net assets of business-type activities $ 11,515,229
The notes to the basic financial statements are an integral part of this statement.
54

Operating revenues:
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended August 31, 2010
Enterprise
Fund
Exhibit D-2
Internal
Service Fund
Local and intermediate sources $ 6,720,819 $ 1,807,147
State program revenues 192,910
Total operating revenues 6,913,729 1,807,147
Operating expenses:
Payroll costs
10,196,995 1,807,147
Professional and contract services 1,506,683
Supplies and materials 13,134,643
Other operating costs 153,204
Depreciation 349,699
Total operating expenses 25,341,224 1,807,147
Operating loss (18,427,495)
Nonoperating revenues (expenses):
National school breakfast program 4,076,237
National school lunch program 14,694,255
Donated commodities (USDA) 1,615,057
Earnings from temporary deposits and investments 12,228 14,911
Interest expense (4,556)
Total nonoperating revenues 20,393,221 14,911
Income before transfers 1,965,726 14,911
Transfers in 92,255
Change in net assets 2,057,981 14,911
Total net assets - September 1 (beginning) 9,542,435 922,365
Total net assets - August 31 (ending) $ 11,600,416 $ 937,276
Change in net assets $ 2,057,981
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds 1,044
Change in net assets of business-type activities on Exhibit B-1 $ 2,059,025
The notes to the basic financial statements are an integral part of this statement.
55

Exhibit D-3
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Cash Flows
Proprietary Funds
For the Year Ended August 31, 2010
Enterprise Internal
Fund Service Fund
Cash flows from operating activities:
Cash received from user charges $ 6,721,034 $ 1,010,632
Cash received from outside sources 192,910
Cash payments for insurance claims (1,562,285)
Cash payments to suppliers (11,766,043)
Cash payments for other operating expenses (287,065)
Cash payments to employees for services (10,157,744)
Net cash used for operating activities (15,296,908) (551,653)
Cash flows from noncapital financing activities:
Federal funding of child nutrition programs 18,632,985
Transfers in 92,255
Net cash provided by noncapital financing activities 18,725,240
Cash flows from capital and related financing activities:
Acquisitions of capital assets (569,735)
Principal paid on capital leases (10,585)
Interest paid on capital leases (4,556)
Net cash used for capital and related financing activities (584,876)
Cash flows from investing activities:
Interest and dividends on investments 12,228 14,911
Net increase in cash and cash equivalents 2,855,684 (536,742)
Cash and cash equivalents at beginning of the year 3,351,972 6,224,912
Cash and cash equivalents at end of the year $ 6,207,656 $ 5,688,170
Reconciliation of operating loss to net cash (used for)
provided by operating activities:
Operating loss $ (18,427,495) $
Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation 349,699
Donated commodities used 1,737,824
Effect of increases and decreases in current
assets and liabilities:
Decrease in other receivables 215
Increase in inventories (369,224)
Decrease in other current assets 7,000 37,000
Increase in accounts payable 91,959 52,809
Increase in accrued expenses 39,251 192,053
Increase (decrease) in due to other funds 1,273,863 (833,515)
Net cash used for operating activities $ (15,296,908) $ (551,653)
Noncash investing, capital, and financing activities:
USDA commodity donations $ 1,615,057
The notes to the basic financial statements are an integral part of this statement.
56

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Fiduciary Assets and Liabilities
Fiduciary Fund
August 31, 2010
Exhibit E-1
Agency
Funds
Assets
Cash and cash equivalents $ 4,121,666
Total assets $ 4,121,666
Liabilities
Accounts payable $ 194,219
Due to student groups 3,927,447
Total liabilities $ 4,121,666
The notes to the basic financial statements are an integral part of this statement.
57

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Arlington Independent School District (“District”) is a public education agency operating under the applicable laws
and regulations of the State of Texas. The District prepares its basic financial statements in conformity with
generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (“GASB”)
and other authoritative sources identified in Statement on Auditing Standards No. 69 of the American Institute of
Certified Public Accountants; and it complies with the requirements of the appropriate version of the Financial
Accountability System Resource Guide, issued by the Texas Education Agency (“TEA”), and the requirements of
contracts and grants of agencies from which it receives funds.
A. Reporting Entity
The Board of Trustees (“Board”), a seven member group, has governance responsibilities over all activities
related to public elementary and secondary education in the City of Arlington and portions of the Cities of
Grand Prairie and Dalworthington Gardens, and the Town of Pantego. Because members of the Board are
elected by the public, they have the authority to make decisions, appoint administrators and managers, and
significantly influence operations; and they have primary accountability for fiscal matters. The District is not
included in any other governmental “reporting entity” as defined by GASB Statement No. 14, The Financial
Reporting Entity. The District is not financially accountable for any other organizations; therefore, no
component units are included within the reporting entity. The District receives funding from local, state, and
federal government sources and must comply with the requirements of these funding entities.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report
information on all of the nonfiduciary activities of the District. For the most part, the effect of interfund activity
has been removed from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or given
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Interfund activities between governmental funds, and between governmental funds and proprietary funds, appear
in the governmental and proprietary fund financial statements. However, all interfund transactions between
governmental funds have been eliminated on the government-wide statements. Interfund transactions between
governmental funds and internal service funds have not been eliminated to the extent that services have been
provided and used. Interfund transactions remain in the government-wide statements for activities between
governmental funds and proprietary funds.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
It is the District’s procedure to spend funds available from restricted sources prior to unrestricted sources.
58

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
B. Government-wide and Fund Financial Statements (continued)
Major Governmental Funds
General Fund - The General Fund is the District’s general operating fund. It is used to account for all financial
transactions except those required to be accounted for in another fund. Major revenue sources include local
property taxes and state funding under the Foundation School Program. Expenditures include all costs
associated with the daily operations of the schools except for costs incurred by programs accounted for in the
Special Revenue Funds, Capital Projects Fund, Debt Service Fund, and Proprietary Funds. The General Fund is
a budgeted fund, and any fund balances are considered resources available for current operations.
Debt Service Fund - The Debt Service Fund, which is a budgeted fund, accounts for the resources accumulated
and payments made on long-term general obligation debt of government funds. Revenues include collections on
general property taxes, state funding under the Instructional Facilities and Existing Debt Allotments, and
earnings on investments of the fund. Expenditures of the fund are for retirement of bond principal and payment
of interest on bonded debt. The fund balance represents amounts that will be used for retirement of bonds and
payment of interest in the future.
Capital Projects Fund - The Capital Projects Fund accounts for all proceeds of bond issues and earnings on
investments of the fund. Revenue from the sale of bonds is used for acquiring school sites, constructing and
equipping new school facilities, and renovating existing facilities. This is a budgeted fund.
ARRA Title XIV, State Fiscal Stabilization Fund - This fund classification is to be used to account, on a
project basis, for funds granted to improve basic programs authorized by the Elementary and Secondary
Education Act of 1965, as amended by the No Child Left Behind Act of 2001; the Individuals with
Disabilities Education Act (IDEA); the Adult and Family Literacy Act; the Carl D. Perkins and Technical
Education Act of 2006, or for the modernization, renovation, or repair of public school facilities, including
modernization, renovation, and repairs that are consistent with a recognized green building rating system.
This grant is funded by the American Recovery and Reinvestment Act (ARRA) of 2009, Title XIV.
Natural Gas Special Revenue Fund - During recent years, the District has engaged in leasing the mineral rights
to its various properties for the extraction of natural gas. This activity has resulted in a significant inflow of
contract signing bonuses and royalty payments for the District. During the year ended August 31, 2008, the
Board of Trustees legally restricted these inflows for future special projects. Therefore, these proceeds are now
accounted for in a Major Special Revenue Fund.
Major Proprietary Funds
Enterprise Fund - The Enterprise Fund, which is a budgeted fund, accounts for the food service operation that is
financed and operated in a manner similar to a private business, where the determination of net income is
necessary or useful for sound financial administration. The cost of providing meals to the student population
and other outside groups is recovered primarily through meal charges and reimbursements from the federal
government.
Internal Service Fund - The Internal Service Fund accounts for the management of the District’s worker’s
compensation insurance. The cost of this activity is allocated to the other funds of the District on a cost
reimbursement basis. This is not a budgeted fund.
59

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
B. Government-wide and Fund Financial Statements (continued)
Fiduciary Fund
Agency Fund - The Agency Fund, which is an unbudgeted fund, accounts for the activities of student groups.
The student activity funds account for monies collected principally through fund-raising efforts of the students
and District-sponsored student groups. Collections and disbursements of these funds are generally controlled by
the student group itself under the supervision of a member of the professional staff. These funds have no equity,
assets are equal to liabilities, and the funds do not include revenues and expenditures for general operations of
the District. The District’s main involvement with these funds is to provide stewardship by accounting for the
funds.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collected within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Revenues susceptible to accrual are principally certain inter-governmental revenues, property taxes and
investment income. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Funds received from federal, state and other grants designated for payment of specific District expenditures are
considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly,
when such funds are received, they are recorded as deferred revenues until related and authorized expenditures
have been made. If balances have not been expended by the end of the project period, grantors sometimes
require the District to refund all or part of the unused amount.
The proprietary fund types are accounted for on an economic resources measurement focus. Operating revenues
and expenses are distinguished from nonoperating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a proprietary fund’s principal
ongoing operations. Operating expenses for enterprise funds and internal service funds include the cost of sales
and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
Under the provisions of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds
and Other Governmental Entities That Use Proprietary Fund Accounting, the District has elected not to follow
Financial Accounting Standards Board guidance issued subsequent to November 30, 1989, for both businesstype
activities and enterprise funds.
60

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued)
Management’s Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimations and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures during the reporting period. Actual results could differ from those estimates.
D. Assets, Liabilities, and Net Assets or Equity
1. Cash and cash equivalents
The District’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from date of acquisition. Investments for the
District are reported at amortized cost.
2. Receivables and payables
Interfund activity results from loans, services provided, reimbursements or transfers between funds. Loans are
reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures or
expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and
reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers in
and transfers out are netted and presented as a single “transfers” line on the government-wide statement of
activities. Similarly, interfund receivables and payables are netted and presented as a single “internal balances”
line of the government-wide statement of net assets.
Property taxes are levied each year by October 1 based upon property valuations as of January 1. Taxes are due
on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which
imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties,
and interest ultimately imposed.
Tax collections are prorated between the General Fund and Debt Service Fund based on the tax rate adopted by
the Board. The District is permitted under the Texas Education Code to levy taxes up to $1.17 per $100 of
assessed valuation for general governmental services other than debt service on general obligation bonds. The
tax rate which may be levied to service general obligation bonds is not limited. For the current fiscal year, the
Board of Trustees set tax rates applicable to general governmental services and to debt service of $1.04 per $100
valuation and $0.232 per $100 valuation, respectively, based on a net assessed valuation of $20,756,079,556.
Delinquent property tax receivables are prorated between the General Fund and Debt Service Fund based on
rates adopted for the year of the levy. Allowance for uncollectible tax receivables is based on historical
experience in collecting property taxes. Management periodically reviews outstanding property taxes and
establishes an allowance adequate to reflect the anticipated net collectible balance. The District is prohibited
from writing off property taxes without specific statutory authority from the Texas Legislature. The property
tax receivable allowance is equal to 46.14% of total outstanding property taxes at August 31, 2010.
61

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
D. Assets, Liabilities, and Net Assets or Equity (continued)
3. Inventories and prepaid items
In the General Fund, inventory is valued at cost, using the weighted-average method. A computerized inventory
system automatically updates inventory values. This valuation is not materially different from the first-in, firstout
valuation method. Inventories consist of expendable supplies held for consumption. The cost is recorded as
an expenditure at the time individual inventory items are consumed.
In the General Fund, certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid expenses in the government-wide financial statements. If some or all of these payments
reflect costs applicable to the two-month period immediately following year-end, they are reported as deferred
expenditures in the fund financial statements, in accordance with the modified accrual basis of accounting.
In the Enterprise Fund, inventory is valued at cost, using the weighted-average method, except for food
commodities, which are recorded at market values supplied by the Texas Department of Human Services.
Commodities are received at no cost to the District; however, their fair market value is recorded as inventory
and unearned revenue when received. As the commodities are consumed, inventory and unearned revenue are
relieved, expenditures are charged, and revenue is recognized for an equal amount.
4. Capital assets
Capital assets, which include property, plant, and equipment, are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. The District does not have any
public domain (“infrastructure”) capital assets. Capital assets are defined by the District as assets with an initial,
individual cost of more than $5,000 and an estimated useful life of two years or more.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset
lives, as well as the cost of land, are not depreciated.
Capital assets are depreciated over the estimated useful lives of the assets on a straight-line basis over the
following estimated useful lives:
Buildings and improvements
Furniture and equipment
20-40 years
5-10 years
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are valued at their estimated fair market value on the date donated.
5. Long-term obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, longterm
debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well
as issuance costs, are deferred and amortized over the life of the bonds using the appropriate effective interest
and straight-line methods.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
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.
62

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
D. Assets, Liabilities, and Net Assets or Equity (continued)
6. Accrued service benefits
Accrued service benefits are accrued as a liability in the government-wide financial statements. Eligibility for
accrued service benefits for the employees of the Arlington Independent School District is determined by length
of continuous service with the District and approval for retirement benefits under provisions of the Teacher
Retirement System of Texas.
Benefits are available to employees hired before January 1, 1985, and are based on years of experience with the
District, accumulated eligible local sick leave days and accumulated ineligible local sick leave days.
7. Compensated absences
All administrative and full-time hourly employees of the District receive up to three weeks of vacation each
calendar year. If the employee does not use the vacation time by December 31, it is lost and may not be carried
forward. Employees may accumulate as many as fifty days of local personal leave, which can be carried
forward from year to year. The time is forfeited if not used before the employee leaves the District. Therefore,
no accrual for compensated absences is included in the accompanying financial statements.
8. Fund equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose.
9. Data control codes
The data control codes refer to the account code structure prescribed by the TEA. The TEA requires school
districts to display these codes in the financial statements filed with the agency in order to ensure accuracy in
building a statewide database for policy development and funding plans.
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental funds balance sheet and the governmentwide
statement of net assets
The governmental funds balance sheet includes a reconciliation of total fund balances – governmental funds to
net assets of governmental activities as reported in the government-wide statement of net assets.
The first item on the reconciliation explains that the “assets and liabilities of the internal service funds are
included in governmental activities in the statement of net assets.” The details of the $1,022,463 are as follows:
Cash and cash equivalents $ 5,688,170
Due from other funds 725,614
Adjustment to reflect consolidation of internal service
fund activities related to enterprise funds 85,187
Other current assets 253,000
Accounts payable (143,960)
Accrued expenses (5,585,548)
Net effect on net assets $ 1,022,463
63

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
A. Explanation of certain differences between the governmental funds balance sheet and the governmentwide
statement of net assets (continued)
The second item on the reconciliation describes the effect on net assets of “including the beginning balances for
capital assets (net of depreciation) and long-term debt in the governmental activities.” The details of the
$46,111,504 are as follows:
Beginning capital assets, net of depreciation $ 468,423,495
Beginning capital asset related long-term debt (417,724,504)
Beginning accrued interest payable (825,794)
Beginning other long-term debt and
unamortized bond issuance costs (3,761,693)
Net effect on net assets $ 46,111,504
The third item on the reconciliation explains the $(33,440,559) effect on net assets as “current year capital
outlays and long-term debt principal payments.” The details of this effect are as follows:
Capital asset acquisitions and retirements $ 8,499,452
Bond principal payments 28,395,000
Bond premium amortization 1,181,324
Loan principal payments 357,894
Capital lease principal payment 253,900
Accrued service benefits reduction 100,528
Issuance costs on current year bond issue 563,336
Additional bonds issued (65,755,000)
Accreted interest on bonds payable (300,802)
Premium on current year bond issue (1,748,110)
Amortization of bond issuance costs (185,681)
Amortization of refunding deferral (679,234)
Loan issuance (3,484,728)
Loan issuance receivable on governmental funds balance sheet (315,180)
Capital lease additions (219,578)
Decrease in accrued interest payable (103,680)
Net effect on net assets $ (33,440,559)
The last item in the reconciliation describes the effect on net assets of “recognizing deferred revenue as revenue,
removing collections for prior years’ tax levy from revenue, and removing expenditures for prepaid items.” The
effect of $9,678,392 on net assets is as follows:
Prepaid items $ 146,413
Recognize deferred tax revenue in the current year 9,531,979
Net effect on net assets $ 9,678,392
64

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
B. Explanation of certain differences between the governmental fund statement of revenues, expenditures,
and changes in fund balance and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between total net changes in fund balance – governmental funds and change in net assets of
governmental activities as reported in the government-wide statement of activities.
The second item on the reconciliation describes the effect on net assets for “removing current year capital
outlays, debt principal payments, and recording amortization.” The details of the $(30,615,217) are as follows:
Capital asset acquisitions and retirements $ 8,499,452
Bond principal payments 28,395,000
Bond premium amortization 1,181,324
Loan principal payments 357,894
Capital lease principal payment 253,900
Accrued service benefits reduction 100,528
Issuance costs on current year bond issue 563,336
Additional bonds issued (65,755,000)
Accreted interest on bonds payable (300,802)
Premium on current year bond issue (1,748,110)
Amortization of bond issuance costs (185,681)
Amortization of refunding deferral (679,234)
Loan issuance (3,484,728)
Loan issuance receivable on governmental funds balance sheet (315,180)
Prior period loan issuance receivable added to long-term debt 2,825,342
Capital lease additions (219,578)
Decrease in accrued interest payable (103,680)
Net effect on net assets $ (30,615,217)
The last item on the reconciliation describes the effect on net assets of “recognizing deferred revenue as
revenue, removing collections for prior years’ tax levy from revenue and/or, removing expenditures for prepaid
items.” The details of the $1,113,102 are as follows:
Adjust for decrease in prepaid items $ (341,589)
Remove prior years’ tax collections from revenue 1,454,691
Net effect on net assets $ 1,113,102
III. STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. Budgets and Budgetary Accounting
The District is legally required to adopt budgets for the General Fund, Debt Service Fund, Capital Projects Fund,
and Enterprise Fund. Each budget is presented on the modified accrual basis of accounting, except for the
Enterprise Fund, which is on a full accrual basis. Both modified accrual basis and full accrual basis are
consistent with generally accepted accounting principles. The District is not legally required to adopt Special
Revenue Fund budgets.
The District follows these procedures preparing and approving its annual budget:
1. The superintendent or his designate prepares a budget covering all estimated revenues and proposed
expenditures of the District for the next succeeding fiscal year. The budget is prepared by generic fund type
and function.
65

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
A. Budgets and Budgetary Accounting (continued)
2. Ten days after public notice of the meeting has been given, a public hearing is held, allowing the public to
comment on the proposed budget.
3. A public meeting of the Board of Trustees is called for the purpose of adopting the budget. The State Board
of Education requires that the budget be prepared no later than August 20 each year.
4. Budget data must be received by the Texas Education Agency on or before December 15 each year. The
legal level of budgetary control is at the function level within each generic fund type. Budget amounts are
as originally adopted, or as amended by the Board on August 19, 2010. Once a budget is approved, it can be
amended at the function and fund level only by approval of a majority of the members of the Board of
Trustees. Changes can be made to the budget at any detail within the function level without an amendment
approved by the Board. During the year, several budget amendments were made with Board approval. The
most significant amendments were for carryover funding; supplemental appropriations for maintenance
projects; mid-year adjustment of local and state revenues and appropriations and operating costs; and yearend
adjustments to revise estimates of revenues and expenditures based on the latest information on student
attendance, interest earnings, and operating costs. All budget appropriations lapse at year-end.
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
The District’s funds are required to be deposited and invested under the terms of a depository contract pursuant
to the School Depository Act. The depository bank places approved pledged securities for safekeeping and trust
with the District’s agent bank in an amount sufficient to protect District funds on a day-to-day basis during the
period of the contract. The pledge of approved securities is waived only to the extent of the depository bank’s
dollar amount of Federal Deposit Insurance Corporation (“FDIC”) insurance.
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas
of investment practices, management reports and establishment of appropriate policies. Among other things, it
requires the District to adopt, implement, and publicize an investment policy. That policy must address the
following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4)
acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio
investments, (7) maximum average dollar-weighted maturity allowed based on the stated maturity date for the
portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation preferences for certificates of
deposit. The District maintains an investment policy which authorizes the District to invest in obligations of the
U.S. Treasury and U.S. agencies, municipal securities and repurchase agreements and the State Treasurer’s
investment pool or similar public fund investment pools. The Act also requires the District to have independent
auditors perform test procedures related to investment practices as provided by the Act. The District is in
substantial compliance with the requirements of the Act and with local policies.
In compliance with the Public Funds Investment Act, the District has adopted a deposit and investment policy.
Custodial Credit Risk – Deposits – In the case of deposits, this is the risk that in the event of a bank
failure, the government’s deposits may not be returned to it. The collateral shall always be held by an
independent third party with whom the District has a current custodial agreement. The District is not
exposed to custodial credit risk for its deposits as all are covered by depository insurance or securities
pledged to the District and held by a third-party custodian.
66

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
A. Deposits and Investments (continued)
At August 31, 2010, the carrying value of the District’s deposits was $8,580,755 and the bank balance was
$16,133,612. The District’s cash deposits at August 31, 2010, and during the year ended August 31, 2010, were
entirely covered by the FDIC’s Temporary Liquidity Guarantee Program (“TGLP”). The following is a
summary of the largest combined cash balances and collateral for the District during the year:
a. Name of Bank: JPMorgan Chase Bank, N.A.
b. The largest cash, savings, and time deposit combined account balance amounted to $33,761,564 and occurred
on June 30, 2010. The amount of securities pledged as of that date was $40,023,436.
The District’s temporary investments at August 31, 2010, are shown below:
Carrying Market Weighted Average
Investments Amount Value Maturity (Days).
Money Markets $ 103,025 $ 103,025
Investment Pools
TexPool 24,128,089 24,128,089 77
LOGIC 162,605,246 162,605,246 46
Total temporary investments $186,836,360 $186,836,360
Custodial Credit Risk – Investments – For an investment, this is the risk that, in the event of the failure
of the counterparty, the government will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The District’s investments in the external
investment pools (TexPool and LOGIC), are not exposed to custodial risk. External investment pools are
not subject to custodial risk because investments are not evidenced by securities that exist in physical or
book entry form. State law limits investments in public funds investment pools to those rated no lower
than AAA or AAAm or an equivalent rating by at least one nationally recognized rating service. As of
August 31, 2010, the District’s investments in both TexPool and LOGIC were rated AAAm.
Credit Risk – This is the risk that a security issuer may default on an interest or principal payment. The
District controls and monitors this risk by purchasing quality rated instruments that have been evaluated by
agencies such as Standard and Poor’s (S&P) or Moody’s Investors Service, or by investing in public fund
investment pools rated no lower than AAA or AAAm. The District’s investments in both TexPool and
LOGIC were rated AAAm.
Interest-rate Risk – This type of risk occurs when potential purchasers of debt securities do not agree to
pay face value for those securities if interest rates rise. The District’s investment policy does not allow the
purchase of investments that would expose the District to interest-rate risk.
67

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
A. Deposits and Investments (continued)
Concentration Risk – This type of risk is defined as positions of 5 percent or more in the securities of a
single issuer. The District is not exposed to concentration risk because the investment portfolio mainly
consists of external investment pools.
The fair value of investments in external investment pools is the same as the value of the pool shares. The
District reports investments at amortized cost. GASB Statement No. 31, Accounting and Financial Reporting
for Certain Investments and for External Investment Pools, states that investments should be reported at fair
value, but provides an exception which applies to all investments of AISD. Investments with a remaining
maturity at time of purchase of one year or less and investments in an external pool that operates as a “2a7-like”
pool may be reported at amortized cost. The external investment pools are not registered with the SEC, but are
under the regulatory oversight of the Public Funds Investment Act, Chapter 2256 of the Texas Government
Code.
B. Receivables
Receivables due from other governments, as of August 31, 2010, for the District’s major, nonmajor, and
propriety funds in the aggregate are as follows:
ARRA
General Debt Service Title XIV Other Enterprise
Fund Fund SFSF Funds Fund Total
Due from the State of Texas $6,325,783 $ 113,053 $3,039,886 $10,185,017 $ 701,189 $20,364,928
Due from the Federal Government 27,778 439,383 467,161
Total Due from Other Governments $6,353,561 $ 113,053 $3,039,886 $10,624,400 $ 701,189 $20,832,089
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received but not yet earned. At the end of the current fiscal year,
the various components of deferred revenue and unearned revenue reported in the governmental funds were as
follows:
Unavailable
Unearned
Delinquent property taxes receivable (General Fund) $7,981,452 $
Delinquent property taxes receivable (Debt Service Fund) 1,550,527
Revenues received and applicable to the next fiscal year (General Fund) 16,690
Grant proceeds prior to meeting all eligibility requirements (Other Funds) 282,086
Total deferred/unearned revenue for governmental funds $9,531,979 $ 298,776
68

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
C. Debt Issuance Costs
Debt issuance costs associated with the Series 2004 – 2010 bond issues in the amount of $4,266,243 have been
capitalized and reported in the Statement of Net Assets. The issuance costs will be amortized over the life of the
bonds. Amortization for the year is summarized as follows:
D. Interfund Receivables, Payables, and Transfers
Balance at 8/31/09 $2,476,003
Current year addition 563,336
Less: Current year amortization (185,681)
Balance at 8/31/10 $2,853,658
The composite of interfund balances as of August 31, 2010, is as follows. All interfund balances are expected to
be repaid within one year.
General Fund:
Due From
Other Funds
Due To
Other Funds
Debt Service Fund (major governmental fund) $ $ 114,878
Capital Projects Fund (major governmental fund) 638,145
ARRA Title XIV SFSF (major governmental fund) 3,039,886
Natural Gas Fund (major governmental fund) 5,151
Nonmajor Special Revenue Funds 12,025,313 791,344
Proprietary Fund 1,268,231
Internal Service Fund 725,614
Total General Fund 16,976,725 1,631,836
Debt Service Fund (major governmental fund):
General Fund 114,878
Capital Projects Fund (major governmental fund):
General Fund 638,145
ARRA Title XIV SFSF (major governmental fund):
General Fund 3,039,886
Natural Gas Fund (major governmental fund):
General Fund 5,151
Nonmajor Special Revenue Funds:
General Fund 791,344 12,025,313
Proprietary Fund:
General Fund 1,268,231
Internal Service Fund:
General Fund 725,614
Total all funds $18,608,562 $18,608,562
These interfund balances resulted from the time lag between the dates that interfund goods and services are
provided or reimbursable expenditures occur, transactions are recorded in the accounting system, and/or
payments between funds are made.
69

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
D. Interfund Receivables, Payables, and Transfers (continued)
The District engaged in interfund transfer transactions during the year. Interfund transfers are defined as flows
of assets without equivalent flows of assets in return and without a requirement for repayment. Interfund
activity for the year ended August 31, 2010 is as follows:
Transfers In: .
General Proprietary
Fund Fund Total.
Transfers Out:
Special Revenue Funds $3,585,325 $ 92,255 $3,677,580
The transfers out of the Special Revenue Funds to the Proprietary Fund are excess funds from the Summer
Feeding Program, which the grantor allows the District to use for other USDA Child Nutrition Programs. The
transfer out of the Special Revenue Funds was the beginning fund balance for the High School Allotment
program. This State program has historically been accounted for in a Special Revenue Fund. However,
beginning September 1, 2009, the Texas Education Agency required all districts to include this activity in the
General Fund.
E. Operating Leases
The District leases building and office facilities and other equipment under noncancelable operating leases.
Total costs for such leases were $434,946 for the year ended August 31, 2010. The future minimum lease
payments for these leases for the next five fiscal years are as follows:
F. Capital Assets
Year Ending August 31,
Amount
2011 $385,721
2012 295,409
2013 108,516
2014 98,280
2015 88,044
A summary of changes in governmental activities capital assets for the year ended August 31, 2010 is as
follows:
Balance
Balance
8/31/09 Increases Decreases 8/31/10
Capital assets, not being depreciated:
Land $ 59,079,557 $ 136,901 $ $ 59,216,458
Construction in progress 627,494 627,494
Total capital assets, not being depreciated 59,079,557 764,395 59,843,952
Capital assets, being depreciated:
Buildings and improvements 676,574,058 6,701,378 683,275,436
Furniture and equipment 33,414,822 1,205,925 (1,032,676) 33,588,071
Capital leases (equipment) 585,991 219,578 (515,776) 289,793
Total capital assets, being depreciated 710,574,871 8,126,881 (1,548,452) 717,153,300
Less accumulated depreciation:
Buildings and improvements (277,148,636) (16,507,406) (293,656,042)
Furniture and equipment (23,572,561) (2,147,614) 640,853 (25,079,322)
Capital leases (equipment) (509,736) (77,769) 515,776 (71,729)
Total accumulated depreciation (301,230,933) (18,732,789) 1,156,629 (318,807,093)
Total capital assets, being depreciated, net 409,343,938 (10,605,908) (391,823) 398,346,207
Governmental activities capital assets, net $468,423,495 $ (9,841,513) $ (391,823) $458,190,159
70

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
F. Capital Assets (continued)
A summary of changes in the business-type activities capital assets for the year ended August 31, 2010 is as
follows:
Balance
Balance
8/31/09 Increases Decreases 8/31/10
Capital assets, not being depreciated:
Land $ 401,223 $ $ $ 401,223
Capital assets, being depreciated:
Buildings and improvements 3,824,211 2,741 3,826,952
Furniture and equipment 4,038,542 591,000 4,629,542
Capital leases (equipment) 24,006 (24,006)
Total capital assets, being depreciated 7,886,759 593,741 (24,006) 8,456,494
Less accumulated depreciation:
Buildings and improvements (866,377) (87,272) (953,649)
Furniture and equipment (2,546,152) (284,433) (2,830,585)
Capital leases (equipments) (22,006) (2,000) 24,006
Total accumulated depreciation (3,434,535) (373,705) 24,006 (3,784,234)
Total capital assets, being depreciated, net 4,452,224 220,036 4,672,260
Governmental activities capital assets, net $4,853,447 $ 220,036 $ $5,073,483
Depreciation was charged to functions as follows:
Governmental activities:
Instruction $12,223,143
Instructional resources and media services 290,640
Curriculum and instructional staff development 159,316
Instructional leadership 248,808
School leadership 1,174,192
Guidance, counseling, and evaluation services 853,315
Health services 228,508
Pupil transportation 506,349
Cocurricular/extracurricular activities 395,101
General administration 311,341
Plant maintenance and operations 1,776,467
Security and monitoring services 239,097
Data processing services 326,512
Total depreciation expense – governmental activities $18,732,789
Business-type activities:
Food services $ 349,699
71

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
F. Capital Assets (continued)
Construction Commitments
The District has active construction projects as of August 31, 2010. These projects are all for repairs and
improvements to existing facilities. All remaining construction commitments are being financed by general
obligation bonds. As of year-end, the District had spent a total of $11,784,147 on these projects. The remaining
commitments amount to $2,479,409.
G. Long-Term Debt
Long-term debt of the District is comprised of bonds payable, capital leases payable, accrued service benefits,
two notes payable, and rebatable arbitrage payable. Debt service requirements for general obligation bonds are
payable from fund balance and future revenues of the Debt Service Fund which consists principally of property
taxes collected by the District, state funding under the Instructional Facilities and Existing Debt Allotments and
interest earnings. The General Fund has typically been used to liquidate capital leases and notes payable, in
prior years.
The following is a summary of changes in long-term debt for governmental activities for the year ended August
31, 2010:
Balance Balance Due Within
8/31/09 Additions Reductions 8/31/10 One Year
Bonds payable $412,879,198 $ 66,055,802 $(28,395,000) $450,540,000 $ 37,450,000
Bond premiums 17,122,707 1,748,110 (1,181,324) 17,689,493 1,251,248
Refunding deferral (10,041,851) 679,234 (9,362,617) (679,234)
Capital leases payable 240,452 219,578 (253,900) 206,130 48,443
Accrued service benefits 1,488,182 15,922 (116,451) 1,387,653 202,600
Notes payable 2,273,511 3,484,728 (357,894) 5,400,345 1,020,639
Totals $423,962,199 $ 71,524,140 $(29,625,335) $465,861,004 $ 39,293,696
The following is a summary of changes in long-term debt for business-type activities for the year ended August
31, 2010:
Balance Balance Due Within
8/31/09 Additions Reductions 8/31/10 One Year
Capital leases payable $ 10,585 $ $ (10,585) $ $
Rebatable Arbitrage Payable
The Tax Reform Act of 1986 requires that the excess interest earned on tax-exempt bond proceeds over interest
cost must be remitted to the federal government. These arbitrage interest earnings are paid from the Capital
Projects Funds and must be remitted every five years from date of issue. During the fiscal year ended August
31, 2010, no arbitrage payments were made to the IRS. Furthermore, there was no rebatable arbitrage liability at
August 31, 2010.
72

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
G. Long-Term Debt (continued)
Bonds Payable
Bonded indebtedness of the District is reflected in the Statement of Net Assets. Current requirements for
principal and interest expenditures are accounted for in the Debt Service Fund in the fund financial statements.
A summary of changes in general obligation bonds for the year ended August 31, 2010, is as follows:
Range of
Interest Original Future 8/31/09 Current Year 8/31/10
Rates Amount Maturities Balances Issued Accreted Retired Balances
1992 Refunding 6.70% $ 94,838,315 $ 8,979,198 $ $ 300,802 $ 9,280,000 $
2000 Building 5.30 31,435,000 655,000 655,000
2003 Building 3.30 to 5.25 41,909,944 2011-28 22,780,000 780,000 22,000,000
2004 Refunding 3.23 to 5.00 52,127,530 2011-21 43,030,000 1,885,000 41,145,000
2005 Refunding 4.25 to 5.00 138,745,000 2011-25 129,800,000 10,205,000 119,595,000
2006 Refunding 4.00 to 5.00 82,880,000 2013-26 82,880,000 82,880,000
2007 Refunding 5.00 114,350,000 2011-21 112,430,000 4,960,000 107,470,000
2009 Refunding 3.00 to 4.25 12,465,000 2011-24 12,325,000 630,000 11,695,000
2009 QSCB 0.40 36,320,000 2018-26 36,320,000 36,320,000
2010 Building 2.00 to 5.00 29,435,000 2011-35 29,435,000 29,435,000
Bond premiums 17,122,707 1,748,110 1,181,324 17,689,493
Deferred loss on refunding (10,041,851) (679,234) (9,362,617)
$419,960,054 $67,503,110 $ 300,802 $28,897,090 $458,866,876
The annual debt service for retirement of bond principal and interest are as follows:
Year Ending August 31, Principal Interest Total
2011 $ 37,450,000 $ 19,686,546 $ 57,136,546
2012 33,360,000 17,729,403 51,089,403
2013 34,205,000 16,116,406 50,321,406
2014 35,590,000 14,410,293 50,000,293
2015 37,275,000 12,639,606 49,914,606
2016-2020 154,615,000 40,364,806 194,979,806
2021-2025 98,210,000 11,869,656 110,079,656
2026-2030 14,400,000 2,323,798 16,723,798
2031-2035 5,435,000 706,875 6,141,875
Total $450,540,000 $135,847,389 $586,387,389
73

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
G. Long-Term Debt (continued)
In accordance with general obligation bond indentures, the District is required to compute, at the time of levying
the tax, a rate of tax sufficient to provide a fund each year to pay the principal and interest as bonds mature and
interest payments are due.
A portion of the Series 1992 bond issue was Capital Appreciation Bonds. These bonds were issued at a
discount, and there are no scheduled interest payments due until maturity of the bonds. A portion of the
difference between the principal received at issuance and the total amount due at maturity is accreted (added to
principal) each year until the total liability equals the cash due at maturity.
Accreted interest on bonds represents the accrued interest to date on the above issues and is summarized as
follows:
Amount Amount Total Accreted Interest
Due at Received To Be Balance Current Year Balance
Issue Maturity at Issue Accreted 8/31/09 Accretion Maturities 8/31/10
Series 1992 $9,280,000 $1,351,261 $7,928,739 $7,627,937 $ 300,802 $7,928,739 $
Defeased Debt
The District has defeased various bond issues by creating separate irrevocable trust funds. New debt was issued
and the proceeds have been used to purchase U.S. government securities that were placed in the trust funds. The
investments and earnings from the investments are sufficient to fully service the defeased debt until the debt is
called or matures. For financial reporting purposes, the debt has been considered defeased and therefore not
included as a liability in the District’s financial statements. As of August 31, 2010, the amount of defeased debt
outstanding but not included in the District’s financial statements was $501,485,000.
Accrued Service Benefits
The accrued service benefits represents benefits paid to employees at retirement based on length of continuous
service with the District. Benefits are paid from the General Fund. The balance due within the next fiscal year
is an estimate based on prior history.
Notes Payable
The notes payable represent loans with the State of Texas Energy Conservation Office. The first phase of the
project began during May 2006. Total proceeds of $1,886,308 from the loan were to be used for energy
conservation measures at school locations throughout the District. This phase was completed during the fiscal
year ending August 31, 2009. The related note accrues interest at a fixed rate of 3.0% and matures in November
2012. The second phase resulted in additional construction draws of $4,584,295 that were taken during the years
ended August 31, 2009 and 2010. The related note accrues interest at a fixed rate of 3.0% and matures in
August 2017. The District is required by the agreement to submit quarterly principal and interest payments on
both notes payable, based on 5.5 and 7 year amortizations, respectively. The total notes payable balance at yearend
is $5,400,345 and annual maturities for the next five years are as follows:
Year Ending August 31,
Principal Due
2011 $1,020,639
2012 1,051,604
2013 775,014
2014 718,562
2015 740,363
74

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
G. Long-Term Debt (continued)
Capital Leases
The District has entered into lease agreements for various types of equipment with terms of 60 months. These
lease agreements qualify as capital leases for accounting purposes, and therefore, have been recorded at the
present value of their future minimum lease payments as of the inception date. The effective interest rates for
these agreements range from 12.8 – 13.0%.
The assets acquired through capital leases are as follows:
Governmental
Activities
Asset:
Furniture and equipment $289,793
Less: accumulated depreciation (71,729)
Total $218,064
The future minimum lease obligations and the net present value of these minimum lease payments as of August
31, 2010, were as follows:
Year Ending August 31,
Governmental
Activities
2011 $ 74,316
2012 74,316
2013 66,366
2014 55,236
Total minimum lease payments 270,234
Less: amount representing interest (64,104)
$206,130
Capital lease payments in governmental activities and business-type activities for the year ended August 31,
2010, were $266,241 and $1,928 of which $10,753 and $168 represented interest in the governmental and
business-type activities, respectively.
75

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
H. Employee Benefits
The following is a summary of the various insurance, reimbursement and retirement programs provided by the
District for the benefit of District employees and their dependents:
1. Insurance plans
Workers’ Compensation Insurance (Self-Insured) – The District contracts with the TASB Risk Management
Fund (“the Fund”) to facilitate all claims. The Fund was created and is operated under the provisions of the
Interlocal Cooperation Act, Chapter 791 of the Texas Government Code and Chapter 504, Texas Labor Code.
All districts participating in the Fund execute Interlocal Agreements that define the responsibilities of the
parties.
As a self-funded member of the Fund, the District is solely responsible for all claim costs, both reported and
unreported. The Fund provides administrative services to its self-funded members including claims
administration and customer service. The District is protected against higher than expected claims costs through
the purchase of stop loss coverage. Deposits in the amount of $253,000 for a required Loss Deposit Fund are
included in other current assets on the Statement of Net Assets.
The Fund engages the service of an independent auditor to conduct a financial audit after the close of each plan
year on August 31. The audit is approved by the Fund’s Board of Trustees in February of the following year.
The Fund’s audited financial statements as of August 31, 2009, are available at the TASB offices and have been
filed with the Texas Department of Insurance in Austin.
The costs associated with the self-insured plan are reported as interfund transactions. Accordingly, they are
treated as operating revenues of the Workers’ Compensation Fund and operating expenditures/expenses of the
General Fund and Enterprise Fund.
An actuarial study is performed on the plan to estimate the claims liability at the fiscal year-end. Liabilities
include an amount for claims that have been incurred but not reported (IBNRs). The resultant liability
calculation is not an exact amount as it depends on many complex factors, such as inflation, changes in legal
doctrines, and damage awards. Accordingly, claim liabilities are evaluated periodically. The following
summarizes the self-insured plan claims and liabilities for workers’ compensation:
Workers’ Compensation: 08/31/10 08/31/09.
Unpaid claims, beginning of fiscal years $ 5,484,646 $ 5,716,953
Incurred claims (including IBNRs) 1,859,502 1,716,269
Claim payments (1,614,640) (1,948,576)
Unpaid claims, end of fiscal year $ 5,729,508 $ 5,484,646
76

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
H. Employee Benefits (continued)
Health Insurance (TRS ActiveCare) – Effective September 1, 2007, employees of the District were covered by
TRS ActiveCare. TRS ActiveCare is a statewide health coverage program for public education employees
established by the 77 th Texas Legislature. The District contributed approximately $260 per month per
participant to the plan, and employees, at their option, authorized payroll withholdings to pay employee
contributions and additional premiums for dependents. The TRS issues a publicly available financial report that
includes financial statements and required supplementary information for TRS ActiveCare. That report may be
obtained by visiting the TRS Web site at www.trs.state.tx.us, by writing to the Communications Department of
the Teacher Retirement System of Texas at 1000 Red River Street, Austin, Texas 78701, or by calling (800)
223-8778.
2. Employees Retirement Plan
Plan Description – The District contributes to the Teacher Retirement System of Texas (“the System”), a public
employee retirement system. It is a cost-sharing, multiple-employer defined benefit pension plan with one
exception; all risks and costs are not shared by the District, but are the liability of the State of Texas. The
System provides service retirement and disability retirement benefits, and death benefits to plan members and
beneficiaries. The System operates under the authority of provisions contained primarily in Texas Government
Code, Title 8, Public Retirement Systems, Subtitle C, Teacher Retirement System of Texas, which is subject to
amendment by the Texas Legislature. The System’s annual financial report and other required disclosure
information are available by writing the Teacher Retirement System of Texas, 1000 Red River, Austin, Texas
78701-2698, by calling (800) 223-8778, or by downloading the report from the TRS internet website,
www.trs.state.tx.us, under the TRS Publications heading.
Funding Policy – Under provisions in State law, plan members are required to contribute 6.64% of their annual
covered salary and the State of Texas contributes an amount equal to 6.644% of the covered payroll for fiscal
year 2010 and 6.58% for fiscal years 2009 and 2008. The District’s employees’ contributions to the System for
the years ending August 31, 2010, 2009, and 2008 were $22,283,751, $21,925,546, and $21,720,192,
respectively, equal to the required contributions for each year. Other contributions made from federal and
private grants and from the District for salaries above the statutory minimum for the years ending August 31,
2010, 2009, and 2008 were $6,379,537, $6,240,008, and $5,585,963, respectively, equal to the required
contributions for each year. State contributions to TRS made on behalf of the District’s employees for the years
ended August 31, 2010, 2009, and 2008 were $20,206,679, $20,881,121, and $20,699,566, respectively. The
amounts have been recognized as both revenue and expenditures in the General Fund.
77

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
H. Employee Benefits (continued)
3. Retiree Health Plan
Plan Description – The District contributes to the Texas Public School Retired Employees Group Insurance
Program (TRS-Care), a cost-sharing multiple-employer defined benefit postemployment health care plan
administered by the Teacher Retirement System of Texas. TRS-Care Retired Plan provides health care coverage
for certain persons (and their dependents) who retired under the Teacher Retirement System of Texas. The
statutory authority for the program is Texas Insurance Code, Chapter 1575. Section 1575.052 grants to the TRS
Board of Trustees the authority to establish and amend basic and optional group insurance coverage for
participants. The TRS issues a publicly available financial report that includes financial statements and required
supplementary information for TRS-Care. That report may be obtained by visiting the TRS Web site at
www.trs.state.tx.us, by writing to the Communications Department of the Teacher Retirement System of Texas
at 1000 Red River Street, Austin, Texas 78701, or by calling (800) 223-8778.
Funding Policy – Contribution requirements are not actuarially determined but are legally established each
biennium by the Texas Legislature. Texas Insurance Code, Sections 1575.202, 203, and 204 establish state,
active employee, and public school contributions, respectively. The State of Texas and active public school
employee contribution rates were 1.0% and 0.65% of public school payroll, respectively, with school districts
contributing a percentage of payroll set at 0.55% for fiscal years 2010, 2009, and 2008. Per Texas Insurance
Code, Chapter 1575, the public school contribution may not be less than 0.25% or greater than 0.75% of the
salary of each active employee of the public school. For the years ended August 31, 2010, 2009, and 2008, the
District’s contributions were $1,958,216, $1,919,780, and $1,866,582, respectively, which equaled the required
contribution for the year.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which was effective January 1,
2006, established prescription drug coverage for Medicare beneficiaries known as Medicare Part D. One of the
provisions of Medicare D allows for the Texas Public School Retired Employee Group Insurance Program
(TRS-Care) to receive retiree drug subsidy payments from the federal government to offset certain prescription
drug expenditures for eligible TRS-Care participants. These on-behalf payments must be recognized as equal
revenues and expenditures/expenses by each reporting entity. For the year ended August 31, 2010, the
contribution made on behalf of the District was $874,073, $791,942, $793,199, respectively.
I. Commitments and Contingencies
State and Federal Grants
The District receives monies under various state and federal grant project awards. These grants are subject to
audit by the individual grantors and any disallowed costs arising from these audits would have to be refunded by
the District. Management believes that the District has substantially complied with the terms and provisions of
these grants, and any refunds, which might arise from these audits, would not be material.
Litigation
The District is a party to various legal actions, none of which is believed by administration to have a material
effect on the financial condition of the District. Accordingly, no provision for losses has been recorded in the
accompanying financial statements for such contingencies.
78

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to the Basic Financial Statements
J. Risk Management
The District is exposed to various risks of loss related to theft of, damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The District purchases commercial insurance to cover
general liabilities. There were no significant reductions in coverage in the past fiscal year, and there were no
settlements exceeding insurance coverage for each of the past three fiscal years.
K. Prior Period Adjustment
The Statement of Activities (Exhibit B-1) includes an adjustment for the correction of a $2,825,342 accounting
error that occurred during the fiscal year ended August 31, 2009. The prior year Statement of Net Assets
included $2,825,342 in the amount reported as “due from other governments” and the corresponding Statement
of Activities included this amount in “miscellaneous local and intermediate revenue – not restricted.” Therefore
the District’s ending net asset balance at August 31, 2009 was overstated by $2,825,342. This August 31, 2009
other financing source receivable was correctly accounted for in the fund financial statements (Exhibits C-1 and
C-3) in the District’s 2009 Comprehensive Annual Financial Report. However, the amount should have been
excluded from the government-wide financial statements as it represents loan proceeds owed to the District from
the State Energy Conservation Office, which are not revenues under the accrual basis of accounting.
Governmental Business-Type
Activities Activities Total
Net assets at August 31, 2009, as previously reported $185,709,177 $9,456,204 $195,165,381
Prior period adjustment (2,825,342) (2,825,342)
Net assets at August 31, 2009, as restated $182,883,835 $9,456,204 $192,340,039
L. Subsequent Event – Fiscal Year Change
On October 7, 2010, the Board of Trustees voted to change the District’s fiscal year-end date from August 31 st
to June 30 th . A 10 month transition year will begin on September 1, 2011 and end on June 30, 2012.
Subsequent fiscal years will begin on July 1 st and end on June 30 th .
79

COMBINING STATEMENTS
81

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Nonmajor Governmental Funds
Special Revenue Funds
The Special Revenue Funds are used to account for federal, state, and locally funded grants, as well as natural
gas lease proceeds. Grants are awarded to the District with the purpose of accomplishing specific educational
tasks as defined in the individual grant awards. Resources accounted for in the Special Revenue Funds include:
Title IV, Part A - Safe and Drug Free School & Communities Act – Support comprehensive violence and drug/alcohol education and
prevention programs.
McKinney-Vento Education for the Homeless Children and Youth – Variety of staff development and supplemental services.
Title I, Part A - Improving Basic Programs – Supplemental funds to help low-performing schools provide opportunities for children to
acquire skills needed to meet state student performance standards.
English Literacy & Civics Education – Provide or support programs for educational services to adults who are beyond compulsory school
attendance age, are not enrolled in school and function at less than secondary completion level.
IDEA-B, Formula – Operate educational programs for children with disabilities.
IDEA-B, Preschool – Program for preschool children with disabilities.
NSLP Equipment Grant - ARRA – Programs using federal reimbursement revenues originating from the United States Department of
Agriculture. (American Recovery and Reinvestment Act (ARRA) of 2009, Title VIII).
Summer Feeding Program (TDA) – Provide meals to the community based on the average number of daily participants.
Carl D. Perkins Technology – Provide career and technical education to develop new and/or improve career and technical education
programs for paid and unpaid employment.
IDEA, Part C - Early Intervention (Deaf) – Provide direct services to hearing impaired infants to toddlers, ages birth through two years of
age.
Title II, Part A - Teacher and Principal Training and Recruiting – Increase student academic achievement through increasing the number
of qualified teachers, assistant principals and principals.
Title II, Part D - Enhancing Education Through Technology – Improve student academic achievement through the use of technology in
elementary and secondary schools.
Title III, Part A - English Language Acquisition and Language Enhancement – Improve the education of limited English proficient
children by assisting the children to learn English.
Title IV, Part B - 21 st Century Community Learning Centers – Provide opportunities to establish or expand activities in community
learning centers that provide students with opportunities for academic enrichment and provide literary and related educational
development for families of students.
Title I – School Improvement Program (SIP) Academy Grant – Provide supplemental funds to help low-performing schools provide a
high-quality education.
Target Tech in Texas Collaborative – Implement and support a comprehensive system that effectively uses technology in elementary and
secondary schools to improve student academic achievement.
McKinney-Vento Education for the Homeless Children and Youth - ARRA – This fund is to be used for a variety of staff development
and supplemental services, including in-service training, counseling, psychological services and tutoring. (American Recovery and
Reinvestment Act (ARRA) of 2009, Title VIII)
Adolescent and Family Life – Provide care and prevention to pregnant and non-pregnant adolescents, adolescent parents, and their
families.
IDEA - Part B, Formula - ARRA – Educational programs for children with disabilities. (American Recovery and Reinvestment Act
(ARRA) of 2009, Title VIII).
IDEA - Part B, Preschool - ARRA – Educational programs for preschool children with disabilities. (American Recovery and
Reinvestment Act (ARRA) of 2009, Title VIII)
Title I, Part A - Improving Basic Programs - ARRA – Provide supplemental funds to help low-performing schools provide opportunities
for children to acquire skills needed to meet state student performance standards. (American Recovery and Reinvestment Act (ARRA) of
2009, Title VIII).
Latino Youth Mentoring Program – A school-based peer mentoring program in which upper-level high school students mentor new
students and incoming ninth graders through student club organizations.
Foreign Language Assistance Program – Provide supplemental funds to improve and expand foreign language programs for students.
82

School Based Health Clinics – To provide a medical home to AISD students and their siblings near and around their home campuses.
Title VI, Part A - Summer School LEP – Summer school program for LEP students only if a bilingual program is part of the standard
curriculum.
SSA - Adult Basic Education (Federal) – Provide or support programs for educational services to adults who are beyond compulsory
school attendance age.
SSA - IDEA-B, Discretionary – Support ESC basic special education component, regional day school programs for the deaf, private
residential placements, and other emerging needs.
SSA - IDEA-B, Formula Deaf – Operate educational programs for children with hearing disabilities.
SSA - IDEA-B, Preschool Deaf – Provide educational programs for preschool children with hearing disabilities.
Visually Handicapped – Provide teachers and services to students who are visually handicapped.
Life Skills Program – Provide pregnant and parenting students the services needed for pregnant students to remain in school until
completion.
Advanced Placement Incentives – Professional development of teachers teaching advanced classes.
Investment Capital Fund – This fund is use to help individual public school campuses implement practices and procedures consistent with
school deregulation and school restructuring through staff development and training .
Optional Extended - Year Program – Funds received for extended-year programs.
Student Success Initiative (Accelerated Reading/Accelerated Math) – Provide training for teachers and the implementation of
scientific, research-based programs to support students in their reading development in the early grades of school.
Texas High School Completion and Success – Support the establishment and implementation of comprehensive high school
completion and success initiatives.
Technology – Purchase technological software or equipment that contributes to student learning, or to pay for training for educational
personnel involved in the use of such materials.
Pre-K Early Start – This fund classification is to be used to account, on a project basis, for funds granted to implement or expand
kindergarten or pre-kindergarten programs .
Master Reading/Master Mathematics Teacher – Provide stipends to school districts with Master Reading or Master Mathematics teachers
who are certified.
Texas Fitness Now (TFN) – Provide assistance in support of school physical education and fitness programs for students in
grades 6, 7, and/or 8.
Texas Educator Excellence Grant (TEEG) – Incentive program awarded to economically disadvantaged campuses.
High School Allotment – Funds that are given to districts to prepare high school students to go on to higher education, encourage
students to take advanced academic course work, increase the rigor of academic course work, align secondary and post secondary
curriculum and support promising high school completion and success initiatives in grades 6 through 12.
Read to Succeed – Provide educational materials for the school library through license plate purchases.
SSA - Adult Basic Education – Provide or support programs for educational services to adults who are beyond compulsory
school attendance age, are not enrolled in school and function at less than secondary completion level.
Regional Day School for the Deaf – Provide funding for staff and services to students with auditory handicaps.
Community Grants-National Semi Conductor – Gain public support for the work of the school district through the community and staff.
African-American Male Initiative – School-based mentoring program designed to encourage African-American male students to pursue a
college education.
Venture Child Care – Provide child care for children from the age of 2 weeks to 5 years old.
United Way Early Learning/ Student Readiness – The intent of this grant is to prepare low-income children in select areas of Tarrant
County to enter kindergarten with the appropriate literacy, social, emotional, and cognitive skills necessary to be successful in the school
environment.
Arlington Education Foundation – Nonprofit tax-exempt organization which raises private funds for the District.
83

Data 204 206 211 220
Control Title IV-A McKinney Title I-A English
Codes Safe and Drug Homeless Improving Literacy &
Free Schools Education Basic Programs Civics Ed.
Assets
1110 Cash and cash equivalents
$ $ $ 2,050,448 $
1240 Due from other governments 52,867 71,374 1,269,343 9,288
1260 Due from other funds
1290 Other receivables 3,749
1000 Total assets $ 52,867 $ 71,374 $ 3,323,540 $ 9,288
Liabilities and fund balances
Liabilities:
2110 Accounts payable $ 1,209 $ 1,177 $ 98,103 $
2170 Due to other funds 51,658 70,197 3,222,437 9,288
2180 Due to other governments 3,000
2300 Unearned revenues
2000 Total liabilities 52,867 71,374 3,323,540 9,288
Fund balances:
Reserved for:
3440 Outstanding encumbrances
Unreserved and undesignated:
3610 Reported in special revenue funds
3000 Total fund balance
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
August 31, 2010
4000 Total liabilities and
fund balance $ 52,867 $ 71,374 $ 3,323,540 $ 9,288
84

Exhibit F-1
(Page 1 of 5)
224 225 240 242 244 253 255
NSLP Summer Carl D. IDEA-C Title II-A
IDEA-B IDEA-B Equipment Feeding Perkins Early Principal
Formula Preschool Grant ARRA Program Technology Intervention Training
$ $ $ $ $ $
$
858,319 52,984 1,429 93,901 232,429
20,787
$ 858,319 $ 52,984 $ $ 22,216 $ 93,901 $ $ 232,429
$ 89,912 $ $ $ 22,216 $ $ $ 6,808
768,407 52,984 93,901 225,621
858,319 52,984 22,216 93,901 232,429
$ 858,319 $ 52,984 $ $ 22,216 $ 93,901 $ $ 232,429
85

Data 262 263 265 276
Control
21st Century
Codes Title II-D Title III-A Community Title I
Technology LEP Learning SIP Academy
Assets
1110 Cash and cash equivalents
$ $ $ $
1240 Due from other governments 54,668 929,204 1,259,857 45,746
1260 Due from other funds
1290 Other receivables
1000 Total assets $ 54,668 $ 929,204 $ 1,259,857 $ 45,746
Liabilities and fund balances
Liabilities:
2110 Accounts payable $ 9,235 $ 7,446 $ 36,675 $ 11,569
2170 Due to other funds 45,433 921,758 1,223,182 4,178
2180 Due to other governments 29,999
2300 Unearned revenues
2000 Total liabilities 54,668 929,204 1,259,857 45,746
Fund balances:
Reserved for:
3440 Outstanding encumbrances
Unreserved and undesignated:
3610 Reported in special revenue funds
3000 Total fund balance
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
August 31, 2010
4000 Total liabilities and
fund balance $ 54,668 $ 929,204 $ 1,259,857 $ 45,746
86

Exhibit F-1
(Page 2 of 5)
279 280 282 283 284 285 287
Target Tech McKinney Adolescent IDEA-B IDEA-B Title I-A Latino
in Texas Homeless & Family Formula Preschool ARRA Youth
Collaborative ARRA Life ARRA ARRA Stimulus Mentoring
$ $ $ $ $ $ $
80,575 112,250 217,072 2,850,922 437,891 9,881
$ 80,575 $ 112,250 $ 217,072 $ 2,850,922 $ $ 437,891 $ 12,548
2,667
$ 23,061 $ $ 4,651 $ 140,993 $ $ 19,043 $ 75
57,514 112,250 209,043 2,709,929 418,848 12,473
3,378
80,575 112,250 217,072 2,850,922 437,891 12,548
$ 80,575 $ 112,250 $ 217,072 $ 2,850,922 $ $ 437,891 $ 12,548
87

Data 288 289 309 315
Control Foreign Miscellaneous Adult
Codes Language Federal Basic IDEA-B
Assistance Programs Education Discretionary
Assets
1110 Cash and cash equivalents $ $ $ $
1240 Due from other governments 212,430 115,525 86,192
1260 Due from other funds
1290 Other receivables
1000 Total assets $ 212,430 $ 115,525 $ $ 86,192
Liabilities and fund balances
Liabilities:
2110 Accounts payable $ 4,866 $ $ $
2170 Due to other funds 207,564 115,525 86,192
2180 Due to other governments
2300 Unearned revenues
2000 Total liabilities 212,430 115,525 86,192
Fund balances:
Reserved for:
3440 Outstanding encumbrances
Unreserved and undesignated:
3610 Reported in special revenue funds
3000 Total fund balance
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
August 31, 2010
4000 Total liabilities and
fund balance $ 212,430 $ 115,525 $ $ 86,192
88

Exhibit F-1
(Page 3 of 5)
316 317 385 394 397 399 401
IDEA-B IDEA-B State Life Advanced Investment Optional
Formula Preschool Visual Skills Placement Capital Extended
(Deaf) (Deaf) Impairment Program Incentives Fund Year
$ $ $ $ $ $ $
4,008 6,592 23,237 40,525 4,804 260,760
17,619
$ 4,008 $ 6,592 $ $ 23,237 $ 58,144 $ 4,804 $ 260,760
$ $ 6,519 $ $ 960 $ $ 4,116 $ 138
4,008 73 22,277 688 260,622
58,144
4,008 6,592 23,237 58,144 4,804 260,760
$ 4,008 $ 6,592 $ $ 23,237 $ 58,144 $ 4,804 $ 260,760
89

Data 404 409 411 415
Control Student TX HS Pre-K
Codes Success Completion Technology Early
Initiative Success Allotment Start
Assets
1110 Cash and cash equivalents $ $ $ $
1240 Due from other governments 77,962 89,657 959,141
1260 Due from other funds 88,814 477,576
1290 Other receivables 2,989
1000 Total assets $ 77,962 $ 88,814 $ 570,222 $ 959,141
Liabilities and fund balances
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
August 31, 2010
Liabilities:
2110 Accounts payable $ $ 7,485 $ 4,001 $ 14,126
2170 Due to other funds 77,962 945,015
2180 Due to other governments
2300 Unearned revenues 81,329
2000 Total liabilities 77,962 88,814 4,001 959,141
Fund balances:
Reserved for:
3440 Outstanding encumbrances 131,285
Unreserved and undesignated:
3610 Reported in special revenue funds 434,936
3000 Total fund balance 566,221
4000 Total liabilities and
fund balance $ 77,962 $ 88,814 $ 570,222 $ 959,141
90

Exhibit F-1
(Page 4 of 5)
421 424 426 428 429 431 435
Master Texas Texas High Adult Regional Day
Reading Fitness Educators School Read to Basic School for the
Teacher Now Exellence Allotment Succeed Education Deaf
$ $ $ $ $ $ $
63,873 193 8,369 31,132
193
$ $ 63,873 $ $ $ 386 $ 8,369 $ 31,132
$ $ 6,979 $ $ $ 386 $ $
56,785 8,369 31,132
109
63,873 386 8,369 31,132
$ $ 63,873 $ $ $ 386 $ 8,369 $ 31,132
91

Data 492 493 494 496
Control National African
Codes Semi American Male Venture United
Conductor Initiative Childcare Way
Assets
1110 Cash and cash equivalents $ $ $ $
1240 Due from other governments
1260 Due from other funds 63,445 15,701 25,487 51,788
1290 Other receivables
1000 Total assets $ 63,445 $ 15,701 $ 25,487 $ 51,788
Liabilities and fund balances
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Balance Sheet
Nonmajor Governmental Funds
August 31, 2010
Liabilities:
2110 Accounts payable $ 15,627 $ $ $
2170 Due to other funds
2180 Due to other governments
2300 Unearned revenues 47,818 15,701 51,788
2000 Total liabilities 63,445 15,701 51,788
Fund balances:
Reserved for:
3440 Outstanding encumbrances
Unreserved and undesignated:
3610 Reported in special revenue funds 25,487
3000 Total fund balance 25,487
4000 Total liabilities and
fund balance $ 63,445 $ 15,701 $ 25,487 $ 51,788
92

Exhibit F-1
(Page 5 of 5)
497 Total Total
Arlington Nonmajor Nonmajor
Education Special Governmental
Foundation Revenue Funds Funds
$ $ 2,050,448 $ 2,050,448
10,624,400 10,624,400
29,934 791,344 791,344
9,405 9,405
$ 29,934 $ 13,475,597 $ 13,475,597
$ 6,006 $ 543,382 $ 543,382
12,025,313 12,025,313
33,108 33,108
23,928 282,086 282,086
29,934 12,883,889 12,883,889
131,285 131,285
460,423 460,423
591,708 591,708
$ 29,934 $ 13,475,597 $ 13,475,597
93

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended August 31, 2010
Data 204 206 211 220
Control Title IV-A McKinney Title I-A English
Codes Safe and Drug Homeless Improving Literacy &
Free Schools Education Basic Programs Civics Ed.
Revenues
5700 Total local and intermediate sources $ $ $ $
5800 State program revenues
5900 Federal program revenues 205,281 119,625 13,047,953 90,474
5020 Total revenues 205,281 119,625 13,047,953 90,474
Expenditures
Current:
0011 Instruction 53,717 8,104 9,633,596 60,655
0012 Instructional resources and
media services 396,870
0013 Curriculum and instructional
staff development 900 932,803 2,482
0021 Instructional leadership 76,758 88,883 531,180 19,946
0023 School leadership 1,111 4,329
0031 Guidance, counseling, and
evaluation services 5,854 7,209
0032 Social work services 71,517 3,747 294,310
0033 Health services 99 5,557
0034 Pupil transportation 12,842
0035 Food services
0036 Cocurricular/extracurricular activities
0051 Plant maintenance and operations
0053 Data processing services 29,803
0061 Community services 1,179 6,049 1,213,651 182
6030 Total expenditures 205,281 119,625 13,047,953 90,474
1100 Excess (deficiency) revenues
over expenditures
Other financing sources (uses)
8911 Transfers out
7080 Total other financing sources (uses)
1200 Net change in fund balance
0100 Fund balance - September 1, 2009
3000 Fund balance - August 31, 2010 $ $ $ $
94

Exhibit F-2
(Page 1 of 5)
224 225 240 242 244 253 255
NSLP Summer Carl D. IDEA-C Title II-A
IDEA-B IDEA-B Equipment Feeding Perkins Early Principal
Formula Preschool Grant ARRA Program Technology Intervention Training
$ $ $ $ $ $ $
11,178,476 203,739 70,446 645,952 809,220 581 1,596,224
11,178,476 203,739 70,446 645,952 809,220 581 1,596,224
7,627,829 203,739 701,743 581 292
143,703
1,052,328 36,492 1,447,322
682,655 14,854 4,907
1,730,293 56,131
78,464
70,446 553,697
6,907
11,178,476 203,739 70,446 553,697 809,220 581 1,596,224
92,255
(92,255)
(92,255)
$ $ $ $ $ $ $
95

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended August 31, 2010
Data 262 263 265 276
Control
21st Century
Codes Title II-D Title III-A Community Title I
Technology LEP Learning SIP Academy
Revenues
5700 Total local and intermediate sources $ $ $ $
5800 State program revenues
5900 Federal program revenues 87,092 1,598,663 1,737,148 62,130
5020 Total revenues 87,092 1,598,663 1,737,148 62,130
Expenditures
Current:
0011 Instruction 43,699 1,037,009 28,693
0012 Instructional resources and
media services
0013 Curriculum and instructional
staff development 43,393 418,154 62,130
0021 Instructional leadership 64,748
0023 School leadership
0031 Guidance, counseling, and
evaluation services 24,761 19,200
0032 Social work services
0033 Health services
0034 Pupil transportation 846
0035 Food services
0036 Cocurricular/extracurricular activities
0051 Plant maintenance and operations 24
0053 Data processing services
0061 Community services 53,145 1,689,231
6030 Total expenditures 87,092 1,598,663 1,737,148 62,130
1100 Excess (deficiency) revenues
over expenditures
Other financing sources (uses)
8911 Transfers out
7080 Total other financing sources (uses)
1200 Net change in fund balance
0100 Fund balance - September 1, 2009
3000 Fund balance - August 31, 2010 $ $ $ $
96

Exhibit F-2
(Page 2 of 5)
279 280 282 283 284 285 287
Target Tech McKinney Adolescent IDEA-B IDEA-B Title I-A Latino
in Texas Homeless & Family Formula Preschool ARRA Youth
Collaborative ARRA Life ARRA ARRA Stimulus Mentoring
$ $ $ $ $ $
862,508 223,984 356,905 5,590,152 36,172 4,103,023 100,891
862,508 223,984 356,905 5,590,152 36,172 4,103,023 100,891
708,395 42,872 43 4,358,038 36,172 3,181,139
167,932
148,914 8,000 668 762,374 365,698
10,402 3,122 140,425 43,373
8,131
5,199
289,623 246,646 118,035
41,396 86,641
3,606 53,769
31,839
24,996
89,475 59,843 3,904 129,687
2,387 100,891
862,508 223,984 356,905 5,590,152 36,172 4,103,023 100,891
$ $ $ $ $ $ $
97

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended August 31, 2010
Data 288 289 309 315
Control Foreign Miscellaneous Adult
Codes Language Federal Basic IDEA-B
Assistance Programs Education Discretionary
Revenues
5700 Total local and intermediate sources $ $ $ $
5800 State program revenues
5900 Federal program revenues 277,607 202,135 63,052 86,086
5020 Total revenues 277,607 202,135 63,052 86,086
Expenditures
Current:
0011 Instruction 125,125 109,585 61,552 85,792
0012 Instructional resources and
media services
0013 Curriculum and instructional
staff development 152,048 294
0021 Instructional leadership
0023 School leadership
0031 Guidance, counseling, and
evaluation services 1,500
0032 Social work services
0033 Health services 21,270
0034 Pupil transportation 434
0035 Food services
0036 Cocurricular/extracurricular activities
0051 Plant maintenance and operations 71,280
0053 Data processing services
0061 Community services
6030 Total expenditures 277,607 202,135 63,052 86,086
1100 Excess (deficiency) revenues
over expenditures
Other financing sources (uses)
8911 Transfers out
7080 Total other financing sources (uses)
1200 Net change in fund balance
0100 Fund balance - September 1, 2009
3000 Fund balance - August 31, 2010 $ $ $ $
98

Exhibit F-2
(Page 3 of 5)
316 317 385 394 397 399 401
IDEA-B IDEA-B State Life Advanced Investment Optional
Formula Preschool Visual Skills Placement Capital Extended
(Deaf) (Deaf) Impairment Program Incentives Fund Year
$ $ $ $
$ $ $
26,764 182,202 95,094 10,720 260,760
26,254 6,519
26,254 6,519 26,764 182,202 95,094 10,720 260,760
26,254 6,519 26,764 5,810 54,569 3,379 260,760
1,486
40,525 7,054
56,124
9,600 199
109,182 88
26,254 6,519 26,764 182,202 95,094 10,720 260,760
$ $ $ $ $ $ $
99

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended August 31, 2010
Data 404 409 411 415
Control Student TX HS Pre-K
Codes Success Completion Technology Early
Initiative Success Allotment Start
Revenues
5700 Total local and intermediate sources $ $ $ $
5800 State program revenues 779,616 145,534 1,717,383 2,425,607
5900 Federal program revenues
5020 Total revenues 779,616 145,534 1,717,383 2,425,607
Expenditures
Current:
0011 Instruction 777,747 88,008 976,978 2,145,969
0012 Instructional resources and
media services
0013 Curriculum and instructional
staff development 1,869 696,595 74,454
0021 Instructional leadership 276 171,619 63,528
0023 School leadership
0031 Guidance, counseling, and
evaluation services 57,250 36,482
0032 Social work services
0033 Health services 6,369
0034 Pupil transportation
0035 Food services
0036 Cocurricular/extracurricular activities
0051 Plant maintenance and operations
0053 Data processing services
0061 Community services 98,805
6030 Total expenditures 779,616 145,534 1,845,192 2,425,607
1100 Excess (deficiency) revenues
over expenditures (127,809)
Other financing sources (uses)
8911 Transfers out
7080 Total other financing sources (uses)
1200 Net change in fund balance (127,809)
0100 Fund balance - September 1, 2009 694,030
3000 Fund balance - August 31, 2010 $ $ $ 566,221 $
100

Exhibit F-2
(Page 4 of 5)
421 424 426 428 429 431 435
Master Texas Texas High Adult Regional Day
Reading Fitness Educators School Read to Basic School for the
Teacher Now Exellence Allotment Succeed Education Deaf
$ $ $
$ $ $ $
10,000 63,764 1,320,000 1,080 31,695 198,117
10,000 63,764 1,320,000 1,080 31,695 198,117
10,000 62,496 1,189,401 31,695 198,117
1,268 2,274
10,597 1,080
41,769
23,388
1,810
14,004
15,271
1,996
9,836
4,292
5,362
10,000 63,764 1,320,000 1,080 31,695 198,117
(3,585,325)
(3,585,325)
(3,585,325)
3,585,325
$ $ $ $ $ $ $
101

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended August 31, 2010
Data 492 493 494 496
Control National African
Codes Semi American Male Venture United
Conductor Initiative Childcare Way
Revenues
5700 Total local and intermediate sources $ 28,962 $ 4,879 $ 241 $
5800 State program revenues
5900 Federal program revenues 67,076
5020 Total revenues 28,962 4,879 67,317
Expenditures
Current:
0011 Instruction 1,502
0012 Instructional resources and
media services
0013 Curriculum and instructional
staff development 28,962
0021 Instructional leadership
0023 School leadership
0031 Guidance, counseling, and
evaluation services
0032 Social work services
0033 Health services
0034 Pupil transportation
0035 Food services
0036 Cocurricular/extracurricular activities 3,377
0051 Plant maintenance and operations
0053 Data processing services
0061 Community services 55,105
6030 Total expenditures 28,962 4,879 55,105
1100 Excess (deficiency) revenues
over expenditures 12,212
Other financing sources (uses)
8911 Transfers out
7080 Total other financing sources (uses)
1200 Net change in fund balance 12,212
0100 Fund balance - September 1, 2009 13,275
3000 Fund balance - August 31, 2010 $ $ $ 25,487 $
102

Exhibit F-2
(Page 5 of 5)
497 Total Total
Arlington Nonmajor Nonmajor
Education Special Governmental
Foundation Revenue Funds Funds
$ 30,010 $ 64,092 $ 64,092
7,268,336 7,268,336
43,455,368 43,455,368
30,010 50,787,796 50,787,796
26,577 34,000,915 34,000,915
2,613 722,795 722,795
6,287,001 6,287,001
1,918,162 1,918,162
55,340 55,340
2,672,496 2,672,496
499,421 499,421
183,138 183,138
55,760 55,760
639,414 639,414
108,651 108,651
106,136 106,136
39,294 39,294
820 3,522,615 3,522,615
30,010 50,811,138 50,811,138
(23,342) (23,342)
(3,677,580) (3,677,580)
(3,677,580) (3,677,580)
(3,700,922) (3,700,922)
4,292,630 4,292,630
$ $ 591,708 $ 591,708
103

104

FIDUCIARY FUND
Agency Fund
Student Activity Fund - An unbudgeted fund that accounts for the receipt and disbursement of monies from
student activity organizations. This fund has no equity; assets are equal to liabilities, and it does not include
revenues and expenditures for general operations of the school district.
105

106

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Changes in Assets and Liabilities
Agency Fund
For the Year Ended August 31, 2010
Exhibit G-1
97 5030 6050 98
Balance
Balance
September 1, August 31,
2009 Additions Deductions 2010
Student Activity Fund
Assets
Cash and cash equivalents $ 4,339,120 $ 9,320,035 $ 9,536,989 $ 4,122,166
Total assets $ 4,339,120 $ 9,320,035 $ 9,536,989 $ 4,122,166
Liabilities
Accounts payable $ 126,829 $ 67,390 $ $ 194,219
Due to student groups 4,212,291 9,252,645 9,536,989 3,927,947
Total liabilities $ 4,339,120 $ 9,320,035 $ 9,536,989 $ 4,122,166
107

108

COMPLIANCE SCHEDULES
Section 21.256, Texas Education Code, requires an annual audit and authorizes the State Board of
Education, with the approval of the State Auditor, to prescribe minimum regulations and report forms for
the annual audit. The Financial Accountability System Resource Guide of the Texas Education Agency
prescribes the forms and formats to be filed with the Texas Education Agency. This section fulfills the
requirements for certain forms and formats required to be filed with the Texas Education Agency.
109

Last Ten Years Ended
August 31,
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Delinquent Taxes Receivable
Fiscal Year Ended August 31, 2010
1 2
Maintenance
Tax Rates
Debt Service
3
Assessed/Appraised
Value for School
Tax Purposes
2001 and prior years $ 1.350
$ 0.274 $ 15,133,557,088
2002 1.408 0.247 16,527,842,145
2003 1.480 0.261 17,082,548,456
2004 1.480 0.255 17,611,412,385
2005 1.500 0.255 17,683,005,387
2006 1.500 0.245 18,250,180,575
2007 1.370 0.240 19,155,825,422
2008 1.040 0.238 20,074,396,432
2009 1.040 0.232 20,905,800,393
2010 (school year under audit) 1.040 0.232 20,756,079,556
1000 TOTALS
9000 - Portion of Row 1000 for Taxes Paid
Into Tax Increment Zone Under Chapter 311,Tax Code
110

Exhibit H-1
10 20 31 32 40 50
Beginning Current Entire Ending
Balance Year's Maintenance Debt Service Year's Balance
9/1/09 Total Levy Collections Collections Adjustments 8/31/10
$ 4,760,231 $ $ 29,910 $ 6,305 $ (560,344) $ 4,163,672
1,007,103 10,479 1,836 (33,240) 961,548
1,102,423 13,497 2,376 (3,632) 1,082,918
1,105,685 34,571 5,957 (4,351) 1,060,806
1,135,435 40,023 6,804 (4,598) 1,084,010
928,310 66,766 10,926 (6,662) 843,956
1,002,608 130,197 22,808 (7,373) 842,230
1,284,923 372,545 85,255 (44,265) 782,858
3,651,008 1,456,549 324,923 (575,511) 1,294,025
250,819,373 209,153,693 46,657,382 8,270,922 3,279,220
$ 15,977,726 $ 250,819,373 $ 211,308,230 $ 47,124,572 $ 7,030,946 $ 15,395,243
$ 2,295,826 $ 380,762
111

Exhibit H-2
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Expenditures for Computation of Indirect Cost for 2011-2012
General and Special Revenue Funds
Fiscal Year Ended August 31, 2010
Function 41 and Related Function 53 - General Administration
1 2 3 4 5 6 7
(702) (703) (701) (750) (720) (Other)
Account Account School Tax Supt's Indirect Direct Miscel-
Number Name Board Collection Office Cost Cost laneous Total
611X-6146 PAYROLL COSTS
$ $ $ 398,204 $ 5,452,970 $ $ $ 5,851,174
6149 Leave - separating employees
in 41 & 53 33,656 33,656
6149 Leave - separating employees
not in 41 & 53 241,437 241,437
6211 Legal services 513,164 513,164
6212 Audit services 100,000 100,000
6213 Tax appraisal and collection
621X Other professional services 78,709 78,709
6240 Contract maint. and repair 102,720 102,720
6260 Rentals 32,429 32,429
6290 Miscellaneous contr. 47,494 662,220 709,714
6311 Gasoline and other fuels 6,441 6,441
6320 Textbooks and reading 1,249 7,513 8,762
639X Other supplies materials 2,041 2,279 251,058 255,378
6410 Travel, subsistence, stipends 18,893 170 22,709 41,772
6420 Insurance and bonding 1,159 1,159
6430 Election costs 151,961 151,961
6490 Miscellaneous operating 32,856 1,385 13,365 77,503 125,109
6600 Capital outlay 19,939 19,939
6000 $ 766,409 $ 1,385 $ 415,267 $ 6,967,804 $ 102,720 $ 19,939 $ 8,273,524
Total expenditures/expenses for General and Special Revenue Funds (Schedule C-3)
and Enterprise Fund (Food Service) (Exhibit D-2): $ 512,156,821
Less: Deductions of unallowable costs
FISCAL YEAR
Total capital outlay (6600) (Include only funds 100-199/200-499/701) (10) $ 772,969
Total debt and lease (6500) (Include only funds 100-199/200-499/701) (11) 968,496
Plant maintenance (Function 51, 6100-6400) (12) 41,436,478
Food (Function 35, 6341 and 6499) (13) 7,765,338
Stipends (6413) (14) 9,770
Column 4 (above) - Total indirect cost 6,967,804
Sub Total: 57,920,855
Net allowed direct cost $ 454,235,966
CUMULATIVE
Total cost of buildings before depreciation (1520) (15) $ 675,394,488
Historical cost of buildings over 50 years old (16) 8,628,849
Amount of federal money in building cost (net of above) (17)
Total cost of furniture and equipment before depreciation (1530 & 1540) (18) 33,588,071
Historical cost of furniture and equipment over 16 years old (19) 2,568,306
Amount of federal money in furniture and equipment (net of above) (20) 866,419
(8) Note A - $1,498,778 in Function 53 expenditures are included in this report on administrative costs.
112

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Debt Service Fund
For the Year Ended August 31, 2010
Exhibit H-3
Data
Variance with
Control
Final Budget
Codes Budgeted Amounts Actual Amounts Positive or
Original Final (GAAP Basis) (Negative)
Revenues
5800 State program revenues $ 47,155,510 $ 47,105,111 $ 47,205,822 $ 100,711
5020 Total revenues 47,155,510 47,105,111 47,205,822 100,711
Expenditures
0071 Debt service - principal on long-term debt 20,466,261 28,395,000 28,395,000
0072 Debt service - interest on long-term debt 27,298,568 19,400,096 19,400,095 1
0073 Debt service - bond issuance cost and fees 6,000 12,500 11,200 1,300
6030 Total expenditures 47,770,829 47,807,596 47,806,295 1,301
1100 Excess (deficiency) of revenues over expenditures (615,319) (702,485) (600,473) 102,012
Other financing sources
7911 Capital related debt issued (regular bonds)
7916 Premium on issuance of bonds
8949 Redemption of refunded bonds
Total other financing sources (uses)
1200 Net change in fund balance (615,319) (702,485) (600,473) 102,012
0100 Fund balance - September 1 (beginning) 11,493,475 11,493,475 11,493,475
3000 Fund balance - August 31 (ending) $ 10,878,156 $ 10,790,990 $ 10,893,002 $ 102,012
113

Exhibit H-4
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
Capital Projects Fund
For the Year Ended August 31, 2010
Data
Variance with
Control
Final Budget
Codes Budgeted Amounts Actual Amounts Positive or
Original Final (GAAP Basis) (Negative)
Revenues
5700 Total local and intermediate sources $ 990,135 $ 650,135 $ 692,089 $ 41,954
5020 Total revenues 990,135 650,135 692,089 41,954
Expenditures
0011 Instruction 13,810,583 3,139,559 10,671,024
0034 Pupil transportation 2,510,000 2,510,000
0036 Cocurricular/extracurricular activities 130,000 44,668 85,332
0051 Plant maintenance and operations 19,076,871 11,962,671 7,114,200
0052 Security and monitoring services 3,234,000 213,186 3,020,814
0053 Data processing services 1,772,000 304,797 1,467,203
0073 Debt service - bond issuance cost and fees 1,114,560 457,527 657,033
0081 Facilities acquisition and construction 26,844,234 7,543,519 19,300,715
6030 Total expenditures 68,492,248 23,665,927 44,826,321
1100 Excess (deficiency) of revenues over expenditures 990,135 (67,842,113) (22,973,838) 44,868,275
Other financing sources
7911 Capital related debt issued (regular bonds) 65,757,000 65,755,000 (2,000)
7912 Sale of real and personal property 917,386 917,386
7916 Premium on issuance of bonds 1,748,110 1,748,110
7080 Total other financing sources 67,505,110 68,420,496 915,386
1200 Net change in fund balance 990,135 (337,003) 45,446,658 45,783,661
0100 Fund balance - September 1 (beginning) 21,994,575 21,994,575 21,994,575
3000 Fund balance - August 31 (ending) $ 22,984,710 $ 21,657,572 $ 67,441,233 $ 45,783,661
114

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Revenues, Expenses, and Changes in Fund Net Assets - Budget and Actual
Enterprise Fund
For the Year Ended August 31, 2010
Exhibit H-5
Operating revenues:
Variance with
Final Budget
Budgeted Amounts
Actual Amounts Positive or
Original Final (GAAP Basis) (Negative)
Local and intermediate sources $ 7,550,391 $ 6,550,391 $ 6,720,819 $ 170,428
State program revenues 189,255 189,255 192,910 3,655
Total operating revenues 7,739,646 6,739,646 6,913,729 174,083
Operating expenses:
Payroll costs 10,977,578 10,918,725 10,196,995 721,730
Professional and contract services 1,500,316 1,587,420 1,506,683 80,737
Supplies and materials 13,264,372 13,230,321 13,134,643 95,678
Other operating costs 130,400 136,200 153,204 (17,004)
Depreciation 350,000 350,000 349,699 301
Total operating expenses 26,222,666 26,222,666 25,341,224 881,442
Operating loss (18,483,020) (19,483,020) (18,427,495) 1,055,525
Nonoperating revenues (expenses):
National school breakfast program 3,425,362 3,425,362 4,076,237 650,875
National school lunch program 13,740,612 14,740,612 14,694,255 (46,357)
Donated commodities (USDA) 1,441,030 1,441,030 1,615,057 174,027
Earnings from temporary deposits and investments 28,000 28,000 12,228 (15,772)
Interest expense (4,628) (4,628) (4,556) 72
Total nonoperating revenues 18,630,376 19,630,376 20,393,221 762,845
Income (loss) before transfers 147,356 147,356 1,965,726 1,818,370
Transfers in 92,255 92,255
Change in net assets 147,356 147,356 2,057,981 1,910,625
Total net assets - September 1 (beginning) 9,542,435 9,542,435 9,542,435
Total net assets - August 31 (ending) $ 9,689,791 $ 9,689,791 $ 11,600,416 $ 1,910,625
115

116

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statistical Section Contents
(Unaudited)
This part of the Arlington Independent School District’s comprehensive annual financial report
presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the District’s
overall financial health.
Tables
Financial Trends 1 - 7
These schedules contain trend information to help the reader
understand how the District’s financial performance and wellbeing
have changed over time.
Revenue Capacity 8 - 12
These schedules contain information to help the reader assess
the District’s most significant local revenue source, the
property tax.
Debt Capacity 13 - 16
These schedules present information to help the reader assess the
affordability of the District’s current levels of outstanding debt
and the District’s ability to issue additional debt in the future.
Demographic and Economic Information 17 - 18
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
District’s financial activities take place.
Operating Information 19 - 22
These schedules contain service and infrastructure data to help
the reader understand how the information in the District’s
financial report relates to the services the District provides and
the activities it performs.
117

118

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Net Assets By Component
Last Ten Fiscal Years 1
(Unaudited)
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
Governmental Activities
Invested in capital assets, net of related debt $ 68,380,667 $ 60,505,124 $ 65,864,715 $ 100,933,517 $ 124,204,579 $ 125,249,337 $ 127,761,100 $ 130,115,177 $ 147,771,497
Restricted for federal and state programs 591,708
Restricted for Debt Service 5,020,155 6,743,969 7,501,646 8,697,909 10,484,767 9,906,502 11,179,949 11,493,475 11,514,055
Unrestricted 23,872,588 38,332,439 48,398,069 21,059,620 14,461,322 30,752,492 32,833,653 41,275,183 17,856,878
Total Governmental Net Assets $ 97,273,410 $ 105,581,532 $ 121,764,430 $ 130,691,046 $ 149,150,668 $ 165,908,331 $ 171,774,702 $ 182,883,835 $ 177,734,138
Business-Type Activities
Invested in capital assets, net of related debt $ 3,170,996 $ 2,971,095 $ 2,870,421 $ 2,824,634 $ 2,721,646 $ 2,766,693 $ 4,743,464 $ 4,842,862 $ 5,073,483
Restricted for Debt Service
Unrestricted (26,651) (248,251) (122,560) 1,590,218 3,527,224 4,489,698 2,747,825 4,613,342 6,441,746
Total Business-Type Net Assets $ 3,144,345 $ 2,722,844 $ 2,747,861 $ 4,414,852 $ 6,248,870 $ 7,256,391 $ 7,491,289 $ 9,456,204 $ 11,515,229
Total Primary Government
Invested in capital assets, net of related debt $ 71,551,663 $ 63,476,219 $ 68,735,136 $ 103,758,151 $ 126,926,225 $ 128,016,030 $ 132,504,564 $ 134,958,039 $ 152,844,980
Restricted for federal and state programs 591,708
Restricted for Debt Service 5,020,155 6,743,969 7,501,646 8,697,909 10,484,767 9,906,502 11,179,949 11,493,475 11,514,055
Unrestricted 23,845,937 38,084,188 48,275,509 22,649,838 17,988,546 35,242,190 35,581,478 45,888,525 24,298,624
Total Primary Government Net Assets $ 100,417,755 $ 108,304,376 $ 124,512,291 $ 135,105,898 $ 155,399,538 $ 173,164,722 $ 179,265,991 $ 192,340,039 $ 189,249,367
Source: The Statement of Net Assets for the Arlington Independent School District
1 Amounts were not available prior to the GASB 34 requirements in 2002.
Table 1
119

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Expenses, Program Revenues, and Net (Expense) Revenue
Last Ten Fiscal Years 1
(Unaudited)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Expenses
Governmental Activities
Instruction $ 240,951,810 $ 252,019,402 $ 260,156,786 $ 271,824,060 $ 280,740,851 $ 294,926,625 $ 318,135,876 $ 319,106,962 $ 333,613,428
Instructional resources and media services 6,212,404 5,673,814 6,271,261 6,429,819 6,370,496 6,420,665 6,858,837 6,762,018 7,124,969
Curriculum and instructional staff development 3,554,445 3,535,879 4,289,857 5,933,027 4,756,842 5,902,262 7,619,668 9,359,461 9,817,622
Instructional leadership 7,012,730 6,507,634 7,485,779 7,672,153 7,942,270 8,127,973 8,380,036 6,965,450 7,370,271
School leadership 22,230,143 22,749,685 23,316,780 23,834,273 24,592,345 25,680,276 26,363,944 25,854,423 26,025,054
Guidance, counseling, and evaluation services 13,828,490 14,268,887 16,580,335 17,406,857 18,387,991 19,700,600 20,717,715 21,258,719 21,797,944
Social work services 1,121,334 1,152,055 1,179,978 1,304,353 1,554,436 1,792,644 1,869,664 2,051,433 2,402,024
Health services 3,966,331 3,863,209 3,953,430 4,198,376 4,461,762 4,809,313 5,108,663 5,157,522 5,221,341
Pupil Transportation 8,090,814 9,629,259 9,446,386 9,511,810 9,399,263 9,543,739 10,737,715 10,909,491 11,221,782
Food services 826,362 1,219,918 1,155,292 943,712 1,018,702 479,770 971,941 546,162 527,576
Cocurricular/extracurricular activities 4,858,022 5,351,286 6,564,968 7,377,587 7,777,187 8,244,478 8,750,235 8,543,218 8,834,971
General administration 6,619,319 7,480,780 7,589,997 7,406,201 7,472,347 8,252,858 7,438,693 7,559,030 7,344,859
Plant maintenance and operations 44,205,892 56,076,869 48,487,940 41,196,534 45,060,395 48,594,107 47,461,306 49,624,734 55,179,227
Security and monitoring services 3,117,929 3,355,408 3,246,141 3,596,242 3,698,311 4,419,667 4,978,604 4,904,875 5,272,936
Data processing services 5,424,438 5,773,695 5,859,915 6,290,974 6,753,176 7,396,874 7,417,080 7,395,250 7,559,353
Community services 1,231,950 1,290,719 1,614,920 1,569,592 1,563,970 1,571,080 1,624,189 3,195,293 3,615,273
Debt service - interest on long-term debt 4,344,660 29,335,429 29,119,830 25,455,973 24,573,572 23,088,683 18,400,544 18,973,025 19,288,178
Bond issuance cost and fees 28,590,327 385,880 4,091 115,328 197,044 239,446 358,554 493,392
Facilities acquisition and construction 11,469,866 455,234 1,286,843 328,681 133,085 122,747 68,543
Payments to Juvenile Justice Alt. Ed. Program 155,642 136,750 155,080 193,201 184,670 156,285 380,750 494,910 402,500
Payments to Tax Increment Fund 1,017,317 1,284,687 1,539,027 1,586,762 2,087,417 2,248,873 2,123,889 2,690,197 4,676,718
Other governmental charges 1,475,596 1,588,962 1,592,312
Total governmental activities 418,830,225 431,546,479 439,304,636 444,175,515 458,726,132 481,718,965 507,242,042 513,434,527 538,888,338
Fiscal Year
Business-type activities
Food Service 18,199,930 19,792,423 20,473,956 20,658,080 21,534,122 21,453,579 24,331,289 23,939,432 25,344,736
Total Primary Government Expenses 437,030,155 451,338,902 459,778,592 464,833,595 480,260,254 503,172,544 531,573,331 537,373,959 564,233,074
120

Program Revenues
Charges for services
Instruction $ 926,175 $ 1,375,340 $ 1,058,588 $ 1,014,677 $ 1,128,303 $ 1,061,753 $ 1,055,907 $ 975,533 $ 1,050,631
Health services 15,543 74,360 13,169 11,759 4,718 2,996
Pupil transportation 113,413 248,216 45,382 38,882 101,555 25,557 37,677 35,518 36,787
Cocurricular/extracurricular activities 742,881 795,746 762,843 687,734 710,082 663,823 722,281 712,894 890,184
Plant maintenance and operations 946,239 1,241,337 135,909 793,452 544,754 750,990 905,005 842,217 842,692
Data processing services 15,543 212,456 32,923 30,238 18,874 22,468 62,283 25,213 13,842
Community services 74,846 75,412 1,010,878 86,804 117,264 127,787 113,030 142,072 147,149
Operating grants and contributions 37,021,093 46,965,756 47,787,518 49,213,313 59,533,215 57,540,521 68,070,746 67,719,599 106,339,356
Total governmental program revenues 39,855,733 50,988,623 50,847,210 51,876,859 62,158,765 60,195,895 70,966,929 70,453,046 109,320,641
Business-type activities
Charges for services
Food services 7,839,104 7,954,055 7,855,556 8,246,316 8,220,310 7,012,649 7,324,929 7,146,249 6,913,729
Operating grants and contributions 9,365,158 11,348,818 12,578,049 13,935,097 14,886,059 15,204,997 17,100,511 18,573,326 20,385,549
Total business-type activities 17,204,262 19,302,873 20,433,605 22,181,413 23,106,369 22,217,646 24,425,440 25,719,575 27,299,278
Total Primary Government Program Revenues 57,059,995 70,291,496 71,280,815 74,058,272 85,265,134 82,413,541 95,392,369 96,172,621 136,619,919
Net (Expense)Revenue for Primary Government $ (379,970,160) $ (381,047,406) $ (388,497,777) $ (390,775,323) $ (394,995,120) $ (420,759,003) $ (436,180,962) $ (441,201,338) $ (427,613,155)
Source: The Statement of Activities for the Arlington Independent School District
1 Amounts were not available prior to the GASB 34 requirements in 2002.
Table 2
121

ARLINGTON INDEPENDENT SCHOOL DISTRICT
General Revenues and Total Change in Net Assets
Last Ten Fiscal Years 1
(Unaudited)
Table 3
Fiscal Year
2002 2003 2004 2005 2006 2007 2008 2009 2010
Net (Expense)Revenue
Governmental activities $ (378,948,587) $ (380,472,873) $ (388,442,611) $ (392,276,818) $ (396,567,367) $ (421,523,070) $ (436,275,113) $ (442,981,481) $ (429,567,697)
Business-type activities (995,668) (489,550) (40,351) 1,523,333 1,572,247 764,067 94,151 1,780,143 1,954,542
Total net expenses $ (379,944,255) $ (380,962,423) $ (388,482,962) $ (390,753,485) $ (394,995,120) $ (420,759,003) $ (436,180,962) $ (441,201,338) $ (427,613,155)
General Revenues
Governmental Activities
Taxes
Property taxes levied for general purposes $ 223,814,585 $ 254,541,670 $ 256,397,097 $ 263,452,389 $ 269,294,985 $ 254,867,064 $ 203,831,754 $ 213,225,430 209,744,123
Property taxes levied for debt service 39,315,116 41,943,133 44,513,660 45,128,067 44,407,232 45,037,591 46,996,542 48,103,125 47,297,808
State Aid Formula Grants 90,783,578 86,815,007 90,296,156 83,833,978 84,788,321 119,521,344 176,346,363 168,943,843 157,265,155
Unrestricted grants and contributions 1,499,487 1,531,820 1,377,109 38,187 1,460,292 1,202,126 1,582,590 2,768,238 4,892,850
Investment earnings 4,149,313 2,337,590 2,178,003 5,481,626 9,682,596 10,708,678 8,240,277 1,994,577 451,996
Miscellaneous 1,517,743 1,676,375 9,928,391 3,392,451 5,553,945 7,047,149 5,170,591 19,215,304 4,858,323
Transfers in (out) (57,957) (64,600) (64,907) (123,264) (160,382) (103,219) (26,633) (159,903) (92,255)
Total Primary Government Revenues 361,021,865 388,780,995 404,625,509 401,203,434 415,026,989 438,280,733 442,141,484 454,090,614 424,418,000
Business-type activities: Food Services
Unrestricted grants and contributions 329,508
Unrestricted investment earnings 717 3,449 461 20,394 101,389 140,235 114,114 24,869 12,228
Miscellaneous
Transfers in (out) 57,957 64,600 64,907 123,264 160,382 103,219 26,633 159,903 92,255
Total business-type activities 388,182 68,049 65,368 143,658 261,771 243,454 140,747 184,772 104,483
Total general reveneues $ 361,410,047 $ 388,849,044 $ 404,690,877 $ 401,347,092 $ 415,288,760 $ 438,524,187 $ 442,282,231 $ 454,275,386 $ 424,522,483
Change in Net Assets
Governmental activities $ (17,927,002) $ 8,308,122 $ 16,182,898 $ 8,926,616 $ 18,459,622 $ 16,757,663 $ 5,866,371 $ 11,109,133 (5,149,697)
Business-type activities (607,486) (421,501) 25,017 1,666,991 1,834,018 1,007,521 234,898 1,964,915 2,059,025
Total change in net assets $ (18,534,208) $ 7,886,621 $ 16,207,915 $ 10,593,607 $ 20,293,640 $ 17,765,184 $ 6,101,269 $ 13,074,048 $ (3,090,672)
Source: The Statement of Activities for the Arlington Independent School District
1 Amounts were not available prior to the GASB 34 requirements in 2002.
122

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Unaudited)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
General Fund
Reserved $ 3,285,809 $ 2,298,656 $ 2,112,237 $ 2,519,257 $ 2,379,418 $ 4,535,119 $ 3,779,183 $ 2,337,995 $ 1,747,764 $ 2,885,729
Unreserved 30,854,039 32,484,637 54,507,577 76,884,679 83,778,822 89,944,084 93,219,104 82,792,531 72,201,941 72,834,097
Total General Fund $ 34,139,848 $ 34,783,293 $ 56,619,814 $ 79,403,936 $ 86,158,240 $ 94,479,203 $ 96,998,287 $ 85,130,526 $ 73,949,705 $ 75,719,826
All Other Governmental Funds
Reserved
Debt Service Fund $ 10,486,684 $ 5,020,155 $ 6,743,969 $ 7,501,646 $ 8,697,909 $ 10,484,767 $ 9,906,502 $ 11,179,949 $ 11,493,475 $ 10,893,002
Capital Projects Fund 17,042,961 1,983,031 6,516,157 5,022,577 201,263 58,648 1,025,973 337,560 402,724 7,212,480
Special Revenue Funds 170,381 54,365 63,479 202,813 93,404 103,221 119,540 354,240 19,871 131,285
Unreserved
Capital Projects Fund 75,424,831 58,694,603 55,296,578 35,031,845 27,457,144 25,500,326 22,958,872 22,034,951 21,591,851 60,228,753
Special Revenue Funds 1,469,177 1,659,786 1,362,450 874,231 200,005 82,301 3,043,145 7,966,570 22,566,161 18,909,781
Total All Other Governmental Funds $ 104,594,034 $ 67,411,940 $ 69,982,633 $ 48,633,112 $ 36,649,725 $ 36,229,263 $ 37,054,032 $ 41,873,270 $ 56,074,082 $ 97,375,301
Total Governmental Funds $ 138,733,882 $ 102,195,233 $ 126,602,447 $ 128,037,048 $ 122,807,965 $ 130,708,466 $ 134,052,319 $ 127,003,796 $ 130,023,787 $ 173,095,127
Source: The Balance Sheet of Governmental Funds for the Arlington Independent School District
Table 4
123

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Governmental Funds Expenditures and Debt Service Ratio 1
Last Ten Fiscal Years
(Unaudited)
2001 3 2002 2003 2004 2005 2006 2007 2008 2009 2010
Expenses
Governmental Activities
11 Instruction $ $ 226,978,298 $ 238,726,515 $ 248,121,343 $ 256,424,463 $ 266,791,043 $ 281,059,009 $ 303,669,652 $ 306,723,075 $ 321,288,764
12 Instructional resources and media services 5,771,663 5,405,865 5,953,840 6,146,011 6,151,694 6,192,909 6,650,970 6,512,774 6,842,736
13 Curriculum and staff development services 3,536,454 3,432,785 4,157,322 5,823,334 4,765,322 5,902,513 7,594,366 9,262,192 9,651,957
Total function 10 220,640,072 236,286,415 247,565,165 258,232,505 268,393,808 277,708,059 293,154,431 317,914,988 322,498,041 337,783,457
21 Instructional leadership 6,972,392 6,487,082 7,482,593 7,577,191 8,038,052 8,095,663 8,378,649 6,790,192 7,156,101
23 School leadership 20,452,460 21,309,447 21,850,083 22,334,947 22,997,856 23,930,713 24,864,910 24,788,344 24,875,316
Total function 20 24,229,054 27,424,852 27,796,529 29,332,676 29,912,138 31,035,908 32,026,376 33,243,559 31,578,536 32,031,417
31 Guidance, counseling, and evaluation services 12,779,256 13,469,137 15,668,260 16,425,218 17,268,933 18,629,694 19,751,286 20,489,517 20,957,060
32 Social work services 1,121,334 1,148,087 1,186,888 1,311,213 1,555,261 1,791,682 1,869,337 2,055,563 2,402,098
33 Health services 3,682,217 3,662,472 3,753,380 4,002,672 4,259,540 4,633,344 4,907,937 4,946,724 4,993,365
34 Student transportation 8,133,100 9,362,304 9,101,394 9,999,704 10,485,823 10,769,991 12,265,659 10,529,201 10,714,690
35 Food service 189,838 737,518 493,665 521,963 558,603 505,921 456,308 593,065 639,414
36 Extracurricular activities 4,785,993 4,839,795 6,044,112 6,778,141 7,177,315 7,589,312 8,612,057 8,184,309 8,470,813
Total function 30 27,888,016 30,691,738 33,219,313 36,247,699 39,038,911 41,305,475 43,919,944 47,862,584 46,798,379 48,177,440
41 General administration 6,588,961 7,483,040 7,571,385 7,412,954 7,511,952 8,260,795 7,479,662 7,281,396 7,052,625
Total function 40 5,938,992 6,588,961 7,483,040 7,571,385 7,412,954 7,511,952 8,260,795 7,479,662 7,281,396 7,052,625
51 Plant maintenance and operations 43,312,987 55,304,211 47,118,449 41,387,827 44,663,482 48,587,281 47,193,293 47,613,777 53,638,705
52 Security and monitoring services 2,935,915 3,037,887 2,990,555 3,325,269 3,462,366 4,292,615 4,712,767 4,699,965 5,246,305
53 Data processing services 7,067,685 5,716,533 5,841,436 6,195,326 7,159,563 7,656,137 7,922,556 7,182,359 7,588,830
Total function 50 45,927,238 53,316,587 64,058,631 55,950,440 50,908,422 55,285,411 60,536,033 59,828,616 59,496,101 66,473,840
61 Community services 1,159,986 1,287,298 1,614,738 1,554,195 1,544,259 1,571,080 1,604,699 3,194,170 3,615,273
Total function 60 1,136,935 1,159,986 1,287,298 1,614,738 1,554,195 1,544,259 1,571,080 1,604,699 3,194,170 3,615,273
71 Debt service
Principal on long-term debt 19,562,413 29,789,004 24,631,937 22,471,159 23,222,943 21,862,060 30,872,051 32,378,416 29,539,530 28,870,288
Interest on long-term debt 2 29,939,296 28,602,827 27,924,788 30,459,589 28,302,210 29,952,797 21,719,966 19,353,333 20,028,332 19,431,220
Bond issuance costs and fees 373,474 180,030 792,269 16,567 1,062,200 258,622 468,727
Total function 70 49,501,709 58,391,831 52,930,199 53,110,778 51,525,153 52,607,126 52,608,584 52,793,949 49,826,484 48,770,235
81 Facilities acquisition/construction 26,860,077 5,857,313 10,387,275 6,475,785 2,039,093 2,880,923 1,312,178 555,969 7,712,002
Total function 80 93,495,665 26,860,077 5,857,313 10,387,275 6,475,785 2,039,093 2,880,923 1,312,178 555,969 7,712,002
124

95 Payments to Juvenile Justice Alt. Ed. Program 155,642 136,750 155,080 193,201 184,670 156,285 380,750 494,910 402,500
97 Payments to Tax Increment Fund 1,017,317 1,284,687 1,539,027 1,586,762 2,087,417 2,248,873 2,123,889 2,690,197 4,676,718
99 Other intergovernmental charges 1,475,596 1,588,962 1,592,312
Total function 90 608,719 1,172,959 1,421,437 1,694,107 1,779,963 2,272,087 2,405,158 3,980,235 4,774,069 6,671,530
Total Expenditures $ 469,366,400 $ 441,893,406 $ 441,618,925 $ 454,141,603 $ 457,001,329 $ 471,309,370 $ 497,363,324 $ 526,020,470 $ 526,003,145 $ 558,287,819
Debt Service as a percentage of noncapital expenditures 13.44% 15.50% 12.19% 12.20% 11.53% 11.28% 10.72% 10.13% 9.49% 8.88%
Source: Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds for the Arlington Independent
School District
1 Includes General, Debt Service, Capital Projects, and Special Revenue Funds
2 Interest expense, issuance costs and fees were not split for financial reporting in 2001.
3 Functional expenditure reporting was rolled into a summary format for fiscal year 2001; therefore the detailed
functional breakdown is not provided.
Table 5
125

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Governmental Funds Revenues
Last Ten Fiscal Years 1
(Unaudited)
Table 6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Federal Sources:
Federal grants $ 12,970,003 $ 14,639,104 $ 18,884,181 $ 25,643,838 $ 25,354,863 $ 35,955,353 $ 30,530,310 $ 33,431,030 $ 37,598,710 $ 80,665,294
State Sources:
State education finance program 109,741,828 112,133,882 114,765,871 112,365,954 107,610,783 108,245,489 146,409,376 210,863,521 199,547,501 180,200,696
State grants and other 2 1,828,695 1,531,820 1,377,109 38,187 1,460,292 1,202,126 1,582,590 1,947,977 7,268,336
Total State Sources 109,741,828 113,962,577 116,297,691 113,743,063 107,648,970 109,705,781 147,611,502 212,446,111 201,495,478 187,469,032
Local Sources:
Property taxes 241,359,951 263,129,701 296,484,803 300,910,757 308,580,456 313,702,217 303,417,980 250,828,296 269,654,275 262,647,327
Capital Projects Funds 7,337,663 1,979,137 1,170,476 1,003,806 2,168,445 2,536,749 1,847,001 1,313,291 849,536 692,089
Athletic/extracurricular activities 517,359 742,881 795,746 762,843 687,734 710,082 663,823 722,281 712,894 890,184
Other local sources 10,443,337 10,699,156 4,987,073 14,248,034 7,903,920 13,145,699 12,810,829 14,516,562 14,677,265 (527,152)
Total Local Sources 259,658,310 276,550,875 303,438,098 316,925,440 319,340,555 330,094,747 318,739,633 267,380,430 285,893,970 263,702,448
Total Revenues $ 382,370,141 $ 405,152,556 $ 438,619,970 $ 456,312,341 $ 452,344,388 $ 475,755,881 $ 496,881,445 $ 513,257,571 $ 524,988,158 $ 531,836,774
Source: Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
for the Arlington Independent School District
1
Includes General, Debt Service, Capital Projects, and Special Revenue Funds
2 State grants and other were not split for financial reporting in fiscal year 2001.
126

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Other Financing Sources and Uses and Net Change in Fund Balances
Last Ten Fiscal Years
(Unaudited)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Excess of revenues over (under)
expenditures $ (86,996,259) $ (36,740,850) $ (2,998,955) $ 2,170,738 $ (6,333,658) $ 4,446,521 $ (481,879) $ (12,762,899) $ (1,014,987) $ (26,451,045)
Other financial sources (uses):
General long-term debt issued 26,995,664 41,909,944
General long-term debt refunding 190,872,530 82,880,000 114,350,000 12,465,000 65,755,000
Premium or discount on issuance of bonds 375,169 27,621,179 5,696,384 5,508,050 430,700 1,748,110
Sale of real and personal property 243,743 28,500 39,048 6,400 384,226 74,634 574,010 917,386
Proceeds from capital leases 222,717 16,415 129,802 251,710 264,066 70,215 219,578
Loan Issuance 1,653,465 232,843 3,924,908 974,566
Transfers in 1,516,500 560,210 146,150 211,989 73,979 44,769 32,243 18,896 3,585,325
Transfers out (618,167) (64,600) (921,335) (106,792) (152,544) (97,988) (20,876) (156,799) (3,677,580)
Payment to escrow agents (217,752,441) (88,067,671) (118,844,460) (12,647,727)
Natural gas lease 722,075 3,571,474 4,045,194
Other sources (uses) (1,533,490) (14,972,646)
Total other financing sources (uses) 27,201,391 202,201 27,406,169 (736,137) 1,104,575 3,453,980 3,825,732 5,714,376 4,034,978 69,522,385
Net change in fund balances $ (59,794,868) $ (36,538,649) $ 24,407,214 $ 1,434,601 $ (5,229,083) $ 7,900,501 $ 3,343,853 $ (7,048,523) $ 3,019,991 $ 43,071,340
Source: Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds for
the Arlington Independent School District
Table 7
127

Table 8
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Appraised Value and Actual Value of Taxable Property
Last Ten Fiscal Years
(Unaudited)
Fiscal
Year
Appraised Value
Residential
or
Personal
Real Property Property
Less:
Exemptions
Total
Estimated
Taxable
Value
Total
Direct
Rate
2001 14,008,448,581 3,602,740,681 2,477,632,174 15,133,557,088 1.624400
2002 15,314,979,510 3,867,208,521 2,654,345,886 16,527,842,145 1.654400
2003 16,176,161,060 3,759,567,382 2,853,179,986 17,082,548,456 1.740500
2004 17,049,338,219 3,472,009,681 2,909,935,515 17,611,412,385 1.735000
2005 17,531,539,556 3,514,371,045 3,362,905,214 17,683,005,387 1.755000
2006 18,181,134,394 3,693,993,256 3,624,947,075 18,250,180,575 1.745460
2007 18,953,034,734 3,909,156,717 3,706,366,029 19,155,825,422 1.610000
2008 19,836,493,860 4,011,609,057 3,773,706,485 20,074,396,432 1.278000
2009 20,718,304,882 4,232,461,721 4,044,966,210 20,905,800,393 1.272000
2010 20,903,886,353 4,346,942,585 4,494,749,382 20,756,079,556 1.272000
Source: Tarrant County
128

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Unaudited)
District Direct Rates 1
Fiscal Local
Debt
Year Maintenance Service Total
Tarrant
County 2 129
City of
Arlington
Overlapping Rates
City of
City of City of Town of Dalworthington
Fort Worth Grand Prairie Pantego Gardens
2000-01 $ 1.350000 $ 0.274400 $ 1.624400 $ 0.715265 $ 0.634000 $ 0.875000 $ 0.669998 $ 0.460200 $ 0.183000
2001-02 1.407800 0.246600 1.654400 0.735265 0.634000 0.865000 0.669998 0.460200 0.176000
2002-03 1.480000 0.260500 1.740500 0.764280 0.634000 0.865000 0.669998 0.450200 0.172000
2003-04 1.480000 0.255000 1.735000 0.747277 0.648000 0.865000 0.669998 0.400200 0.267830
2004-05 1.500000 0.255000 1.755000 0.737277 0.648000 0.865000 0.669998 0.400200 0.262739
2005-06 1.500000 0.245460 1.745460 0.736627 0.648000 0.865000 0.669998 0.398834 0.262739
2006-07 1.370000 0.240000 1.610000 0.735277 0.648000 0.860000 0.669998 0.382880 0.262739
2007-08 1.040000 0.238000 1.278000 0.720277 0.648000 0.855000 0.669998 0.373270 0.262739
2008-09 1.040000 0.232000 1.272000 0.713857 0.648000 0.855000 0.669998 0.373270 0.262739
2009-10 1.040000 0.232000 1.272000 0.713567 0.648000 0.855000 0.669998 0.373270 0.262739
Source: Tarrant County and City of Grand Prairie
1 Includes rates for operating and debt service costs
2 Includes Tarrant County, Tarrant County College, Tarrant Regional Water District, JPS Health Network,
and Tarrant County Emergency Services District
Table 9

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Direct and Overlapping Property Tax Levies
Last Ten Fiscal Years
(Unaudited)
Table 10
Fiscal
Year
AISD Property
Tax Levy
Tarrant
City of
Arlington
Overlapping Levies
City of
City of
Fort Worth Grand Prairie
Town of
Pantego
City of
Dalworthington
Gardens
2001 241,908,840 412,142,196 78,362,676 172,791,120 37,677,759 786,112 320,777
2002 268,594,547 456,771,023 85,674,820 192,814,000 40,115,500 844,272 339,669
2003 290,784,736 509,315,817 89,013,864 202,595,171 44,368,289 868,183 364,843
2004 298,236,859 545,814,125 95,752,949 215,651,851 45,542,522 793,479 616,419
2005 302,196,873 581,310,368 99,636,338 232,455,241 47,567,932 830,594 633,282
2006 310,342,233 622,448,062 102,984,068 253,150,231 47,567,932 872,333 661,401
2007 301,491,681 684,748,246 107,697,040 289,444,942 53,828,763 875,013 713,036
2008 252,530,606 733,412,806 112,644,235 320,374,571 61,700,580 899,974 747,602
2009 252,351,441 774,430,479 116,732,720 336,676,822 65,699,162 932,155 754,256
2010 250,819,373 789,844,701 115,724,665 345,778,617 64,170,530 939,334 790,591
Source: Tarrant County and City of Grand Prairie
County 1 130
1 Includes Tarrant County, Tarrant County College, Tarrant Regional Water District, JPS Health Network,
and Tarrant County Emergency Services District

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Principal Property Taxpayers
Current Year and Nine Years Ago
(Unaudited)
Table 11
2010 2001
Percentage
of Total October 2000
Taxable
Taxable
Taxable
Value Rank Value
Value Rank
Percentage
of Total
Taxable
Value
General Motors Corp. $ 246,703,677 1 1.19 % $ 321,242,829 1 2.12 %
Bell Helicopter Textron, Inc 160,534,182 2 0.77
Parks at Arlington, LP. 150,541,475 3 0.73 65,527,291 7 0.43
Arlington Highlands LTD 130,885,400 4 0.63
Southwestern Bell 90,306,472 5 0.44 108,475,840 3 0.72
Republic Beverage 68,000,000 6 0.33
Six Flags Fund II LTD 66,077,444 7 0.32 69,479,123 5 0.46
USMD Surgical Hospital of Arlington 58,177,021 8 0.28
National Semiconductor 47,292,146 9 0.23 72,602,134 4 0.48
Cardinal Health 200 Inc. 25,146,338 10 0.12
Texas Utilities Electric Co. 119,335,731 2 0.79
Textron, Inc. 65,890,920 6 0.44
Doskocil Mfg. Co. 49,000,000 8 0.32
OTR 37,197,965 9 0.25
Isuzu Motors, Inc. 36,441,897 10 0.24
$ 1,043,664,155
5.04 % $ 945,193,730
6.25 %
Source: Tarrant Appraisal District
131

Table 12
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
Fiscal
Year
Adjusted
Taxes Levied
for the
Fiscal Year
Collected within the
Fiscal Year of the Levy
Percentage
of
Amount Levy
Collections in
Subsequent
Years
Delinquent
Taxes
Total Collections to Date
Percentage
of
Amount Levy
2000-01 $ 242,108,461 $ 238,305,436 98.43 % $ 2,872,087 $ 241,177,523 99.62 %
2001-02 267,587,152 263,274,790 98.39 3,317,574 266,592,364 99.63
2002-03 295,165,102 290,679,875 98.48 3,398,677 294,078,552 99.63
2003-04 301,575,557 297,638,943 98.69 2,871,457 300,510,400 99.65
2004-05 306,653,259 302,312,734 98.58 3,251,918 305,564,652 99.65
2005-06 313,453,295 308,744,944 98.50 3,857,732 312,602,676 99.73
2006-07 301,844,730 297,575,738 98.59 3,419,388 300,995,126 99.72
2007-08 251,362,250 248,501,872 98.86 2,033,254 250,535,126 99.67
2008-09 262,764,490 259,113,481 98.61 1,781,472 260,894,953 99.29
2009-10 259,090,293 255,811,075 98.73
Source: Tarrant County
132

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Outstanding Debt By Type
Last Ten Fiscal Years
(Unaudited)
Table 13
Governmental Activities
General
Capital Financing Total
Fiscal Obligation Contractual Agreements Primary
Year Bonds Obligations (Capital Leases) Government
Percentage of
Personal
Income
Total
Outstanding
Debt
Per Capita
2001 605,968,007 2,810,632 247,294 609,025,933 1.18 1,794
2002 580,287,382 1,846,035 156,205 582,289,622 1.13 1,675
2003 585,462,003 531,785 200,247 586,194,035 1.06 1,663
2004 562,020,583 31,223 134,941 562,186,747 1.04 1,574
2005 536,919,761 16,856 306,640 537,243,257 0.94 1,487
2006 509,805,715 1,670,488 503,066 511,979,269 0.84 1,418
2007 470,026,739 1,924,289 415,656 472,366,684 0.75 1,300
2008 439,831,070 1,490,420 332,429 441,653,919 0.68 1,228
2009 412,879,198 2,273,511 240,452 415,393,161
1
1,125
2010 450,540,000 5,400,345 206,130 456,146,475
Source: Arlington Independent School District CAFR notes to the financial statements
1
1,200
1
Data was not available
133

Table 14
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
(Unaudited)
Fiscal
Year
Population
Assessed
Value
Gross
Bonded Debt
Less
Debt Service
Funds
Net
Bonded Debt
Ratio of Net
Bonded Debt to
Assessed Value
Net Bonded
Debt Per
Capita
2001 340,731 15,133,557,088 605,968,007 10,486,684 595,481,323 3.93 1,748
2002 348,905 16,527,842,145 580,287,382 5,020,155 575,267,227 3.48 1,649
2003 353,597 17,082,548,456 585,462,003 6,743,969 578,718,034 3.39 1,637
2004 358,215 17,611,412,385 562,020,583 7,501,646 554,518,937 3.15 1,548
2005 362,426 17,683,005,387 536,919,761 8,697,909 528,221,852 2.99 1,457
2006 362,393 18,250,180,575 509,805,715 10,484,767 499,320,948 2.74 1,378
2007 365,000 19,155,825,422 470,026,739 9,906,502 460,120,237 2.40 1,261
2008 369,150 20,074,396,432 439,831,070 11,179,949 428,651,121 2.14 1,161
2009 370,450 20,905,800,393 412,879,198 11,493,476 401,385,722 1.92 1,084
2010 380,085 20,756,079,556 450,540,000 10,893,002 439,646,998 2.12 1,157
Source: Arlington Independent School District CAFR notes to the financial statements
134

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Statement of Direct and Overlapping Debt
August 31, 2010
(Unaudited)
Table 15
Government Entity
Net Amount
Outstanding
Debt
Estimated
Percentage
Applicable 1
Estimated
Share of
Direct and
Overlapping
Debt 2
Tarrant County 3 $ 447,542,069 25.29 % $ 113,183,389
City of Fort Worth 550,753,224 0.00
City of Arlington 316,820,000 96.79 306,650,078
City of Grand Prairie 158,366,260 46.49 73,624,474
Town of Pantego 690,000 100.00 690,000
City of Dalworthington Gardens 1,500,000 100.00 1,500,000
Subtotal, Overlapping Bonded Debt 495,647,942
Arlington Independent School District direct debt 439,646,998 100.00 439,646,998
Total direct and overlapping debt $ 935,294,940
Ratio of total direct and overlapping debt to:
Assessed valuations for 2009 ($20,756,079,556) 4.51 %
Full valuations for 2009 ($25,250,828,938 3.70 %
Amount of total direct and overlapping debt per:
Enrollment (63,487) $ 14,732
Average daily attendance (58,011) 16,123
Per capita (estimated district population - 380,085) 2,461
Source: Tarrant County, City of Fort Worth, City of Arlington, City of Grand Prairie, Town of Pantego,
City of Dalworthington Gardens
1 Estimated geographical percentage of the area of each entity that is within the boundaries
of the Arlington Independent School District.
2 This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and businesses of the District.
3 Includes Tarrant County, Tarrant County College, and JPS Health Network
135

Table 16
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Legal Debt Margin Information
Last Ten Fiscal Years
(Unaudited)
Fiscal
Year
Debt Limit
Total Net Debt
Applicable to Limit
Legal Debt
Margin
Total Net Debt
Applicable to Limit as a
Percentage of Debt Limit
2001 1,513,355,709 595,481,323 917,874,386 39.35
2002 1,652,784,215 575,267,227 1,077,516,988 34.81
2003 1,708,254,846 578,718,034 1,129,536,812 33.88
2004 1,761,141,239 554,518,937 1,206,622,302 31.49
2005 1,768,300,539 528,221,852 1,240,078,687 29.87
2006 1,825,018,058 499,320,948 1,325,697,110 27.36
2007 1,915,582,542 460,120,237 1,455,462,305 24.02
2008 2,007,439,643 428,651,121 1,578,788,522 21.35
2009 2,090,580,039 401,385,723 1,689,194,316 19.20
2010 2,075,607,956 439,646,998 1,635,960,958 21.18
Legal Debt Margin Calculation for Fiscal Year 2010:
Assessed Value $ 20,756,079,556
Debt Limit (10% of Assessed Value) 2,075,607,956
Debt Applicable to Limit 439,646,998
Legal Debt Margin $ 1,635,960,958
136

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Demographic and Economic Statistics
Last Ten Fiscal Years
(Unaudited)
Table 17
Period
Ending
City of Arlington
Population 1
Fort Worth
Arlington
Metro Division
Population 2
Fort Worth
Arlington
Metro Division
Personal
Income
Per
Capita
Personal
Income 2
City of
Arlington
Unemployment
Rate 3
2001 340,731 1,764,981 53,969,851,000 30,578 6.0
2002 348,905 1,809,564 54,944,252,000 30,363 6.3
2003 353,597 1,848,235 56,575,737,000 30,611 5.6
2004 358,215 1,884,923 60,076,215,000 31,872 5.1
2005 362,426 1,925,586 63,800,913,000 33,133 4.7
2006 362,393 1,668,539 61,138,590,000 36,642 4.3
2007 365,000 1,717,435 63,687,642,105 37,083 4.0
2008 369,150 1,738,231 66,704,614,625 38,375 5.5
2009 370,450
2010 380,085
4 4 4 4
4 4 4 4
1
Source: City of Arlington. 2009 population data for this year was obtained
from the North Central Texas Council of Governments. 2010 population
data was obtained from U.S. Census Bureau.
2
Source: Texas Workforce Commission
3
Source: Arlington Chamber of Commerce
4
Data not available
137

Table 18
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Principal Employers
Ranked for Current Year and Past Year
(Unaudited)
2010 2009
Percentage
Percentage
of Total City
of Total City
Taxpayer Type of Business Employees Rank Employment Employees Rank Employment
Arlington Independent School District Public Education 8,492 1 4.27 % 8,518 1 4.28 %
University of Texas at Arlington Higher Education 5,300 2 2.66 4,987 2 2.50
Cowboys Stadium Sports/Entertainment 3,500 1 3 1.76 3,500 3 1.76
Six Flags Over Texas Amusement Park 3,250 1 4 1.63 3,200 4 1.61
City of Arlington Municipality 3,111 2 5 1.56 3,111 5 1.56
General Motors Automobile Assembly 2,955 6 1.48 2,362 6 1.19
Texas Health Arlington Memorial Medical Center 2,105 2 7 1.06 2,105 7 1.06
Texas Rangers Baseball Club Sports/Entertainment 1,295 1 8 0.65 1,295 8 0.65
Americredit Finance 1,300 9 0.65 1,270 9 0.64
Medical Center of Arlington (MCA) Medical Center 1,250 2 10 0.63 1,250 10 0.63
32,558 16.35 % 31,598 15.88 %
Source: North Central Texas Council of Governments (Total Arlington labor force of 199,090)
1 Includes part-time and peak seasonal employees
2 Newer data not available
Note: Data Not Available for 9-Year Comparison
138

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Full-Time Equivalent District Campus Employees
Last Ten Fiscal Years
(Unaudited)
Table 19
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL
CLASSROOM TEACHERS 3,800.0 4,070.0 4,092.0 4,066.5 4,083.0 4,040.8 4,162.0 4,215.0 4,236.0 4,228.5
CAMPUS ADMINISTRATION
Principals 67.0 71.0 72.0 72.0 73.0 73.0 74.0 74.0 74.0 74.0
Assistant Principals 110.0 84.0 82.0 122.0 128.0 85.0 84.0 127.0 128.0 130.0
Secretaries/Clerical 268.0 327.0 315.4 277.4 255.0 326.0 317.0 275.0 272.0 270.0
Other 7.0 9.0 5.0 5.0 5.0 - -
Total Campus Adm. 452.0 491.0 474.4 476.4 461.0 484.0 475.0 476.0 474.0 474.0
PROFESSIONAL CAMPUS SUPPORT
Athletic Coordinators 5.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0 7.0
Audiologists 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Bilingual/ESL Specialists 5.0 7.0 11.0 11.0 12.0 13.0 13.0 14.0 14.0 14.0
Case Workers 2.0 1.0 1.0 3.0 3.0 3.0 4.0 4.0 4.0
Curriculum Coord/Instr. Tech. Specialists 26.0 24.0 22.0 11.0 12.0 15.0
Counselors 109.0 122.0 123.0 124.0 122.0 122.0 126.0 127.0 131.0 138.0
Special Educ. Counselors/Other Sp. Ed. 93.5 89.5 88.0 107.0 94.0 99.5 47.0 53.0 80.5 80.5
Drug Free Coord./Intv. Specialists 7.0 8.0 6.5 7.0 8.0 8.0 8.0 8.0 8.0 7.0
Diagnosticians/Assoc. Psychologists 38.0 43.0 39.0 44.0 54.5 60.5 62.5 65.0 67.0 68.0
Librarians 64.0 67.0 70.0 69.0 70.0 70.0 69.0 69.0 69.0 69.0
Psychologists 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Registered Nurses 63.0 72.0 76.0 73.0 76.0 76.0 76.0 76.0 76.0 76.0
Other Specialists/Counselors 13.0 24.5 24.5 24.0 101.0 108.0 173.0 186.0 189.0 201.0
Total Professional Campus Support 428.5 466.0 470.0 482.0 561.5 584.0 587.5 611.0 648.5 663.5
NON-PROFESSIONAL CAMPUS SUPPORT
Library Assistants 57.0 55.0 - 6.0 6.0 6.0 7.0 8.0 8.0 8.0
Clinic Assistants 37.0 42.0 9.5 13.0 9.0 18.0 18.0 18.0 19.0 19.0
Classroom Teacher Assistants 584.0 791.0 780.7 794.0 792.5 841.0 927.0 958.0 1,014.0 1,023.0
Computer Lab Managers/Lab Techs 60.0 68.0 81.0 73.0 75.0 77.0 77.0 77.0 77.0 77.0
Student VOE/Student Workers 22.0 27.0 23.0 4.0 - - -
Total Non-Prof. Campus Support 760.0 983.0 894.2 890.0 882.5 942.0 1,029.0 1,061.0 1,118.0 1,127.0
CENTRAL ADMINISTRATION 15.0 16.0 15.0 15.0 18.0 19.0 19.0 20.0 20.0 18.0
CENTRAL INSTRUCTIONAL ADMIN. 31.0 32.0 32.0 28.0 39.0 44.0 44.0 46.0 46.0 51.5
CENTRAL SUPPORT 245.0 259.5 241.5 240.5 271.8 278.8 281.3 288.0 297.0 290.0
AUXILIARY
Food Service 602.0 681.0 672.0 674.0 661.0 640.0 657.0 674.5 670.5 681.0
Maintenance 642.0 663.0 656.0 658.0 665.0 685.0 670.0 679.0 683.0 640.0
Transportation 301.0 314.0 315.0 316.0 316.0 300.0 316.0 321.0 325.0 318.0
Total Auxiliary 1,545.0 1,658.0 1,643.0 1,648.0 1,642.0 1,625.0 1,643.0 1,674.5 1,678.5 1,639.0
TOTAL EMPLOYEES 7,276.5 7,975.5 7,862.1 7,846.4 7,958.8 8,017.6 8,240.8 8,391.5 8,518.0 8,491.5
Source: Arlington Independent School District Official Budget
139

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Operating Statistics
Last Ten Fiscal Years
(Unaudited)
Table 20
Fiscal Year
Enrollment
General Fund
Operating
Expenditures
Cost Per
Pupil
Percentage
Change
Teaching
Staff
Pupil-
Teacher
Ratio
Percentage
of Students
Receiving
Free or
Reduced-Price
Meals
2001 59,197 304,817,060 5,149 7.77 % 3,561 16.62 35.80
2002 60,222 327,731,566 5,442 5.69 3,800 15.85 37.50
2003 61,928 329,223,270 5,316 -2.31 4,070 15.22 39.80
2004 62,454 346,378,590 5,546 4.32 4,092 15.26 43.30
2005 62,267 356,878,610 5,731 3.34 4,067 15.31 46.20
2006 63,397 369,836,203 5,834 1.78 4,083 15.53 49.30
2007 63,082 404,735,619 6,416 9.98 4,041 15.61 55.10
2008 62,863 428,581,183 6,818 6.26 4,063 15.47 54.40
2009 63,045 427,156,330 6,775 -0.62 4,236 14.88 54.70
2010 63,487 401,668,574 6,327 -6.61 4,228 15.02 59.72
Note: Enrollment reported to the Texas Education Agency Public Education Information Management System (PEIMS)
140

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Capital Asset Information
August 31, 2010
(Unaudited)
Table 21
Schools
Administrative
Elementary Schools: Buildings 7
Buildings 52 Square Feet 129,172
Square Feet 4,077,877 Vehicles 11
Total Acres 578
Maximum Capacity 39,894 Professional Development Center
Enrollment 37,288 Buildings 1
Square Feet 36,595
Junior High Schools:
Buildings 13
Square Feet 1,762,098 Service Center
Total Acres 325 Buildings 1
Maximum Capacity 14,507 Square Feet 65,666
Enrollment 8,988 Warehouses 2
Square Feet 62,710
High Schools: Vehicles 189
Buildings 8
Square Feet 2,561,953
Total Acres 408 Portable Buildings
Maximum Capacity 19,985 Elementary 104
Enrollment 17,211 Junior High 31
High School 38
Administrative 3
Athletics Total Buildings 176
Stadiums 2 Total Square Feet 270,330
Running Tracks 6
Softball Complex 1
Food Service
Buildings 1
Transportation Square Feet 32,515
Garages 1 Warehouse 2
Buses (quantity) 223 Square Feet 64,921
Vans (Suburbans) 16 Vehicles 14
Square Feet 65,878
Source: District records
141

Table 22
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Optimum Fund Balance Calculation Schedule
General Fund as of August 31, 2010
UNAUDITED
1. Total General Fund Balance as of 08/31/10 $ 75,719,826
2. Total Reserved Fund Balance - General Fund Only 2,885,729
3. Total Unreserved Designated Fund Balance - General Fund Only 3,092,635
4. Estimated amount needed to cover fall cash
flow deficits in the General Fund (Net of borrowed funds
and funds representing deferred revenues) 2,362,636
5. Estimate of two month's average cash disbursements
during the regular school session (9/1/10 - 5/31/11) 68,919,733
6. Estimate of delayed payments from state sources
(58xx) including August payment delays. -
7. Estimate of underpayment from State sources equal to
variance between LPE and DPE or District's calculated earned
state aid amount. -
8. Estimate of delayed payments from Federal sources (59xx) -
9. Estimate of expenditures to be reimbursed to GF from Capital
Projects Fund (uses of GF cash after bond referendum and
prior to issuance of bonds)
10. Optimum Fund Balance and Cash Flow (Sum of Lines 2 through 9) 77,260,733
11. Excess (Deficit) Net Undesignated Unreserved General Fund
Balance (Line 1 minus Line 10) $ (1,540,907)
142

FEDERAL AWARDS SECTION
143

144

Independent Auditors’ Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
To the Board of Trustees
Arlington Independent School District
Arlington, Texas
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of Arlington Independent School District (the
“District”) as of and for the year ended August 31, 2010, which collectively comprise the District’s basic
financial statements and have issued our report thereon dated January 10, 2011. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the District’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the District’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.
145
3411 Richmond | Suite 500 | Houston, TX 77046 | (P) 713.621.1515 | (F) 713.621.1570
www.null-lairson.com

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of the board of trustees, management, others
within the organization, the Texas Education Agency and other applicable federal awarding agencies and
pass-through entities and is not intended to be, and should not be used by anyone other than these
specified parties.
Houston, Texas
January 10, 2011
146

Independent Auditors’ Report on Compliance with Requirements that Could have a Direct and
Material Effect on each Major Program and on Internal Control over Compliance
in Accordance with OMB Circular A-133
To the Board of Trustees
Arlington Independent School District
Arlington, Texas
Compliance
We have audited Arlington Independent School District’s (the “District”) compliance with the types of
compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-
133 Compliance Supplement that could have a direct and material effect on each of the District’s major
federal programs for the year ended August 31, 2010. The District's major federal programs are identified
in the summary of auditor’s results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of
its major federal programs is the responsibility of the District’s management. Our responsibility is to
express an opinion on the District's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
District's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the District's compliance with those requirements.
In our opinion, the District complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year
ended August 31, 2010.
Internal Control over Compliance
Management of the District is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered the District’s internal control over
compliance with the requirements that could have a direct and material effect on a major federal program
to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test
and report on internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the District’s internal control over compliance.
147
3411 Richmond | Suite 500 | Houston, TX 77046 | (P) 713.621.1515 | (F) 713.621.1570
www.null-lairson.com

Management of the District is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs. In planning and performing our audit, we considered the District’s internal control over
compliance with the requirements that could have a direct and material effect on a major federal program
to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test
and report on internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the District’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that a material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
This report is intended solely for the information and use of the board of trustees, the audit committee,
management, others within the organization and federal awarding agencies and pass-through entities and
is not intended to be and should not be used by anyone other than these specified parties.
Null-Lairson, PC
Texas City, Texas
January 10, 2011
148

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Findings and Questioned Costs
For the Year Ended August 31, 2010
I. Summary of the Auditor’s Results:
a. The type of report issued on the financial statements: Unqualified Opinion
b. There were no material weaknesses or significant deficiencies in internal control disclosed by the audit of
the financial statements.
c. Noncompliance which is material to the financial statements: None
d. There were no material weaknesses or significant deficiencies in internal control over major programs
disclosed by the audit.
e. The type of report issued on compliance for major programs: Unqualified Opinion
f. Did the audit disclose any audit findings which are required to be reported under Section 510(a): No
g. Major programs include:
Title I, Part A Cluster:
Title I, Part A, Improving Basic Programs 84.010A
Title I, Part A, School Improvement Program 84.010A
Title I, Part A, ARRA / Stimulus 84.389A
Title I, School Improvement Program, ARRA 84.389A
Special Education Cluster:
IDEA-B Formula 84.027A
IDEA-B Formula (Deaf) 84.027A
IDEA-B Discretionary 84.027A
IDEA-B Preschool 84.173A
IDEA-B Preschool (Deaf) 84.173A
IDEA-B Formula, ARRA 84.391A
IDEA-B Preschool, ARRA 84.392A
Child Nutrition Cluster:
National School Breakfast Program 10.553
National School Lunch Program – Cash Assistance 10.555
National School Lunch Program – Non Cash Assistance 10.555
Summer Feeding Program 10.559
ARRA Title XIV, State Fiscal Stabilization Fund 84.394A
h. The dollar threshold used to distinguish between Type A and Type B programs: $2,960,053
i. The District does qualify as a low-risk auditee.
II.
Findings Relating to the Financial Statements Which Are Required To Be Reported in Accordance with
Generally Accepted Government Auditing Standards.
None
III.
Findings and Questioned Costs for Federal Awards
None
149

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Status of Prior Findings
For the Year Ended August 31, 2010
PRIOR YEAR’S FINDINGS/NONCOMPLIANCE
This report does not contain any information because there were no findings in the prior year; therefore, it is not
applicable in the current year.
150

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Expenditure of Federal Awards
For the Year Ended August 31, 2010
Exhibit I-1
(Page 1 of 3)
Federal Grantor/
Federal
Project Pass-Through Grantor/ CFDA Federal
Number Program Title Number Expenditures
U.S. DEPARTMENT OF AGRICULTURE
Direct Programs:
220901 ARRA NSLP Equipment Grant 10.579 $ 68,000
22091-156 Texas Fresh Fruit and Vegetable Program 10.582 2,711
Total Direct Programs 70,711
Passed Through State Department of Education:
71400801 National School Breakfast Program 10.553 4,076,237
71300801 National School Lunch Program - Cash Assistance 10.555 14,694,255
220-901 National School Lunch Program - Non-Cash Assitance 10.555 1,615,057
Total Passed Through State Department of Education 20,385,549
Passed Through Texas Health and Human Services Commission:
7533003 Summer Feeding Program 10.559 645,952
Total Passed Through Texas Health and
Human Services Commission 21,031,501
TOTAL U.S. DEPARTMENT OF AGRICULTURE $ 21,102,212
U.S. DEPARTMENT OF EDUCATION
Direct Programs:
T293B090148 Foreign Language Assistance Program 84.293B $ 282,025
Total Direct Programs 282,025
Passed Through Fort Worth Independent School District:
220901 Adult Basic Education (Shared Service) 84.002 63,052
Total Passed Through Fort Worth Independent School District 63,052
Passed Through Education Service Center Region 10:
00-039 McKinney - Vento Homeless Education 84.196 121,562
A09-021 McKinney Homeless Education - ARRA 84.387 227,692
Total Passed Through Education Service Center Region 10 349,254
See notes to Schedule of Expenditure of Federal Awards
151

Exhibit I-1
(Page 2 of 3)
ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Expenditure of Federal Awards
For the Year Ended August 31, 2010
Federal Grantor/
Federal
Project Pass-Through Grantor/ CFDA Federal
Number Program Title Number Expenditures
U.S. DEPARTMENT OF EDUCATION (continued)
Passed Through State Department of Education:
104100087110348 English Literacy & Civics Education 84.002A $ 90,474
10610101220901 Title I, Part A, Improving Basic Programs 84.010A 13,005,926
11610101220901 Title I, Part A, Improving Basic Programs 84.010A 40,940
1061010422901046 Title I, School Improvement Program 84.010A 126,155
1061010422901050 Title I, School Improvement Program 84.010A 43,189
1061010422901053 Title I, School Improvement Program 84.010A 47,776
106600012209016000 IDEA-B Formula 84.027A 10,857,893
116600012209016000 IDEA-B Formula 84.027A 320,583
106600012209016601 IDEA-B Formula (Deaf) 84.027A 26,254
106600022209016673 IDEA-B Discretionary 84.027A 86,192
10420006220901 Carl Perkins Basic Grant 84.048A 795,959
11420006220901 Carl Perkins Basic Grant 84.048A 13,269
106610012209016610 IDEA-B Preschool 84.173A 207,030
106610012209016611 IDEA-B Preschool (Deaf) 84.173A 6,592
093911012209013911 IDEA-C Early Intervention 84.181 585
10691001220901 Title IV, Part A, Safe & Drug Free Schools & Communities 84.186A 209,118
096950127110001 21st Century Community Learning Centers 84.287C 1,702,410
106950127110001 21st Century Community Learning Centers 84.287C 34,738
10630001220901 Title II, Part D, Enhancing Education through Technology 84.318X 88,472
10671001220901 Title III, Part A, English Language Acquisition - LEP 84.365A 1,612,888
11671001220901 Title III, Part A, English Language Acquisition - LEP 84.365A 12,016
10694501220901 Title II, Part A, Teacher and Principal Training 84.367A 1,624,286
11694501220901 Title II, Part A, Teacher and Principal Training 84.367A 82
220901 BEK-1 Summer Enrichment Program 84.369A 109,585
10610701220901050 Title I, SIP Academy Grant 84.377 14,921
10610701220901053 Title I, SIP Academy Grant 84.377 47,233
10553001220901 ARRA Title II - D, Technology 84.386A 280,926
105530027110003 ARRA Title II - D, Discretionary 84.386A 586,041
10551001220901 Title I, Part A, ARRA / Stimulus 84.389A 4,000,865
1055100422901046 Title I, School Improvement Program, ARRA 84.389A 65,791
1055100422901050 Title I, School Improvement Program, ARRA 84.389A 46,705
1055100422901053 Title I, School Improvement Program, ARRA 84.389A 56,254
10554001220901 IDEA-B Formula, ARRA 84.391A 5,679,475
10555001220901 IDEA-B Preschool, ARRA 84.392A 36,761
10557001220901 ARRA Title XIV, State Fiscal Stabilization Fund 84.394A 34,192,901
Total Passed Through State Department of Education 76,070,285
TOTAL U.S. DEPARTMENT OF EDUCATION $ 76,764,616
See notes to Schedule of Expenditure of Federal Awards
152

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Schedule of Expenditure of Federal Awards
For the Year Ended August 31, 2010
Exhibit I-1
(Page 3 of 3)
Federal Grantor/
Federal
Project Pass-Through Grantor/ CFDA Federal
Number Program Title Number Expenditures
U.S. DEPARTMENT OF DEFENSE
Direct Programs:
ROTC 12.000 $ 81,431
TOTAL U.S. DEPARTMENT OF DEFENSE $ 81,431
U.S. DEPARTMENT OF JUSTICE
Direct Programs:
2008-JU-FX-0003 Latino Youth Mentoring 16.726 $ 102,712
TOTAL U.S. DEPARTMENT OF JUSTICE $ 102,712
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Direct Programs:
6APHPA0020370902 Adolescent and Family Life Demonstration Project 93.995 $ 362,712
Passed Through Department of State Health Services:
2010-032718 Title V, DPIS - School Health Program 93.994 92,550
Medical Administrative Claiming (MAC) 93.778 95,116
Total Passed Through Department of State Health Services 187,666
Passed Through Tarrant County Workforce Development Board:
03090Y00 TCW Child Care CCMS 93.596 67,076
TOTAL U.S. DEPARTMENT OF HEALTH AND
HUMAN SERVICES $ 617,454
TOTAL FEDERAL EXPENDITURES $ 98,668,425
See notes to Schedule of Expenditure of Federal Awards
153

ARLINGTON INDEPENDENT SCHOOL DISTRICT
Notes to Schedule of Expenditure of Federal Awards
A. For all Federal programs, the District uses the fund types specified in Texas Education Agency’s Financial
Accountability System Resources Guide. Special Revenue Funds are used to account for resources restricted to,
or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted
for in a Special Revenue Fund.
B. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The
Governmental Fund types are accounted for using a current financial resources measurement focus. All Federal
grant funds with the exception of the National School Breakfast and Lunch Programs were accounted for in a
Special Revenue Fund, which is a Nonmajor Governmental Fund type. The aforementioned Department of
Agriculture programs were accounted for using the accrual basis of accounting in an Enterprise Fund Type.
With the current financial resources measurement focus, only current assets and current liabilities and the fund
balance are included on the balance sheet. Operating statements of these funds present increases and decreases
in net current assets. The modified accrual basis of accounting is used for the Governmental Fund types. This
basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual,
i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is
incurred, if measurable and available, and expenditures in the accounting period in which the fund liability is
incurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognized when
due, and certain compensated absences and claims and judgments, which are recognized when the obligations
are expected to be liquidated with expendable available financial resources.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the
grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned.
C. The period of availability for Federal grant funds for the purpose of liquidation of outstanding obligations made
on or before the ending date of the Federal project period extended 30 days beyond the Federal project period
ending date, in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3, OMB
Circular A-133 Compliance Statement - Provisional 6/97.
154